0000950110-95-000641.txt : 19950905 0000950110-95-000641.hdr.sgml : 19950905 ACCESSION NUMBER: 0000950110-95-000641 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950901 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROCHESTER FUND MUNICIPALS CENTRAL INDEX KEY: 0000093621 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-GROCERY STORES [5411] IRS NUMBER: 16473255 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03614 FILM NUMBER: 95569882 BUSINESS ADDRESS: STREET 1: 350 LINDEN OAKS CITY: ROCHESTER STATE: NY ZIP: 14625-2807 BUSINESS PHONE: (716) 383-1300 MAIL ADDRESS: STREET 1: 350 LINDEN OAKS CITY: ROCHESTER STATE: NY ZIP: 14625-2807 FORMER COMPANY: FORMER CONFORMED NAME: ROCHESTER FUND MUNICIPALS INC DATE OF NAME CHANGE: 19920521 FORMER COMPANY: FORMER CONFORMED NAME: MARTEK INVESTORS INC/NY DATE OF NAME CHANGE: 19860302 FORMER COMPANY: FORMER CONFORMED NAME: STAR SUPERMARKETS INC DATE OF NAME CHANGE: 19830104 N-30D 1 SEMI-ANNUAL REPORT Rochester [logo] Fund Municipals Semi-Annual Report ----------------------------- June 30, 1995 [MAP OF NEW YORK STATE] Rochester Capital Advisors, L.P. Investment Advisor This report is for the information of shareholders of Rochester Fund Municipals. It may be used as sales literature only when accompanied or preceded by a current prospectus. "Even if rates jump a bit more in 1995, munis might hold their own because of an anticipated slump in supply." Kiplinger's Personal Finance Magazine January 1995 "It used to be easy to invest in muni's. These days you need a pro." Worth April 1995 "...Munis are free from federal tax--and also from state and local taxes if they are issued in your state." Money June 1995 [logo] Rochester Fund Distributors, Inc. August 15, 1995 Dear Fellow Shareholder, We are very pleased to report that Rochester Fund Municipals enjoyed a strong rebound during the six-month period ended June 30, 1995. Benefiting from declining long-term interest rates, the Fund's six month total return was an impressive +11.4%, reflecting dividends paid and the increase in the per share net asset value from $16.31 at year end 1994 to $17.60 on June 30, 1995. (This number does not include the maximum sales charge for new investors.) Despite this outstanding showing over the recent six months, we strongly recommend that shareholders maintain a long-term perspective when reviewing their investment portfolio. The Fund's one, five and ten year historical average annual returns through June 30, 1995 are 4.04%, 7.80% and 9.72%. Keep in mind that these figures measure the average annual increase in the value of an investment over the period, and reflect payment of the maximum 4% initial sales charge. They also assume reinvestment of dividends at net asset value. As you know, past performance is not predictive of future investment returns. The return and principal value of an investment in the Fund will fluctuate, and an investor's shares, when redeemed, may be worth more or less than their original cost. In this time of high taxes, the Fund has continued its efforts to provide tax relief by seeking a high level of tax-free income for shareholders.(1) To illustrate the importance of this, please note that New York investors in the combined federal, state, and city personal income tax bracket of 43.8% would have needed to earn 10.1% from a taxable investment to match a hypothetical 5.80% tax-free yield distribution rate! We are continuing in our efforts to provide quality customer service to our shareholders. This has resulted in the addition of a new service available to those investors whose accounts are held at the Fund, called Automated Clearing House, or "ACH", which will allow more flexibility in the way you receive your dividend checks and/or add to your account. ACH generates an electronic funds transfer between your bank and our office, allowing us to deposit your monthly dividend check directly into your bank account or purchase shares of the Fund from your bank account to your Fund account. There is no longer any need to wait for the mail and worry about getting your Rochester Fund Municipals check to your bank. Please call your financial advisor or our Shareholder Services Department to set this up. We will continue to adhere to the Fund's objective of offering long-term investors high tax-free yields, and look forward to reporting on the Fund's progress in coming quarters. Sincerely, RONALD FIELDING -------------------------- Ronald H. Fielding Chairman and Portfolio Manager This letter is prepared for the information of shareholders of Rochester Fund Municipals. It must be preceded or accompanied by a current prospectus. (1) A portion of the Fund's income may be subject to the alternative minimum income tax. 350 Linden Oaks Rochester, NY 14625 716 383 1300 Rochester [logo] Fund Municipals Portfolio Overview Based on the market value as of June 30, 1995 Total Net Assets $2,012,585,158 Shares Outstanding 114,349,650 Number of Issues 674 Largest Sectors: Housing (Multi-Family) 16.2% Health Care 11.8% Municipal Tax Obligations (GO) 10.7% Resource Recovery, Pollution Control Revenue 10.0% Electric and Gas Utilities 9.1% 2 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value --------------------------------------------------------------------------------------------------------------------------- Housing, Multi-Family -- 16.2% $325,249,687 Albany Hsg. Auth. 0.000% 10/01/12 $ 560 $ 109,744 Albany IDA (HHRH) 9.500 12/01/95 3,005 3,065,100 Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,715 1,738,204 Batavia Hsg. Auth. (Washington) 6.500 01/01/23 515 524,775 Battery Park City Auth. 5.750 06/01/23 8,545 8,167,824 Battery Park City Auth. 8.625 06/01/05 (p) 60 76,517 Battery Park City Auth. 5.650 12/01/13 3,960 3,806,510 Battery Park City Auth. 10.000 06/01/23 700 717,500 Bayshore HDC 7.500 02/01/23 1,480 1,682,153 Bleeker Terrace HDC 8.750 07/01/07 900 927,000 Bleeker Terrace HDC 8.350 07/01/04 45 45,900 Bleeker Terrace HDC 8.100 07/01/01 35 35,700 Elmira HDC 7.500 08/01/07 25 27,938 Guam Economic Devel. 9.500 11/01/18 2,520 2,719,483 Guam Economic Devel. 9.375 11/01/18 3,035 3,270,425 Hamilton Elderly Hsg. 11.250 01/01/15 725 775,750 Holiday Square HDC 5.800 01/15/24 2,000 1,875,240 Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 3,980 4,424,924 Monroe HDC 7.000 08/01/21 300 321,504 New Hartford HDC 7.375 01/01/24 20 20,995 North Tonawanda HDC 7.375 12/15/21 3,295 3,591,418 North Tonawanda HDC 6.800 12/15/07 585 622,692 NYC HDC (Albert Einstein) 6.500 12/15/17 340 347,142 NYC HDC (Amsterdam) 6.500 08/15/18 949 969,168 NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,468 1,469,908 NYC HDC (Boulevard) 6.500 08/15/17 2,961 3,020,069 NYC HDC (Bridgeview) 6.500 12/15/17 510 520,714 NYC HDC (Cadman Plaza) 6.500 11/15/18 1,366 1,394,185 NYC HDC (Cadman Plaza) 7.000 12/15/18 495 493,849 NYC HDC (Candia) 6.500 06/15/18 201 205,237 NYC HDC (Clinton) 6.500 07/15/17 3,858 3,934,072 NYC HDC (Contello III) 7.000 12/15/18 304 303,234 NYC HDC (Cooper Gram) 6.500 08/15/17 1,604 1,636,324 NYC HDC (Court Plaza) 6.500 08/15/17 1,224 1,249,214 NYC HDC (Crown Gardens) 7.250 01/15/19 1,657 1,689,629 NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,436 3,429,876 NYC HDC (Essex) 6.500 07/15/18 88 89,913 NYC HDC (Forest Park) 6.500 12/15/17 548 559,071 NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,637 1,638,818 NYC HDC (Heywood) 6.500 10/15/17 390 398,278 NYC HDC (Hudsonview) 6.500 09/15/17 4,400 4,487,662 NYC HDC (Janel) 6.500 09/15/17 1,245 1,269,723 NYC HDC (Kings Arms) 6.500 11/15/18 247 251,675
