As filed with the Securities and Exchange Commission on March 5, 1996
Registration No. 33-3692
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 17
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 22
(Check appropriate box or boxes.)
ROCHESTER FUND MUNICIPALS
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(Exact Name of Registrant as Specified in Charter)
350 Linden Oaks, Rochester, New York 14625
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (716) 383-1300
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Andrew J. Donohue, Esq.
OppenheimerFunds, Inc.
Two World Trade Center
New York, New York 10048-0203
(Name and Address of Agent for Service)
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With a copy to:
Robert J. Zutz, Esq.
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue NW
Washington, D.C. 20036
Approximate Date of Proposed Public Offering: As soon as practicable after the
effective date of this Registration Statement. It is proposed that this filing
become effective:
[ ] Immediately upon filing pursuant to paragraph (b)
[X] On March 11, 1996 pursuant to paragraph (b)
[ ] Sixty days after filing pursuant to paragraph (a)(i)
[ ] On (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph a(ii)
[ ] On (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
[ ] this post effective amendment designates a new effective date for a
previously filed post-effective amendment.
Registrant's Rule 24f-2 Notice for the most recent fiscal year was filed
with the Securities and Exchange Commission on February 28, 1996.
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<PAGE>
Rochester Fund Muncipals
Cross Reference Sheet
Form N-1A
Part A of
Form N-1A
Item No. Heading in Prospectus
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1 Front Cover Page
2 Expenses; A Brief Overview of the Fund
3 Financial Highlights; Performance of the Fund
4 Front Cover Page; How the Fund is Managed--Organization
and History; Investment Objective and Policies;
Investment Policies and Strategies;
Investment Consideration
5 About the Fund--Expenses; How the Fund is Managed;
Back Cover
5A *
6 How the Fund is Managed--Organization and History;
The Transfer Agent; Dividends, Capital Gains and Taxes;
Investment Objective and Policies; Investment
Considerations
7 Shareholder Account Rules and Policies; How to Buy Shares;
How to Sell Shares; How to Exchange Shares; Special
Investor Services; Service Plan for Shares
8 How to Sell Shares; Special Investor Services
9 *
Part B of
Form N-1A
Item No. Heading in Statement of Additional Information
- --------- ----------------------------------------------
10 Cover Page
11 Cover Page
12 *
13 Investment Objective and Policies--Other Investment
Techniques and Strategies; Investment Objective and
Policies--Investment Considerations/Risks
14 How the Fund is Managed--Trustees and Officers of the Fund
15 How the Fund is Managed--Major Shareholders
16 How the Fund is Managed--The Manager and its Affiliates;
Distribution and Service Plans
17 Brokerage Policies of the Fund
18 About Your Account--Determination of Net Asset Value Per
Share; Dividends, Capital Gains and Taxes
19 Your Investment Account--How to Buy Shares; How to
Sell Shares; How to Exchange Shares
20 Dividends, Capital Gains and Taxes
21 How the Fund is Managed; Brokerage Policies of the Fund
22 Performance of the Fund
23 Financial Statements
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* Not applicable or negative answer.
<PAGE>
ROCHESTER FUND MUNICIPALS
Prospectus dated March 11, 1996
Rochester Fund Municipals is a non-diversified mutual fund with the
investment objective of providing shareholders with as high a level of interest
income exempt from Federal, New York State and New York City personal income
taxes as is consistent with its investment policies and prudent investment
management while seeking preservation of shareholders' capital. The Fund intends
to achieve its objective by investing primarily in New York State municipal and
public authority debt obligations, the interest from which is exempt from such
taxes. Except for temporary defensive purposes, at least 80% of the Fund's net
assets will be invested in tax exempt municipal securities. There can be no
assurance that the Fund will achieve its objective.
This Prospectus explains concisely what you should know before investing in
the Fund. Please read this Prospectus carefully and keep it for future
reference. You can find more detailed information about the Fund in the March
11, 1996 Statement of Additional Information. For a free copy, call
OppenheimerFunds Services, the Fund's Transfer Agent, at 1-800-525-7048, or
write to the Transfer Agent at the address on the back cover. The Statement of
Additional Information has been filed with the Securities and Exchange
Commission and is incorporated into this Prospectus by reference (which means
that it is legally part of this Prospectus).
[Logo]
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF ANY BANK, ARE NOT
GUARANTEED BY ANY BANK, ARE NOT INSURED BY THE F.D.I.C. OR ANY OTHER AGENCY,
AND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
Contents
ABOUT THE FUND
EXPENSES
A BRIEF OVERVIEW OF THE FUND
FINANCIAL HIGHLIGHTS
INVESTMENT OBJECTIVE AND POLICIES
INVESTMENT POLICIES AND STRATEGIES
INVESTMENT CONSIDERATIONS
HOW THE FUND IS MANAGED
PERFORMANCE OF THE FUND
ABOUT YOUR ACCOUNT
HOW TO BUY SHARES
SPECIAL INVESTOR SERVICES
AccountLink
Automatic Withdrawal and Exchange
Plans
Reinvestment Privilege
HOW TO SELL SHARES
By Mail
By Telephone
HOW TO EXCHANGE SHARES
SHAREHOLDER ACCOUNT RULES AND POLICIES
DIVIDENDS, CAPITAL GAINS AND TAXES
-2-
<PAGE>
ABOUT THE FUND
EXPENSES
The Fund pays a variety of expenses directly for management of its assets,
administration, distribution of its shares and other services, and those
expenses are subtracted from the Fund's assets to calculate the Fund's net asset
value per share. All shareholders therefore pay those expenses indirectly.
Shareholders pay other expenses directly, such as sales charges and account
transaction charges. The following tables are provided to help you understand
your direct expenses of investing in the Fund and your share of the Fund's
business operating expenses that you will bear indirectly. The calculations are
based on the Fund's expenses during its last fiscal year ended December 31,
1995.
o SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or sell
shares of the Fund. Please refer to "About Your Account," for an explanation of
how and when these charges apply.
Maximum Sales Charge on Purchase
(as a % of offering price) .................... 4.00%
o ANNUAL FUND OPERATING EXPENSES are paid out of the Fund's assets and
represent the Fund's expenses in operating its business. For example, the Fund
pays management fees to its investment adviser, OppenheimerFunds,Inc.(which is
referred to in this Prospectus as the "Manager"). The rates of the Manager's
fees are set forth in "How the Fund is Managed" below. The Fund has other
regular expenses for services, such as transfer agent fees, custodial fees paid
to the bank that holds the Fund's portfolio securities, audit fees and legal
expenses. Those expenses are detailed in the Fund's Financial Statements in the
Statement of Additional Information.
Annual Fund Operating Expenses
As a Percentage of Average Net Assets
Management Fees(1) 0.48%
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12b-1 Distribution Plan
Fees(2) 0.15%
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Other Expenses 0.19%
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Total Fund Operating Expenses(3) 0.82%
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(1) The Fund's Management Fees have been restated to reflect the amendment of
the Fund's Investment Advisory Agreement on May 1, 1995 to increase such fees as
a percentage of average net assets payable to the Fund's previous investment
adviser. The Fund's actual management fees in 1995 were 0.46% of the Fund's
average daily net assets. See "How the Fund Is Managed--The Manager and Its
Affiliates" and "Fees and Expenses."
(2) The Fund's 12b-1 Fees have been restated to reflect the amendment of the
Fund's 12b-1 Distribution Plan on May 1, 1995, to eliminate the asset based
sales charge. Although the Fund's Amended and Restated Service Plan and
Agreement ("Service Plan") which became effective on January 5, 1996, permits
payment of a service fee of up to 0.25% of the Fund's average daily net assets
per annum, the Board of Trustees has authorized payment of a service fee of only
0.15% per annum of the Fund's average daily net assets. See "About Your Account:
Service Plan for Shares."
(3) Actual Total Operating Expenses during the fiscal year ended December 31,
1995 were 0.82% (including interest expense) and 0.78% (excluding interest
expense). For the fiscal year ending December 31, 1995, the Fund's interest
expense was substantially offset by the incremental interest income generated on
bonds purchased with borrowed funds.
The numbers in the table above are based on the Fund's expenses in its last
fiscal year. These amounts are shown as a percentage of the average net assets
for that year. The 12b-1 Distribution Plan Fees for shares are Service Plan Fees
(which are a maximum of 0.25% for the service fee ). This plan is described in
greater detail in "How to Buy Shares."
The actual expenses for shares in future years may be more or less than the
numbers in the above table, depending on a number of factors, including the
actual value of the Fund's assets.
o EXAMPLES. To try to show the effect of these expenses on an investment
over time, we have created the hypothetical examples shown below. Assume that
you make a $1,000 investment in shares of the Fund, and that the Fund's annual
return is 5%, and that its operating expenses are the ones shown in the Annual
Fund Operating Expenses table above (as restated). If you were to redeem your
shares at the
-3-
<PAGE>
end of each period shown below, your investment would incur the following
expenses by the end of 1, 3, 5 and 10 years:
1 year 3 years 5 years 10 years
------ ------- ------- --------
48 65 84 137
If you did not redeem your investment, it would incur the following expenses:
1 year 3 years 5 years 10 years
------ ------- ------- --------
48 65 84 137
These examples show the effect of expenses on an investment. The examples
should not be considered a representation of past or future expenses. Actual
expenses may be greater or less than those shown.
-4-
<PAGE>
A BRIEF OVERVIEW OF THE FUND
Some of the important facts about the Fund are summarized below, with
references to the section of this Prospectus where more complete information can
be found. You should carefully read the entire Prospectus before making a
decision about investing in the Fund. Keep the Prospectus for reference after
you invest, particularly for information about your account, such as how to sell
or exchange shares.
o WHAT IS THE FUND'S INVESTMENT OBJECTIVE? The Fund's investment objective
is to provide shareholders with as high a level of interest income exempt from
Federal, New York State and New York City personal income taxes as is consistent
with its investment policies and prudent investment management while seeking
preservation of shareholders' capital. There can be no assurance that the Fund
will achieve its objective.
o WHAT DOES THE FUND INVEST IN? The Fund seeks to achieve its objective by
investing primarily in New York State municipal and public authority debt
obligations the interest from which is exempt from such taxes. In addition, the
Fund may also invest its assets in obligations of municipal issuers located in
U.S. territories. See "Dividends, Captial Gains and Taxes". Investments will be
made without regard to maturity. The lack of maturity restrictions, however, may
result in greater fluctuation of bond prices in the Fund's portfolio and greater
fluctuation in the Fund's net asset value because the prices of long-term bonds
are more affected by changes in interest rates than prices of short-term bonds.
As a fundamental policy, at least 80% of the Fund's net assets will be
invested in tax-exempt securities except when the Manager determines that market
conditions could cause serious erosion of portfolio value, in which case assets
may be temporarily invested in short-term taxable obligations as a defensive
measure to preserve net asset value. Such temporary investments will be limited
substantially to: obligations issued or guaranteed by the United States
government, its agencies, instrumentalities or authorities; highly-rated
corporate debt securities; prime commercial paper; or certificates of deposit of
domestic banks with assets of at least $1 billion.
o WHO MANAGES THE FUND? The Fund's investment adviser is OppenheimerFunds,
Inc. The Manager (including a subsidiary) advises investment company portfolios
having over $40 billion in assets at December 31, 1995. The Manager is paid an
advisory fee by the Fund, based on its assets. The Fund's portfolio manager, who
is employed by the Manager and who is primarily responsible for the selection of
the Fund's securities, is Ronald H. Fielding. The Fund's Board of Trustees,
which is elected by shareholders, oversees the investment adviser and the
portfolio manager. Please refer to "How the Fund is Managed" for more
information about the Manager and its fees.
o HOW RISKY IS THE FUND? All investments carry risks to some degree. The
Fund's investments are subject to changes in their value from a number of
factors such as changes in general bond market movements, the change in value of
particular bonds because of an event affecting the issuer, or changes in
interest rates that can affect bond prices. These changes affect the value of
the Fund's investments and its price per share. The Fund may invest in "inverse
floater" variable rate bonds, a type of derivative investment whose yields move
in the opposite direction as short-term interest rates change. While the Manager
tries to reduce risks by diversifying investments and by carefully researching
securities before they are purchased for the portfolio, and in some cases by
using hedging techniques, there is no guarantee of
-5-
<PAGE>
success in achieving the Fund's objective and your shares may be worth more or
less than their original cost when you redeem them. Please refer to "Investment
Objective and Policies" for a more complete discussion.
o HOW CAN I BUY SHARES? You can buy shares through your dealer or financial
institution, or you can purchase shares directly through the Distributor by
completing an Application or by using an Automatic Investment Plan under
AccountLink. Please refer to "How to Buy Shares" for more details.
o WILL I PAY A SALES CHARGE TO BUY SHARES? The Fund offers the investor one
class of shares with a maximum front-end sales load of 4%. There is no
contingent deferred sales charge nor asset based sales charge on the shares.
Please refer to "How to Buy Shares" for more details.
o HOW CAN I SELL MY SHARES? Shares can be redeemed by mail or by telephone
call to the Transfer Agent on any business day, or through your dealer. Please
refer to "How to Sell Shares". The Fund also offers exchange privileges to other
Oppenheimer funds, described in "How To Exchange Shares".
o HOW HAS THE FUND PERFORMED? The Fund measures its performance by quoting
its yield, tax equivalent yield, average annual total return and cumulative
total return, which measure historical performance. Those yields and returns can
be compared to the yields and returns (over similar periods) of other funds. Of
course, other funds may have different objectives, investments, and levels of
risk. Please remember that past performance does not guarantee future results.
-6-
<PAGE>
FINANCIAL HIGHLIGHTS
The table on the following pages presents selected financial information
about the Fund, including per share data and expense ratios and other data based
on the Fund's average net assets. This information has been audited by Price
Waterhouse LLP, the Fund's independent auditors, whose report on the Fund's
financial statements for the fiscal year ended December 31, 1995, is included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987* 1986*
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........ $16.31 $19.00 $17.65 $17.01 $16.24 $16.29 $16.14 $15.31 $16.06 $16.14
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income .... 1.10 1.13 1.17 1.20 1.20 1.20 1.20 1.20 1.13 .88
Net realized and
unrealized gain (loss) on
investments .............. 1.86 (2.68) 1.35 .64 .81 (.05) .15 .83 (.57) .16
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations ............... 2.96 (1.55) 2.52 1.84 2.01 1.15 1.35 2.03 .56 1.04
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions to
shareholders from:
Net investment income .. (1.09) (1.13) (1.17) (1.20) (1.20) (1.20) (1.20) (1.20) (1.20) (1.12)
Undistributed net
investment income --
prior year ............ -- (0.01) -- -- -- -- -- -- -- --
Capital gains .......... -- -- -- -- (.04) -- -- -- (.11) --
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions ...... (1.09) (1.14) (1.17) (1.20) (1.24) (1.20) (1.20) (1.20) (1.31) (1.12)
----- ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
year .................... $18.18 $16.31 $19.00 $17.65 $17.01 $16.24 $16.29 $16.14 $15.31 $16.06
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total return (excludes
sales load) .............. 18.58% (8.35%) 14.60% 11.19% 12.79% 7.28% 8.67% 13.72% 3.69% 6.89%
Ratios/supplemental data:
Net assets, end of year
(000 omitted) .......... $2,145,264 $1,791,299 $1,794,096 $997,030 $497,440 $260,553 $98,095 $39,277 $16,567 $7,096
Ratio of total expenses
to average net assets .. 0.82%** 0.84% 0.75% 0.84% 0.87% 0.88% 1.11% 1.13% 1.2% 0.8%
Ratio of total expenses
(excluding interest) to
average net assets(Y) .. 0.78%** 0.73% 0.64% 0.70% 0.74% 0.72% 0.91% 1.10% 1.2% 0.8%
Ratio of net investment
income to average net
assets .................. 6.25% 6.43% 6.21% 6.79% 7.12% 7.21% 7.19% 7.40% 7.3% 5.5%
Portfolio turnover rate .. 14.59% 34.39% 18.27% 29.99% 48.54% 51.63% 34.76% 61.50% 72.8% 110.0%
- --------------
</TABLE>
* Includes a voluntary reimbursement of expenses by Fielding Management
Company, Inc. which amounted to $.04 per share in 1986 and $.01 per share
in 1987. Without reimbursement, the ratio of total expenses to average net
assets would have been 1.1% in 1986 and 1.2% in 1987. Fielding Management
Company, Inc. was the Fund's investment adviser from inception through
April 30, 1994, at which time Rochester Capital Advisors, L.P. became
the Fund's investment adviser.
(Y) 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.
** Effective in 1995, the ratios do not include reductions from custodian
fee offset arrangements. The 1995 ratio of total expenses and the ratio
of total expenses (excluding interest) to average net assets are 0.81%
and 0.78%, respectively, after including this reduction.
++ On January 4, 1996, OppenheimerFunds, Inc. acquired substantially all of
the assets of Rochester Capital Advisors, L.P. and certain affiliates and
was appointed investment adviser to the Fund. Rochester Capital Advisors,
L.P. served as investment adviser to the Fund since May 1, 1994 through
January 4, 1996.
Per share information has been determined on the basis of a weighted daily
average number of shares outstanding during the period.
<TABLE>
Information On Bank Loans
<CAPTION>
Year ended December 31,
-------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Bank loans outstanding at end of year (000) ...... $ 17,930 $ 15,083 $30,886 $22,644 $18,292 $ 3,067 $1,139 $ 430
Monthly average amount of bank loans
outstanding during the year (000) .............. $8,217 $ 28,131 $27,137 $17,060 $ 5,317 $ 2,587 $ 990 $ 20
Monthly average number of shares of the
Fund outstanding during the year (000) ......... 114,502 105,753 77,472 41,429 22,445 10,327 3,980 1,554
Average amount of bank loans per share
outstanding during the year .................... $ .07 $ .27 $ .35 $ .41 $ .24 $ .25 $ .25 $ .01
</TABLE>
-7-
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
OBJECTIVE. The Fund's investment objective is to provide as high a level of
interest income exempt from Federal, New York State and New York City personal
income taxes as is consistent with prudent investing while seeking preservation
of shareholders' capital. There is no assurance that the Fund will achieve its
objective and there can be no guarantee that the value of an investment in Fund
Shares might not decline.The Fund will seek to achieve its objective by
investing primarily in New York State municipal and public authority debt
obligations exempt from such taxes. In addition, the Fund may also invest its
assets in obligations of municipal issuers located in U.S. territories. See
"Dividends, Capital Gains and Taxes". Investments will be made without regard to
maturity. The lack of maturity restrictions, however, may result in greater
fluctuation of bond prices in the Fund's portfolio and greater fluctuation in
the Fund's net asset value because the prices of long term bonds are more
affected by changes in interest rates than prices of short-term bonds.
