Item 1. Reports to Stockholders.
ANNUAL REPORT
Oppenheimer Rochester North Carolina Municipal Fund
Table of Contents
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 3/28/13*
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Class A Shares of the Fund
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Barclays Municipal
Bond Index
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Without Sales Charge
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With Sales Charge
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1-Year
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6.60
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%
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1.54
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%
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5.25
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%
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5-Year
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5.68
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4.66
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6.10
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Since Inception (10/10/06)
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2.92
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2.15
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5.32
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The performance data quoted represents past performance, which does not
guarantee future results.
The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than
their original cost. Fund returns include changes in share price, reinvested distributions, and a 4.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the
performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).
OppenheimerFunds/Rochester is using social media to provide timely information related to muni market developments at
www.twitter.com/RochesterFunds
.
*March 28, 2013, was the last business day of the Funds reporting period. Index returns are calculated through March 31, 2013.
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2
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Fund Performance Discussion
The Funds Class A shares produced an annual total return of 6.60% (without sales charge) for the 12 months ended March 28,
2013, the last business day of the reporting period. By comparison, the annual total return of the Funds benchmark, the Barclays Municipal Bond Index, was 5.25% for the same period. Despite a challenging interest-rate environment this
reporting period, the Fund generated a tax-free yield of 4.23% at net asset value, based on the 35-day accrual period ended March 26, 2013.
MARKET OVERVIEW
The municipal market continued to rally for much of this reporting period, despite sluggish economic growth and
declining muni prices in the first quarter of 2013. For the first nine months of this reporting period, investor demand remained strong and net inflows were the norm as income-seeking investors redirected assets into municipal bond funds.
AAA-rated municipal securities remained cheap to Treasuries during this reporting period, a condition that exists when nominal, pre-tax
muni yields exceed available Treasury yields. As of March 28, 2013, the average yield on 30-year, AAA-rated muni
bonds was 3.19%, down 32 basis points from March 30, 2012, the last business day of the Funds previous 12-month reporting period. On March 28, 2013, the average yield on 10-year, AAA-rated
muni bonds was 1.96%, down 18 basis points from the March 2012 date, and the average yield on 2-year, AAA-rated muni bonds was 0.33%, down 6 basis points from the March 2012 date. The current market conditions allow investors to earn higher nominal
yields on their muni holdings than on Treasuries and to benefit further from the federal, state and, where applicable, local tax exemptions on municipal investment
income.
YIELDS & DISTRIBUTIONS FOR CLASS A SHARES
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Dividend Yield w/o sales charge
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4.23
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%
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Dividend Yield with sales charge
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4.03
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Standardized Yield
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3.67
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Taxable Equivalent Yield
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7.03
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Last distribution (3/26/13)
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$0.043
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Total distributions (4/1/12 to 3/31/13)
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$0.574
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Endnotes for this discussion begin on page 13 of this report
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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3
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The Federal Reserve (the Fed) also provided good news for current muni bondholders this reporting period
as it repeatedly extended its timeframe for changing the Fed Funds target rate, the short-term interest rate it controls. At the outset of this reporting period, the rate stood at zero to 0.25% and the Feds expectation was that the rate would
likely remain very low until late 2014.
In September 2012, this timeframe was lengthened to mid-2015 and then, in December 2012, linked to the
unemployment rate. Rates will not move until unemployment is below 6.5%, the Fed announced, unless inflation rises above 2.5%. Given the current rates, the only plausible change would be an increase. We remind investors that a change in the Fed
Funds rate does not automatically translate into a change in longer-term interest rates, which are determined by the marketplace.
At a March 20,
2013, press conference, Federal Reserve Chairman Ben S. Bernanke discussed the Feds thinking: Were not measuring success in terms of the stock market. Were measuring success in terms of our mandate, which is stable employment
and price stability.
In the first half of this reporting period, North Carolina lawmakers passed a $20.2 billion state budget for fiscal 2013,
over the objections of then-Gov. Beverly Perdue. The budget process was, for the third consecutive
year, highly contentious as the executive and legislative branches held divergent positions about school funding. Citing the states already divisive environment and its
inability to reach bipartisan solutions for state funding, Gov. Perdue announced that she would not run for a second term.
In January 2013, Pat McCrory
became North Carolinas 74th governor. Gov. McCrory, the former mayor of Charlotte, is the first Republican to govern the state in 25 years. In February 2013, the state saved more than $45 million in debt service costs by refunding $319 million
in general obligation (G.O.) bonds. In a refunding, a municipal issuer seeks to reduce its debt service obligations by exercising the call feature on higher coupon bonds and then borrowing at lower interest rates. The G.O. bonds issued in February
replaced earlier bonds that financed a variety of transportation, university and community college projects.
Late in this reporting period, Gov.
McCrory released his first budget, which included proposals to hire more teachers, close five rural prisons, reduce the size of the attorney generals office, and give state employees a 1% salary increase. If enacted as is, more than half of
the budget would support North Carolinas school system, and $813 million would be added to the states rainy day fund over the next two fiscal years. Legislators initial reactions to the proposed spending plan were mixed and largely
correlated with party affiliations.
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4
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Throughout this reporting period, North Carolinas G.O. debt maintained AAA ratings from Standard &
Poors and Fitch Ratings and Aaa by Moodys Investors Service.
The average distribution yield in Lippers North Carolina Municipal Debt Funds category was 2.99% at the end of this
reporting period. At 4.23%, the distribution yield for this Funds Class A shares was 124 basis points higher than the category average.
Successful investors, we have found, maintain a long-term perspective regardless of the specific developments associated with any given reporting period. To maximize the benefits of municipal bond fund investing,
many investors reinvest their dividends and allow the income generated from their investments to compound over time.
FUND PERFORMANCE
Oppenheimer Rochester North Carolina Municipal Fund held more than 200 securities as of March 28, 2013. The Fund was invested in a broad range of
sectors, providing shareholders with a diversity of holdings that we believe would be difficult and costly to replicate in an individual portfolio.
As
bond prices rose this reporting period, declining municipal interest rates put pressure on the Class A dividend. The dividend, which stood at 5.3 cents per Class A share as of April 1, 2012, was lowered three times this reporting
period: it declined to 5.0 cents
per share in June 2012; to 4.5 cents per share in October 2012, and to 4.3 cents per share for the March 2013 payout.
Issuers preference for refundings remained strong this reporting period, further pressuring dividends throughout the muni bond fund industry. These transactions made it difficult for the Fund to replace the
called bonds with bonds that had equally attractive coupons. If the current climate persists, we believe that muni dividends industry-wide will continue to be similarly pressured.
Despite this pressure, Oppenheimer Rochester North Carolina Municipal Funds Class A shares generated a distribution yield of 4.23% at NAV, at the end of this reporting period. Lippers North
Carolina Municipal Debt Funds category reported an average distribution yield of 2.99% at months end, and the Class A shares had the second highest distribution yield in the category, trailing only the Y shares of this Fund.
Securities issued in the Commonwealth of Puerto Rico, which are exempt from federal, state and local income taxes, represented 32.0% of the Funds net assets
at the end of this reporting period. The Funds holdings, some of which are insured, come from many different sectors as well as general obligation (G.O.) debt. Most of the Funds investments in securities issued in Puerto Rico are
supported by taxes and other revenues and are designed to help finance electric utilities, highways and education. Bonds issued in Puerto Rico contributed positively to the Funds performance this reporting period.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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5
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The Rochester
portfolio management team
The Funds holdings also included many sales tax revenue bonds that were issued in Puerto Rico. In all,
this sector represented 11.6% of the Funds total assets this reporting period and included bonds issued in North Carolina and in Guam. Debt-service payments on securities in this sector are paid using the issuing municipalitys sales tax
revenues. An investment in this sector requires Fund managers to consider the economic conditions that a municipality has experienced (and will likely experience) and the aggregate face value of the sales tax revenue bonds being issued relative to
the municipalitys historic and likely sales tax balances. During this reporting period, Puerto Rico used an innovative lottery system to encourage the population to pay sales taxes on purchased goods. This sector also contributed positively to
the Funds performance this reporting period.
Although the market continued to react favorably to improved fiscal management under the leadership of former Gov.
Luis Fortuño, the governor was not as popular with the voters. In November 2012, Alejandro Garcia Padilla was elected Governor of the Commonwealth. During the last quarter of this reporting period, Gov. Padilla continued many of the positive
fiscal management policies of his predecessor. He agreed to privatize the islands main airport, proposed aggressive pension reform and announced plans to raise taxes.
Even before Gov. Padillas inauguration, however, Moodys had made a new assessment of the creditworthiness of Puerto Ricos revenue-backed debt, lowering the ratings on those securities to below
investment grade. Moodys also changed its assessment
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6
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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The Rochester credit
research team
for Puerto Ricos G.O. debt, which is backed by the full faith and taxing authority of the Commonwealth. Investors should note that Moodys maintained an investment-grade rating for the
G.O. debt during this reporting period, as did S&P and Fitch, the other national credit ratings agencies. Late in this reporting period, S&P downgraded the revenue-backed bonds issued by the Puerto Rico Aqueduct and Sewer Authority (PRASA),
a decision that we believe is at odds with the authoritys current and projected financial health. Other revenue-backed bonds continued to hold investment-grade ratings from S&P. Fitch maintained its investment-grade ratings for Puerto
Ricos revenue-backed bonds.
The Fund was invested in the hospital/healthcare sector, representing 21.5% of the
Funds total assets at the end of this reporting period and contributing positively to Fund performance. Our holdings in this sector consist of securities across the credit spectrum. For
most of this reporting period, the debate about the Affordable Care Act of 2010 continued, even though the Supreme Court had upheld the Acts individual mandate in late June 2012. The voices of those who were suggesting that
Congress would revisit and perhaps seek to override the legislation were largely silenced after Election Day.
Municipal bonds backed by proceeds from
the tobacco Master Settlement Agreement (the MSA), the national litigation settlement with U.S. tobacco manufacturers, represented 10.0% of the Funds total assets at the end of this reporting period and contributed
pos-
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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7
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itively to Fund performance. Late in 2012, tobacco manufacturers that had been withholding a portion of their MSA payments since 2005 announced an agreement in principle to release $1.5 billion
from escrow over the next 5 years. In other positive news for the tobacco sector, the rate of decline for cigarette consumption in 2012 was the lowest this rate has been in 6 years. The rate of decline was also less than the rate that was baked into
the assumptions used to draft the MSA in 1998.
We like that tobacco bonds can provide tax-exempt income for investors as well as benefits
to the issuing states and territories. We believe the securities we hold in this sector are fundamentally sound credits. Our long-term view of the sector remains bullish and, given attractive valuations, we believe that it is likely we will continue
to hold a greater percentage of tobacco bonds in our portfolios than our peers. As in prior reporting periods, the tobacco bonds this Fund held during this reporting period made all scheduled payments of interest and principal on time and in full.
Investors should note that we believe the sector is well positioned to provide high levels of tax-free income to the long-term benefit of our yield-seeking investors.
The adult living facilities sector represented 7.8% of the Funds total assets as of March 28, 2013, and contributed positively to the Funds performance this reporting period. These bonds finance
various projects at senior living centers and tend to
outper-
form in densely populated geographies with strong real estate values.
The Fund continued to favor
the higher education sector, which represented 7.1% of the Funds total assets as of March 28, 2013, and was a positive contributor to the Funds performance this reporting period. The investment-grade bonds we hold in this sector
have regularly provided high levels of tax-free income with what we believe to be far less credit risk than their external ratings would suggest.
The
Fund continued to be invested in the municipal leases sector this reporting period, which accounted for 6.1% of the Funds total assets as of March 28, 2013. As state and local governments seek new ways to reduce costs and improve
near-term cash flow, many lease all types of assets, including office space for public sector employees. The bonds held by this Fund are backed by the proceeds of these lease arrangements and contributed positively to the Funds performance
this reporting period.
General obligation (G.O.) debt backed by the full faith and taxing authority of state and local governments comprised 6.0% of
the Funds total assets at the end of this reporting period. The Funds holdings include bonds issued by the Commonwealth of Puerto Rico and many North Carolina municipalities. Despite challenging economic conditions and tight budgets,
elected municipal officials consistently safeguarded the debt service payments on their G.O.
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8
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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debt. This sector also contributed positively to the Funds performance this reporting period.
At the end of this reporting period, the Funds investments in the multifamily and single-family housing sectors represented 5.2% and 5.1% of the Funds total assets, respectively. Despite the
ongoing difficulties in the national housing market this reporting period, securities in these sectors continued to provide competitive levels of tax-free income, and both sectors contributed positively to the Funds performance. We continue to
believe that long-term investors should ultimately benefit from this Funds carefully selected holdings in the housing sectors.
During this
reporting period, the Fund remained invested in municipal inverse-floating rate securities, which are tax-exempt securities with interest payments that move inversely to changes in short-term interest rates. Inverse floaters generally
offer higher tax-free yields than fixed-rate bonds of comparable maturity and credit quality, but they face greater price volatility, too. During this reporting period, inverse floaters provided attractive levels of tax-free income and
contributed positively to the Funds total return. This outcome illustrates why we believe that inverse floaters belong in this Funds portfolio.
Our approach to municipal bond investing is flexible and responsive to market conditions. Shareholders should note that market conditions during this reporting period did not
affect the Funds overall investment objectives or cause it to pay any capital gain distributions. In closing, we believe that our time-tested strategies and the Funds structure and
sector composition will continue to benefit fixed-income investors through interest rate and economic cycles.
INVESTMENT STRATEGY
The Rochester investment team focuses exclusively on municipal bonds and has consistently used a time-tested, value-oriented and security-specific
approach to fund management. We know that market conditions can and do fluctuate, but we do not waver in our belief in the power of tax-free yield to help investors achieve their long-term objectives.
The Fund invests primarily in investment-grade municipal securities and may invest up to 25% of its total assets in below-investment grade securities, or
junk bonds; the percentage of assets is measured at the time of purchase and the credit quality of the securities is based on Nationally Recognized Statistical Rating Organization (NRSRO) ratings or, if no NRSRO rating, on
internal ratings.
Our approach to municipal bond investing is flexible and responsive to market conditions.
Our team continually searches for undervalued bonds that we believe will provide a meaningful level of tax-free income until
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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9
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maturity. Rather than making allocation shifts based on expected market conditions, we search the marketplace for what we believe to be the best values for generating income. It remains important
to note that we do not manage our funds based on predictions of interest rate changes.
Instead, our investment approach involves scouring the market
for municipal securities that meet our stringent credit criteria and buying bonds that we believe will deliver above-average yields relative to peer funds. We focus on identifying inefficiencies in market pricing that can lead to investment
advantages. We seek to maintain a thoughtful mix of industry sectors, maturities and credit ratings in this Funds portfolio.
The Rochester team
also prospects for yield-enhancing opportunities in the secondary market, often picking up odd lots that we believe can add significant incremental yield to our portfolios. We will also look for
non-
rated issues with solid credit qualities, which we believe can often help enhance a funds tax-free yield. Investors should note that non-rated or unrated securities may or may not be the
equivalent of investment-grade securities.
The Rochester Way, we believe, distinguishes our approach to municipal investing from those of our
competitors.
Daniel G. Loughran,
Senior Vice President, Senior Portfolio Manager and Team Leader, on behalf of the rest of the Rochester portfolio management team: Scott S. Cottier, Troy E. Willis,
Mark R. DeMitry, Michael L. Camarella, Charles S. Pulire and research analyst Elizabeth S. Mossow.
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10
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Top Holdings and Allocations
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TOP TEN CATEGORIES
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Hospital/Healthcare
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21.5
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%
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Sales Tax Revenue
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11.6
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Tobacco-Master Settlement Agreement
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10.0
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Adult Living Facilities
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7.8
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Higher Education
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7.1
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Municipal Leases
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6.1
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General Obligation
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6.0
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Multifamily Housing
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5.2
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Single-Family Housing
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5.1
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Electric Utilities
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4.7
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Portfolio holdings are subject to change. Percentages are as of March 28, 2013, and are based on total assets. March 28, 2013, was
the last business day of the Funds reporting period. See Note 1 of the accompanying Notes to Financial Statements.
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CREDIT ALLOCATION
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NRSRO-
Rated
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Manager-
Rated
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Total
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AAA
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0.0
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%
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0.8
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%
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0.8
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%
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AA
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29.8
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0.0
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29.8
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A
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16.9
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0.0
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16.9
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BBB
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27.2
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9.8
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37.0
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BB or lower
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5.4
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10.1
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15.5
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Total
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79.3
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%
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20.7
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%
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100.0
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%
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The percentages above are based on the market value of the securities as of March 28, 2013, and are subject to change.
OppenheimerFunds, Inc. determines the credit allocation of the Funds assets using ratings by nationally recognized statistical rating organizations (NRSROs), such as Standard & Poors. For any security rated by an NRSRO other
than S&P, OppenheimerFunds, Inc. converts that securitys rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest rating is used. For securities not rated by an NRSRO,
OppenheimerFunds, Inc. uses its own credit analysis to assign ratings in categories similar to those of S&P. The use of similar categories is not an indication that OppenheimerFunds, Inc.s credit analysis process is consistent or
comparable with any NRSROs process were that NRSRO to rate the same security.
For the purposes of this Credit Allocation table, securities rated
within the NRSROs four highest categories AAA, AA, A and BBB are investment-grade securities. For further details, please consult the Funds prospectus or Statement of Additional
Information.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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11
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Performance
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DISTRIBUTION YIELDS
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As of 3/28/13
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Without Sales Chg.
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With Sales Chg.
