UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4054
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OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: SEPTEMBER
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Date of reporting period: 09/30/2006
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This Form N-CSR/A amends the Form N-CSR of the registrant for the fiscal year
and reporting period ended September 30, 2006 filed with the Securities and
Exchange Commission on November 28, 2006. The Report to Shareholders for the
fiscal year ended September 30, 2006, contained within this Form N-CSR/A as Item
1, has been restated with respect to the accounting treatment of the
registrant's portfolio holdings of certain municipal bond derivative securities
referred to as "inverse floaters". Additionally, certain other data in the
Report to Shareholders, derived from the information in the registrant's
financial statements or using the same methodology on which the presentation of
the information in the financial statements was based, has been restated
accordingly. Principally, the financial statements, including expenses and
income, for each class of shares were restated as a result of the registrant
treating municipal bonds underlying certain inverse floaters as being owned by
the registrant. However, these changes in accounting treatment have not
affected the registrant's net asset values per share or the investment
performance of each class of shares.
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN CATEGORIES 1
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Tobacco Settlement Payments 24.1%
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Highways/Railways 19.3
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Higher Education 8.9
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General Obligation 7.4
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Not-for-Profit Organization 6.3
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Marine/Aviation Facilities 5.1
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Hospital/Health Care 4.9
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Municipal Leases 4.2
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Electric Utilities 4.0
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Water Utilities 2.9
Portfolio holdings and allocations are subject to change. Restated percentages
are as of September 30, 2006, and are based on the total market value of
investments.
CREDIT ALLOCATION 1
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AAA 16.3%
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AA 24.6
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A 10.4
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BBB 36.2
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BB 2.6
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B 0.9
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Not Rated 9.0
Portfolio holdings and allocations are subject to change. Restated percentages
are as of September 30, 2006, and are dollar-weighted based on the total market
value of investments. Securities rated by any rating organization are included
in the equivalent Standard & Poor's rating category. The allocation includes
rated securities and those not rated by a national rating organization but to
which the ratings above have been assigned by the Manager for internal purposes
as being comparable, in the Manager's judgment, to securities rated by a rating
agency in the same category.
1. Restated. For Information, please refer to Note 9 to the Fund's Financial
Statements included within.
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12 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED SEPTEMBER 30, 2006, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. 2 Across the past 12 months, the
Fund performed very well for shareholders seeking tax-free income as its yield
compared favorably to those earned by its competitors and by other fixed income
investments. As of September 30, 2006, the Fund's Class A shares produced a
distribution yield of 4.44% without sales charges. Lipper Analytical Services,
Inc.--an independent mutual fund rating service--reported an average
distribution yield of 3.66% among the 104 funds in its New York Municipal Debt
Funds category as of the same date. 1
The Fund's holdings represent a wide variety of industry sectors and
credit qualities, and tax-free, AMT-free income made up 68.5% of the Fund's
total return for the period; price appreciation generated the balance. Strong
asset growth fueled the Fund's strategy of building diversification, and by the
end of the report period the number of holdings in the Fund rose more than 50%
from a year earlier.
The Fund's income-oriented approach continued to provide significant
benefit to our investors in this report period. In the year ended September 30,
2006, the Fund's Class A shares generated a total return of 7.61% without sales
charge. By comparison, its primary benchmark, the Lehman Brothers Municipal Bond
Index, produced a total return of 4.45% for the period. 3 In the 12 months ended
September 30, 2006, distributions totaled 64.3 cents per Class A share. With
credit spreads remaining stubbornly tight across the period, fewer lower-rated
new issues offered yields that were high enough--in our opinion--to offset the
associated risks and create a favorable balance of risk and reward. This
situation produced significant dividend pressure during the 12 months ended
September 30, 2006, and the monthly distribution, which had held steady at
$0.056 per Class A share through April's distribution, was reduced by $0.004
beginning with the May distribution and by an additional $0.003 as of the July
distribution. Distributions for other share classes were
1. Lipper, Inc. Lipper calculations do not include sales charges which, if
included, would reduce results.
2. Percentages of the Fund's portfolio referred to in this discussion have been
restated for the reasons discussed in Note 9 to the Fund's Financial Statements
included within.
3. The Lehman Brothers Municipal Bond Index is an unmanaged index of a broad
range of investment-grade municipal bonds. The index cannot be purchased
directly by investors. Index performance is for illustrative purposes only and
does not predict or depict the performance of a fund.
13 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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adjusted accordingly. A dividend reduction does not change the Fund's net asset
value per share and, importantly, this dividend reduction was not the result
from any defaults of bonds in the Fund's portfolio.
In this period, the prices of lower-rated municipal bonds have increased
relative to prices of higher-grade bonds, a condition sometimes known as "credit
spread tightening." With generally higher prices of lower-rated and non-rated
municipal securities, the Fund began adopting a general strategy of investing a
larger percentage of assets in higher-quality bonds during this period. For
example, AAA- and AA-rated paper represented a growing portion of the portfolio;
their combined share of the portfolio rose significantly during this report
period and, as of September 30, 2006, nearly 41% of the portfolio's investments
were rated AAA or AA.
The Fund's holdings in Master Settlement Agreement ("MSA") tobacco-backed
bonds, which accounted for 24% of Fund investments as of September 30, 2006,
have contributed strongly to the Fund's yield and total return performance
during this period. MSA bonds are backed by the issuing State's (or U.S.
territory's) share of proceeds from a national litigation settlement with
tobacco manufacturers.
During this reporting period, the litigation environment has continued to
improve for the tobacco industry and, by extension, for MSA bonds. On December
15, 2005, the Illinois Supreme Court reversed a $10.1 billion judgment against
Philip Morris USA that had been awarded by a lower court in 2003. In July 2006,
the Florida Supreme Court upheld an appellate court's reversal of a $145 billion
judgment against cigarette manufacturers in the long-running Engle case. One
month later, tobacco manufacturers received another reprieve, when a U.S. judge
determined that she could not authorize financial remedies despite her finding
that tobacco manufacturers had violated federal racketeering laws. As of
September 30, 2006, both the Department of Justice, which brought this case in
1999, and manufacturers were reportedly considering appeals. We remain confident
that the resolution of this case will not harm the Fund's position in MSA bonds.
MSA bond prices rose in the first half of the reporting period amid
widespread market speculation that tobacco-backed bonds might be "pre-refunded"
by their issuers. In a pre-refunding, a municipality issues a new bond whose
proceeds are escrowed in U.S. Government bonds and earmarked to pay off another
previously issued--but not yet callable--municipal bond. When an outstanding
bond is pre-refunded, its price generally rises significantly. MSA-backed bonds
that had been issued by TSASC (New York City) and Nassau County, New York, were
pre-refunded in February and April respectively, driving up their prices. The
Fund realized gains on the holdings it sold and, as a result, MSA-backed
holdings contributed positively to the Fund's total return for the period.
14 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
Pre-refunding of MSA-backed tobacco bonds provides a particularly good example
of how our yield-oriented investment strategy can result in both yield and price
appreciation for individual bonds, generating an attractive total return. In
light of these and other transactions, the December 2006 distribution to
shareholders will include a small capital gain and a small amount of taxable
income.
Upgrades from credit rating agencies have contributed to favorable
performance this reporting period. Standard & Poor's ("S&P") raised New York
City's general obligation bond rating in May, contributing to higher prices for
the City's bonds. In anticipation of the de-coupling of Mount Sinai Hospital and
New York University Hospitals Center, which had merged in 1998, Moody's
Investors Services upgraded Mount Sinai to Baa2 with a stable outlook, from Ba1,
and Fitch's Ratings upgraded the hospital to BBB- from BB+, also with a stable
outlook. Mount Sinai earned its above-investment-grade status, according to
Moody's, because volume growth and an improved financial profile helped drive
top-line revenue growth and profitability in the City's competitive healthcare
market. At the time of the upgrade, the agency also cited Mount Sinai's clinical
reputation and affiliation with the Mount Sinai School of Medicine. Shortly
after this report period ended, S&P upgraded the bonds that remain an obligation
of Mount Sinai to BBB, from BB, with a positive outlook; unlike the other
ratings agencies, S&P waited to announce its rating change until the two
hospitals had completed their separation.
Investors have also benefited from the Fund's holdings in bonds issued by
the Commonwealth of Puerto Rico. While prices on bonds issued by Puerto Rico
exhibited slightly more volatility than the general market during this reporting
period, we believe that the government's decision to raise taxes to balance the
budget as well its efforts to reinforce its financial structure will ultimately
strengthen the municipal bonds that the Fund continues to own. As we have
continued to monitor developments in Puerto Rico, we have taken advantage of
market weakness to add to positions in these bonds at favorable prices. Thus,
despite the financial difficulties that led Moody's and S&P to issue downgrades,
these bonds contributed to the Fund's positive total return in this report
period.
The Fund's diversified portfolio includes a variety of bond types,
structures and maturities, in an effort to mute the effects of any one variety.
For example, during this report period, we continued to invest in select
premium-coupon callable bonds that may remain outstanding through periods of
rising short-term interest rates. This investing strategy is designed to
minimize overall income volatility in the Fund. Additionally, the Fund's
investment in municipal inverse-floating rate securities in the portfolio
(including the effect of leverage) increased slightly in this reporting period.
Although interest payments on these tax-exempt securities move inversely to
short-term interest rates, these securities continued
15 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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to provide above-market yields in this reporting period, which was characterized
by a flattening yield curve and rising short-term rates. Importantly, even
though these holdings generated less income than in previous periods, they
contributed positively to total return in the past 12 months.
As of September 30, 2006, the Fund's portfolio included a municipal bond
that had been issued by the Port Authority of New York and New Jersey to finance
work on a passenger terminal at LaGuardia Airport. The bond is backed by
payments from Delta Air Lines, which entered bankruptcy protection on September
14, 2005. The carrier has made all required interest payments, demonstrating to
bondholders how valuable this facility is to the ongoing operations of the
company. This investment produced a healthy total return across the year,
contributing handsomely to the Fund's overall performance.
The "Rochester style" of municipal bond investing is flexible and
responsive to market conditions; our strategies are intended to balance many
different types of risk to reduce exposure to any individual risk. We continue
to comb the market for bonds that offer attractive yields, and to monitor
developing market conditions. Notwithstanding the changes in the Fund's dividend
distribution, we believe that shareholders will continue to benefit from highly
competitive yields as market conditions continue to develop. Shareholders should
note that market conditions during this report period did not affect the Fund's
overall investment strategies.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 2006. In the case of Class A, Class B and Class C
shares, performance is measured over a ten-fiscal-year period. The Fund's
performance reflects the deduction of the maximum initial sales charge on Class
A shares, the applicable contingent deferred sales charge on Class B and Class C
shares, and reinvestments of all dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market. Index performance reflects the reinvestment
of dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
16 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free
New York Municipals Lehman Brothers
(Class A) Municipal Bond Index
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09/30/1996 $ 9,525 $ 10,000
12/31/1996 $ 9,755 $ 10,255
03/31/1997 $ 9,734 $ 10,230
06/30/1997 $ 10,098 $ 10,583
09/30/1997 $ 10,362 $ 10,902
12/31/1997 $ 10,649 $ 11,197
03/31/1998 $ 10,768 $ 11,326
06/30/1998 $ 10,914 $ 11,499
09/30/1998 $ 11,228 $ 11,852
12/31/1998 $ 11,270 $ 11,923
03/31/1999 $ 11,378 $ 12,029
06/30/1999 $ 11,166 $ 11,816
09/30/1999 $ 10,963 $ 11,769
12/31/1999 $ 10,767 $ 11,678
03/31/2000 $ 11,083 $ 12,019
06/30/2000 $ 11,178 $ 12,201
09/30/2000 $ 11,487 $ 12,496
12/31/2000 $ 11,990 $ 13,042
03/31/2001 $ 12,270 $ 13,332
06/30/2001 $ 12,381 $ 13,418
09/30/2001 $ 12,609 $ 13,795
12/31/2001 $ 12,524 $ 13,711
03/31/2002 $ 12,568 $ 13,840
06/30/2002 $ 12,890 $ 14,346
09/30/2002 $ 13,379 $ 15,028
12/31/2002 $ 13,330 $ 15,028
03/31/2003 $ 13,250 $ 15,208
06/30/2003 $ 13,608 $ 15,601
09/30/2003 $ 13,657 $ 15,613
12/31/2003 $ 14,257 $ 15,826
03/31/2004 $ 14,566 $ 16,100
06/30/2004 $ 13,956 $ 15,719
09/30/2004 $ 14,600 $ 16,331
12/31/2004 $ 14,882 $ 16,535
03/31/2005 $ 15,249 $ 16,529
06/30/2005 $ 15,895 $ 17,013
09/30/2005 $ 15,973 $ 16,992
12/31/2005 $ 16,084 $ 17,116
03/31/2006 $ 16,432 $ 17,158
06/30/2006 $ 16,405 $ 17,164
09/30/2006 $ 17,189 $ 17,749
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 2.50% 5-Year 5.36% 10-Year 5.57%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE APPLICABLE SALES CHARGE:
FOR CLASS A SHARES, THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS
B SHARES, THE CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR);
AND FOR CLASS C SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR
PERIOD. BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER
PURCHASE, 10-YEAR RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE
PERIOD AFTER CONVERSION. SEE PAGE 20 FOR FURTHER INFORMATION.
