[LOGO] LIMITED TERM
NEW YORK
MUNICIPAL FUND
TAX-FREE INCOME FOR CAUTIOUS NEW YORK INVESTORS
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[GRAPHICS TO COME]
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Annual Report
December 31, 1996
[LOGO] OppenheimerFunds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
To Fellow Shareholders
- --------------------------------------------------------------------------------
February 8, 1997
Dear Fellow Shareholder,
Over the course of 1996, the Limited Term New York Municipal Fund continued
to provide investors with relatively high tax-free income and low volatility
consistent with its five year average effective portfolio maturity policy.(1)
As an investor, you should always remember that the dividends you receive
are generally exempt from federal, New York State and, if applicable, New York
City personal income taxes. The Fund's 12-month distribution yield (ending
12/31/96) of 5.30%,(2) is equal to 8.6% on a taxable investment for New York
City taxpayers earning more than $99,600 on joint returns ($59,750 for single
filers).
Overall, the municipal market performed respectably for the year,
outperforming other fixed income investments even before the inherent tax
advantage of municipal securities is considered.(3) Bond prices were anything
but stable, despite the Federal Reserve Board's inaction over interest rates
during most of the year. We took advantage of the swings in the market, as we
continually do, to readjust the portfolio and enhance performance.
Overall, however, an investor's returns in 1996 were attributable mostly to
income.
As we enter 1997, we believe conditions for investing in municipal bonds
should remain hospitable. Very low inflation, a benign interest rate environment
and slow economic growth seem likely to continue. As always, we will monitor the
New York municipal market carefully in an attempt to provide our investors with
high, current tax-free income.
Thank you for your confidence.
Sincerely,
/s/ Ronald H. Fielding
Ronald H. Fielding
Portfolio Manager
1. A portion of the Fund's income distributions may be subject to federal,
state and city income taxes. Capital gains distributions, if any, are
taxable as capital gains. For investors subject to the alternative minimum
tax, a portion of the Fund's distributions may increase that tax.
2. Source: Lipper Analytical Services, Inc. Distribution yield is calculated
by dividing the dividends derived from net investment income and
distributions during a stated period, by the maximum offering price on the
last day of the period, which includes the maximum initial sales charge.
Past performance is not predictive of future investment results.
3. Data Source: The Wall Street Journal, January 2, 1997
[PHOTO OF RONALD H. FIELDING]
Ronald H. Fielding, CFA;
Senior Vice President,
OppenheimerFunds, Inc.
and Chairman of the
Rochester Division
================================================
TOTAL RETURN (12/31/96)
- ------------------------------------------------
AVERAGE ANNUAL CUMULATIVE
NAV MOP NAV MOP
- ------------------------------------------------
Class A
1 Year 4.82% 2.72%
5 Year 6.72% 6.29% 38.43% 35.66%
Life of Class 7.15% 6.74% 44.03% 41.15%
(5.28 yr)
- ------------------------------------------------
Class B
1 Year 4.59% 2.10%
Life of Class 6.18% 5.02% 10.51% 8.51%
(1.667 yr)
================================================
For periods ending 12/31/96. 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)
show results of hypothetical investments on
12/31/95, 12/31/91 and 9/18/91 (inception of
class), after deducting the maximum initial
sales charge of 2.00%. Class B returns show
results of hypothetical investments on
12/31/95 and 5/1/95 (inception of class),
after deduction of the applicable contingent
deferred sales charge of 2.50% (1 year) and
2.00% (since inception of class). All returns
include changes in share price and assume
reinvestment of dividends and capital gains
at Net Asset Value. 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. Your investment return and principal
will fluctuate with market conditions, and,
as an investor, your shares may be worth more
or less than their original value upon
redemption.
================================
STANDARDIZED YIELD
For the 30 days ended 12/31/96
- --------------------------------
Class A Class B
4.95% 4.52%
================================
Standardized yield is net investment income
calculated on a yield-to-maturity basis for
the 30-day period ended 12/31/96, divided by
the maximum offering price at the end of the
period, compounded semiannually and then
annualized. Falling net asset values will
tend to artificially raise yields.
Limited Term New York Municipal Fund
<PAGE>
- -----------------------------------------------
Limited Term New York Municipal Fund
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The "Value-Added" Investment Team
[PHOTO OF ANTHONY A. TANNER]
Anthony A. Tanner, CFA; Vice President and Assistant Portfolio Manager,
Rochester Division The Limited Term New York Municipal Fund seeks a maturity
horizon that, by conventional standards, falls between short and intermediate
maturities. The Fund generates tax-free income by investing primarily in
securities that, in aggregate, have an average effective maturity of no more
than five years. (At year end, the Fund's average effective maturity was 4.1
years.)
However, this alone does not make the Fund distinctive. Nor does it explain
the degree of success we have been able to obtain for our shareholders.
We believe that it is our investment approach that separates the Limited
Term New York Municipal Fund from its peers. In essence, we look beyond a bond's
stated final maturity and evaluate its coupon and redemption characteristics to
determine the true "effective maturity" of the issue. And we explore special
situations that are often overlooked by the market in general.
We call this providing "value-added" management.
[PHOTO OF RICHARD A. STEIN]
Richard A. Stein, CFA; Vice President-Credit Analysis, Rochester Division
Many investors believe that we only consider issues with a maturity of less than
five years. While that might be the easy way to keep the portfolio's average
effective maturity down, we believe it is not the most effective.
Fixed-point, or "target" funds, typically restrict the scope of their
research criteria to bonds with one specific maturity. Instead, we utilize a
"laddered" approach, which considers a broad spectrum of issues with maturities
ranging from less than one year through 20 years. Appropriately blended into the
portfolio, these issues all average to an effective "limited term" maturity of
approximately five years. It's an approach that not only broadens the diversity
of the Fund's holdings, but has the potential to both reduce risk and increase
yield as well.
[PHOTO OF DANIEL G. LOUGHRAN]
Daniel G. Loughran, Research Analyst, Rochester Division 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.(1)
However, with just 29.1% of the volatility of the average long-term New
York municipal bond fund during 1996, the Limited Term New York Municipal Fund
Class A ends the year providing 110% of the yield of the average long-term New
York municipal bond fund.(2)
[PHOTO OF MICHAEL S. ROSEN]
Michael S. Rosen, CFA; President, Rochester Division Our desire for shorter
effective maturities leads us to consistently review the viability of premium,
callable bonds -- issues typically unpopular amongst investors precisely because
they appear to have a very short maturity. Fortunately, our learned
understanding of the political subtleties within New York State enables us to
target soon-to-be callable issues that, for whatever reason, can remain
outstanding long after their call date, providing potentially significant yield
advantages -- sometimes through to full maturity.
Evaluating and negotiating opportunities like these take time and effort,
but we believe that, if you're paying for portfolio management, even indirectly,
you should receive the extra effort and resources necessary to potentially
enhance the portfolio.
As we begin a new year, we believe the Limited Term New York Municipal Fund
to be a solid, well-balanced municipal securities portfolio. We believe that
both our strategies and maturity construction combine to benefit today's
cautious, tax-conscious investor.
[GRAPHIC OMITTED]
1. Long term bonds and bond funds generally offer higher yield potential and
greater volatility than shorter term bonds and bond funds.
2. The volatility measure is based on a comparison of the standard deviation
(a widely accepted measure of volatility) of monthly total returns of the
Limited Term New York Municipal Fund during 1996 and the average return of
the 96 mutual funds in the New York municipal debt fund category for the
same time period as defined by Lipper Analytical Services, Inc. Total
return figures, published each month in Lipper Analytical Fixed Income
Performance Analysis, include reinvestment of dividends and capital gains,
if applicable, as well as any change in share value, but do not include
sales charges, which, if included, would affect results. The yield
comparison is based solely on the standardized SEC 30-day yields published
in the Lipper Analytical Yield Survey for December 31, 1996. The standard
deviation was computed by the Rochester Division of OppenheimerFunds, Inc.
Limited Term New York Municipal Fund
<PAGE>
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All That New York Has To Offer
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From Lake Erie to Long Island, the diversity of New York State municipal
bonds helps the Fund's management consider a spectrum of regional holdings that,
when combined in an investment portfolio, can also reduce overall volatility.
Further, by considering bonds from a wide variety of industries and maturities,
the Fund can reduce the impact of adverse conditions in any one particular
sector.
While the sector weightings noted here are subject to change each day the
portfolio is traded, the variety of the Limited Term New York Municipal Fund's
holdings (675 as of 12/31/96) is a key component of the Fund's investment
strategy.
================================
AVERAGE EFFECTIVE
MATURITY CONCENTRATION
(PERCENT OF TOTAL NET ASSETS
AS OF 12/31/96)
- --------------------------------
Less than 1 Year 24.8%
1 to 2 Years 16.5%
2 to 4 Years 14.3%
4 to 6 Years 18.9%
Over 6 Years 24.7%
================================
============================================
INDUSTRY CONCENTRATION
(PERCENT OF TOTAL NET ASSETS AS OF 12/31/96)
- --------------------------------------------
General Obligation 20.4%
Resource Recovery 15.7%
Hospital/Healthcare 11.3%
Single Family Housing 8.3%
Multiple Family Housing 7.4%
Electric Utilities 6.9%
Marine/Aviation Facilities 5.3%
Higher Education 4.7%
Corporate Backed 3.9%
Lease Rental 3.9%
Water Utilities 3.0%
NonProfit Organizations 2.0%
Manufacturing, Non-Durable Goods 1.8%
Pollution Control 1.6%
Education 1.0%
Other 2.2%
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============================================
According to Lipper Analytical
Services, Inc., the Limited Term New
York Municipal Fund Class A is the
#1 performer in the category of
Other States Short/Intermediate
Municipal Debt Funds for the 1-and
5-year periods ended 12/31/96.
These rankings included 38 Other States
Short/Intermediate Municipal Debt Funds for
the 1-year period, but only 2 funds for the
5-year period.
============================================
Source: Lipper Analytical Services, Inc.
12/31/96, an independent mutual fund
monitoring service. The Limited Term New York
Municipal Fund is characterized by Lipper as
an Other States Short/Intermediate Municipal
Debt Fund. Lipper performance does not take
sales charges into consideration and assumes
the reinvestment of dividends and capital
gains distributions. 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.
MORNINGSTAR
* * * * *
Source: Morningstar Mutual Funds, 12/31/96.
The 5-star current ranking is a weighted
average of the Fund's 3- and 5-year rankings,
which were 5 and 5 stars respectively,
weighted 40%/60%. A total of 1129 and 580
municipal bond funds were rated for the 3-
and 5-year periods respectively. Of 1739
municipal bond funds ranked for the 1-year
period, the Fund is also ranked 5 Stars. This
Morningstar proprietary rating reflects
historical risk-adjusted performance as of
December 31, 1996. The ratings are subject to
change every month. The Fund's Class A and
Class B Shares have the same portfolio.
Morningstar, Inc., an independent mutual
fund monitoring service, produces proprietary
monthly rankings of funds in broad investment
categories (domestic equity, international
equity, taxable bond, or municipal) based on
risk-adjusted investment returns, after
considering sales charges and expenses.
Investment return measures a fund's (or
class's) 1-, 3-, 5- and 10-year (depending on
the inception of the fund or class) 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. Top 10%: 5 stars. Next 22.5%: 4
stars. Middle 35%: 3 stars. Next 22.5%: 2
stars. Bottom 10%: 1 star.
