[LOGO] LIMITED TERM
NEW YORK
MUNICIPAL FUND Tax-Free Income for Cautious New York Investors
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[ARTWORK]
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Annual Report
[LOGO] OppenheimerFunds(R) December 31, 1995
<PAGE>
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To Fellow Shareholders
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[PHOTOGRAPH]
February 8, 1996
Dear Fellow Shareholder,
1995 was a very good year for the Limited Term New York Municipal Fund.
Despite generally declining interest rates, the Fund was able to increase
its dividend from 1.4 cents to 1.5 cents per share, per month (effective in
March). At the same time, rising bond prices increased the net asset value of
Class A Shares from $3.15 to $3.28 at year end. The Fund provided a total return
of 7.95% on Class A Shares (which reflects payment of the maximum sales charge
of 2.00% and includes reinvestment of dividends). Furthermore, except for those
very few shareholders subject to the alternative minimum tax ("AMT"), the 18
cents in dividends (equal to a 5.5% dividend yield on year end share value) was
totally free of Federal, New York State and New York City personal income
taxation. Please refer to the performance charts on the next page for the
average annual total returns for the 1-year and/or life-of class periods ending
12/31/95 for Class A and Class B Shares.
As we enter 1996, we continue to manage the portfolio with an eye to
reducing overall portfolio risk and adding value to the investment process. We
believe that investors will benefit from our well balanced portfolio. Going
forward, we foresee more stable interest rates, modest economic growth, low
inflation and relatively attractive values for municipal securities. The
combination of these facts should bode well for New York municipal bond
investors.
Sincerely,
/s/ Ronald H. Fielding
Ronald H. Fielding
Portfolio Manager
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Tax-Free Income For Cautious New York Investors [MAP OF NY]
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STANDARDIZED YIELD
For the 30 days ended 12/31/95(1)
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Class A Class B
4.71% 4.30%
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According to Lipper Analytical Services, Inc., the Limited Term New York
Municipal Fund is the #1 performer in the category of Other States Short
Municipal Debt Funds for the 3-Year period ended 12/31/95.(2)
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MORNINGSTAR(3)
5 star ranking
1. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 12/31/95, divided by the maximum offering
price at the end of the period, compounded semi-annually and then annualized.
Falling net asset values will tend to artificially raise yields. Class B Shares
were initially offered to the public on May 1, 1995.
2. Source: Lipper Analytical Services, Inc., 12/31/95, an independent mutual
fund monitoring service. The Limited Term New York Municipal Fund is
characterized by Lipper as an Other States Short Municipal Debt Fund. The Lipper
total return rankings for the 3-year period included 2 Other States Short
Municipal Debt Funds. Within the same category, the Fund (Class A) was also
ranked 2nd out of 38 funds for the 1-year period ended 12/31/95. Lipper
performance does not take sales charges into consideration and assumes the
reinvestment of dividends and capital gains distributions. The Fund commenced
operations on 9/18/91.
3. Source: Morningstar Mutual Funds, 12/31/95. Morningstar, Inc., an independent
mutual fund monitoring service, produces proprietary monthly rankings of funds
in broad investment categories based on risk-adjusted investment returns, after
considering sales charges and expenses. Investment return measures a fund's 3-,
5- and 10-year average annual total returns in excess of 90 day U.S. Treasury
bill returns. Risk measures a fund's performance below 90-day Treasury bill
returns. Risk and returns are combined to produce star rankings, reflecting
performance relative to the average fund in a fund category. Five stars is the
"highest" ranking (top 10%), 4 stars is "above average" (next 22.5%) and 1 star
is the lowest (bottom 10%). THE LIMITED TERM NEW YORK MUNICIPAL FUND IS
CATEGORIZED AS A TAX-EXEMPT FUND. THE FUND'S CURRENT 3-YEAR RANKING IS 5 STARS.
770 MUNICIPAL BOND FUNDS WERE RATED FOR THE 3- YEAR PERIOD. THIS MORNINGSTAR
PROPRIETARY RATING REFLECTS HISTORICAL RISK-ADJUSTED PERFORMANCE AS OF DECEMBER
31, 1995. The ratings are subject to change every month.
Past performance is not predictive of future investment results. Investment
return and principal value on an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
LIMITED TERM NEW YORK MUNICIPAL FUND
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Management's Discussion of Fund Performance
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February 8, 1996
The Limited Term New York Municipal Fund was created to provide a specific
balance between risk and return. Since volatility is significantly related to
maturity, the Fund seeks to maintain lower volatility than the average long term
municipal fund(1) by managing to an average effective maturity of 5 years of
less. Furthermore, by investing in a broad spectrum of issues, including
callable bonds, premium coupon bonds, and selected unrated bonds, it seeks to
provide investors with a yield competitive with longer-term New York municipal
bond funds.
You should also remember that the yield you receive is generally exempt
from Federal, New York State and, if applicable, New York City personal income
taxes.(2) The yield of the Limited Term New York Municipal Fund was very
competitive for a fund with a five year average effective maturity policy. The
Fund's 30-day SEC yield for Class A Shares as of 12/31/95 was 4.71%. Throughout
the previous twelve months of the year, this yield was consistently higher than
that of the average long term New York fund as reported monthly by the Lipper
Analytical Yield Survey.(3)
The single most important reason behind 1995's strong performance was the
reversal of last year's Federal Reserve policy regarding interest rates.
Throughout 1994, the Fed raised rates aggressively to stem potential
inflationary pressures and to slow the growth of the economy. As it became
evident that the economy was indeed slowing, the Fed stopped raising rates, and
in July of 1995, even lowered short term rates. The resulting bond market
rallies benefited most bonds, but in particular, municipal bonds and municipal
bond funds including the Limited Term New York Municipal Fund.
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TOTAL RETURN (12/31/95)
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AVERAGE ANNUAL CUMULATIVE
NAV MOP NAV MOP
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Class A
1 Year 10.01% 7.95% 10.01% 7.95%
Life of Fund 7.71% 7.21% 37.41% 34.71%
(4.28 yr)
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Class B
Life of Fund 5.65% 3.15% 5.65% 3.15%
(.667 yr)
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For periods ending 12/31/95. NAV stands for Net Asset Value and returns at NAV
do not reflect payment of sales charges. Class A Share returns at Maximum
Offering Price (MOP) reflect payment of 2.00% maximum sales charge. All returns
include changes in share price and assume reinvestment of dividends and capital
gains at net asset value. Performance of Class B Shares reflects the deduction
of the contingent deferred sales charge (CDSC) of 2.50%, which is applicable on
all share redemptions during the first year, and declines thereafter as detailed
in the prospectus. While all classes have the same investment portfolio, the
performance of Class B Shares will differ from that of Class A Shares primarily
due to the different expenses the class of shares incur. Class B Shares were
introduced on May 1, 1995. Class A Shares have an inception date of September
18, 1991.
THE VALUE OF $10,000 INVESTED IN YOUR FUND COMPARED TO THE
MERRILL LYNCH MUNICIPAL INDEX AND THE CPI
[The following table was represented by a graph in the printed material.]
The Value of $10,000 Invested in the Limited Term New York Municipal Fund
compared to the Merrill Lynch Municipal Index and the CPI
Limited Term New York Municipal Fund -- Class A $13,379
Limited Term New York Municipal Fund -- Class B $10,300
Merrill Lynch Municipal Index (3-7) $13,205
Consumer Price Index (CPI) $11,211
This graph shows the performance of a hypothetical $10,000 investment in either
Class A or Class B Shares of the Fund held for the life of the Class, since
September 18, 1991 for Class A Shares and since May 1, 1995 for Class B Shares.
The Fund's performance is compared to the performance of the Merrill Lynch
Municipal Index (3-7 years), an unmanaged index of investment-grade municipal
bonds. The Index differs from the actual investment of real dollars in the Fund
in several important respects. The Merrill Lynch Municipal Index, while it
reflects the performance of securities on which the interest income is exempt
from Federal taxes, includes mostly municipal bonds whose interest is subject to
New York State and New York City personal income taxes, and thus would not be
purchased by the Fund. The unmanaged Index also has no ongoing management
expenses and incurs no transaction costs or operating expenses, which are an
integral part of mutual fund operations. None of the data shown considers the
effect of taxes. Moreover, the index performance data does not reflect any
assessment of the risk of investments included in the Index. An investor cannot
purchase the Index directly. The Fund's total return figure for Class A Shares
reflects payment of the maximum 2% sales load and reflects all Fund expenses. It
assumes that all dividends have been reinvested. Past performance is not
predictive of future investment performance.
The graph also compares the Fund's performance to the Consumer Price Index
(CPI), a measure of inflation. It indicates that, for the period referenced, the
Fund has kept the purchasing power of your investment (on a total return basis)
well ahead of inflation, which should be an important consideration for
investors.
LIMITED TERM NEW YORK MUNICIPAL FUND
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Management's Discussion of Fund Performance (continued)
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In addition, the prospect of tax reform has been a major influence in the
municipal bond market in 1995, specifically for the past six months. Depending
on the maturity of a bond, talk of tax reform may have been as important to its
total return as the changes in the general levels of interest rates. Even though
it is just talk at this point, the concept of significant tax reform helped to
keep 1995 total returns for municipal bonds below those on Treasury Bonds, which
had returns that approached those of the stock market. Specifically, the short
to intermediate sector of the municipal market in which this Fund invests
underperformed Treasuries substantially as a result of these discussions.
We believe that this talk has, however, made municipal bonds, in general,
very attractive relative to taxable bonds and Treasuries, and that fears of tax
reform that would harm municipal bonds are both overblown and exaggerated. The
fact that municipal bonds are generally yielding about 80% of the 5-year
Treasury bond currently is an indication of how attractive the tax-exempt sector
has become.(4) In the very remote chance that a flat tax does pass in this
decade, New York municipal bonds should be a better value than bonds issued by
other states because of the high state and local tax rates. In addition, many
municipal analysts suggest that intermediate municipals may offer a haven for
those who still fear the flat tax.
With over 600 different bonds (as of 12/31/95), the Fund's investment
strategy considered issues across a broad range of market sectors, maturities,
coupons and call features. In addition, we continued our long-standing policy of
selling popular sectors of the municipal bond market (which in 1995 included
housing and general obligation bonds) and adding to sectors which are currently
"cheap" because of their unpopularity or perceived risks. In 1995, this meant
taking larger positions in electric and gas utility bonds, and in resource
recovery and pollution control bonds. There was a very slight improvement in the
average dollar weighted credit rating during 1995 and a slight lowering of
average effective maturity to its year-end level of 3.6 years.
While the Fund seeks to maintain a relatively constant dividend, its policy
of prudent investing while seeking the preservation of shareholder's capital
(the Fund's net asset value(s) per share) takes precedence. The Fund's dividend
can be expected to vary from year to year because of the Fund's policy to
maintain a relatively short average maturity of its portfolio. In March of 1995
the monthly dividend on Class A Shares was increased from 1.4 cents to 1.5
cents. This increase, during a period of generally declining rates, was possible
primarily because of the Advisor's success in building a portfolio of higher
coupon bonds which, although currently callable, have not been called. The
ability to maintain this dividend level in the future depends upon calls of
these bonds, as well as the general changes in interest rates, and the skill of
the Advisor's portfolio trades.
1. Volatility as calculated using the standard deviation of monthly returns
provided by Lipper Analytical Services, Inc. for 88 New York State Municipal
Debt Funds.
2. A portion of the Fund's income distributions may be subject to income taxes.
Capital gains distributions, if any, are taxable as capital gains. For investors
subject to the alternative minimum tax, some of the Fund's distributions may
increase that tax.
3. Source: Lipper Analytical Yield Survey. Yield is based on the earnings of the
Fund's portfolio during the 30 days ended 12/31/95 and the maximum offering
price, which reflects payment of the initial 2.00% maximum sales charge.
4. Source: Bloomberg Business News. On December 29, 1995, A Rated municipal G.O.
bonds produced 82.2% of the yield of 5-Year Treasuries.