As a fundamental policy, at least 80% of the Fund's net assets will be invested
in tax-exempt securities except when the Fund's investment adviser determines
that market conditions could cause serious erosion of portfolio value, in which
case assets may be temporarily invested in short-term taxable obligations as a
defensive measure to preserve net asset value. Such temporary investments will
be limited substantially to: obligations issued or guaranteed by the United
States government, its agencies, instrumentalities or authorities; highly-rated
corporate debt securities; prime commercial paper; or certificates of deposit of
domestic banks with assets of at least $1 billion.
CAN THE FUND'S INVESTMENT OBJECTIVE AND POLICIES CHANGE? The investment
objective and fundamental policies of the Fund are fundamental policies which
cannot be changed without shareholder approval.
INVESTMENT POLICIES AND STRATEGIES.
o CREDIT QUALITY. At least 80% of the Fund's net assets which are invested
in tax-exempt obligations will be invested in securities which have received
investment grade ratings from a nationally recognized statistical rating
organization ("NRSRO"), or in securities which are not rated, provided that, in
the opinion of the Manager, such securities are of equivalent quality to
securities so rated. Such securities may have speculative characteristics. A
description of rating categories is contained in Appendix A to the Statement of
Additional Information. The remaining 20% of the Fund's assets are invested in
securities which are rated below investment grade as in securities which are
unrated. Investments in these securities present different risks than
investments in higher rated securities, including an increased sensitivity to
adverse economic changes or individual developments and a higher rate of
default. The Manager will attempt to reduce the risks inherent in investments in
lower rated securities through active portfolio management, structuring the
portfolio to include a broad spectrum of municipal securities, credit analysis
and attention to current developments and trends in the economy and financial
markets. Such securities are regarded as speculative securities. See "Investment
Objectives and Policies" in the Statement of Additional Information for a
discussion of the risks associated with investments in high yield, high risk
securities.
o MUNICIPAL OBLIGATIONS. Municipal securities include debt obligations issued to
obtain funds for various public purposes, including the construction of a wide
range of public facilities such as bridges, highways, housing, hospitals, mass
transportation, schools, streets and water and sewer works. Other public
purposes for which municipal securities or bonds may be issued include the
refunding of outstanding obligations, obtaining funds for general operating
expenses and the obtaining of funds to loan to other public institutions and
facilities. In addition, certain types of private activity bonds are issued by
or on behalf of public authorities to obtain funds to provide housing
facilities, sports facilities, manufacturing facilities, convention or trade
show facilities,
-8-
<PAGE>
airport, mass transit, port or parking facilities, air or water pollution
control facilities and certain local facilities for water supply, gas,
electricity or sewage or solid waste disposal.
The interest on bonds issued to finance essential state and local government
operations is fully tax-exempt. However, the interest on certain private
activity bonds (including those for housing and student loans) issued after
August 15, 1986, while still tax-exempt for regular tax purposes, constitutes a
preference item for taxpayers in determining their alternative minimum tax under
the Internal Revenue Code of 1986, as amended (the "Code"). See "Taxes". The
Code also imposes certain limitations and restrictions on the use of tax-exempt
bond financing for non-government business activities, such as non-essential
private activity bonds. The Fund intends to purchase private activity bonds only
to the extent that the interest paid by such bonds is exempt from Federal, New
York State and New York City taxes for regular tax purposes.
The two principal classifications of municipal securities are "general
obligation" and "revenue" bonds. There are variations in the security of
municipal bonds, both within a particular classification and between
classifications. General obligation bonds are secured by the issuer's pledge of
its faith, credit and taxing power for the payment of principal and interest.
Revenue bonds are payable only from the revenues derived from a particular
facility or class of facilities or, in some cases, from the proceeds of a
special excise or specific revenue source. One type of revenue bond common to
New York State (the "State") is a "moral obligation" bond. A moral obligation
bond is a bond which is issued by revenue authorities under circumstances where
the State provides a moral pledge of payment in the event that an authority is
unable to make timely debt service. Unlike a general obligation pledge, however,
the moral pledge does not constitute the State's official pledge of its full
faith and credit. Accordingly, the Manager would consider precedents established
in the State with respect to the honoring of such moral pledges in its credit
analyses of moral obligation bonds. Private activity bonds, which are municipal
bonds, are in most cases revenue bonds and do not generally constitute the
pledge of the credit of the issuer of such bonds.
The values of outstanding municipal bonds will vary as a result of changing
evaluations of the ability of their issuers to meet the interest and principal
payments. Such values will also change in response to changes in the interest
rates payable on new issues of municipal bonds. Should such interest rates rise,
the values of outstanding bonds, including those held in the Fund's portfolio,
will decline and (if purchased at principal amount) would sell at a discount. If
such interest rates fall, the values of outstanding bonds will increase and (if
purchased at principal amount) would sell at a premium. Changes in the value of
municipal bonds held in the Fund's portfolio arising from these or other factors
will cause changes in the net asset value per share of the Fund. As an
operational policy, however, the Fund will not invest more than 5% of its assets
in securities where the principal and interest are the responsibility of an
industrial user with less than three years' operational history.
In determining the issuer of a tax-exempt security, each state and each
political subdivision, agency and instrumentality of each state and each
multistate agency of which such state is a member is a separate issuer. Where
securities are backed only by assets and revenues of a particular
instrumentality, facility or subdivision, such entity is considered the issuer.
The percentage limitations referred to herein and elsewhere in this Prospectus
are determined as of the time an investment or purchase is made.
o INVESTMENTS IN ILLIQUID SECURITIES. The Fund may purchase securities, in
private placements or in other transactions, the disposition of which would be
subject to legal restrictions, or in securities for which there is no regular
trading market (collectively, "Illiquid Securities"). No more than an aggregate
of 15% of the value of the Fund's net assets at the time of acquisition may be
invested in Illiquid Securities. The Fund's policy with respect to investments
in illiquid securities is a non-fundamental policy and, as such, may be changed
by action of the Fund's Board of Trustees.
-9-
<PAGE>
Such investments may include lease obligations or installment purchase contract
obligations (hereinafter collectively called "municipal leases") of municipal
authorities or entities. Subject to the percentage limitation on investments in
Illiquid Securities, the Fund may invest only a maximum of 5% of assets which
are invested in tax-exempt obligations in unrated or illiquid tax-exempt
municipal leases. Investments in tax-exempt municipal leases will be subject to
the 15% limitation on investments in Illiquid Securities unless, in the judgment
of the Manager, a particular municipal lease is liquid and unless the lease has
received an investment grade rating from an NRSRO. The Board of Trustees has
adopted guidelines to be utilized by the Manager in making determinations
concerning the liquidity and valuation of municipal lease obligations. See the
Statement of Additional Information for a description of the guidelines which
will be utilized by the Manager in making such determinations. Under
circumstances where the Fund proposes to purchase unrated municipal lease
obligations, the Fund's Board of Trustees will be responsible for determining
the credit quality of such obligations and will be responsible for assessing on
an ongoing basis the likelihood that the lease will not be cancelled.
Investment in tax-exempt lease obligations presents certain special risks which
are not associated with investments in other tax-exempt obligations such as
general obligation bonds or revenue bonds. Although municipal leases do not
constitute general obligations of the municipality for which the municipality's
taxing power is pledged, a municipal lease may be backed by the municipality's
covenant to budget for, appropriate and make the payments due under the
municipal lease. Most municipal leases, however, contain "non-appropriation"
clauses which provide that the municipality has no obligation to make lease or
installment purchase payments in future years unless money is appropriated for
such purpose on a yearly basis. Although "non-appropriation" municipal leases
are generally secured by the leased property, disposition of the property in the
event of default might prove difficult.
A further discussion of such risks and the manner in which the Fund will seek to
minimize such risks is contained in the Statement of Additional Information.
Investments in Illiquid Securities may also include, but are not limited to,
securities which have not been registered under the Securities Act of 1933, as
amended (the "1933 Act"). Rule 144A under the 1933 Act permits certain resales
of such unregistered securities, provided that such securities have been
determined to be eligible for resale to certain qualified institutional buyers
("Rule 144A Securities"). Rule 144A Securities which are determined to be liquid
by the Fund's Manager pursuant to certain guidelines which have been adopted by
the Board of Trustees will be excluded from the 15% limitation on investments in
Illiquid Securities. See the Statement of Additional Information for a
discussion of such factors.
o BORROWING FOR INVESTMENT PURPOSES. The Fund may borrow money, but only
from banks, in amounts up to 5% of its total assets for temporary and emergency
purposes, or to purchase additional portfolio securities. Borrowing for
investment purposes increases both investment opportunity and investment risk.
Such borrowings in no way affect the Federal or New York State tax status of the
Fund or its dividends. If the investment income on securities purchased with
borrowed money exceeds the interest paid on the borrowing, the net asset value
of the Fund's shares will rise faster than would otherwise be the case. On the
other hand, if the investment income fails to cover the Fund's costs, including
the interest on borrowings or if there are losses, the net asset value of the
Fund's shares will decrease faster than would otherwise be the case.
The Investment Company Act of 1940, as amended (the "Act"), requires the
Fund to maintain asset coverage of at least 300% for all such borrowings, and
should such asset coverage at any time fall below 300%, the Fund would be
required to reduce its borrowings within three days to the extent necessary to
meet the requirements of the Act. The Fund might be required to sell securities
at a time when it would be disadvantageous to do so in order to reduce its
borrowing. See "Other Investment Restrictions" in the Statement of Additional
Information.
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<PAGE>
In addition, because interest on money borrowed is an expense that the Fund
would not otherwise incur, the Fund may have less net investment income during
periods when its borrowings are substantial. The interest paid by the Fund on
borrowings may be more or less than the yield on the securities purchased with
borrowed funds, depending on prevailing market conditions.
o DESCRIPTION OF ADDITIONAL INVESTMENT POLICIES AND PERMITTED SECURITIES
Except as otherwise noted, the investment policies described below and elsewhere
in this prospectus are non-fundamental investment policies and, as such, may be
changed by action of the Fund's Board of Trustees.
[ ] PORTFOLIO COMPOSITION. As a fundamental policy, as to 75% of the value
of the Fund's gross assets, no more than 5% of the value thereof will be
invested in the securities of any one issurer. This limitation does not apply to
investments issued or guaranteed by the U.S. Government, its agencies, or its
instrumentalities or authorities. As part of that policy, the Fund may invest
more than 25% of its assets in industrial development bonds but no more than 5%
of the assets will be invested in such bonds for which the underlying credit is
one business or one charitable entity. As to the balance of 25% of the Fund's
gross assets not covered by this policy, the Fund would not invest more than 10%
thereof in the securities of any one issuer. In no case, however, will the Fund
invest more than 5% of its assets in the securities of any one issuer where such
securities are rated B or below. The Fund is not a diversified fund for purposes
of the Act.
[ ] INVESTING IN OTHER INVESTMENT COMPANIES. The Fund also may invest on a
short-term basis up to 5% of its net assets in other investment companies which
have a similar objective of obtaining income exempt from Federal, New York
State, and New York City income taxes. Such investing involves similar expenses
by the Fund and by other investment companies involved, and the Fund intends to
make such investments only on a short-term basis and only when the Manager
reasonably anticipates that the net after-tax return to the Fund's shareholders
will be improved, as compared to the return available from other short-term
investments. See the Statement of Additional Information.
[ ] INVERSE FLOATERS. The Fund may also invest in municipal obligations on which
the interest rates typically decline as market rates increase and increase as
market rates decline (commonly referred to as "inverse floaters"). Changes in
the market interest rate or in the floating rate security inversely affect the
residual interest rate paid on the inverse floater, with the result that the
inverse floater's price will be considerably more volatile than that of a
fixed-rate bond. For example, a municipal issuer may decide to issue two
variable rate instruments instead of a single long-term, fixed-rate bond. Such
securities have the effect of providing a degree of investment leverage, since
the interest rate on one instrument reflects short-term interest rates, while
the interest rate on the other instrument (the inverse floater) reflects the
approximate rate the issuer would have paid on a fixed-rate bond, multiplied by
two, minus the interest rate paid on the short-term instrument. The two portions
may be recombined to form a fixed-rate municipal bond. To seek to limit the
volatility of the securities, the Manager may acquire both portions in an effort
to reduce risk and preserve capital. The market for inverse floaters is
relatively new. The Manager believes that inverse floating obligations represent
a flexible portfolio management instrument for the Fund which allows the Manager
to vary the degree of investment leverage efficiently under different market
conditions. Certain investments in such obligations may be illiquid and, as
such, are subject to the Fund's limitation on investments in Illiquid
Securities. The Fund may not invest in such illiquid obligations if such
investments, together with other Illiquid Securities, would exceed 15% of the
Fund's net assets.
[ ] PUT OPTIONS. The Fund, for liquidity purposes only, may purchase from banks
municipal securities together with the right to resell ("put") the securities to
the seller. A separate put option may not be marketable or otherwise assignable,
and the sale of the security to a third-party or a lapse of time during
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which the put is unexercised may terminate the right to exercise the put. The
Fund does not expect to assign any value to any separate put option which may be
acquired to facilitate portfolio liquidity inasmuch as the value, if any, of the
put will be reflected in the value assigned to the associated security.
[ ] VARIABLE RATE DEMAND NOTES. The Fund may purchase variable rate demand notes
("VRDNs") which are tax-exempt obligations that contain a floating or variable
interest rate adjustment formula and an unconditional right of demand to receive
payment of the unpaid principal balance plus accrued interest upon a short
notice period. The Fund may also invest in VRDNs in the form of participation
interests in variable rate tax-exempt obligations held by a financial
institution, typically a commercial bank.
[ ] WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS. The Fund may also purchase
and sell municipal securities on a "when issued" and "delayed delivery" basis.
These transactions are subject to market fluctuation and the value at delivery
may be more or less than the purchase or sale price. Since the Fund relies on
the buyer or seller, as the case may be, to consummate the transaction, failure
by the other party to complete the transaction may result in the Fund missing
the opportunity of obtaining a price or yield considered to be advantageous.
When the Fund is the buyer in such a transaction, however, it will maintain, in
a segregated account with its custodian, cash or high grade marketable
securities having an aggregate value equal to the amount of such purchase
commitments until payment is made. In addition, the Fund would mark the "when
issued" security to market each day for purposes of portfolio valuation. To the
extent the Fund engages in "when issued" and "delayed delivery" transactions, it
will do so for the purpose of acquiring securities for the Fund's portfolio
consistent with its investment objective and policies and not for the purpose of
investment leverage. As a fundamental policy, securities purchased on a "when
issued" and "delayed delivery" basis may not constitute more than 10% of the
Fund's net assets.
[ ] ZERO COUPON SECURITIES. The Fund may invest without limitation as to amount
in zero coupon securities. Zero coupon securities are debt obligations that do
not entitle the holder to any periodic payment of interest prior to maturity or
a specified date when the securities begin paying current interest. They are
issued and traded at a discount from their face amount or par value, which
discount varies depending on the time remaining until cash payments begin,
prevailing interest rates, liquidity of the security and the perceived credit
quality of the issuer. Original issue discount earned on zero coupon securities
is included in the Fund's income. The market prices of zero coupon securities
generally are more volatile than the prices of securities that pay interest
periodically and in cash and are likely to respond to changes in interest rates
to a greater degree than do other types of debt securities having similar
maturities and credit quality.
In addition, the Fund is subject to certain investment restrictions, some of
which may be changed only with the approval of shareholders. See the Statement
of Additional Information for a list of these additional restrictions and for
additional information concerning the characteristics of municipal securities.
12
<PAGE>
INVESTMENT CONSIDERATIONS
In addition to those considerations discussed in "How Risky is the Fund?",
investing in the Fund includes the following considerations.
o CONCENTRATION IN NEW YORK MUNICIPAL SECURITIES. Because the Fund will
ordinarily invest 80% or more of its assets in the obligations of New York
State, its municipalities, agencies and instrumentalities which are exempt from
Federal, New York State and New York City personal income taxes ("New York
Municipal Securities"), it is more susceptible to factors affecting the State
and other issuers of New York Municipal Securities than is a comparable
municipal bond fund whose investments are not concentrated in the obligations of
issuers located in a single state. Investors should consider these matters and
the financial difficulties experienced in past years by New York State and
certain of its agencies and subdivisions (particularly New York City), as well
as economic trends in New York, summarized in the Statement of Additional
Information under "Investment Considerations/Risk Factors: New York Municipal
Securities." In addition, the Fund's portfolio securities are affected by
general changes in interest rates, which result in changes in the value of
portfolio securities held by the Fund, which can be expected to vary inversely
to changes in prevailing interest rates.
o CREDIT QUALITY. At least 80% of the Fund's net assets which are invested in
tax-exempt obligations will be invested in securities which have received
investment grade ratings from an NRSRO or in unrated securities, which in the
opinion of the Manager, are of comparable quality. Tax-exempt obligations which
are in the lowest categories of investment grade ratings (e.g., those rated BBB
by Standard and Poor's Ratings Group ["S&P" or "Standard & Poors"] or Baa by
Moody's Investors Services, Inc. ["Moody's"]) have speculative characteristics
and a weakened capacity to repay principal and pay interest. The Fund may invest
up to 20% of its net assets in high-yield, lower-rated tax exempt securities or
in such lower rated securities. Investments in these securities present
different risks than investments in higher-rated securities, including an
increased sensitivity to adverse economic changes or individual developments and
a higher rate of default. Certain risks are associated with applying credit
ratings as a method for evaluating high yield securities. Credit ratings
evaluate the safety of scheduled payments, not market value risk of high yield
securities. Since credit rating agencies may fail to timely change the credit
ratings to reflect subsequent events, the Manager must monitor the issuers of
high yield securities in its portfolio to determine if the issuers will have
sufficient cash flow and profits to meet required payments, and to attempt to
assure the liquidity of the securities so the Fund can meet redemption requests.
The Fund may retain a portfolio security whose rating has been changed.