17 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free
New York Municipals Lehman Brothers
(Class B) Municipal Bond Index
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09/30/1996 $ 10,000 $ 10,000
12/31/1996 $ 10,223 $ 10,255
03/31/1997 $ 10,181 $ 10,230
06/30/1997 $ 10,543 $ 10,583
09/30/1997 $ 10,797 $ 10,902
12/31/1997 $ 11,076 $ 11,197
03/31/1998 $ 11,187 $ 11,326
06/30/1998 $ 11,317 $ 11,499
09/30/1998 $ 11,620 $ 11,852
12/31/1998 $ 11,641 $ 11,923
03/31/1999 $ 11,721 $ 12,029
06/30/1999 $ 11,481 $ 11,816
09/30/1999 $ 11,259 $ 11,769
12/31/1999 $ 11,027 $ 11,678
03/31/2000 $ 11,329 $ 12,019
06/30/2000 $ 11,404 $ 12,201
09/30/2000 $ 11,707 $ 12,496
12/31/2000 $ 12,186 $ 13,042
03/31/2001 $ 12,447 $ 13,332
06/30/2001 $ 12,546 $ 13,418
09/30/2001 $ 12,753 $ 13,795
12/31/2001 $ 12,632 $ 13,711
03/31/2002 $ 12,652 $ 13,840
06/30/2002 $ 12,952 $ 14,346
09/30/2002 $ 13,426 $ 15,028
12/31/2002 $ 13,376 $ 15,028
03/31/2003 $ 13,296 $ 15,208
06/30/2003 $ 13,655 $ 15,601
09/30/2003 $ 13,704 $ 15,613
12/31/2003 $ 14,307 $ 15,826
03/31/2004 $ 14,617 $ 16,100
06/30/2004 $ 14,004 $ 15,719
09/30/2004 $ 14,651 $ 16,331
12/31/2004 $ 14,933 $ 16,535
03/31/2005 $ 15,302 $ 16,529
06/30/2005 $ 15,950 $ 17,013
09/30/2005 $ 16,029 $ 16,992
12/31/2005 $ 16,140 $ 17,116
03/31/2006 $ 16,489 $ 17,158
06/30/2006 $ 16,462 $ 17,164
09/30/2006 $ 17,248 $ 17,749
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 1.76% 5-Year 5.23% 10-Year 5.60%
18 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free
New York Municipals Lehman Brothers
(Class C) Municipal Bond Index
-------------------- --------------------
09/30/1996 $ 10,000 $ 10,000
12/31/1996 $ 10,221 $ 10,255
03/31/1997 $ 10,179 $ 10,230
06/30/1997 $ 10,540 $ 10,583
09/30/1997 $ 10,795 $ 10,902
12/31/1997 $ 11,073 $ 11,197
03/31/1998 $ 11,176 $ 11,326
06/30/1998 $ 11,314 $ 11,499
09/30/1998 $ 11,609 $ 11,852
12/31/1998 $ 11,629 $ 11,923
03/31/1999 $ 11,709 $ 12,029
06/30/1999 $ 11,478 $ 11,816
09/30/1999 $ 11,248 $ 11,769
12/31/1999 $ 11,025 $ 11,678
03/31/2000 $ 11,327 $ 12,019
06/30/2000 $ 11,402 $ 12,201
09/30/2000 $ 11,695 $ 12,496
12/31/2000 $ 12,184 $ 13,042
03/31/2001 $ 12,445 $ 13,332
06/30/2001 $ 12,543 $ 13,418
09/30/2001 $ 12,750 $ 13,795
12/31/2001 $ 12,629 $ 13,711
03/31/2002 $ 12,650 $ 13,840
06/30/2002 $ 12,949 $ 14,346
09/30/2002 $ 13,415 $ 15,028
12/31/2002 $ 13,339 $ 15,028
03/31/2003 $ 13,233 $ 15,208
06/30/2003 $ 13,575 $ 15,601
09/30/2003 $ 13,596 $ 15,613
12/31/2003 $ 14,155 $ 15,826
03/31/2004 $ 14,434 $ 16,100
06/30/2004 $ 13,802 $ 15,719
09/30/2004 $ 14,411 $ 16,331
12/31/2004 $ 14,660 $ 16,535
03/31/2005 $ 14,993 $ 16,529
06/30/2005 $ 15,610 $ 17,013
09/30/2005 $ 15,643 $ 16,992
12/31/2005 $ 15,733 $ 17,116
03/31/2006 $ 16,043 $ 17,158
06/30/2006 $ 15,973 $ 17,164
09/30/2006 $ 16,704 $ 17,749
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 5.78% 5-Year 5.55% 10-Year 5.26%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE APPLICABLE SALES CHARGE:
FOR CLASS A SHARES, THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS
B SHARES, THE CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR);
AND FOR CLASS C SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR
PERIOD. BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER
PURCHASE, 10-YEAR RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE
PERIOD AFTER CONVERSION. SEE PAGE 20 FOR FURTHER INFORMATION.
19 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on any gains you may realize if you
sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares were first publicly offered on 8/16/84. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 4.75%,
except where noted.
CLASS B shares of the Fund were first publicly offered on 3/1/93. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the 10-year return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
20 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended September 30, 2006.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. 1 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 1 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 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.
1. Restated to include financing expenses related to the Fund's investments in
certain inverse floaters. Please refer to Note 9 to the Fund's financial
Statements included within.
21 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RESTATED
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(4/1/06) (9/30/06) 1 SEPTEMBER 30, 2006 1
- --------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,046.00 $ 7.57
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.70 7.46
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,041.10 11.68
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.69 11.52
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,041.20 11.47
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,013.89 11.32
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 183/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended September 30, 2006 are as follows:
RESTATED
CLASS EXPENSE RATIOS 1
- ---------------------------
Class A 1.47%
- ---------------------------
Class B 2.27
- ---------------------------
Class C 2.23
1. Expense Ratios and Expenses Paid have been restated to reflect the additional
expenses described in Note 9 to the Fund's Financial Statements included within.
The Hypothetical Ending Account Values have likewise been restated to reflect
the restated expense ratios because their calculation assumes a 5% return before
expenses and does not include the additional income attributable to the inverse
floater structures in which the Fund invests. The Actual Ending Account Values
have not changed because their calculation includes both the additional expenses
and additional income attributable to these inverse floater structures. Those
two amounts offset each other. The previously reported Fund Expense information
is as follows:
PREVIOUSLY REPORTED
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(4/1/06) (9/30/06) SEPTEMBER 30, 2006
- --------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,046.00 $ 4.42
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.76 4.37
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,041.10 8.53
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,016.75 8.43
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,041.20 8.32
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,016.95 8.22
CLASS EXPENSE RATIOS
- -------------------------
Class A 0.86%
- -------------------------
Class B 1.66
- -------------------------
Class C 1.62
- --------------------------------------------------------------------------------
22 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS September 30, 2006
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--116.2%
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK--101.4%
$ 200,000 Albany County IDA (Wildwood Programs) 4.900% 07/01/2021 $ 207,380
- --------------------------------------------------------------------------------------------------------------------------
125,000 Albany County IDA (Wildwood Programs) 5.000 07/01/2026 129,886
- --------------------------------------------------------------------------------------------------------------------------
14,500,000 Albany IDA (Charitable Leadership) 5.750 07/01/2026 15,366,085
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Albany IDA (Charitable Leadership) 6.000 07/01/2019 1,082,710
- --------------------------------------------------------------------------------------------------------------------------
100,000 Albany IDA (New Covenant Charter School) 7.000 05/01/2025 99,018
- --------------------------------------------------------------------------------------------------------------------------
1,140,000 Albany IDA (Sage Colleges) 5.250 04/01/2019 1,167,383
- --------------------------------------------------------------------------------------------------------------------------
500,000 Albany IDA (Sage Colleges) 5.300 04/01/2029 511,285
- --------------------------------------------------------------------------------------------------------------------------
30,000 Albany Parking Authority 5.625 07/15/2025 32,009
- --------------------------------------------------------------------------------------------------------------------------
30,000 Allegany County IDA (Houghton College) 5.250 01/15/2024 30,582
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Amherst IDA (Daemen College) 6.000 10/01/2021 1,117,210
- --------------------------------------------------------------------------------------------------------------------------
5,895,000 Brookhaven IDA (Alternatives for Children) 7.550 02/01/2033 6,404,151
- --------------------------------------------------------------------------------------------------------------------------
9,235,000 Brookhaven IDA (Dowling College) 6.750 11/01/2032 9,980,080
- --------------------------------------------------------------------------------------------------------------------------
350,000 Broome County IDA (University Plaza) 5.200 08/01/2030 366,790
- --------------------------------------------------------------------------------------------------------------------------
250,000 Broome County IDA (University Plaza) 5.200 08/01/2036 260,515
- --------------------------------------------------------------------------------------------------------------------------
300,000 Bushnell Basin Fire Assoc. (Volunteer Fire Dept.) 5.750 11/01/2030 305,376
- --------------------------------------------------------------------------------------------------------------------------
85,000 Cattaraugus County IDA (Olean General Hospital) 5.250 08/01/2023 87,992
- --------------------------------------------------------------------------------------------------------------------------
500,000 Cattaraugus County IDA (St. Bonaventure University) 5.000 05/01/2023 517,505
- --------------------------------------------------------------------------------------------------------------------------
620,000 Cattaraugus County IDA (St. Bonaventure University) 5.100 05/01/2031 641,316
- --------------------------------------------------------------------------------------------------------------------------
90,000 Chautauqua Utility District 5.000 06/01/2022 94,175
- --------------------------------------------------------------------------------------------------------------------------
100,000 Chautauqua Utility District 5.000 06/01/2024 103,920
- --------------------------------------------------------------------------------------------------------------------------
110,000 Chautauqua Utility District 5.000 06/01/2026 113,702
- --------------------------------------------------------------------------------------------------------------------------
1,715,000 Clarence IDA (Bristol Village) 6.000 01/20/2044 1,903,204
- --------------------------------------------------------------------------------------------------------------------------
15,000 Deerfield GO 5.500 06/15/2021 16,016
- --------------------------------------------------------------------------------------------------------------------------
15,000 Deerfield GO 5.500 06/15/2022 15,968
- --------------------------------------------------------------------------------------------------------------------------
15,000 Deerfield GO 5.500 06/15/2023 15,896
- --------------------------------------------------------------------------------------------------------------------------
15,000 Deerfield GO 5.500 06/15/2024 15,985
- --------------------------------------------------------------------------------------------------------------------------
20,000 Deerfield GO 5.500 06/15/2025 21,237
- --------------------------------------------------------------------------------------------------------------------------
20,000 Deerfield GO 5.600 06/15/2026 21,125
- --------------------------------------------------------------------------------------------------------------------------
20,000 Deerfield GO 5.600 06/15/2027 21,100
- --------------------------------------------------------------------------------------------------------------------------
20,000 Deerfield GO 5.600 06/15/2028 21,045
- --------------------------------------------------------------------------------------------------------------------------
25,000 Deerfield GO 5.600 06/15/2029 26,269
- --------------------------------------------------------------------------------------------------------------------------
25,000 Deerfield GO 5.600 06/15/2030 26,210
- --------------------------------------------------------------------------------------------------------------------------
25,000 Deerfield GO 5.600 06/15/2031 26,190
- --------------------------------------------------------------------------------------------------------------------------
25,000 Deerfield GO 5.600 06/15/2032 26,172
- --------------------------------------------------------------------------------------------------------------------------
30,000 Deerfield GO 5.600 06/15/2033 31,381
- --------------------------------------------------------------------------------------------------------------------------
30,000 Deerfield GO 5.600 06/15/2034 31,369
- --------------------------------------------------------------------------------------------------------------------------
30,000 Deerfield GO 5.600 06/15/2035 31,357
- --------------------------------------------------------------------------------------------------------------------------
35,000 Deerfield GO 5.600 06/15/2036 36,583
23 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 795,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750% 08/01/2037 $ 824,391
- --------------------------------------------------------------------------------------------------------------------------
500,000 Erie County IDA (Charter School Applied Tech) 6.875 06/01/2035 499,935
- --------------------------------------------------------------------------------------------------------------------------
1,170,000 Erie County IDA (DePaul Properties) 5.750 09/01/2028 993,704
- --------------------------------------------------------------------------------------------------------------------------
180,000 Erie County IDA (DePaul Properties) 6.500 09/01/2018 172,440
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 Erie County IDA (Medaille College) 7.625 04/01/2035 6,413,176
- --------------------------------------------------------------------------------------------------------------------------
750,000 Erie County IDA (Orchard Park) 6.000 11/15/2036 793,695
- --------------------------------------------------------------------------------------------------------------------------
9,050,000 Erie County IDA (The Episcopal Church Home) 5.875 02/01/2018 9,345,573
- --------------------------------------------------------------------------------------------------------------------------
9,995,000 Erie County IDA (The Episcopal Church Home) 6.000 02/01/2028 10,322,336
- --------------------------------------------------------------------------------------------------------------------------
30,000,000 Erie County Tobacco Asset Securitization Corp. 7.029 1 06/01/2055 1,068,900
- --------------------------------------------------------------------------------------------------------------------------
23,800,000 Erie County Tobacco Asset Securitization Corp. 2,7 5.000 06/01/2045 24,023,482
- --------------------------------------------------------------------------------------------------------------------------
100,000 Essex County IDA
(North Country Community College Foundation) 5.000 06/01/2020 100,517
- --------------------------------------------------------------------------------------------------------------------------
130,000 Essex County IDA
(North Country Community College Foundation) 5.200 06/01/2025 131,265
- --------------------------------------------------------------------------------------------------------------------------
110,000 Essex County IDA
(North Country Community College Foundation) 5.300 06/01/2035 110,943
- --------------------------------------------------------------------------------------------------------------------------
175,000 Franklin County IDA
(North Country Community College Foundation) 5.200 06/01/2025 176,703
- --------------------------------------------------------------------------------------------------------------------------
3,750,000 Geneva IDA (Hobart & William Smith Colleges) 5.375 02/01/2033 3,981,000
- --------------------------------------------------------------------------------------------------------------------------
5,365,000 Hempstead IDA (WORCA) 6.900 08/01/2033 5,573,591
- --------------------------------------------------------------------------------------------------------------------------
880,000 Herkimer County IDA (Folts Adult Home) 5.500 03/20/2040 979,757
