-----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, DUFCrCV4vkm+mTwhSGfjLzFRWcO0K8xEE0t4DsTR7HhYYd438rvBFzbV4w85Xa+o HXmCifAxI6GCq1E67FU79A== 0000950110-98-001049.txt : 19980903 0000950110-98-001049.hdr.sgml : 19980903 ACCESSION NUMBER: 0000950110-98-001049 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980902 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: 98703273 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 SEMIANNUAL REPORT JUNE 30, 1998 ROCHESTER FUND MUNICIPALS [LOGO] [LOGO] OPPENHEIMERFUNDS(R) THE RIGHT WAY TO INVEST [logo] ROCHESTER FUND MUNICIPALS CONTENTS 2 President's Letter 3 Performance Update and Portfolio Review 4 An Interview with the Fund's Managers 6 Statement of Investments 29 Statement of Assets & Liabilities 30 Statement of Operations and Statements of Changes in Net Assets 31 Financial Highlights 33 Notes to Financial Statements 38 Officers & Trustees Information & Services (see back cover) REPORT HIGHLIGHTS - -------------------------------------------------------------------------------- o In managing Rochester Fund Municipals, we focused on higher-quality bonds, because we feel the current market doesn't compensate investors for the higher risks associated with lower-rated bonds. o Our continued search for smaller new issues helps provide the Fund with higher income and total return potential than ordinary NYS issues. o The Fund concentrated on the same investment strategies that have proven successful in the past. Our "scavenger hunts" continue to unearth opportunities in areas where other municipal managers typically do not venture. To help reduce volatility we include both premium bonds and mandatory sinking fund issues that shorten effective maturity. o Improving economic conditions throughout New York led us to find creditworthy investments in virtually all areas of the state. TOTAL RETURNS For the 6 month and 1-year periods ended 6/30/98 without sales charges and assuming reinvestment of all dividends into additional shares(1). CLASS A 6 months 1 year -------- ------ 3.22% 9.67% CLASS B 6 months 1 year -------- ------ 2.78% 8.70% CLASS C 6 months 1 year -------- ------ 2.78% 8.76% Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. In reviewing performance and rankings, please remember that past performance does not guarantee future results. Investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. (1) Includes changes in net asset value per share without deducting any sales charges. Such performance would have been lower if sales charges were taken into account. Total returns for the 6-month period are cumulative and are not annualized. DEAR SHAREHOLDER, - -------------------------------------------------------------------------------- [PHOTO] Bridget A. Macaskill President Rochester Fund Municipals As we move further into 1998, we remain impressed by the remarkable resilience of the financial markets. Recent efforts by the United States to help support the Japanese yen have inspired hope that the fallout of the Asian economic crisis can be contained. In general, the U.S. and world markets have continued to build wealth for investors at a virtually unprecedented pace. At OppenheimerFunds, we are pleased to help our fund shareholders participate in the potential rewards of today's markets, but we also recognize that this rate of growth cannot last forever. Because no one can predict exactly when the next correction or bear market might occur, we think it is prudent to continually identify, evaluate and manage the risks that may affect our fund shareholders. We believe that one of the leading risks facing investors today is that stock valuations are at the high end of their historical range, while U.S. corporate earnings growth is slowing. Given these facts, we believe it is unlikely that stocks will sustain the growth rate of the past three years. Stock prices could continue trading near current levels until earnings "catch up," or there could be a market correction. However, we believe that either scenario would be only a temporary pause on the way to potentially greater long-term gains. We are also examining the potential economic effects of the "millennium problem" that may render many computer systems unable to recognize the year 2000 when it arrives. Solving this problem has required companies to divert substantial human and financial resources from their core businesses, possibly constraining global economic growth during 1999 and 2000. For our part, we can report that OppenheimerFunds has made solid progress toward ensuring that our shareholder accounting systems are fully "Year 2000 compliant," and that all shareholder accounts will make a seamless transition into the 21st century. We encourage you to meet with your financial advisor to discuss how a possible market correction or the millennium problem may affect your investments. Together, you can prepare your investment portfolio for the challenges and opportunities of the new century. Sincerely, /s/ BRIDGET A. MACASKILL - ------------------------ Bridget A. Macaskill August 4, 1998 2 Rochester Fund Municipals PERFORMANCE UPDATE - -------------------------------------------------------------------------------- Rochester Fund Municipals has performed well over the past six months, with Class A shares providing a cumulative return of 3.22%, without sales charges.(1) The Fund's positive returns can largely be attributed to successful management of the portfolio's diversity. Over 1,000 issues from all over the state help us to diversify the complete spectrum of risk, not just credit or interest rate risk. ROCHESTER FUND MUNICIPALS CLASS A The Value of $10,000 invested for 5 years (without sales charges) and the Lehman Brothers Municipal Bond Index [GRAPHICAL REPRESENTATION] Rochester Fund Municipals = $13,638 Lehman Brothers Municipal Index = $13,181 6/30/93 - 6/30/98 Results of a hypothetical $10,000 investment in Class A shares on June 30, 1998. The Lehman Brothers Municipal Bond Index is an unmanaged index of a broad range of investment grade municipal bonds which is widely regarded as a measure of the performance of the general municipal bond market. The Index cannot be purchased directly by investors. TOTAL RETURNS(2) For the periods ended 6/30/98 Cumulative Average Annual ----------------- -------------------- NAV MOP NAV MOP --- --- --- --- A SHARES 1-Year 9.67% 4.46% 9.67% 4.46% 5-Year 36.38% 29.90% 6.40% 5.37% 10-Year 132.25% 121.22% 8.79% 8.26% Life (5/15/86) 170.56% 157.71% 8.56% 8.12% B SHARES 1-Year 8.70% 3.70% 8.70% 3.70% Life (3/17/97) 11.76% 7.76% 9.03% 5.99% C SHARES 1-Year 8.76% 7.76% 8.76% 7.76% Life (3/17/97) 11.83% 11.83% 9.08% 9.08% (1) Includes changes in net asset value per share without deducting any sales charges. Such performance is not annualized and would have been lower if sales charges were taken into account. (2) Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. MOP stands for Maximum Offering Price, and calculations for Class A returns at MOP include the maximum initial sales charge of 4.75%. Class B returns at MOP include the applicable contingent deferred sales charge of 5% (1-year) and 4% (life-of-class). Class C returns for the 1-year period include the contingent deferred sales charge of 1%. An explanation of the different performance calculations is in the Fund's prospectus. Class B and C shares are subject to an annual 0.75% asset-based sales charge. NAV stands for Net Asset Value, and returns at NAV do not reflect payment of any sales charge. PORTFOLIO REVIEW(3) - ------------------------------------------------------------------------------- ------ YIELDS ------ For the 30 days ended 6/30/98 STANDARDIZED DIVIDEND YIELD YIELD ------------ -------- CLASS A 4.62% 5.50% CLASS B 3.98% 4.98% CLASS C 3.99% 4.99% Dividend yield (based on last distribution) and standardized yield (based on net investment income for the 30-day period ended 6/30/98) are annualized and divided by period-end offering price. Falling share prices may artificially increase yields. Investors should be aware that this report dated June 30, 1998 does not reflect subsequent dividend reductions effective with the July dividend payment. Investors are encouraged to contact their investment advisor and learn more about the Fund's current standardized and distribution yields. Rochester Fund Municipals is for investors looking for income that's exempt from federal, New York State, and New York City personal income taxes. CREDIT ALLOCATION AAA 26.1% AA 11.7% [PIE CHART REPRESENTATION] A 29.8% BBB 18.9% BB 0.4% B 1.9% Not Rated 11.2% WHAT WE LOOK FOR o Issues that provide high triple tax-free income. o Value-oriented issues with price appreciation potential. o A diversity of issues across the state. o Municipal regions with improving credit quality. TOP 5 SECTORS - -------------------------------------------------------------------------------- Hospital/Healthcare 16.5% - -------------------------------------------------------------------------------- General Obligation 11.1% - -------------------------------------------------------------------------------- Electric Utilities 10.2% - -------------------------------------------------------------------------------- Multi-Family Housing 10.0% - -------------------------------------------------------------------------------- Resource Recovery 8.9% - -------------------------------------------------------------------------------- (3) Portfolio data are as of 6/30/98, and are subject to change. Portfolio data are dollar-weighted based on total market value of investments. Securities rated by a rating organization other than Standard & Poor's Rating Group are included in the equivalent Standard & Poor's rating category. The allocation includes rated securities and those not rated by a national rating organization but to which the ratings given above have been assigned by the Manager for internal purposes as being comparable, in the Manager's judgment, to securities rated by a rating agency in the same category. See page 28 for further explanation. 3 Rochester Fund Municipals AN INTERVIEW WITH YOUR FUND'S MANAGERS - -------------------------------------------------------------------------------- [PHOTO] PORTFOLIO MANAGEMENT TEAM (l to r) Tony Tanner (Vice President, Rochester Division; Assistant Portfolio Manager) Ron Fielding (Senior Vice President, OppenheimerFunds, Inc.; Portfolio Manager and Chief Strategist) By maintaining a disciplined investment approach . . . we try to provide above average yield and total return on behalf of our shareholders. WHAT RECENT EVENTS HAVE WE SEEN IN THE NEW YORK MUNICIPAL BOND MARKET? Thus far, 1998 has been interesting, yet fairly stable. The New York municipal bond market cheapened in early 1998, due in part to the State's largest municipal bond issue yet, for the Long Island Power Authority. Fortunately, the demand for municipal bonds enabled the debt issued to date to become completely absorbed into the market, while maintaining yields that we view as being quite attractive. One particular trend in 1998, which should be of special interest to shareholders of the Fund, is the upgrading of state debt by the nation's rating services. Last February, New York City General Obligation Debt was upgraded to A3 from Baa1 by Moody's Investors Service, and most recently from BBB+ to A- by Standard & Poor's Ratings Services. We've also seen upgrades in debt issued by Niagara Mohawk (from BB+ to BBB+) and Long Island Lighting (from BB+ to A-); issues we have believed in for many years. The difference between the yields offered by high quality and lower quality bonds has continued to be an issue in 1998. As we see that spread continue to narrow, it becomes more and more important for us to conduct our own internal research to determine a smaller, unrated issue's ability to reward the investor with sufficient incremental yield to warrant the assumption of greater risk. WHAT ABOUT INTEREST RATES? Despite the fact that they are the single most influential force on the performance of the Fund, we truly do not try to predict what will happen. Though we have studied economics and finance at the graduate school level, we have learned through years of experience that trying to predict interest rates is a "fool's game"; fine for cocktail party conversation, but not when one's life savings are at risk. By maintaining a disciplined investment approach, which has weathered both rising and falling interest rate environments, we try to provide above average yield and total return on behalf of our shareholders. However, to answer the question, yields on New York municipal bonds have shown little net change during the first six months of the year. The yield curve is very "flat", meaning that there is little difference in yields for different maturities of debt. As we get into the latter part of 1998, a continued low inflationary environment should bode well for interest rates and the municipal bond market. HOW DO YOU MANAGE THE FUND IN THIS ENVIRONMENT? In essence, the same way we always have. While we have always managed the Fund to temper interest rate risk with a portfolio of widely diversified issues, we look to the individual stories behind the issues to determine bond selection and value for the portfolio. It's a micro, or "bottom-up" approach, but we believe that it is where we, as portfolio managers, can best provide added value for our shareholders. For example, it has always been our policy to select individual bonds we believe to be undervalued, and sell bonds in areas that we believe to be overvalued. Our own internal research helps identify what we believe to be a solid financial opportunity, regardless of how the general marketplace views and prices the issue. Our investors should know that we have developed a certain affinity for callable bonds, and have bought them especially when we believe they won't be called. Such issues continue cranking out a lot of income if they pass their call dates without being called, and their prices remain very steady. In addition, callable bonds 4 Rochester Fund Municipals tend to outperform noncallables when interest rate volatility is low--precisely what we have seen this year. We will continue to follow the time-tested investment strategies we have used for years. In each buy/sell decision, we look for individual, often obscure bonds that offer a better risk/reward trade-off than those in the portfolio. In markets that exhibit tight spreads, we find that our strategies of scavenger hunting the secondary markets, looking to pick up odd lots and reducing the Fund's tax exposure become even more important. HOW HAS THE FUND PERFORMED? Rochester Fund Municipals Class A shares have provided total returns of 9.67% and 3.22% without sales charges, for the one-year and six month periods ended June 30, 1998, respectively.