-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BndGqahkE13d5BraccxAprPnG1ZjpkeSJpftd4TnRtJmbZkwkbAPz3A20OUYHLsD KQFy/Etzy2Qe3+oJn5AjQA== 0000950110-97-001349.txt : 19970912 0000950110-97-001349.hdr.sgml : 19970912 ACCESSION NUMBER: 0000950110-97-001349 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970910 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROCHESTER FUND MUNICIPALS CENTRAL INDEX KEY: 0000093621 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-GROCERY STORES [5411] IRS NUMBER: 160473255 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03614 FILM NUMBER: 97678292 BUSINESS ADDRESS: STREET 1: 350 LINDEN OAKS CITY: ROCHESTER STATE: NY ZIP: 14625-2807 BUSINESS PHONE: 7163838700 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 Tax-Free Income for New York Investors Semi-Annual Report June 30, 1997 [GRAPHIC OMITTED] MAP OppenheimerFunds, Inc. Investment Adviser [LOGO]OPPENHEIMERFUNDS THE RIGHT WAY TO INVEST [LOGO]OPPENHEIMERFUNDS THE RIGHT WAY TO INVEST OppenheimerFunds Distributor, Inc. ------------------- Rochester Division | BULK RATE | 350 Linden Oaks | U.S. Postage | Rochester, NY 14625-2807 | Rochester, N.Y. | | | | Permit No. 491 | | | ------------------- RS0365.001.0897 August 29, 1997 [LOGO] OppenheimerFunds [LOGO] The Rochester Funds A Division of OppenheimerFunds, Inc. 350 Linden Oaks Rochester, NY 14625 716 383 1300 July 1, 1997 Dear Fellow Shareholder, We are extremely pleased to provide the most recent management report for shareholders of Rochester Fund Municipals. Class A Shares of the Fund not only continued to provide an attractive level of tax-free income for the first six months of the year, but they also earned THE TOP SPOT AMONG NEW YORK MUNICIPAL DEBT FUNDS FOR THE FIVE AND TEN YEAR PERIOD ending 6/30/97 as ranked by Lipper Analytical Services, Inc. (based on total return)! Class A Shares of Rochester Fund Municipals were also ranked #3 for the 1 year period ended 6/30/97. (Lipper calculations do not include sales charges, which, if included, would affect results. For ten years, there were 24 New York Municipal Debt Funds ranked, for five years there were 43 funds, and for one year there were 90 funds.) The Fund's Class A Shares have provided average annual total returns for the 10-year, 5-year, and 1-year periods ended 6/30/97 of 8.37%, 6.39% and 4.62%, respectively, assuming payment of the maximum initial sales charge of 4.75%.(1) The dividend yield of Class A Shares of the Fund is 5.8%. Based on a combined federal and state combined tax bracket of approximately 38%, that is equivalent to a taxable investment yielding more than 9.4%! The Fund's 30-day standardized yield is 5.38% as of 6/30/97, and its tax equivalent yield at the same income and tax bracket is 8.7%.(2) On March 16, 1997, Rochester Fund Municipals redesignated as "Class A Shares" all of its shares which had been outstanding prior to that date. Also on that date, additional classes of shares became available for purchase (Class B and Class C).(3) These different classes of shares share the same portfolio, but have varying expenses. From a management perspective, we have maintained our investment strategy of buying municipal bond issues that we believe offer a strong potential for investment return to shareholders. We continue to believe that our philosophies and strategies can offer long term investors an opportunity to achieve their financial objectives. Our strategies include: 2 * A strong commitment to research. * A diverse portfolio with over 700 different bonds as of June 30, 1997. * A willingness to include select, unrated bonds which have passed our stringent credit requirements.(4) * Dedication and continuous monitoring of portfolio holdings. Over the long term, Class A Shares of Rochester Fund Municipals have been able to help many shareholders meet their investment goals. As you know, past performance is not predictive of future results, the investment return and principal value of your shares will fluctuate with market conditions and investors may have a gain or loss when shares are redeemed. But we will continue to use our strong credit research capabilities in the selection of municipal securities which we believe will benefit the Fund and its shareholders. Sincerely, /s/ RONALD H. FIELDING ------------------------------ Ronald H. Fielding 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) For the periods ended 6/30/97, without deducting the maximum initial sales charge of 4.75%, Class A total returns showing results of hypothetical investments made on 6/30/87, 6/30/92, and 6/30/96, are 8.90%, 7.43% and 9.84%, respectively. (2) Standardized yield is net investment income calculated on a yield-to-maturity basis for the 30-day period ended 6/30/97, divided by the maximum offering price at the end of the period, compounded semiannually and then annualized. Falling net asset values may artificially raise yields. Dividend yield is based on an annualization of the prior monthly distribution and the maximum offering price on 6/30/97. A portion of the Fund's distributions in the future may be subject to federal, state or local income taxes. For investors subject to alternative minimum tax, some of the Fund's distributions may increase that tax. Also, while the Fund currently has a capital loss carry forward, future net realized capital gain distributions, if any, are taxable as capital gains. (3) Performance data is not available for Class B and Class C Shares at this time (inception date: 3/16/97). (4) Small issues may be less liquid than equivalent quality larger issues. Unrated bonds may involve greater credit risk than rated bonds. 3 FINANCIALS CONTENTS STATEMENT OF INVESTMENTS 5 STATEMENT OF ASSETS AND LIABILITIES 24 STATEMENT OF OPERATIONS 25 STATEMENTS OF CHANGES IN NET ASSETS 25 FINANCIAL HIGHLIGHTS 26 NOTES TO FINANCIAL STATEMENTS 28 4 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ HOSPITAL/HEALTHCARE -- 13.7% $344,760,080 Albany IDA (Albany Medical Center) 8.250% 08/01/04 $ 2,825 $ 3,012,947 Beacon IDA (Craig House) 9.000 07/01/11 215 219,838 Bethany Retirement Home 7.450 02/01/24 1,000 1,123,880 Cayuga County COP (Auburn Hospital) 6.000 01/01/21 8,500 8,615,685 Clifton Springs Hospital & Clinic 8.000 01/01/20 3,870 4,117,409 Erie IDA (Mercy Hospital) 6.250 06/01/10 1,355 1,376,450 Groton Community Health 7.450 07/15/21 2,075 2,354,357 Lyons Community Health 6.800 09/01/24 5,350 5,645,588 Monroe IDA (Genesee Hospital) 7.000 11/01/18 14,565 14,743,858 Newark/Wayne Community Hospital 5.875 01/15/33 4,750 4,767,053 NYC Health & Hospital LEVRRS 6.712(f) 02/15/11 26,500 26,665,625 NYS Dorm (Cornwall Hospital) 8.750 07/01/07 675 674,966 NYS Dorm (Department of Health) 6.625 07/01/24 250 270,825 NYS Dorm (Department of Health) 7.250 07/01/11 3,750 4,103,738 NYS Dorm (Department of Health) 7.350 08/01/29 95 99,817 NYS Dorm (Episcopal Health Services) 7.550 08/01/29 95 101,572 NYS Dorm (German Masonic Home) 6.000 08/01/36 2,500 2,531,150 NYS Dorm (Grace Manor Health Care) 6.150 07/01/18 1,000 1,030,220 NYS Dorm (Hebrew Hospital) 5.900 08/01/36 10,285 10,321,717 NYS Dorm (Insured Mtg. Nursing) 6.125 02/01/36 4,200 4,318,860 NYS Dorm (KMH Homes) 6.950 08/01/31 25 26,072 NYS Dorm (L.I. Medical Center) 7.750 08/15/27 25 26,039 NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 1,085 1,092,063 NYS Dorm (Menorah Campus) 6.100 02/01/37 7,400 7,600,688 NYS Dorm (Menorah Campus) 7.300 08/01/16 20 21,929 NYS Dorm (Methodist Hospital) 6.050 02/01/34 7,230 7,450,443 NYS Dorm (Montefiore Hospital) 8.625 07/01/10 90 91,980 NYS Dorm (Presbyterian Hospital) 6.500 08/01/34 2,200 2,327,336 NYS Dorm (RGH) RITES (b) 6.814(f)(c) 08/01/33 12,750 12,208,125 NYS Dorm (St. Vincent Hospital) 7.400 08/01/30 5 5,442 NYS HFA (H&N) 6.875 11/01/11 5 5,104 NYS HFA (H&N) 6.875 11/01/10 9 9,225 NYS HFA (H&N) 7.000 11/01/17 500 510,285 NYS HFA (H&N) 8.000 11/01/08 500 556,205 NYS Medcare (BLH) 7.100 02/15/27 5,630 5,749,300 NYS Medcare (BLH) 7.100 02/15/27 2,355 2,408,364 NYS Medcare (Brookdale Hospital) 6.850 02/15/17 4,600 4,945,000 NYS Medcare (Downtown Hospital) 6.800 02/15/20 2,240 2,399,846 NYS Medcare (H&N) 6.200 02/15/23 95 98,197 NYS Medcare (H&N) 6.375 08/15/29 60 62,197 NYS Medcare (H&N) 6.375 08/15/33 1,000 1,040,250 NYS Medcare (H&N) 6.500 02/15/34 2,235 2,360,763 NYS Medcare (H&N) 6.600 02/15/31 250 265,243
5 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYS Medcare (H&N) 6.650% 08/15/32 $ 12,820 $ 13,512,408 NYS Medcare (H&N) 7.250 02/15/24 50 52,394 NYS Medcare (H&N) 7.250 02/15/12 6,820 6,980,338 NYS Medcare (H&N) 7.400 11/01/16 4,910 5,021,113 NYS Medcare (H&N) 7.625 02/15/23 1,900 1,973,910 NYS Medcare (H&N) 7.700 02/15/18 25 26,013 NYS Medcare (H&N) 7.700 02/15/18 25 26,013 NYS Medcare (H&N) 7.875 08/15/15 485 515,502 NYS Medcare (H&N) 8.000 02/15/27 12,075 12,369,751 NYS Medcare (H&N) 9.000 02/15/26 2,120 2,133,314 NYS Medcare (H&N) 9.375 11/01/16 4,115 4,296,924 NYS Medcare (H&N) 10.000 11/01/06 3,350 3,542,625 NYS Medcare (Insured Mtg. Nursing) 6.375 08/15/24 2,000 2,091,240 NYS Medcare (Insured Mtg. Nursing) 6.450 08/15/34 4,000 4,203,560 NYS Medcare (Insured Mtg. Nursing) 6.500 11/01/15 70 72,587 NYS Medcare (Insured Mtg. Nursing) 6.900 08/15/34 15 16,501 NYS Medcare (Insured Mtg. Nursing) 9.500 01/15/24 2,275 2,344,388 NYS Medcare (Kingston Hospital) 8.875 11/15/17 7,745 7,854,514 NYS Medcare (Mental Health) 0.000 08/15/18 100 20,600 NYS Medcare (Mental Health) 0.000 08/15/18 45 9,270 NYS Medcare (Mental Health) 6.500 02/15/19 190 198,487 NYS Medcare (Mental Health) 7.300 02/15/21 5 5,514 NYS Medcare (Mental Health) 7.500 02/15/21 305 336,946 NYS Medcare (Mental Health) 7.500 02/15/21 505 567,059 NYS Medcare (Mental Health) 7.625 08/15/17 250 275,340 NYS Medcare (Mental Health) 7.625 08/15/17 545 619,382 NYS Medcare (Mental Health) 7.750 08/15/11 60 67,139 NYS Medcare (Mental Health) 7.750 08/15/11 35 39,016 NYS Medcare (Mental Health) 7.875 08/15/15 220 232,863 NYS Medcare (N. General Hospital) 7.150 02/15/01 10 10,483 NYS Medcare (N. General Hospital) 7.350 08/15/09 4,645 4,882,963 NYS Medcare (N. General Hospital) 7.400 02/15/19 2,015 2,115,246 NYS Medcare (N. General Hospital) 10.250 01/01/24 1,465 1,523,600 NYS Medcare (St. Charles Hospital) 6.375 08/15/34 1,350 1,411,331 NYS Medcare (St. Charles Hospital) 6.375 02/15/35 1,650 1,724,960 NYS Medcare (St. Luke) IVRC(b) 6.986(f) 02/15/29 22,000 21,670,000 NYS Medcare (St. Luke) RITES(b) 6.764(f) 02/15/29 12,500 11,984,375 NYS Medcare (St. Luke) RITES(b) 6.814(f) 02/15/29 10,000 9,587,500 NYS Medcare (St. Luke) RITES(b) 6.814(f) 02/15/29 5,750 5,512,813 NYS Medcare (St. Luke) RITES(b) 6.814(f) 02/15/29 8,400 8,053,500 NYS Medcare (Vassar Brothers) 8.250 11/01/13 4,590 4,722,284 NYS Medcare (Wyckoff Heights Medical Center) 7.350 08/15/11 50 54,183 NYS Medcare (Wyckoff Heights Medical Center) 7.400 08/15/21 5,255 5,757,904 Oneida Healthcare Corp. 7.100 08/01/11 10 10,808 Oneida Healthcare Corp. 7.200 08/01/31 130 141,938