- --------------------------------------------------------------------------------------------------------------------------
1,790,000 Herkimer County IDA
(Herkimer County College Foundation) 6.250 08/01/2034 1,884,763
- --------------------------------------------------------------------------------------------------------------------------
1,335,000 Kiryas Joel BANs GO 6.100 05/11/2007 1,343,838
- --------------------------------------------------------------------------------------------------------------------------
23,000,000 L.I. Power Authority, Series C 2,7 5.000 09/01/2033 24,003,375
- --------------------------------------------------------------------------------------------------------------------------
4,405,000 L.I. Power Authority, Series A 5.125 09/01/2029 4,569,483
- --------------------------------------------------------------------------------------------------------------------------
3,500,000 L.I. Power Authority, Series C 5.000 09/01/2035 3,657,220
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Lyons Community Health Initiatives Corp. 5.550 09/01/2024 1,074,440
- --------------------------------------------------------------------------------------------------------------------------
200,000 Monroe County IDA (Rochester Institute of Technology) 5.250 04/01/2019 203,566
- --------------------------------------------------------------------------------------------------------------------------
525,000 Monroe County IDA (Rochester Institute of Technology) 5.375 04/01/2029 533,594
- --------------------------------------------------------------------------------------------------------------------------
200,000 Monroe County IDA (Summit at Brighton) 5.375 07/01/2032 201,768
- --------------------------------------------------------------------------------------------------------------------------
400,000 Monroe County IDA (Summit at Brighton) 5.500 07/01/2027 409,444
- --------------------------------------------------------------------------------------------------------------------------
302,900,000 Monroe County Tobacco Asset Securitization Corp. (TASC) 7.701 1 06/01/2061 5,282,576
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Monroe Newpower Corp. 5.500 01/01/2034 4,198,400
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe Newpower Corp. 5.625 01/01/2026 1,058,400
- --------------------------------------------------------------------------------------------------------------------------
30,000,00 MTA, Series A 2,7 5.000 11/15/2031 31,619,850
- --------------------------------------------------------------------------------------------------------------------------
13,840,000 MTA, Series A 2,7 5.125 11/15/2031 14,608,812
- --------------------------------------------------------------------------------------------------------------------------
20,090,000 MTA Service Contract, Series A 5.125 01/01/2029 21,198,164
- --------------------------------------------------------------------------------------------------------------------------
9,885,000 MTA, Series A 5.000 11/15/2031 10,418,691
- --------------------------------------------------------------------------------------------------------------------------
4,470,000 MTA, Series B 5.000 11/15/2031 4,691,891
24 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 20,000,000 MTA, Series F 5.000% 11/15/2030 $ 21,023,600
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 MTA, Series F 5.000 11/15/2035 5,229,000
- --------------------------------------------------------------------------------------------------------------------------
580,000 Nassau County IDA (ALIA-ACDS) 6.125 09/01/2018 603,861
- --------------------------------------------------------------------------------------------------------------------------
2,060,000 Nassau County IDA (ALIA-AP) 7.000 09/01/2028 2,193,200
- --------------------------------------------------------------------------------------------------------------------------
810,000 Nassau County IDA (ALIA-CMA) 6.125 09/01/2018 841,177
- --------------------------------------------------------------------------------------------------------------------------
895,000 Nassau County IDA (ALIA-CSMR) 6.125 09/01/2018 929,449
- --------------------------------------------------------------------------------------------------------------------------
580,000 Nassau County IDA (ALIA-EFLI) 6.125 09/01/2018 602,324
- --------------------------------------------------------------------------------------------------------------------------
460,000 Nassau County IDA (ALIA-HAII) 6.125 09/01/2018 477,705
- --------------------------------------------------------------------------------------------------------------------------
535,000 Nassau County IDA (ALIA-NCMRS) 6.125 09/01/2018 555,592
- --------------------------------------------------------------------------------------------------------------------------
2,725,000 Nassau County IDA (Hispanic Counseling Center) 7.625 06/01/2033 2,856,672
- --------------------------------------------------------------------------------------------------------------------------
95,000 Nassau County IDA, Series A-A 6.000 07/02/2021 96,439
- --------------------------------------------------------------------------------------------------------------------------
985,000 Nassau County IDA, Series A-B 6.000 07/01/2021 999,923
- --------------------------------------------------------------------------------------------------------------------------
90,000 Nassau County IDA, Series A-C 6.000 07/01/2021 91,364
- --------------------------------------------------------------------------------------------------------------------------
100,000 Nassau County IDA, Series A-D 6.000 07/01/2021 101,515
- --------------------------------------------------------------------------------------------------------------------------
3,800,000 Nassau County Tobacco Settlement Corp. 5.000 06/01/2035 3,859,470
- --------------------------------------------------------------------------------------------------------------------------
880,000 Nassau County Tobacco Settlement Corp. 5.125 06/01/2046 895,382
- --------------------------------------------------------------------------------------------------------------------------
85,990,000 Nassau County Tobacco Settlement Corp. 6.151 1 06/01/2046 8,948,979
- --------------------------------------------------------------------------------------------------------------------------
35,000,000 Nassau County Tobacco Settlement Corp. 6.629 1 06/01/2060 1,124,200
- --------------------------------------------------------------------------------------------------------------------------
115,000 New Hartford GO 5.000 09/15/2022 118,383
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Niagara County IDA (American Ref-Fuel Company) 3 5.550 11/15/2024 2,612,525
- --------------------------------------------------------------------------------------------------------------------------
500,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2034 529,250
- --------------------------------------------------------------------------------------------------------------------------
285,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2040 301,673
- --------------------------------------------------------------------------------------------------------------------------
20,000,000 NY Convention Center Devel. Corp. (Hotel Unit Fee) 5.000 11/15/2044 20,911,400
- --------------------------------------------------------------------------------------------------------------------------
1,185,000 NY Counties Tobacco Trust I 6.500 06/01/2035 1,264,833
- --------------------------------------------------------------------------------------------------------------------------
14,575,000 NY Counties Tobacco Trust II (TASC) 5.625 06/01/2035 15,098,971
- --------------------------------------------------------------------------------------------------------------------------
20,000 NY Counties Tobacco Trust II (TASC) 5.750 06/01/2043 20,821
- --------------------------------------------------------------------------------------------------------------------------
1,800,000 NY Counties Tobacco Trust III 6.000 06/01/2043 1,917,702
- --------------------------------------------------------------------------------------------------------------------------
100,000 NY Counties Tobacco Trust IV 5.000 06/01/2038 101,222
- --------------------------------------------------------------------------------------------------------------------------
3,500,000 NY Counties Tobacco Trust IV (TASC) 4 0.000 6 06/01/2041 2,834,405
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 NY Counties Tobacco Trust IV (TASC) 5.000 06/01/2045 6,056,340
- --------------------------------------------------------------------------------------------------------------------------
3,500,000 NY Counties Tobacco Trust IV (TASC) 4 6.650 06/01/2041 646,800
- --------------------------------------------------------------------------------------------------------------------------
5,900,000 NY Counties Tobacco Trust IV 2,7 5.000 06/01/2042 5,955,401
- --------------------------------------------------------------------------------------------------------------------------
84,200,000 NY Counties Tobacco Trust V 6.850 1 06/01/2055 3,287,168
- --------------------------------------------------------------------------------------------------------------------------
334,000,000 NY Counties Tobacco Trust V 7.850 1 06/01/2060 5,865,040
- --------------------------------------------------------------------------------------------------------------------------
121,775,000 NY TSASC, Inc. (TFABs) 5.125 06/01/2042 124,186,145
- --------------------------------------------------------------------------------------------------------------------------
35,000 NYC GO 5.000 08/01/2022 35,711
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC GO 5.000 03/01/2024 1,054,410
- --------------------------------------------------------------------------------------------------------------------------
790,000 NYC GO 5.000 04/01/2024 837,519
- --------------------------------------------------------------------------------------------------------------------------
5,100,000 NYC GO 5.000 08/01/2024 5,402,124
25 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 1,250,000 NYC GO 5.000% 04/01/2025 $ 1,322,188
- --------------------------------------------------------------------------------------------------------------------------
1,185,000 NYC GO 5.000 08/01/2025 1,252,391
- --------------------------------------------------------------------------------------------------------------------------
800,000 NYC GO 5.000 04/01/2026 844,912
- --------------------------------------------------------------------------------------------------------------------------
400,000 NYC GO 5.000 08/01/2027 421,800
- --------------------------------------------------------------------------------------------------------------------------
950,000 NYC GO 5.000 10/15/2027 990,907
- --------------------------------------------------------------------------------------------------------------------------
250,000 NYC GO 5.000 08/01/2028 263,625
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC GO 5.000 11/01/2028 4,193,640
- --------------------------------------------------------------------------------------------------------------------------
885,000 NYC GO 5.000 06/01/2029 933,188
- --------------------------------------------------------------------------------------------------------------------------
5,050,000 NYC GO 5.000 03/01/2030 5,287,603
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC GO 5.000 06/01/2030 1,048,030
- --------------------------------------------------------------------------------------------------------------------------
240,000 NYC GO 5.000 08/01/2030 252,211
- --------------------------------------------------------------------------------------------------------------------------
1,900,000 NYC GO 5.000 06/01/2031 1,998,838
- --------------------------------------------------------------------------------------------------------------------------
7,000,000 NYC GO 5.000 11/01/2034 7,300,930
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 NYC GO 5.000 03/01/2035 3,132,960
- --------------------------------------------------------------------------------------------------------------------------
3,750,000 NYC GO 5.000 04/01/2035 3,917,663
- --------------------------------------------------------------------------------------------------------------------------
585,000 NYC GO 5.000 08/01/2035 611,969
- --------------------------------------------------------------------------------------------------------------------------
1,270,000 NYC GO 5.250 03/15/2032 1,378,077
- --------------------------------------------------------------------------------------------------------------------------
2,130,000 NYC GO 5.375 12/01/2026 2,311,561
- --------------------------------------------------------------------------------------------------------------------------
915,000 NYC GO 5.500 06/01/2022 1,019,667
- --------------------------------------------------------------------------------------------------------------------------
385,000 NYC GO 5.500 06/01/2022 419,092
- --------------------------------------------------------------------------------------------------------------------------
15,000 NYC GO 5.500 02/15/2026 15,247
- --------------------------------------------------------------------------------------------------------------------------
75,000 NYC GO 5.875 08/01/2019 84,161
- --------------------------------------------------------------------------------------------------------------------------
680,000 NYC GO 5.875 08/01/2019 750,604
- --------------------------------------------------------------------------------------------------------------------------
505,000 NYC GO 6.125 08/01/2025 519,635
- --------------------------------------------------------------------------------------------------------------------------
5,000 NYC GO 7.500 02/01/2019 5,015
- --------------------------------------------------------------------------------------------------------------------------
20,000,000 NYC GO 2,7 5.000 08/01/2021 21,343,900
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 NYC HDC (De Sales Assisted Living Devel.) 3 5.125 11/01/2018 2,585,525
- --------------------------------------------------------------------------------------------------------------------------
1,421,897 NYC HDC (Keith Plaza) 6.500 02/15/2018 1,496,091
- --------------------------------------------------------------------------------------------------------------------------
750,000 NYC HDC (Multifamily Hsg.) 4.750 11/01/2035 761,318
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC HDC (Multifamily Hsg.) 3 5.250 11/01/2030 1,053,310
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 NYC HDC (Multifamily Hsg.) 3 5.250 11/01/2031 2,063,920
- --------------------------------------------------------------------------------------------------------------------------
1,545,000 NYC HDC (Multifamily Hsg.), Series E-1 3 4.950 11/01/2033 1,604,282
- --------------------------------------------------------------------------------------------------------------------------
2,158,444 NYC HDC (Seaview Towers) 6.500 01/15/2018 2,271,071
- --------------------------------------------------------------------------------------------------------------------------
100,000 NYC Health & Hospital Corp. 5.375 02/15/2026 104,643
- --------------------------------------------------------------------------------------------------------------------------
1,945,000 NYC Health & Hospital Corp. 3 5.450 02/15/2026 2,043,086
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 NYC IDA (American Council of Learned Societies) 5.250 07/01/2027 1,585,575
- --------------------------------------------------------------------------------------------------------------------------
2,760,000 NYC IDA (Beth Abraham Health Services) 6.500 02/15/2022 2,992,420
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2027 538,505
- --------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2034 2,244,858
26 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 6,000,000 NYC IDA (Calhoun School) 6.625% 12/01/2034 $ 6,371,640
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Calhoun School) 6.625 12/01/2034 534,685
- --------------------------------------------------------------------------------------------------------------------------
960,000 NYC IDA (Center for Elimination of Family Violence) 7.375 11/01/2036 975,350
- --------------------------------------------------------------------------------------------------------------------------
3,840,000 NYC IDA (Community Resource Developmentally Disabled) 7.500 08/01/2026 3,922,982
- --------------------------------------------------------------------------------------------------------------------------
