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