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Class A
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4.23
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%
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4.03
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%
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Class B
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3.37
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N/A
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Class C
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3.37
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N/A
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Class Y
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4.26
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N/A
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STANDARDIZED YIELDS
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TAXABLE EQUIVALENT YIELDS
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For the 30 Days Ended 3/31/13
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As of 3/31/13
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Class A
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3.67
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%
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Class A
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7.03
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%
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Class B
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3.10
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Class B
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5.94
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Class C
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3.10
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Class C
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5.94
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Class Y
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3.87
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Class Y
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7.41
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AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 3/28/13
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Inception Date
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1-Year
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5-Year
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Since Inception
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CLASS A
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(OPNCX)
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10/10/06
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6.60
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%
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5.68
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%
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2.92
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%
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CLASS B
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(OPCBX)
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10/10/06
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5.81
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4.89
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2.21
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CLASS C
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(OPCCX)
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10/10/06
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5.81
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4.89
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2.13
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CLASS Y
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(OPCYX)
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7/29/11
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6.72
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N/A
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11.34
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AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 3/28/13
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Inception Date
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1-Year
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5-Year
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Since Inception
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CLASS A
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(OPNCX)
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10/10/06
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1.54
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%
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4.66
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%
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2.15
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%
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CLASS B
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(OPCBX)
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10/10/06
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0.81
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4.57
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2.21
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CLASS C
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(OPCCX)
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10/10/06
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4.81
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4.89
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2.13
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CLASS Y
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(OPCYX)
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7/29/11
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6.72
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N/A
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11.34
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12
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
The performance data quoted represents past performance, which does not guarantee future
results.
The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than their
original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit
oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 4.75%; for Class B
shares, the contingent deferred sales charge of 5% (1-year) and 2% (5-year); and for Class C, the contingent deferred sales charge of 1% for the 1-year period. There is no sales charge for Class Y shares.
March 28, 2013, was the last business day of the Funds reporting period. See Note 1 of the accompanying Notes to Financial Statements. Index returns are
calculated through March 31, 2013.
The Funds performance is compared to the performance of that of the Barclays Municipal Bond Index, an
unmanaged index of a broad range of investment-grade municipal bonds that is a measure of the general municipal bond market. Indices are unmanaged and cannot be purchased by investors. Index performance includes reinvestment of income, but does not
reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Funds performance, and does not predict or depict performance of the Fund. The Funds performance
reflects the effects of the Funds business and operating expenses.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
13
|
|
Distribution yields for Class A shares are based on dividends of $0.043 for the 35-day accrual period ended
March 26, 2013. The yield without sales charge for Class A shares is calculated by dividing annualized dividends by the Class A net asset value on March 26, 2013; for the yield with sales charge, the denominator is the
Class A maximum offering price on that date. Distribution yields for Class B, C and Y are annualized based on dividends of $0.0342, $0.0342 and $0.0434, respectively, for the 35-day accrual period ended March 26, 2013, and on the
corresponding net asset values on that date.
Standardized yield is based on the Funds net investment income for the 30-day period ended
March 31, 2013, and either that dates maximum offering price (for Class A shares) or net asset value (for the other classes). Each result is compounded semiannually and annualized. Falling share prices artificially increase yields.
The average distribution yield in this Funds Lipper category was calculated based on the distributions and the final net asset values (NAVs)
of the reporting period for the funds in each category. The average yield at NAV in Lippers North Carolina Municipal Debt Funds category is based on 26 NAVs, one for each class of each fund in the category; a fund can have up to 4
classes. Lipper yields do not include sales chargeswhich, if included, would reduce results.
Taxable equivalent yield is based on the
standardized yield and the 2013 combined federal and North Carolina tax rate of 47.8%. Calculations factor in the 3.8% tax on unearned income under the Patient Protection and Affordable Care Act, as applicable. A portion of the Funds
distributions may be subject to tax; distributions may also increase an investors exposure to the alternative minimum tax. Capital gains distributions are taxable as capital gains. Tax treatments of the Funds distributions and capital
gains may vary by state; investors should consult a tax advisor to determine if the Fund is appropriate for them. Each result is compounded semiannually and annualized. Falling share prices artificially increase yields.
This Report must be preceded or accompanied by a Fund prospectus.
The average yields for AAA-rated municipal securities are provided by Municipal Market Advisors and are based on its benchmark of general obligation bonds structured with a 5% coupon. The MMA 5% benchmark is
constructed using yields from the leading underwriters, who represent a significant percentage of the primary activity of the top 10 underwriters and therefore the total issuance. The benchmark that was used in shareholder reports before
December 31, 2012, was based on par coupon yields and included a broader set of participants; the 5% benchmark is now considered the industry standard.
Investments in tobacco bonds, which are backed by the proceeds a state or territory receives from the 1998 national litigation settlement with tobacco manufacturers, may be vulnerable to economic and/or
legislative events that affect issuers in a particular municipal market sector. Annual payments by MSA-participating manufacturers, for example, hinge on many factors, including annual domestic cigarette shipments, inflation and the relative market
share of non-participating manufacturers. To date, we believe
|
|
|
14
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
consumption figures remain within an acceptable range of the assumptions used to structure MSA bonds. Future MSA payments could be reduced if consumption were to fall more rapidly than originally
forecast.
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation
by OppenheimerFunds, Inc. or its affiliates.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds
investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling
1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not
deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
15
|
|
Fund Expenses
Fund Expenses.
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on
redemptions and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare
these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning of
the period and held for the entire 6-month period ended March 28, 2013.
Actual Expenses.
The first section of the table provides information
about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled Expenses Paid During Period to estimate the expenses
you paid on your account during this period.
Hypothetical Example for Comparison Purposes.
The second section of the table provides information
about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The
hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a
$12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the hypothetical section of the table is useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
|
16
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
Fund
Expenses
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Beginning
Account
Value
October 1, 2012
|
|
|
Ending
Account
Value
March 28, 2013
|
|
|
Expenses
Paid During
6 Months Ended
March 28, 2013
|
|
Class A
|
|
$
|
1,000.00
|
|
|
$
|
1,013.60
|
|
|
$
|
4.80
|
|
Class B
|
|
|
1,000.00
|
|
|
|
1,009.10
|
|
|
|
8.51
|
|
Class C
|
|
|
1,000.00
|
|
|
|
1,009.00
|
|
|
|
8.51
|
|
Class Y
|
|
|
1,000.00
|
|
|
|
1,013.10
|
|
|
|
4.50
|
|
|
|
|
|
Hypothetical
(5% return before expenses)
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
1,000.00
|
|
|
|
1,019.76
|
|
|
|
4.82
|
|
Class B
|
|
|
1,000.00
|
|
|
|
1,016.09
|
|
|
|
8.54
|
|
Class C
|
|
|
1,000.00
|
|
|
|
1,016.09
|
|
|
|
8.54
|
|
Class Y
|
|
|
1,000.00
|
|
|
|
1,020.06
|
|
|
|
4.52
|
|
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the
period, multiplied by 179/365 (to reflect the one-half year period). Those annualized expense ratio based on the 6-month period ended March 28, 2013 are as follows:
|
|
|
|
|
Class
|
|
Expense Ratios
|
|
Class A
|
|
|
0.97
|
%
|
Class B
|
|
|
1.72
|
|
Class C
|
|
|
1.72
|
|
Class Y
|
|
|
0.91
|
|
The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Funds Manager. Some of these
undertakings may be modified or terminated at any time, as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios,
without such waivers or reimbursements and reduction to custodian expenses, if applicable.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
17
|
|
STATEMENT OF
INVESTMENTS
March 28, 2013*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
Municipal Bonds and Notes109.5%
|
|
|
|
|
|
|
North Carolina67.9%
|
|
|
|
|
|
|
$ 170,000
|
|
|
Asheville, NC Hsg. Authority (Oak Knoll Apartments)
1
|
|
|
5.625
|
%
|
|
|
09/01/2033
|
|
|
$
|
170,366
|
|
|
1,000,000
|
|
|
Buncombe County, NC (Woodfin Downtown Corridor Devel.)
|
|
|
7.250
|
|
|
|
08/01/2034
|
|
|
|
978,104
|
|
|
50,000
|
|
|
Catawaba County, NC GO
1
|
|
|
4.700
|
|
|
|
06/01/2013
|
|
|
|
50,400
|
|
|
25,000
|
|
|
Catawba County, NC GO
1
|
|
|
4.000
|
|
|
|
06/01/2013
|
|
|
|
25,079
|
|
|
2,240,000
|
|
|
Charlotte, NC Airport
1
|
|
|
5.000
|
|
|
|
07/01/2021
|
|
|
|
2,634,733
|
|
|
500,000
|
|
|
Charlotte, NC Airport
1
|
|
|
5.000
|
|
|
|
07/01/2031
|
|
|
|
554,685
|
|
|
1,020,000
|
|
|
Charlotte, NC COP (Equipment Acquisition
Public Facilities)
2
|
|
|
5.000
|
|
|
|
12/01/2028
|
|
|
|
1,211,791
|
|
|
1,190,000
|
|
|
Charlotte, NC COP (Equipment Acquisition
Public Facilities)
2
|
|
|
5.000
|
|
|
|
12/01/2031
|
|
|
|
1,387,623
|
|
|
100,000
|
|
|
Charlotte, NC COP (Governmental Facilities)
1
|
|
|
5.000
|
|
|
|
06/01/2016
|
|
|
|
100,816
|
|
|
20,000
|
|
|
Charlotte, NC COP (Governmental Facilities)
1
|
|
|
5.000
|
|
|
|
06/01/2028
|
|
|
|
20,142
|
|
|
1,260,000
|
|
|
Charlotte, NC COP (Governmental Facilities)
1
|
|
|
5.000
|
|
|
|
06/01/2033
|
|
|
|
1,268,833
|
|
|
2,000,000
|
|
|
Charlotte, NC COP (Governmental Facilities)
1
|
|
|
5.250
|
|
|
|
06/01/2020
|
|
|
|
2,017,480
|
|
|
550,000
|
|
|
Charlotte, NC COP (Transit)
1
|
|
|
5.000
|
|
|
|
06/01/2018
|
|
|
|
554,488
|
|
|
645,000
|
|
|
Charlotte, NC Douglas International Airport Special Facilities (US Airways)
|
|
|
5.600
|
|
|
|
07/01/2027
|
|
|
|
645,748
|
|
|
2,500,000
|
|
|
Charlotte, NC Douglas International Airport Special Facilities (US Airways)
|
|
|
7.750
|
|
|
|
02/01/2028
|
|
|
|
2,507,275
|
|
|
30,000
|
|
|
Charlotte, NC GO
1
|
|
|
4.125
|
|
|
|
04/01/2020
|
|
|
|
30,070
|
|
|
1,830,000
|
|
|
Charlotte-Mecklenburg, NC Hospital Authority (Carolinas Healthcare
System)
1
|
|
|
5.125
|
|
|
|
01/15/2037
|
|
|
|
2,030,641
|
|
|
50,000
|
|
|
Charlotte-Mecklenburg, NC Hospital Authority Health Care System (Carolinas Healthcare)
1
|
|
|
5.250
|
|
|
|
01/15/2039
|
|
|
|
55,118
|
|
|
250,000
|
|
|
Columbus County, NC IF&PCFA (International
Paper Company)
1
|
|
|
5.700
|
|
|
|
05/01/2034
|
|
|
|
281,013
|
|
|
70,000
|
|
|
Columbus County, NC IF&PCFA (International
Paper Company)
1
|
|
|
5.850
|
|
|
|
12/01/2020
|
|
|
|
70,268
|
|
|
100,000
|
|
|
Columbus County, NC IF&PCFA (International
Paper Company)
1
|
|
|
6.250
|
|
|
|
11/01/2033
|
|
|
|
115,138
|
|
|
1,900,000
|
|
|
Durham, NC Hsg. Authority (JFK Towers)
1
|
|
|
5.000
|
|
|
|
12/01/2035
|
|
|
|
1,978,280
|
|
|
1,000,000
|
|
|
Durham, NC Hsg. Authority (JFK Towers)
1
|
|
|
5.000
|
|
|
|
12/01/2047
|
|
|
|
1,009,940
|
|
|
4,825,000
|
|
|
Durham, NC Hsg. Authority (Naples Terrace Apartments)
|
|
|
5.700
|
|
|
|
06/01/2033
|
|
|
|
4,918,798
|
|
|
100,000
|
|
|
E. Lincoln County, NC Water & Sewer District
1
|
|
|
4.750
|
|
|
|
06/01/2018
|
|
|
|
102,275
|
|
|
150,000
|
|
|
Elizabeth City, NC Multifamily Hsg. (Walker Landing)
1
|
|
|
5.125
|
|
|
|
03/20/2049
|
|
|
|
152,336
|
|
|
500,000
|
|
|
Fayetteville, NC State University (Student Hsg.)
1
|
|
|
5.000
|
|
|
|
04/01/2037
|
|
|
|
544,150
|
|
|
165,000
|
|
|
Halifax County, NC IF&PCFA (Champion
International Corp.)
1
|
|
|
5.450
|
|
|
|
11/01/2033
|
|
|
|
165,578
|
|
|
|
|
18
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
North Carolina
Continued
|
|
|
|
|
|
|
$ 115,000
|
|
|
Halifax County, NC IF&PCFA (International Paper Company)
1
|
|
|
5.900
|
%
|
|
|
09/01/2025
|
|
|
$
|
115,445
|
|
|
30,000
|
|
|
Iredell County, NC GO
1
|
|
|
4.750
|
|
|
|
02/01/2016
|
|
|
|
30,562
|
|
|
125,000
|
|
|
Mint Hill, NC Sanitation District
1
|
|
|
5.250
|
|
|
|
06/01/2017
|
|
|
|
128,014
|
|
|
425,000
|
|
|
Mint Hill, NC Sanitation District
1
|
|
|
5.250
|
|
|
|
06/01/2019
|
|
|
|
435,217
|
|
|
15,000
|
|
|
Mint Hill, NC Sanitation District
1
|
|
|
5.250
|
|
|
|
06/01/2020
|
|
|
|
15,360
|
|
|
1,000,000
|
|
|
NC Capital Facilities Finance Agency (Brevard
College Corp.)
1
|
|
|
5.000
|
|
|
|
10/01/2026
|
|
|
|
993,210
|
|
|
500,000
|
|
|
NC Capital Facilities Finance Agency
(Davidson College)
1
|
|
|
5.000
|
|
|
|
03/01/2040
|
|
|
|
568,340
|
|
|
70,000
|
|
|
NC Capital Facilities Finance Agency (Elizabeth City State Univeristy Hsg. Foundation)
|
|
|
5.000
|
|
|
|
06/01/2028
|
|
|
|
70,082
|
|
|
30,000
|
|
|
NC Capital Facilities Finance Agency (Elizabeth City State University Hsg. Foundation)
|
|
|
5.000
|
|
|
|
06/01/2033
|
|
|
|
30,017
|
|
|
20,000
|
|
|
NC Capital Facilities Finance Agency (Elizabeth City State University Hsg. Foundation)
|
|
|
5.250
|
|
|
|
06/01/2017
|
|
|
|
20,098
|
|
|
20,000
|
|
|
NC Capital Facilities Finance Agency (Johnson & Wales University)
|
|
|
5.000
|
|
|
|
04/01/2019
|
|
|
|
20,043
|
|
|
475,000
|
|
|
NC Capital Facilities Finance Agency (Johnson & Wales University)
|
|
|
5.000
|
|
|
|
04/01/2033
|
|
|
|
475,404
|
|
|
320,000
|
|
|
NC Capital Facilities Finance Agency (Johnson & Wales University)
|
|
|
5.250
|
|
|
|
04/01/2021
|
|
|
|
320,653
|
|
|
1,655,000
|
|
|
NC Capital Facilities Finance Agency
(Meredith College)
1
|
|
|
6.000
|
|
|
|
06/01/2031
|
|
|
|
1,833,095
|
|
|
1,535,000
|
|
|
NC Capital Facilities Finance Agency
(Meredith College)
1
|
|
|
6.125
|
|
|
|
06/01/2035
|
|
|
|
1,695,454
|
|
|
200,000
|
|
|
NC Capital Facilities Finance Agency
(Methodist University)
1
|
|
|
5.000
|
|
|
|
03/01/2019
|
|
|
|
228,676
|
|
|
440,000
|
|
|
NC Capital Facilities Finance Agency
(Methodist University)
1
|
|
|
5.000
|
|
|
|
03/01/2022
|
|
|
|
504,737
|
|
|
1,000,000
|
|
|
NC Capital Facilities Finance Agency
(Methodist University)
1
|
|
|
5.000
|
|
|
|
03/01/2034
|
|
|
|
1,074,020
|
|
|
710,000
|
|
|
NC Capital Facilities Finance Agency (North Carolina A&T University Foundation)
|
|
|
5.000
|
|
|
|
06/01/2027
|
|
|
|
713,167
|
|
|
20,000
|
|
|
NC Capital Facilities Finance Agency (North Carolina A&T University)
|
|
|
5.000
|
|
|
|
06/01/2032
|
|
|
|
20,055
|
|
|
50,000
|
|
|
NC COP (Western Carolina University)
1
|
|
|
4.000
|
|
|
|
06/01/2015
|
|
|
|
50,285
|
|
|
115,000
|
|
|
NC COP (Western Carolina University)
1
|
|
|
5.000
|
|
|
|
06/01/2023
|
|
|
|
115,507
|
|
|
25,000
|
|
|
NC COP (Winston-Salem State University Hsg. &
Dining System)
1
|
|
|
5.000
|
|
|
|
01/01/2017
|
|
|
|
25,093
|
|
|
30,000
|
|
|
NC COP (Winston-Salem State University Hsg.)
|
|
|
4.800
|
|
|
|
06/01/2033
|
|
|
|
30,068
|
|
|
25,000
|
|
|
NC Eastern Municipal Power Agency
1
|
|
|
6.500
|
|
|
|
01/01/2018
|
|
|
|
31,038
|
|
|
1,000,000
|
|
|
NC Eastern Municipal Power Agency, Series A
1
|
|
|
5.000
|
|
|
|
01/01/2025
|
|
|
|
1,188,610
|
|
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
19
|
|
STATEMENT OF
INVESTMENTS
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
North Carolina
Continued
|
|
|
|
|
|
|
$ 1,000,000
|
|
|
NC Eastern Municipal Power Agency, Series A
1
|
|
|
5.000
|
%
|
|
|
01/01/2026
|
|
|
$
|
1,166,310
|
|
|
1,000,000
|
|
|
NC Eastern Municipal Power Agency, Series D
1
|
|
|
5.000
|
|
|
|
01/01/2025
|
|
|
|
1,188,610
|
|
|
1,000,000
|
|
|
NC Eastern Municipal Power Agency, Series D
1
|
|
|
5.000
|
|
|
|
01/01/2026
|
|
|
|
1,166,310
|
|
|
560,000
|
|
|
NC Educational Facilities Finance Agency (St. Augustines College)
|
|
|
5.250
|
|
|
|
10/01/2018
|
|
|
|
560,146
|
|
|
1,880,000
|
|
|
NC Educational Facilities Finance Agency (St. Augustines College)
|
|
|
5.250
|
|
|
|
10/01/2028
|
|
|
|
1,862,290
|
|
|
35,000
|
|
|
NC HFA (Home Mtg.)