LIMITED TERM NEW YORK MUNICIPAL FUND
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
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<C> <S> <C> <C> <C> <C>
$ 20 Albany Hsg. Auth. 10.400% 10/01/96 -- $ 20,832
40 Albany IDA (152 Washington Avenue) 7.500 11/01/01 05/01/96(b) 40,400
80 Albany IDA (Evergreen Bancorp) 7.350 12/15/00 06/15/96(b) 80,800
1,975 Albany IDA (H. Johnson Office Pk.) 5.750 03/01/18 03/01/98(d) 1,968,858
260 Albany IDA (Port of Albany) 6.250 02/01/05 02/07/01(c) 269,087
30 Albany IDA (Spectrapark) 7.150 12/01/98 -- 30,704
50 Albany IDA (Spectrapark) 7.500 12/01/03 12/01/98(b) 54,681
3,525 Albany IDA (Spectrapark) 7.600 12/01/09 12/01/98(b) 3,811,089
25 Albany Parking Auth. 0.000 09/15/03 -- 16,196
625 Albany Parking Auth. 0.000 09/15/04 -- 380,463
40 Albany Parking Auth. 0.000 09/15/02 -- 27,847
20 Albany Parking Auth. 0.000 09/15/05 -- 11,468
645 Allegany IDA (Alfred University) 6.900 09/01/99 -- 689,376
300 American Samoa Power Auth. 6.400 09/01/96 -- 304,326
400 American Samoa Power Auth. 6.600 09/01/96 -- 406,292
300 American Samoa Power Auth. 6.600 09/01/97 -- 309,723
300 American Samoa Power Auth. 6.700 09/01/98 -- 313,956
600 American Samoa Power Auth. 6.700 09/01/97 -- 620,400
300 American Samoa Power Auth. 6.750 09/01/99 -- 315,846
700 American Samoa Power Auth. 6.800 09/01/98 -- 734,230
700 American Samoa Power Auth. 6.900 09/01/99 -- 740,159
700 American Samoa Power Auth. 7.000 09/01/00 -- 747,418
50 Amherst IDA (Inducon) 7.250 11/01/96 -- 50,375
120 Auburn IDA (Alcoa) 7.500 12/01/97 06/01/96(b) 123,000
50 Auburn IDA (Alcoa) 7.600 12/01/98 06/01/96(b) 51,500
780 Babylon IDA (WWH Ambulance) 7.000 09/15/01 05/26/99(c) 828,750
75 Baldwinsville Development Corp. 7.200 06/01/10 07/01/96(b) 78,000
800 Batavia Hsg. Auth. (Trocaire Place) 7.650 04/01/08 08/14/03(c) 851,464
10 Bergen GO 7.700 04/15/96 -- 10,068
20 BOCES (Greenport) 7.500 10/01/96 07/03/96(c) 20,600
170 Brookhaven IDA (Dowling College) 6.100 03/01/00 -- 178,541
185 Brookhaven IDA (Dowling College) 6.200 03/01/01 -- 197,710
195 Brookhaven IDA (Dowling College) 6.300 03/01/02 -- 210,590
205 Brookhaven IDA (Dowling College) 6.400 03/01/03 -- 222,913
390 Brookhaven IDA (Farber) 6.563(v)12/01/98 -- 390,000
30 Broome IDA (Industrial Park) 7.450 12/01/98 -- 30,300
1,550 Carnegie Redevelopment Corp. 6.250 09/01/05 12/04/01(c) 1,600,158
1,550 Carnegie Redevelopment Corp. 6.500 09/01/11 05/17/09(c) 1,622,633
525 Clifton Park (Caldor) 11.250 12/01/12 12/01/98(b) 546,047
1,900 Clifton Springs Hospital & Clinic 7.000 01/01/01 02/18/99(c) 1,964,049
35 Colonie IDA 7.250 10/01/02 04/01/96(b) 35,525
5 Colonie IDA (Capital Plaza) 9.625 11/01/98 05/01/96(b) 5,075
20 Cortland IDA (Paul Bunyon) 8.000 07/01/00 07/01/98(b) 21,808
275 Dutchess IDA (Bard College) 6.500 11/01/03 -- 288,904
1,175 Dutchess Res Rec (Solid Waste) 6.800 01/01/10 01/01/05(b) 1,237,992
15 Elmira HDC 7.500 08/01/09 02/01/96(b) 15,843
290 Elmira HDC 7.500 08/01/08 02/01/96(b) 303,210
440 Erie IDA (FMC Corp.) 6.000 02/01/03 08/02/01(c) 440,673
385 Erie IDA (Medaille College) 7.400 12/30/02 04/18/00(c) 406,302
40 Erie IDA (Medishield) 7.200 08/01/04 08/01/98(b) 40,800
980 Erie IDA (Mercy Hospital) 5.900 06/01/03 08/21/00(c) 1,012,007
1,000 Essex IDA (International Paper) 6.500 05/01/06 05/01/96(b) 1,008,410
2,250 Franklin IDA (Correctional Facilities) 6.375 11/01/02 01/31/00(c) 2,318,378
10 Franklin IDA (Correctional Facilities) 6.750 11/01/12 11/01/04(b) 10,473
640 Franklin SWMA 5.250 06/01/98 -- 649,850
475 Franklin SWMA 5.500 06/01/99 -- 483,859
</TABLE>
1
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
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<C> <S> <C> <C> <C> <C>
$ 600 Franklin SWMA 5.625% 06/01/00 -- $ 613,020
50 Fulton IDA (J.R. Kearney) 7.000 12/01/96 -- 50,500
1,020 Guam Airport Authority 6.600 10/01/10 10/01/05(b) 1,063,432
3,030 Guam Power Authority 6.375 10/01/08 10/01/04(b) 3,123,839
250 Guam Power Authority 6.625 10/01/14 10/01/04(b) 263,338
920 Hamilton Elderly Hsg. 11.250 01/01/15 05/01/96(b) 983,158
10 Hempstead IDA (Amer. Ref-Fuel Co.) 6.500 12/01/96 -- 10,189
30 Hempstead IDA (Amer. Ref-Fuel Co.) 6.700 12/01/97 -- 31,264
30 Hempstead IDA (Amer. Ref-Fuel Co.) 7.000 12/01/99 12/01/96(b) 31,167
35,340 Hempstead IDA (Amer. Ref-Fuel Co.) 7.375 12/01/05 12/01/96(b) 36,799,895
30,645 Hempstead IDA (Amer. Ref-Fuel Co.) 7.400 12/01/10 12/01/96(b) 31,920,445
1,500 Hempstead IDA (Nassau Dist. Energy) 7.750 09/15/15 09/15/97(b) 1,557,945
20 Hempstead IDA (UCP) 7.500 10/01/09 10/01/99(b) 21,439
2,700 Herkimer Hsg. Auth. 7.150 03/01/11 09/01/06(b) 2,921,886
2,360 Herkimer IDA (Burrows Paper) 7.250 01/01/01 02/28/99(c) 2,434,293
1,000 Herkimer IDA (Burrows Paper) 8.000 01/01/09 10/28/05(c) 1,076,300
50 Heuvelton CSD 8.375 06/15/97 -- 52,127
90 Islip IDA (WJL Realty) 7.400 03/01/99 -- 101,424
1,935 Islip Res Rec 5.600 07/01/00 -- 2,043,921
2,040 Islip Res Rec 5.750 07/01/01 -- 2,180,026
2,160 Islip Res Rec 5.850 07/01/02 -- 2,332,346
330 Jamestown GO 7.000 03/15/99 -- 355,526
250 Jamestown GO 7.000 03/15/00 -- 273,410
3,415 Jamestown Hsg. Auth. 6.125 07/01/10 11/26/04(c) 3,468,342
260 Jefferson IDA (Stature Electric) 7.500 08/01/99 02/01/96(b) 265,772
55 Lakeside Village Hsg. Corp. 0.000 09/01/05 03/01/96(b) 23,113
5 Lakeside Village Hsg. Corp. 11.250 09/01/96 03/01/96(b) 5,096
435 Lincoln Towers Hsg. Corp. 11.250 01/01/15 05/01/96(b) 459,538
118 Locke Fire District #1 7.500 07/01/02 09/30/99(c) 133,170
210 Medina Hsg. Corp. 8.250 08/15/11 08/15/96(b) 222,600
960 Middleton IDA (Southwinds) 7.250 03/01/03 06/14/00(c) 963,206
5 Monroe County Airport 0.000 01/01/04 -- 3,159
30 Monroe County GO 6.100 05/01/03 -- 30,000
1,435 Monroe IDA (Al Sigl Center) 6.375 12/15/05 11/24/01(c) 1,456,209
1,135 Monroe IDA (Al Sigl Center) 6.750 12/15/10 02/01/09(c) 1,159,709
10 Monroe IDA (Cohber) 7.500 12/01/00 12/01/98(b) 10,587
100 Monroe IDA (Cohber) 7.550 12/01/01 12/01/98(b) 108,488
278 Monroe IDA (Consler) 7.000 08/01/99 12/15/97(c) 279,165
1,019 Monroe IDA (Emil Muller) 6.500 10/01/04 11/08/00(c) 1,020,235
1,290 Monroe IDA (GEVA) 7.750 04/01/02 07/20/99(c) 1,297,276
360 Monroe IDA (GEVA) 7.750 04/01/03 -- 362,030
33 Monroe IDA (Hahn) 7.250 06/01/98 04/13/97(c) 33,232
211 Monroe IDA (Hahn) 7.250 06/01/98 04/27/97(c) 212,204
163 Monroe IDA (Palmer) 6.500 08/01/98 06/29/97(c) 162,938
10 Monroe IDA (Piano Works) 7.125 11/01/96 -- 10,100
300 Monroe IDA (Roberts Wesleyan) 6.200 09/01/05 -- 305,802
235 Monroe IDA (West End Business) 6.750 12/01/04 12/16/00(c) 242,121
50 Montgomery IDA (Alpin Haus) 7.000 12/01/96 -- 50,229
270 Montgomery IDA (Amsterdam) 5.750 01/01/97 -- 268,728
145 Montgomery IDA (Amsterdam) 6.000 01/01/98 -- 147,973
885 Montgomery IDA (Amsterdam) 6.500 01/01/03 02/17/01(c) 903,824
20 Montgomery IDA (Breton Ind.) 8.150 04/01/10 04/01/98(b) 21,958
50 MTA 7.000 07/01/09 07/01/03(b) 53,735
470 Nassau IDA (ACLDD) 7.250 10/01/04 03/12/01(c) 493,185
1,120 Nassau IDA (Farmingdale Market) 10.000 05/01/98 05/01/96(b) 1,136,117
815 Nassau IDA (NPD Realty) 10.375 12/01/97 12/01/96(b) 833,338
</TABLE>
2
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 300 Nassau IDA (Tishcon Corp.) 10.000% 02/01/03 02/01/96(b) $ 301,539
1,090 New Rochelle IDA (CNR) 6.000 07/01/02 08/11/00(c) 1,135,170
260 New Rochelle IDA (CNR) 6.300 07/01/03 -- 274,776
275 New Rochelle IDA (CNR) 6.400 07/01/04 -- 292,210
2,800 Niagara IDA (Sevenson Hotel) 5.750 05/01/03 10/31/99(c) 2,849,784
295 North Country Development Auth. 6.500 07/01/01 -- 308,850
575 North Country Development Auth. 6.600 07/01/02 -- 600,812
685 North Country Development Auth. 6.600 07/01/99 07/01/99(a) 751,089
1,565 North Country Development Auth. 6.750 07/01/12 07/01/99(b) 1,650,433
80 Northern Marianas Island Port Auth. 7.050 10/01/04 10/01/96(b) 82,000
10 Northern Marianas Island Port Auth. 7.050 10/01/05 10/01/96(b) 10,300
1,000 NYC GO 0.000 02/01/03 -- 688,270
50 NYC GO 0.000 08/15/01 -- 37,826
115 NYC GO 0.000(+)10/01/06 10/01/02(b) 80,901
2,000 NYC GO 0.000(+)02/01/04 02/01/00(b) 1,660,520
170 NYC GO 0.000 04/01/00 -- 145,449
1,500 NYC GO 0.000 02/01/01 -- 1,163,190
2,000 NYC GO 0.000 08/15/00 -- 1,597,140
1,950 NYC GO 0.000(+)02/01/07 02/01/02(e) 1,390,233
1,460 NYC GO 0.000 02/01/02 -- 1,068,705
630 NYC GO 0.000 04/01/01 -- 508,713
105 NYC GO 5.600 08/01/01 -- 107,982
600 NYC GO 6.375 08/01/06 08/01/04(b) 623,658
250 NYC GO 6.375 08/15/10 08/15/07(b) 261,153
2,000 NYC GO 6.375 08/01/07 08/01/04(b) 2,072,020
1,500 NYC GO 6.375 08/01/10 08/01/07(b) 1,566,795
20 NYC GO 6.500 08/01/06 08/01/04(b) 21,046
1,550 NYC GO 6.750 10/01/05 10/01/04(b) 1,685,486
100 NYC GO 6.875 02/01/02 -- 109,267
120 NYC GO 7.000 10/01/09 10/01/04(b) 130,038
55 NYC GO 7.000 02/01/09 02/01/00(b) 56,320
1,500 NYC GO 7.000 08/15/06 08/15/99(a) 1,550,070
3,250 NYC GO 7.000 02/01/06 02/01/02(b) 3,563,365
200 NYC GO 7.000 12/01/08 12/01/99(b) 208,932
175 NYC GO 7.000 12/01/10 12/01/99(b) 182,816
1,000 NYC GO 7.000 02/01/16 02/01/04(b) 1,080,160
1,000 NYC GO 7.000 02/01/01 06/01/96(b) 1,022,470
50 NYC GO 7.000 02/01/00 02/01/96(b) 51,077
8,140 NYC GO 7.000 10/01/13 10/01/04(b) 8,840,040
25 NYC GO 7.300 08/15/98 08/15/97(b) 26,349
500 NYC GO 7.400 02/01/00 -- 544,620
285 NYC GO 7.400 02/01/02 -- 314,848
50 NYC GO 7.500 08/15/15 06/01/96(b) 52,732
25 NYC GO 7.500 12/01/05 08/15/97(a) 26,366
75 NYC GO 7.500 10/01/12 10/01/99(b) 80,513
15 NYC GO 7.500 03/15/07 03/15/00(b) 16,344
25 NYC GO 7.500 08/01/01 08/01/99(b) 27,421