3 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYC HDC (Kingsbridge) 6.500 % 08/15/17 $ 434 $ 443,120 NYC HDC (Leader) 6.500 03/15/18 1,325 1,350,952 NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,695 1,726,172 NYC HDC (Middagh) 6.500 11/15/18 223 227,927 NYC HDC (Montefiore) 6.500 10/15/17 2,920 2,978,247 NYC HDC (Multi-Family) 9.875 10/01/17 350 362,250 NYC HDC (Multi-Family) 8.250 01/01/11 1,415 1,453,205 NYC HDC (Multi-Family) 6.600 04/01/30 38,880 39,629,995 NYC HDC (Multi-Family) 5.600 11/01/20 5 4,500 NYC HDC (Multi-Family) 6.550 10/01/15 1,500 1,547,775 NYC HDC (Multi-Family) 8.750 08/01/16 115 117,724 NYC HDC (Multi-Family) 7.300 06/01/10 30 32,216 NYC HDC (Multi-Family) 7.500 05/01/23 1,490 1,519,800 NYC HDC (Multi-Family) 6.500 05/01/06 80 80,800 NYC HDC (Multi-Family) 9.000 05/01/22 200 208,000 NYC HDC (Multi-Family) 7.350 06/01/19 1,130 1,219,157 NYC HDC (New Amsterdam) 6.500 08/15/18 929 947,581 NYC HDC (Residential Charter) 7.375 04/01/17 3,295 3,432,929 NYC HDC (Riverbend) 6.500 11/15/18 1,161 1,185,531 NYC HDC (Riverside Park) 7.250 11/15/18 6,382 6,501,877 NYC HDC (RNA House) 7.000 12/15/18 438 436,892 NYC HDC (Robert Fulton) 6.500 12/15/17 735 750,262 NYC HDC (Rosalie Manning) 7.034 11/15/18 246 246,131 NYC HDC (Scott Tower) 7.000 12/15/18 653 652,246 NYC HDC (Seaview) 6.500 01/15/18 966 984,981 NYC HDC (Sky View) 6.500 11/15/18 1,802 1,839,498 NYC HDC (South Bronx) 8.100 09/01/23 3,295 3,650,662 NYC HDC (Stevenson) 6.500 05/15/18 1,830 1,866,768 NYC HDC (Stryckers Bay) 7.034 11/15/18 488 488,539 NYC HDC (St. Martin) 6.500 11/15/18 400 407,799 NYC HDC (Tivoli) 6.500 01/15/18 1,838 1,874,791 NYC HDC (Towers) 6.500 08/15/17 396 404,052 NYC HDC (Townhouse) 6.500 11/15/18 250 254,897 NYC HDC (Tri-Faith House) 7.000 01/15/19 356 355,188 NYC HDC (University) 6.500 08/15/17 1,635 1,667,469 NYC HDC (Washington Square) 7.000 01/15/19 453 452,614 NYC HDC (West Side) 6.500 11/15/17 442 450,980 NYC HDC (West Village) 6.500 11/15/13 5,052 5,160,601 NYC HDC (Westview) 6.500 10/15/17 117 119,389 NYC HDC (Woodstock Terrace) 7.034 02/15/19 605 605,239 NYS HFA (Admiral Halsey Sr. Village) 8.000 05/01/19 355 363,875 NYS HFA (Baptist Manor) 8.000 05/01/19 5 5,122 NYS HFA (Children's Rescue) 7.625 05/01/18 3,555 3,874,737 NYS HFA (Clinton Plaza) 7.625 11/01/19 1,385 1,494,138 NYS HFA (Dominican Village) 6.600 08/15/27 2,000 2,051,780
4 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYS HFA (Ft. Schulyer) 7.750 % 11/01/18 $ 15 $ 15,500 NYS HFA (Health Facilities) 8.000 11/01/08 2,920 3,243,215 NYS HFA (HELP/Bronx) 7.850 05/01/99 1,040 1,120,621 NYS HFA (HELP/Bronx) 8.050 11/01/05 13,080 14,071,333 NYS HFA (HELP/Bronx) 7.850 11/01/99 1,080 1,171,249 NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,210 1,285,577 NYS HFA (Henry Phipps) 8.000 05/01/18 3,650 3,766,800 NYS HFA (Keeler Park) 8.000 05/01/19 50 51,000 NYS HFA (Marble Hall) 8.000 05/01/16 5 5,050 NYS HFA (Multi-Family) 0.000 11/01/13 17,985 5,665,635 NYS HFA (Multi-Family) 10.000 11/15/25 330 343,309 NYS HFA (Multi-Family) 6.700 08/15/25 11,980 12,268,598 NYS HFA (Multi-Family) 6.750 11/15/36 5,775 5,993,353 NYS HFA (Multi-Family) 6.950 08/15/24 2,970 3,097,948 NYS HFA (Multi-Family) 7.050 08/15/24 5,350 5,575,770 NYS HFA (Multi-Family) 0.000 11/01/09 6,340 2,642,005 NYS HFA (Multi-Family) 0.000 11/01/12 15,000 5,117,850 NYS HFA (Multi-Family) 6.950 08/15/12 75 78,221 NYS HFA (Multi-Family) 0.000 11/01/17 12,695 3,061,653 NYS HFA (Multi-Family) 0.000 11/01/15 14,590 4,012,250 NYS HFA (Multi-Family) 0.000 11/01/14 15,730 4,652,619 NYS HFA (Multi-Family) 0.000 11/01/10 17,100 6,604,875 NYS HFA (Multi-Family) 7.450 11/01/28 5,395 5,727,979 NYS HFA (Non-Profit) 6.600 11/01/13 20 19,960 NYS HFA (Non-Profit) 6.400 11/01/13 25 24,750 NYS HFA (Non-Profit) 6.600 11/01/08 20 20,300 NYS HFA (Non-Profit) 6.600 11/01/10 25 25,300 NYS HFA (Non-Profit) 6.400 11/01/10 5 4,900 NYS HFA (Pepper Tree) 7.750 11/01/09 2,690 2,738,420 NYS HFA (Phillips Village) 7.750 08/15/17 5,000 5,459,350 NYS HFA (S E Tower) 7.750 11/01/18 430 442,900 NYS HFA (Service Contract) 7.700 03/15/06 150 164,484 NYS HFA (Service Contract) 7.700 03/15/01 (p) 100 116,886 NYS HFA (Shorehill Hsg.) 7.500 05/01/08 1,385 1,440,400 NYS HFA (St. Luke's) 6.250 08/15/23 735 723,269 NYS HFA (Urban Rent) 8.250 11/01/19 1,400 1,463,000 NYS HFA (Urban Rent) 6.000 11/01/13 50 47,500 Pilgrim Village HDC 6.800 02/01/21 1,155 1,178,643 Portchester CDC (Southport) 7.300 08/01/11 65 67,972 Puerto Rico HB&F 7.500 10/01/15 210 222,575 Puerto Rico HFA 7.300 10/01/06 10 10,515 Puerto Rico HFC 7.500 04/01/22 8,665 9,137,416 Rensselaer Hsg. Auth. (Renwyck) 7.650 01/01/11 25 27,307 Riverhead HDC 8.250 08/01/10 45 47,250 Rochester Hsg. Auth. (Crossroads) 7.700 01/01/17 20,890 22,679,646
5 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- Rochester Hsg. Auth. (Stonewood) 5.900% 09/01/09 $ 750 $ 730,575 Scotia Hsg. Auth. (Holyrood House) 7.000 06/01/09 175 184,413 Sunnybrook EHC 11.250 12/01/14 3,150 3,354,750 Syracuse IDA (James Square) 0.000 08/01/25 52,320 7,591,632 Syracuse Senior Citizens Hsg. 8.000 12/01/10 375 399,041 Tonawanda HDC 10.000 05/01/03 25 26,125 Tonawanda Senior Citizens Hsg. 7.875 02/01/11 555 582,750 Tupper Lake HDC 8.125 10/01/10 75 78,750 UFA Devel. Corp. (Loretta Utica) 5.950 07/01/35 6,870 6,499,226 Union Elderly Hsg. 10.000 04/01/13 1,890 1,965,600 Union Hsg. Auth. (Methodist Homes) 8.500 04/01/12 2,010 2,247,542 Union Hsg. Auth. (Methodist Homes) 8.350 04/01/02 150 164,960 Union Hsg. Auth. (Methodist Homes) 8.150 04/01/00 110 120,415 Union Hsg. Auth. (Methodist Homes) 8.250 04/01/01 120 131,690 Union Hsg. Auth. (Methodist Homes) 8.050 04/01/99 105 113,721 Union Hsg. Auth. (Methodist Homes) 7.625 11/01/16 745 783,040 Utica Senior Citizen Hsg. 0.000 07/01/26 2,110 232,670 Utica Senior Citizen Hsg. 0.000 07/01/02 25 14,011 V. I. HFA 8.100 12/01/18 30 35,063 White Plains HDC (Armory Plaza) 9.000 02/01/25 960 993,600 White Plains (Battle Hill) 9.875 04/01/25 30 31,500 ---------------------------------------------------------------------------------------------------------------------------- Health Care - 11.8% $237,024,704 Albany IDA (Albany Medical Center) 8.250 08/01/04 3,330 3,571,525 Cayuga County COP (Auburn Hospital) 6.000 01/01/21 15,000 14,655,450 Clifton Springs Hospital & Clinic 8.000 01/01/20 4,640 4,604,550 Erie IDA (Hospital Lease) 8.400 08/01/96 1,903 1,921,440 Erie IDA (Mercy Hospital) 6.250 06/01/10 1,355 1,314,065 Groton Community Health 7.450 07/15/21 2,095 2,265,365 Lyons Community Health 6.800 09/01/24 3,685 3,756,710 Monroe IDA (Genesee Hospital) 7.000 11/01/18 1,500 1,567,830 Newark/Wayne Community Hospital 5.875 01/15/33 4,750 4,586,220 NYC Health & Hospital 6.300 02/15/20 5,525 5,343,614 NYC Health & Hospital LEVRRS 6.792 (f) 02/15/11 12,500 11,978,250 NYS Dorm (Brookhaven) 8.700 07/01/06 245 252,840 NYS Dorm (Cornwall Hospital) 8.750 07/01/07 885 904,470 NYS Dorm (Crouse Irving) 10.500 07/01/17 2,155 2,216,202 NYS Dorm (Department of Health) 7.350 08/01/29 90 95,208 NYS Dorm (Department of Health) 7.250 07/01/11 3,750 3,901,688 NYS Dorm (Department of Health) 6.625 07/01/24 250 257,408 NYS Dorm (Episcopal) 7.550 08/01/29 95 101,419 NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 1,170 1,212,120 NYS Dorm (Montefiore) 8.625 07/01/10 100 102,200 NYS Dorm (New Rochelle) 10.000 01/01/10 335 345,050 NYS Dorm (Presbyterian) 6.500 08/01/34 2,200 2,248,312