(1) In addition, investors should be aware that the Fund's (A Share) per share price (without sales charge) experienced only minor fluctuations these first six months--from $18.67 on December 31, 1997 to $18.71 on June 30, 1998. In addition, in June, the Fund surpassed the $3.5 billion mark, and at this recent quarter end, the portfolio has grown to include over 1,000 individual issues. WHAT THOUGHTS WOULD YOU LIKE TO SHARE WITH THE FUND'S INVESTORS? Our greatest concern is that the strength in the current equity market may cause investors to underweight bonds and bond funds in their portfolios. We all recognize the wonderful past performance of the equity markets, but we fear that higher stock prices have made people inclined to allocate more money to stocks, while these same consumers would buy less of any other item that had risen sharply in price. [PHOTO] Portfolio Management Team (l to r) Dan Loughran (Assistant Vice President, Rochester Division; Senior Research Analyst) Rich Stein (Vice President, Rochester Division; Credit Analysis) Even though our Fund's yield has decreased over the years, you should know that, compared to the very low current inflation rates, current yields are attractive. People often forget that when yields generally were higher, high inflation was significantly reducing their purchasing power. Real interest rates, after subtracting inflation, are in fact currently at very high levels. Today's equity investor is well aware that a P/E ratio of 25 is considered fairly normal in the U.S. equity market, but that means you'll earn 1/25, or about 4%, on your ownership of that company. At month end, Rochester Fund Municipals' Class A dividend yield was 5.50% (30 day standardized yield of 4.62%)(2), and that was tax-free. We know that holding municipal bonds or muni bond funds can be fairly boring in these times, but we continue to believe that investors should consult with their financial advisors to ensure that their investment mix continues to reflect their overall strategy. (1) Includes changes in net asset value per share without deducting any sales charges. Such performance would have been lower if sales charges were taken into account. Past performance is not a guarantee of future investment results. (2) Dividend yield is based on an annualization of the prior monthly distribution and the maximum offering price on 6/30/98. Standardized yield is based on net investment income for the 30-day period ended 6/30/98. Falling net asset values will tend to artificially raise yields. * * * * * Rochester Fund Municipals (Class A Share) has received Morningstar's highest 5-star overall ranking at June 30, 1998. For the 3-year, 5-year and 10-year periods ended 6/30/98, the Fund's star rankings are five stars, four stars and five stars, respectively. 1549, 860 and 349 municipal funds were rated for these periods, respectively.(3) (3) Source: Morningstar, Inc., 6/30/98. Overall star rankings are based on a weighted average of the Fund's 3-, 5- and 10-year rankings. Ten percent of the funds in an investment category receive five stars (highest), 22.5% receive four stars (above average), 35% receive three stars (average), 22.5% receive two stars (below average), and 10% receive one star (lowest). Morningstar, Inc. is a nationally recognized mutual fund rating service. Morningstar proprietary star rankings reflect historical risk-adjusted total return as of June 30, 1998. The rankings are subject to change every month. Rankings are based on past performance, which is no guarantee of future results. Morningstar rankings are calculated from the fund's three-, five-, and ten-year average annual returns in excess of 90-day Treasury bill returns with appropriate fee adjustments, and a risk factor that reflects fund performance below 90-day T-bill returns. 5 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) ==================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES--102.2% NEW YORK--92.8% $ 215,000 Albany County IDA (Upper Hudson Library) 8.750% 05/01/07 $ 225,505 940,000 Albany County IDA (Upper Hudson Library) 8.750 05/01/22 1,011,280 495,512 Albany Hsg. Authority 0.000 10/01/12 (p) 131,008 400,000 Albany IDA (Albany Golf) 7.500 05/01/12 441,232 2,560,000 Albany IDA (Albany Medical Center) 8.250 08/01/04 2,744,883 1,015,000 Albany IDA (Albany Rehab.) 8.375 06/01/23 1,125,331 1,715,000 Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,769,400 1,395,000 Albany IDA (Port of Albany) 7.250 02/01/24 1,526,549 1,770,000 Albany Parking Authority 0.000 11/01/17 651,041 10,070,000 Allegany County IDA (Alfred University) 7.500 09/01/11 11,033,900 1,500,000 Allegany County IDA (Houghton College) 5.250 01/15/24 1,476,120 4,190,000 Amherst IDA (Amherst Rink) 5.650 10/01/22 4,325,295 32,670 Auburn IDA (Wegmans) 7.250 12/01/1998 32,840 1,100,000 Babylon IDA (JFB & Sons Lithographers) 7.625 12/01/06 1,165,032 2,570,000 Babylon IDA (JFB & Sons Lithographers) 8.625 12/01/16 2,766,502 1,330,000 Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,473,893 3,850,000 Batavia Hsg. Authority (Trocaire Place) 8.750 04/01/25 4,054,897 515,000 Batavia Hsg. Authority (Washington Towers) 6.500 01/01/23 537,717 800,000 Battery Park City Authority 5.750 06/01/23 806,600 1,050,000 Battery Park City Authority 5.800 11/01/22 1,111,877 700,000 Battery Park City Authority 10.000 06/01/23 726,775 1,450,000 Bayshore HDC 7.500 02/01/23 1,555,720 215,000 Beacon IDA (Craig House) 9.000 07/01/11 215,030 1,000,000 Bethany Retirement Home 7.450 02/01/24 1,161,720 1,065,000 Blauvelt Volunteer Fire Company 6.250 10/15/17 1,088,856 35,000 Bleeker Terrace HDC 8.100 07/01/01 35,184 45,000 Bleeker Terrace HDC 8.350 07/01/04 45,143 900,000 Bleeker Terrace HDC 8.750 07/01/07 908,343 6,965,000 Brookhaven IDA (Dowling College) 6.750 03/01/23 7,504,370 870,000 Brookhaven IDA (Farber) (b) 6.375(v) 12/01/02 870,000 490,000 Brookhaven IDA (Farber) (b) 6.375(v) 12/01/04 490,000 535,000 Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 588,479 3,220,000 Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,664,457 190,000 Broome County IDA (Industrial Park) 7.550 12/01/00 191,606 195,000 Broome County IDA (Industrial Park) 7.600 12/01/01 196,702 645,000 Broome County IDA (Simulator) 8.250 01/01/02 659,674 600,000 Capital District Youth Center 6.000 02/01/17 640,938 500,000 Carnegie Redevelopment Corp. 7.000 09/01/21 549,775 6,250,000 Castle Rest Residential Health Care Fac. 5.750 08/01/37 6,587,750 1,910,000 Cattaraugus County IDA (Cherry Creek) 9.800 09/01/10 2,117,502 8,465,000 Cattaraugus County IDA (St. Bonaventure University) 8.300 12/01/10 9,262,742 8,600,000 Cayuga County COP (Auburn Hospital) 6.000 01/01/21 9,107,744 1,700,000 Chautauqua County IDA (Jamestown Devel. Corp.) 7.125 11/01/08 1,707,650 3,395,000 Chautauqua County IDA (Jamestown Devel. Corp.) 7.125 11/01/18 3,414,555 685,000 City of Port Jervis (Future Home Tech.) 10.000 11/01/08 709,085 2,255,000 City of Port Jervis (Mercy Hospital) 5.500 11/01/16 2,271,845 5,000 Clifton Park COP (Clifton Commons) 8.500 08/01/08 6,648 3,495,000 Clifton Springs Hospital & Clinic 8.000 01/01/20 3,889,865
6 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 35,000 Cohoes GO 6.200% 03/15/12 $ 35,364 25,000 Cohoes GO 6.200 03/15/13 25,182 25,000 Cohoes GO 6.250 03/15/14 25,260 25,000 Cohoes GO 6.250 03/15/15 25,338 25,000 Cohoes GO 6.250 03/15/16 25,230 595,000 Columbia County IDA (ARC) 7.750 06/01/05 653,274 2,650,000 Columbia County IDA (ARC) 8.650 06/01/18 3,024,127 685,000 Columbia County IDA (Berkshire Farms) 6.900 12/15/04 739,684 1,855,000 Columbia County IDA (Berkshire Farms) 7.500 12/15/14 2,065,320 60,000 Cortland County IDA (Paul Bunyon Products) 8.000 07/01/00 61,298 3,500,000 Dutchess County IDA (Bard College) 7.000 11/01/17 3,915,905 1,800,000 Dutchess County IDA (Merchants Press) (b) 7.950(d) 06/30/02 1,080,000 4,590,000 Dutchess County IDA (Merchants Press) (b) 9.000(d) 06/30/22 2,754,000 1,700,000 Dutchess County Res Rec (Solid Waste) 6.800 01/01/10 1,839,927 1,805,000 Dutchess County Res Rec (Solid Waste) 7.000 01/01/10 1,960,320 1,540,000 Dutchess County Water & Waste 0.000 06/01/25 374,697 1,540,000 Dutchess County Water & Waste 0.000 06/01/26 354,570 1,000,000 Dutchess County Water & Waste 0.000 06/01/27 218,380 3,000,000 Dutchess County Water & Waste 5.375 06/01/19 3,010,350 2,000,000 East Rochester Hsg. Authority (Linden Knoll) 5.350 02/01/38 1,999,900 3,250,000 East Rochester Hsg. Authority (St. John's Meadows) 5.675 08/01/22 3,410,810 4,250,000 East Rochester Hsg. Authority (St. John's Meadows) 5.700 08/01/27 4,487,660 1,885,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/37 1,996,705 4,095,000 East Rochester Hsg. Authority (St. John's Meadows) 5.950 08/01/27 4,296,515 25,000 Elmira HDC 7.500 08/01/07 25,773 3,520,000 Erie County IDA (Affordable Hospitality) 9.250 12/01/15 3,662,419 1,370,000 Erie County IDA (Air Cargo) 8.250 10/01/07 1,426,882 2,380,000 Erie County IDA (Air Cargo) 8.500 10/01/15 2,523,252 100,000 Erie County IDA (Episcopal Church Home) 6.000 02/01/28 101,749 63,000 Erie County IDA (Great Lakes Orthodontic) 12.099 05/01/00 68,128 3,230,000 Erie County IDA (Medaille College) 8.000 12/30/22 3,574,899 1,355,000 Erie County IDA (Mercy Hospital) 6.250 06/01/10 1,397,046 16,565,000 Erie County Water Revenue, 4th Series 0.000 12/01/17 4,127,170 4,245,000 Franklin County SWMA 6.250 06/01/15 4,420,488 160,000 Fulton County IDA (Crossroads Incubator) 8.500 12/15/1998 (a) 163,363 700,000 Geneva IDA (FLCP) 8.250 11/01/04 765,730 1,000,000 Geneva IDA (FLCP) 8.500 11/01/16 1,096,910 2,055,000 Groton Community Health Care Center 7.450 07/15/21 2,404,823 680,000 Hamilton Elderly Hsg. Corp. 11.250 01/01/15 711,457 1,465,000 Herkimer County IDA (Burrows Paper) 7.250 01/01/01 1,509,023 14,440,000 Herkimer County IDA (Burrows Paper) 8.000 01/01/09 15,776,711 6,595,000 Housing NY Corp. 5.500 11/01/20 6,681,790 50,000 Housing NY Corp. 5.500 11/01/20 50,356 990,000 Hudson IDA (Have, Inc.) 8.125 12/01/17 1,072,130 435,000 Hudson IDA (Northside) 9.000 12/01/09 465,259 960,000 Islip IDA (Leeway School) 9.000 08/01/21 1,055,386 50,000 Islip IDA (WJL Realty) 7.800 03/01/03 52,132 100,000 Islip IDA (WJL Realty) 7.850 03/01/04 104,263 100,000 Islip IDA (WJL Realty) 7.900 03/01/05 104,280 500,000 Islip IDA (WJL Realty) 7.950 03/01/10 527,085