50 NYC GO 7.500 08/01/04 06/01/96(b) 53,330
2,425 NYC GO 7.500 02/01/09 02/01/02(b) 2,721,141
165 NYC GO 7.500 08/15/03 07/01/96(b) 181,394
1,500 NYC GO 7.500 03/15/09 03/15/00(b) 1,644,840
10,125 NYC GO 7.500 02/01/04 07/01/03(b) 11,285,933
220 NYC GO 7.500 02/01/07 02/01/02(b) 244,620
2,900 NYC GO 7.500 02/01/06 02/01/02(b) 3,278,392
100 NYC GO 7.625 08/01/03 02/01/98(a) 105,960
50 NYC GO 7.625 02/01/13 02/01/02(b) 56,288
</TABLE>
3
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 4,020 NYC GO 7.650% 02/01/07 02/01/02(b) $ 4,564,348
300 NYC GO 7.700 02/01/09 02/01/02(b) 339,720
1,555 NYC GO 7.750 08/15/09 08/15/01(b) 1,761,628
780 NYC GO 7.750 02/15/01 06/01/96(b) 853,601
1,200 NYC GO 7.750 08/15/12 08/15/01(b) 1,358,820
600 NYC GO 7.750 08/15/03 08/11/00(b) 679,884
2,000 NYC GO 7.750 08/15/05 08/15/01(b) 2,275,200
7,925 NYC GO 7.750 08/15/06 08/15/01(b) 9,007,159
1,500 NYC GO 7.750 08/15/07 08/15/01(b) 1,704,825
150 NYC GO 7.875 08/01/04 05/26/99(b) 169,536
2,915 NYC GO 8.000 08/01/03 08/14/03(b) 3,336,043
740 NYC GO 8.250 11/15/10 11/15/01(b) 850,031
680 NYC GO 8.250 11/15/10 11/15/01(a) 826,486
20 NYC HDC 0.000 04/01/08 04/01/98(b) 8,924
90 NYC HDC 0.000 10/01/03 04/01/98(b) 56,218
75 NYC HDC 0.000 04/01/01 -- 56,993
40 NYC HDC 0.000 04/01/99 -- 33,715
50 NYC HDC 0.000 04/01/00 -- 39,169
45 NYC HDC 0.000 10/01/00 -- 34,255
30 NYC HDC 0.000 04/01/03 04/01/98(b) 19,681
50 NYC HDC 0.000 10/01/08 04/01/98(b) 21,385
80 NYC HDC 0.000 04/01/06 04/01/98(b) 41,290
90 NYC HDC 0.000 10/01/06 04/01/98(b) 44,881
70 NYC HDC 0.000 10/01/07 04/01/98(b) 32,763
30 NYC HDC 0.000 10/01/99 -- 24,949
60 NYC HDC 0.000 04/01/04 04/01/98(b) 36,055
5 NYC HDC 5.750 05/01/96 -- 5,000
255 NYC HDC 6.500 05/01/06 11/01/00(b) 257,762
975 NYC HDC 7.900 02/01/23 02/01/00(b) 1,053,205
730 NYC HDC 8.100 09/01/23 09/01/00(b) 799,825
2,000 NYC Health & Hospital 6.000 02/15/07 -- 2,013,800
1,455 NYC IDA 7.625 11/01/09 11/01/96(b) 1,472,736
75 NYC IDA 8.125 11/01/09 11/01/96(b) 77,250
1,250 NYC IDA (ALA Realty) 7.000 12/01/05 12/19/01(c) 1,276,075
575 NYC IDA (Amster Novelty) 7.375 12/01/05 05/30/02(c) 576,190
3,300 NYC IDA (Blood Center) 6.800 05/01/02 08/04/99(c) 3,687,321
265 NYC IDA (CNR) 5.875 09/01/05 -- 265,750
1,396 NYC IDA (Cummins Engine) 6.500 03/01/05 01/27/01(c) 1,409,317
1,175 NYC IDA (EPG) 7.400 07/30/02 11/08/99(c) 1,257,532
2,425 NYC IDA (JBFS) 6.500 12/15/02 03/15/00(c) 2,567,930
490 NYC IDA (Koenig Manufacturing) 7.375 12/01/10 09/13/05(c) 496,287
20 NYC IDA (Lighthouse) 6.375 07/01/10 07/01/04(b) 20,399
635 NYC IDA (OHEL) 7.125 03/15/03 01/19/00(c) 651,967
128 NYC IDA (Paper Enterprises) 10.000 11/01/98 07/10/97(c) 131,237
3,430 NYC IDA (Plaza Packaging) 7.650 12/01/09 12/01/99(b) 3,709,374
785 NYC IDA (Promotional Slideguide) 7.000 12/01/05 05/19/02(c) 786,931
50 NYC IDA (St. Christopher Ottilie) 6.750 07/01/99 -- 53,464
150 NYC IDA (United Nations School) 6.000 12/01/04 -- 150,237
160 NYC IDA (United Nations School) 6.050 12/01/05 -- 160,274
170 NYC IDA (United Nations School) 6.100 12/01/06 -- 170,313
180 NYC IDA (United Nations School) 6.150 12/01/07 -- 180,351
1,695 NYS COP 6.900 09/01/98 -- 1,799,192
500 NYS COP 7.000 03/01/99 -- 532,875
10 NYS COP 7.100 08/15/00 08/15/96(b) 10,823
395 NYS COP 7.250 08/15/07 08/15/96(b) 411,649
2,305 NYS COP 7.625 03/01/09 09/01/01(b) 2,571,896
</TABLE>
4
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 1,725 NYS COP 8.250% 09/01/07 09/01/97(b) $ 1,850,304
40 NYS COP 8.300 09/01/12 09/01/97(b) 43,228
1,790 NYS Dorm (Brookhaven) 8.700 07/01/06 07/01/96(b) 1,822,310
30 NYS Dorm (City University) 0.000 07/01/03 07/01/98(b) 19,067
975 NYS Dorm (City University) 7.200 07/01/01 07/01/00(a) 1,084,551
12,000 NYS Dorm (City University) 8.125 07/01/08 07/01/98(a) 13,440,000
8,380 NYS Dorm (City University) 8.125 07/01/07 07/01/98(b) 9,159,424
40 NYS Dorm (Cornell University) 6.875 07/01/14 07/01/96(b) 40,880
100 NYS Dorm (Crouse Irving) 10.250 07/01/04 07/01/96(b) 102,702
365 NYS Dorm (Crouse Irving) 10.500 07/01/17 07/01/96(b) 375,001
65 NYS Dorm (ECC) 7.100 07/01/09 12/30/04(c) 65,650
25 NYS Dorm (Higher Education) 8.500 06/01/03 06/01/96(b) 25,593
25 NYS Dorm (JGB) 7.000 07/01/09 07/01/96(b) 25,250
215 NYS Dorm (Judicial-Suffolk) 9.000 10/15/01 04/15/96(b) 236,500
5,000 NYS Dorm (Judicial-Suffolk) 9.000 10/15/01 04/15/96(b) 5,451,150
40 NYS Dorm (Manhattan E,E&T) 9.500 07/01/12 07/01/96(b) 40,800
380 NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 07/01/96(b) 389,500
80 NYS Dorm (Montefiore) 8.625 07/01/10 07/01/96(b) 81,760
225 NYS Dorm (NY Medical College) 6.875 07/01/03 -- 242,240
80 NYS Dorm (PCP) 7.800 12/01/05 12/01/98(b) 88,345
35 NYS Dorm (United Health) 7.150 08/01/07 02/01/00(b) 38,551
50 NYS Dorm (United Hospital) 6.500 09/15/10 07/01/96(b) 50,250
180 NYS Dorm (United Hospital) 11.750 09/15/10 07/01/96(b) 185,400
500 NYS Dorm (Wildwood) 7.300 07/01/15 07/01/01(b) 551,555
275 NYS Environ. (Huntington Res Rec) 7.375 10/01/99 05/04/98(c) 291,294
7,540 NYS Environ. (Huntington Res Rec) 7.500 10/01/12 10/01/99(b) 8,037,640
250 NYS Environ. (Jamaica Water) 10.875 12/01/14 12/01/96(b) 257,260
15 NYS Environ. (Long Island Water) 10.000 10/01/17 10/01/97(b) 16,586
595 NYS Environ. (RSP) 7.000 04/01/00 -- 641,464
370 NYS Environ. (RSP) 7.000 04/01/99 -- 394,572
330 NYS Environ. (RSP) 7.100 04/01/01 -- 359,660
2,985 NYS Environ. (RSP) 7.250 04/01/07 04/01/02(b) 3,256,516
9,000 NYS ERDA (Brooklyn Union Gas) 8.750 07/01/15 07/01/96(b) 9,214,740
5,475 NYS ERDA (Brooklyn Union Gas) 9.000 05/15/15 05/15/96(b) 5,606,783
15 NYS ERDA (Con Ed) 9.250 09/15/22 09/15/97(b) 16,240
125 NYS ERDA (LILCO) 7.500 12/01/06 06/01/96(b) 126,250
265 NYS ERDA (LILCO) 7.800 12/01/09 06/01/96(b) 265,506
315 NYS ERDA (LILCO) 8.250 10/01/12 04/01/96(b) 317,167
1,850 NYS ERDA (Niagara Mohawk) 8.875 11/01/25 11/01/96(b) 1,898,248
25 NYS GO 6.600 12/01/14 06/01/96(b) 25,750
1,500 NYS HDC 6.550 10/01/15 04/01/05(b) 1,583,925
80 NYS HFA (Children's Rescue) 7.400 11/01/00 -- 86,478
140 NYS HFA (Children's Rescue) 7.500 11/01/01 -- 153,661
65 NYS HFA (Children's Rescue) 7.500 05/01/01 -- 70,718
1,340 NYS HFA (Children's Rescue) 8.000 11/01/08 11/01/00(b) 1,526,582
94 NYS HFA (General Housing) 6.500 11/01/03 -- 94,940
6 NYS HFA (General Housing) 6.750 11/01/98 -- 6,060
26,615 NYS HFA (Health Facilities) 7.900 11/01/99 03/08/98(c) 29,552,498
1,535 NYS HFA (HELP/Bronx) 8.050 11/01/05 11/01/99(b) 1,661,898
1,460 NYS HFA (Henry Phipps) 8.000 05/01/18 05/01/98(b) 1,498,325
140 NYS HFA (H&N) 5.900 11/01/06 -- 137,200
65 NYS HFA (H&N) 5.900 11/01/05 -- 63,700
300 NYS HFA (H&N) 6.800 11/01/02 11/01/98(b) 306,000
65 NYS HFA (H&N) 6.875 11/01/04 11/01/98(b) 65,650
30 NYS HFA (H&N) 6.875 11/01/05 11/01/98(b) 30,300
790 NYS HFA (H&N) 6.875 11/01/07 11/01/02(b) 807,443
</TABLE>
5
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 300 NYS HFA (H&N) 6.875% 11/01/11 11/01/98(b) $ 306,000
50 NYS HFA (H&N) 6.875 11/01/09 11/01/98(b) 50,825
5 NYS HFA (H&N) 8.625 11/01/05 11/01/96(b) 5,158
150 NYS HFA (H&N) 9.000 11/01/17 11/01/96(b) 153,000
145 NYS HFA (Monroe) 7.625 05/01/05 05/01/00(b) 160,586
20 NYS HFA (Multi-Family) 7.300 11/01/04 11/01/99(b) 22,374
1,070 NYS HFA (Multi-Family) 10.000 11/15/99 05/15/96(b) 1,075,521
10 NYS HFA (Non-Profit) 6.100 11/01/98 -- 10,000
50 NYS HFA (Non-Profit) 6.100 11/01/99 -- 50,250
25 NYS HFA (Non-Profit) 6.400 11/01/05 -- 25,250
25 NYS HFA (Non-Profit) 6.400 11/01/09 11/01/01(b) 25,100
40 NYS HFA (Non-Profit) 6.400 11/01/00 -- 40,400
10 NYS HFA (Non-Profit) 6.400 11/01/04 -- 10,100
10 NYS HFA (Non-Profit) 6.500 11/01/01 -- 10,100
150 NYS HFA (Non-Profit) 6.600 11/01/03 -- 150,000
5 NYS HFA (Non-Profit) 6.600 11/01/02 -- 5,179
5 NYS HFA (Non-Profit) 6.600 11/01/11 11/01/98(b) 5,000
20 NYS HFA (Non-Profit) 6.600 11/01/01 -- 21,549
5 NYS HFA (Non-Profit) 6.600 11/01/10 11/01/98(b) 5,050
75 NYS HFA (Non-Profit) 6.600 11/01/05 11/01/98(b) 79,007
1,420 NYS HFA (Non-Profit) 6.750 11/01/11 11/01/98(b) 1,468,905
5 NYS HFA (Non-Profit) 6.750 11/01/96 -- 5,050
61 NYS HFA (Non-Profit) 6.875 11/01/10 11/01/98(b) 62,525
195 NYS HFA (Phillips Village) 6.700 02/15/02 -- 206,084
250 NYS HFA (Phillips Village) 6.700 08/15/02 -- 264,605
85 NYS HFA (Phillips Village) 6.900 08/15/04 -- 91,090
175 NYS HFA (Phillips Village) 6.900 02/15/04 -- 187,203
420 NYS HFA (Simeon Dewitt) 8.000 11/01/18 05/01/98(b) 426,640
105 NYS HFA (Urban Rental) 8.000 11/01/99 11/01/98(b) 116,736
480 NYS HFA (Westchester/HELP) 7.500 11/01/00 09/24/98(c) 521,669
65 NYS HFA (Westchester/HELP) 7.550 11/01/02 05/01/00(b) 71,128
25 NYS Medcare 7.100 11/01/00 -- 25,500
5 NYS Medcare 7.200 11/01/01 11/01/99(b) 5,150
105 NYS Medcare 7.250 11/01/02 11/01/99(b) 108,150
205 NYS Medcare 7.250 11/01/03 11/01/99(b) 211,150
5 NYS Medcare 7.750 08/15/08 08/15/98(b) 5,488
615 NYS Medcare (Brookdale Hospital) 6.600 08/15/03 -- 646,088
260 NYS Medcare (Brookdale Hospital) 6.600 02/15/03 -- 272,444
2,045 NYS Medcare (Central Suffolk) 5.875 11/01/05 12/12/03(c) 2,066,882
365 NYS Medcare (Downtown Hospital) 6.550 02/15/06 -- 386,575
945 NYS Medcare (Downtown Hospital) 6.550 08/15/06 -- 1,002,872
95 NYS Medcare (Good Samaritan) 7.650 11/01/01 11/01/97(b) 102,055
35 NYS Medcare (H&N) 7.000 02/15/99 -- 37,352
10 NYS Medcare (H&N) 7.100 11/01/98 -- 10,100
595 NYS Medcare (H&N) 7.100 11/01/99 -- 606,900
25 NYS Medcare (H&N) 7.100 08/15/01 02/15/98(b) 26,901
90 NYS Medcare (H&N) 7.250 02/15/09 02/15/99(b) 95,234
