Registration No. 33-3692
File No. 811-3614
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No.
__ [
]
Post-Effective Amendment No.
37
[X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF
1940
[X]
Amendment No. 42 [X]
Rochester Fund Municipals
(Exact Name of Registrant as Specified in Charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of Principal Executive Offices)
(303) 768-3200
(Registrant's Telephone Number)
Arthur S. Gabinet, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, 225 Liberty Street-11th Floor
New York, NY 10281-1008
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box):
[ ] Immediately upon filing pursuant to paragraph (b)
[X] On March 30, 2011 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] On _____________ pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] On _______________ pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for a previously filed post-effective amendment.
Rochester Fund Municipals |
NYSE Ticker Symbols |
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Class A |
RMUNX |
Class B |
RMUBX |
Class C |
RMUCX |
Class Y |
RMUYX |
Prospectus dated March 30, 2011 |
Rochester Fund Municipals is a diversified mutual fund. It seeks to provide as high a level of income exempt from federal income tax and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management while seeking preservation of shareholders' capital. |
This prospectus contains important information about the Fund's objective, investment policies, strategies and risks. It also contains important information about how to buy and sell shares of the Fund and other account features. Please read this prospectus carefully before you invest and keep it for future reference about your account. |
As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved the Fund's securities nor has it determined that this prospectus is accurate or complete. It is a criminal offense to represent otherwise. |
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Rochester Fund Municipals |
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Payments to Broker-Dealers and Other Financial Intermediaries |
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To Summary Prospectus
THE FUND SUMMARY
Investment Objective. The Fund seeks to provide as high a level of income exempt from federal income tax and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management while seeking preservation of shareholders' capital.
Fees and Expenses of the Fund. This table describes the fees and expenses that you may pay if you buy and hold or redeem shares of the Fund. You may qualify for sales charge discounts if you (or you and your spouse) invest, or agree to invest in the future, at least $50,000 in certain funds in the Oppenheimer family of funds. More information about these and other discounts is available from your financial professional and in the section "About Your Account" beginning on page 12 of the prospectus and in the sections "How to Buy Shares" beginning on page 55 and "Appendix A" in the Fund's Statement of Additional Information.
Shareholder Fees (fees paid directly from your investment) |
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Class A |
Class B |
Class C |
Class Y |
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Maximum Sales Charge (Load) imposed on purchases (as % of offering price) |
4.75% |
None |
None |
None |
Maximum Deferred Sales Charge (Load) (as % of the lower of the original offering price or redemption proceeds) |
None |
5% |
1% |
None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||||
Class A |
Class B |
Class C |
Class Y |
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Management Fees |
0.46% |
0.46% |
0.46% |
0.46% |
Distribution and/or Service (12b-1) Fees |
0.15% |
1.00% |
1.00% |
None |
Total Other Expenses |
0.32% |
0.42% |
0.34% |
0.34% |
Interest and Fees from Borrowings |
0.08% |
0.08% |
0.08% |
0.08% |
Interest and Related Expenses from Inverse Floaters |
0.18% |
0.18% |
0.18% |
0.18% |
Other Expenses |
0.06% |
0.16% |
0.08% |
0.08% |
Total Annual Fund Operating Expenses |
0.93% |
1.88% |
1.80% |
0.80% |
Example. The following Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in a class of shares of the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these
assumptions your expenses would be as follows:
If shares are redeemed | If shares are not redeemed | |||||||||||||||||||||||
1 Year | 3 Years | 5 Years | 10 Years | 1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||||||
Class A | $566 | $759 | $967 | $1,569 | $566 | $759 | $967 | $1,569 | ||||||||||||||||
Class B | $693 | $896 | $1,226 | $1,737 | $193 | $596 | $1,026 | $1,737 | ||||||||||||||||
Class C | $285 | $571 | $983 | $2,135 | $185 | $571 | $983 | $2,135 | ||||||||||||||||
Class Y | $82 | $256 | $446 | $994 | $82 | $256 | $446 | $994 |
Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 7% of the average value of its portfolio.
Principal Investment Strategies. The Fund invests mainly in New York municipal securities that pay interest that, in the opinion of counsel to the issuer of each security, is exempt from federal and New York personal income taxes. To seek its investment objective:
The Fund's tax-exempt investments can include a wide variety of debt obligations, including securities issued by:
These are referred to as "New York municipal securities" in this prospectus.
The Fund's investments have no maturity limitations and can include municipal bonds, municipal notes, and interests in municipal leases. At times, the Fund may focus on longer-term securities to seek higher yields. This portfolio strategy is subject to change. The Fund can buy general obligation bonds and revenue bonds, including "private activity" municipal securities that pay income subject to alternative minimum taxation. To the extent the Fund invests in securities that may pay interest subject to alternative minimum taxation, those securities will be counted towards the Fund's policy regarding minimum investments in tax-exempt securities as described above. The Fund may invest a substantial percentage of its assets in "callable" securities, which may be redeemed by the issuer before their maturity date. The Fund can also borrow for leverage and invest in "derivatives" to seek increased returns or for hedging purposes. Inverse floaters are the primary type of derivative the Fund uses but it may also invest in variable rate obligations, interest rate swaps, municipal bond swaps and other derivatives.
In selecting securities for the Fund, the portfolio managers generally look for triple tax-exempt municipal securities using a variety of factors. Currently, the portfolio managers look for a wide range of securities of different issuers within the state of New York, including those of different agencies and municipalities. They also focus on finding primarily investment-grade securities that offer high-income opportunities, including unrated bonds and securities of smaller issuers that might be overlooked by other investors and funds.
These factors may change over time and may vary in particular cases. The portfolio managers may consider selling a security if any of these factors no longer applies to a security purchased for the Fund, but are not required to do so.
Principal Risks. The price of the Fund's shares can go up and down substantially. The value of the Fund's investments may change because of broad changes in the markets in which the Fund invests or from poor security selection, which could cause the Fund to underperform other funds with similar investment objectives. There is no assurance that the Fund will achieve its investment objective. When you redeem your shares, they may be worth more or less than what you paid for them. These risks mean that you can lose money by investing in the Fund.
Main Risks of Investing in Municipal Securities. Municipal securities may be subject to interest rate risk, credit risk, credit spread risk, extension risk and reinvestment risk. Interest rate risk is the risk that when prevailing interest rates fall, the values of already-issued debt securities generally rise; and when prevailing interest rates rise, the values of already-issued debt securities generally fall, and they may be worth less than the amount the Fund paid for them. When interest rates change, the values of longer-term debt securities usually change more than the values of shorter-term debt securities. Credit risk is the risk that the issuer of a security might not make interest and principal payments on the security as they become due. If an issuer fails to pay interest or repay principal, the Fund's income or share value might be reduced. Adverse news about an issuer or a downgrade in an issuer's credit rating, for any reason, can also reduce the market value of the issuer's securities. "Credit spread" is the difference in yield between securities that is due to differences in their credit quality. There is a risk that credit spreads may increase when the market expects lower-grade bonds to default more frequently. Widening credit spreads may quickly reduce the market values of the Fund's lower-rated and non-rated securities. Extension risk is the risk that an increase in interest rates could cause principal payments on a debt security to be repaid at a slower rate than expected. Extension risk is particularly prevalent for a callable security where an increase in interest rates could result in the issuer of that security choosing not to redeem the security as anticipated on the security's call date. Such a decision by the issuer could have the effect of lengthening the debt security's expected maturity, making it more vulnerable to interest rate risk and reducing its market value. Reinvestment risk is the risk that when interest rates fall the Fund may be required to reinvest the proceeds from a security's sale or redemption at a lower interest rate. Callable bonds are generally subject to greater reinvestment risk than non-callable bonds.
Special Risks of Below-Investment-Grade Securities. Below-investment-grade debt securities may be subject to greater price fluctuations and have a greater risk that the issuer might not be able to pay interest and principal when due. The market for below-investment-grade securities may be less liquid and they may be harder to value or to sell at an acceptable price, especially during times of market volatility or decline.
The Fund can invest up to 25% of its total assets in below-investment-grade securities. Therefore, the Fund's credit risks are greater than those of funds that buy only investment-grade securities. The Fund generally will not invest more than 5% of its net assets in the securities of an issuer if the securities are rated "B" or below by a nationally recognized statistical rating organization or, if unrated, assigned a similar rating by the Manager. Ratings are measured at the time of purchase.
Special Risks of New York Municipal Securities. Because the Fund invests primarily in New York municipal securities, the value of its portfolio investments will be highly sensitive to events affecting the financial stability of the state of New York and its municipalities, agencies, authorities and other instrumentalities that issue those securities. Changes in legislation or policy, erosion of the tax base, the effects of terrorist acts or natural disasters, or other economic or credit problems may have a significant negative impact on the value of state or local securities.
These risks also apply to securities of issuers of U.S. territories, commonwealths or possessions located outside of New York such as Puerto Rico, Guam, the Northern Mariana Islands and the Virgin Islands.
Taxability Risk. The Fund's investments in municipal securities rely on the opinion of the issuer's bond counsel that the interest paid on those securities will not be subject to federal income tax. Tax opinions are generally provided at the time the municipal security is initially issued. However, after the Fund buys a security, the Internal Revenue Service may determine that a bond issued as tax-exempt should in fact be taxable and the Fund's dividends with respect to that bond might be subject to federal income tax.
Municipal Market Volatility and Illiquidity. The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be reduced unpredictably in response to overall economic conditions or credit tightening. During times of reduced market liquidity, the Fund may not be able to readily sell bonds at the prices at which they are carried on the Fund's books. If the Fund needed to sell large blocks of bonds to meet shareholder redemption requests or to raise cash, those sales could further reduce the bonds' prices.
Municipal Sector Concentration. While the Fund does not invest more than 25% of its total assets in a single industry, certain types of municipal securities (such as general obligation, government appropriation, municipal leases, special assessment and special tax bonds) are not considered a part of any "industry" for purposes of this policy. Therefore, the Fund may invest more than 25% of its total assets in these types of municipal securities. These types of municipal securities may finance, or pay interest from the revenues of, projects that tend to be impacted in the same way by economic, business or political developments which would increase credit risk. For example, legislation on the financing of a project or a declining economic need for the project would likely affect all similar projects.
Risks of Tobacco Related Bonds. In 1998, the largest U.S. tobacco manufacturers reached an out of court agreement, known as the Master Settlement Agreement (the "MSA"), to settle claims against them by 46 states and six other U.S. jurisdictions. The tobacco manufacturers agreed to make annual payments to the government entities in exchange for the release of all litigation claims. A number of the states have sold bonds that are backed by those future payments. The Fund may invest in two types of those bonds: (i) bonds that make payments only from a state's interest in the MSA and (ii) bonds that make payments from both the MSA revenue and from an "appropriation pledge" by the state. An "appropriation pledge" requires the state to pass a specific periodic appropriation to make the payments and is generally not an unconditional guarantee of payment by a state.
The settlement payments are based on factors, including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. Payments could be reduced if consumption decreases, if market share is lost to non-MSA manufacturers, or if there is a negative outcome in litigation regarding the MSA.
The Fund can invest up to 25% of its total assets in tobacco-related bonds without an appropriation pledge that makes payments only from a state's interest in the MSA.
Main Risks of Borrowing and Leverage. The Fund can borrow up to one-third of the value of its total assets (including the amount borrowed) from banks, as permitted by the Investment Company Act of 1940. It can use those borrowings for a number of purposes, including for purchasing securities, which can create "leverage." In that case, changes in the value of the Fund's investments will have a larger effect on its share price than if it did not borrow. Borrowing results in interest payments to the lenders and related expenses. Borrowing for investment purposes might reduce the Fund's return if the yield on the securities purchased is less than those borrowing costs. The Fund may also borrow to meet redemption obligations, for temporary and emergency purposes, or to unwind or contribute to trusts in connection with the Fund's investment in inverse floaters. The Fund currently participates in a line of credit with other Oppenheimer funds for its borrowing.
Reverse repurchase agreements that the Fund may engage in also create leverage. A reverse repurchase agreement is the sale by the Fund of a debt obligation to a party for a specified price, with the simultaneous agreement by the Fund to repurchase that debt obligation from that party on a future date at a higher price. Similar to a borrowing, reverse repurchase agreements provide the Fund with cash for investment and operational purposes. When the Fund
engages in reverse repurchase agreements, changes in the value of the Fund's investments will have a larger effect on its share price than if it did not engage in these transactions due to the effect of leverage. Reverse repurchase agreements create fund expenses and require that the Fund have sufficient cash available to repurchase the debt obligation when required. Reverse repurchase agreements also involve the risk that the market value of the debt obligation that is the subject of
the reverse repurchase agreement could decline significantly below the price at which the Fund is obligated to repurchase the security.
Risks of Derivatives. A "derivative" is an investment whose value depends on (or is derived from) the value of an underlying security, asset, interest rate, index or currency. Derivatives may be volatile and involve significant risks. Derivative transactions may require the payment of premiums and can increase portfolio turnover. Certain derivative investments may be illiquid. The underlying security or other reference on which a derivative is based, or the derivative itself, may not perform the way the Fund expects it to. The Fund could realize little or no income or lose principal from a derivative investment or a hedge might be unsuccessful. The Fund may also lose money if the issuer of a derivative fails to pay the amount due.
Inverse Floaters. The Fund invests in inverse floaters because, under ordinary circumstances, they offer higher yields and thus provide higher income than fixed-rate bonds of comparable maturity and credit quality. An inverse floater is a derivative instrument, typically created by a trust established by a counterparty, that divides a municipal security into two securities: a short-term floating rate security and a long-term floating rate security which is referred to as an "inverse floater." The inverse floater pays interest at rates that move in the opposite direction of those on the short-term floating rate security. Inverse floaters produce less income when short-term interest rates rise (and may pay no income) and more income when short-term interest rates fall. Thus, if short-term interest rates rise after the issuance of the floater, any yield advantage is reduced or eliminated. Under certain circumstances a trust may be collapsed and the Fund may be required to repay the principal amount due on the short-term securities or the difference between the liquidation value of the underlying municipal bond and the principal amount due on those securities. Inverse floaters can be more volatile than conventional fixed-rate bonds. They also entail a degree of leverage and certain inverse floaters may require the Fund to provide collateral for payments on the short-term securities or to "unwind" the transaction.
The Fund will not expose more than 20% of its total assets to the effects of leverage from its investments in inverse floaters.
Who Is the Fund Designed For? The Fund is designed for investors seeking income exempt from federal, New York State and New York City personal income taxes in a municipal bond fund that focuses primarily on investment-grade obligations. The Fund does not seek capital appreciation. Investors should be willing to assume credit, interest rate and reinvestment risks. Because it invests in tax-exempt securities, the Fund is not appropriate for retirement plans or other tax-exempt or tax-deferred accounts or for investors whose primary goal is capital growth. The Fund is not a complete investment program. You should carefully consider your own investment goals and risk tolerance before investing in the Fund.
An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. |
The Fund's Past Performance. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5 and 10 years compare with those of a broad measure of market performance. The Fund's past investment performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. More
recent performance information is available by calling the toll-free number on the back of this prospectus and on the Fund's website:
https://www.oppenheimerfunds.com/fund/RochesterFundMunicipals
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Sales charges and taxes are not included and the returns would be lower if they were. During the period shown, the highest return for a calendar quarter was 20.68% (3rd Qtr 09) and the lowest return was -20.59% (4th Qtr 08).
The following table shows the average annual total returns for each class of the Fund's shares. After-tax returns are calculated using the highest individual federal marginal income tax rates and do not reflect the impact of state or local taxes. Your actual after-tax returns, depending on your individual tax situation, may differ from those shown and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for only one class and after-tax returns for other classes will vary.
Average Annual Total Returns for the periods ended December 31, 2010 |
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1 Year |
5 Years |
10 Years |
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Class A Shares (inception 5/15/86) |
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Return Before Taxes |
(1.29%) |
1.09% |
3.97% |
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Return After Taxes on Distributions |
(1.29%) |
1.09% |
3.97% |
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Return After Taxes on Distributions and Sale of Fund Shares |
1.28% |
1.71% |
4.32% |
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Class B Shares (inception 3/17/97) |
(2.21%) |
0.83% |
3.94% |
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Class C Shares (inception 3/17/97) |
1.77% |
1.20% |
3.58% |
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Class Y Shares (inception 4/28/00) |
3.84% |
2.22% |
4.62% |
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Barclays Capital Municipal Bond Index |
2.38% |
4.09% |
4.83% |
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(reflects no deduction for fees, expenses or taxes) |
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Consumer Price Index |
1.50% |
2.18% |
2.34% |
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(reflects no deduction for fees, expenses or taxes) |
Investment Adviser. OppenheimerFunds, Inc. is the Fund's investment adviser (the "Manager").
Portfolio Managers. Daniel G. Loughran is a Vice President of the Fund and has been a portfolio manager for the Fund since December 1999. Scott S. Cottier is a Vice President of the Fund and has been a portfolio manager for the Fund since September 2002. Troy E. Willis is a Vice President of the Fund and has been a portfolio manager for the Fund since June 2005. Mark R. DeMitry is a Vice President of the Fund and has been a portfolio manager for the Fund since September 2006. Marcus V. Franz has been a portfolio manager for the Fund since September 2006. Michael L. Camarella is a Vice President of the Fund and has been a portfolio manager for the Fund since January 2008. Charles S. Pulire has been a portfolio manager for the Fund since December 2010.
Purchase and Sale of Fund Shares. In most cases, you can buy Fund shares with a minimum initial investment of $1,000 and make additional investments with as little as $50. For certain investment plans and retirement accounts, the minimum initial investment is $500 and, for some, the minimum additional investment is $25. For certain fee based programs the minimum initial investment is $250.
Shares may be purchased through a financial intermediary or the Distributor and redeemed through a financial intermediary or the Transfer Agent on days the New York Stock Exchange is open for trading. Shareholders may purchase or redeem shares by mail, through the website at www.oppenheimerfunds.com or by calling 1.800.225.5677. Share transactions may be paid by check, by Federal Funds wire or directly from or into your bank account.
Taxes. Dividends paid from net investment income on tax-exempt municipal securities will be excludable from gross income for federal individual income tax purposes. Dividends that are derived from interest paid on certain "private activity bonds" may be an item of tax preference if you are subject to the federal alternative minimum tax. Certain distributions may be taxable as ordinary income or as capital gains. The tax treatment of dividends is the same whether they are taken in cash or reinvested.
Payments to Broker-Dealers and Other Financial Intermediaries. If you purchase Fund shares through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Manager, or their related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.
MORE ABOUT THE FUND
The allocation of the Fund's portfolio among different types of investments will vary over time and the Fund's portfolio might not always include all of the different types of investments described below. The Statement of Additional Information contains more detailed information about the Fund's investment policies and risks.
THE FUND'S PRINCIPAL INVESTMENT STRATEGIES AND RISKS. The strategies and types of investments discussed in the Fund Summary are the ones that the Fund considers to be the most important in seeking to achieve its investment objective. Additionally, the following strategies and risks are those the Fund expects its portfolio to be subject to as a whole.
The Fund focuses its investments in the state of New York. The Fund will therefore be vulnerable to the effects of economic, regulatory and political developments that affect New York's governmental issuers.
The Manager tries to reduce risks by selecting a wide variety of municipal investments and by carefully researching securities before they are purchased. However, changes in the overall market prices of municipal securities and the income they pay can occur at any time. The yield and share prices of the Fund will change daily based on changes in interest rates and market conditions and in response to other economic events.
Unless this prospectus or the Statement of Additional Information states that an investment percentage restriction applies on an ongoing basis, it applies only at the time the Fund makes an investment (except for borrowing and investments in illiquid securities).
Municipal Securities. Municipal securities are issued to raise money for a variety of public or private purposes, including financing state or local governments, financing specific projects or financing public facilities. These debt obligations are issued by the state governments, as well as their political subdivisions (such as cities, towns, and counties) and their agencies and authorities. The Fund buys municipal bonds and notes, tax-exempt commercial paper, certificates of participation in municipal leases and other debt obligations. Municipal securities generally are classified as general or revenue obligations. General obligations are secured by the issuer's pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue obligations are bonds whose interest is payable only from the revenues derived from a particular facility or class of facilities, or a specific excise tax or other revenue source. Some revenue obligations are private activity bonds that pay interest that may be a tax preference item for investors subject to the federal alternative minimum tax. The Fund selects investments without regard to this type of tax treatment.
Additionally, there are times when an issuer will pledge its taxing power to offer additional security to a revenue bond. These securities are sometimes called "double-barreled bonds." See, for example, tobacco bonds with an appropriation pledge as discussed in this prospectus. The Fund can also buy securities issued by any commonwealths, territories or possessions of the United States, or their respective agencies, instrumentalities or authorities, if the interest paid on the security is not subject to federal personal income tax (in the opinion of bond counsel to the issuer at the time the security is issued).
The Fund can buy both long-term and short-term municipal securities. Long-term securities have a maturity of more than one year. The Fund generally focuses on longer-term securities to seek higher income.
New York municipal securities are municipal securities that are not subject (in the opinion of bond counsel to the issuer at the time they are issued) to federal and New York individual income tax. The term "New York municipal securities" also includes debt securities of the governments of certain possessions, territories and commonwealths of the United States if the interest is not subject to federal and New York individual income tax. Some debt securities, such as zero-coupon securities, do not pay current interest. Other securities may be subject to calls by the issuer (to redeem the debt) or to prepayment prior to their stated maturity.
Tax-Exempt Commercial Paper. The Fund can also invest in tax-exempt commercial paper which is a type of short-term obligation (usually having a maturity of 270 days or less) that is issued by a municipality to meet current working capital needs.
Municipal Lease Obligations. Municipal leases are used by state and local governments to obtain funds to acquire land, equipment or facilities. The Fund can invest in certificates of participation that represent a proportionate interest in payments made under municipal lease obligations. Most municipal leases, while secured by the leased property, are not general obligations of the issuing municipality. They often contain "non-appropriation" clauses under which the municipal government has no obligation to make lease or installment payments in future years unless money is appropriated on a yearly basis.
If the municipal government stops making payments or transfers its payment obligations to a private entity, the obligation could lose value or become taxable. Although the obligation may be secured by the leased equipment or facilities, the disposition of the property in the event of non-appropriation or foreclosure might prove difficult, time consuming and costly, and may result in a delay in recovering or the failure to recover the original investment. Some lease obligations may not have an active trading market, making it difficult for the Fund to sell them quickly at an acceptable price.
Tobacco Related Bonds. The Fund may invest in two types of tobacco related bonds: (i) tobacco settlement revenue bonds, for which payments of interest and principal are made solely from a state's interest in the Master Settlement Agreement ("MSA") and (ii) tobacco bonds subject to a state's appropriation pledge, for which payments may come from both the MSA revenue and the applicable state's appropriation pledge.
A number of states have securitized the future flow of those payments by selling bonds, some through distinct governmental entities created for such purpose. The bonds are backed by the future revenue flows from the tobacco manufacturers. Annual payments on the bonds, and thus the risk to the Fund, are highly dependent on the receipt of future settlement payments. The amount of future settlement payments is dependent on many factors including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. As a result, payments made by tobacco manufacturers could be reduced if the decrease in tobacco consumption is significantly greater than the forecasted decline. A market share loss by the MSA companies to non-MSA participating tobacco manufacturers could also cause a downward adjustment in the payment amounts. A participating manufacturer filing for bankruptcy also could cause delays or reductions in bond payments, which could affect the Fund's net asset value.
The MSA and tobacco manufacturers have been and continue to be subject to various legal claims and an adverse outcome could affect the payment streams associated with the MSA or cause delays or reductions in bond payments. The MSA itself has been subject to legal challenges and has, to date, withstood those challenges. The Statement of Additional Information contains more detailed information about the litigation related to the tobacco industry and the MSA.
Appropriation debt differs from a state's general obligation debt in that general obligation debt is backed by the state's full faith, credit and taxing power, while appropriation debt requires the state to pass a specific periodic appropriation to pay interest and/or principal on the bonds. The appropriation is usually made annually. While STA Tobacco Bonds offer an enhanced credit support feature, that feature is generally not an unconditional guarantee of payment by a state and states generally do not pledge the full faith, credit or taxing power of the state. The Fund considers STA Tobacco Bonds to be "municipal securities" for purposes of its concentration policies.
Municipal Sector Concentration. While the Fund's fundamental policies do not allow it to concentrate its investments (that is, to invest more than 25% of its total assets) in a single industry, certain types of municipal securities are not considered a part of any "industry" under that policy. Examples of these types of municipal securities include: general obligation, government appropriation, municipal leases, special assessment and special tax bonds. Therefore, the Fund may invest more than 25% of its total assets in these types of municipal securities, which may finance similar types of projects or from which the interest is paid from revenues of similar types of projects. "Similar types of projects" are projects that are related in such a way that economic, business or political developments tend to have the same impact on each similar project. For example, a change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining economic need for the project, would likely affect all similar projects, thereby increasing market risk. Thus, market or economic changes that affect a security issued in connection with one project also would affect securities issued in connection with similar types of projects.
Although these types of municipal securities may be related to certain industries, because they are issued by governments or their political subdivisions, these types of municipal securities are not considered a part of any industry for purposes of the Fund's industry concentration policy.
U.S. Territories, Commonwealths and Possessions.The Fund also invests in obligations of the governments of the U.S. territories, commonwealths and possessions such as Puerto Rico, the Virgin Islands, Guam and the Northern Mariana Islands to the extent such obligations are exempt from state income taxes. Accordingly, the Fund may be adversely affected by local political and economic conditions and developments within these U.S. territories, commonwealths and possessions affecting the issuers of such obligations. A discussion of the special considerations relating to the Fund's municipal obligations and other factors or economic conditions in those territories, commonwealths or possessions is provided in an Appendix to the Statement of Additional Information.
Ratings of Municipal Securities the Fund Buys. The Manager may rely to some extent on credit ratings by nationally recognized statistical rating organizations in evaluating the credit risk of securities selected for the Fund's portfolio. Credit ratings evaluate the expectation that scheduled interest and principal payments will be made in a timely manner. They do not reflect any judgment of market risk.
Rating organizations might not always change their credit rating of an issuer in a timely manner to reflect events that could affect the issuer's ability to make timely payments on its obligations. In selecting securities for its portfolio and evaluating their income potential and credit risk, the Fund does not rely solely on ratings by rating organizations but evaluates business, economic and other factors affecting issuers as well. Many factors affect an issuer's ability to make timely payments, and the credit risk of a particular security may change over time. The Manager also may use its own research and analysis. If a bond is insured, it will usually be rated by the rating organizations based on the financial strength of the insurer. The rating categories are described in an Appendix to the Statement of Additional Information.
The Fund can invest up to 25% of its total assets in below-investment-grade securities (measured at the time of purchase). Therefore, most of the municipal securities the Fund buys are "investment-grade" at the time of purchase. "Investment-grade" securities are those rated within the four highest rating categories of Standard & Poor's, Moody's, Fitch or another nationally recognized statistical rating organization (or, in the case of unrated securities, determined by the Fund's investment adviser to be comparable to securities rated investment-grade). While securities rated within the fourth highest category by Standard & Poor's (meaning BBB+, BBB or BBB-) or by Moody's (meaning Baa1, Baa2 or Baa3) are considered "investment-grade," they have some speculative characteristics.
Unrated Securities . Because the Fund purchases securities that are not rated by any nationally recognized statistical rating organization, the Manager internally assigns ratings to those securities, after assessing their credit quality and other factors, in categories similar to those of nationally recognized statistical rating organizations. Unrated securities are considered "investment-grade" or
"below-investment-grade" if judged by the Manager to be comparable to rated investment-grade or below-investment-grade securities. The Manager's rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market, which means that the Fund might have difficulty selling them promptly at an acceptable price.
In evaluating the credit quality of a particular security, whether rated or unrated, the Manager will normally take into consideration a number of factors including, but not limited to, the financial resources of the issuer, the underlying source of funds for debt service on a security, the issuer's sensitivity to economic conditions and trends, any operating history of the facility financed by the obligation, the degree of community support for the financed facility,
the capabilities of the issuer's management, and regulatory factors affecting the issuer or the particular facility.
A reduction in the rating of a security after the Fund buys it will not require the Fund to dispose of the security. However, the Manager will evaluate such downgraded securities to determine whether to keep them in the Fund's portfolio.
SPECIAL RISKS OF DERIVATIVE INVESTMENTS. Derivatives may be volatile and may involve significant risks. Derivative transactions may require the payment of premiums and can increase portfolio turnover.
The Fund may use derivatives to seek income or capital gain or to hedge against the risks of other investments. Derivatives may allow the Fund to increase or decrease its exposure to certain markets or risks. Examples include, but are not limited to, interest rate swaps or municipal bond swaps. While the Fund may use derivatives for hedging purposes, it typically does not use hedging instruments, such as options, to hedge investment risks.
Derivatives may be volatile and may involve significant risks. The underlying security or other instrument on which a derivative is based, or the derivative itself, may not perform the way the Manager expects it to. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund's initial investment. The Fund may also lose money on a derivative investment if the issuer fails to pay the amount due. Certain derivative investments held by the Fund may be
illiquid, making it difficult to close out an unfavorable position. Derivative transactions may require the payment of premiums and can increase portfolio turnover. As a result of these risks, the Fund could realize little or no income or lose money from its investment, or a hedge might be unsuccessful.
Inverse Floaters. The Fund may invest in inverse floaters to seek greater income and total return. Inverse floaters, under ordinary circumstances, offer higher yields and thus provide higher income than fixed-rate bonds of comparable maturity and credit quality. An inverse floater is a derivative instrument, typically created by a trust, that divides a municipal security into two securities: a short-term tax-exempt floating rate security (sometimes referred to as a "tender option bond") and a long-term tax-exempt floating rate security (referred to as a "residual certificate" or "inverse floater") that pays interest at rates that move in the opposite direction of the yield on the short-term floating rate security. The purchaser of a "tender option bond" has the right to tender the security periodically for repayment of the principal value. As short-term interest rates rise, inverse floaters produce less current income (and, in extreme cases, may pay no income) and as short-term interest rates fall, inverse floaters produce more current income. Thus, if short-term interest rates rise after the issuance of the floater, any yield advantage is reduced or eliminated.
To facilitate the creation of inverse floaters, the Fund may purchase a municipal security and subsequently transfer it to a broker-dealer (the sponsor), which deposits the municipal security in a trust. The trust issues the residual certificates and short-term floating rate securities. The trust documents enable the Fund to withdraw the underlying bond to unwind or "collapse" the trust (upon tendering the residual certificate and paying the value of the short-term bonds and certain other costs). The Fund may also purchase inverse floaters created by municipal issuers directly or by other parties that have deposited municipal bonds into a sponsored trust.
The Fund's investments in inverse floaters involve certain risks. The market value of an inverse floater residual certificate can be more volatile than that of a conventional fixed-rate bond having similar credit quality, maturity and redemption provisions. Typically, inverse floater residual certificates tend to underperform fixed-rate bonds when long-term interest rates are rising but tend to outperform fixed-rate bonds when long-term interest rates are stable or falling. Inverse floater residual certificates entail a degree of leverage because the trust issues short-term securities in a ratio to the residual certificates with the underlying long-term bond providing collateral for the obligation to pay the principal value of the short-term securities if and when they are tendered. If the Fund has created the inverse floater by depositing a long-term bond into a trust, it may be required to provide additional collateral for the short-term securities if the value of the underlying bond deposited in the trust falls.
An inverse floater that has a higher degree of leverage is typically more volatile with respect to its price and income than an inverse floater having a lower degree of leverage. Under inverse floater arrangements, if the remarketing agent that offers the short-term securities for sale is unable to sell them, or if the holders tender (or put) them for repayment of principal and the remarketing agent is unable to remarket them, the remarketing agent may cause the trust to be collapsed, and in the case of floaters created by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
Some inverse floaters may have a "cap," so that if interest rates rise above the cap, the security pays additional interest income. If rates do not rise above the cap, the Fund will have paid an additional amount for that feature that has proved worthless.
The Fund may also enter into "shortfall and forbearance" agreements with respect to inverse floaters. Under those agreements, upon liquidation of the trust, the Fund is committed to pay the trust the difference between the liquidation value of the underlying municipal bond on which the inverse floater is based and the principal amount payable to the holders of the short-term floating rate security that is based on the same underlying municipal security. Although the Fund has the risk that it may be required to make such additional payment, these agreements may offer higher interest payments than a standard inverse floater.
Accounting Treatment of Inverse Floaters. Because of the accounting treatment for inverse floaters created by the Fund's transfer of a municipal bond to a trust, the Fund's financial statements will reflect these transactions as "secured borrowings," which affects the Fund's expense ratios, statements of income and assets and liabilities and causes the Fund's Statement of Investments to include the underlying municipal bond. The Fund's annual fund operating expenses, shown earlier in this prospectus, include certain expenses and fees related to the Fund's investments in inverse floaters. Some of those expenses are liabilities with respect to interest paid on short-term floating rate notes issued by the trusts whose inverse floater certificates are held by the Fund. Under accounting rules, the Fund also recognizes additional income in an amount that directly corresponds to these expenses and, as a result the Fund's net asset values per share and total returns have not been affected by these additional expenses.When-Issued and Delayed-Delivery Transactions. The Fund may purchase municipal securities on a "when-issued" basis and may purchase or sell such securities on a "delayed-delivery" basis. "When-issued" or "delayed-delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. During the period between the purchase and the settlement dates, the buyer makes no payment for the security and receives no interest. When-issued or delayed-delivery securities the Fund buys are subject to changes in value as a result of market fluctuations during that period and the value of the security on the delivery date may be more or less than the Fund paid. The Fund may lose money if the value of the security has declined below the purchase price.
As a fundamental policy, securities purchased on a "when-issued" or "delayed-delivery" basis cannot exceed 10% of the Fund's net assets.
OTHER INVESTMENT STRATEGIES AND RISKS. The Fund can also use the investment techniques and strategies described below. The Fund might not use all of these techniques or strategies or might only use them from time to time.
Floating Rate/Variable Rate Obligations. Some municipal securities have variable or floating interest rates. Variable rates are adjustable at stated periodic intervals. Floating rates are automatically adjusted according to a specified market rate for those investments, such as, for example, the percentage of LIBOR, the SIFMA Municipal Swap Index or the percentage of the prime rate of a bank. These obligations may be secured by bank letters of credit or other credit support arrangements. Inverse floaters, discussed in this prospectus, are a type of variable rate obligation.
Percentage of LIBOR Notes (PLNs). The Fund may invest in Percentage of LIBOR Notes ("PLNs") which are variable rate municipal securities based on the London Interbank Offered Rate ("LIBOR"), a widely used benchmark for short-term interest rates and used by banks for interbank loans with other banks. A PLN typically pays interest based on a percentage of a LIBOR rate for a specified time plus an established yield premium. Due to their variable rate features, PLNs will generally pay higher levels of income in a rising short-term interest rate environment and lower levels of income as short-term interest rates decline. In times of substantial market volatility, however, PLNs may not perform as anticipated. The value of a PLN also may decline due to other factors, such as changes in credit quality of the underlying bond.
Because the market for PLNs is relatively new and still developing, the Fund's ability to engage in transactions using such instruments may be limited. There is no assurance that a liquid secondary market will exist for any particular PLN or at any particular time, and so the Fund may not be able to close a position in a PLN when it is advantageous to do so. The Fund may also transfer a PLN to a sponsor to create an inverse floater, which may further increase the volatility of the market value of a PLN or the inverse floater.
Zero-Coupon Securities. The Fund can invest without limit in zero-coupon securities. These debt obligations do not pay interest prior to their maturity date or else they do not start to pay interest at a stated coupon rate until a future date. They are issued and traded at a discount from their face amount. The discount varies as the securities approach their maturity date (or the date interest payments are scheduled to begin). When interest rates change, zero-coupon securities are subject to greater fluctuations in their value than securities that pay current interest. The Fund accrues the discount on zero-coupon bonds as tax-free income on a current basis. The Fund may have to pay out the imputed income on zero-coupon securities without receiving actual cash payments currently.
Illiquid Securities. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Manager monitors holdings of illiquid securities on an ongoing basis to determine whether to sell any holdings.
The Fund will not invest more than 15% of its net assets in illiquid securities.
Temporary Defensive and Interim Investments. For temporary defensive purposes in times of adverse or unstable market, economic or political conditions, the Fund can invest up to 100% of its total assets in investments that may be inconsistent with the Fund's principal investment strategies. Generally, the Fund would invest in short-term municipal securities, but could also invest in U.S. Government securities or highly-rated corporate debt securities. The Fund might also hold these types of securities as interim investments pending the investment of proceeds from the sale of Fund shares or the sale of Fund portfolio securities or to meet anticipated redemptions of Fund shares. The income from some temporary defensive investments may not be tax-exempt, and therefore to the extent the Fund invests in these securities, it might not achieve its investment objective.
Conflicts of Interest. The investment activities of the Manager and its affiliates in regard to other funds and accounts they manage may present conflicts of interest that could disadvantage the Fund and its shareholders. The Manager or its affiliates may provide investment advisory services to other funds and accounts that have investment objectives or strategies that differ from, or are contrary to, those of the Fund. That may result in another fund or account holding investment positions that are adverse to the Fund's investment strategies or activities. Other funds or accounts advised by the Manager or its affiliates may have conflicting interests arising from investment objectives that are similar to those of the Fund. Those funds and accounts may engage in, and compete for, the same types of securities or other investments as the Fund or invest in securities of the same issuers that have different, and possibly conflicting, characteristics. The trading and other investment activities of those other funds or accounts may be carried out without regard to the investment activities of the Fund and, as a result, the value of securities held by the Fund or the Fund's investment strategies may be adversely affected. The Fund's investment performance will usually differ from the performance of other accounts advised by the Manager or its affiliates and the Fund may experience losses during periods in which other accounts advised by the Manager or its affiliates achieve gains. The Manager has adopted policies and procedures designed to address potential conflicts of interest identified by the Manager; however, such policies and procedures may also limit the Fund's investment activities and affect its performance.
Portfolio Turnover. A change in the securities held by the Fund is known as "portfolio turnover." The Fund may engage in active and frequent trading to try to achieve its investment objective and may have a portfolio turnover rate of over 100% annually. Increased portfolio turnover may result in higher brokerage fees or other transaction costs, which can reduce performance. However, the Fund ordinarily incurs little or no brokerage expense because most of the Fund's portfolio transactions are principal trades that do not require payment of brokerage commission. If the Fund realizes capital gains when it sells investments, it generally must pay those gains to shareholders, increasing its taxable distributions. The Financial Highlights table at the end of this prospectus shows the Fund's portfolio turnover rates during past fiscal years.
CHANGES TO THE FUND'S INVESTMENT POLICIES. The Fund's fundamental investment policies cannot be changed without the approval of a majority of the Fund's outstanding voting shares; however, the Fund's Board can change non-fundamental policies without a shareholder vote. Significant policy changes will be described in supplements to this prospectus. The Fund's investment objective is a fundamental policy. Other investment restrictions that are fundamental policies are listed in the Fund's Statement of Additional Information. An investment policy is not fundamental unless this prospectus or the Statement of Additional Information states that it is.
PORTFOLIO HOLDINGS. The Fund's portfolio holdings are included in its semi-annual and annual reports that are distributed to its shareholders within 60 days after the close of the applicable reporting period. The Fund also discloses its portfolio holdings in its Statements of Investments on Form N-Q, which are public filings that are required to be made with the Securities and Exchange Commission within 60 days after the end of the Fund's first and third fiscal quarters. Therefore, the Fund's portfolio holdings are made publicly available no later than 60 days after the end of each of its fiscal quarters. In addition, the Fund's portfolio holdings information, as of the end of each calendar month, may be posted and available on the Fund's website no sooner than 30 days after the end of each calendar month.
A description of the Fund's policies and procedures with respect to the disclosure of its portfolio holdings is available in the Fund's Statement of Additional Information.
THE MANAGER. OppenheimerFunds, Inc., the Manager, chooses the Fund's investments and handles its day-to-day business. The Manager carries out its duties, subject to the policies established by the Fund's Board of Trustees, under an investment advisory agreement that states the Manager's responsibilities. The agreement sets the fees the Fund pays to the Manager and describes the expenses that the Fund is responsible to pay to conduct its business.
The Manager has been an investment adviser since 1960. The Manager is located at Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008.
Advisory Fees. Under the Investment Advisory Agreement, the Fund pays the Manager an advisory fee, calculated on the daily net assets of the Fund, at an annual rate that declines as the Fund's assets grow: 0.54% of the first $100 million of average annual net assets, 0.52% of the next $150 million, 0.47% of the next $1.75 billion, 0.46% of the next $3 billion, 0.45% of the next $3 billion, 0.44% of the next $6 billion and 0.42% of average annual net assets in excess of $14 billion. The Fund's advisory fee for its last fiscal year ended December 31, 2010, was 0.46% of average annual net assets for each class of shares.
The Transfer Agent has voluntarily agreed to limit its fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Fund's management fee and other annual operating expenses may vary in future years.
A discussion regarding the basis for the Board's approval of the Fund's investment advisory contract is available in the Fund's Annual Report to shareholders for the year ended December 31, 2010.
Portfolio Managers. The Fund's portfolio is managed by a team of investment professionals, including Daniel G. Loughran, Scott S. Cottier, Troy E. Willis, Mark R. DeMitry, Marcus V. Franz and Michael L. Camarella, who are primarily responsible for the day-to-day management of the Fund's investments. Mr. Loughran has been a portfolio manager of the Fund since December 2001 and a Vice President of the Fund since October 2005. Mr. Cottier has been a portfolio manager of the Fund since September 2002 and Vice President of the Fund since October 2005. Mr. Willis has been a portfolio manager of the Fund since June 2003 and Vice President of the Fund since October 2005. Mr. DeMitry has been a portfolio manager and Vice President of the Fund since September 2006. Mr. Franz has been a portfolio manager of the Fund since September 2006. Mr. Camarella has been a portfolio manager and Vice President of the Fund since January 2008. Mr. Pulire has been a portfolio manager of the Fund since January 2010.
Mr. Loughran has been a Senior Vice President of the Manager since July 2007 and a Senior Portfolio Manager of the Manager since December 2001. He was a Vice President of the Manager from April 2001 to June 2007. Mr. Loughran is a team leader, a portfolio manager, an officer, and a trader for the Fund and other Oppenheimer funds.
Mr. Cottier has been a Vice President and Senior Portfolio Manager of the Manager since September 2002. He is a portfolio manager, an officer, and a trader for the Fund and other Oppenheimer funds.
Mr. Willis has been a Vice President of the Manager since July 2009 and a Senior Portfolio Manager of the Manager since January 2006. He was an Assistant Vice President of the Manager from July 2005 to June 2009 and an Associate Portfolio Manager of the Manager from June 2003 to December 2005. Mr. Willis is a portfolio manager, an officer, and a trader for the Fund and other Oppenheimer funds.
Mr. DeMitry has been a Vice President and Senior Portfolio Manager of the Manager since July 2009. He was an Associate Portfolio Manager with the Manager from September 2006 to June 2009. He was a research analyst with the Manager from June 2003 to August 2006. He was a credit analyst with the Manager from June 2001 to May 2003. Mr. DeMitry is a portfolio manager, an officer and a trader for the Fund and other Oppenheimer funds.
Mr. Franz has been a Vice President and Senior Portfolio Manager of the Manager since July 2009. He was a Portfolio Manager with the Manager from October 2006 to June 2009. He was a research analyst with the Manager from June 2003 to September 2006. Mr. Franz is a portfolio manager and a trader for the Fund and other Oppenheimer funds.
Mr. Camarella has been a Vice President of the Manager since February 2011. He has been a Senior Portfolio Manager of the Manager since February 2011. He was a Portfolio Manager with the Manager since January 2008. He was a research analyst with the Manager from April 2006 to December 2007. He was a credit analyst with the Manager from June 2003 to March 2006. Mr. Camarella is a portfolio manager, an officer and a trader for the Fund and other
Oppenheimer funds.
Mr. Pulire has been an Assistant Vice President and Portfolio Manager of the Manager since December 2010. He was a research analyst with the Manager from February 2008 to November 2010 and was a credit analyst with the Manager from May 2006 to January 2008. Mr. Pulire is a portfolio manager and trader for the Fund and other Oppenheimer funds.
The Statement of Additional Information provides additional information about the portfolio managers' compensation, other accounts they manage and their ownership of Fund shares.
MORE ABOUT YOUR ACCOUNT
Where Can You Buy Fund Shares? Oppenheimer funds may be purchased either directly or through a variety of "financial intermediaries" that offer Fund shares to their clients. Financial intermediaries include securities dealers, financial advisers, brokers, banks, trust companies, insurance companies and the sponsors of fund "supermarkets," fee-based advisory or wrap fee programs.
WHAT CLASSES OF SHARES DOES THE FUND OFFER? The Fund offers investors four different classes of shares. The different classes of shares represent investments in the same portfolio of securities, but the classes are subject to different expenses and will usually have different share prices. When you buy shares, be sure to specify the class of shares you wish to purchase. If you do not choose a class, your investment will be made in Class A
shares. |
Certain sales charge waivers may apply to purchases or redemptions of Class A, Class B, or Class C shares. More information about those waivers is available in the Fund's Statement of Additional Information, or by clicking on the hyperlink "Sales Charge Waivers" under the heading "Fund Information" on the OppenheimerFunds website at "www.oppenheimerfunds.com."
WHAT IS THE MINIMUM INVESTMENT? In most cases, you can buy Fund shares with a minimum initial investment of $1,000 and make additional investments with as little as $50. The minimum additional investment requirement does not apply to reinvested dividends from the Fund or from other Oppenheimer funds or to omnibus account purchases. A $25 minimum applies to additional investments through an Asset Builder Plan, an Automatic Exchange Plan or a government allotment plan established before November 1, 2002. Reduced initial minimums are available in certain circumstances, including under the following investment plans:
Minimum Account Balance. A $12 annual "minimum balance fee" is assessed on Fund accounts with a value of less than $500. The fee is automatically deducted from each applicable Fund account annually in September. See the Statement of Additional Information for information about the circumstances under which this fee will not be assessed. Small accounts may be involuntarily redeemed by the Fund if the value has fallen below $500 for reasons other than a decline in the market value of the shares.
Once you decide that the Fund is an appropriate investment for you, deciding which class of shares is best suited to your needs depends on a number of factors that you should discuss with your financial advisor. The Fund's operating costs that apply to a share class and the effect of the different types of sales charges on your investment will affect your investment results over time. For example, the net asset value and the dividends of Class B and Class C shares will be reduced by additional expenses borne by those classes, such as the asset-based sales charge.
Two of the factors to consider are how much you plan to invest and, while future financial needs cannot be predicted with certainty, how long you plan to hold your investment. For example, with larger purchases that qualify for a reduced initial sales charge on Class A shares, the effect of paying an initial sales charge on purchases of Class A shares may be less over time than the effect of the asset-based sales charges on Class B or Class C shares. If
your goals and objectives change over time and you plan to purchase additional shares, you should re-evaluate each of the factors to see if you should consider a different class of shares.
The discussion below is not intended to be investment advice or a recommendation, because each investor's financial considerations are different. The discussion below assumes that you will purchase only one class of shares and not a combination of shares of different classes. These examples are based on approximations of the effects of current sales charges and expenses projected over time, and do not detail all of the considerations in selecting a class of shares. You should analyze
your options carefully with your financial adviser before making that choice.
Are There Differences in Account Features That Matter to You? Some account features may not be available for all share classes. Other features may not be advisable because of the effect of the contingent deferred sales charge. Therefore, you should carefully review how you plan to use your investment account before deciding which class of shares to buy.
How Do Share Classes Affect Payments to Your Financial Intermediary? The Class B and Class C contingent deferred sales charges and asset-based sales charges have the same purpose as the front-end sales charge or contingent deferred sales charge on Class A shares: to compensate the Distributor for concessions and expenses it pays to brokers, dealers and other financial intermediaries for selling Fund shares. Those financial intermediaries may receive different compensation for selling different classes of shares. The Manager or Distributor may also pay dealers or other financial intermediaries additional amounts from their own resources based on the value of Fund shares held by the intermediary for its own account or held for its customers accounts. For more information about those payments, see "Payments to Financial Intermediaries and Service Providers" below.
ABOUT CLASS A SHARES. Class A shares are sold at their offering price, which is the net asset value of the shares (described below) plus, in most cases, an initial sales charge. The Fund receives the amount of your investment, minus the sales charge, to invest for your account. In some cases, Class A purchases may qualify for a reduced sales charge or a sales charge waiver, as described below and in the Statement of Additional Information.
The Class A sales charge rate varies depending on the amount of your purchase. A portion or all of the sales charge may be retained by the Distributor or paid to your broker, dealer or other financial intermediary as a concession. The current sales charge rates and concessions paid are shown in the table below. There is no initial sales charge on Class A purchases of $1 million or more, but a contingent deferred sales charge (described below) may apply.
Amount of Purchase |
Front-End Sales Charge As a Percentage of Offering Price |
Front-End Sales Charge As a Percentage of Net Amount Invested |
Concession As a Percentage of Offering Price |
|||
Less than $50,000 |
4.75% |
4.98% |
4.00% |
|||
$50,000 or more but less than $100,000 |
4.50% |
4.71% |
4.00% |
|||
$100,000 or more but less than $250,000 |
3.50% |
3.63% |
3.00% |
|||
$250,000 or more but less than $500,000 |
2.50% |
2.56% |
2.25% |
|||
$500,000 or more but less than $1 million |
2.00% |
2.04% |
1.80% |
Due to rounding, the actual sales charge for a particular transaction may be higher or lower than the rates listed above.
Reduced Class A Sales Charges. Under a "Right of Accumulation" or a "Letter of Intent" you may be eligible to buy Class A shares of the Fund at the reduced sales charge rates that would apply to a larger purchase. The Fund reserves the right to modify or to cease offering these programs at any time.
A fiduciary can apply rights of accumulation to all shares purchased for a trust, estate or other fiduciary account that has multiple accounts (including employee benefit plans for the same employer and Single K plans for the benefit of a sole proprietor).
If you are buying shares directly from the Fund, you must inform the Distributor of your eligibility and holdings at the time of your purchase in order to qualify for the Right of Accumulation. If you are buying shares through a financial intermediary you must notify the intermediary of your eligibility for the Right of Accumulation at the time of your purchase.
To count shares held in accounts at other firms, you may be requested to provide the Distributor or your current financial intermediary with a copy of account statements showing your current holdings of the Fund, other eligible Oppenheimer funds or qualifying 529 plans. Shares purchased under a Letter of Intent may also qualify as eligible holdings under a Right of Accumulation.
Purchases of Class N or Class Y shares, purchases made by reinvestment of dividends or capital gains distributions from other Oppenheimer funds, purchases of Class A shares with redemption proceeds under the "reinvestment privilege" described below, and purchases of Class A shares of
Oppenheimer Money Market Fund, Inc. or Oppenheimer Cash Reserves on which a sales charge has not been paid do not count as "qualified shares" for satisfying the terms of a Letter.
Submitting a Letter of Intent does not obligate you to purchase the specified amount of shares. If you do not complete the anticipated purchases, you will be charged the difference between the sales charge that you paid and the sales charge that would apply to the actual value of shares you purchased. A certain portion of your shares will be held in escrow by the Fund's Transfer Agent for this purpose. Please refer to "How to Buy Shares – Letters of Intent" in the Fund's Statement
of Additional Information for more complete information. You may also be able to apply the Right of Accumulation to purchases you make under a Letter of Intent.
Class A Contingent Deferred Sales Charge. There is no initial sales charge on Class A share purchases totaling $1 million or more of one or more of the Oppenheimer funds. However, those Class A shares may be subject to a 0.75% contingent deferred sales charge if they are redeemed within an 18-month "holding period" measured from the beginning of the calendar month in which they were purchased (except for shares in certain retirement plans). That sales charge will be calculated on the lesser of the original net asset value of the redeemed shares or the aggregate net asset value of the redeemed shares at the time of redemption.
The Class A contingent deferred sales charge does not apply to shares purchased by the reinvestment of dividends or capital gain distributions and will not exceed the aggregate amount of the concessions the Distributor pays on all of your purchases of Class A shares, of all Oppenheimer funds, that are subject to the contingent deferred sales charge.
The Distributor pays concessions from its own resources on certain purchases of Class A shares of one or more of the Oppenheimer funds that, in the aggregate, total $1 million or more. If purchases of a Fund's Class A shares are included in any such purchase, the Distributor will pay the concession on those Fund shares at the rate of 0.75% of their net asset value. A concession will not be paid on shares purchased by exchange or shares that were previously subject to a front-end sales charge and dealer concession.
ABOUT CLASS B SHARES. Class B shares are sold at net asset value per share without an initial sales charge. However, if Class B shares are redeemed within six years from the beginning of the calendar month in which they were purchased, a contingent deferred sales charge will be deducted from the redemption proceeds. Class B shares are also subject to an asset-based sales charge that is calculated daily based on an annual rate of 0.75%. The Class B contingent deferred sales charge and asset-based sales charge are paid to compensate the Distributor for providing distribution-related services to the Fund in connection with the sale of Class B shares.
The amount of the Class B contingent deferred sales charge will depend on the number of years since you invested, according to the following schedule:
Years since Beginning of Month in Which Purchase Order was Accepted |
Contingent Deferred Sales Charge on Redemptions in That Year (As % of Amount Subject to Charge) |
0-1 |
5.0% |
1-2 |
4.0% |
2-3 |
3.0% |
3-4 |
3.0% |
4-5 |
2.0% |
5-6 |
1.0% |
More than 6 |
None |
In the table, a "year" is a 12-month period. In applying the contingent deferred sales charge, all purchases are considered to have been made on the first regular business day of the month in which the purchase was made.
Automatic Conversion of Class B Shares. Class B shares automatically convert to Class A shares six years (72 months) after you purchase them. This conversion eliminates the Class B asset-based sales charge, however, the shares will be subject to the ongoing Class A fees and expenses. The conversion is based on the relative net asset value of the two classes, and no sales load or other charge is imposed. When any Class B shares that you hold convert to Class A shares, all other Class B shares that were acquired by reinvesting dividends and distributions on the converted shares will also convert. For further information on the conversion feature and its tax implications, see "Class B Conversion" in the Statement of Additional Information.
ABOUT CLASS C SHARES. Class C shares are sold at net asset value per share without an initial sales charge. However, if Class C shares are redeemed within a 12 month "holding period" from the beginning of the calendar month in which they were purchased, a contingent deferred sales charge of 1.00% may be deducted from the redemption proceeds. Class C shares are also subject to an asset-based sales charge that is calculated daily based on an annual rate of 0.75%. The Class C contingent deferred sales charge and asset-based sales charge are paid to compensate the Distributor for providing distribution-related services to the Fund in connection with the sale of Class C shares.
ABOUT CLASS Y SHARES. Class Y shares are sold at net asset value per share without a sales charge directly to institutional investors that have special agreements with the Distributor for that purpose. They may include insurance companies, registered investment companies, employee benefit plans and Section 529 plans, among others.
An institutional investor that buys Class Y shares for its customers' accounts may impose charges on those accounts. The procedures for buying, selling, exchanging and transferring the Fund's other classes of shares (other than the time those orders must be received by the Distributor or Transfer Agent at their Colorado office) and some of the special account features available to investors buying other classes of shares do not apply to Class Y shares. Instructions for buying, selling, exchanging or transferring Class Y shares must be submitted by the institutional investor, not by its customers for whose benefit the shares are held.
Present and former officers, directors, trustees and employees (and their eligible family members) of the Fund, the Manager, its affiliates, its parent company and the subsidiaries of its parent company, and retirement plans established for the benefit of such individuals, are also permitted to purchase Class Y shares of the Fund.
Shares may be purchased at their offering price which is the net asset value per share plus any initial sales charge that applies. Shares are redeemed at their net asset value per share less any contingent deferred sales charge that applies. The net asset value that applies to a purchase or redemption order is the next one calculated after the Distributor receives the order, in proper form as described in this prospectus, or after any agent appointed by the Distributor receives the order in proper form as described in this prospectus. Your financial intermediary can provide you with more information regarding the time you must submit your purchase order and whether the intermediary is an authorized agent for the receipt of purchase and redemption orders.
Net Asset Value. The Fund calculates the net asset value of each class of shares as of the close of the New York Stock Exchange (NYSE), on each day the NYSE is open for trading (referred to in this prospectus as a "regular business day"). The NYSE normally closes at 4:00 p.m., Eastern time, but may close earlier on some days. All references to time in this prospectus are to "Eastern time."
The net asset value per share for a class of shares on a "regular business day" is determined by dividing the value of the Fund's net assets attributable to that class by the number of shares of that class outstanding on that day. The Fund's assets generally trade in the over-the-counter market rather than on a securities exchange. Therefore, to determine net asset values, the Fund assets are generally valued at the mean between the bid and asked prices as determined by a pricing service. If the prices determined by the pricing service do not accurately reflect fair value for a security (in the Manager's judgment) or if a security's value has been materially affected by events occurring after the price is received from the pricing service and before the time as of which the Fund's net asset values are calculated that day, that security may be valued by another method that the Board of Trustees believes accurately reflects the fair value.
The Board has adopted valuation procedures for the Fund and has delegated the day-to-day responsibility for fair value determinations to the Manager's Valuation Committee. Fair value determinations by the Manager are subject to review, approval and ratification by the Board at its next scheduled meeting after the fair valuations are determined. In determining whether prices received from the pricing services are reliable, the Manager monitors the information it receives in the ordinary course of its investment management responsibilities for significant events that it believes in good faith will affect the prices of the securities of issuers held by the Fund. Those may include events affecting specific issuers or events affecting securities markets (for example, a securities market closes early because of a natural disaster). The Fund uses fair value pricing procedures to reflect what the Manager and the Board believe to be more accurate values for the Fund's portfolio securities, although it may not always be able to accurately determine such values. There can be no assurance that the Fund could obtain the fair value assigned to a security if it were to sell the security at the same time at which the Fund determines its net asset value per share.
Contingent Deferred Sales Charge. If you redeem shares during their applicable contingent deferred sales charge holding period, the contingent deferred sales charge generally will be deducted from the redemption proceeds. In some circumstances you may be eligible for one of the waivers described in "Sales Charge Waivers" below and in the "Special Sales Charge Arrangements and Waivers" Appendix to the Statement of Additional Information. You must advise the Transfer Agent or your financial intermediary of your eligibility for a waiver when you place your redemption request.
A contingent deferred sales charge will be based on the net asset value of the redeemed shares at the time of redemption or the original net asset value, whichever is lower. A contingent deferred sales charge is not imposed on:
The Fund redeems shares in the following order:
SALES CHARGE WAIVERS. The Fund and the Distributor offer the following opportunities to purchase shares without front-end or contingent deferred sales charges. The Fund reserves the right to amend or discontinue these programs at any time without prior notice.
How to Buy, Sell and Exchange Shares
BUYING SHARES. You can buy shares in several ways. The Distributor has appointed certain financial intermediaries, including brokers, dealers and others, as servicing agents to accept purchase and redemption orders. The Distributor or servicing agent must receive your order, in proper form, by the close of the NYSE for you to receive that day's offering price. If your order is received on a day when the NYSE is closed or after it has closed, the order will receive the next offering price that is determined. To be in proper form, your purchase order must comply with the procedures described below. The Distributor, in its sole discretion, may reject any purchase order for the Fund's shares.
Buying Shares Through a Financial Intermediary. You can buy shares through any servicing agent (a broker, dealer, or other financial intermediary) that has a sales agreement with the Distributor. Your servicing agent will place your order with the Distributor on your behalf. A servicing agent may charge a processing fee for that service. Your account information will be shared with the financial intermediary designated as the dealer of record for the account.
Buying Shares Through the Distributor. We recommend that you discuss your investment with a financial adviser before you make a purchase to be sure that the Fund is appropriate for you. If you want to purchase shares directly from the Distributor, complete an OppenheimerFunds new account application and mail it with a check payable in U.S. dollars to "OppenheimerFunds Distributor, Inc." to the address on the back cover. If you do not list a dealer on your application, the Distributor is designated as the broker-dealer of record, but solely for the purpose of acting as your agent to purchase the shares and Class A shares are your only purchase option. Class B or Class C shares may not be purchased by a new investor directly from the Distributor without the investor designating another registered broker-dealer. However, if a current investor no longer has a broker-dealer of record for an existing Class B or Class C account, the Distributor is automatically designated as the broker-dealer of record, but solely for the purpose of acting as your agent to purchase the shares. If you submit a purchase request to the Distributor without designating the fund you wish to invest in, your investment will be made in Class A shares of Oppenheimer Money Market Fund, Inc. This policy does not apply to purchases by or for certain retirement plans or accounts. For more information regarding undesignated investments, please call the Transfer Agent at the number on the back cover of this prospectus.
Identification Requirements. Federal regulations may require the Fund to obtain your name, your date of birth (for a natural person), your residential street address or principal place of business, and your Social Security Number, Employer Identification Number or other government-issued identification when you open an account. Additional information may be required to open a corporate account or in certain other circumstances. The Fund or the Transfer Agent may use this information to verify your identity. The Fund may not be able to establish an account if the necessary information is not received. The Fund may also place limits on account transactions while it is in the process of verifying your identity. Additionally, if the Fund is unable to verify your identity after your account is established, the Fund may be required to redeem your shares and close your account.
Suspension of Share Offering. The offering of Fund shares may be suspended during any period in which the determination of net asset value is suspended, and may be suspended by the Board at any time the Board believes it is in the Fund's best interest to do so.
SELLING SHARES. You can generally redeem (sell) some or all of your shares on any regular business day. You may redeem your shares by writing a letter, by wire, by telephone or on the Internet. You can also set up an Automatic Withdrawal Plan to redeem shares on a regular basis. The redemption of Fund shares may be suspended under certain circumstances described in the Statement of Additional Information. If you have questions about any of these procedures, and especially if you are redeeming shares in a special situation, such as due to the death of the owner or from a retirement plan account, please call your financial intermediary or the Transfer Agent for assistance.
Redemption Price. Your shares will be redeemed at net asset value less any applicable sales charge or other fees. The net asset value used will be the next one calculated after your order is received, in proper form, by the Transfer Agent or your authorized financial intermediary. To be in proper form, your redemption order must comply with the procedures described below. The redemption price for shares will change from day-to-day because the value of the securities in the Fund's portfolio and the Fund's expenses fluctuate. The redemption price will normally differ for each class of shares. The redemption price of your shares may be more or less than their original cost.
Redemptions "In-Kind." Shares may be "redeemed in-kind" under certain circumstances (such as a lack of liquidity in the Fund's portfolio to meet redemptions). That means that the redemption proceeds will be paid in securities from the Fund's portfolio on a pro-rata basis, possibly including illiquid securities. If the Fund redeems your shares in-kind, you may bear transaction costs and will bear market risks until such securities are converted into cash.
Options for Receiving Redemption Proceeds
Checkwriting. Effective January 1, 2011, shareholders will no longer be able to establish checkwriting for a new or existing account, and will no longer be able to order additional checks for accounts with
checkwriting privileges established before January 1, 2011. The following applies to shareholders that established checkwiting privileges before January 1, 2011.
• Beginning June 1, 2011, the Transfer Agent will no longer accept check drafts to redeem shares from your account. Check drafts received on or after this date will be returned without payment.
• Checks may be written to the order of whomever you wish, but may not be cashed at the bank the checks are payable through or by the Fund's custodian bank.
• Checks must be written for at least $500. Checks will not be accepted if they are written for less than $500, including checks that indicate a $100 minimum.
• Checks cannot be paid if they are written for more than your account value. Remember, your account may fluctuate in value and you should not write a check close to the total account value.
• You may not write a check that would require the Fund to redeem shares that were purchased by check or Asset Builder Plan payments within the prior 5 business days.
• Checkwriting privileges are not available for accounts holding shares that are subject to a contingent deferred sales charge.
• Checkwriting privileges are not available for shares that are held in a retirement account.
Payment Delays. Payment for redeemed shares is usually made within seven days after the Transfer Agent receives redemption instructions in proper form. For accounts registered in the name of a broker-dealer, payment will normally be forwarded to the broker-dealer within three business days. The Transfer Agent may delay processing redemption payments for recently purchased shares until the purchase payment has cleared. That delay may be as much as five business days from the date the shares were purchased. That delay may be avoided if you purchase shares by Federal Funds wire or certified check. Under unusual circumstances, the right to redeem shares or the payment of redemption proceeds may be delayed or suspended as permitted under the Investment Company Act of 1940.
THE OPPENHEIMERFUNDS EXCHANGE PRIVILEGE. You can exchange all or part of your Fund shares for shares of the same class of other Oppenheimer funds that offer the exchange privilege. For example, you can exchange Class A shares of the Fund only for Class A shares of another fund. You can obtain a list of the Oppenheimer funds that are currently available for exchanges by calling a service representative at the telephone number on the back of this prospectus. The funds available for exchange can change from time to time. The Fund may amend, suspend or terminate the exchange privilege at any time. You will receive 60 days' notice of any material change in the exchange privilege unless applicable law allows otherwise.
The OppenheimerFunds exchange privilege affords investors the ability to switch their investments among Oppenheimer funds if their investment needs change. However, there are limits on that privilege. Frequent purchases, redemptions and exchanges of Fund shares may interfere with the Manager's ability to manage the Fund's investments efficiently, increase its transaction and administrative costs and/or affect its performance, depending on various factors, such as the size of the Fund, the nature of its investments, the amount of Fund assets a portfolio manager maintains in cash or cash equivalents, the aggregate dollar amount and the number and frequency of trades.
If large dollar amounts are involved in exchange or redemption transactions, the Fund might be required to sell portfolio securities at unfavorable times to meet those transaction requests, and the Fund's brokerage or administrative expenses might be increased. Therefore, the Manager and the Fund's Board have adopted the following policies and procedures to detect and prevent frequent and/or excessive exchanges or purchase and redemption activity, while addressing the needs of investors who seek liquidity in their investment and the ability to exchange shares as their investment needs change. There is no guarantee that those policies and procedures, described below, will be sufficient to identify and deter all excessive short-term trading.
Limitations on Frequent Exchanges
30-Day Hold. If a direct shareholder exchanges shares of another Oppenheimer fund account for shares of the Fund, his or her Fund account will be "blocked" from exchanges into any other fund for a period of 30 calendar days from the date of the exchange, subject to certain exceptions described below. Likewise, if a Fund shareholder exchanges Fund shares for shares of another eligible Oppenheimer fund, that fund account will be "blocked" from further exchanges for 30 calendar days, subject to the exception described below. The block will apply to the full account balance and not just to the amount exchanged into the account. For example, if a shareholder exchanged $2,000 from one fund into another fund in which the shareholder already owned shares worth $10,000, then, following the exchange and assuming no exception applied, the full account balance ($12,000 in this example) would be blocked from exchanges into another fund for a period of 30 calendar days. A shareholder whose account is registered on the Fund's books showing the name, address and tax ID number of the beneficial owner is a "direct shareholder."
Exceptions to 30-Day Hold
Limitations on Exchanges in Omnibus Accounts. If you hold your Fund shares through a financial advisor or other firm such as a broker-dealer, a bank, an insurance company separate account, an investment adviser, an administrator or a trustee of a retirement plan that holds your shares in an account under its name (these are sometimes referred to as "omnibus" or "street name" accounts), that financial intermediary may impose its own restrictions or limitations to discourage short-term or excessive trading. You should consult your financial intermediary to find out what trading restrictions, including limitations on exchanges, may apply. The Fund, the Distributor, the Manager and the Transfer Agent encourage those financial intermediaries to apply the Fund's policies to their customers who invest indirectly in the Fund. However, the Transfer Agent may not be able to detect excessive short-term trading activity in accounts maintained in "omnibus" or "street name" form where the underlying beneficial owners are not identified. The Transfer Agent will attempt to monitor overall purchase and redemption activity in those accounts to seek to identify patterns that may suggest excessive trading by the underlying owners. If evidence of possible excessive trading activity is observed by the Transfer Agent, the financial intermediary that is the registered owner will be asked to review the account activity, and to confirm to the Transfer Agent and the Fund that appropriate action has been taken to curtail any excessive trading activity.
Other Limitations on Exchanges. There are a number of other special conditions and limitations that apply to certain types of exchanges. Those conditions and circumstances are described in the section "How to Exchange Shares" in the Statement of Additional Information. For information about sales charges that may apply to exchanges of shares see the sections "Contingent Deferred Sales Charge" and "Sales Charge Waivers" in this prospectus.
Requirements for Exchanges of Shares. To exchange shares of the Fund, you must meet several conditions. The Fund may amend the following requirements at any time:
Timing of Exchange Transactions. Exchanged shares are normally redeemed from one fund and the proceeds are reinvested in the fund selected for exchange on the same regular business day on which the Transfer Agent or its agent (such as a financial intermediary holding the investor's shares in an "omnibus" or "street name" account) receives an exchange request that conforms to these policies. The request must be received by the close of the NYSE that day in order to receive that day's net asset value on the exchanged shares. For requests received after the close of the NYSE the shares being exchanged will be valued at the next net asset value calculated after the request is received. The Transfer Agent may delay transmitting the proceeds from an exchange for up to five business days, however, if it determines, in its discretion, that an earlier transmittal of the redemption proceeds would be detrimental to either the fund from which shares are being exchanged or the fund into which the exchange is being made. The exchange proceeds will be invested in the new fund at the next net asset value calculated after the proceeds are received. In the event that a delay in the reinvestment of proceeds occurs, the Transfer Agent will notify you or your financial intermediary.
Taxes on Exchanges. For tax purposes, an exchange of shares of the Fund is considered a sale of those shares and a purchase of the shares of the fund into which you are exchanging. Therefore, an exchange may result in a capital gain or loss for tax purposes.
OTHER LIMITS ON SHARE TRANSACTIONS. The Fund may impose other limits on transactions that it believes would be disruptive and may refuse any purchase or exchange order.
SUBMITTING SHARE TRANSACTION REQUESTS. Share transactions may be requested by telephone or internet, in writing, through your financial intermediary, or by establishing one of the Investor Services plans described below. Certain transactions may also be submitted by fax. If an account has more than one owner, the Fund and the Transfer Agent may rely on instructions from any one owner or from the financial intermediary's representative of record for the account, unless that authority has been revoked.
Internet and Telephone Transaction Requests. Purchase, redemption and exchange requests may be submitted on the OppenheimerFunds website, www.oppenheimerfunds.com. Those requests may also be made by calling the telephone number on the back cover and either speaking to a service representative or accessing PhoneLink, the OppenheimerFunds automated telephone system that enables shareholders to perform certain account transactions automatically using a touch-tone phone.
You will need to obtain a user I.D. and password to execute transactions through PhoneLink or on the internet. Some internet and telephone transactions require the Oppenheimer AccountLink feature, described below, that links your Fund account with an account at a U.S. bank or other financial institution. The Transfer Agent will record any telephone calls to verify data concerning transactions.
The following policies apply to internet and telephone transactions:
The Transfer Agent has adopted procedures to confirm that telephone and internet instructions are genuine. Callers are required to provide service representatives with tax identification numbers and other account data and PhoneLink and internet users are required to use PIN numbers. The Transfer Agent will also send you written confirmations of share transactions. The Transfer Agent and the Fund will not be liable for losses or expenses that occur from telephone or internet instructions reasonably believed to be genuine.
Telephone or internet transaction privileges may be modified, suspended or terminated by the Fund at any time. The Fund will provide you notice of such changes whenever it is required to do so by applicable law.
Purchases and Redemptions by Federal Funds Wire. Shares purchased through the Distributor may be paid for by Federal Funds wire. Redemption proceeds may also be transmitted by wire. The minimum wire purchase or redemption is $2,500. There is a $10 fee for each wire redemption request. Before sending a wire purchase, call the Distributor's Wire Department at 1.800.225.5677 to notify the Distributor of the wire and to receive further instructions. To set up wire redemptions on your account or to arrange for a wire redemption, call the Transfer Agent at the telephone number on the back of this prospectus for information.
Written Transaction Requests. You can send purchase, exchange or redemption requests to the Transfer Agent at the address on the back cover. Your request must include:
Certain Requests Require a Signature Guarantee. To protect you and the Fund from fraud, certain redemption requests must be in writing and must include a signature guarantee. A notary public seal will not be accepted for these requests (other situations might also require a signature guarantee):
Where Can You Have Your Signature Guaranteed? The Transfer Agent will accept a signature guarantee from a number of financial institutions, including:
Fax Requests. You may send requests for certain types of account transactions to the Transfer Agent by fax. Please call the number on the back of this prospectus for information about which transactions may be handled this way. Transaction requests submitted by fax are subject to the same rules and restrictions as the written, telephone and internet requests described in this prospectus. However, requests that require a signature guarantee may not be submitted by fax.
Submitting Transaction Requests Through Your Financial Intermediary. You can submit purchase, redemption or exchange requests through any broker, dealer or other financial intermediary that has a special agreement with the Distributor. The broker, dealer or other intermediary will place the order with the Distributor on your behalf. A broker or dealer may charge a processing fee for that service. If your shares are held in the name of your financial intermediary, you must redeem them through that intermediary.
Intermediaries that perform account transactions for their clients by participating in "Networking" through the National Securities Clearing Corporation are responsible for obtaining their clients' permission to perform those transactions, and are responsible to their clients who are shareholders of the Fund if the intermediary performs any transaction erroneously or improperly.
Client Account Exchanges by Financial Intermediaries. The Fund and the Transfer Agent permit brokers, dealers and other financial intermediaries to submit exchange requests on behalf of their customers, unless that authority has been revoked. The Fund or the Transfer Agent may limit or refuse exchange requests submitted by such financial intermediaries if, in the Transfer Agent's judgment, exercised in its discretion, the exchanges would be disruptive to any of the funds involved in the transaction.
INVESTMENT PLANS AND SERVICES
AccountLink. You can use our AccountLink feature to link your Fund account with an account at a U.S. bank or other financial institution that is an Automated Clearing House (ACH) member. AccountLink lets you:
AccountLink privileges should be requested on your account application or on your broker-dealer's settlement instructions if you buy your shares through a broker-dealer. For an established account, you can request AccountLink privileges by sending signature-guaranteed instructions and proper documentation to the Transfer Agent. AccountLink privileges will apply to each shareholder listed in the registration on the account as well as to the financial intermediary's representative of record unless and until the Transfer Agent terminates or receives written instructions terminating or changing those privileges. After you establish AccountLink for your account, any change you make to your bank account information must be made by signature-guaranteed instructions to the Transfer Agent signed by all shareholders on the account. Please call the Transfer Agent for more information.