7 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 2,000,000 Islip Res Rec 6.500% 07/01/09 $ 2,286,780 2,650,000 Lockport HDC 6.000 10/01/18 2,754,172 21,450,000 Long Island Power Authority 5.500 12/01/29 21,747,297 10,000,000 Long Island Power Authority 5.750 12/01/24 10,517,400 100,000 Lowville GO 7.200 09/15/05 116,061 75,000 Lowville GO 7.200 09/15/07 88,946 100,000 Lowville GO 7.200 09/15/12 121,090 100,000 Lowville GO 7.200 09/15/13 121,604 100,000 Lowville GO 7.200 09/15/14 121,776 5,350,000 Lyons Community Health Initiatives Corp. 6.800 09/01/24 5,913,195 4,640,000 Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 4,942,389 2,495,000 Mechanicsville HDC 6.900 08/01/22 2,614,760 905,000 Middleton IDA (Fleurchem) 8.000 12/01/16 1,005,084 3,740,000 Middleton IDA (Southwinds) 8.375 03/01/18 4,177,692 70,000 Monroe County Airport 7.250 01/01/19 74,198 450,000 Monroe County COP 8.050 01/01/11 475,151 4,260,000 Monroe County IDA (Al Sigl Center) 6.600 12/15/17 4,567,444 1,590,000 Monroe County IDA (Al Sigl Center) 7.250 12/15/15 1,753,643 3,080,000 Monroe County IDA (Brazill Merk) 7.900 12/15/14 3,273,239 900,000 Monroe County IDA (Canal Ponds) 7.000 06/15/13 985,842 10,000 Monroe County IDA (Cohber) 7.550 12/01/01 10,238 10,000 Monroe County IDA (Cohber) 7.650 12/01/02 10,272 10,000 Monroe County IDA (Cohber) 7.700 12/01/03 10,276 170,000 Monroe County IDA (Cohber) 7.850 12/01/09 175,211 2,233,749 Monroe County IDA (Cottrone Devel.) 9.500 12/01/10 2,432,575 345,722 Monroe County IDA (De Carolis) 7.500 01/30/05 345,933 880,000 Monroe County IDA (DePaul CF) 6.450 02/01/14 971,564 1,285,000 Monroe County IDA (DePaul CF) 6.500 02/01/24 1,416,481 405,000 Monroe County IDA (DePaul Properties) 8.300 09/01/02 443,722 4,605,000 Monroe County IDA (DePaul Properties) 8.800 09/01/21 5,075,953 14,565,000 Monroe County IDA (Genesee Hospital) 7.000 11/01/18 15,402,488 1,000,000 Monroe County IDA (Jewish Home) 6.875 04/01/17 1,058,960 4,945,000 Monroe County IDA (Jewish Home) 6.875 04/01/27 5,197,937 1,495,000 Monroe County IDA (Melles Griot) 9.500 12/01/09 1,535,634 2,053,000 Monroe County IDA (Morrell/Morrell) 7.000 12/01/07 2,157,518 500,000 Monroe County IDA (Nazareth College) 5.250 04/01/23 501,480 4,330,000 Monroe County IDA (Piano Works) 7.625 11/01/16 4,789,500 2,625,000 Monroe County IDA (Roberts Wesleyan College) 6.700 09/01/11 2,723,910 3,490,000 Monroe County IDA (RTM Turbine) (b) 7.750 12/01/06 2,443,000 3,060,000 Monroe County IDA (RTM Turbine) (b) 8.000 12/01/11 2,142,000 770,000 Monroe County IDA (RTM Turbine) (b) 8.500 12/01/16 539,000 70,000 Monroe County IDA (West End Business) 6.750 12/01/04 74,450 520,000 Monroe County IDA (West End Business) 6.750 12/01/04 553,056 125,000 Monroe County IDA (West End Business) 6.750 12/01/04 133,645 345,000 Monroe County IDA (West End Business) 8.000 12/01/14 382,025 515,000 Monroe County IDA (West End Business) 8.000 12/01/14 570,270 170,000 Monroe County IDA (West End Business) 8.000 12/01/14 188,244 1,375,000 Monroe County IDA (West End Business) 8.000 12/01/14 1,522,565 285,000 Monroe HDC 7.000 08/01/21 296,055 5,860,000 Montgomery County IDA (Amsterdam) 7.250 01/15/19 6,052,853
8 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 1,015,000 Montgomery County IDA (New Dimensions in Living) 8.900% 05/01/16 $ 1,106,035 10,000,000 MTA IVRC (b) 7.306(f) 07/01/11 10,812,500 1,000,000 MTA Service Contract, Series 8 5.375 07/01/21 1,006,610 1,000,000 MTA Service Contract, Series R 5.500 07/01/12 1,043,800 1,270,000 MTA Service Contract, Series R 5.500 07/01/12 1,325,626 815,000 MTA Service Contract, Series R 5.500 07/01/13 846,964 2,500,000 MTA Service Contract, Series R 5.500 07/01/14 2,586,675 3,320,000 MTA Service Contract, Series R 5.500 07/01/17 3,402,137 4,360,000 MTA Service Contract, Series R 5.500 07/01/17 4,467,866 9,400,000 MTA YCR (b) 7.253(f) 07/01/13 9,799,500 3,000,000 MTA YCR (b) 7.253(f) 07/01/22 3,112,500 5,000,000 MTA, Series C1 5.375 07/01/27 5,104,150 9,690,000 MTA, Series C1 5.500 07/01/22 9,837,869 13,480,000 MTA, Series C1 5.625 07/01/27 13,813,495 70,000 MTA, Series G 5.500 07/01/14 70,016 1,000,000 MTA, Series G 5.500 07/01/15 1,000,320 65,000 MTA, Series G 5.500 07/01/16 65,010 45,000 MTA, Series H 5.500 07/01/15 45,008 802,824 Municipal Assistance Corp. for Troy, NY 0.000 07/15/21 250,449 1,218,573 Municipal Assistance Corp. for Troy, NY 0.000 01/15/22 370,653 2,725,000 Nassau County IDA (ACLDD) 8.125 10/01/22 3,018,265 305,000 Nassau County IDA (RJS Scientific) 8.050 12/01/05 338,248 2,700,000 Nassau County IDA (RJS Scientific) 9.050 12/01/25 3,134,457 1,950,000 Nassau County IDA (Sharp International) 7.375 12/01/07 2,059,824 3,070,000 Nassau County IDA (Sharp International) 7.375 12/01/07 3,241,337 2,610,000 Nassau County IDA (Sharp International) 7.875 12/01/12 2,777,405 1,650,000 Nassau County IDA (Sharp International) 7.875 12/01/12 1,756,359 500,000 Nassau County IDA (Structural Industries) 7.750 02/01/12 568,940 20,000 New Hartford HDC 7.375 01/01/24 21,221 1,515,000 New Hartford Sunset Wood Project 5.950 08/01/27 1,582,463 3,000,000 New Rochelle IDA (CNR) 6.750 07/01/22 3,237,000 4,950,000 Newark/Wayne Community Hospital 5.875 01/15/33 5,151,218 2,365,000 Newark/Wayne Community Hospital 7.600 09/01/15 2,571,110 185,000 Newburgh GO 7.100 09/15/07 197,870 185,000 Newburgh GO 7.100 09/15/08 196,674 180,000 Newburgh GO 7.150 09/15/09 191,275 150,000 Newburgh GO 7.150 09/15/10 159,000 155,000 Newburgh GO 7.200 09/15/11 163,641 155,000 Newburgh GO 7.200 09/15/12 162,832 160,000 Newburgh GO 7.250 09/15/13 168,141 155,000 Newburgh GO 7.250 09/15/14 162,685 2,310,000 Newburgh IDA (ARMA Textile Printers) 7.125 11/01/07 2,413,673 4,880,000 Newburgh IDA (ARMA Textile Printers) 8.000 11/01/17 5,143,764 1,045,000 Niagara County IDA (Maryland Maple) 10.250 11/15/09 1,085,703 1,900,000 Niagara County IDA (Sevenson Hotel) 6.600 05/01/07 1,955,081 715,000 North Babylon Volunteer Fire Company 5.750 08/01/22 752,223 585,000 North Tonawanda HDC 6.800 12/15/07 640,481 3,295,000 North Tonawanda HDC 7.375 12/15/21 3,842,827 270,000 NYC GO 0.000 05/15/11 140,648 4,990,000 NYC GO 0.000 11/15/11 2,534,371
9 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 200,000 NYC GO 0.000% 05/15/12 $ 98,370 40,000 NYC GO 0.000 10/01/12 19,298 1,750,000 NYC GO 0.000(c) 05/15/14 1,435,438 500,000 NYC GO 0.000(c) 08/01/14 397,140 70,000 NYC GO 0.000(c) 08/15/16 (p) 61,156 100,000 NYC GO 0.000(c) 08/01/25 62,542 2,875,000 NYC GO 5.000 08/01/23 2,769,459 1,285,000 NYC GO 5.125 02/01/11 1,301,756 1,250,000 NYC GO 5.125 08/01/13 1,249,938 1,250,000 NYC GO 5.125 08/01/25 1,217,800 2,060,000 NYC GO 5.250 08/01/12 2,098,419 9,465,000 NYC GO 5.250 08/01/20 9,385,115 2,970,000 NYC GO 5.250 08/01/21 2,940,449 5,910,000 NYC GO 5.300 08/01/24 5,897,294 570,000 NYC GO 5.375 08/01/19 574,372 1,170,000 NYC GO 5.375 08/01/27 1,173,042 13,170,000 NYC GO 5.375 11/15/27 13,269,565 85,000 NYC GO 5.500 10/01/18 86,081 4,305,000 NYC GO 5.500 02/15/26 4,377,109 14,515,000 NYC GO 5.500 11/15/37 14,753,481 20,000 NYC GO 5.625 08/01/16 20,588 35,000 NYC GO 5.750 02/01/20 36,504 4,865,000 NYC GO 5.875 08/01/24 5,202,388 2,000,000 NYC GO 5.875 08/01/24 2,116,900 6,000,000 NYC GO 6.000 02/01/11 6,485,940 90,000 NYC GO 6.000 08/01/15 (p) 90,178 10,000 NYC GO 6.000 08/01/15 10,015 50,000 NYC GO 6.000 10/15/16 53,741 40,000 NYC GO 6.000 08/01/19 (p) 40,079 70,000 NYC GO 6.000 02/15/20 74,183 90,000 NYC GO 6.000 05/15/20 98,402 180,000 NYC GO 6.000 05/15/20 (p) 189,454 90,000 NYC GO 6.000 02/15/24 96,242 10,000 NYC GO 6.000 02/01/25 (p) 11,055 665,000 NYC GO 6.000 02/01/25 704,740 8,180,000 NYC GO 6.000 10/01/26 8,810,842 80,000 NYC GO 6.000 10/01/26 (p) 90,237 14,885,000 NYC GO 6.125 02/01/25 16,030,401 3,715,000 NYC GO 6.125 02/01/25 (p) 4,183,684 8,735,000 NYC GO 6.125 08/01/25 9,484,201 15,000 NYC GO 6.250 04/01/21 16,350 55,000 NYC GO 6.250 04/01/21 (p) 62,499 5,765,000 NYC GO 6.250 04/15/27 6,576,770 6,435,000 NYC GO 6.250 04/15/27 (p) 7,006,750 95,000 NYC GO 6.500 08/01/14 108,443 405,000 NYC GO 6.500 08/01/14 (p) 449,591 1,580,000 NYC GO 6.500 08/01/15 1,739,438 420,000 NYC GO 6.500 08/01/15 (p) 479,430 1,170,000 NYC GO 6.600 02/15/10 1,310,903 830,000 NYC GO 6.600 02/15/10 (p) 946,026
10 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 15,580,000 NYC GO 6.625% 02/15/25 (p) $ 17,780,052 420,000 NYC GO 6.625 08/01/25 (p) 482,609 1,580,000 NYC GO 6.625 08/01/25 1,765,713 5,000 NYC GO 7.000 02/01/10 5,063 590,000 NYC GO 7.000 10/01/12 (p) 663,426 35,000 NYC GO 7.000 10/01/12 38,698 25,000 NYC GO 7.000 02/01/18 27,289 10,000 NYC GO 7.000 02/01/20 10,916 75,000 NYC GO 7.000 02/01/20 81,866 575,000 NYC GO 7.000 02/01/20 (p) 637,681 560,000 NYC GO 7.000 02/01/22 611,268 4,040,000 NYC GO 7.000 02/01/22 (p) 4,480,400 875,000 NYC GO 7.100 02/01/09 (p) 973,271 125,000 NYC GO 7.100 02/01/09 137,783 3,525,000 NYC GO 7.100 02/01/10 (p) 3,920,893 475,000 NYC GO 7.100 02/01/10 523,574 210,000 NYC GO 7.100 02/01/11 230,278 1,555,000 NYC GO 7.100 02/01/11 (p) 1,729,642 3,520,000 NYC GO 7.200 02/01/14 (p) 3,926,947 480,000 NYC GO 7.200 02/01/14 527,083 2,465,000 NYC GO 7.200 02/01/15 (p) 2,749,979 335,000 NYC GO 7.200 02/01/15 367,860 6,385,000 NYC GO 7.250 08/15/24 (p) 6,997,322 7,435,000 NYC GO 7.250 08/15/24 8,026,603 300,000 NYC GO 7.400 02/01/02 (p) 332,775 30,000 NYC GO 7.400 02/15/02 33,066 1,825,000 NYC GO 7.500 02/01/03 (p) 2,054,074 175,000 NYC GO 7.500 02/15/03 195,083 240,000 NYC GO 7.500 02/01/16 265,896 2,760,000 NYC GO 7.500 02/01/16 (p) 3,113,363 120,000 NYC GO 7.500 02/01/18 132,948 1,380,000 NYC GO 7.500 02/01/18 (p) 1,556,681 1,705,000 NYC GO 7.500 08/01/19 (p) 1,947,144 160,000 NYC GO 7.500 08/01/19 179,154 6,855,000 NYC GO 7.500 08/01/20 (p) 7,828,547 645,000 NYC GO 7.500 08/01/20 722,213 6,180,000 NYC GO 7.500 08/15/20 (p) 7,298,642 915,000 NYC GO 7.500 08/01/21 (p) 1,044,948 85,000 NYC GO 7.500 08/01/21 95,175 310,000 NYC GO 7.625 02/01/13 344,717 3,535,000 NYC GO 7.625 02/01/13 (p) 4,002,186 20,000 NYC GO 7.625 02/01/14 22,240 250,000 NYC GO 7.625 02/01/14 (p) 283,040 1,500,000 NYC GO 7.750 02/01/10 1,685,415 60,000 NYC GO 7.750 08/15/12 66,423 90,000 NYC GO 7.750 08/15/12 (p) 101,137 6,000,000 NYC GO 7.750 02/01/13 (p) 6,802,680 60,000 NYC GO 7.750 08/15/13 66,423 940,000 NYC GO 7.750 08/15/13 (p) 1,056,316 110,000 NYC GO 7.750 08/15/17 121,605
11 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 20,000 NYC GO 7.750% 08/15/17 (p $ 22,475 40,000 NYC GO 8.000 08/01/18 (p) 45,187 5,000 NYC GO 8.000 08/01/18 5,581 10,000 NYC GO 8.000 08/15/20 (p) 11,310 250,000 NYC GO 8.000 08/15/21 (p) 282,753 5,000 NYC GO 8.250 08/01/12 5,684 25,000 NYC GO 8.250 08/01/13 28,422 5,000 NYC GO 8.250 08/01/13 5,609 1,620,000 NYC GO 8.250 08/01/14 (p) 1,838,182 5,000 NYC GO 8.250 08/01/14 5,617 40,000 NYC GO 8.250 11/15/15 45,310 960,000 NYC GO 8.250 11/15/15 (p) 1,101,629 2,870,000 NYC GO 8.250 11/15/18 (p) 3,293,411 130,000 NYC GO 8.250 11/15/18 (p) 146,818 10,000 NYC GO 8.250 11/15/20 11,294 10,000 NYC GO 8.250 11/15/20 (p) 11,475 16,387,000 NYC GO CARS 8.020(f) 08/12/10 18,681,180 8,387,000 NYC GO CARS 8.020(f) 09/01/11 9,582,148 13,640,000 NYC GO Indexed Flt. 6.080(c) (f) 08/01/14 14,026,830 6,200,000 NYC GO RIBS 7.383(f) 08/01/09 6,874,250 4,200,000 NYC GO RIBS 7.383(f) 07/29/10 4,646,250 5,400,000 NYC GO RIBS 7.481(f) 08/22/13 5,845,500 3,050,000 NYC GO RIBS 7.481(f) 08/01/15 3,297,813 13,150,000 NYC GO RIBS 8.118(f) 08/01/13 14,843,063 15,000,000 NYC GO RITES 8.110(f) 10/01/11 16,666,200 320,058 NYC HDC (Albert Einstein) 6.500 12/15/17 335,373 902,041 NYC HDC (Amsterdam) 6.500 08/15/18 902,546 1,500,978 NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,576,553 1,045,000 NYC HDC (Barclay Avenue) 6.450 04/01/17 1,098,117 4,055,000 NYC HDC (Barclay Avenue) 6.600 04/01/33 4,259,696 2,798,506 NYC HDC (Boulevard) 6.500 08/15/17 2,930,092 480,089 NYC HDC (Bridgeview) 6.500 12/15/17 503,061 1,291,409 NYC HDC (Cadman Plaza) 6.500 11/15/18 1,355,954 505,228 NYC HDC (Cadman Plaza) 7.000 12/15/18 530,848 189,747 NYC HDC (Candia) 6.500 06/15/18 198,881 3,641,207 NYC HDC (Clinton) 6.500 07/15/17 3,812,198 310,252 NYC HDC (Contello III) 7.000 12/15/18 325,923 1,506,452 NYC HDC (Cooper Gram) 6.500 08/15/17 1,577,285 1,149,412 NYC HDC (Court Plaza) 6.500 08/15/17 1,203,917 1,708,352 NYC HDC (Crown Gardens) 7.250 01/15/19 1,795,939 3,663,151 NYC HDC (East Midtown) 6.500 11/15/18 3,841,180 3,510,944 NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,688,984 83,671 NYC HDC (Essex) 6.500 07/15/18 87,827 515,452 NYC HDC (Forest Park) 6.500 12/15/17 539,936 1,673,652 NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,758,473 369,077 NYC HDC (Heywood) 6.500 10/15/17 386,501 4,160,976 NYC HDC (Hudsonview) 6.500 09/15/17 4,356,958 1,176,073 NYC HDC (Janel) 6.500 09/15/17 1,231,466 233,096 NYC HDC (Kings Arms) 6.500 11/15/18 244,746 410,703 NYC HDC (Kingsbridge) 6.500 08/15/17 430,014 12 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 1,256,000 NYC HDC (Leader) 6.500% 03/15/18 $ 1,315,962 1,746,383 NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,835,536 210,126 NYC HDC (Middagh) 6.500 01/15/18 220,130 2,742,722 NYC HDC (Montefiore Hsg. Project) 6.500 10/15/17 2,872,206 50,000 NYC HDC (Multi-Family) 5.850 05/01/25 51,527 1,735,000 NYC HDC (Multi-Family) 5.850 05/01/26 1,789,982 4,390,000 NYC HDC (Multi-Family) 5.850 05/01/26 4,531,665 38,880,000 NYC HDC (Multi-Family) 6.600 04/01/30 41,327,885 30,000 NYC HDC (Multi-Family) 7.300 06/01/10 32,049 1,145,000 NYC HDC (Multi-Family) 7.350 06/01/19 1,221,532 882,432 NYC HDC (New Amsterdam) 6.500 08/15/18 926,306 1,098,007 NYC HDC (Riverbend) 6.500 11/15/18 1,152,885 6,721,013 NYC HDC (Riverside Park) 7.250 11/15/18 7,060,289 480,187 NYC HDC (RNA House) 7.000 12/15/18 504,538 691,728 NYC HDC (Robert Fulton) 6.500 12/15/17 724,827 250,997 NYC HDC (Rosalie Manning) 7.034 11/15/18 263,635 667,310 NYC HDC (Scott Tower) 7.000 12/15/18 701,016 915,051 NYC HDC (Seaview) 6.500 01/15/18 958,616 1,703,695 NYC HDC (Sky View) 6.500 11/15/18 1,788,846 3,190,000 NYC HDC (South Bronx) 8.100 09/01/23 3,382,102 1,736,454 NYC HDC (Stevenson) 6.500 05/15/18 1,819,769 498,313 NYC HDC (Stryckers Bay) 7.034 11/15/18 524,380 377,737 NYC HDC (St. Martin) 6.500 11/15/18 396,616 1,741,685 NYC HDC (Tivoli) 6.500 01/15/18 1,825,216 374,493 NYC HDC (Towers) 6.500 08/15/17 392,251 236,587 NYC HDC (Townhouse) 6.500 01/15/18 247,851 363,588 NYC HDC (Tri-Faith House) 7.000 01/15/19 381,953 1,545,482 NYC HDC (University) 6.500 08/15/17 1,618,769 463,337 NYC HDC (Washington Square) 7.000 01/15/19 486,527 417,920 NYC HDC (West Side) 6.500 11/15/18 438,807 4,686,215 NYC HDC (West Village) 6.500 11/15/13 4,921,041 269,072 NYC HDC (Westview) 6.500 10/15/17 281,890 618,095 NYC HDC (Woodstock Terrace) 7.034 02/15/19 649,216 5,235,000 NYC HDC, Series B 5.875 11/01/18 5,453,980 800,000 NYC Health & Hospital 5.750 02/15/22 833,664 26,500,000 NYC Health & Hospital LEVRRS 6.994(f) 02/15/11 29,050,625 1,035,000 NYC IDA (ALA Realty) 7.500 