150,000 NYC IDA (Comprehensive Care Management) 6.000 05/01/2026 154,128
- --------------------------------------------------------------------------------------------------------------------------
350,000 NYC IDA (Comprehensive Care Management) 6.125 11/01/2035 359,076
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC IDA (Eger Harbor House) 3 5.875 05/20/2044 1,121,320
- --------------------------------------------------------------------------------------------------------------------------
725,000 NYC IDA (Family Support Systems) 7.500 11/01/2034 748,686
- --------------------------------------------------------------------------------------------------------------------------
220,000 NYC IDA (Global Country World Peace) 7.250 11/01/2025 221,923
- --------------------------------------------------------------------------------------------------------------------------
170,000 NYC IDA (Global Country World Peace) 7.250 11/01/2025 170,003
- --------------------------------------------------------------------------------------------------------------------------
815,000 NYC IDA (Independent Living Assoc.) 6.200 07/01/2020 826,720
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Liberty-7 World Trade Center) 4 6.750 03/01/2015 538,220
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 NYC IDA (Liberty-IAC/Interactive Corp.) 3 5.000 09/01/2035 3,055,020
- --------------------------------------------------------------------------------------------------------------------------
3,700,000 NYC IDA (Lycee Francais De New York) 3 5.375 06/01/2023 3,881,707
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC IDA (Lycee Francais De New York) 6.800 06/01/2028 4,342,040
- --------------------------------------------------------------------------------------------------------------------------
370,000 NYC IDA (Metropolitan College of New York) 5.750 03/01/2020 366,404
- --------------------------------------------------------------------------------------------------------------------------
2,300,000 NYC IDA (MMC Corp.) 3 5.125 11/01/2035 2,370,794
- --------------------------------------------------------------------------------------------------------------------------
6,510,000 NYC IDA (Mount St. Vincent) 5.250 06/01/2036 6,747,941
- --------------------------------------------------------------------------------------------------------------------------
2,175,000 NYC IDA (Polytechnic University) 6.000 11/01/2020 2,300,693
- --------------------------------------------------------------------------------------------------------------------------
4,080,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 4,312,723
- --------------------------------------------------------------------------------------------------------------------------
1,380,000 NYC IDA (PSCH) 6.375 07/01/2033 1,478,960
- --------------------------------------------------------------------------------------------------------------------------
15,320,000 NYC IDA (Queens Baseball Stadium) 5.000 01/01/2046 16,111,125
- --------------------------------------------------------------------------------------------------------------------------
750,000 NYC IDA (Reece School) 7.500 12/01/2037 759,278
- --------------------------------------------------------------------------------------------------------------------------
295,000 NYC IDA (Reece School) 7.500 12/01/2037 295,056
- --------------------------------------------------------------------------------------------------------------------------
1,480,000 NYC IDA (Staten Island University Hospital) 6.450 07/01/2032 1,559,535
- --------------------------------------------------------------------------------------------------------------------------
6,020,000 NYC IDA (The Child School) 7.550 06/01/2033 6,503,045
- --------------------------------------------------------------------------------------------------------------------------
15,785,000 NYC IDA (Touro College) 6.350 06/01/2029 16,707,160
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Urban Resource Institute) 7.375 11/01/2033 5,964,392
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Vocational Instruction) 7.750 02/01/2033 5,387,648
- --------------------------------------------------------------------------------------------------------------------------
4,525,000 NYC IDA (YMCA of Greater NY) 3 5.250 08/01/2021 4,712,335
- --------------------------------------------------------------------------------------------------------------------------
20,000,000 NYC Municipal Water Finance Authority 2,7 5.000 06/15/2039 21,020,300
- --------------------------------------------------------------------------------------------------------------------------
13,015,000 NYC Municipal Water Finance Authority 5.000 06/15/2032 13,539,635
- --------------------------------------------------------------------------------------------------------------------------
2,300,000 NYC Municipal Water Finance Authority 3 5.000 06/15/2037 2,413,413
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC Municipal Water Finance Authority 5.000 06/15/2038 519,445
- --------------------------------------------------------------------------------------------------------------------------
355,000 NYC Municipal Water Finance Authority 5.125 06/15/2030 361,681
- --------------------------------------------------------------------------------------------------------------------------
20,000 NYC Municipal Water Finance Authority 5.250 06/15/2025 21,292
- --------------------------------------------------------------------------------------------------------------------------
40,000 NYC Municipal Water Finance Authority 5.500 06/15/2024 40,460
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 NYC Transitional Finance Authority (Future Tax), Series E 3 5.000 02/01/2033 5,207,600
- --------------------------------------------------------------------------------------------------------------------------
250,000 NYS DA (Cabrini Westchester) 5 5.100 02/15/2026 272,330
27 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 450,000 NYS DA (Cabrini Westchester) 5 5.200% 02/15/2041 $ 486,135
- --------------------------------------------------------------------------------------------------------------------------
385,000 NYS DA (Chapel Oaks) 5.450 07/01/2026 400,015
- --------------------------------------------------------------------------------------------------------------------------
1,870,000 NYS DA (Lenox Hill Hospital Obligated Group) 5.500 07/01/2030 1,937,376
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYS DA (Maimonides Medical Center) 5.750 08/01/2024 1,021,700
- --------------------------------------------------------------------------------------------------------------------------
1,290,000 NYS DA (Memorial Sloan-Kettering) 5.000 07/01/2035 1,360,718
- --------------------------------------------------------------------------------------------------------------------------
2,100,000 NYS DA (Mental Health Services Facilities) 3 5.000 02/15/2035 2,189,628
- --------------------------------------------------------------------------------------------------------------------------
665,000 NYS DA (Montefiore Medical Center) 5.450 08/01/2029 700,425
- --------------------------------------------------------------------------------------------------------------------------
600,000 NYS DA
(MSH/NYU Hospital Center/HJDOI Obligated Group) 5.500 07/01/2026 609,720
- --------------------------------------------------------------------------------------------------------------------------
8,890,000 NYS DA
(MSH/NYU Hospital Center/HJDOI Obligated Group) 6.500 07/01/2025 9,618,980
- --------------------------------------------------------------------------------------------------------------------------
680,000 NYS DA (Nursing Home) 4.900 02/15/2041 695,776
- --------------------------------------------------------------------------------------------------------------------------
835,000 NYS DA (Nursing Home) 4.950 02/15/2045 858,480
- --------------------------------------------------------------------------------------------------------------------------
1,360,000 NYS DA (NY Methodist Hospital) 5.250 07/01/2024 1,438,377
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYS DA
(NY Society for the Relief of the Ruptured and Crippled) 5.000 08/15/2029 4,231,080
- --------------------------------------------------------------------------------------------------------------------------
1,695,000 NYS DA (Nyack Hospital) 6.250 07/01/2013 1,686,881
- --------------------------------------------------------------------------------------------------------------------------
490,000 NYS DA (Providence Rest) 5.000 07/01/2035 503,784
- --------------------------------------------------------------------------------------------------------------------------
1,300,000 NYS DA (Providence Rest) 5.125 07/01/2030 1,359,605
- --------------------------------------------------------------------------------------------------------------------------
340,000 NYS DA (Providence Rest) 5.250 07/01/2025 360,407
- --------------------------------------------------------------------------------------------------------------------------
650,000 NYS DA (Rochester General Hospital) 5.000 12/01/2035 677,885
- --------------------------------------------------------------------------------------------------------------------------
70,000 NYS DA (Sarah Neuman Nursing Home) 5.500 08/01/2037 72,427
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (School District Financing) 5.750 10/01/2030 5,516,300
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYS DA (SS Joachim & Anne Residence) 5.250 07/01/2027 4,182,320
- --------------------------------------------------------------------------------------------------------------------------
65,000 NYS DA (St. Joseph's Hospital Health Center) 5.250 07/01/2018 67,022
- --------------------------------------------------------------------------------------------------------------------------
13,200,000 NYS DA (St. Lukes Roosevelt Hospital) 4.900 08/15/2031 13,626,228
- --------------------------------------------------------------------------------------------------------------------------
13,090,000 NYS DA (State University Educational Facilities) 5.250 05/15/2015 14,308,286
- --------------------------------------------------------------------------------------------------------------------------
2,510,000 NYS DA (State University Educational Facilities) 5.250 05/15/2021 2,796,040
- --------------------------------------------------------------------------------------------------------------------------
5,755,000 NYS DA (The Highlands Living) 6.600 02/01/2034 5,799,544
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYS DA (Various School Districts) 5.000 04/01/2035 526,350
- --------------------------------------------------------------------------------------------------------------------------
100,000 NYS DA (Vassar College) 5.000 07/01/2025 101,571
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYS DA (W.K. Nursing Home) 6.125 02/01/2036 1,026,490
- --------------------------------------------------------------------------------------------------------------------------
1,220,000 NYS DA (Winthrop University Hospital) 5.500 07/01/2023 1,296,506
- --------------------------------------------------------------------------------------------------------------------------
20,000 NYS EFC (Clean Water & Drinking Revolving Funds) 5.000 06/15/2027 20,744
- --------------------------------------------------------------------------------------------------------------------------
85,000 NYS EFC (NYS Water Services) 6.600 09/15/2012 85,199
- --------------------------------------------------------------------------------------------------------------------------
445,000 NYS ERDA (Brooklyn Union Gas Company) 5.500 01/01/2021 454,541
- --------------------------------------------------------------------------------------------------------------------------
200,000 NYS HFA (Fulton Manor) 6.100 11/15/2025 204,682
- --------------------------------------------------------------------------------------------------------------------------
9,730,000 NYS HFA, Series A 2,7 6.100 11/01/2015 9,942,211
- --------------------------------------------------------------------------------------------------------------------------
95,000 NYS Medcare (Hospital & Nursing Home) 5.400 08/15/2033 95,125
- --------------------------------------------------------------------------------------------------------------------------
640,000 NYS Medcare (Hospital & Nursing Home) 6.300 08/15/2023 641,254
28 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 200,000 NYS UDC (Subordinated Lien) 5.500% 07/01/2022 $ 204,240
- --------------------------------------------------------------------------------------------------------------------------
250,000 Oneida County IDA (Mohawk Valley Handicapped Services) 5.300 03/15/2019 260,323
- --------------------------------------------------------------------------------------------------------------------------
55,000 Onondaga County IDA (Salina Free Library) 5.500 12/01/2022 58,897
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Orange County IDA (Glen Arden) 5.625 01/01/2018 1,023,480
- --------------------------------------------------------------------------------------------------------------------------
275,000 Orange County IDA (Glen Arden) 5.700 01/01/2028 280,242
- --------------------------------------------------------------------------------------------------------------------------
1,600,000 Otsego County IDA (Hartwick College) 5.900 07/01/2022 1,659,376
- --------------------------------------------------------------------------------------------------------------------------
15,205,000 Port Authority NY/NJ (Delta Air Lines) 4 6.950 06/01/2008 15,243,165
- --------------------------------------------------------------------------------------------------------------------------
38,280,000 Port Authority NY/NJ, 140th Series 2,7 5.000 12/01/2034 40,425,403
- --------------------------------------------------------------------------------------------------------------------------
25,660,000 Port Authority NY/NJ, 121st Series 5.125 10/15/2030 26,272,504
- --------------------------------------------------------------------------------------------------------------------------
750,000 Port Authority NY/NJ, 132nd Series 5.000 09/01/2038 784,185
- --------------------------------------------------------------------------------------------------------------------------
3,180,000 Rensselaer County IDA (Emma Willard School) 5.000 01/01/2026 3,382,025
- --------------------------------------------------------------------------------------------------------------------------
3,550,000 Rensselaer County IDA (Emma Willard School) 5.000 01/01/2031 3,747,593
- --------------------------------------------------------------------------------------------------------------------------
6,275,000 Rensselaer County IDA (Emma Willard School) 5.000 01/01/2036 6,604,626
- --------------------------------------------------------------------------------------------------------------------------
2,600,000 Rensselaer County IDA (Rensselaer Polytechnical Institute) 3 5.000 03/01/2036 2,726,334
- --------------------------------------------------------------------------------------------------------------------------
2,680,000 Rensselaer County Tobacco Asset Securitization Corp. 5.625 06/01/2035 2,776,346
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Rensselaer County Tobacco Asset Securitization Corp. 5.750 06/01/2043 2,082,140
- --------------------------------------------------------------------------------------------------------------------------
1,060,000 Rockland County Tobacco Asset Securitization Corp. 5.625 08/15/2035 1,099,315
- --------------------------------------------------------------------------------------------------------------------------
3,150,000 Rockland County Tobacco Asset Securitization Corp. 5.750 08/15/2043 3,283,497
- --------------------------------------------------------------------------------------------------------------------------
101,000,000 Rockland County Tobacco Asset Securitization Corp. 6.252 1 08/15/2045 9,804,070
- --------------------------------------------------------------------------------------------------------------------------
53,000,000 Rockland County Tobacco Asset Securitization Corp. 6.637 1 08/15/2050 3,072,410
- --------------------------------------------------------------------------------------------------------------------------
45,000,000 Rockland County Tobacco Asset Securitization Corp. 7.619 1 08/15/2060 855,000
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Saratoga County IDA (Saratoga Hospital/
Saratoga Care/Benedict Community Health Center) 5.125 12/01/2033 2,618,900