Asset Builder Plan. Under an Asset Builder Plan, you may purchase shares of the Fund automatically. An Asset Builder Plan is available only if you have established AccountLink with a bank or other financial institution. Payments to purchase Fund shares will be debited from your linked account.
To establish an Asset Builder Plan at the time you initially purchase Fund shares, complete the "Asset Builder Plan" information on the account application. To add an Asset Builder Plan to an existing account, use the Asset Builder Enrollment Form. You may change the amount of your Asset Builder payment or you can terminate your automatic investments at any time by writing to the Transfer Agent. The Transfer Agent requires a reasonable period (approximately 10 days) after receipt of your instructions to implement the requested changes. For more details, see the account application, the Asset Builder Enrollment Form and the Statement of Additional Information. Those documents are available by contacting the Distributor or may be downloaded from our website at www.oppenheimerfunds.com. The Fund reserves the right to amend, suspend or discontinue offering Asset Builder Plans at any time without prior notice.
Automatic Redemption and Exchange Plans. The Fund has several plans that enable you to redeem shares automatically or exchange them for shares of another Oppenheimer fund on a regular basis. Please call the Transfer Agent or consult the Statement of Additional Information for details.
Less Paper, Less Waste. To avoid sending duplicate copies of Fund materials to households, the Fund will mail only one copy of each prospectus, annual and semi-annual report and annual notice of the Fund's privacy policy to shareholders having the same last name and address on the Fund's records. The consolidation of these mailings, called "householding," benefits the Fund through lower printing costs and reduced mailing expense.
If you prefer to receive multiple copies of these materials, you may call the Transfer Agent at the number on the back of this prospectus or you may notify the Transfer Agent in writing. Multiple copies of prospectuses, reports and privacy notices will be sent to you commencing within 30 days after the Transfer Agent receives your request to stop householding.
You may also choose to receive your account documents electronically via eDocs Direct. Visit our website at www.oppenheimerfunds.com and click the hyperlink "Sign Up for Electronic Document Delivery" under the heading "I want to..." in the left hand column, or call 1.888.470.0862 for information and instructions.
DISTRIBUTION AND SERVICE (12b-1) PLANS
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class A shares that reimburses the Distributor for a portion of the costs of maintaining accounts and providing services to Class A shareholders. The Fund makes these payments quarterly, calculated at an annual rate of up to 0.15% of the Class A shares daily net assets. The Distributor currently uses all of those fees to pay brokers, dealers, banks and other financial intermediaries for providing personal service and maintaining the accounts of their customers that hold Class A shares.
The Board of Trustees can increase that fee to 0.25% of average annual net assets without shareholder approval. Shareholders will be notified of any such change.
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 pay the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. Under the plans, the Fund pays the Distributor an asset-based sales charge for Class B and Class C shares calculated at an annual rate of 0.75% of the daily net assets of those classes. The Fund also pays a service fee under the plans at an annual rate of 0.25% of the daily net assets of Class B and Class C. Altogether, these fees increase the Class B and Class C annual expenses by 1.00%, calculated on the daily net assets of the applicable class. Because these fees are paid out of the Fund's assets on an on going basis, over time they will increase the cost of your investment and may cost you more than other types of sales charges.
Use of Plan Fees: The Distributor uses the service fees to compensate brokers, dealers, banks and other financial intermediaries for maintaining accounts and providing personal services to Class B and Class C shareholders in the applicable share class. The Distributor normally pays intermediaries the 0.25% service fee in advance for the first year after shares are purchased and then pays that fee periodically.
Class B Shares: The Distributor currently pays a sales concession of 3.75% of the purchase price of Class B shares to dealers from its own resources at the time of sale. Including the advance of the service fee, the total amount paid by the Distributor to the dealer at the time of sale of Class B shares is therefore 4.00% of the purchase price. The Distributor normally retains the Class B asset-based sales charge. For ongoing purchases of Class B shares by certain retirement plans, the Distributor may pay the intermediary the asset-based sales charge and service fee during the first year after purchase instead of paying a sales concession and the first year's service fees at the time of purchase. See the Statement of Additional Information for exceptions.
Class C Shares: At the time of a Class C share purchase, the Distributor generally pays financial intermediaries a sales concession of 0.75% of the purchase price from its own resources. Therefore, the total amount, including the advance of the service fee, that the Distributor pays the intermediary at the time of a Class C share purchase is 1.00% of the purchase price. The Distributor normally retains the asset-based sales charge on Class C share purchases during the first year and then pays that fee to the intermediary as an ongoing concession. See the Statement of Additional Information for exceptions to these arrangements.
PAYMENTS TO FINANCIAL INTERMEDIARIES AND SERVICE PROVIDERS. The Manager and the Distributor, in their discretion, may also make payments to brokers, dealers and other financial intermediaries or to service providers for distribution and/or shareholder servicing activities. Those payments are made out of the Manager's and/or the Distributor's own resources and/or assets, including from the revenues or profits derived from the advisory fees the Manager receives from the Fund. Those cash payments, which may be substantial, are paid to many firms having business relationships with the Manager and Distributor and are in addition to any distribution fees, servicing fees, or transfer agency fees paid directly or indirectly by the Fund to these financial intermediaries and any commissions the Distributor pays to these firms out of the sales charges paid by investors. Payments by the Manager or Distributor from their own resources are not reflected in the tables in the "Fees and Expenses of the Fund" section of this prospectus because they are not paid by the Fund.
The financial intermediaries that may receive those payments include firms that offer and sell Fund shares to their clients, or provide shareholder services to the Fund, or both, and receive compensation
for those activities. The financial intermediaries that may receive payments include your securities broker, dealer or financial advisor, sponsors of fund "supermarkets," sponsors of fee-based advisory or wrap fee programs, sponsors of college and retirement savings programs, banks, trust companies and other intermediaries offering products that hold Fund shares, and insurance companies that offer variable annuity or variable life insurance products.
In general, these payments to financial intermediaries can be categorized as "distribution-related" or "servicing" payments. Payments for distribution-related expenses, such as marketing or promotional expenses, are often referred to as "revenue sharing." Revenue sharing payments may be made on the basis of the sales of shares attributable to that intermediary, the average net assets of the Fund and other Oppenheimer funds attributable to the accounts of that intermediary and its
clients, negotiated lump sum payments for distribution services provided, or similar fees. In some circumstances, revenue sharing payments may create an incentive for a financial intermediary or its representatives to recommend or offer shares of the Fund or other Oppenheimer funds to its customers. These payments also may give an intermediary an incentive to cooperate with the Distributor's marketing efforts. A revenue sharing payment may, for example, qualify the Fund for
preferred status with the intermediary receiving the payment or provide representatives of the Distributor with access to representatives of the intermediary's sales force, in some cases on a preferential basis over funds of competitors. Additionally, as firm support, the Manager or Distributor may reimburse expenses related to educational seminars and "due diligence" or training meetings (to the extent permitted by applicable laws or the rules of the Financial Industry Regulatory
Authority ("FINRA")) designed to increase sales representatives' awareness about Oppenheimer funds, including travel and lodging expenditures. However, the Manager does not consider a financial intermediary's sale of shares of the Fund or other Oppenheimer funds when selecting brokers or dealers to effect portfolio transactions for the funds.
Various factors are used to determine whether to make revenue sharing payments. Possible considerations include, without limitation, the types of services provided by the intermediary, sales of Fund shares, the redemption rates on accounts of clients of the intermediary or overall asset levels of Oppenheimer funds held for or by clients of the intermediary, the willingness of the intermediary to allow the Distributor to provide educational and training support for the intermediary's
sales personnel relating to the Oppenheimer funds, the availability of the Oppenheimer funds on the intermediary's sales system, as well as the overall quality of the services provided by the intermediary and the Manager or Distributor's relationship with the intermediary. The Manager and Distributor have adopted guidelines for assessing and implementing each prospective revenue sharing arrangement. To the extent that financial intermediaries receiving distribution-related payments from
the Manager or Distributor sell more shares of the Oppenheimer funds or retain more shares of the funds in their client accounts, the Manager and Distributor benefit from the incremental management and other fees they receive with respect to those assets.
Payments may also be made by the Manager, the Distributor or the Transfer Agent to financial intermediaries to compensate or reimburse them for administrative or other client services provided such as sub-transfer agency services for shareholders or retirement plan participants, omnibus accounting or sub-accounting, participation in networking arrangements, account set-up, recordkeeping and other shareholder services. Payments may also be made for administrative services related to the
distribution of Fund shares through the intermediary. Firms that may receive servicing fees include retirement plan administrators, qualified tuition program sponsors, banks and trust companies, and others. These fees may be used by the service provider to offset or reduce fees that would otherwise be paid directly to them by certain account holders, such as retirement plans.
The Statement of Additional Information contains more information about revenue sharing and service payments made by the Manager or the Distributor. Your broker, dealer or other financial intermediary may charge you fees or commissions in addition to those disclosed in this prospectus. You should ask your financial intermediary for details about any such payments it receives from the Manager or the Distributor and their affiliates, or any other fees or expenses it
charges.
Dividends, Capital Gains and Taxes
DIVIDENDS. The Fund intends to declare dividends separately for each class of shares from net tax-exempt income and/or net taxable investment income each regular business day and to pay those dividends monthly. Daily dividends will not be declared or paid on newly-purchased shares until Federal Funds are available to the Fund from the purchase payment for such shares.
The Fund attempts to pay dividends on Class A shares at a constant level. There is no assurance that it will be able to do so. The Board of Trustees may change the targeted dividend level at any time, without prior notice to shareholders. The amount of those dividends and any other distributions paid on other classes of shares may vary over time, depending on market conditions, the composition of the Fund's portfolio, and expenses borne by the particular class of shares. Dividends and other distributions paid on Class A and Class Y shares will generally be higher than dividends for Class B and Class C shares, which normally have higher expenses than Class A or Class Y. The Fund cannot guarantee that it will pay any dividends or other distributions.
CAPITAL GAINS. Although the Fund does not seek capital gains, it may realize capital gains on the sale of portfolio securities. If it does, it may make distributions out of any net short-term or long-term capital gains annually. The Fund may also make supplemental distributions of ordinary income and exempt-interest dividends and capital gains following the end of its fiscal year. There can be no assurance that the Fund will pay any capital gains distributions in a particular year. Long-term capital gains will be separately identified in the tax information the Fund sends you after the end of the calendar year.
Options for Receiving Dividends and Distributions. When you open your Fund account, you can specify on your application how you want to receive distributions of dividends and capital gains. To change that option, you must notify the Transfer Agent. There are four payment options available:
TAXES. Dividends paid from net investment income earned by the Fund on tax-exempt municipal securities will be excludable from gross income for federal income tax purposes. All or a portion of the dividends paid by the Fund that are derived from interest paid on certain "private activity bonds" may be an item of tax preference if you are subject to the federal alternative minimum tax. The portion of the Fund's exempt-interest dividends that was a tax preference item for the most recent calendar year is available on the OppenheimerFunds website at www.oppenheimerfunds.com/redir/tax_table_amt.jsp. The tax preference amount will vary from year to year.
Dividends and capital gains distributions may be subject to federal, state or local taxes. Any short-term capital gain distributions are taxable to you as ordinary income. Any long-term capital gain distributions are taxable to you as long-term capital gains, no matter how long you have owned shares in the Fund. The Fund may derive gains in part from municipal obligations the Fund purchased below their principal or face values. All, or a portion of these gains may be taxable to you as ordinary income rather than capital gains. Whether you reinvest your distributions in additional shares or take them in cash, the tax treatment is the same.
After the end of each calendar year the Fund will send you and the Internal Revenue Service statements showing the amount of any taxable distributions you received in the previous year and will separately identify any portion of these distributions that qualify for taxation as long-term capital gains or for any other special tax treatment.
If you are neither a lawful permanent resident nor a citizen of the United States, or if you are a foreign entity, the Fund's ordinary income dividends (which include distributions of net short-term capital gain) generally will be subject to a 30% U.S. withholding tax, unless a lower rate applies under an income tax treaty. For taxable years of the Fund beginning before 2012, certain distributions that may be reported by the Fund as arising from Qualified Interest Income and Qualified Short-term Capital Gains (if applicable) and paid to a foreign shareholder may be eligible for an exemption from U.S. withholding tax. To the extent the Fund's distributions are derived from dividends, they will not be eligible for this exemption.
By law, your dividends and redemption proceeds will be subject to a backup withholding tax if you are not a corporation and have not provided a taxpayer identification number or social security number or if the number you have provided is incorrect.
Avoid "Buying a Distribution." If you buy shares on or just before the ex-dividend date, or just before the Fund declares a capital gains distribution, you will pay the full price for the shares, and then receive a portion of the price back as a taxable dividend or capital gain.
Remember, There May be Taxes on Transactions. Because the Fund's share prices fluctuate, you may have a capital gain or loss when you sell or exchange your shares. A capital gain or loss is the difference between the price you paid for the shares and the price you receive when you sell or exchange them. Any capital gain is subject to capital gains tax.
Returns of Capital Can Occur. In certain cases, distributions made by the Fund may be considered a non-taxable return of capital to shareholders, resulting in a reduction in the basis in their shares. If this occurs, the Fund will notify you.
This information is only a summary of certain federal income tax information about your investment. You are encouraged to consult your tax adviser about the effect of an investment in the Fund on your particular tax situation and about any changes to the Internal Revenue Code that may occur from time to time. Additional information about the tax effects of investing in the Fund is contained in the Statement of Additional Information.
Qualification as a Regulated Investment Company. The Fund intends to qualify each year as a "regulated investment company" under the Internal Revenue Code, by satisfying certain income, asset diversification and income distribution requirements, but it reserves the right not to qualify. The Fund qualified during its most recent fiscal year. The Fund, as a regulated investment company, will not be subject to federal income taxes on any of its income, provided that it satisfies certain income, diversification and distribution requirements.
Other Taxability Risk Considerations. It is possible that, because of events occurring after the date of its issuance, a municipal security owned by the Fund will be determined to pay interest that is includable in gross income for purposes of the federal income tax, and that determination could be retroactive to the date of issuance. Such a determination may cause a portion of prior distributions to shareholders to be taxable to shareholders in the year of receipt.
Legislation affecting tax-exempt municipal securities is often considered by the United States Congress and legislation affecting the exemption of interest or other income thereon for purposes of taxation by a state may be considered by the state's legislature. Court proceedings may also be filed, the outcome of which could modify the tax treatment of a state's municipal securities. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of a municipal security will not have an adverse effect on the tax status of interest or other income or the market value of that municipal security. Please consult your tax adviser regarding pending or proposed federal and state tax legislation, court proceedings and other tax considerations.
The Financial Highlights Table is presented to help you understand the Fund's financial performance for the past five fiscal years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by KPMG LLP, the Fund's independent registered public accounting firm, whose report, along with the Fund's financial statements, is included in the Statement of Additional Information, which is available upon request.
FINANCIAL HIGHLIGHTS |
Class A Year Ended December 31, |
2010 |
2009 |
2008 |
2007 |
2006 |
|||||
Per Share Operating Data |
||||||||||
Net asset value, beginning of period |
$15.70 |
$11.54 |
$17.67 |
$18.82 |
$18.28 |
|||||
Income (loss) from investment operations: |
||||||||||
Net investment income1 |
.98 |
.98 |
.94 |
.88 |
.93 |
|||||
Net realized and unrealized gain (loss) |
(.38) |
4.09 |
(6.19) |
(1.17) |
.55 |
|||||
Total from investment operations |
.60 |
5.07 |
(5.25) |
(.29) |
1.48 |
|||||
Dividends and/or distributions to shareholders: |
||||||||||
Dividends from net investment income |
(.97) |
(.91) |
(.88) |
(.86) |
(.94) |
|||||
Net asset value, end of period |
$15.33 |
$15.70 |
$11.54 |
$17.67 |
$18.82 |
|||||
Total Return, at Net Asset Value2 |
3.63% |
45.07% |
(30.84)% |
(1.59)% |
8.33% |
|||||
Ratios/Supplemental Data |
||||||||||
Net assets, end of period (in millions) |
$6,295 |
$6,913 |
$5,158 |
$8,541 |
$7,979 |
|||||
Average net assets (in millions) |
$7,013 |
$6,360 |
$7,688 |
$8,598 |
$6,836 |
|||||
Ratios to average net assets:3 |
||||||||||
Net investment income |
6.01% |
6.96% |
5.96% |
4.78% |
5.05% |
|||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings |
0.67% |
0.70% |
0.70% |
0.67% |
0.68% |
|||||
Interest and fees from borrowings |
0.08% |
0.45% |
0.22% |
0.05% |
0.04% |
|||||
Interest and fees on short-term floating rate notes issued4 |
0.18% |
0.27% |
0.68% |
0.71% |
0.62% |
|||||
Total expenses |
0.93% |
1.42% |
1.60% |
1.43% |
1.34% |
|||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
0.93% |
1.42% |
1.60% |
1.43% |
1.34% |
|||||
Portfolio turnover rate |
7% |
8% |
23% |
28% |
17% |
1. Per share amounts calculated based on the average shares outstanding during the period. |
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. |
4. Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
Class B Year Ended December 31, |
2010 |
2009 |
2008 |
2007 |
2006 |
|||||
Per Share Operating Data |
||||||||||
Net asset value, beginning of period |
$15.68 |
$11.53 |
$17.66 |
$18.80 |
$18.26 |
|||||
Income (loss) from investment operations: |
||||||||||
Net investment income1 |
.82 |
.85 |
.80 |
.72 |
.78 |
|||||
Net realized and unrealized gain (loss) |
(.37) |
4.07 |
(6.19) |
(1.16) |
.54 |
|||||
Total from investment operations |
.45 |
4.92 |
(5.39) |
(.44) |
1.32 |
|||||
Dividends and/or distributions to shareholders: |
||||||||||
Dividends from net investment income |
(.82) |
(.77) |
(.74) |
(.70) |
(.78) |
|||||
Net asset value, end of period |
$15.31 |
$15.68 |
$11.53 |
$17.66 |
$18.80 |
|||||
Total Return, at Net Asset Value2 |
2.67% |
43.66% |
(31.50)% |
(2.41)% |
7.39% |
|||||
Ratios/Supplemental Data |
||||||||||
Net assets, end of period (in millions) |
$181 |
$246 |
$237 |
$591 |
$906 |
|||||
Average net assets (in millions) |
$220 |
$248 |
$424 |
$745 |
$925 |
|||||
Ratios to average net assets:3 |
||||||||||
Net investment income |
5.07% |
6.05% |
4.99% |
3.88% |
4.20% |
|||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings |
1.62% |
1.67% |
1.58% |
1.57% |
1.56% |
|||||
Interest and fees from borrowings |
0.08% |
0.45% |
0.22% |
0.05% |
0.04% |
|||||
Interest and fees on short-term floating rate notes issued4 |
0.18% |
0.27% |
0.68% |
0.71% |
0.62% |
|||||
Total expenses |
1.88% |
2.39% |
2.48% |
2.33% |
2.22% |
|||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
1.88% |
2.39% |
2.48% |
2.33% |
2.22% |
|||||
Portfolio turnover rate |
7% |
8% |
23% |
28% |
17% |
1. Per share amounts calculated based on the average shares outstanding during the period. |
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. |
4. Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
Class C Year Ended December 31, |
2010 |
2009 |
2008 |
2007 |
2006 |
|||||
Per Share Operating Data |
||||||||||
Net asset value, beginning of period |
$15.67 |
$11.52 |
$17.65 |
$18.79 |
$18.25 |
|||||
Income (loss) from investment operations: |
||||||||||
Net investment income1 |
.83 |
.86 |
.80 |
.71 |
.76 |
|||||
Net realized and unrealized gain (loss) |
(.37) |
4.07 |
(6.19) |
(1.15) |
.56 |
|||||
Total from investment operations |
.46 |
4.93 |
(5.39) |
(.44) |
1.32 |
|||||
Dividends and/or distributions to shareholders: |
||||||||||
Dividends from net investment income |
(.83) |
(.78) |
(.74) |
(.70) |
(.78) |
|||||
Net asset value, end of period |
$15.30 |
$15.67 |
$11.52 |
$17.65 |
$18.79 |
|||||
Total Return, at Net Asset Value2 |
2.75% |
43.82% |
(31.49)% |
(2.39)% |
7.40% |
|||||
Ratios/Supplemental Data |
||||||||||
Net assets, end of period (in millions) |
$1,120 |
$1,250 |
$ 905 |
$1,514 |
$1,256 |
|||||
Average net assets (in millions) |
$1,271 |
$1,131 |
$1,350 |
$1,492 |
$ 956 |
|||||
Ratios to average net assets:3 |
||||||||||
Net investment income |
5.14% |
6.09% |
5.09% |
3.90% |
4.15% |
|||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings |
1.54% |
1.57% |
1.57% |
1.54% |
1.54% |
|||||
Interest and fees from borrowings |
0.08% |
0.45% |
0.22% |
0.05% |
0.04% |
|||||
Interest and fees on short-term floating rate notes issued4 |
0.18% |
0.27% |
0.68% |
0.71% |
0.62% |
|||||
Total expenses |
1.80% |
2.29% |
2.47% |
2.30% |
2.20% |
|||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
1.80% |
2.29% |
2.47% |
2.30% |
2.20% |
|||||
Portfolio turnover rate |
7% |
8% |
23% |
28% |
17% |
1. Per share amounts calculated based on the average shares outstanding during the period. |
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. |
4. Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
Class Y Year Ended December 31, |
2010 |
2009 |
2008 |
2007 |
2006 |
|||||
Per Share Operating Data |
||||||||||
Net asset value, beginning of period |
$15.69 |
$11.54 |
$17.67 |
$18.82 |
$18.28 |
|||||
Income (loss) from investment operations: |
||||||||||
Net investment income1 |
.99 |
1.00 |
.96 |
.89 |
.95 |
|||||
Net realized and unrealized gain (loss) |
(.36) |
4.08 |
(6.19) |
(1.15) |
.55 |
|||||
Total from investment operations |
.63 |
5.08 |
(5.23) |
(.26) |
1.50 |
|||||
Dividends and/or distributions to shareholders: |
||||||||||
Dividends from net investment income |
(.99) |
(.93) |
(.90) |
(.89) |
(.96) |
|||||
Net asset value, end of period |
$15.33 |
$15.69 |
$11.54 |
$17.67 |
$18.82 |
|||||
Total Return, at Net Asset Value2 |
3.84% |
45.18% |
(30.74)% |
(1.44)% |
8.45% |
|||||
Ratios/Supplemental Data |
||||||||||
Net assets, end of period (in millions) |
$101 |
$65 |
$44 |
$56 |
$22 |
|||||
Average net assets (in millions) |
$100 |
$57 |
$61 |
$44 |
$16 |
|||||
Ratios to average net assets:3 |
||||||||||
Net investment income |
6.14% |
7.09% |
6.14% |
4.91% |
5.14% |
|||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings |
0.54% |
0.55% |
0.57% |
0.51% |
0.56% |
|||||
Interest and fees from borrowings |
0.08% |
0.45% |
0.22% |
0.05% |
0.04% |
|||||
Interest and fees on short-term floating rate notes issued4 |
0.18% |
0.27% |
0.68% |
0.71% |
0.62% |
|||||
Total expenses |
0.80% |
1.27% |
1.47% |
1.27% |
1.22% |
|||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
0.80% |
1.27% |
1.47% |
1.27% |
1.22% |
|||||
Portfolio turnover rate |
7% |
8% |
23% |
28% |
17% |
1. Per share amounts calculated based on the average shares outstanding during the period. |
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. |
4. Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
INFORMATION AND SERVICES
STATEMENT OF ADDITIONAL INFORMATION. This document includes additional information about the Fund's investment policies, risks, and operations. It is incorporated by reference into this prospectus (it is legally part of this prospectus).
ANNUAL AND SEMI-ANNUAL REPORTS. The Fund's Annual and Semi-Annual Reports provide additional information about the Fund's investments and performance. The Annual Report includes a discussion of market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.
You can request the above documents, the notice explaining the Fund's privacy policy, and other information about the Fund, without charge, by:
Telephone: |
Call OppenheimerFunds Services toll-free: |
|
Mail: |
Use the following address for regular mail: |
|
Use the following address for courier or express mail: |
||
Internet: |
You may request documents, and read or download certain documents at www.oppenheimerfunds.com |
Information about the Fund including the Statement of Additional Information can 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 the SEC at 1.202.551.8090. Reports and other information about the Fund are available on the EDGAR database on the SEC's website at www.sec.gov. Copies may be obtained after payment of a duplicating fee by electronic request at the SEC's e-mail address: publicinfo@sec.gov or by writing to the SEC's Public Reference Section, Washington, D.C. 20549-1520.
No one has been authorized to provide any information about the Fund or to make any representations about the Fund other than what is contained in this prospectus. This prospectus is not an offer to sell shares of the Fund, nor a solicitation of an offer to buy shares of the Fund, to any person in any state or other jurisdiction where it is unlawful to make such an offer.
SP0365.001.0311 |
Rochester Fund Municipals |
NYSE Ticker Symbols |
|
Class A |
RMUNX |
Class B |
RMUBX |
Class C |
RMUCX |
Class Y |
RMUYX |
March 30, 2011 |
Statement of Additional Information |
This document contains additional information about the Fund and supplements information in the Fund's prospectus dated March 30, 2011 (the "Prospectus"). |
This Statement of Additional Information ("SAI") is not a Prospectus. It should be read together with the Prospectus, which may be obtained by writing to the Fund's transfer agent, OppenheimerFunds Services, at P.O. Box 5270, Denver, Colorado 80217, or by calling the transfer agent at the toll-free number shown below, or by downloading it from the OppenheimerFunds website at www.oppenheimerfunds.com. |
Rochester Fund Municipals |
6803 South Tucson Way, Centennial, Colorado 80112-3924 1.800.CALL OPP (225.5677) |
Table of contents | |
Additional Information About the Fund's Investment Policies and Risks |
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To Summary Prospectus
Additional Information About the Fund's Investment Policies and Risks
The investment objective, the principal investment policies and the principal risks of the Fund are described in the Prospectus. This SAI contains supplemental information about those policies and risks and the types of securities that the Fund's investment adviser, OppenheimerFunds, Inc. (the "Manager"), can select for the Fund. Additional information is also provided about the strategies that the Fund may use to try to achieve its investment objective.
The composition of the Fund's portfolio and the techniques and strategies that the Fund uses in selecting portfolio securities may vary over time. The Fund is not required to use all of the investment techniques and strategies described below in seeking its investment objective. It may use some of the investment techniques and strategies only at some times or it may not use them at all.
The municipal securities that the Fund holds to maturity are redeemable by the security's issuer at their full principal value plus any accrued interest. During the time they are held in the Fund's portfolio, however, the values of those securities may be affected by changes in general interest rates and other factors. The current values of debt securities vary inversely with changes in prevailing interest rates, meaning that after a security is purchased if interest rates increase, the security will normally decline in value and if interest rates decrease, normally its value would increase. Those changes in value generally will not result in realized gains or losses unless the Fund sells a security prior to its maturity. However, if the Fund disposes of a security prior to its maturity, the Fund could realize a capital gain or loss on the sale.
There are variations in the credit quality of municipal securities, both within a particular rating category and between categories. These variations depend on numerous factors. The factors affecting the yields of municipal securities include: general conditions in the municipal securities market, the size of a particular offering, the maturity of the obligation and the rating of the issue (if any).
Unless the Prospectus or SAI states that an investment percentage restriction applies on an ongoing basis, it applies only at the time the Fund makes an investment (except for borrowing and investments in illiquid securities). That means the Fund does not have to buy or sell securities solely to meet percentage limits if those limits were exceeded because the value of the investment changed in proportion to the size of the Fund.
The Fund's Main Investment Policies
Municipal Securities. The types of municipal securities in which the Fund may invest are described in the Prospectus under "Principal Investment Strategies" and "About the Fund's Investments." As a fundamental policy, under normal market conditions, the Fund invests at least 80% of its net assets (plus borrowings for investment purposes) in tax-exempt securities, including securities subject to alternative minimum tax. Municipal securities are generally classified as general obligation bonds, revenue bonds and notes. A discussion of the general characteristics of these principal types of municipal securities follows below.
Municipal Bonds. Long-term municipal securities which have a maturity of more than one year (when issued) are classified as "municipal bonds." The principal classifications of long-term municipal bonds are "general obligation" bonds and "revenue" bonds (including "private activity" bonds). They may have fixed, variable or floating rates of interest or may be "zero-coupon" bonds, as described below.
Some bonds may be "callable," allowing the issuer to redeem them before their maturity date. To protect bondholders, callable bonds may be issued with provisions that prevent them from being called for a period of time. Typically, that is 5 to 10 years from the issuance date. When interest rates decline, if the call protection on a bond has expired, it is more likely that the issuer may call the bond. If that occurs, the Fund might have to reinvest the proceeds of the called bond in investments that pay a lower rate of return, which could reduce the Fund's yield.
General Obligation Bonds. The basic security behind general obligation bonds is the issuer's pledge of its full faith and credit and taxing power, if any, for the repayment of principal and the payment of interest. Issuers of general obligation bonds include states, counties, cities, towns, and regional districts. The proceeds of these obligations are used to fund a wide range of public projects, including construction or improvement of schools, highways and roads, and water and sewer systems. The rate of taxes that can be levied for the payment of debt service on these bonds may be limited or unlimited. Additionally, there may be limits on the rate or amount of special assessments that can be levied to meet these obligations.
Revenue Bonds. The principal security for a revenue bond is generally the net revenues derived from a particular facility, group of facilities, or, in some cases, the proceeds of a special excise tax or other specific revenue source, such as a state's or local government's proportionate share of the tobacco Master Settlement Agreement ("MSA") (as described in the section titled "Tobacco Related Bonds"). Revenue bonds are issued to finance a wide variety of capital projects. Examples include electric, gas, water and sewer systems; highways, bridges, and tunnels; port and airport facilities; colleges and universities; and hospitals.
Although the principal security for revenue bonds may vary from bond to bond, many provide additional security in the form of a debt service reserve fund that may be used to make principal and interest payments on the issuer's obligations. Housing finance authorities have a wide range of security, including partially or fully insured mortgages, rent subsidized and/or collateralized mortgages, and/or the net revenues from housing or other public projects. Some authorities provide further security in the form of a state's ability (without obligation) to make up deficiencies in the debt service reserve fund.
Private Activity Bonds. The Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), includes rules governing tax-exemption for interest paid on certain types of municipal securities known as "private activity bonds" (referred to as "industrial development bonds" under pre-1986 law). The proceeds from private activity bonds are used to finance various non-governmental privately owned and/or operated facilities. Under the Internal Revenue Code, interest on private activity bonds can be excluded from gross income for federal income tax purposes if (i) the financed activities fall into one of seven categories of "qualified private activity bonds," consisting of mortgage bonds, veterans mortgage bonds, small issue bonds, student loan bonds, redevelopment bonds, "exempt facility bonds" and "501(c)(3) bonds," and (ii) certain tests are met. The types of facilities that may be financed with exempt facility bonds include airports, docks and wharves, water furnishing facilities, sewage facilities, solid waste disposal facilities, qualified residential rental projects, hazardous waste facilities and high speed intercity rail facilities. The types of facilities that may be financed with 501(c)(3) bonds include hospitals and educational facilities that are owned by 501(c)(3) tax-exempt organizations. The payment of the principal and interest on such qualified private activity bonds is dependant solely on the ability of the facility's user to meet its financial obligations, generally from the revenues derived from the operation of the financed facility, and the pledge, if any, of real and personal property financed by the bond as security for those payments.
Whether a municipal security is a private activity bond (the interest on which is taxable unless it is a qualified private activity bond) depends on whether (i) more than a certain percentage (generally 10%) of (a) the proceeds of the security are used in a trade or business carried on by a non-governmental person and (b) the payment of principal or interest on the security is directly or indirectly derived from such private use, or is secured by privately used property or payments in respect of such property, or (ii) more than the lesser of 5% of the issue or $5 million is used to make or finance loans to non-governmental persons.
Under Internal Revenue Code Section 147(a), certain types of private activity bonds that would otherwise be qualified tax-exempt private activity bonds will not be qualified for any period during which the bond is held by a person who is a "substantial user" of the facilities financed by the bond, or a "related person" of such a substantial user. Generally a "substantial user" is a non-exempt person who regularly uses part of a facility in a trade or business.
Therefore, certain municipal securities could lose their tax-exempt status retroactively if the issuer or user fails to meet certain continuing requirements regarding the use and operation of the bond-financed facilities and the use and expenditure of the proceeds of such securities for the entire period during which the securities are outstanding. The Fund makes no independent investigation into the use of such facilities or the expenditure of such proceeds. If the Fund should hold a bond that loses its tax-exempt status retroactively, there might be an adjustment to the tax-exempt income previously distributed to shareholders.
Tax-exempt interest on certain qualified private activity bonds may nonetheless be treated as a "tax preference" item subject to the alternative minimum tax (the "AMT"). If such qualified private activity bonds are held by the Fund, a proportionate share of the exempt-interest dividends paid by the Fund would constitute an item of tax preference to shareholders that are subject to the AMT.
Limitations on the amount of private activity bonds that each state may issue may reduce the supply of such bonds. The value of the Fund's portfolio could be affected by these limitations if they reduce the availability of such bonds.
Municipal Notes. Municipal securities that have a maturity of less than one year (when the security is issued) are generally known as "municipal notes." Municipal notes generally are used to provide for short-term working capital needs. Some of the types of municipal notes the Fund can invest in are described below.
Tax Anticipation Notes. These are issued to finance working capital needs of municipalities. Generally, they are issued in anticipation of various seasonal tax revenue, such as income, sales, use or other business taxes, and are payable from these specific future taxes.
Revenue Anticipation Notes. These are notes issued in expectation of receipt of other types of revenue, such as federal revenues available under federal revenue-sharing programs.
Bond Anticipation Notes. Bond anticipation notes are issued to provide interim financing until long-term financing can be arranged. The long-term bonds that are issued typically also provide the money for the repayment of the notes.
Construction Loan Notes. These are sold to provide project construction financing until permanent financing can be secured. After successful completion and acceptance of the project, it may receive permanent financing through public agencies, such as the Federal Housing Administration.
Tax-Exempt Commercial Paper. This type of short-term obligation (usually having a maturity of 270 days or less) is issued by a municipality to meet current working capital needs.
Auction Rate Securities. Auction rate securities are municipal debt instruments with long-term nominal maturities for which the interest rate is reset at specific shorter frequencies (typically every 7-35 days) through a "dutch" auction process. A dutch auction is a competitive bidding process used to determine rates on each auction date. In a dutch auction, a broker-dealer submits bids, on behalf of current and prospective investors, to the auction agent. The winning bid rate is the rate at which the auction "clears," meaning the lowest possible interest rate at which all the securities can be sold at par. This "clearing rate" is paid on the entire issue for the upcoming period and includes current holders of the auction rate securities. Investors who bid a minimum rate above the clearing rate receive no securities, while those whose minimum bid rates were at or below the clearing rate receive the clearing rate f or the next period.
While the auction rate process is designed to permit the holder to sell the auction rate securities in an auction at par value at specified intervals, there is the risk that an auction will fail due to insufficient demand for the securities. Auction rate securities may be subject to changes in interest rates, including decreased interest rates. Failed auctions may impair the liquidity of auction rate securities.
Municipal Lease Obligations. The Fund's investments in municipal lease obligations may be through certificates of participation that are offered to investors by public entities. Municipal leases may take the form of a lease or an installment purchase contract issued by a state or local government authority to obtain funds to acquire a wide variety of equipment and facilities.
Some municipal lease securities may be deemed to be "illiquid" securities. The Manager may determine that certain municipal leases are liquid under specific guidelines that require the Manager to evaluate:
While the Fund holds such securities, the Manager will also evaluate the likelihood of a continuing market for these securities and their credit quality.
Municipal leases have special risk considerations. Although lease obligations do not constitute general obligations of the municipality for which the municipality's taxing power is pledged, a lease obligation is ordinarily backed by the municipality's covenant to budget for, appropriate and make the payments due under the lease obligation. However, certain lease obligations contain "non-appropriation" clauses which provide that the municipality has no obligation to make lease or installment purchase payments in future years unless money is appropriated for that purpose on a yearly basis. While the obligation might be secured by the lease, it might be difficult to dispose of that property in case of a default.
Projects financed with certificates of participation generally are not subject to state constitutional debt limitations or other statutory requirements that may apply to other municipal securities. Payments by the public entity on the obligation underlying the certificates are derived from available revenue sources. That revenue might be diverted to the funding of other municipal service projects. Payments of interest and/or principal with respect to the certificates are not guaranteed and do not constitute an obligation of a state or any of its political subdivisions.
Municipal leases may also be subject to "abatement risk." The leases underlying certain municipal lease obligations may state that lease payments are subject to partial or full abatement. That abatement might occur, for example, if material damage to or destruction of the leased property interferes with the lessee's use of the property. However, in some cases that risk might be reduced by insurance covering the leased property, or by the use of credit enhancements such as letters of credit to back lease payments, or perhaps by the lessee's maintenance of reserve monies for lease payments.
In addition to the risk of "non-appropriation," municipal lease securities do not have as highly liquid a market as conventional municipal bonds. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment of interest or repayment of principal by the issuer. The ability of issuers of municipal leases to make timely lease payments may be adversely affected in general economic downturns and as relative governmental cost burdens are reallocated among federal, state and local governmental units. A default in payment of income would result in a reduction of income to the Fund. It could also result in a reduction in the value of the municipal lease and that, as well as a default in repayment of principal, could result in a decrease in the net asset value of the Fund.
TOBACCO RELATED BONDS. The Fund may invest in two types of tobacco related bonds: (i) tobacco settlement revenue bonds, for which payments of interest and principal are made solely from a state's interest in the MSA described below, and (ii) tobacco bonds subject to a state's appropriation pledge, for which payments may come from both the MSA revenue and the applicable state's appropriation pledge.
Tobacco Settlement Revenue Bonds. The Fund may invest up to 25% (measured at the time of purchase) of its total assets in tobacco settlement revenue bonds. Tobacco settlement revenue bonds are secured by an issuing state's proportionate share in the MSA. The MSA is an agreement reached out of court in November 1998 between 46 states and six other U.S. jurisdictions (including Puerto Rico and Guam) and the four largest (now three) U.S. tobacco manufacturers (Philip Morris, RJ Reynolds, Brown & Williamson (merged with RJ Reynolds in 2004), and Lorillard). Subsequently, a number of smaller tobacco manufacturers signed on to the MSA. The MSA provides for payments annually by the manufacturers to the states and jurisdictions in perpetuity, in exchange for releasing all claims against the manufacturers and a pledge of no further litigation. The MSA established a base payment schedule and a formula for adjusting payments each year. Tobacco manufacturers pay into a master escrow trust based on their market share and each state receives a fixed percentage of the payment as set forth in the MSA.
A number of states have securitized the future flow of those payments by selling bonds pursuant to indentures, some through distinct governmental entities created for such purpose. The bonds are backed by the future revenue flow that is used for principal and interest payments on the bonds. Annual payments on the bonds, and thus the risk to the Fund, are highly dependent on the receipt of future settlement payments by the state or its governmental entity, as well as other factors. The actual amount of future settlement payments is dependent on many factors including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. As a result, payments made by tobacco manufacturers could be reduced if the decrease in tobacco consumption is significantly greater than the forecasted decline.
On June 22, 2009, President Obama signed into law the "Family Smoking Prevention and Tobacco Control Act" which extends the authority of the U.S. Food and Drug Administration to encompass the regulation of tobacco products. Among other things, the legislation authorizes the FDA to adopt product standards for tobacco products, restrict advertising of tobacco products, and impose stricter warning labels. FDA regulation of tobacco products could result in greater decreases in tobacco consumption than originally forecasted. On August 31, 2009, a number of tobacco manufacturers filed suit in federal court in Kentucky alleging that certain of the provisions of the FDA Tobacco Act restricting the advertising and marketing of tobacco products are inconsistent with the freedom of speech guarantees of the First Amendment of the United States Constitution. The suit does not challenge Congress' decision to giv e the FDA regulatory authority over tobacco products or the vast majority of the provisions of the law.
Because tobacco settlement bonds are backed by payments from the tobacco manufacturers, and generally not by the credit of the state or local government issuing the bonds, their creditworthiness depends on the ability of tobacco manufacturers to meet their obligations. A market share loss by the MSA companies to non-MSA participating tobacco manufacturers could also cause a downward adjustment in the payment amounts. A participating manufacturer filing for bankruptcy also could cause delays or reductions in bond payments, which could affect the Fund's net asset value.
The MSA and tobacco manufacturers have been and continue to be subject to various legal claims. An adverse outcome to any litigation matters relating to the MSA or affecting tobacco manufacturers could adversely affect the payment streams associated with the MSA or cause delays or reductions in bond payments by tobacco manufacturers. The MSA itself has been subject to legal challenges and has, to date, withstood those challenges.
Tobacco Subject to Appropriation (STA) Bonds. In addition to the tobacco settlement bonds discussed above, the Fund also may invest in tobacco related bonds that are subject to a state's appropriation pledge ("STA Tobacco Bonds"). STA Tobacco Bonds rely on both the revenue source from the MSA and a state appropriation pledge.
These STA Tobacco Bonds are part of a larger category of municipal bonds that are subject to state appropriation. Although specific provisions may vary among states, "subject to appropriation bonds" (also referred to as "appropriation debt") are typically payable from two distinct sources: (i) a dedicated revenue source such as a municipal enterprise, a special tax or, in the case of tobacco bonds, the MSA funds, and (ii) the issuer's general funds. Appropriation debt differs from a state's general obligation debt in that general obligation debt is backed by the state's full faith, credit and taxing power, while appropriation debt requires the state to pass a specific periodic appropriation to pay interest and/or principal on the bonds as the payments come due. The appropriation is usually made annually. While STA Tobacco Bonds offer an enhanced credit support feature, that feature is generally not an uncondi tional guarantee of payment by a state and states generally do not pledge the full faith, credit or taxing power of the state. The Fund considers the STA Tobacco Bonds to be "municipal securities" for purposes of its concentration policies.
Litigation Challenging the MSA. The participating manufacturers and states in the MSA are subject to several pending lawsuits challenging the MSA and/or related state legislation or statutes adopted by the states to implement the MSA (referred to herein as the "MSA-related legislation"). One or more of the lawsuits allege, among other things, that the MSA and/or the states' MSA-related legislation are void or unenforceable under the Commerce Clause and certain other provisions of the U.S. Constitution, the federal antitrust laws, federal civil rights laws, state constitutions, consumer protection laws and unfair competition laws.
To date, challenges to the MSA or the states' MSA-related legislation have not been ultimately successful, although several such challenges have survived initial appellate review of motions to dismiss or have proceeded to a stage of litigation where the ultimate outcome may be determined by, among other things, findings of fact based on extrinsic evidence as to the operation and impact of the MSA and the states' MSA-related legislation.
The MSA and states' MSA-related legislation may also continue to be challenged in the future. A determination that the MSA or states' MSA-related legislation is void or unenforceable would have a material adverse effect on the payments made by the participating manufacturers under the MSA.
Litigation Seeking Monetary Relief from Tobacco Industry Participants. The tobacco industry has been the target of litigation for many years. Both individual and class action lawsuits have been brought by or on behalf of smokers alleging that smoking has been injurious to their health, and by non-smokers alleging harm from environmental tobacco smoke, also known as "secondhand smoke." Plaintiffs seek various forms of relief, including compensatory and punitive damages aggregating billions of dollars, treble/multiple damages and other statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, legal fees, and injunctive and equitable relief.
The MSA does not release participating manufacturers from liability in either individual or class action cases. Healthcare cost recovery cases have also been brought by governmental and non-governmental healthcare providers seeking, among other things, reimbursement for healthcare expenditures incurred in connection with the treatment of medical conditions allegedly caused by smoking. The participating manufacturers are also exposed to liability in these cases, because the MSA only settled healthcare cost recovery claims of the participating states. Litigation has also been brought against certain participating manufacturers and their affiliates in foreign countries.
The ultimate outcome of any pending or future lawsuit is uncertain. Verdicts of substantial magnitude that are enforceable as to one or more participating manufacturers, if they occur, could encourage commencement of additional litigation, or could negatively affect perceptions of potential triers of fact with respect to the tobacco industry, possibly to the detriment of pending litigation. An unfavorable outcome or settlement or one or more adverse judgments could result in a decision by the affected participating manufacturers to substantially increase cigarette prices, thereby reducing cigarette consumption beyond the forecasts under the MSA. In addition, the financial condition of any or all of the participating manufacturer defendants could be materially and adversely affected by the ultimate outcome of pending litigation, including bonding and litigation costs or a verdict or verdicts awarding substanti al compensatory or punitive damages. Depending upon the magnitude of any such negative financial impact (and irrespective of whether the participating manufacturer is thereby rendered insolvent), an adverse outcome in one or more of the lawsuits could substantially impair the affected participating manufacturer's ability to make payments under the MSA.
Credit Ratings of Municipal Securities. Ratings by ratings organizations such as Moody's Investors Service, Inc. ("Moody's"), Standard & Poor's Ratings Services ("S&P"), and Fitch, Inc. ("Fitch") represent the respective rating agency's opinions of the credit quality of the municipal securities they undertake to rate. However, their ratings are general opinions and are not guarantees of quality. Municipal securities that have the same maturity, coupon and rating may have different yields, while other municipal securities that have the same maturity and coupon but different ratings may have the same yield.
Below-investment-grade securities (also referred to as "junk bonds") may have a higher yield than securities rated in the higher rating categories. In addition to having a greater risk of default than higher-grade securities, there may be less of a market for these securities. As a result they may be harder to sell at an acceptable price. The additional risks mean that the Fund may not receive the anticipated level of income from these securities, and the Fund's net asset value may be affected by declines in the value of lower-grade securities.
After the Fund buys a municipal security, the security may cease to be rated or its rating may be reduced. Neither event requires the Fund to sell the security, but the Manager will consider such events in determining whether the Fund should continue to hold the security. To the extent that ratings given by Moody's, S&P, or Fitch change as a result of changes in those rating organizations or their rating systems, the Fund will attempt to use similar ratings as standards for investments in accordance with the Fund's investment policies.
The Fund may buy municipal securities that are "pre-refunded." The issuer's obligation to repay the principal value of the security is generally collateralized with U.S. Government securities placed in an escrow account. This causes the pre-refunded security to have essentially the same risks of default as a AAA-rated security.
A list of the rating categories of Moody's, S&P and Fitch for municipal securities is contained in an Appendix to this SAI. Because the Fund may purchase securities that are unrated by nationally recognized rating organizations, the Manager will make its own assessment of the credit quality of those unrated issues. The Manager will use criteria similar to those used by the rating agencies and assign a rating category to a security that is similar to what the Manager believes a rating agency would assign to that security. However, the Manager's rating does not constitute a guarantee of the quality of a particular issue.
In evaluating the credit quality of a particular security, whether it is rated or unrated, the Manager will normally take into consideration a number of factors. Among them are the financial resources of the issuer, or the underlying source of funds for debt service on a security, the issuer's sensitivity to economic conditions and trends, any operating history of the facility financed by the obligation and the degree of community support for it, the capabilities of the issuer's management and regulatory factors affecting the issuer and particular facility.
Special Risks of Below-Investment-Grade Securities. The Fund may invest in municipal securities rated below-investment-grade up to the limits described in the Prospectus. Lower-grade securities may have a higher yield than securities rated in the higher rating categories. In addition to having a greater risk of default than higher-grade securities, there may be less of a market for these securities. As a result they may be harder to sell at an acceptable price. The additional risks mean that the Fund may not receive the anticipated level of income from these securities, and the Fund's net asset value may be affected by declines in the value of lower-grade securities.
While securities rated "Baa" by Moody's or "BBB" by S&P are investment-grade, they may be subject to special risks and have some speculative characteristics.
U.S. Territories, Commonwealths and Possessions. The Fund may also invest in municipal securities issued by certain territories, commonwealths and possessions of the United States that pay interest that is exempt (in the opinion of the issuer's legal counsel when the security is issued) from federal income tax. Therefore, the Fund's investments could be affected by the fiscal stability of, for example, Puerto Rico, the Virgin Islands, Guam, or the Northern Mariana Islands. Additionally, the Fund's investments could be affected by economic, legislative, regulatory or political developments affecting issuers in those territories, commonwealths or possessions.
Other Investments and Investment Strategies
The Fund may also use the following types of investments and investment strategies.
Floating Rate and Variable Rate Obligations. Floating or variable rate obligations may have a demand feature that allows the Fund to tender the obligation to the issuer or a third party prior to its maturity. The tender may be at par value plus accrued interest, according to the terms of the obligations.
The interest rate on a floating rate demand note is based on a market rate, such as the percentage of LIBOR, the SIFMA Municipal Swap index or a bank's prime rate and is adjusted automatically each time such rate is adjusted. The interest rate on a variable rate demand note is also based on a specified market rate but is adjusted automatically at specified intervals of not less than one year. Generally, the changes in the interest rates on such securities reduce the fluctuation in their market value. As interest rates decrease or increase, the potential for capital appreciation or depreciation is less than that for fixed-rate obligations of the same maturity. The Manager may determine that an unrated floating rate or variable rate demand obligation meets the Fund's quality standards by reason of being backed by a letter of credit or guarantee issued by a bank that meets those quality standards.
Floating rate and variable rate demand notes that have a stated maturity in excess of one year may have features that permit the holder to recover the principal amount of the underlying security at specified intervals not exceeding one year and upon no more than 30 days' notice. The issuer of that type of note normally has a corresponding right in its discretion, after a given period, to prepay the outstanding principal amount of the note plus accrued interest. Generally the issuer must provide a specified number of days' notice to the holder. Floating rate or variable rate obligations that do not provide for the recovery of principal and interest within seven days are subject to the Fund's limitations on investments in illiquid securities.
Inverse Floaters. The Fund invests in "inverse floaters" which are derivative instruments that pay interest at rates that move in the opposite direction of yields on short-term securities. As short-term interest rates rise, the interest rate on inverse floaters falls and they produce less current income. As short-term interest rates fall, the interest rates on the inverse floaters increase and they pay more current income. Their market value can be more volatile than that of a conventional fixed-rate security having similar credit quality, redemption provisions and maturity. The Fund can expose up to 20% of its total assets to the effects of leverage from its investments in inverse floaters.
An inverse floater is typically created by a trust that divides a municipal security into two securities: a short-term tax-free floating rate security (sometimes referred to as a "tender option bond") and a long-term tax-exempt floating rate security (referred to as a residual certificate" or "inverse floater") that pays interest at rates that move in the opposite direction of the yield on the short-term floating rate security. The purchaser of a "tender option bond" has the right to tender the security periodically for repayment of the principal value. As short-term interest rates rise, inverse floaters produce less current income (and, in extreme cases, may pay no income) and as short-term interest rates fall, inverse floaters produce more current income.
To facilitate the creation of inverse floaters, the Fund may purchase a municipal security and subsequently transfer it to a broker-dealer (the sponsor), which deposits the municipal security in a trust. The trust issues the residual certificates and short-term floating rate securities. The trust documents enable the Fund to withdraw the underlying bond to unwind or "collapse" the trust (upon tendering the residual certificate and paying the value of the short-term bonds and certain other costs). The Fund may also purchase inverse floaters created by municipal issuers directly or by other parties that have deposited municipal bonds into a sponsored trust.
The Fund may also purchase inverse floaters created when another party transfers a municipal security to a trust. The trust then issues short-term floating rate notes to third parties and sells the inverse floater to the Fund. Under some circumstances, the Manager might acquire both portions of that type of offering, to reduce the effect of the volatility of the individual securities. This provides the Manager with a flexible portfolio management tool to vary the degree of investment leverage efficiently under different market conditions.
Additionally, the Fund may be able to purchase inverse floaters created by municipal issuers directly. To provide investment leverage, a municipal issuer might issue two variable rate obligations instead of a single long-term, fixed-rate security. For example, the interest rate on one obligation reflecting short-term interest rates and the interest rate on the other instrument, the inverse floater, reflecting the approximate rate the issuer would have paid on a fixed-rate security, multiplied by a factor of two, minus the rate paid on the short-term instrument.
Inverse floaters may offer relatively high current income, reflecting the spread between long-term and short-term tax-exempt interest rates. As long as the municipal yield curve remains positively sloped, and short-term rates remain low relative to long-term rates, owners of inverse floaters will have the opportunity to earn interest at above market rates. If the yield curve flattens and shifts upward, an inverse floater will lose value more quickly than a conventional long-term security having similar credit quality, redemption provisions and maturity.
Some inverse floaters have a feature known as an interest rate "cap" as part of the terms of the investment. Investing in inverse floaters that have interest rate caps might be part of a portfolio strategy to try to maintain a high current yield for the Fund when the Fund has invested in inverse floaters that expose the Fund to the risk of short-term interest rate fluctuations. "Embedded" caps can be used to hedge a portion of the Fund's exposure to rising interest rates. When interest rates exceed a pre-determined rate, the cap generates additional cash flows that offset the decline in interest rates on the inverse floater. However, the Fund bears the risk that if interest rates do not rise above the pre-determined rate, the cap (which is purchased for additional cost) will not provide additional cash flows and will expire worthless.
The Fund may enter into a "shortfall and forbearance" agreement with the sponsor of an inverse floater held by the Fund. Under such an agreement, on liquidation of the trust, the Fund would be committed to pay the trust the difference between the liquidation value of the underlying security on which the inverse floater is based and the principal amount payable to the holders of the short-term floating rate security that is based on the same underlying security. The Fund would not be required to make such a payment under the standard terms of a more typical inverse floater. Although entering into a "shortfall and forbearance" agreement would expose the Fund to the risk that it may be required to make the payment described above, the Fund may receive higher interest payments than under a typical inverse floater.
An investment in inverse floaters may involve greater risk than an investment in a fixed-rate municipal security. All inverse floaters entail some degree of leverage. The interest rate on inverse floaters varies inversely at a pre-set multiple of the change in short-term rates. An inverse floater that has a higher multiple, and therefore more leverage, will be more volatile with respect to both price and income than an inverse floater with a lower degree of leverage or than the underlying security.
Because of the accounting treatment for inverse floaters created by the Fund's transfer of a municipal bond to a trust, the Fund's financial statements will reflect these transactions as "secured borrowings," which affects the Fund's expense ratios, statements of income and assets and liabilities and causes the Fund's Statement of Investments to include the underlying municipal bond.
Percentage of LIBOR Notes (PLNs). The Fund may invest in Percentage of LIBOR Notes ("PLNs") which are variable rate municipal securities based on the London Interbank Offered Rate ("LIBOR"), a widely used benchmark for short-term interest rates and used by banks for interbank loans with other banks. The PLN typically pays interest based on a percentage of a LIBOR rate for a specified time plus an established yield premium. Due to their variable rate features, PLNs will generally pay higher levels of income in a rising short-term interest rate environment and lower levels of income as short-term interest rates decline. In times of substantial market volatility, however, the PLNs may not perform as anticipated. The value of a PLN also may decline due to other factors, such as changes in credit quality of the underlying bond.
The Fund also may invest in PLNs that are created when a broker-dealer/sponsor deposits a municipal bond into a trust created by the sponsor. The trust issues a percentage of LIBOR floating rate certificate (i.e., the PLN) to the Fund and a residual interest certificate to third parties who receive the remaining interest on the bond after payment of the interest distribution to the PLN holder and other fees.
Because the market for PLNs is relatively new and still developing, the Fund's ability to engage in transactions using such instruments may be limited. There is no assurance that a liquid secondary market will exist for any particular PLN or at any particular time, and so the Fund may not be able to close a position in a PLN when it is advantageous to do so.
When-Issued and Delayed-Delivery Transactions. The Fund can purchase securities on a "when-issued" basis, and may purchase or sell such securities on a "delayed-delivery" basis. "When-issued" or "delayed-delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery.
When such transactions are negotiated, the price (which is generally expressed in yield terms) is fixed at the time the commitment is made. Delivery and payment for the securities take place at a later date. Normally the settlement date is within six months of the purchase of municipal bonds and notes. However, the Fund may, from time to time, purchase municipal securities having a settlement date more than six months and possibly as long as two years or more after the trade date. The securities are subject to change in value from market fluctuation during the settlement period. The value at delivery may be less than the purchase price. For example, changes in interest rates in a direction other than that expected by the Manager before settlement will affect the value of such securities and may cause loss to the Fund. No income begins to accrue to the Fund on a when-issued security until the Fund receives the security at settlement of the trade.
The Fund will engage in when-issued transactions in order to secure what is considered to be an advantageous price and yield at the time of entering into the obligation. When the Fund engages in when-issued or delayed-delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain the security at a price and yield it considers advantageous.
When the Fund engages in when-issued and delayed-delivery transactions, it does so for the purpose of acquiring or selling securities consistent with its investment objective and policies for its portfolio or for delivery pursuant to options contracts it has entered into, and not for the purposes of investment leverage. Although the Fund will enter into when-issued or delayed-delivery purchase transactions to acquire securities, the Fund may dispose of a commitment prior to settlement. If the Fund chooses to dispose of the right to acquire a when-issued security prior to its acquisition or to dispose of its right to deliver or receive against a forward commitment, it may incur a gain or loss.
At the time the Fund makes a commitment to purchase or sell a security on a when-issued or forward commitment basis, it records the transaction on its books and reflects the value of the security purchased. In a sale transaction, it records the proceeds to be received, in determining its net asset value. In a purchase transaction the Fund will identify on its books liquid securities of any type with a value at least equal to the purchase commitments until the Fund pays for the investment.
When-issued transactions and forward commitments can be used by the Fund as a defensive technique to hedge against anticipated changes in interest rates and prices. For instance, in periods of rising interest rates and falling prices, the Fund might sell securities in its portfolio on a forward commitment basis to attempt to limit its exposure to anticipated falling prices. In periods of falling interest rates and rising prices, the Fund might sell portfolio securities and purchase the same or similar securities on a when-issued or forward commitment basis, to obtain the benefit of currently higher cash yields.
Zero-Coupon Securities. The Fund may buy zero-coupon and delayed interest municipal securities. Zero-coupon securities do not make periodic interest payments and are sold at a deep discount from their face value. The buyer recognizes a rate of return determined by the gradual appreciation of the security, which is redeemed at face value on a specified maturity date. This discount depends on the time remaining until maturity, as well as prevailing interest rates, the liquidity of the security and the credit quality of the issuer. In the absence of threats to the issuer's credit quality, the discount typically decreases as the maturity date approaches. Some zero-coupon securities are convertible, in that they are zero-coupon securities until a predetermined date, at which time they convert to a security with a specified coupon rate.
Because zero-coupon securities pay no interest and compound semi-annually at the rate fixed at the time of their issuance, their value is generally more volatile than the value of other debt securities. Their value may fall more dramatically than the value of interest-bearing securities when interest rates rise. When prevailing interest rates fall, zero-coupon securities tend to rise more rapidly in value because they have a fixed rate of return.
The Fund's investment in zero-coupon securities may cause the Fund to recognize income and be required to make distributions to shareholders before it receives any cash payments on the zero-coupon investment. To generate cash to satisfy those distribution requirements, the Fund may have to sell portfolio securities that it otherwise might have continued to hold or to use cash flows from other sources such as the sale of Fund shares.
Puts and Standby Commitments. The Fund may acquire "stand-by commitments" or "puts" with respect to municipal securities to enhance portfolio liquidity and to try to reduce the average effective portfolio maturity. These arrangements give the Fund the right to sell the securities at a set price on demand to the issuing broker-dealer or bank. However, securities having this feature may have a relatively lower interest rate.
When the Fund buys a municipal security subject to a standby commitment to repurchase the security, the Fund is entitled to same-day settlement from the purchaser. The Fund receives an exercise price equal to the amortized cost of the underlying security plus any accrued interest at the time of exercise. A put purchased in conjunction with a municipal security enables the Fund to sell the underlying security within a specified period of time at a fixed exercise price.
The Fund might purchase a standby commitment or put separately in cash or it might acquire the security subject to the standby commitment or put (at a price that reflects that additional feature). The Fund will enter into these transactions only with banks and securities dealers that, in the Manager's opinion, present minimal credit risks. The Fund's ability to exercise a put or standby commitment will depend on the ability of the bank or dealer to pay for the securities if the put or standby commitment is exercised. If the bank or dealer should default on its obligation, the Fund might not be able to recover all or a portion of any loss sustained from having to sell the security elsewhere.
Puts and standby commitments are not transferable by the Fund. They terminate if the Fund sells the underlying security to a third party. The Fund intends to enter into these arrangements to facilitate portfolio liquidity, although such arrangements might enable the Fund to sell a security at a pre-arranged price that may be higher than the prevailing market price at the time the put or standby commitment is exercised. However, the Fund might refrain from exercising a put or standby commitment if the exercise price is significantly higher than the prevailing market price, to avoid imposing a loss on the seller that could jeopardize the Fund's business relationships with the seller.
A put or standby commitment increases the cost of the security and reduces the yield otherwise available from the security. Any consideration paid by the Fund for the put or standby commitment will be reflected on the Fund's books as unrealized depreciation while the put or standby commitment is held, and a realized gain or loss when the put or commitment is exercised or expires. Interest income received by the Fund from municipal securities subject to puts or stand-by commitments may not qualify as tax-exempt in its hands if the terms of the put or stand-by commitment cause the Fund not to be treated as the tax owner of the underlying municipal securities.
Repurchase Agreements. The Fund may acquire securities subject to repurchase agreements. Repurchase agreements may be acquired for temporary defensive purposes, to maintain liquidity to meet anticipated share redemptions, pending the investment of the proceeds from sales of shares, or pending the settlement of portfolio securities transactions. In a repurchase transaction, the purchaser buys a security from, and simultaneously resells it to, an approved vendor for delivery on an agreed-upon future date. The resale price exceeds the purchase price by an amount that reflects an agreed-upon interest rate effective for the period during which the repurchase agreement is in effect. Approved vendors include U.S. commercial banks, U.S. branches of foreign banks, or broker-dealers that have been designated as primary dealers in government securities. Vendors must meet credit requirements set by the Manager from time to time.
The majority of repurchase transactions run from day to day and delivery pursuant to the resale typically occurs within one to five days of the purchase. Repurchase agreements that have a maturity beyond seven days are subject to limits on illiquid investments. There is no limit on the amount of assets that may be subject to repurchase agreements having maturities of seven days or less.
Repurchase agreements are considered "loans" under the Investment Company Act and are collateralized by the underlying security. Repurchase agreements require that at all times while the repurchase agreement is in effect, the value of the collateral must equal or exceed the repurchase price to fully collateralize the repayment obligation. However, if the vendor fails to pay the repurchase price on the delivery date, there may be costs incurred in disposing of the collateral and losses if there is a delay in the ability to do so. The Manager will monitor the vendor's creditworthiness to confirm that the vendor is financially sound and will continuously monitor the collateral's value.
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the "SEC"), the Fund, along with the affiliated entities managed by the Manager, may transfer uninvested cash balances into one or more joint repurchase agreement accounts. These balances are invested in one or more repurchase agreements secured by U.S. Government securities. Securities that are pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each joint repurchase arrangement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention or sale of the collateral may be subject to legal proceedings.
Reverse Repurchase Agreements. The Fund may engage in reverse repurchase agreements. A reverse repurchase agreement is the sale of an underlying debt obligation and the simultaneous agreement to repurchase it at an agreed-upon price and date. These transactions involve the risk that the market value of the securities sold under a reverse repurchase agreement could decline below the cost of the obligation to repurchase them. The Fund will identify liquid assets on its books to cover its obligations under reverse repurchase agreements, including interest, until payment is made to the seller.
Borrowing and Leverage. The Fund can borrow from banks, as permitted by the Investment Company Act. It can use those borrowings for investment-related purposes such as purchasing securities believed to be desirable by the Manager. The Fund also can borrow from banks and other lenders to meet redemption obligations or for temporary and emergency purposes. When the Fund borrows money, it is using a speculative investment technique known as "leverage," and changes in the value of the Fund's investments will have a larger effect on its share price than if it did not borrow. Under the Fund's investment policies, the Fund may not borrow money, except to the extent permitted under the Investment Company Act, the rules or regulations thereunder or any exemption from that Act that applies to the Fund. Currently, under the Investment Company Act, a mutual fund may borrow only from banks (other than for emergency purposes) a nd the maximum amount it may borrow is up to one-third of its total assets (including the amount borrowed), less all liabilities and indebtedness other than borrowings, meaning that the value of those assets must be at least equal to 300% of the amount borrowed. If the value of the Fund's assets fails to meet this 300% asset coverage requirement, the Fund will reduce the amount of its borrowings within three days to meet the requirement. To do so, the Fund might have to sell a portion of its investments at a disadvantageous time and for a disadvantageous price.
The Fund may also borrow up to 5% of its total assets for temporary or emergency purposes from any lender. Under the Investment Company Act, there is a rebuttable presumption that a loan is temporary if it is repaid within 60 days and not extended or renewed.
The Fund will pay interest and may pay other fees in connection with loans. Interest expense and the amount of any other fees incurred by the Fund in connection with loans will raise the overall expenses of the Fund and may reduce its returns. If the Fund does borrow, its expenses will usually be greater than comparable funds that do not borrow. The interest and fees paid on a loan might be more or less than the yield on any securities purchased with the loan proceeds. If those costs are more than the yield on the securities purchased, the Fund's return will be reduced. Additionally, on the maturity date for any loan, the Fund must have sufficient cash available to pay back the lender the amount borrowed.
Loans are typically secured by assets of the Fund, meaning that the Fund will grant the lender a security interest in some or all of its assets to secure its performance under the related loan. If the Fund were to default in the payment of interest or other fees in connection with a secured loan or fail to repay the principal amount of that loan on maturity or fail to satisfy other obligations it may owe to the lender in connection with that loan, the lender would have certain rights to foreclose on, take, and liquidate those assets of the Fund in which the lender was granted a security interest in order to satisfy any outstanding amounts the Fund owed in connection with the loan.
The Fund participates in a secured line of credit (the "Line of Credit") with certain commercial paper conduits, as lenders, Citibank, N.A. as a secondary lender and administrator, and other banks, each as lenders from time to time. The Line of Credit enables the Fund to participate with certain other Oppenheimer funds, as borrowers, in a committed, secured borrowing facility that permits borrowings by the participants of up to a maximum aggregate amount, as negotiated from time to time. Borrowings by the Fund under the Line of Credit can be used to purchase securities for investment or for other purposes. The Fund's Board determined that the Fund's participation in the Line of Credit is consistent with the Fund's investment objective and policies and is in the best interests of the Fund and its shareholders.
Under the Line of Credit, in the event that that the commercial paper conduit lenders are unable or unwilling to make loans, Citibank, N.A. and the other bank lenders, if any, would then be required to make those loans. Under the Line of Credit, interest is charged to the Fund, based on its borrowings, at current commercial rates. Additionally, the Fund will pay its pro rata portion of a loan commitment fee for the Line of Credit, and pays additional fees annually to the lenders on its outstanding borrowings for management and administration of the facility. The Fund can prepay loans and terminate its participation in the Line of Credit at any time upon prior notice to Citibank, N.A. As a borrower under the Line of Credit, the Fund has certain rights and remedies under state and federal law comparable to those it would have with respect to a loan from a bank.
Illiquid and Restricted Securities. Generally, an illiquid asset is an asset that cannot be sold or disposed of in the ordinary course of business within seven days at approximately the price at which it has been valued. Under the policies and procedures established by the Board, the Manager determines the liquidity of portfolio investments. The Manager monitors holdings of illiquid and restricted securities on an ongoing basis to determine whether to sell any holdings to maintain adequate liquidity. Among the types of illiquid securities are repurchase agreements maturing in more than seven days.
Restricted securities acquired through private placements have contractual restrictions on their public resale that might limit the ability to value or to dispose of the securities and might lower the price that could be realized on a sale. To sell a restricted security that is not registered under applicable securities laws, the securities might need to be registered. The expense of registering restricted securities may be negotiated with the issuer at the time of purchase. If the securities must be registered in order to be sold, a significant period may elapse between the time the decision is made to sell the security and the time the security is registered. There is a risk of downward price fluctuation during that period.
Limitations that apply to purchases of restricted securities do not limit purchases of restricted securities that are eligible for sale to qualified institutional buyers under Rule 144A of the Securities Act of 1933, if those securities have been determined to be liquid by the Manager under Board-approved guidelines. Those guidelines take into account the trading activity for the securities and the availability of reliable pricing information, among other factors. If there is a lack of trading interest in a particular Rule 144A security, holdings of that security may be considered to be illiquid.
Liquidity Facility. The Fund can participate in a program offered by ReFlow, LLC ("ReFlow") which provides additional liquidity to help the Fund meet shareholder redemptions without having to liquidate portfolio securities or borrow money, each of which imposes certain costs on the Fund. ReFlow is designed to provide an alternative source of funding to help meet shareholder redemptions while minimizing the Fund's costs and cash flow disruptions (compared to selling portfolio securities or other liquidity facilities such as a line of credit) and allowing the Fund to remain more fully invested. ReFlow provides this liquidity by being prepared to purchase Fund shares, at the Fund's closing net asset value, equal to the amount of the Fund's net redemptions on any given day. On subsequent days when the Fund experiences net subscriptions, ReFlow redeems its holdings at the Fund's net asset value on that day. When the Fu nd participates in the ReFlow program, it pays ReFlow a fee at a rate determined by a daily auction with other participating mutual funds in the ReFlow program. There is no assurance that ReFlow will have sufficient funds available to meet the Fund's liquidity needs on a particular day and ReFlow is prohibited from acquiring more than 3% of the outstanding shares of the Fund.
Loans of Portfolio Securities. Securities lending pursuant to a Securities Lending Agency Agreement (the "Securities Lending Agreement") with Goldman Sachs Bank USA, doing business as Goldman Sachs Agency Lending ("Goldman Sachs"), may be used to attempt to increase income. Loans of portfolio securities must comply with all applicable regulations and with the Fund's Securities Lending Procedures adopted by the Board. The terms of any loans must also meet applicable tests under the Internal Revenue Code.
There are certain risks in connection with securities lending, including possible delays in receiving additional collateral to secure a loan, or a delay or expenses in recovery of the loaned securities. Goldman Sachs has agreed, in general, to guarantee the obligations of borrowers to return loaned securities and to be responsible for certain expenses relating to securities lending. Under the Securities Lending Agreement, the Fund's securities lending procedures and applicable regulatory requirements (which are subject to change), the Fund must receive collateral from the borrower consisting of cash, bank letters of credit or securities of the U.S. Government (or its agencies or instrumentalities). On each business day, the amount of collateral that the Fund has received must at least equal the value of the loaned securities. If the Fund receives cash collateral from the borrower, the Manager, in its capacity as the Fund's collateral administrator, may invest that cash in certain high quality, short-term investments, including in money market funds advised by the Manager. The Fund will be subject to its proportional share of the expenses of such money market funds, including the advisory fee payable to the Manager or its affiliate as adviser to such funds. The Manager may charge a collateral administration fee of 0.08% on the value of cash collateral invested in other securities. All of the Fund's collateral investments must comply with its securities lending procedures. The Fund will be responsible for the risks associated with the investment of cash collateral, including the risk that the Fund may lose money on the investment or may fail to earn sufficient income to meet its obligations to the borrower.
The terms of the loans must permit the Fund to recall loaned securities on five business days' notice and the Fund will seek to recall loaned securities in time to vote on any matters that the Manager determines would have a material effect on the Fund's investment. The Securities Lending Agreement may be terminated by either Goldman Sachs or the Fund on 30 days' written notice.
The Fund limits loans of portfolio securities to not more than 25% of its net assets.
Other Derivative Investments. Certain derivatives, such as options, futures, indexed securities and entering into swap agreements, can be used to increase or decrease the Fund's exposure to changing security prices, interest rates or other factors that affect the value of securities. However, these techniques could result in losses to the Funds if the Manager judges market conditions incorrectly or employs a strategy that does not correlate well with the Fund's other investments. These techniques can cause losses if the counterparty does not perform its promises. An additional risk of investing in municipal securities that are derivative investments is that their market value could be expected to vary to a much greater extent than the market value of municipal securities that are not derivative investments but have similar credit quality, redemption provisions and maturities.
Hedging. The Fund may use hedging to attempt to protect against declines in the market value of its portfolio, to permit the Funds to retain unrealized gains in the value of portfolio securities that have appreciated, or to facilitate selling securities for investment reasons. To do so, the Fund may:
Covered calls may also be written on debt securities to attempt to increase the Fund's income, but that income would not be tax-exempt. Therefore it is unlikely that the Fund would write covered calls for that purpose.
The Fund may also use hedging to establish a position in the debt securities market as a temporary substitute for purchasing individual debt securities. In that case the Fund will normally seek to purchase the securities, and then terminate that hedging position. For this type of hedging, the Fund may:
The Fund is not obligated to use hedging instruments, even though it is permitted to use them in the Manager's discretion, as described below. The Fund's strategy of hedging with futures and options on futures will be incidental to the Fund's investment activities in the underlying cash market. The particular hedging instruments the Fund can use are described below. The Fund may employ new hedging instruments and strategies when they are developed, if those investment methods are consistent with the Fund's investment objective and are permissible under applicable regulations governing the Fund.
Futures. The Fund may buy and sell futures contracts relating to debt securities (these are called "interest rate futures"), and municipal bond indices (these are referred to as "municipal bond index futures").
An interest rate future obligates the seller to deliver (and the purchaser to take) cash or a specific type of debt security to settle the futures transaction. Either party could also enter into an offsetting contract to close out the futures position.
A "municipal bond index" assigns relative values to the municipal bonds in the index, and is used as the basis for trading long-term municipal bond futures contracts. Municipal bond index futures are similar to interest rate futures except that settlement is made only in cash. The obligation under the contract may also be satisfied by entering into an offsetting contract. The strategies which the Fund employs in using municipal bond index futures are similar to those with regard to interest rate futures.