12/01/10 1,133,190 1,355,000 NYC IDA (ALA Realty) 8.375 12/01/15 1,553,589 870,000 NYC IDA (Allied Metal) 6.375 12/01/14 883,285 1,740,000 NYC IDA (Allied Metal) 7.125 12/01/27 1,765,404 16,685,000 NYC IDA (American Airlines) 6.900 08/01/24 18,590,928 1,795,000 NYC IDA (American Airlines) 7.750 07/01/19 1,863,731 11,445,000 NYC IDA (American Airlines) 8.000 07/01/20 11,897,306 1,255,000 NYC IDA (Amplaco Group, Inc.) 7.250 11/01/08 1,317,650 2,645,000 NYC IDA (Amplaco Group, Inc.) 8.125 11/01/18 2,814,677 530,000 NYC IDA (Amster Novelty) 8.000 12/01/10 526,136 790,000 NYC IDA (Amster Novelty) 8.375 12/01/15 784,581 1,160,000 NYC IDA (Atlantic Veal & Lamb) 8.375 12/01/16 1,261,349 200,000 NYC IDA (BHMS) 8.400 09/01/02 200,762 3,075,000 NYC IDA (BHMS) 8.500 01/01/27 3,449,566 13 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ------------------------------------------------------------------------------------------------------------------------------------ $ 660,000 NYC IDA (BHMS) 8.900% 09/01/11 $ 723,122 1,690,000 NYC IDA (BHMS) 9.200 09/01/21 1,895,555 500,000 NYC IDA (Blood Center) 7.200 05/01/12 (p) 573,685 3,000,000 NYC IDA (Blood Center) 7.250 05/01/22 (p) 3,449,760 29,935,000 NYC IDA (Brooklyn Navy Yard) 5.650 10/01/28 30,280,749 57,860,000 NYC IDA (Brooklyn Navy Yard) 5.750 10/01/36 59,105,726 1,770,000 NYC IDA (CCM) 7.875 12/01/16 1,986,754 1,980,000 NYC IDA (CCM) 8.000 12/01/11 2,202,057 1,500,000 NYC IDA (CNR) 5.800 09/01/26 1,558,005 4,790,000 NYC IDA (College of Aeronautics) 5.500 05/01/28 4,826,931 4,200,000 NYC IDA (Community Hospital of Brooklyn) 6.875 11/01/10 4,252,878 1,700,000 NYC IDA (Display Creations) 9.250 06/01/08 1,710,863 360,000 NYC IDA (Eden II School) 7.750 06/01/04 385,340 2,505,000 NYC IDA (Eden II School) 8.750 06/01/19 2,779,122 10,255,000 NYC IDA (EPG) 7.500 07/30/03 11,264,912 3,705,000 NYC IDA (Friends Seminary School) 7.000 12/01/17 4,034,486 1,000,000 NYC IDA (Fund for NYC Project) 7.625 07/01/10 1,061,800 3,280,000 NYC IDA (Gabrielli Truck Sales) 8.125 12/01/17 3,486,312 1,265,000 NYC IDA (Graphic Artists) 8.250 12/30/23 1,369,337 875,000 NYC IDA (Gutmann Plastics) 7.750 12/01/07 914,813 2,265,000 NYC IDA (Hebrew Academy) 10.000 03/01/21 2,477,480 735,000 NYC IDA (Herbert G. Birch Childhood Project) 7.375 02/01/09 797,982 2,195,000 NYC IDA (Herbert G. Birch Childhood Project) 8.375 02/01/22 2,449,422 240,000 NYC IDA (HiTech Res Rec) 8.750 08/01/00 249,684 695,000 NYC IDA (HiTech Res Rec) 9.250 08/01/08 750,162 410,000 NYC IDA (House of Spices) 9.000 10/15/01 445,588 2,140,000 NYC IDA (House of Spices) 9.250 10/15/11 2,357,766 3,395,000 NYC IDA (Japan Airlines) 6.000 11/01/15 3,639,270 6,040,000 NYC IDA (JBFS) 6.750 12/15/12 6,507,436 1,675,000 NYC IDA (Koenig Iron Works) 8.375 12/01/25 1,818,380 1,000,000 NYC IDA (Lighthouse) 6.500 07/01/22 1,072,480 3,025,000 NYC IDA (Little Red Schoolhouse) 6.750 11/01/18 3,035,436 845,000 NYC IDA (Loehmann's) 9.500 12/31/04 857,345 2,600,000 NYC IDA (L&M Optical Disc) 7.125 11/01/10 2,620,280 3,500,000 NYC IDA (MMC) 7.000 07/01/23 3,766,700 5,550,000 NYC IDA (Nekboh) 9.625 05/01/11 5,921,795 547,083 NYC IDA (Novelty Cord & Tassel) 8.663(v) 12/01/06 550,147 1,040,000 NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,078,709 4,400,000 NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,650,052 3,435,000 NYC IDA (OHEL) 8.250 03/15/23 3,794,988 1,125,000 NYC IDA (Paradise Products) 7.125 11/01/07 1,165,489 4,475,000 NYC IDA (Paradise Products) 8.250 11/01/22 4,704,478 84,874 NYC IDA (Penguin Air Conditioning) 12.222 12/01/1999 88,125 1,785,000 NYC IDA (Petrocelli Electric) 7.250 11/01/07 1,861,523 3,780,000 NYC IDA (Petrocelli Electric) 8.000 11/01/17 3,952,897 1,035,000 NYC IDA (Pop Display) 6.750 12/15/04 1,097,866 2,645,000 NYC IDA (Pop Display) 7.900 12/15/14 2,932,459 815,000 NYC IDA (PRFFP) 7.000 10/01/16 885,587 1,655,000 NYC IDA (Priority Mailers) 9.000 03/01/10 1,806,912 710,000 NYC IDA (Promotional Slideguide) 7.500 12/01/10 775,121
14 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 1,065,000 NYC IDA (Promotional Slideguide) 7.875% 12/01/15 $ 1,182,853 700,000 NYC IDA (Psycho Therapy) 9.625 04/01/10 749,133 220,000 NYC IDA (Sequins International) 8.500 04/30/00 232,157 4,555,000 NYC IDA (Sequins International) 8.950 01/30/16 5,056,050 585,000 NYC IDA (Streamline Plastics) 7.750 12/01/15 630,460 1,275,000 NYC IDA (Streamline Plastics) 8.125 12/01/25 1,391,459 5,115,000 NYC IDA (St. Bernard's School) 7.000 12/01/21 5,615,912 4,140,000 NYC IDA (St. Christoper Ottilie) 7.500 07/01/21 4,518,272 170,000 NYC IDA (Summit School) 7.250 12/01/04 181,358 1,485,000 NYC IDA (Summit School) 8.250 12/01/24 1,626,832 15,050,000 NYC IDA (Terminal One Group Assoc.) 6.000 01/01/19 15,928,920 6,715,000 NYC IDA (Terminal One Group Assoc.) 6.125 01/01/24 7,158,459 240,000 NYC IDA (Ultimate Display) 8.750 10/15/00 256,334 1,910,000 NYC IDA (Ultimate Display) 9.000 10/15/11 2,113,472 1,000,000 NYC IDA (United Nations School) 6.350 12/01/15 1,068,640 1,380,000 NYC IDA (Van Blarcom Closures) 7.125 11/01/07 1,418,957 2,965,000 NYC IDA (Van Blarcom Closures) 8.000 11/01/17 3,065,306 1,125,000 NYC IDA (Visual Display) 7.250 11/01/08 1,131,075 2,375,000 NYC IDA (Visual Display) 8.325 11/01/18 2,394,594 8,000,000 NYC IDA (Visy Paper) 7.950 01/01/28 9,341,360 14,300,000 NYC Municipal Water Finance Authority 5.250 06/15/29 14,305,148 1,200,000 NYC Municipal Water Finance Authority 5.500 06/15/19 1,233,096 65,000 NYC Municipal Water Finance Authority 5.500 06/15/27 67,240 40,000 NYC Municipal Water Finance Authority 5.750 06/15/20 42,092 12,500,000 NYC Municipal Water Finance Authority IRS 6.770(f) 06/15/13 13,156,250 30,000,000 NYC Municipal Water Finance Authority IVRC (b) 7.945(f) 06/15/17 34,125,000 10,000,000 NYC Municipal Water Finance Authority LEVRRS 7.361(f) 06/15/19 10,900,000 21,947,988 NYS Certificate of Lease (b) 5.875 01/02/2023 22,192,927 740,000 NYS COP (BOCES) (b) 7.875 10/01/00 765,893 230,000 NYS COP (Hanson Redevelopment) 8.250 11/01/01 242,754 10,000 NYS Dorm (Bethel Springvale Home) 6.000 02/01/35 10,726 2,330,000 NYS Dorm (Brookdale Hospital) 5.200 02/15/13 2,372,429 1,000,000 NYS Dorm (Brookdale Hospital) 5.200 02/15/13 1,008,630 1,355,000 NYS Dorm (Brookdale Hospital) 5.300 02/15/17 1,359,350 8,435,000 NYS Dorm (Center for Nursing) 5.550 08/01/37 8,754,602 1,100,000 NYS Dorm (Chapel Oaks, Inc.) 5.375 07/01/17 1,111,638 2,855,000 NYS Dorm (Chapel Oaks, Inc.) 5.450 07/01/26 2,893,942 21,180,000 NYS Dorm (City University) 5.250 07/01/25 20,983,873 13,400,000 NYS Dorm (City University) 5.375 07/01/24 13,491,388 20,000 NYS Dorm (Cornell University) 7.375 07/01/30 21,600 605,000 NYS Dorm (Cornwall Hospital) 8.750 07/01/07 606,452 175,000 NYS Dorm (Court Facility) 5.375 05/15/16 176,538 100,000 NYS Dorm (Court Facility) 5.500 05/15/23 100,990 4,750,000 NYS Dorm (Dept. of Health) 5.000 07/01/24 4,546,890 5,000,000 NYS Dorm (Dept. of Health) 5.500 08/15/17 5,139,450 410,000 NYS Dorm (Dept. of Health) 5.500 07/01/20 414,625 525,000 NYS Dorm (Dept. of Health) 5.500 07/01/21 532,576 250,000 NYS Dorm (Dept. of Health) 6.625 07/01/24 288,785 3,750,000 NYS Dorm (Dept. of Health) 7.250 07/01/11 (p) 4,242,038 95,000 NYS Dorm (Dept. of Health) 7.350 08/01/29 (p) 101,890 15 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 265,000 NYS Dorm (Episcopal Health Services) 7.550% 08/01/29 $ 281,764 2,500,000 NYS Dorm (German Masonic Home) 6.000 08/01/36 2,688,850 1,000,000 NYS Dorm (Grace Manor Health Care Facility) 6.150 07/01/18 1,105,690 3,230,000 NYS Dorm (Gurwin Geriatric Home) 5.700 02/01/37 3,390,919 10,285,000 NYS Dorm (Hebrew Hospital) 5.900 08/01/36 10,922,876 125,010,000 NYS Dorm (Insured Hospital) 0.000 08/15/36 16,158,793 4,200,000 NYS Dorm (Insured Mtg. Nursing) 6.125 02/01/36 4,557,000 10,735,000 NYS Dorm (Interfaith Medical Center) 5.300 02/15/19 10,727,593 36,500,000 NYS Dorm (Interfaith Medical Center) 5.400 02/15/28 36,732,505 35,000 NYS Dorm (KMH Homes) 6.950 08/01/31 37,869 4,380,000 NYS Dorm (Lakeside Home) 6.000 02/01/37 4,723,348 25,000 NYS Dorm (Lakeside Memorial Hospital) 6.000 02/01/21 26,592 25,000 NYS Dorm (L.I. Medical Center) 7.750 08/15/27 25,748 7,400,000 NYS Dorm (Menorah Campus) 6.100 02/01/37 8,040,100 20,000 NYS Dorm (Menorah Campus) 7.300 08/01/16 22,139 7,500,000 NYS Dorm (Mental Health) 5.250 02/15/19 7,476,150 7,230,000 NYS Dorm (Methodist Hospital) 6.050 02/01/34 7,910,054 85,000 NYS Dorm (MHMC) 8.625 07/01/10 85,290 3,465,000 NYS Dorm (Millard Hospital) 5.375 02/01/32 3,519,816 2,200,000 NYS Dorm (New York & Presbyterian Hospital) 6.500 08/01/34 2,403,170 2,400,000 NYS Dorm (Niagara Nursing Home) 5.600 08/01/37 2,499,504 4,100,000 NYS Dorm (North General Hospital) 5.200 02/15/15 4,139,319 4,800,000 NYS Dorm (North General Hospital) 5.300 02/15/19 4,796,688 10,700,000 NYS Dorm (NY Downtown Hospital) 5.300 02/15/20 10,699,251 25,000 NYS Dorm (NY Medical College) 6.875 07/01/21 27,436 855,000 NYS Dorm (Park Ridge Facility) 7.850 02/01/29 889,038 12,750,000 NYS Dorm (RGH) RITES (b) 7.435(c)(f) 08/01/33 13,610,625 4,725,000 NYS Dorm (Rosalind) 5.600 02/01/27 4,922,080 600,000 NYS Dorm (Sarah Neumann Home) 5.450 08/01/27 616,308 1,900,000 NYS Dorm (Sarah Neumann Home) 5.500 08/01/37 1,962,852 50,000 NYS Dorm (State University) 0.000 05/15/07 33,193 25,000 NYS Dorm (State University) 6.000 05/15/17 25,497 5,000 NYS Dorm (State University) 6.000 05/15/17 (p) 5,190 50,000 NYS Dorm (State University) 6.000 05/01/22 54,872 225,000 NYS Dorm (State University) 7.000 05/15/16 239,591 9,000,000 NYS Dorm (St. Agnes Hospital) 5.400 02/15/25 9,057,330 3,000,000 NYS Dorm (St. Barnabas Hospital) 5.450 08/01/35 3,071,160 1,500,000 NYS Dorm (St. Clare's Hospital) 5.300 02/15/19 1,498,965 2,970,000 NYS Dorm (St. Clare's Hospital) 5.400 02/15/25 2,988,919 2,580,000 NYS Dorm (St. James Mercy Hospital) 5.400 02/01/38 2,609,799 75,000 NYS Dorm (St. Thomas Aquinas College) 6.250 07/01/14 82,092 5,000 NYS Dorm (St. Vincent Hospital) 7.400 08/01/30 5,526 3,885,000 NYS Dorm (St. Vincent's) 5.300 07/01/18 3,896,966 32,865,000 NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 38,344,253 4,990,000 NYS Dorm (Teresian House) 5.250 07/01/17 4,969,192 50,000 NYS Dorm (UCC) 5.700 07/01/21 51,176 1,700,000 NYS Dorm (Vassar Brothers) 5.375 07/01/25 1,726,248 32,915,000 NYS Dorm (WHMC) 5.300 08/15/21 32,890,972 1,840,000 NYS Environ. (Consolidated Water) 7.150 11/01/14 2,026,282 58,860,000 NYS Environ. (Huntington Res Rec) 7.500 10/01/12 62,087,294 16 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 7,500,000 NYS Environ. (NYS Water Services) 8.375% 01/15/20 $ 8,089,050 6,015,000 NYS Environ. (Occidental Petroleum) 5.700 09/01/28 6,129,887 9,000,000 NYS Environ. (Occidental Petroleum) 6.100 11/01/30 9,515,250 7,000,000 NYS ERDA (Brooklyn Union Gas) RIBS 7.427(f) 07/08/26 7,315,000 7,000,000 NYS ERDA (Brooklyn Union Gas) RIBS 8.812(f) 04/01/20 8,741,250 10,300,000 NYS ERDA (Brooklyn Union Gas) RIBS 9.868(f) 07/01/26 13,557,375 290,000 NYS ERDA (Con Ed) 6.375 12/01/27 310,056 11,040,000 NYS ERDA (Con Ed) 6.375 12/01/27 11,623,906 15,630,000 NYS ERDA (Con Ed) 7.250 11/01/24 15,939,005 35,920,000 NYS ERDA (Con Ed) 7.375 07/01/24 36,368,641 45,000 NYS ERDA (Con Ed) 7.375 07/01/24 45,564 8,040,000 NYS ERDA (Con Ed) 7.500 07/01/25 8,366,906 7,525,000 NYS ERDA (Con Ed) 7.500 01/01/26 7,926,609 4,000,000 NYS ERDA (Con Ed) 7.500 01/01/26 4,213,480 440,000 NYS ERDA (LILCO) 6.900 08/01/22 482,979 845,000 NYS ERDA (LILCO) 6.900 08/01/22 927,540 15,165,000 NYS ERDA (LILCO) 7.150 09/01/19 16,640,706 16,760,000 NYS ERDA (LILCO) 7.150 09/01/19 18,390,916 17,090,000 NYS ERDA (LILCO) 7.150 06/01/20 18,753,028 13,285,000 NYS ERDA (LILCO) 7.150 12/01/20 14,577,763 10,975,000 NYS ERDA (LILCO) 7.150 02/01/22 12,042,977 15,360,000 NYS ERDA (LILCO) 7.150 02/01/22 16,854,682 19,200,000 NYS ERDA (NIMO) 8.875 11/01/25 19,680,000 400,000 NYS ERDA (NYSEG) 5.700 12/01/28 415,280 30,000 NYS ERDA (NYSEG) 5.950 12/01/27 31,662 12,500,000 NYS ERDA (RG&E) 5.950(w) 09/01/33 13,223,875 135,000 NYS ERDA (RG&E) 8.375 12/01/28 139,991 3,555,000 NYS HFA (Children's Rescue) 7.625 05/01/18 3,809,822 2,200,000 NYS HFA (Dominican Village) 6.600 08/15/27 2,362,360 4,205,000 NYS HFA (Fulton Manor) 6.100 11/15/25 4,526,178 1,040,000 NYS HFA (HELP/Bronx) 7.850 05/01/1999 1,062,318 1,080,000 NYS HFA (HELP/Bronx) 7.850 11/01/1999 1,116,644 13,080,000 NYS HFA (HELP/Bronx) 8.050 11/01/05 13,725,367 1,210,000 NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,248,006 9,000 NYS HFA (H&NH) 6.875 11/01/10 9,201 5,000 NYS HFA (H&NH) 6.875 11/01/11 5,111 520,000 NYS HFA (H&NH) 7.000 11/01/17 531,024 500,000 NYS HFA (H&NH) 8.000 11/01/08 546,240 5,000 NYS HFA (Meadow Manor) 7.750 11/01/19 5,070 15,730,000 NYS HFA (Multi-Family) 0.000 11/01/14 6,533,298 14,590,000 NYS HFA (Multi-Family) 0.000 11/01/15 5,696,957 12,695,000 NYS HFA (Multi-Family) 0.000 11/01/17 4,195,317 65,000 NYS HFA (Multi-Family) 5.950 08/15/24 66,892 2,000,000 NYS HFA (Multi-Family) 6.050 08/15/32 2,122,200 1,285,000 NYS HFA (Multi-Family) 6.100 11/15/36 1,373,549 4,700,000 NYS HFA (Multi-Family) 6.125 08/15/38 4,976,313 50,000 NYS HFA (Multi-Family) 6.200 08/15/12 52,794 100,000 NYS HFA (Multi-Family) 6.250 08/15/27 106,395 5,000,000 NYS HFA (Multi-Family) 6.300 08/15/26 5,361,450 4,170,000 NYS HFA (Multi-Family) 6.350 08/15/23 4,502,224