Limited Term New York Municipal Fund
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 538,600 Albany Hsg. Auth. 0.000 % 10/01/12 10/01/02 (a) $ 138,980
40 Albany IDA (152 Washington Avenue) 7.500 11/01/01 05/01/97 (b) 40,400
1,975 Albany IDA (H. Johnson Office Pk.) 5.750 03/01/18 03/01/98 (d) 1,965,382
240 Albany IDA (Port of Albany) 6.250 02/01/05 07/10/01 (c) 245,388
30 Albany IDA (Spectrapark) 7.150 12/01/98 ----- 30,319
50 Albany IDA (Spectrapark) 7.500 12/01/03 12/01/98 (b) 53,192
3,525 Albany IDA (Spectrapark) 7.600 12/01/09 12/01/98 (b) 3,741,788
40 Albany Parking Auth. 0.000 09/15/02 ----- 29,398
625 Albany Parking Auth. 0.000 09/15/04 ----- 389,269
25 Albany Parking Auth. 0.000 09/15/03 ----- 16,724
20 Albany Parking Auth. 0.000 09/15/05 ----- 11,768
1,610 Albany Parking Auth. 6.850 11/01/12(s) 11/01/04 (b) 1,732,795
5,000 Albany Parking Auth. 7.150 09/15/16(s) 09/15/01 (b) 5,455,150
645 Allegany IDA (Alfred University) 6.900 09/01/99 ----- 678,863
300 American Samoa Power Auth. 6.600 09/01/97 ----- 304,641
600 American Samoa Power Auth. 6.700 09/01/97 ----- 609,672
300 American Samoa Power Auth. 6.700 09/01/98 ----- 308,817
300 American Samoa Power Auth. 6.750 09/01/99 ----- 312,246
700 American Samoa Power Auth. 6.800 09/01/98 ----- 721,651
700 American Samoa Power Auth. 6.900 09/01/99 ----- 731,157
700 American Samoa Power Auth. 7.000 09/01/00 ----- 737,926
120 Auburn IDA (Alcoa) 7.500 12/01/97 ----- 121,800
50 Auburn IDA (Alcoa) 7.600 12/01/98 06/01/97 (b) 51,000
670 Babylon IDA (WWH Ambulance) 7.000 09/15/01 11/03/99 (c) 701,189
70 Baldwinsville Development Corp. 7.200 06/01/10 07/01/97 (b) 72,800
800 Batavia Hsg. Auth. (Trocaire Place) 7.650 04/01/08 08/14/03 (c) 842,544
185 Brookhaven IDA (Dowling College) 6.200 03/01/01 ----- 196,217
195 Brookhaven IDA (Dowling College) 6.300 03/01/02 ----- 209,307
205 Brookhaven IDA (Dowling College) 6.400 03/01/03 ----- 221,937
275 Brookhaven IDA (Farber) 6.188 (v) 12/01/98 06/01/97 (f) 275,000
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) 1,580,101
1,550 Carnegie Redevelopment Corp. 6.500 09/01/11 05/17/09 (c) 1,589,928
515 Clifton Park (Caldor) 11.250 12/01/12 12/01/98 (b) 536,785
1,570 Clifton Springs Hospital & Clinic 7.000 01/01/01 07/31/99 (c) 1,609,941
40 Clinton County COP 7.000 08/01/97 ----- 40,250
5 Colonie IDA (Capital Plaza) 9.625 11/01/98 05/01/97 (b) 5,075
35 Colonie IDA (Homeowner Association) 7.250 10/01/02 04/01/97 (b) 35,525
35 Cortland IDA (Paul Bunyon) 8.000 07/01/00 07/01/98 (b) 36,749
275 Dutchess IDA (Bard College) 6.500 11/01/03 ----- 286,855
1,175 Dutchess Res Rec (Solid Waste) 6.800 01/01/10 01/01/05 (b) 1,216,842
290 Elmira HDC 7.500 08/01/08 08/01/97 (b) 300,359
15 Elmira HDC 7.500 08/01/09 08/01/97 (b) 15,843
440 Erie IDA (FMC Corp.) 6.000 02/01/03 08/01/97 (b) 439,485
385 Erie IDA (Medaille College) 7.400 12/30/02 09/13/00 (c) 400,858
40 Erie IDA (Medishield) 7.200 08/01/04 08/01/98 (b) 40,800
880 Erie IDA (Mercy Hospital) 5.900 06/01/03 08/21/00 (c) 901,868
960 Essex IDA (International Paper) 6.500 05/01/06 05/01/97 (b) 967,296
1,980 Franklin IDA (Correctional Facilities) 6.375 11/01/02 07/17/00 (c) 2,041,380
60 Franklin IDA (Correctional Facilities) 6.750 11/01/12(s) 11/01/04 (b) 62,393
2,120 Franklin SWMA 6.000 06/01/05 11/19/03 (c) 2,130,155
1,350 Franklin SWMA 6.125 06/01/09 12/28/07 (c) 1,347,476
11,635 Guam Airport Authority 6.600 10/01/10 10/01/05 (b) 12,035,477
1,200 Guam Power Authority 6.300 10/01/12 10/01/04 (b) 1,222,284
3,030 Guam Power Authority 6.375 10/01/08 10/01/04 (b) 3,109,628
2,950 Guam Power Authority 6.625 10/01/14(s) 10/01/04 (b) 3,083,163
905 Hamilton Elderly Hsg. 11.250 01/01/15(s) 05/01/97 (b) 950,304
30 Hempstead IDA (Amer. Ref-Fuel Co.) 6.700 12/01/97 ----- 30,620
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 30 Hempstead IDA (Amer. Ref-Fuel Co.) 7.000 % 12/01/99 06/01/97 (b) $ 30,600
35,500 Hempstead IDA (Amer. Ref-Fuel Co.) 7.375 12/01/05 06/01/97 (b) 36,387,500
30,820 Hempstead IDA (Amer. Ref-Fuel Co.) 7.400 12/01/10 06/01/97 (b) 31,590,500
1,500 Hempstead IDA (Nassau Dist. Energy) 7.750 09/15/15(s) 09/15/97 (b) 1,524,840
20 Hempstead IDA (UCP) 7.500 10/01/09 10/01/99 (b) 21,098
2,700 Herkimer Hsg. Auth. 7.150 03/01/11(s) 09/01/06 (b) 2,898,315
1,970 Herkimer IDA (Burrows Paper) 7.250 01/01/01 08/08/99 (c) 1,920,986
1,000 Herkimer IDA (Burrows Paper) 8.000 01/01/09 10/28/05 (c) 984,830
50 Heuvelton CSD 8.375 06/15/97 ----- 50,726
90 Islip IDA (WJL Realty) 7.400 03/01/99 ----- 95,531
2,160 Islip Res Rec 5.850 07/01/02 ----- 2,300,033
250 Jamestown GO 7.000 03/15/00 ----- 266,980
330 Jamestown GO 7.000 03/15/99 ----- 348,031
3,345 Jamestown Hsg. Auth. 6.125 07/01/10 04/06/05 (c) 3,391,228
460 Jefferson IDA (Stature Electric) 7.500 08/01/99 02/01/97 (b) 467,930
55 Lakeside Village Hsg. Corp. 0.000 09/01/05 03/01/97 (b) 24,769
430 Lincoln Towers Hsg. Corp. 11.250 01/01/15(s) 05/01/97 (b) 451,586
104 Locke Fire District #1 (i) 7.500 07/01/02 08/10/00 (c) 110,275
220 Medina Hsg. Corp. 8.250 08/15/11(s) 02/15/97 (b) 233,200
630 Middleton IDA (Fleurchem) 7.125 12/01/08 05/05/04 (c) 637,258
915 Middleton IDA (Southwinds) 7.250 03/01/03 06/14/00 (c) 914,780
5 Monroe County Airport 0.000 01/01/04 ----- 3,346
30 Monroe County GO 6.100 05/01/03 ----- 30,000
1,325 Monroe IDA (Al Sigl Center) 6.375 12/15/05 05/11/02 (c) 1,350,718
1,135 Monroe IDA (Al Sigl Center) 6.750 12/15/10 02/01/09 (c) 1,163,012
10 Monroe IDA (Cohber) 7.500 12/01/00 12/01/98 (b) 10,429
100 Monroe IDA (Cohber) 7.550 12/01/01 12/01/98 (b) 105,066
931 Monroe IDA (Emil Muller) 6.500 10/01/04 04/05/01 (c) 932,505
1,145 Monroe IDA (GEVA) 7.750 04/01/02 12/20/99 (c) 1,148,080
360 Monroe IDA (GEVA) 7.750 04/01/03 ----- 360,968
131 Monroe IDA (Hahn) 7.250 06/01/98 10/17/97 (c) 131,679
20 Monroe IDA (Hahn) 7.250 06/01/98 10/03/97 (c) 20,155
105 Monroe IDA (Palmer) 6.500 08/01/98 12/17/97 (c) 105,030
2,170 Monroe IDA (Piano Works) 6.625 11/01/06 11/12/02 (c) 2,181,718
300 Monroe IDA (Roberts Wesleyan) 6.200 09/01/05 ----- 304,971
215 Monroe IDA (West End Business) 6.750 12/01/04 11/05/01 (c) 218,915
140 Montgomery IDA (Amsterdam) 5.750 01/15/97 ----- 140,000
145 Montgomery IDA (Amsterdam) 6.000 01/15/98 ----- 145,183
885 Montgomery IDA (Amsterdam) 6.500 01/15/03 02/17/01 (c) 894,921
65 MTA 6.250 07/01/11 07/01/04 (b) 67,009
50 MTA 7.000 07/01/09 07/01/03 (b) 53,100
530 Municipal Assistance Corp. for NYC 6.875 07/01/07 07/01/97 (b) 547,877
50 Municipal Assistance Corp. for NYC 7.000 07/01/06 07/01/97 (b) 51,597
198 Municipal Assistance Corp. for Troy, NY 0.000 01/15/22 ----- 48,153
130 Municipal Assistance Corp. for Troy, NY 0.000 07/15/21 ----- 32,710
430 Nassau IDA (ACLDD) 7.250 10/01/04 08/10/01 (c) 445,760
1,025 Nassau IDA (Farmingdale Market) 10.000 05/01/98 05/01/97 (b) 1,034,738
1,090 New Rochelle IDA (CNR) 6.000 07/01/02 08/11/00 (c) 1,133,360
260 New Rochelle IDA (CNR) 6.300 07/01/03 ----- 273,848
275 New Rochelle IDA (CNR) 6.400 07/01/04 ----- 291,255
2,450 Niagara IDA (Sevenson Hotel) 5.750 05/01/03 04/30/00 (c) 2,464,994
575 North Country Development Auth. 6.600 07/01/02 ----- 599,489
2,995 North Country Development Auth. 6.750 07/01/12(s) 07/01/99 (b) 3,112,045
80 Northern Marianas Island Port Auth. 7.050 10/01/04 04/01/97 (b) 82,000
10 Northern Marianas Island Port Auth. 7.050 10/01/05 04/01/97 (b) 10,300
1,460 NYC GO 0.000 02/01/02 ----- 1,131,923
170 NYC GO 0.000 04/01/00 ----- 153,437
2,000 NYC GO 0.000 08/15/00 ----- 1,686,660
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 1,500 NYC GO 0.000 % 02/01/01 ----- $ 1,230,420
1,000 NYC GO 0.000 02/01/03 ----- 730,900
50 NYC GO 0.000 08/15/01 ----- 40,048
630 NYC GO 0.000 04/01/01 ----- 512,574
50 NYC GO 0.000 02/01/12 02/01/02 (b) 38,255
10 NYC GO 0.000 08/01/03 ----- 9,848
2,500 NYC GO 6.250 08/01/08 ----- 2,610,950
4,050 NYC GO 6.250 08/01/13 08/01/08 (b) 4,123,265
10,550 NYC GO 6.250 08/01/09 08/01/08 (b) 10,954,804
2,000 NYC GO 6.250 08/01/12 08/01/08 (b) 2,041,180
1,050 NYC GO 6.300 08/15/08 08/15/07 (b) 1,097,366
1,000 NYC GO 6.375 02/15/06 ----- 1,060,560
13,500 NYC GO 6.375 08/15/09 08/15/07 (b) 14,111,550
2,105 NYC GO 6.375 08/01/07 08/01/04 (b) 2,177,623
1,890 NYC GO 6.375 08/01/10 08/01/07 (b) 1,962,822
600 NYC GO 6.375 08/01/06 08/01/04 (b) 624,432
970 NYC GO 6.375 08/15/10 08/15/07 (b) 1,007,452
20 NYC GO 6.500 08/01/06 08/01/04 (b) 20,996
110 NYC GO 6.500 08/01/05 08/01/04 (b) 115,786