No money is paid by or received by the Fund on the purchase or sale of a futures contract. Upon entering into a futures transaction, the Fund will be required to deposit an initial margin payment in cash or U.S. Government securities with the futures commission merchant (the "futures broker"). Initial margin payments will be deposited with the Fund's custodian bank in an account registered in the futures broker's name. However, the futures broker can gain access to that account only under certain specified conditions. As the future is marked to market (that is, its value on the Fund's books is changed) to reflect changes in its market value, subsequent margin payments, called variation margin, will be paid to or by the futures broker daily.
At any time prior to the expiration of the future, the Fund may elect to close out its position by taking an opposite position at which time a final determination of variation margin is made and additional cash is required to be paid by or released to the Fund. Any gain or loss is then realized by the Fund on the future for tax purposes. Although interest rate futures by their terms call for settlement by the delivery of debt securities, in most cases the obligation is fulfilled without such delivery by entering into an offsetting transaction. All futures transactions are effected through a clearing house associated with the exchange on which the contracts are traded.
The Fund may concurrently buy and sell futures contracts in a strategy anticipating that the future the Fund purchased will perform better than the future the Fund sold. For example, the Fund might buy municipal bond futures and concurrently sell U.S. Treasury Bond futures (a type of interest rate future). The Fund would benefit if municipal bonds outperform U.S. Treasury Bonds on a duration-adjusted basis.
Duration is a volatility measure that refers to the expected percentage change in the value of a bond resulting from a change in general interest rates (measured by each 1% change in the rates on U.S. Treasury securities). For example, if a bond has an effective duration of three years, a 1% increase in general interest rates would be expected to cause the value of the bond to decline about 3%. There are risks that this type of futures strategy will not be successful. U.S. Treasury bonds might perform better on a duration-adjusted basis than municipal bonds, and the assumptions about duration that were used might be incorrect (in this case, the duration of municipal bonds relative to U.S. Treasury Bonds might have been greater than anticipated).
Put and Call Options. Put options (sometimes referred to as "puts") give the holder the right to sell an asset for an agreed-upon price. Call options (sometimes referred to as "calls") give the holder the right to buy an asset at an agreed-upon price.
Writing Covered Call Options. The Fund may write (that is, sell) call options. The Fund's call writing is subject to a number of restrictions:
When the Fund writes a call on a security, it receives cash (a premium). The Fund agrees to sell the underlying investment to a purchaser of a corresponding call on the same security during the call period at a fixed exercise price regardless of market price changes during the call period. The call period is usually not more than nine months. The exercise price may differ from the market price of the underlying security. The Fund has retained the risk of loss that the price of the underlying security may decline during the call period. That risk may be offset to some extent by the premium the Fund receives. If the value of the investment does not rise above the call price, it is likely that the call will lapse without being exercised. In that case the Fund would keep the cash premium and the investment.
When the Fund writes a call on an index, it receives cash (a premium). If the buyer of the call exercises it, the Fund will pay an amount of cash equal to the difference between the closing price of the call and the exercise price, multiplied by the specified multiple that determines the total value of the call for each point of difference. If the value of the underlying investment does not rise above the call price, it is likely that the call will lapse without being exercised. In that case the Fund would keep the cash premium.
The Fund's custodian bank, or a securities depository acting for the custodian bank, will act as the Fund's escrow agent through the facilities of the Options Clearing Corporation ("OCC"), as to the investments on which the Fund has written calls traded on exchanges, or as to other acceptable escrow securities. In that way, no margin will be required for such transactions. OCC will release the securities on the expiration of the calls or upon the Fund's entering into a closing purchase transaction.
When the Fund writes an over-the-counter ("OTC") option, it will enter into an arrangement with a primary U.S. Government securities dealer which will establish a formula price at which the Fund will have the absolute right to repurchase that OTC option. The formula price would generally be based on a multiple of the premium received for the option, plus the amount by which the option is exercisable below the market price of the underlying security (that is, the option is "in-the-money"). When the Fund writes an OTC option, it will treat as illiquid (for purposes of its restriction on illiquid securities) the mark-to-market value of any OTC option held by it, unless the option is subject to a buy-back agreement by the executing broker.
To terminate its obligation on a call it has written, the Fund may purchase a corresponding call in a "closing purchase transaction." The Fund will then realize a profit or loss, depending upon whether the net of the amount of the option transaction costs and the premium received on the call the Fund wrote was more or less than the price of the call the Fund purchased to close out the transaction. A profit may also be realized if the call lapses unexercised, because the Fund retains the underlying investment and the premium received. Any such profits are considered short-term capital gains for federal tax purposes, as are premiums on lapsed calls. When distributed by the Funds they are taxable as ordinary income.
Writing Uncovered Call Options on Futures Contracts. The Funds may also write calls on futures contracts without owning the futures contract or securities deliverable under the contract. To do so, at the time the call is written, the Fund must cover the call by segregating in escrow an equivalent dollar value of liquid assets. The Fund will segregate additional liquid assets if the value of the escrowed assets drops below 100% of the current value of the future. Because of this escrow requirement, in no circumstances would the Fund's receipt of an exercise notice as to that future put the Fund in a "short" futures position.
Selling Put Options. A put option on a security or a securities index gives the purchaser the right, during the option period, to sell the underlying investment to the seller at the exercise price. When selling (writing) a put option on a security, the option must be covered by the Fund by identifying liquid assets with a value equal to or greater than the exercise price of the put option, to secure the obligation. In this case the Fund forgoes the opportunity to invest, sell or write calls against the identified assets.
The seller of a put is obligated to buy the underlying investment at the exercise price even if the market value of the investment falls below that price. If the price of the underlying investment remains higher than the exercise price, it is unlikely that a put option would be exercised. If a put option is not exercised, the seller would realize a gain of the amount of the premium received less the transaction costs incurred. If the put is exercised, the exercise price will usually exceed the market value of the underlying investment at that time. In that case, the seller could incur a loss. If the underlying investment is resold at that time, the loss would be equal to the exercise price and any transaction costs minus the amount of the premium received and the amount the seller received from the resale of the underlying investment. Settlement of a put on an index is in cash rather than by delivery of the underlying investment. Any profits earned by the Fund from writing put options are considered short-term capital gains for federal income tax purposes, and are taxable as ordinary income when distributed to shareholders.
The Fund will not write puts if, as a result, more than 20% of the Fund's total assets would be required to be segregated to cover such put options.
Purchasing Puts and Calls. The Fund may buy calls only on securities, broadly-based municipal bond indices, municipal bond index futures and interest rate futures. It may also buy calls to close out a call it has written, as discussed above. Calls the Fund buys must be listed on a securities or commodities exchange, or quoted on NASDAQ®, or traded in the over-the-counter market. A call or put option may not be purchased if the purchase would cause the value of all the Fund's put and call options to exceed 5% of its total assets.
When the Fund purchases a call (other than in a closing purchase transaction), it pays a premium. For calls on securities that the Fund buys, it has the right to buy the underlying investment from a seller of a corresponding call on the same investment during the call period at a fixed exercise price. The Fund benefits only if (1) the call is sold at a profit or (2) the call is exercised when the market price of the underlying investment is above the sum of the exercise price plus the transaction costs and premium paid for the call. If the call is not exercised nor sold (whether or not at a profit), it will become worthless at its expiration date. In that case the Fund will lose its premium payment and the right to purchase the underlying investment.
Calls on municipal bond indices, interest rate futures and municipal bond index futures are settled in cash rather than by delivering the underlying investment. Gain or loss depends on changes in the securities included in the index in question (and thus on price movements in the debt securities market generally) rather than on changes in price of the individual futures contract.
The Fund may buy only those puts that relate to securities that it owns, broadly-based municipal bond indices, municipal bond index futures or interest rate futures (whether or not the Fund owns the futures).
When the Fund purchases a put, it pays a premium. The Fund then has the right to sell the underlying investment to a seller of a corresponding put on the same investment during the put period at a fixed exercise price. Puts on municipal bond indices are settled in cash. Buying a put on a debt security, interest rate future or municipal bond index future the Fund owns enables it to protect itself during the put period against a decline in the value of the underlying investment below the exercise price. If the market price of the underlying investment is equal to or above the exercise price and as a result the put is not exercised or resold, the put will become worthless at its expiration date. In that case the Fund will lose its premium payment and the right to sell the underlying investment. A put may be sold prior to expiration (whether or not at a profit).
Risks of Hedging with Options and Futures. The use of hedging instruments requires special skills and knowledge of investment techniques that are different than those required for normal portfolio management. These risks of using options and futures include the following:
Selection Risk. If the Manager uses an option at the wrong time or judges market conditions incorrectly, or if the prices of its options positions are not correlated with its other investments, a hedging strategy may reduce returns or cause losses. If a covered call option is sold on an investment that increases in value, if the call is exercised, no gain will be realized on the increase in the investment's value above the call price. A put option on a security that does not decline in value will cost the amount of the purchase price and without providing any benefit if it cannot be resold.
Liquidity Risk. Losses might also be realized if a position could not be closed out because of illiquidity in the market for an option. An option position may be closed out only on a market that provides secondary trading for options of the same series, and there is no assurance that a liquid secondary market will exist for any particular option.
Leverage Risk. Premiums paid for options are small compared to the market value of the underlying investments. Consequently, options may involve large amounts of leverage, which could result in the Fund's net asset value being more sensitive to changes in the value of the underlying investments.
Correlation Risk. If the Fund sells futures or purchases puts on broadly-based indices or futures to attempt to protect against declines in the value of its portfolio securities, it may be subject to the risk that the prices of the futures or the applicable index will not correlate with the prices of those portfolio securities. For example, the market or the index might rise but the value of the hedged portfolio securities might decline. In that case, the Fund would lose money on the hedging instruments and also experience a decline in the value of the portfolio securities. Over time, however, the value of a diversified portfolio of securities will tend to move in the same direction as the indices upon which related hedging instruments are based.
The risk of imperfect correlation increases as the composition of the portfolio diverges from the securities included in the applicable index. To compensate for the imperfect correlation of movements in the price of the portfolio securities being hedged and movements in the price of the hedging instruments, the Fund might use a greater dollar amount of hedging instruments than the dollar amount of portfolio securities being hedged, particularly if the historical price volatility of the portfolio securities being hedged is more than the historical volatility of the applicable index.
Transaction Costs. Option activities might also affect portfolio turnover rates and brokerage commissions. The portfolio turnover rate might increase if the Fund is required to sell portfolio securities that are subject to call options it has sold or if it exercises put options it has bought. Although the decision to exercise a put it holds is within the Fund's control, holding a put might create an additional reason to purchase a security. There may also be a brokerage commission on each purchase or sale of a put or call option. Those commissions may be higher on a relative basis than the commissions for direct purchases or sales of the underlying investments. A brokerage commission may also be paid for each purchase or sale of an underlying investment in connection with the exercise of a put or call.
Interest Rate Swaps. In an interest rate swap, the Fund and another party exchange their rights to receive interest payments on a security or payments based on a reference rate. For example, they might swap the right to receive floating rate payments based on a reference rate such as "LIBOR" for the right to receive fixed rate payments.
Interest rate swaps entail both interest rate risk and credit risk. There is a risk that based on movements of interest rates, the payments made by the Fund under a swap agreement will be greater than the payments it receives. Credit risk is the risk that the counterparty might default. If the counterparty defaults, the Fund may lose the net amount of contractual interest payments that it has not yet received.
The Fund may not enter into swaps with respect to more than 25% of its total assets.
Asset Coverage for Certain Investments and Trading Practices. Typically, the Fund's investments in fixed-income securities do not involve any future financial obligations. However, the Fund may make investments or employ trading practices that obligate the Fund, on a fixed or contingent basis, to deliver an asset or make a cash payment to another party in the future. The Fund will comply with guidance from the U.S. Securities and Exchange Commission (the "SEC") and other applicable regulatory bodies with respect to coverage of certain investments and trading practices. This guidance may require earmarking or segregation by the Fund of cash or liquid securities with its custodian or a designated sub-custodian to the extent the Fund's obligations with respect to these strategies are not otherwise "covered" through ownership of the underlying security or financial instrument or by other portfolio positions, or by other means co nsistent with applicable regulatory policies. In some cases, SEC guidance permits the Fund to cover its obligation by entering into an offsetting transaction.
Inasmuch as the Fund covers its obligations under these transactions, the Manager and the Fund believe such obligations do not constitute senior securities and, accordingly, will not treat them as being subject to its borrowing restrictions. Earmarking or otherwise segregating a large percentage of the Fund's assets could impede the Manager's ability to manage the Fund's portfolio.
Regulatory Aspects of Derivatives and Hedging Instruments. The Commodity Futures Trading Commission has eliminated limitations on futures trading by certain regulated entities, including registered investment companies. Consequently, registered investment companies may engage in unlimited futures transactions and options thereon by claiming an exclusion from regulation as a commodity pool operator under the Commodity Exchange Act.
Options transactions are subject to limitations established by the option exchanges. The exchanges limit the maximum number of options that may be written or held by a single investor or group of investors acting in concert. Those limits apply regardless of whether the options were purchased, sold or held through one or more different exchanges or are held in one or more accounts or through one or more brokers. Thus, the number of options that can be sold by an investment company advised by the Manager may be affected by options written or held by other investment companies advised by the Manager or affiliated entities. The exchanges also impose position limits on futures transactions. An exchange may order the liquidation of positions found to be in violation of those limits and may impose certain other sanctions.
Under SEC staff interpretations regarding applicable provisions of the Investment Company Act, when a registered investment company purchases a future, it must identify cash or other liquid assets at its custodian bank in an amount equal to the purchase price of the future, less the margin deposit applicable to it.
Temporary Defensive and Interim Investments. The securities the Fund may invest in for temporary defensive purposes include the following:
The Fund also might hold these types of securities pending the investment of proceeds from the sale of portfolio securities or to meet anticipated redemptions of Fund shares. The income from some of the temporary defensive or interim investments may not be tax-exempt. Therefore, when making those investments, the Fund might not achieve its objective.
Taxable Investments. While the Fund can invest up to 20% of its net assets (plus borrowings for investment purposes) in investments that generate income subject to income taxes, it does not anticipate investing substantial amounts of its assets in taxable investments under normal market conditions or as part of its normal trading strategies and policies. Taxable investments include, for example, hedging instruments, repurchase agreements, and many of the types of securities the Fund would buy for temporary defensive purposes.
At times, in connection with the restructuring of a municipal bond issuer either outside of bankruptcy court in a negotiated workout or in the context of bankruptcy proceedings, the Fund may determine or be required to accept equity or taxable debt securities, or the underlying collateral (which may include real estate) from the issuer in exchange for all or a portion of the Fund's holdings in the municipal security. Although the Manager will attempt to sell those assets as soon as reasonably practicable in most cases, depending upon, among other things, the Manager's valuation of the potential value of such assets in relation to the price that could be obtained by the Fund at any given time upon sale thereof, the Fund may determine to hold such securities or assets in its portfolio for limited period of time in order to liquidate the assets in a manner that maximizes their value to the Fund.
Portfolio Turnover. A change in the securities held by the Fund from buying and selling investments is known as "portfolio turnover." Short-term trading increases the rate of portfolio turnover and could increase the Fund's transaction costs. However, the Fund ordinarily incurs little or no brokerage expense because most of the Fund's portfolio transactions are principal trades that do not require payment of brokerage commissions.
The Fund ordinarily does not trade securities to achieve short-term capital gains, because such gains would not be tax-exempt income. To a limited degree, the Fund may engage in active and frequent short-term trading to attempt to take advantage of short-term market variations. It may also do so to dispose of a portfolio security prior to its maturity. That might be done if, on the basis of a revised credit evaluation of the issuer or other considerations, the Manager believes such disposition is advisable or it needs to generate cash to satisfy requests to redeem Fund shares. In those cases, the Fund may realize a capital gain or loss on its investments. The Fund's annual portfolio turnover rate normally is not expected to exceed 100%. The Financial Highlights table at the end of the Prospectus shows the Fund's portfolio turnover rates during the past five fiscal years.
Fundamental Policies. The Fund has adopted policies and restrictions to govern its investments. Under the Investment Company Act, fundamental policies are those policies that can be changed only by the vote of a "majority" of the Fund's outstanding voting securities, which is defined as the vote of the holders of the lesser of:
The Fund's investment objective is a fundamental policy. Other policies described in the Prospectus or this SAI are "fundamental" only if they are identified as such. The Fund's Board of Trustees can change non-fundamental policies without shareholder approval. However, significant changes to investment policies will be described in supplements or updates to the Prospectus or this SAI, as appropriate. The Fund's most significant investment policies are described in the Prospectus.
Other Fundamental Investment Restrictions. The following investment restrictions are fundamental policies of the Fund.
Unless the Prospectus or this SAI states that a percentage restriction applies on an ongoing basis, it applies only at the time the Fund makes an investment. That means the Fund is not required to sell securities to meet the percentage limits if the value of the investment increases in proportion to the size of the Fund. Percentage limits on borrowing and investments in illiquid securities apply on an ongoing basis.
Non-Fundamental Restrictions. The Fund has the following additional operating policies that are not "fundamental" and can be changed by the Board without shareholder approval.
Diversification. The Fund intends to be "diversified" as defined in the Investment Company Act and to satisfy the restrictions against investing too much of its assets in any "issuer" as set forth in the restrictions above. In implementing this policy, the identification of the issuer of a municipal security depends on the terms and conditions of the security. When the assets and revenues of an agency, authority, instrumentality or other political subdivision are separate from those of the government creating it and the security is backed only by the assets and revenues of the subdivision, agency, authority or instrumentality, the latter would be deemed to be the sole issuer. Similarly, if an industrial development bond is backed only by the assets and revenues of the non-governmental user, then that user would be deemed to be the sole issuer. However, if in either case the creating government or some other entity guarantees a security, the guarantee would be considered a separate security and would be treated as an issue of such government or other entity.
Applying the Restriction Against Concentration. In implementing the Fund's policy not to concentrate its investments, the Manager will consider a non-governmental user of facilities financed by private activity bonds as being in a particular industry. That is done even though the bonds are municipal securities, as to which the Fund has no concentration limitation. The Manager categorizes tobacco industry related municipal bonds as either tobacco settlement revenue bonds or tobacco bonds that are subject to appropriation ("STA Bonds"). For purposes of the Funds' industry concentration policies, STA Bonds are considered to be "municipal" bonds, as distinguished from "tobacco" bonds. As municipal bonds, STA Bonds are not within any industry and are not subject to the Funds' industry concentration policies.
Other types of municipal securities that are not considered a part of any "industry" under the Fund's industry concentration policy include: general obligation, government appropriation, municipal leases, special assessment and special tax bonds. Although these types of municipal securities may be related to certain industries, because they are issued by governments or their political subdivisions rather than non-governmental users, these types of municipal securities are not considered a part of an industry for purposes of the Fund's industry concentration policy.
Therefore, the Fund may invest more than 25% of its total assets in these types of municipal securities, which may finance similar types of projects or from which the interest is paid from revenues of similar types of projects. "Similar types of projects" are projects that are related in such a way that economic, business or political developments tend to have the same impact on each similar project. For example, a change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining economic need for the project, would likely affect all similar projects, thereby increasing market risk. Thus, market changes that affect a security issued in connection with one project also would affect securities issued in connection with similar types of projects.
For purposes of the Fund's policy not to concentrate its investments as described above, the Fund has adopted classifications of industries and groups of related industries. These classifications are not fundamental polices.
Disclosure of Portfolio Holdings
While recognizing the importance of providing Fund shareholders with information about their Fund's investments and providing portfolio information to a variety of third parties to assist with the management, distribution and administrative processes, the need for transparency must be balanced against the risk that third parties who gain access to the Fund's portfolio holdings information could attempt to use that information to trade ahead of or against the Fund, which could negatively affect the prices the Fund is able to obtain in portfolio transactions or the availability of the securities that a portfolio manager is trading on the Fund's behalf.
The Fund, the Manager, the Distributor and the Transfer Agent have therefore adopted policies and procedures regarding the dissemination of information about the Fund's portfolio holdings by employees, officers and directors or trustees of the Fund, the Manager, the Distributor and the Transfer Agent. These policies are designed to assure that non-public information about the Fund's portfolio securities holdings is distributed only for a legitimate business purpose, and is done in a manner that (a) conforms to applicable laws and regulations and (b) is designed to prevent that information from being used in a way that could negatively affect the Fund's investment program or enable third parties to use that information in a manner that is harmful to the Fund. It is a violation of the Code of Ethics for any covered person to release holdings in contravention of the portfolio holdings disclosure policies and pro cedures adopted by the Fund.
Portfolio Holdings Disclosure Policies. The Fund, the Manager, the Distributor and the Transfer Agent and their affiliates and subsidiaries, employees, officers, and directors or trustees, shall neither solicit nor accept any compensation or other consideration (including any agreement to maintain assets in the Fund or in other investment companies or accounts managed by the Manager or any affiliated person of the Manager) in connection with the disclosure of the Fund's non-public portfolio holdings. The receipt of investment advisory fees or other fees and compensation paid to the Manager and its subsidiaries pursuant to agreements approved by the Fund's Board shall not be deemed to be "compensation" or "consideration" for these purposes. Until publicly disclosed, the Fund's portfolio holdings are proprietary, confidential business information. After they are publicly disclosed, the Fund's portfolio holdings may be released in any appropriate manner.
The Fund's portfolio holdings information (which may include information on the Fund's entire portfolio of individual securities therein) positions may be released to the following categories of individuals or entities on an ongoing basis, provided that such individual or entity either (1) has signed an agreement to keep such information confidential and not trade on the basis of such information, or (2) as a member of the Fund's Board, or as an employee, officer or director of the Manager, the Distributor, or the Transfer Agent, or of their legal counsel, is subject to fiduciary obligations (a) not to disclose such information except in compliance with the Fund's policies and procedures and (b) not to trade for his or her personal account on the basis of such information.
Month-end lists of the Fund's complete portfolio holdings may be disclosed for legitimate business reasons, no sooner than 5 days after the relevant month end, pursuant to special requests and under limited circumstances discussed below, provided that:
Portfolio holdings information (which may include information on the Fund's entire portfolio or individual securities therein) may be provided by senior officers of the Manager or attorneys on the legal staff of the Manager, Distributor, or Transfer Agent, in the following circumstances:
Portfolio managers and analysts may, subject to the Manager's policies on communications with the press and other media, discuss portfolio information in interviews with members of the media, or in due diligence or similar meetings with clients or prospective purchasers of Fund shares or their financial representatives.
The Fund's shareholders may, under unusual circumstances (such as a lack of liquidity in the Fund's portfolio to meet redemptions), receive redemption proceeds of their Fund shares paid as pro rata shares of securities held in the Fund's portfolio. In such circumstances, disclosure of the Fund's portfolio holdings may be made to such shareholders.
Any permitted release of otherwise non-public portfolio holdings information must be in accordance with the then-current policy on approved methods for communicating confidential information.
The Chief Compliance Officer (the "CCO") of the Fund and the Manager, Distributor, and Transfer Agent shall oversee the compliance by the Manager, Distributor, Transfer Agent, and their personnel with these policies and procedures. At least annually the CCO reports to the Fund's Board any material violation of these policies and procedures during the previous period and makes recommendations to the Board as to any amendments that the CCO believes are necessary and desirable to carry out or improve these policies and procedures.
The Manager and the Fund have entered into ongoing arrangements to make available information about the Fund's portfolio holdings. One or more of the Oppenheimer funds may currently disclose portfolio holdings information based on ongoing arrangements to the following parties:
13D Research |
Exane, Inc. |
Multi-Bank Securities |
1st Discount Brokerage |
Fahnestock |
Murphy & Durieu |
ABG Sundal Collier |
Fidelity Capital Markets |
Natexis Bleichroeder |
ABN Amro |
FMS Bonds, Inc. |
National Bank Financial |
Advisor Asset Management |
Fox-Pitt Kelton Inc. |
Ned Davis Research Group |
Alfa Capital Markets |
Friedman, Billings, Ramsey & Co. |
Needham & Company |
Altrushare |
FTN Financial |
Nomura Securities International |
Auerbach Grayson |
Gabelli & Co. |
Oddo Securities Corporation |
Banco de Brasil Securities LLC |
George K. Baum & Co. |
Oppenheimer & Co. Inc. |
Bank of America Securities LLC |
GMP Securities L.P. |
OTA-Off the Record Research |
Barclays Capital |
Goldman, Sachs & Co. |
Pacific Crest Securities |
Barnard Jacobs Mellet |
Handelsbanken Markets Securities |
Petercam |
Belle Haven Investments |
Hapoalim Securities Bank USA |
Piper Jaffray |
Beltone Financial |
Helvea |
Prager McCarthy & Sealy |
Bergen Capital |
HSBC Securities Inc. |
R. Seelaus & Co. Inc. |
Bernstein |
Hyundai Securities America, Inc. |
Ramirez & Co. Inc. |
BMO Capital Markets |
Intermonte |
Raymond James & Associates |
BNP Paribas |
ISI Group, Inc. |
RBC Capital Markets |
Bradesco Securities, Inc. |
Janco Partners |
Red Capital Markets |
Branch Bank & Trust Capital Markets |
Janney Montgomery Scott LLC |
Redburn Partners |
Cabrera Capital |
Jefferies & Company |
Rice Financial Products Co. |
Canaccord Adams, Inc. |
Jennings Capital Inc. |
Robert W. Baird & Co. |
Canaccord Capital Corp. |
JNK Securities Corp. |
Roosevelt & Cross |
Caris & Co. |
JP Morgan Securities |
Royal Bank of Scotland |
Carnegie |
JPP Eurosecurities |
Samsung Securities Inc. |
Cazenove |
Keefe, Bruyette & Woods, Inc. |
Sandford C. Bernstein & Co. |
Cheuvreux NA |
Keijser Securities N.V. |
Scotia Capital Markets |
Citigroup |
Kempen & Co. USA |
Seattle Northwest Securities |
Citigroup Global Markets |
Kepler Capital Markets |
Securevest Financial |
Cleveland Research |
KeyBanc Capital Markets |
SG Cowen |
CLSA |
Kotak Mahindra Inc. |
Siebert Brandford Shank & Co. |
Cormark Securities |
Lazard Capital Markets |
Sterne Agee |
Cowen and Company, LLC |
Lebenthal & Co. LLC |
Stifel Nicolaus & Co. |
Craig-Hallum Capital Group |
Leerink Swann |
Stone & Youngberg |
Credit Suisse First Boston |
Loop Capital Markets |
SWS Group, Inc. |
Credit Suisse Securities LLC |
M&T Securities |
TD Securities |
Crews & Associates |
Macquarie Securities |
Think Equity Partners |
D.A. Davidson & Company |
Madison Williams and Company LLC |
Troika Dialog |
Dahlman Rose & Co. |
MainFirst Bank AG |
UBS |
Daiwa Securities |
Mediobanca Securities USA LLC |
UOB Kay Hian Inc. |
Davy |
Merrill Lynch & Company, Inc. |
US Bancorp |
Desjardins Securities, Inc. |
Merrion Stockbrokers Ltd. |
Vining & Sparks |
Deutsche Bank Securities Inc. |
Mesirow Financial |
Vontobel Securities Ltd. |
Dougherty & Co. |
MF Global Securities, Ltd. |
Wachovia |
Duncan Williams, Inc. |
Mitsubishi UFJ Securities Inc. |
Wedbush Morgan Securities |
Dundee Securities Inc. |
Mizuho Securities USA, Inc. |
Wells Fargo Securities |
DZ Financial Markets |
Morgan Keegan |
WH Mell & Associates |
Emmet & Co., Inc. |
Morgan Stanley Smith Barney |
William Blair & Co. |
Empirical Research Partners |
Motilal Oswal Securities Ltd. |
Ziegler Capital Markets Group |
Enam Securities PVT Ltd. |
MR Beal & Co. |
Organization and History. The Fund is an open-end, diversified management investment company with an unlimited number of authorized shares of beneficial interest. The Fund was organized as a New York corporation in June 1965 and reorganized as Massachusetts business trust in February 1991.
Classes of Shares. The Fund's Board of Trustees (the "Board") is authorized, without shareholder approval, to:
The Fund currently has four classes of shares: Class A, Class B, Class C and Class Y. All classes invest in the same investment portfolio. Only certain institutional investors may purchase Class Y shares. Each class of shares:
Each share of each class:
Class Y Share Availability.
Shareholder Meetings. As a Massachusetts business trust, the Fund is not required to hold regular annual meetings of shareholders and does not plan to do so. The Fund may hold shareholder meetings from time to time, however, on important matters or when required to do so by the Investment Company Act, or other applicable law.
Shareholders have the right, upon a vote or declaration in writing of two-thirds of the outstanding shares of the Fund, to remove a Trustee or to take other action described in the Fund's Declaration of Trust. The Trustees will call a meeting of shareholders to vote on the removal of a Trustee upon the written request of the record holders of 10% of its outstanding shares.
If the Trustees receive a request from at least 10 shareholders stating that they wish to communicate with other shareholders to request a meeting to remove a Trustee, the Trustees will then either make the Fund's shareholder list available to the applicants or mail their communication to all other shareholders at the applicants' expense. The shareholders making the request must have been shareholders for at least six months and must hold shares of the Fund valued at $25,000 or more or constituting at least 1% of the Fund's outstanding shares. The Trustees may also take other action as permitted by the Investment Company Act.
Shareholder and Trustee Liability. The Fund's Declaration of Trust contains an express disclaimer of shareholder and Trustee liability for the Fund's obligations. It also provides for indemnification and reimbursement of expenses out of the Fund's property for any shareholder held personally liable for its obligations. The Declaration of Trust also states that, upon request, the Fund shall assume the defense of any claim made against a shareholder for any act or obligation of the Fund and shall satisfy any judgment on that claim. The Fund's contractual arrangements state that any person doing business with the Fund (and each shareholder of the Fund) agrees under its Declaration of Trust to look solely to the assets of the Fund for satisfaction of any claim or demand that may arise out of any dealings with the Fund. Additionally, the Trustees shall have no personal liability to any such person, to the extent permit ted by law. Although Massachusetts law permits a shareholder of a business trust (such as the Fund) to be held personally liable as a "partner" under certain circumstances, the risk that a Fund shareholder will incur financial loss from being held liable as a "partner" of the Fund is limited to the relatively remote circumstances in which the Fund would be unable to meet its obligations.
Board of Trustees and Oversight Committees
The Fund is governed by a Board of Trustees, which is responsible for protecting the interests of shareholders under Massachusetts and Federal law. The Board is led by Brian F. Wruble, an independent trustee, who is not an "interested person" of the Fund, as that term is defined in the Investment Company Act of 1940. The Board meets periodically throughout the year to oversee the Fund's activities, review its performance, oversee the potential conflicts that could affect the Fund, and review the actions of the Manager. The Board has an Audit Committee, a Regulatory & Oversight Committee and a Governance Committee. Each Committee is comprised solely of Trustees who are not "interested persons" under the Investment Company Act (the "Independent Trustees"). Mr. Wruble's practice is to attend all meetings of each of the three Committees of the Board where he participates in deliberation but does not have a vote.
During the Fund's fiscal year ended December 31, 2010, the Audit Committee held 4 meetings, the Regulatory & Oversight Committee held 5 meetings and the Governance Committee held 4 meetings.
The members of the Audit Committee are David K. Downes (Chairman), Phillip A. Griffiths, Mary F. Miller, Joseph M. Wikler and Peter I. Wold. The Audit Committee selects an independent registered public accounting firm (also referred to as the "independent Auditors"). Other main functions of the Audit Committee outlined in the Audit Committee Charter, include, but are not limited to: (i) reviewing the scope and results of financial statement audits and the audit fees charged; (ii) reviewing reports from the Fund's independent Auditors regarding the Fund's internal accounting procedures and controls; (iii) reviewing reports from the Manager's Internal Audit Department; (iv) maintaining a separate line of communication between the Fund's independent Auditors and the Independent Trustees/Directors; (v) reviewing the independence of the Fund's independent Auditors; and (vi) approving in advance ;the provision of any audit or non-audit services by the Fund's independent Auditors, including tax services, that are not prohibited by the Sarbanes-Oxley Act, to the Fund, the Manager and certain affiliates of the Manager. The Audit Committee also reviews reports concerning the valuation of certain investments.
The members of the Regulatory & Oversight Committee are Matthew P. Fink (Chairman), David K. Downes, Phillip A. Griffiths, Joel W. Motley, Mary Ann Tynan and Joseph M. Wikler. The Regulatory & Oversight Committee evaluates and reports to the Board on the Fund's contractual arrangements, including the Investment Advisory and Distribution Agreements, Transfer Agency and Shareholder Service Agreements and custodian agreements as well as the policies and procedures adopted by the Fund to comply with the Investment Company Act and other applicable law. The Regulatory & Oversight Committee also reviews reports from the Manager's Risk Management Department and Chief Compliance Officer among other duties as set forth in the Regulatory & Oversight Committee's Charter. These reports, and others concerning investment, operational and other risks to the Funds are shared with, and discussed by, the full Bo ard.
The members of the Governance Committee are Joel W. Motley (Chairman), Matthew P. Fink, Mary F. Miller, Mary Ann Tynan and Peter I. Wold. The Governance Committee reviews the Fund's governance guidelines, the adequacy of the Fund's Codes of Ethics, and develops qualification criteria for Board members consistent with the Fund's governance guidelines, provides the Board with recommendations for voting portfolio securities held by the Fund, monitors the Fund's proxy voting, and coordinates with organizations representing the independent directors of mutual funds among other duties set forth in the Governance Committee's Charter.
The Governance Committee's functions also include the nomination of Trustees/Directors, including Independent Trustees/Directors, for election to the Board. The full Board elects new Trustees/Directors except for those instances when a shareholder vote is required.
The Governance Committee will consider nominees recommended by Independent Trustees/Directors or recommended by any other Board members including Board members affiliated with the Fund's Manager. The Governance Committee may consider the advice and recommendation of the Manager and its affiliates in selecting nominees, but need not do so. Upon Board approval, the Governance Committee may retain an executive search firm to assist in screening potential candidates and may also use the services of legal, financial, or other external counsel that it deems necessary or desirable in the screening process. To date, the Governance Committee has been able to identify from its own resources an ample number of qualified candidates. However, under the current policy of the Board, if the Board determines that a vacancy exists or is likely to exist, the Governance Committee will include candidates recommended by the Fund's shareholders in its consideration of nominees.
Shareholders wishing to submit a nominee for election to the Board may do so by mailing their submission to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008, to the attention of the Board of Trustees/Directors of the applicable Fund, c/o the Secretary of the Fund. Submissions should, at a minimum, be accompanied by the following: (1) the name, address, and business, educational, and/or other pertinent background of the person being recommended; (2) a statement concerning whether the person is an "interested person" as defined in the Investment Company Act; (3) any other information that the Fund would be required to include in a proxy statement concerning the person if he or she was nominated; and (4) the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that pe rson held Fund shares. Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Manager) would be deemed an "interested person" under the Investment Company Act. 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."
The Governance Committee has not established specific qualifications that it believes must be met by a nominee. In evaluating nominees, the Governance 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; and whether the individual would be deemed an "audit committee financial expert" within the meaning of applicable SEC rules. The Governance Committee also considers whether the individual's background, skills, and experience will complement, and add to the diversity of, the background, skills, and experience of other Trustees/Directors, and will contribute to the Board's deliberations. There is no difference in the manner in which the Governance Committee evaluates a nominee based on whether the nominee is recommended by a shareholder. Candidates are expected to provide a mix of a ttributes, experience, perspective and skills necessary to effectively advance the interests of shareholders.
Below is a brief discussion of the specific experience, qualifications, attributes or skills of each Board member that led the Board to conclude that he or she should serve as a Trustee/Director of the Fund.
Each independent trustee/director has served on the Board for the number of years listed below, during the course of which he or she has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Board's deliberations. Each Trustee's/Director's outside professional experience is outlined in the table of Biographical Information, below.
Trustees and Officers of the Fund
Except for Mr. Glavin, each of the Trustees is an Independent Trustee. All of the Trustees are also Trustees of the following Oppenheimer funds (referred to as "New York Board Funds"):
Limited Term New York Municipal Fund |
Oppenheimer Quest International Value Fund |
Oppenheimer Absolute Return Fund |
Oppenheimer Real Estate Fund |
Oppenheimer AMT-Free Municipals |
Oppenheimer Rising Dividends Fund |
Oppenheimer AMT-Free New York Municipals |
Oppenheimer Rochester Arizona Municipal Fund |
Oppenheimer Balanced Fund |
Oppenheimer Rochester Intermediate Term Municipal Fund |
Oppenheimer Baring SMA International Fund |
Oppenheimer Rochester Maryland Municipal Fund |
Oppenheimer California Municipal Fund |
Oppenheimer Rochester Massachusetts Municipal Fund |
Oppenheimer Capital Appreciation Fund |
Oppenheimer Rochester Michigan Municipal Fund |
Oppenheimer Developing Markets Fund |
Oppenheimer Rochester Minnesota Municipal Fund |
Oppenheimer Discovery Fund |
Oppenheimer Rochester North Carolina Municipal Fund |
Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Rochester Ohio Municipal Fund |
Oppenheimer Global Allocation Fund |
Oppenheimer Rochester Short Term Municipal Fund |
Oppenheimer Global Fund |
Oppenheimer Rochester Virginia Municipal Fund |
Oppenheimer Global Opportunities Fund |
Oppenheimer Select Value Fund |
Oppenheimer Global Value Fund |
Oppenheimer Series Fund, Inc. |
Oppenheimer Gold & Special Minerals Fund |
Oppenheimer Small- & Mid- Cap Growth Fund |
Oppenheimer Institutional Money Market Fund |
Oppenheimer Small- & Mid- Cap Value Fund |
Oppenheimer International Diversified Fund |
Oppenheimer Transition 2010 Fund |
Oppenheimer International Growth Fund |
Oppenheimer Transition 2015 Fund |
Oppenheimer International Small Company Fund |
Oppenheimer Transition 2020 Fund |
Oppenheimer Limited Term California Municipal Fund |
Oppenheimer Transition 2025 Fund |
Oppenheimer Limited Term Municipal Fund |
Oppenheimer Transition 2030 Fund |
Oppenheimer Master International Value Fund, LLC |
Oppenheimer Transition 2040 Fund |
Oppenheimer Money Market Fund, Inc. |
Oppenheimer Transition 2050 Fund |
Oppenheimer Multi-State Municipal Trust |
Oppenheimer U.S. Government Trust |
Oppenheimer Portfolio Series |
Rochester Fund Municipals |
Oppenheimer Quest Opportunity Value Fund |
Messrs. Loughran, Cottier, Willis, DeMitry, Camarella, Stein, Gabinet, Glavin, Keffer, Petersen, Vandehey, Wixted, Zack, Legg and Edwards and Mss. Bloomberg, Ives, Ruffle and Bullington, who are officers of the Fund, hold the same offices with one or more of the other New York Board Funds.
Present or former officers, directors, trustees and employees (and their immediate family members) of the Fund, the Manager and its affiliates, and retirement plans established by them for their employees are permitted to purchase Class A shares, at net asset value without a sales charge, or Y shares of the Fund and of other Oppenheimer funds that offer those share Classes. The sales charge on Class A shares is waived for that group because of the reduced sales efforts realized by the Distributor.
As of March 11, 2011 the Trustees/Directors and officers of the Fund, as a group, owned less than 1% of any class of shares of the Fund beneficially or of record.
The foregoing statement does not reflect ownership of shares held of record by an employee benefit plan for employees of the Manager, other than the shares beneficially owned under that plan by the officers of the Fund. In addition, none of the Independent Trustees/Directors (nor any of their immediate family members) owns securities of either the Manager or the Distributor or of any entity directly or indirectly controlling, controlled by or under common control with the Manager or the Distributor.
Biographical Information. The Trustees and officers, their positions with the Fund, length of service in such position(s) and principal occupations and business affiliations during at least the past five years are listed in the charts below. The address of each Independent Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.
Each Independent Trustee has served the Fund in the following capacities from the following dates: |
||
Position(s) |
Length of Service |
|
Brian F. Wruble |
Board Chairman & Trustee |
Since 2007 & 2001 |
David K. Downes |
Trustee |
Since 2005 |
Matthew P. Fink |
Trustee |
Since 2009 |
Phillip A. Griffiths |
Trustee |
Since 2009 |
Mary F. Miller |
Trustee |
Since 2009 |
Joel W. Motley |
Trustee |
Since 2009 |
Mary Ann Tynan |
Trustee |
Since 2009 |
Joseph M. Wikler |
Trustee |
Since 2009 |
Peter I. Wold |
Trustee |
Since 2009 |
Independent Trustees |
||
Name, Age, Position(s) |
Principal Occupation(s) During the Past 5 Years; Other Trusteeship/Directorships Held |
Portfolios Overseen in Fund Complex |
Brian F. Wruble (67) |
Chairman (since August 2007) and Trustee (since August 1991) of the Board of Trustees of The Jackson Laboratory (non-profit); Director of Special Value Opportunities Fund, LLC (registered investment company) (affiliate of the Manager's parent company) (since September 2004); Member of Zurich Financial Investment Management Advisory Council (insurance) (since 2004); Treasurer (since 2007) and Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); General Partner of Odyssey Partners, L.P. (hedge fund) (September 1995-December 2007); Special Limited Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September 2004). Mr. Wruble has served on the Boards of certain Oppenheimer funds since April 2001, during which time he has become familiar with the Fun d's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
David K. Downes (71) |
Director of THL Credit Inc. (since June 2009); Independent Chairman GSK Employee Benefit Trust (since April 2006); Trustee of Employee Trusts (since January 2006); Chief Executive Officer and Board Member of Community Capital Management (investment management company) (since January 2004); President of The Community Reinvestment Act Qualified Investment Fund (investment management company) (since 2004); Director of Internet Capital Group (information technology company) (since October 2003); Director of Correctnet (January 2006-2007); Independent Chairman of the Board of Trustees of Quaker Investment Trust (registered investment company) (2004-2007); Chief Operating Officer and Chief Financial Officer of Lincoln National Investment Companies, Inc. (subsidiary of Lincoln National Corporation, a publicly traded company) and Delaware Investments U.S., Inc. (investment management subsidiary of Lincoln National Corporation) (1993-2003); President, Chief Executive Officer and Trustee of Delaware Investment Family of Funds (1993-2003); President and Board Member of Lincoln National Convertible Securities Funds, Inc. and the Lincoln National Income Funds, TDC (1993-2003); Chairman and Chief Executive Officer of Retirement Financial Services, Inc. (registered transfer agent and investment adviser and subsidiary of Delaware Investments U.S., Inc.) (1993-2003); President and Chief Executive Officer of Delaware Service Company, Inc. (1995-2003); Chief Administrative Officer, Chief Financial Officer, Vice Chairman and Director of Equitable Capital Management Corporation (investment subsidiary of Equitable Life Assurance Society) (1985-1992); Corporate Controller of Merrill Lynch Company (financial ser vices holding company) (1977-1985); held the following positions at the Colonial Penn Group, Inc. (insurance company): Corporate Budget Director (1974-1977), Assistant Treasurer (1972-1974) and Director of Corporate Taxes (1969-1972); held the following positions at Price Waterhouse Company (financial services firm): Tax Manager (1967-1969), Tax Senior (1965-1967) and Staff Accountant (1963-1965); United States Marine Corps (1957-1959). Mr. Downes has served on the Boards of certain Oppenheimer funds since December 2005, during which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Matthew P. Fink (70) |
Trustee of the Committee for Economic Development (policy research foundation) (since 2005); Director of ICI Education Foundation (education 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). Mr. Fink has served on the Boards of ceratin Oppenheimer funds since January 2005, during which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Phillip A. Griffiths (72) |
Fellow of the Carnegie Corporation (since 2007); Distinguished Presidential Fellow for International Affairs (since 2002) and Member (since 1979) of the National Academy of Sciences; Council on Foreign Relations (since 2002); Foreign Associate of Third World Academy of Sciences (since 2002); Director of GSI Lumonics Inc. (precision technology products company) (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); Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke University (1983-1991). Mr. Griffiths has served on the Boards of certain Oppenheimer funds since June 1999, d uring which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Mary F. Miller (68) |
Trustee of International House (not-for-profit) (since June 2007); Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998); and Senior Vice President and General Auditor of American Express Company (financial services company) (July 1998-February 2003). Ms. Miller has served on the Boards of certain Oppenheimer funds since August 2004, during which time she has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Joel W. Motley (58) |
Managing Director of Public Capital Advisors, LLC (privately-held financial advisor) (since January 2006); Managing Director of Carmona Motley, Inc. (privately-held financial advisor) (since January 2002); Director of Columbia Equity Financial Corp. (privately-held financial advisor) (2002-2007); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial advisor) (January 1998-December 2001); Member of the Finance and Budget Committee of the Council on Foreign Relations, Chairman of the Investment Committee of the Episcopal Church of America, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley. Mr. Motley has served on the Boards of certain Oppenheimer funds since October 2002, during which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Mary Ann Tynan (65) |
Vice Chair of Board of Trustees of Brigham and Women's/Faulkner Hospitals (non-profit hospital) (since 2000); Chair of Board of Directors of Faulkner Hospital (non-profit hospital) (since 1990); Member of Audit and Compliance Committee of Partners Health Care System (non-profit) (since 2004); Board of Trustees of Middlesex School (educational institution) (since 1994); Board of Directors of Idealswork, Inc. (financial services provider) (since 2003); Partner, Senior Vice President and Director of Regulatory Affairs of Wellington Management Company, LLP (global investment manager) (1976-2002); Vice President and Corporate Secretary, John Hancock Advisers, Inc. (mutual fund investment adviser) (1970-1976). Ms. Tynan has served on the Boards of certain Oppenheimer funds since October 2008, during which time she has become fam iliar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Joseph M. Wikler (69) |
Director of C-TASC (bio-statistics services) (since 2007); Director of the following medical device companies: Medintec (since 1992) and Cathco (since 1996); Member of the Investment Committee of the Associated Jewish Charities of Baltimore (since 1994); Director of Lakes Environmental Association (environmental protection organization) (1996-2008); Director of Fortis/Hartford mutual funds (1994-December 2001). Mr. Wikler has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Boards' deliberations. |
59 |
Peter I. Wold (63) |
Director of Arch Coal, Inc. (since 2010); Director and Chairman of Wyoming Enhanced Oil Recovery Institute Commission (enhanced oil recovery study) (since 2004); President of Wold Oil Properties, Inc. (oil and gas exploration and production company) (since 1994); Vice President of American Talc Company, Inc. (talc mining and milling) (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). Mr. Wold has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to t he Boards' deliberations. |
59 |
Mr. Glavin has served as an Interested Trustee of the Fund since December 2009. Mr. Glavin is an "Interested Trustee" because he is affiliated with the Manager by virtue of his positions as an officer and director of the Manager, and as a shareholder of its parent company. Both as a Trustee and as an officer, he serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Glavin's address is Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008.
Interested Trustee and Officer |
||
Name, Age, Position(s) |
Principal Occupation(s) During the Past 5 |
Portfolios Overseen |
William F. Glavin Jr. (52) Trustee, President and Principal Executive Officer |
Chairman of the Manager (since December 2009); Chief Executive Officer and Director of the Manager (since January 2009); President of the Manager (since May 2009); Director of Oppenheimer Acquisition Corp. ("OAC") (the Manager's parent holding company) (since June 2009); Executive Vice President (March 2006 - February 2009) and Chief Operating Officer (July 2007 - February 2009) of Massachusetts Mutual Life Insurance Company (OAC's parent company); Director (May 2004 - March 2006) and Chief Operating Officer and Chief Compliance Officer (May 2004 - January 2005), President (January 2005 - March 2006) and Chief Executive Officer (June 2005 - March 2006) of Babson Capital Management LLC; Director (March 2005 - March 2006), President (May 2003 - March 2006) and Chief Compliance Officer (July 2005 - March 2006) of Babson Capit al Securities, Inc. (a broker-dealer); President (May 2003 - March 2006) of Babson Investment Company, Inc.; Director (May 2004 - August 2006) of Babson Capital Europe Limited; Director (May 2004 - October 2006) of Babson Capital Guernsey Limited; Director (May 2004 - March 2006) of Babson Capital Management LLC; Non-Executive Director (March 2005 - March 2007) of Baring Asset Management Limited; Director (February 2005 - June 2006) Baring Pension Trustees Limited; Director and Treasurer (December 2003 - November 2006) of Charter Oak Capital Management, Inc.; Director (May 2006 - September 2006) of C.M. Benefit Insurance Company; Director (May 2008 - June 2009) and Executive Vice President (June 2007 - July 2009) of C.M. Life Insurance Company; President (March 2006 - May 2007) of MassMutual Assignment Company; Director (January 2005 - December 2006), Deputy Chairman (Ma rch 2005 - December 2006) and President (February 2005 - March 2005) of MassMutual Holdings (Bermuda) Limited; Director (May 2008 - June 2009) and Executive Vice President (June 2007 - July 2009) of MML Bay State Life Insurance Company; Chief Executive Officer and President (April 2007 - January 2009) of MML Distributors, LLC.; and Chairman (March 2006 -December 2008) and Chief Executive Officer (May 2007 - December 2008) of MML Investors Services, Inc. Mr. Glavin has served on the Board since December 2009, during which time he has become familiar with the Fund's (and other Oppenheimer funds') financial, accounting, regulatory and investment matters and has contributed to the Board's deliberations. |
96 |
The addresses of the officers in the chart below are as follows: for Messrs. Loughran, Cottier, Willis, Camarella, DeMitry, Stein, Gabinet, Glavin, Zack, Keffer and Edwards and Mss. Bloomberg and Ruffle, Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008; for Messrs. Petersen, Vandehey, Legg and Wixted and Mss. Bullington and Ives, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each officer serves for an annual term or until his or her resignation, retirement, death or removal.
Each of the officers has served the Fund in the following capacities from the following dates: |
||
Position(s) |
Length of Service |
|
Daniel G. Loughran |
Vice President and Senior Portfolio Manager |
Since 2005; 1999 |
Scott S. Cottier |
Vice President and Senior Portfolio Manager |
Since 2005; 2002 |
Troy E. Willis |
Vice President and Senior Portfolio Manager |
Since 2005; 2003 |
Mark R. DeMitry |
Vice President and Senior Portfolio Manager |
Since 2009; 2006 |
Michael L. Camarella |
Vice President and Senior Portfolio Manager |
Since 2009; 2008 |
Richard A. Stein |
Vice President |
Since 2007 |
William F. Glavin, Jr. |
President and Principal Executive Officer |
Since 2009 |
Thomas W. Keffer |
Chief Business Officer |
Since 2009 |
Mark S. Vandehey |
Vice President and Chief Compliance Officer |
Since 2004 |
Robert G. Zack |
Vice President |
Since 2011 |
Brian W. Wixted |
Treasurer and Principal Financial & |
Since 2004 |
Brian S. Peterson |
Assistant Treasurer |
Since 2004 |
Stephanie J. Bullington |
Assistant Treasurer |
Since 2008 |
Arthur S. Gabinet |
Secretary |
Since 2011 |
Kathleen T. Ives |
Assistant Secretary |
Since 2001 |
Lisa I. Bloomberg |
Assistant Secretary |
Since 2004 |
Taylor V. Edwards |
Assistant Secretary |
Since 2008 |
Randy G. Legg |
Assistant Secretary |
Since 2008 |
Adrienne M. Ruffle |
Assistant Secretary |
Since 2008 |
Other Information about the Officers of the Fund |
||
Name, Age, Position(s) |
Principal Occupation(s) During the Past 5 Years |
Portfolios Overseen in Fund Complex |
Daniel G. Loughran (47) Vice President and Senior Portfolio Manager |
Senior Vice President of the Manager (since July 2007); Vice President of the Manager (April 2001-June 2007); Team leader, a Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds. |
20 |
Scott S. Cottier (39) Vice President and Senior Portfolio Manager |
Vice President and Senior Portfolio Manager of the Manager (since September 2002); Portfolio Manager and trader at Victory Capital Management (1999-2002); Senior Portfolio Manager, an officer and trader for the Fund and other Oppenheimer funds. |
20 |
Troy E. Willis (38) Vice President and Senior Portfolio Manager |
Vice President of the Manager (since July 2009); Assistant Vice President of the Manager (July 2005-June 2009); Senior Portfolio Manager with the Manager (since January 2006); A corporate attorney for Southern Resource Group (1999-2003); Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds. |
20 |
Mark R. DeMitry (35) Vice President and Senior Portfolio Manager |
Vice President and Senior Portfolio Manager of the Manager (since July 2009); Associate Portfolio Manager (September 2006-June 2009); Research Analyst of the Manager (June 2003-September 2006); Credit Analyst of the Manager (July 2001-May 2003); Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds. |
20 |
Michael L. Camarella (34) Vice President and Senior Portfolio Manager |
Vice President of the Manager (since January 2011); Assistant Vice President of the Manager (July 2009-December 2010); Senior Portfolio Manager of the Manager (since January 2011); Associate Portfolio Manager of the Manager (January 2008-January 2011); Research Analyst of the Manager (April 2006 - December 2007); Credit Analyst of the Manager (June 2003 - March 2006). He is a Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds. |
20 |
Richard A. Stein (53) Vice President |
Director of the Rochester Credit Analysis team (since March 2004) and a Vice President of the Manager (since 1997); head of Rochester's Credit Analysis team (since 1993). |
20 |
Name, Age, Position(s) |
Principal Occupation(s) During the Past 5 Years |
Portfolios Overseen |
Thomas W. Keffer (55) |
Senior Vice President of the Manager (since March 1997); Director of Investment Brand Management of the Manager (since November 1997); Senior Vice President of OppenheimerFunds Distributor, Inc. (since December 1997). |
96 |
Mark S. Vandehey (60) |
Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset Management and Shareholder Services, Inc. (since March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder Services, Inc. (since June 1983). |
96 |
Brian W. Wixted (51) |
Senior Vice President of the Manager (since March 1999); Treasurer of the Manager and the following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer Partnership Holdings, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since June 2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant Treasurer of the following: OAC (March 1999-June 2008). |
96 |
Robert G. Zack (62) |
Vice President, Secretary and General Counsel of OAC (since November 2001); Executive Vice President (since January 2004) and General Counsel (from March 2002 to December 2010) of the Manager; General Counsel of the Distributor (from December 2001 to December 2010); General Counsel of Centennial Asset Management Corporation (from December 2001 to December 2010); Senior Vice President and General Counsel of HarbourView Asset Management Corporation (from December 2001 to December 2010); Assistant Secretary (from September 1997 to December 2010) and Director (from November 2001 to December 2010) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (from December 2002 to December 2010); Director of Oppenheimer Real Asset Management, Inc. (from No vember 2001 to December 2010); Senior Vice President, General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (from December 2001 to December 2010); Senior Vice President, General Counsel and Director of OFI Private Investments, Inc. (from November 2001 to December 2010); Executive Vice President, General Counsel and Director of OFI Trust Company (since November 2001); Vice President of OppenheimerFunds Legacy Program (from June 2003 to December 2010); Senior Vice President and General Counsel of OFI Institutional Asset Management, Inc. (from November 2001 to December 2010). |
96 |
Arthur S. Gabinet (52) |
Executive Vice President (since May 2010) and General Counsel (since January 2011) of the Manager; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (since January 2011); Executive Vice President and General Counsel of HarbourView Asset Management Corporation (since January 2011); Assistant Secretary (since January 2011) and Director (since January 2011) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since January 2011); Director of Oppenheimer Real Asset Management, Inc. (since January 2011); Executive Vice President and General Counsel of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President and General Couns el of OFI Private Investments, Inc. (since January 2011); Vice President of OppenheimerFunds Legacy Program (since January 2011); Executive Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Manager (May 2010-December 2010); Principal, The Vanguard Group (November 2005-April 2010); District Administrator, U.S. Securities and Exchange Commission (January 2003-October 2005). |
96 |
Brian Petersen (40) |
Vice President of the Manager (since February 2007); Assistant Vice President of the Manager (August 2002-February 2007); Manager/Financial Product Accounting of the Manager (November 1998-July 2002). |
96 |
Stephanie Bullington (34) |
Vice President of the Manager (since January 2010); Assistant Vice President of the Manager (October 2005-January 2010); Assistant Vice President of ButterField Fund Services (Bermuda) Limited, part of The Bank of N.T. Butterfield Son Limited (Butterfield) (February 2004-June 2005). |
96 |
Kathleen T. Ives (45) |
Senior Vice President (since May 2009), Deputy General Counsel (since May 2008) and Assistant Secretary (since October 2003) of the Manager; Vice President (since 1999) and Assistant Secretary (since October 2003) of the Distributor; Assistant 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); Vice President of the Manager (June 1998-May 2009); Senior Counsel of the Manager (October 2003-May 2008). |
96 |
Lisa I. Bloomberg (43) |
Senior Vice President (since February 2010) and Deputy General Counsel (since May 2008) of the Manager; Vice President (May 2004-January 2010) and Associate Counsel of the Manager (May 2004-May 2008); First Vice President (April 2001-April 2004), Associate General Counsel (December 2000-April 2004) of UBS Financial Services, Inc. |
96 |
Taylor V. Edwards (43) |
Vice President (since February 2007) and Associate Counsel (since May 2009) of the Manager; Assistant Vice President (January 2006-January 2007) and Assistant Counsel (January 2006-April 2009) of the Manager; Associate at Dechert LLP (September 2000-December 2005). |
96 |
Randy G. Legg (45) |
Vice President (since June 2005) and Senior Counsel (since March 2011) of the Manager; Associate Counsel (January 2007-March 2011) of the Manager. |
96 |
Adrienne M. Ruffle (33) |
Vice President (since February 2007) and Associate Counsel (since May 2009) of the Manager; Assistant Vice President (February 2005-January 2007) and Assistant Counsel (February 2005-April 2009) of the Manager; Associate (September 2002-February 2005) at Sidley Austin LLP. |
96 |
Trustees Share Ownership. The chart below shows information about each Trustee's beneficial share ownership in the Fund and in all of the registered investment companies that the Trustee oversees in the Oppenheimer family of funds ("Supervised Funds").
As of December 31, 2010 |
||
Dollar Range of Shares Beneficially Owned in the Fund |
Aggregate Dollar Range of Shares Beneficially Owned in Supervised Funds |
|
Independent Trustees |
||
Brian Wruble |
None |
Over $100,000 |
David K. Downes |
None |
Over $100,000 |
Matthew P. Fink |
None |
Over $100,000 |
Phillip A. Griffiths |
None |
Over $100,000 |
Mary F. Miller |
None |
Over $100,000 |
Joel W. Motley |
None |
Over $100,000 |
Mary Ann Tynan |
None |
Over $100,000 |
Joseph M. Wikler |
None |
Over $100,000 |
Peter I. Wold |
None |
Over $100,000 |
Interested Trustee |
||
William F. Glavin, Jr. |
None |
Over $100,000 |
Remuneration of the Officers and Trustees. The officers of the Fund, who are affiliated with the Manager, receive no salary or fee from the Fund. The Independent Trustees' total compensation from the Fund and fund complex represents compensation for serving as a Trustee and member of a committee (if applicable) of the Boards of the Fund and other funds in the OppenheimerFunds complex during the calendar year ended December 31, 2010.
Name and Other Fund Position(s) (as applicable) |
Aggregate Compensation From the Fund1 |
Compensation From the Fund and Fund Complex |
Fiscal Year Ended December 31, 2010 |
Year Ended December 31, 2010 |
|
Brian F. Wruble |
$21,302 |
$234,000 |
Chairman of the Board |
||
David Downes |
$17,257 |
$189,000 |
Audit Committee Chairman and Regulatory & Oversight Committee Member |
||
Matthew P. Fink |
$17,257 |
$189,000 |
Regulatory & Oversight Committee Chairman and Governance Committee Member |
||
Phillip A. Griffiths |
$19,1702 |
$210,280 |
Audit Committee Member and Regulatory & Oversight Committee Member |
||
Mary F. Miller |
$16,1793 |
$177,000 |
Audit Committee Member and Governance Committee Member |
||
Joel W. Motley |
$17,2574 |
$189,000 |
Governance Committee Chairman and Regulatory & Oversight Committee Member |
||
Mary Ann Tynan |
$16,179 |
$183,076 |
Regulatory & Oversight Committee Member and Governance Committee Member |
||
Joseph M. Wikler |
$16,1795 |
$177,000 |
Audit Committee Member and Regulatory & Oversight Committee Member |
||
Peter I. Wold |
$16,1796 |
$177,000 |
Audit Committee Member and Governance Committee Member |
1. "Aggregate Compensation From the Fund" includes fees and amounts deferred under the "Compensation Deferral Plan" (described below), if any.
2. Includes $19,170 deferred by Mr. Griffiths under the Compensation Deferral Plan.
3. Includes $8,089 deferred by Ms. Miller under the Compensation Deferral Plan.
4. Includes $1,726 deferred by Mr. Motley under the Compensation Deferral Plan.
5. Includes $8,089 deferred by Mr. Wikler under the Compensation Deferral Plan.
6. Includes $16,179 deferred by Mr. Wold under the Compensation Deferral Plan.
Retirement Plan for Trustees. The New York Board Funds adopted a retirement plan that provided for payments to retired Independent Trustees of up to 80% of the average compensation paid during a Trustee's five years of service in which the highest compensation was received. A Trustee needed to serve as director or trustee for any of the New York Board Funds for at least seven years to be eligible for retirement plan benefits and to serve for at least 15 years to be eligible for the maximum benefit. The Board discontinued the retirement plan with respect to new accruals as of December 31, 2006 (the "Freeze Date"). Each Trustee that continued to serve on the Board of any of the New York Board Funds after the Freeze Date (each such Trustee a "Continuing Board Member") was able to elect to have his accrued benefit as of that date (i.e., an amount equivalent to the actuarial present value of his bene fit under the retirement plan as of the Freeze Date) (i) paid at once or over time, (ii) rolled into the Compensation Deferral Plan described below, or (iii) in the case of Continuing Board Members having at least seven years of service as of the Freeze Date paid in the form of an annual benefit or joint and survivor annual benefit. The Board determined to freeze the retirement plan after considering a recent trend among corporate boards of directors to forego retirement plan payments in favor of current compensation.
Compensation Deferral Plan. The Board of Trustees has adopted a Compensation Deferral Plan for Independent Trustees that enables them to elect to defer receipt of all or a portion of the annual fees they are entitled to receive from certain Funds. Under the plan, the compensation deferred by a Trustee is periodically adjusted as though an equivalent amount had been invested in shares of one or more Oppenheimer funds selected by the Trustee. The amount paid to the Trustee under the plan will be determined based on the amount of compensation deferred and the performance of the selected funds.
Deferral of the Trustees' fees under the plan will not materially affect a Fund's assets, liabilities or net income per share. The plan will not obligate a fund to retain the services of any Trustee or to pay any particular level of compensation to any Trustee. Pursuant to an Order issued by the SEC, a fund may invest in the funds selected by the Trustee under the plan without shareholder approval for the limited purpose of determining the value of the Trustee's deferred compensation account.
Major Shareholders. As of March 11, 2011 the only persons or entities who owned of record, or who were known by the Fund to own beneficially, 5% or more of any class of the Fund's outstanding shares were:
Name |
Address |
% Owned |
Share Class |
Pershing LLC |
1 Pershing Plaza, Jersey City, NJ 07399-0001 |
14.54 |
A |
MLPF&S For the Sole Benefit of its Customers, ATTN Fund Admin/975G2 |
4800 Deer Lake Dr. E Fl. 3, Jacksonville FL 32246-6484 |
9.01 |
A |
Citigroup Global Mkts Inc., ATTN Cindy Tempesta 7th Fl. |
333 West 34th St., New York NY 10001-2483 |
7.25 |
A |
UBS WM USA, OMNI Account M/F, ATTN: Department Manager |
499 Washington Blvd Fl. 9, Jersey City NJ 07310-2055 |
5.62 |
A |
Morgan Stanley & Co., ATTN Mutual Funds Operations |
Harborside Financial Center, Plaza II 3rd Fl., Jersey City NJ 07311 |
5.00 |
A |
Pershing LLC |
1 Pershing Plaza, Jersey City, NJ 07399-0001 |
22.17 |
B |
MLPF&S For the Sole Benefit of its Customers, ATTN Fund Administration |
4800 Deer Lake Dr. E Fl. 3, Jacksonville FL 32246-6484 |
9.31 |
B |
MLPF&S For the Sole Benefit of its Customers, ATTN Fund Admin |
4800 Deer Lake Dr. E Fl. 3, Jacksonville FL 32246-6484 |
18.48 |
C |
Pershing LLC |
1 Pershing Plaza, Jersey City, NJ 07399-0001 |
13.94 |
C |
Citigroup Global Mkts Inc., ATTN Cindy Tempesta 7th Fl. |
333 West 34th St., New York NY 10001-2483 |
8.18 |
C |
Morgan Stanley & Co., ATTN Mutual Funds Operations |
Harborside Financial Center, Plaza II 3rd Fl., Jersey City NJ 07311 |
5.51 |
C |
UBS WM USA, OMNI Account M/F, ATTN: Department Manager |
499 Washington Blvd Fl. 9, Jersey City NJ 07310-2055 |
5.42 |
C |
MLPF&S For the Sole Benefit of its Customers, ATTN Fund Admin #97FJ0 |
4800 Deer Lake Dr. E Fl. 3, Jacksonville FL 32246-6484 |
32.61 |
Y |
Prudential Investments MNG SVCS, FBO Mutual Fund Clients, ATTN: Pruchoice Unit |
100 Mulberry St., Mail Stop NJ 05-11-20, Newark NJ 07102 |
19.32 |
Y |
Pershing LLC |
1 Pershing Plaza, Jersey City, NJ 07399-0001 |
16.17 |
Y |
LPL Financial, Omnibus Customer Account, ATTN Dan Spillane |
9785 Towne Centre Dr., San Diego, CA 92121 |
9.21 |
Y |
Charles Schwab & Co., Inc., Special Custody Acct for the Exclusive Benefit of Customers, ATTN Mutual Funds |
101 Montgomery St., San Francisco, CA 94104-4122 |
5.28 |
Y |
The Manager is wholly-owned by Oppenheimer Acquisition Corp., a holding company primarily owned by Massachusetts Mutual Life Insurance Company, a global, diversified insurance and financial services company.
Code of Ethics. The Fund, the Manager and the Distributor have a Code of Ethics. It is designed to detect and prevent improper personal trading by portfolio managers and certain other employees ("covered persons") that could compete with or take advantage of the Fund's portfolio transactions. Covered persons include persons with knowledge of the investments and investment intentions of the Fund and/or other funds advised by the Manager. The Code of Ethics does permit personnel subject to the Code to invest in securities, including securities that may be purchased or held by the Fund, subject to a number of restrictions and controls. Compliance with the Code of Ethics is carefully monitored and enforced by the Manager and the Distributor.
The Code of Ethics is an exhibit to the Fund's registration statement filed with the SEC. It can be viewed as part of the Fund's registration statement on the SEC's EDGAR database at the SEC's website at www.sec.gov and can be reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
The Investment Advisory Agreement. The Manager provides investment advisory and management services to the Fund under an investment advisory agreement between the Manager and the Fund. The Manager selects securities for the Fund's portfolio and handles its day-to-day business. The portfolio managers of the Fund are employed by the Manager and are principally responsible for the day-to-day management of the Fund's portfolio. Other members of the Manager's investment teams provide the portfolio managers with counsel and support in managing the Fund's portfolio.
The advisory agreement requires the Manager, at its expense, to provide the Fund with adequate office space, facilities and equipment. It also requires the Manager to provide and supervise the activities of all administrative and clerical personnel required to provide effective administration for the Fund. Those responsibilities include the compilation and maintenance of records with respect to its operations, the preparation and filing of specified reports, and composition of proxy materials and registration statements for continuous public sale of shares of the Fund.
The Fund pays expenses not expressly assumed by the Manager under the investment advisory agreement. The investment advisory agreement lists examples of expenses paid by the Fund. The major categories relate to interest, taxes, brokerage commissions, fees to certain Board members, legal and audit expenses, custodian and transfer agent expenses, share issuance costs, certain printing and registration costs and non-recurring expenses, including litigation costs. The management fees paid by the Fund to the Manager are calculated at the rates described in the Prospectus, which are applied to the assets of the Fund as a whole. The fees are allocated to each class of shares based upon the relative proportion of the Fund's net assets represented by that class. The management fees paid by the Fund to the Manager during its last three fiscal years were:
Fiscal Year ended 12/31 |
Management Fees Paid to OppenheimerFunds, Inc. |
Accounting and Administrative Service Fees Paid to OppenheimerFunds, Inc. |
2008 |
$43,575,461 |
$2,863,377 |
2009 |
$35,883,346 |
$2,340,270 |
2010 |
$39,507,383 |
$2,584,568 |
The investment advisory agreement states that in the absence of willful misfeasance, bad faith, gross negligence in the performance of its duties or reckless disregard of its obligations and duties under the investment advisory agreement, the Manager is not liable for any loss the Fund sustains in connection with matters to which the agreement relates.
The agreement permits the Manager to act as an investment adviser for any other person, firm or corporation and to use the name "Oppenheimer" in connection with other investment companies for which it may act as investment adviser or general distributor. If the Manager shall no longer act as investment adviser to the Fund, the Manager may withdraw the right of the Fund to use the name "Oppenheimer" as part of its name.
Pending Litigation. Since 2009, a number of lawsuits have been pending in federal courts against the Manager, the Distributor, and certain mutual funds advised by the Manager and distributed by the Distributor - including the Fund. The lawsuits naming the Fund as a defendant also name as defendants certain officers and current and former trustees of the Fund. The plaintiffs seek class action status on behalf of purchasers of shares of the Fund during a particular time period. The lawsuits raise claims under federal securities laws alleging that, among other things, the disclosure documents of the Fund contained misrepresentations and omissions, that the Fund's investment policies were not followed, and that the Fund and the other defendants violated federal securities laws and regulations and certain state laws. The plaintiffs seek unspecified damages, equitable relief and an award of attorneys' fees and litigatio n expenses. Litigation involving certain other Oppenheimer funds is similar in nature.
In 2009, what are claimed to be derivative lawsuits were filed in state court against the Manager and a subsidiary (but not against the Fund), on behalf of the New Mexico Education Plan Trust. These lawsuits allege breach of contract, breach of fiduciary duty, negligence and violation of state securities laws, and seek compensatory damages, equitable relief and an award of attorneys' fees and litigation expenses.
Other lawsuits have been filed since 2008 in various state and federal courts, against the Manager and certain of its affiliates. Those lawsuits were filed by investors who made investments through an affiliate of the Manager, and relate to the alleged investment fraud perpetrated by Bernard Madoff and his firm ("Madoff"). Those suits allege a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and an award of attorneys' fees and litigation expenses. None of the suits have named the Distributor, any of the Oppenheimer mutual funds or any of their independent Trustees or Directors, as defendants. None of the Oppenheimer funds invested in any funds or accounts managed by Madoff. On February 28, 2011, a Stipulation of Partial S ettlement of certain of those lawsuits was filed in the U.S. District Court for the Southern District of New York. That proposed settlement is subject to the preliminary and final approval of the Court and the determination by the settling defendants that class members representing a sufficient proportion of the losses allegedly suffered by class members had elected to participate in the settlement. The proposed settlement does not settle any of the other outstanding lawsuits pending in other courts relating to these matters.
The Manager believes that the lawsuits described above are without legal merit and is defending against them vigorously. The Fund's Board of Trustees has also engaged counsel to represent the Fund and the present and former Independent Trustees named in those suits. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Fund may bear in defending the suits might not be reimbursed by insurance, the Manager believes that these suits should not have any material effect on the operations of the Fund, that the outcome of all of the suits together should not impair the ability of the Manager or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer funds.
Portfolio Managers. The Fund's portfolio is managed by a team of investment professionals, including, Daniel G. Loughran, Scott S. Cottier, Troy E. Willis, Mark R. DeMitry, Michael L. Camarella, Marcus V. Franz and Charles S. Pulire (each is referred to as a "Portfolio Manager" and collectively they are referred to as the "Portfolio Managers") who are responsible for the day-to-day management of the Fund's investments.
Portfolio Manager |
Registered Investment Companies Managed |
Total Assets in Registered Investment Companies Managed1 |
Other Pooled Investment Vehicles Managed |
Total Assets in Other Pooled Investment Vehicles Managed |
Other Accounts Managed |
Total Assets in Other Accounts Managed2 |
Daniel G. Loughran |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
Scott S. Cottier |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
Troy E. Willis |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
Mark R. DeMitry |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
Michael L. Camarella |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
Marcus V. Franz |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
Charles S. Pulire |
19 |
$20.69 |
0 |
$0 |
0 |
$0 |
1. In billions.
2. Does not include personal accounts of the portfolio managers and their families, which are subject to the Code of Ethics.
As indicated above, the Portfolio Managers may also manage other funds and accounts. At different times, the Fund's Portfolio Managers may manage other funds or accounts with investment objectives and strategies similar to those of the Fund, or they may manage funds or accounts with different investment objectives and strategies. At times, those responsibilities could potentially conflict with the interests of the Fund. That may occur whether the investment objectives and strategies of the other funds and accounts are the same as, or different from, the Fund's investment objectives and strategies. For example, the Portfolio Managers may need to allocate investment opportunities between the Fund and another fund or account having similar objectives or strategies, or they may need to execute transactions for another fund or account that could have a negative impact on the value of securities held by the Fu nd. Not all funds and accounts advised by the Manager have the same management fee. If the management fee structure of another fund or account is more advantageous to the Manager than the fee structure of the Fund, the Manager could have an incentive to favor the other fund or account. However, the Manager's compliance procedures and Code of Ethics recognize the Manager's obligation to treat all of its clients, including the Fund, fairly and equitably, and are designed to preclude the Portfolio Managers from favoring one client over another. It is possible, of course, that those compliance procedures and the Code of Ethics may not always be adequate to do so.
Compensation of the Portfolio Managers. The Fund's Portfolio Managers are employed and compensated by the Manager, not the Fund. Under the Manager's compensation program for its portfolio managers and portfolio analysts, Fund performance is the most important element of compensation with at least half of annual cash compensation based on relative investment performance results of the funds or accounts they manage, rather than on the financial success of the Manager. This is intended to align the portfolio managers and analysts' interests with the success of the funds and accounts and their shareholders. The Manager's compensation structure is designed to attract and retain highly qualified investment management professionals and to reward individual and team contributions toward creating shareholder value. As of the Fund's most recently completed year-end, the Portfolio Managers' compensation consis ted of three elements: a base salary, an annual discretionary bonus and eligibility to participate in long-term awards of options and stock appreciation rights in regard to the common stock of the Manager's holding company parent, as well as restricted shares of such common stock. Senior portfolio managers may be eligible to participate in the Manager's deferred compensation plan.