17 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 1,175,000 NYS HFA (Multi-Family) 6.400% 11/15/27 $ 1,268,283 2,905,000 NYS HFA (Multi-Family) 6.500 08/15/24 (p) 3,058,733 255,000 NYS HFA (Multi-Family) 6.500 03/15/25 286,082 9,010,000 NYS HFA (Multi-Family) 6.500 03/15/25 10,417,182 11,980,000 NYS HFA (Multi-Family) 6.700 08/15/25 12,639,140 5,710,000 NYS HFA (Multi-Family) 6.750 11/15/36 6,181,932 75,000 NYS HFA (Multi-Family) 6.950 08/15/12 80,763 2,870,000 NYS HFA (Multi-Family) 6.950 08/15/24 3,036,804 5,350,000 NYS HFA (Multi-Family) 7.050 08/15/24 5,743,546 1,576,000 NYS HFA (Multi-Family) 7.450 11/01/28 1,645,675 2,460,000 NYS HFA (Multi-Family) 7.550 11/01/29 2,571,881 145,000 NYS HFA (Multi-Family) 7.700 03/15/06 (p) 161,413 5,000 NYS HFA (Multi-Family) 7.700 03/15/06 5,516 1,035,000 NYS HFA (Multi-Family) 7.750 11/01/20 1,111,559 50,000 NYS HFA (Multi-Family) 7.850 02/15/30 54,887 15,000 NYS HFA (Non Profit) 6.400 11/01/10 15,325 25,000 NYS HFA (Non Profit) 6.400 11/01/13 25,541 20,000 NYS HFA (Non Profit) 6.600 11/01/08 20,440 25,000 NYS HFA (Non Profit) 6.600 11/01/10 25,552 20,000 NYS HFA (Non Profit) 6.600 11/01/13 20,640 5,000,000 NYS HFA (Phillips Village) 7.750 08/15/17 5,562,900 35,000 NYS HFA (Service Contract) 5.375 03/15/23 35,121 5,600,000 NYS HFA (Service Contract) 5.500 09/15/22 5,698,728 100,000 NYS HFA (Service Contract) 5.500 09/15/22 100,968 5,525,000 NYS HFA (Service Contract) 5.500 03/15/25 5,617,599 25,000 NYS HFA (Service Contract) 6.125 03/15/20 26,442 1,170,000 NYS HFA (Shorehill Hsg.) 7.500 05/01/08 1,184,169 1,395,000 NYS HFA, Series A 6.125 11/01/20 1,510,771 80,000 NYS LGAC 5.500 04/01/23 81,893 810,000 NYS LGSC (SCSB) 7.375 12/15/16 886,707 4,600,000 NYS Medcare (Brookdale Hospital) 6.850 02/15/17 (p) 5,352,744 1,015,000 NYS Medcare (Central Suffolk Hospital) 6.125 11/01/16 1,021,445 500,000 NYS Medcare (Downtown Hospital) 6.700 02/15/12 (p) 577,780 2,255,000 NYS Medcare (Downtown Hospital) 6.800 02/15/20 (p) 2,618,123 45,000 NYS Medcare (H&NH) 5.750 08/15/19 46,507 14,515,000 NYS Medcare (H&NH) 5.800 08/15/22 15,174,562 4,690,000 NYS Medcare (H&NH) 5.850 02/15/33 4,916,152 10,000 NYS Medcare (H&NH) 6.200 08/15/22 10,657 95,000 NYS Medcare (H&NH) 6.200 02/15/23 101,711 60,000 NYS Medcare (H&NH) 6.375 08/15/29 64,798 1,000,000 NYS Medcare (H&NH) 6.375 08/15/33 1,072,640 2,195,000 NYS Medcare (H&NH) 6.500 02/15/34 2,396,282 250,000 NYS Medcare (H&NH) 6.600 02/15/31 273,830 590,000 NYS Medcare (H&NH) 6.650 08/15/32 (p) 657,585 12,230,000 NYS Medcare (H&NH) 6.650 08/15/32 (p) 13,344,887 385,000 NYS Medcare (H&NH) 6.875 02/15/32 427,477 2,615,000 NYS Medcare (H&NH) 6.875 02/15/32 2,852,050 50,000 NYS Medcare (H&NH) 7.250 02/15/24 52,109 4,505,000 NYS Medcare (H&NH) 7.400 11/01/16 4,607,624 5,000 NYS Medcare (H&NH) 7.600 02/15/29 5,221 18 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 5,000 NYS Medcare (H&NH) 7.600% 02/15/29 $ 5,202 3,370,000 NYS Medcare (H&NH) 7.700 02/15/18 3,447,106 15,000 NYS Medcare (H&NH) 8.000 02/15/08 15,368 12,785,000 NYS Medcare (H&NH) 8.000 02/15/27 13,080,717 430,000 NYS Medcare (H&NH) 8.000 02/15/28 440,625 460,000 NYS Medcare (H&NH) 8.875 08/15/27 470,971 1,740,000 NYS Medcare (H&NH) 9.000 02/15/26 1,745,429 3,560,000 NYS Medcare (H&NH) 9.375 11/01/16 3,717,815 2,990,000 NYS Medcare (H&NH) 10.000 11/01/06 3,182,257 22,230,000 NYS Medcare (Insured Mtg. Nursing) 5.900 08/15/33 23,422,195 2,000,000 NYS Medcare (Insured Mtg. Nursing) 6.375 08/15/24 2,186,860 4,000,000 NYS Medcare (Insured Mtg. Nursing) 6.450 08/15/34 4,380,480 70,000 NYS Medcare (Insured Mtg. Nursing) 6.500 11/01/15 76,637 700,000 NYS Medcare (Insured Mtg. Nursing) 6.600 02/15/11 (p) 744,436 15,000 NYS Medcare (Insured Mtg. Nursing) 6.900 08/15/34 (p) 17,494 7,840,000 NYS Medcare (Kingston Hospital) 8.875 11/15/17 7,870,341 630,000 NYS Medcare (Mental Health) 0.000 08/15/18 136,773 11,855,000 NYS Medcare (Mental Health) 5.250 02/15/19 11,865,314 8,000,000 NYS Medcare (Mental Health) 5.250 08/15/23 8,006,960 600,000 NYS Medcare (Mental Health) 5.250 08/15/23 600,522 20,000,000 NYS Medcare (Mental Health) 5.375 02/15/25 20,185,400 250,000 NYS Medcare (Mental Health) 5.500 08/15/24 256,158 70,000 NYS Medcare (Mental Health) 5.900 08/15/22 74,622 190,000 NYS Medcare (Mental Health) 6.500 02/15/19 204,885 5,000 NYS Medcare (Mental Health) 7.300 02/15/21 (p) 5,569 305,000 NYS Medcare (Mental Health) 7.500 02/15/21 334,137 505,000 NYS Medcare (Mental Health) 7.500 02/15/21 (p) 557,899 250,000 NYS Medcare (Mental Health) 7.625 08/15/17 278,775 545,000 NYS Medcare (Mental Health) 7.625 08/15/17 (p) 611,490 35,000 NYS Medcare (Mental Health) 7.750 08/15/11 38,490 60,000 NYS Medcare (Mental Health) 7.750 08/15/11 (p) 66,655 220,000 NYS Medcare (Mental Health) 7.875 08/15/15 225,399 1,725,000 NYS Medcare (Mental Health) 8.875 08/15/07 1,766,279 25,000 NYS Medcare (Montefiore Medical Center) 5.750 02/15/25 26,254 10,000 NYS Medcare (North General Hospital) 7.150 02/15/01 (p) 10,574 4,745,000 NYS Medcare (North General Hospital) 7.350 08/15/09 (p) 5,027,612 2,110,000 NYS Medcare (North General Hospital) 7.400 02/15/19 (p) 2,236,832 10,000 NYS Medcare (North Shore Hospital) 7.200 11/01/20 10,821 25,000 NYS Medcare (Secured Hospital) 6.250 02/15/24 26,633 1,350,000 NYS Medcare (St. Charles Hospital) 6.375 08/15/34 1,484,568 1,650,000 NYS Medcare (St. Charles Hospital) 6.375 02/15/35 1,814,472 10,850,000 NYS Medcare (St. Francis Hospital) 7.625 11/01/21 11,194,271 1,000,000 NYS Medcare (St. Luke's Hospital) 5.700 02/15/29 1,039,340 10,000 NYS Medcare (St. Luke's Hospital) 7.375 02/15/19 10,665 22,000,000 NYS Medcare (St. Luke's Hospital) IVRC (b) 7.522(f) 02/15/29 23,430,000 10,000,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 10,675,000 5,750,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 6,138,125 8,400,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 8,967,000 12,500,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 13,343,750 50,000 NYS Medcare (WHMC) 7.350 08/15/11 (p) 55,763
19 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 5,255,000 NYS Medcare (WHMC) 7.400% 08/15/21 (p) $ 5,868,311 10,000 NYS Power Authority 6.750 01/01/18 10,829 1,000,000 NYS Thruway 0.000 01/01/03 814,470 2,000,000 NYS Thruway 0.000 01/01/04 1,551,340 260,000 NYS Thruway 0.000 01/01/05 191,966 25,000,000 NYS Thruway Inflos 5.845(f) 01/01/24 23,718,750 15,000 NYS UDC 0.000 01/01/03 12,407 900,000 NYS UDC 0.000 01/01/08 568,665 101,270,000 NYS UDC 0.000 01/01/11 50,705,889 85,000 NYS UDC 0.000 01/01/11 42,819 4,080,000 NYS UDC 5.250 01/01/21 4,040,138 10,250,000 NYS UDC 5.375 01/01/23 10,293,870 5,590,000 NYS UDC 5.375 01/01/25 5,623,037 500,000 NYS UDC 5.500 01/01/18 511,645 1,000,000 NYS UDC 5.500 01/01/25 1,031,140 2,000,000 NYS UDC 7.500 01/01/18 (p) 2,203,640 3,500,000 NYS UDC (Correctional Facilities) 5.000 01/01/19 3,376,030 7,020,000 NYS UDC (Correctional Facilities) 5.000 01/01/28 6,722,633 1,265,000 Oneida County IDA (MCC) 8.000 11/01/08 1,348,907 2,825,000 Oneida County IDA (MCC) 8.750 11/01/18 3,012,326 1,690,000 Oneida County IDA (Mohawk Valley Civic Facility) 5.200 02/01/13 1,722,211 10,000 Oneida Healthcare Corp. 7.100 08/01/11 10,843 130,000 Oneida Healthcare Corp. 7.200 08/01/31 141,383 7,820,000 Onondaga County IDA (CGH) 6.625 01/01/18 8,402,668 575,000 Onondaga County IDA (Coltec) 7.250 06/01/08 585,695 750,000 Onondaga County IDA (Coltec) 9.875 10/01/10 781,800 220,000 Onondaga County IDA (Crouse Irving Hospital) 7.800 01/01/03 245,447 430,000 Onondaga County IDA (Gear Motion) 8.400 12/15/01 435,801 1,610,000 Onondaga County IDA (Gear Motion) 8.900 12/15/11 1,709,836 27,850,000 Onondaga County Res Rec 6.875 05/01/06 29,790,588 67,435,000 Onondaga County Res Rec 7.000 05/01/15 73,009,851 1,166,000 Ontario County IDA (Ontario Design) 6.500 11/01/05 1,177,182 22,450,000 Orange County IDA (Glen Arden) 8.875 01/01/25 25,906,402 7,600,000 Orange County IDA (Kingston Manufacturing) 8.000 11/01/17 8,082,372 495,000 Orange County IDA (Mental Retardation Project) 7.800 07/01/11 546,119 3,260,000 Oswego County IDA (Seneca Hill Manor) 5.650 08/01/37 3,400,408 4,750,000 Oswego County IDA (SLRHFP) 5.400 02/01/38 4,813,080 1,600,000 Otsego County IDA (Bassett Healthcare Project) 5.350 11/01/20 1,617,904 1,403,659 Peekskill IDA (Karta) 9.000 07/01/10 1,446,962 1,100,000 Pilgrim Village HDC 6.800 02/01/21 1,136,685 465,000 Port Authority NY/NJ (KIAC) 6.750 10/01/19 513,448 7,255,000 Port Authority NY/NJ (US Airways) 9.000 12/01/06 8,102,239 520,000 Port Authority NY/NJ (US Airways) 9.000 12/01/10 580,726 22,355,000 Port Authority NY/NJ (US Airways) 9.125 12/01/15 25,027,093 45,000 Port Authority NY/NJ, 67th Series 6.875 01/01/25 47,198 220,000 Port Authority NY/NJ, 68th Series 7.250 02/15/25 231,623 680,000 Port Authority NY/NJ, 68th Series 7.250 02/15/25 715,979 70,000 Port Authority NY/NJ, 69th Series 7.125 06/01/25 74,261 85,000 Port Authority NY/NJ, 70th Series 7.250 08/01/25 90,488 15,000 Port Authority NY/NJ, 70th Series 7.250 08/01/25 15,967 20 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 40,000 Port Authority NY/NJ, 71st Series 6.500% 01/15/26 $ 42,416 15,000 Port Authority NY/NJ, 73rd Series 6.750 04/15/26 15,991 70,000 Port Authority NY/NJ, 73rd Series 6.750 04/15/26 74,729 15,000 Port Authority NY/NJ, 74th Series 6.750 08/01/26 16,164 60,000 Port Authority NY/NJ, 76th Series 6.500 11/01/26 64,220 60,000 Portchester CDC (Southport) 7.300 08/01/11 62,376 25,000 Portchester CDC (Southport) 7.375 08/01/22 25,974 1,990,000 Putnam County IDA (Brewster Plastics) 8.500 12/01/16 2,160,901 30,000 Rensselaer County IDA (MMP) 8.500 12/15/02 30,406 25,000 Rensselaer Hsg. Authority (Renwyck) 7.650 01/01/11 27,192 15,000,000 Rensselaer Municipal Leasing Corp. 6.900 06/01/24 16,668,000 45,000 Riverhead HDC 8.250 08/01/10 47,216 20,890,000 Rochester Hsg. Authority (Crossroads) 7.700 01/01/17 22,778,247 6,790,000 Rochester Museum & Science Center 6.125 12/01/15 6,957,781 2,000,000 Rockland County IDA (DC) 6.250 05/01/28 2,000,000 2,090,000 Rockland County IDA (DC) 8.000 03/01/13 2,374,658 1,395,000 Saratoga County IDA (ARC) 8.400 03/01/13 1,545,758 500,000 Schenectady IDA (ASSC) 6.400 05/01/14 541,395 2,655,000 Schenectady IDA (ASSC) 6.450 05/01/24 2,881,445 522,000 Schroon Lake Fire District (b) 7.250 03/01/09 551,467 175,000 Scotia Hsg. Authority (Holyrood House) 7.000 06/01/09 185,950 65,000 SONYMA, 1st Series 0.000 10/01/19 64,017 30,000 SONYMA, 1st Series 0.000 10/01/14 6,637 10,775,000 SONYMA, 2nd Series 0.000 10/01/14 2,322,982 830,000 SONYMA, 6th Series 9.375 04/01/10 856,834 1,255,000 SONYMA, 7th Series GAINS 9.250 10/01/14 1,282,610 450,000 SONYMA, 8th Series A 6.875 04/01/17 458,213 100,000 SONYMA, 8th Series D 8.200 10/01/06 101,628 665,000 SONYMA, 8th Series E 8.100 10/01/17 679,284 360,000 SONYMA, 9th Series A 7.300 04/01/17 362,070 790,000 SONYMA, Series 12 CAB 8.250 04/01/17 809,884 220,000 SONYMA, Series 2 0.000 10/01/14 47,685 25,000 SONYMA, Series 27 6.450 04/01/04 26,609 6,915,000 SONYMA, Series 28 6.450 10/01/20 7,145,062 10,000,000 SONYMA, Series 28 6.650 04/01/22 10,563,600 8,830,000 SONYMA, Series 28 7.050 10/01/23 9,437,681 605,000 SONYMA, Series 30 5.800 10/01/25 621,759 15,000 SONYMA, Series 30-A 4.375 10/01/23 14,747 16,005,000 SONYMA, Series 30-B 6.650 10/01/25 17,075,895 100,000 SONYMA, Series 30-C1 5.850 10/01/25 103,388 15,000 SONYMA, Series 30-C2 5.800 10/01/25 15,482 11,510,000 SONYMA, Series 36-A 6.625 04/01/25 12,391,091 13,620,000 SONYMA, Series 38 RITES (b) 8.186(f) 04/01/25 15,101,175 80,000 SONYMA, Series 40-A 6.350 04/01/21 83,754 7,560,000 SONYMA, Series 40-A 6.700 04/01/25 8,166,161 75,000 SONYMA, Series 40-B 6.400 10/01/12 80,778 5,885,000 SONYMA, Series 40-B 6.600 04/01/25 6,335,144 110,000 SONYMA, Series 42 6.650 04/01/26 119,189 13,605,000 SONYMA, Series 42 6.650 04/01/26 14,689,319 11,990,000 SONYMA, Series 44 7.500 04/01/26 13,076,654