6 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYS Dorm (RGH) RITES 6.863 (f) 08/15/33 (c) $ 12,750 $11,416,223 NYS Dorm (St. Vincent) 7.750 07/15/15 150 152,100 NYS HFA (H&N) 7.000 11/01/17 80 82,800 NYS HFA (H&N) 6.875 11/01/11 5 5,050 NYS HFA (H&N) 6.875 11/01/10 9 9,180 NYS Medcare 6.250 08/15/15 250 249,348 NYS Medcare 6.375 08/15/29 2,675 2,741,661 NYS Medcare (Bronx Leb) 7.100 02/15/27 4,825 4,980,896 NYS Medcare (Bronx Leb) 7.100 02/15/27 2,050 2,121,135 NYS Medcare (Brookdale) 6.850 02/15/17 4,600 4,721,900 NYS Medcare (Central Suffolk) 6.125 11/01/16 5,810 5,637,966 NYS Medcare (Downtown Hospital) 6.800 02/15/20 2,240 2,250,483 NYS Medcare (H&N) 6.500 02/15/34 2,250 2,289,150 NYS Medcare (H&N) 9.000 11/01/95 5 5,000 NYS Medcare (H&N) 9.000 02/15/26 30 30,720 NYS Medcare (H&N) 10.500 01/15/24 370 379,472 NYS Medcare (H&N) 6.650 08/15/32 9,020 9,221,868 NYS Medcare (H&N) 6.600 02/15/31 250 256,743 NYS Medcare (H&N) 7.700 08/15/98 (p) 180 190,514 NYS Medcare (H&N) 7.700 02/15/18 45 48,154 NYS Medcare (H&N) 7.250 02/15/12 25 25,987 NYS Medcare (H&N) 9.375 11/01/16 4,715 5,021,475 NYS Medcare (H&N) 7.900 02/15/08 10 10,936 NYS Medcare (H&N) 10.000 11/01/06 1,105 1,176,825 NYS Medcare (H&N) 8.000 08/15/97 (p) 5 5,462 NYS Medcare (H&N) 7.400 11/01/16 3,750 3,853,125 NYS Medcare (H&N) 6.375 08/15/33 1,000 1,007,540 NYS Medcare (Insured Mtg. Nursing) 9.500 01/15/24 400 412,000 NYS Medcare (Insured Mtg.) 6.450 08/15/34 4,000 4,024,200 NYS Medcare (Mental Health) 7.875 08/15/15 705 764,093 NYS Medcare (Mental Health) 7.625 08/15/17 810 880,438 NYS Medcare (Mental Health) 7.750 08/15/11 95 103,478 NYS Medcare (Mental Health) 0.000 08/15/98 (p) 265 50,644 NYS Medcare (Mental Health) 6.500 02/15/19 190 190,977 NYS Medcare (Mental Health) 7.500 02/15/21 810 870,766 NYS Medcare (Mental Health) 7.750 02/15/01 (p) 240 279,362 NYS Medcare (Mental Health) 0.000 08/15/18 130 23,542 NYS Medcare (Mercy) 9.800 11/01/16 565 579,125 NYS Medcare (Mercy) 9.500 11/01/03 30 30,600 NYS Medcare (Nyack) 8.200 11/01/04 3,000 3,302,670 NYS Medcare (Nyack) 8.300 11/01/13 2,835 3,129,613 NYS Medcare (N. General) 7.350 08/15/09 4,600 4,818,086 NYS Medcare (N. General) 7.400 02/15/19 1,695 1,778,360 NYS Medcare (N. General) 10.250 01/01/24 1,460 1,519,860 NYS Medcare (N. General) 7.150 02/15/01 10 10,421
7 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYS Medcare (St. Luke) IVRC 6.903 (f) 02/15/29 $ 22,000 $19,772,500 NYS Medcare (St. Luke) RITES 6.863 (f) 02/15/29 5,750 5,167,928 NYS Medcare (St. Luke) RITES 6.814 (f) 02/15/29 8,400 7,549,668 NYS Medcare (St. Luke) RITES 6.715 (f) 02/15/29 12,500 11,234,625 NYS Medcare (Vassar Brothers) 8.250 11/01/13 4,590 5,032,706 NYS Medcare (Wychoff) 7.400 08/15/21 5,240 5,453,058 NYS Medcare (Wychoff) 7.350 08/15/11 50 53,426 Oneida Healthcare Corp. 7.100 08/01/11 10 10,572 Onondaga IDA (CGH) 6.625 01/01/18 1,400 1,356,320 Onondaga IDA (Crouse Irving) 7.800 01/01/03 220 240,810 Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,250 5,371,118 Puerto Rico ITEME (Ryder Hospital) 6.400 05/01/09 1,045 1,057,091 Rensselaer Municipal Leasing Corp. 6.900 06/01/24 15,000 15,205,350 Syracuse IDA (St. Joseph's) 7.500 06/01/18 3,770 3,936,069 Tompkins Health Care 10.800 02/01/28 25 31,278 Tompkins Health Care 5.875 02/01/33 2,800 2,639,980 Valley Health Devel. 11.300 02/01/23 55 68,762 Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,270 3,563,450 Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/03 1,345 1,418,114 --------------------------------------------------------------------------------------------------------------------------- Municipal Tax Obligations--10.7% $215,402,989 Lowville GO 7.200 09/15/05 100 109,650 Lowville GO 7.200 09/15/13 100 112,277 Lowville GO 7.200 09/15/14 100 112,639 Lowville GO 7.200 09/15/12 100 111,893 Lowville GO 7.200 09/15/07 75 82,190 Newburgh GO 7.250 09/15/13 160 166,069 Newburgh GO 7.250 09/15/14 155 160,879 Newburgh GO 7.150 09/15/09 180 190,215 Newburgh GO 7.150 09/15/10 150 158,513 Newburgh GO 7.100 09/15/07 185 194,768 Newburgh GO 7.200 09/15/12 155 163,773 Newburgh GO 7.200 09/15/11 155 163,773 Newburgh GO 7.100 09/15/08 185 194,768 NYC GO 8.250 08/01/13 30 33,656 NYC GO 7.250 08/15/24 13,820 14,349,444 NYC GO 8.250 08/01/14 35 39,265 NYC GO 8.250 08/01/12 40 44,874 NYC GO 7.500 08/01/19 1,865 2,002,581 NYC GO 8.250 11/15/20 20 22,520 NYC GO 0.000 05/15/11 270 94,508 NYC GO 0.000 08/01/14 500 274,445 NYC GO 7.000 02/01/20 650 670,963 NYC GO 0.000 05/15/14 1,690 990,509 NYC GO 7.500 08/01/21 1,000 1,071,400
8 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYC GO 7.500 % 02/01/03 $ 2,000 $ 2,193,560 NYC GO 7.400 02/01/02 330 364,442 NYC GO 5.625 08/01/17 300 260,808 NYC GO 7.100 02/01/09 1,000 1,040,240 NYC GO 7.625 02/01/14 270 292,016 NYC GO 7.750 02/01/10 1,500 1,618,350 NYC GO 7.625 02/01/13 3,845 4,158,521 NYC GO 7.200 02/01/14 4,000 4,182,120 NYC GO 8.000 08/15/01 (p) 1,390 1,656,268 NYC GO 7.100 02/01/11 1,765 1,836,024 NYC GO 8.250 11/15/01 (p) 920 1,114,543 NYC GO 8.250 11/15/15 80 90,080 NYC GO 7.500 08/01/20 7,500 8,044,350 NYC GO 0.000 08/01/15 1,000 566,180 NYC GO 7.500 08/15/20 6,180 6,687,378 NYC GO 8.000 08/15/20 10 11,098 NYC GO 6.000 08/01/11 495 463,800 NYC GO 8.000 08/15/01 (p) 245 291,932 NYC GO 0.000 08/15/16 70 47,088 NYC GO 8.250 11/15/01 (p) 2,760 3,343,630 NYC GO 7.750 02/01/13 6,000 6,546,180 NYC GO 7.100 02/01/10 4,000 4,161,040 NYC GO 7.000 10/01/12 625 646,344 NYC GO 7.750 08/15/17 2,050 2,227,551 NYC GO 0.000 10/15/15 1,000 521,420 NYC GO 7.500 02/01/16 3,000 3,214,590 NYC GO 0.000 11/15/11 4,990 1,689,864 NYC GO 8.000 08/01/18 45 49,917 NYC GO 7.000 02/01/15 30 33,232 NYC GO 7.200 02/01/15 2,800 2,919,840 NYC GO 8.250 11/15/01 (p) 180 218,063 NYC GO 8.000 08/15/21 5 5,549 NYC GO 7.000 02/01/22 4,600 4,748,350 NYC GO 8.250 08/01/01 (p) 1,590 1,913,963 NYC GO 6.600 02/15/10 2,000 2,004,140 NYC GO 7.750 08/15/12 1,000 1,086,610 NYC GO 7.750 08/15/13 1,000 1,083,960 NYC GO 7.000 02/01/10 25 26,253 NYC GO 8.000 03/15/00 (p) 1,000 1,159,540 NYC GO 7.500 02/01/18 1,500 1,605,630 NYC GO 0.000 05/15/12 200 65,314 NYC GO 8.250 11/15/18 240 270,240 NYC GO 8.250 08/01/01 (p) 85 102,319 NYC GO 8.250 08/01/01 (p) 1,420 1,709,325 NYC GO CARS 7.670 (f) 08/12/10 16,387 17,103,931
9 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYC GO CARS 7.670 (f) 09/01/11 $ 8,387 $ 8,480,767 NYC GO RIBS 6.724 (f) 08/01/09 6,200 5,570,328 NYC GO RIBS 7.449 (f) 08/08/13 13,150 12,098,000 NYC GO RIBS 6.833 (f) 08/22/13 5,400 4,720,842 NYC GO RIBS 6.827 (f) 08/01/15 3,050 2,632,638 NYC GO RIBS 6.735 (f) 08/01/10 4,200 3,737,916 NYC GO RITES 7.696 (f) 10/01/11 15,000 15,615,600 Puerto Rico GO RITES 7.675 (f) 07/01/22 1,600 1,542,896 Puerto Rico GO YCN 7.532 (f) 07/01/15 1,000 957,320 Puerto Rico GO YCN 7.482 (f) 07/01/20 11,750 11,196,223 Suffolk GO 6.375 11/01/16 725 741,559 Suffolk GO (Sewer) 6.750 08/01/10 15 15,300 V. I. Public Finance Auth. 7.250 10/01/18 28,725 29,677,234 V. I. Public Finance Auth. 7.375 10/01/10 1,735 1,838,337 V. I. Public Finance Auth. 7.125 10/01/04 1,135 1,203,009 V. I. (GO/HUGO) 7.750 10/01/06 440 483,859 --------------------------------------------------------------------------------------------------------------------------- Resource Recovery, Pollution Control Revenue - 10.0% $200,896,962 Babylon IDA (Ogden Martin) 8.500 01/01/19 140 157,483 Babylon IDA (Res Rec) (e) 8.875 03/01/11 (d) 1,395 558,000 Dutchess Res Rec (Solid Waste) 7.000 01/01/10 1,805 1,813,682 Dutchess Res Rec (Solid Waste) 6.800 01/01/10 1,700 1,702,346 Franklin SWMA 6.250 06/01/15 3,255 3,067,740 Franklin SWMA 6.125 06/01/09 2,150 2,046,521 