1
|
|
|
4.850
|
|
|
|
01/01/2023
|
|
|
|
35,041
|
|
|
7,525,000
|
|
|
NC HFA (Home Ownership)
1
|
|
|
5.250
|
|
|
|
01/01/2039
|
|
|
|
7,847,973
|
|
|
120,000
|
|
|
NC HFA (Home Ownership)
1
|
|
|
5.250
|
|
|
|
07/01/2039
|
|
|
|
124,606
|
|
|
20,000
|
|
|
NC HFA (Home Ownership)
1
|
|
|
5.375
|
|
|
|
01/01/2023
|
|
|
|
20,033
|
|
|
10,000
|
|
|
NC HFA (Home Ownership)
1
|
|
|
5.400
|
|
|
|
01/01/2025
|
|
|
|
10,015
|
|
|
35,000
|
|
|
NC HFA (Home Ownership)
1
|
|
|
5.550
|
|
|
|
07/01/2038
|
|
|
|
37,549
|
|
|
575,000
|
|
|
NC Medical Care Commission (AHA1HC/AHA3HC/AHA4HC/AHACHC/AHEHC/AHA7HC Obligated Group)
1
|
|
|
5.500
|
|
|
|
10/01/2024
|
|
|
|
605,211
|
|
|
2,210,000
|
|
|
NC Medical Care Commission (AHACHC)
1
|
|
|
5.800
|
|
|
|
10/01/2034
|
|
|
|
2,325,738
|
|
|
50,000
|
|
|
NC Medical Care Commission (Alamance Regional
Medical Center)
1
|
|
|
5.000
|
|
|
|
08/15/2016
|
|
|
|
50,172
|
|
|
500,000
|
|
|
NC Medical Care Commission (Blue Ridge Healthcare)
1
|
|
|
5.000
|
|
|
|
01/01/2036
|
|
|
|
521,645
|
|
|
2,075,000
|
|
|
NC Medical Care Commission (Catholic Health East)
1
|
|
|
5.250
|
|
|
|
11/15/2024
|
|
|
|
2,250,919
|
|
|
2,180,000
|
|
|
NC Medical Care Commission (Catholic Health East)
1
|
|
|
5.250
|
|
|
|
11/15/2025
|
|
|
|
2,353,114
|
|
|
255,000
|
|
|
NC Medical Care Commission (Cumberland County
Hospital System)
1
|
|
|
5.250
|
|
|
|
10/01/2023
|
|
|
|
261,571
|
|
|
100,000
|
|
|
NC Medical Care Commission (Cumberland County
Hospital System)
1
|
|
|
5.625
|
|
|
|
10/01/2033
|
|
|
|
102,768
|
|
|
50,000
|
|
|
NC Medical Care Commission (Deerfield Episcopal
Retirement Community)
1
|
|
|
5.000
|
|
|
|
11/01/2023
|
|
|
|
50,917
|
|
|
45,000
|
|
|
NC Medical Care Commission (Deerfield Episcopal
Retirement Community)
1
|
|
|
6.000
|
|
|
|
11/01/2033
|
|
|
|
49,103
|
|
|
1,400,000
|
|
|
NC Medical Care Commission (Deerfield Episcopal
Retirement Community)
1
|
|
|
6.125
|
|
|
|
11/01/2038
|
|
|
|
1,529,724
|
|
|
8,000,000
|
|
|
NC Medical Care Commission (Duke University
Health System)
3
|
|
|
5.000
|
|
|
|
06/01/2042
|
|
|
|
8,753,760
|
|
|
180,000
|
|
|
NC Medical Care Commission (Forest at Duke)
1
|
|
|
5.500
|
|
|
|
09/01/2018
|
|
|
|
180,344
|
|
|
1,520,000
|
|
|
NC Medical Care Commission (Galloway Ridge)
|
|
|
6.000
|
|
|
|
01/01/2039
|
|
|
|
1,614,179
|
|
|
115,000
|
|
|
NC Medical Care Commission (Givens Estates)
1
|
|
|
5.000
|
|
|
|
07/01/2027
|
|
|
|
121,142
|
|
|
50,000
|
|
|
NC Medical Care Commission (Glenaire/The Presbyterian Homes Obligated Group)
|
|
|
5.500
|
|
|
|
10/01/2031
|
|
|
|
51,288
|
|
|
345,000
|
|
|
NC Medical Care Commission (Glenaire/The Presbyterian Homes Obligated Group)
|
|
|
5.600
|
|
|
|
10/01/2036
|
|
|
|
353,421
|
|
|
|
|
20
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
North Carolina
Continued
|
|
|
|
|
|
|
$ 55,000
|
|
|
NC Medical Care Commission (Halifax Regional Medical Center)
1
|
|
|
5.000
|
%
|
|
|
08/15/2024
|
|
|
$
|
55,008
|
|
|
2,600,000
|
|
|
NC Medical Care Commission (HPRHS/HPRHSvcs Obligated Group)
|
|
|
5.000
|
|
|
|
10/01/2019
|
|
|
|
2,602,288
|
|
|
665,000
|
|
|
NC Medical Care Commission (HPRHS/HPRHSvcs Obligated Group)
|
|
|
5.000
|
|
|
|
10/01/2029
|
|
|
|
665,093
|
|
|
1,480,000
|
|
|
NC Medical Care Commission (HPRHS/HPRHSvcs Obligated Group)
|
|
|
5.125
|
|
|
|
10/01/2014
|
|
|
|
1,496,931
|
|
|
240,000
|
|
|
NC Medical Care Commission (Hugh Chatham Memorial Hospital)
|
|
|
5.000
|
|
|
|
10/01/2033
|
|
|
|
240,053
|
|
|
195,000
|
|
|
NC Medical Care Commission (Maria Parham Medical Center)
|
|
|
5.500
|
|
|
|
10/01/2018
|
|
|
|
200,193
|
|
|
500,000
|
|
|
NC Medical Care Commission (Mission Health System)
1
|
|
|
5.000
|
|
|
|
10/01/2036
|
|
|
|
543,455
|
|
|
615,000
|
|
|
NC Medical Care Commission (Scotland
Memorial Hospital)
1
|
|
|
5.500
|
|
|
|
10/01/2019
|
|
|
|
616,556
|
|
|
1,000,000
|
|
|
NC Medical Care Commission (Southeastern Regional
Medical Center)
1
|
|
|
5.000
|
|
|
|
06/01/2032
|
|
|
|
1,140,810
|
|
|
250,000
|
|
|
NC Medical Care Commission (Southminster)
|
|
|
6.125
|
|
|
|
10/01/2018
|
|
|
|
250,428
|
|
|
50,000
|
|
|
NC Medical Care Commission (STHS)
1
|
|
|
6.250
|
|
|
|
10/01/2019
|
|
|
|
50,137
|
|
|
345,000
|
|
|
NC Medical Care Commission (STHS/STMH/STM/HCC)
1
|
|
|
6.375
|
|
|
|
10/01/2029
|
|
|
|
346,415
|
|
|
65,000
|
|
|
NC Medical Care Commission (STTLC)
|
|
|
5.375
|
|
|
|
10/01/2014
|
|
|
|
65,178
|
|
|
105,000
|
|
|
NC Medical Care Commission (STTLC)
1
|
|
|
5.375
|
|
|
|
10/01/2019
|
|
|
|
105,229
|
|
|
355,000
|
|
|
NC Medical Care Commission (UHSEC/PCMH Obligated Group)
1
|
|
|
6.250
|
|
|
|
12/01/2033
|
|
|
|
424,452
|
|
|
520,000
|
|
|
NC Medical Care Commission (UHSEC)
1
|
|
|
6.000
|
|
|
|
12/01/2029
|
|
|
|
613,876
|
|
|
2,000,000
|
|
|
NC Medical Care Commission (Vidant Health/PCMH
Obligated Group)
1
|
|
|
5.000
|
|
|
|
06/01/2036
|
|
|
|
2,180,300
|
|
|
250,000
|
|
|
NC Medical Care Commission (Village at Brookwood)
|
|
|
6.375
|
|
|
|
01/01/2022
|
|
|
|
250,448
|
|
|
750,000
|
|
|
NC Medical Care Commission (Wakemed)
1
|
|
|
5.000
|
|
|
|
10/01/2031
|
|
|
|
861,578
|
|
|
500,000
|
|
|
NC Medical Care Commission Health Care Facilities (Appalachian Regional Healthcare System)
1
|
|
|
6.625
|
|
|
|
07/01/2034
|
|
|
|
599,085
|
|
|
400,000
|
|
|
NC Medical Care Commission Health Care Facilities
(Cleveland County)
1
|
|
|
5.750
|
|
|
|
01/01/2035
|
|
|
|
448,960
|
|
|
500,000
|
|
|
NC Medical Care Commission Health Care Facilities (Cumberland County Hospital System)
1
|
|
|
5.000
|
|
|
|
10/01/2032
|
|
|
|
560,430
|
|
|
35,000
|
|
|
NC Medical Care Commission Health Care Facilities (Cumberland County Hospital System)
1
|
|
|
5.500
|
|
|
|
10/01/2028
|
|
|
|
35,946
|
|
|
2,000,000
|
|
|
NC Medical Care Commission Health Care Facilities (Lutheran Services for the Aging)
|
|
|
5.000
|
|
|
|
03/01/2042
|
|
|
|
2,020,720
|
|
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
21
|
|
STATEMENT OF
INVESTMENTS
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
North Carolina
Continued
|
|
|
|
|
|
|
$ 30,000
|
|
|
NC Medical Care Commission Health Care Facilities (McDowell Nursing Center)
1
|
|
|
5.350
|
%
|
|
|
07/20/2028
|
|
|
$
|
30,946
|
|
|
2,000,000
|
|
|
NC Medical Care Commission Health Care Facilities
(Novant Health)
1
|
|
|
5.000
|
|
|
|
11/01/2043
|
|
|
|
2,156,240
|
|
|
2,000,000
|
|
|
NC Medical Care Commission Health Care Facilities
(Novant Health)
1
|
|
|
5.250
|
|
|
|
11/01/2040
|
|
|
|
2,190,320
|
|
|
35,000
|
|
|
NC Medical Care Commission Health Care Facilities (Pines
at Davidson)
1
|
|
|
5.000
|
|
|
|
01/01/2036
|
|
|
|
35,588
|
|
|
15,000
|
|
|
NC Medical Care Commission Health Care Facilities (STHS/STMH Obligated
Group)
1
|
|
|
6.500
|
|
|
|
10/01/2013
|
|
|
|
15,336
|
|
|
25,000
|
|
|
NC Medical Care Commission Hospital (Alamance
Health System)
1
|
|
|
5.500
|
|
|
|
08/15/2013
|
|
|
|
25,097
|
|
|
140,000
|
|
|
NC Medical Care Commission Hospital (Alamance
Health System)
1
|
|
|
5.500
|
|
|
|
08/15/2024
|
|
|
|
140,316
|
|
|
110,000
|
|
|
NC Medical Care Commission Hospital (Alamance Regional Medical
Center)
1
|
|
|
5.000
|
|
|
|
08/15/2020
|
|
|
|
110,274
|
|
|
1,075,000
|
|
|
NC Medical Care Commission Hospital (Maria Parham Medical Center)
|
|
|
6.500
|
|
|
|
10/01/2026
|
|
|
|
1,109,078
|
|
|
500,000
|
|
|
NC Medical Care Commission Retirement Facilities (Carolina Village)
|
|
|
6.000
|
|
|
|
04/01/2038
|
|
|
|
526,315
|
|
|
40,000
|
|
|
NC Medical Care Commission Retirement Facilities (Cypress Glen Retirement Community)
|
|
|
6.000
|
|
|
|
10/01/2033
|
|
|
|
40,606
|
|
|
50,000
|
|
|
NC Medical Care Commission Retirement Facilities (The Forest at Duke)
|
|
|
5.100
|
|
|
|
09/01/2013
|
|
|
|
50,104
|
|
|
25,000
|
|
|
NC Medical Care Commission Retirement Facilities (The Forest at Duke)
|
|
|
5.200
|
|
|
|
09/01/2014
|
|
|
|
25,052
|
|
|
150,000
|
|
|
NC Medical Care Commission Retirement Facilities (The United Methodist Retirement Homes)
|
|
|
5.500
|
|
|
|
10/01/2032
|
|
|
|
153,699
|
|
|
1,590,000
|
|
|
NC Medical Care Commission Retirement Facilities (The United Methodist Retirement Homes)
2
|
|
|
5.000
|
|
|
|
10/01/2033
|
|
|
|
1,654,634
|
|
|
5,000
|
|
|
NC Medical Care Commission Retirement Facilities (The United Methodist Retirement Homes)
|
|
|
5.500
|
|
|
|
10/01/2035
|
|
|
|
5,065
|
|
|
1,250,000
|
|
|
NC Medical Care Commission Retirement Facilities (Village at Brookwood)
|
|
|
5.250
|
|
|
|
01/01/2032
|
|
|
|
1,276,150
|
|
|
250,000
|
|
|
NC Turnpike Authority (Monroe Connector System)
1
|
|
|
5.000
|
|
|
|
07/01/2036
|
|
|
|
282,710
|
|
|
240,000
|
|
|
NC Turnpike Authority (Triangle Expressway System)
1
|
|
|
5.750
|
|
|
|
01/01/2039
|
|
|
|
275,131
|
|
|
255,000
|
|
|
Northampton County, NC IF&PCFA (Champion
International Corp.)
1
|
|
|
6.450
|
|
|
|
11/01/2029
|
|
|
|
256,104
|
|
|
10,000
|
|
|
Northern Hospital District of Surry County, NC Health
Care Facilities
1
|
|
|
5.500
|
|
|
|
10/01/2029
|
|
|
|
10,008
|
|
|
25,000
|
|
|
Northern Hospital District of Surry County, NC Health
Care Facilities
1
|
|
|
5.750
|
|
|
|
10/01/2024
|
|
|
|
26,941
|
|
|
500,000
|
|
|
Northern Hospital District of Surry County, NC Health
Care Facilities
1
|
|
|
6.250
|
|
|
|
10/01/2038
|
|
|
|
539,425
|
|
|
365,000
|
|
|
Oak Island, NC Enterprise System
1
|
|
|
6.000
|
|
|
|
06/01/2036
|
|
|
|
418,421
|
|
|
|
|
22
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
North Carolina
Continued
|
|
|
|
|
|
|
$ 20,000
|
|
|
University of NC System
1
|
|
|
5.500
|
%
|
|
|
10/01/2034
|
|
|
$
|
22,490
|
|
|
20,000
|
|
|
Wake County, NC IF&PCFA (Carolina Power &
Light Company)
1
|
|
|
5.375
|
|
|
|
02/01/2017
|
|
|
|
20,156
|
|
|
1,410,000
|
|
|
Western Carolina University, NC (Student Housing)
2
|
|
|
5.000
|
|
|
|
06/01/2033
|
|
|
|
1,566,073
|
|
|
10,000
|
|
|
Wilson, NC Combined Enterprise System
1
|
|
|
4.000
|
|
|
|
12/01/2014
|
|
|
|
10,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100,853,196
|
|
|
U.S. Possessions41.6%
|
|
|
300,000
|
|
|
Guam GO
1
|
|
|
6.750
|
|
|
|
11/15/2029
|
|
|
|
336,846
|
|
|
1,550,000
|
|
|
Guam GO
1
|
|
|
7.000
|
|
|
|
11/15/2039
|
|
|
|
1,752,849
|
|
|
1,500,000
|
|
|
Guam Government Business Privilege
1
|
|
|
5.000
|
|
|
|
01/01/2037
|
|
|
|
1,642,905
|
|
|
1,240,000
|
|
|
Guam Government Business Privilege
1
|
|
|
5.000
|
|
|
|
01/01/2042
|
|
|
|
1,351,352
|
|
|
1,400,000
|
|
|
Guam Government Business Privilege
1
|
|
|
5.250
|
|
|
|
01/01/2036
|
|
|
|
1,562,652
|
|
|
250,000
|
|
|
Guam Government Waterworks Authority &
Wastewater System
1
|
|
|
5.875
|
|
|
|
07/01/2035
|
|
|
|
257,555
|
|
|
125,000
|
|
|
Guam Power Authority, Series A
1
|
|
|
5.000
|
|
|
|
10/01/2023
|
|
|
|
150,830
|
|
|
125,000
|
|
|
Guam Power Authority, Series A
1
|
|
|
5.000
|
|
|
|
10/01/2030
|
|
|
|
141,949
|
|
|
125,000
|
|
|
Guam Power Authority, Series A
1
|
|
|
5.000
|
|
|
|
10/01/2034
|
|
|
|
137,684
|
|
|
1,000,000
|
|
|
Guam Power Authority, Series A
1
|
|
|
5.500
|
|
|
|
10/01/2030
|
|
|
|
1,124,730
|
|
|
180,000
|
|
|
Guam Tobacco Settlement Economic Devel. & Commerce Authority
(TASC)
1
|
|
|
5.250
|
|
|
|
06/01/2032
|
|
|
|
176,049
|
|
|
67,775,000
|
|
|
Guam Tobacco Settlement Economic Devel. & Commerce Authority (TASC)
|
|
|
7.250
|
4
|
|
|
06/01/2057
|
|
|
|
1,671,332
|
|
|
365,000
|
|
|
Northern Mariana Islands Commonwealth, Series A
|
|
|
5.000
|
|
|
|
06/01/2017
|
|
|
|
351,546
|
|
|
2,190,000
|
|
|
Northern Mariana Islands Commonwealth, Series A
|
|
|
5.000
|
|
|
|
06/01/2030
|
|
|
|
1,801,625
|
|
|
1,080,000
|
|
|
Puerto Rico Aqueduct & Sewer Authority
|
|
|
5.125
|
|
|
|
07/01/2037
|
|
|
|
990,209
|
|
|
250,000
|
|
|
Puerto Rico Aqueduct & Sewer Authority
1
|
|
|
6.000
|
|
|
|
07/01/2038
|
|
|
|
252,268
|
|
|
500,000
|
|
|
Puerto Rico Aqueduct & Sewer Authority
1
|
|
|
6.125
|
|
|
|
07/01/2024
|
|
|
|
529,585
|
|
|
1,895,000
|
|
|
Puerto Rico Childrens Trust Fund (TASC)
1
|
|
|
5.375
|
|
|
|
05/15/2033
|
|
|
|
1,916,338
|
|
|
3,520,000
|
|
|
Puerto Rico Childrens Trust Fund (TASC)
1
|
|
|
5.500
|
|
|
|
05/15/2039
|
|
|
|
3,559,635
|
|
|
4,495,000
|
|
|
Puerto Rico Childrens Trust Fund (TASC)
1
|
|
|
5.625
|
|
|
|
05/15/2043
|
|
|
|
4,545,614
|
|
|
35,650,000
|
|
|
Puerto Rico Childrens Trust Fund (TASC)
|
|
|
6.729
|
4
|
|
|
05/15/2050
|
|
|
|
2,790,682
|
|
|
39,500,000
|
|
|
Puerto Rico Childrens Trust Fund (TASC)
|
|
|
7.625
|
4
|
|
|
05/15/2057
|
|
|
|
734,305
|
|
|
5,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
5.000
|
|
|
|
07/01/2028
|
|
|
|
4,776
|
|
|
70,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
5.125
|
|
|
|
07/01/2031
|
|
|
|
66,877
|
|
|
395,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
5.250
|
|
|
|
07/01/2030
|
|
|
|
383,833
|
|
|
750,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
5.750
|
|
|
|
07/01/2028
|
|
|
|
766,935
|
|
|
40,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
5.875
|
|
|
|
07/01/2036
|
|
|
|
40,121
|
|
|
800,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
6.000
|
|
|
|
07/01/2039
|
|
|
|
815,984
|
|
|
2,250,000
|
|
|
Puerto Rico Commonwealth GO
1
|
|
|
6.500
|
|
|
|
07/01/2037
|
|
|
|
2,388,915
|
|
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
23
|
|
STATEMENT OF
INVESTMENTS
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
U.S. Possessions
Continued
|
|
|
$ 85,000
|
|
|
Puerto Rico Convention Center Authority
1
|
|
|
5.000
|
%
|
|
|
07/01/2027
|
|
|
$
|
84,693
|
|
|
400,000
|
|
|
Puerto Rico Electric Power Authority, Series AAA
1
|
|
|
5.250
|
|
|
|
07/01/2029
|
|
|
|
396,300
|
|
|
320,000
|
|
|
Puerto Rico Electric Power Authority, Series AAA
1
|
|
|
5.250
|
|
|
|
07/01/2030
|
|
|
|
315,862
|
|
|
440,000
|
|
|
Puerto Rico Electric Power Authority, Series AAA
1
|
|
|
5.250
|
|
|
|
07/01/2031
|
|
|
|
433,110
|
|
|
5,000
|
|
|
Puerto Rico HFC
1
|
|
|
5.100
|
|
|
|
12/01/2018
|
|
|
|
5,069
|
|
|
40,000
|
|
|
Puerto Rico HFC (Homeowner Mtg.)