25 NYS Medcare (H&N) 7.250 02/15/98 -- 26,346
10 NYS Medcare (H&N) 7.500 02/15/09 02/15/99(b) 10,652
100 NYS Medcare (H&N) 7.500 02/15/08 02/15/98(b) 110,060
100 NYS Medcare (H&N) 8.625 02/15/06 02/15/96(b) 102,000
1,655 NYS Medcare (H&N) 8.750 02/15/15 02/15/96(b) 1,694,025
335 NYS Medcare (H&N) 8.875 08/15/27 02/15/98(b) 363,153
960 NYS Medcare (H&N) 9.000 02/15/26 02/15/96(b) 982,867
3,610 NYS Medcare (H&N) 10.000 11/01/06 11/01/96(b) 3,806,853
75 NYS Medcare (Insured Hospital) 7.250 02/15/12 08/15/99(b) 79,130
</TABLE>
6
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 140 NYS Medcare (Insured Hospital) 7.625% 02/15/02 08/15/97(b) $ 150,121
75 NYS Medcare (Insured Hospital) 7.875 02/15/07 08/15/97(b) 80,504
10 NYS Medcare (Insured Mtg.) 7.100 02/15/00 -- 10,632
800 NYS Medcare (Insured Mtg.) 9.375 11/01/16 11/01/96(b) 843,216
670 NYS Medcare (Insured Nursing) 10.250 01/01/24 03/08/98(b) 692,780
1,345 NYS Medcare (Long Beach) 7.625 02/15/06 08/15/98(b) 1,491,403
20 NYS Medcare (Mental Health) 0.000 08/15/01 -- 14,753
15 NYS Medcare (Mental Health) 0.000 02/15/03 08/15/98(a) 10,227
30 NYS Medcare (Mental Health) 0.000 08/15/03 08/15/98(b) 18,941
10 NYS Medcare (Mental Health) 0.000 02/15/03 08/15/98(b) 6,550
85 NYS Medcare (Mental Health) 6.850 08/15/00 -- 92,101
50 NYS Medcare (Mental Health) 7.150 08/15/03 08/15/99(b) 54,013
40 NYS Medcare (Mental Health) 7.200 02/15/04 08/15/99(b) 43,550
45 NYS Medcare (Mental Health) 7.400 08/15/00 -- 49,775
25 NYS Medcare (Mental Health) 7.400 02/15/02 02/15/00(b) 27,754
15 NYS Medcare (Mental Health) 7.500 08/15/07 02/15/01(b) 16,705
400 NYS Medcare (Mental Health) 7.625 02/15/07 08/15/99(b) 441,992
105 NYS Medcare (Mental Health) 7.750 08/15/10 02/15/00(b) 113,614
3,000 NYS Medcare (Mental Health) 8.250 02/15/99 02/15/97(b) 3,219,990
10 NYS Medcare (Mental Health) 8.875 08/15/07 08/15/97(b) 10,688
820 NYS Medcare (Nassau/Maimonides) 9.375 01/15/03 07/15/96(b) 822,993
1,820 NYS Medcare (Nassau/Maimonides) 9.600 01/15/23 07/15/96(b) 1,827,844
50 NYS Medcare (North Shore) 7.125 11/01/08 08/15/01(b) 53,121
1,945 NYS Medcare (Nyack) 8.200 11/01/04 11/01/98(b) 2,121,937
5,515 NYS Medcare (Nyack) 8.300 11/01/13 11/01/98(b) 6,050,948
10 NYS Medcare (N. General) 7.000 02/15/98 -- 10,427
275 NYS Medcare (N. General) 7.100 02/15/99 -- 294,275
25 NYS Medcare (N. General) 7.150 08/15/01 -- 27,168
100 NYS Medcare (N. General) 7.200 02/15/03 02/15/99(b) 107,430
940 NYS Medcare (N. General) 7.350 08/15/09 02/15/99(b) 1,004,597
40 NYS Medcare (Secured Hospital) 7.000 02/15/07 02/15/99(b) 41,652
25 NYS Medcare (Secured Hospital) 7.150 02/15/03 08/15/01(b) 27,073
715 NYS Medcare (Wychoff) 6.850 02/15/00 -- 754,790
80 NYS Medcare (Wychoff) 6.850 08/15/00 -- 84,634
250 NYS Medcare (Wychoff) 6.950 02/15/01 -- 265,803
80 NYS Medcare (Wychoff) 6.950 08/15/01 -- 85,478
250 NYS Thruway 0.000 01/01/05 -- 151,433
385 NYS Thruway 0.000 01/01/06 -- 220,043
2,000 NYS Thruway 0.000 01/01/02 -- 1,450,600
530 NYS Thruway 0.000 01/01/01 -- 408,105
5,310 NYS Thruway 0.000 01/01/00 -- 4,319,685
5,440 NYS Thruway 0.000 01/01/98 -- 4,925,104
10 NYS UDC 6.600 01/01/11 01/01/01(b) 10,100
25 NYS UDC (Correctional Facilities) 0.000 01/01/03 -- 17,072
6,360 NYS UDC (Correctional Facilities) 0.000 01/01/08 -- 3,378,178
250 NYS UDC (Correctional Facilities) 6.700 01/01/99 -- 264,415
605 NYS UDC (Correctional Facilities) 9.375 09/01/99 09/01/97(b) 613,591
100 NYS UDC (Ctr. of Indust. Innovation) 7.000 01/01/06 01/01/97(b) 102,100
25 NYS UDC (Ctr. of Indust. Innovation) 7.000 01/01/13 01/01/97(b) 25,525
1,000 NYS UDC (OCC) 7.875 01/01/20 01/01/01(a) 1,179,600
50 NYS UDC (South Mall) 0.000 01/01/05 06/24/04(c) 31,162
120 NYS UDC (South Mall) 0.000 01/01/05 06/24/04(c) 72,211
35 NYS UDC (South Mall) 0.000 01/01/03 -- 24,162
20 NYS (SONYMA) Mortgage, 1 0.000 10/01/14 04/01/96(b) 3,553
125 NYS (SONYMA) Mortgage, 1 0.000 10/01/98 04/01/96(b) 99,198
120 NYS (SONYMA) Mortgage, 10-A 7.800 10/01/03 04/01/98(b) 129,377
</TABLE>
7
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 25 NYS (SONYMA) Mortgage, 10-A 8.000% 10/01/08 04/01/98(b) $ 26,258
15 NYS (SONYMA) Mortgage, 11 6.875 04/01/16 10/01/98(b) 15,518
100 NYS (SONYMA) Mortgage, 12 0.000 10/01/00 10/01/97(b) 74,366
60 NYS (SONYMA) Mortgage, 12 0.000 10/01/99 10/01/97(b) 47,759
30 NYS (SONYMA) Mortgage, 12 0.000 04/01/99 10/01/97(b) 25,589
15 NYS (SONYMA) Mortgage, 12 6.800 10/01/97 -- 15,590
25 NYS (SONYMA) Mortgage, 12 6.800 04/01/97 -- 25,695
840 NYS (SONYMA) Mortgage, 2 0.000 10/01/14 04/01/96(b) 144,472
50 NYS (SONYMA) Mortgage, 44 7.000 10/01/07 11/01/06(b) 53,937
25 NYS (SONYMA) Mortgage, 5 0.000 10/01/99 -- 17,898
30 NYS (SONYMA) Mortgage, 5 0.000 04/01/99 -- 22,454
95 NYS (SONYMA) Mortgage, 5 8.700 10/01/96 -- 96,900
40 NYS (SONYMA) Mortgage, 5 8.900 04/01/97 04/01/96(b) 41,200
20 NYS (SONYMA) Mortgage, 5 8.900 10/01/97 04/01/96(b) 20,400
165 NYS (SONYMA) Mortgage, 5 9.100 10/01/98 04/01/96(b) 168,300
30 NYS (SONYMA) Mortgage, 5 9.100 04/01/98 04/01/96(b) 30,750
10 NYS (SONYMA) Mortgage, 5 9.750 10/01/10 04/01/96(b) 10,250
205 NYS (SONYMA) Mortgage, 6 0.000(+)04/01/10 04/01/01(b) 199,791
10 NYS (SONYMA) Mortgage, 6 0.000 10/01/98 -- 7,971
5 NYS (SONYMA) Mortgage, 6 0.000 04/01/98 -- 4,162
5 NYS (SONYMA) Mortgage, 6 0.000 04/01/99 -- 3,813
40 NYS (SONYMA) Mortgage, 6 8.200 10/01/96 -- 40,800
15 NYS (SONYMA) Mortgage, 6 8.200 04/01/96 -- 15,150
25 NYS (SONYMA) Mortgage, 6 8.400 04/01/97 -- 25,500
30 NYS (SONYMA) Mortgage, 6 8.400 10/01/97 04/01/96(b) 31,200
55 NYS (SONYMA) Mortgage, 7 0.000 10/01/99 -- 40,745
35 NYS (SONYMA) Mortgage, 7 0.000 10/01/98 -- 28,271
75 NYS (SONYMA) Mortgage, 7 0.000(+)10/01/14 04/01/98(b) 63,310
50 NYS (SONYMA) Mortgage, 7 7.700 04/01/96 -- 50,293
1 NYS (SONYMA) Mortgage, 7 8.500 10/01/04 10/01/96(b) 1,030
330 NYS (SONYMA) Mortgage, 7 8.625 04/01/11 10/01/96(b) 337,890
30 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/00 10/01/98(b) 22,523
60 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/01 10/01/98(b) 41,839
25 NYS (SONYMA) Mortgage, 8-A 0.000 04/01/02 10/01/98(b) 16,882
20 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/98 -- 17,353
70 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/02 10/01/98(b) 45,610
85 NYS (SONYMA) Mortgage, 8-A 0.000 04/01/01 10/01/98(b) 61,316
50 NYS (SONYMA) Mortgage, 8-B 7.200 04/01/99 -- 52,502
50 NYS (SONYMA) Mortgage, 8-C 6.900 04/01/96 -- 50,308
25 NYS (SONYMA) Mortgage, 8-C 7.500 04/01/99 10/01/97(b) 26,585
40 NYS (SONYMA) Mortgage, 8-C 7.900 10/01/01 10/01/97(b) 42,838
85 NYS (SONYMA) Mortgage, 8-C 8.300 10/01/06 10/01/97(b) 88,934
25 NYS (SONYMA) Mortgage, 8-D 7.700 10/01/99 01/04/98(b) 26,985
100 NYS (SONYMA) Mortgage, 8-D 8.200 10/01/06 01/04/98(b) 104,725
25 NYS (SONYMA) Mortgage, 8-E 6.750 04/01/96 -- 25,129
80 NYS (SONYMA) Mortgage, 8-E 8.100 10/01/17 04/01/98(b) 83,760
40 NYS (SONYMA) Mortgage, 8-F 7.200 10/01/00 07/01/98(b) 43,213
20 NYS (SONYMA) Mortgage, 8-F 7.800 10/01/06 07/01/98(b) 20,947
100 NYS (SONYMA) Mortgage, 9-A 6.700 10/01/98 10/01/96(b) 103,587
25 NYS (SONYMA) Mortgage, 9-A 6.900 04/01/00 10/01/96(b) 25,652
20 NYS (SONYMA) Mortgage, 9-A 7.000 04/01/01 10/01/96(b) 20,761
100 NYS (SONYMA) Mortgage, 9-A 7.250 10/01/06 10/01/96(b) 103,374
145 NYS (SONYMA) Mortgage, 9-B 8.000 10/01/02 07/01/97(b) 153,947
230 NYS (SONYMA) Mortgage, 9-B 8.125 10/01/07 07/01/97(b) 244,396
6,055 NYS (SONYMA) Mortgage, 9-B 8.300 10/01/17 07/01/97(b) 6,326,870
90 NYS (SONYMA) Mortgage, 9-C 8.400 10/01/02 10/01/97(b) 94,541
</TABLE>
8
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 185 NYS (SONYMA) Mortgage, 9-C 8.700% 10/01/07 10/01/97(b) $ 199,574
5 NYS (SONYMA) Mortgage, 9-C 8.800 10/01/17 10/01/97(b) 5,402
35 NYS (SONYMA) Mortgage, 9-E 7.375 10/01/98 -- 37,694
440 NYS (SONYMA) Mortgage, 9-E 8.000 10/01/03 04/01/98(b) 462,229
70 NYS (SONYMA) Mortgage, AA 7.700 04/01/99 -- 74,311
95 NYS (SONYMA) Mortgage, BB-2 7.125 10/01/98 07/25/97(c) 100,929
210 NYS (SONYMA) Mortgage, BB-2 7.850 10/01/08 10/01/97(b) 222,489
12,570 NYS (SONYMA) Mortgage, BB-2 7.950 10/01/15 10/01/97(b) 13,270,903
40 NYS (SONYMA) Mortgage, EE-1 8.000 10/01/10 04/14/99(b) 42,068
1,425 NYS (SONYMA) Mortgage, EE-1 8.050 04/01/16 04/14/99(b) 1,528,156
45 NYS (SONYMA) Mortgage, EE-2 7.050 10/01/00 08/25/98(c) 49,505
275 NYS (SONYMA) Mortgage, EE-3 7.125 10/01/00 08/25/98(c) 291,090
100 NYS (SONYMA) Mortgage, EE-4 7.800 10/01/13 10/01/00(b) 105,574
25 NYS (SONYMA) Mortgage, FF 7.000 04/01/97 -- 25,756
50 NYS (SONYMA) Mortgage, FF 7.100 10/01/98 -- 53,100
4,875 NYS (SONYMA) Mortgage, FF 7.950 10/01/14 10/01/97(b) 5,198,408
1,055 NYS (SONYMA) Mortgage, GG 8.125 04/01/20 10/01/97(b) 1,099,795
55 NYS (SONYMA) Mortgage, HH-2 7.700 10/01/09 10/01/99(b) 58,006
130 NYS (SONYMA) Mortgage, HH-3 7.875 10/01/09 06/07/00(b) 140,607
120 NYS (SONYMA) Mortgage, II 0.000 10/01/07 04/01/99(b) 50,480
40 NYS (SONYMA) Mortgage, II 0.000 10/01/06 04/01/99(b) 19,086
50 NYS (SONYMA) Mortgage, II 0.000 04/01/07 04/01/99(b) 21,665
45 NYS (SONYMA) Mortgage, II 0.000 10/01/05 04/01/99(b) 22,918
175 NYS (SONYMA) Mortgage, II 0.000 04/01/09 04/01/99(b) 65,492
75 NYS (SONYMA) Mortgage, II 0.000 04/01/05 04/01/99(b) 40,135
300 NYS (SONYMA) Mortgage, II 0.000 10/01/09 04/01/99(b) 112,530
520 NYS (SONYMA) Mortgage, II 0.000 10/01/08 04/01/99(b) 210,803
125 NYS (SONYMA) Mortgage, JJ 0.000 04/01/01 -- 93,413
10 NYS (SONYMA) Mortgage, JJ 0.000 10/01/00 -- 7,508
145 NYS (SONYMA) Mortgage, JJ 0.000 04/01/05 10/01/99(b) 81,045