Hemstead IDA (Resco) 7.400 12/01/10 4,075 4,218,766 NYS Environ. (Huntington) 7.500 10/01/12 58,860 61,435,714 Onondaga Res Rec 6.875 05/01/06 27,850 27,772,856 Onondaga Res Rec 7.000 05/01/15 68,640 68,630,390 Peekskill IDA (Karta) 9.000 07/01/10 2,024 2,164,404 Ulster County Res Rec 6.000 03/01/14 1,250 1,141,313 Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,965 9,149,141 Warren/Washington IDA (Res Rec) 8.000 12/15/12 8,230 8,362,997 Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,500 8,675,610 --------------------------------------------------------------------------------------------------------------------------- Electric and Gas Utilities - 9.1% $183,169,773 American Samoa Power Auth. 6.950 09/01/03 500 515,430 American Samoa Power Auth. 6.900 09/01/02 400 410,016 American Samoa Power Auth. 7.000 09/01/04 500 520,155 American Samoa Power Auth. 6.800 09/01/00 400 429,208 American Samoa Power Auth. 6.850 09/01/01 400 431,792 American Samoa Power Auth. 7.100 09/01/01 800 885,040 American Samoa Power Auth. 7.200 09/01/02 800 833,632 Guam Power 6.300 10/01/12 525 511,487 NYS Energy & Research (Con Ed) 7.125 03/15/22 225 234,961 NYS Energy & Research (Con Ed) 7.750 01/01/24 4,000 4,265,000
10 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYS Energy & Research (Con Ed) 7.375 % 07/01/24 $ 20,500 $ 21,742,300 NYS Energy & Research (Con Ed) 7.500 11/15/21 660 691,172 NYS ERDA (Brooklyn Union Gas) 8.750 07/01/15 200 207,000 NYS ERDA (Brooklyn Union Gas) 7.125 12/01/20 100 103,437 NYS ERDA (Brooklyn Union Gas) RIBS 8.450 (f) 04/01/20 7,000 7,297,710 NYS ERDA (Brooklyn Union Gas) RIBS 6.880 (f) 07/08/26 3,000 2,849,700 NYS ERDA (Brooklyn Union Gas) RIBS 9.466 (f) 07/01/26 10,300 11,510,250 NYS ERDA (Con Ed) 7.250 11/01/24 8,495 8,999,178 NYS ERDA (Con Ed) 6.000 03/15/28 1,920 1,822,099 NYS ERDA (Con Ed) 7.500 07/01/25 25 26,976 NYS ERDA (LILCO) 7.150 02/01/22 15,920 15,963,780 NYS ERDA (LILCO) 7.150 09/01/19 20,540 20,592,582 NYS ERDA (LILCO) 6.900 08/01/22 7,940 7,881,562 NYS ERDA (LILCO) 7.150 02/01/22 14,500 14,539,875 NYS ERDA (LILCO) 7.150 09/01/19 15,000 15,039,150 NYS ERDA (LILCO) 7.150 12/01/20 15,650 15,692,568 NYS ERDA (LILCO) 6.900 08/01/22 5,275 5,236,229 NYS ERDA (LILCO) 7.150 06/01/20 5 ,000 5,013,500 NYS ERDA (RG&E) 8.375 12/01/28 95 107,493 Puerto Rico Electric 6.000 07/01/14 60 58,800 Puerto Rico Electric LEVRRS 7.782 (f) 07/01/23 12,400 11,950,500 V. I. Water & Power Auth. 7.400 07/01/11 6,465 6,807,192 ---------------------------------------------------------------------------------------------------------------------------- Non-Profit, Other - 7.9% $159,825,231 Albany IDA (Albany Rehabilitation) 8.375 06/01/23 1,045 1,149,364 Batavia Hsg. Auth. (Trocaire Place) 8.750 04/01/25 3,850 3,974,702 Beacon IDA (Craig House) 9.000 07/01/11 225 230,063 Bethany Retirement Home 7.450 02/01/24 1,000 1,089,260 Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,220 3,576,100 Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 640 692,378 Columbia IDA (ARC) 7.750 06/01/05 820 883,411 Columbia IDA (ARC) 8.650 06/01/18 2,610 2,861,343 Columbia IDA (Berkshire Farms) 6.900 12/15/04 895 925,287 Columbia IDA (Berkshire Farms) 7.500 12/15/14 1,855 1,950,106 Geneva IDA (FLCP) 8.250 11/01/04 895 978,647 Islip IDA (Leeway School) 9.000 08/01/21 990 1,083,090 Middleton IDA (Southwinds) 8.375 03/01/18 3,740 3,955,798 Monroe IDA (DePaul CF) 6.450 02/01/14 880 898,198 Monroe IDA (DePaul CF) 6.500 02/01/24 1,285 1,297,426 Monroe IDA (DePaul Properties) 8.800 09/01/21 4,605 5,108,280 Monroe IDA (DePaul Properties) 8.300 09/01/02 585 638,773 Montgomery IDA (New Dimension) 8.900 05/01/16 1,130 1,257,295 Nassau IDA (ACLDD) 8.125 10/01/22 2,725 2,974,937 NYC IDA (BHMS) 8.900 09/01/11 660 721,195 NYC IDA (BHMS) 9.200 09/01/21 1,690 1,884,451
11 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYC IDA (BHMS) 8.400 % 09/01/02 $ 285 $ 313,061 NYC IDA (Blood Bank) 7.200 05/01/12 500 515,060 NYC IDA (Blood Center) 7.250 05/01/22 3,000 3,090,180 NYC IDA (Eden II) 8.750 06/01/19 2,505 2,702,469 NYC IDA (Eden II) 7.750 06/01/04 490 515,176 NYC IDA (EPG) 7.500 07/30/03 10,355 11,193,134 NYC IDA (Graphic Artists) 8.250 12/30/23 1,305 1,387,620 NYC IDA (Hebrew Academy) 10.000 03/01/21 2,335 2,616,858 NYC IDA (JBFS) 6.750 12/15/12 6,040 6,153,733 NYC IDA (Lighthouse) 6.500 07/01/22 1,000 1,018,940 NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,400 4,648,952 NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,420 1,425,240 NYC IDA (OHEL) 8.250 03/15/23 3,435 3,614,444 NYC IDA (PRFFP) 7.000 10/01/16 815 860,265 NYC IDA (Psycho Therapy) 9.625 04/01/10 780 874,692 NYC IDA (Summit School) 8.250 12/01/24 1,485 1,578,436 NYC IDA (Summit School) 7.250 12/01/04 220 222,834 Orange IDA (Glen Arden) 8.875 01/01/25 20,985 21,852,310 Orange IDA (Glen Arden) 8.250 01/01/02 18,000 18,418,500 Orange IDA (Mental) 7.800 07/01/11 495 542,624 Saratoga IDA (ARC) 8.400 03/01/13 1,395 1,487,726 Schenectady IDA (ASSC) 6.400 05/01/14 500 493,385 Schenectady IDA (ASSC) 6.450 05/01/24 2,655 2,691,480 Suffolk IDA (Devel. Disabilities) 8.750 03/01/23 9,675 10,635,824 Suffolk IDA (Devel. Disabilities) 7.375 03/01/03 1,145 1,187,571 Tompkins IDA (Kendall at Ithaca) 7.875 06/01/24 5,465 5,759,891 Tompkins IDA (Kendall at Ithaca) 7.875 06/01/15 2,790 2,950,955 Tompkins IDA (Kendall at Ithaca) 7.625 06/01/09 925 968,938 Wayne IDA (ARC) 7.250 03/01/03 575 597,178 Wayne IDA (ARC) 8.375 03/01/18 2,925 3,136,536 Westchester IDA (Clearview School) 9.375 01/01/21 1,530 1,746,480 Westchester IDA (JBFS) 6.750 12/15/12 2,220 2,261,803 Yonkers IDA (Westchester) 7.375 12/30/03 475 488,172 Yonkers IDA (Westchester) 8.750 12/30/23 3,375 3,744,664 ---------------------------------------------------------------------------------------------------------------------------- Housing, Single Family--5.8% $137,725,642 NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/14 40 6,832 NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/98 95 72,575 NYS (SONYMA) Mortgage, 2nd Series 0.000 10/01/14 13,310 2,222,637 NYS (SONYMA) Mortgage, 5th Series 0.000 10/01/00 15 9,306 NYS (SONYMA) Mortgage, 5th Series 0.000 04/01/99 80 57,286 NYS (SONYMA) Mortgage, 5th Series 0.000 10/01/99 90 61,643 NYS (SONYMA) Mortgage, 5th Series 0.000 04/01/00 60 39,040 NYS (SONYMA) Mortgage, 5th Series 9.625 10/01/05 15 15,435 NYS (SONYMA) Mortgage, 6th Series 0.000 (c) 04/01/10 2,690 2,459,467