- --------------------------------------------------------------------------------------------------------------------------
250,000 SONYMA, Series 83 5.550 10/01/2027 257,493
- --------------------------------------------------------------------------------------------------------------------------
255,000 Suffolk County IDA (ALIA-ACLD) 5.950 10/01/2021 255,043
- --------------------------------------------------------------------------------------------------------------------------
375,000 Suffolk County IDA (ALIA-DDI) 5.950 10/01/2021 375,064
- --------------------------------------------------------------------------------------------------------------------------
95,000 Suffolk County IDA (ALIA-FREE) 5.950 10/01/2021 95,016
- --------------------------------------------------------------------------------------------------------------------------
70,000 Suffolk County IDA (ALIA-IGHL) 5.950 10/01/2021 70,012
- --------------------------------------------------------------------------------------------------------------------------
40,000 Suffolk County IDA (ALIA-IGHL) 6.000 10/01/2031 40,017
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Suffolk County IDA (ALIA-IGHL) 7.250 12/01/2033 4,241,440
- --------------------------------------------------------------------------------------------------------------------------
230,000 Suffolk County IDA (ALIA-UCPAGS) 5.950 10/01/2021 230,039
- --------------------------------------------------------------------------------------------------------------------------
45,000 Suffolk County IDA (Catholic Charities) 6.000 10/01/2020 45,812
- --------------------------------------------------------------------------------------------------------------------------
45,000 Suffolk County IDA (DDI) 6.000 10/01/2020 45,812
- --------------------------------------------------------------------------------------------------------------------------
45,000 Suffolk County IDA (DDI) 6.000 10/01/2020 45,812
- --------------------------------------------------------------------------------------------------------------------------
7,460,000 Suffolk County IDA (Dowling College) 5.000 06/01/2036 7,681,562
- --------------------------------------------------------------------------------------------------------------------------
205,000 Suffolk County IDA (Dowling College) 6.700 12/01/2020 209,742
- --------------------------------------------------------------------------------------------------------------------------
40,000 Suffolk County IDA (Independent Group Home Living) 6.000 10/01/2020 40,722
- --------------------------------------------------------------------------------------------------------------------------
575,000 Suffolk County IDA (Jefferson's Ferry) 5.000 11/01/2028 593,607
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Suffolk County IDA (L.I. Network Community Services) 7.550 02/01/2034 1,060,490
- --------------------------------------------------------------------------------------------------------------------------
620,000 Suffolk County IDA (Nassau-Suffolk Services for Autism) 6.750 11/01/2036 630,273
29 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 210,000 Suffolk County IDA (Nassau-Suffolk Services for Autism) 6.750% 11/01/2036 $ 210,410
- --------------------------------------------------------------------------------------------------------------------------
5,985,000 Suffolk County IDA (Pederson-Krager Center) 7.000 11/01/2035 6,086,865
- --------------------------------------------------------------------------------------------------------------------------
505,000 Suffolk County IDA (Pederson-Krager Center) 7.200 02/01/2035 520,655
- --------------------------------------------------------------------------------------------------------------------------
45,000 Suffolk County IDA (Suffolk Hotels) 6.000 10/01/2020 45,812
- --------------------------------------------------------------------------------------------------------------------------
70,000 Suffolk County IDA (WORCA) 6.000 10/01/2020 71,264
- --------------------------------------------------------------------------------------------------------------------------
555,000 Sullivan County IDA (Center for Discovery) 5.625 06/01/2013 560,483
- --------------------------------------------------------------------------------------------------------------------------
745,000 Sullivan County IDA (Center for Discovery) 6.000 06/01/2019 756,667
- --------------------------------------------------------------------------------------------------------------------------
545,000 Sullivan County IDA (Center for Discovery) 6.500 06/01/2025 553,943
- --------------------------------------------------------------------------------------------------------------------------
520,000 Sullivan County IDA (Center for Discovery) 6.950 02/01/2035 537,415
- --------------------------------------------------------------------------------------------------------------------------
445,000 Syracuse IDA (Crouse Irving Companies) 5.250 01/01/2017 457,887
- --------------------------------------------------------------------------------------------------------------------------
25,000 Triborough Bridge & Tunnel Authority 5.000 01/01/2020 26,215
- --------------------------------------------------------------------------------------------------------------------------
54,350,000 Triborough Bridge & Tunnel Authority 2,7 5.000 11/15/2032 56,570,332
- --------------------------------------------------------------------------------------------------------------------------
10,250,000 Triborough Bridge & Tunnel Authority 2,7 5.000 11/15/2027 10,713,411
- --------------------------------------------------------------------------------------------------------------------------
18,200,000 Triborough Bridge & Tunnel Authority 2,7 5.125 11/15/2029 19,312,293
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Triborough Bridge & Tunnel Authority 2,7 5.250 11/15/2023 10,808,300
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Triborough Bridge & Tunnel Authority 2,7 5.000 11/15/2032 10,408,600
- --------------------------------------------------------------------------------------------------------------------------
600,000 Triborough Bridge & Tunnel Authority, Series A 5.000 11/15/2035 634,920
- --------------------------------------------------------------------------------------------------------------------------
35,000,000 TSASC, Inc. (TFABs) 5.000 06/01/2034 35,547,750
- --------------------------------------------------------------------------------------------------------------------------
35,455,000 TSASC, Inc. (TFABs) 5.750 07/15/2032 39,378,096
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Utica IDA (Utica College Civic Facility) 5.750 08/01/2028 4,191,200
- --------------------------------------------------------------------------------------------------------------------------
1,250,000 Utica IDA (Utica College Civic Facility) 6.750 12/01/2021 1,369,963
- --------------------------------------------------------------------------------------------------------------------------
250,000 Westchester County IDA (Guiding Eyes for the Blind) 5.375 08/01/2024 261,850
- --------------------------------------------------------------------------------------------------------------------------
500,000 Westchester County IDA (Kendal on Hudson) 6.500 01/01/2034 535,740
- --------------------------------------------------------------------------------------------------------------------------
1,855,000 Westchester County IDA (Rippowam-Cisqua School) 5.750 06/01/2029 1,914,917
- --------------------------------------------------------------------------------------------------------------------------
320,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2013 340,125
- --------------------------------------------------------------------------------------------------------------------------
600,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2033 641,994
- --------------------------------------------------------------------------------------------------------------------------
5,095,000 Westchester County Tobacco Asset Securitization Corp. 3 5.125 06/01/2045 5,187,474
- --------------------------------------------------------------------------------------------------------------------------
500,000 Yonkers GO 5.000 08/01/2035 527,175
- --------------------------------------------------------------------------------------------------------------------------
800,000 Yonkers IDA (St. Joseph's Hospital) 5.900 03/01/2008 800,632
--------------
1,161,058,945
- --------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--14.8%
8,510,000 Guam GO, Series A 5.400 11/15/2018 8,516,212
- --------------------------------------------------------------------------------------------------------------------------
500,000 Guam Government Waterworks Authority
& Wastewater System 5.875 07/01/2035 537,090
- --------------------------------------------------------------------------------------------------------------------------
5,250,000 Guam Power Authority, Series A 3 5.125 10/01/2029 5,486,618
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Guam Power Authority, Series A 5.250 10/01/2034 10,480,000
- --------------------------------------------------------------------------------------------------------------------------
505,000 Puerto Rico Children's Trust Fund (TASC) 5.500 05/15/2039 523,988
- --------------------------------------------------------------------------------------------------------------------------
84,000,000 Puerto Rico Children's Trust Fund (TASC) 6.343 1 05/15/2050 5,529,720
30 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$ 4,030,000 Puerto Rico Commonwealth GO 5.000% 07/01/2027 $ 4,159,000
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Puerto Rico Commonwealth GO 5.000 07/01/2034 4,126,800
- --------------------------------------------------------------------------------------------------------------------------
500,000 Puerto Rico Commonwealth GO 5.000 07/01/2035 518,530
- --------------------------------------------------------------------------------------------------------------------------
355,000 Puerto Rico Highway & Transportation Authority 5.000 07/01/2028 365,529
- --------------------------------------------------------------------------------------------------------------------------
50,000 Puerto Rico Highway & Transportation Authority, Series A 5.000 07/01/2038 50,757
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Highway & Transportation Authority, Series AA 5.000 07/01/2035 1,027,310
- --------------------------------------------------------------------------------------------------------------------------
20,380,000 Puerto Rico Highway & Transportation Authority, Series G 5.000 07/01/2042 20,837,735
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Puerto Rico Highway & Transportation Authority, Series J 5.125 07/01/2039 10,344,400
- --------------------------------------------------------------------------------------------------------------------------
12,000,000 Puerto Rico Highway & Transportation Authority, Series J 5.125 07/01/2043 12,391,920
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2027 1,039,820
- --------------------------------------------------------------------------------------------------------------------------
3,230,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2030 3,353,871
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2035 1,033,960
- --------------------------------------------------------------------------------------------------------------------------
1,400,000 Puerto Rico Infrastructure 5.000 07/01/2037 1,450,204
- --------------------------------------------------------------------------------------------------------------------------
100,000 Puerto Rico ITEMECF (G.R.B. Guaynabo) 5.625 07/01/2022 102,103
- --------------------------------------------------------------------------------------------------------------------------
4,305,000 Puerto Rico ITEMECF (Polytechnic University
of Puerto Rico) 5.000 08/01/2022 4,411,979
- --------------------------------------------------------------------------------------------------------------------------
38,000,000 Puerto Rico Public Buildings Authority 5.000 07/01/2036 39,166,980
- --------------------------------------------------------------------------------------------------------------------------
50,000 Puerto Rico Public Buildings Authority 5.125 07/01/2022 52,457
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Puerto Rico Public Buildings Authority 5.250 07/01/2029 2,130,160
- --------------------------------------------------------------------------------------------------------------------------
12,640,000 Puerto Rico Public Buildings Authority 5.500 07/01/2023 13,861,782
- --------------------------------------------------------------------------------------------------------------------------
12,745,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 13,560,680
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I., Series A 5.375 06/01/2034 1,054,110
- --------------------------------------------------------------------------------------------------------------------------
1,700,000 V.I. Public Finance Authority (Gross Receipts Taxes Loan) 3 5.000 10/01/2031 1,741,106
- --------------------------------------------------------------------------------------------------------------------------
1,485,000 V.I. Public Finance Authority, Series A 3 5.500 10/01/2022 1,532,669
- --------------------------------------------------------------------------------------------------------------------------
250,000 V.I. Water & Power Authority 5.300 07/01/2018 254,628
--------------
169,642,118
--------------
Total Municipal Bonds and Notes (Cost $1,269,689,256) 1,330,701,063
- --------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES--0.4%
- --------------------------------------------------------------------------------------------------------------------------
5,046,000 Commonwealth of Puerto Rico (Cost $5,046,000) 4.900 10/25/06 5,046,000
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,274,735,256)--116.6% 1,335,747,063
- --------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES--(16.6) (190,378,954)
--------------
NET ASSETS--100.0% $1,145,368,109
==============
31 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Zero coupon bond reflects effective yield on the date of purchase.
2. Security represents the underlying municipal bond on an inverse floating rate
security. The bond was purchased by the Fund and subsequently segregated and
transferred to a trust. See Note 1 of accompanying Notes.
3. All or a portion of the security has been segregated for collateral to cover
borrowings. See Note 6 of accompanying Notes.
4. Illiquid security. The aggregate value of illiquid securities as of September
30, 2006 was $19,262,590, which represents 1.68% of the Fund's net assets. See
Note 5 of accompanying Notes.
5. When-issued security or forward commitment to be delivered and settled after
September 30, 2006. See Note 1 of accompanying Notes.
6. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
7. Security has been restated. See Note 9 of accompanying Notes.
To simplify the listings of securities, abbreviations are used per the table
below:
ACDS Assoc. for Children with Down Syndrome
ACLD Adults and Children with Learning and Developmental Disabilities
ALIA Alliance of Long Island Agencies
AP Advantage Planning, Inc.
BANs Bond Anticipation Notes
CMA Community Mainstreaming Associates, Inc.
CSMR Community Services for the Mentally Retarded
DA Dormitory Authority
DDI Developmental Disabilities Institute
EFC Environmental Facilities Corp.
EFLI Epilepsy Foundation of L.I., Inc.
ERDA Energy Research and Devel. Authority
FREE Family Residences and Essential Enterprises
GO General Obligation
HAII Homes Anew II, Inc.
HDC Housing Devel. Corp.
HFA Housing Finance Agency
HJDOI Hospital for Joint Diseases Orthopedic Institute
IDA Industrial Devel. Agency
IGHL Independent Group Home for Living
ITEMECF Industrial, Tourist, Educational, Medical and Environmental
Community Facilities
L.I. Long Island
MMC Mercy Medical Center
MSH/NYU Mount Sinai Hospital/New York University
MTA Metropolitan Transportation Authority
NCMRS Nassau Community Mental Retardation Services Company
NY/NJ New York/New Jersey
NYC New York City
NYS New York State
PSCH Professional Service Centers for the Handicapped, Inc.
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
SONYMA State of New York Mortgage Agency
TASC Tobacco Settlement Asset-Backed Bonds
TFABs Tobacco Flexible Amortization Bonds
UCPAGS United Cerebral Palsy Assoc. of Greater Suffolk
UDC Urban Development Corp.
V.I. United States Virgin Islands
WORCA Working Organization for Retarded Children and Adults
YMCA Young Men's Christian Assoc.