1
|
|
|
5.100
|
|
|
|
12/01/2031
|
|
|
|
40,476
|
|
|
25,000
|
|
|
Puerto Rico Highway & Transportation Authority
1
|
|
|
5.000
|
|
|
|
07/01/2022
|
|
|
|
25,009
|
|
|
250,000
|
|
|
Puerto Rico Highway & Transportation Authority
1
|
|
|
5.300
|
|
|
|
07/01/2035
|
|
|
|
242,823
|
|
|
335,000
|
|
|
Puerto Rico IMEPCF (American Airlines)
5
|
|
|
6.450
|
|
|
|
12/01/2025
|
|
|
|
351,750
|
|
|
50,000
|
|
|
Puerto Rico Infrastructure
|
|
|
6.928
|
4
|
|
|
07/01/2043
|
|
|
|
6,968
|
|
|
1,000,000
|
|
|
Puerto Rico Infrastructure
|
|
|
7.000
|
4
|
|
|
07/01/2032
|
|
|
|
307,400
|
|
|
450,000
|
|
|
Puerto Rico Infrastructure
|
|
|
7.000
|
4
|
|
|
07/01/2033
|
|
|
|
128,813
|
|
|
30,000
|
|
|
Puerto Rico Infrastructure
|
|
|
7.000
|
4
|
|
|
07/01/2036
|
|
|
|
6,936
|
|
|
335,000
|
|
|
Puerto Rico Infrastructure
|
|
|
7.102
|
4
|
|
|
07/01/2035
|
|
|
|
83,194
|
|
|
3,000,000
|
|
|
Puerto Rico Infrastructure
|
|
|
7.332
|
4
|
|
|
07/01/2030
|
|
|
|
1,062,630
|
|
|
725,000
|
|
|
Puerto Rico Infrastructure (Mepsi Campus)
|
|
|
6.250
|
|
|
|
10/01/2024
|
|
|
|
750,832
|
|
|
2,120,000
|
|
|
Puerto Rico Infrastructure (Mepsi Campus)
|
|
|
6.500
|
|
|
|
10/01/2037
|
|
|
|
2,168,018
|
|
|
1,585,000
|
|
|
Puerto Rico Infrastructure Financing Authority
1
|
|
|
5.500
|
|
|
|
07/01/2023
|
|
|
|
1,620,393
|
|
|
1,000,000
|
|
|
Puerto Rico Infrastructure Financing Authority
1
|
|
|
5.500
|
|
|
|
07/01/2024
|
|
|
|
1,016,710
|
|
|
100,000
|
|
|
Puerto Rico ITEMECF (Ana G. Mendez University)
1
|
|
|
5.000
|
|
|
|
04/01/2027
|
|
|
|
101,084
|
|
|
100,000
|
|
|
Puerto Rico ITEMECF (Ana G. Mendez University)
1
|
|
|
5.125
|
|
|
|
04/01/2032
|
|
|
|
100,178
|
|
|
100,000
|
|
|
Puerto Rico ITEMECF (Ana G. Mendez University)
1
|
|
|
5.375
|
|
|
|
04/01/2042
|
|
|
|
100,888
|
|
|
50,000
|
|
|
Puerto Rico ITEMECF (Ashford Presbyterian Community)
|
|
|
6.700
|
|
|
|
11/01/2020
|
|
|
|
48,327
|
|
|
100,000
|
|
|
Puerto Rico ITEMECF (University of the Sacred Heart)
1
|
|
|
5.000
|
|
|
|
10/01/2042
|
|
|
|
101,131
|
|
|
25,000
|
|
|
Puerto Rico Municipal Finance Agency, Series A
1
|
|
|
5.500
|
|
|
|
07/01/2017
|
|
|
|
25,077
|
|
|
30,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
5.250
|
|
|
|
07/01/2033
|
|
|
|
28,267
|
|
|
45,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
5.250
|
|
|
|
07/01/2042
|
|
|
|
41,441
|
|
|
100,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
6.250
|
|
|
|
07/01/2026
|
|
|
|
107,498
|
|
|
250,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
6.250
|
|
|
|
07/01/2031
|
|
|
|
265,010
|
|
|
600,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
6.750
|
|
|
|
07/01/2036
|
|
|
|
648,582
|
|
|
1,000,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
7.000
|
|
|
|
07/01/2021
|
|
|
|
1,042,960
|
|
|
750,000
|
|
|
Puerto Rico Public Buildings Authority
1
|
|
|
7.000
|
|
|
|
07/01/2025
|
|
|
|
799,658
|
|
|
5,000
|
|
|
Puerto Rico Public Buildings Authority, Series D
1
|
|
|
5.250
|
|
|
|
07/01/2036
|
|
|
|
4,672
|
|
|
2,000,000
|
|
|
Puerto Rico Public Finance Corp., Series B
1
|
|
|
5.500
|
|
|
|
08/01/2031
|
|
|
|
1,977,100
|
|
|
750,000
|
|
|
Puerto Rico Sales Tax Financing Corp., Series A
1
|
|
|
5.375
|
|
|
|
08/01/2039
|
|
|
|
766,290
|
|
|
5,000,000
|
|
|
Puerto Rico Sales Tax Financing Corp., Series A
|
|
|
6.100
|
4
|
|
|
08/01/2044
|
|
|
|
808,200
|
|
|
500,000
|
|
|
Puerto Rico Sales Tax Financing Corp., Series A
1
|
|
|
6.375
|
|
|
|
08/01/2039
|
|
|
|
556,580
|
|
|
|
|
24
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
Coupon
|
|
|
Maturity
|
|
|
Value
|
|
|
U.S. Possessions
Continued
|
|
|
$ 1,000,000
|
|
|
Puerto Rico Sales Tax Financing Corp., Series A
1
|
|
|
6.500
|
%
|
|
|
08/01/2044
|
|
|
$
|
1,120,030
|
|
|
10,000,000
|
|
|
Puerto Rico Sales Tax Financing Corp., Series A
|
|
|
7.530
|
4
|
|
|
08/01/2056
|
|
|
|
714,800
|
|
|
8,000,000
|
|
|
Puerto Rico Sales Tax Financing Corp., Series C
3
|
|
|
5.750
|
|
|
|
08/01/2057
|
|
|
|
8,537,680
|
|
|
200,000
|
|
|
University of Puerto Rico
1
|
|
|
5.000
|
|
|
|
06/01/2025
|
|
|
|
193,398
|
|
|
250,000
|
|
|
University of Puerto Rico
1
|
|
|
5.000
|
|
|
|
06/01/2026
|
|
|
|
239,843
|
|
|
275,000
|
|
|
University of Puerto Rico, Series Q
1
|
|
|
5.000
|
|
|
|
06/01/2030
|
|
|
|
257,645
|
|
|
1,000,000
|
|
|
V.I. Public Finance Authority (Matching Fund
Loan Note)
1
|
|
|
5.250
|
|
|
|
10/01/2029
|
|
|
|
1,087,480
|
|
|
420,000
|
|
|
V.I. Tobacco Settlement Financing Corp. (TASC)
1
|
|
|
5.000
|
|
|
|
05/15/2021
|
|
|
|
414,187
|
|
|
300,000
|
|
|
V.I. Water & Power Authority
|
|
|
5.500
|
|
|
|
07/01/2017
|
|
|
|
300,717
|
|
|
|
|
|
|
61,681,690
|
|
|
Total Investments, at Value (Cost $158,099,579)109.5%
|
|
|
|
162,534,886
|
|
|
Liabilities in Excess of Other Assets(9.5)
|
|
|
|
(14,157,119
|
)
|
|
Net Assets100.0%
|
|
|
$
|
148,377,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes to Statement of Investments
*March 28, 2013 represents the last business day of the Funds 2013 fiscal year. See Note 1 of the accompanying Notes.
1.
All or a portion of the security position has been segregated for collateral to cover borrowings. See Note 6 of the accompanying Notes.
2.
All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after March 28, 2013. See Note 1 of the accompanying Notes.
3.
Security represents the underlying municipal bond with respect to an inverse floating rate security held by the Fund. The bond was purchased by the
Fund and subsequently transferred to a trust, which issued the related inverse floating rate security. See Note 1 of the accompanying Notes.
4.
Zero coupon bond reflects effective yield on the date of purchase.
5.
This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and/or principal payments. The rate shown is the
original contractual interest rate. See Note 1 of the accompanying Notes.
To simplify the listings of securities, abbreviations are used per
the table below:
|
|
|
AHA1HC
|
|
ARC/HDS Alamance #1 Hsg. Corp.
|
AHA3HC
|
|
ARC/HDS Alamance #3 Hsg. Corp.
|
AHA4HC
|
|
ARC/HDS Alamance #4 Hsg. Corp.
|
AHA7HC
|
|
ARC/HDS Alamance #7 Housing Corp.
|
AHACHC
|
|
ARC/HDS Alamance County Housing Corp.
|
AHEHC
|
|
ARC/HDS Elon Housing Corp.
|
ARC
|
|
Assoc. of Retarded Citizens
|
COP
|
|
Certificates of Participation
|
GO
|
|
General Obligation
|
HCC
|
|
Home Care of the Carolinas
|
HDS
|
|
Housing Devel. Services
|
HFA
|
|
Housing Finance Agency
|
HFC
|
|
Housing Finance Corp.
|
|
|
|
HPRHS
|
|
High Point Regional Health System
|
HPRHSvcs
|
|
High Point Regional Health Services
|
IF&PCFA
|
|
Industrial Facilities and Pollution Control Financing Authority
|
IMEPCF
|
|
Industrial, Medical and Environmental Pollution Control Facilities
|
ITEMECF
|
|
Industrial, Tourist, Educational, Medical and Environmental Community Facilities
|
JFK
|
|
John Fitzgerald Kennedy
|
PCMH
|
|
Pitt County Memorial Hospital
|
ROLs
|
|
Residual Option Longs
|
STHS
|
|
Stanly Health Services
|
STM
|
|
Stanly Manor
|
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
25
|
|
STATEMENT OF
INVESTMENTS
Continued
Footnotes to Statement of Investments
Continued
|
|
|
STMH
|
|
Stanly Memorial Hospital
|
STTLC
|
|
Stanly Total Living Center
|
TASC
|
|
Tobacco Settlement Asset-Backed Bonds
|
|
|
|
UHSEC
|
|
University Health Systems of Eastern Carolina
|
V.I.
|
|
United States Virgin Islands
|
See accompanying Notes to Financial
Statements.
|
|
|
26
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
STATEMENT OF
ASSETS AND LIABILITIES
March 28, 2013
1
|
|
|
|
|
Assets
|
|
|
|
Investments, at value (cost $158,099,579)see accompanying statement of investments
|
|
$
|
162,534,886
|
|
Cash
|
|
|
345,731
|
|
Receivables and other assets:
|
|
|
|
|
Interest
|
|
|
2,445,167
|
|
Investments sold
|
|
|
1,020,627
|
|
Shares of beneficial interest sold
|
|
|
243,685
|
|
Other
|
|
|
120,775
|
|
Total assets
|
|
|
166,710,871
|
|
Liabilities
|
|
|
|
Payables and other liabilities:
|
|
|
|
|
Payable for short-term floating rate notes issued (See Note 1)
|
|
|
8,000,000
|
|
Investments purchased (including $5,800,656 purchased on a when-issued or delayed delivery basis)
|
|
|
6,885,678
|
|
Payable on borrowings (See Note 6)
|
|
|
2,500,000
|
|
Shares of beneficial interest redeemed
|
|
|
762,343
|
|
Dividends
|
|
|
88,030
|
|
Distribution and service plan fees
|
|
|
29,553
|
|
Shareholder communications
|
|
|
11,509
|
|
Transfer and shareholder servicing agent fees
|
|
|
6,179
|
|
Trustees compensation
|
|
|
5,319
|
|
Interest expense on borrowings
|
|
|
306
|
|
Other
|
|
|
44,187
|
|
Total liabilities
|
|
|
18,333,104
|
|
Net Assets
|
|
$
|
148,377,767
|
|
Composition of Net Assets
|
|
|
|
Par value of shares of beneficial interest
|
|
$
|
12,167
|
|
Additional paid-in capital
|
|
|
151,882,153
|
|
Accumulated net investment income
|
|
|
333,748
|
|
Accumulated net realized loss on investments
|
|
|
(8,285,608
|
)
|
Net unrealized appreciation on investments
|
|
|
4,435,307
|
|
Net Assets
|
|
$
|
148,377,767
|
|
1.
March 28, 2013 represents the last business day of the Funds 2013 fiscal year. See Note 1 of the accompanying Notes.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
27
|
|
STATEMENT OF
ASSETS AND LIABILITIES
Continued
|
|
|
|
|
Net Asset Value Per Share
|
|
|
|
Class A Shares:
|
|
|
|
|
Net asset value and redemption price per share (based on net assets of $83,125,621
and 6,815,621 shares of beneficial interest outstanding)
|
|
$
|
12.20
|
|
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price)
|
|
$
|
12.81
|
|
Class B Shares:
|
|
|
|
|
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $4,140,599 and 339,621 shares of
beneficial interest outstanding)
|
|
$
|
12.19
|
|
Class C Shares:
|
|
|
|
|
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $51,239,345 and 4,202,228 shares of
beneficial interest outstanding)
|
|
$
|
12.19
|
|
Class Y Shares:
|
|
|
|
|
Net asset value, redemption price and offering price per share (based on net assets of
$9,872,202 and 809,283 shares of beneficial interest outstanding)
|
|
$
|
12.20
|
|
See accompanying Notes to Financial Statements.
|
|
|
28
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
STATEMENT OF
OPERATIONS
For the Year Ended March 28, 2013
1
|
|
|
|
|
Investment Income
|
|
|
|
Interest
|
|
$
|
7,106,541
|
|
Other income
|
|
|
12
|
|
Total investment income
|
|
|
7,106,553
|
|
Expenses
|
|
|
|
Management fees
|
|
|
732,795
|
|
Distribution and service plan fees:
|
|
|
|
|
Class A
|
|
|
177,522
|
|
Class B
|
|
|
44,059
|
|
Class C
|
|
|
479,043
|
|
Transfer and shareholder servicing agent fees:
|
|
|
|
|
Class A
|
|
|
33,944
|
|
Class B
|
|
|
4,206
|
|
Class C
|
|
|
26,438
|
|
Class Y
|
|
|
5,700
|
|
Shareholder communications:
|
|
|
|
|
Class A
|
|
|
16,468
|
|
Class B
|
|
|
2,466
|
|
Class C
|
|
|
14,106
|
|
Class Y
|
|
|
2,655
|
|
Borrowing fees
|
|
|
99,081
|
|
Interest expense and fees on short-term floating rate notes issued (See Note 1)
|
|
|
61,146
|
|
Interest expense on borrowings
|
|
|
4,453
|
|
Trustees compensation
|
|
|
2,548
|
|
Custodian fees and expenses
|
|
|
858
|
|
Other
|
|
|
51,590
|
|
Total expenses
|
|
|
1,759,078
|
|
Less waivers and reimbursements of expenses
|
|
|
(141,178
|
)
|
Net expenses
|
|
|
1,617,900
|
|
Net Investment Income
|
|
|
5,488,653
|
|
Realized and Unrealized Gain
|
|
|
|
Net realized gain on investments
|
|
|
502,965
|
|
Net change in unrealized appreciation/depreciation on investments
|
|
|
1,528,126
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
7,519,744
|
|
1.