12 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYS (SONYMA) Mortgage, 7th Series 0.000 % 04/01/00 $ 105 $ 71,666 NYS (SONYMA) Mortgage, 7th Series 0.000 (c) 10/01/14 1,820 1,467,648 NYS (SONYMA) Mortgage, 8th Series C 8.300 10/01/06 35 36,939 NYS (SONYMA) Mortgage, 8th Series C 8.400 10/01/17 170 179,767 NYS (SONYMA) Mortgage, 8th Series E 8.100 10/01/17 80 84,405 NYS (SONYMA) Mortgage, 9th Series A 7.300 04/01/17 185 189,960 NYS (SONYMA) Mortgage, 9th Series B 8.300 10/01/17 10 10,519 NYS (SONYMA) Mortgage, 9th Series E 8.375 04/01/18 20 21,160 NYS (SONYMA) Mortgage, Series 8-D 8.200 10/01/06 100 105,583 NYS (SONYMA) Mortgage, Series 12 0.000 (c) 04/01/17 680 564,930 NYS (SONYMA) Mortgage, Series 27 6.450 04/01/04 25 26,388 NYS (SONYMA) Mortgage, Series 28 7.050 10/01/23 8,615 9,043,424 NYS (SONYMA) Mortgage, Series 30-A 4.375 10/01/23 15 11,250 NYS (SONYMA) Mortgage, Series 30-B 6.650 10/01/25 12,505 12,826,003 NYS (SONYMA) Mortgage, Series 36-A 6.625 04/01/25 11,500 11,800,610 NYS (SONYMA) Mortgage, Series 38 RITES 7.565 (f) 04/01/25 14,020 13,161,275 NYS (SONYMA) Mortgage, Series 40-A 6.700 04/01/25 6,435 6,640,663 NYS (SONYMA) Mortgage, Series 40-B 6.600 04/01/25 5,720 5,896,462 NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 13,600 13,987,056 NYS (SONYMA) Mortgage, Series 44 7.500 04/01/26 12,000 12,970,560 NYS (SONYMA) Mortgage, Series 8-A 6.875 04/01/17 115 116,343 NYS (SONYMA) Mortgage, Series 8-F 8.000 10/01/17 70 73,782 NYS (SONYMA) Mortgage, Series BB-2 7.950 10/01/15 150 157,709 NYS (SONYMA) Mortgage, Series EE 7.750 10/01/10 95 101,824 NYS (SONYMA) Mortgage, Series EE-1 8.000 10/01/10 45 47,952 NYS (SONYMA) Mortgage, Series EE-2 7.450 10/01/10 100 105,380 NYS (SONYMA) Mortgage, Series EE-2 7.500 04/01/16 40 42,073 NYS (SONYMA) Mortgage, Series EE-3 7.700 10/01/10 275 291,077 NYS (SONYMA) Mortgage, Series EE-3 7.750 04/01/16 15 15,982 NYS (SONYMA) Mortgage, Series GG 7.600 10/01/18 140 142,800 NYS (SONYMA) Mortgage, Series GG 8.125 10/01/17 295 311,228 NYS (SONYMA) Mortgage, Series GG 8.125 04/01/20 210 220,874 NYS (SONYMA) Mortgage, Series HH-1 8.250 04/01/22 35 38,188 NYS (SONYMA) Mortgage, Series HH-2 7.600 10/01/21 40 41,000 NYS (SONYMA) Mortgage, Series HH-2 7.700 10/01/09 440 468,706 NYS (SONYMA) Mortgage, Series HH-2 7.850 04/01/22 40 42,810 NYS (SONYMA) Mortgage, Series HH-3 7.600 10/01/21 315 332,788 NYS (SONYMA) Mortgage, Series HH-3 7.875 10/01/09 300 330,993 NYS (SONYMA) Mortgage, Series HH-3 7.950 04/01/22 490 522,663 NYS (SONYMA) Mortgage, Series HH-4 7.700 10/01/21 40 42,786 NYS (SONYMA) Mortgage, Series HH-4 8.050 04/01/22 65 70,074 NYS (SONYMA) Mortgage, Series II 0.000 04/01/08 170 65,729 NYS (SONYMA) Mortgage, Series II 0.000 10/01/07 100 40,201 NYS (SONYMA) Mortgage, Series II 0.000 04/01/20 1,285 183,948 NYS (SONYMA) Mortgage, Series II 0.000 10/01/08 120 47,207
13 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- NYS (SONYMA) Mortgage, Series II 0.000 % 04/01/05 $ 100 $ 51,643 NYS (SONYMA) Mortgage, Series II 0.000 10/01/09 180 65,144 NYS (SONYMA) Mortgage, Series II 0.000 01/01/06 90 43,091 NYS (SONYMA) Mortgage, Series JJ 7.500 10/01/17 375 396,705 NYS (SONYMA) Mortgage, Series KK 7.625 04/01/19 120 127,498 NYS (SONYMA) Mortgage, Series KK 7.800 10/01/20 230 245,405 NYS (SONYMA) Mortgage, Series MM-1 7.500 04/01/13 80 84,928 NYS (SONYMA) Mortgage, Series MM-1 7.750 10/01/05 25 27,808 NYS (SONYMA) Mortgage, Series MM-2 7.700 04/01/05 100 109,999 NYS (SONYMA) Mortgage, Series NN 7.550 10/01/17 35 37,237 NYS (SONYMA) Mortgage, Series RR 7.700 10/01/10 90 96,268 NYS (SONYMA) Mortgage, Series RR 7.750 10/01/17 80 85,562 NYS (SONYMA) Mortgage, Series SS 7.500 10/01/19 450 463,500 NYS (SONYMA) Mortgage, Series TT 6.950 10/01/02 5 5,384 NYS (SONYMA) Mortgage, Series UU 7.150 10/01/22 150 153,000 NYS (SONYMA) Mortgage, Series UU 7.750 10/01/23 1,370 1,475,819 NYS (SONYMA) Mortgage, Series VV 0.000 10/01/23 115,222 13,901,534 NYS (SONYMA) Mortgage, Series VV 7.375 10/01/11 195 207,057 Puerto Rico HFA 7.650 10/15/22 30 32,269 Puerto Rico HFA 0.000 08/01/26 8,690 1,026,376 Puerto Rico HFA BULLS 9.280 (f) 08/01/14 5,750 6,324,483 Puerto Rico HFA RIBS 8.703 (f) 08/04/25 14,500 14,870,330 ---------------------------------------------------------------------------------------------------------------------------- Transportation - 6.8% $137,661,171 Albany IDA (Port of Albany) 7.250 02/01/24 1,395 1,488,242 Guam Airport 6.500 10/01/23 1,650 1,618,419 Guam Airport 6.600 10/01/10 2,230 2,237,939 Guam Airport 6.700 10/01/23 44,655 44,812,632 MTA YCR 6.823 (f) 07/01/13 9,400 8,872,096 MTA YCR 6.823 (f) 07/01/22 3,000 2,794,980 MTA (Transit) IVRC 6.439 (f) 07/01/11 10,000 9,475,000 NYC IDA (Amer. Airlines) 6.900 08/01/24 19,185 19,721,988 NYC IDA (Amer. Airlines) 8.000 07/01/20 7,110 7,566,746 NYC IDA (Amer. Airlines) 7.750 07/01/19 1,795 1,896,435 NYS Thruway 0.000 01/01/04 2,000 1,229,980 NYS Thruway 0.000 01/01/05 260 150,316 NYS Thruway 0.000 01/01/03 1,000 653,560 Port Auth. NY/NJ 0.000 (c) 12/01/14 25 22,557 Port Auth. NY/NJ 7.875 03/01/24 25 26,183 Port Auth. NY/NJ 76th Series 6.500 11/01/26 60 60,484 Port Auth. NY/NJ (US Air) 9.000 12/01/06 6,920 7,702,860 Port Auth. NY/NJ (US Air) 9.000 12/01/10 475 528,737 Port Auth. NY/NJ (US Air) 9.125 12/01/15 22,285 24,930,675 Puerto Rico Port Auth. 7.300 07/01/07 30 30,600 V. I. Port Auth. (CEK Airport) 8.100 10/01/05 1,670 1,840,741 ----------------------------------------------------------------------------------------------------------------------------
14 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- Government and Public Facilities--6.6% $132,818,458 Albany IDA (Upper Hudson Library) 8.750% 05/01/22 $ 955 $ 1,068,502 Albany IDA (Upper Hudson Library) 8.750 05/01/07 240 263,359 Albany Parking Auth. 0.000 11/01/17 1,770 442,872 Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,330 1,418,152 Clifton Park COP (Clifton Commons) 8.500 08/01/08 15 15,450 Monroe COP 8.050 01/01/11 500 531,100 NYS COP (BOCES) 7.875 10/01/00 1,120 1,217,250 NYS COP (Hanson Redevelopment) 8.250 11/01/01 250 270,735 NYS COP (John Jay College) 7.250 08/15/07 70 72,024 NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 23,500 27,495,000 NYS UDC 7.500 04/01/11 305 327,271 NYS UDC 7.000 05/01/14 390 403,650 NYS UDC 9.375 09/01/99 670 695,460 NYS UDC 7.500 01/01/01 (p) 4,000 4,618,480 NYS UDC 0.000 01/01/11 97,405 38,026,912 NYS UDC 0.000 01/01/09 1,250 558,963 NYS UDC 0.000 01/01/03 15 9,839 NYS UDC 0.000 01/01/09 20,660 9,178,205 NYS UDC 0.000 01/01/11 80 32,479 NYS UDC 0.000 01/01/08 900 429,777 NYS UDC 7.750 01/01/00 (p) 385 442,473 NYS UDC 0.000 01/01/10 33,590 13,953,622 NYS UDC 0.000 01/01/10 1,250 522,938 NYS UDC 0.000 01/01/01 (p) 235 46,018 NYS UDC 7.500 04/01/20 10,725 11,524,227 Schroon Lake Fire District 7.250 03/01/09 606 627,398 Troy IDA (City of Troy) 8.000 03/15/12 3,250 3,476,168 Troy IDA (City of Troy) 8.000 03/15/22 13,250 14,135,365 Vigilant EHL (Thomatson) 7.500 11/01/12 950 1,014,771 ---------------------------------------------------------------------------------------------------------------------------- Water and Telephone Utilities--4.5% $91,530,546 Erie County Water Revenue 4th Series 0.000 12/01/17 12,590 2,578,684 Montgomery IDA (Amsterdam) 7.250 01/01/19 5,860 6,155,227 NYC Municipal Water Finance Auth. IVRC 7.197 (f) 06/15/17 30,000 29,962,500 NYS Environ. (Consolidated Water) 7.150 11/01/14 1,840 1,937,686 NYS Environ. (Jamaica Water) 11.000 08/01/03 2,240 2,357,331 NYS Environ. (L.I. Water) 10.000 10/01/17 500 564,725 NYS Environ. (NYS Water Services) 8.375 01/15/20 7,500 8,272,650 Puerto Rico Telephone Auth. RIBS 6.459 (f) 01/01/15 16,550 15,453,563 Puerto Rico Telephone Auth. RIBS 7.542 (f) 01/01/20 10,000 9,697,000 St. Lawrence County (Solid Waste) 8.250 01/01/02 10 10,909 St. Lawrence County (Solid Waste) 8.875 01/01/08 100 109,562 Suffolk IDA (Ocean Park Water) 7.500 11/01/22 715 763,677