The dollar weighted average of credit ratings of all bonds rated by NRSROs held
by the Fund during the year ended December 31, 1995, computed on a monthly
basis, as a percentage of the Fund's total portfolio, separated into each rating
category established by S&P, Fitch Investor Services, Inc.("Fitch") and Duff &
Phelps ("D&P") (AAA,AA, A,BBB,BB,B or lower), and Moody's (Aaa,Aa,A,Baa,Ba,B or
lower), were, respectively, 18%, 11%, 19%, 22%, 5% and 2%. Unrated bonds
comprised 23% of the Fund's total investments. Unrated bonds, which are backed
by a letter of credit or guaranteed by financial institutions or agencies, may
be deemed by the Manager or by the Board of Trustees to be comparable in quality
to securities as to which quality ratings have been ascribed by S & P, Moody's,
Fitch or D&P based upon quality or upon an existing rating of the issuer of the
letter of credit, institution, or agency. Unrated bonds also may be deemed to be
comparable in quality to investment
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<PAGE>
grade securities by the Trustees under circumstances where such unrated bonds
have credit characteristics which are comparable to those of similar rated
issuers. Based upon the weighted average of credit ratings of those bonds which
were rated by an NRSRO and unrated securities of comparable quality as
determined by either the Manager or the Trustees, as the case may be, which were
held by the Fund during the year ended December 31, 1995 computed on a monthly
basis, the percentages of the Fund's assets which were invested either in bonds
rated by an NRSRO or in bonds which, although unrated by an NRSRO, are
considered by the Manager or the Trustees to be of comparable quality to rated
securities, as separated into each rating category established by S&P, Moody's,
Fitch or D&P as described above, were respectively 18%, 14%, 22%, 27%, 5% and
2%. Bonds which were neither rated by an NRSRO nor considered by the Manager or
the Trustees to be comparable to rated securities constituted 12% of the Fund's
total assets.
o MANAGEMENT OF CREDIT RISK. Because 20% of the Fund's assets which are invested
in tax-exempt obligations may be invested in securities which are rated below
the lowest investment grade categories rated by an NRSRO, or in securities which
are unrated, the Fund is dependent on the Manager's judgment, analysis and
experience in evaluating the quality of such obligations. In evaluating the
credit quality of a particular issue, whether rated or unrated, the Manager will
normally take into consideration, among other things, the financial resources of
the issuer (or, as appropriate, of the underlying source of the funds for debt
service), its sensitivity to economic conditions and trends, any operating
history of and the community support for the facility financed by the issue, the
ability of the issuer's management and regulatory matters. The Manager will
attempt to reduce the risks inherent in investments in such obligations through
active portfolio management, diversification, credit analysis and attention to
current developments and trends in the economy and the financial markets.
o DEFAULT. The Fund will also take such action as it considers appropriate in
the event of anticipated financial difficulties, default or bankruptcy of either
the issuer of any such obligation or of the underlying source of funds for debt
service. Such action may include retaining the services of various persons and
firms to evaluate or protect any real estate, facilities or other assets
securing any such obligation or acquired by the Fund as a result of any such
event. The Fund will incur additional expenditures in taking protective action
with respect to portfolio obligations in default and assets securing such
obligations, and, as a result, the Fund's net asset value could be adversely
affected. Any income derived from the Fund's ownership or operation of assets
acquired as a result of such actions would not be tax-exempt.
HOW the FUND is MANAGED
ORGANIZATION AND HISTORY. Rochester Fund Municipals conducted operations as a
closed-end investment company from December 1982 until May 1986, at which time
it commenced operations as an open-end investment company. The Fund is a
non-diversified management investment company with an unlimited number of
authorized shares of beneficial interest.
The Fund is a Massachuestts business trust and is governed by a Board of
Trustees, which is responsible under Massachusetts law for protecting the
interests of shareholders. The Trustees meet periodically to oversee the Fund's
activities, review its performance, and review the actions of the Manager. The
"Trustees and Officers of the Fund" section in the Statement of Additional
Information lists the Trustees and provides more information about them and the
officers of the Fund. Although the Fund will not normally hold annual meetings
of its shareholders, it may hold shareholder meetings from time to time on
important matters, and shareholders have the right to call a meeting to remove a
Trustee or to take other action described in the Fund's Declaration of Trust.
The Board of Trustees has the power, without shareholder approval, to divide
unissued shares of the Fund into two or more classes. The Board has not done so
as of this date. Each share has one vote at shareholder meetings, with
fractional shares voting proportionally. Shares are freely transferable. Please
refer to "How the Fund is Managed" in the Statement of Additional Information on
voting of shares.
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<PAGE>
THE MANAGER AND ITS AFFILIATES. The Fund is managed by OppenheimerFunds, Inc.,
which is responsible for selecting the Fund's investments and handles its
day-to-day business. The Manager carries out its duties, subject to the policies
established by the Board of Trustees, under an Investment Advisory Agreement
which states the Manager's responsibilities. The Agreement sets forth the fees
paid by the Fund to the Manager and describes the expenses that the Fund is
responsible to pay to conduct its business.
The Manager has operated as an investment adviser since 1959. The Manager and
its affiliates currently manages investment companies, including other
Oppenheimer funds, with assets of more than $40 billion as of December 31, 1995,
and with more than 2.8 million shareholder accounts. The Manager is owned by
Oppenheimer Acquisition Corp., a holding company that is owned in part by senior
officers of the Manager and controlled by Massachusetts Mutual Life Insurance
Company.
o PORTFOLIO MANAGER. The Portfolio Manager of the Fund is Ronald H. Fielding. He
has been the person principally responsible for the day-to-day management of the
Fund's portfolio since the Fund's inception. Mr. Fielding is Vice President of
the Fund and has also served as an officer and director of the Fund's previous
investment advisers and their affiliates.
o FEES AND EXPENSES. Under the Investment Advisory Agreement, the Fund pays the
Manager the following annual fees payable monthly which are equal to the
following percentages based on its average daily net assets: 0.54% up to $100
million, 0.52% on $100 million to $250 million, 0.47% on $250 million to $2
billion, 0.46% on $2 billion to $5 billion and 0.45% in excess of $5 billion.
The Fund's management fee for its last fiscal year ended December 31, 1995 was
actually 0.46% of the Fund's average daily net assets. The Fund's current fee
schedule became effective on May 1, 1995. If the current fee schedule had been
in effect during the entire fiscal year ended December 31, 1995, the Fund's
management fee for that fiscal year would have been 0.48% of the Fund's daily
net assets.
The Fund pays expenses related to its daily operations, such as custodian fees,
Trustees' fees, transfer agency fees, legal and auditing costs. Those expenses
are paid out of the Fund's assets and are not paid directly by shareholders.
However, those expenses reduce the net asset value of shares, and therefore are
indirectly borne by shareholders through their investment. More information
about the Investment Advisory Agreement and the other expenses paid by the Fund
is contained in the Statement of Additional Information.
The Board of Trustees of the Fund monitors the composition of, and purchases in,
the Fund's portfolio to insure consistency with the stated investment objective
and policies of the Fund. Among the responsibilities of the Adviser under the
Investment Advisory Agreement is the selection of broker-dealers through whom
transactions in the Fund's portfolio securities will be effected. The primary
aim in allocation by the Adviser of portfolio transactions to brokers is the
attainment of the best execution of all such transactions. If more than one
broker is able to provide the best execution, securities may be purchased from
or sold to brokers who have furnished research to the Adviser. Although such
research may be used by the Adviser in servicing accounts other than the Fund,
the receipt of such research will be taken into account in the selection of
brokers only to the extent that such research is primarily intended to benefit
the Fund. The Fund and the Adviser also may take into account the sale of Fund
shares in selecting broker-dealers to execute transactions. For further
information see "Brokerage Policies of the Fund" in the Statement of Additional
Information.
A change in securities held by the Fund is known as "portfolio turnover." See
"Financial Highlights" for the Fund's portfolio turnover rate for the past ten
fiscal years. Municipal bonds may be purchased or sold without regard to the
length of time they have been held, to attempt to take advantage of short-term
differentials in yields with the objective of seeking income while conserving
capital. While short-term trading increases portfolio turnover, the Fund incurs
little or no brokerage costs with respect to such transactions since most
purchases made by the Fund are principal transactions at net prices.
There is also information about the Fund's brokerage policies and practices in
"Brokerage Policies of the Fund" in the Statement of Additional Information.
That section discusses how brokers and dealers are selected for the Fund's
portfolio transactions. When deciding which brokers to use, the Manager is
permitted to consider whether brokers have sold shares of the Fund or any other
funds for which the Manager serves as investment adviser.
o THE DISTRIBUTOR. The Fund's shares are sold through dealers and brokers that
have a sales agreement with OppenheimerFunds Distributor, Inc., a subsidiary of
the Manager that acts as the Distributor. The Distributor also distributes the
shares of other mutual funds managed by the Manager (the "Oppenheimer funds")
and is sub-distributor for funds managed by a subsidiary of the Manager.
o THE TRANSFER AGENT. The Fund's transfer agent is OppenheimerFunds Services, a
division of the Manager, which acts as the shareholder servicing agent for the
Fund and the other Oppenheimer funds. Shareholders should direct inquiries about
their account to the Transfer Agent at the address and toll-free numbers shown
below in this Prospectus and on the back cover.
PERFORMANCE OF THE FUND
EXPLANATION OF PERFORMANCE TERMINOLOGY. The Fund uses the terms "total return",
"average annual total return" "standardized yield", "dividend yield", "yield"
and "tax-equivalent yield" to illustrate its performance. This performance
information may be useful to
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help you see how well your investment has done and to compare it to other funds
or market indices. It is important to understand that the Fund's total returns
represent past performance and should not be considered to be predictions of
future returns or performance. This performance data is described below, but
more detailed information about how total returns are calculated is contained in
the Statement of Additional Information, which also contains information about
other ways to measure and compare the Fund's performance. The Fund's investment
performance will vary over time, depending on market conditions, the composition
of the portfolio and expenses.
o TOTAL RETURNS. There are different types of total returns used to measure the
Fund's performance. Total return is the change in value of a hypothetical
investment in the Fund over a given period, assuming that all dividends and
capital gains distributions are reinvested in additional shares. The cumulative
total return measures the change in value over the entire period (for example,
ten years). An average annual total return shows the average rate of return for
each year in a period that would produce the cumulative total return over the
entire period. However, average annual total returns do not show the Fund's
actual year-by-year performance.
When total returns are quoted, normally they include the payment of the current
maximum initial sales charge. Total returns may also be quoted "at net asset
value," without including the sales charge, and those returns would be reduced
if sales charges were deducted.
o YIELD. The Fund calculates its yield by dividing the annualized net investment
income per share on the portfolio during a 30-day period by the maximum offering
price on the last day of the period. Tax-equivalent yield is the equivalent
yield that would be earned in absence of taxes. It is calculated by dividing
that portion of the yield that is tax-exempt by a factor equal to one minus the
applicable tax rate. The yield data represents a hypothetical investment return
on the portfolio, and does not measure an investment return based on dividends
actually paid to shareholders. To show that return, a dividend yield may be
calculated. Dividend yield is calculated by dividing the dividends derived from
net investment income during a stated period by the maximum offering price on
the last day of the period. Yields and dividend yields for shares reflect the
deduction of the maximum initial sales charge, but may also be shown based on
the Fund's net asset value per share.
For additional information regarding the calculation of yield, tax-equivalent
yield and total return, see "Performance of the Fund" in the Statement of
Additional Information. Further information about the Fund's performance is set
forth in the Fund's Annual Report to Shareholders, which may be obtained upon
request at no charge.
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ABOUT YOUR ACCOUNT
HOW TO BUY SHARES
If you buy shares, you pay an initial sales charge on investments. The amount of
that sales charge will vary depending on the amount you invested. Sales charge
rates are described in "Buying Shares" below.
How Much Must You Invest? You can open a Fund account with a minimum initial
investment of $1,000 and make additional investments at any time with as little
as $25. There are reduced minimum investments under special investment plans:
With Asset Builder Plans, Automatic Exchange Plans, 403(b)(7) custodial plans
and military allotment plans, you can make initial and subsequent investments
for as little as $25; and subsequent purchases of at least $25 can be made by
telephone through AccountLink.
There is no minimum investment requirement if you are buying shares by
reinvesting dividends from the Fund or other Oppenheimer funds (a list of them
appears in the Statement of Additional Information, or you can ask your dealer
or call the Transfer Agent), or by reinvesting distributions from unit
investment trusts that have made arrangements with the Distributor.
o HOW ARE SHARES PURCHASED? You can buy shares several ways -- through any
dealer, broker or financial institution that has a sales agreement with the
Distributor, or directly through the Distributor, or automatically from your
bank account through an Asset Builder Plan under the OppenheimerFunds
AccountLink service.
o BUYING SHARES THROUGH YOUR DEALER. Your dealer will place your order with the
Distributor on your behalf.
o BUYING SHARES THROUGH THE DISTRIBUTOR. Complete an OppenheimerFunds New
Account Application and return it with a check payable to "OppenheimerFunds
Distributor, Inc." Mail it to P.O. Box 5270, Denver, Colorado 80217. If you do
not list a dealer on the application, the Distributor will act as your agent in
buying the shares. However, we recommend that you discuss your investment first
with a financial advisor to be sure it is appropriate for you.
o BUYING SHARES THROUGH OPPENHEIMERFUNDS ACCOUNTLINK. You can use AccountLink to
link your Fund account with an account at a U.S. bank or other financial
institution that is an Automated Clearing House (ACH) member. You can then
transmit funds electronically to purchase shares, to have the Transfer Agent
send redemption proceeds, or to transmit dividends and distributions.
Shares are purchased for your account on AccountLink on the regular business day
the Distributor is instructed by you to initiate the ACH transfer to buy shares.
You can provide those instructions automatically, under an Asset Builder Plan,
described below, or by telephone instructions using OppenheimerFunds PhoneLink,
also described below. You should request AccountLink privileges on
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the application or dealer settlement instructions used to establish your
account. Please refer to "AccountLink" below for more details.
o ASSET BUILDER PLANS. You may purchase shares of the Fund (and up to four other
Oppenheimer funds) automatically each month from your account at a bank or other
financial institution under an Asset Builder Plan with AccountLink. Details are
on the Application and in the Statement of Additional Information.
o AT WHAT PRICE ARE SHARES SOLD? Shares are sold at the public offering price
based on the net asset value (and any initial sales charge that applies) that is
next determined after the Distributor receives the purchase order in Denver. In
most cases, to enable you to receive that day's offering price, the Distributor
must receive your order by the time of day the New York Stock Exchange closes,
which is normally 4:00 P.M., New York time, but may be earlier on some days (all
references to time in this Prospectus mean "New York time"). The net asset value
of shares is determined as of that time on each day The New York Stock Exchange
is open (which is a "regular business day").
If you buy shares through a dealer, the dealer must receive your order by the
close of the New York Stock Exchange on a regular business day and transmit it
to the Distributor so that it is received before the Distributor's close of
business that day, which is normally 5:00 P.M. The Distributor may reject any
purchase order for the Fund's shares, in its sole discretion.
BUYING SHARES. Shares are sold at their offering price, which is normally net
asset value plus an initial sales charge. In some cases, described below,
purchases are not subject to an initial sales charge, and the offering price
will be the net asset value. In some cases, reduced sales charges may be
available, as described below. Out of the amount you invest, the Fund receives
the net asset value to invest for your account. The sales charge varies
depending on the amount of your purchase. A portion of the sales charge may be
retained by the Distributor and allocated to your dealer as a commission. The
current sales charge rates and commissions paid to dealers and brokers are as
follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Front End Sales Charge Commission as a
as a Percentage of: Percentage of:
Amount Offering Price Amount Invested Offering Price
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $100,000 4.00% 4.17% 3.50%
$100,000 or more but
less than $250,000 3.35% 3.47% 3.00%
$250,000 or more but
less than $500,000 2.75% 2.83% 2.50%
$500,000 or more but
less than $1,000,000 2.25% 2.30% 2.00%
$1,000,000 or more but
less than $4,000,000 1.25% 1.27% 1.00%
Over $4,000,000 0.75% 0.76% 0.60%
- -----------------------------------------------------------------------------------------
</TABLE>
The Distributor reserves the right to reallow the entire sales charge to
dealers. If that occurs, the dealer may be considered an "underwriter" under
Federal securities laws.
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<PAGE>
o SPECIAL ARRANGEMENTS WITH DEALERS. The Distributor may advance up to 13
months' commissions to dealers that have established special arrangements with
the Distributor for Asset Builder Plans for their clients. Dealers whose sales
of Class A shares of Oppenheimer funds (other than money market funds) under
OppenheimerFunds-sponsored 403(b)(7) custodial plans exceed $5 million per year
(calculated per quarter) will receive monthly one-half of the Distributor's
retained commissions on those sales, and if those sales exceed $10 million per
year, those dealers will receive the Distributor's entire retained commission on
those sales.
REDUCED SALES CHARGES FOR PURCHASES. You may be eligible to buy shares at
reduced sales charge rates in one or more of the following ways:
o RIGHT OF ACCUMULATION. To qualify for the lower sales charge rates that apply
to larger purchases of shares, you and your spouse can add together shares you
purchase for your individual accounts, or jointly, or for trust or custodial
accounts on behalf of your children who are minors. A fiduciary can count all
shares purchased for a trust, estate or other fiduciary account (including one
or more employee benefit plans of the same employer) that has multiple accounts.
Additionally, you can add together current purchases of shares of the Fund and
other Oppenheimer funds to reduce the sales charge rate that applies to current
purchases of shares. You can also count Class A and Class B Shares of
Oppenheimer funds you previously purchased subject to an initial or contingent
deferred sales charge to reduce the sales charge rate for current purchases of
shares, provided that you still hold your investment in one of the Oppenheimer
funds. The value of those shares will be based on the greater of the amount you
paid for the shares or their current value (at offering price). The Oppenheimer
funds are listed in "Reduced Sales Charges" in the Statement of Additional
Information, or a list can be obtained from the Distributor. The reduced sales
charge will apply only to current purchases and must be requested when you buy
your shares.
o LETTER OF INTENT. Under a Letter of Intent, you may purchase shares of the
Fund or Class A Shares and Class B Shares of other Oppenheimer funds during a
13-month period, you can reduce the sales charge rate that applies to your
purchases of Fund shares. The total amount of your intended purchases will
determine the reduced sales charge rate for the shares purchased during that
period. This can include purchases made up to 90 days before the date of the
Letter. More information is contained in the Application and in "Reduced Sales
Charges" in the Statement of Additional Information.
o WAIVERS OF SALES CHARGES. The sales charges are not imposed in the
circumstances described below. There is an explanation of this policy in
"Reduced Sales Charges" in the Statement of Additional Information.