6 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Onondaga IDA (CGH) 6.625% 01/01/18 $ 7,820 $ 8,082,752 Onondaga IDA (Crouse Irving Hospital) 7.800 01/01/03 220 239,325 Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,250 5,452,703 Puerto Rico TEMEC (Mennonite Hospital) 6.500 07/01/26 3,000 3,112,440 Rensselaer Municipal Leasing Corp. 6.900 06/01/24 15,000 15,787,800 Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/18 3,770 4,247,734 Tompkins Healthcare 10.800 02/01/07 140 191,220 Tompkins Healthcare 10.800 02/01/28 25 32,854 UFA Devel. Corp. (Loretto Utica) 5.950 07/01/35 4,870 4,876,380 Valley Health Devel. 7.850 08/01/35 20 22,216 Valley Health Devel. 11.300 02/01/23 175 210,194 Westchester IDA (Beth Abraham Hospital) 8.375 12/01/25 1,870 1,949,251 Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/03 1,125 1,168,133 Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,270 3,462,832 - -------------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATION -- 12.9% $325,736,670 Lowville GO 7.200 09/15/13 100 114,799 Lowville GO 7.200 09/15/12 100 114,667 Lowville GO 7.200 09/15/07 75 83,978 Lowville GO 7.200 09/15/05 100 110,126 Lowville GO 7.200 09/15/14 100 115,101 Newburgh GO 7.100 09/15/08 185 184,887 Newburgh GO 7.100 09/15/07 185 184,893 Newburgh GO 7.150 09/15/10 150 149,901 Newburgh GO 7.150 09/15/09 180 180,612 Newburgh GO 7.200 09/15/11 155 154,895 Newburgh GO 7.200 09/15/12 155 154,608 Newburgh GO 7.250 09/15/14 155 154,735 Newburgh GO 7.250 09/15/13 160 160,035 NYC GO 0.000 11/15/11 4,990 2,215,161 NYC GO 0.000 08/01/14 500 354,595 NYC GO 0.000 10/01/12 40 16,226 NYC GO 0.000 05/15/14 1,690 1,240,578 NYC GO 0.000 05/15/12 200 85,938 NYC GO 0.000 05/15/11 270 123,792 NYC GO 0.000 08/15/16 70 58,147 NYC GO 6.000 02/01/25 650 650,650 NYC GO 6.000 02/01/11 6,000 6,160,440 NYC GO 6.000 10/01/26 8,170 8,200,883 NYC GO 6.125 08/01/25 8,735 8,913,980 NYC GO 6.125 02/01/25 18,500 18,845,025 NYC GO 6.250 04/15/27 12,200 12,604,918 NYC GO 6.500 08/01/15 2,000 2,111,760 NYC GO 6.500 08/01/14 500 527,940 NYC GO 6.600 02/15/10 2,000 2,123,560
7 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYC GO 6.625% 02/15/25 $ 15,580 $ 16,487,068 NYC GO 6.625 08/01/25 2,000 2,121,100 NYC GO 7.000 08/01/97(p) 5 5,086 NYC GO 7.000 02/01/02(p) 400 446,688 NYC GO 7.000 10/01/12 625 676,475 NYC GO 7.000 02/01/22 4,600 4,944,356 NYC GO 7.000 02/01/15 15 15,168 NYC GO 7.000 02/01/20 250 268,715 NYC GO 7.000 02/01/10 15 15,236 NYC GO 7.100 02/01/11 1,325 1,429,503 NYC GO 7.100 02/01/10 4,000 4,315,480 NYC GO 7.100 02/01/02(p) 440 493,165 NYC GO 7.100 02/01/09 1,000 1,078,870 NYC GO 7.200 02/01/15 2,800 3,032,092 NYC GO 7.200 02/01/14 2,390 2,588,107 NYC GO 7.200 02/01/02(p) 1,610 1,811,137 NYC GO 7.250 08/15/24 9,815 10,524,428 NYC GO 7.250 08/15/01(p) 4,005 4,442,987 NYC GO 7.400 02/01/02 330 363,188 NYC GO 7.500 08/01/19 160 178,822 NYC GO 7.500 08/01/02(p) 915 1,054,181 NYC GO 7.500 08/01/20 645 720,878 NYC GO 7.500 08/01/02(p) 6,855 7,897,714 NYC GO 7.500 08/01/02(p) 1,705 1,964,348 NYC GO 7.500 02/01/16 240 265,147 NYC GO 7.500 08/15/20 6,180 7,279,855 NYC GO 7.500 08/01/21 85 94,313 NYC GO 7.500 02/01/02(p) 1,380 1,573,103 NYC GO 7.500 02/01/03 2,000 2,214,320 NYC GO 7.500 02/01/02(p) 2,760 3,146,207 NYC GO 7.500 02/01/18 120 133,040 NYC GO 7.625 02/01/13 310 344,447 NYC GO 7.625 02/01/02(p) 3,535 4,047,822 NYC GO 7.625 02/01/14 20 21,610 NYC GO 7.625 02/01/02(p) 250 285,595 NYC GO 7.750 02/01/13 6,000 6,712,680 NYC GO 7.750 02/01/10 1,500 1,681,440 NYC GO 7.750 08/15/12 60 66,680 NYC GO 7.750 08/15/01(p) 940 1,072,192 NYC GO 7.750 08/15/13 60 66,680 NYC GO 7.750 08/15/01(p) 90 102,657 NYC GO 7.750 08/15/17 110 121,857 NYC GO 7.750 08/15/01(p) 20 22,250 NYC GO 8.000 08/15/01(p) 245 281,444 NYC GO 8.000 08/01/18 45 50,138
8 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYC GO 8.000% 08/15/20 $ 10 $ 11,150 NYC GO 8.000 08/15/21 5 5,575 NYC GO 8.250 08/01/12 5 5,616 NYC GO 8.250 08/01/13 30 33,698 NYC GO 8.250 11/15/20 20 22,602 NYC GO 8.250 08/01/14 35 39,314 NYC GO 8.250 11/15/01(p) 2,760 3,217,525 NYC GO 8.250 08/01/01(p) 1,590 1,835,242 NYC GO 8.250 11/15/18 240 272,734 NYC GO 8.250 11/15/01(p) 920 1,072,508 NYC GO 8.250 11/15/15 80 90,406 NYC GO 8.500 08/01/13 30 30,750 NYC GO CARS 7.770(f) 08/12/10 16,387 18,005,216 NYC GO CARS 7.770(f) 09/01/11 8,387 9,141,830 NYC GO RIBS 6.724(f) 08/01/10 4,200 4,200,000 NYC GO RIBS 6.724(f) 08/01/09 6,200 6,262,000 NYC GO RIBS 6.822(f) 08/22/13 5,400 5,265,000 NYC GO RIBS 6.822(f) 08/01/15 3,050 2,928,000 NYC GO RIBS 7.905(f) 08/01/13 13,150 13,659,563 NYC GO RITES 7.627(f) 10/01/11 15,000 16,027,650 Puerto Rico GO RITES(b) 7.538(f) 07/01/22 1,600 1,686,000 Puerto Rico GO YCN 7.888(f) 07/01/20 40,250 41,558,125 Puerto Rico GO YCN(b) 7.095(f) 07/01/15 1,000 1,052,500 Suffolk GO 6.375 11/01/16 725 739,790 Suffolk GO (Sewer) 6.750 08/01/10 15 15,300 Utica GO 5.900 12/01/02 100 100,985 Utica GO 6.000 01/15/06 580 530,949 Utica GO 6.250 01/15/07 560 518,330 V. I. Public Finance Authority 7.125 10/01/04 1,135 1,234,347 V. I. Public Finance Authority 7.250 10/01/18 28,750 31,294,663 V. I. Public Finance Authority 7.375 10/01/10 1,735 1,904,076 V. I. (GO/HUGO) 7.750 10/01/06 388 420,126 - -------------------------------------------------------------------------------------------------------------------------- HOUSING, MULTI-FAMILY -- 12.6% $318,329,700 Albany Hsg. Authority 0.000 10/01/12(p) 560 148,853 Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,715 1,748,597 Batavia Hsg. Authority (Washington Towers) 6.500 01/01/23 515 530,955 Battery Park City Authority 5.800 11/01/22 1,050 1,043,700 Battery Park City Authority 10.000 06/01/23 700 735,000 Bayshore HDC 7.500 02/01/23 1,465 1,561,514 Bleeker Terrace HDC 8.100 07/01/01 35 35,700 Bleeker Terrace HDC 8.350 07/01/04 45 45,900 Bleeker Terrace HDC 8.750 07/01/07 900 904,356 East Rochester Hsg. Authority (St. John's Meadows) 5.950 08/01/27 4,095 4,041,110 Elmira HDC 7.500 08/01/07 25 26,250
9 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Guam Economic Devel. 9.375% 11/01/18 $ 3,010 $ 3,089,103 Guam Economic Devel. 9.500 11/01/18 2,505 2,570,831 Hamilton Elderly Hsg. 11.250 01/01/15 695 729,952 Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 4,665 5,087,089 Mechanicsville HDC 6.900 08/01/22 2,500 2,625,725 Monroe HDC 7.000 08/01/21 290 300,979 New Hartford HDC 7.375 01/01/24 20 21,574 New Hartford Sunset Wood Project 5.950 08/01/27 1,520 1,525,107 North Tonawanda HDC 6.800 12/15/07 585 633,239 North Tonawanda HDC 7.375 12/15/21 3,295 3,738,276 NYC HDC (Albert Einstein) 6.500 12/15/17 327 331,376 NYC HDC (Amsterdam) 6.500 08/15/18 919 919,182 NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,531 1,565,275 NYC HDC (Barclay Avenue) 6.450 04/01/17 1,045 1,075,901 NYC HDC (Barclay Avenue) 6.600 04/01/33 4,055 4,174,014 NYC HDC (Boulevard) 6.500 08/15/17 2,857 2,891,967 NYC HDC (Bridgeview) 6.500 12/15/17 492 497,922 NYC HDC (Cadman Plaza) 6.500 11/15/18 1,318 1,334,744 NYC HDC (Cadman Plaza) 7.000 12/15/18 516 529,406 NYC HDC (Candia) 6.500 06/15/18 194 196,248 NYC HDC (Clinton) 6.500 07/15/17 3,719 3,765,007 NYC HDC (Contello III) 7.000 12/15/18 317 325,106 NYC HDC (Cooper Gram) 6.500 08/15/17 1,541 1,559,551 NYC HDC (Court Plaza) 6.500 08/15/17 1,176 1,190,792 NYC HDC (Crown Gardens) 7.250 01/15/19 1,738 1,815,931 NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,582 3,678,527 NYC HDC (Essex) 6.500 07/15/18 85 86,352 NYC HDC (Forest Park) 6.500 12/15/17 527 533,616 NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,707 1,751,850 NYC HDC (Heywood) 6.500 10/15/17 377 381,418 NYC HDC (Hudsonview) 6.500 09/15/17 4,247 4,299,230 NYC HDC (Janel) 6.500 09/15/17 1,201 1,215,575 NYC HDC (Kings Arms) 6.500 11/15/18 238 240,948 NYC HDC (Kingsbridge) 6.500 08/15/17 419 424,423 NYC HDC (Leader) 6.500 03/15/18 1,281 1,296,615 NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,777 1,855,940 NYC HDC (Middagh) 6.500 01/15/18 215 217,593 NYC HDC (Montefiore) 6.500 10/15/17 2,806 2,840,525 NYC HDC (Multi-Family) 5.850 05/01/26 1,650 1,651,898 NYC HDC (Multi-Family) 6.600 04/01/30 38,880 40,721,357 NYC HDC (Multi-Family) 7.300 06/01/10 30 32,734 NYC HDC (Multi-Family) 7.350 06/01/19 1,145 1,218,429 NYC HDC (Multi-Family) 8.250 01/01/11 1,360 1,394,000 NYC HDC (New Amsterdam) 6.500 08/15/18 899 910,376 NYC HDC (Residential Charter) 7.375 04/01/17 3,490 3,591,629
10 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYC HDC (Riverbend) 6.500% 11/15/18 $ 1,121 $ 1,134,851 NYC HDC (Riverside Park) 7.250 11/15/18 6,839 7,145,310 NYC HDC (RNA House) 7.000 12/15/18 490 503,166 NYC HDC (Robert Fulton) 6.500 12/15/17 707 716,188 NYC HDC (Rosalie Manning) 7.034 11/15/18 256 263,293 NYC HDC (Scott Tower) 7.000 12/15/18 681 699,257 NYC HDC (Seaview) 6.500 01/15/18 933 944,988 NYC HDC (Sky View) 6.500 11/15/18 1,739 1,760,864 NYC HDC (South Bronx) 8.100 09/01/23 3,230 3,455,971 NYC HDC (Stevenson) 6.500 05/15/18 1,770 1,792,167 NYC HDC (Stryckers Bay) 7.034 11/15/18 509 519,902 NYC HDC (St. Martin) 6.500 11/15/18 386 390,412 NYC HDC (Tivoli) 6.500 01/15/18 1,777 1,798,864 NYC HDC (Towers) 6.500 08/15/17 382 387,072 NYC HDC (Townhouse) 6.500 01/15/18 241 244,403 NYC HDC (Tri-Faith House) 7.000 01/15/19 371 380,953 NYC HDC (University) 6.500 08/15/17 1,578 1,597,396 NYC HDC (Washington Square) 7.000 01/15/19 473 485,467 NYC HDC (West Side) 6.500 11/15/18 427 431,944 NYC HDC (West Village) 6.500 11/15/13 4,770 4,871,354 NYC HDC (Westview) 6.500 10/15/17 275 278,439 NYC HDC (Woodstock Terrace) 7.034 02/15/19 631 644,572 NYC HDC, Series B 5.875 11/01/18 5,235 5,254,474 NYS HFA (Children's Rescue) 7.625 05/01/18 3,555 3,793,576 NYS HFA (Dominican Village) 6.600 08/15/27 2,200 2,299,726 NYS HFA (Fulton Manor) 6.100 11/15/25 4,205 4,333,379 NYS HFA (HELP/Bronx) 7.850 11/01/99 1,080 1,133,363 NYS HFA (HELP/Bronx) 7.850 05/01/99 1,040 1,080,914 NYS HFA (HELP/Bronx) 8.050 11/01/05 13,080 13,923,922 NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,210 1,268,225 NYS HFA (Meadow Manor) 7.750 11/01/19 5 5,105 NYS HFA (Multi-Family) 0.000 11/01/17 12,695 3,960,332 NYS HFA (Multi-Family) 0.000 11/01/15 14,590 5,147,352 NYS HFA (Multi-Family) 0.000 11/01/14 15,730 5,905,671 NYS HFA (Multi-Family) 6.100 11/15/36 1,285 1,313,450 NYS HFA (Multi-Family) 6.125 08/15/38 4,700 4,767,915 NYS HFA (Multi-Family) 6.300 08/15/26 5,000 5,138,900 NYS HFA (Multi-Family) 6.350 08/15/23 4,170 4,336,383 NYS HFA (Multi-Family) 6.400 11/15/27 1,175 1,220,120 NYS HFA (Multi-Family) 6.500 08/15/24 2,905 3,010,074 NYS HFA (Multi-Family) 6.700 08/15/25 11,980 12,456,325 NYS HFA (Multi-Family) 6.750 11/15/36 5,740 6,087,500 NYS HFA (Multi-Family) 6.950 08/15/24 2,905 3,055,973 NYS HFA (Multi-Family) 6.950 08/15/12 75 78,982 NYS HFA (Multi-Family) 7.050 08/15/24 5,350 5,658,642