115 NYC GO 6.500 08/01/08 08/01/04 (b) 120,492
5,600 NYC GO 6.500 08/01/11 08/01/04 (b) 5,832,176
1,550 NYC GO 6.750 10/01/05 10/01/04 (b) 1,660,066
3,250 NYC GO 7.000 02/01/06 02/01/02 (b) 3,498,203
600 NYC GO 7.000 02/01/00 08/01/97 (b) 610,344
1,000 NYC GO 7.000 02/01/01 08/01/97 (b) 1,017,240
10 NYC GO 7.000 02/01/02 08/01/97 (b) 10,167
40 NYC GO 7.000 08/01/09 08/01/97 (b) 41,024
1,360 NYC GO 7.000 08/15/16 08/15/04 (b) 1,465,890
1,000 NYC GO 7.000 02/01/16 02/01/04 (b) 1,074,980
40 NYC GO 7.000 02/01/09 02/01/00 (b) 40,960
40 NYC GO 7.000 02/01/13 08/01/97 (b) 40,652
9,140 NYC GO 7.000 10/01/13 10/01/02 (b) 9,862,791
5 NYC GO 7.000 12/01/10 12/01/97 (b) 5,198
5 NYC GO 7.000 12/01/08 12/01/97 (b) 5,198
730 NYC GO 7.000 10/01/09 10/01/04 (b) 787,728
200 NYC GO 7.100 02/01/10 02/01/04 (b) 215,412
100 NYC GO 7.100 08/15/07 08/15/04 (b) 108,362
2,275 NYC GO 7.100 02/01/09 02/01/02 (b) 2,450,312
1,450 NYC GO 7.200 08/15/08 08/15/04 (b) 1,589,911
25 NYC GO 7.200 02/01/05 08/01/97 (b) 25,423
20 NYC GO 7.200 02/01/15 02/01/02 (b) 21,749
100 NYC GO 7.250 02/01/08 08/15/04 (b) 101,693
115 NYC GO 7.250 02/01/07 08/01/97 (b) 117,588
20 NYC GO 7.300 08/15/98 08/15/97 (b) 20,684
285 NYC GO 7.400 02/01/02 ----- 312,782
500 NYC GO 7.400 02/01/00 ----- 535,635
2,900 NYC GO 7.500 02/01/06 02/01/02 (b) 3,224,481
2,425 NYC GO 7.500 02/01/09 02/01/02 (b) 2,697,497
10,125 NYC GO 7.500 02/01/04 02/01/02 (b) 11,212,526
55 NYC GO 7.500 02/01/05 02/01/02 (b) 59,983
5 NYC GO 7.500 10/01/12 10/01/99 (b) 5,394
50 NYC GO 7.500 08/01/04 08/01/98 (b) 53,185
25 NYC GO 7.500 08/15/02 08/15/97 (b) 25,870
220 NYC GO 7.500 02/01/07 02/01/02 (b) 243,681
5 NYC GO 7.500 08/15/05 08/15/97 (b) 5,176
25 NYC GO 7.500 08/01/01 08/01/99 (b) 26,933
100 NYC GO 7.500 03/15/09 03/15/00 (b) 106,582
150 NYC GO 7.500 08/15/03 08/15/99 (b) 161,921
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 50 NYC GO 7.625 % 02/01/13 02/01/02 (b) $ 55,895
4,020 NYC GO 7.650 02/01/07 02/01/02 (b) 4,523,264
300 NYC GO 7.700 02/01/09 02/01/02 (b) 336,360
1,420 NYC GO 7.750 08/15/09 08/15/01 (a) 1,631,424
1,350 NYC GO 7.750 08/15/05 08/15/01 (a) 1,551,002
5,780 NYC GO 7.750 08/15/06 08/15/01 (a) 6,640,584
295 NYC GO 7.750 08/15/12 08/15/01 (a) 338,923
725 NYC GO 7.750 08/15/01 08/15/99 (b) 781,478
55 NYC GO 7.750 08/15/01 08/15/99 (a) 59,294
135 NYC GO 7.750 08/15/09 08/15/01 (b) 150,717
905 NYC GO 7.750 08/15/12 08/15/01 (b) 1,010,360
1,500 NYC GO 7.750 08/15/07 08/15/01 (b) 1,674,630
2,145 NYC GO 7.750 08/15/06 08/15/01 (b) 2,394,721
650 NYC GO 7.750 08/15/05 08/15/01 (b) 723,119
95 NYC GO 7.875 08/01/04 08/01/00 (b) 105,443
55 NYC GO 7.875 08/01/04 08/01/00 (a) 61,158
1,685 NYC GO 8.000 08/01/03 08/01/01 (b) 1,903,174
1,230 NYC GO 8.000 08/01/03 08/01/01 (a) 1,422,864
115 NYC GO 0.000 (+) 10/01/06 10/01/02 (b) 84,080
1,445 NYC GO 6.600 02/15/10 02/15/07 (b) 1,499,390
110 NYC GO 8.250 11/15/10 11/15/01 (b) 123,505
1,950 NYC GO LIMO 0.000 (+) 02/01/07 02/01/02 (e) 1,478,334
2,000 NYC GO LIMO 0.000 (+) 02/01/04 02/01/00 (b) 1,778,480
75 NYC HDC 0.000 04/01/01 ----- 60,112
90 NYC HDC 0.000 10/01/00 ----- 73,915
15 NYC HDC 0.000 10/01/02 ----- 10,643
40 NYC HDC 0.000 04/01/99 ----- 35,543
90 NYC HDC 0.000 10/01/03 04/01/98 (b) 59,729
30 NYC HDC 0.000 10/01/99 ----- 26,141
30 NYC HDC 0.000 04/01/03 04/01/98 (b) 20,687
60 NYC HDC 0.000 04/01/04 04/01/98 (b) 38,121
290 NYC HDC 0.000 10/01/06 04/01/98 (b) 151,943
50 NYC HDC 0.000 04/01/00 ----- 42,156
50 NYC HDC 0.000 10/01/08 04/01/98 (b) 22,721
30 NYC HDC 0.000 04/01/08 04/01/98 (b) 14,118
70 NYC HDC 0.000 10/01/07 04/01/98 (b) 34,387
80 NYC HDC 0.000 04/01/06 04/01/98 (b) 43,870
200 NYC HDC 7.375 04/01/17 04/01/98 (b) 207,570
1,705 NYC HDC 7.900 02/01/23(s) 02/01/00 (b) 1,811,358
725 NYC HDC 8.100 09/01/23(s) 09/01/00 (b) 780,071
100 NYC Housing Auth., Section 8 8.250 01/01/11 07/01/97 (b) 102,500
1,325 NYC IDA 7.625 11/01/09 05/01/97 (b) 1,328,207
65 NYC IDA 8.125 11/01/09 05/01/97 (b) 66,950
1,160 NYC IDA (ALA Realty) 7.000 12/01/05 05/12/02 (c) 1,193,106
575 NYC IDA (Amster Novelty) 7.375 12/01/05 05/30/02 (c) 582,774
835 NYC IDA (Atlantic Veal & Lamb) 7.250 12/01/08 05/25/04 (c) 837,756
425 NYC IDA (BHMS) 7.500 01/01/07 03/08/03 (c) 425,978
2,945 NYC IDA (Blood Center) 6.800 05/01/02 01/08/00 (c) 3,217,265
815 NYC IDA (CCM) 7.250 12/01/06 01/08/02 (c) 832,449
250 NYC IDA (CNR) 6.200 09/01/10 10/14/08 (c) 256,168
1,281 NYC IDA (Cummins Engine) 6.500 03/01/05 06/24/01 (c) 1,284,957
1,040 NYC IDA (EPG) 7.400 07/30/02 04/11/00 (c) 1,096,118
2,140 NYC IDA (JBFS) 6.500 12/15/02 08/12/00 (c) 2,245,138
490 NYC IDA (Koenig Manufacturing) 7.375 12/01/10 09/13/05 (c) 495,586
20 NYC IDA (Lighthouse) 6.375 07/01/10 07/01/04 (b) 20,187
570 NYC IDA (OHEL) 7.125 03/15/03 06/28/00 (c) 579,747
91 NYC IDA (Paper Enterprises) 10.000 11/01/98 12/26/97 (c) 92,739
3,285 NYC IDA (Plaza Packaging) 7.650 12/01/09 12/01/99 (b) 3,508,610
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 785 NYC IDA (Promotional Slideguide) 7.000 % 12/01/05 05/19/02 (c) $ 779,003
260 NYC IDA (Streamline Plastics) 7.125 12/01/05 05/25/02 (c) 265,572
3,565 NYC IDA (St. Bernard's School) 6.125 12/01/11 01/08/06 (c) 3,583,467
50 NYC IDA (St. Christopher Ottilie) 6.750 07/01/99 ----- 52,562
160 NYC IDA (United Nations School) 6.050 12/01/05 ----- 159,782
170 NYC IDA (United Nations School) 6.100 12/01/06 ----- 169,752
180 NYC IDA (United Nations School) 6.150 12/01/07 ----- 179,719
100 NYC IDA (Visy Paper ) 7.550 01/01/05 03/29/02 (c) 104,714
2,305 NYS COP 7.625 03/01/09 09/01/01 (b) 2,540,225
1,725 NYS COP 8.250 09/01/07 09/01/97 (b) 1,801,573
4,040 NYS COP 8.300 09/01/12(s) 09/01/97 (b) 4,222,568
1,620 NYS Dorm (Brookhaven) 8.700 07/01/06 07/01/97 (b) 1,641,254
30 NYS Dorm (City University) 0.000 07/01/03 07/01/98 (b) 20,042
1,900 NYS Dorm (City University) 6.000 07/01/10 ----- 1,917,290
975 NYS Dorm (City University) 7.200 07/01/01 07/01/00 (a) 1,082,270
8,380 NYS Dorm (City University) 8.125 07/01/07 07/01/98 (b) 8,986,042
5,000 NYS Dorm (City University) 8.125 07/01/08 07/01/98 (a) 5,411,950
100 NYS Dorm (Crouse Irving) 10.250 07/01/04 01/27/97 (b) 102,702
25 NYS Dorm (ECC) 7.100 07/01/09 07/01/97 (b) 25,250
25 NYS Dorm (Higher Education) 8.500 06/01/03 06/01/97 (b) 25,593
25 NYS Dorm (JGB) 7.000 07/01/09 07/01/97 (b) 25,250
200 NYS Dorm (Judicial-Suffolk) 9.000 10/15/01 04/15/97 (b) 216,000
4,565 NYS Dorm (Judicial-Suffolk) 9.000 10/15/01 04/15/97 (b) 4,977,356
40 NYS Dorm (Manhattan E,E&T) 9.500 07/01/12(s) 07/01/97 (b) 40,800
370 NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 07/01/97 (b) 379,250
80 NYS Dorm (Montefiore) 8.625 07/01/10 07/01/97 (b) 81,760
225 NYS Dorm (NY Medical College) 6.875 07/01/03 ----- 235,334
1,000 NYS Dorm (Nyack) 6.250 07/01/13 05/10/09 (c) 1,020,550
75 NYS Dorm (PCP) 7.800 12/01/05 12/01/98 (b) 80,310
2,150 NYS Dorm (State University) 5.750 05/15/10 ----- 2,149,828
2,465 NYS Dorm (State University) 5.750 05/15/09 ----- 2,487,358
1,620 NYS Dorm (State University) 6.375 05/15/14 05/15/05 (b) 1,660,986
25 NYS Dorm (State University) 7.000 05/15/16(s) 05/01/02 (b) 27,040
120 NYS Dorm (St. Francis G&H) 7.375 08/01/10 08/01/00 (b) 129,461
255 NYS Dorm (United Health) 7.150 08/01/07 02/01/00 (b) 273,903
50 NYS Dorm (United Hospital) 6.500 09/15/10 07/01/97 (b) 50,250
175 NYS Dorm (United Hospital) 11.750 09/15/10 07/01/97 (b) 180,250
15 NYS Dorm (University of Rochester) 6.500 07/01/09 07/01/97 (b) 15,406
500 NYS Dorm (Wildwood) 7.300 07/01/15 07/01/01 (a) 565,850
200 NYS Environ. (Consolidated Water) 7.150 11/01/14(s) 11/01/06 (b) 212,658
275 NYS Environ. (Huntington Res Rec) 7.375 10/01/99 10/18/98 (c) 286,891
7,545 NYS Environ. (Huntington Res Rec) 7.500 10/01/12(s) 10/01/99 (b) 7,983,817
50 NYS Environ. (Long Island Water) 10.000 10/01/17 10/01/97 (b) 52,680
370 NYS Environ. (RSP) 7.000 04/01/99 ----- 391,948
595 NYS Environ. (RSP) 7.000 04/01/00 ----- 641,321
330 NYS Environ. (RSP) 7.100 04/01/01 ----- 362,489
2,985 NYS Environ. (RSP) 7.250 04/01/07 04/01/02 (b) 3,412,034
4,080 NYS ERDA (Con Ed) 7.750 01/01/24 01/01/98 (b) 4,259,846
15 NYS ERDA (Con Ed) 9.250 09/15/22 09/15/97 (b) 15,698
175 NYS ERDA (LILCO) 7.500 12/01/06 06/01/97 (b) 176,750
425 NYS ERDA (LILCO) 7.800 12/01/09 06/01/97 (b) 425,608
315 NYS ERDA (LILCO) 8.250 10/01/12 04/01/97 (b) 315,945
2,125 NYS ERDA (Niagara Mohawk) 8.875 11/01/25 05/01/97 (b) 2,183,438