March 28, 2013 represents the last business day of the Funds 2013 fiscal year. See Note 1 of the
accompanying Notes.
See accompanying Notes to Financial Statements.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
29
|
|
STATEMENTS OF
CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
Year Ended
March 28,
2013
1
|
|
|
Year Ended
March 30,
2012
1
|
|
Operations
|
|
|
|
|
|
|
Net investment income
|
|
$
|
5,488,653
|
|
|
$
|
5,034,963
|
|
Net realized gain (loss)
|
|
|
502,965
|
|
|
|
(1,443,358
|
)
|
Net change in unrealized appreciation/depreciation
|
|
|
1,528,126
|
|
|
|
13,776,853
|
|
Net increase in net assets resulting from operations
|
|
|
7,519,744
|
|
|
|
17,368,458
|
|
Dividends and/or Distributions to Shareholders
|
|
|
|
|
|
|
Dividends from net investment income:
|
|
|
|
|
|
|
|
|
Class A
|
|
|
(3,404,574
|
)
|
|
|
(2,994,443
|
)
|
Class B
|
|
|
(173,301
|
)
|
|
|
(160,172
|
)
|
Class C
|
|
|
(1,870,917
|
)
|
|
|
(1,740,550
|
)
|
Class Y
|
|
|
(366,858
|
)
|
|
|
(53,174
|
)
|
|
|
|
(5,815,650
|
)
|
|
|
(4,948,339
|
)
|
Beneficial Interest Transactions
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
|
|
|
|
|
|
|
|
|
Class A
|
|
|
22,837,425
|
|
|
|
(532,672
|
)
|
Class B
|
|
|
(8,101
|
)
|
|
|
703,465
|
|
Class C
|
|
|
8,853,096
|
|
|
|
4,312,025
|
|
Class Y
|
|
|
4,634,549
|
|
|
|
5,104,481
|
|
|
|
|
36,316,969
|
|
|
|
9,587,299
|
|
Net Assets
|
|
|
|
|
|
|
Total increase
|
|
|
38,021,063
|
|
|
|
22,007,418
|
|
Beginning of period
|
|
|
110,356,704
|
|
|
|
88,349,286
|
|
End of period (including accumulated net investment income of $333,748 and $671,555, respectively)
|
|
$
|
148,377,767
|
|
|
$
|
110,356,704
|
|
1.
March 28, 2013 and March 30, 2012 represent the last business days of the Funds respective
reporting periods. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
|
|
|
30
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
STATEMENT OF
CASH FLOWS
For the Year Ended March 28, 2013
1
|
|
|
|
|
Cash Flows from Operating Activities
|
|
|
|
Net increase in net assets from operations
|
|
$
|
7,519,744
|
|
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
|
|
|
|
|
Purchase of investment securities
|
|
|
(40,796,515
|
)
|
Proceeds from disposition of investment securities
|
|
|
7,744,508
|
|
Short-term investment securities, net
|
|
|
(12,048,795
|
)
|
Premium amortization
|
|
|
622,064
|
|
Discount accretion
|
|
|
(745,495
|
)
|
Net realized gain on investments
|
|
|
(502,965
|
)
|
Net change in unrealized appreciation/depreciation on investments
|
|
|
(1,528,126
|
)
|
Change in assets:
|
|
|
|
|
Increase in other assets
|
|
|
(98,934
|
)
|
Increase in interest receivable
|
|
|
(626,401
|
)
|
Increase in receivable for securities sold
|
|
|
(1,020,627
|
)
|
Change in liabilities:
|
|
|
|
|
Increase in payable for securities purchased
|
|
|
6,861,002
|
|
Increase in other liabilities
|
|
|
18,105
|
|
Net cash used in operating activities
|
|
|
(34,602,435
|
)
|
Cash Flows from Financing Activities
|
|
|
|
|
Proceeds from bank borrowings
|
|
|
25,200,000
|
|
Payments on bank borrowings
|
|
|
(22,700,000
|
)
|
Proceeds from shares sold
|
|
|
51,447,297
|
|
Payments on shares redeemed
|
|
|
(19,351,798
|
)
|
Cash distributions paid
|
|
|
(1,083,350
|
)
|
Net cash provided by financing activities
|
|
|
33,512,149
|
|
Net decrease in cash
|
|
|
(1,090,286
|
)
|
Cash, beginning balance
|
|
|
1,436,017
|
|
Cash, ending balance
|
|
$
|
345,731
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of $4,710,272.
|
|
|
|
|
Cash paid for interest on bank borrowings$4,221.
|
|
|
|
|
Cash paid for interest on short-term floating rate notes issued$61,146.
|
|
|
|
|
1.
March 28, 2013 represents the last business day of the Funds 2013 fiscal year. See Note 1 of the
accompanying Notes.
See accompanying Notes to Financial Statements.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
31
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
March 28,
|
|
|
Year Ended
March 30,
|
|
|
Year Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
Class A
|
|
2013
1
|
|
|
2012
1
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
$
|
11.99
|
|
|
$
|
10.48
|
|
|
$
|
11.22
|
|
|
$
|
8.67
|
|
|
$
|
12.34
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
|
.54
|
|
|
|
.64
|
|
|
|
.69
|
|
|
|
.64
|
|
|
|
.70
|
|
Net realized and unrealized gain (loss)
|
|
|
.24
|
|
|
|
1.51
|
|
|
|
(.78
|
)
|
|
|
2.57
|
|
|
|
(3.71
|
)
|
Total from investment operations
|
|
|
.78
|
|
|
|
2.15
|
|
|
|
(.09
|
)
|
|
|
3.21
|
|
|
|
(3.01
|
)
|
Dividends and/or distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(.57
|
)
|
|
|
(.64
|
)
|
|
|
(.65
|
)
|
|
|
(.66
|
)
|
|
|
(.66
|
)
|
Net asset value, end of period
|
|
$
|
12.20
|
|
|
$
|
11.99
|
|
|
$
|
10.48
|
|
|
$
|
11.22
|
|
|
$
|
8.67
|
|
Total Return, at Net Asset Value
3
|
|
|
6.60
|
%
|
|
|
20.93
|
%
|
|
|
(1.03
|
)%
|
|
|
37.78
|
%
|
|
|
(25.00
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$83,126
|
|
|
|
$59,394
|
|
|
|
$52,758
|
|
|
|
$52,109
|
|
|
|
$40,512
|
|
Average net assets (in thousands)
|
|
|
$73,464
|
|
|
|
$53,775
|
|
|
|
$57,465
|
|
|
|
$48,913
|
|
|
|
$42,919
|
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
4.40
|
%
|
|
|
5.66
|
%
|
|
|
6.15
|
%
|
|
|
6.18
|
%
|
|
|
6.70
|
%
|
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
|
|
0.90
|
%
|
|
|
0.93
|
%
|
|
|
0.95
|
%
|
|
|
0.96
|
%
|
|
|
0.95
|
%
|
Interest and fees from borrowings
|
|
|
0.08
|
%
|
|
|
0.05
|
%
|
|
|
0.07
|
%
|
|
|
0.19
|
%
|
|
|
0.60
|
%
|
Interest and fees on short-term floating rate notes issued
5
|
|
|
0.05
|
%
|
|
|
0.10
|
%
|
|
|
0.15
|
%
|
|
|
0.09
|
%
|
|
|
0.21
|
%
|
Total expenses
|
|
|
1.03
|
%
|
|
|
1.08
|
%
|
|
|
1.17
|
%
|
|
|
1.24
|
%
|
|
|
1.76
|
%
|
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
6
|
|
|
0.93
|
%
|
|
|
0.95
|
%
|
|
|
1.02
|
%
|
|
|
1.01
|
%
|
|
|
1.01
|
%
|
Portfolio turnover rate
|
|
|
6
|
%
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
23
|
%
|
|
|
28
|
%
|
1.
March 28, 2013 and March 30, 2012 represent the last business days of the Funds respective
reporting periods. See Note 1 of the accompanying Notes.
2.
Per share amounts calculated based on the average shares outstanding during
the period.
3.
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.
4.
Annualized for periods less than one full year.
5.
Interest and fee expense relates to
the Funds liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.
6.
Prior to July 1, 2009, the Manager voluntarily agreed to waive management fees and/or reimburse the Fund for certain expenses so that Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses,
excluding expenses attributable to investments in inverse floaters, as a percentage of average annual net assets would not exceed 0.80%. Effective July 1, 2009, the Manager amended this voluntary undertaking so that this waiver would also
exclude interest and fees from borrowings.
See accompanying Notes to Financial Statements.
|
|
|
32
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
March 28,
|
|
|
Year Ended
March 30,
|
|
|
Year Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
Class B
|
|
2013
1
|
|
|
2012
1
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
$
|
11.98
|
|
|
$
|
10.48
|
|
|
$
|
11.22
|
|
|
$
|
8.67
|
|
|
$
|
12.33
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
|
.45
|
|
|
|
.55
|
|
|
|
.60
|
|
|
|
.56
|
|
|
|
.62
|
|
Net realized and unrealized gain (loss)
|
|
|
.24
|
|
|
|
1.50
|
|
|
|
(.78
|
)
|
|
|
2.57
|
|
|
|
(3.70
|
)
|
Total from investment operations
|
|
|
.69
|
|
|
|
2.05
|
|
|
|
(.18
|
)
|
|
|
3.13
|
|
|
|
(3.08
|
)
|
Dividends and/or distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(.48
|
)
|
|
|
(.55
|
)
|
|
|
(.56
|
)
|
|
|
(.58
|
)
|
|
|
(.58
|
)
|
Net asset value, end of period
|
|
$
|
12.19
|
|
|
$
|
11.98
|
|
|
$
|
10.48
|
|
|
$
|
11.22
|
|
|
$
|
8.67
|
|
Total Return, at Net Asset Value
3
|
|
|
5.81
|
%
|
|
|
19.94
|
%
|
|
|
(1.77
|
)%
|
|
|
36.75
|
%
|
|
|
(25.51
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$4,141
|
|
|
|
$4,073
|
|
|
|
$2,934
|
|
|
|
$2,720
|
|
|
|
$954
|
|
Average net assets (in thousands)
|
|
|
$4,412
|
|
|
|
$3,338
|
|
|
|
$3,160
|
|
|
|
$1,903
|
|
|
|
$801
|
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
3.67
|
%
|
|
|
4.88
|
%
|
|
|
5.39
|
%
|
|
|
5.30
|
%
|
|
|
6.03
|
%
|
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
|
|
1.73
|
%
|
|
|
1.75
|
%
|
|
|
1.77
|
%
|
|
|
1.82
|
%
|
|
|
1.88
|
%
|
Interest and fees from borrowings
|
|
|
0.08
|
%
|
|
|
0.05
|
%
|
|
|
0.07
|
%
|
|
|
0.19
|
%
|
|
|
0.60
|
%
|
Interest and fees on short-term floating rate notes issued
5
|
|
|
0.05
|
%
|
|
|
0.10
|
%
|
|
|
0.15
|
%
|
|
|
0.09
|
%
|
|
|
0.21
|
%
|
Total expenses
|
|
|
1.86
|
%
|
|
|
1.90
|
%
|
|
|
1.99
|
%
|
|
|
2.10
|
%
|
|
|
2.69
|
%
|
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
6
|
|
|
1.68
|
%
|
|
|
1.70
|
%
|
|
|
1.77
|
%
|
|
|
1.77
|
%
|
|
|
1.76
|
%
|
Portfolio turnover rate
|
|
|
6
|
%
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
23
|
%
|
|
|
28
|
%
|
1.
March 28, 2013 and March 30, 2012 represent the last business days of the Funds respective
reporting periods. See Note 1 of the accompanying Notes.
2.
Per share amounts calculated based on the average shares outstanding during
the period.
3.
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.
4.
Annualized for periods less than one full year.
5.
Interest and fee expense relates to
the Funds liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.
6.
Prior to July 1, 2009, the Manager voluntarily agreed to waive management fees and/or reimburse the Fund for certain expenses so that Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses,
excluding expenses attributable to investments in inverse floaters, as a percentage of average annual net assets would not exceed 1.55%. Effective July 1, 2009, the Manager amended this voluntary undertaking so that this waiver would also
exclude interest and fees from borrowings.
See accompanying Notes to Financial Statements.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
33
|
|
FINANCIAL
HIGHLIGHTS
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
March 28,
|
|
|
Year Ended
March 30,
|
|
|
Year Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
Class C
|
|
2013
1
|
|
|
2012
1
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
$
|
11.98
|
|
|
$
|
10.48
|
|
|
$
|
11.22
|
|
|
$
|
8.67
|
|
|
$
|
12.33
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
|
.45
|
|
|
|
.55
|
|
|
|
.61
|
|
|
|
.56
|
|
|
|
.62
|
|
Net realized and unrealized gain (loss)
|
|
|
.24
|
|
|
|
1.50
|
|
|
|
(.79
|
)
|
|
|
2.57
|
|
|
|
(3.70
|
)
|
Total from investment operations
|
|
|
.69
|
|
|
|
2.05
|
|
|
|
(.18
|
)
|
|
|
3.13
|
|
|
|
(3.08
|
)
|
Dividends and/or distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(.48
|
)
|
|
|
(.55
|
)
|
|
|
(.56
|
)
|
|
|
(.58
|
)
|
|
|
(.58
|
)
|
Net asset value, end of period
|
|
$
|
12.19
|
|
|
$
|
11.98
|
|
|
$
|
10.48
|
|
|
$
|
11.22
|
|
|
$
|
8.67
|
|
Total Return, at Net Asset Value
3
|
|
|
5.81
|
%
|
|
|
19.94
|
%
|
|
|
(1.77
|
)%
|
|
|
36.75
|
%
|
|
|
(25.51
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$51,239
|
|
|
|
$41,724
|
|
|
|
$32,657
|
|
|
|
$28,076
|
|
|
|
$10,208
|
|
Average net assets (in thousands)
|
|
|
$47,927
|
|
|
|
$36,216
|
|
|
|
$33,529
|
|
|
|
$19,091
|
|
|
|
$9,938
|
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
3.65
|
%
|
|
|
4.89
|
%
|
|
|
5.40
|
%
|
|
|
5.31
|
%
|
|
|
5.99
|
%
|
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
|
|
1.67
|
%
|
|
|
1.69
|
%
|
|
|
1.72
|
%
|
|
|
1.75
|
%
|
|
|
1.96
|
%
|
Interest and fees from borrowings
|
|
|
0.08
|
%
|
|
|
0.05
|
%
|
|
|
0.07
|
%
|
|
|
0.19
|
%
|
|
|
0.60
|
%
|
Interest and fees on short-term floating rate notes issued
5
|
|
|
0.05
|
%
|
|
|
0.10
|
%
|
|
|
0.15
|
%
|
|
|
0.09
|
%
|
|
|
0.21
|
%
|
Total expenses
|
|
|
1.80
|
%
|
|
|
1.84
|
%
|
|
|
1.94
|
%
|
|
|
2.03
|
%
|
|
|
2.77
|
%
|
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
6
|
|
|
1.68
|
%
|
|
|
1.70
|
%
|
|
|
1.77
|
%
|
|
|
1.77
|
%
|
|
|
1.76
|
%
|
Portfolio turnover rate
|
|
|
6
|
%
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
23
|
%
|
|
|
28
|
%
|
1.
March 28, 2013 and March 30, 2012 represent the last business days of the Funds respective
reporting periods. See Note 1 of the accompanying Notes.
2.
Per share amounts calculated based on the average shares outstanding during
the period.
3.
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.
4.
Annualized for periods less than one full year.
5.
Interest and fee expense relates to
the Funds liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.
6.
Prior to July 1, 2009, the Manager voluntarily agreed to waive management fees and/or reimburse the Fund for certain expenses so that Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses,
excluding expenses attributable to investments in inverse floaters, as a percentage of average annual net assets would not exceed 1.55%. Effective July 1, 2009, the Manager amended this voluntary undertaking so that this waiver would also
exclude interest and fees from borrowings.
See accompanying Notes to Financial Statements.
|
|
|
34
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
|
|
|
|
|
|
|
Class Y
|
|
Year Ended
March 28,
2013
1
|
|
|
Period Ended
March 30,
2012
1,2
|
|
Per Share Operating Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
$
|
11.99
|
|
|
$
|
11.10
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
Net investment income
3
|
|
|
.55
|
|
|
|
.45
|
|
Net realized and unrealized gain
|
|
|
.25
|
|
|
|
.87
|
|
Total from investment operations
|
|
|
.80
|
|
|
|
1.32
|
|
Dividends and/or distributions to shareholders:
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(.59
|
)
|
|
|
(.43
|
)
|
Net asset value, end of period
|
|
$
|
12.20
|
|
|
$
|
11.99
|
|
Total Return, at Net Asset Value
4
|
|
|
6.72
|
%
|
|
|
12.14
|
%
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$9,872
|
|
|
|
$5,166
|
|
Average net assets (in thousands)
|
|
|
$7,803
|
|
|
|
$1,477
|
|
Ratios to average net assets:
5
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
4.48
|
%
|
|
|
5.81
|
%
|
Expenses excluding interest and fees on short-term floating rate notes issued and interest and fees from borrowings
|
|
|
0.70
|
%
|
|
|
0.66
|
%
|
Interest and fees from borrowings
|
|
|
0.08
|
%
|
|
|
0.03
|
%
|
Interest and fees on short-term floating rate notes issued
6
|
|
|
0.05
|
%
|
|
|
0.10
|
%
|
Total expenses
|
|
|
0.83
|
%
|
|
|
0.79
|
%
|
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
|
|
|
0.83
|
%
|
|
|
0.79
|
%
|
Portfolio turnover rate
|
|
|
6
|
%
|
|
|
19
|
%
|
1.