21 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 100,000 SONYMA, Series 46 6.500% 04/01/13 $ 108,423 65,000 SONYMA, Series 46 6.600 10/01/19 70,454 24,525,000 SONYMA, Series 46 6.650 10/01/25 26,592,948 305,000 SONYMA, Series 48 6.100 04/01/25 323,626 7,370,000 SONYMA, Series 50 6.625 04/01/25 8,007,137 920,000 SONYMA, Series 52 6.100 04/01/26 982,220 145,000 SONYMA, Series 52 6.100 04/01/26 154,247 45,000 SONYMA, Series 54 6.200 10/01/26 48,440 25,000 SONYMA, Series 54 6.200 10/01/26 26,812 6,190,000 SONYMA, Series 58 6.400 04/01/27 6,728,840 515,000 SONYMA, Series 60 6.000 10/01/22 545,025 350,000 SONYMA, Series 60 6.050 04/01/26 372,677 1,000,000 SONYMA, Series 61 5.800 10/01/17 1,047,260 9,750,000 SONYMA, Series 63 6.125 04/01/27 10,451,513 10,205,000 SONYMA, Series 65 5.850 10/01/28 10,625,242 3,000,000 SONYMA, Series 67 5.700 10/01/17 3,123,060 11,665,000 SONYMA, Series 67 5.800 10/01/28 12,101,154 200,000 SONYMA, Series 69 5.400 10/01/19 201,708 9,455,000 SONYMA, Series 69 5.500 10/01/28 9,514,945 10,250,000 SONYMA, Series 71 5.400 04/01/29 10,267,938 1,845,000 SONYMA, Series BB-2 7.950 10/01/15 1,897,121 35,000 SONYMA, Series EE-1 8.000 10/01/10 35,361 95,000 SONYMA, Series EE-2 7.450 10/01/10 99,025 40,000 SONYMA, Series EE-2 7.500 04/01/16 41,718 260,000 SONYMA, Series EE-3 7.700 10/01/10 274,108 15,000 SONYMA, Series EE-3 7.750 04/01/16 15,821 95,000 SONYMA, Series EE-4 7.750 10/01/10 100,333 385,000 SONYMA, Series HH-2 7.700 10/01/09 398,983 40,000 SONYMA, Series HH-2 7.850 04/01/22 41,569 260,000 SONYMA, Series HH-3 7.875 10/01/09 273,213 515,000 SONYMA, Series HH-3 7.950 04/01/22 541,286 20,000 SONYMA, Series HH-4 8.050 04/01/22 21,112 100,000 SONYMA, Series II 0.000 04/01/05 62,509 90,000 SONYMA, Series II 0.000 04/01/06 52,016 100,000 SONYMA, Series II 0.000 10/01/07 51,178 170,000 SONYMA, Series II 0.000 04/01/08 83,623 120,000 SONYMA, Series II 0.000 10/01/08 56,761 180,000 SONYMA, Series II 0.000 10/01/09 78,689 455,000 SONYMA, Series JJ 7.500 10/01/17 476,358 75,000 SONYMA, Series KK 7.650 04/01/19 77,927 285,000 SONYMA, Series KK 7.800 10/01/20 297,306 260,000 SONYMA, Series MM-1 7.500 04/01/13 271,778 25,000 SONYMA, Series MM-1 7.750 10/01/05 26,109 75,000 SONYMA, Series MM-1 7.950 10/01/21 80,533 100,000 SONYMA, Series MM-2 7.700 04/01/05 104,130 1,655,000 SONYMA, Series MM-2 7.700 04/01/13 1,681,017 60,000 SONYMA, Series NN 7.550 10/01/17 62,956 5,000 SONYMA, Series OO 7.900 10/01/11 5,179 20,000 SONYMA, Series QQ 7.700 10/01/12 20,919 105,000 SONYMA, Series RR 7.700 10/01/10 111,011 22 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 80,000 SONYMA, Series RR 7.750% 10/01/17 $ 84,491 5,000 SONYMA, Series TT 6.950 10/01/02 5,270 70,000 SONYMA, Series UU 7.150 10/01/22 73,140 2,760,000 SONYMA, Series UU 7.750 10/01/23 2,928,857 115,222,000 SONYMA, Series VV 0.000 10/01/23 18,031,091 195,000 SONYMA, Series VV 7.375 10/01/11 208,457 725,000 Suffolk County GO 6.375 11/01/16 801,872 15,000 Suffolk County GO 6.750 08/01/10 15,338 425,000 Suffolk County IDA (Community Program Ctr. of L.I.) 7.250 11/01/07 447,908 1,825,000 Suffolk County IDA (Community Program Ctr. of L.I.) 8.250 11/01/22 1,938,150 790,000 Suffolk County IDA (Devel. Disabilities) 7.375 03/01/03 827,170 9,675,000 Suffolk County IDA (Devel. Disabilities) 8.750 03/01/23 11,024,082 2,000,000 Suffolk County IDA (Dowling College) 6.625 06/01/24 2,111,900 2,870,000 Suffolk County IDA (Dowling College) 6.700 12/01/20 3,084,820 950,000 Suffolk County IDA (Dowling College) 8.250 12/01/20 (p) 1,052,125 445,000 Suffolk County IDA (Fil-Coil) 9.000 12/01/15 453,900 1,060,000 Suffolk County IDA (Fil-Coil) 9.250 12/01/25 1,083,659 3,860,000 Suffolk County IDA (HFAS) 6.650 11/01/17 3,888,564 8,545,000 Suffolk County IDA (Huntington Res Rec) 5.550(w) 10/01/04 8,843,990 9,180,000 Suffolk County IDA (Huntington Res Rec) 5.650(w) 10/01/05 9,567,580 9,875,000 Suffolk County IDA (Huntington Res Rec) 5.750(w) 10/01/06 10,383,168 10,615,000 Suffolk County IDA (Huntington Res Rec) 5.800(w) 10/01/07 11,186,193 11,410,000 Suffolk County IDA (Huntington Res Rec) 5.850(w) 10/01/08 12,087,412 12,265,000 Suffolk County IDA (Huntington Res Rec) 5.950(w) 10/01/09 13,104,049 13,190,000 Suffolk County IDA (Huntington Res Rec) 6.000(w) 10/01/10 14,096,153 14,170,000 Suffolk County IDA (Huntington Res Rec) 6.150(w) 10/01/11 15,257,689 17,155,000 Suffolk County IDA (Huntington Res Rec) 6.250(w) 10/01/12 18,533,061 190,000 Suffolk County IDA (Marbar Assoc.) 8.300 03/01/08 190,608 190,000 Suffolk County IDA (Marbar Assoc.) 8.300 03/01/09 190,608 250,000 Suffolk County IDA (Microwave Power) 7.750 06/30/02 263,453 4,320,000 Suffolk County IDA (Microwave Power) 8.500 06/30/22 4,609,267 715,000 Suffolk County IDA (OBPWC) 7.500 11/01/22 784,863 1,670,000 Suffolk County IDA (Rimland Facilities) 6.375(v) 12/01/09 1,664,990 1,365,000 Suffolk County IDA (Wireless Boulevard Realty) 7.875 12/01/12 1,454,653 4,005,000 Suffolk County IDA (Wireless Boulevard Realty) 8.625 12/01/26 4,346,186 3,030,000 Sunnybrook EHC 11.250 12/01/14 3,198,923 1,990,000 Syracuse Hsg. Authority (Seneca Heights) 7.500 12/01/07 2,027,770 4,720,000 Syracuse Hsg. Authority (Seneca Heights) 8.500 12/01/17 4,818,318 9,590,000 Syracuse Hsg. Authority, Series A 5.800 08/01/37 10,184,292 625,000 Syracuse Hsg. Authority, Series B 7.500 08/01/10 645,713 550,000 Syracuse IDA (Anoplate Corp.) 7.250 11/01/07 579,475 2,195,000 Syracuse IDA (Anoplate Corp.) 8.000 11/01/22 2,313,640 43,990,000 Syracuse IDA (James Square) 0.000 08/01/25 11,038,851 660,000 Syracuse IDA (Piscitell Stone) 8.400 12/01/11 709,790 980,000 Syracuse IDA (Rockwest Center II) 7.625 12/01/10 1,037,105 1,470,000 Syracuse IDA (Rockwest Center II) 8.625 12/01/15 1,630,157 1,150,000 Syracuse IDA (Rockwest Center I) 8.000 06/01/13 1,229,615 3,770,000 Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/18 (p) 4,191,411 3,750,000 Tompkins County IDA (Ithacare Center) 6.200 02/01/37 4,100,250 50,000 Tompkins County IDA (Kendall at Ithaca) 7.250 06/01/03 51,172 23 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 2,790,000 Tompkins County IDA (Kendall at Ithaca) 7.875% 06/01/15 $ 2,998,385 5,715,000 Tompkins County IDA (Kendall at Ithaca) 7.875 06/01/24 6,116,879 250,000 Tompkins Healthcare Corp. 10.800 02/01/07 306,758 45,000 Tompkins Healthcare Corp. 10.800 02/01/28 59,669 505,000 Tonawanda Senior Citizens Hsg. 7.875 02/01/11 522,933 75,000 Tupper Lake HDC 8.125 10/01/10 75,194 1,000,000 UCP/HCA of Chemung County 6.600 08/01/22 1,124,350 4,870,000 UFA Devel. Corp. (Loretto-Utica Corp.) 5.950 07/01/35 5,160,544 445,000 Ulster County IDA (Brooklyn Bottling) 7.800 06/30/02 467,682 1,915,000 Ulster County IDA (Brooklyn Bottling) 8.600 06/30/22 2,056,787 2,250,000 Ulster County Res Rec 6.000 03/01/14 2,359,845 2,470,000 Union Hsg. Authority (Methodist Homes) 7.625 11/01/16 2,751,432 105,000 Union Hsg. Authority (Methodist Homes) 8.050 04/01/19 107,388 110,000 Union Hsg. Authority (Methodist Homes) 8.150 04/01/00 115,262 120,000 Union Hsg. Authority (Methodist Homes) 8.250 04/01/01 128,965 150,000 Union Hsg. Authority (Methodist Homes) 8.350 04/01/02 165,131 2,010,000 Union Hsg. Authority (Methodist Homes) 8.500 04/01/12 2,272,988 23,140,000 United Nations Devel. Corp., Series B 5.600 07/01/26 23,228,163 13,450,000 United Nations Devel. Corp., Series C 5.600 07/01/26 13,501,245 100,000 Utica GO 5.900 12/01/02 100,152 580,000 Utica GO 6.000 01/15/06 574,275 560,000 Utica GO 6.250 01/15/07 560,896 25,000 Utica Senior Citizen Hsg. Corp. 0.000 07/01/02 17,154 3,410,000 Utica Senior Citizen Hsg. Corp. 0.000 07/01/26 296,909 20,000 Valley Health Devel. Corp. 7.850 08/01/35 22,220 435,000 Valley Health Devel. Corp. 11.300 02/01/07 522,544 175,000 Valley Health Devel. Corp. 11.300 02/01/23 209,818 950,000 Vigilant EHL (Thomatson) 7.500 11/01/12 1,027,302 8,440,000 Warren & Washington Counties IDA (Res Rec) 8.000 12/15/12 8,544,318 8,535,000 Warren & Washington Counties IDA (Res Rec) 8.200 12/15/10 8,687,520 8,965,000 Warren & Washington Counties IDA (Res Rec) 8.200 12/15/10 9,125,205 100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/03 101,865 95,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/04 96,772 95,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/05 96,772 100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/06 101,865 100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/07 101,865 100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/08 101,865 100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/09 101,865 385,000 Wayne County IDA (ARC) 7.250 03/01/03 403,569 2,925,000 Wayne County IDA (ARC) 8.375 03/01/18 3,244,498 1,870,000 Westchester County IDA (BAH) 8.375 12/01/25 2,171,313 1,407,600 Westchester County IDA (Clearview School) 9.375 01/01/21 1,580,327 2,220,000 Westchester County IDA (JBFS) 6.750 12/15/12 2,390,896 1,560,000 Westchester County IDA (JDAM) 6.750 04/01/16 1,683,380 1,800,000 Westchester County IDA (Lawrence Hospital) 5.125 04/01/18 1,754,514 65,000 Westchester County IDA (Westchester Airport) 5.950 08/01/24 66,584 1,915,000 Yates County IDA (Keuka College) 8.750 08/01/15 2,271,420 1,095,000 Yates County IDA (Keuka College) 9.000 08/01/11 1,227,791 1,000,000 Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/03 1,065,290 3,270,000 Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,710,469 24 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 2,200,000 Yonkers IDA (St. Joseph's Hospital), Series A 6.150% 03/01/15 $ 2,219,184 2,100,000 Yonkers IDA (St. Joseph's Hospital), Series B 6.150 03/01/15 2,118,312 1,000,000 Yonkers IDA (St. Joseph's Hospital), Series C 6.200 03/01/20 1,008,700 350,000 Yonkers IDA (Westchester School) 7.375 12/30/03 370,472 3,375,000 Yonkers IDA (Westchester School) 8.750 12/30/23 3,780,304 860,000 Yonkers Parking Authority 7.750 12/01/04 923,115 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Possessions--9.4% 400,000 American Samoa Power Authority 6.800 09/01/00 419,660 400,000 American Samoa Power Authority 6.850 09/01/01 427,420 400,000 American Samoa Power Authority 6.900 09/01/02 434,228 500,000 American Samoa Power Authority 6.950 09/01/03 550,480 500,000 American Samoa Power Authority 7.000 09/01/04 557,530 800,000 American Samoa Power Authority 7.100 09/01/01 860,192 800,000 American Samoa Power Authority 7.200 09/01/02 876,952 5,375,000 Guam Airport Authority, Series B 6.600 10/01/10 5,885,679 60,730,000 Guam Airport Authority, Series B 6.700 10/01/23 66,541,254 2,995,000 Guam Economic Devel. Authority 9.375(d) 11/01/18 2,921,473 2,540,000 Guam Economic Devel. Authority 9.500 11/01/18 2,584,755 10,000 Guam Power Authority 6.300 10/01/22 10,636 450,000 Guam Power Authority 6.625 10/01/14 499,136 4,780,000 Guam Power Authority 6.750 10/01/24 5,333,811 1,010,034 Puerto Rico Dept. of Corrections Equipment Lease (b) 8.000 04/17/03 1,049,435 17,800,000 Puerto Rico Electric LEVRRS 8.153(f) 07/01/23 20,737,000 7,240,000 Puerto Rico GO 5.000 07/01/26 7,012,085 9,150,000 Puerto Rico GO 5.000 07/01/27 8,870,834 30,000 Puerto Rico GO 5.875 07/01/18 32,405 5,000,000 Puerto Rico GO 5.375 07/01/25 5,085,650 1,600,000 Puerto Rico GO RITES (b) 7.890(f) 07/01/22 1,812,000 40,250,000 Puerto Rico GO YCN 8.124(f) 07/01/20 45,130,313 1,000,000 Puerto Rico GO YCN (b) 8.063(f) 07/01/15 1,158,750 6,766,263 Puerto Rico Health Dept. Municipal Lease (b) 7.438 03/26/03 6,949,967 350,000 Puerto Rico HFA 6.250 04/01/29 369,747 8,690,000 Puerto Rico HFC 0.000 08/01/26 1,282,123 10,000 Puerto Rico HFC 7.300 10/01/06 10,540 210,000 Puerto Rico HFC 7.500 10/01/15 222,025 5,240,000 Puerto Rico HFC 7.500 04/01/22 5,540,042 95,000 Puerto Rico HFC 7.650 10/15/22 100,841 25,000 Puerto Rico HFC 7.800 10/15/21 25,533 1,000,000 Puerto Rico Highway & Transportation Authority 5.500 07/01/17 1,024,790 2,520,000 Puerto Rico IME (Upjohn) 7.500 12/01/23 2,629,292 672,600 Puerto Rico Industrial Commission Municipal Lease (b) 8.000 03/26/03 700,042 1,215,000 Puerto Rico Infrastructure Authority, Series A 7.500 07/01/09 1,242,605 660,000 Puerto Rico Infrastructure Authority, Series A 7.750 07/01/08 675,134 165,000 Puerto Rico Infrastructure Authority, Series A 7.900 07/01/07 168,803 5,000 Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5,130 5,250,000 Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,747,228 208,424 Puerto Rico Medical Services Municipal Lease (b) 7.300 02/27/03 214,133 802,650 Puerto Rico Medical Services Municipal Lease (b) 7.500 04/01/03 829,314 171,146 Puerto Rico Municipality of Rio Grande Vehicle Lease (b) 9.000 01/23/03 182,212 20,000 Puerto Rico Port Authority 7.300 07/01/07 20,034 25 Rochester Fund Municipals
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited) =================================================================================================================================== Face Amount Description Coupon Maturity Market Value - ----------------------------------------------------------------------------------------------------------------------------------- $ 7,000,000 Puerto Rico Public Bldgs. Authority Indexed Flt. 6.050% (c)(f) 07/01/16 $ 7,375,620 427,962 Puerto Rico State Courts Municipal Lease (b) 8.000 03/26/03 445,718 16,550,000 Puerto Rico Telephone Authority RIBS 6.996(f) 01/16/15 17,646,438 15,000,000 Puerto Rico Telephone Authority RIBS (b) 8.200(f) 01/01/20 16,668,750 500,000 Puerto Rico TEMEC (Mennonite Hospital) 5.625 07/01/17 511,615 985,000 Puerto Rico TEMEC (Mennonite Hospital) 5.625 07/01/27 1,003,518 3,000,000 Puerto Rico TEMEC (Mennonite Hospital) 6.500 07/01/26 3,257,460 3,343,091 Puerto Rico/Family Dept. Municipal Lease (b) 12.725 08/12/03 3,847,363 1,205,000 University of V. I. 7.250 10/01/04 1,308,196 3,570,000 University of V. I. 7.700 10/01/19 4,099,859 5,175,000 University of V. I. 7.750 10/01/24 5,956,736 358,000 V. I. GO (Hugo Insurance Claims Program) 7.750 10/01/06 393,249 70,000 V. I. HFA 6.450 03/01/16 74,579 25,000 V. I. HFA 8.100 12/01/18 25,960 1,670,000 V. I. Port Authority (CEK Airport) 8.100 10/01/05 1,716,125 1,000,000 V. I. Public Finance Authority 5.500 10/01/22 1,012,910 7,500,000 V. I. Public Finance Authority 5.625 10/01/25 7,647,075 4,500,000 V. I. Public Finance Authority 6.000 10/01/22 4,603,455 1,135,000 V. I. Public Finance Authority 7.125 10/01/04 (p) 1,259,248 28,750,000 V. I. Public Finance Authority 7.250 10/01/18 (p) 32,763,213 1,735,000 V. I. Public Finance Authority 7.375 10/01/10 (p) 2,045,461 1,515,000 V. I. Water & Power Authority 5.300 07/01/21 1,508,016 5,945,000 V. I. Water & Power Authority 7.400 07/01/11 6,546,812 6,850,000 V. I. Water & Power Authority 7.600 01/01/12 7,817,289 5,200,000 V. I. Water & Power Authority 8.500 01/01/10 5,456,568 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $3,472,432,860)--102.2% 3,704,170,490 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS--(2.2%) (80,231,602) --------------- NET ASSETS--100.0% $ 3,623,938,888 ===============