11 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYS HFA (Multi-Family) 7.450% 11/01/28 $ 1,590 $ 1,671,344 NYS HFA (NonProfit) 6.400 11/01/10 5 4,900 NYS HFA (NonProfit) 6.400 11/01/13 25 24,750 NYS HFA (NonProfit) 6.600 11/01/13 20 19,960 NYS HFA (NonProfit) 6.600 11/01/10 25 25,300 NYS HFA (NonProfit) 6.600 11/01/08 20 20,300 NYS HFA (Phillips Village) 7.750 08/15/17 5,000 5,540,400 NYS HFA (Service Contract) 6.125 03/15/20 25 24,900 NYS HFA (Service Contract) 6.500 03/15/25 9,265 9,894,557 NYS HFA (Service Contract) 7.700 03/15/06 150 163,158 NYS HFA (Shorehill Hsg.) 7.500 05/01/08 1,245 1,272,178 NYS HFA, Series A 6.125 11/01/20 1,385 1,422,949 Pilgrim Village HDC 6.800 02/01/21 1,110 1,142,579 Portchester CDC (Southport) 7.300 08/01/11 60 64,542 Portchester CDC (Southport) 7.375 08/01/22 25 26,742 Puerto Rico HB&F 7.500 10/01/15 210 221,920 Puerto Rico HFA 7.300 10/01/06 10 10,478 Puerto Rico HFC 7.500 04/01/22 6,180 6,506,551 Rensselaer Hsg. Authority (Renwyck) 7.650 01/01/11 25 28,692 Riverhead HDC 8.250 08/01/10 45 47,250 Rochester Hsg. Authority (Crossroads) 7.700 01/01/17 20,890 22,542,399 Schenectady IDA (ASSC) 6.400 05/01/14 500 519,520 Schenectady IDA (ASSC) 6.450 05/01/24 2,655 2,767,705 Scotia Hsg. Authority (Holyrood House) 7.000 06/01/09 175 192,364 Sunnybrook EHC 11.250 12/01/14 3,045 3,224,655 Syracuse IDA (James Square) 0.000 08/01/25 46,385 9,599,840 Tonawanda Senior Citizens Hsg. 7.875 02/01/11 520 540,935 Tupper Lake HDC 8.125 10/01/10 75 78,750 Union Elderly Hsg. 10.000 04/01/13 2,140 2,226,670 Utica Senior Citizen Hsg. 0.000 07/01/02 25 18,754 Utica Senior Citizen Hsg. 0.000 07/01/26 3,410 416,225 V. I. HFA 8.100 12/01/18 25 26,379 Watervliet Elderly Hsg. 8.000 11/15/05 95 97,156 Watervliet Elderly Hsg. 8.000 11/15/03 100 102,269 Watervliet Elderly Hsg. 8.000 11/15/04 95 97,156 Watervliet Elderly Hsg. 8.000 11/15/07 100 102,269 Watervliet Elderly Hsg. 8.000 11/15/08 100 102,269 Watervliet Elderly Hsg. 8.000 11/15/09 100 102,269 Watervliet Elderly Hsg. 8.000 11/15/06 100 102,269 - -------------------------------------------------------------------------------------------------------------------------- RESOURCE RECOVERY -- 12.0% $304,205,611 Dutchess Res Rec (Solid Waste) 6.800 01/01/10 1,700 1,772,352 Dutchess Res Rec (Solid Waste) 7.000 01/01/10 1,805 1,908,860 Islip Res Rec 6.500 07/01/09 2,000 2,220,720 NYS Environ. (Huntington Res Rec) 7.500 10/01/12 58,860 63,277,443
12 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Onondaga Res Rec 6.875% 05/01/06 $ 27,850 $ 29,281,490 Onondaga Res Rec 7.000 05/01/15 67,385 71,629,581 Suffolk IDA (Huntington Res Rec) 5.550(w) 10/01/04 8,545 8,539,958 Suffolk IDA (Huntington Res Rec) 5.650(w) 10/01/05 9,180 9,181,561 Suffolk IDA (Huntington Res Rec) 5.750(w) 10/01/06 9,875 9,882,406 Suffolk IDA (Huntington Res Rec) 5.800(w) 10/01/07 10,615 10,595,575 Suffolk IDA (Huntington Res Rec) 5.850(w) 10/01/08 11,410 11,400,530 Suffolk IDA (Huntington Res Rec) 5.950(w) 10/01/09 12,265 12,308,418 Suffolk IDA (Huntington Res Rec) 6.000(w) 10/01/10 13,190 13,249,619 Suffolk IDA (Huntington Res Rec) 6.150(w) 10/01/11 14,170 14,358,461 Suffolk IDA (Huntington Res Rec) 6.250(w) 10/01/12 17,155 17,474,083 Ulster County Res Rec 6.000 03/01/14 1,250 1,245,188 Warren/Washington IDA (Res Rec) 8.000 12/15/12 8,730 8,509,568 Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,535 8,471,500 Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,965 8,898,300 - -------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 8.8% $220,964,841 American Samoa Power Authority 6.800 09/01/00 400 419,192 American Samoa Power Authority 6.850 09/01/01 400 423,220 American Samoa Power Authority 6.900 09/01/02 400 426,672 American Samoa Power Authority 6.950 09/01/03 500 536,800 American Samoa Power Authority 7.000 09/01/04 500 539,900 American Samoa Power Authority 7.100 09/01/01 800 853,376 American Samoa Power Authority 7.200 09/01/02 800 863,520 Guam Power Authority 6.750 10/01/24 4,780 5,060,729 NYS ERDA (Con Ed) 6.375 12/01/27 290 306,243 NYS ERDA (Con Ed) 6.375 12/01/27 11,000 11,358,600 NYS ERDA (Con Ed) 6.750 01/15/27 115 121,516 NYS ERDA (Con Ed) 7.125 03/15/22 3,250 3,322,898 NYS ERDA (Con Ed) 7.125 03/15/22 1,255 1,281,644 NYS ERDA (Con Ed) 7.250 11/01/24 15,840 16,450,790 NYS ERDA (Con Ed) 7.375 07/01/24 27,730 28,668,383 NYS ERDA (Con Ed) 7.500 07/01/25 1,615 1,708,622 NYS ERDA (Con Ed) 7.500 01/01/26 4,900 5,232,661 NYS ERDA (Con Ed) 7.500 11/15/21 2,580 2,637,431 NYS ERDA (Con Ed) 7.750 01/01/24 6,010 6,186,213 NYS ERDA (LILCO) 6.900 08/01/22 25 26,290 NYS ERDA (LILCO) 7.150 02/01/22 15,250 16,251,925 NYS ERDA (LILCO) 7.150 02/01/22 10,925 11,642,773 NYS ERDA (LILCO) 7.150 09/01/19 14,810 15,767,911 NYS ERDA (LILCO) 7.150 06/01/20 15,200 16,198,640 NYS ERDA (LILCO) 7.150 09/01/19 16,515 17,600,036 NYS ERDA (LILCO) 7.150 12/01/20 12,225 13,028,183 NYS ERDA (NIMO) 8.875 11/01/25 18,140 18,611,640 NYS ERDA (RG&E) 8.375 12/01/28 120 126,953
13 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Puerto Rico Electric LEVRRS 8.084%(f) 07/01/23 $ 17,800 $ 18,690,000 V. I. Water & Power Authority 7.400 07/01/11 6,215 6,622,083 - -------------------------------------------------------------------------------------------------------------------------- HOUSING, SINGLE FAMILY -- 7.8% $197,444,548 NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/14 30 6,088 NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/98 95 85,446 NYS (SONYMA) Mortgage, 2nd Series 0.000 10/01/14 13,225 2,624,634 NYS (SONYMA) Mortgage, 6th Series 9.375 04/01/10 1,120 1,158,830 NYS (SONYMA) Mortgage, 7th Series GAINS 0.000(c) 10/01/14 1,255 1,212,694 NYS (SONYMA) Mortgage, 8th Series A 6.875 04/01/17 315 321,851 NYS (SONYMA) Mortgage, 8th Series C 8.300 10/01/06 35 35,775 NYS (SONYMA) Mortgage, 8th Series C 8.400 10/01/17 170 173,218 NYS (SONYMA) Mortgage, 8th Series D 8.200 10/01/06 100 103,189 NYS (SONYMA) Mortgage, 8th Series E 8.100 10/01/17 80 82,590 NYS (SONYMA) Mortgage, 8th Series F 8.000 10/01/17 15 15,513 NYS (SONYMA) Mortgage, 9th Series A 7.300 04/01/17 280 285,998 NYS (SONYMA) Mortgage, 9th Series B 8.300 10/01/17 65 66,368 NYS (SONYMA) Mortgage, 9th Series E 8.375 04/01/18 10 10,370 NYS (SONYMA) Mortgage, Series 12 CAB 0.000(c) 04/01/17 790 793,018 NYS (SONYMA) Mortgage, Series 2 0.000 10/01/14 265 52,592 NYS (SONYMA) Mortgage, Series 27 6.450 04/01/04 25 26,987 NYS (SONYMA) Mortgage, Series 28 6.650 04/01/22 10,000 10,338,500 NYS (SONYMA) Mortgage, Series 28 7.050 10/01/23 8,760 9,285,337 NYS (SONYMA) Mortgage, Series 30-A 4.375 10/01/23 15 12,750 NYS (SONYMA) Mortgage, Series 30-B 6.650 10/01/25 16,005 16,835,980 NYS (SONYMA) Mortgage, Series 36-A 6.625 04/01/25 11,500 12,153,660 NYS (SONYMA) Mortgage, Series 38 RITES (b) 7.565(f) 04/01/25 13,940 14,427,900 NYS (SONYMA) Mortgage, Series 40-A 6.700 04/01/25 7,060 7,446,888 NYS (SONYMA) Mortgage, Series 40-B 6.400 10/01/12 35 36,400 NYS (SONYMA) Mortgage, Series 40-B 6.600 04/01/25 5,745 6,086,483 NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 100 106,628 NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 13,600 14,461,424 NYS (SONYMA) Mortgage, Series 44 7.500 04/01/26 11,990 12,960,830 NYS (SONYMA) Mortgage, Series 46 6.500 04/01/13 100 106,292 NYS (SONYMA) Mortgage, Series 46 6.600 10/01/19 65 68,892 NYS (SONYMA) Mortgage, Series 46 6.650 10/01/25 24,655 26,290,120 NYS (SONYMA) Mortgage, Series 50 6.625 04/01/25 7,500 8,006,400 NYS (SONYMA) Mortgage, Series 52 6.100 04/01/26 900 928,170 NYS (SONYMA) Mortgage, Series 58 6.400 04/01/27 6,200 6,503,614 NYS (SONYMA) Mortgage, Series 63 6.125 04/01/27 9,750 10,016,273 NYS (SONYMA) Mortgage, Series 65 5.850 10/01/28 10,205 10,174,895 NYS (SONYMA) Mortgage, Series BB-2 7.950 10/01/15 150 153,893 NYS (SONYMA) Mortgage, Series EE-1 8.000 10/01/10 40 41,433 NYS (SONYMA) Mortgage, Series EE-2 7.450 10/01/10 95 100,306 NYS (SONYMA) Mortgage, Series EE-2 7.500 04/01/16 40 42,014
14 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYS (SONYMA) Mortgage, Series EE-3 7.700% 10/01/10 $ 270 $ 285,814 NYS (SONYMA) Mortgage, Series EE-3 7.750 04/01/16 15 16,035 NYS (SONYMA) Mortgage, Series EE-4 7.750 10/01/10 90 97,085 NYS (SONYMA) Mortgage, Series HH-2 7.600 10/01/21 5 5,150 NYS (SONYMA) Mortgage, Series HH-2 7.700 10/01/09 400 416,196 NYS (SONYMA) Mortgage, Series HH-2 7.850 04/01/22 40 42,605 NYS (SONYMA) Mortgage, Series HH-3 7.875 10/01/09 275 291,544 NYS (SONYMA) Mortgage, Series HH-3 7.950 04/01/22 490 515,500 NYS (SONYMA) Mortgage, Series HH-4 8.050 04/01/22 65 67,092 NYS (SONYMA) Mortgage, Series II 0.000 10/01/07 100 46,963 NYS (SONYMA) Mortgage, Series II 0.000 10/01/08 120 52,129 NYS (SONYMA) Mortgage, Series II 0.000 04/01/06 90 47,711 NYS (SONYMA) Mortgage, Series II 0.000 10/01/09 180 72,329 NYS (SONYMA) Mortgage, Series II 0.000 04/01/08 170 76,786 NYS (SONYMA) Mortgage, Series II 0.000 04/01/05 100 57,284 NYS (SONYMA) Mortgage, Series JJ 7.500 10/01/17 445 469,671 NYS (SONYMA) Mortgage, Series KK 7.650 04/01/19 115 122,112 NYS (SONYMA) Mortgage, Series KK 7.800 10/01/20 255 268,525 NYS (SONYMA) Mortgage, Series MM-1 7.500 04/01/13 70 73,820 NYS (SONYMA) Mortgage, Series MM-1 7.750 10/01/05 25 26,649 NYS (SONYMA) Mortgage, Series MM-2 7.700 04/01/05 100 109,610 NYS (SONYMA) Mortgage, Series NN 7.550 10/01/17 60 63,913 NYS (SONYMA) Mortgage, Series RR 7.700 10/01/10 105 113,111 NYS (SONYMA) Mortgage, Series RR 7.750 10/01/17 80 86,174 NYS (SONYMA) Mortgage, Series SS 7.500 10/01/19 185 190,866 NYS (SONYMA) Mortgage, Series TT 6.950 10/01/02 5 5,474 NYS (SONYMA) Mortgage, Series UU 7.150 10/01/22 135 140,646 NYS (SONYMA) Mortgage, Series UU 7.750 10/01/23 1,365 1,444,620 NYS (SONYMA) Mortgage, Series VV 0.000 10/01/23 115,222 16,906,524 NYS (SONYMA) Mortgage, Series VV 7.375 10/01/11 195 207,940 Puerto Rico HFA 0.000 08/01/26 8,690 1,202,088 Puerto Rico HFA 6.250 04/01/29 90 92,697 Puerto Rico HFA 7.650 10/15/22 80 85,122 V. I. HFA 6.450 03/01/16 100 104,523 - -------------------------------------------------------------------------------------------------------------------------- MARINE/AVIATION FACILITIES -- 6.3% $158,035,147 Albany IDA (Port of Albany) 7.250 02/01/24 1,395 1,491,283 Guam Airport 6.600 10/01/10 3,675 3,856,655 Guam Airport 6.700 10/01/23 60,730 63,518,114 Monroe County Airport 7.250 01/01/19 20 20,927 NYC IDA (American Airlines) 6.900 08/01/24 16,685 18,110,733 NYC IDA (American Airlines) 7.750 07/01/19 1,795 1,891,266 NYC IDA (American Airlines) 8.000 07/01/20 7,110 7,516,621 NYC IDA (Japan Airlines) 6.000 11/01/15 3,500 3,620,470 NYC IDA (Terminal One Group Assoc.) 6.000 11/01/19 15,050 15,214,497