The base pay component of each portfolio manager is reviewed regularly to ensure that it reflects the performance of the individual, is commensurate with the requirements of the particular portfolio, reflects any specific competence or specialty of the individual manager, and is competitive with other comparable positions. The annual discretionary bonus is determined by senior management of the Manager and is based on a number of factors, including a fund's pre-tax performance for periods of up to five years, measured against an appropriate Lipper benchmark selected by management. The majority is based on three and five year data, with longer periods weighted more heavily. Below median performance in all three periods' results in an extremely low, and in some cases no, performance based bonus. Other factors considered include management quality (such as style consistency, risk management, sector coverage , team leadership and coaching) and organizational development. The Portfolio Managers' compensation is not based on the total value of the Fund's portfolio assets, although the Fund's investment performance may increase those assets. The compensation structure is also intended to be internally equitable and serve to reduce potential conflicts of interest between the Fund and other funds and accounts managed by the Portfolio Managers.
The Lipper benchmark for the Portfolio Managers with respect to the Fund is Lipper New York Municipal Debt Funds. The compensation structure of the other funds and accounts managed by the Portfolio Managers are generally the same as the compensation structure of the Fund, described above.
Portfolio Manager |
Range of Shares Beneficially Owned in the Fund |
Daniel G. Loughran |
None |
Scott S. Cottier |
None |
Troy E. Willis |
$50,001 - $100,000 |
Mark R. DeMitry |
None |
Michael L. Camarella |
None |
Marcus V. Franz |
None |
Charles S. Pulire |
$1 - $10,000 |
Brokerage Policies of the Fund
Brokerage Provisions of the Investment Advisory Agreement. One of the duties of the Manager under the investment advisory agreement is to arrange the portfolio transactions for the Fund. The advisory agreement contains provisions relating to the employment of broker-dealers for that purpose. The advisory agreement authorizes the Manager to employ broker-dealers, including "affiliated brokers," as that term is defined in the Investment Company Act, that the Manager thinks, in its best judgment based on all relevant factors, will implement the policy of the Fund to obtain the "best execution" of the Fund's portfolio transactions. "Best execution" means executing trades in a manner such that the total costs or proceeds are the most favorable under the circumstances. Some of the circumstances that may influence this decision are: cost (brokerage commission or dealer spread), size of order, difficulty of order, and the firm's ability to provide prompt and reliable execution.
The Manager need not seek competitive commission bidding. However, the Manager is expected to be aware of the current rates of eligible brokers and to minimize the commissions paid to the extent consistent with the interests and policies of the Fund as established by its Board. The Fund is not required to pay the lowest available commission. Under the investment advisory agreement, in choosing brokers to execute portfolio transactions for the Fund, the Manager may select brokers (other than affiliates) that provide both brokerage and research services to the Fund. The commissions paid to those brokers may be higher than another qualified broker would charge, if the Manager makes a good faith determination that the commission is fair and reasonable in relation to the services provided.
Brokerage Practices Followed by the Manager. The Manager allocates brokerage for the Fund subject to the provisions of the investment advisory agreement and other applicable rules and procedures described below.
The Manager's portfolio managers directly place trades and allocate brokerage based upon their judgment as to the execution capability of the broker or dealer. The Manager's executive officers supervise the allocation of brokerage.
Most securities purchases made by the Fund are in principal transactions at net prices. (i.e., without commissions). The Fund usually deals directly with the selling or purchasing principal or market maker without incurring charges for the services of a broker on its behalf. Portfolio securities purchased from underwriters include a commission or concession paid by the issuer to the underwriter in the price of the security. Portfolio securities purchased from dealers include a spread between the bid and asked price. Therefore, the Fund generally does not incur substantial brokerage costs. On occasion, however, the Manager may determine that a better price or execution may be obtained by using the services of a broker on an agency basis. In that situation, the Fund would incur a brokerage commission.
Other funds advised by the Manager have investment policies similar to those of the Fund. Those other funds may purchase or sell the same securities as the Fund at the same time as the Fund, which could affect the supply and price of the securities. When possible, the Manager tries to combine concurrent orders to purchase or sell the same security by more than one of the funds managed by the Manager or its affiliates. The transactions under those combined orders are generally allocated on a pro rata basis based on the fund's respective net asset sizes and other factors, including the fund's cash flow requirements, investment policies and guidelines and capacity.
Rule 12b-1 under the Investment Company Act prohibits any fund from compensating a broker or dealer for promoting or selling the fund's shares by (1) directing to that broker or dealer any of the fund's portfolio transactions, or (2) directing any other remuneration to that broker or dealer, such as commissions, mark-ups, mark downs or other fees from the fund's portfolio transactions, that were effected by another broker or dealer (these latter arrangements are considered to be a type of "step-out" transaction). In other words, a fund and its investment adviser cannot use the fund's brokerage for the purpose of rewarding broker-dealers for selling a fund's shares.
However, the Rule permits funds to effect brokerage transactions through firms that also sell fund shares, provided that certain procedures are adopted to prevent a quid pro quo with respect to portfolio brokerage allocations. As permitted by the Rule, the Manager has adopted procedures (and the Fund's Board of Trustees has approved those procedures) that permit the Fund to execute portfolio securities transactions through brokers or dealers that also promote or sell shares of the Fund, subject to the "best execution" considerations discussed above. Those procedures are designed to prevent: (1) the Manager's personnel who effect the Fund's portfolio transactions from taking into account a broker's or dealer's promotion or sales of the Fund shares when allocating the Fund's portfolio transactions, and (2) the Fund, the Manager and the Distributor from entering into agreements or understandings under which the Manager directs or is expected to direct the Fund's brokerage directly, or through a "step-out" arrangement, to any broker or dealer in consideration of that broker's or dealer's promotion or sale of the Fund's shares or the shares of any of the other Oppenheimer funds.
The investment advisory agreement permits the Manager to allocate brokerage for research services. The research services provided by a particular broker may be useful both to the Fund and to one or more of the other accounts advised by the Manager or its affiliates. Investment research may be supplied to the Manager by a broker through which trades are placed or by a third party at the instance of the broker.
Investment research services include information and analysis on particular companies and industries as well as market or economic trends and portfolio strategy, market quotations for portfolio evaluations, analytical software and similar products and services. If a research service also assists the Manager in a non-research capacity (such as bookkeeping or other administrative functions), then only the percentage or component that provides assistance to the Manager in the investment decision making process may be paid in commission dollars.
Although the Manager currently does not do so, the Board of Trustees may permit the Manager to use stated commissions on secondary fixed-income agency trades to obtain research if the broker represents to the Manager that: (i) the trade is not from or for the broker's own inventory, (ii) the trade was executed by the broker on an agency basis at the stated commission, and (iii) the trade is not a riskless principal transaction. The Board may also permit the Manager to use commissions on fixed-price offerings to obtain research in the same manner as is permitted for agency transactions.
The research services provided by brokers broaden the scope and supplement the research activities of the Manager. That research provides additional views and comparisons for consideration, and helps the Manager to obtain market information for the valuation of securities that are either held in the Fund's portfolio or are being considered for purchase. The Manager provides information to the Board about the commissions paid to brokers furnishing such services, together with the Manager's representation that the amount of such commissions was reasonably related to the value or benefit of such services.
During the fiscal years ended December 31, 2008, 2009 and 2010, the Fund paid no total brokerage commissions. During the fiscal year ended December 31, 2010, the Fund did not execute any transactions through or pay any commissions to firms that provide research services.
Distribution and Service Arrangements
The Distributor. Under its General Distributor's Agreement with the Fund, the Distributor acts as the Fund's principal underwriter in the continuous public offering of the Fund's shares. The Distributor bears the expenses normally attributable to sales, including advertising and the cost of printing and mailing prospectuses, other than those furnished to existing shareholders. The Distributor is not obligated to sell a specific number of shares.
The sales charges and concessions paid to, or retained by, the Distributor from the sale of shares and the contingent deferred sales charges ("CDSCs") retained by the Distributor on the redemption of shares during the Fund's three most recent fiscal years are shown in the tables below.
Class A Sales Charges |
||
Fiscal Year Ended 12/31 |
Aggregate Front-End Sales Charges on Class A Shares |
Class A Front-End Sales Charges Retained by Distributor* |
2008 |
$15,073,699 |
$2,018,153 |
2009 |
$9,446,940 |
$1,351,979 |
2010 |
$9,061,576 |
$1,268,171 |
* Includes amounts retained by a broker-dealer that is an affiliate or a parent of the Distributor.
Concessions Advanced by Distributor |
|||
Fiscal Year Ended 12/31: |
Concessions on Class A Shares Advanced by Distributor* |
Concessions on Class B Shares Advanced by Distributor* |
Concessions on Class C Shares Advanced by Distributor* |
2008 |
$2,106,980 |
$917,560 |
$1,789,931 |
2009 |
$947,680 |
$535,534 |
$1,096,911 |
2010 |
$1,012,714 |
$622,338 |
$937,745 |
* Includes amounts retained by a broker-dealer that is an affiliate or a parent of the Distributor.
Contingent Deferred Sales Charges |
|||
Fiscal Year Ended 12/31: |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B Contingent Deferred Sales Charges Retained by Distributor |
Class C Contingent Deferred Sales Charges Retained by Distributor |
2008 |
$1,267,784 |
$1,241,073 |
$387,471 |
2009 |
$391,041 |
$501,910 |
$192,912 |
2010 |
$178,936 |
$427,377 |
$91,022 |
Distribution and Service (12b-1) Plans. The Fund has adopted a Service Plan for Class A shares and Distribution and Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment Company Act. Under those plans the Fund pays the Distributor for all or a portion of its costs incurred in connection with the distribution and/or servicing of the shares of the particular class. Each plan has been approved by a vote of the Board, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on that plan. The Independent Trustees are not "interested persons" of the Fund and do not have any direct or indirect financial interest in the operation of the distribution plan or any agreement under the plan, in accordance with Rule 12b-1 of the Investment Company Act.
Under the plans, the Manager and the Distributor may make payments to affiliates. In their sole discretion, they may also from time to time make substantial payments from their own resources, which include the profits the Manager derives from the advisory fees it receives from the Fund, to compensate brokers, dealers, financial institutions and other intermediaries for providing distribution assistance and/or administrative services or that otherwise promote sales of the Fund's shares. These payments, some of which may be referred to as "revenue sharing," may relate to the Fund's inclusion on a financial intermediary's preferred list of funds offered to its clients.
A plan continues in effect from year to year only if the Fund's Board and its Independent Trustees/Directors vote annually to approve its continuance at an in person meeting called for that purpose. A plan may be terminated at any time by the vote of a majority of the Independent Trustees/Directors or by the vote of the holders of a "majority" (as defined in the Investment Company Act) of the outstanding shares of the Class of shares to which it applies.
The Board and the Independent Trustees/Directors must approve all material amendments to a plan. An amendment to materially increase the amount of payments to be made under a plan must also be approved by shareholders of any affected class. Because Class B shares of the Fund automatically convert into Class A shares 72 months after purchase, the shareholders of both Class A and Class B, voting separately by class, must approve a proposed amendment to the Class A plan that would materially increase payments under that plan.
At least quarterly while the plans are in effect, the Treasurer of the Fund will provide the Board with separate written reports on the plans for its review. The reports will detail the amount of all payments made under a plan and the purpose for which the payments were made. Those reports are subject to the review and approval of the Independent Trustees/Directors.
While each plan is in effect, the Independent Trustees/Directors of the Fund will select and nominate any other Independent Trustees/Directors. This does not prevent the involvement of others in the selection and nomination process as long as the final decision is made by a majority of the Independent Trustees/Directors.
No payment will be made to any recipient for any share class unless, during the applicable period, the aggregate net asset value of Fund shares of the class held by the recipient (for itself and its customers) exceeds a minimum amount that may be set by a majority of the Independent Trustees/Directors from time to time.
Class A Service Plan. Under the Class A service plan, the Distributor currently uses the fees it receives from the Fund to pay brokers, dealers and other financial institutions (referred to as "recipients") for personal and account maintenance services they provide for their customers who hold Class A shares. Those services may include answering customer inquiries about the Fund, assisting in establishing and maintaining Fund accounts, making the Fund's investment plans available and providing other services at the request of the Fund or the Distributor. The Class A service plan permits the Fund to reimburse the Distributor at an annual rate of up to 0.25% of the Class A average net assets. The Distributor makes payments to recipients periodically at an annual rate of not more than 0.25% of the Class A average net assets held in the accounts of the recipient or it customers.
The Distributor does not receive or retain the service fee for Class A share accounts for which the Distributor is listed as the broker-dealer of record. While the plan permits the Board to authorize payments to the Distributor to reimburse itself for those services, the Board has not yet done so, except with respect to shares purchased prior to March 1, 2007 by certain group retirement plans that were established prior to March 1, 2001 ("grandfathered retirement plans").
Prior to March 1, 2007, the Distributor paid the 0.25% first year service fee for grandfathered retirement plans in advance and retained the service fee paid by the Fund with respect to those shares for the first year. After those shares are held for a year, the Distributor pays the ongoing service fees to recipients on a periodic basis. If those shares were redeemed within the first year after their purchase, the recipient of the service fees on those shares was obligated to repay the Distributor a pro rata portion of the advance payment of the fees. If those shares were redeemed within 18 months, they were subject to a CDSC. For Class A shares purchased in grandfathered retirement plans on or after March 1, 2007, the Distributor does not make any payment in advance and does not retain the service fee for the first year and the shares are not subject to a CDSC.
For the fiscal year ended December 31, 2010, payments under the Class A service plan totaled $10,333,308, of which $0 was retained by the Distributor under the arrangement described above regarding grandfathered retirement accounts, including $105,256 paid to an affiliate of the Distributor's parent company. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. The Distributor may not use payments received under the Class A plan to pay any of its interest expenses, carrying charges, or other financial costs, or allocation of overhead.
Class B and Class C Distribution and Service Plans. Under the Class B and Class C Distribution and Service Plans (each a "Plan" and together the "Plans"), the Fund pays the asset-based sales charge (the "distribution fee") to the Distributor for its services in distributing Class B and Class C shares. The distribution fee allows investors to buy Class B and Class C shares without a front-end sales charge, while allowing the Distributor to compensate dealers that sell those shares. The Distributor may use the service fees it receives under the Plans to pay recipients for providing services similar to the services provided under the Class A service plan, described above.
Payments under the Plans are made in recognition that the Distributor:
Distribution fees on Class B shares are generally retained by the Distributor. If a dealer has a special agreement with the Distributor, the Distributor may pay the Class B distribution fees to recipients periodically in lieu of paying the sales concession in advance at the time of purchase. The Distributor retains the distribution fee on Class C shares during the first year and then pays it as an ongoing concession to recipients.
Service fees for the first year after Class B and Class C shares are purchased, are generally paid to recipients in advance. After the first year, the Distributor pays the service fees to recipients periodically. Under the Plans, the Distributor is permitted to retain the service fees or to pay recipients the service fee on a periodic basis, without payment in advance. If a recipient has a special agreement with the Distributor, the Distributor may pay the Class B service fees to recipients periodically in lieu of paying the first year fee in advance. If Class B and Class C shares are redeemed during the first year after their purchase, a recipient of service fees on those shares will be obligated to repay a pro rata portion of the advance payment to the Distributor. Shares purchased by exchange do not qualify for the advance service fee payment.
Class B and Class C shares may not be purchased by a new investor directly from the Distributor without the investor designating another registered broker-dealer. If a current investor no longer has another broker-dealer of record for an existing account, the Distributor is automatically designated as the broker-dealer of record, but solely for the purpose of acting as the investor's agent to purchase the shares. In those cases, the Distributor retains the distribution fees paid on Class B and Class C shares, but does not retain any service fees as to the assets represented by that account.
Each Plan provides for the Distributor to be compensated at a flat rate, whether the Distributor's distribution expenses for a period are more or less than the amounts paid by the Fund under the relevant Plan. During a calendar year, the Distributor's actual expenses in selling Class B and Class C shares may be more than the distribution fees paid to the Distributor under the Plans and the CDSC's collected on redeemed shares. Those excess expenses are carried over on the Distributor's books and may be recouped from distribution fees paid by the Fund in future years. However, the Distributor has voluntarily agreed to cap the amount that may be carried over from year to year and recouped for certain categories of expenses at 0.70% of annual gross sales of shares of the Fund. The capped expenses under the Plans are (i) expenses the Distributor has incurred that represent compensation and expenses o f its sales personnel and (ii) other direct distribution costs it has incurred, such as sales literature, state registration fees, advertising and prospectuses used to offer Fund shares. If those categories of expenses exceed the capped amount, the Distributor would bear the excess costs. If a Plan were to be terminated by the Fund, the Fund's Board may allow the Fund to continue payments of the distribution fees to the Distributor for its services in distributing shares before the Plan was terminated.
The distribution and service fees under each Plan are computed on the average of the net asset value of shares in the respective class, determined as of the close of each regular business day. The distribution and service fees increase the annual Class B and Class C expenses by 1.00% of net assets.
Distribution and Service Fees Paid to the Distributor for the Fiscal Year Ended 12/31/10 |
|||||
Class: |
Total Payments Under Plan |
Amount Retained by Distributor |
Amount Paid to Affiliate |
Distributor's Aggregate Unreimbursed Expenses Under Plan |
Distributor's Unreimbursed Expenses as % of Net Assets of Class |
Class B Plan |
$2,192,711 |
$1,701,871 |
$5,052 |
$32,477,933 |
17.94% |
Class C Plan |
$12,670,489 |
$1,274,646 |
$53,667 |
$32,901,762 |
2.94% |
All payments under the Plans are subject to the limitations imposed by the Conduct Rules of FINRA on payments of distribution and service fees.
Payments to Financial Intermediaries
Financial intermediaries may receive various forms of compensation or reimbursement from the Fund in the form of distribution and service (12b-1) plan payments as described above. They may also receive payments or concessions from the Distributor, derived from sales charges paid by the financial intermediary's clients, also as described in this SAI. In addition, the Manager and the Distributor (including their affiliates) may make payments to financial intermediaries in connection with the intermediaries' offering and sales of Fund shares and shares of other Oppenheimer funds, or their provision of marketing or promotional support, transaction processing or administrative services. Among the financial intermediaries that may receive these payments are brokers or dealers who sell or hold shares of the Fund, banks (including bank trust departments), registered investment advisers, insurance companies, retiremen t plan or qualified tuition program administrators, third party administrators, recordkeepers or other institutions that have selling, servicing or similar arrangements with the Manager or the Distributor. The payments to financial intermediaries vary by the types of product sold, the features of the Fund share class and the role played by the intermediary.
Types of payments to financial intermediaries may include, and the Fund or an investor buying or selling Fund shares may pay, without limitation, all or portions of the following:
In addition, the Manager or Distributor may, at their discretion, make the following types of payments from their own respective resources, which may include profits the Manager derives from investment advisory fees paid by the Fund. Payments are made based on the guidelines established by the Manager and Distributor, subject to applicable law. These payments are often referred to as "revenue sharing" payments, and may include:
Although a broker or dealer that sells Fund shares may also act as a broker or dealer in connection with the purchase or sale of portfolio securities by the Fund or other Oppenheimer funds, the Manager does not consider a financial intermediary's sales of shares of the Fund or other Oppenheimer funds when choosing brokers or dealers to effect portfolio transactions for the Fund or other Oppenheimer funds.
Revenue sharing payments can pay for distribution-related or asset retention items including, without limitation:
These payments may provide an incentive to financial intermediaries to actively market or promote the sale of shares of the Fund or other Oppenheimer funds, or to support the marketing or promotional efforts of the Distributor in offering shares of the Fund or other Oppenheimer funds. In addition, some types of payments may provide a financial intermediary with an incentive to recommend the Fund or a particular share class. Financial intermediaries may earn profits on these payments, since the amount of the payments may exceed the cost of providing the services. Certain of these payments are subject to limitations under applicable law. Financial intermediaries may categorize and disclose these arrangements to their clients and to members of the public in a manner different from the disclosures in the Fund's Prospectus and this SAI. You should ask your financial intermediary for information about any payments it receives from the Fund, the Manager or the Distributor and any services it provides, as well as the fees and commissions it charges.
For the year ended December 31, 2010, the following financial intermediaries and/or their affiliates (which in some cases are broker-dealers) offered shares of the Oppenheimer funds and received revenue sharing or similar distribution-related payments (of at least $5,000) from the Manager or the Distributor for marketing or program support:
A.G. Edwards and Sons, Inc. |
H.D. Vest Investment Services, Inc. |
Prime Capital Services, Inc. |
Aetna Life Insurance & Annuity Company |
Hartford Life & Annuity Insurance |
Primevest Financial Services, Inc. |
AIG Advisor Group, Inc. |
Independent Financial Group, LLC |
Proequities, Inc. |
Allianz Life Insurance Company |
ING Financial Advisers, LLC |
Protective Group Securities, Inc. |
Allstate Financial Services LLC |
ING Financial Partners, Inc. |
Protective Life and Annuity Insurance |
Allstate Life Insurance Company |
Invest Financial Corporation |
Pruco Securities, LLC |
American Enterprise Life Insurance |
Jackson National Life Insurance Company |
Prudential Investment Management |
American General Annuity Insurance |
Janney Montgomery Scott LLC |
Raymond James & Associates, Inc. |
American Portfolios Financial Services, Inc. |
Jefferson Pilot Securities Corporation |
Raymond James Financial Services, Inc. |
American United Life Insurance Company |
JJB Hillard W.L. Lyons, Inc. |
RBC Capital Markets Corporation |
Ameriprise Advisor Services, Inc. |
JP Morgan Securities, Inc. |
RBC Dain Rauscher |
Ameriprise Financial Services, Inc. |
Kemper Investors Life Insurance Company |
Retirement Plan Consultants |
Ameritas Life Insurance Company |
Key Investment Services LLC |
Robert W. Baird & Co. |
AXA Advisors, LLC |
KMS Financial Services Inc. |
Royal Alliance Associates, Inc. |
AXA Equitable Life Insurance Company |
Legend Equities Corporation |
Sagepoint Financial Advisors |
Banc of America Investment Services, Inc. |
Lincoln Financial Advisors Corporation |
Securities America, Inc. |
Cadaret Grant & Co. |
Lincoln Financial Securities Corporation |
Security Benefit Life Insurance Company |
Cambridge Investment Research, Inc. |
Lincoln Investment Planning, Inc. |
Sigma Financial Corp. |
CCO Investment Services Corporation |
Lincoln National Life Insurance Company |
Signator Investments, Inc. |
Charles Schwab & Co., Inc. |
LPL Financial Corporation |
State Farm VP Management Corp. |
Chase Investment Services Corporation |
Manulife Financial |
Stifel, Nicolaus & Company, Inc. |
Citigroup Global Markets, Inc. |
Massachusetts Mutual Life Insurance |
Sun Life Financial Distributors, Inc. |
CitiStreet Advisors LLC |
MassMutual Financial Group |
Sun Life Insurance Company |
Citizens Bank of Rhode Island |
Merrill Lynch Pierce Fenner & Smith Inc. |
Sun Trust Securities, Inc. |
C.M. Life Insurance Company |
MetLife Investors Insurance Company |
Sunamerica Securities, Inc. |
Commonwealth Financial Network |
MetLife Securities, Inc. |
SunTrust Bank |
CUNA Brokerage Services, Inc. |
MML Investor Services, Inc. |
Suntrust Investment Services, Inc. |
CUSO Financial Services, LP |
Morgan Stanley & Co., Incorporated |
TD Ameritrade Clearing, Inc. |
Direct Services LLC |
Morgan Stanley Smith Barney LLC |
The Hartford/Planco |
Edward D. Jones and Company, LP |
Multi-Financial Securities Corporation |
The Investment Center, Inc. |
Essex National Securities, Inc. |
Mutual Funds Against Cancer |
Thrivent Financial for Lutherans |
Federal Kemper Life Assurance Company |
National Planning Corporation |
Thrivent Investment Management, Inc. |
Financial Network Investment Corporation |
National Retirement Partners, Inc. |
Transamerica Life Insurance Co. |
Financial Services Corporation |
Nationwide Financial Services, Inc. |
UBS Financial Services, Inc. |
First Allied Securities, Inc. |
New England Securities, Inc. |
Union Central Life Insurance Company |
First Clearing LLC |
NFP Securities Inc. |
USI Securities, Inc. |
First Global Capital Corporation |
North Ridge Securities Corp. |
Valic Financial Advisors, Inc. |
FSC Securities Corporation |
Northwestern Mutual Investment Services |
Vanderbilt Securities LLC |
GE Life and Annuity Company |
NRP Financial, Inc. |
VSR Financial Services, Inc. |
Geneos Wealth Management, Inc. |
Oppenheimer & Co. Inc. |
Wachovia Securities, LLC |
Genworth Financial, Inc. |
Pacific Life Insurance Co. |
Walnut Street Securities, Inc. |
Great West Life Insurance Company |
Park Avenue Securities LLC |
Wells Fargo Advisors, LLC |
Guardian Insurance & Annuity Company |
Pershing LLC |
Wells Fargo Investments, LLC |
H. Beck, Inc. |
PFS Investments, Inc. |
Woodbury Financial Services, Inc. |
PlanMember Securities Corp. |
For the year ended December 31, 2010, the following firms (which in some cases are broker-dealers) received payments from the Manager or Distributor (of at least $2,500) for administrative or other services provided (other than revenue sharing arrangements), as described above:
Acensus, Inc. |
First Clearing LLC |
National Financial Services LLC |
ACS HR Solutions LLC |
First Global Capital Corporation |
New York Life Insurance and Annuity |
ADP Broker-Dealer, Inc. |
First Trust Corp. |
Northwest Plan Services Inc. |
Aegon USA |
GE Financial Assurance |
Oppenheimer & Co. Inc. |
Aetna Life Insurance & Annuity Company |
GE Life and Annuity Company |
Pershing LLC |
Alliance Benefit Group |
Geller Group Ltd. |
Phoenix Life Insurance Company |
Allianz Life Insurance Company |
Genworth Financial, Inc. |
Plan Administrators Inc. |
American Diversified Distribution, LLC |
Great West Life Insurance Company |
PlanMember Securities |
American Enterprise Life Insurance |
Guardian Insurance & Annuity Company |
Primevest Financial Services, Inc. |
American Funds |
H&R Block Financial Advisors, Inc. |
Principal Life Insurance |
American General Annuity Insurance |
H.D. Vest Investment Services, Inc. |
Protective Life and Annuity Insurance |
American United Life Insurance Co. |
Hartford Life Insurance Company |
Prudential Investment Management |
Ameriprise Financial Services, Inc. |
Hewitt Associates LLC |
PSMI Group |
Ameritas Life Insurance Company |
ICMA-RC Services LLC |
Raymond James & Associates, Inc. |
Ameritrade, Inc. |
Ingham Group |
Reliance Trust Co. |
Annuity Investors Life Insurance Company |
Interactive Retirement Systems |
Robert W. Baird & Co. |
AST Trust Company |
Intuition Systems, Inc. |
RSM McGladrey, Inc. |
AXA Equitable Life Insurance Company |
Investmart |
Scott & Stringfellow, Inc. |
Benefit Administration Co. |
Janney Montgomery Scott LLC |
Scottrade, Inc. |
Benefit Consultants Group |
JJB Hillard W. L. Lyons, Inc. |
Security Benefit Life Insurance Company |
Benefit Plans Administrative Services, Inc. |
John Hancock Life Insurance Company |
Southwest Securities, Inc. |
Boston Financial Data Services, Inc. |
JP Morgan Securities, Inc. |
Standard Insurance Co. |
Ceridian |
July Business Services |
Standard Retirement Services, Inc. |
Charles Schwab & Co., Inc. |
Kemper Investors Life Insurance Company |
Stanton Group, Inc. |
Citigroup Global Markets Inc. |
Lincoln Benefit National Life |
Sterne Agee & Leach, Inc. |
CitiStreet Advisors LLC |
Lincoln Financial Advisors Corporation |
Stifel Nicolaus & Company, Inc. |
Clark Consulting |
Lincoln Investment Planning Inc. |
Sun Trust Securities, Inc. |
CPI Qualified Plan Consultants |
LPL Financial Corporation |
T. Rowe Price |
CUNA Mutual Insurance Society |
Marshall & Ilsley Trust Company, Inc. |
The Princeton Retirement Group |
DA Davidson & Co. |
Massachusetts Mutual Life Insurance |
The Retirement Plan Company, LLC |
Daily Access. Com, Inc. |
Matrix Settlement & Clearance Services |
Transamerica Retirement Services |
Davenport & Company, LLC |
Mercer HR Services |
UBS Financial Services, Inc. |
David Lerner Associates, Inc. |
Merrill Lynch Pierce Fenner & Smith Inc. |
Unified Fund Services, Inc. |
Digital Retirement Solutions |
Mesirow Financial, Inc. |
Union Bank & Trust Company |
Diversified Advisors Investments Inc. |
MG Trust |
US Clearing Co. |
DR, Inc. |
Mid Atlantic Capital Co. |
USAA Investment Management Co. |
Dyatech, LLC |
Milliman, Inc. |
USI Consulting Group |
E*TRADE Clearing LLC |
Minnesota Life Insurance Company |
Valic Financial Advisors, Inc. |
Edward D. Jones and Company, LP |
Mony Life Insurance Company of America |
Vanguard Group |
ExpertPlan.com |
Morgan Stanley & Co., Incorporated |
Wachovia Securities, LLC |
Federal Kemper Life Assurance Company |
Morgan Stanley Dean Witter |
Wedbush Morgan Securities |
Fidelity Brokerage Services, LLC |
Mutual of Omaha Insurance Company |
Wells Fargo Bank NA |
Fidelity Investments Institutional |
National City Bank |
Wells Fargo Investments, LLC |
Financial Administrative Services |
National Deferred Compensation |
Wilmington Trust Company |
Explanation of Performance Calculations. The use of standardized performance calculations enables an investor to compare the Fund's performance to the performance of other funds for the same periods. The Fund's performance data in advertisements must comply with rules of the SEC, which describe the types of performance data that may be used and how it is to be calculated. In general, any advertisement by the Fund of its performance data must include the average annual total returns for the advertised class of shares of the Fund. The Fund may use a variety of performance calculations, including "cumulative total return," "average annual total return," "average annual total return at net asset value," and "total return at net asset value." How these types of returns are calculated are described below.
A number of factors should be considered before using the Fund's performance information as a basis for comparison with other investments:
The performance of each class of shares is shown separately, because the performance of each class of shares will usually be different. That is because of the different kinds of expenses each class bears. The yields and total returns of each class of shares of the Fund are affected by market conditions, the quality of the Fund's investments, the maturity of debt investments, the types of investments the Fund holds, and its operating expenses that are allocated to the particular class.
Yields. The Fund uses a variety of different yields to illustrate its current returns. Each class of shares calculates its yield separately because of the different expenses that affect each class.
Standardized yield is calculated using the following formula set forth in rules adopted by the SEC, designed to assure uniformity in the way that all funds calculate their yields:
The symbols above represent the following factors:
a =dividends and interest earned during the 30-day period.
b =expenses accrued for the period (net of any expense assumptions).
c =the average daily number of shares of that class outstanding during the 30-day period that were entitled to receive dividends.
d =the maximum offering price per share of that class on the last day of the period, adjusted for undistributed net investment income.
The standardized yield for a particular 30-day period may differ from the yield for other periods. The SEC formula assumes that the standardized yield for a 30-day period occurs at a constant rate for a six-month period and is annualized at the end of the six-month period. Additionally, because each class of shares is subject to different expenses, it is likely that the standardized yields of the Fund's classes of shares will differ for any 30-day period.
Dividend Yield = dividends paid x 12/maximum offering price (payment date)
The maximum offering price for Class A shares includes the current maximum initial sales charge. The maximum offering price for Class B and Class C shares is the net asset value per share, without considering the effect of contingent deferred sales charges. The Class A dividend yield may also be quoted without deducting the maximum initial sales charge.
The tax-equivalent yield is based on a 30-day period, and is computed by dividing the tax-exempt portion of the Fund's current yield (as calculated above) by one minus a stated income tax rate. The result is added to the portion (if any) of the Fund's current yield that is not tax-exempt.
The tax-equivalent yield may be used to compare the tax effects of income derived from the Fund with income from taxable investments at the tax rates stated. Your tax bracket is determined by your federal and state taxable income (the net amount subject to federal and state income tax after deductions and exemptions).
The Fund's Yields for the 30-Day Periods Ended 12/31/10 |
||||||
Standardized Yield |
Dividend Yield |
Tax Equivalent Yield (40.83% combined Federal/New York Tax Brackets) |
||||
Class of Shares |
After Sales Charge |
Without Sales Charge |
After Sales Charge |
Without Sales Charge |
After Sales Charge |
Without Sales Charge |
Class A1 |
6.49% |
6.82% |
6.12% |
6.42% |
10.97% |
11.52% |
Class B2 |
N/A |
5.82% |
N/A |
5.19% |
N/A |
9.84% |
Class C3 |
N/A |
5.93% |
N/A |
5.32% |
N/A |
10.02% |
Class Y4 |
N/A |
6.96% |
N/A |
6.59% |
N/A |
11.76% |
The tax-equivalent yield calculation assumes that the investor is taxed just below the highest federal income tax bracket (currently 35%) and also assumes the 2010 combined federal and New York State rates (regardless of whether a switch to non-taxable investments would cause a lower bracket to apply).
Total Return Information. "Total return" is the change in value of a hypothetical investment in the Fund over a given period, assuming that all dividends and capital gains distributions are reinvested in additional shares and that the investment is redeemed at the end of the period. Because of differences in expenses for each class of shares, the total returns for each class will differ and are measured separately.
There are different types of "total returns." "Cumulative total return" measures the change in value over the entire period (for example, ten years). "Average annual total return" shows the average rate of return for each year in a period that would produce the cumulative total return over the entire period. However, average annual total returns do not show actual year-by-year performance. The Fund uses the methodology prescribed by the SEC to calculate its standardized total returns.
In calculating the Fund's total returns, the following sales charges are applied unless the returns are shown at "net asset value" as described below:
The Fund's returns are calculated based on the change in value of a hypothetical initial investment of $1,000 ("P" in the formulas below) held for a number of years ("n" in the formulas).
A number of factors should be considered before using the Fund's performance information as a basis for comparison with other investments:
Performance Data. The charts below show the Fund's performance as of its most recent fiscal year end. You can obtain current performance information by visiting the OppenheimerFunds website at www.oppenheimerfunds.com or by calling the Fund's Transfer Agent at the telephone number shown on the cover of this SAI.
The performance of each class of shares is shown separately, because the performance of each class of shares will usually be different. That is because of the different kinds of expenses each class bears. The total returns of each class of shares of the Fund are affected by market conditions, the quality of the Fund's investments, the maturity of those investments, the types of investments the Fund holds, and its operating expenses that are allocated to the particular class.
Total returns for any given past period represent historical performance information and are not, and should not be considered, a prediction of future returns.
The Fund's Total Returns for the Periods Ended 12/31/10 |
||||||||
Cumulative Total Returns |
Average Annual Total Returns |
|||||||
10 Years |
1 Year |
5 Years |
10 Years |
|||||
Class of Shares |
After Sales Charge |
Without Sales Charge |
After Sales Charge |
Without Sales Charge |
After Sales Charge |
Without Sales Charge |
After Sales Charge |
Without Sales Charge |
Class A1 |
47.65% |
55.01% |
(1.29%) |
3.63% |
1.09% |
2.08% |
3.97% |
4.48% |
Class B2 |
47.24% |
47.24% |
(2.21%) |
2.67% |
0.83% |
1.15% |
3.94% |
3.94% |
Class C3 |
42.09% |
42.09% |
1.77% |
2.75% |
1.20% |
1.20% |
3.58% |
3.58% |
Class Y4 |
57.10% |
57.10% |
3.84% |
3.84% |
2.22% |
2.22% |
4.62% |
4.62% |
Average Annual Total Returns for Class A Shares1 (After Sales Charge) for the Periods Ended 12/31/10 |
|||
1 Year |
5 Years |
10 Years |
|
After Taxes on Distributions |
(1.29%) |
1.09% |
3.97% |
After Taxes on Distributions and Redemption of Fund Shares |
1.28% |
1.71% |
4.23% |
1. Inception of Class A: 5/15/86
2. Inception of Class B: 3/17/97
3. Inception of Class C: 3/17/97
4. Inception of Class Y: 4/28/00
Other Performance Comparisons. In its Annual Report to shareholders, the Fund compares its performance to that of one or more appropriate market indices. You can obtain that information by visiting the OppenheimerFunds website at www.oppenheimerfunds.com or by calling the Fund's Transfer Agent at the telephone number shown on the cover of this SAI. The Fund may also compare its performance to that of other investments, including other mutual funds, or use rankings of its performance by independent ranking entities. The following are examples of some of those comparisons.
Lipper Rankings. From time to time the Fund may publish the ranking of the performance of its share classes by Lipper, Inc. ("Lipper"), a widely-recognized independent mutual fund monitoring service. Lipper monitors and ranks the performance of regulated investment companies for various periods in categories based on investment styles. Lipper also publishes "peer-group" indices and averages of the performance of all mutual funds in particular categories.
Morningstar Ratings. From time to time the Fund may publish the "star ratings" of its classes of shares by Morningstar, Inc. ("Morningstar"), an independent mutual fund monitoring service that rates and ranks mutual funds within their specialized market sectors. Morningstar proprietary star ratings reflect risk-adjusted historical total investment returns for funds with at least a three-year performance history. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.
Performance Rankings and Comparisons by Other Entities and Publications. From time to time the Fund may include in its advertisements and sales literature performance information about the Fund cited in newspapers and other periodicals such as The New York Times, The Wall Street Journal, Barron's or other similar publications. That information may include performance quotations from other sources, including Lipper and Morningstar or the Fund's performance may be compared to the performance of various market indices, other investments, or averages, performance rankings or other benchmarks prepared by recognized mutual fund statistical services. The Fund's advertisements and sales literature may also include, for illustrative or comparative purposes, statistical data or other information about general or specific market and economic conditions, for example:
From time to time, the Fund may publish rankings or ratings of the Manager or Transfer Agent by third parties, including comparisons of investor services provided to shareholders of the Oppenheimer funds to those provided by other mutual fund families selected by the rating or ranking services. Those comparisons may be based on the opinions of the rating or ranking service itself, using its research or judgment, or may be based on surveys of investors, brokers, shareholders or others.
Investors may also wish to compare the returns on the Fund's share classes to the return on fixed-income investments available from banks and thrift institutions, including certificates of deposit, ordinary interest-paying checking and savings accounts, and other forms of fixed or variable time deposits or instruments such as Treasury bills. However, the Fund's returns and share price are not guaranteed or insured by the FDIC or any other agency and will fluctuate daily, while bank depository obligations may be insured by the FDIC and may provide fixed rates of return. Repayment of principal and payment of interest on Treasury securities is backed by the full faith and credit of the U.S. Government.
The Fund's Prospectus describes how to buy, sell and exchange shares of the Fund and certain other Oppenheimer funds. The information below provides further details about the Fund's policies regarding those share transactions. It should be read in conjunction with the information in the Prospectus. Appendix A of this SAI provides more information about the special sales charge arrangements offered by the Fund, and the circumstances in which sales charges may be reduced or waived for certain investors and certain types of purchases or redemptions.
Determination of Net Asset Value Per Share. The net asset value ("NAV") per share for each class of shares of the Fund is determined by dividing the value of the Fund's net assets attributable to a class by the number of shares of that class that are outstanding. The NAV is determined as of the close of business on the New York Stock Exchange ("NYSE") on each day that the NYSE is open. The NYSE normally closes at 4:00 p.m., Eastern time, but may close earlier on some other days (for example, in case of weather emergencies or on days falling before a U.S. holiday). All references to time in this SAI mean "Eastern time." The NYSE's most recent annual announcement (which is subject to change) states that it will close on New Year's Day, Martin Luther King, Jr. Day, Washington's Birthday (Presidents Day), Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. It may also close on o ther days.
Dealers other than NYSE members may conduct trading in municipal securities on days that the NYSE is closed (including weekends and holidays) or after 4:00 p.m. on a regular business day. Because the Fund's net asset values will not be calculated on those days, the Fund's net asset values per share may be significantly affected on days when shareholders may not purchase or redeem shares.
Securities Valuation. The Fund's Board has established procedures for the valuation of the Fund's securities. In general those procedures are as follows:
In the case of municipal securities the Manager uses pricing services approved by the Board. The pricing service may use "matrix" comparisons to the prices for comparable instruments on the basis of quality, yield and maturity. Other special factors may be involved (such as the tax-exempt status of the interest paid by municipal securities). The Manager will monitor the accuracy of the pricing services valuations. That monitoring may include comparing prices used for portfolio valuation to the actual sale prices of selected securities.
Puts, calls, futures and municipal bond index futures are valued at the last sale price on the principal exchange on which they are traded, as determined by a pricing service approved by the Board or by the Manager.
Allocation of Expenses. The Fund pays expenses related to its daily operations, such as custodian fees, Board fees, transfer agency fees, legal fees and auditing costs. Those expenses are paid out of the Fund's assets, not directly by shareholders. However, those expenses reduce the net asset value of Fund shares, and therefore are borne indirectly by shareholders.
For calculating the Fund's net asset value, dividends and distributions, the Fund differentiates between two types of expenses. General expenses that do not pertain specifically to any one class are allocated pro rata to the shares of all classes. Those expenses are first allocated based on the percentage of the Fund's total assets that is represented by the assets of each share class. Such general expenses include management fees, legal, bookkeeping and audit fees, Board compensation, custodian expenses, share issuance costs, interest, taxes, brokerage commissions, and non-recurring expenses, such as litigation costs. Then the expenses allocated to a share class are allotted equally to each outstanding share within a given class.
Other expenses that are directly attributable to a particular class are allocated equally to each outstanding share within that class. Examples of such expenses include distribution and service plan (12b-1) fees, transfer and shareholder servicing agent fees and expenses, and shareholder meeting expenses to the extent that such expenses pertain only to a specific class.
The Oppenheimer Funds. The "Oppenheimer funds" are those mutual funds for which the Distributor acts as distributor and currently include the following:
Oppenheimer AMT-Free Municipals |
Money Market Funds: |
Oppenheimer AMT-Free New York Municipals |
Oppenheimer Cash Reserves |
Oppenheimer Balanced Fund |
Oppenheimer Institutional Money Market Fund |
Oppenheimer Core Bond Fund |
Oppenheimer Money Market Fund, Inc. |
Oppenheimer California Municipal Fund |
Oppenheimer New Jersey Municipal Fund |
Oppenheimer Capital Appreciation Fund |
Oppenheimer Pennsylvania Municipal Fund |
Oppenheimer Capital Income Fund |
Oppenheimer Portfolio Series Funds: |
Oppenheimer Champion Income Fund |
Active Allocation Fund |
Oppenheimer Commodity Strategy Total Return Fund |
Conservative Investor Fund |
Oppenheimer Corporate Bond Fund |
Equity Investor Fund |
Oppenheimer Currency Opportunities Fund |
Moderate Investor Fund |
Oppenheimer Developing Markets Fund |
Oppenheimer Portfolio Series Fixed Income |
Oppenheimer Discovery Fund |
Active Allocation Fund |
Oppenheimer Emerging Markets Debt Fund |
Oppenheimer Principal Protected Main Street Fund III |
Oppenheimer Equity Fund, Inc. |
Oppenheimer Quest International Value Fund |
Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Quest Opportunity Value Fund |
Oppenheimer Global Fund |
Oppenheimer Real Estate Fund |
Oppenheimer Global Allocation Fund |
Oppenheimer Rising Dividends Fund |
Oppenheimer Global Opportunities Fund |
Oppenheimer Rochester Arizona Municipal Fund |
Oppenheimer Global Strategic Income Fund |
Oppenheimer Rochester Intermediate Term Municipal Fund |
Oppenheimer Global Value Fund |
Oppenheimer Rochester Maryland Municipal Fund |
Oppenheimer Gold & Special Minerals Fund |
Oppenheimer Rochester Massachusetts Municipal Fund |
Oppenheimer International Bond Fund |
Oppenheimer Rochester Michigan Municipal Fund |
Oppenheimer International Diversified Fund |
Oppenheimer Rochester Minnesota Municipal Fund |
Oppenheimer International Growth Fund |
Oppenheimer Rochester National Municipals |
Oppenheimer International Small Company Fund |
Oppenheimer Rochester North Carolina Municipal Fund |
Oppenheimer Limited Term California Municipal Fund |
Oppenheimer Rochester Ohio Municipal Fund |
Oppenheimer Limited-Term Government Fund |
Oppenheimer Rochester Short Term Municipal Fund |
Oppenheimer Limited Term Municipal Fund |
Oppenheimer Rochester Virginia Municipal Fund |
Oppenheimer Main Street Fund |
Oppenheimer Select Value Fund |
Oppenheimer Main Street Select Fund |
Oppenheimer Senior Floating Rate Fund |
Oppenheimer Main Street Small- & Mid-Cap Fund |
|
Oppenheimer Small- & Mid-Cap Growth Fund |
|
Oppenheimer LifeCycle Funds: |
Oppenheimer Small- & Mid-Cap Value Fund |
Oppenheimer Transition 2010 Fund |
Oppenheimer U.S. Government Trust |
Oppenheimer Transition 2015 Fund |
Oppenheimer Value Fund |
Oppenheimer Transition 2020 Fund |
Limited-Term New York Municipal Fund |
Oppenheimer Transition 2025 Fund |
Rochester Fund Municipals |
Oppenheimer Transition 2030 Fund |
|
Oppenheimer Transition 2040 Fund |
|
Oppenheimer Transition 2050 Fund |
Classes of Shares. Each class of shares of the Fund represents an interest in the same portfolio of investments of the Fund. However, each class has different shareholder privileges and features. The net income attributable to Class B or Class C shares and the dividends payable on Class B or Class C shares will be reduced by incremental expenses borne solely by that class. Those expenses include the asset-based sales charges to which Class B and Class C shares are subject.
The availability of different classes of shares permits an investor to choose the method of purchasing shares that is more appropriate for the investor. That may depend on the amount of the purchase, the length of time the investor expects to hold shares, and other relevant circumstances. Class A shares normally are sold subject to an initial sales charge. While Class B and Class C shares have no initial sales charge, the purpose of the deferred sales charge and asset-based sales charge on Class B and Class C shares is the same as that of the initial sales charge on Class A shares – to compensate the Distributor and brokers, dealers and financial institutions that sell shares of the Fund. A salesperson who is entitled to receive compensation from his or her firm for selling Fund shares may receive different levels of compensation for selling one class of shares rather than another.
The Distributor will not accept a purchase order of more than $100,000 for Class B shares or a purchase order of $1 million or more to purchase Class C shares on behalf of a single investor (not including dealer "street name" or omnibus accounts).
Class B or Class C shares may not be purchased by a new investor directly from the Distributor without the investor designating another registered broker-dealer.
Class A Sales Charges Reductions and Waivers. There is an initial sales charge on the purchase of Class A shares of each of the Oppenheimer funds except for the money market funds (under certain circumstances described in this SAI, redemption proceeds of certain money market fund shares may be subject to a CDSC). As discussed in the Prospectus, a reduced initial sales charge rate may be obtained for certain share purchases because of the reduced sales efforts and reduction in expenses realized by the Distributor, dealers or brokers in making such sales. Sales charge waivers may apply in certain other circumstances because the Distributor or dealer or broker incurs little or no selling expenses. Appendix A to this SAI includes additional information regarding certain of these sales charge reductions and waivers.
A reduced sales charge rate may be obtained for Class A shares under a Right of Accumulation or Letter of Intent because of the reduction in sales effort and expenses to the Distributor, dealers or brokers for those sales.
Class B Conversion. Under current interpretations of applicable federal income tax law by the Internal Revenue Service (the "IRS"), the conversion of Class B shares to Class A shares 72 months after purchase is not treated as a taxable event for the shareholder. If those laws or the IRS' interpretation of those laws should change, the automatic conversion feature may be suspended. In that event, no further conversions of Class B shares would occur while that suspension remained in effect. Although Class B shares could then be exchanged for Class A shares on the basis of relative net asset value of the two classes, without the imposition of a sales charge or fee, such exchange could constitute a taxable event for the shareholder, and absent such exchange, Class B shares might continue to be subject to the asset-based sales charge for longer than six years.
Letter of Intent. Under a Letter of Intent (a "Letter"), you may be able to reduce the initial sales charge rate that applies to your Class A share purchases of the Fund if you purchase Class A, Class B or Class C shares of the Fund or other Oppenheimer funds or Class A, Class B, Class C, Class G and Class H units of advisor sold Section 529 plans, for which the Manager or the Distributor serves as the Program Manager or Program Distributor.
A Letter is an investor's statement in writing to the Distributor of his or her intention to purchase a specified value of those shares or units during a 13 month period (the "Letter period"), which begins on the date of the investor's first share purchase following the establishment of the Letter. The sales charge on each purchase of Class A shares during the Letter period will be at the rate that would apply to a single lump-sum purchase of shares in the amount intended to be purchased. In submitting a Letter, the investor makes no commitment to purchase shares. However, if the investor does not fulfill the terms of the Letter within the Letter period, he or she agrees to pay the additional sales charges that would have been applicable to any purchases that are made. The investor agrees that shares equal in value to 2% of the intended purchase amount will be held in escrow by the Transfer Agent for that purpose, as described in "Terms of Escrow" below. It is the responsibility of the dealer of record and/or the investor to advise the Distributor about the Letter when placing purchase orders during the Letter period. The investor must also notify the Distributor or his or her financial intermediary of any qualifying 529 plan holdings.
To determine whether an investor has fulfilled the terms of a Letter, the Transfer Agent will count purchases of "qualified" Class A, Class B and Class C shares and Class A, Class B, Class C, Class G and Class H units during the Letter period. Purchases of Class N or Class Y shares, purchases made by reinvestment of dividends or capital gains distributions from the Fund or other Oppenheimer funds, purchases of Class A shares with redemption proceeds under the Reinvestment Privilege, and purchases of Class A shares of Oppenheimer Money Market Fund, Inc. or Oppenheimer Cash Reserves on which a sales charge has not been paid do not count as "qualified" shares for satisfying the terms of a Letter. An investor will also be considered to have fulfilled the Letter if the value of the investor's total holdings of qualified shares on the last day of the Letter period equals or exceeds the intended purchase amount.
If the terms of the Letter are not fulfilled within the Letter period, the concessions previously paid to the dealer of record for the account and the amount of sales charge retained by the Distributor will be adjusted on the first business day following the expiration of the Letter period to reflect the sales charge rates that are applicable to the actual total purchases.
If total eligible purchases during the Letter period exceed the intended purchase amount and also exceed the amount needed to qualify for the next sales charge rate reduction (stated in the Prospectus), the sales charges paid may be adjusted to that lower rate. That adjustment will only be made if and when the dealer returns to the Distributor the amount of the excess concessions allowed or paid to the dealer over the amount of concessions that are applicable to the actual amount of purchases. The reduced sales charge adjustment will be made by adding to the investors account the number of additional shares that would have been purchased if the lower sales charge rate had been used. Those additional shares will be determined using the net asset value per share in effect on the date of such adjustment.
By establishing a Letter, the investor agrees to be bound by the terms of the Prospectus, this SAI and the application used for a Letter, and if those terms are amended to be bound by the amended terms and that any amendments by the Fund will apply automatically to existing Letters. Group retirement plans qualified under section 401(a) of the Internal Revenue Code may not establish a Letter, however defined benefit plans and Single K sole proprietor plans may do so.
Terms of Escrow That Apply to Letters of Intent .
1. Out of the initial purchase, or out of subsequent purchases if necessary, the Transfer Agent will hold in escrow Fund shares equal to 2% of the intended purchase amount specified in the Letter. For example, if the intended purchase amount is $50,000, the escrow amount would be shares valued at $1,000 (computed at the offering price for a $50,000 share purchase). Any dividends and capital gains distributions on the escrowed shares will be credited to the investor's account.
2. If the Letter applies to more than one fund account, the investor can designate the fund from which shares will be escrowed. If no fund is selected, the Transfer Agent will escrow shares in the fund account that has the highest dollar balance on the date of the first purchase under the Letter. If there are not sufficient shares to cover the escrow amount, the Transfer Agent will escrow shares in the fund account(s) with the next highest balance(s). If there are not sufficient shares in the accounts to which the Letter applies, the Transfer Agent may escrow shares in other accounts that are linked for Right of Accumulation purposes. Additionally, if there are not sufficient shares available for escrow at the time of the first purchase under the Letter, the Transfer Agent will escrow future purchases until the escrow amount is met.
3. If, during the Letter period, an investor exchanges shares of the Fund for shares of another fund (as described in the Prospectus section titled "The OppenheimerFunds Exchange Privilege"), the Fund shares held in escrow will automatically be exchanged for shares of the other fund and the escrow obligations will also be transferred to that fund.
4. If the total purchases under the Letter are less than the intended purchases specified, on the first business day after the end of the Letter period, the Distributor will redeem escrowed shares equal in value to the difference between the dollar amount of the sales charges actually paid and the amount of the sales charges that would have been paid if the total purchases had been made at a single time. Any shares remaining after such redemption will be released from escrow.
5. If the terms of the Letter are fulfilled, the escrowed shares will be promptly released to the investor at the end of the Letter period.
6. By signing the Letter, the investor irrevocably constitutes and appoints the Transfer Agent as attorney-in-fact to surrender for redemption any or all escrowed shares.
Share Certificates. When you purchase shares of the Fund, your ownership interest in the shares of the Fund will be recorded as a book entry on the records of the Fund. The Fund will not issue or re-register physical share certificates.
Cancellation of Purchase Orders. Cancellation of purchase orders for the Fund's shares (for example, when a purchase check is returned to the Fund unpaid) causes a loss to be incurred when the net asset values of the Fund's shares on the cancellation date is less than on the purchase date. That loss is equal to the amount of the decline in the net asset value per share multiplied by the number of shares in the purchase order. The investor is responsible for that loss. If the investor fails to compensate the Fund for the loss, the Distributor will do so. The Fund may reimburse the Distributor for that amount by redeeming shares from any account registered in that investor's name, or the Fund or the Distributor may seek other redress.
AccountLink. Shares purchased through AccountLink will be purchased at the net asset value calculated on the same regular business day if the Distributor is instructed to initiate the Automated Clearing House ("ACH") transfer to buy the shares before the close of the NYSE. The NYSE normally closes at 4:00 p.m., but may close earlier on certain days. If the Distributor is instructed to initiate the ACH transfer after the close of the NYSE, the shares will be purchased on the next regular business day.
Dividends will begin to accrue on the shares purchased through the ACH system on the business day the Fund receives Federal Funds before the close of the NYSE. The proceeds of ACH transfers are normally received by the Fund three days after a transfer is initiated. If Federal Funds are received on a business day after the close of the NYSE, dividends will begin to accrue on the next regular business day. If the proceeds of an ACH transfer are not received on a timely basis, the Distributor reserves the right to cancel the purchase order. The Distributor and the Fund are not responsible for any delays in purchasing shares resulting from delays in ACH transmissions.
The minimum purchase through AccountLink is generally $50, however for accounts established prior to November 1, 2002 the minimum purchase is $25.
Asset Builder Plans. As indicated in the Prospectus, you normally must establish your Fund account with $1,000 or more. However, you can open a Fund account for as little as $500 if you establish an Asset Builder Plan at the time of your initial share purchase to automatically purchase additional shares directly from a bank account.
An Asset Builder Plan is available only if your bank is an ACH member and you establish AccountLink. Under an Asset Builder Plan, payments to purchase shares of the Fund will be debited from your bank account automatically. Normally the debit will be made two business days prior to the investment dates you select on your application. Neither the Distributor, the Transfer Agent nor the Fund will be responsible for any delays in purchasing shares that result from delays in ACH transmissions.
To establish an Asset Builder Plan at the time you initially purchase Fund shares, complete the "Asset Builder Plan" information on the Account Application. To establish an Asset Builder Plan for an existing account, use the Asset Builder Enrollment Form. The Account Application and the Asset Builder Enrollment Form are available by contacting the Distributor or may be downloaded from our website at www.oppenheimerfunds.com. Before you establish a new Fund account under the Asset Builder Plan, you should obtain a prospectus of the selected Fund and read it carefully.
You may change the amount of your Asset Builder payment or you can terminate your automatic investments at any time by writing to the Transfer Agent. The Transfer Agent requires a reasonable period (approximately 10 days) after receipt of your instructions to implement them. The minimum additional purchase under an Asset Builder Plan is $50, except that for Asset Builder Plans established prior to November 1, 2002, the minimum additional purchase is $25. Shares purchased by Asset Builder Plan payments are subject to the redemption restrictions for recent purchases described in the Prospectus. An Asset Builder Plan may not be used to buy shares for OppenheimerFunds employer-sponsored qualified retirement accounts. The Fund reserves the right to amend, suspend or discontinue offering Asset Builder Plans at any time without prior notice.
Electronic Document Delivery. To access your account documents electronically via eDocs Direct, please visit our website at www.oppenheimerfunds.com and click the hyperlink "Sign Up for Electronic Document Delivery (eDocs Direct)" under the heading "I want to..." in the left hand column, or call 1.888.470.0862 for instructions.
Checkwriting. Effective January 1, 2011, shareholders will no longer be able to establish checkwriting for a new or existing account and will no longer be able to order additional checks for accounts with checkwriting privileges established before January 1, 2011. For shareholders that established checkwriting privileges before January 1, 2011, beginning June 1, 2011 the Transfer Agent will no longer accept check drafts to redeem shares from your account. Check drafts received on or after this date will be returned without payment. The following also applies to shareholders that established checkwriting privileges before January 1, 2011.
When a check is presented to United Missouri Bank (the "Bank") for clearance, the Bank will ask the Fund to redeem a sufficient number of full and fractional shares in the shareholder's account to cover the amount of the check. This enables the shareholder to continue receiving dividends on those shares until the check is presented to the Fund. Checks may not be presented for payment at the offices of the Bank or the Fund's custodian bank. This limitation does not affect the use of checks for the payment of bills or to obtain cash at other banks.
The Fund reserves the right to further amend, suspend or discontinue offering checkwriting privileges at any time. The Fund will provide you notice whenever it is required to do so by applicable law. In choosing to take advantage of the Checkwriting privilege, each shareholder that signed the account application or completed a Checkwriting card:
(1) for individual accounts, represents that they are the registered owner(s) of the shares of the Fund in that account;
(2) for accounts for corporations, partnerships, trusts and other entities, represents that they are an officer, general partner, trustee or other fiduciary or agent, as applicable, duly authorized to act on behalf of the registered owner(s);
(3) authorizes the Fund, its Transfer Agent and any bank through which the Fund's drafts (checks) are payable to pay all checks drawn on the Fund account of such person(s) and to redeem a sufficient amount of shares from that account to cover payment of each check;
(4) specifically acknowledges that if they choose to permit checks to be honored if there is a single signature on checks drawn against joint accounts, or accounts for corporations, partnerships, trusts or other entities, the signature of any one signatory on a check will be sufficient to authorize pa yment of that check and redemption from the account, even if that account is registered in the names of more than one person or more than one authorized signature appears on the
Checkwriting card or the application, as applicable;
(5) understands that the Checkwriting privilege may be terminated or amended at any time by the Fund and/or the Fund's bank; and
(6) acknowledges and agrees that neither the Fund nor its bank shall incur any liability for that amendment or termination of checkwriting privileges or for redeeming shares to pay checks reasonably believed by them to be genuine, or for returning or not paying checks that have not been accepted for any reason
Receiving Redemption Proceeds by Federal Funds Wire. The Fund would normally authorize a Federal Funds wire of redemption proceeds to be made on its next regular business day following the redemption. A Federal Funds wire may be delayed if the Fund's custodian bank is not open for business on that day. In that case, the wire will not be transmitted until the next business day on which the bank and the Fund are both open for business. No dividends will be paid on the proceeds of redeemed shares awaiting transfer by Federal Funds wire.
Redeeming Shares Through Brokers or Dealers. The Distributor is the Fund's agent to repurchase its shares from authorized brokers or dealers on behalf of their customers. Shareholders should contact their broker or dealer to arrange this type of redemption. The repurchase price per share will be the next net asset value computed after the Distributor or the broker or dealer receives the order. A repurchase will be processed at that day's net asset value if the order was received by the broker or dealer from its customer prior to the time the close of the NYSE. Normally, the NYSE closes at 4:00 p.m., but may do so earlier on some days.
For accounts redeemed through a broker-dealer, payment will ordinarily be made within three business days after the shares are redeemed. However, the Distributor must receive the required redemption documents in proper form, with the signature(s) of the registered shareholder(s) guaranteed as described in the Prospectus.
Payments "In Kind." As stated in the Prospectus, payment for redeemed shares is ordinarily made in cash. Under certain circumstances, however, the Board may determine that it would be detrimental to the best interests of the remaining shareholders for the Fund to pay for the redeemed shares in cash. In that case, the Fund may pay the redemption proceeds, in whole or in part, by a distribution "in kind" of liquid securities from the Fund's portfolio. The Fund will value securities used to pay a redemption in kind using the same method described above under "Determination of Net Asset Value Per Share." That valuation will be made as of the time the redemption price is determined. If shares are redeemed in kind, the redeeming shareholder might incur brokerage or other costs in selling the securities for cash.
The Fund has elected to be governed by Rule 18f-1 under the Investment Company Act. Under that rule, redemptions by a shareholder, of up to the lesser of $250,000 or 1% of the net assets of the Fund during any 90-day period, must be redeemed solely in cash.
Automatic Withdrawal Plans. Under an Automatic Withdrawal Plan, investors who own Fund shares can authorize the Transfer Agent to redeem shares automatically on a monthly, quarterly, semi-annual or annual basis. The minimum periodic redemption amount under an Automatic Withdrawal Plan is $50. Shareholders having AccountLink privileges may have Automatic Withdrawal Plan payments deposited to their designated bank account. Payments may also be made by check, payable to all shareholders of record and sent to the address of record for the account. Automatic withdrawals may be requested by telephone for amounts up to $1,500 per month if the payments are to be made by checks sent to the address of record for the account. Telephone requests are not available if the address on the account has been changed within the prior 15 days.
Fund shares will be redeemed as necessary to meet the requested withdrawal payments. Shares will be redeemed at the net asset value per share determined on the redemption date, which is normally three business days prior to the payment receipt date requested by the shareholder. The Fund cannot guarantee receipt of a payment on the date requested, however. Shares acquired without a sales charge will be redeemed first. Shares acquired with reinvested dividends and capital gains distributions will be redeemed next, followed by shares acquired with a sales charge, to the extent necessary to make withdrawal payments. Depending on the amount withdrawn, the investor's principal may be depleted. Payments made under these plans should not be considered as a yield or income on your investment.
Because of the sales charge assessed on Class A share purchases, shareholders should usually not make additional Class A share purchases while participating in an Automatic Withdrawal Plan. A shareholder whose Class B, Class C or Class N account is subject to a CDSC should usually not establish an automatic withdrawal plan because of the imposition of the CDSC on the withdrawals. If a CDSC does apply to a redemption, the amount of the check or payment will be reduced accordingly. Distributions of capital gains from accounts subject to an Automatic Withdrawal Plan must be reinvested in Fund shares. Dividends on shares held in the account may be paid in cash or reinvested. Required minimum distributions from OppenheimerFunds-sponsored retirement plans may not be arranged on this basis.
The shareholder may change the amount, the payment interval, the address to which checks are to be mailed, the designated bank account for AccountLink payments or may terminate a plan at any time by writing to the Transfer Agent. A signature guarantee may be required for certain changes. The requested change will usually be put into effect approximately two weeks after such notification is received. The shareholder may redeem all or any part of the shares in the account by written notice to the Transfer Agent. That notice must be in proper form in accordance with the requirements in the then-current Fund Prospectus.
The Transfer Agent will administer the Automatic Withdrawal Plan as agent for the shareholder(s) who executed the plan authorization and application submitted to the Transfer Agent. Neither the Fund nor the Transfer Agent shall incur any liability for any action taken or not taken by the Transfer Agent in good faith to administer the plan. Any share certificates must be surrendered unendorsed to the Transfer Agent with the plan application to be eligible for automatic withdrawal payments. If the Transfer Agent ceases to act as transfer agent for the Fund, the shareholder will be deemed to have appointed any successor transfer agent to act as agent in administering the plan.
The Transfer Agent will terminate a plan upon its receipt of evidence, satisfactory to it, that the shareholder has died or is legally incapacitated. The Fund may also give directions to the Transfer Agent to terminate a plan. Shares that have not been redeemed at the time a plan is terminated will be held in an account in the name of the shareholder. Share certificates will not be issued for any such shares and all dividends will be reinvested in the account unless and until different instructions are received, in proper form, from the shareholder, his or her executor or guardian, or another authorized person.
The Fund reserves the right to amend, suspend or discontinue offering these plans at any time without prior notice. By requesting an Automatic Withdrawal Plan, the shareholder agrees to the terms and conditions that apply to such plans. These provisions may be amended from time to time by the Fund and/or the Distributor. When adopted, any amendments will automatically apply to existing Plans.
Transfers of Shares. A shareholder will not be required to pay a CDSC when Fund shares are transferred to registration in the name of another person or entity. The transfer may occur by absolute assignment, gift or bequest, as long as it does not involve, directly or indirectly, a public sale of the shares. When shares subject to a CDSC are transferred, the CDSC will continue to apply to the transferred shares and will be calculated as if the transferee had acquired the shares in the same manner and at the same time as the transferring shareholder.
If less than all of the shares held in an account are transferred, and some but not all shares in the account would be subject to a CDSC if redeemed at that time, the priorities for the imposition of the CDSC described in the Prospectus will be followed in determining the order in which the shares are transferred.
Minimum Balance Fee. As stated in the Prospectus, a $12 annual "Minimum Balance Fee" is assessed on each Fund account with a share balance of less than $500. The
Minimum Balance Fee is automatically deducted from each such Fund account in September.
Listed below are certain cases in which the Fund has elected, in its discretion, not to assess the Minimum Balance Fee. These exceptions are subject to change:
Unclaimed accounts may be subject to state escheatment laws, and the Fund and the Transfer Agent will not be liable to shareholders or their representatives for good faith compliance with those laws.
The Fund reserves the authority to modify the Minimum Balance Fee in its discretion.
Involuntary Redemptions. The Fund's Board has the right to involuntarily redeem shares held in any account with an aggregate net asset value of less than $200. The Board may change the amount of the aggregate net asset value to which an involuntary redemption may apply. The Board will not cause the involuntary redemption of shares in an account if the aggregate net asset value of such shares has fallen below the stated minimum solely as a result of market fluctuations. If the Board exercises this right, it may also determine the requirements for any notice to be given to the shareholders (but not less than 30 days). Alternatively, the Board may set requirements for the shareholder to increase the investment, or set other terms and conditions so that the shares would not be involuntarily redeemed.
Reinvestment Privilege. Within six months after redeeming Class A or Class B shares, a shareholder may reinvest all or part of the redemption proceeds without a sales charge if:
The reinvestment may only be made in Class A shares of the Fund or other Oppenheimer funds into which shares of the Fund are exchangeable, as described in "How to Exchange Shares" below. This privilege does not apply to Class C shares or Class Y shares or to purchases made through automatic investment options. The Fund may amend, suspend or cease offering this reinvestment privilege at any time for shares redeemed after the date of the amendment, suspension or cessation. The shareholder must request the reinvestment privilege from the Transfer Agent or his or her financial intermediary at the time of purchase.
Reinvestment will be at the next net asset value computed after the Transfer Agent receives the reinvestment order. Any capital gain that was realized when the shares were redeemed is taxable, and reinvestment will not alter any capital gains tax payable on that gain. If there was a capital loss on the redemption, some or all of the loss may not be tax deductible, depending on the timing and amount of the reinvestment. Under the Internal Revenue Code, if the redemption proceeds of Fund shares on which a sales charge was paid are reinvested in shares of the Fund or another of the Oppenheimer funds within 90 days after the payment of the sales charge, in certain circumstances, the shareholder's basis in the shares of the Fund that were redeemed may not include the amount of the sales charge paid. That would reduce the loss or increase the gain recognized from the redemption, however, the sales charge would be a dded to the basis of the shares acquired with the redemption proceeds.
Shares of the Fund (including shares acquired by reinvestment of dividends or distributions from other Oppenheimer funds) may be exchanged for shares of certain other Oppenheimer funds at net asset value without the imposition of a sales charge, however a CDSC may apply to the acquired shares as described below. Shares of certain money market funds purchased without a sales charge may be exchanged for shares of other Oppenheimer funds offered with a sales charge upon payment of the sales charge. Exchanges into another Oppenheimer fund must meet any applicable minimum investment requirements of that fund.
As stated in the Prospectus, shares of a particular class of Oppenheimer funds having more than one class of shares may be exchanged only for shares of the same class of other Oppenheimer funds. The prospectus of each of the Oppenheimer funds indicates which share class or classes that fund offers and provides information about limitations on the purchase of particular share classes, as applicable for the particular fund. Shareholders that own more than one class of shares of the Fund must specify which class of shares they wish to exchange.
You can obtain a current list of the share classes offered by the funds by calling the toll-free phone number on the first page of this SAI.
The different Oppenheimer funds that are available for exchange have different investment objectives, policies and risks. A shareholder should determine whether the fund selected is appropriate for his or her investment goals and should be aware of the tax consequences of an exchange. For federal income tax purposes, an exchange transaction is treated as a redemption of shares of one fund and a purchase of shares of another. Some of the tax consequences of reinvesting redemption proceeds are discussed in "Reinvestment Privilege," above. The Fund, the Distributor, and the Transfer Agent are unable to provide investment, tax or legal advice to a shareholder in connection with an exchange request or any other investment transaction.
The Fund may amend, suspend or terminate the exchange privilege at any time. Although the Fund may impose these changes at any time, it will provide notice of those changes whenever it is required to do so by applicable law. It may be required to provide 60 days' notice prior to materially amending or terminating the exchange privilege, however that notice is not required in extraordinary circumstances.
How Exchanges Affect Contingent Deferred Sales Charges. A CDSC is imposed on exchanges of shares in the following cases:
When Class B or Class C shares are exchanged, the priorities for the imposition of the CDSC described in "How To Buy Shares" in the Prospectus will be followed in determining the order in which the shares are exchanged. Before exchanging shares, shareholders should consider how the exchange may affect any CDSC that might be imposed on the subsequent redemption of remaining shares.
Telephone Exchange Requests. When exchanging shares by telephone, a shareholder must have an existing account in the fund to which the exchange is to be made. Otherwise, the investors must obtain a prospectus of that fund before the exchange request may be submitted. If all telephone lines are busy (which might occur, for example, during periods of substantial market fluctuations), shareholders might not be able to request exchanges by telephone and would have to submit written exchange requests.
Automatic Exchange Plans. Under an Automatic Exchange Plan, shareholders can authorize the Transfer Agent to exchange shares of the Fund for shares of other Oppenheimer funds automatically on a monthly, quarterly, semi-annual or annual basis. The minimum amount that may be exchanged to each other fund account is $50. Instructions regarding the exchange amount, the selected fund(s) and the exchange interval should be provided on the OppenheimerFunds account application or by signature-guaranteed instructions. Any requested changes will usually be put into effect approximately two weeks after notification of a change is received. Exchanges made under these plans are subject to the restrictions that apply to exchanges as set forth in this SAI and in "The OppenheimerFunds Exchange Privilege" section in the Prospectus.
The Transfer Agent will administer the Automatic Exchange Plan as agent for the shareholder(s). Neither the Fund nor the Transfer Agent shall incur any liability for any action taken or not taken by the Transfer Agent in good faith to administer the plan. Any share certificates must be surrendered unendorsed to the Transfer Agent with the plan application to be eligible for automatic exchanges. If the Transfer Agent ceases to act as transfer agent for the Fund, the shareholder will be deemed to have appointed any successor transfer agent to act as agent in administering the plan.
The Fund reserves the right to amend, suspend or discontinue offering automatic exchanges at any time without prior notice. By requesting an Automatic Exchange Plan, the shareholder agrees to the terms and conditions that apply to such plans. These provisions may be amended from time to time and any amendments will automatically apply to existing Plans.
Processing Exchange Requests. Shares to be exchanged are redeemed at the net asset value calculated on the regular business day the Transfer Agent receives an exchange request in proper form before the close of the NYSE (the "Redemption Date"). Normally, shares of the fund to be acquired are purchased on the Redemption Date, but such purchases may be delayed by up to five business days if it is determined that either fund would be disadvantaged by an immediate transfer of the redemption proceeds. The Fund reserves the right, in its discretion, to refuse any exchange request that may disadvantage it. For example, if the receipt of multiple exchange requests from a dealer might require the disposition of portfolio securities at a time or at a price that might be disadvantageous to the Fund, the Fund may refuse the request.
When you exchange some or all of your shares, any special features of your account that are available in the new fund (such as an Asset Builder Plan or Automatic Withdrawal Plan) will be applied to the new fund account unless you tell the Transfer Agent not to do so.
Shares that are subject to a restriction cited in the Prospectus or this SAI and shares covered by a share certificate that is not tendered will not be exchanged. If an exchange request includes such shares, only the shares available without restrictions will be exchanged.
Dividends and Other Distributions. Dividends will be payable on shares held of record at the time of the previous determination of net asset value, or as otherwise described in "How to Buy Shares." Daily dividends will not be declared or paid on newly purchased shares until such time as Federal Funds (funds credited to a member bank's account at the Federal Reserve Bank) are available from the purchase payment for such shares. Normally, purchase checks received from investors are converted to Federal Funds on the next business day. Shares purchased through dealers or brokers normally are paid for by the third business day following the placement of the purchase order.
Shares redeemed through the regular redemption procedure will be paid dividends through and including the day on which the redemption request is received by the Transfer Agent in proper form. Dividends will be declared on shares repurchased by a dealer or broker for three business days following the trade date (that is, up to and including the day prior to settlement of the repurchase). If all shares in an account are redeemed, all dividends accrued on shares of the same class in the account will be paid together with the redemption proceeds.