180 NYS (SONYMA) Mortgage, JJ 0.000 04/01/03 10/01/99(b) 116,127
170 NYS (SONYMA) Mortgage, JJ 0.000 10/01/05 10/01/99(b) 90,918
50 NYS (SONYMA) Mortgage, JJ 0.000 10/01/08 10/01/99(b) 21,387
75 NYS (SONYMA) Mortgage, JJ 0.000 10/01/01 -- 54,500
35 NYS (SONYMA) Mortgage, JJ 0.000 10/01/03 10/01/99(b) 21,651
200 NYS (SONYMA) Mortgage, JJ 0.000 04/01/07 10/01/99(b) 90,494
10 NYS (SONYMA) Mortgage, JJ 0.000 10/01/04 10/01/99(b) 5,514
100 NYS (SONYMA) Mortgage, JJ 0.000 04/01/02 -- 71,710
75 NYS (SONYMA) Mortgage, JJ 0.000 04/01/00 -- 58,511
60 NYS (SONYMA) Mortgage, JJ 0.000 04/01/06 10/01/99(b) 29,321
255 NYS (SONYMA) Mortgage, JJ 0.000 10/01/06 10/01/99(b) 126,965
20 NYS (SONYMA) Mortgage, KK 7.050 10/01/99 02/07/98(c) 21,648
100 NYS (SONYMA) Mortgage, MM-1 7.100 10/01/97 -- 104,349
30 NYS (SONYMA) Mortgage, MM-1 7.200 10/01/98 -- 32,050
100 NYS (SONYMA) Mortgage, MM-1 7.700 10/01/04 02/04/01(b) 114,382
50 NYS (SONYMA) Mortgage, MM-1 7.750 04/01/02 02/04/01(b) 57,059
10 NYS (SONYMA) Mortgage, MM-2 7.550 04/01/02 10/01/00(b) 11,336
25 NYS (SONYMA) Mortgage, NN 7.100 04/01/00 01/01/00(b) 27,648
30 NYS (SONYMA) Mortgage, QQ 7.700 10/01/12 04/01/00(b) 32,003
25 NYS (SONYMA) Mortgage, RR 7.700 10/01/10 10/01/00(b) 26,346
25 NYS (SONYMA) Mortgage, TT 6.850 10/01/01 -- 27,705
20 NYS (SONYMA) Mortgage, TT 6.950 04/01/02 -- 21,209
25 NYS (SONYMA) Mortgage, TT 7.200 10/01/05 04/01/03(b) 26,799
25 NYS (SONYMA) Mortgage, UU 6.850 10/01/99 -- 26,978
75 NYS (SONYMA) Mortgage, UU 6.950 04/01/00 -- 82,244
50 NYS (SONYMA) Mortgage, VV 6.300 04/01/97 -- 51,150
</TABLE>
9
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 5 NYS (SONYMA) Mortgage, VV 6.400% 04/01/98 -- $ 5,202
40 NYS (SONYMA) Mortgage, VV 6.600 04/01/00 -- 43,407
25 NYS (SONYMA) Mortgage, VV 6.800 10/01/02 -- 28,111
60 NYS (SONYMA) Mortgage, VV 6.900 04/01/03 -- 68,696
50 NYS (SONYMA) Mortgage, VV 7.000 04/01/04 10/01/03(b) 52,899
545 NYS (SONYMA) Mortgage, VV 7.250 10/01/07 10/01/01(b) 578,915
20 Oneida Healthcare Corp. 7.100 08/01/11 08/01/01(b) 23,081
25 Oneida IDA (Metlife Insurance) 7.250 12/01/97 06/01/96(b) 25,375
18,500 Onondaga Res Rec 6.625 05/01/00 06/19/98(c) 19,234,080
8,260 Onondaga Res Rec 6.875 05/01/06 01/12/04(c) 8,558,103
750 Orleans IDA (Anchor Bank) 7.500 12/01/96 06/01/96(b) 752,093
1,805 Oswego County (Res Rec) 6.500 06/01/04 05/23/03(c) 1,960,735
50 Port Authority NY/NJ 7.700 09/01/05 05/01/96(b) 51,979
225 Port Authority NY/NJ 7.750 12/01/04 02/01/96(b) 230,182
20 Portchester Community Devel. 8.100 08/01/10 10/16/04(c) 23,797
3,106 Puerto Rico Aqueduct & Sewer 7.250 03/21/00 05/04/98(c) 3,198,449
20 Puerto Rico Electric 7.000 07/01/07 07/01/02(b) 21,917
45 Puerto Rico HFC 0.000 04/15/08 09/15/98(b) 19,694
25 Puerto Rico HFC 0.000 10/15/04 09/15/98(b) 14,492
5 Puerto Rico HFC 6.700 04/01/97 -- 5,132
45 Puerto Rico HFC 6.800 10/01/99 -- 48,103
15 Puerto Rico HFC 6.900 04/15/98 -- 15,752
20 Puerto Rico HFC 7.000 04/15/99 -- 21,406
40 Puerto Rico HFC 7.000 04/01/00 -- 43,406
10 Puerto Rico HFC 7.100 04/01/02 04/01/00(b) 10,969
15 Puerto Rico HFC 7.100 10/15/00 10/01/98(b) 16,154
65 Puerto Rico HFC 7.300 04/01/06 04/01/00(b) 69,869
30 Puerto Rico HFC 7.400 04/01/07 04/01/00(b) 33,012
20 Puerto Rico HFC 7.450 10/15/09 09/27/00(b) 21,876
60 Puerto Rico HFC 7.500 10/01/15 04/01/02(b) 65,457
250 Puerto Rico HFC 8.250 06/01/11 06/01/97(b) 253,520
790 Puerto Rico IME (Amer. Cyanamid) 8.750 05/01/13 05/01/96(b) 808,849
10 Puerto Rico IME (Baxter Travenol) 8.000 09/01/12 09/01/98(b) 11,085
1,770 Puerto Rico IME (C.R. Bard) 11.750 07/01/01 07/01/96(b) 1,835,614
15 Puerto Rico IME (Dr. Pila Hospital) 7.700 08/01/08 08/01/98(a) 16,559
1,050 Puerto Rico IME (Dr. Pila Hospital) 7.850 08/01/28 08/01/98(a) 1,167,380
605 Puerto Rico IME (Squibb) 6.500 07/01/04 12/13/00(c) 609,538
65 Puerto Rico PCR 8.000 01/01/03 07/01/96(b) 66,300
140 Puerto Rico Port Auth. 7.300 07/01/07 07/01/96(b) 142,800
20 Puerto Rico Urban Renewal 0.000 10/01/97 -- 18,208
105 Puerto Rico Urban Renewal 7.875 10/01/04 10/01/99(b) 116,304
35 Radisson Senior Citizens Hsg. 12.000 11/01/11 11/01/97(b) 40,001
50 Rensselaer Hsg. Auth. (Renwyck) 7.650 01/01/11 01/01/03(b) 57,698
25 Riverhead Hsg. Devel. 8.250 08/01/10 08/01/96(b) 26,250
3,275 Rochester Hsg. Auth. (Crossroads) 7.300 07/01/05 07/14/01(c) 3,609,967
95 Rochester Hsg. Auth. (Stonewood) 5.900 09/01/09 02/04/04(c) 95,739
855 Rockland IDA (DC) 7.000 03/01/03 01/10/00(c) 904,145
90 San Juan Puerto Rico GO 8.200 07/01/96 -- 90,900
50 San Juan Puerto Rico GO 8.200 07/01/96 -- 51,000
345 Saratoga IDA (ARC) 7.250 03/01/01 11/05/98(c) 354,950
250 Saratoga IDA (City Center) 10.000 10/01/08 10/01/99(b) 289,593
2,290 Saratoga IDA (Saratoga Sheraton) 6.750 12/31/07 02/12/02(c) 2,344,868
50 Schodack IDA (Hamilton Printing) 7.600 07/01/00 -- 57,580
50 Steuben IDA (Corning Glass) 7.625 07/01/99 07/01/96(b) 51,000
240 Steuben IDA (Corning Glass) 9.000 11/01/04 11/01/97(b) 244,800
20 St. Casimer's Elderly Hsg. 7.000 09/01/98 -- 20,500
</TABLE>
10
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 840 St. Casimer's Elderly Hsg. 7.375% 09/01/10 03/01/96(b) $ 879,010
30 St. Lawrence IDA (Res Rec) 8.250 01/01/02 01/01/99(b) 32,625
10 St. Lawrence IDA (Solid Waste) 7.600 01/01/97 -- 10,205
10 St. Lawrence IDA (Solid Waste) 8.300 01/01/99 -- 10,791
5 Suffolk County GO 6.000 09/15/97 -- 5,148
10 Suffolk County GO 6.400 02/01/00 -- 10,100
210 Suffolk IDA (ADP) 7.750 04/01/18 04/01/96(b) 215,775
195 Suffolk IDA (Fil-Coil) 8.000 12/01/05 12/29/01(c) 197,761
20 Suffolk IDA (Marbar) 8.150 03/01/04 03/01/96(b) 20,702
85 Suffolk IDA (OPWC) 7.000 11/01/02 02/23/00(c) 94,428
570 Suffolk IDA (Printing Assoc.) 7.438(v)01/01/01 12/28/98(c) 575,700
1,530 Suffolk IDA (Rimland Facilities) 6.563(v)12/01/04 05/04/01(c) 1,530,000
2,450 Sunnybrook Elderly Hsg. Corp. 11.250 12/01/14 04/01/96(b) 2,595,457
200 Syracuse IDA (Genesee St.) 6.388(v)12/01/98 07/16/97(c) 204,000
1,010 Syracuse IDA (Rockwest Center) 7.000 12/01/05 06/12/02(c) 1,015,010
505 Syracuse IDA (Rockwest Center) 7.250 06/01/03 04/18/00(c) 548,940
1,240 Syracuse IDA (St. Joseph's Hospital) 7.250 06/01/01 07/22/99(c) 1,332,318
195 Tomkins IDA (Kendall at Ithaca) 7.875 06/01/15 06/01/05(b) 200,920
415 Troy IDA (City of Troy) 7.000 03/15/96 -- 416,033
915 Troy IDA (City of Troy) 7.250 03/15/98 09/20/97(c) 940,519
1,055 Troy IDA (City of Troy) 7.500 03/15/00 09/20/99(c) 1,093,560
1,225 Troy IDA (City of Troy) 7.600 03/15/02 09/20/01(c) 1,261,934
90 Tupper Lake Housing Devel. 8.125 10/01/10 03/15/02(b) 94,500
1,010 Ulster County Res Rec 5.500 03/01/02 -- 1,015,686
1,080 Ulster County Res Rec 5.500 03/01/03 -- 1,078,639
1,190 Union Elderly Hsg. 10.000 04/01/13 04/01/96(b) 1,225,700
15 Union Elderly Hsg. 10.750 04/01/96 -- 15,300
5 Union Elderly Hsg. 11.000 04/01/00 04/01/96(b) 5,200
605 Union Hsg. (Methodist Homes) 6.800 11/01/04 05/29/01(c) 636,648
80 Union Hsg. (Methodist Homes) 7.700 04/01/96 -- 80,554
90 Union Hsg. (Methodist Homes) 7.800 04/01/97 -- 92,894
95 Union Hsg. (Methodist Homes) 7.900 04/01/98 -- 100,251
720 University of V. I. 6.500 10/01/99 04/26/98(c) 735,732
100 Utica GO 5.900 12/01/02 -- 107,090
580 Utica GO 6.000 01/15/06 -- 570,552
560 Utica GO 6.250 01/15/07 -- 559,093
15 Utica GO 7.900 01/15/05 01/15/96(a) 15,375
15 Utica GO 7.900 01/15/02 01/15/96(a) 15,375
5 Utica GO 7.900 01/15/00 01/15/96(a) 5,100
10 Utica Hsg. Corp. (Brookhaven) 0.000 07/01/99 -- 7,507
10 Utica Senior Citizen Hsg. 0.000 01/01/97 -- 9,237
35 Utica Senior Citizen Hsg. 0.000 01/01/98 -- 29,818
25 Utica Senior Citizen Hsg. 0.000 01/01/02 -- 15,473
100 Utica Senior Citizen Hsg. 0.000 01/01/99 -- 79,109
1,980 Utica Senior Citizen Hsg. 10.230 07/01/22 07/01/97(b) 2,189,964
15 Valley Health & Devel. 7.850 02/01/02 08/13/98(c) 17,732
1,975 V. I. Port Auth. (Marine Division) 7.400 11/01/99 11/01/96(b) 1,999,846
1,570 V. I. Port Auth. (Marine Division) 7.550 11/01/99 11/01/96(b) 1,590,018
1,580 V. I. Airport 7.875 10/01/97 04/18/97(c) 1,673,820
16,245 V. I. Airport 8.100 10/01/05 10/01/98(b) 17,586,837
15 V. I. HFA 7.550 06/01/03 12/01/98(b) 17,280
260 V. I. Highway 7.650 10/01/99 -- 288,998
990 V. I. Public Finance Auth. 6.500 10/01/99 05/03/98(c) 1,034,322
665 V. I. Public Finance Auth. 6.625 10/01/99 05/03/98(c) 697,578
1,500 V. I. Public Finance Auth. 6.800 10/01/00 -- 1,591,785
200 V. I. Public Finance Auth. 7.700 10/01/04 10/01/99(b) 221,074
</TABLE>
11
<PAGE>
Limited Term New York Municipal Fund
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 2,455 V. I. Water & Power 7.200% 01/01/02 09/22/99(c) $ 2,599,182
4,200 V. I. Water & Power 7.400 07/01/11 07/01/01(b) 4,571,070
17,500 V. I. Water & Power 8.500 01/01/10 01/01/98(b) 19,265,925
830 V. I. (GO/HUGO) 7.750 10/01/06 10/01/01(b) 912,577
45 Wayne IDA (Hauser Machine) 7.700 12/01/09 -- 48,693
475 Westchester IDA (BAH) 7.250 12/01/09 12/15/04(c) 492,271
1,000 Westchester IDA (JBFS) 6.500 12/15/02 12/15/01(d) 1,045,990
30 Yonkers IDA (Waldbaum) 9.250 03/01/98 03/01/96(b) 30,720
-------------
Total municipal bond investments (cost $556,737,707) - 98.3% $ 573,913,437
Other assets and liabilities (net) - 1.7% 10,038,123
-------------
Net assets at market - 100.0% $ 583,951,560
=============
</TABLE>
* Call Date, Put Date or Average Life of Sinking Fund if applicable as
detailed:
(a) Date of prerefunded call.
(b) Optional call date; corresponds to the most conservative yield
calculation.
(c) Average life because of mandatory (sinking fund) principal payments