15 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYC IDA (Terminal One Group Assoc.) 6.125% 01/01/24 $ 6,715 $ 6,844,062 Port Authority NY/NJ (US Air) 9.000 12/01/10 520 584,854 Port Authority NY/NJ (US Air) 9.000 12/01/06 7,205 8,103,608 Port Authority NY/NJ (US Air) 9.125 12/01/15 22,335 25,223,139 Port Authority NY/NJ, 51st Series 7.000 12/01/14 45 46,125 Port Authority NY/NJ, 68th Series 7.250 02/15/25 80 86,249 Port Authority NY/NJ, 68th Series 7.250 02/15/25 30 31,689 Port Authority NY/NJ, 70th Series 7.250 08/01/25 20 21,376 Port Authority NY/NJ, 70th Series 7.250 08/01/25 15 16,187 Port Authority NY/NJ, 76th Series 6.500 11/01/26 60 61,331 Puerto Rico Port Authority 7.300 07/01/07 25 25,500 V. I. Port Authority (CEK Airport) 8.100 10/01/05 1,670 1,750,461 - -------------------------------------------------------------------------------------------------------------------------- LEASE RENTAL -- 4.0% $101,906,413 Albany IDA (Upper Hudson Library) 8.750 05/01/22 940 1,012,173 Albany IDA (Upper Hudson Library) 8.750 05/01/07 215 221,968 Albany Parking Authority 0.000 11/01/17 1,770 561,072 Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,330 1,436,373 Capital District Youth Center 6.000 02/01/17 600 601,698 Carnegie Redevelopment Corp. 7.000 09/01/21 500 528,480 Clifton Park COP (Clifton Commons) 8.500 08/01/08 10 10,456 Monroe COP 8.050 01/01/11 470 504,813 NYS COP (BOCES) (b) 7.875 10/01/00 1,000 1,044,630 NYS COP (Hanson Redevelopment) 8.250 11/01/01 250 265,880 NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 31,750 37,054,473 NYS LGSC (SCSB) 7.375 12/15/16 810 829,521 NYS UDC 0.000 01/01/08 900 515,331 NYS UDC 0.000 01/01/11 80 39,815 NYS UDC 0.000 01/01/11 98,200 45,495,078 NYS UDC 0.000 01/01/03 15 11,236 NYS UDC 7.500 01/01/01(p) 2,000 2,241,560 Puerto Rico Public Bldgs. Authority Indexed Flt. 5.120(f)(c) 07/01/16 7,000 6,953,520 Schroon Lake Fire District (b) 7.250 03/01/09 552 572,866 Vigilant EHL (Thomatson) 7.500 11/01/12 950 1,009,888 Yonkers Parking Authority 7.750 12/01/04 950 995,581 - -------------------------------------------------------------------------------------------------------------------------- ADULT LIVING FACILITIES -- 3.3% $83,104,690 Batavia Hsg. Authority (Trocaire Place) 8.750 04/01/25 3,850 4,099,557 Middleton IDA (Southwinds) 8.375 03/01/18 3,740 3,960,660 Monroe IDA (Jewish Home) 6.875 04/01/27 4,945 5,000,285 Monroe IDA (Jewish Home) 6.875 04/01/17 1,000 1,019,070 Orange IDA (Glen Arden) 8.250 01/01/02 18,025 18,495,633 Orange IDA (Glen Arden) 8.875 01/01/25 23,985 26,003,578 Syracuse Hsg. Authority (Seneca Heights) 7.500 12/01/07 1,990 1,995,652 Syracuse Hsg. Authority (Seneca Heights) 8.500 12/01/17 4,720 4,734,821
16 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Tompkins IDA (Ithacare Center) 6.200% 02/01/37 $ 3,750 $ 3,832,163 Tompkins IDA (Kendall at Ithaca) 7.875 06/01/15 2,790 2,877,355 Tompkins IDA (Kendall at Ithaca) 7.875 06/01/24 5,465 5,646,985 Union Hsg. Authority (Methodist Homes) 7.625 11/01/16 2,470 2,679,975 Union Hsg. Authority (Methodist Homes) 8.050 04/01/99 105 110,208 Union Hsg. Authority (Methodist Homes) 8.150 04/01/00 110 115,737 Union Hsg. Authority (Methodist Homes) 8.250 04/01/01 120 126,346 Union Hsg. Authority (Methodist Homes) 8.350 04/01/02 150 158,042 Union Hsg. Authority (Methodist Homes) 8.500 04/01/12 2,010 2,248,627 - -------------------------------------------------------------------------------------------------------------------------- WATER UTILITIES -- 3.3% $82,293,165 Erie County Water Revenue, 4th Series 0.000 12/01/17 16,565 3,843,080 NYC Municipal Water Finance Authority IRS 6.540(f) 06/15/13 12,500 11,937,500 NYC Municipal Water Finance Authority IVRC (b) 7.410(f) 06/15/17 30,000 31,912,500 NYC Municipal Water Finance Authority LEVVRS 7.017(f) 06/15/19 10,000 10,012,500 NYS Environ. (Consolidated Water) 7.150 11/01/14 1,840 1,969,812 NYS Environ. (L.I. Water) 10.000 10/01/17 500 515,810 NYS Environ. (NYS Water Services) 8.375 01/15/20 7,500 8,184,375 Suffolk IDA (Ocean Park Water) 7.500 11/01/22 715 772,286 V. I. Water & Power Authority 7.600 01/01/12 6,850 7,350,393 V. I. Water & Power Authority 8.500 01/01/10 5,500 5,794,910 - -------------------------------------------------------------------------------------------------------------------------- MANUFACTURING, DURABLE GOODS -- 3.2% $81,088,817 Brookhaven IDA (Farber) 6.375(v) 12/01/04 490 490,000 Brookhaven IDA (Farber) 6.375(v) 12/01/02 870 870,000 Broome IDA (Simulator) 8.250 01/01/02 775 801,420 Cattaraugus IDA (Cherry Creek) 9.800 09/01/10 1,980 2,197,998 Chautauqua IDA (Dunkirk Glass) 11.500 12/01/10 7,900 2,370,632 City of Port Jervis (Future Home Tech.) 10.000 11/01/08 720 751,219 Cortland IDA (Paul Bunyon Products) 8.000 07/01/00 120 124,873 Erie IDA (Great Lakes Orthodontic) 12.099 05/01/00 98 108,056 Hudson IDA (Have, Inc.) 8.125 12/01/17 990 1,005,484 Monroe IDA (Brazill Merk) 7.900 12/15/14 3,080 3,290,672 Monroe IDA (Melles Griot) 9.500 12/01/09 1,560 1,613,711 Monroe IDA (RTM Turbine) 7.750 12/01/06 3,490 3,538,511 Monroe IDA (RTM Turbine) 8.000 12/01/11 3,060 3,148,740 Monroe IDA (RTM Turbine) 8.500 12/01/16 770 812,658 Nassau IDA (RJS Scientific) 8.050 12/01/05 330 357,545 Nassau IDA (RJS Scientific) 9.050 12/01/25 2,700 2,995,137 Nassau IDA (Structural Industries) 7.750 02/01/12 500 542,885 NYC IDA (Display Creations) 9.250 06/01/08 1,900 1,918,582 NYC IDA (Gabrielli Truck Sales) 8.125 12/01/17 3,280 3,329,659 NYC IDA (HiTech Res Rec) 8.750 08/01/00 320 334,422 NYC IDA (HiTech Res Rec) 9.250 08/01/08 695 731,203 NYC IDA (House of Spices) 9.000 10/15/01 490 532,826
17 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYC IDA (House of Spices) 9.250% 10/15/11 $ 2,140 $ 2,353,743 NYC IDA (Koenig Iron Works) 8.375 12/01/25 1,675 1,789,101 NYC IDA (Nekboh) 9.625 05/01/11 5,760 6,110,899 NYC IDA (Novelty Cord & Tassel) 8.925(v) 12/01/06 612 622,488 NYC IDA (Penguin Air Conditioning) 12.222 12/01/99 137 142,984 NYC IDA (Pop Display) 6.750 12/15/04 1,150 1,172,241 NYC IDA (Pop Display) 7.900 12/15/14 2,645 2,788,438 NYC IDA (Priority Mailers) 9.000 03/01/10 1,730 1,880,735 NYC IDA (Sequins International) 8.500 04/30/00 315 335,012 NYC IDA (Sequins International) 8.950 01/30/16 4,555 5,063,611 NYC IDA (Ultimate Display) 8.750 10/15/00 305 324,791 NYC IDA (Ultimate Display) 9.000 10/15/11 1,910 2,075,750 Onondaga IDA (Coltec) 7.250 06/01/08 535 540,618 Onondaga IDA (Coltec) 9.875 10/01/10 750 777,750 Onondaga IDA (Gear Motion) 8.400 12/15/01 550 561,083 Onondaga IDA (Gear Motion) 8.900 12/15/11 1,670 1,786,516 Orange IDA (Kingston Manufacturing) 8.000 11/01/17 7,600 7,718,636 Rensselaer IDA (MMP) 8.500 12/15/02 30 31,056 Suffolk IDA (Fil-Coil) 9.000 12/01/15 445 445,009 Suffolk IDA (Fil-Coil) 9.250 12/01/25 1,060 1,060,011 Suffolk IDA (Marbar Assoc.) 8.300 03/01/09 190 194,750 Suffolk IDA (Marbar Assoc.) 8.300 03/01/08 190 195,700 Suffolk IDA (Microwave Power) 7.750 06/30/02 300 312,015 Suffolk IDA (Microwave Power) 8.500 06/30/22 4,320 4,596,005 Suffolk IDA (Wireless Boulevard Realty) 7.875 12/01/12 1,410 1,438,073 Suffolk IDA (Wireless Boulevard Realty) 8.625 12/01/26 4,005 4,168,845 Syracuse IDA (Piscitell Stone) 8.400 12/01/11 685 736,724 - -------------------------------------------------------------------------------------------------------------------------- HIGHER EDUCATION -- 2.8% $71,632,218 Allegany IDA (Alfred University) 7.500 09/01/11 10,070 10,983,853 Brookhaven IDA (Dowling College) 6.750 03/01/23 6,965 7,315,618 Cattaraugus IDA (St. Bonaventure) 8.300 12/01/10 8,825 9,680,407 Dutchess IDA (Bard College) 7.000 11/01/17 3,500 3,839,395 Erie IDA (Medaille College) 8.000 12/30/22 3,230 3,510,429 Monroe IDA (Roberts Wesleyan College) 6.700 09/01/11 2,625 2,675,138 New Rochelle IDA (CNR) 6.750 07/01/22 3,000 3,127,980 NYC IDA (MMC) 7.000 07/01/23 3,500 3,653,265 NYS Dorm (Lakeside) 6.000 02/01/37 4,380 4,425,289 NYS Dorm (Rochester Institute of Technology) 5.250 07/01/22 375 359,640 NYS Dorm (State University) 0.000 05/15/07 50 29,303 NYS Dorm (State University) 7.000 05/15/16 225 237,119 NYS Dorm (St. Thomas Aquinas College) 6.250 07/01/14 75 76,697 Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5 4,797 Rockland IDA (DC) 8.000 03/01/13 2,090 2,265,079 Suffolk IDA (Dowling College) 6.625 06/01/24 2,000 2,095,080
18 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Suffolk IDA (Dowling College) 6.700% 12/01/20 $ 1,870 $ 1,943,248 Suffolk IDA (Dowling College) 8.250 12/01/20(p) 965 1,092,795 University of V. I. 7.250 10/01/04 1,205 1,274,878 University of V. I. 7.700 10/01/19 3,570 3,905,687 University of V. I. 7.750 10/01/24 5,175 5,660,622 Yates IDA (Keuka College) 8.750 08/01/15 1,960 2,261,272 Yates IDA (Keuka College) 9.000 08/01/11 1,095 1,214,629 - -------------------------------------------------------------------------------------------------------------------------- NONPROFIT ORGANIZATION -- 2.6% $66,208,590 Albany IDA (Albany Rehab.) 8.375 06/01/23 1,025 1,085,260 Columbia IDA (Berkshire Farms) 6.900 12/15/04 760 801,086 Columbia IDA (Berkshire Farms) 7.500 12/15/14 1,855 2,008,186 Geneva IDA (FLCP) 8.250 11/01/04 770 828,628 Monroe IDA (Al Sigl Center) 6.600 12/15/17 4,260 4,326,754 Monroe IDA (Al Sigl Center) 7.250 12/15/15 1,590 1,687,117 Monroe IDA (DePaul CF) 6.450 02/01/14 880 948,526 Monroe IDA (DePaul CF) 6.500 02/01/24 1,285 1,378,908 Monroe IDA (DePaul Properties) 8.300 09/01/02 470 502,989 Monroe IDA (DePaul Properties) 8.800 09/01/21 4,605 4,877,156 NYC IDA (Blood Center) 7.200 05/01/12(p) 500 571,220 NYC IDA (Blood Center) 7.250 05/01/22(p) 3,000 3,435,990 NYC IDA (CCM) 7.875 12/01/16 1,770 1,832,729 NYC IDA (CCM) 8.000 12/01/11 2,055 2,114,883 NYC IDA (EPG) 7.500 07/30/03 10,355 11,257,438 NYC IDA (Fund for NYC Project) 7.625 07/01/10 1,000 1,064,090 NYC IDA (Graphic Artists) 8.250 12/30/23 1,280 1,346,509 NYC IDA (JBFS) 6.750 12/15/12 6,040 6,306,364 NYC IDA (Lighthouse) 6.500 07/01/22 1,000 1,064,710 NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,175 1,189,194 NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,400 4,488,132 NYC IDA (OHEL) 8.250 03/15/23 3,435 3,568,484 NYC IDA (PRFFP) 7.000 10/01/16 815 879,548 NYC IDA (Psycho Therapy) 9.625 04/01/10 730 789,086 NYC IDA (St. Christoper Ottilie) 7.500 07/01/21 4,140 4,482,337 UCP Chemung County 6.600 08/01/22 1,000 1,056,720 Westchester IDA (JBFS) 6.750 12/15/12 2,220 2,316,548 - -------------------------------------------------------------------------------------------------------------------------- EDUCATION -- 2.5% $63,186,939 Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 590 632,079 Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,220 3,554,494 Columbia IDA (ARC) 7.750 06/01/05 660 707,190 Columbia IDA (ARC) 8.650 06/01/18 2,650 2,841,436 Islip IDA (Leeway School) 9.000 08/01/21 970 1,037,405 Montgomery IDA (New Dimension) 8.900 05/01/16 1,055 1,138,651 Nassau IDA (ACLDD) 8.125 10/01/22 2,725 2,841,167