March 28, 2013 and March 30,
2012 represent the last business days of the Funds respective reporting periods. See Note 1 of the accompanying Notes.
2.
For the period from July 29, 2011 (inception of offering) to March 30, 2012.
3.
Per share amounts calculated based on the average shares outstanding during the period.
4.
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.
5.
Annualized for
periods less than one full year.
6.
Interest and fee expense relates to the Funds liability for short-term floating rate notes issued in conjunction with inverse floating rate security transactions.
See accompanying Notes to Financial Statements.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
35
|
|
NOTES TO
FINANCIAL
STATEMENTS
March 28, 2013
1. Significant Accounting Policies
Oppenheimer Rochester North Carolina Municipal Fund (the Fund) is registered under the Investment Company Act of 1940, as amended as a
non-diversified, open-end management investment company. The investment objective of the Fund is to seek a high level of current interest income exempt from federal and North Carolina state income taxes for individual investors as is consistent with
preservation of capital. The Funds investment adviser was OppenheimerFunds, Inc. (OFI or the Sub-Adviser), through December 31, 2012. Effective January 1, 2013, the Funds investment adviser is OFI Global
Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OFI. The Manager has entered into a sub-advisory agreement with OFI, as of the same effective date.
The Fund offers Class A, Class C and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012.
Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. Class A shares
are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y
shares. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to
each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, B and C shares have separate distribution and/or service plans under which
they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
Annual Periods.
The last day of the Funds current and prior fiscal year was the last day the New York Stock Exchange was open for trading. The
Funds financial statements have been presented through those dates to maintain consistency with the Funds net asset value calculations used for shareholder transactions.
Inverse Floating Rate Securities.
The Fund invests in inverse floating rate securities that pay interest at a rate that varies inversely with short-term
interest rates. Because inverse floating rate securities are leveraged instruments, the value of an inverse floating rate security will change more significantly in response to changes in interest rates and other market fluctuations than the market
value of a conventional fixed-rate municipal security of similar maturity and credit quality, including the municipal bond underlying an inverse floating rate security.
|
|
|
36
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
An inverse floating rate security is created as part of a financial transaction referred to as
a tender option bond transaction. In most cases, in a tender option bond transaction the Fund sells a fixed-rate municipal bond (the underlying municipal bond) to a broker dealer (the sponsor). The sponsor creates
a trust (the Trust) into which it deposits the underlying municipal bond. The Trust then issues and sells short-term floating rate securities with a fixed principal amount representing a senior interest in the underlying municipal bond
to third parties and a residual, subordinate interest in the underlying municipal bond (referred to as an inverse floating rate security) to the Fund. The interest rate on the short-term floating rate securities resets periodically,
usually weekly, to a prevailing market rate and holders of these securities are granted the option to tender their securities back to the Trust for repurchase at their principal amount plus accrued interest thereon (the purchase price)
periodically, usually daily or weekly. A remarketing agent for the Trust is required to attempt to re-sell any tendered short-term floating rate securities to new investors for the purchase price. If the remarketing agent is unable to successfully
re-sell the tendered short-term floating rate securities, a liquidity provider to the Trust (typically an affiliate of the sponsor) must contribute cash to the Trust to ensure that the tendering holders receive the purchase price of their securities
on the repurchase date.
Because holders of the short-term floating rate securities are granted the right to tender their
securities to the Trust for repurchase at frequent intervals for the purchase price, with such payment effectively guaranteed by the liquidity provider, the securities generally bear short-term rates of interest commensurate with money market
instruments. When interest is paid on the underlying municipal bond to the Trust, such proceeds are first used to pay the Trusts administrative expenses and accrued interest to holders of the short-term floating rate securities, with any
remaining amounts being paid to the Fund, as the holder of the inverse floating rate security. Accordingly, the amount of such interest on the underlying municipal bond paid to the Fund is inversely related to the rate of interest on the short-term
floating rate securities. Additionally, because the principal amount of the short-term floating rate securities is fixed and is not adjusted in response to changes in the market value of the underlying municipal bond, any change in the market value
of the underlying municipal bond is reflected entirely in a change to the value of the inverse floating rate security.
Typically,
the terms of an inverse floating rate security grant certain rights to the Fund, as holder. For example, the Fund may have the right upon request to require that the Trust compel a tender of the short-term floating rate securities to facilitate the
Funds acquisition of the underlying municipal bond. Following such a request, the Fund pays the Trust the purchase price of the short-term floating rate securities and a specified portion of any market value gain on the underlying municipal
bond since its deposit into the Trust, which the Trust uses to redeem the short-term floating rate securities. The Trust then distributes the underlying municipal bond to the Fund. Similarly, the Fund may have the right to directly purchase the
underlying municipal bond from the Trust by paying to the Trust the purchase price of the short-term floating rate securities and a specified
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
37
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
1. Significant Accounting Policies
Continued
portion of any market value gain on the underlying municipal bond since its deposit into the Trust, which the Trust uses to redeem the short-term floating rate securities. Through the exercise of
either of these rights, the Fund can voluntarily terminate or collapse the Trust, terminate its investment in the related inverse floating rate security and obtain the underlying municipal bond. Additionally, the Fund also typically has
the right to exchange with the Trust (i) a principal amount of short-term floating rate securities held by the Fund for a corresponding additional principal amount of the inverse floating rate security or (ii) a principal amount of the
inverse floating rate security held by the Fund for a corresponding additional principal amount of short-term floating rate securities (which are typically then sold to other investors). Through the exercise of this right, the Fund may increase (or
decrease) the principal amount of short-term floating rate securities outstanding, thereby increasing (or decreasing) the amount of leverage provided by the short-term floating rate securities to the Funds investment exposure to the underlying
municipal bond.
The Funds investments in inverse floating rate securities involve certain risks. As short-term interest
rates rise, an inverse floating rate security produces less current income (and, in extreme cases, may pay no income) and as short-term interest rates fall, an inverse floating rate security produces more current income. Thus, if short-term interest
rates rise after the issuance of the inverse floating rate security, any yield advantage is reduced or eliminated. All inverse floating rate securities entail some degree of leverage represented by the outstanding principal amount of the related
short-term floating rate securities. The value of, and income earned on, an inverse floating rate security that has a higher degree of leverage will fluctuate more significantly in response to changes in interest rates and to changes in the market
value of the related underlying municipal bond than that of an inverse floating rate security with a lower degree of leverage, and is more likely to be eliminated entirely under adverse market conditions. Changes in the value of an inverse floating
rate security will also be more significant than changes in the market value of the related underlying municipal bond because the leverage provided by the related short-term floating rate securities increases the sensitivity of an inverse floating
rate security to changes in interest rates and to the market value of the underlying municipal bond. An inverse floating rate security can be expected to underperform fixed-rate municipal bonds when the difference between long-term and short-term
interest rates is decreasing (or is already small) or when long-term interest rates are rising, but can be expected to outperform fixed-rate municipal bonds when the difference between long-term and short-term interest rates is increasing (or is
already large) or when long-term interest rates are falling. Additionally, a tender option bond transaction typically provides for the automatic termination or collapse of a Trust upon the occurrence of certain adverse events, usually
referred to as mandatory tender events or tender option termination events. These events may include, among others, a credit ratings downgrade of the underlying municipal bond below a specified level, a decrease in the market
value of the underlying municipal bond below a specified amount, a bankruptcy of the liquidity provider or the inability of
|
|
|
38
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
the remarketing agent to re-sell to new investors short-term floating rate securities that have been tendered for repurchase by holders thereof. Following the occurrence of such an event, the
underlying municipal bond is generally sold for current market value and the proceeds distributed to holders of the short-term floating rate securities and inverse floating rate security, with the holder of the inverse floating rate security (the
Fund) generally receiving the proceeds of such sale only after the holders of the short-term floating rate securities have received proceeds equal to the purchase price of their securities (and the liquidity provider is generally required to
contribute cash to the Trust only in an amount sufficient to ensure that the holders of the short-term floating rate securities receive the purchase price of their securities in connection with such termination of the Trust). Following the
occurrence of such events, the Fund could potentially lose the entire amount of its investment in the inverse floating rate security.
Finally, the Fund may enter into shortfall/reimbursement agreements with the liquidity provider of certain tender option bond transactions in connection with certain inverse floating rate securities held by
the Fund. These agreements commit the Fund to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a Trust, including following the termination of a Trust resulting from the occurrence of a mandatory
tender event. In connection with the occurrence of such an event and the termination of the Trust triggered thereby, the shortfall/reimbursement agreement will make the Fund liable for the amount of the negative difference, if any, between the
liquidation value of the underlying municipal bond and the purchase price of the short-term floating rate securities issued by the Trust. Under the standard terms of a tender option bond transaction, absent such a shortfall/reimbursement agreement,
the Fund, as holder of the inverse floating rate security, would not be required to make such a reimbursement payment to the liquidity provider. The Sub-Adviser monitors the Funds potential exposure with respect to these agreements on a daily
basis and intends to take action to terminate the Funds investment in related inverse floating rate securities, if it deems it appropriate to do so. As of March 28, 2013, the Funds maximum exposure under such agreements is estimated
at $8,000,000.
When the Fund creates an inverse floating rate security in a tender option bond transaction by selling an
underlying municipal bond to a sponsor for deposit into a Trust, the transaction is considered a secured borrowing for financial reporting purposes. As a result of such accounting treatment, the Fund includes the underlying municipal bond on its
Statement of Investments and as an asset on its Statement of Assets and Liabilities (but does not separately include the related inverse floating rate security on either). The Fund also includes a liability on its Statement of Assets and Liabilities
equal to the outstanding principal amount and accrued interest on the related short-term floating rate securities issued by the Trust. Interest on the underlying municipal bond is recorded as investment income on the Funds Statement of
Operations, while interest payable on the related short-term floating rate securities is recorded as interest expense. At March 28, 2013, municipal bond holdings with a value of $17,291,440 shown on the Funds Statement of Investments are
held by such Trusts and serve as the underlying municipal bonds for the related $8,000,000 in short-term floating rate securities issued and outstanding at that date.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
39
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
1. Significant Accounting Policies
Continued
At March 28, 2013, the inverse floating rate securities
associated with tender option bond transactions accounted for as secured borrowings were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
Inverse Floater
1
|
|
Coupon
Rate
2
|
|
Maturity
Date
|
|
Value
|
|
|
$4,000,000
|
|
|
NC Medical Care Commission ROLs
3
|
|
|
|
8.001
|
%
|
|
|
|
6/1/42
|
|
|
|
$
|
4,753,760
|
|
|
|
4,000,000
|
|
|
Puerto Rico Sales Tax Financing Corp. ROLs
3
|
|
|
|
9.234
|
|
|
|
|
8/1/57
|
|
|
|
|
4,537,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,291,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
For a list of abbreviations used in the Inverse Floater table see the Portfolio Abbreviations table at the end of
the Statement of Investments.
2.
Represents the current interest rate for the inverse floating rate security.
3.
Represents an inverse floating rate security that is subject to a shortfall/reimbursement agreement.
The Fund may also purchase an inverse floating rate security created as part of a tender option bond transaction not initiated by the Fund when a third
party, such as a municipal issuer or financial institution, transfers an underlying municipal bond to a Trust. For financial reporting purposes, the Fund includes the inverse floating rate security related to such transaction on its Statement of
Investments and as an asset on its Statement of Assets and Liabilities, and interest on the security is recorded as investment income on the Funds Statement of Operations.
The Fund may invest in inverse floating rate securities with any degree of leverage (as measured by the outstanding principal amount of
related short-term floating rate securities). However, the Fund may only expose up to 20% of its total assets to the effects of leverage from its investments in inverse floating rate securities. This limitation is measured by comparing the aggregate
principal amount of the short-term floating rate securities that are related to the inverse floating rate securities held by the Fund to the total assets of the Fund. The Funds exposure to the effects of leverage from its investments in
inverse floating rate securities amounts to $8,000,000 or 4.80% of its total assets as of March 28, 2013.
Securities on a When-Issued or Delayed Delivery Basis.
The Fund may purchase securities on a when-issued basis, and may purchase or sell
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. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do
not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Funds net asset value to the extent the
Fund executes such transactions while remaining substantially fully invested. 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 or dispose of the security at a price and yield it considers advantageous. The Fund may
|
|
|
40
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase.
As of March 28, 2013, the Fund had purchased securities issued on a when-issued or delayed delivery basis as follows:
|
|
|
|
|
|
|
When-Issued or
Delayed Delivery
Basis Transactions
|
|
Purchased securities
|
|
$
|
5,800,656
|
|
Credit Risk.
The Fund invests in high-yield,
non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities that have missed
an interest payment, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently miss an interest payment. Information concerning securities not accruing interest as of March 28, 2013 is as follows:
|
|
|
|
|
Cost
|
|
$
|
335,000
|
|
Market Value
|
|
$
|
351,750
|
|
Market Value as a % of Net Assets
|
|
|
0.24
|
%
|
Concentration Risk.
There are certain risks
arising from geographic concentration in any state, commonwealth or territory. Certain economic, regulatory or political developments occurring in the state, commonwealth or territory may impair the ability of certain issuers of municipal securities
to pay principal and interest on their obligations.
Allocation of Income, Expenses, Gains and Losses.
Income, expenses (other than those attributable
to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged
against the operations of that class.
Federal Taxes.
The Fund intends to comply with provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal
income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds tax return filings generally remain open for the three preceding fiscal
reporting period ends.
The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under
the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
41
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
1. Significant Accounting Policies
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed
Net Investment
Income
|
|
Undistributed
Long-Term
Gain
|
|
|
Accumulated
Loss
Carryforward
1,2,3
|
|
|
Net Unrealized
Appreciation
Based on Cost of
Securities and
Other
Investments for Federal
Income Tax Purposes
|
|
$165,514
|
|
$
|
|
|
|
$
|
8,274,798
|
|
|
$
|
4,665,230
|
|
1.
As of March 28, 2013, the Fund had $8,274,798 of net capital loss carryforwards available to offset future
realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with
expiration dates.
|
|
|
|
|
Expiring
|
|
|
|
2017
|
|
$
|
2,034,983
|
|
2018
|
|
|
3,860,428
|
|
No expiration
|
|
|
2,379,387
|
|
|
|
|
|
|
Total
|
|
$
|
8,274,798
|
|
|
|
|
|
|
2.
During the
fiscal year ended March 28, 2013, the Fund utilized $527,006 of capital loss carryforward to offset capital gains realized in that fiscal year.
3.
During the fiscal year ended March 30, 2012, the Fund did not utilize any capital loss
carryforward.
Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of
dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal
year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.
Accordingly, the following amounts have been reclassified for March 31, 2013. Net assets of the Fund were unaffected by the reclassifications.
|
|
|
|
|
Reduction
to Accumulated
Net Investment
Income
|
|
Reduction
to Accumulated Net
Realized Loss
on Investments
|
|
$10,810
|
|
$
|
10,810
|
|
The tax character of distributions paid during the years ended March 31, 2013 and March 31, 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
March 31, 2013
|
|
|
Year Ended
March 31, 2012
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
|
Exempt-interest dividends
|
|
$
|
5,617,427
|
|
|
$
|
4,939,776
|
|
Ordinary income
|
|
|
198,223
|
|
|
|
8,563
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
5,815,650
|
|
|
$
|
4,948,339
|
|
|
|
|
|
|
|
|
|
|
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of
securities and other investments for federal income tax purposes as of March 28, 2013 are noted in the following table. The primary difference
|
|
|
42
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement
unrealized gain or loss.
|
|
|
|
|
Federal tax cost of securities
|
|
$
|
149,859,495
|
1
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
7,011,571
|
|
Gross unrealized depreciation
|
|
|
(2,346,341
|
)
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
4,665,230
|
|
|
|
|
|
|
1.
The Federal
tax cost of securities does not include cost of $8,010,161, 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.
Trustees Compensation.
The Fund has adopted an unfunded retirement plan (the
Plan) for the Funds independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31,
2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with respect
to their benefits under the Plan. During the year ended March 28, 2013, the Funds projected benefit obligations, payments to retired trustees and accumulated liability were as follows:
|
|
|
|
|
Projected Benefit Obligations Increased
|
|
$
|
375
|
|
Payments Made to Retired Trustees
|
|
|
252
|
|
Accumulated Liability as of March 28, 2013
|
|
|
1,846
|
|
The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to
defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been
invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to
the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of trustees fees under the plan will not affect the net assets of
the Fund, and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Dividends and Distributions to Shareholders.
Dividends and distributions to shareholders, which are determined in accordance with income tax regulations
and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
43
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
1. Significant Accounting Policies
Continued
Investment
Income.
Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
Custodian Fees.
Custodian fees and expenses in the Statement of Operations may include interest expense incurred by the Fund on any cash
overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. The Reduction to custodian expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the
period. Such interest expense and other custodian fees may be paid with these earnings.
Security Transactions.
Security transactions
are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications.
The Funds organizational documents provide current and former trustees and officers with a limited indemnification against
liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these
arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases
in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Securities Valuation
The Fund calculates the net
asset value of its shares as of the close of the New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility
for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not
readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the
fair valuation was determined.
|
|
|
44
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
Valuation Methods and Inputs
Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.
The following methodologies are used to determine the market value or the fair value of the types of securities described below:
Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) are
valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Funds assets are valued. In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the current days closing bid and asked prices, and if not, at the current days closing bid price. A security of a foreign issuer traded on a foreign exchange but
not listed on a registered U.S. securities exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the
Funds assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign
security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or
two dealers, the security is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a
bid from a single dealer.