prior to maturity.
(d) Date of mandatory put.
(e) Date of conversion.
(v) Variable rate security that fluctuates as a percentage of prime rate.
(+) Security will convert to a fixed coupon at a date prior to maturity.
See accompanying notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Limited Term New York Municipal Fund - December 31, 1995
====================================================================================================================================
Portfolio Abbreviations Industry Concentrations
The Fund had the following concentrations at December 31, 1995
To simplify the listings of the Limited Term New York (as a percentage of total investments):
Municipal Fund's holdings in the Portfolio of
Investments, we have abbreviated the descriptions of # of % of
many of the securities per the table below: Issuers Portfolio
------- -----------
<S> <C> <C> <C> <C>
ACLDD Adults and Children with Learning Resource Recovery, Pollution Control Revenue 9 20.9%
and Developmental Disabilities Municipal Tax Obligations (GO) 12 15.4%
ARC Association of Retarded Citizens Health Care 65 14.2%
BAH Beth Abraham Hospital Transportation 13 6.4%
BOCES Board of Cooperative Educational Housing, Single-Family 36 6.2%
Services Housing, Multi-Family 54 6.2%
CNR College of New Rochelle Government and Public Facilities 23 5.5%
COP Certificate of Participation Electric and Gas Utilities 10 5.5%
CSD Central School District NonProfit, Higher Education 19 5.4%
DC Dominican College Water and Telephone Utilities 8 4.7%
ECC Erie Community College NonProfit, Other 17 3.0%
E,E&T Ear, Eye and Throat Private Lease Revenue 13 1.9%
EPG Elmhurst Parking Garage Service Companies 16 1.8%
ERDA Energy Research and Manufacturing, Non-Durable Goods 6 1.7%
Development Authority Manufacturing, Durable Goods 21 1.2%
GO General Obligation ----------
HDC Housing Development Corporation Total 100.0%
HELP Homeless Economic Loan Program ==========
HFA Housing Finance Agency =======================================================================
HFC Housing Finance Corporation
H&N Hospital and Nursing Asset Composition Table
IDA Industrial Development Authority December 31, 1995 (Unaudited)
IME Industrial Medical and Environmental Percentage
JBFS Jewish Board of Family Services Rating of Investments
LILCO Long Island Lighting Corporation --------------------------
MTA Metropolitan Transit Authority AAA 3.2%
OCC Onondaga Convention Center AA 10.0%
OPWC Ocean Park Water Corporation A 44.8%
PCP Pooled Capital Program BBB 37.4%
PCR Pollution Control Revenue BB 0.7%
Res Rec Resource Recovery Facility B 0.0%
RSP Riverbank State Park CCC 0.0%
SONYMA State of New York Mortgage Agency CC 0.0%
SWMA Solid Waste Management Authority C 0.0%
UCP United Cerebral Palsy Not rated 3.9%
UDC Urban Development Corporation -----------
V.I. United States Virgin Islands Total 100.0%
WWH Wyandach/Wheatley Heights ===========
ALL bonds are current with their debt service requirements. All unrated
bonds are backed by mortgage liens and guarantees by the issuer. 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 Investment Policy Committee of the Board of Trustees, 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 Investment Policy Committee, 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 are included in the "Not
Rated" category. For further information see "Credit Quality" in the
Prospectus.
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Limited Term New York Municipal Fund
====================================================================================================================================
Statement of Assets and Liabilities - December 31, 1995
<S> <C> <C> <C>
Assets Represented by
Investments at market Paid in capital $576,865,610
(Cost $556,737,707) $573,913,437 Undistributed net investment income 23,004
Cash and cash equivalents 9,343 Accumulated net realized loss on
Interest receivable 10,616,097 investment transactions (10,112,784)
Receivable for capital Net unrealized appreciation
shares sold 2,296,206 of investments 17,175,730
Receivable for -------------
investments sold 3,747,531 Total - Representing net assets
Organizational costs 7,083 applicable to capital shares outstanding $583,951,560
Other assets 39,801 =============
-------------
Total assets 590,629,498 Computation of net asset value and offering price
------------- Class A Shares:
Net asset value and redemption price per share
Liabilities ($567,536,530 divided by 173,104,221 shares) $3.28
Payable for investments purchased 64,918 =============
Payable for capital shares
repurchased 1,827,949 Offering price per share (100/98 of $3.28)* $3.35
Demand note payable to Bank =============
(Interest rate 6.50% at 12/31/95) 4,660,000 Class B Shares:
Net asset value, redemption price and offering price per
Other liabilities 125,071 share ($16,415,030 divided by 4,999,577 shares)+ $3.28
------------- =============
Total liabilities 6,677,938
-------------
Net Assets $583,951,560 * On single retail sales of less than $100,000. On sales of $100,000
============= or more and on group sales the offering price is reduced.
+ Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
================================================================================
Statement of Operations
Year Ended December 31, 1995
Investment Income:
Interest $ 33,382,364
------------
Expenses:
Management fees 2,282,690
Distribution fees - Class A 1,303,084
Distribution fees - Class B 41,927
Shareholder servicing agent fees - Class A 288,420
Shareholder servicing agent fees - Class B 3,858
Accounting and auditing 186,954
Shareholder communications 87,460
Custodian fees 72,055
Trustees' fees 34,850
Registration fees 32,219
Legal fees 27,757
Organizational expense 10,000
Miscellaneous 39,965
Interest 339,342
------------
Total expenses 4,750,581
Expenses paid indirectly (Note 4) (46,771)
------------
Net expenses 4,703,810
------------
Net investment income 28,678,554
------------
Realized and unrealized
gain (loss) on investments:
Net realized loss on investments (2,258,016)
Net increase in unrealized
appreciation of investments 22,706,855
------------
Net gain on investments 20,448,839
------------
Net increase in net assets
resulting from operations $ 49,127,393
============
================================================================================
Statement of Changes in Net Assets
Year Ended December 31, 1995 1994
---- ----
Increase in net assets -
Operations:
Net investment income $ 28,678,554 $ 25,050,473
Net realized loss
from security transactions (2,258,016) (7,321,925)
Increase (decrease) in unrealized
appreciation 22,706,855 (20,760,177)
------------- -------------
Increase (decrease) in net assets
resulting from operations 49,127,393 (3,031,629)
------------- -------------
Distributions to shareholders from:
Net investment income - Class A (28,615,850) (24,794,117)
Net investment income - Class B (276,083) --
------------- -------------
Total distributions to shareholders (28,891,933) (24,794,117)
------------- -------------
Fund share transactions:
Increase in net assets derived from
Fund share transactions (Note 5) 67,264,518 66,416,986
------------- -------------
Increase in net assets 87,499,978 38,591,240
Net assets:
Beginning of year 496,451,582 457,860,342
------------- -------------
End of year (including undistributed
net investment income of $23,004 -
1995 and $236,382 - 1994) $ 583,951,560 $ 496,451,582
============= =============
See accompanying notes to financial statements.
14
<PAGE>
Limited Term New York Municipal Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Class A Class B
-------------------------------------------------------------------------------------
Period ended Period ended
Year ended December 31, December 31, December 31,
1995 1994 1993 1992 1991(a) 1995(b)
-------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $3.15 $3.33 $3.18 $3.07 $3.00 $3.21
-------- -------- -------- -------- ------- -------
Income from investment operations:
Net investment income 0.18 0.16 0.17 0.18(e) 0.05 0.11
Net realized and unrealized gain
(loss) on investments 0.13 (0.18) 0.15 0.11 0.07 0.07
-------- -------- -------- -------- ------- -------
Total from investment operations 0.31 (0.02) 0.32 0.29 0.12 0.18
-------- -------- -------- -------- ------- -------
Less distributions to shareholders from:
Net investment income (0.18) (0.16) (0.17) (0.18) (0.05) (0.11)
-------- -------- -------- -------- ------- -------
Total distributions (0.18) (0.16) (0.17) (0.18) (0.05) (0.11)
-------- -------- -------- -------- ------- -------
Net asset value, end of period $3.28 $3.15 $3.33 $3.18 $3.07 $3.28
======== ======== ======== ======== ======= =======
Total return (excludes sales load) 10.01% (0.60%) 10.06% 9.45% 17.47%(d) 8.48%(d)
Ratios/supplemental data:
Net assets, end of period
(000 omitted) $567,537 $496,452 $457,860 $150,096 $18,659 $16,415
Ratio of total expenses to
average net assets 0.90%(f) 0.89% 0.89% 0.83%(e) 0.83%(d) .90%(d)(f)
Ratio of total expenses (excluding
interest) to average net assets (c) 0.84%(f) 0.84% 0.86% 0.78%(e) 0.74%(d) .85%(d)(f)
Ratio of net investment income to
average net assets 5.44% 5.12% 4.94% 5.33%(e) 5.22%(d) 5.21%(d)
Portfolio turnover rate 22.34% 34.58% 17.08% 59.87% 1.42% 22.34%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) The Fund commenced operations on September 18, 1991.