The Fund's practice of attempting to pay dividends on Class A shares at a constant level requires the Manager to monitor the Fund's portfolio and, if necessary, to select higher-yielding securities when it is deemed appropriate to seek income at the level needed to meet the target. Those securities must be within the Fund's investment parameters, however. The Fund expects to pay dividends at a targeted level from its net investment income and other distributable income without any impact on the net asset values per share.
The distributions made by the Fund will vary depending on market conditions, the composition of the Fund's portfolio and Fund expenses. Distributions are calculated in the same manner, at the same time, and on the same day for each class of shares but will normally differ in amount. Distributions on Class B and Class C shares are expected to be lower than distributions on Class A shares and Class Y shares (if applicable) because of the effect of the asset-based sales charge on Class B and Class C shares. Whether they are reinvested in Fund shares or received in cash, distributions are taxable to shareholders, as discussed below, regardless of whether the distributions are paid in cash or reinvested in additional shares of the Fund (or of another fund). Shareholders receiving a distribution in the form of additional shares will be treated as receiving a distribution in an amount equal to the fair market value of the shares received, determined as of the reinvestment date.
Returned checks for the proceeds of redemptions are invested in shares of Oppenheimer Money Market Fund, Inc. If a dividend check or a check representing an automatic withdrawal payment is returned to the Transfer Agent by the Postal Service as undeliverable, it will be reinvested in shares of the Fund. Reinvestments will be made as promptly as possible after the return of such checks to the Transfer Agent. Unclaimed accounts may be subject to state escheatment laws, and the Fund and the Transfer Agent will not be liable to shareholders or their representatives for compliance with those laws in good faith.
Taxes. The federal tax treatment of the Fund and distributions to shareholders is briefly highlighted in the Prospectus. The following is only a summary of certain additional tax considerations generally affecting the Fund and its shareholders. The tax discussion in the Prospectus and this SAI is based on tax laws in effect on the date of the Prospectus and SAI. Those laws and regulations may be changed by legislative, judicial, or administrative action, sometimes with retroactive effect. State and local tax treatment may differ from the treatment under the Internal Revenue Code as described below.
Before purchasing Fund shares, investors are urged to consult their tax advisers with reference to their own particular tax circumstances as well as the consequences of federal, state, local and any other jurisdiction's tax rules affecting an investment in the Fund.
Qualification and Taxation as a Regulated Investment Company. The Fund has elected to be taxed as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code. As long as the Fund qualifies as a RIC, the Fund is not subject to federal income tax on the portion of its net investment income (that is, taxable interest, dividends, and other taxable ordinary income, net of expenses) and capital gain net income (that is, the excess of capital gains over capital losses) that it distributed to shareholders.
If the Fund qualifies as a "regulated investment company" under the Internal Revenue Code, it will not be liable for federal income tax on amounts it pays as dividends and other distributions. That qualification enables the Fund to "pass through" its income and realized capital gains to shareholders without having to pay tax on them. The Fund qualified as a regulated investment company in its last fiscal year and intends to qualify in future years, but reserves the right not to qualify. The Internal Revenue Code contains a number of complex tests to determine whether the Fund qualifies. One or more Funds might not meet those tests in a particular year. If the Fund does not qualify, the Fund would (unless certain cure provisions apply) be treated for tax purposes as an ordinary corporation and would receive no tax deduction for payments of dividends and other distributions made to shareholders. In su ch an instance, all of the Fund's dividends would be taxable to shareholders.
Qualifying as a RIC . To qualify as a RIC, the Fund must be a domestic corporation that is either registered under the Investment Company Act as a management company or unit investment trust or is otherwise described in the Internal Revenue Code as having a specific status under the Investment Company Act. The Fund must also satisfy certain tests with respect to (i) the composition of its gross income, (ii) the composition of its assets and (iii) the amount of its dividend distributions.
Gross Income Test. To qualify as a RIC, the Fund must derive at least 90% of its gross income from dividends, interest, certain payments with respect to loans of securities, gains from the sale or other disposition of securities or foreign currencies, and certain other income derived with respect to its business of investing in such securities or currencies (including, but not limited to, gains from options, futures or forward contracts), and net income derived from interests in certain "qualified publicly traded partnerships."
Asset Test. In addition, at the close of each quarter of its taxable year, the Fund must satisfy two asset tests. First, at least 50% of the value of the Fund's assets must consist of U.S. Government securities, securities of other RIC's, securities of other issuers ("Other Issuers") and cash or cash items (including receivables). The securities of an Other Issuer are not counted towards satisfying the 50% test if the Fund either invests more than 5% of the value of the Fund's assets in the securities of that Other Issuer or holds more than 10% of the outstanding voting securities of that Other Issuer. Second, no more than 25% of the value of the Fund's total assets may be invested in (1) the securities of any one issuer (other than U.S. Government securities and the securities of other RIC's), (2) the securities of two or more issuers (other than the securities of other RIC's) that the Fund controls and that are engaged in the same or similar trades or businesses, or (3) the securities of one or more qualified publicly traded partnerships. For purposes of these tests, obligations issued or guaranteed by certain agencies or instrumentalities of the U.S. Government are treated as U.S. Government securities.
Dividend Distributions Test. During the taxable year or, under specified circumstances, within 12 months after the close of the taxable year, the Fund must distribute at least 90% of its investment company taxable income and at least 90% of its net tax-exempt income for the taxable year, which is generally its net investment income and the excess of its net short-term capital gain minus its net long-term capital loss.
Failure to Qualify. If the Fund failed to qualify as a RIC, it would (unless certain cure provisions apply) then be unable to deduct from its taxable income the dividend distributions made to its shareholders and therefore those amounts would be subject to a Fund-level corporate income tax. In addition, the Fund would not be able to characterize the distributions made to its shareholders as anything other than ordinary corporate distributions. To the extent the Fund had "earnings and profits" (as determined for tax purposes), distributions to its shareholders would be taxable as ordinary dividend income. In the case of individuals, those distributions may qualify for the maximum 15% tax rate on dividend income (for taxable years beginning before 2013) and, in the case of corporations, they may qualify for the dividends-received deduction.
Excise Tax on Regulated Investment Companies. Under the Internal Revenue Code, the Fund must pay an annual, non-deductible excise tax unless, by December 31st each year, it distributes (1) 98% of its taxable investment income earned from January 1 through December 31, (2) 98.2% of its capital gain net income realized in the period from November 1 of the prior year through October 31 of the current year and (3) undistributed amounts from prior years. It is presently anticipated that the Fund will meet these distribution requirements, although to do so the Fund might be required to liquidate portfolio investments in certain circumstances. In some years, the Board and the Manager may determine that it would be in the shareholders' best interests for the Fund to pay the excise tax on undistributed amounts rather than making the required level of distributions. In that event, the tax may reduce shareholder total returns from the Fund.
Taxation of Fund Distributions. Distributions by the Fund will be treated in the manner described below regardless of whether the distributions are paid in cash or reinvested in additional shares of the Fund (or of another fund). The Fund's distributions will be treated as dividends to the extent paid from the Fund's earnings and profits (as determined under the Internal Revenue Code). Distributions in excess of the Fund's earnings and profits will first reduce the adjusted tax basis of a shareholder's shares and, after such tax basis is reduced to zero, will constitute capital gain to the shareholder (assuming the shares are held as a capital asset). The Fund's dividends will not be eligible for the dividends-received deduction for corporations. Shareholders reinvesting a distribution in shares of the distributing Fund, or one of the other Oppenheimre funds, will be treated as receiving a distribution i n an amount equal to the fair market value of the shares received, determined as of the reinvestment date.
Exempt-Interest Dividends. The Fund intends to satisfy the requirements under the Internal Revenue Code during each fiscal year to pay "exempt-interest dividends" to its shareholders. To qualify, at the end of each quarter of its taxable year, at least 50% of the value of the Fund's total assets must consist of obligations described in Section 103(a) of the Internal Revenue Code, as amended. Dividends that are derived from net interest income earned by the Fund on tax-exempt municipal securities and reported as "exempt-interest dividends" in a written notice sent by the Fund to its shareholders after the close of the Fund's taxable year will be excludable from gross income of shareholders for federal income tax purposes. To the extent any Fund fails to qualify to pay exempt-interest dividends in any given taxable year, such dividends would be included in the gross income of shareholders for federal income tax purposes.
The Fund will allocate interest from tax-exempt municipal securities (as well as ordinary income, capital gains, and tax preference items discussed below) among its shares according to a method that is based on the gross income allocable to each class of shareholders during the taxable year (or under another method, if prescribed by the IRS and SEC). The percentage of each distribution with respect to a taxable year of the Fund that is an exempt-interest dividend will be the same, even though that percentage may differ substantially from the percentage of the Fund's income that was tax-exempt during a particular portion of the year. This percentage normally will be determined after the close of the taxable year.
Exempt-interest dividends are excludable from a shareholder's gross income for federal income tax purposes. Interest on indebtedness incurred or continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as the Fund, will not be deductible by the investor for federal income tax purposes to the extent attributable to exempt-interest dividends. Shareholders receiving Social Security or railroad retirement benefits should be aware that exempt-interest dividends are a factor in determining whether, and to what extent, such benefits are subject to federal income tax.
A portion of the exempt-interest dividends paid by the Fund may give rise to liability under the federal alternative minimum tax for individual or corporate shareholders. Income on certain private activity bonds issued after August 7, 1986, while excludable from gross income for purposes of the federal income tax, is an item of "tax preference" that must be included in income for purposes of the federal alternative minimum tax for individuals and corporations. "Private activity bonds" are bonds that are used for purposes not generally performed by governmental entities and that benefit non-governmental entities. The amount of any exempt-interest dividends that is attributable to tax preference items for purposes of the alternative minimum tax will be identified when tax information is distributed by the Fund.
In addition, corporate taxpayers are subject to the federal alternative minimum tax based in part on certain differences between taxable income as adjusted for other tax preferences and the corporation's "adjusted current earnings," which more closely reflect a corporation's economic income. Because an exempt-interest dividend paid by the Fund will be included in adjusted current earnings, a corporate shareholder may be required to pay alternative minimum tax on exempt-interest dividends paid by the Fund.
Shareholders are advised to consult their tax advisers with respect to their liability for federal alternative minimum tax, and for advice concerning the loss of exclusion from gross income for exempt-interest dividends paid to a shareholder who would be treated as a "substantial user" or "related person" under Section 147(a) of the Internal Revenue Code with respect to property financed with the proceeds of an issue of private activity bonds held by the Fund.
Ordinary Income Dividends. Distributions from income earned by the Fund from one or more of the following sources will be treated as ordinary income to the shareholder:
Capital Gain Distributions. The Fund may either retain or distribute to shareholders its net capital gain (the excess of net long-term capital gain over net short-term capital loss). Currently, the Fund intends to distribute these gains. Distributed net capital gain that is properly reported will be taxable to the Fund's shareholders as long-term capital gain. The amount of distributions reported as net capital gain will be reported to shareholders shortly after the end of each year. Such treatment will apply no matter how long the shareholder has held Fund shares and even if the gain was recognized by the Fund before the shareholder acquired Fund shares.
If the Fund elects to retain all or a portion of its net capital gain for a taxable year, the Fund will be subject to tax on such gain at the highest corporate tax rate. If the Fund so elects, each shareholder of record on the last day of such taxable year will be informed of his or her portion of both the gain and the tax paid, will be required to report the gain as long-term capital gain, will be able to claim the tax paid as a refundable credit, and will increase the basis of his or her shares by the amount of the capital gain reported minus the tax credit.
For taxable years beginning after December 31, 2012, an additional 3.8% Medicare tax will be imposed on certain net investment income (including ordinary dividends and capital gain distributions received from the Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person's "modified adjusted gross income" (in the case of an individual) or "adjusted gross income" (in the case of an estate or trust) exceeds a threshold amount.
Backup Withholding. The Fund will be required in certain cases to withhold 28% (currently scheduled to increase to 31% after 2012) of ordinary income dividends, capital gain distributions and the proceeds of the redemption of shares, paid to any shareholder (1) who has failed to provide a correct taxpayer identification number or to properly certify that number when required, (2) who is subject to backup withholding for failure to report properly the receipt of interest or dividend income, or (3) who has failed to certify to the Fund that the shareholder is not subject to backup withholding or is an "exempt recipient" (such as a corporation). Any tax withheld by the Fund is remitted by the Fund to the U.S. Treasury and is identified in reports mailed to shareholders in January of each year with a copy sent to the IRS. Backup withholding is not an additional tax. Any amount withheld generally may be allowed as a refund or a credit against a shareholder's federal income tax liability, provided the required information is timely provided to the IRS.
Tax Consequences of Share Redemptions. If all or a portion of a shareholder's investment in the Fund is redeemed, the shareholder will generally recognize a gain or loss on the redeemed shares equal to the difference between the proceeds of the redeemed shares and the shareholder's adjusted tax basis in the shares. In general, any gain or loss from the redemption of shares of the Fund will be considered capital gain or loss if the shares were held as a capital asset and will be long-term capital gain or loss if the shares were held for more than one year. Any capital loss arising from the redemption of shares held for six months or less, however, will be treated as a long-term capital loss to the extent of the amount of capital gain dividends received on those shares. Special holding period rules under the Internal Revenue Code apply in this case to determine the holding period of shares. There are limits on th e deductibility of capital losses in any year.
All or a portion of any loss on redeemed shares may be disallowed if the shareholder purchases other shares of the Fund within 30 days before or after the redemption (including purchases through the reinvestment of dividends). In that case, the basis of the acquired shares will be adjusted to reflect the disallowed loss. For shares acquired on or before December 22, 2010, losses realized by a shareholder on the redemption of Fund shares within six months of purchase will be disallowed for federal income tax purposes to the extent of exempt-interest dividends received on such shares. For shares acquired after December 22, 2010, this disallowance rule will not apply to any exempt-interest regular dividend paid by the Fund, provided that the Fund declares exempt-interest dividends daily in an amount equal to at least 90% of its net tax-exempt interest and pays such dividends at least monthly. If a shareholder exercises the exchange privilege within 90 days after acquiring Fund shares, in certain circumstances, any loss that the shareholder recognizes on the exchange will be reduced, or any gain will be increased, to the extent that sales charge paid on the exchanged shares reduces any charges the shareholder would have incurred on the purchase of the new shares in the absence of the exchange privilege. Such sales charge will be treated as an amount paid for the new shares.
Taxation of Foreign Shareholders. Taxation of a foreign shareholder depends primarily on whether the foreign shareholder's income from the Fund is effectively connected with the conduct of a U.S. trade or business. "Foreign shareholders" include, but are not limited to, a nonresident alien individual, a foreign trust, a foreign estate, a foreign corporation, or a foreign partnership.
If a foreign shareholder fails to provide a properly completed and signed Certificate of Foreign Status, the Fund will be required to withhold U.S. tax on ordinary income dividends, capital gains distributions and the proceeds of the redemption of shares. Provided the Fund obtains a proper certification of foreign status, ordinary income dividends that are paid by the Fund to foreign shareholders and that are not "effectively connected income," will be subject to a U.S. withholding tax. The tax rate may be reduced if the foreign person's country of residence has an income tax treaty with the United States allowing for a reduced tax rate on ordinary income dividends paid by the Fund. If the ordinary income dividends from the Fund are effectively connected with the conduct of a U.S. trade or business, then the foreign shareholder may claim an exemption from the U.S. withholding tax described above provided the Fund obtains a properly completed and signed Certificate of Foreign Status. Any tax withheld by the Fund is remitted to the U.S. Treasury and all income and any tax withheld is identified in reports mailed to shareholders in the early part of each year with a copy sent to the IRS. Capital gain dividends are not subject to U.S. withholding tax unless the recipient is a nonresident alien who is present in the United States for 183 days or more during the taxable year in which the dividends are received. A foreign individual who is present in the United States for 183 days or more generally loses his or her status as a nonresident alien.
For taxable years of the Fund beginning before January 1, 2012, properly reported dividends are generally exempt from U.S. federal withholding tax on foreign persons provided such dividends (i) are derived from the Fund's "qualified net interest income" (generally, the Fund's U.S. source interest income, other than certain contingent interest and interest from obligations of a corporation or partnership in which the Fund is a 10% or greater shareholder, reduced by expenses that are allocable to such income) or (ii) are derived from the Fund's "qualified short-term capital gains" (generally, the excess of the Fund's net short-term capital gain over the Fund's net long-term capital loss for such taxable year). In order to qualify for this exemption from withholding, a shareholder that is a foreign person must comply with applicable certification requirements relating to its non-U.S. status. However, dependi ng on its circumstances, the Fund may report some, all, or none of its potentially eligible dividends as interest-related dividends or as short-term capital gain dividends, and/or treat such dividends, in whole or in part, as ineligible for this exemption from withholding on foreign persons. In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the payment as qualified net interest income or qualified short-term capital gain. Shareholders that are foreign persons should contact their intermediaries with respect to the application of these rules to their accounts.
The tax consequences to foreign persons entitled to claim the benefits of an applicable income tax treaty may be different from those described in this SAI. Foreign shareholders are urged to consult their tax advisers with respect to the particular tax consequences of an investment in the Fund, including the applicability of the U.S. withholding taxes described above and the possible applicability of U.S. estate tax.
Under recently-enacted legislation, payments after 2012 of dividends on, and gross proceeds from the redemption of, shares of the Fund made to "foreign financial institutions" and certain other foreign entities will be subject to U.S. withholding tax at a rate of 30% unless various certification, information reporting, due diligence and other applicable requirements (different from, and in addition to, those described above) are satisfied. Payments that are taken into account as effectively connected income are not subject to these withholding rules. Foreign shareholders should consult their own tax advisors as to the applicability and consequences of this new legislation to them.
Recently-enacted legislation imposes information reporting requirements on individuals that hold any interest in a "specified foreign financial asset" if the aggregate value of all such assets held by such individual exceeds $50,000. Significant penalties can apply upon a failure to make the required disclosure and in respect to understatements of tax attributable to undisclosed foreign financial assets. This information reporting requirement is generally applicable for taxable years beginning after March 18, 2010. The scope of this reporting requirement is not entirely clear and all shareholders should consult their own tax advisors as to whether reporting may be required in respect of their indirect interests in the Fund's investments.
Tax Shelter and Other Reporting Requirements. If a shareholder realizes a loss on the disposition of Fund shares of at least $2 million in any single taxable year or $4 million in any combination of taxable years (for an individual shareholder); or at least $10 million in any single taxable year or $20 million in any combination of taxable years (for a corporate shareholder), the shareholder must file with the Internal Revenue Service a disclosure statement on Form 8886. Shareholders should consult their tax advisers to determine the applicability of this requirement in light of their individual circumstances.
Additional Information About the Fund
The Distributor. The Fund's shares are sold through dealers, brokers and other financial institutions that have a sales agreement with OppenheimerFunds Distributor, Inc., a subsidiary of the Manager that acts as the Fund's Distributor. The Distributor also distributes shares of the other Oppenheimer funds.
The Transfer Agent. OppenheimerFunds Services, the Fund's Transfer Agent, is a division of the Manager. It is responsible for maintaining the Fund's shareholder registry and shareholder accounting records, and for paying dividends and distributions to shareholders. It also handles shareholder servicing and administrative functions. It serves as the Transfer Agent for an annual per account fee. It also acts as shareholder servicing agent for the other Oppenheimer funds. Shareholders should direct inquiries about their accounts to the Transfer Agent at the address and toll-free numbers shown on the back cover.
The Custodian. Citibank, N.A. is the custodian of the Fund's assets. The custodian's responsibilities include safeguarding and controlling the Fund's portfolio securities and handling the delivery of such securities to and from the Fund. It is the practice of the Fund to deal with the custodian in a manner uninfluenced by any banking relationship the custodian may have with the Manager and its affiliates. The Fund's cash balances with the custodian in excess of $250,000 are not protected by the federal deposit insurance corporation ("FDIC").
Independent Registered Public Accounting Firm. KPMG LLP serves as the independent registered public accounting firm for the Fund. KPMG LLP audits the Fund's financial statements and performs other related audit and tax services. KPMG LLP also acts as the independent registered public accounting firm for the Manager and certain other funds advised by the Manager and its affiliates. Audit and non-audit services provided by KPMG LLP to the Fund must be pre-approved by the Audit Committee.
Special Sales Charge Arrangements and Waivers
OppenheimerFunds Special Sales Charge Arrangements and Waivers
In certain cases, the initial sales charge that applies to purchases of Class A shares of the Oppenheimer funds or the contingent deferred sales charge ("CDSC") that may apply to Class A, Class B, Class C or Class N shares may be waived. That is because of the economies of sales efforts realized by OppenheimerFunds Distributor, Inc., (referred to in this document as the "Distributor"), or by dealers or other financial institutions that offer those shares to certain classes of investors. Not all waivers apply to all funds.
For the purposes of some of the waivers described below and in the Prospectus and Statement of Additional Information of the applicable Oppenheimer funds, the term "Retirement Plan" refers to the following types of plans:
The interpretation of these provisions as to the applicability of a special arrangement or waiver in a particular case is in the sole discretion of the Distributor or the transfer agent (referred to in this document as the "Transfer Agent") of the particular Oppenheimer fund. These waivers and special arrangements may be amended or terminated at any time by a particular fund, the Distributor, and/or OppenheimerFunds, Inc. (referred to in this document as the "Manager").
Waivers that apply at the time shares are redeemed must be requested by the shareholder and/or dealer in the redemption request.
I. Applicability of Class A Contingent Deferred Sales Charges in Certain Cases
Purchases of Class A Shares of Oppenheimer Funds That Are Not Subject to Initial Sales Charge but May Be Subject to the Class A Contingent Deferred Sales Charge (unless a waiver applies).
There is no initial sales charge on purchases of Class A shares of any of the Oppenheimer funds in the cases listed below. However, these purchases may be subject to the Class A CDSC if redeemed within 18 months (24 months in the case of shares of Oppenheimer Rochester National Municipals and Rochester Fund Municipals shares purchased prior to 10/22/07) of the beginning of the calendar month of their purchase, as described in the Prospectus (unless a waiver described elsewhere in this Appendix applies to the redemption). Additionally, on shares purchased under these waivers that are subject to the Class A CDSC, the Distributor will pay the applicable concession described in the Prospectus under "Class A Contingent Deferred Sales Charge."3 This waiver provision applies to:
II. Waivers of Class A Sales Charges of Oppenheimer Funds
A. Waivers of Initial and Contingent Deferred Sales Charges for Certain Purchasers.
Class A shares purchased by the following investors are not subject to any Class A sales charges (and no concessions are paid by the Distributor on such purchases):
B. Waivers of the Class A Initial and Contingent Deferred Sales Charges in Certain Transactions.
1. Class A shares issued or purchased in the following transactions are not subject to sales charges (and no concessions are paid by the Distributor on such purchases):
2. Class A shares issued and purchased in the following transactions are not subject to sales charges (a dealer concession at the annual rate of 0.25% is paid by the Distributor on purchases made within the first 6 months of plan establishment):
C. Waivers of the Class A Contingent Deferred Sales Charge for Certain Redemptions.
The Class A CDSC is also waived if shares that would otherwise be subject to the CDSC are redeemed in the following cases:
III. Waivers of Class B, Class C and Class N Sales Charges of Oppenheimer Funds
The Class B, Class C and Class N CDSCs will not be applied to shares purchased in certain types of transactions or redeemed in certain circumstances described below.
A. Waivers for Redemptions in Certain Cases.
The Class B, Class C and Class N CDSCs will be waived for redemptions of shares in the following cases:
B.Waivers for Shares Sold or Issued in Certain Transactions.
The CDSC is also waived on Class B, Class C and Class N shares sold or issued in the following cases:
IV. Special Sales Charge Arrangements for Former Shareholders of Quest for Value Funds
For shareholders of the Quest for Value Funds who acquired shares prior to November 24, 1995 and still hold those shares (or shares of an Oppenheimer fund into which any Quest for Value Fund was reorganized), any initial and contingent deferred sales charges will be waived if requested by the shareholder.
V. Special Sales Charge Arrangements for Former Shareholders of Connecticut Mutual Investment Accounts, Inc.
For shareholders of the Connecticut Mutual Investment Accounts who acquired shares prior to March 1, 1996 and still hold those shares (or shares of an Oppenheimer fund into which any Connecticut Mutual Investment Account was reorganized), any initial and contingent deferred sales charges will be waived if requested by the shareholder.
VI. Special Sales Charge Arrangements for Former Shareholders of Advance America Funds, Inc.
For shareholders of the Advanced America Funds who acquired shares prior to October 18, 1991 and still hold those shares (or shares of an Oppenheimer fund into which any Advanced American Fund was reorganized), any initial and contingent deferred sales charges will be waived if requested by the shareholder.
Footnotes to Appendix A:
1. An "employee benefit plan" means any plan or arrangement, whether or not it is "qualified" under the Internal Revenue Code, under which Class N shares of an Oppenheimer fund or funds are purchased by a fiduciary or other administrator for the account of participants who are employees of a single employer or of affiliated employers. These may include, for example, medical savings accounts, payroll deduction plans or similar plans. The fund accounts must be registered in the name of the fiduciary or administrator purchasing the shares for the benefit of participants in the plan.
2. The term "Group Retirement Plan" means any qualified or non-qualified retirement plan for employees of a corporation or sole proprietorship, members and employees of a partnership or association or other organized group of persons (the members of which may include other groups), if the group has made special arrangements with the Distributor and all members of the group participating in (or who are eligible to participate in) the plan purchase shares of an Oppenheimer fund or funds through a single investment dealer, broker or other financial institution designated by the group. Such plans include 457 plans, SEP-IRAs, SARSEPs, SIMPLE plans and 403(b) plans other than plans for public school employees. The term "Group Retirement Plan" also includes qualified retirement plans and non-qualified deferred compensation plans and IRAs that purchase shares of an Oppenheimer fund or funds through a single investme nt dealer, broker or other financial institution that has made special arrangements with the Distributor.
3. However, that concession will not be paid on purchases of shares in amounts of $1 million or more (including any right of accumulation) by a Retirement Plan that pays for the purchase with the redemption proceeds of Class C shares of one or more Oppenheimer funds held by the Plan for more than one year.
4. This provision does not apply to IRAs.
5. This provision only applies to qualified retirement plans and 403(b)(7) custodial plans after your separation from service in or after the year you reached age 55.
6. The distribution must be requested prior to Plan termination or the elimination of the Oppenheimer funds as an investment option under the Plan.
7. This provision does not apply to loans from 403(b)(7) custodial plans and loans from the OppenheimerFunds-sponsored Single K retirement plan.
8. This provision does not apply to 403(b)(7) custodial plans if the participant is less than age 55, nor to IRAs.
Special Considerations Relating To State Municipal Obligations and U.S. Territories, Commonwealths and Possessions
Because the Fund invests in securities issued by New York or entities within New York, an investment in the Fund may involve greater risk than investments in certain other types of municipal bond funds. You should consider carefully the special risks inherent in the Fund's investment in New York municipal securities.
The Fund also invests in municipal securities issued by certain territories, commonwealths and possessions of the United States that pay interest that is exempt (in the opinion of the issuer's legal counsel when the security is issued) from federal income tax and the Fund's state personal income tax. Therefore, the Fund's investments could be affected by the fiscal stability of, for example, Puerto Rico, the Virgin Islands, Guam or the Mariana Islands. Additionally, the Fund's investments could be affected by economic, legislative, regulatory or political developments affecting issuers in those territories, commonwealths or possessions.
Following is a discussion of the special considerations relating to the Fund's investments in municipal securities issued by New York, Puerto Rico, the Virgin Islands, Guam and the Mariana Islands.
New York
The following information constitutes only a brief summary, does not purport to be a complete description, and is based on information drawn from official statements relating to securities offerings of the State of New York (the "State") and various local agencies available as of the date of this Statement of Additional Information. While neither the Manager nor the Fund has independently verified this information, neither has reason to believe that such information is not correct
in all material respects. The information below is intended only as a general summary and is not intended as a discussion of any specific factor that may affect any particular obligation or issuer.
As explained in the Prospectus, the Fund's investments are highly sensitive to the fiscal stability of New York State (referred to in this section as the "State") and its subdivisions, agencies, instrumentalities or authorities, including New York City (the "City"), which issue the municipal securities in which the Fund invests. The following information on risk factors in concentrating in New York municipal securities is only a summary, based on the State's Annual Information Statement dated May 12, 2008 and the State's quarterly Updates to Annual Information Statement dated August 6 and October 30, 2008 and on January 28, 2009, and on publicly-available official statements relating to offerings by issuers of New York municipal securities on or prior to March 1, 2009. No representation is made as to the accuracy of this information.
New York is the third most populous state in the nation and has a relatively high level of personal wealth. The State's economy is diverse, with a comparatively large share of the nation's financial activities, information, education, and health services employment, and a very small share of the nation's farming and mining activity. The State's location and its air transport facilities and natural harbors have made it an important link in international commerce. Travel and tourism constitute an important part of the economy. Like the rest of the nation, New York has a declining proportion of its workforce engaged in manufacturing, and an increasing proportion engaged in service industries.
Factors Affecting Investments in New York State Securities. The State ended its 2007-2008 fiscal year on March 31, 2008 in balance on a cash basis, with a reported closing balance in the General Fund of $2.8 billion. The Governor's Executive Budget for the 2008-2009 fiscal year projected ending the 2008-2009 fiscal year in balance on a cash basis, with a closing balance in the General Fund of $2.2 billion and projected gaps of $3.3 billion in fiscal year 2009-2010, $5.7 billion in fiscal year 2010-2011 and $6.8 billion in fiscal year 2011-2012, assuming that all of the Governor's Executive Budget savings proposals were implemented. The State Legislature completed action on the budget for the 2008-2009 fiscal year on April 9, 2008 (the "Enacted Budget").
The State released its Annual Information Statement on May 12, 2008 (the "Annual Information Statement") which reflected the State Legislature's modifications to the Governor's Executive Budget for the 2008-2009 fiscal year, and revisions to spending estimates in the Enacted Budget through May 1, 2008, the date of the State financial plan. In the Annual Information Statement, the State Division of the Budget noted that the Enacted Budget, similar to the Governor's Executive Budget, also projected ending the 2008-2009 fiscal year in balance on a cash basis, but that the Enacted Budget projected a closing fund balance in the General Fund of $2.0 billion and projected gaps of approximately $5.0 billion in fiscal year 2009-2010, $7.7 billion in fiscal year 2010-2011 and $8.8 billion in fiscal year 2011-2012.
The State updates the Annual Information Statement quarterly, and has released updates thereto dated August 6, 2008, October 30, 2008 and January 28, 2009 (the "January AIS Update").
The January AIS Update describes, among other things, the Governor's Executive Budget for fiscal year 2008-2009, as amended by amendments submitted on January 15, 2009. The State financial plan, as amended, projected a fiscal year 2008-2009 budget shortfall of $1.6 billion, and projected gaps of $13.8 billion in fiscal year 2009-2010, $17.3 billion in fiscal year 2010-2011 and $18.7 billion in fiscal year 2011-2012, for a projected four-year shortfall of $51.4 billion. Assuming that the Governor's recommendations contained in his deficit reduction plan are successfully implemented and the Governor's Executive Budget is enacted in its entirety, the State financial plan, as amended, estimates that the State will end fiscal year 2008-2009 and fiscal year 2009-2010 with a General Fund balance of $1.5 billion and $1.2 billion, respectively, and the deficits in fiscal years 2010-2011, 2011-2012 and 2012-2013 would be reduced to $2.0 billion, $4.2 billion and $5.7 billion, respectively. The January AIS Update identifies a number of risks inherent in the implementation of the State financial plan. Such risks include the performance of the national and State economies; the potential cost of certain collective bargaining agreements and salary increases for judges; access to capital markets in light of the disruption in the municipal bond market; litigation against the State, including potential challenges to the constitutionality of certain tax actions authorized in the Enacted Budget; and actions taken by the federal government, including audits, disallowances, and changes in aid levels.
On February 24, 2009, the State released a Supplement to the January AIS Update (the "Supplement"). The Supplement describes deficit reduction actions approved by the Governor and the State Legislature that are expected to provide savings of $1.6 billion and $800 million in fiscal years 2008-2009 and 2009-2010, respectively. The Supplement also states that, based on the State Division of the Budget's preliminary analysis of ARRA, New York State and its localities are expected to receive approximately $24.6 billion from the federal government during fiscal years 2008-2009 through 2010-2011. Additionally, the State forecasts a decrease in General Fund tax receipts of $1 billion from the levels forecast in the Governor's Executive Budget, as amended, and the State Division of the Budget estimates that a delay in budget enactment from March 1, 2009 to April 1, 2009 would result in approximately $250-300 million i n potential lost savings in fiscal year 2009-2010. The State Division of the Budget ("DOB") believes that the developments described above will permit the State to end the current fiscal year in balance without the use of existing reserves.
The New York Economy.
The outlook for State finances has continued to weaken since the budget for the current fiscal year was enacted in April 2008. In the First Quarterly Update to the AIS, DOB significantly lowered its projections for tax receipts to reflect the worsening outlook for the national and State economies, and the anticipated impact on tax collections. A potential gap was identified for the current fiscal year (2008-2009), which DOB expected to eliminate through a 7 percent reduction in
State agency operations. At the time, DOB warned that the State's fiscal outlook could worsen further, noting "the nation's economic troubles are severe and widespread [and] important financial institutions face a crisis of confidence among investors and the general public."
In September and October 2008, a series of unprecedented financial sector shocks transformed the economic downturn that began in late 2007 into a global financial crisis. In New York, the crisis was expected to have grave consequences for the State's financial services sector, one of the principal sources of State tax receipts. In the Second Quarterly AIS Update, after evaluating the still-unfolding crisis, DOB reduced the General Fund receipts forecast by nearly $1.7 billion for the
current year and by over $5.8 billion for 2009-2010. In addition, market conditions were expected to disrupt plans to convert GHI/HIP to a for-profit company and to sell certain surplus properties, reducing expected resources by an additional $384 million in the current year. As a result of these and other revisions, a combined General Fund and HCRA budget gap of $1.5 billion was projected for the current year, growing to $12.5 billion in 2009-2010. The combined General Fund and HCRA
four-year gap totaled $47 billion, an increase of $21 billion from the First Quarterly Update to the AIS. At the Governor's request, the Legislatu re convened a special session on November 18, 2008 to consider options to close the current-year gap, but ultimately took no action.
Economic Discussion
U.S. Forecast Discussion
Since the end of October 2008, evidence has mounted that the U.S. recession that began in December 2007 has deepened and the advance toward global recession has accelerated. The deleveraging process in the housing and credit markets has destroyed trillions of dollars of wealth, resulting in what may become the most severe economic contraction since the early 1980s and possibly the Great Depression. In spite of a massive government effort to restore the domestic banking system, and
similar efforts around the world, the global economy's downward momentum continues unabated.
Real U.S. GDP is projected to decline for four consecutive quarters starting with the third quarter of calendar year 2008. For estimating purposes, it is assumed that a stimulus package will be approved at the Federal level at $800 billion for two years. DOB projects the U.S. economy to contract by 1.4 percent in 2009, following growth of 1.2 percent in 2008.
The housing market has still failed to find a bottom, with housing falling to unprecedented postwar lows and home prices continuing to fall. Declining employment and wealth, combined with unfavorable credit market conditions, continue to put downward pressure on household spending. On the positive side, the recent decline in energy prices has increased the purchasing power of household incomes, while at the same time reducing inflation expectations and increasing the Federal Reserve's policy options. But this favorable trend is expected only to cushion the impact of a falling labor market and a slow-recovering financial system. Consequently, real consumption is projected to decline.
With the accelerated loss of jobs projected for 2009, wage growth is also expected to fall. DOB projects that wages will actually fall in both the fourth quarter of 2008 and the first quarter of 2009, owing in part to weak bonus performance anticipated nationwide for these quarters. The substantial decline in wage growth is expected to reduce personal income growth from 3.8 percent in 2008 to 1.8 percent in 2009. DOB projects inflation as measured by growth in the Consumer Price Index of 0.1 percent for 2009, following 3.9 percent for 2008.
New York Forecast Discussion
With the financial markets at the center of the economic downturn, the New York State economy stands to be hit hard by the current recession. Financial industry consolidation is likely to have grave implications for financial sector employment, particularly in New York City. Layoffs from the State's financial services sector are now expected to total approximately 60,000 as strained financial institutions seek to cut costs and newly merged banks seek to reduce duplication of services.
These projected losses are approximately double those that occurred in the wake of September 11th.
But the current downturn in the State economy is expected to extend far beyond Wall Street. A broad-based State recession is now projected to result in private sector job losses of about 180,000, with declines anticipated for all major industrial sectors except for health and education. The loss of manufacturing jobs is expected to accelerate going forward, particularly in auto-related industries. The State's real estate market will continue to weaken in 2009, with office vacancy rates expected to rise due to falling employment, tight credit market conditions, and completed construction coming online. In addition, a weak global economy and strong dollar are expected to negatively affect the State's export-related and tourism industries. State employment is now expected to fall 1.9 percent for 2009, with private sector jobs projected to fall 2.2 percent, following growth of 0.3 percent for both total and priva te employment for 2008. DOB projects a decline in total State wages of 4.1 percent for 2009, largely driven by a decline of 48 percent in bonus payments of the finance and insurance industry, following an estimated increase of 1.1 percent for 2008. Declines in both the wage and non-wage components of income will result in a decline in total personal income of 1.6 percent for 2009, following 2.3 percent growth for 2008.
Ratings of the State's Securities. As of the date of this SAI, S&P had rated the State's general obligation bonds "AA," Moody's had rated those bonds "Aa3" and Fitch had rated those bonds "AA-".
Ratings reflect only the respective views of such organizations, and an explanation of the significance of such ratings must be obtained from the rating agency furnishing the rating. There is no assurance that a particular rating will continue for any given period of time or that any such rating will not be revised downward or withdrawn entirely if, in the judgment of the agency originally establishing the rating, circumstances so warrant. A downward revision or withdrawal of a rating may have an effect on the market price of the State and municipal securities in which the Fund invests.
Pending Litigation. The State is a defendant in numerous legal proceedings pertaining to matters incidental to the performance of routine governmental operations. That litigation includes, but is not limited to, claims asserted against the State involving State finances and programs and arising from alleged violations of civil rights, alleged torts, alleged breaches of contracts, real property proceedings and other alleged violations of State and Federal laws. These proceedings could affect adversely the financial condition of the State in the 2008-2009 fiscal year or thereafter.
Adverse developments in these proceedings, other proceedings for which there are unanticipated, unfavorable and material judgments, or the initiation of new proceedings could affect the ability of the State to maintain a balanced 2008-2009 Financial Plan. The State has reported its belief that the 2008-2009 Financial Plan included sufficient reserves to offset the costs associated with the payment of judgments that may be required during the 2008-2009 fiscal year. These reserves included (but were not limited to) amounts appropriated for Court of Claims payments and projected fund balances in the General Fund. In addition, any amounts ultimately required to be paid by the State may be subject to settlement or may be paid over a multi-year period. There could be no assurance given, however, that adverse decisions in legal proceedings against the State would not exceed the amount of all potential 2008-2009 Financial Plan resources available for the payment of judgments, and could therefore adversely affect the ability of the State to maintain a balanced 2008-2009 Financial Plan.
In addition, the State is party to other claims and litigation that either its legal counsel has advised that it is not probable that the State will suffer adverse court decisions or the State has determined are not material. Although the amounts of potential losses, if any, were not presently determinable, it was the State's opinion that its ultimate liability in these cases was not expected to have a material adverse effect on the State's financial position in the 2008-2009 fiscal year or thereafter.
Factors Affecting Investments in New York City Municipal Securities. The City has a diversified economic base, with a substantial volume of business activity in the service, wholesale and retail trade and manufacturing industries and is the location of many securities, banking, law, accounting, news media and advertising firms.
The City is a major seaport and focal point for international business. Many of the major corporations headquartered in the City are multinational in scope and have extensive foreign operations. Numerous foreign-owned companies in the United States are also headquartered in the City. These firms, which have increased in number substantially over the past decade, are found in all sectors of the City's economy, but are concentrated in trade, professional and business services, tourism and finance. The City is the location of the headquarters of the United Nations, and several affiliated organizations maintain their principal offices in the City. A large diplomatic community exists in the City to staff the missions to the United Nations and the foreign consulates. No single assessed property in the City accounts for more than .5% of the City's real property tax revenue.
Economic activity in the City has experienced periods of growth and recession and can be expected to experience periods of growth and recession in the future. The City experienced a recession in the early 1970s through the middle of that decade, followed by a period of expansion in the late 1970s through the late 1980s. The City fell into recession again in the early 1990s which was followed by an expansion that lasted until 2001. The economic slowdown that began in 2001 as a result of the September 11 terrorist attack, a national economic recession, and a downturn in the securities industry came to an end in 2003. Since then, Wall Street activity, tourism, and the real estate market have driven a broad based economic recovery. The City's financial plan assumed that a decrease in economic activity began in the second half of calendar year 2007 will persist through the beginning of 2010.
For each of the 1981 through 2007 fiscal years, the City's General Fund had an operating surplus, before discretionary and other transfers, and achieved balanced operating results as reported in accordance with then applicable generally accepted accounting principles ("GAAP") after discretionary and other transfers. City fiscal years end on June 30 and are referred to by the calendar year in which they end. The City has been required to close substantial gaps between forecast revenues and forecast expenditures in order to maintain balanced operating results. There can be no assurance that the City will continue to maintain balanced operating results as required by State law without tax or other revenue increases or reductions in City services or entitlement programs, which could adversely affect the City's economic base.
The Mayor is responsible for preparing the City's financial plan which relates to the City and certain entities that receive funds from the City, including the financial plan for the 2008 through 2011 fiscal years submitted to the Control Board in June 2007 (the "June Financial Plan," Modification No. 08-1 to the June Financial Plan and the financial plan for the 2008 through 2011 fiscal years submitted to the Control Board on June 20, 2007 (as so modified, the "2008-2011 Financial Plan," or "Financial Plan"). The City's projections set forth in the Financial Plan are based on various assumptions and contingencies which are uncertain and which may not materialize. Such assumptions and contingencies include the condition of the regional and local economies, the provision of State and federal aid, the impact on City revenues and expenditures of any future federal or State policies affecting the City and the cos t of future labor settlements.
Implementation of the Financial Plan is dependent upon the City's ability to market its securities successfully. Implementation of the Financial Plan is also dependent upon the ability to market the securities of other financing entities, including the New York City Municipal Water Finance Authority ("Water Authority"), which issues debt secured by water and sewer revenues. In addition, the City issues revenue and tax anticipation notes to finance its seasonal working capital requirements. The success of projected public sales of City, Water Authority and other bonds and notes will be subject to prevailing market conditions. Future developments concerning the City and public discussion of such developments, as well as prevailing market conditions, may affect the market for outstanding City general obligation bonds and notes.
Ratings of the City's Bonds. As of the date of this SAI, Moody's, S&P and Fitch rated the City's general obligations bonds Aa3, AA and AA-, respectively. These ratings reflected only the views of Moody's, S&P and Fitch from which an explanation of the significance of such ratings may be obtained. There is no assurance that those ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely. Any such downward revision or withdrawal could have an adverse effect on the market prices of the City's bonds.
Pending Litigation. The City is a defendant in lawsuits pertaining to material matters as well as claims asserted that are incidental to performing routine governmental and other functions. That litigation includes, but is not limited to, actions commenced and claims asserted against the City arising out of alleged constitutional violations, torts, breaches of contract, and other violations of law and condemnation proceedings. While the ultimate outcome and fiscal impact, if any, on the City of such proceedings and claims were not predictable, adverse determinations in certain of them might have a material adverse effect upon the City's ability to carry out the Financial Plan.
Other U.S. Territories, Commonwealths and Possessions. The Fund also invests in municipal securities issued by certain territories, commonwealths and possessions of the United States that pay interest that is exempt (in the opinion of the issuer's legal counsel when the security is issued) from federal income tax and NY State and NY City personal income tax.
Therefore, the Fund's investments could be affected by the fiscal stability of, for example, Puerto Rico, Virgin Islands, Guam or the Mariana Islands. The following information on risk factors in those jurisdictions is only a summary, based on publicly-available official statements relating to offerings by issuers of these jurisdictions. No representation is made as to the accuracy of this information.
Puerto Rico Risk Factors
Certain of the bonds in the fund may be general obligations and/or revenue bonds of issuers located in the Commonwealth of Puerto Rico ("Commonwealth" or "Puerto Rico"). These bonds may be affected by political, social and economic conditions in Puerto Rico. The following is a brief summary of factors affecting the economy of the Commonwealth and does not purport to be a complete description of such factors.
The dominant sectors of the Puerto Rico economy are manufacturing and services. The manufacturing sector has undergone fundamental changes over the years as a result of increased emphasis on higher wage, high technology industries, such as pharmaceuticals, biotechnology, electronics, computers, microprocessors, professional and scientific instruments, and certain high technology machinery and equipment. The services sector, including finance, insurance, real estate, wholesale and retail trade, and tourism, also plays a major role in the economy. It ranks second only to manufacturing in contribution to the gross domestic product and leads all sectors in providing employment.
The economy of Puerto Rico is closely linked to the United States economy. Factors affecting the United States economy usually have a significant impact on the performance of the Puerto Rico economy. These factors include exports, direct investment, the amount of federal transfer payments, the level of interest rates, the level of oil prices, the rate of inflation, and tourist expenditures.
There can be no assurance that current or future economic difficulties in the United States or Puerto Rico and the resulting impact on Puerto Rico will not adversely affect the market value of Puerto Rico municipal obligations held by the fund or the ability of particular issuers to make timely payments of debt service on these obligations.
Recent Developments Relating To The Commonwealth
On November 4, 2008, Luis G. Fortuño was elected as Governor of the Commonwealth of Puerto Rico; and on January 2, 2009 he was sworn into office. Governor Fortuño's political party, the New Progressive Party, also won a majority in the Senate and House of Representatives, which will provide a single political party control of the Executive and Legislative branches of the Commonwealth.
Fiscal Year 2008 Preliminary Revenues and Expenditures. The budgeted General Fund expenses for fiscal year 2008 were $9.2 billion. Preliminary actual expenditures during fiscal year 2008 were $9.1 billion. Preliminary General Fund revenues for fiscal year 2008 totaled $8.45 billion, which is $418 million less than the Department of the Treasury's revised estimate for that period of $8.85 billion. This amount includes $4.4 billion in revenues from individual and corporate income taxes, $1.1 billion from non-resident withholding taxes, $864 million from excise taxes and $911 million of sales tax revenues. The foregoing difference of $650 million between the preliminary General Fund revenues and preliminary actual expenses for fiscal year 2008 was covered by a recovery of approximately $287 million more in federal funds and delaying payments to vendors (carrying them over into the next fiscal year). The federal funds recovery represented reimbursement of amounts advanced by the Commonwealth's Department of Education during fiscal years 2006 and 2007.
Fiscal Year 2009 Projected Revenues and Expenditures. On July 20, 2008, former Governor Anibal Acevedo Vilá signed into law the General Fund budget for fiscal year 2009 of $9.5 billion in expenditures, or approximately $257 million more than budgeted expenditures for fiscal year 2008 of $9.2 billion. The increase in budgeted expenditures over fiscal year 2008 is mainly due to $105 million in increases to University of Puerto Rico, judiciary and municipal increases based on the legislated formulas and salary increases. An additional $41.2 million is budgeted for the State Election Commission. The General Fund revenue projection for fiscal year 2009 is $8.5 billion as compared to preliminary net revenues for fiscal year 2008 of $8.45 billion. The Commonwealth's budgeted expenditures for fiscal year 2009 of $9.5 billion exceed projected revenues of $8.5 billion by approximately $1 billion. In connection with the budget approval and in order to cover the approximately $1 billion difference between approved expenditures and projected revenues, legislation was approved and signed by former Governor Acevedo Vilá authorizing the Commonwealth (i) to sell and or transfer delinquent tax receivables up to $1 billion, and (ii) as an exception to the general prohibition against borrowings to balance the budget, to issue limited special obligations of the Commonwealth payable from and collateralized with tax receivables up to the $1 billion limitation.
Preliminary General Fund revenues for fiscal year 2009 for the period July through November totaled $2,910 million, which is $85 million less than the Department of the Treasury's estimate for that period of $2,995 million. This amount includes $1,547 million in revenues from individual and corporate income taxes, $357 million from non-resident withholding taxes, $331 million from excise taxes, $249 million from sales and use tax and $426 million from other sources.
Incomplete data for December indicates a further decline in the receipt of revenues compared to forecasted amounts. In addition, because of the ongoing credit market crisis, the Commonwealth has delivered, as of December 31, 2008, approximately $241.4 million in collateral to its counterparties on certain interest rate exchange agreements entered into in June 2006, and the collateral posting obligation contained in such agreements may require further deliveries by the Commonwealth. The continuing revenue shortfall and the collateral posting have resulted in the issuance by the Commonwealth of $1 billion Tax Anticipation Bonds, Series 2008A purchased by the Bank on September 9, 2008, October 10, 2008, October 17, 2008, November 26, 2008 and December 1, 2008, the proceeds of which will be used to cover cash flow revenue shortfalls as well as collateral posting requirements of the General Fund. The Tax Anticipat ion Bonds are secured by a pledge of delinquent tax receivables of the Commonwealth. It is likely that revenues will continue to come in below projections on account of the continuing economic recessions in Puerto Rico and the United States with the result that the Commonwealth's current budget deficit will increase during fiscal year 2009 from that reported above.
Advisory Council. Soon after his election, Governor Fortuño named an Economic and Fiscal Reconstruction Advisory Council (the "Council"), comprised of a 14-member council of professionals from the private sector with experience in the public and private sectors. On December 19, 2008 the Council issued its Preliminary Report on Fiscal Reconstruction (the "Preliminary Report"). One of the findings in the Preliminary Report is a projected cash and structural deficit of approximately $3.2 billion for fiscal year 2009. On that same date the Council also issued its Report on Public-Private Partnerships. In this report, the Council recommends the use of public-private partnerships as an alternative to financing and developing infrastructure projects, operating and managing public assets and offering certain services to the public. On January 8, 2009, the Council issued its Report on Fiscal Reconstruction of the Comm onwealth that addresses the need to eliminate the cash and structural deficit of the Commonwealth of $3.2 billion over a period of four years and stimulate the economy.
Among the proposals the Council recommended are: a two year moratorium on wage and benefit increases included in collective bargaining agreements; a ban on hiring new employees or creating new jobs in the government sector and an elimination of any vacant positions within the government sector; a reduction in temporary employees; a ten percent (10%) reduction in the Legislature's budget; additional taxes for gasoline, cigarettes, alcoholic beverages, and cell phone communications; improved monitoring of income tax and Sales and Use tax collections in order to reduce tax evasion; a moratorium on tax credits awarded to businesses; a five percent (5%) surtax on individuals with adjusted gross income over $100,000 and on corporations, including banks and insurance companies; a review and possible elimination of the current residential property tax exemption; and a review of Commonwealth contributions to t he municipalities, among others. Some of these recommendations are permanent and others are temporary. The Governor and his economic team are currently reviewing the Council's report in an effort to determine which measures, if any, will be implemented. As part of this review, the Governor has submitted the report to the Planning Board and has asked it to conduct a macroeconomic study regarding the impact the different actions proposed by the Council may have on the Island's economy. Once the Governor decides which measures will be implemented, the Governor will submit legislation for those measures which would require the enactment of legislation by the Legislative Assembly.
Executive Order and Legislative Action. On the same date that the Council issued the above mentioned report, Governor Fortuño issued an Executive Order declaring "a state of fiscal emergency" in the Commonwealth. Pursuant to the Executive Order, government agencies are ordered to reduce their operational costs by an amount equal to ten percent (10%) of half of their total budgeted expenses for fiscal year 2009, eliminate thirty percent (30%) of authorized government trust positions and a hiring freeze of government employees. The Executive Order also prohibits the creation of new government employment positions.
On January 12, 2009, Governor Fortuño filed and on January 13, 2009 the Legislative Assembly approved four bills that would allow the implementation of certain financial measures. The enactment of this package of bills would: (i) transfer an additional one percent (1%) to the Puerto Rico Sales Tax Financing Corporation ("COFINA" by its Spanish acronym) in order to issue additional bonds for the purposes described below, (ii) allow the Puerto Rico Infrastructure Financing Authority ("PRIFA") to dispose of the securities held in the Corpus Account of the Infrastructure Development Fund, (iii) temporarily suspend the prohibition regarding the use of loans or financing mechanisms to cover operating expenses or General Fund budgetary deficits, and (iv) temporarily increase the amount the Bank can lend a government entity payable from future legislative appropriations, subject to the approval of the Govern or and the Director of the Office of Budget and Management.
The proceeds from the COFINA bond issue would be used to repay some of the remaining amounts of the Commonwealth's extra constitutional debt and, due to the suspension mentioned in (iii) above, pay certain amounts owed to the Bank by the Secretary of the Treasury, finance the Commonwealth's operating expenses, pay government debts with suppliers and cover any budgetary deficits. The COFINA bond issue is also expected to fund an economic stimulus package geared towards, among others, providing taxpayer relief, stimulus to businesses and industries, and funding worker retraining and assistance programs.
Similarly, the proceeds raised by PRIFA would be used to cover a portion of the Commonwealth's operating expenses and make a capital contribution to the Bank, but only after redeeming PRIFA's outstanding bonds and making a deposit to the Corpus Account that would be invested in a guaranteed investment contract with the Bank.
Guam Risk Factors
Certain of the bonds in the fund may be general obligations and/or revenue bonds of issuers located in Guam. These bonds may be affected by political, social and economic conditions in Guam.
Guam, the westernmost territory of the U.S., is located 3,700 miles to the west-southwest of Honolulu, Hawaii and approximately 1,500 miles southeast of Japan. Guam's economy is heavily dependent upon the U.S. military and tourism, particularly from Japan. Tourism has represented the primary source of Guam's economy for over twenty years. The number of tourists visiting Guam has fluctuated in recent years due to natural disasters, fluctuations in the Japanese yen, and the events of September 11, 2001 in the United States.
Public sector employment in Guam is significant with approximately 26% of the labor force working for the local government or in federal jobs in March 2006. The rest of the labor force works in the private sector. Major private sector employment categories include construction, transportation and public utilities, retail trade and services. Recent world events have increased recognition of Guam's strategic military value. The future for increased U.S. military presence and increased construction in Guam is optimistic, and while Guam will probably not see increases in civil service employment, increased military activity is expected to sustain and grow the Guam economy in the years to come.
United States Virgin Islands Risk Factors
Certain of the bonds in the fund may be general obligations and/or revenue bonds of issuers located in the U.S. Virgin Islands. These bonds may be affected by political, social and economic conditions in the U.S. Virgin Islands.
The principal islands of the U.S. Virgin Islands are St. Thomas, St. John, St. Croix, and Water Island. The islands are located 1,075 miles from Miami, and about 1,600 miles southeast of New York City. In July 2005, the population of the U.S. Virgin Islands was estimated at 108,708.
Tourism is the largest industry in the U.S. Virgin Islands and represents the largest segment in the private sector. The U.S. Virgin Islands received 2.6 million visitors in 2004, and 2005. Circumstances which negatively impact the tourism industry, such as natural disasters, economic difficulties, political events in the United States, and to a lesser extent other countries, could have a negative impact on the overall economy of the U.S. Virgin Islands.
Mariana Islands Risk Factors
The Mariana Islands became a U.S. territory in 1975. At that time, the U.S. Government agreed to exempt the islands from federal minimum wage and immigration laws in an effort to help stimulate industry and the economy. The islands' minimum wage is currently $4.20 per hour below the U.S. level. Immigration from various Asian countries, however, has provided cheap labor for the islands' industries over the last several decades. Foreign workers have accounted for approximately four times the number of indigenous workers.
It is estimated that the garment industry contributes about 30% of General Fund expenditures compared to 40% just a few years ago and is expected to decline further in 2008. The decline is largely a result of the elimination of quota restrictions for World Trade Organization members in 2005. The export value of the industry dropped 13% in 2005, 26% in 2006 and an estimated 10% drop in 2007. Employment in the industry has dropped from 17,000 workers in 2001 to about 7,000 in 2007, and the number of factories has dropped from 34 to 16 over the same period. There is also additional legislation being considered in Congress that could negatively affect this industry further if passed, including implementation of the federal minimum wage rate in the Commonwealth of the Northern Mariana Islands (CNMI) and the implementation of federal immigration laws in the islands.
The Commonwealth's gross business revenues were $1.4 billion in 1993, then increased to a high of $2.6 billion in 1997. Gross business revenues have since declined to $1.3 billion for 2006. The tourism industry is the other large contributor to the CNMI economy. Tourism, which is largely driven by trends in Asia, is estimated to account for up to 35% of the economy. Visitors to the islands have declined over the last several years from 694,888 in 1997 to 459,458 in 2003 and 435,494 in 2006. Arrivals declined another 22% in 2007. The decline is a result of many factors including the weakening of the Asian economy, SARS, the war in Iraq and most recently the reduction in flights available from Japan to CNMI. The year-over-year decline in Japanese arrivals as of January 2008 has improved as flights from Osaka started in late December. It is important that available flights from Japan continue to increase since Japan makes up the largest visitor segment. The CNMI is trying to diversify its visitor profile and is working loosely with Chinese officials to open up this channel and is currently seeing strong growth from Korea and Russia. The Commonwealth's financials have been in a deficit position since 1994. The most recent audited financial statement is from 2006 and it identified a $174 million negative unreserved fund balance which is 88% of annual expenditures after transfers. The $16 million 2006 deficit was smaller, however, than the 2005 deficit. The Commonwealth attributes the deficit for 2006 to disbursements from bond proceeds received in 2004 and the inclusion of $11.9 million in employer retirement contributions even though employer retirement contributions had been suspended under public law.
Municipal Bond Ratings Definitions
Municipal Bond Ratings Definitions
Below are summaries of the rating definitions used by the nationally recognized rating agencies listed below for municipal securities. Those ratings represent the opinion of the agency as to the credit quality of issues that they rate. The summaries below are based upon publicly available information provided by the rating organizations.
Moody's Investors Service, Inc. ("Moody's")
LONG-TERM OBLIGATION RATINGS
Moody's long-term obligation ratings are opinions of the relative credit risk of fixed-income obligations with an original maturity of one year or more. They address the possibility that a financial obligation will not be honored as promised. Such ratings reflect both the likelihood of default and any financial loss suffered in the event of default.
Aaa: Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk.
Aa: Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
A: Obligations rated A are considered upper-medium grade and are subject to low credit risk.
Baa: Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics.
Ba: Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk.
B: Obligations rated B are considered speculative and are subject to high credit risk.
Caa: Obligations rated Caa are judged to be of poor standing and are subject to very high credit risk.
Ca: Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
C: Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest.
Moody's appends numerical modifiers "1", "2" and "3" to each generic rating classification from "Aa" through "Caa." The modifier "1" indicates that the obligation ranks in the higher end of its generic rating category; the modifier "2" indicates a mid-range ranking; and the modifier "3" indicates a ranking in the lower end of that generic rating category.
US MUNICIPAL SHORT-TERM DEBT AND DEMAND OBLIGATION RATINGS
SHORT-TERM OBLIGATION RATINGS
There are three rating categories for short-term municipal obligations that are considered investment grade. These ratings are designated as Municipal Investment Grade (MIG) and are divided into three levels - MIG 1 through MIG 3. In addition, those short-term obligations that are of speculative quality are designated SG, or speculative grade. MIG ratings expire at the maturity of the obligation.
MIG 1: This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing.
MIG 2: This designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group.
MIG 3: This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established.
SG: This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection.
DEMAND OBLIGATION RATINGS
In the case of variable rate demand obligations ("VRDOs"), a two-component rating is assigned; a long or short-term debt rating and a demand obligation rating. The first element represents Moody's evaluation of the degree of risk associated with scheduled principal and interest payments. The second element represents Moody's evaluation of the degree of risk associated with the ability to receive purchase price
upon demand ("demand feature"), using a variation of the MIG rating scale, the Variable Municipal Investment Grade or VMIG rating.
When either the long- or short-term aspect of a VRDO is not rated, that piece is designated NR, e.g., Aaa/NR or NR/VMIG 1. VMIG rating expirations are a function of each issue's specific structural or credit features.
VMIG 1: This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 2: This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 3: This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
SG: This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider that does not have an investment grade short-term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand.
Standard & Poor's Ratings Services ("Standard & Poor's"), a division of The McGraw-Hill Companies, Inc.
LONG-TERM ISSUE CREDIT RATINGS
Issue credit ratings are based in varying degrees, on the following considerations:
The issue ratings definitions are expressed in terms of default risk. As such, they pertain to senior obligations of an entity. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted above.
AAA: An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.
AA: An obligation rated 'AA' differs from the highest-rated obligations only in small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.
A: An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.
BBB: An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
BB, B, CCC, CC, and C: Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.
BB: An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions, which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.
B: An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.
CCC: An obligation rated 'CCC' is currently vulnerable to nonpayment and are dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.
CC: An obligation rated 'CC' is currently highly vulnerable to nonpayment.
C: The 'C' rating may be used to cover a situation where a bankruptcy petition has been filed or similar action has been taken, but payments on this obligation are being continued.
D: An obligation rated 'D' is in payment default. The 'D' rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.
The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
c: The 'c' subscript is used to provide additional information to investors that the bank may terminate its obligation to purchase tendered bonds if the long-term credit rating of the issuer is below an investment-grade level and/or the issuer's bonds are deemed taxable.
p: The letter 'p' indicates that the rating is provisional. A provisional rating assumes the successful completion of the project financed by the debt being rated and indicates that payment of debt service requirements is largely or entirely dependent upon the successful, timely completion of the project. This rating, however, while addressing credit quality subsequent to completion of the project, makes no comment on the likelihood of or the risk of default upon failure of such completion. The investor should exercise his own judgment with respect to such likelihood and risk.
Continuance of the ratings is contingent upon Standard & Poor's receipt of an executed copy of the escrow agreement or closing documentation confirming investments and cash flows.
r: The 'r' highlights derivative, hybrid, and certain other obligations that Standard & Poor's believes may experience high volatility or high variability in expected returns as a result of noncredit risks. Examples of such obligations are securities with principal or interest return indexed to equities, commodities, or currencies; certain swaps and options; and interest-only and principal-only mortgage securities. The absence of an 'r' symbol should not be taken as an indication that an obligation will exhibit no volatility or variability in total return.
N.R. Not rated.
Debt obligations of issuers outside the United States and its territories are rated on the same basis as domestic corporate and municipal issues. The ratings measure the creditworthiness of the obligor but do not take into account currency exchange and related uncertainties.
Bond Investment Quality Standards
Under present commercial bank regulations issued by the Comptroller of the Currency, bonds rated in the top four categories ('AAA', 'AA', 'A', and 'BBB', commonly known as investment-grade ratings) generally are regarded as eligible for bank investment. Also, the laws of various states governing legal investments impose certain rating or other standards for obligations eligible for investment by savings banks, trust companies, insurance companies, and fiduciaries in general.
SHORT-TERM ISSUE CREDIT RATINGS
Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the U.S., for example, that means obligations with an original maturity of no more than 365 days-including commercial paper.
A-1: A short-term obligation rated "A-1" is rated in the highest category by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.
A-2: A short-term obligation rated "A-2" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.
A-3: A short-term obligation rated "A-3" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
B: A short-term obligation rated "B" is regarded as having significant speculative characteristics. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.
C: A short-term obligation rated "C" is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.
D: A short-term obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.
Notes. A Standard & Poor's note rating reflects the liquidity factors and market access risks unique to notes. Notes due in three years or less will likely receive a note rating. Notes maturing beyond three years will most likely receive a long-term debt rating. The following criteria will be used in making that assessment:
SP-1: Strong capacity to pay principal and interest. An issue with a very strong capacity to pay debt service is given a (+) designation.
SP-2: Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes.
SP-3: Speculative capacity to pay principal and interest.
Fitch, Inc.
International credit ratings assess the capacity to meet foreign currency or local currency commitments. Both "foreign currency" and "local currency" ratings are internationally comparable assessments. The local currency rating measures the probability of payment within the relevant sovereign state's currency and jurisdiction and therefore, unlike the foreign currency rating, does not take account of the possibility of foreign exchange controls limiting transfer into foreign
currency.
INTERNATIONAL LONG-TERM CREDIT RATINGS
The following ratings scale applies to foreign currency and local currency ratings.
Investment Grade:
AAA: Highest Credit Quality. "AAA" ratings denote the lowest expectation of credit risk. They are assigned only in the case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
AA: Very High Credit Quality. "AA" ratings denote a very low expectation of credit risk. They indicate a very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
A: High Credit Quality. "A" ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.
BBB: Good Credit Quality. "BBB" ratings indicate that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity. This is the lowest investment-grade category.
Speculative Grade:
BB: Speculative. "BB" ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time. However, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade.
B: Highly Speculative. "B" ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met. However, capacity for continued payment is contingent upon a sustained, favorable business and economic environment.
CCC, CC, and C: High Default Risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments. A "CC" rating indicates that default of some kind appears probable. "C" ratings signal imminent default.
DDD, DD, and D: Default. The ratings of obligations in this category are based on their prospects for achieving partial or full recovery in a reorganization or liquidation of the obligor. While expected recovery values are highly speculative and cannot be estimated with any precision, the following serve as general guidelines. "DDD" obligations have the highest potential for recovery, around 90%-100% of outstanding amounts and accrued interest. "DD" indicates potential recoveries in the range of 50%-90%, and "D" the lowest recovery potential, i.e., below 50%.
Entities rated in this category have defaulted on some or all of their obligations. Entities rated "DDD" have the highest prospect for resumption of performance or continued operation with or without a formal reorganization process. Entities rated "DD" and "D" are generally undergoing a formal reorganization or liquidation process; those rated "DD" are likely to satisfy a higher portion of their outstanding
obligations, while entities rated "D" have a poor prospect for repaying all obligations.
Plus (+) and minus (-) signs may be appended to a rating symbol to denote relative status within the major rating categories. Plus and minus signs are not added to the "AAA" category or to categories below "CCC," nor to short-term ratings other than "F1" (see below).
INTERNATIONAL SHORT-TERM CREDIT RATINGS
The following ratings scale applies to foreign currency and local currency ratings. A short-term rating has a time horizon of less than 12 months for most obligations, or up to three years for U.S. public finance securities, and thus places greater emphasis on the liquidity necessary to meet financial commitments in a timely manner.
F1: Highest credit quality. Strongest capacity for timely payment of financial commitments. May have an added "+" to denote any exceptionally strong credit feature.
F2: Good credit quality. A satisfactory capacity for timely payment of financial commitments, but the margin of safety is not as great as in the case of higher ratings.
F3: Fair credit quality. Capacity for timely payment of financial commitments is adequate. However, near-term adverse changes could result in a reduction to non-investment grade.
B: Speculative. Minimal capacity for timely payment of financial commitments, plus vulnerability to near-term adverse changes in financial and economic conditions.
C: High default risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment.
D: Default. Denotes actual or imminent payment default.