(a) Date of mandatory put; final maturity 12/15/2008. (b) Illiquid security--See Note 5 of Notes to Financial Statements. (c) Security will convert to a fixed coupon at a date prior to maturity. (d) Non-income accruing security--Issuer is in default of interest payment. (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 06/30/98. (p) This issue has been prerefunded to an earlier date. (v) Variable rate security that fluctuates as a percentage of prime rate. (w) When-issued security--See Note 3 of Notes to Financial Statements. See accompanying Notes to Financial Statements. 26 Rochester Fund Municipals 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 MMC Marymount Manhattan College Developmental Disabilities MMP Millbrook Millwork Project ARC Association of Retarded Citizens MTA Metropolitan Transit Authority ASSC Annie Schaffer Senior Center NIMO Niagara Mohawk Power Corporation BAH Beth Abraham Hospital NJ New Jersey BHMS Brooklyn Heights Montessori School NY New York BOCES Board of Cooperative Educational Services NYC New York City CAB Capital Appreciation Bond NYS New York State CARS Complimentary Auction Rate Security NYSEG New York State Electric and Gas CCM Comprehensive Care Management OBPWC Ocean Bay Park Water Corporation CDC Community Development Corporation PRFFP Puerto Rican Family Foundation Project CEK Cyril E. King Res Rec Resource Recovery Facility CF Community Facilities RGH Rochester General Hospital CGH Community General Hospital RG&E Rochester Gas and Electric CNR College of New Rochelle RIBS Residual Interest Bonds Con Ed Consolidated Edison Company RITES Residual Interest Tax Exempt Security COP Certificate of Participation SCSB Schuyler Community Services Board DC Dominican College SLRHFP St. Luke Residential Healthcare Facility Project EHC Elderly Housing Corporation SONYMA State of New York Mortgage Agency EHL Engine Hook and Ladder SWMA Solid Waste Management Authority EPG Elmhurst Parking Garage TEMEC Tourist, Educational, Medical and ERDA Energy Research and Development Authority Environmental Control FLCP Finger Lakes Cerebral Palsy UCC Upstate Community Colleges GAINS Growth and Income Securities UCP/HCA United Cerebral Palsy and Handicapped GO General Obligation Children's Association HDC Housing Development Corporation UDC Urban Development Corporation HELP Homeless Economic Loan Program UFA Utica Free Academy HFA Housing Finance Agency V. I. United States Virgin Islands HFAS Huntington First Aid Squad WHMC Wyckoff Heights Medical Center HFC Housing Finance Corporation WWH Wyandach/Wheatley Heights H&NH Hospital and Nursing Home YCN Yield Curve Note IDA Industrial Development Authority YCR Yield Curve Receipt IME Industrial, Medical and Environmental 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 LGAC Local Government Assistance Corporation LGSC Local Government Services Corporation LILCO Long Island Lighting Corporation L.I. Long Island MCC Mobile Climate Control MHMC Montefiore Hospital and Medical Center
27 Rochester Fund Municipals INDUSTRY CONCENTRATIONS June 30, 1998 (Unaudited) ================================================================================ Distribution of investments by industry, as a percentage of total investments at value, is as follows: Industry Market Value Percent - -------------------------------------------------------------------------------- Hospital/Healthcare $611,360,552 16.5% General Obligation 412,485,546 11.1 Electric Utilities 377,892,887 10.2 Multi-Family Housing 371,239,546 10.0 Resource Recovery 328,396,079 8.9 Lease Rental 258,962,862 7.0 Single-Family Housing 253,856,769 6.9 Marine/Aviation Facilities 162,849,671 4.4 Water Utilities 106,088,043 2.9 Non Profit Organization 104,895,030 2.8 Higher Education 104,696,668 2.8 Manufacturing, Non-Durable Goods 97,228,866 2.6 Highways/Railways 95,641,364 2.6 Adult Living Facilities 76,981,581 2.1 Education 65,801,278 1.8 Corporate Backed 61,620,759 1.7 Manufacturing, Durable Goods 61,182,909 1.6 Sales Tax Revenue 52,120,899 1.4 Other 100,869,181 2.7 -------------- ----- $3,704,170,490 100.0% ============== ===== SUMMARY OF RATINGS June 30, 1998 (Unaudited) - -------------------------------------------------------------------------------- Distribution of investments by rating category, as a percentage of total investments at value, is as follows: Rating Percent ------------------------------------------------- AAA 26.1% AA 11.7 A 29.8 BBB 18.9 BB 0.4 B 1.9 CCC 0.0 CC 0.0 C 0.0 Not Rated 11.2 ----- 100.0% ===== Bonds rated by any nationally recognized statistical rating organization are included in the equivalent Standard & Poor's rating category. As a general matter, unrated bonds may be backed by mortgage liens or equipment liens on the underlying property, and also may be guaranteed. Bonds which are backed by a letter of credit or by other financial institutions or agencies may be assigned an investment grade rating by the Manager, which reflects the quality of the guarantor, institution or agency. Unrated bonds may also be assigned a rating when the issuer has rated bonds outstanding with comparable credit characteristics, or when, in the opinion of the Manager, the bond itself possesses credit characteristics which allow for rating. The unrated bonds in the portfolio are predominantly smaller issuers which have not 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 Trustees are included in the "Not Rated" category. For further information see "Credit Quality" in the Prospectus. 28 Rochester Fund Municipals
STATEMENT OF ASSETS AND LIABILITIES June 30, 1998 (Unaudited) ============================================================================================== ASSETS Investments, at value (cost $3,472,432,860--see accompanying statement $3,704,170,490 -------------------------------------------------------------------------------------------- Receivables: Interest 58,268,059 Shares of beneficial interest sold 20,369,807 Investments sold 2,905,128 -------------------------------------------------------------------------------------------- Other 350,741 -------------- Total assets 3,786,064,225 -------------- LIABILITIES Bank overdraft 3,278,325 -------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 141,575,730 Note payable to bank (interest rate 7.125% at 6/30/98)--Note 6 6,900,000 Shares of beneficial interest redeemed 6,115,808 Dividends 3,195,219 Trustees' fees--Note 1 516,422 Other 543,833 -------------- Total liabilities 162,125,337 -------------- NET ASSETS $3,623,938,888 ============== ============================================================================================== COMPOSITION OF NET ASSETS Paid-in capital $3,464,401,340 ------------------------------------------------------------------------------------------- Excess of distributions over net investment income (4,776,324) ------------------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (67,423,758) ------------------------------------------------------------------------------------------- Net unrealized appreciation on investments--Note 3 231,737,630 -------------- Net assets $3,623,938,888 ============== ============================================================================================== NET ASSET VALUE PER SHARE CLASS A SHARES: Net asset value and redemption price per share (based on net assets of $3,176,445,829 and 169,755,161 shares of beneficial interest outstanding) $18.71 Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $19.64 - ---------------------------------------------------------------------------------------------- CLASS B SHARES: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $334,326,994 and 17,885,018 shares of beneficial interest outstanding) $18.69 - ---------------------------------------------------------------------------------------------- CLASS C SHARES: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $113,166,065 and 6,052,636 shares of beneficial interest outstanding) $18.70
See accompanying Notes to Financial Statements. 29 Rochester Fund Municipals
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1998 (Unaudited) ==================================================================================================================================== INVESTMENT INCOME EXPENSES (CONTINUED) Interest $104,415,480 Custodian fees and expenses $114,022 EXPENSES ------------ Management fees--Note 4 7,767,963 Trustees' fees and expenses--Note 1 51,572 Distribution and service plan Legal and auditing fees 37,940 fees--Note 4: Other 92,240 Class A 2,234,930 Interest 283,267 Class B 1,225,744 ------------ Class C 389,743 Total expenses 13,881,291 Transfer and shareholder servicing ------------ agent fees--Note 4: NET INVESTMENT INCOME 90,534,189 Class A 744,888 ------------ Class B 73,297 REALIZED AND UNREALIZED GAIN (LOSS) Class C 17,882 Net realized loss on investments (2,451,118) Accounting service fees--Note 4 496,927 Net change in unrealized appreciation Registration and filing fees 198,128 or depreciation on investments 15,806,589 Shareholder reports 152,748 ------------ Net realized and unrealized gain 13,355,471 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $103,889,660 ============ See accompanying Notes to Financial Statements.
Six Months Ended June 30, 1998 Year Ended STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) December 31, 1997 ==================================================================================================================================== OPERATIONS Net investment income $ 90,534,189 $ 155,206,919 Net realized loss (2,451,118) (5,735,552) Net change in unrealized appreciation or depreciation 15,806,589 107,729,438 Net increase in net assets resulting from operations ----------- ------------ 103,889,660 257,200,805 - ------------------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income: Class A (88,608,738) (152,050,014) Class B (6,136,796) (2,948,096) Class C (1,945,200) (808,459) - ------------------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS Net increase in net assets resulting from beneficial interest transactions--Note 2: Class A 322,375,081 443,076,063 Class B 162,007,137 168,083,894 Class C 63,730,381 48,222,991 - ------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Total increase 555,311,525 760,777,184 Beginning of period 3,068,627,363 2,307,850,179 -------------- -------------- End of period (including excess of distributions over net investment income of $4,776,324 and undistributed net investment income of $1,380,220, respectively) $3,623,938,888 $3,068,627,363 ============== ==============
See accompanying Notes to Financial Statements. 30 Rochester Fund Municipals
FINANCIAL HIGHLIGHTS CLASS A ---------------------------------------------------------------------------- Six Months Ended June 30, 1998 Year Ended December 31, (Unaudited) 1997 1996 (b) 1995 1994 1993 ========================================================================================================================== PER SHARE OPERATING DATA Net asset value, beginning of period $18.67 $18.00 $18.18 $16.31 $19.00 $17.65 - -------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income 0.52 1.10 1.10 1.10 1.13 1.17 Net realized and unrealized gain (loss) 0.06 0.67 (0.18) 1.86 (2.68) 1.35 ------ ------ ------ ------ ------ ------ Total income (loss) from investment operations 0.58 1.77 0.92 2.96 (1.55) 2.52 - -------------------------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (0.54) (1.10) (1.10) (1.09) (1.13) (1.17) Undistributed net investment income - prior year -- -- -- -- (0.01) -- ------ ------ ------ ------ ------ ------ Total dividends and distributions to shareholders (0.54) (1.10) (1.10) (1.09) (1.14) (1.17) - -------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $18.71 $18.67 $ 18.00 $18.18 $16.31 $19.00 ========================================================================================================================== TOTAL RETURN, AT NET ASSET VALUE (C) 3.22% 10.20% 5.37% 18.58% (8.35%) 14.60% ========================================================================================================================== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $3,176 $2,848 $2,308 $2,145 $1,791 $1,794 - -------------------------------------------------------------------------------------------------------------------------- Average net assets (in millions) $3,006 $2,539 $2,191 $2,005 $1,847 $1,449 - -------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income 5.52%(d) 5.96% 6.20% 6.25% 6.43% 6.21% Expenses (e) 0.75%(d) 0.76% 0.82% 0.82% 0.84% 0.75% Expenses (excluding interest) (e) (f) 0.73%(d) 0.75% 0.77% 0.78% 0.73% 0.64% - -------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate (g) 6.1% 4.6% 13.3% 14.6% 34.4% 18.3% (a) For the period from March 17, 1997 (inception of offering) to December 31, 1997. (b) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to the Fund. (c) 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. (d) Annualized. (e) The expense ratios reflect the effect of gross expenses paid indirectly by the Fund. (f) 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. (g) 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, 1998 were $747,887,491 and $211,017,014, respectively. Per share information has been determined based on average shares outstanding for the period. See accompanying Notes to Financial Statements.