(b) For the period from May 1, 1995 (inception of offering) to December 31,
1995.
(c) During the periods shown above, the Fund's interest expense was
substantially offset by the incremental interest income generated by bonds
purchased with borrowed funds.
(d) Annualized.
(e) Net of fees waived or reimbursed by Fielding Management Company, Inc., the
Fund's previous investment adviser, and Rochester Fund Services, Inc.,
which amounted to $0.01 per share. Without reimbursement, the ratios would
have been 1.14%, 1.09%, and 5.02%, respectively.
(f) Effective in 1995, the ratios do not include reductions from custodian fee
offset arrangements. The 1995 ratio of total expenses and the ratio of
total expenses (excluding interest) to average net assets are 0.89% and
0.83%, respectively, for Class A shares and 0.89% and 0.84%, respectively,
for Class B shares after including this reduction. See Note 4.
15
<PAGE>
Limited Term New York Municipal Fund
Notes to Financial Statements
December 31, 1995
Note 1. Significant Accounting Policies:
The Limited Term New York Municipal Fund (the "Fund") is a series of Rochester
Portfolio Series which is registered under the Investment Company Act of 1940,
as amended, as a non-diversified, open-end management investment company. The
investment objective of the Fund is to provide shareholders with as high a level
of 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. The Fund intends to invest primarily in a portfolio of investment
grade obligations with a dollar weighted average effective maturity of five
years or less.
The Fund offers both Class A and Class B shares. Class A shares are sold with a
front-end sales charge. Class B shares may be subject to a contingent deferred
sales charge. Both classes of shares have identical rights to earnings, assets
and voting privileges, except that each class has its own distribution plan,
expenses directly attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements:
Security valuation and transactions. Investments are valued at market value
using information available from an approved pricing service, quotations from
bond dealers, market transactions in comparable securities, and various
relationships between securities. Security transactions are accounted for on the
trade date. Cost is determined and realized gains and losses are based upon the
specific identification method for both financial statement and federal income
tax purposes. Interest income is recorded on the accrual basis. In computing net
investment income, the Fund amortizes premiums and accretes original issue
discount. For municipal bonds purchased after April 30, 1993 and subsequently
sold at a gain, market discount is accreted at the time of sale (to the extent
of the lesser of the accrued market discount or the disposition gain) and is
treated as taxable income, rather than capital gain.
Securities purchased on a when issued basis. The Fund may purchase portfolio
securities on a when issued or delayed delivery basis. These securities have
been registered by a municipality or government agency, but have not been issued
to the public. The Fund may contract to purchase these securities in advance of
issuance. Delivery of the security and payment therefor may take place a month
or more after the date of the transaction. At the time of purchase, the Fund
sets aside sufficient investment securities as collateral to meet such purchase
commitments. Such securities are subject to market fluctuations during this
period. The current value of these securities is determined in the same manner
as for other portfolio securities.
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.
Distributions to shareholders. Income distributions are declared and recorded
separately for Class A and Class B shares each day based on the projected net
investment income for a period, usually one month, calculated as if earned pro
rata throughout the period on a daily basis. Such distributions are paid
monthly. Capital gain distributions, if any, are recorded on the ex-dividend
date and paid annually. The amount and character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences include
the treatment of wash sales. Reclassifications are made to the Fund's capital
accounts to reflect income and gains available for distribution (or available
capital loss carryovers) under income tax regulations.
Federal income taxes. During any particular year, the Fund is required to
distribute certain minimum amounts of net realized capital gains and net
investment income in order to avoid a federal income or excise tax. It is the
Fund's intention to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
taxable and tax-exempt income to shareholders. Therefore, the Fund is not
required to record a liability for either federal income or excise tax.
Deferred organizational expenses. The Fund was organized under the laws of
Massachusetts in September, 1991. Deferred organizational expenses in the amount
of $50,000 are being amortized on a straight-line basis over a five year period
ending September, 1996.
16
<PAGE>
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.
Other. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Note 2. Management Fee and Other Transactions with Affiliated Parties:
Ronald H. Fielding, President and a trustee of the Fund, is also an officer,
director and controlling shareholder of Rochester Fund Distributors, Inc.
("RFD"), the Fund's principal underwriter and an officer, director and
controlling shareholder of Rochester Fund Services, Inc. ("RFS"), the Fund's
shareholder servicing, accounting and pricing agent. The Fund's investment
adviser is Rochester Capital Advisors, L.P. ("RCA, L.P."). RCA, L.P. is managed
by Rochester Capital Advisors, Inc. ("RCA"), which serves as the general partner
of RCA, L.P. Mr. Fielding is President, director and controlling shareholder of
RCA. See Note 6.
The management fee payable to RCA, L.P. is based on an annual rate of .50% of
average daily net assets up to $100 million, .45% of average daily net assets on
the next $150 million, .40% of average daily net assets in excess of $250
million but less than $2 billion, and .39% of average daily net assets in excess
of $2 billion. For the year ended December 31, 1995, RCA, L.P. received fees of
$2,282,690 for management and investment advisory services.
The Fund has adopted a distribution plan with respect to its Class A shares (the
"Class A Plan") pursuant to Rule 12b-1 of the Investment Company Act of 1940, as
amended, which permits the Fund to pay up to .25% per annum of its relative net
assets attributable to Class A shares as a service fee in connection with the
maintenance of shareholder accounts. For the year ended December 31, 1995, the
Fund paid distribution fees on the Class A Plan of $1,303,084 to RFD. From this
amount, RFD made service fee payments of $1,177,599 to broker dealers and
financial institutions.
The Fund has adopted a separate distribution plan with respect to its Class B
shares (the "Class B Plan") pursuant to Rule 12b-1 of the Investment Company Act
of 1940, as amended, which permits the Fund to pay an asset based sales charge
of up to .75% per annum of its relative net assets attributable to Class B
Shares for certain sales related distribution expenses and a service fee of up
to .25% per annum of relative net assets attributable to Class B shares for
expenses incurred in connection with the maintenance of shareholder accounts.
Currently, the Board of Trustees has limited the payment of the asset based
sales charge to .50% per annum of relative net assets. For the year ended
December 31, 1995, the Fund paid distribution fees on the Class B Plan of
$41,927 to RFD.
For the year ended December 31, 1995, RFD, acting as underwriter, received
$217,615 as its portion of the sales charge from the sale of Class A shares of
the Fund. Class B shares are sold without an initial sales charge; however, RFD
pays a sales commission of 2% (including a prepaid service fee of .25%) to
dealers who sell Class B shares. A contingent deferred sales charge is imposed
on Class B share redemptions within four years of purchase. During 1995, RFD
received contingent deferred sales charges of $6,001 from redemptions of Class B
shares.
The shareholder servicing agent fee charged by RFS to the Fund is based on an
annual maintenance fee of $24.12 for each Class A shareholder account and $26.02
for each Class B shareholder account. For the year ended December 31, 1995, RFS
received $288,420 and $3,858 in shareholder servicing agent fees for Class A and
Class B shares, respectively. During 1995, the Fund was charged $161,850 by RFS
for pricing and accounting services.
Note 3. Portfolio Information:
Purchases at cost and proceeds from sales of investment securities for the year
ended December 31, 1995 were $173,641,785 and $116,500,489, respectively.
During 1995, 13.71% of interest income was derived from investments in U.S.
territories which are exempt from federal, all states and New York City income
taxes.
The aggregate gross unrealized appreciation, depreciation, and net unrealized
appreciation of investment securities based on cost of securities for federal
income tax purposes, were $17,402,013, $270,823 and $17,131,190, respectively.
The aggregate tax cost of investments owned as of December 31, 1995 was
$556,782,247.
17
<PAGE>
At December 31, 1995, capital loss carryovers available (to the extent provided
in regulations) to offset future realized gains were approximately as follows:
Year of Expiration Capital Loss Carryover
------------------ ----------------------
1999 $ 3,000
2000 167,000
2001 353,600
2002 7,294,000
2003 2,250,700
-----------
$10,068,300
===========
The availability of these loss carryovers may be limited in a given year but
will be used to the extent possible to offset any future realized gains.
Note 4. Bank Borrowings and Expense Offset Arrangements:
The Fund may borrow up to 10% of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The Fund has
entered into an agreement which enables it to participate with other funds
managed by RCA, L.P. or an affiliate of RCA, L.P., in an unsecured line of
credit with a bank which permits borrowings up to $70 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the New York Interbank Offer Rate (NIBOR) plus .75%. Borrowings are payable on
demand.
The Fund had borrowings of $4,660,000 outstanding at December 31, 1995. For the
year ended December 31, 1995, the average monthly loan balance was $4,344,747 at
a weighted average interest rate of 7.521%. The maximum amount of borrowings
outstanding at any month-end was $12,000,000.
The Fund's custodian bank has agreed to reduce its fees when the Fund maintains
cash on deposit in the non-interest bearing custody account. For the year ended
December 31, 1995, custodian fee offset arrangements reduced expenses by
$46,771.
Note 5. Shares of Beneficial Interest:
The Agreement and Declaration of Trust permits the Fund to issue an unlimited
number of shares of beneficial interest of each class, par value $.01 per share.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Class A:
Year ended December 31, 1995 1994
---- ----
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold 41,287,431 $ 133,924,167 51,295,766 $ 166,022,617
Shares issued on reinvestment
of distributions 5,901,142 19,071,036 5,032,266 16,164,567
Shares repurchased (31,589,856) (101,861,389) (36,116,865) (115,770,198)
------------- ------------- ------------- -------------
Net increase in
shares outstanding 15,598,717 $ 51,133,814 20,211,167 $ 66,416,986
============= ============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
18
<PAGE>
Class B: Period May 1-
December 31, 1995
-----------------
Shares Amount
------ ------
Shares sold 5,028,893 $ 16,226,929
Shares issued on reinvestment
of distributions 50,215 163,547
Shares repurchased (79,531) (259,772)
------------ ------------
Net increase
in shares outstanding 4,999,577 $ 16,130,704
============ ============
Note 6. Subsequent Event:
On January 4, 1996, RCA, L.P. (the Fund's investment adviser), RFD (the Fund's
principal underwriter) and RFS (the Fund's shareholder servicing, accounting and
pricing agent) consummated a transaction with OppenheimerFunds, Inc. ("OFI"),
which resulted in the sale to OFI of certain assets of RCA, L.P., RFD and RFS,
including the transfer of the investment advisory agreement and other contracts
with the Fund and the use of the name "The Rochester Funds". This transaction
received approval by the Fund's shareholders on December 20, 1995.
19
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of the Limited Term New York Municipal Fund
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Limited Term New York Municipal
Fund (the "Fund") at December 31, 1995, the results of its operations, the
changes in its net assets and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1995 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Rochester, New York
January 30, 1996
20
<PAGE>
FEDERAL TAX INFORMATION (Unaudited)
In early 1996, shareholders received information regarding all dividends and
distributions paid to them by the Fund during calendar year 1995. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the year ended December 31, 1995
are eligible for the corporate dividend-received deduction. 100% of the
dividends were derived from interest on municipal bonds and are not subject to
federal, New York State and New York City income taxes. For the state income tax
reporting purposes of non-New York State shareholders, the distribution breaks
down as follows: New York State (86.30%), Guam (0.55%), Puerto Rico (1.64%),
Virgin Islands (10.64%), American Samoa (0.87%).
During 1995, 12.77% of this tax-exempt income was derived from "private activity
bonds". These are municipal bonds used to finance privately operated facilities.
The interest on these bonds is not taxable for most investors. For the few
investors subject to the alternative minimum tax, the interest from these bonds
is considered a preference item.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
- --------------------------------------------------------------------------------
SHAREHOLDER MEETINGS (Unaudited)
On December 20, 1995, a special meeting of shareholders was held at which the
following were approved: (a) new Investment Advisory Agreement with
OppenheimerFunds, Inc. (Proposal 1), (b) election of the six trustees named
below (Proposal 2) , (c) new Amended and Restated Distribution and/or Service
Plans and Agreements with OppenheimerFunds Distributor, Inc. (Proposal 3) (d)
ratification of Price Waterhouse LLP as independent accountants of the Fund for
fiscal year 1995 (Proposal 4). The following is a report of the votes cast:
Withheld/
Proposal For Against Abstain Total
- -------- --- ------- ------- -----
Proposal 1 103,099,412 3,008,201 3,397,685 109,505,298
Proposal 2
John Cannon 106,475,141 3,030,157 109,505,298
Paul Clinton 106,485,064 3,030,234 109,505,298
Thomas Courtney 106,476,346 3,028,952 109,505,298
Lacy Herrmann 106,475,881 3,029,417 109,505,298
George Loft 106,338,561 3,166,737 109,505,298
Bridget Macaskill 106,432,482 3,072,816 109,505,298
Proposal 3 102,118,407 2,997,521 4,389,370 109,505,298
Proposal 4 105,139,518 1,706,482 2,659,298 109,505,298
<PAGE>
- --------------------------------------------------------------------------------
Limited Term New York Municipal Fund
- --------------------------------------------------------------------------------
- ---------------------------------
The Value of Portfolio Management
- ---------------------------------
Most investors recognize that the greatest advantage of fund investing is
professional management: the devotion of an investment team to direct the fund's
portfolio, reduce the potential impact of adversity, and create an investment
with the potential to earn strong yields.