19 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ NYC IDA (BHMS) 8.400% 09/01/02 $ 230 $ 233,843 NYC IDA (BHMS) 8.500 01/01/27 3,075 3,112,054 NYC IDA (BHMS) 8.900 09/01/11 660 701,369 NYC IDA (BHMS) 9.200 09/01/21 1,690 1,832,467 NYC IDA (Eden II) 7.750 06/01/04 405 424,177 NYC IDA (Eden II) 8.750 06/01/19 2,505 2,684,508 NYC IDA (Friends Seminary School) 7.000 12/01/17 3,705 3,766,799 NYC IDA (Hebrew Academy) 10.000 03/01/21 2,290 2,514,557 NYC IDA (Herbert G. Birch) 7.375 02/01/09 780 788,947 NYC IDA (Herbert G. Birch) 8.375 02/01/22 2,195 2,222,306 NYC IDA (St. Bernard's School) 7.000 12/01/21 5,115 5,298,373 NYC IDA (Summit School) 7.250 12/01/04 190 195,905 NYC IDA (Summit School) 8.250 12/01/24 1,485 1,541,133 NYC IDA (United Nations School) 6.350 12/01/15 1,000 1,009,960 Orange IDA (Mental Retardation Project) 7.800 07/01/11 495 568,062 Saratoga IDA (ARC) 8.400 03/01/13 1,395 1,465,169 Suffolk IDA (Devel. Disabilities) 7.375 03/01/03 915 941,187 Suffolk IDA (Devel. Disabilities) 8.750 03/01/23 9,675 10,387,080 Wayne IDA (ARC) 7.250 03/01/03 450 464,319 Wayne IDA (ARC) 8.375 03/01/18 2,925 3,029,891 Westchester IDA (Clearview School) 9.375 01/01/21 1,469 1,604,928 Westchester IDA (JDAM) 6.750 04/01/16 1,560 1,611,199 Yonkers IDA (Westchester) 7.375 12/30/03 395 409,307 Yonkers IDA (Westchester) 8.750 12/30/23 3,375 3,626,978 - -------------------------------------------------------------------------------------------------------------------------- CORPORATE BACKED -- 1.7% $43,493,520 Albany IDA (Albany Golf) 7.500 05/01/12 400 434,116 Albany IDA (Kenwood Assoc.) 9.250(d) 09/01/10 2,735 2,222,051 Auburn IDA (Wegmans) 7.250 12/01/98 95 95,831 Broome IDA (Industrial Park) 7.550 12/01/00 190 195,700 Broome IDA (Industrial Park) 7.600 12/01/01 195 200,850 Dutchess IDA (Merchants Press) 7.950(d) 06/30/02 1,800 1,463,472 Dutchess IDA (Merchants Press) 9.000(d) 06/30/22 4,590 3,756,043 Erie IDA (Affordable Hospitality) 9.250 12/01/15 3,610 3,700,900 Erie IDA (Air Cargo) 8.250 10/01/07 1,455 1,509,286 Erie IDA (Air Cargo) 8.500 10/01/15 2,380 2,508,044 Fulton IDA (Crossroads Incubator) 8.500 12/15/98(a) 160 162,400 Hudson IDA (Northside) 9.000 12/01/09 455 491,591 Islip IDA (WJL Realty) 7.800 03/01/03 50 53,020 Islip IDA (WJL Realty) 7.850 03/01/04 100 106,161 Islip IDA (WJL Realty) 7.900 03/01/05 100 106,282 Islip IDA (WJL Realty) 7.950 03/01/10 500 530,875 Monroe IDA (Canal Ponds) 7.000 06/15/13 900 973,377 Monroe IDA (Cottrone Devel.) 9.500 12/01/10 2,316 2,501,935 Monroe IDA (De Carolis) 7.500 01/30/05 384 384,165
20 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ Monroe IDA (Morrell/Morrell) 7.000% 12/01/07 $ 2,172 $ 2,218,850 Monroe IDA (Piano Works) 7.625 11/01/16 4,330 4,517,749 Monroe IDA (West End Business) 6.750 12/01/04 140 143,522 Monroe IDA (West End Business) 6.750 12/01/04 575 589,467 Monroe IDA (West End Business) 6.750 12/01/04 75 76,887 Monroe IDA (West End Business) 8.000 12/01/14 515 550,875 Monroe IDA (West End Business) 8.000 12/01/14 1,375 1,470,783 Monroe IDA (West End Business) 8.000 12/01/14 170 181,842 Monroe IDA (West End Business) 8.000 12/01/14 345 369,033 Niagara IDA (Maryland Maple) 10.250 11/15/09 1,090 1,140,641 Niagara IDA (Sevenson Hotel) 6.600 05/01/07 1,900 1,939,102 NYC IDA (ALA Realty) 7.500 12/01/10 1,035 1,075,500 NYC IDA (ALA Realty) 8.375 12/01/15 1,450 1,580,761 NYC IDA (Loehmann's) 9.500 12/31/04 845 859,044 Suffolk IDA (Rimland Facilities) 6.375(v) 12/01/09 1,670 1,618,230 Syracuse IDA (Rockwest Center II) 7.625 12/01/10 980 1,004,569 Syracuse IDA (Rockwest Center II) 8.625 12/01/15 1,470 1,549,733 Syracuse IDA (Rockwest Center I) 8.000 06/01/13 1,150 1,210,835 - -------------------------------------------------------------------------------------------------------------------------- MANUFACTURING, NON-DURABLE GOODS -- 1.4% $35,294,770 Babylon IDA (JFB & Sons Lithographers) 7.625 12/01/06 1,180 1,193,039 Babylon IDA (JFB & Sons Lithographers) 8.625 12/01/16 2,570 2,602,279 Herkimer IDA (Burrows Paper) 7.250 01/01/01 1,885 1,850,542 Herkimer IDA (Burrows Paper) 8.000 01/01/09 2,440 2,427,532 Middleton IDA (Fleurchem) 8.000 12/01/16 905 950,422 Monroe IDA (Cohber) 7.550 12/01/01 10 10,488 Monroe IDA (Cohber) 7.650 12/01/02 10 10,502 Monroe IDA (Cohber) 7.700 12/01/03 10 10,509 Monroe IDA (Cohber) 7.850 12/01/09 170 178,871 Nassau IDA (Sharp International) 7.375 12/01/07 3,070 3,116,480 Nassau IDA (Sharp International) 7.875 12/01/12 2,610 2,657,972 NYC IDA (Amster Novelty) 8.000 12/01/10 530 544,591 NYC IDA (Amster Novelty) 8.375 12/01/15 790 828,015 NYC IDA (Atlantic Veal & Lamb) 8.375 12/01/16 1,160 1,176,762 NYC IDA (Gutmann Plastics) 7.750 12/01/07 905 916,113 NYC IDA (Promotional Slideguide) 7.500 12/01/10 710 713,451 NYC IDA (Promotional Slideguide) 7.875 12/01/15 1,065 1,088,334 NYC IDA (Streamline Plastics) 7.750 12/01/15 585 605,299 NYC IDA (Streamline Plastics) 8.125 12/01/25 1,275 1,340,841 NYC IDA (Visy Paper) 7.950 01/01/28 4,000 4,426,320 NYS Environ. (Occidental Petroleum) 6.100 11/01/30 4,000 4,023,040 Putnam IDA (Brewster Plastics) 8.500 12/01/16 1,990 2,062,197 Ulster IDA (Brooklyn Bottling) 7.800 06/30/02 525 544,409 Ulster IDA (Brooklyn Bottling) 8.600 06/30/22 1,915 2,016,763
21 ROCHESTER FUND MUNICIPALS STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
Face Amount Description Coupon Maturity (000) Omitted Market Value ----------- ------ -------- ------------- ------------ TELEPHONE UTILITIES -- 1.3% $32,391,188 Puerto Rico Telephone Authority RIBS 6.692%(f) 01/01/15 $ 16,550 $ 16,322,438 Puerto Rico Telephone Authority RIBS(b) 7.700(f) 01/01/20 15,000 16,068,750 - -------------------------------------------------------------------------------------------------------------------------- HIGHWAYS, COMMUTER FACILITIES -- 1.0% $24,851,661 MTA IVRC(b) 6.581(f) 07/01/11 10,000 10,225,000 MTA YCR(b) 6.286(f) 07/01/13 9,400 9,423,500 MTA YCR(b) 6.286(f) 07/01/22 3,000 2,868,750 NYS Thruway 0.000 01/01/04 2,000 1,412,540 NYS Thruway 0.000 01/01/05 260 172,801 NYS Thruway 0.000 01/01/03 1,000 749,070 - -------------------------------------------------------------------------------------------------------------------------- GAS UTILITIES -- 1.0% $24,697,375 NYS ERDA (Brooklyn Union Gas) RIBS 7.133(f) 07/08/26 5,000 4,668,750 NYS ERDA (Brooklyn Union Gas) RIBS 8.345(f) 04/01/20 7,000 7,630,000 NYS ERDA (Brooklyn Union Gas) RIBS 9.442(f) 07/01/26 10,300 12,398,625 - -------------------------------------------------------------------------------------------------------------------------- OTHER -- 0.5% $12,573,273 Franklin SWMA 6.250 06/01/15 4,245 4,267,329 Montgomery IDA (Amsterdam) 7.250 01/15/19 5,860 6,103,307 Municipal Assistance Corp. for Troy, NY 0.000 01/15/22 1,219 305,338 Municipal Assistance Corp. for Troy, NY 0.000 07/15/21 803 207,402 Peekskill IDA (Karta) 9.000 07/01/10 1,629 1,689,897 -------------- TOTAL MUNICIPAL BOND INVESTMENTS, AT VALUE (COST $2,468,875,244) -- 102.7% $2,592,199,216 -------------- LIABILITIES IN EXCESS OF OTHER ASSETS -- (2.7%) (68,303,325) -------------- NET ASSETS -- 100.0% $2,523,895,891 ============== - --------------- (a) Date of mandatory put; final maturity 12/15/2008. (b) Illiquid security. (c) Security will convert to a fixed coupon at a future date prior to maturity. (d) Non-income accruing security. (f) Interest rate is subject to change periodically and inversely to the prevailing market rate. The interest rate shown is the rate in effect at 06/30/97. (p) Date of pre-refunded call. (v) Variable rate security that fluctuates as a percentage of prime rate. (w) When-issued security to be delivered on 07/29/99 -- See Note 3 of Notes to Financial Statements. See accompanying Notes to Financial Statements.
22 PORTFOLIO ABBREVIATIONS To simplify the listings of Rochester Fund Municipals' holdings in the Statement of Investments, we have abbreviated the descriptions of many of the securities per the table below: ACLDD Adults and Children with Learning and Developmental Disabilities ARC Association of Retarded Citizens ASSC Annie Schaffer Senior Center BHMS Brooklyn Heights Montessori School BLH Bronx Lebanon Hospital BOCES Board of Cooperative Educational Services CAB Capital Appreciation Bond CARS Complimentary Auction Rate Security CCM Comprehensive Care Management CDC Community Development Corporation CEK Cyril E. King CF Community Facilities CGH Community General Hospital CNR College of New Rochelle Con Ed Consolidated Edison Co. COP Certificate of Participation DC Dominican College EHC Elderly Housing Corporation EHL Engine Hook and Ladder EPG Elmhurst Parking Garage ERDA Energy Research and Development Authority E,E&T Ear, Eye and Throat FLCP Finger Lakes Cerebral Palsy GAINS Growth and Income Securities GO General Obligation HB&F Housing Bank and Finance HDC Housing Development Corporation HELP Homeless Economic Loan Program HFA Housing Finance Agency HFC Housing Finance Corporation H&N Hospital and Nursing IDA Industrial Development Authority IRS Inverse Rate Security ITEME Industrial Tourist Educational Medical and Environmental IVRC Inverse Variable Rate Certificate JBFS Jewish Board of Family Services JDAM Julia Dyckman Angus Memorial LEVRRS Leveraged Reverse Rate Security LGSC Local Government Services Corporation L.I. Long Island LILCO Long Island Lighting Corporation MMC Marymount Manhattan College MMP Millbrook Millwork Project MTA Metropolitan Transit Authority NIMO Niagara Mohawk Power Corporation PRFFP Puerto Rican Family Foundation Project Res Rec Resource Recovery Facility RGH Rochester General Hospital RG&E Rochester Gas and Electric RIBS Residual Interest Bonds RITES Residual Interest Tax Exempt Security SCSB Schuyler Community Services Board SONYMA State of New York Mortgage Agency SWMA Solid Waste Management Authority TEMEC Tourist, Educational, Medical and Environmental Control UCP United Cerebral Palsy UDC Urban Development Corporation UFA Utica Free Academy WWH Wyandach/Wheatley Heights YCN Yield Curve Note YCR Yield Curve Receipt V.I. United States Virgin Islands ================================================================================ ASSET COMPOSITION TABLE - JUNE 30, 1997 (UNAUDITED)