Waivers of Sales Charges for Certain Purchasers. Shares purchased by the
following investors are not subject to any sales charges:
[ ] the Manager or its affiliates;
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[ ] present or former officers, directors, trustees and employees (and their
"immediate families" as defined in "Reduced Sales Charges" in the Statement of
Additional Information) of the Fund, the Manager and its affiliates, and
retirement plans established by them for their employees;
[ ] registered management investment companies, or separate accounts of
insurance companies having an agreement with the Manager or the Distributor for
that purpose;
[ ] dealers or brokers that have a sales agreement with the Distributor, if they
purchase shares for their own accounts or for retirement plans for their
employees;
[ ] employees and registered representatives (and their spouses) of dealers or
brokers described above or financial institutions that have entered into sales
arrangements with such dealers or brokers (and are identified to the
Distributor) or with the Distributor; the purchaser must certify to the
Distributor at the time of purchase that the purchase is for the purchaser's own
account (or for the benefit of such employee's spouse or minor children);
[ ] dealers, brokers or registered investment advisers that have entered into an
agreement with the Distributor or the Fund providing specifically for the use of
shares of the Fund in particular investment products made available to their
clients (those clients may be charged a transaction fee by their dealer, broker
or adviser on the purchase or sale of Fund shares);
[ ] dealers, brokers or registered investment advisers that have entered into an
agreement with the Distributor to sell shares to defined contribution employee
retirement plans for which the dealer, broker or investment adviser provides
administrative services, and
[ ] trust companies and bank trust departments for funds held in a fiduciary,
agency, custodial or similar capacity.
Waivers of Initial Sales Charges in Certain Transactions. Shares issued or
purchased in the following transactions are not subject to sales charges:
o shares issued in plans of reorganization, such as mergers, asset
acquisitions and exchange offers, to which the Fund is a party,
o shares purchased by the reinvestment of dividends or other distributions
reinvested from the Fund or other Oppenheimer funds (other than Oppenheimer
Cash Reserves) or unit investment trusts for which reinvestment
arrangements have been made with the Distributor, or
o shares purchased and paid for with the proceeds of shares redeemed in the
prior 12 months from a mutual fund (other than a fund managed by the
Manager or any of its subsidiaries) on which an initial sales charge or
contingent deferred sales charge was paid (this waiver also applies to
shares purchased by exchange of shares of Oppenheimer Money Market Fund,
Inc. that were purchased and paid for in this manner); this waiver must be
requested when the purchase order is placed for your shares of the Fund,
and the Distributor may require evidence of your qualification for this
waiver.
There is a further discussion of this policy in "Reduced Sales Charges" in the
Statement of Additional Information.
o SERVICE PLAN. The Fund has adopted a Service Plan which permits the Fund to
reimburse the Distributor for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold shares. The
Distributor uses all of those fees to compensate dealers, brokers, banks and
other financial institutions quarterly for providing personal service and
maintenance of accounts of their customers that hold shares and to reimburse
itself for its other expenditures under the Plan. Services to be
provided include, among others, answering customer inquiries about the Fund,
assisting in establishing and maintaining accounts in the Fund, making the
Fund's investment plans available and providing other services at the request of
the Fund or the Distributor. Although the terms of the Service Plan permit
aggregate payments by the Fund thereunder of up to 0.25% of the Fund's average
daily net assets, the Board of Trustees has approved aggregate payments of up to
only 0.15% of the Fund's average daily net assets. The payments under the Plan
increase the annual expenses of shares. For more details, please refer to "The
Fund's Service Plan" in the Statement of Additional Information.
SPECIAL INVESTOR SERVICES
ACCOUNTLINK. OppenheimerFunds AccountLink links your Fund account to your
account at your bank or other financial institution to enable you to send money
electronically between those accounts to perform a number of types of account
transactions. These include purchases of shares by telephone (either through a
service representative or by PhoneLink, described below), automatic investments
under Asset Builder Plans, and sending dividends and distributions or Automatic
Withdrawal Plan payments
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directly to your bank account. Please refer to the Application for details or
call the Transfer Agent for more information.
AccountLink privileges should be requested on the Application you use to buy
shares, or on your dealer's settlement instructions if you buy your shares
through your dealer. After your account is established, you can request
AccountLink privileges by sending signature-guaranteed instructions to the
Transfer Agent. AccountLink privileges will apply to each shareholder listed in
the registration on your account as well as to your dealer representative of
record unless and until the Transfer Agent receives written instructions
terminating or changing those privileges. After you establish AccountLink for
your account, any change of bank account information must be made by
signature-guaranteed instructions to the Transfer Agent signed by all
shareholders who own the account.
o USING ACCOUNTLINK TO BUY SHARES. Purchases may be made by telephone only after
your account has been established. To purchase shares in amounts up to $250,000
through a telephone representative, call the Distributor at 1-800-852-8457. The
purchase payment will be debited from your bank account.
o PHONELINK. PhoneLink is the Oppenheimer funds automated telephone system that
enables shareholders to perform a number of account transactions automatically
using a touch-tone phone. PhoneLink may be used on already-established Fund
accounts after you obtain a Personal Identification Number (PIN), by calling the
special PhoneLink number: 1-800-533-3310.
[ ] Purchasing Shares. You may purchase shares in amounts up to $100,000 by
phone, by calling 1-800-533-3310. You must have established AccountLink
privileges to link your bank account with the Fund, to pay for these purchases.
[ ] Exchanging Shares. With the Oppenheimer funds exchange privilege, described
below, you can exchange shares automatically by phone from your Fund account to
another Oppenheimer funds account you have already established by calling the
special PhoneLink number. Please refer to "How to Exchange Shares," below, for
details.
[ ] Selling Shares. You can redeem shares by telephone automatically by calling
the PhoneLink number and the Fund will send the proceeds directly to your
AccountLink bank account. Please refer to "How to Sell Shares," below, for
details.
AUTOMATIC WITHDRAWAL AND EXCHANGE PLANS. The Fund has several plans that enable
you to sell shares automatically or exchange them to another Oppenheimer funds
account on a regular basis:
o AUTOMATIC WITHDRAWAL PLANS. If your Fund account is $5,000 or more, you can
establish an Automatic Withdrawal Plan to receive payments of at least $50 on a
monthly, quarterly, semi-annual or annual basis. The checks may be sent to you
or sent automatically to your bank account on AccountLink. You may even set up
certain types of withdrawals of up to $1,500 per month by telephone. You should
consult the Application and Statement of Additional Information for more
details.
o AUTOMATIC EXCHANGE PLANS. You can authorize the Transfer Agent to exchange an
amount you establish in advance automatically for shares of up to five other
Oppenheimer funds on a monthly, quarterly, semi-annual or annual basis under an
Automatic Exchange Plan. The minimum purchase for each Oppenheimer funds account
is $25. These exchanges are subject to the terms of the Exchange Privilege,
described below.
REINVESTMENT PRIVILEGE. If you redeem some or all of your shares of the Fund,
you have up to 6 months to reinvest all or part of the redemption proceeds in
shares of the Fund or in Class A Shares of other Oppenheimer funds without
paying a sales charge. This privilege applies to shares that you purchased
subject to an initial
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sales charge. You must be sure to ask the Distributor for this privilege when
you send your payment. Please consult the Statement of Additional Information
for more details.
HOW TO SELL SHARES
You can arrange to take money out of your account by selling (redeeming) some or
all of your shares on any regular business day. Your shares will be sold at the
next net asset value calculated after your order is received and accepted by the
Transfer Agent. The Fund offers you a number of ways to sell your shares: in
writing or by telephone. You can also set up Automatic Withdrawal Plans to
redeem shares on a regular basis, as described above. If you have questions
about any of these procedures, and especially if you are redeeming shares in a
special situation, such as due to the death of the owner, or from a retirement
plan, please call the Transfer Agent first, at 1-800-525-7048, for assistance.
o CERTAIN REQUESTS REQUIRE A SIGNATURE GUARANTEE. To protect you and the Fund
from fraud, certain redemption requests must be in writing and must include a
signature guarantee in the following situations (there may be other situations
also requiring a signature guarantee):
[ ] You wish to redeem more than $50,000 worth of shares and receive a check
[ ] The redemption check is not payable to all shareholders listed on the
account statement
[ ] The redemption check is not sent to the address of record on your account
statement
[ ] Shares are being transferred to a Fund account with a different owner or
name, or
[ ] Shares are redeemed by someone other than the owners (such as an executor)
o WHERE CAN I HAVE MY SIGNATURE GUARANTEED? The Transfer Agent will accept a
guarantee of your signature by a number of financial institutions, including: a
U.S. bank, trust company, credit union or savings association, or by a foreign
bank that has a U.S. correspondent bank, or by a U.S. registered dealer or
broker in securities, municipal securities or government securities, or by a
U.S. national securities exchange, a registered securities association or a
clearing agency. If you are signing on behalf of a corporation, partnership or
other business, or as a fiduciary, you must also include your title in the
signature.
SELLING SHARES BY MAIL. Write a "letter of instructions" that includes:
[ ] Your name
[ ] The Fund's name
[ ] Your Fund account number (from your account statement)
[ ] The dollar amount or number of shares to be redeemed
[ ] Any special payment instructions
[ ] Any share certificates for the shares you are selling
[ ] The signatures of all registered owners exactly as the account is
registered, and
[ ] Any special requirements or documents requested by the Transfer Agent to
assure proper authorization of the person asking to sell shares.
USE THE FOLLOWING ADDRESS FOR REQUESTS BY MAIL:
OppenheimerFunds Services
P.O. Box 5270
Denver, Colorado 80217
SEND COURIER OR EXPRESS MAIL REQUESTS TO:
OppenheimerFunds Services
10200 E. Girard Avenue, Building D
Denver, Colorado 80231
SELLING SHARES BY TELEPHONE. You and your dealer representative of record may
also sell your shares by telephone. To receive the redemption price on a regular
business day, your call must be received by
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the Transfer Agent by the close of The New York Stock Exchange that day, which
is normally 4:00 P.M., but may be earlier on some days. You may not redeem
shares held under a share certificate by telephone.
[ ] To redeem shares through a service representative, call 1-800-852-8457
[ ] To redeem shares automatically on PhoneLink, call 1-800-533-3310
Whichever method you use, you may have a check sent to the address on the
account statement, or, if you have linked your Fund account to your bank account
on AccountLink, you may have the proceeds wired to that bank account.
o TELEPHONE REDEMPTIONS PAID BY CHECK. Up to $50,000 may be redeemed by
telephone in any 7-day period. The check must be payable to all owners of record
of the shares and must be sent to the address on the account. This service is
not available within 30 days of changing the address on an account.
o TELEPHONE REDEMPTIONS THROUGH ACCOUNTLINK. There are no dollar limits on
telephone redemption proceeds sent to a bank account designated when you
establish AccountLink. Normally the ACH wire to your bank is initiated on the
business day after the redemption. You do not receive dividends on the proceeds
of the shares you redeemed while they are waiting to be wired.
SELLING SHARES THROUGH YOUR DEALER. The Distributor has made arrangements to
repurchase Fund shares from dealers and brokers on behalf of their customers.
Brokers or dealers may charge for that service. Plase call your dealer for
additional information. Please refer to "Special Arrangements for Repurchase of
Shares from Dealers and Brokers" in the Statement of Additional Information for
more details.
HOW TO EXCHANGE SHARES
Shares of the Fund may be exchanged for shares of certain Oppenheimer funds at
net asset value per share at the time of exchange, without sales charge.
[ ] Shares of the fund selected for exchange must be available for sale in your
state of residence.
[ ] The prospectuses of this Fund and the fund whose shares you want to buy must
offer the exchange privilege.
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[ ] You must hold the shares you buy when you establish your account for at
least 7 days before you can exchange them; after the account is open 7 days, you
can exchange shares every regular business day.
[ ] You must meet the minimum purchase requirements for the fund you purchase by
exchange.
[ ] Before exchanging into a fund, you should obtain and read its prospectus.
Shares of a particular class may be exchanged only for shares of the same class
in the other Oppenheimer funds. Where, as in the case of this Fund, a fund has
only one class of shares and it does not have a class designation, that class of
shares will be considered "Class A Shares" for exchange purposes. For example,
you can exchange shares of this Fund only for Class A Shares of another fund.
Please refer to "How to Exchange Shares" in the Statement of Additional
Information for more details. Upon the exchange of shares of the Fund for Class
A Shares of another Oppenheimer fund, those shares acquired upon exchange may
not subsequently be exchanged for shares of the Fund unless the original
exchange involved an exchange of shares of the Fund for Class A Shares of any
one of the following funds: Oppenheimer Money Market Fund, Inc., Oppenheimer
Cash Reserves or Limited Term New York Municipal Fund.
Exchanges may be requested in writing or by telephone:
o WRITTEN EXCHANGE REQUESTS. Submit an OppenheimerFunds Exchange Request form,
signed by all owners of the account. Send it to the Transfer Agent at the
addresses listed in "How to Sell Shares."
o TELEPHONE EXCHANGE REQUESTS. Telephone exchange requests may be made either by
calling a service representative at 1-800-852-8457 or by using PhoneLink for
automated exchanges, by calling 1-800-533-3310. Telephone exchanges may be made
only between accounts that are registered with the same name(s) and address.
Shares held under certificates may not be exchanged by telephone.
You can find a list of Oppenheimer funds currently available for exchanges in
the Statement of Additional Information or by calling a service representative
at 1-800-525-7048. Exchanges of shares involve a redemption of the shares of the
fund you own and a purchase of shares of the other fund.
There are certain exchange policies you should be aware of:
[ ] Shares are normally redeemed from one fund and purchased from the other fund
in the exchange transaction on the same regular business day on which the
Transfer Agent receives an exchange request that is in proper form by the close
of The New York Stock Exchange that day, which is normally 4:00 P.M. but may be
earlier on some days. However, either fund may delay the purchase of shares of
the fund you are exchanging into up to 7 days if it determines it would be
disadvantaged by a same-day transfer of the proceeds to buy shares. For example,
the receipt of multiple exchange requests from a dealer in a "market-timing"
strategy might require the disposition of securities at a time or price
disadvantageous to the Fund.
[ ] Because excessive trading can hurt fund performance and harm shareholders,
the Fund reserves the right to refuse any exchange request that will
disadvantage it, or to refuse multiple exchange requests submitted by a
shareholder or dealer.
[ ] The Fund may amend, suspend or terminate the exchange privilege at any time.
Although the Fund will attempt to provide you notice whenever it is reasonably
able to do so, it may impose these changes at any time.
[ ] If the Transfer Agent cannot exchange all the shares you request because of
a restriction cited above, only the shares eligible for exchange will be
exchanged.
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The Distributor has entered into agreements with certain dealers and investment
advisers permitting them to exchange their clients' shares by telephone. These
privileges are limited under those agreements and the Distributor has the right
to reject or suspend those privileges. As a result, those exchanges may be
subject to notice requirements, delays and other limitations that do not apply
to shareholders who exchange their shares directly by calling or writing to the
Transfer Agent.
SHAREHOLDER ACCOUNT RULES AND POLICIES
o NET ASSET VALUE PER SHARE is determined for the shares as of the close of The
New York Stock Exchange, which is normally 4:00 P.M. but may be earlier on some
days, on each day the Exchange is open by dividing the value of the Fund's net
assets by the number of shares that are outstanding. The Fund's Board of
Trustees has established procedures to value the Fund's securities to determine
net asset value. In general, securities values are based on market value. There
are special procedures for valuing illiquid and restricted securities and
obligations for which market values cannot be readily obtained. These procedures
are described more completely in the Statement of Additional Information.
o THE OFFERING OF SHARES may be suspended during any period in which the
determination of net asset value is suspended, and the offering may be suspended
by the Board of Trustees at any time the Board believes it is in the Fund's best
interest to do so.
o TELEPHONE TRANSACTION PRIVILEGES for purchases, redemptions or exchanges may
be modified, suspended or terminated by the Fund at any time. If an account has
more than one owner, the Fund and the Transfer Agent may rely on the
instructions of any one owner. Telephone privileges apply to each owner of the
account and the dealer representative of record for the account unless and until
the Transfer Agent receives cancellation instructions from an owner of the
account.
o THE TRANSFER AGENT WILL RECORD ANY TELEPHONE CALLS to verify data concerning
transactions and has adopted other procedures to confirm that telephone
instructions are genuine, by requiring callers to provide tax identification
numbers and other account data or by using PINs, and by confirming such
transactions in writing. If the Transfer Agent does not use reasonable
procedures it may be liable for losses due to unauthorized transactions, but
otherwise neither the Transfer Agent nor the Fund will be liable for losses or
expenses arising out of telephone instructions reasonably believed to be
genuine. If you are unable to reach the Transfer Agent during periods of unusual
market activity, you may not be able to complete a telephone transaction and
should consider placing your order by mail.
o REDEMPTION OR TRANSFER REQUESTS WILL NOT BE HONORED UNTIL THE TRANSFER AGENT
RECEIVES ALL REQUIRED DOCUMENTS IN PROPER FORM. From time to time, the Transfer
Agent in its discretion may waive certain of the requirements for redemptions
stated in this Prospectus.
o DEALERS THAT CAN PERFORM ACCOUNT TRANSACTIONS FOR THEIR CLIENTS BY
PARTICIPATING IN NETWORKING through the National Securities Clearing Corporation
are responsible for obtaining their clients' permission to perform those
transactions and are responsible to their clients who are shareholders of the
Fund if the dealer performs any transaction erroneously.
o THE REDEMPTION PRICE FOR SHARES WILL VARY from day to day because the value of
the securities in the Fund's portfolio fluctuates. The redemption price is the
net asset value per share. Therefore, the redemption value of your shares may be
more or less than their original cost.
o PAYMENT FOR REDEEMED SHARES is made ordinarily in cash and forwarded by check
or through AccountLink (as elected by the shareholder under the redemption
procedures described above) within 7 days after the Transfer Agent receives
redemption instructions in proper form, except under unusual
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circumstances determined by the Securities and Exchange Commission delaying or
suspending such payments. For accounts registered in the name of a
broker-dealer, payment will be forwarded within 3 business days. The Transfer
Agent may delay forwarding a check or processing a payment via AccountLink for
recently purchased shares, but only until the purchase payment has cleared. That
delay may be as much as 10 days from the date the shares were purchased. That
delay may be avoided if you purchase shares by certified check or arrange to
have your bank provide telephone or written assurance to the Transfer Agent that
your purchase payment has cleared.
o INVOLUNTARY REDEMPTIONS OF SMALL ACCOUNTS may be made by the Fund if the
account value has fallen below $200 for reasons other than the fact that the
market value of shares has dropped, and in some cases involuntary redemptions
may be made to repay the Distributor for losses from the cancellation of share
purchase orders.
o "BACKUP WITHHOLDING" of Federal income tax may be applied at the rate of 31%
from dividends, distributions and redemption proceeds (including exchanges) if
you fail to furnish the Fund a certified Social Security or Employer
Identification Number when you sign your application, or if you violate Internal
Revenue Service regulations on tax reporting of income.
o THE FUND DOES NOT CHARGE A REDEMPTION FEE, but if your dealer or broker
handles your redemption, they may charge a fee. That fee can be avoided by
redeeming your Fund shares directly through the Transfer Agent.
o TO AVOID SENDING DUPLICATE COPIES OF MATERIALS TO HOUSEHOLDS, the Fund will
mail only one copy of each annual and semi-annual report to shareholders having
the same last name and address on the Fund's records. However, each shareholder
may call the Transfer Agent at 1-800-525-7048 to ask that copies of those
materials be sent personally to that shareholder.