15 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ---------------------------------------------------------------------------------------------------------------------------- V. I. Water & Power Auth. 8.500 % 01/01/10 $ 5,900 $ 6,399,730 V. I. Water & Power Auth. 7.600 01/01/12 6,850 7,267,302 ---------------------------------------------------------------------------------------------------------------------------- Non-Profit, Higher Education - 3.3% $66,671,548 Allegany IDA (Alfred University) 7.500 09/01/11 10,070 10,826,559 Brookhaven IDA (Dowling College) 6.750 03/01/23 6,965 7,173,323 Cattaraugus IDA (St. Bonaventure) 8.300 12/01/10 9,155 10,074,803 Dutchess IDA (Bard College) 7.000 11/01/17 3,500 3,661,980 Erie IDA (Medaille College) 8.000 12/30/22 3,230 3,412,753 Monroe IDA (Roberts Wesleyan College) 7.400 09/01/11 2,015 2,173,359 New Rochelle IDA (CNR) 6.750 07/01/22 3,000 3,054,600 NYC IDA (MMC) 7.000 07/01/23 3,700 3,785,359 NYS Dorm (City University) 0.000 07/01/98 (p) 205 37,337 NYS Dorm (City University) 7.875 07/01/00 (p) 425 493,136 NYS Dorm (State University) 0.000 05/15/07 50 24,637 NYS Dorm (State University) 7.000 05/15/16 165 173,375 NYS Dorm (UCC) 7.750 07/01/98 (p) 135 150,325 NYS Dorm (UCC) 7.300 07/01/01 (p) 2,000 2,309,760 Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5 4,490 Rockland IDA (DC) 8.000 03/01/13 2,090 2,221,127 Suffolk IDA (Dowling College) 8.250 12/01/20 990 1,095,148 Suffolk IDA (Dowling College) 6.625 06/01/24 2,000 2,023,860 University of V. I. 7.700 10/01/19 3,570 3,772,812 University of V. I. 7.250 10/01/04 1,205 1,268,118 University of V. I. 7.750 10/01/24 5,175 5,468,216 Yates IDA (Keuka College) 9.000 08/01/11 1,095 1,234,613 Yates IDA (Keuka College) 8.750 08/01/15 2,000 2,231,860 ----------------------------------------------------------------------------------------------------------------------------- Manufacturing, Durable Goods - 3.1% $61,939,266 Brookhaven IDA (Farber) 6.750 (g) 12/01/02 870 870,000 Brookhaven IDA (Farber) 6.750 (g) 12/01/04 490 485,100 Brookhaven IDA (Modular Devices) 7.000 11/01/95 100 100,000 Brookhaven IDA (Modular Devices) 7.375 11/01/96 235 237,169 Broome IDA (Simulator) 8.250 01/01/02 1,010 1,110,010 Cattaraugus IDA (Cherry Creek) 9.800 09/01/10 2,105 2,441,800 Chautauqua IDA (Dunkirk Glass) 11.500 12/01/10 4,900 4,998,000 City of Port Jervis (Future Home Tech.) 10.000 11/01/08 780 811,200 Cortland IDA (Paul Bunyon Products) 8.000 07/01/00 140 152,879 Erie IDA (Great Lakes Orthodontic) 12.099 05/01/00 167 186,989 Herkimer IDA (Burrows Paper) 8.000 01/01/09 1,440 1,489,363 Monroe IDA (Brazill Merk) 7.900 12/15/14 3,080 3,317,653 Monroe IDA (Melles Griot) 9.500 12/01/09 1,675 1,822,048 Montgomery IDA (Breton Industries) 8.150 04/01/10 590 647,956 Nassau IDA (RJS Scientific) 8.050 12/01/05 355 364,088 Nassau IDA (RJS Scientific) 9.050 12/01/25 2,700 2,837,106
16 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ----------------------------------------------------------------------------------------------------------------------------- Nassau IDA (Structural Industries) 7.750 % 02/01/12 $ 500 $ 530,070 NYC IDA (Display Creations) 9.250 06/01/97 (b) 2,100 2,275,287 NYC IDA (HiTech Res Rec) 8.750 08/01/00 480 528,840 NYC IDA (HiTech Res Rec) 9.250 08/01/08 695 759,795 NYC IDA (House of Spices) 9.000 10/15/01 635 696,925 NYC IDA (House of Spices) 9.250 10/15/11 2,140 2,360,463 NYC IDA (Nekboh) 9.625 05/01/11 6,135 6,907,028 NYC IDA (Penguin Air Conditioning) 12.222 12/01/99 250 277,671 NYC IDA (Pop Display) 7.900 12/15/14 2,645 2,800,156 NYC IDA (Pop Display) 6.750 12/15/04 1,365 1,345,685 NYC IDA (Priority Mailers) 9.000 03/01/10 1,855 2,012,675 NYC IDA (Quality Braid) 8.950 01/30/16 4,555 5,145,146 NYC IDA (Quality Braid) 8.500 04/30/00 485 532,520 NYC IDA (Ultimate Display) 9.000 10/15/11 1,910 2,073,076 NYC IDA (Ultimate Display) 8.750 10/15/00 420 456,674 Onondaga IDA (Coltec) 9.875 10/01/10 625 650,000 Onondaga IDA (Coltec) 7.250 06/01/08 520 525,200 Onondaga IDA (Gear Motion) 8.400 12/15/01 790 842,717 Onondaga IDA (Gear Motion) 8.900 12/15/11 1,790 2,003,690 Peekskill IDA (Wenco) 8.875 12/01/08 1,130 1,183,822 Rensselaer IDA (MMP) 8.500 12/15/02 20 21,200 Suffolk IDA (Marbar Assoc.) 8.300 03/01/09 190 197,727 Suffolk IDA (Marbar Assoc.) 8.300 03/01/08 190 200,444 Suffolk IDA (Microwave Power) 8.500 06/30/22 4,320 4,536,000 Suffolk IDA (Microwave Power) 7.750 06/30/02 385 410,957 Syracuse IDA (Piscitell Stone) 8.400 12/01/11 725 794,136 ----------------------------------------------------------------------------------------------------------------------------- Private Lease Revenue - 1.3% $25,849,137 Albany IDA (100 State Street) 8.750 12/31/10 2,500 2,550,000 Albany IDA (Kenwood Associates) 9.250 09/01/10 2,775 3,166,220 Broome IDA (Industrial Park) 7.600 12/01/01 195 200,850 Broome IDA (Industrial Park) 7.550 12/01/00 190 195,700 Erie IDA (Air Cargo) 8.250 10/01/07 1,610 1,692,448 Erie IDA (Air Cargo) 8.500 10/01/15 2,380 2,629,448 Fulton IDA (Crossroads Incubator) 8.500 12/15/98 (a) 160 163,840 Hudson IDA (Northside) 9.000 12/01/09 490 570,326 Islip IDA (WJL Realty) 7.800 03/01/03 50 53,380 Islip IDA (WJL Realty) 7.950 03/01/10 500 539,925 Islip IDA (WJL Realty) 7.850 03/01/04 100 106,957 Islip IDA (WJL Realty) 7.900 03/01/05 100 107,156 Monroe IDA (Canal Ponds) 7.000 06/15/13 900 951,930 Monroe IDA (Cottrone Devel.) 9.500 12/01/10 2,472 2,859,834 Monroe IDA (Morrell/Morrell) 7.000 12/01/07 2,389 2,438,667 Monroe IDA (West End Business) 8.000 12/01/14 1,375 1,478,469 Monroe IDA (West End Business) 6.750 12/01/04 625 630,419
17 Rochester Fund Municipals Portfolio of Investments June 30, 1995 (Unaudited)
Face Amount Description Coupon Maturity (000) omitted Market Value ----------------------------------------------------------------------------------------------------------------------------- Monroe IDA (West End Business) 8.000 % 12/01/14 $ 345 $ 374,084 Monroe IDA (West End Business) 8.000 12/01/14 170 185,873 Monroe IDA (West End Business) 8.000 12/01/14 515 563,086 Monroe IDA (West End Business) 6.750 12/01/04 80 80,694 Monroe IDA (West End Business) 6.750 12/01/04 155 156,344 Niagara IDA (Maryland Maple) 10.250 11/15/09 1,165 1,286,032 Suffolk IDA (Rimland Facilities) 6.750 (g) 12/01/09 1,670 1,644,950 Syracuse IDA (Rockwest Center) 8.000 06/01/13 1,150 1,222,508 ----------------------------------------------------------------------------------------------------------------------------- Service Companies - 0.8% $16,647,178 Albany IDA (Albany Golf) 7.500 05/01/12 400 420,004 Auburn IDA (Wegmans) 7.250 12/01/98 215 217,703 Dutchess IDA (Merchants Press) 9.000 06/30/22 4,590 4,878,527 Dutchess IDA (Merchants Press) 7.950 06/30/02 1,800 1,872,198 Erie IDA (Affordable Hospitality) 9.250 12/01/15 3,765 4,009,725 Monroe IDA (De Carolis) 7.500 01/30/05 452 463,645 Niagara IDA (Sevenson Hotel) 6.600 05/01/07 1,900 1,913,357 NYC IDA (Loehmanns) 9.500 12/31/04 580 597,400 Oswego IDA (Riverside) (e) 9.000 (d) 12/01/96 100 40,000 Syracuse IDA (Genesee Inn) (e) 10.000 (d) 05/01/05 2,701 1,080,292 Yonkers Parking Auth. 7.750 12/01/04 1,115 1,154,326 ----------------------------------------------------------------------------------------------------------------------------- Manufacturing, Non-Durable Goods - 0.2% $3,003,420 Monroe IDA (Cohber) 7.650 12/01/02 10 10,756 Monroe IDA (Cohber) 7.550 12/01/01 10 10,790 Monroe IDA (Cohber) 7.850 12/01/09 170 185,552 Monroe IDA (Cohber) 7.700 12/01/03 10 10,771 Ulster IDA (Brooklyn Bottling) 7.800 06/30/02 660 696,689 Ulster IDA (Brooklyn Bottling) 8.600 06/30/22 1,915 2,088,863 -------------- Total municipal bond investments (cost $1,939,579,637) - 99.1% $1,995,415,712 Other assets and liabilities (net) - 0.9% 17,169,446 -------------- Net assets at market - 100.0% $2,012,585,158 ============== (a) Date of mandatory put; final maturity 12/15/2008. (b) Date of mandatory put; final maturity 6/1/2008. (c) Security will convert to a fixed coupon at a future date prior to maturity. (d) Non-income producing security. (e) Fair valued security. (f) Interest rate is subject to change periodically and rate shown is the rate in effect at June 30, 1995. (g) Variable rate security that fluctuates as a percentage of prime rate. (p) Date of pre-refunded call.