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
Municipal Bonds and Notes--118.8% | ||||||||||||||||
New York--83.0% | ||||||||||||||||
$ | 1,035,000 |
Albany County, NY IDA (Albany College of Pharmacy)1
|
5.375 | % | 12/01/2024 | $ | 1,022,477 | |||||||||
1,700,000 |
Albany County, NY IDA (Albany College of Pharmacy)1
|
5.625 | 12/01/2034 | 1,623,636 | ||||||||||||
605,000 |
Albany County, NY IDA (Wildwood Programs)1
|
4.900 | 07/01/2021 | 501,267 | ||||||||||||
1,420,000 |
Albany, NY Hsg. Authority (Lark Drive)1
|
5.500 | 12/01/2028 | 1,424,473 | ||||||||||||
1,315,000 |
Albany, NY IDA (Albany Medical Center)1
|
6.000 | 05/01/2019 | 1,322,338 | ||||||||||||
2,460,000 |
Albany, NY IDA (Albany Medical Center)1
|
6.000 | 05/01/2029 | 2,473,727 | ||||||||||||
150,000 |
Albany, NY IDA (Albany Municipal Golf Course Clubhouse)1
|
7.500 | 05/01/2012 | 151,632 | ||||||||||||
760,000 |
Albany, NY IDA (Albany Rehabilitation)1
|
8.375 | 06/01/2023 | 746,784 | ||||||||||||
3,125,000 |
Albany, NY IDA (Brighter Choice Charter School)1
|
5.000 | 04/01/2027 | 2,636,344 | ||||||||||||
1,350,000 |
Albany, NY IDA (Brighter Choice Charter School)1
|
5.000 | 04/01/2032 | 1,080,081 | ||||||||||||
900,000 |
Albany, NY IDA (Brighter Choice Charter School)1
|
5.000 | 04/01/2037 | 697,428 | ||||||||||||
7,005,000 |
Albany, NY IDA (Charitable Leadership)
|
5.750 | 07/01/2026 | 5,159,183 | ||||||||||||
900,000 |
Albany, NY IDA (New Covenant Charter School)2
|
7.000 | 05/01/2025 | 358,668 | ||||||||||||
1,185,000 |
Albany, NY IDA (Sage Colleges)1
|
5.250 | 04/01/2019 | 1,075,921 | ||||||||||||
1,760,000 |
Albany, NY IDA (Sage Colleges)1
|
5.300 | 04/01/2029 | 1,397,405 | ||||||||||||
895,000 |
Albany, NY Parking Authority1
|
5.625 | 07/15/2025 | 899,287 | ||||||||||||
1,770,000 |
Albany, NY Parking Authority
|
7.052 | 3 | 11/01/2017 | 1,281,108 | |||||||||||
790,000 |
Amherst, NY IDA (Asbury Pointe)1
|
5.800 | 02/01/2015 | 783,743 | ||||||||||||
45,000 |
Amherst, NY IDA (Asbury Pointe)1
|
6.000 | 02/01/2023 | 40,220 | ||||||||||||
3,000,000 |
Amherst, NY IDA (Asbury Pointe)1
|
6.000 | 02/01/2029 | 2,497,680 | ||||||||||||
5,350,000 |
Amherst, NY IDA (Beechwood Health Care Center)1
|
5.200 | 01/01/2040 | 3,791,224 | ||||||||||||
25,000 |
Amherst, NY IDA (UBF Faculty-Student Hsg. Corp.)1
|
5.250 | 08/01/2031 | 22,240 | ||||||||||||
875,000 |
Blauvelt, NY Volunteer Fire Company1
|
6.250 | 10/15/2017 | 844,699 | ||||||||||||
2,735,000 |
Brookhaven, NY IDA (Enecon Corp.)1
|
6.300 | 11/01/2033 | 2,275,137 | ||||||||||||
2,135,000 |
Brookhaven, NY IDA (Stony Brook Foundation)1
|
6.500 | 11/01/2020 | 2,144,479 | ||||||||||||
3,700,000 |
Brooklyn, NY Local Devel. Corp. (Barclays Center Arena)1
|
6.375 | 07/15/2043 | 3,758,497 | ||||||||||||
95,000 |
Broome County, NY IDA (University Plaza)1
|
5.000 | 08/01/2025 | 81,376 | ||||||||||||
3,030,000 |
Broome County, NY IDA (University Plaza)1
|
5.000 | 08/01/2036 | 2,342,584 | ||||||||||||
1,000,000 |
Broome County, NY IDA (University Plaza)1
|
5.100 | 08/01/2030 | 824,940 | ||||||||||||
1,250,000 |
Broome County, NY IDA (University Plaza)1
|
5.100 | 08/01/2036 | 981,338 | ||||||||||||
3,000,000 |
Broome County, NY IDA (University Plaza)1
|
5.200 | 08/01/2030 | 2,507,220 | ||||||||||||
4,450,000 |
Broome County, NY IDA (University Plaza)1
|
5.200 | 08/01/2036 | 3,546,650 | ||||||||||||
3,000,000 |
Bushnell Basin, NY Fire Assoc. (Volunteer Fire Dept.)1
|
5.750 | 11/01/2030 | 2,638,710 | ||||||||||||
915,000 |
Canton, NY Human Services Initiatives1
|
5.700 | 09/01/2024 | 868,555 | ||||||||||||
1,155,000 |
Canton, NY Human Services Initiatives1
|
5.750 | 09/01/2032 | 1,037,664 | ||||||||||||
1,000,000 |
Canton, NY Resource Corp. Student Hsg. Facility (Grasse River-SUNY Canton)1
|
5.000 | 05/01/2040 | 930,960 | ||||||||||||
1,000,000 |
Canton, NY Resource Corp. Student Hsg. Facility (Grasse River-SUNY Canton)1
|
5.000 | 05/01/2045 | 920,970 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 1,350,000 |
Cattaraugus County, NY IDA (St. Bonaventure University)1
|
5.450 | % | 09/15/2019 | $ | 1,335,164 | |||||||||
9,775,000 |
Cayuga County, NY COP (Auburn Memorial Hospital)1
|
6.000 | 01/01/2021 | 9,745,968 | ||||||||||||
1,800,000 |
Chautauqua County, NY IDA (Woman's Christian Assoc. of Jamestown)1
|
6.400 | 11/15/2029 | 1,579,590 | ||||||||||||
95,000 |
Chautauqua, NY Utility District1
|
5.000 | 06/01/2023 | 96,809 | ||||||||||||
105,000 |
Chautauqua, NY Utility District1
|
5.000 | 06/01/2025 | 105,938 | ||||||||||||
1,020,000 |
Chemung County, NY IDA (Hathorn Redevel. Company)1
|
4.850 | 07/01/2023 | 977,803 | ||||||||||||
1,515,000 |
Chemung County, NY IDA (Hathorn Redevel. Company)1
|
5.000 | 07/01/2033 | 1,361,137 | ||||||||||||
3,835,000 |
Chemung County, NY IDA (St. Joseph's Hospital)
|
6.000 | 01/01/2013 | 3,148,190 | ||||||||||||
4,000,000 |
Chemung County, NY IDA (St. Joseph's Hospital)
|
6.350 | 01/01/2013 | 3,283,680 | ||||||||||||
4,910,000 |
Chemung County, NY IDA (St. Joseph's Hospital)
|
6.500 | 01/01/2019 | 3,898,540 | ||||||||||||
300,000 |
Clifton Springs, NY Hospital & Clinic1
|
7.650 | 01/01/2012 | 300,105 | ||||||||||||
2,050,000 |
Clifton Springs, NY Hospital & Clinic1
|
8.000 | 01/01/2020 | 2,050,800 | ||||||||||||
35,000 |
Cohoes, NY GO
|
6.200 | 03/15/2012 | 35,134 | ||||||||||||
25,000 |
Cohoes, NY GO
|
6.200 | 03/15/2013 | 25,088 | ||||||||||||
25,000 |
Cohoes, NY GO1
|
6.250 | 03/15/2014 | 25,082 | ||||||||||||
25,000 |
Cohoes, NY GO1
|
6.250 | 03/15/2015 | 25,077 | ||||||||||||
25,000 |
Cohoes, NY GO1
|
6.250 | 03/15/2016 | 25,069 | ||||||||||||
1,100,000 |
Columbia County, NY IDA (Berkshire Farms)1
|
7.500 | 12/15/2014 | 1,027,873 | ||||||||||||
3,300,000 |
Corinth, NY IDA (International Paper Company)1
|
5.750 | 02/01/2022 | 3,246,804 | ||||||||||||
5,370,000 |
Cortland County, NY IDA (Cortland Memorial Hospital)1
|
5.250 | 07/01/2032 | 4,791,973 | ||||||||||||
2,200,000 |
Dutchess County, NY IDA (Elant Fishkill)1
|
5.250 | 01/01/2037 | 1,571,636 | ||||||||||||
800,000 |
Dutchess County, NY IDA (St. Francis Hospital)1
|
7.500 | 03/01/2029 | 778,280 | ||||||||||||
3,250,000 |
Dutchess County, NY Local Devel. Corp. (Anderson Center Services)1
|
6.000 | 10/01/2030 | 2,995,785 | ||||||||||||
650,000 |
Dutchess County, NY Local Devel. Corp. (Health Quest System)1
|
5.750 | 07/01/2040 | 635,557 | ||||||||||||
1,000,000 |
Dutchess County, NY Water & Wastewater Authority
|
5.400 | 3 | 06/01/2027 | 470,940 | |||||||||||
3,105,000 |
East Rochester, NY Hsg. Authority (Episcopal Senior Hsg.)1
|
7.750 | 10/01/2032 | 2,936,709 | ||||||||||||
1,355,000 |
East Rochester, NY Hsg. Authority (Gates Senior Hsg.)1
|
6.125 | 04/20/2043 | 1,409,065 | ||||||||||||
2,345,000 |
East Rochester, NY Hsg. Authority (Jefferson Park Apartments)1
|
6.750 | 03/01/2030 | 2,168,468 | ||||||||||||
1,700,000 |
East Rochester, NY Hsg. Authority (Woodland Village)1
|
5.500 | 08/01/2033 | 1,373,311 | ||||||||||||
3,170,000 |
Elmira, NY Hsg. Authority (Eastgate Apartments)1
|
6.250 | 06/01/2044 | 2,401,877 | ||||||||||||
1,665,000 |
Erie County, NY IDA (Air Cargo)1
|
8.500 | 10/01/2015 | 1,665,849 | ||||||||||||
4,000,000 |
Erie County, NY IDA (Charter School Applied Tech)1
|
6.750 | 06/01/2025 | 3,590,520 | ||||||||||||
7,000,000 |
Erie County, NY IDA (Charter School Applied Tech)1
|
6.875 | 06/01/2035 | 6,012,230 | ||||||||||||
1,960,000 |
Erie County, NY IDA (DePaul Properties)1
|
5.750 | 09/01/2028 | 1,369,374 | ||||||||||||
2,060,000 |
Erie County, NY IDA (DePaul Properties)1
|
6.500 | 09/01/2018 | 1,753,307 | ||||||||||||
1,750,000 |
Erie County, NY IDA (Global Concepts Charter School)1
|
6.250 | 10/01/2037 | 1,394,645 | ||||||||||||
11,310,000 |
Erie County, NY IDA (Medaille College)1
|
7.625 | 04/01/2035 | 11,668,753 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 9,900,000 |
Erie County, NY IDA (Orchard Park CCRC)
|
6.000 | % | 11/15/2026 | $ | 8,924,256 | |||||||||
6,860,000 |
Erie County, NY IDA (Orchard Park CCRC)
|
6.000 | 11/15/2036 | 5,657,922 | ||||||||||||
1,415,000 |
Erie County, NY IDA (The Episcopal Church Home)1
|
6.000 | 02/01/2028 | 1,381,705 | ||||||||||||
25,290,000 |
Erie County, NY Tobacco Asset Securitization Corp.1
|
5.000 | 06/01/2038 | 18,412,890 | ||||||||||||
72,595,000 |
Erie County, NY Tobacco Asset Securitization Corp.1
|
5.000 | 06/01/2045 | 51,247,714 | ||||||||||||
93,000,000 |
Erie County, NY Tobacco Asset Securitization Corp.
|
6.140 | 3 | 06/01/2047 | 2,416,140 | |||||||||||
135,450,000 |
Erie County, NY Tobacco Asset Securitization Corp.
|
6.488 | 3 | 06/01/2050 | 2,160,428 | |||||||||||
194,300,000 |
Erie County, NY Tobacco Asset Securitization Corp.
|
7.196 | 3 | 06/01/2055 | 1,342,613 | |||||||||||
1,024,000,000 |
Erie County, NY Tobacco Asset Securitization Corp.
|
7.650 | 3 | 06/01/2060 | 4,044,800 | |||||||||||
1,410,000 |
Essex County, NY IDA (International Paper Company)1
|
4.600 | 03/01/2027 | 1,189,532 | ||||||||||||
2,300,000 |
Essex County, NY IDA (International Paper Company)1
|
6.450 | 11/15/2023 | 2,312,489 | ||||||||||||
1,500,000 |
Essex County, NY IDA (International Paper Company)1
|
6.625 | 09/01/2032 | 1,539,180 | ||||||||||||
30,000 |
Essex County, NY IDA (Moses Ludington Nursing Home)1
|
6.200 | 02/01/2030 | 30,148 | ||||||||||||
180,000 |
Essex County, NY IDA (Moses Ludington Nursing Home)1
|
6.375 | 02/01/2050 | 180,794 | ||||||||||||
975,000 |
Essex County, NY IDA (North Country Community College Foundation)1
|
5.000 | 06/01/2020 | 995,075 | ||||||||||||
320,000 |
Essex County, NY IDA (North Country Community College Foundation)1
|
5.000 | 06/01/2020 | 326,589 | ||||||||||||
410,000 |
Essex County, NY IDA (North Country Community College Foundation)1
|
5.200 | 06/01/2025 | 411,423 | ||||||||||||
1,235,000 |
Essex County, NY IDA (North Country Community College Foundation)1
|
5.200 | 06/01/2025 | 1,239,285 | ||||||||||||
1,100,000 |
Essex County, NY IDA (North Country Community College Foundation)1
|
5.300 | 06/01/2035 | 1,015,124 | ||||||||||||
9,300,000 |
Essex County, NY IDA Solid Waste Disposal (International Paper Company)1
|
5.200 | 12/01/2023 | 8,637,282 | ||||||||||||
4,440,000 |
Essex County, NY IDA Solid Waste Disposal (International Paper Company)1
|
5.200 | 03/01/2028 | 4,044,440 | ||||||||||||
1,850,000 |
Essex County, NY IDA Solid Waste Disposal (International Paper Company)1
|
5.500 | 08/15/2022 | 1,795,814 | ||||||||||||
1,625,000 |
Essex County, NY IDA Solid Waste Disposal (International Paper Company)1
|
5.500 | 10/01/2026 | 1,536,454 | ||||||||||||
5,680,000 |
Franklin County, NY IDA (Adirondack Medical Center)1
|
5.500 | 12/01/2029 | 5,397,988 | ||||||||||||
900,000 |
Franklin County, NY IDA (North Country Community College Foundation)1
|
5.200 | 06/01/2025 | 903,123 | ||||||||||||
3,395,000 |
Glen Cove, NY IDA (SLCD)1
|
7.375 | 07/01/2023 | 3,410,923 | ||||||||||||
1,075,000 |
Green Island, NY Power Authority1
|
5.125 | 12/15/2024 | 1,037,569 | ||||||||||||
2,210,000 |
Green Island, NY Power Authority1
|
6.000 | 12/15/2020 | 2,250,222 | ||||||||||||
1,695,000 |
Green Island, NY Power Authority1
|
6.000 | 12/15/2025 | 1,704,848 | ||||||||||||
105,000 |
Hempstead, NY IDA (Dentaco Corp.)1
|
7.250 | 11/01/2012 | 103,676 | ||||||||||||
1,270,000 |
Hempstead, NY IDA (Dentaco Corp.)1
|
8.250 | 11/01/2025 | 1,227,303 | ||||||||||||
7,930,000 |
Hempstead, NY IDA (Franklin Hospital Medical Center)1
|
6.375 | 11/01/2018 | 7,930,714 | ||||||||||||
7,660,000 |
Hempstead, NY IDA (Franklin Hospital Medical Center)1
|
7.750 | 11/01/2022 | 7,890,413 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 25,260,000 |
Hempstead, NY IDA (Lynbrook Facilities)1
|
6.500 | % | 11/01/2042 | $ | 18,553,723 | |||||||||
3,665,000 |
Hempstead, NY IDA (Peninsula Counseling Center)1
|
6.500 | 11/01/2038 | 3,098,684 | ||||||||||||
5,680,000 |
Hempstead, NY IDA (South Shore Y JCC)1
|
6.750 | 11/01/2024 | 4,965,854 | ||||||||||||
845,000 |
Herkimer County, NY IDA (Folts Adult Home)1
|
5.500 | 03/20/2040 | 848,355 | ||||||||||||
1,000,000 |
Herkimer County, NY IDA (Herkimer County College Foundation)1
|
6.250 | 08/01/2034 | 1,001,580 | ||||||||||||
1,285,000 |
Herkimer County, NY IDA (Herkimer County College Foundation)1
|
6.400 | 11/01/2020 | 1,308,104 | ||||||||||||
2,000,000 |
Herkimer County, NY IDA (Herkimer County College Foundation)1
|
6.500 | 11/01/2030 | 2,016,560 | ||||||||||||
75,000 |
Herkimer, NY Hsg. Authority1
|
7.150 | 03/01/2011 | 75,334 | ||||||||||||
67,340,000 |
Hudson Yards, NY Infrastructure Corp.1
|
5.000 | 02/15/2047 | 60,909,703 | ||||||||||||
358,680,000 |
Hudson Yards, NY Infrastructure Corp.1
|
5.000 | 02/15/2047 | 324,429,647 | ||||||||||||
135,000 |
Huntington, NY Hsg. Authority (GJSR)1
|
5.875 | 05/01/2019 | 128,897 | ||||||||||||
1,000,000 |
Huntington, NY Hsg. Authority (GJSR)1
|
6.000 | 05/01/2029 | 922,070 | ||||||||||||
8,500,000 |
Huntington, NY Hsg. Authority (GJSR)1
|
6.000 | 05/01/2039 | 7,130,990 | ||||||||||||
675,000 |
Islip, NY IDA (Leeway School)1
|
9.000 | 08/01/2021 | 675,979 | ||||||||||||
15,265,000 |
Islip, NY IDA (Southside Hospital Civic Facilities)1
|
7.750 | 12/01/2022 | 14,803,386 | ||||||||||||
1,125,000 |
Islip, NY IDA (United Cerebral Palsy Assoc.)1
|
6.250 | 12/01/2031 | 960,401 | ||||||||||||
9,695,000 |
Islip, NY IDA (United Cerebral Palsy Assoc.)1
|
6.250 | 12/01/2031 | 8,276,525 | ||||||||||||
60,000 |
L.I., NY Power Authority, Series A1
|
5.125 | 09/01/2029 | 57,390 | ||||||||||||
5,300,000 |
Madison County, NY IDA (Commons II Student Hsg.)1
|
5.000 | 06/01/2040 | 4,481,786 | ||||||||||||
850,000 |
Madison County, NY IDA (Morrisville State College Foundation)1
|
5.000 | 06/01/2028 | 757,197 | ||||||||||||
1,100,000 |
Madison County, NY IDA (Morrisville State College Foundation)1
|
5.000 | 06/01/2032 | 962,302 | ||||||||||||
1,320,000 |
Madison County, NY IDA (Oneida Healthcare Center)1
|
5.300 | 02/01/2021 | 1,279,859 | ||||||||||||
5,500,000 |
Madison County, NY IDA (Oneida Healthcare Center)1
|
5.350 | 02/01/2031 | 4,784,780 | ||||||||||||
570,000 |
Middletown, NY IDA (Flanagan Design & Display)1
|
7.500 | 11/01/2018 | 498,231 | ||||||||||||
1,165,000 |
Middletown, NY IDA (YMCA)1
|
7.000 | 11/01/2019 | 1,164,499 | ||||||||||||
50,000 |
Monroe County, NY IDA (Cloverwood Senior Living)1
|
6.750 | 05/01/2023 | 46,592 | ||||||||||||
165,000 |
Monroe County, NY IDA (Cloverwood Senior Living)1
|
6.875 | 05/01/2033 | 185,460 | ||||||||||||
860,000 |
Monroe County, NY IDA (Cloverwood Senior Living)1
|
6.875 | 05/01/2033 | 791,449 | ||||||||||||
3,885,000 |
Monroe County, NY IDA (DePaul Community Facilities)1
|
5.875 | 02/01/2028 | 2,774,512 | ||||||||||||
4,780,000 |
Monroe County, NY IDA (DePaul Community Facilities)1
|
5.950 | 08/01/2028 | 3,965,010 | ||||||||||||
2,470,000 |
Monroe County, NY IDA (Parma Senior Hsg. Assoc.)1
|
6.500 | 12/01/2042 | 2,119,384 | ||||||||||||
2,915,000 |
Monroe County, NY IDA (Rochester Institute of Technology)1
|
5.375 | 04/01/2029 | 2,720,424 | ||||||||||||
2,260,000 |
Monroe County, NY IDA (St. John Fisher College)1
|
5.250 | 06/01/2026 | 2,078,138 | ||||||||||||
3,210,000 |
Monroe County, NY IDA (St. John Fisher College)1
|
5.375 | 06/01/2024 | 3,123,458 | ||||||||||||
2,175,000 |
Monroe County, NY IDA (Summit at Brighton)1
|
5.375 | 07/01/2032 | 1,656,023 | ||||||||||||
3,660,000 |
Monroe County, NY IDA (Summit at Brighton)1
|
5.500 | 07/01/2027 | 2,917,789 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 670,000 |
Monroe County, NY IDA (Volunteers of America)1
|
5.700 | % | 08/01/2018 | $ | 613,177 | |||||||||
2,765,000 |
Monroe County, NY IDA (Volunteers of America)1
|
5.750 | 08/01/2028 | 2,261,272 | ||||||||||||
15,000,000 |
Monroe County, NY Industrial Devel. Corp. (Unity Hospital Rochester)1
|
5.750 | 08/15/2035 | 16,101,150 | ||||||||||||
650,000,000 |
Monroe County, NY Tobacco Asset Securitization Corp. (TASC)
|
7.701 | 3 | 06/01/2061 | 2,294,500 | |||||||||||
580,000 |
Monroe, NY Newpower Corp1
|
5.625 | 01/01/2026 | 552,630 | ||||||||||||
2,265,000 |
Monroe, NY Newpower Corp.1
|
5.500 | 01/01/2034 | 2,011,841 | ||||||||||||
600,000 |
Mount Vernon, NY IDA (Kings Court)1
|
5.200 | 12/01/2033 | 575,928 | ||||||||||||
3,275,000 |
Mount Vernon, NY IDA (Macedonia Towers)1
|
5.200 | 12/01/2033 | 2,750,542 | ||||||||||||
2,240,000 |
Mount Vernon, NY IDA (Meadowview)1
|
6.150 | 06/01/2019 | 2,142,157 | ||||||||||||
2,600,000 |
Mount Vernon, NY IDA (Meadowview)1
|
6.200 | 06/01/2029 | 2,303,054 | ||||||||||||
802,824 |
Municipal Assistance Corp. for Troy, NY
|
5.733 | 3 | 07/15/2021 | 512,531 | |||||||||||
1,218,573 |
Municipal Assistance Corp. for Troy, NY
|
5.741 | 3 | 01/15/2022 | 757,538 | |||||||||||
700,000 |
Nassau County, NY IDA (ACDS)1
|
5.950 | 11/01/2022 | 623,882 | ||||||||||||
440,000 |
Nassau County, NY IDA (ALIA-ACDS)1
|
7.500 | 06/01/2015 | 445,711 | ||||||||||||
2,975,000 |
Nassau County, NY IDA (ALIA-ACLD)1
|
6.250 | 09/01/2022 | 2,723,761 | ||||||||||||
165,000 |
Nassau County, NY IDA (ALIA-ACLD)1
|
7.125 | 06/01/2017 | 165,452 | ||||||||||||
220,000 |
Nassau County, NY IDA (ALIA-ACLD)1
|
7.500 | 06/01/2015 | 222,856 | ||||||||||||
3,705,000 |
Nassau County, NY IDA (ALIA-CSMR)1
|
7.000 | 11/01/2016 | 3,714,040 | ||||||||||||
2,395,000 |
Nassau County, NY IDA (ALIA-CSMR)1
|
7.125 | 06/01/2017 | 2,401,562 | ||||||||||||
1,105,000 |
Nassau County, NY IDA (ALIA-CSMR)1
|
7.500 | 06/01/2015 | 1,119,343 | ||||||||||||
95,000 |
Nassau County, NY IDA (ALIA-FREE)1
|
7.125 | 06/01/2012 | 96,102 | ||||||||||||
1,360,000 |
Nassau County, NY IDA (ALIA-FREE)1
|
7.500 | 06/01/2015 | 1,377,653 | ||||||||||||
4,030,000 |
Nassau County, NY IDA (ALIA-FREE)1
|
8.150 | 06/01/2030 | 4,067,681 | ||||||||||||
6,065,000 |
Nassau County, NY IDA (ALIA-FREE)1
|
8.250 | 06/01/2032 | 6,178,112 | ||||||||||||
640,000 |
Nassau County, NY IDA (ALIA-HH)1
|
7.125 | 06/01/2017 | 641,754 | ||||||||||||
490,000 |
Nassau County, NY IDA (ALIA-HHS)1
|
7.125 | 06/01/2017 | 491,343 | ||||||||||||
120,000 |
Nassau County, NY IDA (ALIA-LVH)1
|
7.500 | 06/01/2015 | 121,558 | ||||||||||||
12,500,000 |
Nassau County, NY IDA (Amsterdam at Harborside)1
|
6.700 | 01/01/2043 | 11,533,000 | ||||||||||||
330,000 |
Nassau County, NY IDA (CNGCS)1
|
7.500 | 06/01/2030 | 334,283 | ||||||||||||
2,245,000 |
Nassau County, NY IDA (CNGCS)1
|
8.150 | 06/01/2030 | 2,265,991 | ||||||||||||
4,900,000 |
Nassau County, NY IDA (CSMR)1
|
5.950 | 11/01/2022 | 4,367,174 | ||||||||||||
600,000 |
Nassau County, NY IDA (Epilepsy Foundation of L.I.)1
|
5.950 | 11/01/2022 | 534,756 | ||||||||||||
1,660,000 |
Nassau County, NY IDA (Hispanic Counseling Center)1
|
6.500 | 11/01/2037 | 1,406,335 | ||||||||||||
3,150,000 |
Nassau County, NY IDA (Keyspan-Glenwood Energy Center)1
|
5.250 | 06/01/2027 | 3,100,514 | ||||||||||||
610,000 |
Nassau County, NY IDA (Life's WORCA)1
|
5.950 | 11/01/2022 | 543,669 | ||||||||||||
3,545,000 |
Nassau County, NY IDA (Little Village School)1
|
7.500 | 12/01/2031 | 3,539,647 | ||||||||||||
1,000,000 |
Nassau County, NY IDA (New York Institute of Technology)1
|
4.750 | 03/01/2026 | 938,630 | ||||||||||||
3,535,000 |
Nassau County, NY IDA (New York Water Service Corp.)1
|
5.000 | 12/01/2035 | 3,070,466 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 2,115,000 |
Nassau County, NY IDA (North Shore CFGA)1
|
6.750 | % | 05/01/2024 | $ | 1,999,373 | |||||||||
1,255,000 |
Nassau County, NY IDA (PLUS Group Home)1
|
6.150 | 11/01/2022 | 1,138,084 | ||||||||||||
1,280,000 |
Nassau County, NY IDA (United Cerebral Palsy)1
|
6.250 | 11/01/2014 | 1,258,547 | ||||||||||||
645,000 |
Nassau County, NY IDA (United Veteran's Beacon House)1
|
6.500 | 11/01/2037 | 546,438 | ||||||||||||
610,000 |
Nassau County, NY IDA, Series A-A1
|
6.000 | 07/02/2021 | 553,648 | ||||||||||||
6,600,000 |
Nassau County, NY IDA, Series A-B1
|
6.000 | 07/01/2021 | 5,990,292 | ||||||||||||
655,000 |
Nassau County, NY IDA, Series A-C1
|
6.000 | 07/01/2021 | 594,491 | ||||||||||||
745,000 |
Nassau County, NY IDA, Series A-D1
|
6.000 | 07/01/2021 | 676,177 | ||||||||||||
122,875,000 |
Nassau County, NY Tobacco Settlement Corp.1
|
5.125 | 06/01/2046 | 87,166,296 | ||||||||||||
9,000,000 |
Nassau County, NY Tobacco Settlement Corp.1
|
5.250 | 06/01/2026 | 7,938,270 | ||||||||||||
20,000,000 |
Nassau County, NY Tobacco Settlement Corp.
|
5.820 | 3 | 06/01/2046 | 679,800 | |||||||||||
105,975,000 |
Nassau County, NY Tobacco Settlement Corp.
|
6.221 | 3 | 06/01/2046 | 3,042,542 | |||||||||||
1,055,215,000 |
Nassau County, NY Tobacco Settlement Corp.
|
6.537 | 3 | 06/01/2060 | 5,888,100 | |||||||||||
40,000,000 |
Nassau County, NY Tobacco Settlement Corp.
|
7.351 | 3 | 06/01/2060 | 158,000 | |||||||||||
22,780,000 |
Nassau County, NY Tobacco Settlement Corp. (TASC)1
|
5.000 | 06/01/2035 | 17,097,757 | ||||||||||||
13,010,000 |
New Rochelle, NY IDA (College of New Rochelle)1
|
5.250 | 07/01/2027 | 12,715,324 | ||||||||||||
3,670,000 |
New Rochelle, NY IDA (Soundview Apartments)1
|
5.375 | 04/01/2036 | 3,425,138 | ||||||||||||
3,300,000 |
Niagara County, NY IDA (American Ref-Fuel Company)1
|
5.550 | 11/15/2024 | 3,353,064 | ||||||||||||
2,810,000 |
Niagara County, NY IDA (Niagara Falls Memorial Medical Center)
|
5.750 | 06/01/2018 | 2,682,286 | ||||||||||||
1,500,000 |
Niagara County, NY IDA (Niagara University)1
|
5.350 | 11/01/2023 | 1,504,035 | ||||||||||||
5,400,000 |
Niagara County, NY IDA (Niagara University)1
|
5.400 | 11/01/2031 | 5,203,440 | ||||||||||||
2,600,000 |
Niagara County, NY IDA (Solid Waste Disposal)1
|
5.550 | 11/15/2024 | 2,642,120 | ||||||||||||
7,250,000 |
Niagara County, NY IDA (Solid Waste Disposal)1
|
5.625 | 11/15/2024 | 7,382,748 | ||||||||||||
20,000 |
Niagara County, NY Tobacco Asset Securitization Corp.1
|
5.750 | 05/15/2022 | 19,080 | ||||||||||||
1,480,000 |
Niagara County, NY Tobacco Asset Securitization Corp.1
|
6.250 | 05/15/2034 | 1,352,246 | ||||||||||||
6,295,000 |
Niagara County, NY Tobacco Asset Securitization Corp.1
|
6.250 | 05/15/2040 | 5,630,752 | ||||||||||||
125,000 |
Niagara Falls, NY Public Water Authority1
|
5.500 | 07/15/2034 | 119,981 | ||||||||||||
355,000 |
Niagara, NY Frontier Transportation Authority (Buffalo Niagara International Airport)1
|
5.000 | 04/01/2028 | 315,567 | ||||||||||||
1,875,000 |
Niagara, NY Frontier Transportation Authority (Buffalo Niagara International Airport)1
|
5.625 | 04/01/2029 | 1,808,531 | ||||||||||||
2,835,000 |
North Tonawanda, NY HDC (Bishop Gibbons Associates)1
|
7.375 | 12/15/2021 | 3,382,495 | ||||||||||||
500,000 |
NY Carnegie Redevel. Corp.
|
7.000 | 09/01/2021 | 406,835 | ||||||||||||
7,455,000 |
NY Counties Tobacco Trust I
|
6.250 | 06/01/2028 | 6,996,294 | ||||||||||||
6,235,000 |
NY Counties Tobacco Trust I1
|
6.500 | 06/01/2035 | 5,837,706 | ||||||||||||
19,230,000 |
NY Counties Tobacco Trust I1
|
6.625 | 06/01/2042 | 18,028,510 | ||||||||||||
29,800,000 |
NY Counties Tobacco Trust II (TASC)1
|
5.625 | 06/01/2035 | 24,749,198 | ||||||||||||
53,880,000 |
NY Counties Tobacco Trust II (TASC)1
|
5.750 | 06/01/2043 | 44,553,372 | ||||||||||||
245,000 |
NY Counties Tobacco Trust III1
|
6.000 | 06/01/2043 | 210,296 | ||||||||||||
7,000,000 |
NY Counties Tobacco Trust IV1
|
5.000 | 06/01/2038 | 4,969,930 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 131,335,000 |
NY Counties Tobacco Trust IV
|
5.920 | %3 | 06/01/2050 | $ | 2,525,572 | |||||||||
304,690,000 |
NY Counties Tobacco Trust IV
|
6.395 | 3 | 06/01/2055 | 2,873,227 | |||||||||||
608,700,000 |
NY Counties Tobacco Trust IV
|
6.816 | 3 | 06/01/2060 | 2,404,365 | |||||||||||
52,535,000 |
NY Counties Tobacco Trust IV (TASC)1
|
5.000 | 06/01/2042 | 36,705,679 | ||||||||||||
38,275,000 |
NY Counties Tobacco Trust IV (TASC)1
|
5.000 | 06/01/2045 | 26,491,659 | ||||||||||||
82,500,000 |
NY Counties Tobacco Trust IV (TASC)1
|
6.250 | 06/01/2041 | 74,028,075 | ||||||||||||
236,140,000 |
NY Counties Tobacco Trust V
|
6.070 | 3 | 06/01/2038 | 17,228,774 | |||||||||||
599,098,613 |
NY Counties Tobacco Trust V
|
6.210 | 3 | 06/01/2050 | 12,796,746 | |||||||||||
643,195,000 |
NY Counties Tobacco Trust V
|
6.850 | 3 | 06/01/2055 | 6,065,329 | |||||||||||
3,845,000,000 |
NY Counties Tobacco Trust V
|
7.846 | 3 | 06/01/2060 | 15,187,750 | |||||||||||
15,000,000 |
NY Liberty Devel. Corp. (Bank of America Tower)1
|
5.125 | 01/15/2044 | 14,524,200 | ||||||||||||
62,345,000 |
NY Liberty Devel. Corp. (Bank of America Tower)4
|
5.625 | 01/15/2046 | 63,649,050 | ||||||||||||
4,000,000 |
NY Liberty Devel. Corp. (Bank of America Tower)1
|
5.625 | 07/15/2047 | 4,004,080 | ||||||||||||
68,000,000 |
NY Liberty Devel. Corp. (Goldman Sachs Headquarters)4
|
5.250 | 10/01/2035 | 66,154,392 | ||||||||||||
13,925,000 |
NY Liberty Devel. Corp. (Goldman Sachs Headquarters)1
|
5.250 | 10/01/2035 | 13,547,772 | ||||||||||||
2,199,995 |
NY Liberty Devel. Corp. (National Sports Museum)2,5
|
6.125 | 02/15/2019 | 22 | ||||||||||||
51,560,000 |
NY MTA, Series A4
|
5.000 | 11/15/2030 | 51,371,661 | ||||||||||||
20,000 |
NY MTA, Series A1
|
5.000 | 11/15/2032 | 19,162 | ||||||||||||
25,000 |
NY MTA, Series B1
|
5.000 | 01/01/2031 | 24,444 | ||||||||||||
1,400,000 |
NY Newark-Wayne Community Hospital1
|
7.600 | 09/01/2015 | 1,399,734 | ||||||||||||
29,720,000 |
NY Seneca Nation Indians Capital Improvements1
|
5.000 | 12/01/2023 | 23,636,613 | ||||||||||||
25,000 |
NY Triborough Bridge & Tunnel Authority1
|
5.000 | 01/01/2032 | 25,015 | ||||||||||||
33,060,000 |
NY Triborough Bridge & Tunnel Authority, Series A4
|
5.000 | 01/01/2027 | 33,127,142 | ||||||||||||
13,950,000 |
NY TSASC, Inc. (TFABs)1
|
5.000 | 06/01/2026 | 12,983,544 | ||||||||||||
251,510,000 |
NY TSASC, Inc. (TFABs)1
|
5.000 | 06/01/2034 | 194,698,921 | ||||||||||||
337,515,000 |
NY TSASC, Inc. (TFABs)1
|
5.125 | 06/01/2042 | 249,777,976 | ||||||||||||
5,000,000 |
NYC Capital Resources Corp. (Albee Retail Devel.)1
|
7.250 | 11/01/2042 | 4,932,600 | ||||||||||||
15,000 |
NYC GO1
|
5.000 | 06/01/2020 | 15,833 | ||||||||||||
25,000 |
NYC GO1
|
5.000 | 03/01/2025 | 25,472 | ||||||||||||
20,000,000 |
NYC GO4
|
5.000 | 04/01/2030 | 20,036,243 | ||||||||||||
46,000,000 |
NYC GO4
|
5.000 | 06/01/2030 | 46,088,242 | ||||||||||||
10,920,000 |
NYC GO4
|
5.000 | 08/01/2030 | 10,941,731 | ||||||||||||
12,455,000 |
NYC GO4
|
5.000 | 12/01/2033 | 12,498,271 | ||||||||||||
30,150,000 |
NYC GO4
|
5.000 | 11/01/2034 | 30,210,320 | ||||||||||||
12,765,000 |
NYC GO4
|
5.000 | 03/01/2035 | 12,764,081 | ||||||||||||
19,405,000 |
NYC GO4
|
5.000 | 04/01/2035 | 19,403,428 | ||||||||||||
5,400,000 |
NYC GO4
|
5.000 | 08/01/2035 | 5,399,781 | ||||||||||||
60,000 |
NYC GO1
|
5.100 | 11/01/2019 | 62,987 | ||||||||||||
100,000 |
NYC GO1
|
5.250 | 09/15/2013 | 100,344 | ||||||||||||
20,000,000 |
NYC GO4
|
5.250 | 03/01/2021 | 22,088,200 | ||||||||||||
5,000 |
NYC GO1
|
5.250 | 08/01/2021 | 5,015 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 25,530,000 |
NYC GO4
|
5.250 | % | 06/01/2027 | $ | 26,133,827 | |||||||||
5,000 |
NYC GO1
|
5.375 | 12/01/2026 | 5,129 | ||||||||||||
5,000 |
NYC GO1
|
5.375 | 03/01/2027 | 5,488 | ||||||||||||
37,945,000 |
NYC GO4
|
5.375 | 06/01/2032 | 38,368,931 | ||||||||||||
40,000 |
NYC GO1
|
5.500 | 08/01/2022 | 40,119 | ||||||||||||
5,000 |
NYC GO1
|
5.500 | 12/01/2031 | 5,144 | ||||||||||||
5,000 |
NYC GO1
|
5.950 | 08/01/2014 | 5,020 | ||||||||||||
40,000 |
NYC GO
|
6.154 | 3 | 10/01/2012 | 39,205 | |||||||||||
2,000,000 |
NYC GO1
|
6.250 | 12/15/2031 | 2,207,220 | ||||||||||||
15,000 |
NYC GO1
|
7.250 | 08/15/2024 | 15,067 | ||||||||||||
5,000 |
NYC GO1
|
7.750 | 08/15/2028 | 5,032 | ||||||||||||
1,475,000 |
NYC GO ROLs6
|
14.659 | 7 | 05/15/1931 | 1,508,748 | |||||||||||
5,395,000 |
NYC GO ROLs6
|
14.668 | 7 | 05/15/2036 | 5,401,042 | |||||||||||
875,000 |
NYC GO ROLs6
|
14.671 | 7 | 05/15/2033 | 885,500 | |||||||||||
37,272 |
NYC HDC (Beekman)1
|
6.500 | 10/15/2017 | 37,350 | ||||||||||||
252,254 |
NYC HDC (Bridgeview III)
|
6.500 | 12/15/2017 | 253,422 | ||||||||||||
743,271 |
NYC HDC (Cadman Towers)
|
6.500 | 11/15/2018 | 746,712 | ||||||||||||
47,802 |
NYC HDC (Essex Terrace)
|
6.500 | 07/15/2018 | 47,964 | ||||||||||||
104,207 |
NYC HDC (Keith Plaza)
|
6.500 | 02/15/2018 | 104,561 | ||||||||||||
1,800,000 |
NYC HDC (Multifamily Hsg.)1
|
4.700 | 11/01/2040 | 1,570,968 | ||||||||||||
780,000 |
NYC HDC (Multifamily Hsg.)1
|
5.000 | 11/01/2030 | 715,572 | ||||||||||||
3,500,000 |
NYC HDC (Multifamily Hsg.)4
|
5.000 | 11/01/2037 | 3,233,087 | ||||||||||||
2,700,000 |
NYC HDC (Multifamily Hsg.)1
|
5.000 | 11/01/2042 | 2,544,291 | ||||||||||||
60,000 |
NYC HDC (Multifamily Hsg.)1
|
5.050 | 11/01/2023 | 60,152 | ||||||||||||
4,685,000 |
NYC HDC (Multifamily Hsg.)4
|
5.050 | 11/01/2039 | 4,312,238 | ||||||||||||
2,435,000 |
NYC HDC (Multifamily Hsg.)4
|
5.100 | 11/01/2027 | 2,399,741 | ||||||||||||
3,000,000 |
NYC HDC (Multifamily Hsg.)4
|
5.125 | 11/01/2032 | 2,868,810 | ||||||||||||
5,100,000 |
NYC HDC (Multifamily Hsg.)1
|
5.150 | 11/01/2037 | 4,857,597 | ||||||||||||
1,675,000 |
NYC HDC (Multifamily Hsg.)1
|
5.200 | 11/01/2035 | 1,527,081 | ||||||||||||
8,035,000 |
NYC HDC (Multifamily Hsg.)4
|
5.200 | 11/01/2040 | 7,592,880 | ||||||||||||
14,110,000 |
NYC HDC (Multifamily Hsg.)4
|
5.250 | 11/01/2030 | 14,125,939 | ||||||||||||
7,205,000 |
NYC HDC (Multifamily Hsg.)1
|
5.250 | 11/01/2045 | 6,798,854 | ||||||||||||
5,140,000 |
NYC HDC (Multifamily Hsg.)1
|
5.350 | 11/01/2037 | 5,010,986 | ||||||||||||
1,215,000 |
NYC HDC (Multifamily Hsg.)1
|
5.350 | 05/01/2041 | 1,094,265 | ||||||||||||
15,000 |
NYC HDC (Multifamily Hsg.)1
|
5.400 | 11/01/2033 | 14,780 | ||||||||||||
3,735,000 |
NYC HDC (Multifamily Hsg.)1
|
5.450 | 11/01/2040 | 3,664,521 | ||||||||||||
2,670,000 |
NYC HDC (Multifamily Hsg.)1
|
5.450 | 11/01/2046 | 2,394,910 | ||||||||||||
4,785,000 |
NYC HDC (Multifamily Hsg.)1
|
5.500 | 11/01/2028 | 4,808,399 | ||||||||||||
3,090,000 |
NYC HDC (Multifamily Hsg.)4
|
5.500 | 11/01/2034 | 3,107,236 | ||||||||||||
2,840,000 |
NYC HDC (Multifamily Hsg.)4
|
5.550 | 11/01/2039 | 2,851,048 | ||||||||||||
10,910,000 |
NYC HDC (Multifamily Hsg.)4
|
5.700 | 11/01/2046 | 10,983,164 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 69,223 |
NYC HDC (Multifamily Hsg.)1
|
6.500 | % | 02/15/2018 | $ | 70,795 | |||||||||
10,470,000 |
NYC HDC (Multifamily Hsg.), Series A4
|
5.600 | 11/01/2042 | 10,491,778 | ||||||||||||
31,300,000 |
NYC HDC (Multifamily Hsg.), Series B4
|
5.350 | 05/01/2049 | 29,878,424 | ||||||||||||
11,250,000 |
NYC HDC (Multifamily Hsg.), Series C4
|
5.050 | 11/01/2036 | 10,323,380 | ||||||||||||
8,365,000 |
NYC HDC (Multifamily Hsg.), Series C4
|
5.125 | 05/01/2040 | 7,817,686 | ||||||||||||
385,000 |
NYC HDC (Multifamily Hsg.), Series C1
|
5.700 | 05/01/2031 | 385,039 | ||||||||||||
1,000,000 |
NYC HDC (Multifamily Hsg.), Series E1
|
5.200 | 11/01/2033 | 959,550 | ||||||||||||
2,155,000 |
NYC HDC (Multifamily Hsg.), Series F1
|
5.200 | 11/01/2032 | 2,081,213 | ||||||||||||
13,180,000 |
NYC HDC (Multifamily Hsg.), Series G-14
|
4.875 | 11/01/2039 | 12,094,413 | ||||||||||||
1,345,000 |
NYC HDC (Multifamily Hsg.), Series H-21
|
5.200 | 11/01/2038 | 1,276,728 | ||||||||||||
3,400,000 |
NYC HDC (Multifamily Hsg.), Series H-21
|
5.250 | 05/01/2046 | 3,206,472 | ||||||||||||
15,510,000 |
NYC HDC (Multifamily Hsg.), Series I-24
|
5.200 | 11/01/2038 | 14,232,499 | ||||||||||||
856,251 |
NYC HDC (Ruppert)1
|
6.500 | 11/15/2018 | 901,135 | ||||||||||||
213,373 |
NYC HDC (St. Martin Tower)
|
6.500 | 11/15/2018 | 214,361 | ||||||||||||
2,750,000 |
NYC HDC, Series C4
|
5.000 | 11/01/2026 | 2,697,146 | ||||||||||||
22,200,000 |
NYC Health & Hospital Corp. (Health System)1
|
5.000 | 02/15/2030 | 22,117,638 | ||||||||||||
870,000 |
NYC IDA (A Very Special Place)1
|
5.750 | 01/01/2029 | 710,599 | ||||||||||||
3,215,000 |
NYC IDA (Acme Architectural Products)1
|
6.375 | 11/01/2019 | 2,885,109 | ||||||||||||
43,020,000 |
NYC IDA (AIRIS JFK I/JFK International Airport)1
|
5.500 | 07/01/2028 | 37,387,391 | ||||||||||||
20,875,000 |
NYC IDA (AIRIS JFK I/JFK International Airport)1
|
6.000 | 07/01/2027 | 19,460,719 | ||||||||||||
160,000 |
NYC IDA (Allied Metal)1
|
6.375 | 12/01/2014 | 154,184 | ||||||||||||
940,000 |
NYC IDA (Allied Metal)1
|
7.125 | 12/01/2027 | 867,714 | ||||||||||||
2,830,000 |
NYC IDA (Amboy Properties)1
|
6.750 | 06/01/2020 | 2,354,192 | ||||||||||||
2,905,000 |
NYC IDA (American Airlines)
|
5.400 | 07/01/2019 | 2,477,587 | ||||||||||||
32,580,000 |
NYC IDA (American Airlines)
|
5.400 | 07/01/2020 | 27,401,409 | ||||||||||||
41,550,000 |
NYC IDA (American Airlines)
|
6.900 | 08/01/2024 | 38,447,462 | ||||||||||||
540,000 |
NYC IDA (American Airlines)1
|
7.500 | 08/01/2016 | 554,504 | ||||||||||||
18,200,000 |
NYC IDA (American Airlines)1
|
7.625 | 08/01/2025 | 18,921,630 | ||||||||||||
69,350,000 |
NYC IDA (American Airlines)1
|
7.750 | 08/01/2031 | 72,479,072 | ||||||||||||
44,860,000 |
NYC IDA (American Airlines)1
|
8.000 | 08/01/2028 | 47,566,852 | ||||||||||||
338,060,000 |
NYC IDA (American Airlines)1
|
8.500 | 08/01/2028 | 348,739,315 | ||||||||||||
3,530,000 |
NYC IDA (American National Red Cross)1
|
5.000 | 02/01/2036 | 3,006,219 | ||||||||||||
3,775,000 |
NYC IDA (Atlantic Paste & Glue Company)1
|
6.625 | 11/01/2019 | 3,433,438 | ||||||||||||
935,000 |
NYC IDA (Atlantic Veal & Lamb)1
|
8.375 | 12/01/2016 | 935,243 | ||||||||||||
105,000 |
NYC IDA (Baco Enterprises)1
|
7.500 | 11/01/2011 | 104,897 | ||||||||||||
1,685,000 |
NYC IDA (Baco Enterprises)1
|
8.500 | 11/01/2021 | 1,662,825 | ||||||||||||
1,230,000 |
NYC IDA (Bark Frameworks)1
|
6.750 | 11/01/2019 | 1,139,238 | ||||||||||||
5,500,000 |
NYC IDA (Beth Abraham Health Services)1
|
6.500 | 02/15/2022 | 4,742,210 | ||||||||||||
1,035,000 |
NYC IDA (Beth Abraham Health Services)1
|
6.500 | 11/15/2027 | 903,162 | ||||||||||||
4,220,000 |
NYC IDA (Beth Abraham Health Services)1
|
6.500 | 11/15/2034 | 3,615,612 | ||||||||||||
52,750,000 |
NYC IDA (British Airways)1
|
5.250 | 12/01/2032 | 40,773,113 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 34,450,000 |
NYC IDA (British Airways)1
|
7.625 | % | 12/01/2032 | $ | 34,727,323 | |||||||||
97,120,000 |
NYC IDA (Brooklyn Navy Yard Cogeneration Partners)1
|
5.650 | 10/01/2028 | 73,236,250 | ||||||||||||
153,620,000 |
NYC IDA (Brooklyn Navy Yard Cogeneration Partners)1
|
5.750 | 10/01/2036 | 115,351,722 | ||||||||||||
22,255,000 |
NYC IDA (Brooklyn Navy Yard Cogeneration Partners)1
|
6.200 | 10/01/2022 | 19,224,314 | ||||||||||||
16,205,000 |
NYC IDA (Calhoun School)1
|
6.625 | 12/01/2034 | 14,038,392 | ||||||||||||
4,145,000 |
NYC IDA (Calhoun School)1
|
6.625 | 12/01/2034 | 3,543,478 | ||||||||||||
2,895,000 |
NYC IDA (Center for Elimination of Family Violence)1
|
7.375 | 11/01/2036 | 2,772,542 | ||||||||||||
15,540,000 |
NYC IDA (Center for Nursing/Rehabilitation)1
|
5.375 | 08/01/2027 | 12,900,376 | ||||||||||||
3,400,000 |
NYC IDA (Center for Nursing/Rehabilitation)1
|
5.375 | 08/01/2027 | 2,822,476 | ||||||||||||
29,135,000 |
NYC IDA (Chapin School)1
|
5.000 | 11/01/2038 | 23,688,212 | ||||||||||||
1,490,000 |
NYC IDA (Comprehensive Care Management)1
|
6.000 | 05/01/2026 | 1,264,340 | ||||||||||||
3,145,000 |
NYC IDA (Comprehensive Care Management)1
|
6.125 | 11/01/2035 | 2,551,727 | ||||||||||||
3,760,000 |
NYC IDA (Comprehensive Care Management)1
|
6.375 | 11/01/2028 | 2,997,472 | ||||||||||||
1,490,000 |
NYC IDA (Comprehensive Care Management)1
|
6.375 | 11/01/2028 | 1,268,988 | ||||||||||||
1,375,000 |
NYC IDA (Comprehensive Care Management)1
|
7.875 | 12/01/2016 | 1,375,316 | ||||||||||||
430,000 |
NYC IDA (Comprehensive Care Management)1
|
8.000 | 12/01/2011 | 430,297 | ||||||||||||
2,800,000 |
NYC IDA (Continental Airlines)
|
8.000 | 11/01/2012 | 2,822,652 | ||||||||||||
4,685,000 |
NYC IDA (Continental Airlines)
|
8.375 | 11/01/2016 | 4,720,653 | ||||||||||||
1,310,000 |
NYC IDA (Cool Wind Ventilation)1
|
5.450 | 11/01/2017 | 1,111,352 | ||||||||||||
1,180,000 |
NYC IDA (Cool Wind Ventilation)1
|
5.450 | 11/01/2017 | 1,001,065 | ||||||||||||
5,685,000 |
NYC IDA (Cool Wind Ventilation)1
|
6.075 | 11/01/2027 | 4,259,714 | ||||||||||||
475,000 |
NYC IDA (Eger Harbor House)1
|
5.875 | 05/20/2044 | 489,863 | ||||||||||||
5,500,000 |
NYC IDA (Family Support Systems)2
|
7.500 | 11/01/2034 | 3,590,675 | ||||||||||||
1,790,000 |
NYC IDA (Good Shepherd Services)1
|
5.875 | 06/01/2014 | 1,692,051 | ||||||||||||
3,270,000 |
NYC IDA (Gourmet Boutique)1
|
5.750 | 05/01/2021 | 2,583,889 | ||||||||||||
7,290,000 |
NYC IDA (Guttmacher Institute)1
|
5.750 | 12/01/2036 | 5,661,706 | ||||||||||||
2,095,000 |
NYC IDA (Herbert G. Birch Childhood Project)1
|
8.375 | 02/01/2022 | 2,098,059 | ||||||||||||
800,000 |
NYC IDA (Independent Living Assoc.)1
|
6.200 | 07/01/2020 | 746,360 | ||||||||||||
9,000,000 |
NYC IDA (JFK International Airport)1
|
8.000 | 08/01/2012 | 9,184,320 | ||||||||||||
540,000 |
NYC IDA (Just Bagels Manufacturing)1
|
8.500 | 11/01/2016 | 544,455 | ||||||||||||
920,000 |
NYC IDA (Just Bagels Manufacturing)1
|
8.750 | 11/01/2026 | 934,959 | ||||||||||||
19,700,000 |
NYC IDA (Liberty-7 World Trade Center)1
|
6.250 | 03/01/2015 | 19,428,337 | ||||||||||||
17,190,000 |
NYC IDA (Liberty-7 World Trade Center)
|
6.500 | 03/01/2035 | 16,423,670 | ||||||||||||
12,000,000 |
NYC IDA (Liberty-7 World Trade Center)1
|
6.750 | 03/01/2015 | 12,033,120 | ||||||||||||
45,500,000 |
NYC IDA (Liberty-IAC/Interactive Corp.)1
|
5.000 | 09/01/2035 | 38,035,725 | ||||||||||||
10,000 |
NYC IDA (Lighthouse International)1
|
4.500 | 07/01/2033 | 8,252 | ||||||||||||
2,405,000 |
NYC IDA (Little Red Schoolhouse)1
|
6.750 | 11/01/2018 | 2,407,501 | ||||||||||||
23,000,000 |
NYC IDA (Magen David Yeshivah)1
|
5.700 | 06/15/2027 | 16,075,620 | ||||||||||||
3,745,000 |
NYC IDA (Manhattan Community Access Corp.)1
|
6.000 | 12/01/2036 | 3,008,920 | ||||||||||||
1,895,000 |
NYC IDA (Margaret Tietz Nursing & Rehabilitation Center)1
|
6.375 | 11/01/2038 | 1,557,330 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 9,175,000 |
NYC IDA (Margaret Tietz Nursing & Rehabilitation Center)1
|
6.375 | % | 11/01/2038 | $ | 7,540,107 | |||||||||
680,000 |
NYC IDA (Marymount School of New York)1
|
5.125 | 09/01/2021 | 689,330 | ||||||||||||
4,010,000 |
NYC IDA (Marymount School of New York)1
|
5.250 | 09/01/2031 | 3,824,939 | ||||||||||||
17,780,000 |
NYC IDA (MediSys Health Network)1
|
6.250 | 03/15/2024 | 14,746,910 | ||||||||||||
325,000 |
NYC IDA (Mesorah Publications)1
|
6.450 | 02/01/2011 | 324,685 | ||||||||||||
4,790,000 |
NYC IDA (Mesorah Publications)1
|
6.950 | 02/01/2021 | 4,459,730 | ||||||||||||
8,405,000 |
NYC IDA (Metro Biofuels)1
|
6.000 | 11/01/2028 | 6,432,851 | ||||||||||||
2,700,000 |
NYC IDA (Metropolitan College of New York)1
|
5.750 | 03/01/2020 | 2,639,682 | ||||||||||||
1,855,000 |
NYC IDA (Morrisons Pastry)1
|
6.500 | 11/01/2019 | 1,733,423 | ||||||||||||
25,000 |
NYC IDA (NYU)1
|
5.000 | 07/01/2041 | 24,389 | ||||||||||||
40,000,000 |
NYC IDA (NYU)4
|
5.250 | 07/01/2048 | 40,394,912 | ||||||||||||
2,935,000 |
NYC IDA (Petrocelli Electric)1
|
8.000 | 11/01/2017 | 2,848,271 | ||||||||||||
805,000 |
NYC IDA (Petrocelli Electric)1
|
8.000 | 11/01/2018 | 765,016 | ||||||||||||
10,065,000 |
NYC IDA (Polytechnic University)1
|
5.250 | 11/01/2027 | 9,790,226 | ||||||||||||
1,830,000 |
NYC IDA (Precision Gear)1
|
6.375 | 11/01/2024 | 1,625,681 | ||||||||||||
2,145,000 |
NYC IDA (Precision Gear)1
|
6.375 | 11/01/2024 | 1,909,372 | ||||||||||||
865,000 |
NYC IDA (Precision Gear)1
|
7.625 | 11/01/2024 | 861,661 | ||||||||||||
1,750,000 |
NYC IDA (PSCH)1
|
6.375 | 07/01/2033 | 1,492,838 | ||||||||||||
15,310,000 |
NYC IDA (Queens Baseball Stadium)1
|
5.000 | 01/01/2046 | 12,411,052 | ||||||||||||
6,800,000 |
NYC IDA (Reece School)1
|
7.500 | 12/01/2037 | 6,089,400 | ||||||||||||
1,340,000 |
NYC IDA (Riverdale Terrace Hsg. Devel. Fund)1
|
6.250 | 11/01/2014 | 1,247,996 | ||||||||||||
8,595,000 |
NYC IDA (Riverdale Terrace Hsg. Devel. Fund)1
|
6.750 | 11/01/2028 | 6,950,433 | ||||||||||||
1,000,000 |
NYC IDA (Roundabout Theatre)1
|
5.000 | 10/01/2023 | 806,320 | ||||||||||||
3,785,000 |
NYC IDA (Sahadi Fine Foods)1
|
6.750 | 11/01/2019 | 3,537,688 | ||||||||||||
200,000 |
NYC IDA (Samaritan Aids Services)1
|
5.000 | 11/01/2024 | 201,252 | ||||||||||||
875,000 |
NYC IDA (SFTU/YAI/CRV Obligated Group)1
|
5.000 | 07/01/2026 | 680,593 | ||||||||||||
4,380,000 |
NYC IDA (Showman Fabricators)1
|
7.500 | 11/01/2028 | 3,320,303 | ||||||||||||
3,005,000 |
NYC IDA (South Bronx Overall Economic Devel.)1
|
8.625 | 12/01/2025 | 2,818,119 | ||||||||||||
1,625,000 |
NYC IDA (Special Needs Facilities Pooled Program)1
|
4.750 | 07/01/2020 | 1,368,250 | ||||||||||||
995,000 |
NYC IDA (Special Needs Facilities Pooled Program)1
|
5.250 | 07/01/2022 | 836,576 | ||||||||||||
2,415,000 |
NYC IDA (Special Needs Facilities Pooled Program)1
|
6.650 | 07/01/2023 | 2,350,616 | ||||||||||||
3,735,000 |
NYC IDA (Special Needs Facilities Pooled Program)1
|
7.875 | 08/01/2025 | 3,637,031 | ||||||||||||
5,760,000 |
NYC IDA (Stallion)1
|
5.500 | 11/01/2036 | 3,760,934 | ||||||||||||
955,000 |
NYC IDA (Stallion)1
|
6.000 | 11/01/2027 | 729,095 | ||||||||||||
10,000 |
NYC IDA (Staten Island University Hospital)1
|
6.375 | 07/01/2031 | 9,985 | ||||||||||||
1,420,000 |
NYC IDA (Staten Island University Hospital)1
|
6.450 | 07/01/2032 | 1,420,483 | ||||||||||||
405,000 |
NYC IDA (Streamline Plastics)1
|
7.750 | 12/01/2015 | 399,589 | ||||||||||||
1,275,000 |
NYC IDA (Streamline Plastics)1
|
8.125 | 12/01/2025 | 1,213,698 | ||||||||||||
6,808,500 |
NYC IDA (Studio School)1
|
7.000 | 11/01/2038 | 5,909,982 | ||||||||||||
605,000 |
NYC IDA (Surprise Plastics)2
|
7.500 | 11/01/2013 | 540,114 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 2,480,000 |
NYC IDA (Surprise Plastics)2
|
8.500 | % | 11/01/2023 | $ | 1,847,203 | |||||||||
1,500,000 |
NYC IDA (Terminal One Group Assoc.)1
|
5.500 | 01/01/2021 | 1,524,870 | ||||||||||||
380,000 |
NYC IDA (The Bank Street College)1
|
5.250 | 12/01/2021 | 377,800 | ||||||||||||
1,000,000 |
NYC IDA (The Bank Street College)1
|
5.250 | 12/01/2030 | 911,290 | ||||||||||||
8,800,000 |
NYC IDA (The Child School)1
|
7.550 | 06/01/2033 | 8,609,480 | ||||||||||||
75,000 |
NYC IDA (Therapy & Learning Center)1
|
7.500 | 10/01/2011 | 75,798 | ||||||||||||
3,735,000 |
NYC IDA (Therapy & Learning Center)1
|
8.250 | 10/01/2031 | 3,772,163 | ||||||||||||
8,845,000 |
NYC IDA (Tides Two Rivers Foundation)1
|
5.650 | 12/01/2039 | 6,618,094 | ||||||||||||
32,040,000 |
NYC IDA (Unicef)1
|
5.300 | 11/01/2038 | 23,558,692 | ||||||||||||
9,550,000 |
NYC IDA (Urban Health Plan)1
|
7.050 | 09/15/2026 | 8,977,000 | ||||||||||||
3,640,000 |
NYC IDA (Urban Resource Institute)1
|
7.375 | 11/01/2033 | 3,297,076 | ||||||||||||
1,150,000 |
NYC IDA (Utleys)1
|
7.375 | 11/01/2023 | 1,088,291 | ||||||||||||
3,800,000 |
NYC IDA (Vaughn College Aeronautics)1
|
5.000 | 12/01/2021 | 3,422,394 | ||||||||||||
1,330,000 |
NYC IDA (Vaughn College Aeronautics)1
|
5.000 | 12/01/2028 | 1,108,236 | ||||||||||||
3,235,000 |
NYC IDA (Vaughn College Aeronautics)1
|
5.000 | 12/01/2028 | 2,695,596 | ||||||||||||
900,000 |
NYC IDA (Vaughn College Aeronautics)1
|
5.000 | 12/01/2031 | 734,355 | ||||||||||||
1,800,000 |
NYC IDA (Vaughn College Aeronautics)1
|
5.250 | 12/01/2036 | 1,471,482 | ||||||||||||
12,200,000 |
NYC IDA (Visy Paper)1
|
7.800 | 01/01/2016 | 12,206,466 | ||||||||||||
70,500,000 |
NYC IDA (Visy Paper)1
|
7.950 | 01/01/2028 | 68,068,455 | ||||||||||||
1,930,000 |
NYC IDA (Vocational Instruction)
|
7.750 | 8 | 02/01/2033 | 1,113,031 | |||||||||||
100,000 |
NYC IDA (W & W Jewelers)1
|
7.250 | 02/01/2011 | 99,987 | ||||||||||||
1,555,000 |
NYC IDA (W & W Jewelers)1
|
8.250 | 02/01/2021 | 1,550,599 | ||||||||||||
5,930,000 |
NYC IDA (Weizmann Institute)1
|
5.900 | 11/01/2034 | 5,282,266 | ||||||||||||
2,900,000 |
NYC IDA (Weizmann Institute)1
|
5.900 | 11/01/2034 | 2,583,233 | ||||||||||||
2,795,000 |
NYC IDA (Westchester Square Medical Center)
|
8.000 | 12/31/2011 | 2,795,000 | ||||||||||||
6,160,000 |
NYC IDA (Westchester Square Medical Center)
|
8.375 | 11/01/2015 | 5,452,154 | ||||||||||||
1,360,000 |
NYC IDA (World Casing Corp.)1
|
6.700 | 11/01/2019 | 1,255,158 | ||||||||||||
41,105,000 |
NYC IDA (Yankee Stadium)1
|
5.000 | 03/01/2046 | 36,719,097 | ||||||||||||
16,500,000 |
NYC IDA (Yankee Stadium)1
|
7.000 | 03/01/2049 | 18,176,400 | ||||||||||||
24,270,000 |
NYC IDA (Yeled Yalda Early Childhood)1
|
5.725 | 11/01/2037 | 18,505,390 | ||||||||||||
50,000 |
NYC Municipal Water Finance Authority1
|
5.000 | 06/15/2029 | 50,016 | ||||||||||||
27,500,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2031 | 27,619,075 | ||||||||||||
31,400,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2034 | 31,399,372 | ||||||||||||
22,000,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2038 | 21,819,107 | ||||||||||||
29,000,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2039 | 28,761,550 | ||||||||||||
18,000,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2039 | 17,850,960 | ||||||||||||
31,500,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2039 | 31,239,180 | ||||||||||||
19,740,000 |
NYC Municipal Water Finance Authority4
|
5.000 | 06/15/2039 | 19,576,553 | ||||||||||||
30,000 |
NYC Municipal Water Finance Authority1
|
5.125 | 06/15/2032 | 30,026 | ||||||||||||
30,000 |
NYC Municipal Water Finance Authority1
|
5.125 | 06/15/2033 | 30,068 | ||||||||||||
25,000 |
NYC Municipal Water Finance Authority1
|
5.125 | 06/15/2033 | 25,057 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 145,000 |
NYC Trust for Cultural Resources (Museum of American Folk Art)
|
6.125 | % | 07/01/2030 | $ | 83,347 | |||||||||
14,360,000 |
NYS DA (Buena Vida Nursing Home)1
|
5.250 | 07/01/2028 | 14,362,010 | ||||||||||||
2,250,000 |
NYS DA (CHSLI/GSHMC/MMC/SCHRC Obligated Group)1
|
5.000 | 07/01/2027 | 2,154,893 | ||||||||||||
1,250,000 |
NYS DA (D'Youville College)1
|
5.250 | 07/01/2025 | 1,209,363 | ||||||||||||
15,000 |
NYS DA (Dept. of Mental Hygiene)1
|
5.250 | 08/15/2031 | 14,999 | ||||||||||||
20,000 |
NYS DA (Ellis Hospital)1
|
5.600 | 08/01/2025 | 20,011 | ||||||||||||
5,935,000 |
NYS DA (Interagency Council)1
|
7.000 | 07/01/2035 | 5,643,354 | ||||||||||||
3,255,000 |
NYS DA (L.I. University)1
|
5.125 | 09/01/2023 | 3,182,153 | ||||||||||||
1,335,000 |
NYS DA (L.I. University)1
|
5.250 | 09/01/2028 | 1,265,700 | ||||||||||||
3,260,000 |
NYS DA (Manhattan College)1
|
5.300 | 07/01/2037 | 2,923,372 | ||||||||||||
18,230,000 |
NYS DA (Memorial Sloan-Kettering)4
|
5.000 | 07/01/2035 | 17,728,510 | ||||||||||||
4,125,000 |
NYS DA (Miriam Osborn Memorial Home Assoc.)1
|
6.375 | 07/01/2029 | 4,035,281 | ||||||||||||
6,860,000 |
NYS DA (Miriam Osborn Memorial Home Assoc.)1
|
6.875 | 07/01/2025 | 6,906,854 | ||||||||||||
2,500,000 |
NYS DA (Municipal Health Facilities)1
|
5.000 | 01/15/2028 | 2,468,900 | ||||||||||||
2,265,000 |
NYS DA (New York Methodist Hospital)1
|
5.250 | 07/01/2033 | 2,085,544 | ||||||||||||
2,000,000 |
NYS DA (Norwegian Christian Home & Health Center)1
|
6.100 | 08/01/2041 | 2,071,460 | ||||||||||||
20,580,000 |
NYS DA (NYU Hospitals Center)1
|
5.000 | 07/01/2026 | 19,567,464 | ||||||||||||
40,320,000 |
NYS DA (NYU Hospitals Center)1
|
5.000 | 07/01/2036 | 36,052,934 | ||||||||||||
2,000,000 |
NYS DA (NYU Hospitals Center)1
|
5.625 | 07/01/2037 | 1,958,220 | ||||||||||||
2,925,000 |
NYS DA (Ozanam Hall of Queens Nursing Home)1
|
5.000 | 11/01/2026 | 2,697,318 | ||||||||||||
6,035,000 |
NYS DA (Providence Rest)1
|
5.000 | 07/01/2035 | 3,778,514 | ||||||||||||
2,700,000 |
NYS DA (Providence Rest)1
|
5.125 | 07/01/2030 | 1,841,346 | ||||||||||||
3,100,000 |
NYS DA (Providence Rest)1
|
5.250 | 07/01/2025 | 2,332,316 | ||||||||||||
6,260,000 |
NYS DA (Rochester General Hospital)1
|
5.000 | 12/01/2025 | 5,788,998 | ||||||||||||
17,660,000 |
NYS DA (Rochester General Hospital)1
|
5.000 | 12/01/2035 | 15,066,806 | ||||||||||||
1,750,000 |
NYS DA (School District Bond Financing Program), Series C1
|
7.250 | 10/01/2028 | 2,006,288 | ||||||||||||
2,645,000 |
NYS DA (School District Bond Financing Program), Series C1
|
7.375 | 10/01/2033 | 3,015,062 | ||||||||||||
1,525,000 |
NYS DA (School District Bond Financing Program), Series C1
|
7.500 | 04/01/2039 | 1,745,180 | ||||||||||||
50,000 |
NYS DA (School Districts Financing Program), Series B1
|
6.000 | 10/01/2022 | 53,171 | ||||||||||||
25,000 |
NYS DA (School Districts Financing Program), Series B1
|
6.000 | 10/01/2029 | 26,324 | ||||||||||||
1,075,000 |
NYS DA (SFH/GSHMC/MMC/SCHRC Obligated Group)1
|
5.100 | 07/01/2034 | 1,006,566 | ||||||||||||
5,770,000 |
NYS DA (Smithtown Special Library District)1
|
6.000 | 07/01/2028 | 6,123,528 | ||||||||||||
1,055,000 |
NYS DA (St. Catherine of Siena Medical Center)1
|
6.000 | 07/01/2030 | 1,057,827 | ||||||||||||
3,500,000 |
NYS DA (St. Joseph's College)1
|
5.250 | 07/01/2035 | 3,297,805 | ||||||||||||
50,000,000 |
NYS DA (St. Mary's Hospital for Children)1,9
|
7.875 | 11/15/2041 | 47,843,000 | ||||||||||||
1,505,000 |
NYS DA (St. Thomas Aquinas College)1
|
5.250 | 07/01/2028 | 1,403,789 | ||||||||||||
5,240,000 |
NYS DA (The Bronx-Lebanon Hospital Center)1
|
6.250 | 02/15/2035 | 5,511,746 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 11,695,000 |
NYS DA (Vassar College)4
|
5.000 | % | 07/01/2046 | $ | 11,494,772 | |||||||||
2,365,000 |
NYS EFC (NYS Water Services)1
|
6.000 | 01/15/2031 | 2,379,852 | ||||||||||||
65,000 |
NYS EFC (United Waterworks)1
|
5.150 | 03/01/2034 | 57,132 | ||||||||||||
25,000 |
NYS ERDA (Brooklyn Union Gas Company)1
|
4.700 | 02/01/2024 | 24,227 | ||||||||||||
15,000 |
NYS ERDA (Brooklyn Union Gas Company)1
|
5.500 | 01/01/2021 | 15,047 | ||||||||||||
350,000 |
NYS ERDA (LILCO)1
|
5.300 | 10/01/2024 | 350,004 | ||||||||||||
100,000 |
NYS ERDA (LILCO)1
|
5.300 | 08/01/2025 | 99,543 | ||||||||||||
75,000 |
NYS ERDA (LILCO)1
|
5.300 | 08/01/2025 | 74,657 | ||||||||||||
400,000 |
NYS ERDA (NYS Electric & Gas Corp.)1
|
5.350 | 12/01/2028 | 372,916 | ||||||||||||
70,000 |
NYS ERDA (Rochester Gas & Electric)1
|
5.375 | 05/15/2032 | 66,205 | ||||||||||||
14,500,000 |
NYS ERDA (Rochester Gas & Electric)1
|
5.950 | 09/01/2033 | 14,060,360 | ||||||||||||
16,300,000 |
NYS ERDA BUG RIBS
|
11.550 | 7 | 07/01/2026 | 16,338,794 | |||||||||||
7,000,000 |
NYS ERDA BUG RIBS
|
11.671 | 7 | 04/01/2020 | 7,254,800 | |||||||||||
2,000,000 |
NYS HFA (Affordable Hsg.)1
|
5.000 | 11/01/2042 | 1,875,980 | ||||||||||||
2,365,000 |
NYS HFA (Affordable Hsg.)1
|
5.250 | 11/01/2038 | 2,220,286 | ||||||||||||
10,220,000 |
NYS HFA (Affordable Hsg.)4
|
5.450 | 11/01/2045 | 9,803,946 | ||||||||||||
2,095,000 |
NYS HFA (Children's Rescue)1
|
7.625 | 05/01/2018 | 2,096,383 | ||||||||||||
1,620,000 |
NYS HFA (Crotona Estates Apartments)1
|
4.950 | 08/15/2038 | 1,489,574 | ||||||||||||
960,000 |
NYS HFA (Friendship)1
|
5.100 | 08/15/2041 | 888,701 | ||||||||||||
1,360,000 |
NYS HFA (Golden Age Apartments)1
|
5.000 | 02/15/2037 | 1,255,634 | ||||||||||||
1,645,000 |
NYS HFA (Kensico Terrace Apartments)1
|
4.900 | 02/15/2038 | 1,477,654 | ||||||||||||
5,000 |
NYS HFA (Meadow Manor)1
|
7.750 | 11/01/2019 | 5,086 | ||||||||||||
3,835,000 |
NYS HFA (Multifamily Hsg.)1
|
4.850 | 02/15/2038 | 3,470,100 | ||||||||||||
2,860,000 |
NYS HFA (Multifamily Hsg.)1
|
5.350 | 08/15/2031 | 2,814,211 | ||||||||||||
2,080,000 |
NYS HFA (Multifamily Hsg.)1
|
5.375 | 02/15/2035 | 2,026,398 | ||||||||||||
3,290,000 |
NYS HFA (Multifamily Hsg.)1
|
5.450 | 08/15/2032 | 3,269,109 | ||||||||||||
2,075,000 |
NYS HFA (Multifamily Hsg.)1
|
5.500 | 08/15/2030 | 2,074,938 | ||||||||||||
1,050,000 |
NYS HFA (Multifamily Hsg.)1
|
5.650 | 08/15/2030 | 1,051,134 | ||||||||||||
3,200,000 |
NYS HFA (Multifamily Hsg.)1
|
5.650 | 08/15/2030 | 3,203,456 | ||||||||||||
1,000,000 |
NYS HFA (Multifamily Hsg.)1
|
5.650 | 08/15/2031 | 1,000,960 | ||||||||||||
1,710,000 |
NYS HFA (Multifamily Hsg.)1
|
5.650 | 02/15/2034 | 1,709,915 | ||||||||||||
2,120,000 |
NYS HFA (Multifamily Hsg.)1
|
5.700 | 08/15/2033 | 2,121,632 | ||||||||||||
665,000 |
NYS HFA (Multifamily Hsg.)1
|
6.250 | 02/15/2031 | 665,293 | ||||||||||||
1,255,000 |
NYS HFA (Multifamily Hsg.)1
|
6.400 | 11/15/2027 | 1,256,017 | ||||||||||||
3,855,000 |
NYS HFA (Multifamily Hsg.)1
|
6.750 | 11/15/2036 | 3,848,022 | ||||||||||||
365,000 |
NYS HFA (Nonprofit Hsg.)
|
8.400 | 11/01/2011 | 366,799 | ||||||||||||
395,000 |
NYS HFA (Nonprofit Hsg.)
|
8.400 | 11/01/2012 | 396,825 | ||||||||||||
425,000 |
NYS HFA (Nonprofit Hsg.)