DIVIDENDS, CAPITAL GAINS AND TAXES
There are two types of distributions which the Fund may make to its
shareholders, income dividends and capital gain distributions.
o INCOME DIVIDENDS. The Fund receives income in the form of interest paid by its
investments. This income, less the expenses incurred in the Fund's operations,
is referred to as net investment income. Income dividends are declared and
recorded each day based on estimated net investment income. Such dividends are
paid monthly. Investors earn such dividends beginning on the day payment for
shares is received to the day prior to the settlement date of redemption. For
federal tax purposes, all distributions declared in the fourth quarter of any
calendar year are deemed paid in that calendar year even if they are distributed
in January of the following year. Any net gain the Fund may realize from
transactions in securities held less than the period required for long term
capital gain recognition (taking into account any carryover of capital losses
from previous years), while technically a distribution from capital gains, is
taxed as an income dividend under the Code.
o CAPITAL GAIN DISTRIBUTIONS. If, during any fiscal year, the Fund realizes a
net gain on transactions in securities held more than the period required for
long-term capital gain recognition, it has a net long term capital gain. After
deduction of the amount of any net short-term loss, the balance may be used to
offset any carryover of capital losses from previous years, or, if there is no
loss carryover, will be
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paid out to shareholders as a capital gain distribution. Capital gain
distributions, if any, will be paid to shareholders of record prior to the end
of each calendar year.
Because the value of Fund shares is based directly on the amount of net assets,
rather than on the principle of supply and demand, any distribution of income or
capital gains will result in a decrease in the value of Fund shares equal to the
amount of the distribution.
All dividends and capital gain distributions are paid in additional full and
fractional shares at net asset value for each shareholder's account unless
otherwise requested on the Account Application or by notifying the Fund in
writing or by telephone. Notice will be effective for the current dividend or
distribution only if it is received by the Fund at least five business days
before the record date. Notice received thereafter will be effective commencing
with the next dividend or distribution. Income dividends and capital gain
distributions will be credited to a shareholder's account in additional shares
valued at the closing net asset value (without a sales load).
In certain circumstances, dividends received from the Fund may cause a portion
of Social Security benefits to be subject to federal income tax. See the
Statement of Additional Information.
DISTRIBUTION OPTIONS. When you open your account, specify on your application
how you want to receive your distributions. For OppenheimerFunds retirement
accounts, all distributions are reinvested. For other accounts, you have four
options:
o REINVEST ALL DISTRIBUTIONS IN THE FUND. You can elect to reinvest all
dividends and long-term capital gains distributions in additional shares of the
Fund.
o REINVEST LONG TERM CAPITAL GAINS ONLY. You can elect to reinvest long-term
capital gains in the Fund while receiving dividends by check or sent to your
bank account on AccountLink.
o RECEIVE ALL DISTRIBUTIONS IN CASH. You can elect to receive a check for all
dividends and long-term capital gains distributions or have them sent to your
bank on AccountLink.
o REINVEST YOUR DISTRIBUTIONS IN ANOTHER OPPENHEIMER FUND ACCOUNT. You can
reinvest all distributions in another Oppenheimer fund account you have
established.
TAXES
o TAXATION OF THE FUND
During the taxable year ended December 31, 1995, the Fund qualified for
treatment as a regulated investment company under Subchapter M of the Code. The
Fund generally intends to continue to so qualify for future taxable years. The
Fund intends to avoid incurring liability for federal income tax and a 4% excise
tax on its investment company taxable income (consisting generally of taxable
net
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investment income and net short-term capital gains) and net capital gains by
distributing all of that income and gain and by meeting other applicable
requirements of the Code.
o TAXATION OF SHAREHOLDERS
By meeting certain requirements of the Code, including the requirement that at
the close of each quarter of its taxable year at least 50% of the value of its
total assets consists of obligations the interest on which is excludable from
gross income under section 103(a) of the Code, the Fund intends to continue to
qualify to pay "exempt" interest dividends to its shareholders. Exempt interest
dividends designated as such by the Fund may be excluded from a shareholder's
gross income for federal income tax purposes. To the extent that dividends are
derived from earnings on interest attributable to obligations of New York and
its political subdivisions, Puerto Rico, or other U.S. possessions, they will
also be excluded from a New York shareholder's gross income for New York State
and New York City personal income tax purposes.
Although exempt-interest dividends will not be subject to federal income tax for
Fund shareholders, a portion of such dividends which is derived from interest on
certain "private activity" bonds, will give rise to a tax preference item which
could subject a shareholder to, or increase a shareholder's liability under, the
Federal alternative minimum tax, depending on the shareholder's individual tax
situation.
To the extent dividends are derived from options trading, temporary taxable
investments, an excess of net short-term capital gain over net long-term capital
loss or accretion of market discount those dividends are taxable as ordinary
income for federal income tax purposes whether a shareholder has elected to
receive dividends in cash or additional Fund shares. Such dividends will not
qualify for the dividends-received deduction for corporations. Interest on
indebtedness incurred or continued to purchase or carry shares of the Fund is
not deductible to the extent the Fund's distributions consist of exempt-interest
dividends. Distributions, if any, of net capital gain, when designated as such,
will be treated as long-term capital gains by each shareholder regardless of the
length of time the shareholder has owned Fund shares and whether the shareholder
received them in cash or additional Fund shares.
Information as to the tax status of Fund distributions will be provided annually
including information as to which portions are taxable or tax exempt. In
addition, information will be provided annually identifying the portion of
exempt-interest dividends that constitutes a tax preference item for
shareholders in determining their liability for alternative minimum tax.
Shareholders who have not been in the Fund for a full fiscal year may get
distributions of income and/or capital gains which are not equivalent to the
actual amount applicable to the period for which they have held shares.
For individuals and certain other noncorporate shareholders, including those who
fail to certify their taxpayer identification number, taxable dividends, capital
gain distributions and proceeds of redemptions will be subject to 31%
withholding. Withholding at that rate from taxable dividends and capital gain
distributions also is required for such shareholders who otherwise are subject
to backup withholding. If the withholding requirements are applicable to a
shareholder, any such dividend, distribution or redemption proceeds would be
reduced by the amount required to be withheld. Backup withholding from
redemption orders requested for shareholders by broker-dealers is the
responsibility of those broker-dealers.
Up to 85% of a social security recipient's benefits may be included in federal
gross income for benefit recipients whose adjusted gross income (including
income from tax-exempt sources such as the Fund) plus 50% of their benefits
exceeds certain base amounts. Income from the Fund is still tax-exempt to the
extent described above; it is only included in the calculation of whether or not
a recipient's Social Security benefits are to be included in Federal gross
income.
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A redemption of Fund shares may result in taxable gain or loss to the redeeming
shareholder, depending on whether the redemption proceeds are more or less than
the shareholder's adjusted basis for the redeemed shares (which normally
includes any sales load paid). An exchange of Fund shares for Class A Shares of
another Oppenheimer Fund generally will have similar tax consequences.
The foregoing is only a summary of some of the important federal tax
considerations generally affecting the Fund and its shareholders--see the
Statement of Additonal Informaniton for a further discussion--and is not
intended to be a substitute for careful tax planning. There may be other
federal, state or local tax considerations applicable to a particular investor;
for example, the Fund's distributions may be wholly or partly taxable under
state and/or local laws other than New York State and New York City. PROSPECTIVE
INVESTORS THEREFORE ARE URGED TO CONSULT THEIR OWN TAX ADVISORS.
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ROCHESTER FUND MUNICIPALS
350 Linden Oaks
Rochester, New York 14625-2807
INVESTMENT ADVISOR
OppenheimerFunds, Inc.
Two World Trade Center
New York, New York 10048-0203
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
Two World Trade Center
New York, New York 10048-0203
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270
Denver, Colorado 80217
1-800-525-7048
INDEPENDENT AUDITORS
Price Waterhouse LLP
1900 Chase Square
Rochester, New York 14604-1984
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, D.C. 200036-5891
NO DEALER, SALESPERSON OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS OR THE STATEMENT OF ADDITIONAL INFORMATION, AND IF GIVEN OR MADE,
SUCH INFORMATION AND REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE FUND, OPPENHEIMERFUNDS, INC., OPPENHEIMERFUNDS DISTRIBUTOR OR
ANY AFFILIATE THEREOF. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES OFFERED HEREBY IN ANY
STATE TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER IN SUCH STATE.
[Iventory Code Number]
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<PAGE>
LOGO OppenheimerFunds
PRO365.001.0196 Item #ROC512452
Logo Oppenheimer Funds.
<PAGE>
ROCHESTER FUND MUNICIPALS
350 Linden Oaks, Rochester, New York 14625
1-800-525-7048
STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 11, 1996
This Statement of Additional Information of Rochester Fund Municipals (the
"Fund") is not a Prospectus. This document contains additional information about
the Fund and supplements information in the Prospectus dated March 11, 1996. It
should be read together with the Prospectus, which may be obtained by writing to
the Fund's transfer agent, OppenheimerFunds Services (the "Transfer Agent"), at
P.O. Box 5270, Denver, Colorado 80217 or by calling the Transfer Agent at the
toll-free number shown above.
TABLE OF CONTENTS
PAGE
ABOUT THE FUND
Investment Objective and Policies ..................................... 2
Investment Policies and Strategies ............................... 2
Other Investment Techniques and Strategies ....................... 6
Other Investment Restrictions .................................... 8
Investment Considerations/Risk Factors ........................... 10
How the Fund is Managed ............................................... 21
Organization and History ......................................... 21
Trustees and Officers of the Fund ................................ 22
The Manager and Its Affiliates ................................... 26
Brokerage Policies of the Fund ........................................ 28
Performance of the Fund ............................................... 29
The Fund's Service Plan ............................................... 32
ABOUT YOUR ACCOUNT
How to Buy Shares ..................................................... 33
How to Sell Shares .................................................... 39
How to Exchange Shares ................................................ 42
Dividends, Capital Gains and Taxes .................................... 43
Additional Information About the Fund ................................. 46
FINANCIAL INFORMATION ABOUT THE FUND
Financial Statements .................................................. 48
Independent Auditors' Report .......................................... 66
Appendix A: Description of Municipal Securities Ratings .............. A-1
<PAGE>
ABOUT THE FUND
INVESTMENT OBJECTIVE AND POLICIES
INVESTMENT POLICIES AND STRATEGIES. The investment objective of the Fund is to
provide shareholders with as high a level of income exempt from federal income
tax and New York State and New York City personal income taxes as is consistent
with its investment policies and prudent investment management while seeking
preservation of shareholders' capital. The investment objective of the Fund
cannot be changed without shareholder approval. The Fund will seek to achieve
its objective by investing primarily in New York State municipal and public
authority debt obligations exempt from such taxes. In addition, the Fund may
also invest its assets in obligations of municipal issuers located in U.S.
territories. Investments will be made without regard to maturity. The lack of
maturity restrictions, however, may result in greater fluctuation of bond prices
in the Fund's portfolio and greater fluctuation in net asset value because the
prices of long term bonds are more affected by changes in interest rates than
prices of short term bonds. There can be no assurance that the investment
objective of the Fund will be realized.
The Fund is classified as non-diversified within the meaning of the
Investment Company Act of 1940, as amended, (the "Investment Company Act"),
which means that the Fund is not limited by the Investment Company Act in the
proportion of its assets that it may invest in obligations of a single issuer.
The Fund intends to continue to qualify as a "regulated investment company,"
however, under the Internal Revenue Code of 1986, as amended (the "Code"). See
Dividends, Capital Gains and Taxes. In addition to satisfying other requirements
to so qualify, the Fund will limit its investments so that, at the close of each
quarter of its taxable year, (i) not more than 25% of the market value of its
total assets will be invested in the securities of a single issuer and (ii) with
respect to 50% of its total assets, not more than 5% will be invested in the
securities of a single issuer. In contrast, a fund which elects to be classified
as "diversified" under the Investment Company Act must satisfy the foregoing 5%
requirement with respect to 75% of its assets at all times. To the extent that
the Fund assumes large positions in the obligations of a small number of
issuers, the Fund's total return may fluctuate to a greater extent than that of
a diversified company as a result of changes in the financial condition or in
the market's assessment of the issuers.
MUNICIPAL OBLIGATIONS
-- MUNICIPAL BONDS. Municipal bonds include debt obligations issued to
obtain funds for various public purposes, including the construction of a wide
range of public facilities such as bridges, highways, housing, hospitals, mass
transportation, schools, streets and water and sewer works. Other public
purposes for which municipal securities or bonds may be issued include the
refunding of outstanding obligations, the obtaining of funds for general
operating expenses and the obtaining of funds to loan to other public
institutions and facilities. In addition, certain types of private activity
bonds are issued by or on behalf of public authorities to obtain funds to
provide housing facilities, sports facilities, convention or trade show
facilities, airport, mass transit, port or parking facilities, manufacturing
facilities, air or water pollution control facilities and certain local
facilities for water supply, gas, electricity or sewage or solid waste disposal.
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-- GENERAL OBLIGATION BONDS. Issuers of general obligation bonds include
states, counties, cities, towns and regional districts. The proceeds of these
obligations are used to fund a wide range of public projects, including
construction or improvement of schools, highways and roads, and water and sewer
systems. General obligation bonds are secured by the issuer's pledge of its full
faith, credit and taxing power for the payment of principal and interest. The
taxes that can be levied for the payment of debt service may be limited or
unlimited as to the rate or amount of special assessments.
-- REVENUE BONDS. Revenue Bonds are not secured by the full faith, credit
and taxing power of an issuer. Rather, the principal security for revenue bonds
is generally the net revenue derived from a particular facility, group of
facilities or, in some cases, the proceeds of a special excise tax or other
specific revenue source. Revenue bonds are issued to finance a wide variety of
capital projects including: electric, gas, water, and sewer systems; highways,
bridges, and tunnels; port and airport facilities; colleges and universities,
and hospitals. Although the principal security behind these bonds may vary, many
provide additional security in the form of a debt service reserve fund, from
which money may be used to make principal and interest payments on the issuer's
obligations. Housing finance authorities have a wide range of security,
including partially or fully insured mortgages, rent subsidized and/or
collateralized mortgages, and/or the net revenues from housing or other public
projects. Some authorities are provided with further security in the form of
state assurance (although without obligation) to make up deficiencies in the
debt service reserve fund.
-- INDUSTRIAL DEVELOPMENT BONDS. Industrial development bonds are, in
most cases, revenue bonds and are issued by or on behalf of public authorities
to raise money for the financing of various privately-operated facilities such
as manufacturing, housing, and pollution control. These bonds are also used to
finance public facilities such as airports, mass transit systems, ports and
parking. The payment of the principal and interest on such bonds is solely
dependent on the ability of the facilities user to meet its financial
obligations and the pledge, if any, of the real and personal property so
financed as security for such payment. The Fund will purchase industrial
development bonds only to the extent that the interest paid by a particular bond
is tax-exempt pursuant to the Code, which limits the types of facilities that
may be financed with tax-exempt industrial development and private activity
bonds and the amounts of such bonds each state may issue.
-- PRIVATE ACTIVITY BONDS. The Fund will invest only in those private
activity bonds which are, in the opinion of issuer's counsel, tax exempt.
Interest on obligations which are classified as non-qualified private activity
bonds under Section 141, arbitrage bonds under Section 148 and bonds not in
registered form under Section 149 of the Code is not exempt from federal income
tax. Such obligations are excluded from the definition of municipal bonds. The
Fund will not invest in them. However, Sections 141 through 150 of the Code
provide that interest on certain types of private activity bonds will be exempt
from federal income tax except when such interest is received by "substantial
users" or persons related to substantial users as defined in Section 147 of the
Code. The Fund may invest periodically in these bonds, and therefore, the Fund
may not be an appropriate investment for entities which are substantial users of
facilities financed by private activity bonds or for investors who are "related
persons". Generally, an individual will not be a related person under the Code
unless such investor or his immediate family (spouse, brothers, sisters and
lineal descendants) own directly or indirectly in the aggregate more than 50% in
value of the equity of a corporation or partnership which is a substantial user
of a facility financed from the proceeds of
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<PAGE>
private activity bonds. A "substantial user" of such facilities is defined
generally by Treasury regulations as a non-exempt person who regularly uses a
part of a facility financed from the proceeds of private activity bonds.
-- MUNICIPAL NOTES. Municipal notes generally fund short-term capital needs
and have maturities of one year or less. The Fund may invest in municipal notes
which include:
-- TAX ANTICIPATION NOTES. Tax anticipation notes are issued to finance
working capital needs of municipalities. Generally, they are issued in
anticipation of various seasonal tax revenues, such as income, sales, use and
business taxes, and are payable from these specific future taxes.
-- REVENUE ANTICIPATION NOTES. Revenue anticipation notes are issued in
expectation of receipt of other types of revenue, such as federal revenues
available under the Federal Revenue Sharing Programs.
-- BOND ANTICIPATION NOTES. Bond anticipation notes are issued to provide
interim financing until long-term financing can be arranged. In most cases, the
long-term bonds then provide the money for the repayment of the notes.