32 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY VALUE PERCENT
- --------------------------------------------------------------------------------
Tobacco Settlement Payments $ 322,408,566 24.1%
Highways/Railways 257,290,690 19.3
Higher Education 118,893,045 8.9
General Obligation 99,432,804 7.4
Not-for-Profit Organization 83,949,536 6.3
Marine/Aviation Facilities 67,482,092 5.1
Hospital/Health Care 65,657,914 4.9
Municipal Leases 56,055,942 4.2
Electric Utilities 53,708,124 4.0
Water Utilities 38,559,259 2.9
Education 30,717,621 2.3
Adult Living Facilities 30,447,812 2.3
Hotels, Restaurants & Leisure 23,966,420 1.8
Multifamily Housing 23,928,121 1.8
Sales Tax Revenue 22,042,055 1.7
Sports Facility Revenue 16,111,125 1.2
Airlines 15,243,165 1.1
Commercial Banks 5,046,000 0.4
Resource Recovery 2,612,525 0.2
Special Tax 1,450,204 0.1
Gas Utilities 454,541 0.0
Single Family Housing 257,493 0.0
Parking Fee Revenue 32,009 0.0
-----------------------------
Total $ 1,335,747,063 100.0%
=============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES September 30, 2006
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,274,735,256)--see accompanying statement of investments $ 1,335,747,063
- ------------------------------------------------------------------------------------------------------------
Cash 847,582
- ------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 16,789,997
Shares of beneficial interest sold 6,895,949
Investments sold 1,248,694
Other 28,250
----------------
Total assets 1,361,557,535
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable on borrowings (See Note 6) 15,400,000
Investments purchased (including $748,462 purchased on a when-issued basis
or forward commitment) 2,200,702
Payable for short-term floating rate notes issued (See Note 1) 196,090,000
Shares of beneficial interest redeemed 945,930
Distribution and service plan fees 640,429
Dividends 591,276
Trustees' compensation 125,527
Interest expense 76,015
Transfer and shareholder servicing agent fees 34,824
Shareholder communications 29,127
Other 55,596
----------------
Total liabilities 216,189,426
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,145,368,109
================
- ------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 86,655
- ------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,085,949,189
- ------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (457,478)
- ------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (1,222,064)
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 61,011,807
----------------
NET ASSETS $ 1,145,368,109
================
34 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,005,912,381 and
76,107,790 shares of beneficial interest outstanding) $ 13.22
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $ 13.88
- ------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $32,792,587 and 2,480,198 shares
of beneficial interest outstanding) $ 13.22
- ------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $106,663,141 and 8,067,502 shares
of beneficial interest outstanding) $ 13.22
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF OPERATIONS For the Year Ended September 30, 2006
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------------
Interest $ 57,535,488
- ------------------------------------------------------------------------------------------------------------
Other income 3,273
----------------
Total investment income 57,538,761
- ------------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------------
Management fees 4,531,889
- ------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,900,420
Class B 294,710
Class C 646,165
- ------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 313,307
Class B 18,388
Class C 28,048
- ------------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 68,651
Class B 4,006
Class C 4,743
- ------------------------------------------------------------------------------------------------------------
Interest expense and fees from short-term floating rate notes issued (See Note 1) 5,585,539
- ------------------------------------------------------------------------------------------------------------
Interest expense on borrowings 975,398
- ------------------------------------------------------------------------------------------------------------
Trustees' compensation 24,110
- ------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 2,515
- ------------------------------------------------------------------------------------------------------------
Other 159,312
----------------
Total expenses 14,557,201
Less reduction to custodian expenses (964)
----------------
Net expenses 14,556,237
- ------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 42,982,524
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- ------------------------------------------------------------------------------------------------------------
Net realized gain on investments 12,357,229
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 16,054,088
- ------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 71,393,841
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
(As restated, see Note 9)
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, 2006 2005
- ------------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------------
Net investment income $ 42,982,524 $ 32,063,361
- ------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 12,357,229 (7,604,157)
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 16,054,088 30,395,829
-----------------------------------
Net increase in net assets resulting from operations 71,393,841 54,855,033
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (40,672,456) (30,898,159)
Class B (1,230,537) (1,230,516)
Class C (2,615,666) (912,821)
- ------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 322,309,126 99,925,792
Class B 5,372,413 (1,865,322)
Class C 73,037,346 14,788,701
- ------------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------
Total increase 427,594,067 134,662,708
- ------------------------------------------------------------------------------------------------------------
Beginning of period 717,774,042 583,111,334
-----------------------------------
End of period (including accumulated net investment income (loss)
of $(457,478) and $1,078,657, respectively) $ 1,145,368,109 $ 717,774,042
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF CASH FLOWS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 2006
- ------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 71,393,841
- ------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (818,346,609)
Proceeds from disposition of investment securities 379,991,698
Short-term investment securities, net (18,537,825)
Premium amortization 1,215,465
Discount accretion (2,646,456)
Net realized gain on investments (12,357,229)
Net change in unrealized appreciation on investments (16,054,088)
Increase in interest receivable (6,127,084)
Increase in receivable for securities sold (1,248,694)
Increase in other assets (5,252)
Decrease in payable for securities purchased (7,076,203)
Increase in payable for accrued expenses 275,811
----------------
Net cash used in operating activities (429,522,625)
- ------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------------------------------------------------------------------------------
Proceeds from bank borrowing 444,400,000
Payments on bank borrowing (445,000,000)
Proceeds from short-term floating rate notes issued 77,345,000
Proceeds from shares sold 475,416,368
Payment on shares redeemed (106,875,200)
Cash distributions paid (15,462,869)
----------------
Net cash provided by financing activities 429,823,299
- ------------------------------------------------------------------------------------------------------------
Net increase in cash 300,674
- ------------------------------------------------------------------------------------------------------------
Cash, beginning balance 546,908
----------------
Cash, ending balance $ 847,582
================
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $28,792,538
Cash paid for interest on bank borrowings--$949,030
Cash paid for interest on short-term floating rate notes issued--$5,585,539
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS
(As restated, see Note 9)
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.91 $ 12.45 $ 12.31 $ 12.75 $ 12.67
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .61 1 .66 1 .72 .71 .68
Net realized and unrealized gain (loss) .34 .49 .11 (.44) .06
-------------------------------------------------------------------------------
Total from investment operations .95 1.15 .83 .27 .74
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.64) (.69) (.69) (.71) (.66)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.22 $ 12.91 $ 12.45 $ 12.31 $ 12.75
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 7.61% 9.41% 6.91% 2.07% 6.11%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,005,912 $ 659,975 $ 539,834 $ 533,563 $ 536,126
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 824,276 $ 580,413 $ 536,613 $ 531,977 $ 525,519
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.76% 5.17% 5.84% 5.57% 5.44%
Expenses excluding interest and fees
on short-term floating rate notes issued 0.90% 0.93% 0.91% 0.93% 0.89%
Interest and fees on short-term
floating rate notes issued 4 0.61% 0.43% 0.26% 0.26% 0.07%
-------------------------------------------------------------------------------
Total expenses 1.51% 1.36% 1.17% 1.19% 0.96%
Expenses after payments and waivers and
reduction to custodian expenses 1.51% 1.36% 1.14% 1.19% 0.96%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 36% 8% 5% 45% 64%
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. Interest and fee expense relates to the Fund's liability for short-term
floating rate notes issued in conjuction with inverse floating rate security
transactions. See Note 1 of accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.91 $ 12.45 $ 12.32 $ 12.75 $ 12.68
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .51 1 .56 1 .62 .60 .58
Net realized and unrealized gain (loss) .34 .49 .10 (.42) .06
-------------------------------------------------------------------------------
Total from investment operations .85 1.05 .72 .18 .64
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.54) (.59) (.59) (.61) (.57)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.22 $ 12.91 $ 12.45 $ 12.32 $ 12.75
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.76% 8.55% 5.99% 1.36% 5.22%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 32,793 $ 26,680 $ 27,555 $ 32,851 $ 40,896
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 29,544 $ 26,977 $ 30,212 $ 36,000 $ 42,021
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 3.99% 4.41% 5.05% 4.77% 4.67%
Expenses excluding interest and fees
on short-term floating rate notes issued 1.70% 1.71% 1.69% 1.71% 1.66%
Interest and fees on short-term
floating rate notes issued 4 0.61% 0.43% 0.26% 0.26% 0.07%
-------------------------------------------------------------------------------
Total expenses 2.31% 2.14% 1.95% 1.97% 1.73%
Expenses after payments and waivers and
reduction to custodian expenses 2.30% 2.14% 1.92% 1.97% 1.73%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 36% 8% 5% 45% 64%
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. Interest and fee expense relates to the Fund's liability for short-term
floating rate notes issued in conjuction with inverse floating rate security
transactions. See Note 1 of accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS C YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.91 $ 12.45 $ 12.32 $ 12.75 $ 12.68
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .50 1 .55 1 .62 .60 .57
Net realized and unrealized gain (loss) .35 .50 .10 (.42) .07
-------------------------------------------------------------------------------
Total from investment operations .85 1.05 .72 .18 .64
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.54) (.59) (.59) (.61) (.57)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.22 $ 12.91 $ 12.45 $ 12.32 $ 12.75
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.78% 8.55% 5.99% 1.35% 5.22%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 106,663 $ 31,119 $ 15,723 $ 13,080 $ 10,603
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 64,991 $ 20,347 $ 14,598 $ 11,852 $ 9,183
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 3.89% 4.32% 5.04% 4.78% 4.66%
Expenses excluding interest and fees
on short-term floating rate notes issued 1.66% 1.70% 1.69% 1.72% 1.66%
Interest and fees on short-term
floating rate notes issued 4 0.61% 0.43% 0.26% 0.26% 0.07%
-------------------------------------------------------------------------------
Total expenses 2.27% 2.13% 1.95% 1.98% 1.73%
Expenses after payments and waivers and
reduction to custodian expenses 2.27% 2.13% 1.92% 1.98% 1.73%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 36% 8% 5% 45% 64%
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. Interest and fee expense relates to the Fund's liability for short-term
floating rate notes issued in conjuction with inverse floating rate security
transactions. See Note 1 of accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free New York Municipals (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek the maximum current income
exempt from federal, New York State and New York City income taxes for
individual investors consistent with preservation of capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ(R) 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 theprincipal 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
42 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
are valued at their fair value. Foreign and domestic securities whose values
have been materially affected by what the Manager identifies as a significant
event occurring before the Fund's assets are valued but after the close of their
respective exchanges will be fair valued. Fair value is determined in good faith
using consistently applied procedures under the supervision of the Board of
Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
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 take place generally at least ten days or more after the
trade date. Normally the settlement date occurs within six months after the
trade date; however, the Fund may, from time to time, purchase securities whose
settlement date extends six months or more beyond trade date. During this
period, such securities do not earn interest, are subject to market fluctuation
and may increase or decrease in value prior to their delivery. The Fund
maintains internally designated assets with a market value equal to or greater
than the amount of its purchase commitments. The purchase of securities on a
when-issued basis or forward commitment may increase the volatility of the
Fund's net asset value to the extent the Fund executes such transactions while
remaining substantially fully invested. The Fund may also sell securities that
it purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of September 30, 2006, the Fund had purchased $748,462
of securities issued on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund will not invest more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $104,665,670 as of September 30, 2006, which
represents 7.69% of the Fund's total assets.
Certain inverse floating rate securities are created when the Fund
purchases and subsequently transfers a municipal bond security (the "municipal
bond") to a broker-dealer. The municipal bond is typically a fixed rate
security. The broker-dealer (the "sponsor") creates a trust (the "Trust") and
deposits the municipal bond. The Trust issues short-term floating rate notes
available to third parties and a residual interest in the municipal bond
(referred to as an "inverse floating rate security") to the Fund. The terms of
these inverse floating rate securities grant the Fund the right to require that
the Trust issuing the inverse floating rate security compel a tender of the
short-term floating rate notes to facilitate the Fund's repurchase of the
underlying municipal bond. Following such a request, the Fund pays the sponsor
the principal amount due to the holders of the short-term floating rate notes
issued by the Trust and exchanges the inverse floating rate security for the
underlying municipal bond. These transactions are
43 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
considered secured borrowings for financial reporting purposes. As a result of
such accounting treatments, the Fund includes the municipal bond position on its
Statement of Investments (but does not separately include the inverse floating
rate securities received). The Fund also includes the value of the municipal
bond and a payable amount equal to the short-term floating rate notes issued by
the Trust on its Statement of Assets and Liabilities. The interest rates on
these short-term floating rate notes reset periodically, usually weekly. The
holders of these short-term floating rate notes have the option to tender their
investment, to the sponsor or the Trust's liquidity provider, for redemption at
par at each reset date. Income from the municipal bond position and the interest
expense on the payable for the short-term floating rate notes issued by the
Trust are recorded on the Fund's Statement of Operations. At September 30, 2006
municipal bond holdings with a value of $300,755,670 shown on the Fund's
Statement of Investments are held by such Trusts and serve as collateral for the
$196,090,000 in short-term floating rate notes issued and outstanding at that
date.
At September 30, 2006, the Fund's residual exposure to these types of inverse
floating rate securities were as follows:
PRINCIPAL VALUE AS OF
AMOUNT COUPON 1 MATURITY SEPT. 30, 2006
- ----------------------------------------------------------------------------------------------------------
$ 6,500,000 Erie County Tobacco Asset
Securitization Corp. RITES 5.646% 06/01/2045 $ 6,622,070
5,400,000 Erie County Tobacco Asset
Securitization Corp. RITES 5.646 06/01/2045 5,501,412
5,750,000 L.I. Power Authority RITES 8.095 09/01/2033 6,753,375
7,500,000 MTA ROLs 7.750 11/15/2031 9,119,850
3,460,000 MTA ROLs 8.250 11/15/2031 4,228,812
2,950,000 NY Counties Tobacco Trust IV RITES 5.646 06/01/2042 3,005,401
5,000,000 NYC GO RITES 6.404 08/01/2021 6,343,900
5,000,000 NYC Municipal Water Authority ROLs 8.080 06/15/2039 6,020,300
4,865,000 NYS HFA RITES 8.254 11/01/2015 5,077,211
19,140,000 Port Authority NY/NJ RITES 6.010 12/01/2034 21,285,403
3,585,000 Triborough Bridge & Tunnel
Authority RITES 8.041 11/15/2032 4,170,932
2,560,000 Triborough Bridge & Tunnel
Authority RITES 8.045 11/15/2027 3,023,411
10,000,000 Triborough Bridge & Tunnel
Authority RITES 8.045 11/15/2032 11,634,400
4,550,000 Triborough Bridge & Tunnel
Authority RITES 8.540 11/15/2029 5,662,293
2,500,000 Triborough Bridge & Tunnel Authority RITES 9.104 11/15/2023 3,308,300
44 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE AS OF
AMOUNT COUPON 1 MATURITY SEPT. 30, 2006
- ----------------------------------------------------------------------------------------------------------
$ 2,500,000 Triborough Bridge & Tunnel Authority ROLs 8.080% 11/15/2032 $ 2,908,600
---------------
$ 104,665,670
===============
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater."
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. There are certain risks arising from geographic
concentration in any state. Certain revenue or tax related events in a state may
impair the ability of certain issuers of municipal securities to pay principal
and interest on their obligations.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2 TAX PURPOSES
------------------------------------------------------------------------
$ 254,218 $ 15,259 $ -- $ 59,774,478
1. During the fiscal year ended September 30, 2006, the Fund utilized $1,450,798
of capital loss carryforward to offset capital gains realized in that fiscal
year.
2. During the fiscal year ended September 30, 2005, the Fund utilized $6,520 of
capital loss carryforward to offset capital gains realized in that fiscal year.
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.
45 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The tax character of distributions paid during the years ended September 30,
2006 and September 30, 2005 was as follows:
YEAR ENDED YEAR ENDED
SEPT. 30, 2006 SEPT. 30, 2005
------------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $ 44,497,915 $ 33,041,496
Ordinary income 20,744 --
------------------------------
Total $ 44,518,659 $ 33,041,496
==============================
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of September 30, 2006 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $ 1,079,882,585
===============
Gross unrealized appreciation $ 60,448,555
Gross unrealized depreciation (674,077)
---------------
Net unrealized appreciation $ 59,774,478
===============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended
September 30, 2006, the Fund's projected benefit obligations were increased by
$4,098 and payments of $8,675 were made to retired trustees, resulting in an
accumulated liability of $94,508 as of September 30, 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 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.