40 NYS GO 6.600 12/01/14 06/01/97 (b) 41,000
1,500 NYS HDC 6.550 10/01/15(s) 04/01/05 (b) 1,567,770
600 NYS HDC 9.625 01/01/19(s) 07/01/97 (b) 622,902
520 NYS HDC 5.750 04/01/07 05/22/03 (c) 528,809
1,970 NYS HDC (Pass Through Certificate) (i) 6.500 09/20/03 11/20/02 (c) 2,043,225
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 80 NYS HFA (Children's Rescue) 7.400 % 11/01/00 ----- $ 84,615
65 NYS HFA (Children's Rescue) 7.500 05/01/01 ----- 69,352
140 NYS HFA (Children's Rescue) 7.500 11/01/01 ----- 150,195
94 NYS HFA (General Housing) 6.500 11/01/03 ----- 94,940
10 NYS HFA (General Housing) 6.600 11/01/05 11/01/00 (b) 10,425
6 NYS HFA (General Housing) 6.750 11/01/98 ----- 6,060
1,435 NYS HFA (Health Facility) 6.000 05/01/07 ----- 1,464,762
2,165 NYS HFA (Health Facility) 6.000 05/01/08 ----- 2,195,007
20,730 NYS HFA (Health Facility) 7.900 11/01/99 08/21/98 (c) 22,003,651
1,535 NYS HFA (HELP/Bronx) 8.050 11/01/05 11/01/99 (b) 1,645,796
2,000 NYS HFA (H&N) 5.625 09/15/13 06/21/12 (c) 1,960,580
55 NYS HFA (H&N) 5.900 11/01/05 ----- 53,900
650 NYS HFA (H&N) 6.800 11/01/02 05/01/97 (b) 663,637
480 NYS HFA (H&N) 6.800 11/01/01 05/01/97 (b) 490,738
55 NYS HFA (H&N) 6.875 11/01/04 05/01/97 (b) 55,550
1,710 NYS HFA (H&N) 6.875 11/01/07 05/01/97 (b) 1,747,842
300 NYS HFA (H&N) 6.875 11/01/11 05/01/97 (b) 306,180
25 NYS HFA (H&N) 6.875 11/01/05 05/01/97 (b) 25,250
45 NYS HFA (H&N) 6.875 11/01/09 05/01/97 (b) 45,743
15 NYS HFA (H&N) 6.875 11/01/10 05/01/97 (b) 15,375
1,550 NYS HFA (H&N) 7.000 11/01/17(s) 05/01/97 (b) 1,596,500
570 NYS HFA (H&N) 8.000 11/01/08 11/01/00 (b) 638,674
5 NYS HFA (H&N) 8.625 11/01/05 05/01/97 (b) 5,050
140 NYS HFA (H&N) 9.000 11/01/17(s) 05/01/97 (b) 142,800
10 NYS HFA (Insured Mtg.) 6.250 08/15/14(s) 08/15/06 (b) 10,298
145 NYS HFA (Meadow Manor) 7.750 11/01/19 05/01/97 (b) 148,045
135 NYS HFA (Monroe) 7.625 05/01/05 05/01/00 (b) 147,454
1,000 NYS HFA (Multi-Family) 6.450 08/15/14(s) 08/15/04 (b) 1,037,630
15 NYS HFA (Multi-Family) 7.300 11/01/04 11/01/99 (b) 16,424
800 NYS HFA (Multi-Family) 7.450 11/01/28(s) 11/01/99 (b) 842,392
875 NYS HFA (Multi-Family) 10.000 11/15/99 05/15/97 (b) 879,253
10 NYS HFA (NonProfit) 6.100 11/01/98 ----- 10,000
50 NYS HFA (NonProfit) 6.100 11/01/99 ----- 50,250
25 NYS HFA (NonProfit) 6.400 11/01/05 ----- 25,250
40 NYS HFA (NonProfit) 6.400 11/01/00 ----- 40,400
35 NYS HFA (NonProfit) 6.400 11/01/09 11/01/01 (b) 35,140
10 NYS HFA (NonProfit) 6.400 11/01/04 ----- 10,100
35 NYS HFA (NonProfit) 6.500 11/01/02 ----- 36,373
10 NYS HFA (NonProfit) 6.500 11/01/01 ----- 10,100
20 NYS HFA (NonProfit) 6.600 11/01/01 ----- 21,164
15 NYS HFA (NonProfit) 6.600 11/01/11 11/01/03 (b) 15,000
75 NYS HFA (NonProfit) 6.600 11/01/05 11/01/98 (b) 78,351
5 NYS HFA (NonProfit) 6.600 11/01/10 ----- 5,050
5 NYS HFA (NonProfit) 6.600 11/01/02 ----- 5,186
225 NYS HFA (NonProfit) 6.600 11/01/03 11/01/98 (b) 228,375
25 NYS HFA (NonProfit) 6.600 11/01/05 11/01/00 (b) 25,438
10 NYS HFA (NonProfit) 6.600 11/01/13 05/01/97 (b) 9,980
1,420 NYS HFA (NonProfit) 6.750 11/01/11 05/01/97 (b) 1,470,637
20 NYS HFA (NonProfit) 6.750 11/01/01 11/01/98 (b) 20,400
61 NYS HFA (NonProfit) 6.875 11/01/10 05/01/97 (b) 62,525
250 NYS HFA (Phillips Village) 6.700 08/15/02 ----- 262,988
195 NYS HFA (Phillips Village) 6.700 02/15/02 ----- 204,705
175 NYS HFA (Phillips Village) 6.900 02/15/04 ----- 186,212
85 NYS HFA (Phillips Village) 6.900 08/15/04 ----- 90,644
415 NYS HFA (Simeon Dewitt) 8.000 11/01/18(s) 05/01/98 (b) 421,350
360 NYS HFA (Westchester/HELP) 7.500 11/01/00 03/05/99 (c) 381,247
60 NYS HFA (Westchester/HELP) 7.550 11/01/02 05/01/00 (b) 64,988
795 NYS LGSC (SCSB) 6.375 12/15/09 10/15/04 (c) 806,035
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 35 NYS Medcare (Beth Israel Medical Center) 7.200 % 11/01/14 05/01/97 (b) $ 35,788
615 NYS Medcare (Brookdale Hospital) 6.600 08/15/03 ----- 643,917
260 NYS Medcare (Brookdale Hospital) 6.600 02/15/03 ----- 271,588
1,000 NYS Medcare (Central Suffolk) 6.125 11/01/16 06/03/12 (c) 880,310
365 NYS Medcare (Downtown Hospital) 6.550 02/15/06 ----- 383,754
945 NYS Medcare (Downtown Hospital) 6.550 08/15/06 ----- 995,558
95 NYS Medcare (Good Samaritan) 7.650 11/01/01 11/01/97 (b) 98,886
1,750 NYS Medcare (Huntington Hospital) 6.500 11/01/14(s) 11/01/06 (b) 1,820,963
1,470 NYS Medcare (H&N) 6.400 08/15/14 08/15/06 (b) 1,555,892
20 NYS Medcare (H&N) 7.000 02/15/99 ----- 20,991
25 NYS Medcare (H&N) 7.100 08/15/01 02/15/98 (b) 26,172
550 NYS Medcare (H&N) 7.100 11/01/99 ----- 562,007
10 NYS Medcare (H&N) 7.100 11/01/98 ----- 10,100
60 NYS Medcare (H&N) 7.100 11/01/00 ----- 61,200
755 NYS Medcare (H&N) 7.200 11/01/01 05/01/97 (b) 771,663
5 NYS Medcare (H&N) 7.250 02/15/98 ----- 5,153
185 NYS Medcare (H&N) 7.250 11/01/03 05/01/97 (b) 190,550
310 NYS Medcare (H&N) 7.250 02/15/09 02/15/99 (b) 335,349
90 NYS Medcare (H&N) 7.250 11/01/02 05/01/97 (b) 92,700
20 NYS Medcare (H&N) 7.300 08/15/10 08/15/99 (b) 21,067
470 NYS Medcare (H&N) 7.400 11/01/16(s) 05/01/97 (b) 480,589
10 NYS Medcare (H&N) 7.500 02/15/09 02/15/99 (b) 10,482
120 NYS Medcare (H&N) 7.500 02/15/08 02/15/98 (b) 128,747
5 NYS Medcare (H&N) 7.750 08/15/08 08/15/98 (b) 5,355
10 NYS Medcare (H&N) 8.000 02/15/28 08/15/98 (b) 10,513
350 NYS Medcare (H&N) 8.000 02/15/27 08/15/97 (b) 364,536
245 NYS Medcare (H&N) 8.625 02/15/06 02/15/97 (b) 246,313
335 NYS Medcare (H&N) 8.875 08/15/27 02/15/98 (b) 350,705
960 NYS Medcare (H&N) 9.000 02/15/26 02/15/97 (b) 965,578
3,090 NYS Medcare (H&N) 10.000 11/01/06 05/01/97 (b) 3,267,675
1,660 NYS Medcare (Insured Hospital) 7.250 02/15/12 08/15/97 (b) 1,721,603
310 NYS Medcare (Insured Hospital) 7.625 02/15/02 08/15/97 (b) 321,941
1,610 NYS Medcare (Insured Hospital) 7.875 02/15/07 08/15/97 (b) 1,675,543
5 NYS Medcare (Insured Mtg.) 7.100 02/15/00 ----- 5,212
690 NYS Medcare (Insured Mtg.) 9.375 11/01/16(s) 05/01/97 (b) 720,429
665 NYS Medcare (Insured Nursing) 10.250 01/01/24 07/01/97 (b) 687,610
1,345 NYS Medcare (Long Beach) 7.625 02/15/06 08/15/98 (b) 1,447,637
20 NYS Medcare (Mental Health) 0.000 08/15/01 ----- 15,528
10 NYS Medcare (Mental Health) 0.000 02/15/03 08/15/98 (b) 6,912
30 NYS Medcare (Mental Health) 0.000 08/15/03 08/15/98 (b) 19,987
85 NYS Medcare (Mental Health) 6.850 08/15/00 ----- 91,098
45 NYS Medcare (Mental Health) 7.000 02/15/01 ----- 47,622
50 NYS Medcare (Mental Health) 7.200 08/15/00 ----- 53,044
40 NYS Medcare (Mental Health) 7.200 02/15/04 08/15/99 (b) 42,869
90 NYS Medcare (Mental Health) 7.375 02/15/14 08/15/99 (b) 94,566
45 NYS Medcare (Mental Health) 7.400 08/15/00 ----- 49,044
25 NYS Medcare (Mental Health) 7.400 02/15/02 02/15/00 (b) 27,353
15 NYS Medcare (Mental Health) 7.500 08/15/07 02/15/01 (b) 16,838
400 NYS Medcare (Mental Health) 7.625 02/15/07 08/15/01 (b) 440,380
20 NYS Medcare (Mental Health) 7.625 08/15/07 08/15/01 (b) 21,888
105 NYS Medcare (Mental Health) 7.750 08/15/10 02/15/00 (b) 111,600
3,000 NYS Medcare (Mental Health) 8.250 02/15/99 08/15/97 (b) 3,126,450
35 NYS Medcare (Mental Health) 8.875 08/15/07 08/15/97 (b) 36,260
50 NYS Medcare (North Shore) 7.125 11/01/08 11/01/00 (b) 52,447
10 NYS Medcare (N. General) 7.000 02/15/98 ----- 10,254
275 NYS Medcare (N. General) 7.100 02/15/99 ----- 289,174
25 NYS Medcare (N. General) 7.150 08/15/01 08/15/99 (b) 26,825
10 NYS Medcare (N. General) 7.200 08/15/02 08/15/99 (b) 10,452
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 965 NYS Medcare (N. General) 7.350 % 08/15/09 08/15/99 (b) $ 1,017,641
135 NYS Medcare (Secured Hospital) 7.000 02/15/07 02/15/97 (b) 138,375
105 NYS Medcare (Secured Hospital) 7.000 02/15/07 02/15/97 (b) 108,150
15 NYS Medcare (St. Luke's Hospital) 7.400 02/15/09 02/15/00 (b) 16,655
10 NYS Medcare (Vassar Brothers Hospital) 7.700 11/01/99 11/01/97 (b) 10,417
715 NYS Medcare (WHMC) 6.850 02/15/00 ----- 744,780
80 NYS Medcare (WHMC) 6.850 08/15/00 ----- 83,764
80 NYS Medcare (WHMC) 6.950 08/15/01 ----- 84,671
250 NYS Medcare (WHMC) 6.950 02/15/01 ----- 263,188
50 NYS Medcare (WHMC) 7.150 08/15/03 08/15/01 (b) 53,806
25 NYS Medcare (WHMC) 7.150 02/15/03 08/15/01 (b) 26,849
1,600 NYS Medcare (WHMC) 7.350 08/15/11(s) 08/15/01 (b) 1,727,360
100 NYS Power Authority 7.500 01/01/02 01/01/98 (b) 105,408
385 NYS Thruway 0.000 01/01/06 ----- 232,767
530 NYS Thruway 0.000 01/01/01 ----- 429,602
250 NYS Thruway 0.000 01/01/05 ----- 159,220
400 NYS Thruway 0.000 01/01/98 ----- 380,652