-- MISCELLANEOUS, TEMPORARY AND ANTICIPATORY INSTRUMENTS. These instruments
may include notes issued to obtain interim financing pending entering into
alternate financial arrangements such as receipt of anticipated federal, state
or other grants or aid, passage of increased legislative authority to issue
longer term instruments or obtaining other refinancing.
-- CONSTRUCTION LOAN NOTES. Construction loan notes are sold to provide
construction financing. Permanent financing, the proceeds of which are applied
to the payment of the Construction Loan Notes, is sometimes provided by a
commitment of the Government National Mortgage Association ("GNMA") to purchase
the loan, accompanied by a commitment by the Federal Housing Administration to
insure mortgage advances thereunder. In other instances, permanent financing is
provided by commitments of banks to purchase the loan. The Fund will only
purchase Construction Loan Notes that are subject to permanent GNMA or bank
purchase commitments.
-- TAX-EXEMPT COMMERCIAL PAPER. Tax-exempt commercial paper is a short-term
obligation with a stated maturity of 365 days or less. It is issued by agencies
of state and local governments to finance seasonal working capital needs or as
short-term financing in anticipation of longer term financing.
-- MUNICIPAL LEASES. Municipal lease obligations or installment purchase
contract obligations (collectively, "Municipal Leases") have special risks not
normally associated with Municipal Obligations. Although Municipal Leases do not
constitute general obligations of the municipality for which the municipality's
taxing power is pledged, a Municipal Lease may be backed by the municipality's
covenant to budget for, appropriate and make the payments due under the lease
obligations. However, most lease obligations contain "non-appropriation" clauses
which provide that the municipality has no obligation to make lease or
installment purchase payments in future years
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<PAGE>
unless money is appropriated for such purpose on a yearly basis. Although
"non-appropriation" Municipal Leases are generally secured by the leased
property, the Fund's ability to recover under the lease in the event of
non-appropriation or default will be limited solely to repossession of the
leased property without recourse to the general credit of the lessee, and
disposition of the property in the event of foreclosure might prove difficult.
In addition, Municipal Leases may be subject to an "abatement" risk. The leases
underlying certain municipal lease obligations may provide that lease payments
are subject to partial or full abatement if, because of material damage or
destruction of the leased property, there is substantial interference with the
lessee's use or occupancy of such property. The "abatement" risk may be reduced
by the existence of insurance covering the leased property, the maintenance by
the lessee of reserve funds or the provision of credit enhancements such as
letters of credit.
In addition to the "non-appropriation" and "abatement" risks, investments
in Municipal Leases represent a relatively new type of financing. As such,
Municipal Leases have not yet developed the depth of marketability associated
with more conventional Municipal Obligations. The Fund will seek to minimize
these risks by investing not more than 10% of its total assets in Municipal
Leases that contain "non-appropriation" clauses, and by investing only in those
"non-appropriation" lease obligations where (1) the nature of the leased
equipment or property is such that its ownership or use is essential to a
governmental function of the municipality, (2) the lease payments will commence
amortization of principal at an early date resulting in an average life of seven
years or less for the lease obligation, (3) appropriate covenants will be
obtained from the municipal obligor prohibiting the substitution or purchase of
similar equipment if lease payments are not appropriated, (4) the lease obligor
has maintained good market acceptability in the past, (5) the investment is of a
size that will be attractive to institutional investors, and (6) the underlying
leased equipment has elements of portability and/or use that to enhance its
marketability in the event foreclosure on the underlying equipment is ever
required.
Investments in Municipal Leases will be subject to the Fund's 15%
limitation on investments in Illiquid Securities as described in the Fund's
Prospectus unless, in the judgment of OppenheimerFunds, Inc. ("the Manager"), a
particular Municipal Lease is liquid and has received an investment grade rating
from a nationally recognized statistical rating organization ("NRSRO"). The
Board of Trustees has adopted guidelines to be utilized by the Manager in making
determinations concerning the liquidity and valuation of a municipal lease
obligation. Such determinations will be based on all relevant factors including
among others: (1) the frequency of trades and quotes for the obligation; (2) the
number of dealers willing to purchase or sell the security and the number of
other potential buyers; (3) the willingness of dealers to undertake to make a
market in the security; (4) the nature of the marketplace trades, including, the
time needed to dispose of the security, the method of soliciting offers, and the
mechanics of transfer; (5) the likelihood that the marketability of the
obligation will be maintained throughout the time the Fund holds the obligation;
and (6) the likelihood that the municipality will continue to appropriate
funding for the leased property. As noted in the Fund's Prospectus, no more than
an aggregate of 15% of the value of the Fund's net assets at the time of
acquisition may be invested in Illiquid Securities. Of that amount, no more than
5% of the Fund's assets which are invested in tax-exempt obligations may be
invested in unrated or "illiquid" municipal leases.
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<PAGE>
Subject to the foregoing percentage limitations on investments in Illiquid
Securities, the Fund may invest in tax-exempt leases, provided that: (i) the
Fund receives in each instance the opinion of issuer's legal counsel experienced
in such transactions that the tax-exempt obligation will generate interest
income which is exempt from Federal and New York State income tax; (ii) the Fund
receives in all instances an opinion that as of the effective date of the lease
or at the date of the Fund's purchase, if other than on the effective date, the
lease is the valid and binding obligation of the governmental issuer; (iii) the
Fund receives in each instance an opinion of issuer's legal counsel that such
obligation has been issued in compliance with all applicable Federal and State
securities laws; (iv) the Adviser of the Fund performs its own credit analysis
in instances where a credit rating has not been provided by a recognized credit
rating agency; (v) that if a particular exempt obligation is unrated and, in the
opinion of the Manager, not of investment grade quality (i.e., within one of the
four highest ratings of an NRSRO, the Manager at the time of making such
investment, shall include such investment within the Fund's overall percentage
limitation on investments in illiquid securities as well as the 5% limitation on
investments in unrated tax-exempt leases. In instances where the Manager is
required to perform its own credit analysis with respect to a particular
tax-exempt lease obligation, the Manager will evaluate current information
furnished by the issuer or obtained from other sources considered by it to be
reliable.
-- DEFINITION OF ISSUER
For purposes of diversification under the Investment Company Act,
identification of the "issuer" of a Municipal Obligation depends on the terms
and conditions of the obligation. If the assets and revenues of an agency,
authority, instrumentality or other political subdivision are separate from
those of the government creating the subdivision and the obligation is backed
only by the assets and revenues of the subdivision, such subdivision would be
regarded as the sole issuer. Similarly, in the case of an industrial development
revenue bond, if the bond is backed only by the assets and revenues of the
non-governmental user, the non-governmental user would be deemed to be the sole
issuer.
If, however, in either case, the creating government or some other
entity guarantees the security, such a guarantee would not be a separate
security which must be included in the Fund's limitation on investments in a
single issuer, provided the value of all securities guaranteed by a guarantor is
not greater than 10% of the Fund's total assets.
OTHER INVESTMENT TECHNIQUES AND STRATEGIES
-- STAND-BY COMMITMENTS
The Fund may purchase municipal securities together with the right to
resell the securities to the seller at an agreed upon price or yield within a
specified period prior to the maturity date of the securities. Although it is
not a put option in the technical sense, such a right to resell is commonly
known as a "put" and is also referred to as a "stand-by commitment."
-- WHEN-ISSUED SECURITIES
Municipal bonds are frequently offered on a "when-issued" basis. When so
offered, the price, which is generally expressed in yield terms, is fixed at the
time the commitment to purchase
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<PAGE>
is made, but delivery and payment for the when-issued securities take place
at a later date. Normally, the settlement date occurs within six months of the
purchase of municipal bonds and notes; during the period between purchase and
settlement, no payment is made by the Fund to the issuer and no interest accrues
to the Fund. To the extent that assets of the Fund are held in cash pending the
settlement of a purchase of securities, the Fund would earn no income; however,
it is the Fund's intention to be fully invested to the extent practicable and
subject to the policies stated above. While when-issued securities may be sold
prior to the settlement date, the Fund intends to purchase such securities with
the purpose of actually acquiring them unless a sale appears desirable for
investment reasons. At the time the Fund makes the commitment to purchase a
municipal bond on a when-issued basis, it will record the transaction and
reflect the value of the security in determining its net asset value. The Fund
does not believe that its net asset value or income will be adversely affected
by its purchase of municipal bonds on a when-issued basis. The Fund will
establish a segregated account in which it will maintain cash and marketable
securities equal in value to the commitment for when-issued securities.
-- OPTIONS TRANSACTIONS
The Fund may engage in options transactions in order to provide additional
income (the writing of covered call options) or in order to afford protection
against adverse market conditions (the buying of put options). Such transactions
may, however, limit the amount of possible capital appreciation which might
otherwise be realized. The Fund may only write covered call options or purchase
put options which are listed for trading on a national securities exchange and
purchase call options and sell put options to the extent necessary to cancel
options previously written. As an operational policy, no more than 5% of the
Fund's net assets will be invested in options transactions.
Unless otherwise noted, the foregoing investment objectives and policies
are not designated as fundamental policies within the meaning of the Investment
Company Act. New forms of Municipal Obligations in which the Fund may desire to
invest are continuing to evolve. Accordingly, the descriptions herein as to
certain types of existing Municipal Obligations should be viewed as illustrative
and not exclusive. The Fund may invest in new forms of instruments or variations
of existing instruments, subject only to the Fund's criteria of investment
quality and tax exemption and to the restrictions specified in this Statement of
Additional Information. As new forms of instruments or variations of existing
instruments evolve, the Fund will revise its prospectus to reflect such
evolution prior to investing.
-- VARIABLE RATE DEMAND NOTES
The Fund may purchase variable rate demand notes ("VRDNs") which are
tax-exempt obligations that contain a floating or variable interest rate
adjustment formula and an unconditional right of demand to receive payment of
the unpaid principal balance plus accrued interest upon a short notice period,
generally not to exceed seven days. The interest rates are adjustable at
intervals ranging from daily up to six months to some prevailing market rate for
similar investments, such adjustment formula being calculated to maintain the
market value of the VRDN at approximately the par value of the VRDN upon the
adjustment date. The adjustments are typically based upon the prime rate of a
bank or some other appropriate interest rate adjustment index.
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<PAGE>
The Fund may also invest in VRDNs in the form of participation interests
("Participating VRDNs") in variable rate tax-exempt obligations held by a
financial institution, typically a commercial bank ("institution").
participating VRDNs provide the Fund with a specified undivided interest (up to
100%) of the underlying obligation and the right to receive payment of the
unpaid principal balance plus accrued interest on the Participating VRDNs from
the institution upon a specified number of days' notice, not to exceed seven
days (repurchase agreement). In addition, the Participating VRDN is backed by an
irrevocable letter of credit of the institution guaranteeing the timely payment
of principal and interest. In such instances the Fund has an undivided interest
in the underlying obligations and thus participates on the same basis as the
institution in such obligations except that the institution typically retains
fees out of the interest paid on the obligation for servicing the obligation,
for providing the letter of credit and issuing the repurchase commitment. To the
extent that investments in VRDNs are concentrated in a small number of issuers,
the inability of such issuers to meet their payment obligations could adversely
affect the Fund's liquidity.
-- ILLIQUID SECURITIES
As noted in the prospectus, the Fund may invest up to 15% of the value of
its net assets in Illiquid Securities as defined therein, which may include, but
are not limited to securities which have not been registered under the
Securities Act of 1933, as amended (the "1933 Act"). Rule 144a under the 1933
Act permits certain resales of such unregistered securities, provided that such
securities have been determined to be eligible for resale to certain qualified
institutional investors ("Rule 144A Securities"). Rule 144A Securities which are
determined to be liquid by the Fund's Manager pursuant to certain guidelines
which have been adopted by the Board of Trustees will be excluded from the 15%
limitation on investments in Illiquid Securities. In addition to the
unregistered nature of the securities, the Manager will take the following
factors into considerating in reaching a determination as to whether a
particular Rule 144A Security may be "liquid": (1) the frequency (or anticipated
frequency) of trades and quotes for the security; (2) the number of dealers
willing to purchase or sell the security and the number of other potential
purchasers; (3) any dealer undertakings to make a market in the security; and
(4) the nature of the security and the nature of the marketplace trades (e.g.,
the time needed to dispose of the security, the method of soliciting offers and
the mechanics of transfer). The Manager will also consider any other factors
which in its opinion are pertinent to the liquidity of a security.
OTHER INVESTMENT RESTRICTIONS
-- FUNDAMENTAL INVESTMENT RESTRICTIONS
The Fund operates under certain investment restrictions which are
fundamental investment policies of the Fund and which cannot be changed without
approval of a majority of the outstanding voting securities of the Fund (defined
for purposes of the Prospectus and this Statement as the lesser of: (i) 67% of
the shares present or represented by proxy at a meeting at which more than 50%
of the outstanding shares are present or represented by proxy; or (ii) more than
50% of the outstanding shares). These restrictions provide that the Fund may
not:
1. Borrow money or mortgage or pledge any of its assets, except that
the Fund may borrow from a bank for temporary or emergency purposes or
for investment purposes in amounts not exceeding 5% of its total
assets. Where borrowings are made for a purpose other than temporary or
emergency purposes, the Investment Company Act, requires that the Fund
maintain asset coverage of at least 300% for all such borrowings.
Should such asset coverage at any time fall below 300%, the Fund will
be required to reduce its borrowings within three (3) days to the
extent necessary to meet such asset coverage. To reduce its borrowings,
the Fund may have to sell investments at a time when it would be
disadvantageous to do so. Additionally, interest paid by the Fund on
its borrowings will decrease the net earnings of the Fund.
2. Buy any securities on margin or sell any securities short.
3. Lend any of its funds or other assets, except by the purchase of a
portion of an issue of publicly distributed bonds, debentures, notes or
other debt securities.
4. Act as underwriter of securities issued by other persons except
insofar as the Fund may technically be deemed an underwriter under the
federal securities laws in connection with the disposition of portfolio
securities.
5. Purchase the securities of any issuer which would result in the
Fund owning more than 10% of the voting securities of such issuer.
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<PAGE>
6. Purchase from or sell to its officers and trustees, or any firm of
which any officer or trustee is a member, as principal, any securities,
but may deal with such persons or firms as brokers and pay a customary
brokerage commission; retain securities of any issuer, if to the
knowledge of the Fund, one or more of its officers, trustees or
investment adviser, own beneficially more than 1/2 of 1% of the
securities of such issuer and all such officers and trustees together
own beneficially more than 5% of such securities.
7. Acquire, lease or hold real estate, except such as may be necessary
or advisable for (a) the maintenance of its offices, or (b) to enable
the Fund to take such action as may be appropriate in the event of
financial difficulties, default or bankruptcy of either the issuer of
or the underlying source of funds for debt service for any obligations
in the Fund's portfolio.
8. Invest in commodities and commodity contracts, puts, calls,
straddles, spreads or any combination thereof, or interests in oil, gas
or other mineral exploration or development programs. The Fund may,
however, write covered call options (or purchase put options) listed
for trading on a national securities exchange and purchase call options
(and sell put options) to the extent necessary to close out call
options previously written or put options previously purchased. At
present there are no options listed for trading on a national
securities exchange covering the types of securities which are
appropriate for investment by the Fund, and, therefore, there are no
option transactions currently available for the Fund.
9. Invest in companies for the purpose of exercising control or
management.
10. Invest more than 25% of the Fund's total assets in securities of
issuers of a particular industry, although for purposes of this
limitation, tax-exempt securities and United States government
obligations are not considered to be part of an industry, except that,
with respect to industrial development bonds and other revenue
obligations for which the underlying credit is a business or charitable
entity, the industry of that entity will be considered for purposes of
this 25% limitation.
11. Issue Senior Securities.
-- NON-FUNDAMENTAL INVESTMENT RESTRICTIONS
The Fund operates under certain investment restrictions which are
non-fundamental investment policies of the Fund and which can be changed by the
Board without shareholder approval. These restrictions provide that:
1. The Fund may not acquire more than 3% of the voting securities issued by
any one investment company (except where the acquisition results from a dividend
or a merger, consolidation or other reorganization) or invest more than 5% of
the Fund's assets in securities issued by any one investment company or invest
more than 5% of the Fund's assets in securities of other investment companies.
2. For purposes of Fundamental Investment Restriction No. 10 described
above, the Fund's policy with respect to concentration of investments shall be
interpreted as prohibiting the Fund from making an investment in any given
industry if, upon making the proposed investment, 25% or more of the
value of its (total) assets would be invested in such industry.
The percentage limitations (fundamental and non-fundamental) on investments
which are set forth above are applied at the time an investment is made. No
violation of the percentage limitation will occur unless the limitation is
exceeded immediately after an investment is made and as a result thereof (except
for the limitations on borrowing which are in effect at all times).
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INVESTMENT CONSIDERATIONS/RISK FACTORS
-- CONCENTRATION OF INVESTMENTS IN NEW YORK MUNICIPAL SECURITIES
As explained in the Prospectus, the Fund is highly sensitive to the fiscal
stability of New York State (the "State") and its subdivisions, agencies,
instrumentalities or authorities, including New York City, which issue the
Municipal Securities in which the Fund concentrates its investments. The
following information on risk factors in concentrating in New York Municipal
Securities is only a summary, based on publicly available information, and
official statements relating to offerings of New York issuers of Municipal
Securities on or prior to January 24, 1996 with respect to offering of the State
and December 21, 1995 with respect to offering of New York City, and no
representation is made as to the accuracy of such information.
During the mid-1970's the State, some of its agencies, instrumentalities
and public benefit corporations (the "Authorities"), and certain of its
municipalities faced serious financial difficulties. To address many of these
financial problems, the State developed various programs, many of which were
successful in ameliorating the financial crisis. Any further financial problems
experienced by these Authorities or municipalities could have a direct adverse
effect on the New York Municipal Securities in which the Fund invests.
NEW YORK CITY
General. More than any other municipality, the fiscal health of New York
City (the "City") has a significant effect on the fiscal health of the State.
The national economic downturn which began in July 1990 adversely affected the
local economy which had been declining since late 1989. As a result, the City
experienced job losses in 1990 and 1991 and real Gross City Product ("GCP") fell
in those two years. Beginning in 1992, the improvement in the national economy
helped stabilize conditions in the City. Employment losses moderated toward
year-end and real GCP increased, boosted by strong wage gains. After noticeable
improvements in the City's economy during 1994, the City's current four-year
financial plan assumes that economic growth will slow in 1995 and 1996 with
local employment increasing modestly. During the 1995 fiscal year, the City
experienced substantial shortfalls in payments of non-property tax revenues from
those forecasted.