Shares of a registered investment company that are not traded on an exchange are valued at that
investment companys net asset value per share.
Corporate and government debt securities (of U.S. or foreign issuers) and
municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the bid and asked prices utilizing evaluated
prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.
Short-term money market type debt securities with a remaining maturity of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which
approximates market value. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the bid and asked prices utilizing evaluated prices obtained from third party pricing
services or broker-dealers.
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
45
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
2. Securities Valuation
Continued
A description of the standard inputs that may generally be considered by the
third party pricing vendors in determining their evaluated prices is provided below.
|
|
|
Security Type
|
|
Standard inputs generally considered by third-party pricing vendors
|
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities
|
|
Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate
factors.
|
Loans
|
|
Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
|
Event-linked bonds
|
|
Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
|
If a market value or price cannot be determined for a security using the methodologies described above, or if, in the
good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security the
security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or (ii) as determined in
good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a
security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair
valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate
securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted
quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be
assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.
To assess the continuing
appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and
challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation
determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
|
|
|
46
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
Classifications
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the
value of each of the Funds investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1)
|
|
Level 1unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
|
2)
|
|
Level 2inputs 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 3significant unobservable inputs (including the Managers own judgments about assumptions that market participants would use in pricing the asset or
liability).
|
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in
those securities.
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities as of
March 28, 2013 based on valuation input level:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
Unadjusted
Quoted Prices
|
|
Level 2
Other Significant
Observable Inputs
|
|
Level 3
Significant
Unobservable
Inputs
|
|
Value
|
Assets Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at Value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds and Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina
|
|
|
$
|
|
|
|
|
$
|
100,853,196
|
|
|
|
$
|
|
|
|
|
$
|
100,853,196
|
|
U.S. Possessions
|
|
|
|
|
|
|
|
|
61,681,690
|
|
|
|
|
|
|
|
|
|
61,681,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
$
|
|
|
|
|
$
|
162,534,886
|
|
|
|
$
|
|
|
|
|
$
|
162,534,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date,
which represents the change in the contracts value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and
liabilities included in the above table are reported at their market value at measurement date.
3. Shares of Beneficial Interest
The Fund has
authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 28, 2013
|
|
|
Year Ended March 30, 2012
1
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
|
|
2,641,440
|
|
|
$
|
32,406,304
|
|
|
|
1,372,247
|
|
|
$
|
15,832,242
|
|
Dividends and/or distributions reinvested
|
|
|
236,418
|
|
|
|
2,901,071
|
|
|
|
226,005
|
|
|
|
2,564,797
|
|
Redeemed
|
|
|
(1,016,843
|
)
|
|
|
(12,469,950
|
)
|
|
|
(1,676,703
|
)
|
|
|
(18,929,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
|
|
|
1,861,015
|
|
|
$
|
22,837,425
|
|
|
|
(78,451
|
)
|
|
$
|
(532,672
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
47
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
3. Shares of Beneficial Interest
Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 28, 2013
|
|
|
Year Ended March 30, 2012
1
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
Class B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
|
|
34,006
|
|
|
$
|
412,433
|
|
|
|
95,643
|
|
|
$
|
1,101,147
|
|
Dividends and/or distributions reinvested
|
|
|
13,479
|
|
|
|
165,269
|
|
|
|
13,094
|
|
|
|
148,852
|
|
Redeemed
|
|
|
(47,769
|
)
|
|
|
(585,803
|
)
|
|
|
(48,877
|
)
|
|
|
(546,534
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
|
|
|
(284
|
)
|
|
$
|
(8,101
|
)
|
|
|
59,860
|
|
|
$
|
703,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
|
|
1,030,591
|
|
|
$
|
12,653,450
|
|
|
|
780,520
|
|
|
$
|
8,954,867
|
|
Dividends and/or distributions reinvested
|
|
|
108,669
|
|
|
|
1,332,707
|
|
|
|
106,286
|
|
|
|
1,208,741
|
|
Redeemed
|
|
|
(418,423
|
)
|
|
|
(5,133,061
|
)
|
|
|
(521,557
|
)
|
|
|
(5,851,583
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
|
|
|
720,837
|
|
|
$
|
8,853,096
|
|
|
|
365,249
|
|
|
$
|
4,312,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class Y
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
|
|
486,151
|
|
|
$
|
5,954,414
|
|
|
|
432,333
|
|
|
$
|
5,121,592
|
|
Dividends and/or distributions reinvested
|
|
|
25,347
|
|
|
|
311,225
|
|
|
|
2,936
|
|
|
|
35,034
|
|
Redeemed
|
|
|
(133,115
|
)
|
|
|
(1,631,090
|
)
|
|
|
(4,369
|
)
|
|
|
(52,145
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
|
|
|
378,383
|
|
|
$
|
4,634,549
|
|
|
|
430,900
|
|
|
$
|
5,104,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
For the year ended March 30, 2012, for Class A, B, and C shares, and for the period from July 29,
2011 (inception of offering) to March 30, 2012, for Class Y shares.
4. Purchases and Sales of Securities
The aggregate
cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended March 28, 2013, were as follows:
|
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
|
Sales
|
|
Investment securities
|
|
$
|
40,796,515
|
|
|
$
|
7,744,508
|
|
5.
Fees and Other Transactions with Affiliates
Management Fees.
Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
|
|
|
|
|
Fee Schedule
|
|
Up to $500 million
|
|
|
0.55
|
%
|
Next $500 million
|
|
|
0.50
|
|
Next $500 million
|
|
|
0.45
|
|
Over $1.5 billion
|
|
|
0.40
|
|
Sub-Adviser Fees.
The Manager has retained the
Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the
Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
|
|
|
48
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
Transfer Agent Fees.
OppenheimerFunds Services
(OFS), a division of OFI, acted as the transfer and shareholder servicing agent for the Fund through December 31, 2012. Effective January 1, 2013, OFI Global (the Transfer Agent) serves as the transfer and
shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a per account fee.
Additionally, Class Y shares are
subject to minimum fees of $10,000 annually for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. The Transfer Agent may
voluntarily waive the minimum fees.
Sub-Transfer Agent Fees.
Effective January 1, 2013, the Transfer Agent has retained
Shareholder Services, Inc., a wholly-owned subsidiary of OFI, (the Sub-Transfer Agent) to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the
Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer
Agent is paid by the Transfer Agent, not by the Fund.
Distribution and Service Plan (12b-1) Fees.
Under its General Distributors Agreement with
the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for Class A Shares.
The Fund has adopted a Service Plan (the Plan) for Class A shares under Rule 12b-1 of the
Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to
0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of
accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan
are detailed in the Statement of Operations.
Distribution and Service Plans for Class B and Class C Shares.
The Fund has adopted Distribution
and Service Plans (the Plans) for Class B and Class C shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for its services in connection with the distribution of those shares and servicing
accounts. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets. The Distributor also receives a service fee of 0.25% per year under each plan. If either the
Class B or Class C plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the
service fee and/or asset-based sales charge in respect to shares sold prior to the
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
49
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
5. Fees and Other Transactions with Affiliates
Continued
effective date of such termination. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations. The Distributor determines its uncompensated expenses under the Plans at
calendar quarter ends. The Distributors aggregate uncompensated expenses under the Plans at March 31, 2013 were as follows:
|
|
|
|
|
Class B
|
|
$
|
82,280
|
|
Class C
|
|
|
501,369
|
|
Sales Charges.
Front-end sales charges and
contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales
charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Class A
Front-End
Sales Charges
Retained by
Distributor
|
|
|
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
|
|
March 28, 2013
|
|
$
|
102,571
|
|
|
$
|
|
|
|
$
|
4,770
|
|
|
$
|
7,188
|
|
Waivers and Reimbursements of Expenses.
The
Manager has voluntarily agreed to waive management fees and/or reimburse the Fund for certain expenses so that Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding interest and fees from
borrowings and interest and related expenses from inverse floaters, would not exceed 0.80% of average annual net assets for Class A shares, 1.55% of average annual net assets for both Class B and Class C shares and 0.80% of average annual net
assets for Class Y shares. During the year ended March 28, 2013, the Manager reimbursed $73,268, $8,402 and $59,508 for Class A, Class B and Class C shares, respectively.
The Transfer Agent has voluntarily agreed to limit transfer and shareholder servicing agent fees for Classes B, C and Y shares to 0.35% of
average annual net assets per class and for Class A shares to 0.30% of average annual net assets of the class.
Some of these
undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.
6. Borrowings
The Fund can borrow money from banks in amounts up to one third of its total assets (including the amount borrowed) less all liabilities and indebtedness
other than borrowings (meaning that the value of those assets must be at least 300% of the amount borrowed). The Fund can use those borrowings for investment-related purposes such as purchasing portfolio securities. The Fund also may borrow to meet
redemption obligations or for temporary and emergency purposes. When the Fund invests borrowed money in
|
|
|
50
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
portfolio securities, it is using a speculative investment technique known as leverage and changes in the value of the Funds investments will have a larger effect on its share price than if
it did not borrow because of the effect of leverage.
The Fund can also use the borrowings for other investment-related purposes,
including in connection with the Funds inverse floater investments as discussed in Note 1. The Fund may use the borrowings to reduce the leverage amount of, or unwind or collapse trusts that issued inverse floaters
owned by the Fund, or in circumstances in which the Fund has entered into a shortfall and forbearance agreement with the sponsor of the inverse floater trust to meet the Funds obligation to reimburse the sponsor of the inverse floater for the
difference between the liquidation value of the underlying bond and the amount due to holders of the short-term floating rate notes issued by the Trust. See the discussion in Note 1 (Inverse Floating Rate Securities) for additional information.
The Fund will pay interest and may pay other fees in connection with loans. If the Fund does borrow, it will be subject to
greater expenses than funds that do not borrow. The interest on borrowed money and the other fees incurred in conjunction with loans are an expense that might reduce the Funds yield and return. Expenses incurred by the Fund with respect to
interest on borrowings and commitment fees are disclosed separately or as other expenses on the Statement of Operations.
The Fund
entered into a Revolving Credit and Security Agreement (the Agreement) with conduit lenders and Citibank N.A. which enables it to participate with certain other Oppenheimer funds in a committed, secured borrowing facility that permits
borrowings of up to $2.0 billion, collectively, by the Oppenheimer Rochester Funds. To secure the loan, the Fund pledges investment securities in accordance with the terms of the Agreement. Securities held in collateralized accounts to cover these
borrowings are noted in the Statement of Investments. Interest is charged to the Fund, based on its borrowings, at current commercial paper issuance rates (0.1596% as of March 28, 2013). The Fund pays additional fees annually to its lender on
its outstanding borrowings to manage and administer the facility and is allocated its pro-rata share of an annual structuring fee and ongoing commitment fees both of which are based on the total facility size. Total fees and interest that are
included in expenses on the Funds Statement of Operations related to its participation in the borrowing facility during the year ended March 28, 2013 equal 0.06% of the Funds average net assets on an annualized basis. The Fund has
the right to prepay such loans and terminate its participation in the conduit loan facility at any time upon prior notice.
As of March 28,
2013, the Fund had borrowings outstanding at an interest rate of 0.1596%. Details of the borrowings for the year ended March 28, 2013 are as follows:
|
|
|
|
|
Average Daily Loan Balance
|
|
$
|
2,164,110
|
|
Average Daily Interest Rate
|
|
|
0.203
|
%
|
Fees Paid
|
|
$
|
168,169
|
|
Interest Paid
|
|
$
|
4,221
|
|
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
51
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
7. Reverse Repurchase Agreements
The Fund may engage in reverse repurchase agreements. A reverse repurchase agreement is the sale of one or more securities to a counterparty at an
agreed-upon purchase price with the simultaneous agreement to repurchase those securities on a future date at a higher repurchase price. The repurchase price represents the repayment of the purchase price and interest accrued thereon over the term
of the repurchase agreement. The cash received by the Fund in connection with a reverse repurchase agreement may be used for investment-related purposes such as purchasing portfolio securities or for other purposes such as those described in the
preceding Borrowings note.
The Fund entered into a Committed Repurchase Transaction Facility (the
Facility) with J.P. Morgan Securities LLC (the counterparty) which enables it to participate with certain other Oppenheimer funds in a committed reverse repurchase agreement facility that permits aggregate outstanding reverse
repurchase agreements of up to $750 million, collectively. Interest is charged to the Fund on the purchase price of outstanding reverse repurchase agreements at current LIBOR rates plus an applicable spread. The Fund is also allocated its pro-rata
share of an annual structuring fee based on the total Facility size and ongoing commitment fees based on the total unused amount of the Facility. The Fund retains the economic exposure to fluctuations in the value of securities subject to reverse
repurchase agreements under the Facility and therefore these transactions are considered secured borrowings for financial reporting purposes. The Fund also continues to receive the economic benefit of interest payments received on securities subject
to reverse repurchase agreements, in the form of a direct payment from the counterparty. These payments are included in interest income on the Statement of Operations. Total fees and interest related to the Funds participation in the Facility
during the year ended March 28, 2013 are included in expenses on the Funds Statement of Operations and equal 0.02% of the Funds average net assets on an annualized basis.
The securities subject to reverse repurchase agreements under the Facility are valued on a daily basis. To the extent this value, after
adjusting for certain margin requirements of the Facility, exceeds the cash proceeds received, the Fund may request the counterparty to return securities equal in margin value to this excess. To the extent that the cash proceeds received exceed the
margin value of the securities subject to the transaction, the counterparty may request additional securities from the Fund. The Fund has the right to declare the first or fifteenth day of any calendar month as the repurchase date for any
outstanding reverse repurchase agreement upon delivery of advanced notification and may also recall any security subject to such a transaction by substituting eligible securities of equal or greater margin value according to the Facilitys
terms.
The Fund executed no transactions under the Facility during the year ended March 28, 2013.
Details of the reverse repurchase agreement for the year ended March 28, 2013 are as follows:
|
|
|
52
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
8. Pending Litigation
Since 2009, a number of class action lawsuits have been pending in federal courts against OppenheimerFunds, Inc. (OFI), OppenheimerFunds
Distributor, Inc., the Funds principal underwriter and distributor (the Distributor), and certain funds (but not including the Fund) advised by the Manager and distributed by the Distributor (the Defendant Funds).
Several of these lawsuits also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raise claims under federal securities law and allege, among other things, that the disclosure
documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief
and awards of attorneys fees and litigation expenses. The Defendant Funds Boards of Trustees have also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits.
Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against OFI and certain of its
affiliates by investors seeking to recover investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits
allege that they suffered losses as a result of their investments in several funds managed by an affiliate of OFI and assert 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 awards of attorneys fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual
funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial
settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment
approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the courts order approving the settlement. The settlement does not resolve other outstanding lawsuits against OFI and
its affiliates relating to BLMIS.
On April 16, 2010, a lawsuit was filed in New York state court against (i) OFI,
(ii) an affiliate of OFI and (iii) AAArdvark IV Funding Limited (AAArdvark IV), an entity advised by OFIs affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege breach of
contract and common law fraud claims against the defendants and seek compensatory damages, costs and disbursements, including attorney fees. On April 11, 2013, the court granted defendants motion for summary judgment, dismissing
plaintiffs fraud claim with prejudice and dismissing their contract claim without prejudice, and granted plaintiffs leave to replead their contract claim to assert a cause of action for specific performance within 30 days. The courts
decision is subject to appeal. On July 15, 2011, a lawsuit was filed in New York state court against OFI, an affiliate of OFI and
|
|
|
|
|
OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
|
|
|
53
|
|
NOTES
TO
FINANCIAL STATEMENTS
Continued
8. Pending Litigation
Continued
AAArdvark Funding Limited (AAArdvark I), an entity advised by OFIs affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach
of contract and common law fraud claims against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against OFI, an affiliate of OFI
and AAArdvark XS Funding Limited (AAArdvark XS), an entity advised by OFIs affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of contract against the defendants and seeks
compensatory damages, costs and disbursements, including attorney fees.
OFI believes the lawsuits and appeals described above are
without legal merit and, with the exception of actions it has settled, is defending against them vigorously. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in
defending the suits might not be reimbursed by insurance, OFI believes that these suits should not impair the ability of OFI 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 mutual funds.
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54
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders of Oppenheimer Rochester North Carolina
Municipal Fund:
We have audited the accompanying statement of assets and liabilities of Oppenheimer Rochester North Carolina Municipal
Fund, including the statement of investments, as of March 28, 2013, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two-year period then
ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 28, 2013, by correspondence
with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial
position of Oppenheimer Rochester North Carolina Municipal Fund as of March 28, 2013, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then
ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG
LLP
Denver, Colorado
May 16, 2013
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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55
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FEDERAL
INCOME TAX INFORMATION
Unaudited
In early 2013, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar
year 2012.
None of the dividends paid by the Fund during the fiscal year ended March 28, 2013 are eligible for the corporate
dividend-received deduction. 96.59% of the dividends were derived from interest on municipal bonds and are not subject to federal income taxes. To the extent a shareholder is subject to any state or local tax laws, some or all of the dividends
received may be taxable.
The foregoing information is presented to assist shareholders in reporting distributions received from
the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for
specific guidance.
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56
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS
Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities (portfolio proxies) held by the Fund. A description of the Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at oppenheimerfunds.com, and (iii) on the SECs website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record
for the 12 months ended June 30th, no later than August 31st of each year. The Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the
Form N-PX filing on the SECs website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with
the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs Public Reference
Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a
particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called
householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request
otherwise. If you prefer to receive multiple copies of these materials, please call us at
1.800.CALL-OPP (225-5677).
You may also
notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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57
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TRUSTEES AND OFFICERS
Unaudited
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Name, Position(s) Held with the Fund, Length of Service, Age
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Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently
Overseen
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INDEPENDENT TRUSTEES
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The address of each 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.