31 Rochester Fund Municipals
FINANCIAL HIGHLIGHTS (Continued) CLASS B CLASS C ---------------------------------------------------------- Six Months |Six Months Ended Period Ended | Ended Period Ended June 30, 1998 December 31, |June 30, 1998 December 31, (Unaudited) 1997 (a) | (Unaudited) 1997 (a) ======================================================================================================= | PER SHARE OPERATING DATA | Net asset value, beginning of period $18.65 $17.89 | $18.66 $17.89 - ------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: | Net investment income 0.43 0.74 | 0.43 0.74 Net realized and unrealized gain (loss) 0.07 0.76 | 0.07 0.77 ------ ------ | ------ ------ Total income (loss) from investment operations 0.50 1.50 | 0.50 1.51 - ------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: | Dividends from net investment income (0.46) (0.74) | (0.46) (0.74) ------ ------ | ------ ------ Total dividends and distributions to shareholders (0.46) (0.74) | (0.46) (0.74) - ------------------------------------------------------------------------------------------------------- Net asset value, end of period $18.69 $18.65 | $18.70 $18.66 ====== ====== | ====== ====== ======================================================================================================= TOTAL RETURN, AT NET ASSET VALUE (C) 2.78% 8.74% | 2.78% 8.80% ======================================================================================================= RATIOS/SUPPLEMENTAL DATA | Net assets, end of period (in millions) $334 $172 | $113 $49 - ------------------------------------------------------------------------------------------------------- Average net assets (in millions) $248 $76 | $79 $21 - ------------------------------------------------------------------------------------------------------- Ratios to average net assets: | Net investment income 4.60%(d) 4.91%(d) | 4.59%(d) 4.92%(d) Expenses (e) 1.59%(d) 1.59%(d) | 1.57%(d) 1.58%(d) Expenses (excluding interest) (e) (f) 1.58%(d) 1.58%(d) | 1.56%(d) 1.57%(d) - ------------------------------------------------------------------------------------------------------- Portfolio turnover rate (g) 6.1% 4.6% | 6.1% 4.6% - ---------------- (a) For the period from March 17, 1997 (inception of offering) to December 31, 1997. (b) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to the Fund. (c) 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. (d) Annualized. (e) The expense ratios reflect the effect of gross expenses paid indirectly by the Fund. (f) 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. (g) 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, 1998 were $747,887,491 and $211,017,014, respectively. Per share information has been determined based on average shares outstanding for the period. See accompanying Notes to Financial Statements.
32 Rochester Fund Municipals NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Rochester Fund Municipals (the Fund) is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management 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 advisor 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 that class and exclusive voting rights with respect to matters affecting that 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. Portfolio securities are valued at the close of the New York Stock Exchange on each trading day. Long-term debt securities are valued by a portfolio pricing service approved by the Board of Trustees. Such securities which cannot be valued by an approved portfolio pricing service are valued using dealer-supplied valuations provided the Manager is satisfied that the firm rendering the quotes is reliable and that the quotes reflect current market value, or are valued under consistently applied procedures established by the Board of Trustees to determine fair value in good faith. 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 or greater than 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. As of June 30, 1998, the Fund had entered into outstanding when-issued or forward commitments (see Note 3). SECURITY CREDIT RISK. The Fund invests in high yield securities, which may be subject to a greater degree of credit risk, greater market fluctuations and risk of loss of income and principal, and may be more sensitive to economic conditions than lower yielding, higher rated fixed income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. At June 30, 1998, securities with an aggregate market value of $6,755,473, representing 0.19% of the Fund's net assets, were in default. 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. 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, 1998, the Fund had available for federal income tax purposes an unused capital loss carryover of approximately $66,997,000, which expires between 2000 and 2006. 33 Rochester Fund Municipals NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) 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 advisor) 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 $30,617 for the six months ended June 30, 1998. Payments of $30,375 were made to retired trustees during the six months ended June 30, 1998. At June 30, 1998, the Fund had recognized an accumulated liability of $507,548. DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately for Class A, Class B and Class C shares from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. Distributions from net realized gains on investments, if any, will be declared at least once each year. 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 distributions made during the year from net investment income or net realized gains may differ from its 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 fiscal year in which the income or realized gain 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. Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Interest income is accrued on a daily basis. In computing net investment income, the Fund amortizes premiums and accretes original issue discount, which is in accordance with federal income tax requirements. For municipal bonds acquired 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. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes. 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. 34 Rochester Fund Municipals NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) NOTE 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of shares of beneficial interest of each class, par value $.01 per share. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED YEAR ENDED JUNE 30, 1998 DECEMBER 31, 1997 (1) -------------------------------- ------------------------------ SHARES AMOUNT SHARES AMOUNT - ---------------------------------------------------------------------------------------------------------------- CLASS A: Sold 23,165,224 $ 432,991,077 35,581,801 $ 648,373,849 Dividends and distributions reinvested 2,474,974 46,231,150 4,372,465 79,564,502 Redeemed (8,397,142) (156,847,146) (15,687,966) (284,862,288) ----------- ------------- ----------- ------------- Net increase 17,243,056 $ 322,375,081 24,266,300 $ 443,076,063 ========== ============= =========== ============= - ----------------------------------------------------------------------------------------------------------------- CLASS B: Sold 8,856,128 $ 165,324,564 9,239,870 $ 168,687,731 Dividends and distributions reinvested 205,756 3,838,926 101,107 1,860,790 Redeemed (383,661) (7,156,353) (134,182) (2,464,627) ---------- ------------- ----------- ------------- Net increase 8,678,223 $ 162,007,137 9,206,795 $168,083,894 ========== ============= =========== ============= - ----------------------------------------------------------------------------------------------------------------- CLASS C: Sold 3,592,786 $ 67,049,985 2,680,454 $ 49,004,451 Dividends and distributions reinvested 69,759 1,302,046 28,231 520,244 Redeemed (247,839) (4,621,650) (70,755) (1,301,704) ---------- ------------- ----------- ------------- Net increase 3,414,706 $ 63,730,381 2,637,930 $ 48,222,991 ========== ============= =========== =============
- ------------- (1) For the year ended December 31, 1997 for Class A shares and for the period from March 17, 1997 (inception of offering) to December 31, 1997 for Class B and Class C shares. NOTE 3. PORTFOLIO INFORMATION The Fund held $460,546,530 in inverse floating rate municipal bonds at June 30, 1998, which represents 12.71% of the Fund's net assets. At June 30, 1998, net unrealized appreciation on investments of $231,737,630 was composed of gross appreciation of $237,511,245, and gross depreciation of $5,773,615. 35 Rochester Fund Municipals NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) At June 30, 1998, investments in securities included issues that were purchased on a when-issued or delayed delivery basis. The Fund has recorded these commitments 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 these commitments. The Fund intends to invest no more than 10% of its net assets in when-issued or delayed delivery securities. The aggregate cost of securities purchased on a when-issued or delayed delivery basis at June 30, 1998 was $119,028,750, which represents 3.28% of the Fund's net assets. Information concerning these securities is as follows:
VALUATION PER UNIT FACE AMOUNT ACQUISITION DELIVERY AS OF SECURITY (IN THOUSANDS) DATE DATE COST PER UNIT JUNE 30, 1998 - ----------------------------------------------------------------------------------------------------------------- NYS ERDA (RG&E): 5.95% due 9/01/33 $ 7,000 9/03/97 9/02/98 100.000% 105.791% 5.95% due 9/01/33 5,500 9/29/97 9/02/98 102.250 105.791 - ----------------------------------------------------------------------------------------------------------------- Suffolk County IDA (Huntington Res Rec): 5.55% due 10/01/04 8,545 1/28/97 7/29/99 100.000 103.499 5.65% due 10/01/05 9,180 1/28/97 7/29/99 100.000 104.222 5.75% due 10/01/06 9,875 1/28/97 7/29/99 100.000 105.146 5.80% due 10/01/07 10,615 1/28/97 7/29/99 100.000 105.381 5.85% due 10/01/08 11,410 1/28/97 7/29/99 100.000 105.937 5.95% due 10/01/09 12,265 1/28/97 7/29/99 100.000 106.841 6.00% due 10/01/10 13,190 1/28/97 7/29/99 100.000 106.870 6.15% due 10/01/11 14,170 1/28/97 7/29/99 100.000 107.676 6.25% due 10/01/12 17,155 1/28/97 7/29/99 100.000 108.033 - -----------------------------------------------------------------------------------------------------------------
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% of the first $100 million of the Fund's 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% of the net assets in excess of $5 billion. During the six months ended June 30, 1998, the Fund paid $7,767,963 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 six months ended June 30, 1998, the Fund paid $496,927 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 for each Fund shareholder account and reimburses OFS for its out-of-pocket expenses. During the six months ended June 30, 1998, the Fund paid a total of $836,067 to OFS for transfer and shareholder servicing agent fees. For the six months ended June 30, 1998, commissions (sales charges paid by investors) on sales of Class A shares totaled $10,407,935, of which $1,569,159 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer. Sales charges advanced to brokers/dealers by OFDI on sales of the Fund's Class B and Class C shares totaled $6,430,080 and $658,844, respectively, of which $13,345 was paid to an affiliated broker/dealer for Class B shares. During the six months ended June 30, 1998, OFDI received contingent deferred sales charges of $211,780 and $28,049, respectively, upon redemption of Class B and Class C shares, as reimbursement for sales commissions advanced by OFDI at the time of sale of such shares. 36 Rochester Fund Municipals NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) 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 shareholder 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, 1998, OFDI paid $13,202 to an affiliated broker/dealer as reimbursement for Class A personal service and maintenance expenses. The Fund has adopted Distribution and Service Plans for Class B and Class C shares to compensate OFDI for its 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 for its services rendered in distributing Class B and Class C shares. OFDI also receives a service fee of 0.25% per year to compensate dealers for providing personal services for accounts that hold Class B and Class C shares. Each fee is 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 six months ended June 30, 1998, OFDI retained $1,209,535 and $374,789, respectively, as compensation for Class B and Class C sales commissions and service fee advances, as well as financing costs. If either Plan is terminated by the Fund, the Board of Trustees may allow the Fund to continue payments of the asset-based sales charge to OFDI for distributing shares before the Plan was terminated. At June 30, 1998, OFDI had incurred excess distribution and servicing costs of $14,271,369 for Class B and $1,591,729 for Class C. NOTE 5. ILLIQUID AND RESTRICTED SECURITIES At June 30, 1998, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily- available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limit. The aggregate value of illiquid securities subject to this limitation at June 30, 1998 was $216,801,146, which represents 5.98% of the Fund's net assets. NOTE 6. 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 funds managed by the Manager in an unsecured line of credit with a bank, which permits borrowings up to $75 million, collectively. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Funds Rate plus 0.625%. The Fund also pays a commitment fee equal to its pro rata share of the average unutilized amount of the credit facility at a rate of 0.07% per annum. The commitment fee allocated to the Fund for the six months ended June 30, 1998 was $9,070. The Fund had borrowings outstanding of $6,900,000 at June 30, 1998. For the six months ended June 30, 1998, the average monthly loan balance was $9,258,582 at an average interest rate of 6.220%. The maximum amount of borrowings outstanding at any month-end was $43,900,000. 37 Rochester Fund Municipals ROCHESTER FUND MUNICIPALS - -------------------------------------------------------------------------------- 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 Robert G. Galli, Trustee Lacy B. Herrmann, Trustee George Loft, Trustee Ronald H. Fielding, Vice President and Portfolio Manager 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 ADVISOR OppenheimerFunds, Inc. DISTRIBUTOR OppenheimerFunds Distributor, Inc. TRANSFER AND SHAREHOLDER SERVICING AGENT OppenheimerFunds Services CUSTODIAN OF PORTFOLIO SECURITIES Citibank, N.A. INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers 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. OPPENHEIMERFUNDS FAMILY - -------------------------------------------------------------------------------- REAL ASSET FUNDS Real Asset Fund Gold & Special Minerals Fund GLOBAL STOCK FUNDS Developing Markets Fund International Small Company Fund International Growth Fund Global Fund Quest Global Value Fund Global Growth & Income Fund STOCK FUNDS Enterprise Fund Discovery Fund Quest Small Cap Value Fund MidCap Fund Capital Appreciation Fund Quest Capital Value Fund Growth Fund Disciplined Value Fund Quest Value Fund STOCK & BOND FUNDS Main Street Income & Growth Fund Quest Opportunity Value Fund Total Return Fund Quest Balanced Value Fund(1) Equity Income Fund Disciplined Allocation Fund Multiple Strategies Fund Convertible Securities Fund(2) TAXABLE BOND FUNDS International Bond Fund World Bond Fund High Yield Fund Champion Income Fund Strategic Income Fund Bond Fund U.S. Government Trust Limited-Term Government Fund MUNICIPAL FUNDS California Municipal Fund(3) Florida Municipal Fund(3) New Jersey Municipal Fund(3) New York Municipal Fund(3) Pennsylvania Municipal Fund(3) Municipal Bond Fund Insured Municipal Fund Intermediate Municipal Fund Rochester Division: Rochester Fund Municipals Limited Term New York Municipal Fund MONEY MARKET FUNDS(4) Money Market Fund Cash Reserves (1) On 5/18/98, the Fund's name was changed from "Quest Growth & Income Value Fund". (2) On 4/28/98, the Fund's name was changed from "Bond Fund for Growth". (3) Available only to investors in certain states. (4) An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds may seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Trade Center, New York, NY 10048-0203. (c) Copyright 1998 OppenheimerFunds, Inc. All rights reserved. 38 Rochester Fund Municipals INTERNET 24-hr access to account information and online transactions now available www.oppenheimerfunds.com GENERAL INFORMATION Mon-Fri 8:30am-9pm ET Sat 10am-4pm ET 1-800-525-7048 ACCOUNT TRANSACTIONS Mon-Fri 8:30am-8pm ET 1-800-852-8457 PHONELINK 24-hr automated information and automated transactions 1-800-533-3310 TELECOMMUNICATION DEVICE FOR THE DEAF (TDD) Mon-Fri 8:30am-2pm ET 1-800-843-4461 OPPENHEIMERFUNDS INFORMATION HOTLINE 24 hours a day, timely and insightful messages on the economy and issues that affect your investments 1-800-835-3104 [LOGO] OPPENHEIMERFUNDS(R) THE RIGHT WAY TO INVEST RSO 365.001.0898 August 30, 1998 INFORMATION AND SERVICES As an Oppenheimer fund shareholder, you have some special privileges. Whether it's automatic investment plans, informative newsletters and hotlines, or ready account access, you can benefit from services designed to make investing simple. And when you need help, our Customer Service Representatives are only a toll-free phone call away. They can provide information about your account and handle administrative requests. You can reach them at our General Information number. When you want to make a transaction, you can do it easily by calling our toll-free Telephone Transactions number or by visiting our website. And, by enrolling in AccountLink, a convenient service that links your Oppenheimer funds accounts and your bank checking or savings account, you can use the Telephone Transactions number or website to make investments. For added convenience, you can get automated information with OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week. PhoneLink gives you access to a variety of fund, account, and market information. Of course, you can always speak with a Customer Service Representative during the General Information hours shown at the left. You can count on us whenever you need assistance. That's why the International Customer Service Association, an independent, nonprofit organization made up of over 3,200 customer service management professionals from around the country, honored the Oppenheimer funds' transfer agent, OppenheimerFunds Services, with their Award of Excellence in 1993. So call us today, or visit us at our website at www.oppenheimerfunds.com--we're here to help. -----END PRIVACY-ENHANCED MESSAGE-----