Percentage Rating of Investments ------ -------------- AAA 23.7% Bonds rated by any nationally recognized statistical rating organization are included AA 15.0% in the equivalent Standard & Poor's rating category. All unrated bonds are backed by A 21.3% mortgage liens and guarantees by the issuer. Bonds which are backed by a letter of BBB 21.4% credit or by other financial institutions or agencies may be assigned an investment BB 5.3% grade rating by the Manager, which reflects the quality of the guarantor, institution or B 2.0% agency. Unrated bonds may also be assigned a rating when the issuer has rated bonds CCC 0.0% outstanding with comparable credit characteristics, or when, in the opinion of the CC 0.0% Manager, the bond itself possesses credit characteristics which allow for rating. The C 0.0% unrated bonds in the portfolio are predominantly smaller issuers which have not Not Rated 11.3% applied for a bond rating. Only those unrated bonds which subsequent to purchase ----- have not been designated investment grade by the Manager and the Fund's Board of Total 100.0% Trustees are included in the "Not Rated" category. For further information see ===== "Credit Quality" in the Prospectus. 23
ROCHESTER FUND MUNICIPALS ================================================================================================================================= STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED) ASSETS Investments, at value (Cost $2,468,875,244) $2,592,199,216 Receivables: Interest 41,428,468 Shares of beneficial interest sold 16,371,226 Investments sold 805,723 Other 2,684,387 -------------- Total assets 2,653,489,020 -------------- LIABILITIES Bank overdraft 131,415 Payables and other liabilities: Investments purchased 124,117,156 Dividends 2,722,165 Shares of beneficial interest redeemed 1,991,788 Trustees' fees 511,695 Other 118,910 -------------- Total liabilities 129,593,129 -------------- NET ASSETS $2,523,895,891 ============== ================================================================================================================================= COMPOSITION OF NET ASSETS Paid-in capital $2,459,219,430 Excess of distributions over net investment income (407,140) Accumulated net realized loss on investment transactions (58,240,371) Net unrealized appreciation on investments--Note 3 123,323,972 -------------- Net assets $2,523,895,891 ============== ================================================================================================================================= NET ASSET VALUE PER SHARE CLASS A SHARES: Net asset value and redemption price per share (based on net assets of $2,463,223,226 and 136,171,585 shares of beneficial interest outstanding) $18.09 Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $18.99 - --------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES: Net asset value, redemption price and offering price per share (based on net assets of $48,602,469 and 2,688,426 shares of beneficial interest outstanding) $18.08 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES: Net asset value, redemption price and offering price per share (based on net assets of $12,070,196 and 667,551 shares of beneficial interest outstanding) $18.08 - --------------------------------------------------------------------------------------------------------------------------------- See accompanying Notes to Financial Statements
24 ROCHESTER FUND MUNICIPALS ============================================================================== STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1997 (Unaudited) Investment Income: Interest $81,429,393 ----------- Expenses: Management fees 5,579,419 Distribution and service plan fees: Class A 1,727,261 Class B 65,065 Class C 14,042 Transfer and shareholder servicing agent fees: Class A 641,773 Class B 4,049 Class C 709 Accounting service fees 353,070 Shareholder reports 204,543 Registration and filing fees 131,524 Custodian fees and expenses 122,718 Trustees' fees and expenses 49,341 Legal and auditing fees 34,712 Other 76,336 Interest 165,534 ----------- Total expenses 9,170,096 Less expenses paid indirectly (33,606) ----------- Net expenses 9,136,490 ----------- Net Investment Income 72,292,903 ----------- Realized and Unrealized Gain: Net realized gain on investments 996,717 Net change in unrealized appreciation or depreciation on investments 15,122,370 ----------- Net realized and unrealized gain 16,119,087 ----------- Net Increase in Net Assets Resulting From Operations $88,411,990 =========== STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended June 30, 1997 Year Ended (Unaudited) December 31, 1996 ---------------- ----------------- Operations: Net investment income $ 72,292,903 $ 135,835,359 Net realized gain (loss) 996,717 (3,568,327) Net change in unrealized appreciation or depreciation 15,122,370 (15,226,664) -------------- -------------- Net increase in net assets resulting from operations 88,411,990 117,040,368 -------------- -------------- Dividends and Distributions to Shareholders: Dividends from net investment income: Class A (74,277,727) (136,511,912) Class B (330,265) -- Class C (71,921) -- -------------- -------------- Beneficial Interest Transactions: Net increase in net assets resulting from beneficial interest transactions--Note 2: Class A 142,269,449 182,057,766 Class B 48,092,153 -- Class C 11,952,033 -- -------------- -------------- Net Assets: Total increase 216,045,712 162,586,222 Beginning of period 2,307,850,179 2,145,263,957 -------------- -------------- End of period (including excess of distributions over net investment income of $407,140 and ($1,979,870), respectively) $2,523,895,891 $2,307,850,179 ============== ==============
See accompanying Notes to Financial Statements. 25 ROCHESTER FUND MUNICIPALS FINANCIAL HIGHLIGHTS
Class A ----------------------------------------------------------------- Six Months Ended Year Ended December 31, June 30, 1997 -------------------------------------------------- (Unaudited)(a) 1996 1995 1994 1993 1992 ------------- ------ ------ ------ ------ ------ PER SHARE OPERATING DATA: Net asset value, beginning of period $18.00 $18.18 $16.31 $19.00 $17.65 $17.01 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income 0.55 1.10 1.10 1.13 1.17 1.20 Net realized and unrealized gain (loss) 0.09 (0.18) 1.86 (2.68) 1.35 0.64 ------ ------ ------ ------ ------ ------ Total income (loss) from investment operations 0.64 0.92 2.96 (1.55) 2.52 1.84 ------ ------ ------ ------ ------ ------ Dividends and distributions to shareholders: Dividends from net investment income (0.55) (1.10) (1.09) (1.13) (1.17) (1.20) Undistributed net investment income -- prior year -- -- -- (0.01) -- -- ------ ------ ------ ------ ------ ------ Total dividends and distributions to shareholders (0.55) (1.10) (1.09) (1.14) (1.17) (1.20) ------ ------ ------ ------ ------ ------ Net asset value, end of period $18.09 $18.00 $18.18 $16.31 $19.00 $17.65 ====== ====== ====== ====== ====== ====== TOTAL RETURN, AT NET ASSET VALUE(b) 3.71% 5.37% 18.58% (8.35%) 14.60% 11.19% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) $2,463 $2,308 $2,145 $1,791 $1,794 $997 Average net assets (in millions) $2,349 $2,191 $2,005 $1,847 $1,449 $717 Ratios to average net assets: Net investment income 6.12%(c) 6.20% 6.25% 6.43% 6.21% 6.79% Expenses(d) 0.77%(c) 0.82% 0.82% 0.84% 0.75% 0.84% Expenses (excluding interest)(d)(e) 0.76%(c) 0.77% 0.78% 0.73% 0.64% 0.70% Portfolio turnover rate(f) 2.63% 13.34% 14.59% 34.39% 18.27% 29.99% - --------------- (a) For the period from March 16, 1997 (inception of offering) to June 30, 1997. (b) Assumes a hypothetical initial investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. (c) Annualized. (d) Beginning in fiscal 1995, the expense ratios reflect the effect of gross expenses paid indirectly by the Fund. Prior year expense ratios have not been adjusted. (e) 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. (f) The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the period ended June 30, 1997 were $336,012,753 and $64,117,462, respectively. Per share information has been determined based on average shares outstanding for the period. See accompanying Notes to Financial Statements.
26 ROCHESTER FUND MUNICIPALS FINANCIAL HIGHLIGHTS -- (Continued) Class B Class C -------------- | -------------- Period Ended | Period Ended June 30, 1997 | June 30, 1997 (Unaudited)(a) | (Unaudited)(a) -------------- | -------------- | PER SHARE OPERATING DATA: | | Net asset value, beginning of period $17.89 | $17.89 ------ | ------ Income from investment operations: | Net investment income 0.25 | 0.25 Net realized and unrealized gain 0.20 | 0.20 ------ | ------ Total income from investment operations 0.45 | 0.45 ------ | ------ Dividends and distributions to shareholders: | | Dividends from net investment income (0.26) | (0.26) Undistributed net investment income -- prior year -- | -- ------ | ------ Total dividends and distributions to shareholders (0.26) | (0.26) ------ | ------ Net asset value, end of period $18.08 | $18.08 ====== | ====== TOTAL RETURN, AT NET ASSET VALUE(b) 2.82% | 2.82% | RATIOS/SUPPLEMENTAL DATA: | Net assets, end of period (in millions) $49 | $12 Average net assets (in millions) $23 | $5 Ratios to average net assets: | Net investment income 4.76%(c) | 4.72%(c) Expenses(d) 1.56%(c) | 1.54%(c) Expenses (excluding interest)(d)(e) 1.56%(c) | 1.54%(c) Portfolio turnover rate(f) 2.63% | 2.63% - ---------- (a) For the period from March 16, 1997 (inception of offering) to June 30, 1997. (b) Assumes a hypothetical initial investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. (c) Annualized. (d) Beginning in fiscal 1995, the expense ratios reflect the effect of gross expenses paid indirectly by the Fund. Prior year expense ratios have not been adjusted. (e) 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. (f) The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the period ended June 30, 1997 were $336,012,753 and $64,117,462, respectively. Per share information has been determined based on average shares outstanding for the period. See accompanying Notes to Financial Statements. 