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Brian F. Wruble,
Chairman
of the Board of
Trustees (since 2007) and
Trustee (since 2006)
Age: 69
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Director of Community Foundation of the Florida Keys (non-profit) (since July 2012); Chairman Emeritus and Non-Voting Trustee of The Jackson Laboratory (non-profit) (since August
2011); Director of Special Value Opportunities Fund, LLC (registered investment company) (affiliate of the Sub-Advisers parent company) (since September 2004); Member of Zurich Insurance Advisory Council (insurance) (since 2004); Treasurer
(since 2007) and Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); Chairman (August 2007-August 2011) and Trustee (since August 1991) of the Board of Trustees of The Jackson Laboratory (non-profit);
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). Oversees 50 portfolios in the
OppenheimerFunds complex. Mr. Wruble has served on the Boards of certain Oppenheimer funds since April 2001, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and
investment matters and has contributed to the Boards deliberations.
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David K. Downes,
Trustee (since 2007)
Age: 73
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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 services 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). Oversees 50 portfolios in the OppenheimerFunds complex. Mr. Downes has served on the Boards of certain Oppenheimer funds since December 2005, during which time he has become familiar with the Funds (and other Oppenheimer
funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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58
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Matthew P. Fink,
Trustee (since 2006)
Age: 72
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Trustee of the Committee for Economic Development (policy research foundation) (2005-2011); 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); Author of The Rise of Mutual Funds: An Insiders View published
by Oxford University Press (second edition 2010). Oversees 50 portfolios in the OppenheimerFunds complex. Mr. Fink has served on the Boards of certain Oppenheimer funds since January 2005, during which time he has become familiar with the
Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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Edmund P. Giambastiani, Jr.,
Advisory Board Member
(since 2013)
Age: 64
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Advisory Board Member of the Maxwell School of Citizenship and Public Affairs of Syracuse University (since April 2012); Director of Mercury Defense Systems Inc. (information
technology) (August 2011-February 2013); Trustee of the U.S. Naval Academy Foundation (since November 2010); Advisory Board Member of the Massachusetts Institute of Technology Lincoln Laboratory (federally-funded research development center) (since
May 2010); Director of The Boeing Company (aerospace and defense) (since October 2009); Trustee of MITRE Corporation (federally-funded research development center) (since September 2008); Independent Director of QinetiQ Group Plc (defense technology
and security) (February 2008-August 2011); Director of Monster Worldwide, Inc. (on-line career services) (since January 2008, Lead Director since June 2011); Chairman of Alenia North America, Inc. (military and defense products) (January
2008-October 2009); Director of SRA International, Inc. (information technology and services) (January 2008-July 2011); President of Giambastiani Group LLC (national security and energy consulting) (since October 2007); United States Navy, career
nuclear submarine officer (June 1970-October 2007), Vice Chairman of the Joint Chiefs of Staff (2005-October 2007), NATO Supreme Allied Commander Transformation (2003-2005), Commander, U.S. Joint Forces Command (2002-2005). Since his retirement from
the U.S. Navy in October 2007, Admiral Giambastiani has also served on numerous U.S. Government advisory boards, investigations and task forces for the Secretaries of Defense, State and Interior and the Central Intelligence Agency. Oversees 50
portfolios in the OppenheimerFunds complex as an Advisory Board Member/Trustee/Director. Admiral Giambastiani has served on the Boards of certain Oppenheimer funds since February 2013, during which time he has become familiar with the Funds
(and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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Phillip A.
Griffiths,
Trustee (since 2006)
Age: 74
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Fellow of the Carnegie Corporation (since 2007); Member of the National Academy of Sciences (since 1979); Council on Foreign Relations (since 2002); Foreign Associate of Third World
Academy of Sciences (since 2002); Chair of Science Initiative Group (since 1999); Member of the American Philosophical Society (since 1996); Trustee of Woodward Academy (since 1983); Director of GSI Lumonics Inc. (precision technology products
company) (2001-2010); Senior Advisor of The Andrew W. Mellon Foundation (2001-2010); Distinguished Presidential Fellow for International Affairs of the National Academy of Science (2002-2010); Director of the Institute for Advanced Study
(1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke University (1983-1991). Oversees 50 portfolios in the OppenheimerFunds complex. Mr. Griffiths has served on the Boards of certain Oppenheimer funds since
June 1999, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards
deliberations.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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59
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TRUSTEES AND OFFICERS
Unaudited /
Continued
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Mary F.
Miller,
Trustee (since 2006)
Age: 70
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Trustee of International House (not-for-profit) (since June 2007); Trustee of the American Symphony Orchestra (not-for-profit) (October 1998-November 2011); and Senior Vice President
and General Auditor of American Express Company (financial services company) (July 1998-February 2003). Oversees 50 portfolios in the OppenheimerFunds complex. Ms. Miller has served on the Boards of certain Oppenheimer funds since August 2004,
during which time she has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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Joel W.
Motley,
Trustee (since 2006)
Age: 60
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Member of the Vestry of Trinity Wall Street (since April 2012); Director of Southern Africa Legal Services Foundation (since March 2012); Board Member of Pulitzer Center for Crisis
Reporting (non-profit journalism) (since December 2010); 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, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley. Oversees 50 portfolios in the OppenheimerFunds
complex. Mr. Motley has served on the Boards of certain Oppenheimer funds since October 2002, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters
and has contributed to the Boards deliberations.
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Joanne Pace,
Advisory Board Member
(since 2012)
Age:
54
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Board Director of Horizon Blue Cross Blue Shield of New Jersey (since November 2012); Advisory Board Director of The Alberleen Group LLC (since March, 2012); Advisory Board Director of
The Agile Trading Group LLC (since March, 2012); Advisory Council Member of 100 Women in Hedge Funds (non-profit) (since December, 2012); Advisory Council Member of Morgan Stanley Childrens Hospital (non-profit) (since May, 2012); Board
Director of The Komera Project (non-profit) (since April, 2012); New York Advisory Board Director of Peace First (non-profit) (since March, 2010); Senior Advisor of SECOR Asset Management, LP (2010-2011); Managing Director and Chief Operating
Officer of Morgan Stanley Investment Management (2006-2010); Partner and Chief Operating Officer of FrontPoint Partners, LLC (hedge fund) (2005-2006); held the following positions at Credit Suisse: Managing Director (2003-2005); Global Head of Human
Resources and member of Executive Board and Operating Committee (2004-2005), Global Head of Operations and Product Control (2003-2004); held the following positions at Morgan Stanley: Managing Director (1997-2003), Controller and Principal
Accounting Officer (1999-2003); Chief Financial Officer (temporary assignment) for the Oversight Committee, Long Term Capital Management (1998-1999). Lead Independent Director and Chair of the Audit and Nominating Committee of The Global Chartist
Fund, LLC of Oppenheimer Asset Management (2011-2012); Board Director of Managed Funds Association (2008-2010); Board Director of Morgan Stanley Foundation (2007-2010) and Investment Committee Chair (2008-2010). Ms. Pace has served on the Boards of
certain Oppenheimer funds since 2012, during which time she has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
Oversees 50 portfolios in the OppenheimerFunds complex as an Advisory Board Member/Trustee/Director. Ms. Pace has served on the Boards of certain Oppenheimer funds since November 2012, during which time she has become familiar with the Funds (and
other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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60
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Mary Ann
Tynan,
Trustee (since 2008)
Age: 67
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Director and Secretary of the Appalachian Mountain Club (non-profit outdoor organization) (since January 2012); Director of Opera House Arts (non-profit arts organization) (since
October 2011); Independent Director of the ICI Board of Governors (non-profit) (since October 2011); Vice Chair of Board of Trustees of Brigham and Womens/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); Chair of 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). Oversees 50 portfolios in the OppenheimerFunds complex. Ms. Tynan has served on the Boards of certain Oppenheimer funds since October 2008, during which time she
has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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Joseph M.
Wikler,
Trustee (since 2006)
Age: 72
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Director of C-TASC (bio-statistics services) (2007-2012); formerly, Director of the following medical device companies: Medintec (1992-2011) and Cathco (1996-2011); 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).
Oversees 50 portfolios in the OppenheimerFunds complex. Mr. Wikler has served on the Boards of certain Oppenheimer funds since August 2005, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial,
accounting, regulatory and investment matters and has contributed to the Boards deliberations.
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Peter I. Wold,
Trustee (since 2006)
Age: 65
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Director of Arch Coal, Inc. (since 2010); 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 Wyoming Enhanced Oil Recovery Institute Commission (enhanced oil recovery study) (2004-2012); Director
and Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999). Oversees 50 portfolios in the OppenheimerFunds complex. Mr. Wold has served on the Boards of
certain Oppenheimer funds since August 2005, during which time he has become familiar with the Funds (and other Oppenheimer funds) financial, accounting, regulatory and investment matters and has contributed to the Boards
deliberations.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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61
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TRUSTEES AND OFFICERS
Unaudited /
Continued
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INTERESTED TRUSTEE AND OFFICER
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Mr. Glavin is an Interested Trustee because he is affiliated with the Manager and the Sub-Adviser by virtue of his
positions as an officer and director of the Manager and a director of the Sub-Adviser, and as a shareholder of the Sub-Advisers 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. Glavins address is Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008.
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William F. Glavin,
Jr.,
President and Principal Executive Officer and Trustee (since
2009)
Age: 54
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Director, Chief Executive Officer and President of the Manager (since January 2013); Chairman of the Sub-Adviser (December 2009-December 2012); Chief Executive Officer (January
2009-December 2012) and Director of the Sub-Adviser (since January 2009); President of the Sub-Adviser (May 2009-December 2012); Management Director (since June 2009), President (since December 2009) and Chief Executive Officer (since January 2011)
of Oppenheimer Acquisition Corp. (OAC) (the Sub-Advisers parent holding company); Director of Oppenheimer Real Asset Management, Inc. (since March 2010); Executive Vice President (March 2006-February 2009) and Chief Operating
Officer (July 2007-February 2009) of Massachusetts Mutual Life Insurance Company (OACs 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 Capital 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 (March 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. An officer of 86 portfolios in the OppenheimerFunds complex.
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OTHER OFFICERS OF THE FUND
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The addresses of the Officers in the chart below are as follows: for Mr. Gabinet and Ms. Nasta, Two World Financial Center, 225 Liberty Street,
New York, New York 10281-1008, for Messrs. Vandehey and Wixted, 6803 S. Tucson Way, Centennial, Colorado 80112-3924, for Messrs. Loughran, Cottier, Willis, DeMitry, Camarella, Pulire and Stein, 350 Linden Oaks, Rochester, New York 14625. Each
Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.
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Daniel G.
Loughran,
Vice President (since 2006)
Age: 49
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Senior Vice President of the Sub-Adviser (since July 2007); Vice President of the Sub-Adviser (April 2001-June 2007) and a Portfolio Manager with the Sub-Adviser (December
1999-November 2001). Team Leader, a Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.
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62
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Scott S.
Cottier,
Vice President (since 2006)
Age: 41
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Vice President of the Sub-Adviser (since September 2002). Portfolio Manager and trader at Victory Capital Management (1999-2002). Senior Portfolio Manager, an officer and a trader for
the Fund and other Oppenheimer funds.
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Troy E.
Willis,
Vice President (since 2006)
Age: 40
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Vice President of the Sub-Adviser (since July 2009); Assistant Vice President of the Sub-Adviser (July 2005-June 2009). Portfolio Manager of the Sub-Adviser (2003- 2005). Corporate
Attorney for Southern Resource Group (June 1999-December 2003). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.
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Mark R.
DeMitry,
Vice President (since 2009)
Age: 37
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Vice President of the Sub-Adviser (since July 2009); Associate Portfolio Manager of the Fund (September 2006- June 2009). Research Analyst of the Sub-Adviser (June 2003-September 2006)
and a Credit Analyst of the Sub-Adviser (July 2001-May 2003). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.
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Michael L.
Camarella,
Vice President (since 2009)
Age: 36
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Vice President of the Sub-Adviser (since January 2011); Assistant Vice President of the Sub-Adviser (July 2009-December 2010); Associate Portfolio Manager of the Sub-Adviser (January
2008-December 2010). Research Analyst of the Sub-Adviser (April 2006-December 2007) and a Credit Analyst of the Sub-Adviser (June 2003-March 2006). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer
funds.
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Charles S.
Pulire,
Vice President (since 2011)
Age: 35
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Vice President of the Sub-Adviser (since February 2013), Assistant Vice President of the Sub-Adviser (December 2010-January 2013); Research Analyst of the Manager (February
2008-November 2010); Credit Analyst of the Sub-Adviser (May 2006-January 2008). Senior Portfolio Manager, an officer and a trader for the Fund and other Oppenheimer funds.
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Richard A. Stein,
Vice President (since 2007)
Age: 55
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Director of the Rochester Credit Analysis team (since March 2004); Senior Vice President of the Sub-Adviser (since June 2011) and a Vice President of the Sub-Adviser (November 1997-May
2011); headed Rochesters Credit Analysis team (since May 1993).
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Arthur S. Gabinet,
Secretary and Chief Legal Officer (since 2011)
Age:
55
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Executive Vice President, Secretary and General Counsel of the Manager (since January 2013); General Counsel OFI SteelPath, Inc. (since January 2013); Executive Vice President (May
2010-December 2012) and General Counsel (since January 2011) of the Sub-Adviser; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (January 2011-December 2012); Executive Vice
President (January 2011-December 2012) 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; Director of Oppenheimer Real Asset Management, Inc. (January 2011-December 2012) and General Counsel (since January 2011); Executive Vice President (January 2011-December 2011) and General Counsel of Shareholder Financial
Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President (January 2011-December 2012) and General Counsel of OFI Private Investments Inc. (since January 2011); Vice President of OppenheimerFunds Legacy Program
(January 2011-December 2011); Executive Vice President (January 2011-December 2012) and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Sub-Adviser (May 2010-December 2010);
Principal, The Vanguard Group (November 2005-April 2010); District Administrator, U.S. Securities and Exchange Commission (January 2003-October 2005). An officer of 86 portfolios in the OppenheimerFunds
complex.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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TRUSTEES AND OFFICERS
Unaudited /
Continued
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Christina M.
Nasta,
Vice President and Chief Business Officer (since 2009)
Age: 39
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Senior Vice President of OppenheimerFunds Distributor, Inc. (since January 2013); Senior Vice President of the Sub-Adviser (July 2010-December 2012); Vice President of the Sub-Adviser
(January 2003-July 2010); Vice President of OppenheimerFunds Distributor, Inc. (January 2003-July 2010). An officer of 86 portfolios in the OppenheimerFunds complex.
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Mark S. Vandehey,
Vice President and Chief Compliance Officer (since 2006)
Age: 62
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Senior Vice President and Chief Compliance Officer of the Manager (since January 2013); Chief Compliance Officer of OFI SteelPath, Inc. (since January 2013); Senior Vice President of
the Sub-Adviser (March 2004-December 2012); Chief Compliance Officer of the Sub-Adviser, OppenheimerFunds Distributor, Inc., OFI Trust Company, OFI Institutional Asset Management, Inc., Oppenheimer Real Asset Management, Inc., OFI Private
Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation
and Shareholder Services, Inc. (June 1983-December 2012). An officer of 86 portfolios in the OppenheimerFunds complex.
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Brian W. Wixted,
Treasurer and Principal Financial & Accounting Officer (since 2006)
Age: 53
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Senior Vice President of the Manager (since January 2013); Treasurer of the Sub-Adviser, HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder
Services, Inc., and Oppenheimer Real Asset Management, 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. (November 2000-June 2008), and OppenheimerFunds Legacy Program (charitable trust program established by the Sub-Adviser) (June 2003-December 2011); Treasurer and Chief Financial Officer of OFI Trust Company (since May 2000);
Assistant Treasurer of Oppenheimer Acquisition Corporation (March 1999-June 2008). An officer of 86 portfolios in the OppenheimerFunds complex.
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The Funds Statement of Additional Information contains additional information about the Funds Trustees and
Officers and is available without charge upon request, by calling 1.800.CALL-OPP (225-5677).
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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OPPENHEIMER
ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Manager
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OFI Global Asset Management, Inc.
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Sub-Adviser
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OppenheimerFunds, Inc.
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Distributor
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OppenheimerFunds Distributor, Inc.
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Transfer and Shareholder Servicing Agent
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OFI Global Asset Management, Inc.
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Sub-Transfer Agent
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Shareholder Services, Inc.
DBA OppenheimerFunds Services
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Independent
Registered Public
Accounting Firm
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KPMG
LLP
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Legal Counsel
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Kramer Levin Naftalis & Frankel LLP
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©
2013 OppenheimerFunds, Inc. All
rights reserved.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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PRIVACY POLICY NOTICE
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its
disclosure.
Information Sources
We obtain
nonpublic personal information about our shareholders from the following sources:
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Applications or other forms
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When you create a user ID and password for online account access
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When you enroll in eDocs Direct, our electronic document delivery service
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Your transactions with us, our affiliates or others
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A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited
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When you set up challenge questions to reset your password online
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If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user
ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website
that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may
limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us
recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any
non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial
advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms
that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity
to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except
as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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PRIVACY POLICY NOTICE
Internet Security and Encryption
In general, the
email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised
that you are using a secure website.
As a security measure, we do not include personal or account information in non-secure emails, and we advise
you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer
(SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other
harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
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All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection
between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format.
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Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the
cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.
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You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.
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Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that
information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and
password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds,
Inc., and each of its financial institution subsidiaries, the trustee of OppenheimerFunds Individual Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7) tax sheltered custodial accounts. It applies to all Oppenheimer
fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated November 2012. In the event it is updated or changed, we
will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the
Contact Us
section of our website at oppenheimerfunds.com or call us at
1.800.CALL
OPP (225.5677).
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OPPENHEIMER ROCHESTER NORTH CAROLINA MUNICIPAL FUND
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Visit us at oppenheimerfunds.com for 24-hr access to account information and transactions or call us at 1.800.CALL OPP (1.800.225.5677) for 24-hr automated information and automated
transactions. Representatives also available Mon-Fri 8am-8pm ET.
OppenheimerFunds are distributed by OppenheimerFunds Distributor, Inc.
RA0655.001.0313 May 20, 2013