10 NYS UDC 0.000 01/01/00 ----- 8,518
15 NYS UDC 0.000 01/01/11 04/08/08 (c) 6,419
20 NYS UDC 0.000 01/01/99 ----- 17,888
30 NYS UDC 0.000 01/01/07 ----- 16,437
25 NYS UDC (Correctional Facilities) 0.000 01/01/03 ----- 18,032
250 NYS UDC (Correctional Facilities) 6.700 01/01/99 ----- 260,128
50 NYS UDC (South Mall) 0.000 01/01/05 06/24/04 (c) 32,851
35 NYS UDC (South Mall) 0.000 01/01/03 ----- 24,929
130 NYS UDC (South Mall) 0.000 01/01/05 ----- 84,033
175 NYS UDC (South Mall) 0.000 01/01/11 04/08/08 (c) 76,801
10 NYS (SONYMA) Mortgage, 1 0.000 10/01/14(s) 04/01/97 (b) 1,924
125 NYS (SONYMA) Mortgage, 1 0.000 10/01/98 04/01/97 (b) 107,111
120 NYS (SONYMA) Mortgage, 10-A 7.800 10/01/03 04/01/98 (b) 126,145
25 NYS (SONYMA) Mortgage, 10-A 8.000 10/01/08 04/01/98 (b) 25,877
15 NYS (SONYMA) Mortgage, 11 6.875 04/01/16(s) 10/01/98 (b) 15,300
30 NYS (SONYMA) Mortgage, 12 0.000 04/01/03 10/01/97 (b) 19,655
30 NYS (SONYMA) Mortgage, 12 0.000 04/01/99 10/01/97 (b) 27,204
100 NYS (SONYMA) Mortgage, 12 0.000 10/01/00 10/01/97 (b) 79,785
60 NYS (SONYMA) Mortgage, 12 0.000 10/01/99 10/01/97 (b) 51,717
15 NYS (SONYMA) Mortgage, 12 6.800 10/01/97 ----- 15,236
25 NYS (SONYMA) Mortgage, 12 6.800 04/01/97 ----- 25,129
830 NYS (SONYMA) Mortgage, 2 0.000 10/01/14(s) 04/01/97 (b) 156,903
50 NYS (SONYMA) Mortgage, 44 7.000 10/01/07 11/01/06 (b) 52,419
215 NYS (SONYMA) Mortgage, 6 9.375 04/01/10 04/01/01 (c) 224,221
65 NYS (SONYMA) Mortgage, 7 GAINS 0.000 (+) 10/01/14(s) 04/01/98 (b) 60,022
25 NYS (SONYMA) Mortgage, 8-A 0.000 04/01/02 10/01/98 (b) 18,283
250 NYS (SONYMA) Mortgage, 8-A 0.000 04/01/00 10/01/98 (b) 204,068
60 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/01 10/01/98 (b) 45,310
85 NYS (SONYMA) Mortgage, 8-A 0.000 04/01/01 10/01/98 (b) 66,116
30 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/00 10/01/98 (b) 24,079
70 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/02 10/01/98 (b) 49,689
20 NYS (SONYMA) Mortgage, 8-A 0.000 10/01/98 ----- 18,275
75 NYS (SONYMA) Mortgage, 8-A 6.875 04/01/17(s) 04/01/97 (b) 76,875
50 NYS (SONYMA) Mortgage, 8-B 7.200 04/01/99 ----- 51,281
25 NYS (SONYMA) Mortgage, 8-C 7.500 04/01/99 10/01/97 (b) 25,947
40 NYS (SONYMA) Mortgage, 8-C 7.900 10/01/01 10/01/97 (b) 41,646
85 NYS (SONYMA) Mortgage, 8-C 8.300 10/01/06 10/01/97 (b) 87,570
3,535 NYS (SONYMA) Mortgage, 8-C 8.400 10/01/17(s) 10/01/97 (b) 3,611,886
25 NYS (SONYMA) Mortgage, 8-D 7.700 10/01/99 01/04/98 (b) 26,297
100 NYS (SONYMA) Mortgage, 8-D 8.200 10/01/06 01/04/98 (b) 103,231
80 NYS (SONYMA) Mortgage, 8-E 8.100 10/01/17(s) 04/01/98 (b) 82,655
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 40 NYS (SONYMA) Mortgage, 8-F 7.200 % 10/01/00 07/01/98 (b) $ 42,270
30 NYS (SONYMA) Mortgage, 8-F 7.800 10/01/06 07/01/98 (b) 31,347
110 NYS (SONYMA) Mortgage, 8-F 8.000 10/01/17(s) 10/01/97 (c) 112,768
100 NYS (SONYMA) Mortgage, 9-A 6.700 10/01/98 04/01/97 (b) 101,600
25 NYS (SONYMA) Mortgage, 9-A 6.900 04/01/00 04/01/97 (b) 25,558
20 NYS (SONYMA) Mortgage, 9-A 7.000 04/01/01 04/01/97 (b) 20,400
100 NYS (SONYMA) Mortgage, 9-A 7.250 10/01/06 04/01/97 (b) 102,300
15 NYS (SONYMA) Mortgage, 9-A 7.300 04/01/17 04/01/97 (b) 15,360
10 NYS (SONYMA) Mortgage, 9-A 8.250 10/01/08 04/01/98 (b) 10,423
190 NYS (SONYMA) Mortgage, 9-B 8.000 10/01/02 07/01/97 (b) 196,555
230 NYS (SONYMA) Mortgage, 9-B 8.125 10/01/07 07/01/97 (b) 237,539
6,120 NYS (SONYMA) Mortgage, 9-B 8.300 10/01/17(s) 07/01/97 (b) 6,285,240
90 NYS (SONYMA) Mortgage, 9-C 8.400 10/01/02 10/01/97 (b) 92,786
25 NYS (SONYMA) Mortgage, 9-E 7.375 10/01/98 ----- 26,263
440 NYS (SONYMA) Mortgage, 9-E 8.000 10/01/03 04/01/98 (b) 458,665
70 NYS (SONYMA) Mortgage, AA 7.700 04/01/99 ----- 73,179
65 NYS (SONYMA) Mortgage, BB-2 7.125 10/01/98 10/01/97 (b) 67,432
210 NYS (SONYMA) Mortgage, BB-2 7.850 10/01/08 10/01/97 (b) 217,946
12,570 NYS (SONYMA) Mortgage, BB-2 7.950 10/01/15(s) 10/01/97 (b) 13,043,135
35 NYS (SONYMA) Mortgage, EE-1 8.000 10/01/10 04/14/99 (b) 36,478
35 NYS (SONYMA) Mortgage, EE-2 7.050 10/01/00 02/04/99 (c) 37,336
65 NYS (SONYMA) Mortgage, EE-2 7.450 10/01/10 09/14/99 (b) 68,586
230 NYS (SONYMA) Mortgage, EE-3 7.125 10/01/00 02/04/99 (c) 239,796
115 NYS (SONYMA) Mortgage, EE-4 7.800 10/01/13(s) 10/01/00 (b) 123,686
25 NYS (SONYMA) Mortgage, FF 7.000 04/01/97 ----- 25,142
50 NYS (SONYMA) Mortgage, FF 7.100 10/01/98 ----- 51,862
10 NYS (SONYMA) Mortgage, FF 7.850 10/01/08 10/01/97 (b) 10,369
4,875 NYS (SONYMA) Mortgage, FF 7.950 10/01/14(s) 10/01/97 (b) 5,058,495
55 NYS (SONYMA) Mortgage, HH-2 7.700 10/01/09 10/01/99 (b) 57,294
125 NYS (SONYMA) Mortgage, HH-3 7.875 10/01/09 06/07/00 (b) 132,886
3,600 NYS (SONYMA) Mortgage, HH-3 7.950 04/01/22(s) 06/07/00 (b) 3,817,044
75 NYS (SONYMA) Mortgage, II 0.000 04/01/05 04/01/99 (b) 41,654
300 NYS (SONYMA) Mortgage, II 0.000 10/01/09 04/01/99 (b) 116,850
45 NYS (SONYMA) Mortgage, II 0.000 10/01/05 04/01/99 (b) 24,017
40 NYS (SONYMA) Mortgage, II 0.000 10/01/06 04/01/99 (b) 19,756
175 NYS (SONYMA) Mortgage, II 0.000 04/01/09 04/01/99 (b) 70,872
6,910 NYS (SONYMA) Mortgage, II 0.000 04/01/20 04/01/99 (b) 1,133,102
90 NYS (SONYMA) Mortgage, II 0.000 04/01/07 04/01/99 (b) 42,599
520 NYS (SONYMA) Mortgage, II 0.000 10/01/08 04/01/99 (b) 218,962
120 NYS (SONYMA) Mortgage, II 0.000 10/01/07 04/01/99 (b) 54,626
100 NYS (SONYMA) Mortgage, JJ 0.000 04/01/02 ----- 73,883
75 NYS (SONYMA) Mortgage, JJ 0.000 10/01/01 ----- 55,773
215 NYS (SONYMA) Mortgage, JJ 0.000 04/01/03 10/01/99 (b) 142,801
145 NYS (SONYMA) Mortgage, JJ 0.000 04/01/01 ----- 108,432
10 NYS (SONYMA) Mortgage, JJ 0.000 10/01/00 ----- 7,738
200 NYS (SONYMA) Mortgage, JJ 0.000 04/01/07 10/01/99 (b) 98,164
75 NYS (SONYMA) Mortgage, JJ 0.000 04/01/00 ----- 60,055
50 NYS (SONYMA) Mortgage, JJ 0.000 10/01/08 10/01/99 (b) 21,989
30 NYS (SONYMA) Mortgage, JJ 0.000 04/01/04 10/01/99 (b) 18,431
10 NYS (SONYMA) Mortgage, JJ 0.000 10/01/04 10/01/99 (b) 5,922
170 NYS (SONYMA) Mortgage, JJ 0.000 04/01/05 10/01/99 (b) 97,158
185 NYS (SONYMA) Mortgage, JJ 0.000 10/01/05 10/01/99 (b) 101,774
35 NYS (SONYMA) Mortgage, JJ 0.000 10/01/03 10/01/99 (b) 22,352
60 NYS (SONYMA) Mortgage, JJ 0.000 04/01/06 10/01/99 (b) 31,715
270 NYS (SONYMA) Mortgage, JJ 0.000 10/01/06 10/01/99 (b) 137,711
15 NYS (SONYMA) Mortgage, KK 7.050 10/01/99 07/22/98 (c) 15,731
100 NYS (SONYMA) Mortgage, MM-1 7.100 10/01/97 ----- 101,790
30 NYS (SONYMA) Mortgage, MM-1 7.200 10/01/98 ----- 31,258
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 35 NYS (SONYMA) Mortgage, MM-1 7.500 % 04/01/13(s) 02/04/01 (b) $ 37,025
25 NYS (SONYMA) Mortgage, MM-1 7.650 10/01/03 02/04/01 (b) 26,652
100 NYS (SONYMA) Mortgage, MM-1 7.700 10/01/04 02/04/01 (b) 106,226
50 NYS (SONYMA) Mortgage, MM-1 7.750 04/01/05 02/04/01 (b) 53,202
10 NYS (SONYMA) Mortgage, MM-2 7.550 04/01/02 10/01/00 (b) 10,514
25 NYS (SONYMA) Mortgage, NN 7.100 04/01/02 01/01/00 (b) 26,789
20 NYS (SONYMA) Mortgage, NN 7.150 10/01/03 01/01/00 (b) 21,014
25 NYS (SONYMA) Mortgage, QQ 7.700 10/01/12 04/01/00 (b) 26,284
25 NYS (SONYMA) Mortgage, RR 7.700 10/01/10 10/01/00 (b) 26,849
115 NYS (SONYMA) Mortgage, SS 7.500 10/01/19(s) 10/01/00 (b) 118,711
25 NYS (SONYMA) Mortgage, TT 6.850 10/01/01 ----- 26,744
20 NYS (SONYMA) Mortgage, TT 6.950 04/01/02 ----- 20,499
25 NYS (SONYMA) Mortgage, TT 7.200 10/01/05 04/01/03 (b) 26,563
25 NYS (SONYMA) Mortgage, UU 6.850 10/01/99 ----- 26,158
75 NYS (SONYMA) Mortgage, UU 6.950 04/01/00 ----- 79,509
525 NYS (SONYMA) Mortgage, UU 7.150 10/01/22(s) 10/01/01 (b) 547,418
135 NYS (SONYMA) Mortgage, UU 7.750 10/01/23(s) 04/01/01 (b) 142,649
50 NYS (SONYMA) Mortgage, VV 6.300 04/01/97 ----- 50,210
5 NYS (SONYMA) Mortgage, VV 6.400 04/01/98 ----- 5,106
40 NYS (SONYMA) Mortgage, VV 6.600 04/01/00 ----- 42,051
25 NYS (SONYMA) Mortgage, VV 6.800 10/01/02 ----- 27,064
60 NYS (SONYMA) Mortgage, VV 6.900 04/01/03 ----- 65,974
50 NYS (SONYMA) Mortgage, VV 7.000 04/01/04 10/01/03 (b) 52,566
580 NYS (SONYMA) Mortgage, VV 7.250 10/01/07 10/01/01 (b) 618,268
13,260 NYS (SONYMA) Mortgage, VV 7.375 10/01/11(s) 10/01/01 (b) 14,179,714
20 Oneida Healthcare Corp. 7.100 08/01/11 08/01/01 (b) 21,465
1,150 Oneida Herkimer SWMA 6.600 04/01/04 ----- 1,228,775
2,200 Oneida Herkimer SWMA 6.750 04/01/14(s) 04/01/05 (b) 2,251,590
15 Oneida IDA (MetLife Insurance) 7.250 12/01/97 ----- 15,225
15,300 Onondaga County Res Rec 6.625 05/01/00 11/30/98 (c) 15,756,246