27 ROCHESTER FUND MUNICIPALS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1997 (UNAUDITED) NOTE 1. SIGNIFICANT ACCOUNTING POLICIES: Rochester Fund Municipals (the Fund), which is organized as a business trust under the laws of the Commonwealth of Massachusetts, conducted operations as a closed-end investment company from December, 1982 until May, 1986, at which time it commenced operations as an open-end investment company. The Fund's investment objective is to provide as high a level of interest income exempt from federal, New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management while seeking preservation of shareholders' capital. The Fund's investment adviser is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B and Class C shares. Class A shares are sold with a front-end sales charge. Class B and Class C shares may be subject to a contingent deferred sales charge. All classes of shares have identical rights to earnings, assets and voting privileges, except that each class has its own distribution and/or service plan, expenses directly attributable to a particular class and exclusive voting rights with respect to matters affecting a single class. Class B shares will automatically convert to Class A shares six years after the date of purchase. The following is a summary of significant accounting policies consistently followed by the Fund. INVESTMENT VALUATION AND TRANSACTIONS. Portfolio securities are valued at the close of the New York Stock Exchange on each trading day. Long-term debt securities are valued at the mean between the bid and asked price using information available from a portfolio pricing service approved by the Board of Trustees, dealer-supplied valuations, provided the Manager is satisfied that the firm rendering the quotes is reliable and that the quotes reflect current value, or analysis of various relationships between comparable securities. Securities for which market quotations are not readily available are valued at fair value under consistently applied procedures established by the Board of Trustees to determine fair value in good faith. Investment transactions are accounted for on the date the investments are purchased or sold (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. Delivery and payment for securities that have been purchased by the Fund on a forward commitment or when-issued basis can take place a month or more after the transaction date. Normally the settlement date occurs within six months of the purchase of municipal bonds and notes. However, the Fund may, from time to time, purchase municipal securities whose settlement date extends beyond six months and possibly as long as two years or more beyond trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The Fund maintains, in a segregated account with its custodian, assets with a market value equal to the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of the Fund's net asset value to the extent the Fund makes such purchases while remaining substantially fully invested. ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class) and gains and losses are allocated daily 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. 28 FEDERAL TAXES. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by loss carryovers, to shareholders. Therefore, no federal income or excise tax provision is required. At June 30, 1997, the Fund had available for federal income tax purposes an unused capital loss carryover of approximately $58,103,000 which expires between 2000 and 2004. TRUSTEES' FEES AND EXPENSES. 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. In connection with the sale of certain assets of Rochester Capital Advisors, L.P. (the Fund's former investment adviser) to the Manager, all but one of the existing independent trustees retired effective January 4, 1996. The retirement plan, as amended and restated on October 16, 1995, provides that no independent trustee of the Fund who is elected after September 30, 1995 may be eligible to receive benefits thereunder. The retirement plan expense, which is included in trustees' fees and expenses, amounted to $30,090 for the six months ended June 30, 1997. Payments of $27,000 were made to retired trustees during the six months ending June 30, 1997. At June 30, 1997, the Fund had recognized an accumulated liability of $502,590. DISTRIBUTIONS TO SHAREHOLDERS. Income dividends are declared and recorded each day the New York Stock Exchange is open for business 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 dividends are paid monthly. Distributions from net realized gains on investments, if any, are recorded on the ex-dividend date and paid annually. CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of the distributions made during the 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 dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gain (loss) was recorded by the Fund. CONCENTRATION IN NEW YORK ISSUERS. 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. EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Fund. OTHER. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 29 NOTE 2. SHARES OF BENEFICIAL INTEREST: The Fund has authorized an unlimited number of shares of beneficial interest, par value $.01 per share. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED YEAR ENDED JUNE 30, 1997 (1) DECEMBER 31, 1996 --------------------------- --------------------------- SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ CLASS A: Sold 13,738,596 $246,387,073 20,027,352 $355,593,044 Dividends and distributions reinvested 2,118,984 37,999,331 4,049,796 71,854,295 Redeemed (7,931,799) (142,116,955) (13,850,487) (245,389,573) ---------- ------------ ----------- ------------ Net increase 7,925,781 $142,269,449 10,226,661 $182,057,766 ========== ============ =========== ============ CLASS B: Sold 2,692,462 $ 48,162,358 -- $ -- Dividends and distributions reinvested 10,623 191,304 -- -- Redeemed (14,659) (261,509) -- -- --------- ------------ ----------- ------------ Net increase 2,688,426 $ 48,092,153 -- $ -- ========== ============ =========== ============ CLASS C: Sold 669,399 $ 11,985,284 -- $ -- Dividends and distributions reinvested 2,427 43,734 -- -- Redeemed (4,275) (76,985) -- -- ---------- ------------ ----------- ------------ Net increase 667,551 $ 11,952,033 -- $ -- =========== ============ =========== ============
- ------------ (1) For the six months ended June 30, 1997 for Class A shares and for the period from March 16, 1997 (inception of offering) to June 30, 1997 for Class B and Class C shares. NOTE 3. PORTFOLIO INFORMATION: At June 30, 1997, net unrealized appreciation on investments of $123,323,972 was composed of gross appreciation of $134,250,695, and gross depreciation of $10,926,723. The Fund held $389,007,555 in inverse floating rate municipal bonds at June 30, 1997, comprising approximately 15.41% of net assets. 30 The Fund intends to invest no more than 10% of its net assets in when-issued or delayed delivery securities. In January, 1997, the Fund entered into a forward delivery contract to purchase a total of $106,405,000 of Suffolk County Industrial Development Agency (the Issuer), Solid Waste Disposal Facility Revenue Bonds (Ogden Martin Systems of Huntington Limited Partnerships Resource Recovery Facility), Series 1999 (the Bonds), as detailed below: Face Amount Coupon Maturity ----------- ------ -------- $ 8,545,000 5.55% 2004 9,180,000 5.65% 2005 9,875,000 5.75% 2006 10,615,000 5.80% 2007 11,410,000 5.85% 2008 12,265,000 5.95% 2009 13,190,000 6.00% 2010 14,170,000 6.15% 2011 17,155,000 6.25% 2012 ------------ $106,405,000 ============ The Bonds will be issued and delivered on July 29, 1999 if the following terms and conditions are met: 1) Counsel must render an opinion that the interest on the Bonds is exempt for federal, state and local income tax purposes, except for the alternative minimum tax, and 2) the bond insurer must issue the municipal bond insurance policy related to the Bonds. The Fund has recorded this commitment and is valuing the when-issued securities at current market value on each trading day. In addition, the Fund has segregated sufficient liquid debt securities with its custodian to cover this commitment. The aggregate market value of securities purchased on a when-issued or delayed delivery basis at June 30, 1997 was $106,990,611, which represents 4.24% of the Fund's net assets. NOTE 4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES: Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.54% on the first $100 million of average annual net assets, 0.52% of the next $150 million, 0.47% of the next $1,750 million, 0.46% of the next $3 billion, and 0.45% on net assets in excess of $5 billion. During the six months ended June 30, 1997, the Fund paid $5,579,419 to the Manager for management and investment advisory services. Accounting fees paid to the Manager were in accordance with the accounting services agreement with the Fund which provides for an annual fee of $12,000 for the first $30 million of net assets and $9,000 for each additional $30 million of net assets. During the first six months of 1997, the Fund paid $353,070 to the Manager for accounting and pricing services. OppenheimerFunds Services (OFS), a division of the Manager, is the transfer and shareholder servicing agent for the Fund and for other registered investment companies. The Fund pays OFS an annual maintenance fee of $24.12 for each Class A shareholder account and $26.02 for each Class B and Class C shareholder account. During the six months ended June 30, 1997, the Fund paid a total of $646,531 to OFS for transfer and shareholder servicing agent fees. 31 For the six months ended June 30, 1997, commissions (sales charges paid by investors) on sales of Class A shares totaled $5,954,569, of which $916,236 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by affiliated broker/dealers. Sales charges advanced to brokers/dealers by OFDI on sales of the Fund's Class B and Class C shares totaled $1,873,198 and $118,922, respectively, of which $2,614 was paid to an affiliated broker/dealer for Class B shares. During the six months ended June 30, 1997, OFDI received contingent deferred sales charges of $9,895 upon redemption of Class B shares as reimbursement for sales commissions advanced by OFDI at the time of sale of such shares. The Fund has adopted a Service Plan for Class A shares to reimburse OFDI for a portion of its costs incurred in connection with the personal service and maintenance of accounts that hold