46 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
YEAR ENDED SEPTEMBER 30, 2006 YEAR ENDED SEPTEMBER 30, 2005
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS A
Sold 30,165,787 $ 389,068,133 10,610,833 $ 136,386,348
Dividends and/or
distributions reinvested 2,054,601 26,532,833 1,627,749 20,754,931
Redeemed (7,236,398) (93,291,840) (4,491,381) (57,215,487)
------------------------------------------------------------
Net increase 24,983,990 $ 322,309,126 7,747,201 $ 99,925,792
============================================================
47 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
YEAR ENDED SEPTEMBER 30, 2006 YEAR ENDED SEPTEMBER 30, 2005
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS B
Sold 776,732 $ 10,032,978 317,313 $ 4,053,977
Dividends and/or
distributions reinvested 55,555 717,268 61,813 787,655
Redeemed (418,072) (5,377,833) (526,394) (6,706,954)
------------------------------------------------------------
Net increase (decrease) 414,215 $ 5,372,413 (147,268) $ (1,865,322)
============================================================
- ---------------------------------------------------------------------------------------------
CLASS C
Sold 6,173,689 $ 79,698,090 1,372,677 $ 17,653,707
Dividends and/or
distributions reinvested 119,264 1,542,437 47,512 607,157
Redeemed (635,447) (8,203,181) (273,325) (3,472,163)
------------------------------------------------------------
Net increase 5,657,506 $ 73,037,346 1,146,864 $ 14,788,701
============================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended September 30, 2006, were as
follows:
PREVIOUSLY REPORTED RESTATED, SEE NOTE 9
PURCHASES SALES PURCHASES SALES
- ---------------------------------------------------------------------------------------------------
Investment securities $ 818,346,609 $ 544,547,315 $ 818,346,609 $ 379,991,698
- --------------------------------------------------------------------------------
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
average annual rate as shown in the following table:
FEE SCHEDULE
-----------------------------------------------
Up to $200 million of net assets 0.60%
Next $100 million of net assets 0.55
Next $200 million of net assets 0.50
Next $250 million of net assets 0.45
Next $250 million of net assets 0.40
Over $1 billion of net assets 0.35
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended September 30, 2006, the Fund paid
$353,550 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
48 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
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
periods. 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 September 30,
2006 for Class B and Class C shares were $1,645,598 and $1,380,126,
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 following table for the period
indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
September 30, 2006 $ 367,494 $ 10,135 $ 176,030 $ 31,646
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. This undertaking may be amended or
withdrawn at any time.
49 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
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5. ILLIQUID SECURITIES
As of September 30, 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 $900 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 (5.3315% as of September 30, 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 $900
million facility size.
For the year ended September 30, 2006, the average daily loan balance was
$20,394,247 at an average daily interest rate of 4.661%. The Fund had borrowings
outstanding of $15,400,000 at September 30, 2006 at an interest rate of 5.3315%.
The Fund had gross borrowings and gross loan repayments of $444,400,000 and
$445,000,000, respectively, during the year ended September 30, 2006. The
maximum amount of borrowings outstanding at any month-end during the year ended
September 30, 2006 was $84,800,000. The Fund paid $91,774 in fees and $949,030
in interest during the year ended September 30, 2006.
- --------------------------------------------------------------------------------
7. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
September 30, 2006,
50 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
the Manager is evaluating the implications of FIN 48. Its impact in the Fund's
financial statements has not yet been determined.
In September 2006, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE
MEASUREMENTS. This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and expands
disclosures about fair value measurements. SFAS No. 157 applies to fair value
measurements already required or permitted by existing standards. SFAS No. 157
is effective for financial statements issued for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years. As of September
30, 2006, the Manager does not believe the adoption of SFAS No. 157 will
materially impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements on changes in net assets for the
period.
- --------------------------------------------------------------------------------
8. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss.
51 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. RESTATEMENT
Subsequent to the issuance of the September 30, 2006 financial statements, the
Manager determined that transfers of certain municipal bond securities by the
Fund to trusts in connection with its investment in inverse floating rate
securities during the fiscal years ended September 30, 2002 through 2006, do not
qualify as sales under Statement of Financial Accounting Standards No. 140,
ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS
OF LIABILITIES, and should have been accounted for as secured borrowings.
Accordingly, the Fund has restated its September 30, 2006 Statement of
Investments, its September 30, 2006 Statement of Assets and Liabilities, its
fiscal 2006 Statement of Operations, its fiscal 2005 and fiscal 2006 Statements
of Changes in Net Assets and its fiscal 2002 through fiscal 2006 Financial
Highlights. In connection with the restatement, the Fund also included a
Statement of Cash Flows for its fiscal year ending September 30, 2006.
The restatement has no effect on the Fund's previously reported net
assets, net asset values per share or total return.
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 2006
PREVIOUSLY REPORTED RESTATED
- ------------------------------------------------------------------------------------------------
ASSETS
Investments, at value $ 1,139,657,063 $1,335,747,063
Cost of investments 1,077,422,051 1,274,735,256*
Total assets 1,165,467,535 1,361,557,535
LIABILITIES
Payable for short-term floating rate notes issued N/A 196,090,000
Total liabilities 20,099,426 216,189,426
NET ASSETS
Accumulated net realized loss on investments (2,445,269) (1,222,064)*
Net unrealized appreciation on investments 62,235,012 61,011,807*
*The restated amounts include an increase to "Accumulated net realized loss on
investments," a decrease to "Cost of investments" and an increase to "Net
unrealized appreciation on investments" in the amount of $979,287 related to
reversals of gains previously realized in the Fund's fiscal years prior to 2005.
STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2006
PREVIOUSLY REPORTED RESTATED
- ------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 51,949,949 $ 57,535,488
Total investment income 51,953,222 57,538,761
EXPENSES
Interest expense and fees from short-term
floating rate notes issued -- 5,585,539
Total expenses 8,971,662 14,557,201
Net expenses 8,970,698 14,556,237
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 10,657,680 12,357,229
Net change in unrealized appreciation on
investments 17,753,637 16,054,088
52 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDING
SEPTEMBER 30, 2006 AND 2005
OPERATIONS 2006 PREVIOUSLY REPORTED RESTATED
- ------------------------------------------------------------------------------------------------
Net realized gain $ 10,657,680 $ 12,357,229
Net change in unrealized appreciation 17,753,637 16,054,088
OPERATIONS 2005 PREVIOUSLY REPORTED RESTATED
- ------------------------------------------------------------------------------------------------
Net realized loss $ (8,107,100) $ (7,604,157)
Net change in unrealized appreciation 30,898,772 30,395,829
FINANCIAL HIGHLIGHTS FOR THE YEARS ENDING SEPTEMBER 30,
2006, 2005, 2004, 2003 AND 2002
INTEREST AND EXPENSES AFTER
FEES ON PAYMENTS AND
SHORT-TERM WAIVERS AND PORTFOLIO
RATIOS TO AVERAGE FLOATING RATE TOTAL REDUCTION TO TURNOVER
NET ASSETS: NOTES ISSUED EXPENSES CUSTODIAN EXPENSES RATE
- --------------------------------------------------------------------------------
CLASS A
2006 Previously
Reported N/A 0.90% 0.90% 66%
2006 Restated 0.61% 1.51% 1.51% 36%
2005 Previously
Reported N/A 0.93% 0.93% 14%
2005 Restated 0.43% 1.36% 1.36% 8%
2004 Previously
Reported N/A 0.91% 0.88% 6%
2004 Restated 0.26% 1.17% 1.14% 5%
2003 Previously
Reported N/A 0.93% 0.93% 63%
2003 Restated 0.26% 1.19% 1.19% 45%
2002 Previously
Reported N/A 0.89% 0.89% 73%
2002 Restated 0.07% 0.96% 0.96% 64%
- --------------------------------------------------------------------------------
CLASS B
2006 Previously
Reported N/A 1.70% 1.69% 66%
2006 Restated 0.61% 2.31% 2.30% 36%
2005 Previously
Reported N/A 1.71% 1.71% 14%
2005 Restated 0.43% 2.14% 2.14% 8%
2004 Previously
Reported N/A 1.69% 1.66% 6%
2004 Restated 0.26% 1.95% 1.92% 5%
2003 Previously
Reported N/A 1.71% 1.71% 63%
2003 Restated 0.26% 1.97% 1.97% 45%
2002 Previously
Reported N/A 1.66% 1.66% 73%
2002 Restated 0.07% 1.73% 1.73% 64%
53 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
(As restated, see Note 9)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. RESTATEMENT Continued
FINANCIAL HIGHLIGHTS FOR THE YEARS ENDING SEPTEMBER 30,
2006, 2005, 2004, 2003 AND 2002 Continued
INTEREST AND EXPENSES AFTER
FEES ON PAYMENTS AND
SHORT-TERM WAIVERS AND PORTFOLIO
RATIOS TO AVERAGE FLOATING RATE TOTAL REDUCTION TO TURNOVER
NET ASSETS: NOTES ISSUED EXPENSES CUSTODIAN EXPENSES RATE
- --------------------------------------------------------------------------------
CLASS C
2006 Previously
Reported N/A 1.66% 1.66% 66%
2006 Restated 0.61% 2.27% 2.27% 36%
2005 Previously
Reported N/A 1.70% 1.70% 14%
2005 Restated 0.43% 2.13% 2.13% 8%
2004 Previously
Reported N/A 1.69% 1.66% 6%
2004 Restated 0.26% 1.95% 1.92% 5%
2003 Previously
Reported N/A 1.72% 1.72% 63%
2003 Restated 0.26% 1.98% 1.98% 45%
2002 Previously
Reported N/A 1.66% 1.66% 73%
2002 Restated 0.07% 1.73% 1.73% 64%
While the Statements of Assets and Liabilities as of September 30, 2005, 2004,
2003 and 2002 (not included herein) have not been reissued to give effect to the
restatement, the principal effects of the restatement would be to increase
investments at value and to add a liability for short-term floating rate notes
issued by corresponding amounts at each year end, with no resulting effect on
previously reported Fund net assets. While the Statements of Operations for the
years ended September 30, 2005, 2004, 2003 and 2002 (not included herein) have
not been reissued to give effect to the restatement, the principal effects of
the restatement would be to increase interest income and interest expense and
fees by corresponding amounts each year, with no effect on the previously
reported net increase in net assets resulting from operations.
54 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer AMT-Free New York Municipals, including the statement of
investments, as of September 30, 2006, and the related statements of operations
and cash flows for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended, and the financial
highlights for each of the years in the five-year period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of September 30, 2006, by correspondence
with the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer AMT-Free New York Municipals as of September 30, 2006, the results
of its operations and its cash flows for the year then ended, the changes in its
net assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then ended,
in conformity with U.S. generally accepted accounting principles.
As discussed in Notes 1, 3 and 9, the Fund has restated its financial
statements and financial highlights as of and for the year ended September 30,
2006.
KPMG LLP
Denver, Colorado
November 15, 2006 (Except for the Statement of Cash Flows and Notes 1, 3 and 9,
for which the date is January 22, 2007)
55 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2007, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended
September 30, 2006 are eligible for the corporate dividend-received deduction.
The dividends were derived from interest on municipal bonds and are not subject
to federal income taxes. To the extent a shareholder is subject to any state or
local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
56 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
57 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER
FUND, LENGTH OF SERVICE, AGE TRUSTEESHIPS/DIRECTORSHIPS HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX
CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY,
TRUSTEES CENTENNIAL, COLORADO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE
TERM, OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company) (since January
Chairman of the Board 2005); Attorney at Hogan & Hartson (law firm) (since June 1993); Director
of Trustees (since 2003); of Covanta Holding Corp. (waste-to-energy company) (since 2002); Director
Trustee (since 1993) of Weyerhaeuser Corp. (1999-April 2004); Director of Caterpillar, Inc.
Age: 75 (1993-December 2002); Director of ConAgra Foods (1993-2001); Director of
Texas Instruments (1993-2001); Director of FMC Corporation (1993-2001).
Oversees 45 portfolios in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research
Trustee (since 2005) foundation) (since 2005); Director of ICI Education Foundation (education
Age: 65 foundation) (October 1991-August 2006); President of the Investment
Company Institute (trade association) (October 1991-June 2004); Director
of ICI Mutual Insurance Company (insurance company) (October 1991-June
2004). Oversees 45 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 55 portfolios
Trustee (since 1993) in the OppenheimerFunds complex.
Age: 73
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002)
Trustee (since 1999) and Member (since 1979) of the National Academy of Sciences; Council on
Age: 68 Foreign Relations (since 2002); Director of GSI Lumonics Inc. (precision
medical equipment supplier) (since 2001); Senior Advisor of The Andrew W.
Mellon Foundation (since 2001); Chair of Science Initiative Group (since
1999); Member of the American Philosophical Society (since 1996); Trustee
of Woodward Academy (since 1983); Foreign Associate of Third World Academy
of Sciences; Director of the Institute for Advanced Study (1991-2004);
Director of Bankers Trust New York Corporation (1994-1999); Provost at
Duke University (1983-1991). Oversees 45 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October
Trustee (since 2004) 1998); and Senior Vice President and General Auditor of American Express
Age: 64 Company (financial services company) (July 1998-February 2003). Oversees
45 portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial
Trustee (since 2002) adviser) (since 2002); Managing Director of Carmona Motley, Inc.
Age: 54 (privately-held financial adviser) (since January 2002); Managing Director
of Carmona Motley Hoffman Inc. (privately-held financial adviser) (January
1998-December 2001); Member of the Finance and Budget Committee of the
Council on Foreign Relations, the Investment Committee of the Episcopal
Church of America, the Investment Committee and Board of Human Rights
Watch and the Investment Committee of Historic Hudson Valley. Oversees 45
portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company)
Trustee (since 1984) (February 1972-October 2005); Former Director of Prime Retail, Inc. (real
Age: 79 estate investment trust), Dominion Energy Inc. (electric power and oil &
gas producer), Lumberman's Mutual Casualty Company, American Motorists
Insurance Company and American Manufacturers Mutual Insurance Company;
Former President and Chief
58 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
KENNETH A. RANDALL, Executive Officer of The Conference Board, Inc. (international economic
Continued and business research). Oversees 45 portfolios in the OppenheimerFunds
complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance
Trustee (since 1989) consulting and executive recruiting) (since 1993); Life Trustee of
Age: 74 International House (non-profit educational organization); Founder,
Chairman and Chief Executive Officer of Russell Reynolds Associates, Inc.