8,260 Onondaga County Res Rec 6.875 05/01/06 01/12/04 (c) 8,637,978
60 Onondaga IDA (Sysco Foods) 7.750 04/01/03 04/01/97 (b) 60,600
1,805 Oswego County Res Rec 6.500 06/01/04 05/23/03 (c) 1,942,036
50 Philadelphia, NY GO 7.500 12/15/09 ----- 57,105
75 Port Authority NY/NJ (Delta Airlines) 6.950 06/01/08 06/01/04 (b) 82,586
1,000 Port Authority NY/NJ (KIAC) 6.750 10/01/11 05/03/10 (c) 1,023,410
10,000 Port Authority NY/NJ (KIAC) 7.000 10/01/07 05/02/05 (c) 10,732,600
15 Portchester Community Devel. 8.100 08/01/10 02/08/05 (c) 17,416
2,499 Puerto Rico Aqueduct & Sewer (i) 7.250 03/21/00 10/16/98 (c) 2,560,018
95 Puerto Rico Commonwealth GO 7.125 07/01/02 07/01/97 (b) 98,091
50 Puerto Rico Commonwealth Infrastructure 7.500 07/01/09 07/01/98 (b) 52,447
5 Puerto Rico Commonwealth Infrastructure 7.700 07/01/01 07/01/98 (b) 5,266
10 Puerto Rico Commonwealth Infrastructure 7.750 07/01/08 07/01/98 (b) 10,524
10 Puerto Rico Electric 7.000 07/01/07 07/01/99 (b) 10,314
45 Puerto Rico HFC 0.000 04/15/08 09/15/98 (b) 20,936
25 Puerto Rico HFC 0.000 10/15/04 09/15/98 (b) 15,292
5 Puerto Rico HFC 6.700 04/01/97 ----- 5,029
45 Puerto Rico HFC 6.800 10/01/99 ----- 47,395
15 Puerto Rico HFC 6.900 04/15/98 ----- 15,424
20 Puerto Rico HFC 7.000 04/15/99 ----- 20,959
40 Puerto Rico HFC 7.000 04/01/00 ----- 42,836
15 Puerto Rico HFC 7.100 10/15/00 10/01/98 (b) 15,845
10 Puerto Rico HFC 7.100 04/01/02 04/01/00 (b) 10,758
65 Puerto Rico HFC 7.300 04/01/06 04/01/00 (b) 68,447
30 Puerto Rico HFC 7.400 04/01/07 04/01/00 (b) 31,633
20 Puerto Rico HFC 7.450 10/15/09 09/27/00 (b) 21,294
6,585 Puerto Rico HFC 7.500 04/01/22(s) 04/01/00 (b) 6,962,518
1,060 Puerto Rico HFC 7.500 10/01/15(s) 04/01/00 (b) 1,125,603
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 245 Puerto Rico HFC 8.250 % 06/01/11(s) 06/01/97 (b) $ 248,295
10 Puerto Rico IME (Baxter Travenol) 8.000 09/01/12 09/01/98 (b) 10,823
15 Puerto Rico IME (Dr. Pila Hospital) 7.700 08/01/08 08/01/98 (a) 16,039
710 Puerto Rico IME (Squibb) 6.500 07/01/04 07/01/97 (b) 717,988
55 Puerto Rico PCR 8.000 01/01/03 07/01/97 (b) 56,100
130 Puerto Rico Port Auth. 7.300 07/01/07 07/01/97 (b) 132,600
586 Puerto Rico Port Auth. (Computer Lease) (i) 9.000 05/15/99 05/31/98 (c) 614,961
2,000 Puerto Rico TEMEC (MGH) 6.500 07/01/12(s) 07/01/08 (b) 2,056,600
20 Puerto Rico Urban Renewal 0.000 10/01/97 ----- 19,242
105 Puerto Rico Urban Renewal 7.875 10/01/04 10/01/99 (b) 113,359
1,440 Putnam IDA (Brewster Plastics) 7.375 12/01/08 03/28/04 (c) 1,477,814
35 Radisson Senior Citizens Hsg. 12.000 11/01/11(s) 11/01/97 (b) 38,114
125 Rensselaer Hsg. Auth. (Renwyck) 7.650 01/01/11(s) 01/01/03 (b) 143,754
1,440 Rensselaer Municipal Leasing Corp. 6.250 06/01/04 12/28/02 (c) 1,475,914
25 Riverhead Hsg. Devel. 8.250 08/01/10 02/01/97 (b) 26,250
3,025 Rochester Hsg. Auth. (Crossroads) 7.300 07/01/05 12/05/01 (c) 3,285,967
770 Rochester Hsg. Auth. (Stonewood) 5.900 09/01/09 06/24/04 (c) 774,435
775 Rockland IDA (DC) 7.000 03/01/03 06/12/00 (c) 808,255
225 Roxbury CSD 6.400 06/15/10 06/15/07 (b) 228,346
235 Roxbury CSD 6.400 06/15/11 06/15/07 (b) 238,494
295 Saratoga IDA (ARC) 7.250 03/01/01 04/20/99 (c) 301,151
250 Saratoga IDA (City Center) 10.000 10/01/08 10/01/99 (b) 279,868
2,495 Saratoga IDA (Saratoga Sheraton) 6.750 12/31/07 08/13/02 (c) 2,579,556
50 Schodack IDA (Hamilton Printing) 7.600 07/01/00 ----- 53,945
50 Steuben IDA (Corning Glass) 7.625 07/01/99 07/01/97 (b) 51,000
240 Steuben IDA (Corning Glass) 9.000 11/01/04 05/01/97 (b) 244,800
25 St. Casimer's Elderly Hsg. 7.000 09/01/98 ----- 25,625
950 St. Casimer's Elderly Hsg. 7.375 09/01/10 03/01/97 (b) 988,618
30 St. Lawrence County (SWDA) 8.250 01/01/02 01/01/99 (a) 32,645
10 St. Lawrence County (SWDA) 8.300 01/01/99 01/01/98 (a) 10,574
5 Suffolk County GO 6.000 09/15/97 ----- 5,063
10 Suffolk County GO 6.400 02/01/00 ----- 10,100
210 Suffolk IDA (ADP) 7.750 04/01/18 04/01/97 (b) 215,775
240 Suffolk IDA (Dowling College) 6.500 12/01/06 ----- 249,218
20 Suffolk IDA (Marbar) 8.150 03/01/04 03/01/97 (b) 20,656
25 Suffolk IDA (Marbar) 8.200 03/01/05 03/01/97 (b) 25,491
85 Suffolk IDA (OPWC) 7.000 11/01/02 08/14/00 (c) 90,876
480 Suffolk IDA (Printing Assoc.) 7.013 (v) 01/01/01 07/01/97 (f) 480,000
1,420 Suffolk IDA (Rimland Facilities) 6.188 (v) 12/01/04 06/01/97 (f) 1,420,000
2,410 Sunnybrook Elderly Hsg. Corp. 11.250 12/01/14(s) 04/01/97 (b) 2,553,082
133 Syracuse IDA (Genesee St.) 6.023 (v) 12/01/98 06/01/97 (f) 135,334
1,010 Syracuse IDA (Rockwest Center) 7.000 12/01/05 06/12/02 (c) 1,029,503
460 Syracuse IDA (Rockwest Center) 7.250 06/01/03 09/15/00 (c) 491,832
1,240 Syracuse IDA (St. Joseph's Hospital) 7.250 06/01/01 07/22/99 (c) 1,313,495
1,030 Syracuse Senior Citizens Hsg. 8.000 12/01/10 06/01/97 (b) 1,079,183
195 Tomkins IDA (Kendall at Ithaca) 7.875 06/01/15(s) 06/01/05 (b) 199,801
300 Tompkins Healthcare 10.800 02/01/28 08/01/05 (b) 394,119
310 Tonawanda Housing Devel. 10.000 05/01/08 05/01/97 (b) 317,263
130 Tonawanda Housing Devel. 10.000 05/01/07 05/01/97 (b) 132,600
105 Tonawanda Housing Devel. 10.000 05/01/06 05/01/97 (b) 107,100
85 Tupper Lake Housing Devel. 8.125 10/01/10 03/15/02 (b) 89,250
510 Ulster County Res Rec 5.500 03/01/02 ----- 513,279
1,080 Ulster County Res Rec 5.500 03/01/03 ----- 1,080,248
1,600 Union Elderly Hsg. 10.000 04/01/13(s) 04/01/97 (b) 1,664,000
5 Union Elderly Hsg. 11.000 04/01/00 04/01/97 (b) 5,200
910 Union Hsg. (Methodist Homes) 6.800 11/01/04 09/07/01 (c) 949,267
90 Union Hsg. (Methodist Homes) 7.800 04/01/97 ----- 90,607
95 Union Hsg. (Methodist Homes) 7.900 04/01/98 ----- 98,112
</TABLE>
<PAGE>
Limited Term New York Municipal Fund
Statement of Investments
December 31, 1996
<TABLE>
<CAPTION>
Effective
Face Amount Maturity
(000) Omitted Description Coupon Maturity Date* Market Value
- ----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
$ 555 University of V. I. 6.500 % 10/01/99 10/14/98 (c) $ 570,634
500 University of V. I. 7.500 10/01/09 10/01/04 (b) 547,790
500 University of V. I. 7.650 10/01/14 10/01/04 (b) 549,755
100 Utica GO 5.900 12/01/02 ----- 105,235
580 Utica GO 6.000 01/15/06 ----- 505,998
560 Utica GO 6.250 01/15/07 ----- 492,862
100 Utica Hsg. Corp. (Brookhaven) 0.000 01/01/99 ----- 89,117
10 Utica Hsg. Corp. (Brookhaven) 0.000 07/01/99 ----- 8,659
35 Utica Senior Citizen Hsg. 0.000 01/01/98 ----- 33,073
40 Utica Senior Citizen Hsg. 0.000 01/01/02 ----- 29,989
1,963 Utica Senior Citizen Hsg. 10.230 07/01/22 07/01/97 (b) 2,097,703
10 Valley Health & Devel. 7.850 02/01/02 12/15/98 (c) 11,531
20 Valley Health & Devel. 11.300 02/01/07 08/01/00 (b) 24,289
820 V. I. Airport 7.875 10/01/97 ----- 840,959
17,785 V. I. Airport 8.100 10/01/05 10/01/98 (b) 18,826,134
15 V. I. HFA 7.550 06/01/03 12/01/98 (b) 16,253
260 V. I. Highway 7.650 10/01/99 ----- 281,432
1,535 V. I. Port Auth. (Marine Division) 7.400 11/01/99 05/01/97 (b) 1,539,083
1,220 V. I. Port Auth. (Marine Division) 7.550 11/01/99 05/01/97 (b) 1,223,501
765 V. I. Public Finance Auth. 6.500 10/01/99 10/15/98 (c) 791,882
515 V. I. Public Finance Auth. 6.625 10/01/99 10/15/98 (c) 534,663
1,500 V. I. Public Finance Auth. 6.800 10/01/00 ----- 1,583,265
2,000 V. I. Public Finance Auth. 7.250 10/01/18(s) 10/01/02 (b) 2,141,720
250 V. I. Public Finance Auth. 7.700 10/01/04 10/01/99 (b) 270,605
2,185 V. I. Water & Power 7.200 01/01/02 09/22/99 (c) 2,280,572
13,700 V. I. Water & Power 7.400 07/01/11(s) 01/01/00 (b)(c) 14,620,366
16,700 V. I. Water & Power 8.500 01/01/10 01/01/98 (b) 17,819,735
777 V. I. (GO/HUGO) 7.750 10/01/06(s) 10/01/99 (b)(c) 847,311
95 Watervliet Elderly Hsg. 8.000 11/15/00 05/15/97 (b) 98,107
95 Watervliet Elderly Hsg. 8.000 11/15/01 05/15/97 (b) 98,107
100 Watervliet Elderly Hsg. 8.000 11/15/02 05/15/97 (b) 103,270
45 Wayne IDA (Hauser Machine) 7.700 12/01/09 12/01/01 (d) 48,993
455 Westchester IDA (BAH) 7.250 12/01/09 08/22/04 (c) 466,632
1,000 Westchester IDA (JBFS) 6.500 12/15/02 07/14/01 (c) 1,037,850
570 Westchester IDA (JDAM) 6.250 04/01/05 01/23/02 (c) 580,773
1,000 Westchester IDA (JDAM) 6.750 04/01/16(s) 04/01/08 (b) 1,023,200
50 Yonkers IDA (Waldbaum) 9.250 03/01/98 03/01/97 (b) 51,200
---------------
Total municipal bond investments, at value (cost $655,947,818) - 99.4% 670,678,326
Other assets and liabilities (net) - 0.6% 4,321,424
---------------
Net assets - 100.0% 674,999,750
===============
</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.