Class A shares. Reimbursement is made quarterly at an annual rate that may not exceed 0.25% of the average annual net assets of Class A shares of the Fund. Currently, the Board of Trustees has limited the rate to 0.15% per year on Class A shares. OFDI uses the service fee to reimburse brokers, dealers, banks and other financial institutions quarterly for providing personal service and maintenance of accounts of their customers that hold Class A shares. During the six months ended June 30, 1997, OFDI paid $6,943 to an affiliated broker/dealer as reimbursement for Class A personal service and maintenance expenses. The Fund has adopted compensation type Distribution and Service Plans for Class B and Class C shares to compensate OFDI for its services and costs in distributing Class B and Class C shares and servicing accounts. Under the Plans, the Fund pays OFDI an annual asset-based sales charge of 0.75% per year on Class B and Class C shares, as compensation for sales commissions paid from its own resources at the time of sale and associated financing costs. OFDI also receives a service fee of 0.25% per year as compensation for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Fund, including amounts paid to brokers, dealers, banks and other financial institutions. Both fees are computed on the average annual net assets of Class B and Class C shares, determined as of the close of each regular business day. During the period ended June 30, 1997, OFDI retained $65,477 and $14,236, respectively, as compensation for Class B and Class C sales commissions and service fee advances, as well as financing costs. If the Plans are terminated by the Fund, the Board of Trustees may allow the Fund to continue payments of the asset-based sales charge to OFDI for certain expenses it incurred before the Plans were terminated. At June 30, 1997, OFDI had incurred unreimbursed expenses of $2,279,138 for Class B and $219,931 for Class C. NOTE 5. 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 two other Rochester Division funds managed by the Manager 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 0.75%. Borrowings are payable on demand. The Fund had no borrowings outstanding at June 30, 1997. For the six months ended June 30, 1997, the average monthly loan balance was $5,268,920 at an average interest rate of 6.248%. The maximum amount of borrowings outstanding at any month-end was $16,480,000. 32 [THIS PAGE INTENTIONALLY LEFT BLANK] 33
- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMERFUNDS FAMILY - ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== REAL ASSET FUNDS - ------------------------------------------------------------------------------------------------------------------------------------ Real Asset Fund Gold & Special Minerals Fund ==================================================================================================================================== STOCK FUNDS - ------------------------------------------------------------------------------------------------------------------------------------ Developing Markets Fund Quest Small Cap Value Fund Global Fund Enterprise Fund(2) Capital Appreciation Fund(3) Quest Global Value Fund International Growth Fund Quest Capital Value Fund Disciplined Value Fund Discovery Fund Growth Fund Quest Value Fund ==================================================================================================================================== STOCK & BOND FUNDS - ------------------------------------------------------------------------------------------------------------------------------------ Main Street Income & Growth Fund Quest Growth & Income Value Fund Disciplined Allocation Fund Quest Opportunity Value Fund Global Growth & Income Fund Multiple Strategies Fund(4) Total Return Fund Equity Income Fund Bond Fund for Growth ==================================================================================================================================== BOND FUNDS - ------------------------------------------------------------------------------------------------------------------------------------ International Bond Fund Champion Income Fund U.S. Government Trust High Yield Fund Strategic Income Fund Limited-Term Government Fund Bond Fund ==================================================================================================================================== MUNICIPAL FUNDS - ------------------------------------------------------------------------------------------------------------------------------------ California Municipal Fund(5) Pennsylvania Municipal Fund(5) Rochester Division Florida Municipal Fund(5) Municipal Bond Fund Rochester Fund Municipals New Jersey Municipal Fund(5) Insured Municipal Fund Limited Term New York New York Municipal Fund(5) Intermediate Municipal Fund Municipal Fund ==================================================================================================================================== MONEY MARKET FUNDS - ------------------------------------------------------------------------------------------------------------------------------------ Money Market Fund Cash Reserves ==================================================================================================================================== LIFESPAN - ------------------------------------------------------------------------------------------------------------------------------------ Growth Fund Balanced Fund Income Fund
(1) Exchange privileges are subject to change or termination. Shares may be exchanged only for shares of the same class of eligible funds. (2) Effective 4/1/96, the Fund is closed to new investors. (3) On 12/18/96, the Fund's name was changed from "Target Fund." (4) On 3/16/97, the Fund's name was changed from "Asset Allocation Fund." (5) Available only to investors in certain states. (6) An investment in money market funds is neither insured nor guaranteed by the U.S. government and there can be no assurance that a money market fund will be able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center, New York, NY 10048-0203. (c) Copyright 1997 OppenheimerFunds, Inc. All rights reserved. 34 INFORMATION AND SERVICES ------------------------ INTERNET As an Oppenheimer fund shareholder, you have 24-hr access to account some special privileges. Whether it's automatic information investment plans, informative newsletters and - ------------------------ hotlines, or ready account access, you can www.oppenheimerfunds com benefit from services designed to make investing - ------------------------ simple. GENERAL INFORMATION And when you need help, our Customer Service Mon-Fri 8:30-9pm ET Representatives are only a toll-free phone call away. Sat 10am-4pm ET They can provide information about your account - ------------------------ and handle administrative requests. You can reach them 1-800-525-7048 at our General Information number. - ------------------------ When you want to make a transaction, you can do ACCOUNT TRANSACTIONS it easily by calling our toll-free Telephone Mon-Fri 8:30-9pm ET Transactions number. And, by enrolling in Sat 10am-4pm ET AccountLink, a convenient service that "links" your - ------------------------ Oppenheimer funds accounts and your bank checking or 1-800-852-8457 savings account, you can use the Telephone - ------------------------ Transactions number to make investments. PHONELINK For added convenience, you can get automated 24-hr automated information with OppenheimerFunds PhoneLink service, information and available 24 hours a day, 7 days a week. PhoneLink automated transactions gives you access to a variety of fund, account, and - ------------------------ market information. Of course, you can always speak 1-800-533-3310 with a Customer Service Representative during the - ------------------------ General Information hours shown at the left. TELECOMMUNICATION DEVICE You can count on us whenever you need assistance. for the Deaf (TDD) That's why the International Customer Service Mon-Fri 8:30am-2pm ET Association, an independent, nonprofit organization - ------------------------ made up of over 3,2000 customer service management 1-800-843-4461 professionals from around the country, honored the - ------------------------ Oppenheimer funds' transfer agent, OppenheimerFunds Services, with their Award of Excellence in 1993. OPPENHEIMERFUNDS So call us today, or visit us at our website at INFORMATION HOTLINE www.oppenheimerfunds.com--we're here to help. 24 hours a day, timely and insightful messages on the economy and issues that affect your investments - ------------------------ 1-800-835-3104 - ------------------------ [LOGO] OPPENHEIMERFUNDS.(sm) THE RIGHT WAY TO INVEST 35 [GRAPHIC OMITTED] ROCHESTER [LOGO] FUND MUNICIPALS The Rochester Funds A Division of OppenheimerFunds, Inc. 350 Linden Oaks Rochester, New York 14625-2807 - ------------------------------------------------------------------------------- Officers and Trustees Bridget A. Macaskill, Chairman of the Board of Trustees and President John Cannon, Trustee Paul Y. Clinton, Trustee Thomas W. Courtney, Trustee Lacy B. Herrmann, Trustee George Loft, Trustee Ronald H. Fielding, Vice President George C. Bowen, Treasurer Robert J. Bishop, Assistant Treasurer Adele A. Campbell, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Andrew J. Donohue, Secretary Robert G. Zack, Assistant Secretary - -------------------------------------------------------------------------------- Investment Adviser OppenheimerFunds, Inc. - -------------------------------------------------------------------------------- Distributor OppenheimerFunds Distributor, Inc. - -------------------------------------------------------------------------------- Transfer and Shareholder OppenheimerFunds Services Servicing Agent - -------------------------------------------------------------------------------- Custodian Citibank, N.A. - -------------------------------------------------------------------------------- Independent Accountants Price Waterhouse LLP - -------------------------------------------------------------------------------- Legal Counsel Kirkpatrick & Lockhart LLP The financial statements included herein have been taken from the records of the Fund without examination by the independent accountants. This is a copy of a report to shareholders of Rochester Fund Municipals. This report must be preceded or accompanied by a Prospectus of Rochester Fund Municipals. For material information concerning the Fund, see the Prospectus. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested. -----END PRIVACY-ENHANCED MESSAGE-----