(1969-1993); Banker at J.P. Morgan & Co. (1958-1966); 1st Lt. Strategic
Air Command, U.S. Air Force (1954-1958). Oversees 45 portfolios in the
OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992)
Trustee (since 2005) and Cathco (since 1996); Director of Lakes Environmental Association
Age: 65 (since 1996); Member of the Investment Committee of the Associated Jewish
Charities of Baltimore (since 1994); Director of Fortis/Hartford mutual
funds (1994-December 2001). Oversees 45 portfolios in the OppenheimerFunds
complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and
Trustee (since 2005) production company) (since 1994); Vice President, Secretary and Treasurer
Age: 58 of Wold Trona Company, Inc. (soda ash processing and production) (since
1996); Vice President of Wold Talc Company, Inc. (talc mining) (since
1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since
1979); Director and Chairman of the Denver Branch of the Federal Reserve
Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric
utility) (1995-1999). Oversees ). Oversees 45 portfolios in the
OppenheimerFunds complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September
Trustee (since 2005) 1995); Director of Special Value Opportunities Fund, LLC (registered
Age: 63 investment company) (since September 2004); Member of Zurich Financial
Investment Advisory Board (insurance) (since October 2004); Board of
Governing Trustees of The Jackson Laboratory (non-profit) (since August
1990); Trustee of the Institute for Advanced Study (non-profit educational
institute) (since May 1992); Special Limited Partner of Odyssey Investment
Partners, LLC (private equity investment) (January 1999-September 2004);
Trustee of Research Foundation of AIMR (2000-2002) (investment research,
non-profit); Governor, Jerome Levy Economics Institute of Bard College
(August 1990-September 2001) (economics research); Director of Ray &
Berendtson, Inc. (May 2000-April 2002) (executive search firm). Oversees
55 portfolios in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE AND THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY
OFFICER STREET, 11TH FLOOR, NEW YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A
TRUSTEE FOR AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT,
DEATH OR REMOVAL AND AS AN OFFICER FOR AN ANNUAL TERM, OR UNTIL HIS
RESIGNATION, RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED
TRUSTEE DUE TO HIS POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS
AFFILIATES.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and
Trustee and President and President (since September 2000) of the Manager; President and a director
Principal Executive Officer or trustee of other Oppenheimer funds; President and Director of
(since 2001) Oppenheimer Acquisition Corp. ("OAC") (the Manager's parent holding
Age: 57 company) and of Oppenheimer Partnership Holdings, Inc. (holding company
subsidiary of the Manager) (since July 2001); Director of OppenheimerFunds
Distributor, Inc. (subsidiary of the Manager) (since November 2001);
Chairman and Director of Shareholder Services, Inc. and of Shareholder
Financial Services, Inc. (transfer agent subsidiaries of the Manager)
(since July 2001); President and Director of OppenheimerFunds Legacy
Program (charitable trust program established by the Manager) (since July
2001); Director of the following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc., Centennial Asset
Management Corporation, Trinity
59 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
JOHN V. MURPHY, Investment Management Corporation and Tremont Capital Management, Inc.
Continued (since November 2001), HarbourView Asset Management Corporation and OFI
Private Investments, Inc. (since July 2001); President (since November 1,
2001) and Director (since July 2001) of Oppenheimer Real Asset Management,
Inc.; Executive Vice President of Massachusetts Mutual Life Insurance
Company (OAC's parent company) (since February 1997); Director of DLB
Acquisition Corporation (holding company parent of Babson Capital
Management LLC) (since June 1995); Member of the Investment Company
Institute's Board of Governors (since October 3, 2003); Chief Operating
Officer of the Manager (September 2000-June 2001); President and Trustee
of MML Series Investment Fund and MassMutual Select Funds (open-end
investment companies) (November 1999-November 2001); Director of C.M. Life
Insurance Company (September 1999-August 2000); President, Chief Executive
Officer and Director of MML Bay State Life Insurance Company (September
1999-August 2000); Director of Emerald Isle Bancorp and Hibernia Savings
Bank (wholly-owned subsidiary of Emerald Isle Bancorp) (June 1989-June
1998). Oversees 92 portfolios in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR
OF THE FUND MESSRS. ZACK, GILLESPIE AND MS. BLOOMBERG , TWO WORLD FINANCIAL CENTER,
225 LIBERTY STREET, NEW YORK, NEW YORK 10281-1008, FOR MESSRS. VANDEHEY,
WIXTED, PETERSEN, SZILAGYI AND MS. IVES, 6803 S. TUCSON WAY, CENTENNIAL,
COLORADO 80112-3924 AND FOR MESSRS. FIELDING, LOUGHRAN, COTTIER AND
WILLIS, 350 LINDEN OAKS, ROCHESTER, NY 14625. EACH OFFICER SERVES FOR AN
INDEFINITE TERM OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR
REMOVAL.
RONALD H. FIELDING, Senior Vice President of the Manager (since January 1996); Chairman of the
Vice President (since 2002) Rochester Division of the Manager (since January 1996); an officer of 18
Age: 57 portfolios in the OppenheimerFunds complex.
DANIEL G. LOUGHRAN, Vice President of the Manager since (April 2001). An officer of 18
Vice President and Portfolio portfolios in the OppenheimerFunds complex.
Manager (since 2005)
Age: 43
SCOTT S. COTTIER, Vice President of the Manager (since 2002); portfolio manager and trader
Vice President and Portfolio at Victory Capital Management (1999-2002); an officer of 18 portfolios in
Manager (since 2005) the OppenheimerFunds complex.
Age: 35
TROY E. WILLIS, Assistant Vice President of the Manager (since 2005); corporate attorney
Vice President and Portfolio for Southern Resource Group (1999-2003). An officer of 18 portfolios in
Manager (since 2005) the OppenheimerFunds complex.
Age: 34
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since
Vice President and Chief March 2004); Vice President of OppenheimerFunds Distributor, Inc.,
Compliance Officer Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) (since June 1983). Former Vice President and Director of Internal Audit of
Age: 56 the Manager (1997-February 2004). An officer of 92 portfolios in the
OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999);
Treasurer and Principal Treasurer of the following: HarbourView Asset Management Corporation,
Financial and Accounting Shareholder Financial Services, Inc., Shareholder Services, Inc.,
Officer (since 1999) Oppenheimer Real Asset Management Corporation, and Oppenheimer Partnership
Age: 47 Holdings, Inc. (since March 1999), OFI Private Investments, Inc. (since
March 2000), OppenheimerFunds International Ltd. (since May 2000),
OppenheimerFunds plc (since May 2000), OFI Institutional Asset
60 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
BRIAN W. WIXTED, Management, Inc. (since November 2000), and OppenheimerFunds Legacy
Continued Program (charitable trust program established by the Manager) (since June
2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust
company subsidiary of the Manager) (since May 2000); Assistant Treasurer
of the following: OAC (since March 1999), Centennial Asset Management
Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program
(April 2000-June 2003); Principal and Chief Operating Officer of Bankers
Trust Company-Mutual Fund Services Division (March 1995-March 1999). An
officer of 92 portfolios in the OppenheimerFunds complex.
BRIAN S. PETERSEN, Assistant Vice President of the Manager (since August 2002);
Assistant Treasurer Manager/Financial Product Accounting of the Manager (November 1998-July
(since 2004) 2002). An officer of 92 portfolios in the OppenheimerFunds complex.
Age: 36
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of
Assistant Treasurer Financial Reporting and Compliance of First Data Corporation (April
(since 2005) 2003-July 2004); Manager of Compliance of Berger Financial Group LLC (May
Age: 36 2001-March 2003); Director of Mutual Fund Operations at American Data
Services, Inc. (September 2000-May 2001). An officer of 92 portfolios in
the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Secretary (since 2001) March 2002) of the Manager; General Counsel and Director of the
Age: 58 Distributor (since December 2001); General Counsel of Centennial Asset
Management Corporation (since December 2001); Senior Vice President and
General Counsel of HarbourView Asset Management Corporation (since
December 2001); Secretary and General Counsel of OAC (since November
2001); Assistant Secretary (since September 1997) and Director (since
November 2001) of OppenheimerFunds International Ltd. and OppenheimerFunds
plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc.
(since December 2002); Director of Oppenheimer Real Asset Management, Inc.
(since November 2001); Senior Vice President, General Counsel and Director
of Shareholder Financial Services, Inc. and Shareholder Services, Inc.
(since December 2001); Senior Vice President, General Counsel and Director
of OFI Private Investments, Inc. and OFI Trust Company (since November
2001); Vice President of OppenheimerFunds Legacy Program (since June
2003); Senior Vice President and General Counsel of OFI Institutional
Asset Management, Inc. (since November 2001); Director of OppenheimerFunds
(Asia) Limited (since December 2003); Senior Vice President (May
1985-December 2003), Acting General Counsel (November 2001-February 2002)
and Associate General Counsel (May 1981-October 2001) of the Manager;
Assistant Secretary of the following: Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001), and OppenheimerFunds International Ltd. (September
1997-November 2001). An officer of 92 portfolios in the OppenheimerFunds
complex.
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant
Assistant Secretary Secretary (since October 2003) of the Manager; Vice President (since 1999)
(since 2001) and Assistant Secretary (since October 2003) of the Distributor; Assistant
Age: 41 Secretary of Centennial Asset Management Corporation (since October 2003);
Vice President and Assistant Secretary of Shareholder Services, Inc.
(since 1999); Assistant Secretary of OppenheimerFunds Legacy Program and
Shareholder Financial Services, Inc. (since December 2001); Assistant
Counsel of the Manager (August 1994-October 2003). An officer of 92
portfolios in the OppenheimerFunds complex.
61 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Continued
- --------------------------------------------------------------------------------
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004);
Assistant Secretary First Vice President (April 2001-April 2004), Associate General Counsel
(since 2004) (December 2000-April 2004), Corporate Vice President (May 1999-April 2001)
Age: 38 and Assistant General Counsel (May 1999-December 2000) of UBS Financial
Services Inc. (formerly, PaineWebber Incorporated). An officer of 92
portfolios in the OppenheimerFunds complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since
Assistant Secretary September 2004); Mr. Gillespie held the following positions at Merrill
(since 2004) Lynch Investment Management: First Vice President (2001-September 2004);
Age: 42 Director (2000-September 2004) and Vice President (1998-2000). An officer
of 92 portfolios in the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
62 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee financial expert," whether through the type of
specialized education or experience described in that Instruction. The Board has
concluded that while the members of the Audit Committee collectively have the
necessary attributes and experience required to serve effectively as an Audit
Committee, no single member possesses all of the required technical attributes
through the particular methods of education or experience set forth in the
Instructions to be designated as an audit committee financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $29,000 in fiscal 2006 and $28,000 in fiscal 2005.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $169,654 in fiscal 2006 and $156,805 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: Internal control reviews
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $1,536 in fiscal 2006 and $5,000 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: preparation of form 5500.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $512 for fiscal 2006 and no such fees for fiscal 2005.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and
other services to be provided by the principal accountants of the
registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next regularly
scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid
by the registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee
of the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $155,848 in fiscal 2006 and $161,805 in
fiscal 2005 to the registrant and the registrant's investment adviser
or any entity controlling, controlled by, or under common control with
the adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) No such services were rendered.
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.
The registrant's principal executive officer and principal financial officer
have concluded, 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 19, 2007, which is a
date within 90 days of the filing date of this amended report on Form N-CSR/A,
that, as of said date, the design and operation of such controls and procedures
are effective 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 (i) 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 (ii) 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.
Subsequent to the issuance of the registrant's financial statements for its
fiscal year ended September 30, 2006, and prior to the evaluation of its
internal controls in connection with the certifications in this report, the
registrant's management became aware that other investment companies (not
affiliated with the registrant) that invested in certain municipal securities
referred to as "inverse floaters" and that had transferred certain municipal
bonds to special purpose trusts for the purpose of investing in such inverse
floaters, accounting for such transfers as "sales" in accordance with common
practice in the mutual fund industry, had restated their financial statements to
apply the provisions of Statement of Financial Accounting Standards No. 140,
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities," ("FAS 140") to the transfers of such municipal bonds in
connection with their investments in inverse floaters, in response to comments
by their independent public accountants about the sale accounting treatment that
had previously been applied by such investment companies to such transfers. As
of and prior to September 30, 2006, the registrant's fiscal year end, the
registrant had likewise accounted for such transfers as "sales." Registrant's
management notes that other investment companies that invested in similar
securities over the same time periods had been accounting for such transfers in
a similar manner as the registrant. After a review of this treatment with the
registrant's independent public accountants, registrant applied FAS 140 to such
transfers and restated its financial statements for the fiscal year ended
September 30, 2006.
Since September 30, 2006, and prior to the registrant's restatement of its
financial statements for the fiscal year ended September 30, 2006, and prior to
the evaluation by registrant's officers of the design and operation of the
registrant's disclosure controls and procedures as of January 19, 2007, the
operation of registrant's disclosure controls and procedures and its controls
and procedures over financial reporting were modified to
enhance the review and analysis of the relevant terms and conditions for
transfers of securities in connection with inverse floating rate obligations.
Management of the registrant is responsible for establishing and maintaining
effective internal control over financial reporting. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. The registrant's internal
control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with U.S. generally
accepted accounting principles. Such internal control includes policies and
procedures that provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the registrant's
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, including changes in accoounting
principals or the interpretations thereof, or that the degree of compliance
with the policies or procedures may deteriorate over time.
A control deficiency exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned
duties, to prevent or detect misstatements on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the registrant's ability to initiate, authorize, record,
process or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a
misstatement of the registrant's annual or interim financial statements that is
more than inconsequential will not be prevented or detected. A material weakness
is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the
annual or interim financial statements will not be prevented or detected. The
registrant's independent public accountants have advised the registrant that its
policies and procedures related to the review and analysis of the relative terms
and conditions of certain transfers of securities were not effective in
appropriately determining whether the transfers qualified for sale accounting
under the provisions of FAS 140. The control deficiency was described by the
independent auditors as a material weakness in internal control over financial
reporting as of September 30, 2006. However, it is registrant's management view
that at the time sale accounting treatment was applied to such transfers,
registrant believed that treatment was correct and in accordance with accounting
practices followed in the mutual fund industry with respect to such transfers,
as reported in such funds' audited financial statements. Registrant's management
also noted that the restatement of the registrant's financial statements did not
impact the net asset values of the registrant's shares or the registrant's total
returns for any period.
There have been no changes in the registrant's internal control over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this restated report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting. However, as discussed above, subsequent to September 30,
2006, the registrant revised and enhanced controls over the application of
Statement of Financial Standards No. 140.
ITEM 12. EXHIBITS.
(a) (1) Exhibit attached hereto.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer AMT-Free New York Municipals
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: January 25, 2007
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: January 25, 2007
By: /s/ Brian W. Wixted
-------------------
Brian W. Wixted
Principal Financial Officer
Date: January 25, 2007