The Limited Term New York Municipal Fund pursues issues that are often
overlooked by the market in general. When properly investigated, selected for
their potential and included in the portfolio, these issues not only have the
potential to increase the Fund's yield, but they work in collaboration to
maintain the low average effective maturity of the Fund.
Our portfolio management works to realize this potential. Unlike "target"
funds that limit the scope of their research criteria to only those bonds with a
specific maturity, the Limited Term New York Municipal Fund considers a broad
spectrum of issues ranging in maturity from less than 1 year through 20 years.
Appropriately melded into the portfolio, these issues all average to an
effective "limited term" maturity of approximately 5 years. This laddered
approach not only broadens the Fund, but has the potential to both reduce risk
and increase yield as well.
Evaluating the opportunities to control the Fund's maturity take time and
effort, but we believe that, if you're paying for portfolio management, you
should receive the extra effort and resources necessary to potentially enhance
the portfolio.
- --------------------------------------
The Rochester Division Investment Team
- --------------------------------------
Under the direction of Ron Fielding, the Fund's investment team is
flexible, responsive, and takes the time and effort to research new issues and
assess their value as a potential addition to the portfolio. This diligence,
when further applied to secondary market considerations, supports a management
style that maximizes the interests of the shareholders.
[PHOTOGRAPH]
Standing: Ted Everett, Rich Stein, Dan Loughran.
Seated: Tony Tanner, Ron Fielding, Mike Rosen.
Ronald H. Fielding, CFA; Chairman, Rochester Division of OppenheimerFunds,
Inc., has directed the long term investment strategies and overall composition
of the portfolio since its inception. He received his MA in Economics and his
MBA in Finance from the University of Rochester. Before establishing Rochester
Capital Advisors, L.P., the prior investment advisor to the Limited Term New
York Municipal Fund, he gained extensive banking and investment experience as an
officer of two multi-billion dollar New York State bank holding companies.
The Rochester Division investment team also includes:
Michael S. Rosen, CFA; President, Rochester Division of OppenheimerFunds
Inc.
Anthony A. Tanner, CFA; Vice President and Assistant Portfolio Manager
Richard A. Stein,CFA; Vice President
Edward N. Everett, Assistant Vice President
Daniel G. Loughran, Junior Research Analyst
LIMITED TERM NEW YORK MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
Limited Term New York Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------
A Broad Portfolio-Across and Within New York State
- --------------------------------------------------
As you thumb through the investment portfolio, you may notice that the
Limited Term New York Municipal Fund currently includes over 600 issues - a
broad spectrum of bonds from all across New York State.(1) Portfolio holdings
from around the state help to reduce the Fund's volatility. By also considering
bonds from a wide variety of industries and different maturities, the Fund
attempts to reduce the impact of adverse conditions in any one particular
sector.
[ARTWORK]
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATION
(PERCENT OF TOTAL INVESTMENTS)
- --------------------------------------------------------------------------------
Resource Recovery, Pollution Control Revenue 20.9%
- --------------------------------------------------------------------------------
Municipal Tax Obligations (GO) 15.4%
- --------------------------------------------------------------------------------
Health Care 14.2%
- --------------------------------------------------------------------------------
Transportation 6.4%
- --------------------------------------------------------------------------------
Housing, Single-Family 6.2%
- --------------------------------------------------------------------------------
Housing, Multi-Family 6.2%
- --------------------------------------------------------------------------------
Government and Public Facilities 5.5%
- --------------------------------------------------------------------------------
Electric and Gas Utilities 5.5%
- --------------------------------------------------------------------------------
NonProfit, Higher Education 5.4%
- --------------------------------------------------------------------------------
Water and Telephone Utilities 4.7%
- --------------------------------------------------------------------------------
NonProfit, Other 3.0%
- --------------------------------------------------------------------------------
Private Lease Revenue 1.9%
- --------------------------------------------------------------------------------
Service Companies 1.8%
- --------------------------------------------------------------------------------
Manufacturing, Non-Durable Goods 1.7%
- --------------------------------------------------------------------------------
Manufacturing, Durable Goods 1.2%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MATURITY CONCENTRATION
(PERCENT OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Less than 1 Year 18.48%
- --------------------------------------------------------------------------------
1 to 5 Years 51.54%
- --------------------------------------------------------------------------------
5 to 10 Years 22.11%
- --------------------------------------------------------------------------------
10 to 20 Years 7.55%
- --------------------------------------------------------------------------------
20 to 30 Years .32%
- --------------------------------------------------------------------------------
- -----------------------------------------------------
Municipal Bonds-Tax Free Income and Community Support
- -----------------------------------------------------
[ARTWORK]
Many investors consider the advantage of a municipal bond fund like the
Limited Term New York Municipal Fund to be its potential to provide interest
income free from Federal, New York State and New York City personal income
taxes. But the reality is that municipal bonds also provide for much of the
infrastructure of the communities in which we live.
We are proud that the efforts undertaken to strengthen our Limited Term New
York Municipal Fund's portfolio also provide financing for a wide variety of
worthwhile projects in New York State. Public and private colleges, primary
schools for special education and mortgages for first-time home buyers are just
a few of the programs that benefit from your investment.
1. The Limited Term New York Municipal Fund's portfolio is subject to change.
LIMITED TERM NEW YORK MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
Why Percentage Kept is More than Percentage Earned
- --------------------------------------------------------------------------------
[ARTWORK]
The Limited Term New York Municipal Fund provides individual investors with the
opportunity to earn income free of Federal, New York State and New York City
personal income taxes, if applicable.(1) Yet many investors remain unaware of
how advantageous tax-free income can be.
For example, to match the value of a 5.0% tax-free yield, a resident of New
York City in the 38.3% combined tax bracket, would have to find a taxable
investment yielding 8.1%.
Your tax situation, and the specific advantages of tax-free investing, may
be different. For these reasons, we encourage you to develop a long range
financial plan with your financial consultant.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
TAX EXEMPT VS. TAXABLE YIELDS
Effective Effective
Tax Taxable Rate Tax Taxable Rate
Bracket Needed to Equal Bracket Needed to Equal
1996 Taxable Income NYC Residents Current Tax-Free Rate NYS Residents Current Tax-Free Rate
- ------------------------------------------------------------------------------------------------------------------------------------
Single Return Joint Return 5.0% 5.5% 5.0% 5.5%
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
$16,001 - $24,000 $27,001 - $40,100 23.9% 6.57% 7.23% 21.1% 6.34% 6.97%
$24,001 - $58,150 $40,101 - $96,900 35.5% 7.75% 8.53% 33.1% 7.47% 8.22%
$58,151 - $121,300 $96,901 - $147,700 38.3% 8.10% 8.91% 35.9% 7.80% 8.58%
$121,301 - $263,750 $147,701 - $263,750 42.7% 8.73% 9.60% 40.6% 8.42% 9.26%
over $263,750 over $263,750 46.0% 9.26% 10.19% 43.9% 8.91% 9.80%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The tax information and brackets listed above are accurate at the present time.
The table assumes that the investor's highest tax bracket applies to the change
in taxable income resulting from a switch between taxable and non-taxable
investments, that the investor is not subject to the alternative minimum tax and
that state tax payments are fully deductable from Federal tax payments. Your
actual bracket will vary depending on your income, investments and deductions.
You should consult your tax advisor regarding current tax legislation and how
tax laws affect your own personal financial situation. These calculations are
for illustrative purposes only and are not intended to show the Fund's
performance.
- ------------------------------------
Risk and Reward-Striking the Balance [ARTWORK]
- ------------------------------------
The Limited Term New York Municipal Fund generates tax-free income by
investing in securities that, in aggregate, have an average effective maturity
of no more than 5 years. (At year end, the average effective maturity was 3.6
years.)
Investors should consider average effective maturity an important indicator
of the balance between risk and reward. Most municipal bond funds are comprised
of longer maturity bonds; they can pay a potentially higher yield, but
experience greater market price volatility that translates to fluctuating share
prices.(2)
However, with only just 34.7% of the volatility of the average long-term
New York municipal bond fund, the Limited Term New York Municipal Fund Class A
actually provided 106.3% of the yield of the average long-term New York
Municipal Bond Fund during 1995.(3)
Over 6% more yield. Now that's a balance that's in your favor.
1. A portion of the Fund's income distributions may be subject to income taxes.
Capital gains distributions, if any, are taxable as capital gains. For investors
subject to the alternative minimum tax, some of the Fund's distributions may
increase that tax.
2. Long term bonds and bond funds generally offer higher yields and greater
volatility than shorter term bonds and bond funds.
3. Volatility is based on the standard deviation (a widely accepted measure of
volatility) of monthly total returns of the Limited Term New York Municipal Fund
and the average return of the New York municipal debt fund category (88 funds).
Total return figures published each month during 1995 by Lipper Analytical Fixed
Income Performance Analysis include the reinvestment of dividends and capital
gains, if applicable, as well as any change in share value. Sales charges, if
included, would affect results. Yield figures are based on standardized SEC
30-day yields published by Lipper Analytical Yield Survey. The standard
deviation was computed by the Rochester Division of OppenheimerFunds, Inc.
LIMITED TERM NEW YORK MUNICIPAL FUND
<PAGE>
- --------------------------------------
Welcome to the OppenheimerFunds Family
- --------------------------------------
[PHOTOGRAPH]
Bridget A. Macaskill, President
and CEO, OppenheimerFunds, Inc.
[PHOTOGRAPH]
Ronald H. Fielding
Chairman, Rochester Division
[PHOTOGRAPH]
Michael S. Rosen
President, Rochester Division
With the recent vote by shareholders to appoint OppenheimerFunds, Inc. as
the investment adviser to the Limited Term New York Municipal Fund, we are glad
to welcome you to the OppenheimerFunds family.
Let us first assure you that it is our full intention to maintain The
Rochester Funds' reputation as an innovative force in the management of New York
municipal bond funds. We continue to see the Limited Term New York Municipal
Fund, with its average effective maturity of 5 years or less, as an important
option to traditionally managed municipal bond funds, and we are pleased to say
that the Fund continues to be managed by the same portfolio management team and
in the same investment style.
At OppenheimerFunds, our goal is to provide superior investment products
and services to help investors meet their long-term financial goals. With the
completion of The Rochester Funds acquisition, we currently manage (with a
subsidiary) more than $40 billion in assets, including more than 40 mutual
funds. Now, as an Oppenheimer fund shareholder, we invite you to explore this
broad spectrum of investments designed to increase the flexibility and
diversification of your investment portfolio.
Again, all of us at OppenheimerFunds look forward to serving you and to
helping you meet your investment objectives in the years to come.
- -------------------------
OppenheimerFunds Services
- -------------------------
On or about March 11th, shareholders of the Limited Term New York Municipal
Fund will be afforded the opportunity to take advantage of the special
privileges that traditional Oppenheimer fund investors have known for years.
These services, designed to keep you in-the-know and on-the-go, are your
access to current account information, informative news, automatic investment
plans and more.
o Account transactions and transfers are just a toll-free telephone call
away at 1-800-852-8457 during normal business hours. Plus, enroll in AccountLink
and use our telephone transaction feature to make investments directly from a
bank checking or savings account.
o Automated information on your account or any of the Oppenheimer funds is
available 24 hours a day, 7 days a week with OppenheimerFunds PhoneLink at
1-800-533-3310.
o Insightful information on the economy and issues that affect your
investments is available 24 hours a day on the OppenheimerFunds Information
Hotline - 1-800-835-3104.
Call our Toll-Free Customer Service today at 1-800-525-7048 for more information
on how to take advantage of your new financial relationship with the
OppenheimerFunds family.
[ARTWORK]
- --------------------------------------------------------------------------------
PLEASE NOTE: These services will be made available to Limited Term New York
Municipal Fund shareholders beginning on or about March 11th.
- --------------------------------------------------------------------------------
LIMITED TERM NEW YORK MUNICIPAL FUND
<PAGE>
[LOGO] LIMITED TERM
NEW YORK
MUNICIPAL FUND
The Rochester Funds
A Division of OppenheimerFunds, Inc.
350 Linden Oaks
Rochester, New York 14625-2807
716-383-1300
Investment Adviser
OppenheimerFunds, Inc.
Two World Trade Center
New York, NY 10048-0203
Distributor
OppenheimerFunds Distributor, Inc.
Two World Trade Center
New York, NY 10048-0203
Independent Accountants
Price Waterhouse LLP
Rochester, New York
Transfer and Shareholder
Services Agent
OppenheimerFunds Services
P.O. Box 5270
Denver, CO 80217-5270
800-552-1129
This Annual Report is for the information of shareholders of the Limited Term
New York Municipal Fund. It must be preceded or accompanied by a current
prospectus for the Fund. For material information concerning the Fund, please
see the prospectus. Shares of the Fund are not deposits or obligations of any
bank, are not guaranteed by the FDIC or any other agency, and involve investment
risks, including possible loss of the principal amount involved. For free copies
of a prospectus, please contact OppenheimerFunds Distributor, Inc. at the
address listed. The prospectus contains more complete information about the
Fund, including charges and expenses. Please read the prospectus carefully
before investing or sending money.
RA0355.001.0196 February 29, 1996
================================================================================
[LOGO] OppenheimerFunds -----------------
Bulk Rate
OppenheimerFunds Distributor, Inc. US Postage
Rochester Division PAID
350 Linden Oaks Rochester, NY
Rochester, NY 14625-2807 Permit No. 491
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