|
8.400 | 11/01/2013 | 426,802 | ||||||||||||
510,000 |
NYS HFA (Nonprofit Hsg.)1
|
8.400 | 11/01/2014 | 512,071 | ||||||||||||
540,000 |
NYS HFA (Nonprofit Hsg.)1
|
8.400 | 11/01/2015 | 542,074 | ||||||||||||
580,000 |
NYS HFA (Nonprofit Hsg.)1
|
8.400 | 11/01/2016 | 582,053 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 640,000 |
NYS HFA (Nonprofit Hsg.)1
|
8.400 | % | 11/01/2017 | $ | 642,067 | |||||||||
685,000 |
NYS HFA (Nonprofit Hsg.)1
|
8.400 | 11/01/2018 | 687,089 | ||||||||||||
65,000 |
NYS LGSC (SCSB)
|
7.250 | 12/15/2011 | 65,773 | ||||||||||||
715,000 |
NYS LGSC (SCSB)
|
7.375 | 12/15/2016 | 717,145 | ||||||||||||
980,000 |
NYS LGSC (SCSB)
|
7.750 | 12/15/2021 | 1,000,727 | ||||||||||||
185,000 |
NYS Medcare (Hospital & Nursing Home)1
|
7.400 | 11/01/2016 | 185,855 | ||||||||||||
110,000 |
NYS Medcare (Hospital & Nursing Home)1
|
9.375 | 11/01/2016 | 110,760 | ||||||||||||
15,000 |
NYS Medcare (M.G. Nursing Home)
|
6.200 | 02/15/2015 | 15,054 | ||||||||||||
400,000 |
NYS Power Authority1
|
5.250 | 11/15/2040 | 400,012 | ||||||||||||
25,000 |
NYS UDC (Subordinated Lien)1
|
5.500 | 07/01/2016 | 25,090 | ||||||||||||
830,000 |
Oneida County, NY IDA (Civic Facilities-Mohawk Valley)1
|
5.000 | 09/15/2035 | 624,334 | ||||||||||||
450,000 |
Oneida County, NY IDA (Mohawk Valley Handicapped Services)1
|
5.300 | 03/15/2019 | 407,903 | ||||||||||||
840,000 |
Oneida County, NY IDA (Mohawk Valley Handicapped Services)1
|
5.350 | 03/15/2029 | 667,766 | ||||||||||||
4,355,000 |
Onondaga County, NY IDA (Air Cargo)1
|
6.125 | 01/01/2032 | 3,856,265 | ||||||||||||
2,000,000 |
Onondaga County, NY IDA (Air Cargo)1
|
7.250 | 01/01/2032 | 1,833,480 | ||||||||||||
965,000 |
Onondaga County, NY IDA (Community General Hospital)1
|
5.500 | 11/01/2018 | 859,468 | ||||||||||||
4,765,000 |
Onondaga County, NY IDA (Community General Hospital)1
|
6.625 | 01/01/2018 | 4,380,703 | ||||||||||||
1,185,000 |
Onondaga County, NY IDA (Free Library)1
|
5.125 | 03/01/2030 | 1,127,279 | ||||||||||||
1,115,000 |
Onondaga County, NY IDA (Free Library)1
|
5.125 | 03/01/2037 | 1,005,908 | ||||||||||||
500,000 |
Onondaga County, NY IDA Sewage Waste Facilities (Anheuser-Busch Companies)1
|
6.250 | 12/01/2034 | 500,160 | ||||||||||||
42,834,598 |
Onondaga County, NY Res Rec1
|
0.000 | 10 | 05/01/2022 | 30,486,668 | |||||||||||
37,870,000 |
Onondaga County, NY Res Rec1
|
5.000 | 05/01/2015 | 34,929,395 | ||||||||||||
2,000,000 |
Onondaga, NY Civic Devel Corp. (Le Moyne College)1
|
5.375 | 07/01/2040 | 1,943,820 | ||||||||||||
2,500,000 |
Orange County, NY IDA (Arden Hill Life Care Center)1
|
7.000 | 08/01/2021 | 2,316,800 | ||||||||||||
2,325,000 |
Orange County, NY IDA (Arden Hill Life Care Center)1
|
7.000 | 08/01/2031 | 2,020,704 | ||||||||||||
2,090,000 |
Orange County, NY IDA (Arden Hill Life Care Center)1
|
7.000 | 08/01/2031 | 1,816,461 | ||||||||||||
2,045,000 |
Orange County, NY IDA (Glen Arden)1
|
5.625 | 01/01/2018 | 1,800,377 | ||||||||||||
5,590,000 |
Orange County, NY IDA (Glen Arden)1
|
5.700 | 01/01/2028 | 4,337,057 | ||||||||||||
70,000 |
Orange County, NY IDA (Orange Mental Retardation Properties)
|
7.800 | 07/01/2011 | 70,365 | ||||||||||||
1,715,000 |
Orange County, NY IDA (St. Luke's Cornwall Hospital Obligated Group)1
|
5.375 | 12/01/2021 | 1,704,436 | ||||||||||||
6,330,000 |
Orange County, NY IDA (St. Luke's Cornwall Hospital Obligated Group)1
|
5.375 | 12/01/2026 | 5,848,793 | ||||||||||||
2,235,000 |
Orange County, NY IDA (St. Luke's Cornwall Hospital Obligated Group)1
|
5.375 | 12/01/2026 | 2,065,095 | ||||||||||||
11,665,000 |
Peekskill, NY IDA (Drum Hill)1
|
6.375 | 10/01/2028 | 8,965,252 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 42,570,000 |
Port Authority NY/NJ (Continental Airlines)
|
9.125 | % | 12/01/2015 | $ | 43,123,410 | |||||||||
16,420,000 |
Port Authority NY/NJ (JFK International Air Terminal)1
|
5.750 | 12/01/2022 | 16,350,543 | ||||||||||||
31,720,000 |
Port Authority NY/NJ (JFK International Air Terminal)
|
5.750 | 12/01/2025 | 31,716,828 | ||||||||||||
18,625,000 |
Port Authority NY/NJ (JFK International Air Terminal)1
|
5.900 | 12/01/2017 | 18,722,595 | ||||||||||||
4,000,000 |
Port Authority NY/NJ (JFK International Air Terminal)1
|
6.000 | 12/01/2036 | 3,973,760 | ||||||||||||
2,000,000 |
Port Authority NY/NJ (JFK International Air Terminal)1
|
6.500 | 12/01/2028 | 2,075,960 | ||||||||||||
2,110,000 |
Port Authority NY/NJ (KIAC)
|
6.750 | 10/01/2011 | 2,103,776 | ||||||||||||
50,300,000 |
Port Authority NY/NJ (KIAC)1
|
6.750 | 10/01/2019 | 47,807,635 | ||||||||||||
35,000 |
Port Authority NY/NJ, 122nd Series1
|
5.000 | 07/15/2026 | 34,424 | ||||||||||||
240,000 |
Port Authority NY/NJ, 126th Series1
|
5.125 | 11/15/2030 | 238,212 | ||||||||||||
50,000 |
Port Authority NY/NJ, 127th Series1
|
5.200 | 12/15/2027 | 50,119 | ||||||||||||
20,000,000 |
Port Authority NY/NJ, 135th Series4
|
5.000 | 03/15/2039 | 19,804,302 | ||||||||||||
33,025,000 |
Port Authority NY/NJ, 136th Series4
|
5.125 | 05/01/2034 | 32,579,884 | ||||||||||||
19,175,000 |
Port Authority NY/NJ, 136th Series4
|
5.375 | 11/01/2028 | 19,366,624 | ||||||||||||
22,855,000 |
Port Authority NY/NJ, 136th Series4
|
5.500 | 11/01/2029 | 23,153,094 | ||||||||||||
26,000,000 |
Port Authority NY/NJ, 138th Series4
|
4.750 | 12/01/2034 | 24,222,900 | ||||||||||||
27,255,000 |
Port Authority NY/NJ, 141st Series4
|
4.500 | 09/01/2029 | 24,762,522 | ||||||||||||
47,910,000 |
Port Authority NY/NJ, 143rd Series4
|
5.000 | 10/01/2030 | 46,818,610 | ||||||||||||
12,840,000 |
Port Authority NY/NJ, 146th Series4
|
4.500 | 12/01/2034 | 11,542,011 | ||||||||||||
10,000 |
Port Authority NY/NJ, 146th Series1
|
4.500 | 12/01/2034 | 8,978 | ||||||||||||
26,100,000 |
Port Authority NY/NJ, 146th Series4
|
4.750 | 12/01/2027 | 24,537,915 | ||||||||||||
10,000 |
Port Authority NY/NJ, 146th Series1
|
4.750 | 12/01/2027 | 9,396 | ||||||||||||
13,005,000 |
Port Authority NY/NJ, 147th Series4
|
4.750 | 10/15/2028 | 12,025,011 | ||||||||||||
17,790,000 |
Port Authority NY/NJ, 147th Series4
|
5.000 | 10/15/2027 | 17,191,146 | ||||||||||||
20,000,000 |
Port Authority NY/NJ, 147th Series4
|
5.000 | 10/15/2032 | 18,897,085 | ||||||||||||
82,000,000 |
Port Authority NY/NJ, 151st Series4
|
5.750 | 03/15/2035 | 84,179,272 | ||||||||||||
15,000,000 |
Port Authority NY/NJ, 151st Series4
|
6.000 | 09/15/2028 | 15,639,000 | ||||||||||||
101,940,000 |
Port Authority NY/NJ, 152nd Series4
|
5.250 | 11/01/2035 | 100,059,207 | ||||||||||||
13,715,000 |
Port Authority NY/NJ, 152nd Series4
|
5.250 | 05/01/2038 | 13,412,283 | ||||||||||||
22,500,000 |
Port Authority NY/NJ, 152nd Series4
|
5.750 | 11/01/2030 | 23,341,950 | ||||||||||||
50,660,000 |
Port Authority NY/NJ, 37th Series4
|
5.250 | 07/15/2034 | 50,718,766 | ||||||||||||
2,755,000 |
Poughkeepsie, NY IDA (Eastman & Bixby Redevel. Corp.)1
|
6.000 | 08/01/2032 | 2,755,193 | ||||||||||||
1,500,000 |
Rensselaer County, NY IDA (Franciscan Heights)1
|
5.375 | 12/01/2036 | 1,389,465 | ||||||||||||
6,385,000 |
Rensselaer County, NY Tobacco Asset Securitization Corp.1
|
5.625 | 06/01/2035 | 5,302,806 | ||||||||||||
7,300,000 |
Rensselaer County, NY Tobacco Asset Securitization Corp.1
|
5.750 | 06/01/2043 | 6,036,370 | ||||||||||||
2,020,000 |
Rensselaer County, NY Water Service Sewer Authority1
|
5.350 | 09/01/2047 | 1,953,764 | ||||||||||||
4,820,000 |
Rensselaer, NY City School District COP1
|
5.000 | 06/01/2036 | 4,125,486 | ||||||||||||
1,330,000 |
Riverhead, NY IDA (Michael Reilly Design)1
|
8.875 | 08/01/2021 | 1,340,254 | ||||||||||||
6,790,000 |
Rochester, NY Museum & Science Center1
|
6.125 | 12/01/2015 | 6,565,319 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 1,195,000 |
Rockland County, NY IDA (Crystal Run Village/Rockland County Assoc. for the Learning Disabled Obligated Group)1
|
4.900 | % | 07/01/2021 | $ | 990,105 | |||||||||
9,225,000 |
Rockland County, NY Tobacco Asset Securitization Corp.1
|
5.625 | 08/15/2035 | 7,656,197 | ||||||||||||
10,095,000 |
Rockland County, NY Tobacco Asset Securitization Corp.1
|
5.750 | 08/15/2043 | 8,344,426 | ||||||||||||
30,000,000 |
Rockland County, NY Tobacco Asset Securitization Corp.
|
5.875 | 3 | 08/15/2045 | 932,700 | |||||||||||
486,000,000 |
Rockland County, NY Tobacco Asset Securitization Corp.
|
7.668 | 3 | 08/15/2060 | 1,875,960 | |||||||||||
20,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2015 | 21,722 | ||||||||||||
20,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2016 | 21,783 | ||||||||||||
25,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2017 | 26,815 | ||||||||||||
25,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2018 | 26,458 | ||||||||||||
25,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2019 | 25,951 | ||||||||||||
25,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2020 | 25,686 | ||||||||||||
30,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2021 | 30,616 | ||||||||||||
30,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2022 | 30,404 | ||||||||||||
30,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2023 | 30,233 | ||||||||||||
30,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2024 | 30,112 | ||||||||||||
35,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2025 | 34,823 | ||||||||||||
35,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2026 | 34,420 | ||||||||||||
40,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2027 | 38,972 | ||||||||||||
40,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2028 | 38,416 | ||||||||||||
40,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2029 | 38,056 | ||||||||||||
45,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2030 | 42,394 | ||||||||||||
45,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2031 | 42,168 | ||||||||||||
50,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2032 | 46,543 | ||||||||||||
50,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2033 | 46,286 | ||||||||||||
55,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2034 | 50,565 | ||||||||||||
60,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2035 | 54,706 | ||||||||||||
60,000 |
Sanford Town, NY GO1
|
5.250 | 04/15/2036 | 54,466 | ||||||||||||
3,000,000 |
Saratoga County, NY IDA (Saratoga Hospital/Saratoga Care/Benedict Community Health Center)1
|
5.125 | 12/01/2033 | 2,702,790 | ||||||||||||
2,650,000 |
Seneca County, NY IDA (New York Chiropractic College)1
|
5.000 | 10/01/2027 | 2,472,954 | ||||||||||||
22,885,000 |
SONYMA, Series 1064
|
5.250 | 04/01/2034 | 21,507,951 | ||||||||||||
30,225,000 |
SONYMA, Series 1094
|
4.950 | 10/01/2034 | 28,256,990 | ||||||||||||
9,510,000 |
SONYMA, Series 1334
|
5.050 | 10/01/2026 | 9,257,016 | ||||||||||||
23,000,000 |
SONYMA, Series 1374
|
4.700 | 10/01/2031 | 21,096,843 | ||||||||||||
21,155,000 |
SONYMA, Series 1404
|
4.750 | 10/01/2037 | 18,278,332 | ||||||||||||
11,335,000 |
SONYMA, Series 1434
|
4.900 | 10/01/2037 | 10,224,516 | ||||||||||||
5,045,000 |
SONYMA, Series 1454
|
5.125 | 10/01/2037 | 4,740,285 | ||||||||||||
1,955,000 |
SONYMA, Series 1484
|
5.150 | 10/01/2027 | 1,931,152 | ||||||||||||
6,370,000 |
SONYMA, Series 1484
|
5.200 | 10/01/2032 | 6,167,849 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 25,000 |
SONYMA, Series 671
|
5.700 | % | 10/01/2017 | $ | 25,028 | |||||||||
890,000 |
SONYMA, Series 691
|
5.500 | 10/01/2028 | 890,036 | ||||||||||||
26,645,000 |
SONYMA, Series 714
|
5.400 | 04/01/2029 | 26,642,599 | ||||||||||||
30,000 |
SONYMA, Series 711
|
5.400 | 04/01/2029 | 29,997 | ||||||||||||
25,000 |
SONYMA, Series 731
|
5.250 | 10/01/2017 | 25,019 | ||||||||||||
330,000 |
SONYMA, Series 73
|
5.300 | 10/01/2028 | 329,333 | ||||||||||||
23,875,000 |
SONYMA, Series 73-A4
|
5.300 | 10/01/2028 | 23,826,732 | ||||||||||||
6,585,000 |
SONYMA, Series 771
|
5.150 | 04/01/2029 | 6,469,828 | ||||||||||||
9,535,000 |
SONYMA, Series 794
|
5.300 | 04/01/2029 | 9,446,043 | ||||||||||||
345,000 |
SONYMA, Series 821
|
5.650 | 04/01/2030 | 345,031 | ||||||||||||
4,360,000 |
St. Lawrence County, NY IDA (Curran Renewable Energy)1
|
7.250 | 12/01/2029 | 3,396,178 | ||||||||||||
2,210,000 |
St. Lawrence County, NY IDA (Edwards John Noble Hospital)1
|
5.250 | 10/01/2020 | 2,123,412 | ||||||||||||
5,440,000 |
St. Lawrence County, NY IDA (Edwards John Noble Hospital)1
|
6.250 | 10/01/2040 | 5,001,318 | ||||||||||||
4,280,000 |
Suffolk County, NY Economic Devel. Corp., Series A1
|
7.375 | 12/01/2040 | 4,168,934 | ||||||||||||
910,000 |
Suffolk County, NY IDA (ACLD)1
|
6.000 | 12/01/2019 | 842,878 | ||||||||||||
380,000 |
Suffolk County, NY IDA (ALIA-ACDS)1
|
7.125 | 06/01/2017 | 381,041 | ||||||||||||
2,035,000 |
Suffolk County, NY IDA (ALIA-ACLD)1
|
5.950 | 10/01/2021 | 1,835,102 | ||||||||||||
175,000 |
Suffolk County, NY IDA (ALIA-ACLD)1
|
6.375 | 06/01/2014 | 173,096 | ||||||||||||
510,000 |
Suffolk County, NY IDA (ALIA-ACLD)1
|
6.500 | 03/01/2018 | 491,018 | ||||||||||||
435,000 |
Suffolk County, NY IDA (ALIA-ACLD)1
|
7.500 | 09/01/2015 | 440,107 | ||||||||||||
150,000 |
Suffolk County, NY IDA (ALIA-ADD)1
|
6.950 | 12/01/2014 | 150,858 | ||||||||||||
345,000 |
Suffolk County, NY IDA (ALIA-ADD)1
|
7.125 | 06/01/2017 | 345,945 | ||||||||||||
175,000 |
Suffolk County, NY IDA (ALIA-ADD)1
|
7.500 | 09/01/2015 | 177,055 | ||||||||||||
845,000 |
Suffolk County, NY IDA (ALIA-Adelante)1
|
6.500 | 11/01/2037 | 715,876 | ||||||||||||
1,245,000 |
Suffolk County, NY IDA (ALIA-Civic Facility)1
|
5.950 | 11/01/2022 | 1,109,619 | ||||||||||||
2,700,000 |
Suffolk County, NY IDA (ALIA-DDI)1
|
5.950 | 10/01/2021 | 2,434,779 | ||||||||||||
655,000 |
Suffolk County, NY IDA (ALIA-DDI)1
|
6.375 | 06/01/2014 | 647,874 | ||||||||||||
100,000 |
Suffolk County, NY IDA (ALIA-DDI)1
|
7.500 | 09/01/2015 | 101,174 | ||||||||||||
780,000 |
Suffolk County, NY IDA (ALIA-FREE)1
|
5.950 | 10/01/2021 | 703,381 | ||||||||||||
390,000 |
Suffolk County, NY IDA (ALIA-FREE)1
|
6.375 | 06/01/2014 | 385,757 | ||||||||||||
905,000 |
Suffolk County, NY IDA (ALIA-FREE)1
|
6.950 | 12/01/2014 | 910,177 | ||||||||||||
2,600,000 |
Suffolk County, NY IDA (ALIA-FREE)1
|
7.125 | 06/01/2017 | 2,607,124 | ||||||||||||
555,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
5.950 | 10/01/2021 | 500,482 | ||||||||||||
710,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
5.950 | 11/01/2022 | 632,795 | ||||||||||||
375,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
6.000 | 10/01/2031 | 310,500 | ||||||||||||
310,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
6.375 | 06/01/2014 | 306,627 | ||||||||||||
310,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
6.950 | 12/01/2014 | 311,773 | ||||||||||||
800,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
7.125 | 06/01/2017 | 802,192 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 1,945,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
7.250 | % | 12/01/2033 | $ | 1,842,440 | |||||||||
125,000 |
Suffolk County, NY IDA (ALIA-IGHL)1
|
7.500 | 09/01/2015 | 126,468 | ||||||||||||
1,970,000 |
Suffolk County, NY IDA (ALIA-LIHIA)1
|
5.950 | 11/01/2022 | 1,755,782 | ||||||||||||
185,000 |
Suffolk County, NY IDA (ALIA-LIHIA)1
|
6.375 | 06/01/2014 | 182,987 | ||||||||||||
365,000 |
Suffolk County, NY IDA (ALIA-LIHIA)1
|
6.950 | 12/01/2014 | 367,088 | ||||||||||||
120,000 |
Suffolk County, NY IDA (ALIA-LIHIA)1
|
7.500 | 09/01/2015 | 121,409 | ||||||||||||
310,000 |
Suffolk County, NY IDA (ALIA-MCH)1
|
6.375 | 06/01/2014 | 306,627 | ||||||||||||
810,000 |
Suffolk County, NY IDA (ALIA-MCH)1
|
6.950 | 12/01/2014 | 814,633 | ||||||||||||
975,000 |
Suffolk County, NY IDA (ALIA-MCH)1
|
7.125 | 06/01/2017 | 977,672 | ||||||||||||
790,000 |
Suffolk County, NY IDA (ALIA-NYS ARC)1
|
5.950 | 11/01/2022 | 704,095 | ||||||||||||
485,000 |
Suffolk County, NY IDA (ALIA-NYS ARC)1
|
7.500 | 09/01/2015 | 490,694 | ||||||||||||
240,000 |
Suffolk County, NY IDA (ALIA-Pederson-Krag Center)1
|
8.375 | 06/01/2016 | 246,170 | ||||||||||||
360,000 |
Suffolk County, NY IDA (ALIA-SMCFS)1
|
7.500 | 09/01/2015 | 364,226 | ||||||||||||
390,000 |
Suffolk County, NY IDA (ALIA-Suffolk Hostels)1
|
7.500 | 09/01/2015 | 394,579 | ||||||||||||
1,870,000 |
Suffolk County, NY IDA (ALIA-UCPAGS)1
|
5.950 | 10/01/2021 | 1,686,310 | ||||||||||||
130,000 |
Suffolk County, NY IDA (ALIA-UCPAGS)1
|
6.375 | 06/01/2014 | 128,586 | ||||||||||||
540,000 |
Suffolk County, NY IDA (ALIA-UCPAGS)1
|
6.950 | 12/01/2014 | 543,089 | ||||||||||||
535,000 |
Suffolk County, NY IDA (ALIA-UCPAGS)1
|
7.000 | 06/01/2016 | 536,471 | ||||||||||||
275,000 |
Suffolk County, NY IDA (ALIA-UCPAGS)1
|
7.500 | 09/01/2015 | 278,229 | ||||||||||||
3,530,000 |
Suffolk County, NY IDA (ALIA-UVBH)1
|
6.500 | 11/01/2037 | 2,990,581 | ||||||||||||
765,000 |
Suffolk County, NY IDA (ALIA-WORCA)1
|
5.950 | 11/01/2022 | 681,814 | ||||||||||||
190,000 |
Suffolk County, NY IDA (ALIA-WORCA)1
|
6.950 | 12/01/2014 | 191,087 | ||||||||||||
610,000 |
Suffolk County, NY IDA (ALIA-WORCA)1
|
7.125 | 06/01/2017 | 611,671 | ||||||||||||
320,000 |
Suffolk County, NY IDA (ALIA-WORCA)1
|
7.500 | 09/01/2015 | 323,757 | ||||||||||||
575,000 |
Suffolk County, NY IDA (Catholic Charities)1
|
6.000 | 10/01/2020 | 527,666 | ||||||||||||
180,000 |
Suffolk County, NY IDA (DDI)1
|
6.000 | 12/01/2019 | 166,723 | ||||||||||||
500,000 |
Suffolk County, NY IDA (DDI)1
|
6.000 | 10/01/2020 | 458,840 | ||||||||||||
515,000 |
Suffolk County, NY IDA (DDI)1
|
6.000 | 10/01/2020 | 472,605 | ||||||||||||
4,830,000 |
Suffolk County, NY IDA (DDI)1
|
7.250 | 03/01/2024 | 4,768,804 | ||||||||||||
7,905,000 |
Suffolk County, NY IDA (DDI)1
|
8.750 | 03/01/2023 | 7,999,307 | ||||||||||||
5,000,000 |
Suffolk County, NY IDA (Dowling College)1
|
5.000 | 06/01/2036 | 3,499,150 | ||||||||||||
2,630,000 |
Suffolk County, NY IDA (Dowling College)1
|
6.700 | 12/01/2020 | 2,583,975 | ||||||||||||
2,900,000 |
Suffolk County, NY IDA (Easter Long Island Hospital Assoc.)1
|
5.375 | 01/01/2027 | 2,265,654 | ||||||||||||
3,745,000 |
Suffolk County, NY IDA (Easter Long Island Hospital Assoc.)1
|
5.500 | 01/01/2037 | 2,723,776 | ||||||||||||
1,310,000 |
Suffolk County, NY IDA (Family Residences)1
|
6.000 | 12/01/2019 | 1,213,374 | ||||||||||||
1,345,000 |
Suffolk County, NY IDA (Family Services League)1
|
5.000 | 11/01/2027 | 1,315,706 | ||||||||||||
930,000 |
Suffolk County, NY IDA (Family Services League)1
|
5.000 | 11/01/2034 | 849,592 | ||||||||||||
2,195,000 |
Suffolk County, NY IDA (Federation of Organizations)1
|
8.125 | 04/01/2030 | 2,231,349 | ||||||||||||
2,560,000 |
Suffolk County, NY IDA (Gurwin Jewish-Phase II)1
|
6.700 | 05/01/2039 | 2,360,269 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 3,185,000 |
Suffolk County, NY IDA (Huntington First Aid Squad)1
|
6.650 | % | 11/01/2017 | $ | 3,117,128 | |||||||||
210,000 |
Suffolk County, NY IDA (Independent Group Home Living)1
|
6.000 | 12/01/2019 | 194,510 | ||||||||||||
995,000 |
Suffolk County, NY IDA (Independent Group Home Living)1
|
6.000 | 10/01/2020 | 913,092 | ||||||||||||
3,275,000 |
Suffolk County, NY IDA (Innovative Realty I)1
|
6.000 | 11/01/2037 | 2,292,566 | ||||||||||||
8,600,000 |
Suffolk County, NY IDA (Jefferson's Ferry)1
|
5.000 | 11/01/2028 | 7,691,410 | ||||||||||||
32,720,000 |
Suffolk County, NY IDA (Keyspan-Port Jefferson Center)1
|
5.250 | 06/01/2027 | 30,533,977 | ||||||||||||
4,065,000 |
Suffolk County, NY IDA (L.I. Network Community Services)1
|
7.550 | 02/01/2034 | 3,965,042 | ||||||||||||
7,875,000 |
Suffolk County, NY IDA (Medford Hamlet Assisted Living)1
|
6.375 | 01/01/2039 | 5,970,904 | ||||||||||||
1,865,000 |
Suffolk County, NY IDA (Nassau-Suffolk Services for Autism)1
|
6.750 | 11/01/2036 | 1,652,502 | ||||||||||||
635,000 |
Suffolk County, NY IDA (Nassau-Suffolk Services for Autism)1
|
6.750 | 11/01/2036 | 562,648 | ||||||||||||
2,390,000 |
Suffolk County, NY IDA (New Interdisciplinary School)1
|
6.750 | 12/01/2019 | 2,329,868 | ||||||||||||
2,000,000 |
Suffolk County, NY IDA (New York Institute of Technology)1
|
5.000 | 03/01/2026 | 1,920,740 | ||||||||||||
4,505,000 |
Suffolk County, NY IDA (Nissequogue Cogeneration Partners)1
|
5.300 | 01/01/2013 | 4,384,176 | ||||||||||||
26,425,000 |
Suffolk County, NY IDA (Nissequogue Cogeneration Partners)1
|
5.500 | 01/01/2023 | 23,340,410 | ||||||||||||
850,000 |
Suffolk County, NY IDA (Peconic Landing Retirement Home)1
|
8.000 | 10/01/2020 | 868,479 | ||||||||||||
2,870,000 |
Suffolk County, NY IDA (Peconic Landing Retirement Home)1
|
8.000 | 10/01/2030 | 2,932,394 | ||||||||||||
4,800,000 |
Suffolk County, NY IDA (Pederson-Krager Center)1
|
7.200 | 02/01/2035 | 4,166,880 | ||||||||||||
2,545,000 |
Suffolk County, NY IDA (Pederson-Krager Center)1
|
8.125 | 04/01/2030 | 2,559,303 | ||||||||||||
930,000 |
Suffolk County, NY IDA (Special Needs Facilities Pooled Program)1
|
5.250 | 07/01/2022 | 781,925 | ||||||||||||
2,595,000 |
Suffolk County, NY IDA (St. Vincent De Paul in the Diocese of Rockville Center)1
|
8.000 | 04/01/2030 | 2,638,933 | ||||||||||||
475,000 |
Suffolk County, NY IDA (Suffolk Hotels)1
|
6.000 | 10/01/2020 | 435,898 | ||||||||||||
1,645,000 |
Suffolk County, NY IDA (United Cerebral Palsy Assoc.)1
|
6.000 | 12/01/2019 | 1,523,665 | ||||||||||||
3,255,000 |
Suffolk County, NY IDA (United Cerebral Palsy Assoc.)1
|
7.875 | 09/01/2041 | 3,156,406 | ||||||||||||
740,000 |
Suffolk County, NY IDA (WORCA)1
|
6.000 | 10/01/2020 | 679,083 | ||||||||||||
119,295,000 |
Suffolk, NY Tobacco Asset Securitization Corp.1
|
0.000 | 10 | 06/01/2044 | 88,162,584 | |||||||||||
12,095,000 |
Suffolk, NY Tobacco Asset Securitization Corp.1
|
5.375 | 06/01/2028 | 10,219,549 | ||||||||||||
29,915,000 |
Suffolk, NY Tobacco Asset Securitization Corp.1
|
6.000 | 06/01/2048 | 25,015,222 | ||||||||||||
287,265,000 |
Suffolk, NY Tobacco Asset Securitization Corp.
|
8.000 | 3 | 06/01/2048 | 6,750,728 | |||||||||||
3,181,000 |
Sullivan County, NY Community College COP
|
5.750 | 08/15/2025 | 2,538,215 | ||||||||||||
2,325,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
5.625 | 06/01/2013 | 2,253,925 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 12,600,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
5.875 | % | 07/01/2022 | $ | 10,079,622 | |||||||||
5,200,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
6.000 | 06/01/2019 | 4,698,096 | ||||||||||||
13,840,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
6.000 | 07/01/2037 | 10,680,328 | ||||||||||||
4,500,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
6.500 | 06/01/2025 | 3,939,435 | ||||||||||||
4,465,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
6.950 | 02/01/2035 | 3,718,541 | ||||||||||||
850,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
7.250 | 02/01/2012 | 845,334 | ||||||||||||
9,965,000 |
Sullivan County, NY IDA (Center for Discovery)1
|
7.750 | 02/01/2027 | 9,731,420 | ||||||||||||
6,775,000 |
Syracuse, NY Hsg. Authority (Loretto Sedgwick Heights Corp.)1
|
8.500 | 11/01/2031 | 6,017,284 | ||||||||||||
2,385,000 |
Syracuse, NY Hsg. Authority (Pavilion on James)1
|
7.500 | 11/01/2042 | 2,100,422 | ||||||||||||
189,865,000 |
Syracuse, NY IDA (Carousel Center)1
|
5.000 | 01/01/2036 | 143,308,203 | ||||||||||||
1,000,000 |
Syracuse, NY IDA (Crouse Irving Health Hospital)1
|
5.375 | 01/01/2023 | 894,580 | ||||||||||||
8,965,000 |
Syracuse, NY IDA (James Square)
|
7.197 | 3 | 08/01/2025 | 3,418,803 | |||||||||||
725,000 |
Syracuse, NY IDA (Jewish Home of Central New York)1
|
7.375 | 03/01/2021 | 708,978 | ||||||||||||
2,050,000 |
Syracuse, NY IDA (Jewish Home of Central New York)1
|
7.375 | 03/01/2031 | 1,876,693 | ||||||||||||
75,000 |
Taconic Hills, NY (Central School District at Craryville)1
|
5.000 | 06/15/2026 | 75,364 | ||||||||||||
45,000 |
Tompkins, NY Health Care Corp. (Reconstruction Home)1
|
10.800 | 02/01/2028 | 47,451 | ||||||||||||
12,150,000 |
Troy, NY Capital Resource Corp. (Rensselaer Polytechnic Institute)1
|
5.000 | 09/01/2030 | 11,808,342 | ||||||||||||
1,530,000 |
Ulster County, NY IDA (Brooklyn Bottling)1
|
8.600 | 06/30/2022 | 1,510,737 | ||||||||||||
185,000 |
Ulster County, NY Res Rec1
|
5.000 | 03/01/2020 | 188,017 | ||||||||||||
3,080,000 |
Ulster County, NY Tobacco Asset Securitization Corp.1
|
6.000 | 06/01/2040 | 2,620,649 | ||||||||||||
2,175,000 |
Ulster County, NY Tobacco Asset Securitization Corp.
|
6.250 | 06/01/2025 | 2,060,465 | ||||||||||||
3,005,000 |
Ulster County, NY Tobacco Asset Securitization Corp.1
|
6.450 | 06/01/2040 | 2,563,656 | ||||||||||||
3,550,000 |
Utica, NY IDA (Utica College Civic Facility)1
|
6.850 | 12/01/2031 | 3,509,708 | ||||||||||||
1,985,000 |
Wayne County, NY IDA (ARC)1
|
8.375 | 03/01/2018 | 1,986,191 | ||||||||||||
20,000 |
Westchester County, NY GO1
|
5.375 | 12/15/2014 | 20,297 | ||||||||||||
4,300,000 |
Westchester County, NY Healthcare Corp., Series A1
|
5.875 | 11/01/2025 | 4,260,999 | ||||||||||||
1,810,000 |
Westchester County, NY IDA (Beth Abraham Hospital)1
|
8.375 | 12/01/2025 | 1,812,154 | ||||||||||||
3,550,000 |
Westchester County, NY IDA (Children's Village)1
|
6.000 | 06/01/2022 | 3,189,285 | ||||||||||||
1,215,000 |
Westchester County, NY IDA (Clearview School)1
|
7.250 | 01/01/2035 | 1,145,611 | ||||||||||||
3,130,000 |
Westchester County, NY IDA (Field Home)1
|
6.000 | 08/15/2017 | 2,947,834 | ||||||||||||
3,335,000 |
Westchester County, NY IDA (Field Home)1
|
6.500 | 08/15/2022 | 3,118,358 | ||||||||||||
1,300,000 |
Westchester County, NY IDA (Guiding Eyes for the Blind)1
|
5.375 | 08/01/2024 | 1,272,856 | ||||||||||||
1,375,000 |
Westchester County, NY IDA (JDAM)1
|
6.750 | 04/01/2016 | 1,378,438 | ||||||||||||
3,325,000 |
Westchester County, NY IDA (Lawrence Hospital)1
|
5.000 | 01/01/2028 | 2,967,164 | ||||||||||||
615,000 |
Westchester County, NY IDA (Lawrence Hospital)1
|
5.125 | 01/01/2018 | 615,154 | ||||||||||||
1,430,000 |
Westchester County, NY IDA (Rippowam-Cisqua School)1
|
5.750 | 06/01/2029 | 1,393,492 | ||||||||||||
1,000,000 |
Westchester County, NY IDA (Schnurmacher Center)1
|
6.500 | 11/01/2013 | 1,005,380 | ||||||||||||
1,710,000 |
Westchester County, NY IDA (Schnurmacher Center)1
|
6.500 | 11/01/2033 | 1,470,549 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
New York Continued | ||||||||||||||||
$ | 160,000 |
Westchester County, NY IDA (Westchester Airport Assoc.)1
|
5.950 | % | 08/01/2024 | $ | 160,043 | |||||||||
2,590,000 |
Westchester County, NY IDA (Winward School)1
|
5.250 | 10/01/2031 | 2,358,091 | ||||||||||||
4,475,000 |
Westchester County, NY Tobacco Asset Securitization Corp.1
|
5.000 | 06/01/2026 | 3,862,552 | ||||||||||||
59,900,000 |
Westchester County, NY Tobacco Asset Securitization Corp.1
|
5.125 | 06/01/2038 | 45,116,081 | ||||||||||||
52,770,000 |
Westchester County, NY Tobacco Asset Securitization Corp.1
|
5.125 | 06/01/2045 | 37,874,084 | ||||||||||||
850,000 |
Yonkers, NY EDC (Charter School of Educational Excellence)1
|
6.250 | 10/15/2040 | 775,464 | ||||||||||||
3,825,000 |
Yonkers, NY IDA (Hudson Scenic Studio)1
|
6.625 | 11/01/2019 | 3,549,141 | ||||||||||||
1,525,000 |
Yonkers, NY IDA (Philipsburgh Hall Associates)
|
7.500 | 11/01/2030 | 1,129,949 | ||||||||||||
2,700,000 |
Yonkers, NY IDA (St. Joseph's Hospital)1
|
6.150 | 03/01/2015 | 2,276,640 | ||||||||||||
1,275,000 |
Yonkers, NY IDA (St. Joseph's Hospital)1
|
8.500 | 12/30/2013 | 1,278,162 | ||||||||||||
4,300,000 |
Yonkers, NY IDA (St. Joseph's Hospital), Series 98-A1
|
6.150 | 03/01/2015 | 3,625,760 | ||||||||||||
1,100,000 |
Yonkers, NY IDA (St. Joseph's Hospital), Series 98-B1
|
6.150 | 03/01/2015 | 927,520 | ||||||||||||
2,740,000 |
Yonkers, NY IDA (Westchester School)1
|
8.750 | 12/30/2023 | 2,741,562 | ||||||||||||
800,000 |
Yonkers, NY Parking Authority1
|
6.000 | 06/15/2018 | 773,880 | ||||||||||||
1,215,000 |
Yonkers, NY Parking Authority1
|
6.000 | 06/15/2024 | 1,069,662 | ||||||||||||
|
||||||||||||||||
|
6,389,110,042 | |||||||||||||||
|
||||||||||||||||
U.S. Possessions--35.8% | ||||||||||||||||
825,000 |
Guam Education Financing Foundation COP1
|
5.000 | 10/01/2023 | 792,157 | ||||||||||||
505,000 |
Guam GO1
|
5.250 | 11/15/2037 | 453,677 | ||||||||||||
6,000,000 |
Guam GO1
|
6.750 | 11/15/2029 | 6,433,440 | ||||||||||||
10,000,000 |
Guam GO1
|
7.000 | 11/15/2039 | 10,846,700 | ||||||||||||
300,000 |
Guam Hsg. Corp. (Single Family Mtg.)1
|
5.750 | 09/01/2031 | 311,433 | ||||||||||||
290,000 |
Guam Power Authority, Series A1
|
5.250 | 10/01/2023 | 275,990 | ||||||||||||
20,000,000 |
Guam Power Authority, Series A1
|
5.250 | 10/01/2034 | 18,324,600 | ||||||||||||
5,200,000 |
Guam Power Authority, Series A1
|
5.500 | 10/01/2030 | 5,053,152 | ||||||||||||
7,700,000 |
Guam Power Authority, Series A1
|
5.500 | 10/01/2040 | 7,384,146 | ||||||||||||
2,000,000 |
Northern Mariana Islands Commonwealth, Series A1
|
5.000 | 10/01/2022 | 1,719,680 | ||||||||||||
34,875,000 |
Northern Mariana Islands Commonwealth, Series A1
|
5.000 | 06/01/2030 | 27,937,665 | ||||||||||||
8,670,000 |
Northern Mariana Islands Ports Authority, Series A
|
6.250 | 03/15/2028 | 6,086,340 | ||||||||||||
16,800,000 |
Northern Mariana Islands Ports Authority, Series A1
|
6.600 | 03/15/2028 | 15,147,552 | ||||||||||||
55,650,000 |
Puerto Rico Aqueduct & Sewer Authority1
|
0.000 | 10 | 07/01/2024 | 55,048,980 | |||||||||||
49,000,000 |
Puerto Rico Aqueduct & Sewer Authority4
|
5.125 | 07/01/2047 | 46,697,000 | ||||||||||||
88,365,000 |
Puerto Rico Aqueduct & Sewer Authority1
|
6.000 | 07/01/2038 | 88,894,306 | ||||||||||||
123,015,000 |
Puerto Rico Aqueduct & Sewer Authority1
|
6.000 | 07/01/2044 | 123,456,624 | ||||||||||||
5,000,000 |
Puerto Rico Aqueduct & Sewer Authority1
|
6.000 | 07/01/2044 | 5,017,950 | ||||||||||||
56,685,000 |
Puerto Rico Children's Trust Fund (TASC)1
|
5.625 | 05/15/2043 | 50,011,475 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
U.S. Possessions Continued | ||||||||||||||||
$ | 268,500,000 |
Puerto Rico Children's Trust Fund (TASC)
|
6.617 | %3 | 05/15/2050 | $ | 6,137,910 | |||||||||
745,000,000 |
Puerto Rico Children's Trust Fund (TASC)
|
7.165 | 3 | 05/15/2055 | 8,537,700 | |||||||||||
3,519,880,000 |
Puerto Rico Children's Trust Fund (TASC)
|
7.625 | 3 | 05/15/2057 | 32,981,276 | |||||||||||
3,179,200,000 |
Puerto Rico Children's Trust Fund (TASC)
|
8.375 | 3 | 05/15/2057 | 23,875,792 | |||||||||||
20,000 |
Puerto Rico Commonwealth GO1
|
5.000 | 07/01/2026 | 19,872 | ||||||||||||
2,000,000 |
Puerto Rico Commonwealth GO1
|
5.000 | 07/01/2033 | 1,814,340 | ||||||||||||
10,230,000 |
Puerto Rico Commonwealth GO1
|
5.000 | 07/01/2034 | 9,235,644 | ||||||||||||
5,000,000 |
Puerto Rico Commonwealth GO1
|
5.125 | 07/01/2031 | 4,818,800 | ||||||||||||
2,200,000 |
Puerto Rico Commonwealth GO1
|
5.250 | 07/01/2026 | 2,143,130 | ||||||||||||
5,000,000 |
Puerto Rico Commonwealth GO1
|
5.250 | 07/01/2027 | 4,839,250 | ||||||||||||
2,920,000 |
Puerto Rico Commonwealth GO1
|
5.250 | 07/01/2030 | 2,783,023 | ||||||||||||
14,500,000 |
Puerto Rico Commonwealth GO1
|
5.250 | 07/01/2031 | 13,767,315 | ||||||||||||
10,230,000 |
Puerto Rico Commonwealth GO1
|
5.250 | 07/01/2034 | 9,562,697 | ||||||||||||
43,385,000 |
Puerto Rico Commonwealth GO1
|
5.250 | 07/01/2037 | 40,065,180 | ||||||||||||
5,000,000 |
Puerto Rico Commonwealth GO1
|
5.375 | 07/01/2033 | 4,771,050 | ||||||||||||
1,000,000 |
Puerto Rico Commonwealth GO1
|
5.500 | 07/01/2021 | 1,031,390 | ||||||||||||
7,850,000 |
Puerto Rico Commonwealth GO1
|
5.500 | 07/01/2029 | 7,751,404 | ||||||||||||
81,300,000 |
Puerto Rico Commonwealth GO1
|
5.500 | 07/01/2032 | 79,103,274 | ||||||||||||
18,985,000 |
Puerto Rico Commonwealth GO1
|
6.000 | 07/01/2038 | 19,190,228 | ||||||||||||
9,975,000 |
Puerto Rico Electric Power Authority, Series AAA1
|
5.250 | 07/01/2026 | 9,954,053 | ||||||||||||
31,665,000 |
Puerto Rico Electric Power Authority, Series AAA1
|
5.250 | 07/01/2027 | 31,423,396 | ||||||||||||
52,670,000 |
Puerto Rico Electric Power Authority, Series AAA1
|
5.250 | 07/01/2028 | 52,135,400 | ||||||||||||
18,070,000 |
Puerto Rico Electric Power Authority, Series AAA1
|
5.250 | 07/01/2029 | 17,611,022 | ||||||||||||
19,025,000 |
Puerto Rico Electric Power Authority, Series AAA1
|
5.250 | 07/01/2030 | 18,416,200 | ||||||||||||
20,025,000 |
Puerto Rico Electric Power Authority, Series AAA1
|
5.250 | 07/01/2031 | 19,247,630 | ||||||||||||
15,150,000 |
Puerto Rico Electric Power Authority, Series TT1
|
5.000 | 07/01/2037 | 13,670,906 | ||||||||||||
60,000,000 |
Puerto Rico Electric Power Authority, Series UU1
|
0.714 | 11 | 07/01/2029 | 43,250,400 | |||||||||||
45,000 |
Puerto Rico HFC1
|
5.100 | 12/01/2018 | 45,671 | ||||||||||||
9,515,000 |
Puerto Rico Highway & Transportation Authority1
|
5.000 | 07/01/2028 | 8,883,299 | ||||||||||||
4,845,000 |
Puerto Rico Highway & Transportation Authority1
|
5.250 | 07/01/2030 | 4,617,721 | ||||||||||||
3,100,000 |
Puerto Rico Highway & Transportation Authority
|
5.300 | 07/01/2035 | 2,902,437 | ||||||||||||
4,000,000 |
Puerto Rico Highway & Transportation Authority1
|
5.500 | 07/01/2029 | 3,972,480 | ||||||||||||
270,000 |
Puerto Rico Highway & Transportation Authority1
|
5.750 | 07/01/2020 | 274,514 | ||||||||||||
11,585,000 |
Puerto Rico Highway & Transportation Authority, Series G1
|
5.000 | 07/01/2033 | 10,509,564 | ||||||||||||
28,570,000 |
Puerto Rico Highway & Transportation Authority, Series G1
|
5.000 | 07/01/2042 | 25,205,311 | ||||||||||||
3,885,000 |
Puerto Rico Highway & Transportation Authority, Series H1
|
5.450 | 07/01/2035 | 3,713,205 | ||||||||||||
6,500,000 |
Puerto Rico Highway & Transportation Authority, Series K1
|
5.000 | 07/01/2027 | 6,116,890 | ||||||||||||
3,145,000 |
Puerto Rico Highway & Transportation Authority, Series K1
|
5.000 | 07/01/2030 | 2,905,257 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
U.S. Possessions Continued | ||||||||||||||||
$ | 2,600,000 |
Puerto Rico Highway & Transportation Authority, Series L1
|
5.250 | % | 07/01/2023 | $ | 2,605,902 | |||||||||
17,205,000 |
Puerto Rico Highway & Transportation Authority, Series L1
|
5.250 | 07/01/2030 | 16,397,913 | ||||||||||||
6,795,000 |
Puerto Rico Highway & Transportation Authority, Series L1
|
5.250 | 07/01/2041 | 6,245,217 | ||||||||||||
92,120,000 |
Puerto Rico Highway & Transportation Authority, Series M1
|
5.000 | 07/01/2046 | 80,958,741 | ||||||||||||
125,620,000 |
Puerto Rico Highway & Transportation Authority, Series N1
|
0.724 | 11 | 07/01/2041 | 67,109,973 | |||||||||||
74,940,000 |
Puerto Rico Highway & Transportation Authority, Series N1
|
0.724 | 11 | 07/01/2045 | 39,232,589 | |||||||||||
16,080,000 |
Puerto Rico Highway & Transportation Authority, Series N1
|
5.250 | 07/01/2032 | 15,189,650 | ||||||||||||
53,445,000 |
Puerto Rico Highway & Transportation Authority, Series N1
|
5.250 | 07/01/2039 | 49,230,862 | ||||||||||||
26,755,000 |
Puerto Rico Infrastructure1
|
5.000 | 07/01/2031 | 24,297,018 | ||||||||||||
6,000,000 |
Puerto Rico Infrastructure1
|
5.000 | 07/01/2037 | 5,406,660 | ||||||||||||
32,490,000 |
Puerto Rico Infrastructure1
|
5.000 | 07/01/2037 | 29,277,064 | ||||||||||||
202,145,000 |
Puerto Rico Infrastructure1
|
5.000 | 07/01/2041 | 181,524,189 | ||||||||||||
134,520,000 |
Puerto Rico Infrastructure1
|
5.000 | 07/01/2046 | 120,060,445 | ||||||||||||
3,130,000 |
Puerto Rico Infrastructure1
|
5.500 | 07/01/2025 | 3,154,915 | ||||||||||||
1,295,000 |
Puerto Rico Infrastructure1
|
5.500 | 07/01/2026 | 1,289,652 | ||||||||||||
15,000,000 |
Puerto Rico Infrastructure1
|
5.500 | 07/01/2027 | 14,839,800 | ||||||||||||
2,750,000 |
Puerto Rico Infrastructure1
|
5.500 | 07/01/2028 | 2,704,515 | ||||||||||||
16,955,000 |
Puerto Rico Infrastructure
|
5.650 | 3 | 07/01/2029 | 4,893,552 | |||||||||||
65,725,000 |
Puerto Rico Infrastructure
|
5.730 | 3 | 07/01/2045 | 5,313,866 | |||||||||||
25,000,000 |
Puerto Rico Infrastructure
|
5.800 | 3 | 07/01/2032 | 5,513,500 | |||||||||||
6,285,000 |
Puerto Rico ITEMECF (Ana G. Mendez University)1
|
5.000 | 03/01/2036 | 5,315,602 | ||||||||||||
1,575,000 |
Puerto Rico ITEMECF (Ana G. Mendez University)1
|
5.375 | 12/01/2021 | 1,570,417 | ||||||||||||
5,750,000 |
Puerto Rico ITEMECF (Ana G. Mendez University)1
|
5.375 | 02/01/2029 | 5,368,373 | ||||||||||||
6,315,000 |
Puerto Rico ITEMECF (Ana G. Mendez University)1
|
5.500 | 12/01/2031 | 5,898,463 | ||||||||||||
38,000,000 |
Puerto Rico ITEMECF (Cogeneration Facilities)1
|
6.625 | 06/01/2026 | 38,075,240 | ||||||||||||
2,025,000 |
Puerto Rico ITEMECF (Ryder Memorial Hospital)1
|
6.600 | 05/01/2014 | 1,975,732 | ||||||||||||
5,250,000 |
Puerto Rico ITEMECF (Ryder Memorial Hospital)1
|
6.700 | 05/01/2024 | 4,329,360 | ||||||||||||
7,000,000 |
Puerto Rico ITEMECF (San Lucas & Cristo Redentor Hospitals)1
|
5.750 | 06/01/2029 | 5,598,600 | ||||||||||||
500,000 |
Puerto Rico ITEMECF (University of the Sacred Heart)1
|
5.250 | 09/01/2021 | 499,995 | ||||||||||||
8,000,000 |
Puerto Rico ITEMECF (University of the Sacred Heart)1
|
5.250 | 09/01/2031 | 7,302,880 | ||||||||||||
4,990,000 |
Puerto Rico Municipal Finance Agency, Series A1
|
5.250 | 08/01/2025 | 4,909,911 | ||||||||||||
4,975,000 |
Puerto Rico Port Authority (American Airlines), Series A
|
6.250 | 06/01/2026 | 4,309,892 | ||||||||||||
6,395,000 |
Puerto Rico Port Authority (American Airlines), Series A
|
6.300 | 06/01/2023 | 5,663,421 | ||||||||||||
90,855,000 |
Puerto Rico Public Buildings Authority1
|
5.000 | 07/01/2036 | 81,128,972 |
Principal | ||||||||||||||||
Amount | Coupon | Maturity | Value | |||||||||||||
U.S. Possessions Continued | ||||||||||||||||
$ | 7,500,000 |
Puerto Rico Public Buildings Authority1
|
5.000 | % | 07/01/2037 | $ | 6,674,325 | |||||||||
23,585,000 |
Puerto Rico Public Buildings Authority1
|
5.250 | 07/01/2029 | 22,615,421 | ||||||||||||
121,570,000 |
Puerto Rico Public Buildings Authority1
|
5.250 | 07/01/2033 | 114,681,844 | ||||||||||||
120,000 |
Puerto Rico Public Buildings Authority1
|
5.375 | 07/01/2033 | 115,090 | ||||||||||||
1,500,000 |
Puerto Rico Public Buildings Authority1
|
6.250 | 07/01/2021 | 1,609,260 | ||||||||||||
7,500,000 |
Puerto Rico Public Buildings Authority1
|
6.250 | 07/01/2031 | 8,023,350 | ||||||||||||
8,000,000 |
Puerto Rico Public Buildings Authority1
|
6.500 | 07/01/2030 | 8,459,520 | ||||||||||||
7,500,000 |
Puerto Rico Public Buildings Authority1
|
6.750 | 07/01/2036 | 7,988,400 | ||||||||||||
296,445,000 |
Puerto Rico Sales Tax Financing Corp., Series A4
|
5.250 | 08/01/2057 | 293,068,321 | ||||||||||||
643,700,000 |
Puerto Rico Sales Tax Financing Corp., Series A
|
5.401 | 3 | 08/01/2054 | 33,556,081 | |||||||||||
33,000,000 |
Puerto Rico Sales Tax Financing Corp., Series A1
|
5.750 | 08/01/2037 | 33,331,980 | ||||||||||||
221,800,000 |
Puerto Rico Sales Tax Financing Corp., Series A
|
5.939 | 3 | 08/01/2056 | 10,087,464 | |||||||||||
30,000,000 |
Puerto Rico Sales Tax Financing Corp., Series A
|
6.500 | 3 | 08/01/2042 | 3,903,900 | |||||||||||
7,300,000 |
Puerto Rico Sales Tax Financing Corp., Series A1
|
6.500 | 08/01/2044 | 7,907,944 | ||||||||||||
80,000,000 |
Puerto Rico Sales Tax Financing Corp., Series A
|
6.504 | 3 | 08/01/2043 | 9,621,600 | |||||||||||
35,000,000 |
Puerto Rico Sales Tax Financing Corp., Series C1
|
0.000 | 10 | 08/01/2032 | 27,633,900 | |||||||||||
2,500,000 |
Puerto Rico Sales Tax Financing Corp., Series C1
|
5.250 | 08/01/2041 | 2,362,025 | ||||||||||||
4,000,000 |
Puerto Rico Sales Tax Financing Corp., Series C1
|
5.375 | 08/01/2036 | 3,878,200 | ||||||||||||
95,245,000 |
Puerto Rico Sales Tax Financing Corp., Series C4
|
5.750 | 08/01/2057 | 98,523,849 | ||||||||||||
24,875,000 |
Puerto Rico Sales Tax Financing Corp., Series C1
|
6.000 | 08/01/2042 | 25,425,484 | ||||||||||||
4,525,000 |
University of Puerto Rico1
|
5.000 | 06/01/2026 | 4,211,508 | ||||||||||||
5,280,000 |
University of Puerto Rico, Series P1
|
5.000 | 06/01/2030 | 4,746,034 | ||||||||||||
24,375,000 |
University of Puerto Rico, Series Q1
|
5.000 | 06/01/2030 | 21,909,956 | ||||||||||||
65,780,000 |
University of Puerto Rico, Series Q1
|
5.000 | 06/01/2036 | 57,485,142 | ||||||||||||
9,230,000 |
University of V.I., Series A1
|
5.375 | 06/01/2034 | 8,476,371 | ||||||||||||
2,040,000 |
University of V.I., Series A1
|
6.250 | 12/01/2029 | 1,984,798 | ||||||||||||
3,650,000 |
V.I. Government Refinery Facilities (Hovensa Coker)1
|
6.500 | 07/01/2021 | 3,662,374 | ||||||||||||
10,000 |
V.I. HFA, Series A1
|
6.450 | 03/01/2016 | 10,016 | ||||||||||||
18,720,000 |
V.I. Public Finance Authority (Gross Receipts Taxes Loan)1
|
5.000 | 10/01/2031 | 17,178,221 | ||||||||||||
550,000 |
V.I. Public Finance Authority (Gross Receipts Taxes Loan)1
|
5.000 | 10/01/2033 | 501,215 | ||||||||||||
27,733,000 |
V.I. Public Finance Authority (Hovensa Coker)1
|
6.500 | 07/01/2021 | 27,846,151 | ||||||||||||
11,700,000 |
V.I. Public Finance Authority (Hovensa Refinery)1
|
5.875 | 07/01/2022 | 11,343,969 | ||||||||||||
8,000,000 |
V.I. Public Finance Authority (Hovensa Refinery)1
|
6.125 | 07/01/2022 | 7,925,280 | ||||||||||||
750,000 |
V.I. Public Finance Authority, Series A1
|
5.250 | 10/01/2024 | 753,863 | ||||||||||||
11,100,000 |
V.I. Tobacco Settlement Financing Corp.
|
7.300 | 3 | 05/15/2035 | 1,083,027 | |||||||||||
|
||||||||||||||||
|
2,752,956,262 | |||||||||||||||
|
||||||||||||||||
Total Investments, at Value (Cost $10,276,162,008)--118.8% | 9,142,066,304 | |||||||||||||||
Liabilities in Excess of Other Assets-- (18.8) | (1,445,372,088 | ) | ||||||||||||||
|
||||||||||||||||
Net Assets--100.0% | $ | 7,696,694,216 | ||||||||||||||
|
Footnotes to Statement of Investments | ||
1. | All or a portion of the security position has been segregated for collateral to cover borrowings. See Note 5 of the accompanying Notes. | |
2. | Issue is in default. See Note 1 of the accompanying Notes. | |
3. | Zero coupon bond reflects effective yield on the date of purchase. | |
4. | Security represents the underlying municipal bond on an inverse floating rate security. The bond was purchased by the Fund and subsequently transferred to a trust. See Note 1 of the accompanying Notes. | |
5. | Non-income-accruing security. | |
6. | Security is subject to a shortfall and forbearance agreement. See Note 1 of the accompanying Notes. | |
7. | Represents the current interest rate for a variable rate bond known as an "inverse floater." See Note 1 of the accompanying Notes. | |
8. | Subject to a forbearance agreement. Rate shown is current rate. See Note 1 of the accompanying Notes. | |
9. | When-issued security or delayed delivery to be delivered and settled after December 31, 2010. See Note 1 of the accompanying Notes. | |
10. | Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. | |
11. | Represents the current interest rate for a variable or increasing rate security. |
1) | Level 1--Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) | ||
2) | Level 2--Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates,prepayment speeds, credit risks, etc.) | ||
3) | Level 3--Level 3-significant unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset or liability). |
Level 3-- | ||||||||||||||||
Level 1-- | Level 2-- | Significant | ||||||||||||||
Unadjusted | Other Significant | Unobservable | ||||||||||||||
Quoted Prices | Observable Inputs | Inputs | Value | |||||||||||||
Assets Table
|
||||||||||||||||
Investments, at Value:
|
||||||||||||||||
Municipal Bonds and Notes
|
||||||||||||||||
New York
|
$ | -- | $ | 6,389,110,020 | $ | 22 | $ | 6,389,110,042 | ||||||||
U.S. Possessions
|
-- | 2,752,956,262 | -- | 2,752,956,262 | ||||||||||||
Total Assets
|
$ | -- | $ | 9,142,066,282 | $ | 22 | $ | 9,142,066,304 | ||||||||
ACDS
|
Assoc. for Children with Down Syndrome | |
ACLD
|
Adults and Children with Learning and Developmental Disabilities | |
ADD
|
Aid to the Developmentally Disabled | |
ALIA
|
Alliance of Long Island Agencies | |
ARC
|
Assoc. of Retarded Citizens | |
BUG
|
Brodelyn Union Gas | |
CCRC
|
Continuing Care Retirement Community | |
CFGA
|
Child and Family Guidance Assoc. | |
CHSLI
|
Catholic Health Services of Long Island | |
CNGCS
|
Central Nassau Guidance and Counseling Services | |
COP
|
Certificates of Participation | |
CRV
|
Crystal Run Village | |
CSMR
|
Community Services for the Mentally Retarded | |
DA
|
Dormitory Authority | |
DDI
|
Developmental Disabilities Institute | |
DRIVERs
|
Derivative Inverse Tax Exempt Receipts | |
EDC
|
Economic Devel. Corp. | |
EFC
|
Environmental Facilities Corp. | |
ERDA
|
Energy Research and Devel. Authority | |
FREE
|
Family Residences and Essential Enterprises | |
GJSR
|
Gurwin Jewish Senior Residences | |
GO
|
General Obligation | |
GSHMC
|
Good Samaritan Hospital Medical Center | |
HDC
|
Housing Devel. Corp. | |
HFA
|
Housing Finance Agency | |
HFC
|
Housing Finance Corp. | |
HH
|
Harmony Heights, Inc. | |
HHS
|
Harmony Heights School | |
IDA
|
Industrial Devel. Agency | |
IGHL
|
Independent Group Home for Living | |
ITEMECF
|
Industrial, Tourist, Educational, Medical and Environmental Community Facilities | |
JCC
|
Jewish Community Center | |
JDAM
|
Julia Dyckman Andrus Memorial | |
JFK
|
John Fitzgerald Kennedy | |
L.I.
|
Long Island | |
LGSC
|
Local Government Services Corp. | |
LIHIA
|
Long Island Head Injury Assoc. | |
LILCO
|
Long Island Lighting Corp. | |
LVH
|
Little Village House | |
MCH
|
Maryhaven Center of Hope | |
MMC
|
Mercy Medical Center | |
MTA
|
Metropolitan Transportation Authority | |
NY/NJ
|
New York/New Jersey | |
NYC
|
New York City | |
NYS
|
New York State | |
NYU
|
New York University | |
PSCH
|
Professional Service Centers for the Handicapped, Inc. | |
RIBS
|
Residual Interest Bonds | |
ROLs
|
Residual Option Longs | |
Res Rec
|
Resource Recovery Facility | |
SCHRC
|
St. Charles Hospital and Rehabilitation Center | |
SCSB
|
Schuyler Community Services Board | |
SFH
|
St. Francis Hospital | |
SFTU
|
Services for the Underserved | |
SLCD
|
School for Language and Communication Devel. | |
SMCFS
|
St. Mary's Children and Family Services | |
SONYMA
|
State of New York Mortgage Agency | |
SUNY
|
State University of New York | |
TASC
|
Tobacco Settlement Asset-Backed Bonds | |
TFABs
|
Tobacco Flexible Amortization Bonds | |
UBF
|
University of Buffalo Foundation | |
UCPAGS
|
United Cerebral Palsy Assoc. of Greater Suffolk | |
UDC
|
Urban Devel. Corp. | |
UVBH
|
United Veteran's Beacon House | |
V.I.