(f) Effective maturity corresponding to variable coupon payment date.
(i) Illiquid security.
(s) Security also has mandatory sinking fund principal payments prior to
maturity and an average life which is shorter than the stated final
maturity.
(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.
<PAGE>
Limited Term New York Municipal Fund - December 31, 1996
================================================================================
Portfolio Abbreviations
To simplify the listings of the Limited Term New York Municipal Fund's holdings
in the Statement of Investments, we have abbreviated the descriptions of many of
the securities per the table below:
ACLDD Adults and Children with Learning
and Developmental Disabilities
ARC Association of Retarded Citizens
BAH Beth Abraham Hospital
BHMS Brooklyn Heights Montessori School
CCM Comprehensive Care Management
CNR College of New Rochelle
Con Ed Consolidated Edison Co.
COP Certificate of Participation
CSD Central School District
DC Dominican College
ECC Erie Community College
E,E&T Ear, Eye and Throat
EPG Elmhurst Parking Garage
ERDA Energy Research and Development Authority
GAINS Growth and Income Securities
GO General Obligation
G&H Geriatric and Healthcare
HDC Housing Development Corporation
HELP Homeless Economic Loan Program
HFA Housing Finance Agency
HFC Housing Finance Corporation
H&N Hospital and Nursing
IDA Industrial Development Authority
IME Industrial Medical and Environmental
JBFS Jewish Board of Family Services
JDAM Julia Dyckman Angus Memorial
LGSC Local Government Services Corporation
LILCO Long Island Lighting Corporation
LIMO Limited Interest Municipal Obligation
MGH Mennonite General Hospital
MTA Metropolitan Transit Authority
OPWC Ocean Park Water Corporation
PCP Pooled Capital Program
PCR Pollution Control Revenue
Res Rec Resource Recovery Facility
RSP Riverbank State Park
SCSB Schuyler Community Services Board
SONYMA State of New York Mortgage Agency
SWDA Solid Waste Development Authority
SWMA Solid Waste Management Authority
TEMEC Tourist, Educational, Medical and Environmental Control
UCP United Cerebral Palsy
UDC Urban Development Corporation
V.I. United States Virgin Islands
WHMC Wyckoff Heights Medical Center
WWH Wyandach/Wheatley Heights
The Fund had the following concentrations at December 31, 1996 (as a percentage
of total net assets):
# of % of Total
Issuers Net Assets
------- ----------
General Obligation 19 20.4%
Resource Recovery 7 15.7%
Hospital/Healthcare 44 11.3%
Housing, Single Family 27 8.3%
Housing, Multi-Family 40 7.4%
Electric Utilities 11 6.9%
Marine/Aviation Facilities 10 5.3%
Higher Education 20 4.7%
Corporate Backed 25 3.9%
Lease Rental 12 3.9%
Water Utilities 4 3.0%
NonProfit Organization 12 2.0%
Manufacturing, Non-Durable Goods 12 1.8%
Pollution Control 4 1.6%
Education 6 1.0%
Other 28 2.2%
-------
Total 99.4%
=======
================================================================================
Asset Composition Table
December 31, 1996 (Unaudited)
Percentage
Rating of Investments
- -----------------------------
AAA 2.7%
AA 12.6%
A 45.0%
BBB 35.7%
BB 0.6%
B 0.2%
CCC 0.0%
CC 0.0%
C 0.0%
Not Rated 3.2%
------------
Total 100.0%
=============
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 Manager, which reflects the
quality of the guarantor, institution or agency. Unrated bonds may also be
assigned a rating when the issuer has rated bonds outstanding with comparable
credit characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade are included in the "Not Rated" category. For
further information see "Credit Quality" in the Prospectus.
<PAGE>
Limited Term New York Municipal Fund
================================================================================
Statement of Assets and Liabilities - December 31, 1996
Assets
Investments,satovaluencial Statements
(Cost $655,947,818) $670,678,326
Cash 79,389
Receivables:
Interest 12,593,061
Investments sold 2,100,539
Shares of beneficial
interest sold 933,731
Other 37,181
------------
Total assets 686,422,227
------------
Liabilities
Payables and other liabilities:
Demand note payable to bank
(interest rate 7.60% at 12/31/96) 9,000,000
Shares of beneficial interest
redeemed 2,133,730
Dividends 183,485
Trustees' fees 9,000
Other 96,262
------------
Total liabilities 11,422,477
------------
Net Assets $674,999,750
============
Composition of Net Assets
Paid-in capital $670,144,226
Undistributed net investment income 480,101
Accumulated net realized loss on
investment transactions (10,355,085)
Net unrealized appreciation
on investments 14,730,508
-------------
Net assets $674,999,750
=============
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $634,172,056 and
194,315,367 shares of beneficial interest
outstanding) $3.26
=============
Maximum offering price per share (net asset
value plus sales charge of 2.00% of offering price) $3.33
=============
Class B Shares:
Net asset value, redemption price and offering price
per share (based on net assets of $40,827,694 and
12,491,844 shares of beneficial interest outstanding) $3.27
=============
================================================================================
Statement of Operations
For the Year Ended December 31, 1996
Investment Income:
Interest $39,801,585
------------
Expenses:
Management fees 2,715,109
Distribution and service plan fees:
Class A 1,488,992
Class B 214,619
Transfer and shareholder servicing
agent fees:
Class A 285,165
Class B 15,255
Accounting service fees 193,682
Shareholder reports 142,340
Registration and filing fees 96,603
Custodian fees and expenses 89,685
Legal and auditing fees 46,425
Trustees' fees and expenses 45,534
Organizational expenses 7,083
Other 76,093
Interest 396,316
------------
Total expenses 5,812,901
Less expenses paid indirectly (12,009)
------------
Total net expenses 5,800,892
------------
Net Investment Income 34,000,693
------------
Realized and Unrealized Loss:
Net realized loss on investments (242,301)
Net change in unrealized appreciation
or depreciation on investments (2,445,222)
------------
Net realized and unrealized loss (2,687,523)
------------
Net Increase in Net Assets
Resulting From Operations $31,313,170
============
Statements of Changes in Net Assets
Year Ended December 31, 1996 1995
---- ----
Increase in Net Assets -
Operations:
Net investment income $34,000,693 $28,678,554
Net realized loss (242,301) (2,258,016)
Net change in unrealized appreciation
or depreciation (2,445,222) 22,706,855
------------- -------------
Net increase in net assets
resulting from operations 31,313,170 49,127,393
------------- -------------
Dividends and Distributions to
Shareholders:
Dividends from net investment
income:
Class A (32,233,558) (28,615,850)
------------- -------------
Class B (1,354,963) (276,083)
------------- -------------
Beneficial Interest Transactions:
Net increase in net assets resulting
from beneficial interest
transactions (Note 2):
Class A 68,975,038 51,133,814
------------- -------------
Class B 24,348,503 16,130,704
------------- -------------
Net Assets:
Total increase 91,048,190 87,499,978
Beginning of period 583,951,560 496,451,582
------------- -------------
End of period (including undistributed
net investment income of $480,101
and $23,004, respectively) $674,999,750 $583,951,560
============= =============
See accompanying Notes to Financial Statements.
<PAGE>
Limited Term New York Municipal Fund
Financial Highlights
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------
Year ended December 31,
1996 1995 1994 1993 1992 (a)
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $3.28 $3.15 $3.33 $3.18 $3.07
----------- ----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment income 0.17 0.18 0.16 0.17 0.18
Net realized and unrealized gain (loss) (0.02) 0.13 (0.18) 0.15 0.11
----------- ----------- ----------- ----------- -----------
Total income (loss) from investment operations 0.15 0.31 (0.02) 0.32 0.29
----------- ----------- ----------- ----------- -----------
Dividends and distributions to shareholders:
Dividends from net investment income (0.17) (0.18) (0.16) (0.17) (0.18)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions to shareholders (0.17) (0.18) (0.16) (0.17) (0.18)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $3.26 $3.28 $3.15 $3.33 $3.18
=========== =========== =========== =========== ===========
Total Return, at Net Asset Value (b) 4.82% 10.01% (0.60% 10.06% 9.45%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $634,172 $567,537 $496,452 $457,860 $150,096
Average net assets (in thousands) $606,742 $520,990 $491,038 $309,676 $72,743
Ratios to average net assets:
Net investment income 5.37% 5.44% 5.12% 4.94% 5.33%
Expenses (c) 0.89% 0.90% 0.89% 0.89% 0.83%
Expenses (excluding interest) (c) (d) 0.83% 0.84% 0.84% 0.86% 0.78%
Portfolio turnover rate (e) 24.35% 22.34% 34.58% 17.08% 59.87%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Net of fees waived or reimbursed by Fielding Management Company, Inc. (the
former manager), and Rochester Fund Services, Inc. (the former shareholder
servicing, accounting and pricing agent), which amounted to $0.01 per
share. Without reimbursement, the ratios would have been 5.02%, 1.14% and
1.09%, respectively.
(b) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less
than one full year.
(c) Beginning in fiscal 1995, the expense ratios reflect the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not
been adjusted.
(d) During the periods shown above, the Fund's interest expense was
substantially offset by the incremental interest income generated on bonds
purchased with borrowed funds.
(e) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended December 31, 1996 were
$256,486,227 and $153,521,279, respectively.
See accompanying Notes to Financial Statements.
<PAGE>
Limited Term New York Municipal Fund
Financial Highlights
Class B
-------------------------
Year Ended Year Ended
December 31, December 31,
1996 1995(a)
------------ ------------
Per Share Operating Data:
Net asset value, beginning of period $ 3.28 $ 3.21
--------- ---------
Income (loss) from investment operations:
Net investment income 0.16 0.11
Net realized and unrealized gain (loss) (0.01) 0.07
--------- ---------
Total income from investment operations 0.15 0.18
--------- ---------
Dividends and distributions to shareholders:
Dividends from net investment income (0.16) (0.11)
--------- ---------
Total dividends and distributions to shareholders (0.10) (0.11)
--------- ---------
Net asset value, end of period $ 3.27 $ 3.28
========= =========
Total Return, at Net Asset Value (b) 4.59% 5.65%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $40,828 $16,415
Average net assets (in thousands) $28,971 $8,869
Ratios to average net assets:
Net investment income 4.85% 5.21%
Expenses (d) 1.38% 0.90%
Expenses (excluding interest) (d) (c) 1.32% 0.85%
Portfolio turnover rate (f) 24.35% 22.34%
- --------------------------------------------------------------------------------
(a) For the period from May 1, 1995 (inception of offering) to December 31,
1995.
(b) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period Sales charges are not reflected
in the total returns. Total returns are not annualized for period of less
than one full year.
(c) Annualized.
(d) Beginning in fiscal 1995, the expense ratios reflect the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not
been adjusted.
(e) During the periods shown above, the Fund's interest expense was
substantially offset by the incremental interest income generated on bonds
purchased with borrowed funds.
(f) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended December 31, 1996 were
$256,486,227 and $153,521,279 respectively.
See accompanying Notes to Financial Statements.
<PAGE>
Limited Term New York Municipal Fund
Notes to Financial Statements
December 31, 1996
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.
On January 4, 1996, Rochester Capital Advisors, L.P. (RCA, L.P.), the Fund's
investment adviser, Rochester Fund Distributors, Inc. (RFD), the Fund's
principal underwriter, and Rochester Fund Services, Inc. (RFS), the Fund's
shareholder servicing, accounting and pricing agent, consummated a transaction
with OppenheimerFunds, Inc. (the Manager), which resulted in the sale to the
Manager 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."