For each of the 1981 through 1994 fiscal years, the City achieved balanced
operating results as reported in accordance with generally accepted accounting
principles ("GAAP") and the City's 1995 fiscal year results are projected to be
balanced in accordance with GAAP. For fiscal year 1995, the City has adopted a
budget which has halted the trend in recent years of substantial increases in
City spending from one year to the next. The adopted budget for the fiscal year
1996 reduces City-funded spending for the second consecutive year. There can be
no assurance that the City will continue to maintain a balanced budget, or that
it can maintain a balanced budget without additional tax or other revenue
increases or reductions in City services, which could adversely affect the
City's economic base.
The Mayor is responsible for preparing the City's four-year financial plan,
including the City's current financial plan for the 1996 through 1999 fiscal
years (the "1996-1999 Financial Plan", "Financial
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Plan" or "City Plan"). On November 29, 1995, the City submitted to the Control
Board the Financial Plan for the 1996-1999 fiscal years, which is a modification
to a financial plan submitted to the Control Board on July 11, 1995 (the "July
Financial Plan") and which relates to the City, the Board of Education ("BOE")
and the City University of New York.
The City's projections set forth in the City Plan are based on various
assumptions and contingencies which are uncertain and which may not materialize.
Changes in major assumptions could significantly affect the City's ability to
balance its budget as required by State law and to meet its annual cash flow and
financing requirements. Such assumptions and contingencies include the condition
of the regional and local economies, the impact on real estate tax revenues of
the current downturn in the real estate market, wage increases for City
employees consistent with those assumed in the City Plan, employment growth, the
ability to implement reductions in City personnel and other cost reduction
initiatives, provision of State and Federal aid and mandate relief and the
impact on City revenues of proposals for Federal and State welfare reform.
Implementation of the City Plan is also dependent upon the City's ability
to market its securities successfully in the public credit markets. The City's
financing program for fiscal years 1996 through 1999 contemplates the issuance
of $11 billion of general obligation bonds primarily to reconstruct and
rehabilitate the City's infrastructure and physical assets and to make capital
investments. In addition, the City issues revenue and tax anticipation notes to
finance its seasonal working capital requirements. The success of projected
public sales of City bonds and notes will be subject to prevailing market
conditions, and no assurance can be given that such sales will be completed. If
the City were unable to sell its general obligation bonds and notes, it would be
prevented from meeting its planned operating and capital expenditures. Future
developments concerning the City and public discussion of such developments, as
well as prevailing market conditions, may affect the market for outstanding City
general obligation bonds and notes.
The City Comptroller and other agencies and public officials have issued
reports and make public statements which, among other things, state that
projected revenues may be less and future expenditures may be greater than
forecasted in the City Plan. It is reasonable to expect that such reports and
statements will continue to be issued and to engender public comment.
1996-1999 Financial Plan. The July Financial Plan projected revenues and
expenditures for the 1996 fiscal year balanced in accordance with GAAP. The July
Financial Plan set forth actions to close a previously projected gap of
approximately $3.1 billion in the 1996 fiscal year. The gap-closing actions for
the 1996 fiscal year include agency actions, including productivity savings and
savings from restructuring the delivery of City services; service reductions;
the sale of delinquent real property tax receivables; reduced debt service
costs, resulting from refinancings and other actions; proposed increased Federal
assistance; proposed increased State aid; and various revenue actions.
The Financial Plan also sets forth projections for the 1997 through 1999
fiscal years and outlines a proposed gap-closing program to close projected
budget gaps of $888 million, $1.5 billion and $1.4 billion for the 1997 through
1999 years, respectively. These projections take into account expected increases
in Federal and State assistance. The projections for the 1996 through 1999
fiscal years assume (i) agreement with the City's unions with respect to
approximately $100 million of savings to be derived from efficiencies in
management of employee health insurance programs and other health benefit
related savings for each of the City's unions; (ii) $200 million of additional
anticipated State aid and $75 million of additional
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anticipated Federal aid in each of the 1997 through 1999 fiscal years; (iii)
that the New York City Health and Hospitals Corporation ("HHC") and the Board of
Education will each be able to identify actions to offset substantial revenue
shortfalls reflected in the Financial Plan, including approximately $254 million
annual reduction in revenues for HHC, which results from the reduction in
Medicaid payments proposed by the State and the City, without any increase in
City subsidy payments to HHC; (iv) the continuation of the current assumption of
no wage increases after fiscal year 1995 for City employees unless offset by
productivity increases; (v) $130 million of additional revenues as a result of
the increased rent payments for the City's airports proposed by the City, which
is subject to further discussion with the Port Authority; and (vi) savings of
$45 million in each of the 1997 through 1999 fiscal years which would result
from the State Legislature's enactment of proposed tort reform legislation. In
addition, the 1996-1999 Financial Plan anticipates the receipt of substantial
amounts of Federal aid. Certain Federal legislative proposals contemplate
significant reductions in Federal spending, including proposed Federal welfare
reform, which could result in caps on, or block grants of, Federal Programs.
Various actions proposed in the Financial Plan are subject to approval by
the Governor and the State Legislature, the City's municipal unions and the
Federal government. No assurance can be given that such actions will in fact be
taken or that the savings that the City projects will result from these actions
will be realized. If these measures cannot be implemented, the City will be
required to take other actions to decrease expenditures or increase revenues to
maintain a balanced financial plan.
The Financial Plan reflects certain cost and expenditure increases
including increases in salaries and benefits paid to City employees pursuant to
certain collective bargaining agreements. In the event of a collective
bargaining impasse, the terms of wage settlements could be determined through
the impasse procedure in the New York City Collective Bargaining Law, which can
impose a binding settlement.
Ratings. On July 10, 1995, Standard & Poor's Ratings Group ("Standard &
Poor's") revised downward its rating on City general obligations bonds from A-
to BBB+ and removed City bond from CreditWatch. Standard & Poor's stated that
"structural budgetary balance remains elusive because of persistent softness in
the City's economy, highlighted by weak job growth and a growing dependence on
the historically volatile financial services sector". Other factors identified
by Standard & Poor's in lowering its rating on City bonds included a trend of
using one-time measures, including debt refinancings, to close projected budget
gaps, dependence on unratified labor savings to help balance the Financial Plan,
optimistic projections of additional Federal and State aid or mandate relief, a
history of cash flow difficulties caused by State budget delays and continued
high debt levels. Fitch Investors Service, Inc. ("Fitch") continues to rate the
City general obligation bond A-. Moody's Investors Service, Inc. ("Moody's")
rating for City general obligation bonds is Baa1. Such ratings reflect only the
views of these rating agencies, from which an explanation of the significance of
such ratings may be obtained. There is no assurance that such ratings will
continue for any given period of time or that they will not be revised downward
or withdrawn entirely. Any such downward revision or withdrawal could have an
adverse effect on the market prices of bonds.
Outstanding Net Indebtedness. As of June 30, 1995, the City and the
Municipal Assistance Corporation for the City of New York had, respectively,
$23.258 billion and $4.033 billion of outstanding net long-term debt.
The City depends on the State for State aid both to enable the City to
balance its budget and to meet its cash requirements. The State's 1995-1996
Financial Plan projects a balanced General Fund. There can
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be no assurance that there will not be reductions in State aid to the City from
amounts currently projected or that State budgets in future fiscal years will be
adopted by the April 1 statutory deadline or that any such reductions or delays
will not have adverse effects on the City's cash flow or expenditures.
Litigation. The City is a defendant in a significant number of lawsuits.
Such litigation includes, but is not limited to, routine litigation incidental
to the performance of its government and other functions, actions commenced and
claims asserted against the City arising out of alleged constitutional
violations, alleged torts, alleged breaches of contracts and other violations of
law and condemnation proceedings and other tax and miscellaneous actions. While
the ultimate outcome and fiscal impact, if any, on the proceedings and claims
are not currently predictable, adverse determination in certain of them might
have a material adverse effect upon the City's ability to carry out the City
Plan. As of June 30, 1994, the City estimated its potential future liability on
account of all outstanding claims to be approximately $2.6 billion.
NEW YORK STATE
The State has historically been one of the wealthiest states in the nation.
For decades, however, the State economy has grown more slowly than that of the
nation as a whole, resulting in the gradual erosion of its relative economic
affluence. The causes of this relative decline are varied and complex, in many
cases involving national and international developments beyond the State's
control.
Recent Developments. The national economy began the current expansion in
1991 and has added over 7 million jobs since early 1992. However, the recession
lasted longer in the State and State's economy recovery has lagged behind the
nation's. Although the State has added approximately 185,000 jobs since November
1992, employment growth in the State has been hindered during recent years by
significant cutbacks in the computer and instrument manufacturing, utility,
defense, and banking industries.
The 1995-1996 New York State Financial Plan (the "State Plan") is based on
projections that the State's economy is expected to expand during 1995, but that
there will be a pronounced slow-down during the course of the year. Although
industries that export goods and services abroad are expected to benefit from
the lower dollar, growth will be slowed by government cutbacks at all levels. On
an average annual basis, employment growth will be about the same as 1994. Both
personal income and wages are expected to record moderate gains in 1995. Bonus
payments in the securities industry are expected to increase from last year's
depressed level.
Many uncertainties exist in forecasts of both the national and State
economies, including consumer attitudes toward spending, the extent of corporate
and governmental restructuring, Federal fiscal and monetary policies, the level
of interest rates, and the condition of the world economy, which could have an
adverse effect on the State. There can be no assurance that the State economy
will not experience results in the current fiscal year that are worse than
predicted, with corresponding material and adverse effects on the State's
projections of receipts and disbursements.
The 1995-96 Fiscal Year. The State's General Fund (the major operating Fund
of the State) was projected in the State Plan to be balanced on a cash basis for
the 1995-96 fiscal year. The State Plan projected General Fund receipts and
transfers from other funds at $33.110 billion, a decrease of $48 million from
total receipts in the prior fiscal year, and disbursements and transfers to
other funds at $33.055 billion, a decrease of $344 million from the total amount
disbursed in the prior fiscal year.
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The State issued the first of the three required quarterly updates to the
State Plan on July 28, 1995 (the "First Quarter Update"). The First Quarter
Update projected a continued balance in the State's 1995-96 Financial Plan and
incorporated few revisions to the Plan.
The State issued its second quarterly update to the State Plan (the
"Mid-Year Update") on October 26, 1995. The Mid-Year Update projected continued
balance in the State's 1995-96 Financial Plan with estimated receipts reduced by
a net $71 million and estimated disbursements reduced by a net $30 million as
compared to the First Quarter Update. The State also updated its forecast of
national and State economic activity through the end of calendar year 1996. The
national economic forecast remained basically unchanged from the initial
forecast on which the original 1995-96 State Financial Plan was based, while the
State economic forecast was marginally weaker.
The State revised the State Plan on December 15, 1995 in conjunction with
the release of the Executive Budget for the 1996-97 fiscal year. The State Plan
continues to project a balanced General Fund with reductions in projected
receipts offset by an equivalent reduction in projected disbursements. Modest
changes were made to the Mid-Year Update, reflecting two more months of actual
results, deficiency requests by State agencies and administrative efficiencies
achieved by State agencies. Total General Fund receipts are expected to be
approximately $73 million lower than estimated at the time of the Mid-Year
Update. The largest single change in these estimates in attributable to the lag
in achieving $50 million in proceeds from sales of State assets, which are
unlikely to be completed prior to the end of the fiscal year. Projected General
Fund disbursements also are reduced by a total of $73 million. The revisions
reflect re-estimates based on actual results through November 1995, the largest
of which is a reduction of $70 million in projected costs for income
maintenance.
There can be no assurance that the State will not face substantial
potential budget gaps in future years resulting from a significant disparity
between tax revenues projected from a lower recurring receipts base and the
spending required to maintain state programs at current levels. To address any
potential budgetary imbalance, the State may need to take significant actions to
align recurring receipts and disbursements in future fiscal years.
The 1996-97 Fiscal Year (Executive Budget Forecast. The Governor
presented his 1996-97 Executive Budget to the Legislature on December 15, 1995
(the "1996-97 Financial Plan"). The Executive Budget also contains financial
projections for the State's 1997-98 and 1998-99 fiscal years. The 1996-97
Financial Plan projects a continued balance in the General Fund. It reflects a
continuing strategy of substantially reduced State spending, including program
restructurings, reductions in social welfare spending, and efficiency and
productivity initiatives. Total General Fund receipts and transfers from other
funds are projected to be $31.32 billion, a decrease of $1.4 billion from total
receipts projected in the current fiscal year. Total General Fund disbursements
and transfers to other funds are projected to be $31.22 billion, a decrease of
$1.5 billion from spending totals projected for the current fiscal year. The
Executive Budget proposes $3.9 billion in actions to balance the 1996-97
Financial Plan, including projections of (i) over $1.8 billion in savings from
cost containment and other actions in social welfare programs, including
Medicaid, welfare and various health and mental health programs; (ii) $1.3
billion in savings from a reduced State General Fund
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share of Medicaid made available from anticipated changes in the federal
Medicaid program, including an increase in the federal share of Medicaid; (iii)
over $450 million in savings from reforms and cost avoidance in educational
services (including school aid and higher education), while providing fiscal
relief from certain State mandates that increase local spending; and (iv) $350
million in savings from efficiencies and reductions in other State programs.
The Governor has submitted several amendments to the Executive Budget. The
net impact of the amendments leaves unchanged the total estimated amount of the
General Fund spending in 1996-97, which continues to be projected at $31.22
billion.
To make progress toward addressing recurring budgetary imbalances, the
1996-97 Executive Budget proposes significant actions to align recurring
receipts and disbursements in future fiscal year. However, there can be no
assurance that the Legislature will enact the Governor's proposals or that the
State's action will be sufficient to preserve budgetary balance or to align
recurring receipts and disbursements in either 1996-97 or in future fiscal
years. The Executive Budget contains projections of a potential imbalance in the
1997-98 fiscal years of $1.44 billion and in the 1998-99 fiscal year of $2.47
billion, assuming implementation of the Executive Budget recommendations. It is
expected that the Governor will propose to close these budget gaps with further
spending reductions.
Uncertainties with regard to both the economy and potential decisions at
the federal level add further pressure on future budget balance in the State.
For example, various proposals relating to federal tax and spending policies,
such as changes to federal treatment of capital gains which would flow through
automatically to the State personal income tax and changes affecting the federal
share of Medicaid, could, if enacted, have a significant impact on the State's
financial condition in 1996-97 and in future fiscal years.
Composition of State Governmental Funds Group. Substantially all State
non-pension financial operations are accounted for in the State's governmental
funds group. Governmental funds include the General Fund, which receives all
income not required by law to be deposited in another fund; Special Revenue
Funds, which receive the preponderance of moneys received by the State from the
Federal government and other income the use of which is legally restricted to
certain purposes; Capital Projects Funds, used to finance the acquisition and
construction of major capital facilities by the State and to aid in certain of
such projects conducted by local governments or public authorities; and Debt
Service Funds, which are used for the accumulation of moneys for the payment of
principal of and interest on long-term debt and to meet lease-purchase and other
contractual-obligation commitments.
Local Government Assistance Corporation ("LGAC"). In 1990, as part of a
State fiscal reform program, legislation was enacted creating LGAC, a public
benefit corporation empowered to issue long-term obligations to fund certain
payments to local governments traditionally funded through the State's annual
seasonal borrowing. The legislation authorized LGAC to issue its bond and notes
in an amount not in excess of $4.7 billion (exclusive of certain refunding
bonds) plus certain other amounts. Over a period of years, the issuance of these
long-term obligations, which are to be amortized over no more than 30 years, was
expected to eliminate the need for continued short-term seasonal borrowing. The
legislation also dedicated revenues equal to one-quarter of the four cent State
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sales and use tax to pay debt service on these bonds. The legislation also
imposed a cap on the annual seasonal borrowing of the State at $4.7 billion,
less net proceeds of bonds issued by LGAC and bonds issued to provide for
capitalized interest, except in cases where the Governor and the legislative
leaders have certified the need for additional borrowing and provided a schedule
for reducing it to the cap. If borrowing above the cap is thus permitted in any
fiscal year, it is required by law to be reduced to the cap by the fourth fiscal
year after the limit was first exceeded. This provision capping the seasonal
borrowing was included as a covenant with LGAG's bondholders in the resolution
authorizing such bonds.
As of June 1995, LGAC had issued bonds and notes to provide net proceeds of
$4.7 billion completing the program. The impact of LGAC's borrowing is that the
State is able to meet its cash flow needs in the first quarter of the fiscal
year without relying on short-term seasonal borrowings. The State Plan includes
no spring borrowing nor did the 1994-1995 State Financial Plan, which was the
first time in 35 years there was no short-term borrowing.
Authorities. The fiscal stability of the State is related to the fiscal
stability of its Authorities, which generally have responsibility for financing,
constructing and operating revenue-producing public benefit facilities.
Authorities are not subject to the constitutional restrictions on the incurrence
of debt which apply to the State itself, and may issue bonds and notes within
the amounts of, and as otherwise restricted by, their legislative authorization.
As of September 30, 1994, the latest data available, there were 18 Authorities
that had outstanding debt of $100 million or more. The aggregate outstanding
debt, including refunding bonds, ofthese 18 Authorities was $70.3 billion as of
September 30, 1994.
Authorities are generally supported by revenues generated by the projects
financed or operated, such as fares, user fees on bridges, highway tolls and
rentals for dormitory rooms and housing. In recent years, however, the State has
provided financial assistance through appropriations, in some cases of a
recurring nature, to certain of the 18 Authorities for operating and other
expenses and, in fulfillment of its commitments on moral obligation indebtedness
or otherwise, for debt service. This operating assistance is expected to
continue to be required in future years.
The State's experience has been that if an Authority suffers serious
financial difficulties, both the ability of the State and the Authorities to
obtain financing in the public credit markets and the market price of the
State's outstanding bonds and notes may be adversely affected. There are certain
statutory arrangements that provide for State local assistance payments
otherwise payable to localities to be made under certain circumstances to
certain Authorities. The State has no obligation to provide additional
assistance to localities whose local assistance payments have been paid to
Authorities under these arrangements. However, in the event that such local
assistance payments are so diverted, the affected localities could seek
additional State funds.