|
United States Virgin Islands | |
WORCA
|
Working Organization for Retarded Children and Adults | |
YAI
|
Young Adult Institute | |
YMCA
|
Young Men's Christian Assoc. |
Assets
|
||||
Investments, at value (cost $10,276,162,008)--see accompanying statement of investments
|
$ | 9,142,066,304 | ||
Cash
|
6,333,184 | |||
Receivables and other assets:
|
||||
Interest
|
151,689,288 | |||
Shares of beneficial interest sold
|
6,109,379 | |||
Investments sold
|
5,515,000 | |||
Other
|
363,622 | |||
|
||||
Total assets
|
9,312,076,777 | |||
|
||||
Liabilities
|
||||
Payables and other liabilities:
|
||||
Payable for short-term floating rate notes issued (See Note 1)
|
1,315,895,000 | |||
Payable on borrowings (See Note 5)
|
227,800,000 | |||
Investments purchased (including $36,000,000 purchased on a when-issued or delayed delivery basis)
|
36,102,993 | |||
Shares of beneficial interest redeemed
|
28,964,798 | |||
Distribution and service plan fees
|
3,421,896 | |||
Trustees' compensation
|
1,891,599 | |||
Transfer and shareholder servicing agent fees
|
279,384 | |||
Shareholder communications
|
164,624 | |||
Interest expense on borrowings
|
33,936 | |||
Dividends
|
2,495 | |||
Other
|
825,836 | |||
|
||||
Total liabilities
|
1,615,382,561 | |||
|
||||
Net Assets
|
$ | 7,696,694,216 | ||
|
||||
|
||||
Composition of Net Assets
|
||||
Paid-in capital
|
$ | 9,550,486,213 | ||
Accumulated net investment income
|
79,569,190 | |||
Accumulated net realized loss on investments
|
(799,265,483 | ) | ||
Net unrealized depreciation on investments
|
(1,134,095,704 | ) | ||
|
||||
Net Assets
|
$ | 7,696,694,216 | ||
|
Net Asset Value Per Share
|
||||
Class A Shares:
|
||||
Net asset value and redemption price per share (based on net assets of $6,295,107,990 and 410,647,192 shares of beneficial interest outstanding)
|
$ | 15.33 | ||
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price)
|
$ | 16.09 | ||
Class B Shares:
|
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $181,057,871 and 11,823,267 shares of beneficial interest outstanding)
|
$ | 15.31 | ||
Class C Shares:
|
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,119,899,887 and 73,175,709 shares of beneficial interest outstanding)
|
$ | 15.30 | ||
Class Y Shares:
|
||||
Net asset value, redemption price and offering price per share (based on net assets of $100,628,468 and 6,564,370 shares of beneficial interest outstanding)
|
$ | 15.33 |
Investment Income
|
||||
Interest
|
$ | 597,483,487 | ||
Other income
|
3,768 | |||
|
||||
Total investment income
|
597,487,255 | |||
|
||||
Expenses
|
||||
Management fees
|
39,507,383 | |||
Distribution and service plan fees:
|
||||
Class A
|
10,333,308 | |||
Class B
|
2,192,711 | |||
Class C
|
12,670,489 | |||
Transfer and shareholder servicing agent fees:
|
||||
Class A
|
2,154,402 | |||
Class B
|
251,914 | |||
Class C
|
614,937 | |||
Class Y
|
39,104 | |||
Shareholder communications:
|
||||
Class A
|
222,550 | |||
Class B
|
21,221 | |||
Class C
|
52,118 | |||
Class Y
|
3,986 | |||
Interest expense and fees on short-term floating rate notes issued (See Note 1)
|
15,672,049 | |||
Borrowing fees
|
6,338,220 | |||
Accounting service fees
|
2,584,568 | |||
Interest expense on borrowings
|
172,828 | |||
Trustees' compensation
|
167,027 | |||
Custodian fees and expenses
|
71,865 | |||
Administration service fees
|
1,500 | |||
Other
|
504,520 | |||
|
||||
Total expenses
|
93,576,700 | |||
Less waivers and reimbursements of expenses
|
(47,321 | ) | ||
|
||||
Net expenses
|
93,529,379 | |||
|
||||
Net Investment Income
|
503,957,876 | |||
|
||||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain on investments
|
107,406,478 | |||
Net change in unrealized appreciation/depreciation on investments
|
(289,610,448 | ) | ||
|
||||
Net Increase in Net Assets Resulting from Operations
|
$ | 321,753,906 | ||
|
Year Ended December 31, | 2010 | 2009 | ||||||
Operations
|
||||||||
Net investment income
|
$ | 503,957,876 | $ | 530,847,427 | ||||
Net realized gain (loss)
|
107,406,478 | (226,677,958 | ) | |||||
Net change in unrealized appreciation/depreciation
|
(289,610,448 | ) | 2,492,752,087 | |||||
Net increase in net assets resulting from operations
|
321,753,906 | 2,796,921,556 | ||||||
|
||||||||
Dividends and/or Distributions to Shareholders
|
||||||||
Dividends from net investment income:
|
||||||||
Class A
|
(418,716,525 | ) | (408,558,894 | ) | ||||
Class B
|
(11,118,280 | ) | (13,742,327 | ) | ||||
Class C
|
(64,982,829 | ) | (62,747,294 | ) | ||||
Class Y
|
(6,054,918 | ) | (3,759,108 | ) | ||||
|
(500,872,552 | ) | (488,807,623 | ) | ||||
|
||||||||
Beneficial Interest Transactions
|
||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions:
|
||||||||
Class A
|
(470,847,309 | ) | (128,680,279 | ) | ||||
Class B
|
(62,951,925 | ) | (66,159,176 | ) | ||||
Class C
|
(103,907,672 | ) | 13,156,586 | |||||
Class Y
|
39,395,133 | 3,629,506 | ||||||
|
(598,311,773 | ) | (178,053,363 | ) | ||||
|
||||||||
Net Assets
|
||||||||
Total increase (decrease)
|
(777,430,419 | ) | 2,130,060,570 | |||||
Beginning of period
|
8,474,124,635 | 6,344,064,065 | ||||||
End of period (including accumulated net investment income of $79,569,190 and $72,772,034, respectively)
|
$ | 7,696,694,216 | $ | 8,474,124,635 | ||||
For the Year Ended December 31, 2010 | ||||
Cash Flows from Operating Activities
|
||||
Net increase in net assets from operations
|
$ | 321,753,906 | ||
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
|
||||
Purchase of investment securities
|
(679,005,735 | ) | ||
Proceeds from disposition of investment securities
|
1,165,658,463 | |||
Short-term investment securities, net
|
211,962,533 | |||
Premium amortization
|
23,074,824 | |||
Discount accretion
|
(66,188,125 | ) | ||
Net realized gain on investments
|
(107,406,478 | ) | ||
Net change in unrealized appreciation/depreciation on investments
|
289,610,448 | |||
Change in assets:
|
||||
Decrease in interest receivable
|
5,987,242 | |||
Decrease in other assets
|
2,785,659 | |||
Decrease in receivable for securities sold
|
1,434,021 | |||
Change in liabilities:
|
||||
Increase in payable for securities purchased
|
31,135,665 | |||
Increase in other liabilities
|
127,707 | |||
|
||||
|
||||
Net cash provided by operating activities
|
1,200,930,130 | |||
|
||||
Cash Flows from Financing Activities
|
||||
Proceeds from bank borrowings
|
1,219,800,000 | |||
Payments on bank borrowings
|
(1,123,300,000 | ) | ||
Payments on short-term floating rate notes issued
|
(200,730,000 | ) | ||
Proceeds from shares sold
|
845,371,287 | |||
Payments on shares redeemed
|
(1,766,243,296 | ) | ||
Cash distributions paid
|
(170,949,557 | ) | ||
|
||||
Net cash used in financing activities
|
(1,196,051,566 | ) | ||
Net increase in cash
|
4,878,564 | |||
Cash, beginning balance
|
1,454,620 | |||
|
||||
Cash, ending balance
|
$ | 6,333,184 | ||
|
Class A Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Per Share Operating Data
|
||||||||||||||||||||
Net asset value, beginning of period
|
$ | 15.70 | $ | 11.54 | $ | 17.67 | $ | 18.82 | $ | 18.28 | ||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||
Net investment income1
|
.98 | .98 | .94 | .88 | .93 | |||||||||||||||
Net realized and unrealized gain (loss)
|
(.38 | ) | 4.09 | (6.19 | ) | (1.17 | ) | .55 | ||||||||||||
Total from investment operations
|
.60 | 5.07 | (5.25 | ) | (.29 | ) | 1.48 | |||||||||||||
Dividends and/or distributions to shareholders:
|
||||||||||||||||||||
Dividends from net investment income
|
(.97 | ) | (.91 | ) | (.88 | ) | (.86 | ) | (.94 | ) | ||||||||||
|
||||||||||||||||||||
Net asset value, end of period
|
$ | 15.33 | $ | 15.70 | $ | 11.54 | $ | 17.67 | $ | 18.82 | ||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value2
|
3.63 | % | 45.07 | % | (30.84 | )% | (1.59 | )% | 8.33 | % | ||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data
|
||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 6,295 | $ | 6,913 | $ | 5,158 | $ | 8,541 | $ | 7,979 | ||||||||||
Average net assets (in millions)
|
$ | 7,013 | $ | 6,360 | $ | 7,688 | $ | 8,598 | $ | 6,836 | ||||||||||
Ratios to average net assets:3
|
||||||||||||||||||||
Net investment income
|
6.01 | % | 6.96 | % | 5.96 | % | 4.78 | % | 5.05 | % | ||||||||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
0.67 | % | 0.70 | % | 0.70 | % | 0.67 | % | 0.68 | % | ||||||||||
Interest and fees from borrowings
|
0.08 | % | 0.45 | % | 0.22 | % | 0.05 | % | 0.04 | % | ||||||||||
Interest and fees on short-term floating rate notes issued4
|
0.18 | % | 0.27 | % | 0.68 | % | 0.71 | % | 0.62 | % | ||||||||||
Total expenses
|
0.93 | % | 1.42 | % | 1.60 | % | 1.43 | % | 1.34 | % | ||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
|
0.93 | % | 1.42 | % | 1.60 | % | 1.43 | % | 1.34 | % | ||||||||||
Portfolio turnover rate
|
7 | % | 8 | % | 23 | % | 28 | % | 17 | % |
1. | Per share amounts calculated based on the average shares outstanding during the period. | |
2. | Assumes an initial investment on the business day before the first day of the fiscal period,with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. | |
4. | Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
Class B Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Per Share Operating Data
|
||||||||||||||||||||
Net asset value, beginning of period
|
$ | 15.68 | $ | 11.53 | $ | 17.66 | $ | 18.80 | $ | 18.26 | ||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||
Net investment income1
|
.82 | .85 | .80 | .72 | .78 | |||||||||||||||
Net realized and unrealized gain (loss)
|
(.37 | ) | 4.07 | (6.19 | ) | (1.16 | ) | .54 | ||||||||||||
Total from investment operations
|
.45 | 4.92 | (5.39 | ) | (.44 | ) | 1.32 | |||||||||||||
Dividends and/or distributions to shareholders:
|
||||||||||||||||||||
Dividends from net investment income
|
(.82 | ) | (.77 | ) | (.74 | ) | (.70 | ) | (.78 | ) | ||||||||||
|
||||||||||||||||||||
Net asset value, end of period
|
$ | 15.31 | $ | 15.68 | $ | 11.53 | $ | 17.66 | $ | 18.80 | ||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value2
|
2.67 | % | 43.66 | % | (31.50 | )% | (2.41 | )% | 7.39 | % | ||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data
|
||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 181 | $ | 246 | $ | 237 | $ | 591 | $ | 906 | ||||||||||
Average net assets (in millions)
|
$ | 220 | $ | 248 | $ | 424 | $ | 745 | $ | 925 | ||||||||||
Ratios to average net assets:3
|
||||||||||||||||||||
Net investment income
|
5.07 | % | 6.05 | % | 4.99 | % | 3.88 | % | 4.20 | % | ||||||||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
1.62 | % | 1.67 | % | 1.58 | % | 1.57 | % | 1.56 | % | ||||||||||
Interest and fees from borrowings
|
0.08 | % | 0.45 | % | 0.22 | % | 0.05 | % | 0.04 | % | ||||||||||
Interest and fees on short-term floating rate notes issued4
|
0.18 | % | 0.27 | % | 0.68 | % | 0.71 | % | 0.62 | % | ||||||||||
Total expenses
|
1.88 | % | 2.39 | % | 2.48 | % | 2.33 | % | 2.22 | % | ||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
|
1.88 | % | 2.39 | % | 2.48 | % | 2.33 | % | 2.22 | % | ||||||||||
Portfolio turnover rate
|
7 | % | 8 | % | 23 | % | 28 | % | 17 | % |
1. | Per share amounts calculated based on the average shares outstanding during the period. | |
2. | Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. | |
4. | Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
Class C Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Per Share Operating Data
|
||||||||||||||||||||
Net asset value, beginning of period
|
$ | 15.67 | $ | 11.52 | $ | 17.65 | $ | 18.79 | $ | 18.25 | ||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||
Net investment income1
|
.83 | .86 | .80 | .71 | .76 | |||||||||||||||
Net realized and unrealized gain (loss)
|
(.37 | ) | 4.07 | (6.19 | ) | (1.15 | ) | .56 | ||||||||||||
Total from investment operations
|
.46 | 4.93 | (5.39 | ) | (.44 | ) | 1.32 | |||||||||||||
Dividends and/or distributions to shareholders:
|
||||||||||||||||||||
Dividends from net investment income
|
(.83 | ) | (.78 | ) | (.74 | ) | (.70 | ) | (.78 | ) | ||||||||||
|
||||||||||||||||||||
Net asset value, end of period
|
$ | 15.30 | $ | 15.67 | $ | 11.52 | $ | 17.65 | $ | 18.79 | ||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value2
|
2.75 | % | 43.82 | % | (31.49 | )% | (2.39 | )% | 7.40 | % | ||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data
|
||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 1,120 | $ | 1,250 | $ | 905 | $ | 1,514 | $ | 1,256 | ||||||||||
Average net assets (in millions)
|
$ | 1,271 | $ | 1,131 | $ | 1,350 | $ | 1,492 | $ | 956 | ||||||||||
Ratios to average net assets:3
|
||||||||||||||||||||
Net investment income
|
5.14 | % | 6.09 | % | 5.09 | % | 3.90 | % | 4.15 | % | ||||||||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
1.54 | % | 1.57 | % | 1.57 | % | 1.54 | % | 1.54 | % | ||||||||||
Interest and fees from borrowings
|
0.08 | % | 0.45 | % | 0.22 | % | 0.05 | % | 0.04 | % | ||||||||||
Interest and fees on short-term floating rate notes issued4
|
0.18 | % | 0.27 | % | 0.68 | % | 0.71 | % | 0.62 | % | ||||||||||
Total expenses
|
1.80 | % | 2.29 | % | 2.47 | % | 2.30 | % | 2.20 | % | ||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
|
1.80 | % | 2.29 | % | 2.47 | % | 2.30 | % | 2.20 | % | ||||||||||
Portfolio turnover rate
|
7 | % | 8 | % | 23 | % | 28 | % | 17 | % |
1. | Per share amounts calculated based on the average shares outstanding during the period. | |
2. | Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. | |
4. | Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
Class Y Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Per Share Operating Data
|
||||||||||||||||||||
Net asset value, beginning of period
|
$ | 15.69 | $ | 11.54 | $ | 17.67 | $ | 18.82 | $ | 18.28 | ||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||
Net investment income1
|
.99 | 1.00 | .96 | .89 | .95 | |||||||||||||||
Net realized and unrealized gain (loss)
|
(.36 | ) | 4.08 | (6.19 | ) | (1.15 | ) | .55 | ||||||||||||
Total from investment operations
|
.63 | 5.08 | (5.23 | ) | (.26 | ) | 1.50 | |||||||||||||
Dividends and/or distributions to shareholders:
|
||||||||||||||||||||
Dividends from net investment income
|
(.99 | ) | (.93 | ) | (.90 | ) | (.89 | ) | (.96 | ) | ||||||||||
|
||||||||||||||||||||
Net asset value, end of period
|
$ | 15.33 | $ | 15.69 | $ | 11.54 | $ | 17.67 | $ | 18.82 | ||||||||||
|
||||||||||||||||||||
Total Return, at Net Asset Value2
|
3.84 | % | 45.18 | % | (30.74 | )% | (1.44 | )% | 8.45 | % | ||||||||||
|
||||||||||||||||||||
Ratios/Supplemental Data
|
||||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 101 | $ | 65 | $ | 44 | $ | 56 | $ | 22 | ||||||||||
Average net assets (in millions)
|
$ | 100 | $ | 57 | $ | 61 | $ | 44 | $ | 16 | ||||||||||
Ratios to average net assets:3
|
||||||||||||||||||||
Net investment income
|
6.14 | % | 7.09 | % | 6.14 | % | 4.91 | % | 5.14 | % | ||||||||||
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
0.54 | % | 0.55 | % | 0.57 | % | 0.51 | % | 0.56 | % | ||||||||||
Interest and fees from borrowings
|
0.08 | % | 0.45 | % | 0.22 | % | 0.05 | % | 0.04 | % | ||||||||||
Interest and fees on short-term floating rate notes issued4
|
0.18 | % | 0.27 | % | 0.68 | % | 0.71 | % | 0.62 | % | ||||||||||
Total expenses
|
0.80 | % | 1.27 | % | 1.47 | % | 1.27 | % | 1.22 | % | ||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
|
0.80 | % | 1.27 | % | 1.47 | % | 1.27 | % | 1.22 | % | ||||||||||
Portfolio turnover rate
|
7 | % | 8 | % | 23 | % | 28 | % | 17 | % |
1. | Per share amounts calculated based on the average shares outstanding during the period. | |
2. | Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year. | |
4. | Interest and fee expense relates to the Fund's liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions. |
When-Issued or Delayed | ||||
Delivery Basis Transactions | ||||
Purchased securities
|
$ | 36,000,000 |
Principal | Coupon | Maturity | ||||||||||||||
Amount | Inverse Floater1 | Rate2 | Date | Value | ||||||||||||
$ | 13,640,000 |
NY Austin Trust Various States
Inverse Certificates |
11.146 | % | 6/1/32 | $ | 14,063,931 | |||||||||
8,935,000 |
NY Austin Trust Various States
Inverse Certificates |
11.112 | 6/1/27 | 9,538,827 | ||||||||||||
23,960,000 |
NY Austin Trust Various States
Inverse Certificates |
6.563 | 11/1/38 | 20,670,292 | ||||||||||||
16,400,000 |
NY Austin Trust Various States
Inverse Certificates |
9.632 | 7/1/48 | 16,794,912 | ||||||||||||
31,175,000 |
NY Liberty Devel. Corp. (One Bryant Park) ROLs3
|
10.490 | 1/15/46 | 32,479,050 | ||||||||||||
36,040,000 |
NY Liberty Devel. Corp. ROLs3
|
7.490 | 10/1/35 | 34,194,392 | ||||||||||||
10,770,000 |
NY MTA ROLs3
|
16.374 | 11/15/30 | 10,331,661 | ||||||||||||
6,615,000 |
NY Triborough Bridge & Tunnel Authority ROLs3
|
8.020 | 1/1/27 | 6,682,142 |
Principal | Coupon | Maturity | ||||||||||||||
Amount | Inverse Floater1 | Rate2 | Date | Value | ||||||||||||
$ | 15,660,000 |
NY/NJ Port Authority Austin Trust
Inverse Certificates |
6.165 | % | 12/1/27 | $ | 14,097,915 | |||||||||
7,700,000 |
NY/NJ Port Authority Austin Trust
Inverse Certificates |
5.806 | 12/1/34 | 6,402,011 | ||||||||||||
23,955,000 |
NY/NJ Port Authority Austin Trust
Inverse Certificates |
7.575 | 10/1/30 | 22,863,610 | ||||||||||||
5,605,000 |
NYC GO DRIVERS
|
8.324 | 12/1/33 | 5,648,271 | ||||||||||||
5,460,000 |
NYC GO DRIVERS
|
7.638 | 8/1/30 | 5,481,731 | ||||||||||||
2,430,000 |
NYC GO DRIVERS
|
8.376 | 8/1/35 | 2,429,781 | ||||||||||||
8,735,000 |
NYC GO DRIVERS
|
8.374 | 4/1/35 | 8,733,428 | ||||||||||||
5,745,000 |
NYC GO DRIVERS
|
8.375 | 3/1/35 | 5,744,081 | ||||||||||||
7,540,000 |
NYC GO ROLs
|
14.816 | 11/1/34 | 7,600,320 | ||||||||||||
4,480,000 |
NYC GO ROLs3
|
15.777 | 4/1/30 | 4,516,243 | ||||||||||||
8,900,000 |
NYC GO ROLs3
|
18.482 | 6/1/30 | 10,393,242 | ||||||||||||
5,000,000 |
NYC GO ROLs
|
15.390 | 3/1/21 | 7,088,200 | ||||||||||||
3,490,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
12.517 | 11/1/42 | 3,511,778 | ||||||||||||
920,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
10.736 | 11/1/26 | 867,146 | ||||||||||||
810,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
11.052 | 11/1/27 | 774,741 | ||||||||||||
1,000,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
11.096 | 11/1/32 | 868,810 | ||||||||||||
1,165,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
10.785 | 11/1/37 | 898,087 | ||||||||||||
1,560,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
10.912 | 11/1/39 | 1,187,238 | ||||||||||||
2,790,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
11.090 | 5/1/40 | 2,242,686 | ||||||||||||
775,000 |
NYC HDC (Multifamily Hsg.) DRIVERS3
|
15.980 | 11/1/34 | 792,236 | ||||||||||||
710,000 |
NYC HDC (Multifamily Hsg.) DRIVERS3
|
16.202 | 11/1/39 | 721,048 | ||||||||||||
2,730,000 |
NYC HDC (Multifamily Hsg.) DRIVERS3
|
16.707 | 11/1/46 | 2,803,164 | ||||||||||||
2,680,000 |
NYC HDC (Multifamily Hsg.) DRIVERS
|
11.285 | 11/1/40 | 2,237,880 | ||||||||||||
3,955,000 |
NYC HDC (Multifamily Hsg.) ROLs3
|
13.289 | 11/1/30 | 3,970,939 | ||||||||||||
11,905,000 |
NYC Hsg. Devel. Corp. (Multifamily Hsg.) ROLs3
|
10.568 | 5/1/49 | 10,483,424 | ||||||||||||
17,005,000 |
NYC Municipal Water Finance Authority DRIVERS
|
10.957 | 6/15/39 | 16,585,657 | ||||||||||||
6,875,000 |
NYC Municipal Water Finance Authority ROLs
|
14.801 | 6/15/31 | 6,994,075 | ||||||||||||
7,875,000 |
NYC Municipal Water Finance Authority ROLs
|
14.801 | 6/15/39 | 7,614,180 | ||||||||||||
4,935,000 |
NYC Municipal Water Finance Authority ROLs
|
14.801 | 6/15/39 | 4,771,553 | ||||||||||||
4,500,000 |
NYC Municipal Water Finance Authority ROLs
|
14.821 | 6/15/39 | 4,350,960 | ||||||||||||
10,470,000 |
NYC Municipal Water Finance Authority ROLs3
|
10.723 | 6/15/34 | 10,469,372 | ||||||||||||
8,205,000 |
NYS DA (Memorial Sloan-Kettering) DRIVERS
|
8.375 | 7/1/35 | 7,703,510 | ||||||||||||
5,265,000 |
NYS DA (Vassar College) DRIVERS
|
8.373 | 7/1/46 | 5,064,772 | ||||||||||||
3,410,000 |
NYS HFA ROLs3
|
12.168 | 11/1/45 | 2,993,946 | ||||||||||||
3,750,000 |
Port Authority NY/NJ ROLs3
|
17.817 | 9/15/28 | 4,389,000 | ||||||||||||
4,895,000 |
Port Authority NY/NJ, 11588th Series ROLs
|
13.517 | 10/15/27 | 4,296,146 | ||||||||||||
3,580,000 |
Port Authority NY/NJ, 11588th Series ROLs
|
12.721 | 10/15/28 | 2,600,011 | ||||||||||||
5,500,000 |
Port Authority NY/NJ, 11588th Series ROLs
|
13.524 | 10/15/32 | 4,397,085 | ||||||||||||
9,090,000 |
Port Authority NY/NJ, 11589th Series ROLs
|
10.017 | 9/1/29 | 6,597,522 | ||||||||||||
11,880,000 |
Port Authority NY/NJ, 136th Series DRIVERS
|
6.826 | 11/1/28 | 12,071,624 | ||||||||||||
11,430,000 |
Port Authority NY/NJ, 136th Series DRIVERS
|
8.413 | 11/1/29 | 11,728,094 | ||||||||||||
11,015,000 |
Port Authority NY/NJ, 136th Series DRIVERS
|
11.090 | 5/1/34 | 10,569,884 | ||||||||||||
13,000,000 |
Port Authority NY/NJ, 138th Series DRIVERS
|
7.115 | 12/1/34 | 11,222,900 | ||||||||||||
24,005,000 |
Port Authority NY/NJ, 151st Series DRIVERS
|
12.725 | 3/15/35 | 25,918,439 |
Principal | Coupon | Maturity | ||||||||||||||
Amount | Inverse Floater1 | Rate2 | Date | Value | ||||||||||||
$ | 4,570,000 |
Port Authority NY/NJ, 152nd Series DRIVERS
|
11.432 | % | 5/1/38 | $ | 4,267,283 | |||||||||
20,000,000 |
Port Authority NY/NJ, 3090th Series DRIVERS
|
7.990 | 11/1/35 | 19,262,000 | ||||||||||||
6,670,000 |
Port Authority NY/NJ, 3094th Series DRIVERS
|
10.966 | 3/15/39 | 6,474,302 | ||||||||||||
7,500,000 |
Port Authority NY/NJ, 3114th Series DRIVERS
|
12.740 | 11/1/30 | 8,341,950 | ||||||||||||
30,970,000 |
Port Authority NY/NJ, 3114th Series DRIVERS
|
7.990 | 11/1/35 | 29,827,207 | ||||||||||||
3,335,000 |
Port Authority NY/NJ, 3115th Series DRIVERS
|
12.734 | 3/15/35 | 3,600,833 | ||||||||||||
25,330,000 |
Port Authority NY/NJ, 37th Series DRIVERS
|
7.981 | 7/15/34 | 25,388,766 | ||||||||||||
4,750,000 |
Puerto Rico Aqueduct & Sewer Authority ROLs3
|
7.712 | 7/1/47 | 3,857,000 | ||||||||||||
15,000,000 |
Puerto Rico Aqueduct & Sewer Authority ROLs
|
7.898 | 7/1/47 | 13,590,000 | ||||||||||||
74,115,000 |
Puerto Rico Sales Tax Financing Corp. ROLs3
|
15.239 | 8/1/57 | 70,738,321 | ||||||||||||
23,815,000 |
Puerto Rico Sales Tax Financing Corp. ROLs3
|
17.096 | 8/1/57 | 27,093,849 | ||||||||||||
18,135,000 |
SONYMA ROLs3
|
6.360 | 10/1/34 | 16,166,990 | ||||||||||||
5,405,000 |
SONYMA ROLs3
|
11.639 | 4/1/29 | 5,403,541 | ||||||||||||
3,185,000 |
SONYMA ROLs3
|
11.765 | 4/1/29 | 3,096,043 | ||||||||||||
3,490,000 |
SONYMA ROLs3
|
12.022 | 4/1/29 | 3,489,058 | ||||||||||||
7,635,000 |
SONYMA ROLs3
|
11.668 | 4/1/34 | 6,257,951 | ||||||||||||
7,965,000 |
SONYMA ROLs3
|
11.779 | 10/1/28 | 7,916,732 | ||||||||||||
3,175,000 |
SONYMA ROLs3
|
11.120 | 10/1/26 | 2,922,016 | ||||||||||||
5,675,000 |
SONYMA ROLs3
|
7.488 | 10/1/37 | 4,564,516 | ||||||||||||
11,505,000 |
SONYMA ROLs3
|
7.156 | 10/1/31 | 9,601,843 | ||||||||||||
10,590,000 |
SONYMA ROLs3
|
7.239 | 10/1/37 | 7,713,332 | ||||||||||||
1,685,000 |
SONYMA, Series 145 DRIVERS
|
11.056 | 10/1/37 | 1,380,285 | ||||||||||||
650,000 |
SONYMA, Series 148 DRIVERS
|
11.167 | 10/1/27 | 626,152 | ||||||||||||
2,125,000 |
SONYMA, Series 148 DRIVERS
|
11.263 | 10/1/32 | 1,922,849 | ||||||||||||
|
||||||||||||||||
|
$ | 720,954,766 | ||||||||||||||
|
1. | For a list of abbreviations used in the Inverse Floater table see the Portfolio Abbreviations table on page 49 of the Statement of Investments. | |
2. | Represents the current interest rate for a variable rate bond known as an "inverse floater." | |
3. | Security is subject to a shortfall and forbearance agreement. |
Cost
|
$ | 9,464,634 | ||
Market Value
|
6,336,682 | |||
Market Value as a % of Net Assets
|
0.08 | % |
Net Unrealized | ||||||||||||
Depreciation Based | ||||||||||||
on Cost of Securities | ||||||||||||
Undistributed | Undistributed | Accumulated | and Other Investments | |||||||||
Net Investment | Long-Term | Loss | for Federal Income | |||||||||
Income | Gain | Carryforward1,2,3 | Tax Purposes | |||||||||
$97,352,096
|
$ | -- | $ | 767,968,879 | $ | 1,165,392,305 |
1. | As of December 31, 2010, the Fund had $767,968,879 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of December 31, 2010, details of the capital loss carryforwards were as follows: |
Expiring | ||||
2016
|
$ | 443,946,792 | ||
2017
|
324,022,087 | |||
|
||||
Total
|
$ | 767,968,879 | ||
|
2. | During the fiscal year ended December 31, 2010, the Fund utilized $82,464,272 of capital loss carryforward to offset capital gains realized in that fiscal year. | |
3. | During the fiscal year ended December 31, 2009, the Fund did not utilize any capital loss carryforward. |
Increase to | ||||
Increase to | Accumulated Net | |||
Accumulated Net | Realized Loss | |||
Investment Income | on Investments | |||
$3,711,832
|
$ | 3,711,832 |
Year Ended | Year Ended | |||||||
December 31, 2010 | December 31, 2009 | |||||||
Distributions paid from:
|
||||||||
Exempt-interest dividends
|
$ | 493,554,501 | $ | 483,128,325 | ||||
Ordinary income
|
7,318,051 | 5,679,298 | ||||||
Total
|
$ | 500,872,552 | $ | 488,807,623 | ||||
Federal tax cost of securities
|
$8,958,315,1611 | |||
|
||||
|
||||
Gross unrealized appreciation
|
$ | 148,888,126 | ||
Gross unrealized depreciation
|
(1,314,280,431 | ) | ||
|
||||
Net unrealized depreciation
|
$ | (1,165,392,305 | ) | |
|
1. | The Federal tax cost of securities does not include cost of $1,349,143,448, which has otherwise been recognized for financial reporting purposes, related to bonds placed into trusts in conjunction with certain investment transactions. See the Inverse Floating Rate Securities note above. |
Projected Benefit Obligations Increased
|
$ | 13,170 | ||
Payments Made to Retired Trustees
|
156,353 | |||
Accumulated Liability as of December 31, 2010
|
1,524,922 |
Year Ended December 31, 2010 | Year Ended December 31, 2009 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A
|
||||||||||||||||
Sold
|
38,467,717 | $ | 625,354,867 | 52,833,970 | $ | 734,465,418 | ||||||||||
Dividends and/or distributions reinvested
|
16,612,352 | 269,611,844 | 18,725,703 | 263,340,510 | ||||||||||||
Redeemed
|
(84,858,562 | ) | (1,365,814,020 | ) | (78,201,654 | ) | (1,126,486,207 | ) | ||||||||
Net decrease
|
(29,778,493 | ) | $ | (470,847,309 | ) | (6,641,981 | ) | $ | (128,680,279 | ) | ||||||
|
||||||||||||||||
Class B
|
||||||||||||||||
Sold
|
1,128,811 | $ | 18,352,363 | 1,279,319 | $ | 17,832,175 | ||||||||||
Dividends and/or distributions reinvested
|
484,918 | 7,859,585 | 669,108 | 9,331,312 | ||||||||||||
Redeemed
|
(5,512,809 | ) | (89,163,873 | ) | (6,780,297 | ) | (93,322,663 | ) | ||||||||
Net decrease
|
(3,899,080 | ) | $ | (62,951,925 | ) | (4,831,870 | ) | $ | (66,159,176 | ) | ||||||
Year Ended December 31, 2010 | Year Ended December 31, 2009 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class C
|
||||||||||||||||
Sold
|
8,509,316 | $ | 138,036,770 | 12,413,734 | $ | 173,659,196 | ||||||||||
Dividends and/or distributions reinvested
|
2,960,215 | 47,982,936 | 3,332,430 | 46,733,925 | ||||||||||||
Redeemed
|
(18,070,599 | ) | (289,927,378 | ) | (14,484,787 | ) | (207,236,535 | ) | ||||||||
Net increase (decrease)
|
(6,601,068 | ) | $ | (103,907,672 | ) | 1,261,377 | $ | 13,156,586 | ||||||||
|
||||||||||||||||
Class Y
|
||||||||||||||||
Sold
|
3,832,057 | $ | 61,864,893 | 1,122,715 | $ | 15,728,107 | ||||||||||
Dividends and/or distributions reinvested
|
275,265 | 4,468,978 | 224,183 | 3,162,851 | ||||||||||||
Redeemed
|
(1,673,355 | ) | (26,938,738 | ) | (1,062,727 | ) | (15,261,452 | ) | ||||||||
Net increase
|
2,433,967 | $ | 39,395,133 | 284,171 | $ | 3,629,506 | ||||||||||
Purchases | Sales | |||||||
Investment securities
|
$ | 679,005,735 | $ | 1,165,658,463 |
Fee Schedule | ||||
Up to $100 million
|
0.54 | % | ||
Next $150 million
|
0.52 | |||
Next $1.75 billion
|
0.47 | |||
Next $3 billion
|
0.46 | |||
Next $3 billion
|
0.45 | |||
Next $6 billion
|
0.44 | |||
Over $14 billion
|
0.42 |
Class B
|
$ | 32,477,933 | ||
Class C
|
32,901,762 |
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 | ||||||||||||
December 31, 2010
|
$ | 1,268,171 | $ | 178,936 | $ | 427,377 | $ | 91,022 |
Average Daily Loan Balance
|
$ | 59,415,890 | ||
Average Daily Interest Rate
|
0.304 | % | ||
Fees Paid
|
$ | 3,144,452 | ||
Interest Paid
|
$ | 147,567 |
Rochester Fund Municipals
Website
www.oppenheimerfunds.com
Investment Adviser
OppenheimerFunds, Inc.
Two World Financial Center
225 Liberty Street, 11th Floor
New York, New York 10281-1008
Distributor
OppenheimerFunds Distributor, Inc.
Two World Financial Center
225 Liberty Street, 11th Floor
New York, New York 10281-1008
Transfer Agent
OppenheimerFunds Services
P.O. Box 5270
Denver, Colorado 80217
1.800.CALL OPP (225.5677)
Custodian Bank
Citibank, N.A.
111 Wall Street
New York, New York 10005
Independent Registered Public Accounting Firm
KPMG LLP
707 Seventeenth Street
Denver, Colorado 80202
Legal Counsel
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036
PX0365.001.0311 |
ROCHESTER FUND MUNICIPALS
FORM N-1A
PART C
OTHER INFORMATION
Item 28. Exhibits
(a) (i) Amended and Restated Declaration of Trust dated 6/26/09: Previously filed with Registrant's Post-Effective Amendment No. 35 filed 1/29/10, and incorporated herein by reference.
(b) (i) Amended & Restated Bylaws dated 06/26/09: Previously filed with Registrant's Post-Effective Amendment No. 35 filed 1/29/10, and incorporated herein by reference.
(c) (i) Class A Specimen Share Certificate: Previously filed with Registrant’s Post Effective Amendment No. 26 filed 4/29/02, and incorporated herein by reference.
(ii) Class B Specimen Share Certificate: Previously filed with Registrant’s Post Effective Amendment No. 26 filed 4/29/02, and incorporated herein by reference.
(iii) Class C Specimen Share Certificate: Previously filed with Registrant’s Post Effective Amendment No. 26 filed 4/29/02, and incorporated herein by reference.
(iv) Class Y Specimen Share Certificate: Previously filed with Registrant’s Post Effective Amendment No. 26 filed 4/29/02, and incorporated herein by reference.
(d) Amended and Restated Investment Advisory Agreement dated 9/1/07 with OppenheimerFunds, Inc.: Previously filed with Registrant's Post Effective Amendment No. 34 filed 4/30/09, and incorporated herein by reference.
(e) (i) General Distributor’s Agreement dated 1/4/96 with Oppenheimer Funds Distributor, Inc.: Filed with Registrant’s Post Effective Amendment No. 16 filed 1/11/96, and incorporated herein by reference.
(ii) Form of Dealer Agreement of OppenheimerFunds Distributor, Inc.: Previously filed with Post-Effective Amendment No. 34 to the Registration Statement of Oppenheimer Main Street Funds, Inc. (Reg. No. 33-17850), 10/23/06, and incorporated herein by reference.
(iii) Form of Broker Agreement of OppenheimerFunds Distributor, Inc.: Previously filed with Post-Effective Amendment No. 34 to the Registration Statement of Oppenheimer Main Street Funds, Inc. (Reg. No. 33-17850), 10/23/06, and incorporated herein by reference.
(iv) Form of Agency Agreement of OppenheimerFunds Distributor, Inc.: Previously filed with Post-Effective Amendment No. 34 to the Registration Statement of Oppenheimer Main Street Funds, Inc. (Reg. No. 33-17850), 10/23/06, and incorporated herein by reference.
(v) Form of Trust Company Fund/SERV Purchase Agreement of OppenheimerFunds Distributor, Inc.: Previously filed with Post-Effective Amendment No. 45 to the Registration Statement of Oppenheimer High Yield Fund (Reg. No. 2-62076), 10/26/01, and incorporated herein by reference.
(vi) Form of Trust Company Agency Agreement of OppenheimerFunds Distributor, Inc.: Previously filed with Post-Effective Amendment No. 34 to the Registration Statement of Oppenheimer Main Street Funds, Inc. (Reg. No. 33-17850), 10/23/06, and incorporated herein by reference.
(f) (i) Amended and Restated Retirement Plan for Non-Interested Trustees or Directors dated 1/01/05: Previously filed with Post-Effective Amendment No. 4 to the Registration Statement of Oppenheimer Portfolio Series (Reg. No. 333-121449), (5/29/09), and incorporated herein by reference.
(ii) Amended & Restated Compensation Deferral Plan for Eligible Trustees, effective 1/1/08: Previously filed with Post-Effective Amendment No. 4 to the Registration Statement of Oppenheimer Portfolio Series (Reg. No. 333-121449), (5/29/09), and incorporated herein by reference.
(g) (i) Global Custodial Services Agreement dated May 3, 2001 as amended from time to time: Previously filed with Post-Effective Amendment No. 33 to the Registration Statement of Centennial Money Market Trust (Reg. No. 2-65245), (10/25/01), and incorporated herein by
reference.
(ii) Amendment dated December 9, 2010 to the Global Custodial Services Agreement: Previously filed with Post-Effective Amendment No.53 to the Registration Statement of Oppenheimer U.S. Government Trust (Reg. No. 2-76645) (12/22/10), and incorporated herein by reference.
(iii) Amendment dated March 7, 2011 to the Global Custodial Services Agreement: Previously filed with Post-Effective Amendment No. 28 to the Registration Statement of Rochester Portfolio Series (Reg. 33-41511) (3/29/11), and incorporated herein by reference.
(iv) Amended and Restated Foreign Custody Manager Agreement dated May 31, 2001, as amended July 15, 2003: Previously filed with Pre-Effective Amendment No. 1 to the Registration Statement of Oppenheimer International Large-Cap Core Trust (Reg. No. 333-106014), (8/5/03), and incorporated herein by reference.
(h) Not applicable.
(i) Opinion and Consent of Counsel: Incorporated herein by reference to the Registrant’s Rule 24f-2 Notice filed on 2/27/97.
(j) Independent Registered Public Accounting Firm’s Consent: Filed herewith.
(k) Not applicable.
(l) (i) Form of Investment Letter dated March 1997, regarding Class B shares from OppenheimerFunds, Inc.: Previously filed with Registrant’s Post-Effective Amendment No. 19 filed 3/14/97, and incorporated herein by reference.
(ii) |
Form of Investment Letter dated March 1997, regarding Class C shares from OppenheimerFunds, Inc.: Previously filed with Registrant’s Post-Effective Amendment No. 19 filed 3/14/97, and incorporated herein by reference. |
(m) (i) Amended and Restated Service Plan and Agreement with OppenheimerFunds Distributor, Inc. for Class A Shares dated 10/06/05: Previously filed with Registrant’s Post-Effective Amendment No. 31 filed 4/28/06, and incorporated herein by reference.
(ii) Amended and Restated Distribution and Service Plan and Agreement with OppenheimerFunds Distributor, Inc. for Class B Shares dated 10/06/05 under Rule 12b-1 of the Investment Company Act of 1940: Previously filed with Registrant’s Post-Effective Amendment No. 31 filed 4/28/06, and incorporated herein by reference.
(iii) Amended and Restated Distribution and Service Plan and Agreement with OppenheimerFunds Distributor, Inc. for Class C Shares dated 10/06/05 under Rule 12b-1 of the Investment Company Act of 1940: Previously filed with Registrant’s Post-Effective Amendment No. 31 filed 4/28/06, and incorporated herein by reference.
(n) Oppenheimer Funds Multiple Class Plan under Rule 18f-3 updated through 9/17/09: Previously filed with the Post-Effective Amendment No. 16 to the Registration Statement of Oppenheimer Main Street Small Cap Fund (Reg. No. 333-78269), (10/2/09), and incorporated herein by reference.
(o) Power of Attorney dated March 3, 2010 for all Trustees/Directors and Officers: Previously filed with the Post-Effective Amendment No. 21 to the Registration Statement of Oppenheimer International Growth Fund (Reg. No. 333-00201), (3/24/10), and incorporated herein by reference.
(p) Amended and Restated Code of Ethics of the Oppenheimer Funds dated November 30, 2007, as revised January 18, 2011 under Rule 17j-1 of the Investment Company Act of 1940: Previously filed with Post-Effective Amendment No. 99 to the Registration Statement of Oppenheimer Equity Fund, Inc., (Reg. No. 2-11052), (3/28/11), and incorporated herein by reference.
Item 29. Persons Controlled by or under Common Control with Registrant
None.
Item 30. Indemnification
Reference is made to the provisions of Article IX of Registrant’s Amended and Restated Declaration of Trust filed as Exhibit 28(a) to this Registration Statement, and incorporated herein by reference.
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person, Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
Item 31. Business and Other Connections of Investment Adviser
(a) OppenheimerFunds, Inc. is the investment adviser of the Registrant; it and certain subsidiaries and affiliates act in the same capacity to other investment companies, including without limitation those described in Parts A and B hereof and listed in Item 31(b) below.
(b) There is set forth below information as to any other business, profession, vocation or employment of a substantial nature in which each officer and director of OppenheimerFunds, Inc. is, or at any time during the past two fiscal years has been, engaged for his/her own account or in the capacity of director, officer, employee, partner or trustee.
Name and Current Position with OppenheimerFunds, Inc. |
Other Business and Connections During the Past Two Years |
Timothy L. Abbuhl, Senior Vice President |
Treasurer of Centennial Asset Management Corporation; Vice President of OFI Institutional Asset Management, Inc., Trinity Investment Management Corporation and OFI Trust Company; Assistant Treasurer of Oppenheimer Acquisition Corp.; Vice President and Assistant Treasurer of OppenheimerFunds Distributor, Inc. |
Patrick Adams |
None |
Robert Agan, |
Senior Vice President of Shareholder Financial Services, Inc., OFI Institutional Asset Management, Inc. and Shareholders Services, Inc.; Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and OFI Private Investments Inc. |
Obianyo Akunwafor, |
None. |
Carl Algermissen, |
Assistant Secretary of Centennial Asset Management Corporation. |
Ramesh Allu, |
Formerly VP of Business Solutions at Equant Solutions (July 2008 – July 2010). |
Michael Amato, |
None |
Nicole Andersen, |
None |
Konstantin Andreev, |
None |
Raymond Anello, |
Formerly Portfolio Manager of Dividend Strategy/Sector Analyst for Energy/Utilities at RS Investments (June 2007– April 2009). |
Janette Aprilante, |
Secretary (since December 2001) of: Centennial Asset Management Corporation, OppenheimerFunds Distributor, Inc., HarbourView Asset Management Corporation (since June 2003), Oppenheimer Real Asset Management, Inc., Shareholder Financial Services, Inc., Shareholder Services, Inc., Trinity Investment Management Corporation (since January 2005), OppenheimerFunds Legacy Program, OFI Private Investments Inc. (since June 2003) and OFI Institutional Asset Management, Inc. (since June 2003). Assistant Secretary of OFI Trust Company (since December 2001). |
Daryl Armstrong, |
None |
Hany S. Ayad, |
None |
Paul Aynsley, |
None |
James F. Bailey, |
Senior Vice President of Shareholder Services, Inc. (since March 2006). |
Robert Baker, |
None |
John Michael Banta, |
None |
Anthony Barbato, |
None |
Michael Barnes, |
None |
Adam Bass, |
None |
Kevin Baum, |
None |
Jeff Baumgartner, |
Vice President of HarbourView Asset Management Corporation. |
Kathleen Beichert, |
Vice President of OppenheimerFunds Distributor, Inc. |
Joseph Bejarano, |
None |
Emanuele Bergagnini, Vice President |
Assistant Vice President of OFI Institutional Asset Management, Inc. |
Robert Bertucci, Assistant Vice President: Rochester Division |
None |
Rajeev Bhaman, |
Vice President of OFI Institutional Asset Management, Inc. |
Ross Bielak, |
Formerly a senior manager at Sapient Corporation (April 2004 – January 2010). |
Adam Bierstedt, |
Formerly a manager in the Business Controller Group at OppenheimerFunds, Inc. (February 2006 – January 2010). |
Craig Billings, |
None |
Mark Binning, Assistant Vice President |
None |
Donal Bishnoi, Assistant Vice President |
None |
Beth Bleimehl, |
None |
Lisa I. Bloomberg, |
Assistant Secretary of Oppenheimer Real Asset Management, Inc. |
Veronika Boesch, |
None |
Chad Boll, |
None |
Michelle Borre Massick, |
None |
Lori E. Bostrom, |
Assistant Secretary of OppenheimerFunds Legacy Program. |
John Boydell, |
None |
Richard Britton, |
None |
Jack Brown, |
Assistant Secretary of HarbourView Asset Management Corporation. |
Roger Buckley, |
None |
Joy Budzinski, |
None |
Carla Buffulin, |
None |
Stephanie Bullington, |
None |
Julie Burke, |
None |
Lisa Burke, |
Previously a Manager and OppenheimerFunds, Inc. |
Mark Burns, |
None |
JoAnne Butler, |
None |
Christine Calandrella, |
None |
Michael Camarella, |
None |
Edward Campbell, |
Formerly a Manager at OppenheimerFunds, Inc. (February 2007 – January 2011). |
Debra Casey, |
None |
Herman Chan, |
None |
Ronald Chibnik, |
None |
Patrick Sheng Chu, |
None |
Jennifer Clark, |
Assistant Vice President at Shareholder Financial Services, Inc., Shareholder Services, Inc., and OFI Private Investments Inc. |
H.C. Digby Clements, |
None |
Thomas Closs, |
None |
Darrin Clough, |
Formerly an Intermediate/Senior Analyst (April 2009 – June 2010) and Senior Analyst at OppenheimerFunds, Inc. |
David Cole, |
None |
Tamara Colorado, |
None |
Eric Compton, |
None |
Scott Cottier, |
None |
William Couch, |
None |
Stephanie Colca, |
None. |
Geoffrey Craddock |
Formerly Senior Vice President and Head of Market Risk Management for CIBC. |
Terry Crady, |
Formerly IT Development Manager at OppenheimerFunds, Inc. |
Roger W. Crandall, |
President, Director and Chief Executive Officer of Massachusetts Mutual Life Insurance Company; Chairman of the Board & Class A Director of Oppenheimer Acquisition Corp. |
Lisa Crotty, |
None |
Jerry Cubbin, |
Formerly a Consultant at National Australia Bank, (May 2009 – October 2009), and a Consultant at Magnitude Capital, (November 2008 – May 2009). |
George Curry, |
Vice President of OppenheimerFunds Distributor, Inc. |
Rushan Dagli, |
Vice President of OFI Private Investments Inc., Shareholder Financial Services, Inc. and Shareholder Services, Inc. |
John Damian, |
Vice President of OFI Institutional Asset Management, Inc. |
Robert Dawson, |
None |
John Delano, |
None |
Madeline Delianides, |
None |
Kendra Delisa, |
None |
Alessio de Longis, |
None |
Brendan Deasy, |
None |
Damaris De Los Santos, |
None |
Richard Demarco, Assistant Vice President |
None |
Mark Demitry, Vice President |
None |
Robin Dey, Vice President |
None |
Craig P. Dinsell, |
None |
Randall C. Dishmon, |
None |
Ryan Dolan, |
None |
Steven D. Dombrower, |
Senior Vice President of OFI Private Investments Inc.; Vice President of OppenheimerFunds Distributor, Inc. |
Alicia Dopico, |
None |
Andrew Doyle, |
Formerly First Vice President, head of Global Wealth Management Rewards and Information Services at Bank of America (March 2006 – March 2009). |
Thomas Doyle, |
None |
Adam Drvenkar, |
None |
Robert Dunphy, |
Formerly Intermediate Analyst at OppenheimerFunds, Inc (August 2004 – May 2009). |
Brian Dvorak, |
None |
Taylor Edwards, |
None |
Peter Elder, |
None |
Peter Ellman, |
None |
Christopher Emanuel, |
None |
Daniel R. Engstrom, |
None |
James Robert Erven, |
None |
Dana Espinel, |
Senior Meetings Events Manager at Wolters Kluwer (May 2007 – October 2010) |
George R. Evans, |
None |
Kathy Faber, |
None |
David Falicia, |
Assistant Secretary (as of July 2004) of HarbourView Asset Management Corporation. |
Matthew Farkas, |
None |
Kristie Feinberg, |
Assistant Treasurer of Oppenheimer Acquisition Corp., Centennial Asset Management Corp., OFI Trust Company; Vice President of OFI Institutional Asset Management, Inc.; Treasurer of OppenheimerFunds Legacy Program, OFI Private Investments Inc.; Oppenheimer Real Asset Management, Inc. and HarbourView Asset Management Corporation. |
Emmanuel Ferreira, |
None |
Steven Fling, |
None |
Colleen M. Franca, |
None |
Debbie Francis, |
None |
Dominic Freud, |
None |
Marcus Franz, |
None |
Arthur Gabinet, |
Executive Vice President (since May 2010) and General Counsel (since January 2011) of the Manager; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (since January 2011); Executive Vice President and General Counsel of HarbourView Asset Management Corporation (since January 2011); Assistant Secretary (since January 2011) and Director (since January 2011) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since January 2011); Director of Oppenheimer Real Asset Management, Inc. (since January 2011); Executive Vice President and General Counsel of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President and General Counsel of OFI Private Investments, Inc. (since January 2011); Vice President of OppenheimerFunds Legacy Program (since January 2011); Vice President of Oppenheimer Acquisition Corp (since February 2011); Executive Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Manager (May 2010-December 2010); (Principal, The Vanguard Group (November 2005-April 2010). |
Hazem Gamal, |
None |
Charles Gapay, |
None |
Anthony W. Gennaro, Jr., |
Formerly a sector manager for media, internet and telecom and a co-portfolio manager for mid-cap portfolios with the RS Core Equity Team of RS Investment Management Co. LLC (October 2006 – April 2009.); Vice President of OFI Institutional Asset Management, Inc. |
Timothy Gerlach, |
None |
Charles Gilbert, |
None |
Alan C. Gilston, |
Director of OFI Trust Company |
Edward Gizzi, |
Associate at Willkie Farr & Gallagher, LLP (February 2006 – October 2010). |
William F. Glavin, Jr., Chairman, Chief Executive Officer, President and Director |
Formerly Executive Vice President and co-Chief Operating Officer of MassMutual Financial Group; Director of OFI Institutional Asset Management, Inc. Tremont Group Holdings, Inc. and Oppenheimer Real Asset Management, Inc.; Chief Executive Officer, President & Management Director of Oppenheimer Acquisition Corp. |
Jill E. Glazerman, |
None |
Kevin Glenn, |
None |
Manind Govil, |
Formerly portfolio manager with RS Investment Management Co. LLC (October 2006 – May 2009); Senior Vice President of OFI Institutional Asset Management, Inc. |
Raquel Granahan, |
Senior Vice President of OFI Private Investments Inc.; Vice President of OppenheimerFunds Distributor, Inc., and OppenheimerFunds Legacy Program. |
Robert B. Grill, |
None |
Samuel Groban, |
None |
Selin Gulcelik, |
None |
Marilyn Hall, |
None |
Cheryl Hampton, |
Formerly Vice President and Director of Mutual Fund and Hedge Fund Operations at Calamos Advisors LLC (March 2007 – September 2009). |
Kelly Haney, |
None |
Jason Harubin, |
None |
Steve Hauenstein, |
None |
Molly Hausmann, |
None |
Thomas B. Hayes, |
None |
Heidi Heikenfeld, |
None |
Lori Heinel |
Formerly a managing director and head of investment solutions at Citi Private Bank |
Nicholas Henry, |
Formerly a Product Analyst at OppenheimerFunds, Inc. (June 2007 – February 2011). |
Philipp Hensler, |
Formerly CEO, Chairman and Managing Director at DWS Investment Distributors, Inc.; Director, Chairman of the Board & President of OppenheimerFunds Distributor, Inc; Chairman, Chief Executive Officer & Director of Centennial Asset Management, Inc. |
Kenneth Herold, |
None |
Robert Herz, |
Formerly a Managing Director at John W. Bristol & Co., Inc. (May 2003 – January 2011). |
Benjamin Hetrick, |
None |
Joseph Higgins, |
Vice President of OFI Institutional Asset Management, Inc and OFI Private Investments Inc. |
Todd Hiller, |
None |
Dorothy F. Hirshman, |
None |
Daniel Hoelscher, |
None |
Craig Holloway, |
None |
Lucienne Howell, |
None |
Brian Hourihan, |
Assistant Secretary of OFI Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., HarbourView Asset Management Corporation, OFI Institutional Asset Management, Inc. (since April 2006) and Trinity Investment Management Corporation; Secretary of OFI Trust Company. |
Edward Hrybenko, Senior Vice President |
Vice President of OppenheimerFunds Distributor, Inc. |
Jason Hubersberger, Vice President |
None |
Douglas Huffman, |
None |
Margaret Hui, Vice President |
Vice President of HarbourView Asset Management Corporation. |
Dana Hunter, Assistant Vice President |
None |
John Huttlin, Vice President |
Senior Vice President (Director of the International Division) (since January 2004) of OFI Institutional Asset Management, Inc.; Director (since June 2003) of OppenheimerFunds International Distributor Limited. |
Kelly Bridget Ireland, |
None |
Kathleen T. Ives, |
Vice President and Assistant Secretary of OppenheimerFunds Distributor, Inc. and Shareholder Services, Inc.; Assistant Secretary of Centennial Asset Management Corporation, HarbourView Asset Management Corporation, OppenheimerFunds Legacy Program and Shareholder Financial Services, Inc. |
Frank V. Jennings, |
None |
Lisa Kadehjian, Vice President |
None |
Rezo Kanovich, Vice President |
None |
Amee Kantesaria, Vice President, Assistant Secretary and Assistant Counsel |
Assistant Secretary of Oppenheimer Acquisition Corp. |
Cem Karacadag, Vice President |
None |
Thomas W. Keffer, |
Senior Vice President of OppenheimerFunds Distributor, Inc. |
Sean Keller, |
None |
James Kennedy, |
None |
John Kiernan, |
None |
Robert Kinsey, |
None |
Audrey Kiszla, |
None |
Daniel Kohn, |
None |
Samuel Koren, |
None |
Martin S. Korn, |
None |
Michael Kotlarz, |
None |
Lisa A. Krahl, |
None |
Brian Kramer, |
Assistant Treasurer of Oppenheimer Acquisition Corp. |
Magnus Krantz, |
Formerly an Analyst at RS Investments (December 2005 – May 2009). |
Alexander Kurinets, |
None |
Gloria LaFond, |
None |
Lisa Lamentino, |
None |
Eric Larson, |
Formerly Senior Equity Trader at RS Investments (October 2006 – May 2009). |
Gayle Leavitt, |
None |
John Lech, |
None |
Helena Lee, |
Previously an associate at Citigroup (October 2006 – February 2011). |
Johnny C. Lee, |
None |
Victor Lee, |
None |
Young-Sup Lee, |
None. |
Randy Legg, |
None |
Michael Leskinen, |
None |
Michael S. Levine, |
None |
Brian Levitt, |
None |
Justin Leverenz, |
None |
William M. Levey, |
Formerly an attorney at Seward & Kissel LLP (September 2005 – April 2009). |
Gang Li, |
None |
Shanquan Li, |
None |
Julie A. Libby, |
President and Chief Operating Officer of OFI Private Investments Inc. |
Mitchell J. Lindauer, |
None |
William Linden, |
None |
Jay Lisowski, |
None |
Justin Livengood, |
None |
Christina Loftus, |
None |
David P. Lolli, |
None |
Daniel G. Loughran, |
None |
Misha Lozovik, |
None |
Dongyan Ma, |
None |
Amrish Makwana, |
Previously a Vice President at Loomis Sayles & Co. (November 2004 – March 2007). |
Dana Mangnuson, |
None |
Daniel Martin, |
None |
Kenneth Martin, |
Formerly a Compliance Officer at Merrill Lynch & Co. (May 2007 – August 2009). |
William T. Mazzafro, |
None |
Melissa Mazer, |
None |
Neil McCarthy, |
Vice President of OFI Institutional Asset Management, Inc and OFI Private Investments Inc. |
Elizabeth McCormack, |
Vice President and Assistant Secretary of HarbourView Asset Management Corporation; Vice President of OFI Institutional Asset Management, Inc., and OFI Trust Company. |
Joseph McDonnell, |
None |
Annika McGovern, |
None |
Joseph McGovern, |
None |
Benedict Mclaughlin, |
Formerly a management associate at Citigroup (January 2007 – January 2010). |
William McNamara, |
Vice President of OFI Private Investments Inc. |
Michael Medev, |
None |
Krishna Memani, |
Senior Vice President of OFI Institutional Asset Management, Inc. |
Jay Mewhirter, |
None |
Andrew J. Mika, Senior Vice President |
None |
Jan Miller, Assistant Vice President |
None |
Scott Miller, Vice President |
None |
Rejeev Mohammed, Assistant Vice President |
None |
David Moore, Vice President |
None |
Sarah Morrison, |
None |
Jill Mulcahy, |
None |
Suzanne Murphy, |
Vice President of OFI Private Investments Inc. |
Thomas J. Murray, |
None |
Christina Nasta, |
Vice President of OppenheimerFunds Distributor, Inc. |
Amie Nelson, |
None |
Derek Newman, |
Formerly an associate at Dechert LLP |
Paul Newman, |
None |
James B. O’Connell, |
None |
Patricia O’Connor, |
None |
Matthew O’Donnell, |
None |
Lisa Ogren, |
None |
Tony Oh, |
None |
Kristina Olson, |
None |
Kristin Pak, |
None |
Lerae A. Palumbo, |
None |
Phillip Parrotta, |
None |
Kim Pascalau, |
Assistant Vice President of Shareholder Services, Inc. and Shareholder Financial Services, Inc. |
Robert H. Pemble, |
None |
Lori L. Penna, |
None |
Nadia Persaud, |
Formerly an associate at Sidley Austin, LLP. |
Brian Petersen, |
Assistant Treasurer of OppenheimerFunds Legacy Program. |
Marmeline Petion-Midy, |
None |
David Pfeffer, |
Management Director and Treasurer of Oppenheimer Acquisition Corp.; Director of OppenheimerFunds Distributor, Inc., OFI Private Investments Inc. and Oppenheimer Real Asset Management, Inc.; Director & Executive Vice President OFI Institutional Asset Management, Inc. and Trinity Investment Management Corporation; Senior Vice President of OFI Trust Company; Director & President of HarbourView Asset Management Corporation; Director of Shareholder Services, Inc., Centennial Asset Management Corporation, Tremont Group Holdings, Inc. and Shareholder Financial Services, Inc. |
James F. Phillips, |
None |
Gary Pilc, |
None |
Christine Polak, |
None |
Sergei Polevikov, |
None |
Jeffrey Portnoy, |
None |
Stacy Pottinger, |
None |
Christopher Proctor, |
None |
John Ptasinski, |
Formerly a Senior Manager at Jeppesen Sanderson, and Boeing Company (November 2003 – January 2011) |
Ellen Puckett, |
None |
Charlie Pulire, |
Formerly a Portfolio Analyst at Oppenheimer Funds, Inc. (February 2007 – December 2010). |
Jodi Pullman, |
None |
Paul Quarles, |
None |
Michael E. Quinn, |
None |
Julie S. Radtke, |
None |
Benjamin Ram, |
Sector manager at RS Investment Management Co. LLC (October 2006 – May 2009) and Portfolio Manager Mid Cap Strategies; Vice President of OFI Institutional Asset Management, Inc. |
Norma J. Rapini, Rochester Division |
None |
Amber Reilly, |
Manager (October 2008 – May 2009) at Newsday Media Group. |
Jill Reiter, |
None |
Barbara Reinhard, |
Formerly deputy Chief Investment Strategist at Morgan Stanley Smith Barney. |
Jill Reiter, |
None |
Maria Ribeiro De Castro, |
None |
Grace Roberts, |
None |
Benjamin Rockmuller, |
None |
Antoinette Rodriguez, |
None |
Lucille Rodriguez, |
None |
Michael Rollings, |
Executive Vice President and Chief Financial Officer of Massachusetts Mutual Life Insurance Company; Class A Director of Oppenheimer Acquisition Corp. |
Stacey Roode, |
Senior Vice President of OppenheimerFunds Legacy Program, Shareholder Financial Services, Inc. and Shareholder Services, Inc. |
Erica Rualo, |
None |
Adrienne Ruffle, |
Assistant Secretary of OppenheimerFunds Legacy Program and OFI Private Investments Inc. |
Gerald Rutledge, |
None |
Sean Ryan, |
None |
Gary Salerno, |
None |
Valerie Sanders, |
None |
Carlos Santiago |
None |
Kurt Savallo, |
Formerly Senior Business Analyst at OppenheimerFunds, Inc. |
Mary Beth Schellhorn, |
None |
Ellen P. Schoenfeld, |
None |
Patrick Schneider, |
None |
Scott A. Schwegel, |
None |
Allan P. Sedmak, |
None |
Matthew Severski, |
Formerly Lead IS Engineer at OppenheimerFunds, Inc. (August 2006 – May 2009). |
Jennifer L. Sexton, |
Senior Vice President of OFI Private Investments Inc. |
Asutosh Shah, |
None |
Kamal Shah, |
None |
Tammy Sheffer, |
None |
Richard Shepley, |
Managing Director at Deutsche Asset Management (January 1998 – March 2010). |
William Sheppard, |
None |
Mary Dugan Sheridan, |
None |
Nicholas Sherwood, |
None |
Joel Simon, |
Formerly Assistant Vice President at OppenheimerFunds, Inc. (1999 – 2009). |
David C. Sitgreaves, |
None |
Jan Smith, |
Formerly Manager at OppenheimerFunds Inc. (May 2005 – June 2009). |
Louis Sortino, |
None |
Keith J. Spencer, |
None |
Brett Stein, |
None |
Richard A. Stein, |
None |
Arthur P. Steinmetz, Executive Vice President & Chief Investment Officer |
Director and Senior Vice President of HarbourView Asset Management Corporation; Vice President of OFI Institutional Asset Management, Inc.; Director & President of Oppenheimer Real Asset Management, Inc. |
Jennifer Stevens, |
None |
Benjamin Stewart, |
None |
Wayne Strauss, |
None |
Peter Strzalkowski, |
Vice President of HarbourView Asset Management, Inc. |
Agata Strzelichowski, |
None |
Amy Sullivan, |
Assistant Secretary of HarbourView Asset Management, Inc. |
Michael Sussman, |
Vice President of OppenheimerFunds Distributor, Inc. |
Kanishka Surana, |
Partner and Director of Analytics at Ogilvy and Mather (May 2009 – July 2010); Manager at Gerson and Lehrman Group (October 2007 – May 2009). |
Kelly Thomas, |
None |
Igor Tishin, |
Formerly an employee at Troika Dialog USA (February 2005 – January 2011). |
Matthew Torpey, |
None |
Melinda Trujillo, |
None |
Leonid Tsvayg, |
None |
Keith Tucker, |
None |
Angela Uttaro, |
None |
Julie Van Cleave, |
None |
Mark S. Vandehey, |
Vice President and Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder Services, Inc.; Chief Compliance Officer of HarbourView Asset Management Corporation, Oppenheimer Real Asset Management, Inc., Shareholder Financial Services, Inc., Trinity Investment Management Corporation, OppenheimerFunds Legacy Program, OFI Private Investments Inc. and OFI Trust Company and OFI Institutional Asset Management, Inc. |
Maureen Van Norstrand, |
None |
Nancy Vann, |
None |
Raman Vardharaj, |
Formerly a sector manager and a senior quantitative analyst at RS Investment Management Co. LLC (October 2006 – May 2009); Vice President of OFI Institutional Asset Management, Inc. |
Rene Vecka, Rochester Division |
None |
Elaine Villas |
None |
Ryan Virag, |
None |
Jake Vogelaar, |
None |
Phillip F. Vottiero, |
None |
Mark Wachter, |
None |
Darren Walsh, |
President and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. |
Eliot Walsh, |
None |
Richard Walsh, |
Vice President of OFI Private Investments. |
Samuel Wang, Vice President |
Director (January 2010 – October 2010) and Vice President (November 2005 – December 2009) of Global Communications and Public Affairs at Citigroup, Inc. |
Elizabeth Ward, |
Senior Vice President and Chief Enterprise Risk Officer of Massachusetts Mutual Life Insurance Company; Class A Director of Oppenheimer Acquisition Corp. |
Thomas Waters, |
Vice President of OFI Institutional Asset Management, Inc. |
Margaret Weaver, |
None |
Jerry A. Webman, |
Senior Vice President of HarbourView Asset Management Corporation. |
Christopher D. Weiler, |
None |
Adam Weiner, |
None |
Christine Wells, |
None |
Joseph J. Welsh, |
Vice President of HarbourView Asset Management Corporation; Vice President of OFI Institutional Asset Management, Inc. |
Adam Wilde, |
Assistant Secretary of HarbourView Asset Management Corporation |
Troy Willis, Vice President, |
None |
Mitchell Williams, |
None |
Martha Willis, |
Formerly Executive Vice President of Investment Product Management at Fidelity Investments; Director of OFI Private Investments Inc., Centennial Asset Management Corporation; President & Director of OppenheimerFunds Legacy Program. |
Brian W. Wixted, Senior Vice President |
Treasurer of HarbourView Asset Management Corporation; OppenheimerFunds International Ltd., Oppenheimer Real Asset Management, Inc., Shareholder Services, Inc., Shareholder Financial Services, Inc., OFI Institutional Asset Management, Inc., OppenheimerFunds plc and OppenheimerFunds Legacy Program; Senior Vice President of OFI Private Investments Inc.; Treasurer and Chief Financial Officer of OFI Trust Company; Assistant Treasurer of Oppenheimer Acquisition Corp. |
Carol E. Wolf, |
Senior Vice President of HarbourView Asset Management Corporation; Vice President of OFI Institutional Asset Management, Inc. and Centennial Asset Management Corporation; serves on the Board of the Colorado Ballet. |
Oliver Wolff, |
Assistant Secretary of HarbourView Asset Management Corporation. |
Caleb C. Wong, |
Vice President of OFI Institutional Asset Management, Inc. |
Sookhee Yee, |
Vice President at Merrill Lynch Bank and Trust, FSB (February 2002 – May 2009). |
Edward C. Yoensky, |
None |
Geoff Youell, |
None |
Robert G. Zack, Executive Vice President |
Vice President, Secretary and General Counsel of OAC (since November 2001); Executive Vice President (since January 2004) and General Counsel (from March 2002 to December 2010) of the Manager; General Counsel of the Distributor (from December 2001 to December 2010); General Counsel of Centennial Asset Management Corporation (from December 2001 to December 2010); Senior Vice President and General Counsel of HarbourView Asset Management Corporation (from December 2001 to December 2010); Assistant Secretary (from September 1997 to December 2010) and Director (from November 2001 to December 2010) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (from December 2002 to December 2010); Director of Oppenheimer Real Asset Management, Inc. (from November 2001 to December 2010); Senior Vice President, General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (from December 2001 to December 2010); Senior Vice President, General Counsel and Director of OFI Private Investments, Inc. (from November 2001 to December 2010); Executive Vice President, General Counsel and Director of OFI Trust Company (since November 2001); Vice President OppenheimerFunds Legacy Program (from June 2003 to December 2010); Senior Vice President and General Counsel of OFI Institutional Asset Management, Inc. (from November 2001 to December 2010). |
Anna Zatulovskaya, |
None |
Sara Zervos, Senior Vice President |
None |
Ronald Zibelli, Jr. |
None |
Matthew Ziehl, |
Formerly a portfolio manager with RS Investment Management Co. LLC (from October 2006 – May 2009); |
The Oppenheimer Funds include the following:
Limited Term New York Municipal Fund (a series of Rochester Portfolio Series)
Oppenheimer Absolute Return Fund
Oppenheimer AMT-Free Municipals
Oppenheimer AMT-Free New York Municipals
Oppenheimer Balanced Fund
Oppenheimer California Municipal Fund
Oppenheimer Capital Appreciation Fund
Oppenheimer Capital Income Fund
Oppenheimer Cash Reserves
Oppenheimer Champion Income Fund
Oppenheimer Commodity Strategy Total Return Fund
Oppenheimer Core Bond Fund (a series of Oppenheimer Integrity Funds)
Oppenheimer Corporate Bond Fund
Oppenheimer Currency Opportunities Fund
Oppenheimer Developing Markets Fund
Oppenheimer Discovery Fund
Oppenheimer Emerging Markets Debt Fund
Oppenheimer Equity Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
Oppenheimer Global Fund
Oppenheimer Global Opportunities Fund
Oppenheimer Global Strategic Income Fund
Oppenheimer Global Value Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer International Bond Fund
Oppenheimer Institutional Money Market Fund
Oppenheimer International Diversified Fund
Oppenheimer International Growth Fund
Oppenheimer International Small Company Fund
Oppenheimer Limited Term California Municipal Fund
Oppenheimer Limited-Term Government Fund
Oppenheimer Limited Term Municipal Fund (a series of Oppenheimer Municipal Fund)
Oppenheimer Main Street Fund (a series of Oppenheimer Main Street Funds, Inc.)
Oppenheimer Main Street Select Fund
Oppenheimer Main Street Small- & Mid-Cap Fund
Oppenheimer Master Event-Linked Bond Fund, LLC
Oppenheimer Master Loan Fund, LLC
Oppenheimer Master Inflation Protected Securities Fund, LLC
Oppenheimer Master International Value Fund, LLC
Oppenheimer Money Market Fund, Inc.
Oppenheimer Multi-State Municipal Trust (3 series):
Oppenheimer New Jersey Municipal Fund
Oppenheimer Pennsylvania Municipal Fund
Oppenheimer Rochester National Municipals
Oppenheimer Portfolio Series (4 series)
Active Allocation Fund
Equity Investor Fund
Conservative Investor Fund
Moderate Investor Fund
Oppenheimer Portfolio Series Fixed Income Active Allocation Fund
Oppenheimer Principal Protected Main Street Fund III (a series of Oppenheimer Principal
Protected Trust III)
Oppenheimer Quest For Value Funds (3 series)
Oppenheimer Global Allocation Fund
Oppenheimer Quest Opportunity Value Fund
Oppenheimer Small- & Mid-Cap Value Fund
Oppenheimer Quest International Value Fund
Oppenheimer Real Estate Fund
Oppenheimer Rising Dividends Fund
Oppenheimer Rochester Arizona Municipal Fund
Oppenheimer Rochester Intermediate Term Municipal Fund
Oppenheimer Rochester Maryland Municipal Fund
Oppenheimer Rochester Massachusetts Municipal Fund
Oppenheimer Rochester Michigan Municipal Fund
Oppenheimer Rochester Minnesota Municipal Fund
Oppenheimer Rochester North Carolina Municipal Fund
Oppenheimer Rochester Ohio Municipal Fund
Oppenheimer Rochester Short Term Municipal Fund
Oppenheimer Rochester Virginia Municipal Fund
Oppenheimer Select Value Fund
Oppenheimer Senior Floating Rate Fund
Oppenheimer Series Fund, Inc. (1 series):
Oppenheimer Value Fund
Oppenheimer Small- & Mid-Cap Growth Fund
Oppenheimer Transition 2010 Fund
Oppenheimer Transition 2015 Fund
Oppenheimer Transition 2020 Fund
Oppenheimer Transition 2025 Fund
Oppenheimer Transition 2030 Fund
Oppenheimer Transition 2040 Fund
Oppenheimer Transition 2050 Fund
Oppenheimer U.S. Government Trust
Oppenheimer Variable Account Funds (11 series):
Oppenheimer Balanced Fund/VA
Oppenheimer Capital Appreciation Fund/VA
Oppenheimer Core Bond Fund/VA
Oppenheimer Global Securities Fund/VA
Oppenheimer Global Strategic Income Fund/VA
Oppenheimer High Income Fund/VA
Oppenheimer Main Street Fund/VA
Oppenheimer Main Street Small Cap Fund/VA
Oppenheimer Money Fund/VA
Oppenheimer Small- & Mid-Cap Growth Fund/VA
Oppenheimer Value Fund/VA
Panorama Series Fund, Inc. (3 series):
Growth Portfolio
Oppenheimer International Growth Fund/VA
Total Return Portfolio
Rochester Fund Municipals
The address of the Oppenheimer funds listed above, Shareholder Financial Services, Inc., Shareholder Services, Inc., Centennial Asset Management Corporation, and OppenheimerFunds Legacy Program is 6803 South Tucson Way, Centennial, Colorado 80112-3924.
The address of OppenheimerFunds, Inc., OppenheimerFunds Distributor, Inc., HarbourView Asset Management Corporation, Oppenheimer Acquisition Corp., OFI Private Investments Inc., OFI Institutional Asset Management, Inc. Oppenheimer Real Asset Management, Inc. and OFI Trust Company is Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008.
The address of OppenheimerFunds International Ltd. is 70 Sir John Rogerson’s Quay, Dublin 2, Ireland.
The address of Trinity Investment Management Corporation is 301 North Spring Street, Bellefonte, Pennsylvania 16823.
Item 32. Principal Underwriter
(a) OppenheimerFunds Distributor, Inc. is the Distributor of the Registrant's shares. It is also the Distributor of each of the other registered open-end investment companies for which OppenheimerFunds, Inc. is the investment adviser, as described in Part A and B of this Registration Statement and listed in Item 31(b) above (except Oppenheimer
Panorama Series Fund, Inc.) and for MassMutual Institutional Funds.
(b) The directors and officers of the Registrant's principal underwriter are:
Name & Principal |
Position & Office |
Position and Office |
Timothy Abbhul(1) |
Vice President and Treasurer |
None |
Robert Agan(1) |
Vice President |
None |
Anthony Allocco(2) |
Assistant Vice President |
None |
Janette Aprilante(2) |
Secretary |
None |
James Austin(1) |
Vice President |
None |
James Barker |
Vice President |
None |
Cesar Bastidas(2) |
Assistant Vice President |
None |
Kathleen Beichert(1) |
Senior Vice President |
None |
Rocco Benedetto(2) |
Vice President |
None |
Christopher Bergeron |
Vice President |
None |
Rick Bettridge 11504 Flowering Plum Lane Highland, UT 84003 |
Vice President |
None |
Adam Bilmes(2) |
Assistant Vice President |
None |
William Borders(2) |
Assistant Vice President |
None |
David A. Borrelli |
Vice President |
None |
Jeffrey R. Botwinick 4431 Twin Pines Drive |
Vice President |
None |
Sarah Bourgraf(1) |
Vice President |
None |
Bryan Bracchi 1124 Hampton Dr. |
Vice President |
None |
Joshua Broad(2) |
Vice President |
None |
Ken Brodsky(2) |
Vice President |
None |
Kevin E. Brosmith South Natlick, MA 01760 |
Senior Vice President |
None |
Jeffrey W. Bryan |
Vice President |
None |
Ross Burkstaller 211 Tulane Drive SE Albuquerque, NM 87106 |
Vice President |
None |
Michael Butler(2) |
Assistant Vice President |
None |
Tracy Cairoli(2) |
Vice President |
None |
Robert Caruso |
Vice President |
None |
Donelle Chisolm(2) |
Vice President |
None |
Andrew Chronofsky |
Vice President |
None |
Angelanto Ciaglia(2) |
Vice President |
None |
Nicholas Cirbo(1) |
Vice President |
None |
Kevin Clark(2) |
Assistant Vice President |
None |
Melissa Clayton(2) |
Vice President |
None |
John Corcoran(2) |
Vice President |
None |
Craig Colby(2) |
Vice President |
None |
Rodney Constable(1) |
Vice President |
None |
Cameron Cowden(2) |
Vice President |
None |
Neev Crane |
Vice President |
None |
Scott Curran(2) |
Vice President |
None |
Michael Daley |
Vice President |
None |
John Davis(2) |
Vice President |
None |
Stephen J. Demetrovits(2) |
Vice President |
None |
Brian Dietrich(1) |
Assistant Vice President |
None |
Steven Dombrower |
Vice President |
None |
Ryan Duffy(2) |
Vice President |
None |
Robert Dunphy(2) |
Vice President |
None |
Beth Arthur Du Toit(1) |
Vice President |
None |
Paul Eck 3055 Forest Ridge Court |
Vice President |
None |
Paul Eisenhardt(2) |
Senior Vice President |
None |
Kent M. Elwell |
Vice President |
None |
Rick Ernzen(2) |
Vice President |
None |
Dana Espinel(2) |
Assistant Vice President |
None |
Gregg A. Everett |
Vice President |
None |
George R. Fahey 9511 Silent Hills Lane |
Senior Vice President |
None |
Eric C. Fallon |
Vice President |
None |
Kristie Feinberg(2) |
Assistant Treasurer |
None |
Joseph Fernandez |
Vice President |
None |
Michael Ferrer(2) |
Vice President |
None |
Mark J. Ferro |
Senior Vice President |
None |
Eric P. Fishel |
Vice President |
None |
David Flaherty(2) |
Assistant Vice President |
None |
Patrick W. Flynn |
Senior Vice President |
None |
John (“J”) Fortuna(2) |
Vice President |
None |
Jayme D. Fowler |
Vice President |
None |
Diane Frankenfield(2) |
Senior Vice President |
None |
Jerry Fraustro(2) |
Vice President |
None |
William Friebel 2919 St. Albans Forest Circle |
Vice President |
None |
Alyson Frost(2) |
Assistant Vice President |
None |
Arthur S. Gabinet(2) |
General Counsel |
Secretary |
William Gahagan(2) |
Vice President |
None |
Charlotte Gardner(1) |
Vice President |
None |
David Goldberg(2) |
Assistant Vice President |
None |
Michael Gottesman |
Vice President |
None |
Raquel Granahan(2) |
Senior Vice President |
None |
Robert Grill(2) |
Senior Vice President |
None |
Eric Grossjung |
Vice President |
None |
Michael D. Guman |
Vice President |
None |
James E. Gunter 603 Withers Circle |
Vice President |
None |
Kevin J. Healy(2) |
Vice President |
None |
Kenneth Henry(2) |
Vice President |
None |
Philipp Hensler(2) |
Chairman, Chief Executive Officer & Director |
None |
Wendy G. Hetson(2) |
Vice President |
None |
Jennifer Hoelscher(1) |
Assistant Vice President |
None |
Eric Holquist(2) |
Vice President |
None |
Edward Hrybenko(2) |
Senior Vice President |
None |
Amy Huber(1) |
Assistant Vice President |
None |
Brian F. Husch |
Vice President |
None |
Keith Hylind(2) |
Vice President |
None |
Vincent Iacono(2) |
Vice President |
None |
Kathleen T. Ives(1) |
Vice President & Assistant Secretary |
Assistant Secretary |
Shonda Rae Jaquez(2) |
Vice President |
None |
Brian Johnson(1) |
Vice President |
None |
Eric K. Johnson 8588 Colonial Drive |
Senior Vice President |
None |
Elyse Jurman |
Vice President |
None |
Thomas Keffer(2) |
Senior Vice President |
Senior Vice President and Chief Business Officer |
Scott Kelley(1) |
Vice President |
None |
Brian Kiley(2) |
Vice President |
None |
Richard Klein Minneapolis, MN 55419 |
Senior Vice President |
None |
Brent A. Krantz 61500 Tam McArthur Loop |
Senior Vice President |
None |
Eric Kristenson(2) |
Vice President |
None |
Lamar Kunes(2) |
Vice President |
None |
David T. Kuzia 10258 S. Dowling Way Highlands Ranch, CO 80126 |
Vice President |
None |
John Laudadio(2) |
Vice President |
None |
Jesse Levitt(2) |
Vice President |
None |
Julie Libby(2) |
Senior Vice President |
None |
Eric J. Liberman 27 Tappan Ave., Unit West |
Vice President |
None |
Lorna Lindquist(2) |
Vice President |
None |
Malissa Lischin(2) |
Assistant Vice President |
None |
Christina Loftus(2) |
Senior Vice President |
None |
Thomas Loncar 1401 North Taft Street, Apt. 726 |
Vice President |
None |
Peter Maddox(2) |
Vice President |
None |
Michael Malik |
Vice President |
None |
Joseph Marich(2) |
Vice President |
None |
Steven C. Manns 1627 N. Hermitage Avenue |
Vice President |
None |
Todd A. Marion 24 Midland Avenue |
Vice President |
None |
LuAnn Mascia(2) |
Vice President |
None |
Anthony Mazzariello(2) |
Vice President |
None |
Derren McDaniel(1) |
Vice President |
None |
Michael McDonald 11749 S Cormorant Circle Parker, CO 80134 |
Vice President |
None |
John C. McDonough New Canaan, CT 06840 |
President and Director |
None |
Kent C. McGowan Edmonds, WA 98020 |
Vice President |
None |
Brian F. Medina 3009 Irving Street Denver, CO 80211 |
Vice President |
None |
Brian McGinty(1) |
Vice President |
None |
Toller Miller(1) |
Vice President |
None |
Clint Modler(1) |
Vice President |
None |
Joseph Moran(2) |
Senior Vice President |
None |
Robert Moser 9650 East Aspen Hill Circle Lone Tree, CO 80124 |
Vice President |
None |
David W. Mountford 7820 Banyan Terrace |
Vice President |
None |
James Mugno(2) |
Vice President |
None |
Matthew Mulcahy(2) |
Vice President |
None |
Wendy Jean Murray |
Vice President |
None |
Kimberly Mustin(2) |
Senior Vice President |
None |
John S. Napier 17 Hillcrest Ave. Darien, CT 06820 |
Senior Vice President |
None |
Christina Nasta(2) |
Senior Vice President |
None |
Kevin P. Neznek(2) |
Senior Vice President |
None |
Christopher Nicholson(2) |
Vice President |
None |
Chad Noel |
Vice President |
None |
Timothy O’Connell(2) |
Vice President |
None |
Janet Oleary(2) |
Vice President |
None |
Alan Panzer6755 Ridge Mill Lane |
Vice President |
None |
Anthony Parisi |
Vice President |
None |
Maria Paster(2) |
Assistant Vice President |
None |
Ashley Patten(1) |
Vice President |
None |
Brian C. Perkes Frisco, TX 75034 |
Vice President |
None |
Charles K. Pettit(2) |
Vice President |
None |
David Pfeffer(2) |
Director |
None |
Andrew Phillips(1) |
Assistant Vice President |
None |
Cheryl Pipia(2) |
Senior Vice President |
None |
Aaron Pisani(1) |
Vice President |
None |
Rachel Powers(1) |
Vice President |
None |
Nicole Pretzel(2) |
Vice President |
None |
David Preuss(2) |
Assistant Vice President |
None |
Minnie Ra 100 Dolores Street, #203 Carmel, CA 93923 |
Vice President |
None |
Dustin Raring |
Vice President |
None |
Michael A. Raso 3 Vine Place Larchmont, NY 10538 |
Vice President |
None |
Richard E. Rath |
Vice President |
None |
William J. Raynor(4) |
Vice President |
None |
Dennis Robinson(1) |
Vice President |
None |
Ian M. Roche |
Vice President |
None |
Michael Rock 9016 Stourbridge Drive |
Vice President |
None |
Stacy Roode(1) |
Vice President |
None |
Thomas Sabow |
Vice President |
None |
Mark Santero(2) |
Senior Vice President |
None |
John Saunders |
Vice President |
None |
Thomas Schmitt 40 Rockcrest Rd Manhasset, NY 11030 |
Vice President |
None |
William Schories |
Vice President |
None |
Jennifer Sexton(2) |
Vice President |
None |
Eric Sharp Woodland, CA 95695 |
Vice President |
None |
Kenneth Shell(1) |
Vice President |
None |
Debbie A. Simon Chicago, IL 60611 |
Vice President |
None |
Bryant Smith |
Vice President |
None |
Christopher M. Spencer |
Vice President |
None |
John A. Spensley 375 Mallard Court |
Vice President |
None |
Michael Staples 4255 Jefferson St Apt 328 Kansas City, MO 64111 |
Vice President |
None |
Alfred St. John(2) |
Vice President |
None |
Matthew Steckler(2) |
Vice President |
None |
Bryan Stein |
Vice President |
None |
Brian C. Summe Crestview Hills, KY 41017 |
Vice President |
None |
Michael Sussman(2) |
Vice President |
None |
George T. Sweeney Hummelstown, PA 17036 |
Senior Vice President |
None |
Leon Tallon(2) |
Vice President |
None |
Brian Taylor |
Vice President |
None |
James Taylor(2) |
Assistant Vice President |
None |
Paul Temple(2) |
Vice President |
None |
Troy Testa |
Vice President |
None |
David G. Thomas Leesburg, VA 20176 |
Vice President |
None |
Cenk Toroslu(1) |
Vice President |
None |
Wesley Vance(2) |
Vice President |
None |
Mark S. Vandehey(1) |
Vice President and Chief Compliance Officer |
Vice President and Chief Compliance Officer |
Vincent Vermette(2) |
Vice President |
None |
Teresa Ward(1) |
Vice President |
None |
Janeanne Weickum(1) |
Vice President |
None |
Michael J. Weigner Tampa, FL 33629 |
Vice President |
None |
Donn Weise Los Angeles, CA 90064 |
Vice President |
None |
Chris G. Werner 98 Crown Point Place Castle Rock, CO 80108 |
Vice President |
None |
Ryan Wilde(1) |
Vice President |
None |
Julie Wimer(2) |
Assistant Vice President |
None |
Peter Winters |
Vice President |
None |
Patrick Wisneski(1) |
Vice President |
None |
Meredith Wolff(2) |
Vice President |
None |
Cary Patrick Wozniak |
Vice President |
None |
David Zicchinella(2) |
Assistant Vice President |
None |
Steven Zito(1) |
Vice President |
None |
(1)6803 South Tucson Way, Centennial, CO 80112-3924
(2)Two World Financial Center, 225 Liberty Street, 11th Floor, New York, NY 10281-1008
(3)350 Linden Oaks, Rochester, NY 14623
(4)Independence Wharf, 470 Atlantic Avenue, 11th Floor, Boston, MA 02210
(c) Not applicable.
Item 33. Location of Accounts and Records
The accounts, books and other documents required to be maintained by Registrant pursuant to Section 31(a) of the Investment Company Act of 1940 and rules promulgated thereunder are in the possession of OppenheimerFunds, Inc. at its offices at 6803 South Tucson Way, Centennial, Colorado 80112-3924.
Item 34. Management Services
Not applicable
Item 35. Undertakings
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and/or the Investment Company Act of 1940, the Registrant certifies that it meets all the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York and State of New York on the 29th day of March, 2011.
ROCHESTER FUND MUNICIPALS
By: William F. Glavin, Jr.*
------------------------------------------------
William
F. Glavin, Jr., President,
Principal Executive Officer and Trustee
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities on the dates indicated:
Signatures Title Date
Brian F. Wruble* Chairman of the March 29, 2011
--------------------- Board of Trustees
Brian F. Wruble
William F. Glavin, Jr.* President, Principal Executive March 29, 2011
---------------------------- Officer and Trustee
William F. Glavin, Jr.
Brian W. Wixted* Treasurer, Principal Financial March 29, 2011
---------------------- and Accounting Officer
Brian W. Wixted
David K. Downes* Trustee March 29, 2011
-----------------------
David K. Downes
Matthew P. Fink* Trustee March 29, 2011
---------------------
Matthew P. Fink
Phillip A.
Griffiths* Trustee
March 29, 2011
------------------------
Phillip A. Griffiths
Mary F. Miller* Trustee March 29, 2011
-------------------
Mary F. Miller
Joel W. Motley* Trustee March 29, 2011
--------------------
Joel W. Motley
Mary Ann Tynan* Trustee March 29, 2011
----------------------
Mary Ann Tynan
Joseph M. Wikler*
----------------------- Trustee March 29, 2011
Joseph M. Wikler
Peter I. Wold*
----------------- Trustee March 29, 2011
Peter I. Wold
*By: /s/Mitchell J. Lindauer
-----------------------------------------------
Mitchell J. Lindauer, Attorney-in-Fact
FORM N-1A
ROCHESTER FUND MUNICIPALS
Registration Statement No. 37
EXHIBIT INDEX
Item No. Description
---------- --------------
28. (j) Independent Registered Public Accounting Firm’s Consent
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders of
Rochester Fund Municipals:
We consent to the use in this Registration Statement of Rochester Fund Municipals, of our report dated February 16, 2011, relating to the financial statements and financial highlights of Rochester Fund Municipals, appearing in the Statement of Additional Information, which is part of such Registration Statement, and to the references to our firm under the headings “Financial Highlights” appearing in the Prospectus, which is also part of such Registration Statement “Independent Registered Public Accounting Firm” appearing in the Statement of Additional Information.
/s/ KPMG LLP
KPMG LLP
Denver, Colorado
March 29, 2011