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 and/or
service plan, expenses directly attributable to a particular class and exclusive
voting rights with respect to matters affecting a single class. Class B shares
will automatically convert to Class A shares six years after the date of
purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
Investment Valuation and Transactions. Portfolio securities are valued at the
close of the New York Stock Exchange on each trading day. Long-term debt
securities are valued at the mean between the bid and asked price using
information available from a portfolio pricing service approved by the Board of
Trustees, dealer-supplied valuations, provided the Manager is satisfied that the
firm rendering the quotes is reliable and that the quotes reflect current value,
or analysis of various relationships between comparable securities. Securities
for which market quotations are not readily available are valued at fair value
under consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Investment transactions are accounted for on
the date the investments are purchased or sold (trade date). Cost is determined
and realized gains and losses are based upon the specific identification method
for both financial statement and federal income tax purposes. Interest income is
recorded on the accrual basis. In computing net investment income, the Fund
amortizes premiums and accretes original issue discount. For municipal bonds
purchased after April 30, 1993 and subsequently sold at a gain, market discount
is accreted at the time of sale (to the extent of the lesser of the accrued
market discount or the disposition gain) and is treated as taxable income,
rather than capital gain.
Securities Purchased on a When-Issued Basis. Delivery and payment for securities
that have been purchased by the Fund on a forward commitment or when-issued
basis can take place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to market fluctuation
and may increase or decrease in value prior to their delivery. The Fund
maintains, in a segregated account with its custodian, assets with a market
value equal to the amount of its purchase commitments. The purchase of
securities on a when-issued or forward commitment basis may increase the
volatility of the Fund's net asset value to the extent the Fund makes such
purchases while remaining substantially fully invested. At December 31, 1996,
the Fund had no outstanding when-issued or forward commitments.
Allocation of Income, Expenses, and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At December 31, 1996, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $10,313,000 which expires between 1999 and 2004.
<PAGE>
Distributions to Shareholders. Income dividends are declared and recorded each
day the New York Stock Exchange is open for business based on the projected net
investment income for a period, usually one month, calculated as if earned pro
rata throughout the period on a daily basis. Such dividends are paid monthly.
Distributions from net realized gains on investments, if any, are recorded on
the ex-dividend date and paid annually.
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of the distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purpose. Also, due to timing of dividend
distributions, the fiscal year in which amounts are distributed may differ from
the year that the income or realized gain (loss) was recorded by the Fund.
During the year ended December 31, 1996, the Fund adjusted the classification of
net investment income and net realized gain (loss) to reflect the differences
between financial statement amounts and distributions determined in accordance
with income tax regulations. During the year ended December 31, 1996, amounts
have been reclassified to reflect a decrease in paid-in capital of $44,925 and
an increase in undistributed net investment income of $44,925.
Deferred Organizational Expenses. The Fund was organized under the laws of
Massachusetts in September, 1991. Deferred organizational expenses in the amount
of $50,000 were amortized on a straight-line basis over a five year period
ending September, 1996.
Concentration in New York Issuers. There are certain risks arising from
geographic concentration in any state. Certain revenue or tax related events in
a state may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
Other. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
Note 2. 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 shares of beneficial interest were as follows:
Class A:
<TABLE>
<CAPTION>
Year Ended December 31, 1996 1995
---- ----
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 46,954,523 $152,448,902 41,287,431 $133,924,167
Dividends and distributions
reinvested 6,569,019 21,305,028 5,901,142 19,071,036
Redeemed (32,312,396) (104,778,892) (31,589,856) (101,861,389)
----------- ------------- ----------- -------------
Net increase 21,211,144 $68,975,038 15,598,717 $51,133,814
=========== ============= =========== =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended Period May 1-
December 31, 1996 December 31, 1995
----------------- -----------------
Class B:
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 7,835,459 $25,456,582 5,028,893 $16,226,929
Dividends and distributions
reinvested 287,435 933,386 50,215 163,547
Redeemed (630,627) (2,041,465) (79,531) (259,772)
---------- ------------ ---------- ------------
Net increase 7,492,267 $24,348,503 4,999,577 $16,130,704
========== ============ ========== ============
</TABLE>
Note 3. Portfolio Information:
During 1996, 15.36% of interest income was derived from investments in U.S.
territories which are exempt from federal, all states and New York City income
taxes.
At December 31, 1996, net unrealized appreciation on investments of $14,730,508
was composed of gross appreciation of $15,281,182, and gross depreciation of
$550,674.
Unrealized appreciation (depreciation) at December 31, 1996 based on cost of
investments for federal income tax purposes of $655,989,982 was:
Gross unrealized appreciation $15,249,800
Gross unrealized depreciation (561,456)
------------
Net unrealized appreciation $14,688,344
============
Note 4. Management Fees and Other Transactions With Affiliates:
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee based on an annual
rate of 0.50% of average daily net assets up to $100 million, 0.45% of average
daily net assets on the next $150 million, 0.40% of average daily net assets in
excess of $250 million but less than $2 billion, and 0.39% of average daily net
assets in excess of $2 billion. During 1996, the Fund paid $27,896 to RCA, L.P.
(the former manager) and $2,687,213 to the Manager for management and investment
advisory services.
Accounting fees paid to the Manager were in accordance with the accounting
services agreement with the Fund which provides for an annual fee of $12,000 for
the first $30 million of net assets and $9,000 for each additional $30 million
of net assets. During 1996, the Fund paid $1,980 to RFS (the former accounting
and pricing agent) and $191,702 to the Manager for accounting and pricing
services.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund. The transfer and shareholder servicing
agent fee paid by 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. During 1996, the Fund paid a total of $3,066 to RFS (the former
shareholder servicing agent), with the remainder being paid to OFS.
For the year ended December 31, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $1,623,032, of which $290,035 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by affiliated broker/dealers. Sales charges
advanced to broker/dealers by OFDI on sales of the Fund's Class B shares totaled
$498,857, of which $7,432 was paid to an affiliated broker/dealer. During the
year ended December 31, 1996, OFDI received contingent deferred sales charges of
$31,172 upon redemption of Class B shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
<PAGE>
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI for a
portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made monthly
at an annual rate that may not exceed 0.25% of the average annual net assets of
Class A shares of the Fund. OFDI uses the service fee to reimburse brokers,
dealers, banks and other financial institutions quarterly for providing personal
service and maintenance of accounts of their customers that hold Class A shares.
During the year ended December 31, 1996, OFDI paid $7,144 to an affiliated
broker/dealer as reimbursement for Class A personal service and maintenance
expenses.
The Fund has adopted a compensation type Distribution and Service Plan for Class
B shares to compensate OFDI for its services and costs in distributing Class B
shares and servicing accounts. Under the Plan, the Fund may pay OFDI an annual
asset-based sales charge of up to 0.75% per year on Class B shares, as
compensation for sales commissions paid from its own resources at the time of
sale and associated financing costs. Currently, the Board of Trustees has
limited the asset-based sales charge to 0.50% per year on Class B shares. OFDI
also receives a service fee of 0.25% per year as compensation for costs incurred
in connection with the personal service and maintenance of accounts that hold
shares of the Fund, including amounts paid to brokers, dealers, banks and other
financial institutions. The fee is computed on the average annual net assets of
Class B shares, determined as of the close of each regular business day. During
the year ended December 31, 1996, OFDI retained $171,044 as compensation for
Class B sales commissions and service fee advances, as well as financing costs.
If the Plan is terminated by the Fund, the Board of Trustees may allow the Fund
to continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was terminated. At December 31, 1996, OFDI
had incurred unreimbursed expenses of $367,902 for Class B.
Note 5. Bank Borrowings:
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 two other
Rochester Division funds managed by the Manager in an unsecured line of credit
with a bank, which permits borrowings up to $70 million, collectively. Interest
is charged to each fund, based on its borrowings, at a rate equal to the New
York Interbank Offer Rate (NIBOR) plus 0.75%. Borrowings are payable on demand.
The Fund had borrowings of $9,000,000 outstanding at December 31, 1996. For the
year ended December 31, 1996, the average monthly loan balance was $6,351,876 at
an average interest rate of 6.163%. The maximum amount of borrowings outstanding
at any month-end was $22,440,000.
<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 statement 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, 1996, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, 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, 1996 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
Price Waterhouse LLP
Rochester, New York
January 24, 1997
- --------------------------------------------------------------------------------
Federal Tax Information (Unaudited)
In early 1997, shareholders received information regarding all dividends and
distributions paid to them by the Fund during calendar year 1996. 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, 1996
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 (84.64%), Guam (2.29%), Puerto Rico (2.56%),
Virgin Islands (9.82%), American Samoa (0.69%).
During 1996, 19.23% 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 adviser for specific guidance.
<PAGE>
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OppenheimerFunds Family
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OppenheimerFunds offers over 50 funds designed to fit virtually every
investment goal. Whether you're investing for retirement, your children's
education or tax-free income, we have the funds to help you seek your
objective.
When you invest with OppenheimerFunds, you can feel comfortable
knowing that you are investing with a respected financial institution with
over 35 years of experience in helping people just like you reach their
financial goals. And you're investing with a leader in global, growth
stock and flexible fixed-income investments--with over 3 million shareholder
accounts and more than $60 billion under OppenheimerFunds' management and
that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange shares. And you
can exchange shares easily by mail or by telephone.(1) For more information on
Oppenheimer funds, please contact your financial adviser or call us at
1-800-525-7048 for a prospectus. You may also write us at the address shown
on the back cover. As always, please read the prospectus carefully before
you invest.
===================================================================================================
Stock Funds Developing Markets Funds Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Capital Appreciation Fund(3)
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Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
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Bond Funds International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
===================================================================================================
Municipal Funds California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
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Money Market Funds(5) Money Market Fund Cash Reserves
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LifeSpan Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. Available only to investors in certain states.
5. An investment in money market funds is neither insured nor guaranteed by
the U.S. government and there can be no assurance that a money market fund
will be able to maintain a stable net asset value of $1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
(c) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
</TABLE>
<PAGE>
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TAX-FREE INCOME
- --------------------------------------
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 taxes, if applicable(1), yet many investors remain unaware of how
advantageous tax-free income can be.
For example, to match the after-tax return of a 5.0% tax-free yield, a
resident of New York City in the 38.4% combined tax bracket would have to find a
taxable investment yielding 8.1%.
The specific advantages of tax-free investing for your tax situation may be
different and we encourage you to develop a long range financial plan with your
financial consultant.
(1.) A portion of the Fund's income distributions may be subject to federal,
state and city 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.
<TABLE>
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TAX EXEMPT VS. TAXABLE YIELDS
Effective Effective
Tax Taxable Rate Tax Taxable Rate
Bracket Needed to Equal Bracket Needed to Equal
1997 Taxable Income NYC Residents Current Tax-Free Rate NYS Residents Current Tax-Free Rate
- -------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
Single Return Joint Return 5.0% 5.5% 5.0% 5.5%
- -------------------------------------------------------------------------------------------------------------------------------
$20,001 - $24,650 $40,001 - $41,200 24.0% 6.6% 7.2% 20.8% 6.3% 7.0%
$24,651 - $59,750 $41,201 - $99,600 35.7% 7.8% 8.6% 32.9% 7.5% 8.2%
$59,751 - $124,650 $99,601 - $151,750 38.4% 8.1% 8.9% 35.7% 7.8% 8.6%
$124,651 - $271,050 $151,751 - $271,050 42.9% 8.8% 9.6% 40.4% 8.4% 9.2%
over $271,050 over $271,050 46.1% 9.3% 10.2% 43.7% 8.9% 9.8%
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</TABLE>
The tax information and brackets listed above are believed to be current at the
present time. The table assumes that an 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 deductible from federal tax
payments. Your actual bracket will vary depending on your income, investments
and deductions. You should consult your tax adviser 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.
--------------------------------
And Community Support
--------------------------------
In addition to the investment advantages of
tax-free income, municipal bonds also provide for
much of the infrastructure of the communities in
which we live. The efforts undertaken to
strengthen our portfolio help us include issues
that provide the 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 in the Limited Term
New York Municipal Fund.
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, NY 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
1100 Bausch & Lomb Place
Rochester, NY 14604-0075
Transfer and Shareholder Services Agent
OppenheimerFunds Services
PO Box 5270
Denver, CO 80217-5270
RAO355.001.0197 February 28, 1997
This Annual Report is for the information of shareholders of 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 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.
Call our Toll-Free Customer Service today at 1-800-525-7048 for more
information on how to take advantage of your financial relationship with the
OppenheimerFunds family.
[PHOTO OF BRIDGET A. MACASKILL AND RONALD FIELDING]
Bridget A. Macaskill, President and CEO, OppenheimerFunds, Inc. and Portfolio
Manager Ronald Fielding
================================================================================
--------------
[LOGO] OppenheimerFunds(SM) Bulk Rate
US Postage
OppenheimerFunds Distributor, Inc. PAID
Rochester Division Rochester, NY
350 Linden Oaks Permit No. 491
Rochester, NY 14625-2807 --------------