See accompanying notes to financial statements. 18 Portfolio Abbreviations To simplify the listings of Rochester Fund Municipals' holdings in the Portfolio of Investments, we have abbreviated the descriptions of many of the securities per the table below: ACLDD Adults and Children with Learning HFC Housing Finance Corporation and Developmental Disabilities HHRH Historic Hudson River Heritage ARC Association of Retarded Citizens H&N Hospital and Nursing ASSC Annie Schaffer Senior Center IDA Industrial Development Authority BHMS Brooklyn Heights Montessori School ITEME Industrial Tourist Educational Medical BOCES Board of Cooperative Educational and Environmental Services IVRC Inverse Variable Rate Certificate CARS Complimentary Auction Rate Security JBFS Jewish Board Family Services CDC Community Development Corporation LEVRRS Leveraged Reverse Rate Security CEK Cyril E. King LILCO Long Island Lighting Corporation CF Community Facilities MMC Marymount Manhattan College CGH Community General Hospital MMP Millbrook Millwork Project CNR College of New Rochelle MTA Metropolitan Transit Authority COP Certificate of Participation PRFFP Puerto Rico Family Foundation Project DC Dominican College Res Rec Resource Recovery Facility EHC Elderly Housing Corporation RGH Rochester General Hospital EHL Engine Hook and Ladder RG&E Rochester Gas & Electric EPG Elmhurst Parking Garage RIBS Residual Interest Bonds ERDA Energy Research and RITES Residual Interest Tax Exempt Security Development Authority SONYMA State of New York Mortgage Agency E,E&T Ear, Eye and Throat SWMA Solid Waste Management Authority FLCP Finger Lakes Cerebral Palsy UCC Upstate Community College GO General Obligation UDC Urban Development Corporation HB&F Housing Bank and Finance UFA Utica Free Academy HDC Housing Development Corporation WWH Wyandach/Wheatley Heights HELP Homeless Economic Loan Program YCN Yield Curve Note HFA Housing Finance Agency YCR Yield Curve Receipt V.I. United States Virgin Islands
------------------------------------------------------------------------------- Asset Composition Table--June 30, 1995 (Unaudited) (As a percentage of total investments)
Percentage Rating of Investments --------------------------- AAA 18.8% All unrated bonds are backed by mortgage liens and guarantees by the issuer. AA 13.2% Bonds which are backed by a letter of credit or by other financial institutions or A 22.6% agencies may be assigned an investment grade rating by the Investment BBB 25.2% Policy Committee of the Board of Trustees, which reflects the quality of the BB 6.4% guarantor, institution or agency. Unrated bonds may also be assigned a rating B 1.7% when the issuer has rated bonds outstanding with comparable credit CCC 0.0% characteristics which allow for rating. The unrated bonds in the portfolio are CC 0.0% predominantly smaller issuers which have not applied for a bond rating. Only C 0.0% those unrated bonds which subsequent to purchase have not been designated Not Rated 12.1% investment grade are included in the "Not Rated" category. For ----------- information see "Credit Quality" in the Prospectus. Total 100.0% ===========
19 Rochester Fund Municipals ------------------------------------------------------------------------------- Statement of Assets and Liabilities - June 30, 1995 (Unaudited) Assets Investments at market (Cost $1,939,579,637) ............................ $1,995,415,712 Cash and cash equivalents ...................... 152,285 Interest receivable ............................ 35,579,032 Receivable for capital shares sold ............. 3,294,244 Receivable for investments sold ................ 2,736,742 Other assets ................................... 1,450,454 -------------- Total assets ................................... 2,038,628,469 -------------- Liabilities Payable for investments purchased ................ 13,653,021 Payable for capital shares repurchased ........... 2,944,920 Distributions payable to shareholders ............ 3,915,370 Demand note payable to Bank Interest rate (7.125% at 6/30/95) .............. 5,530,000 -------------- Total liabilities ................................ 26,043,311 -------------- Net Assets ........................................ $2,012,585,158 ============== Represented by Paid in capital .................................. $2,009,920,414 Undistributed net investment income .............. 902,493 Accumulated net realized loss on investment transactions .................................... (54,073,824) Net unrealized appreciation of investments ....... 55,836,075 -------------- Total--Representing net assets applicable to capital shares outstanding ...................... $2,012,585,158 ============== Computation of net asset value and offering price Net asset value and redemption price per share ($2,012,585,158 divided by 114,349,650 shares) .. $17.60 ============== Offering price per share (100/96 of $17.60)* ..... $18.33 ============== *On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. ------------------------------------------------------------------------------- Statement of Operations (Unaudited) Six months ended June 30, 1995 Investment Income: Interest ......................................... $70,048,978 ----------- Expenses: Management fees .................................. 4,204,186 Distribution fees ................................ 1,902,507 Shareholder servicing agent fees ................. 627,393 Accounting and auditing .......................... 328,355 Shareholder communications ....................... 189,586 Trustees' compensation ........................... 99,600 Registration fees ................................ 91,035 Custodian fees ................................... 77,562 Legal fees ....................................... 47,713 Miscellaneous .................................... 7,346 Interest ......................................... 295,376 ------------ Total expenses .................................. 7,870,659 ------------ Net investment income ............................. 62,178,319 ------------ Realized and unrealized gain (loss) on investments: Net realized loss on investments ................................... (9,070,697) Net increase in unrealized appreciation of investments ................... 154,782,757 ------------ Net gain on investments ........................ 145,712,060 ------------ Net increase in net assets resulting from operations ....................... $207,890,379 ============ Statement of Changes in Net Assets Six months ended June 30, 1995 Year Ended (Unaudited) Dec. 31, 1994 ---------------- ------------- Increase (decrease) in net assets-- Operations: Net investment income ....................... $62,178,319 $118,882,777 Net realized loss from security transactions ............................... (9,070,697) (40,072,783) Increase (decrease) in unrealized appreciation ............................... 154,782,757 (243,302,977) ----------- ------------ Increase (decrease) in net assets resulting from operations................... 207,890,379 (164,492,983) ----------- ------------ Distributions to shareholders from: Net investment income ....................... (63,139,034) (120,341,434) ----------- ------------ Fund share transactions: Net proceeds from shares sold ............... 146,903,483 476,656,393 Value of shares issued in reinvestment of distributions ........................... 33,367,587 61,703,204 Cost of shares repurchased .................. (103,736,310) (256,321,686) ----------- ------------ Increase in net assets derived from Fund share transactions ......................... 76,534,760 283,037,911 ----------- ------------ Increase (decrease) in net assets ............ 221,286,105 (2,796,506) Net assets: Beginning of period .......................... 1,791,299,053 1,794,095,559 -------------- -------------- End of period ................................ $2,012,585,158 $1,791,299,053 ============== ============== See accompanying notes to financial statements. 20 Rochester Fund Municipals Notes to Financial Statements June 30, 1995 (Unaudited) Note 1. Significant Accounting Policies: Rochester Fund Municipals (the "Fund") was organized as a corporation under the laws of New York State in 1928. The Fund was registered in December, 1982 under the Investment Company Act of 1940 as a non-diversified, closed-end management investment company. Shareholders voted for the Fund's reclassification as an open-end investment company (mutual fund) on March 27, 1986, when they also approved the name change from Martek Investors, Inc. to Rochester Fund Municipals, Inc. In April, 1992, the Fund received shareholder approval to reorganize from a New York corporation to a Massachusetts business trust. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements: Security valuation and transactions. Investments are valued at market value using information available from an approved pricing service, quotations from bond dealers, market transactions in comparable securities, and various relationships between securities. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Board of Trustees. Security transactions are accounted for on the trade date. Cost is determined and realized gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes. Interest income is recorded on the accrual basis. In computing net investment income, the Fund amortizes premiums and accretes original issue discount. For municipal bonds purchased after April 30, 1993 and subsequently sold at a gain, market discount is accreted at the time of sale (to the extent of the lesser of the accrued market discount or the disposition gain) and is treated as taxable income, rather than capital gain. Securities purchased on a when issued basis. The Fund may purchase portfolio securities on a when issued or delayed delivery basis. These securities have been registered by a municipality or government agency, but have not been issued to the public. The Fund may contract to purchase these securities in advance of issuance. Delivery of the security and payment therefor may take place a month or more after the date of the transaction. At the time of purchase, the Fund sets aside sufficient investment securities as collateral to meet such purchase commitments. Such securities are subject to market fluctuations during this period. The current value of these securities is determined in the same manner as for other portfolio securities. Distributions to shareholders. Income distributions are declared and recorded each day based on the projected net investment income for a period, usually one month, calculated as if earned pro rata throughout the period on a daily basis. Such distributions are paid monthly. Capital gain distributions, if any, are recorded on the ex-dividend date and paid annually. Federal income taxes. During any particular year, the Fund is required to distribute certain minimum amounts of net realized capital gains and net investment income in order to avoid a federal income or excise tax. It is the Fund's intention to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable and tax-exempt income to shareholders. Therefore, the Fund is not required to record a liability for either federal income or excise tax. 21 Reclassification of capital accounts. In 1993, the Fund adopted the provisions of Statement of Position 93-2 "Determination, Disclosure and Financial Statement Presentation of Income, Capital Gain and Return of Capital Distributions by Investment Companies." (SOP). The SOP requires the Fund to report the undistributed net investment income (accumulated loss) and accumulated net realized gain (loss) accounts in such a manner as to approximate amounts available for future tax distributions (or to offset future realized capital gains). The implementation of the SOP did not have a significant impact on the Fund. Other. There are certain risks arising from geographic concentration in any state. Certain revenue or tax related events in a state may impair the ability of certain issuers of municipal securities to pay principal and interest on their obligations. Note 2. Management Fee and Other Transactions with Affiliated Parties: Ronald H. Fielding, President and a trustee of the Fund, is also an officer, director and controlling shareholder of Rochester Fund Distributors, Inc. (RFD), the Fund's principal underwriter and an officer, director and controlling shareholder of Rochester Fund Services, Inc. (RFS), the Fund's shareholder servicing, accounting and pricing agent. The Fund's investment adviser is Rochester Capital Advisors, L.P. (RCA, L.P.). RCA, L.P. is managed by Rochester Capital Advisors, Inc. (RCA), which serves as the general partner of RCA, L.P. Mr. Fielding is President, director and controlling shareholder of RCA. Effective May 1, 1995, the management fee payable to RCA, L.P. is based on an annual rate of .54% of average daily net assets up to $100 million, .52% of average daily net assets in excess of $100 million to $250 million, .47% of average daily net assets in excess of $250 million to $2 billion, .46% of average daily net assets in excess of $2 billion to $5 billion, and .45% of average daily net assets in excess of $5 billion. During the first six months of 1995, RCA, L.P. received fees of $4,204,186 for management and investment advisory services. Prior to May 1, 1995, RCA, L.P. was entitled to receive management fees based on an annual rate of .50% of average daily net assets up to $100 million, .45% of average daily net assets on the next $150 million, .40% of average daily net assets in excess of $250 million but less than $2 billion, and .39% of average daily net assets in excess of $2 billion. The Fund has adopted a distribution plan pursuant to Rule 12b-1 of the Investment Company Act of 1940, as amended. Effective May 1, 1995, the distribution plan was amended to permit the Fund to pay only a service fee of up to .25% per annum of its average daily net assets for expenses incurred in connection with the maintenance of shareholder accounts. Currently, the Board of Trustees has limited the service fee to .15% per annum of average daily net assets. Prior to May 1, 1995, the Fund's distribution plan permitted the Fund to pay an asset based sales charge of up to .10% per annum of its average daily net assets for certain sales related distribution expenses in addition to the service fee. For the six month period ended June 30, 1995, the Fund paid distribution fees of $1,902,507 to RFD. From this amount, RFD made service fee payments of $1,438,090 to broker dealers and financial institutions. For the six month period ended June 30, 1995, RFD, acting as an underwriter, received $526,603 as its portion of the sales charge on sales of the Fund. For the six month period ended June 30, 1995, RFS received $922,118 in shareholder servicing agent, pricing and accounting fees from the Fund. The shareholder servicing agent fee charged by RFS to the Fund is based on an annual maintenance fee of $24.12 for each shareholder account. For the period ended June 30, 1995, the Fund was charged $294,725 for pricing and accounting services. 22 During the first six months of 1995, the Fund directly purchased from and sold to the Limited Term New York Municipal Fund, an affiliated investment company, investments at market value in the amount of $8,449,697 and $6,670,817, respectively. There were no commissions or other charges associated with these transactions. In January, 1995, the Board of Trustees of the Fund adopted a retirement plan for its independent trustees. Upon retirement, eligible trustees receive annual payments based upon their years of service. The plan is not funded; however, the Fund recognizes the expense during the time the trustees serve on the Board. The retirement plan expense, which is included in trustees' compensation, amounted to $54,000 for the six months ended June 30, 1995. No payments have been made under the plan. Note 3. Portfolio Information: Purchases at cost and proceeds from sales of investment securities for the period ended June 30, 1995 were $194,644,752 and $146,588,945, respectively. The Fund held $294,995,042 in inverse floating rate municipal bonds at June 30, 1995, comprising approximately 14.66% of net assets. In March, 1994, the Fund entered into a conditional contract to purchase a total of $9,710,000 of Islip Resource Recovery Series D Refunding Bonds as detailed below: Face Amount Coupon Maturity ------ ------ -------- $2,420,000 6.05% 2004 2,565,000 6.15% 2005 2,725,000 6.25% 2006 2,000,000 6.50% 2009 ---------- $9,710,000 ========== The bonds will be issued and delivered on August 15, 1995 if the following terms and conditions are met: 1) Counsel must render opinions that the interest on the Series D bonds is exempt for federal income tax purposes and is not a tax preference item for the purposes of computing alternative minimum tax and 2) AMBAC Indemnity Corporation must still have an AAA rating from at least one Nationally Recognized Securities Rating Organization (NRSRO) at the time they issue their insurance policy on the bonds. The Fund has not recorded this commitment as of June 30, 1995, due to the uncertainties relating to the aforementioned terms and conditions with respect to this bond issuance; however, the Fund has segregated sufficient investment securities to cover the potential commitment. Note 4. Bank Borrowings: The Fund may borrow up to 5% of its total assets from a bank to purchase portfolio securities, or for temporary and emergency purposes. The Fund has entered into an agreement which enables it to participate with other funds managed by RCA, L.P. or an affiliate of RCA, L.P., in an unsecured line of credit with a bank which permits borrowings up to $70 million, collectively. Interest is charged to each fund, based on its borrowings, at a rate equal to the New York Interbank Offer Rate (NIBOR) plus .75%. Borrowings are payable on demand. 23 The Fund had borrowings of $5,530,000 outstanding at June 30, 1995. For the six months ended June 30, 1995, the average monthly loan balance was $7,105,574 at a weighted average interest rate of 8.60%. The maximum amount of borrowings outstanding at any month-end was $24,365,500. Note 5. Shares of Beneficial Interest: The Agreement and Declaration of Trust permits the Fund to issue an unlimited number of shares of beneficial interest, par value $.01 per share. Transactions in Fund shares were as follows: Six months ended June 30, 1995 Year ended (Unaudited) December 31, 1994 ---------------- ----------------- Shares sold ................... 8,562,920 26,972,429 Shares issued on reinvestment of distributions ............. 1,934,147 3,569,917 Shares repurchased ............ (6,006,700) (15,115,012) ---------- ----------- Net increase in shares outstanding .................. 4,490,367 15,427,334 Shares outstanding, beginning of period .................... 109,859,283 94,431,949 ----------- ---------- Shares outstanding, end of period .................... 114,349,650 109,859,283 =========== =========== 24 Rochester Fund Municipals Financial Highlights (For a share outstanding throughout each period)
Six mos. ended Year ended December 31, June 30, 1995 -------------------------------------------------------------- (Unaudited) 1994 1993 1992 1991 1990 -------------- ---------- ---------- -------- -------- -------- Net asset value, beginning of period $ 16.31 $ 19.00 $ 17.65 $ 17.01 $ 16.24 $ 16.29 ---------- ---------- ---------- -------- -------- -------- Income from investment operations: Net investment income 0.55 1.13 1.17 1.20 1.20 1.20 Net realized and unrealized gain (loss) on investments 1.29 (2.68) 1.35 0.64 0.81 (0.05) ---------- ---------- ---------- -------- -------- -------- Total from investment operations 1.84 (1.55) 2.52 1.84 2.01 1.15 ---------- ---------- ---------- -------- -------- -------- Less distributions to shareholders from: Net investment income (0.55) (1.13) (1.17) (1.20) (1.20) (1.20) Undistributed net investment income - prior year -- (0.01) -- -- -- -- Capital gains -- -- -- -- (0.04) -- ---------- ---------- ---------- -------- -------- -------- Total distributions (0.55) (1.14) (1.17) (1.20) (1.24) (1.20) ---------- ---------- ---------- -------- -------- -------- Net asset value, end of period $ 17.60 $ 16.31 $ 19.00 $ 17.65 $ 17.01 $ 16.24 ========== ========== ========== ======== ======== ======== Total return (excludes sales load) 11.36% (8.35%) 14.60% 11.19% 12.79% 7.28% Ratios/supplemental data: Net assets, end of period (000 omitted) $2,012,585 $1,791,299 $1,794,096 $997,030 $497,440 $260,553 Ratio of total expenses to average net assets 0.81%** 0.84% 0.75% 0.84% 0.87% 0.88% Ratio of total expenses (excluding interest) to average net assets* 0.78%** 0.73% 0.64% 0.70% 0.74% 0.72% Ratio of net investment income to average net assets 6.43%** 6.43% 6.21% 6.79% 7.12% 7.21% Portfolio turnover rate 15.32%** 34.39% 18.27% 29.99% 48.54% 51.63%
------------------------------------------------------------------------------- * During the periods shown above, the Fund's interest expense was substantially offset by the incremental interest income generated on bonds purchased with borrowed funds. ** Annualized. Per share information has been determined on the basis of the weighted average number of shares outstanding during the period. 25 ------------------------------------------------------------------------------ Rochester Fund Municipals 350 Linden Oaks Rochester, New York 14625-2807 (716) 383-1300 Independent Accountants Price Waterhouse, LLP Rochester, New York Investment Advisor Rochester Capital Advisors, L.P. 350 Linden Oaks Rochester, New York 14625-2807 Distributor Rochester Fund Distributors, Inc. 350 Linden Oaks Rochester, New York 14625-2807 Custodian Investors Bank and Trust Company Boston, Massachusetts Shareholder Services Agent Rochester Fund Services, Inc. 350 Linden Oaks Rochester, New York 14625-2807 (716) 383-1966 Trustees Robert E. Brown, Elton J. Burgett, Joseph A. Burnett, John Cannon, Angelo A. Costanza, Ronald H. Fielding, Dr. Marvin J. Hoffman, Michael S. Rosen, and Eric W. Zaenglein.