Ratings. On January 13, 1992, Standard & Poor's reduced its ratings on the
State's general obligation bonds from A to A- and, in addition, reduced its
ratings on the State's moral obligation, lease purchase, guaranteed and
contractual obligation debt. Standard & Poor's also continued its negative
rating outlook assessment on State general obligation debt. On April 26, 1993,
Standard & Poor's revised the rating outlook assessment to stable. On February
14, 1994, Standard & Poor's
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raised its outlook to positive and, on July 13, 1995, confirmed its A-rating. On
January 6, 1992, Moody's reduced its ratings on outstanding limited-liability
State lease purchase and contractual obligations from A to Baa1. On July 3,
1995, Moody's reconfirmed its A rating on the State's general obligation
long-term indebtedness. Ratings reflect only the respective views of such
organizations, and an explanation of the significance of such ratings may be
obtained from the rating agency furnishing the same. There is no assurance that
a particular rating will continue for any given period of time or that any such
rating will not be revised downward or withdrawn entirely, if in the judgment of
the agency originally establishing the rating, circumstances so warrant. A
downward revision or withdrawal of such ratings, or either of them, may have an
effect on the market price of the State Municipal Securities in which the Fund
invests.
General Obligation Debt. As of March 31, 1995, the State had approximately
$5.181 billion in general obligation bonds, excluding refunding bonds, and $149
million in bond anticipation notes outstanding. Principal and interest due on
general obligation bonds and interest due on bond anticipation notes were $793.3
million for the 1994-95 fiscal year and are estimated to be $774.4 million for
the State's 1995-96 fiscal year, not including interest on refunding bonds to
the extent that such interest is to be paid from escrowed funds.
Litigation. The State is a defendant in numerous legal proceedings
pertaining to matters incidental to the performance of routine governmental
operations. Such litigation includes, but is not limited to, claims asserted
against the State arising from alleged torts, alleged breaches of contracts,
condemnation proceedings and other alleged violations of State and Federal laws.
These proceedings could affect adversely the financial condition of the State in
the 1995-1996 fiscal year or thereafter.
The State believes that the State Plan includes sufficient reserves for the
payment of judgments that may be required during the 1995-96 fiscal year. There
can be no assurance, however, that an adverse decision in any of these
proceedings would not exceed the amount the State Plan reserves for the payment
of judgments and, therefore, could affect the ability of the State to maintain a
balanced 1995-1996 State Plan. In its audited financial statements for the
fiscal year ended March 31, 1995, the State reported its estimated liability for
awarded and anticipated unfavorable judgments at $676 million.
In addition, the State is party to other claims and litigations which its
counsel has advised are not probable of adverse court decisions. Although, the
amounts of potential losses, if any, are not presently determinable, it is the
State's opinion that its ultimate liability in these cases is not expected to
have a material adverse effect on the State's financial position in the 1995-96
fiscal year or thereafter.
Other Localities. Certain localities in addition to the City could have
financial problems leading to requests for additional State assistance during
the State's 1995-96 fiscal year and thereafter. The potential impact on the
State of such actions by localities is not included in the projections of the
State receipts and disbursements in the State's 1995-96 fiscal year.
Fiscal difficulties experienced by the City of Yonkers ("Yonkers") resulted
in the creation of
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the Financial Control Board for the City of Yonkers (the "Yonkers Board") by the
State in 1984. The Yonkers Board is charged with oversight of the fiscal affairs
of Yonkers. Future actions taken by the Governor or the State Legislature to
assist Yonkers could result in allocation of State resources in amounts that
cannot yet be determined.
-- CREDIT QUALITY
The following special considerations are risk factors associated with the Fund's
investments in high yield (lower rated) securities:
-- RISK FACTORS OF HIGH YIELD SECURITIES. The Fund may invest up to 20% of
its assets in securities of lower rated categories or in securities which are
unrated but deemed to be of comparable quality by the Adviser. These high yield,
high risk securities (commonly referred to as "junk bonds") are subject to
certain risks that may not be present with investments of higher grade
securities. The following supplements the disclosure in the Fund's prospectus.
-- EFFECT OF INTEREST RATE AND ECONOMIC CHANGES. The prices of high yield
securities tend to be less sensitive to interest rate changes than higher-rated
investments, but may be more sensitive to adverse economic changes or individual
corporate developments. Periods of economic uncertainty and changes generally
result in increased volatility in market prices and yields of high yield
securities and thus in the
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Fund's net asset value. A strong economic downturn or a substantial period
of rising interest rates could severely affect the market for high yield
securities. In these circumstances, highly leveraged companies might have
difficulty in making principal and interest payments, meeting projected business
goals, and obtaining additional financing. Thus, there could be a higher
incidence of default. This would affect the value of such securities and thus
the Fund's net asset value. Further, if the issuer of a security owned by the
Fund defaults, the Fund might incur additional expenses to seek recovery.
Generally, when interest rates rise, the value of fixed rate debt
obligations, including high yield securities, tends to decrease; when interest
rates fall, the value of fixed rate debt obligations tends to increase. If an
issuer of a high yield security containing a redemption or call provision
exercises either provision in a declining interest rate market, the Fund would
have to replace the security, which could result in a decreased return for
shareholders. Conversely, if the Fund experiences unexpected net redemptions in
a rising interest rate market, it might be forced to sell certain securities,
regardless of investment merit. This could result in decreasing the assets to
which the Fund's expenses could be allocated and in a reduced rate of return for
the Fund. While it is impossible to protect entirely against this risk,
diversification of the Fund's portfolio and the careful analysis of prospective
portfolio securities by OppenheimerFunds, Inc. (the "Adviser") should minimize
the impact of a decrease in value of a particular security or group of
securities in the Fund's portfolio.
-- THE HIGH YIELD SECURITIES MARKET. The market for below investment grade
bonds expanded rapidly in the 1980's and its growth paralleled a long economic
expansion. During that period, the yields on below investment grade bonds rose
dramatically. Such higher yields did not reflect the value of the income stream
that holders of such bonds expected, but rather the risk that holders of such
bonds could lose a substantial portion of their value as a result of the
issuer's financial restructuring or default. In fact, from 1989 to 1991 during a
period of economic recession, the percentage of lower quality securities that
defaulted rose significantly, although the default rate decreased in subsequent
years. There can be no assurance that such declines in the below investment
grade market will not reoccur. The market for below investment grade bonds
generally is thinner and less active than that for higher quality bonds, which
may limit the Fund's ability to sell such securities at fair market value in
response to changes in the economy or the financial markets. Adverse publicity
and investor perceptions, whether or not based on fundamental analysis, may also
decrease the values and liquidity of lower rated securities, especially in a
thinly traded market.
-- CREDIT RATINGS. The credit ratings issued by credit rating services may
not fully reflect the true risks of an investment. For example, credit ratings
typically evaluate the safety of principal and interest payments, not market
value risk, of high yield securities. Also, credit rating agencies may fail to
change timely a credit rating to reflect changes in economic or company
conditions that affect a security's market value. Although the Manager considers
ratings of recognized rating services such as Moody's Investors Services, Inc.,
Standard & Poor's Rating Group, Fitch Investors Services, Inc and Duff & Phelps,
("NRSRO" or "NRSROs") the Manager primarily relies on its own credit analysis,
which includes a study of existing debt, capital issuer's sensitivity to
economic conditions, its operating history and the current trend of earnings.
the Manager continually monitors the investments in the Fund's portfolio and
carefully evaluates whether to dispose of or retain high yield securities whose
credit ratings have changed. See Appendix A for a description of corporate bond
ratings.
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-- LIQUIDITY AND VALUATION. Lower-rated bonds typically are traded among a
smaller number of broker-dealers than in a broad secondary market. Purchasers of
high yield securities tend to be institutions, rather than individuals, which is
a factor that further limits the secondary market. To the extend that no
established retail secondary market exists, many high yield securities may not
be as liquid as higher-grade bonds. A less active and thinner market for high
yield securities than that available for higher quality securities may limit the
Fund's ability to sell such securities at that fair market value in response to
changes in the economy or the financial markets. The ability of the Fund to
value or sell high yield securities also will be adversely affected to the
extent that such securities are thinly traded or illiquid. During such periods,
there may be less reliable objective information available and thus the
responsibility of the Fund's Board of Trustees (the "Board of Trustees" or the
"Board") to value high yield, high risk securities becomes more difficult, with
judgement playing a greater role. Further, adverse publicity about the economy
or a particular issuer may adversely affect the public's perception of the
value, and thus liquidity, of a high yield security, whether or not such
perceptions are based on a fundamental analysis. See How to Buy Shares.
-- LEGISLATION. Provisions of the Revenue Reconciliation Act of 1989 limit
a corporate issuer's deduction for a portion of the original issue discount on
"high yield discount" obligations (including certain pay-in-kind securities).
This limitation could have a materially adverse impact on the market for certain
high yield securities. From time to time, legislators and regulators have
proposed other legislation that would limit the use of high yield debt
securities in leveraged buyouts, mergers and acquisitions. It is not certain
whether such proposals, which could also adversely affect high yield securities,
will be enacted into law.
- -- INVESTMENT IN MUNICIPAL LEASES
Investments in tax-exempt lease obligations, which are commonly referred to as
"municipal leases," present certain special risks which are not associated with
investments in other tax-exempt obligations such as general obligation bonds or
revenue bonds. The principal risks involved in investments in tax-exempt lease
obligations are the following:
-- LIMITED LIQUIDITY. An investment in tax-exempt lease obligations is
generally less liquid than an investment in comparable tax-exempt obligations
such as general obligation bonds or revenue bonds because (i) tax-exempt lease
obligations (other than Certificate of Participation Leases) are usually issued
in private placements and contain legal restrictions on transfer and (ii) there
is only a limited secondary trading market for such obligations.
-- RELIANCE ON ADVISER'S CREDIT ANALYSIS. Tax-exempt lease obligations are
generally not rated by national credit rating firms, which places the burden for
credit analysis upon the Manager.
-- NON-APPROPRIATION. The ability of a purchaser to perform a meaningful
credit analysis is limited by the inclusion in most tax-exempt leases of
"non-appropriation" clauses which provide that the governmental issuer has no
obligation to make future payments under the lease or contract unless funds are
appropriated for such purpose by the appropriate legislative body on a yearly or
other periodic basis.
-- LIMITED REMEDIES. The remedies of a purchaser of a tax-exempt lease
obligation may be limited solely to repossession of the collateral for such
obligation for resale upon failure of a municipality
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<PAGE>
to make necessary appropriations or upon default by the governmental issuer
of such obligation without any recourse to the general credit of the
governmental issuer or to acceleration of the rental payments due solely for the
remaining fiscal year of the governmental issuer. In addition, the resale value
of the collateral may be significantly reduced at the time of repossession due
to depreciation.
-- REDUCTION IN YIELD. Prepayments on underlying leases due to loss or
destruction of equipment or exercise of an option of the lessee to purchase such
equipment may reduce the purchaser's yield to the extent that interest rates
have declined below the level prevailing when the tax-exempt lease obligation
was initially purchased. This reduction in yield may occur because the purchaser
might be required to invest such prepayments in obligations yielding a lower
rate of interest.
HOW THE FUND is MANAGED
ORGANIZATION AND HISTORY. Rochester Fund Municipals, a Massachusetts business
trust, is an open-end, management investment company which currently has one
class of shares outstanding. As a Massachusetts business trust, the Fund is not
required to hold, and does not plan to hold, regular annual meetings of
shareholders. The Fund will hold meetings when required to do so by the
Investment Company Act or other applicable law, or when a shareholder meeting is
called by the Trustees. Shareholders have the right, upon the declaration in
writing or vote of two-thirds of the outstanding shares of the Fund, to remove a
Trustee. The Trustees will call a meeting of shareholders to vote on the removal
of a Trustee upon the written request of the record holders of 10% of its
outstanding shares. In addition, if the Trustees receive a request from at least
10 shareholders (who have been shareholders for at least six months) holding
shares of the Fund valued at $25,000 or more or holding at least 1% of the
Fund's outstanding shares, whichever is less, stating that they wish to
communicate with other shareholders to request a meeting to remove a Trustee,
the Trustees will then either make the Fund's shareholder list available to the
applicants or mail their communication to all other shareholders at the
applicants' expense, or the Trustees may take such other action as set forth
under Section 16(c) of the Investment Company Act.
Each Share of the Fund represents an interest in the Fund proportionately
equal to the interest of each other share and entitles the holder to one vote
per share (and a fractional vote for a fractional share) on matters submitted to
their vote at shareholders' meetings. The Trustees are authorized to create new
series and classes of series. The Trustees may reclassify unissued shares of the
Fund or its series or classes into additional series or classes of shares. The
Trustees may also divide or combine the shares of a class into a greater or
lesser number of shares without thereby changing the proportionate beneficial
interest of a shareholder in the Fund. Shares do not have cumulative voting
rights or preemptive or subscription rights. Shares may be voted in person or by
proxy.
The Fund's Declaration of Trust contains an express disclaimer of
shareholder or Trustee liability for the Fund's obligations, and provides for
indemnification and reimbursement of expenses out of its property for any
shareholder held personally liable for its obligations. The Declaration of Trust
also provides that the Fund shall, upon request, assume the defense of any claim
made against any shareholder for any act or obligation of the Fund and satisfy
any judgment thereon. Thus, while Massachusetts law permits a shareholder of a
business trust (such as the Fund) to be held personally liable as a "partner"
under certain circumstances, the risk of a Fund shareholder incurring financial
loss on account of shareholder liability is limited to the relatively remote
circumstances in which the Fund would be unable to meet its
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<PAGE>
obligations described above. Any person doing business with the Trust, and
any shareholder of the Trust, agrees under the Trust's Declaration of Trust to
look solely to the assets of the Trust for satisfaction of any claim or demand
which may arise out of any dealings with the Trust, and the Trustees shall have
no personal liability to any such person, to the extent permitted by law.
TRUSTEES AND OFFICERS OF THE FUND. The Fund's Trustees and officers, one of
which is the Fund's portfolio manager, are listed below, together with principal
occupations and business affiliations during the past five years. The address of
each is Two World Trade Center, New York, New York 10048, except as noted. All
of the trustees are also trustees of Limited Term New York Municipal Fund and
Oppenheimer Bond Fund for Growth. With the exception of Mr. Cannon, all of the
trustees are also trustees or directors of Oppenheimer Quest Growth & Income
Value Fund, Oppenheimer Quest Officers Value Fund, Oppenheimer Quest Opportunity
Value Fund, Oppenheimer Quest Small Cap Fund, Oppenheimer Quest Value Fund, Inc.
and Oppenheimer Quest Global Value Fund, Inc. Ms. Macaskill (in her capacity as
President), Messrs. Donohue, Bowen, Zack, Bishop and Farrar, respectively, hold
the same offices with the New York-based Oppenheimer Funds as with the Fund. As
of January 5, 1996 the Trustees and officers of the Fund as a group owned less
than 1% of the outstanding shares of class of the Fund.
BRIDGET A. MACASKILL, CHAIRMAN OF THE BOARD OF TRUSTEES AND PRESIDENT*; AGE: 47.
Chairman of the Board, President and Trustee of the Fund, Rochester Portfolio
Series-Limited Term New York Municipal Fund and Bond Fund Series-Oppenheimer
Bond for Growth January 5, 1996-Present; President, Chief Executive Officer and
Director of the Manager; formerly an Executive Vice President of the Manager;
President and a Director of Oppenheimer Acquisition Corp. and HarbourView Asset
Management Corporation ("HarbourView"); a Director of Oppenheimer Partnership
Holdings, Inc., a holding company subsidiary of the Manager; Chairman and a
Director of the Transfer Agent, all of which are subsidiaries of the Manager;
President, a Trustee of the New York-based Oppenheimer funds.
JOHN CANNON, TRUSTEE; AGE: 66
620 Sentry Parkway West, Suite 220, Blue Bell, Pennsylvania 19422
Consultant; Chairman and Treasurer, CDC Associates, Inc., registered investment
adviser, 1993-February, 1996; prior thereto, President, AMA Investment Advisers,
Inc., a mutual fund investment adviser, 1976-1991; Senior Vice President AMA
Investment Advisers, Inc., 1991-1993; Director, Neuberger & Berman Income
Managers Trust, Neuberger & Berman Income Funds and Neuberger & Berman Income
Trust, 1995-present; Trustee of Rochester Portfolio Series-Limited Term New York
Municipal Fund and Bond Fund Series-Oppenheimer Bond Fund for Growth since 1992.
PAUL Y. CLINTON, TRUSTEE; AGE: 65
946 Morris Avenue, Bryn Mawr, Pennsylvania 19010
Principal of Clinton Management Associates, a financial and venture capital
consulting firm; formerly Director, External Affairs, Kravco Corporation, a
national real estate owner and property management corporation; formerly
President of Essex Management Corporation, a management consulting company;
Trustee of Capital Cash Management Trust and Prime Cash Fund, each of which is a
money-market fund; Director of Oppenheimer Quest Value Fund, Inc., Oppenheimer
Quest Global Value Fund, Inc., and Quest Cash Reserves, Inc. and Trustee of
Quest For Value Accumulation Trust, all of which are open-end investment
companies. Formerly a general partner of Capital Growth Fund, a venture capital
partnership; formerly a general partner of Essex Limited Partnership, an
investment partnership; formerly President of Geneve Corp., a venture capital
fund; formerly Chairman of Woodland Capital Corp., a small business investment
company; formerly Vice President of W.R. Grace & Co. Trustee of Rochester
Portfolio Series-Limited Term New York Municipal Fund and Bond Fund
Series-Oppenheimer Bond Fund for Growth.
- ---------
* A Trustee who is an "interested person" as defined in the Investment Company
Act.
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<PAGE>
THOMAS W, COURTNEY, TRUSTEE; AGE: 64
P.O. Box 580, Sewickley, Pennsylvania 15143
Principal of Courtney Associates, Inc., a venture capital firm; former General
Partner of Trivest Venture Fund, a private venture capital fund; former
President of Investment Counseling Federated Investors, Inc.; Trustee of Cash
Assets Trust, a money market fund; Director of Quest Cash Reserves, Inc.,
Oppenheimer Quest Value Fund, Inc. and Oppenheimer Quest Global Value Fund, Inc.
and Trustee of Quest for Value Accumulation Trust, all of which are open-end
investment companies; former President of Boston Company Institutional
Investors; Trustee of Hawaiian Tax-Free Trust and Tax Free Trust of Arizona,
tax-exempt bond funds; Director of several privately owned corporations; former
Director of Financial Analysts Federation; Trustee of Rochester Portfolio
Series-Limited Term New York Municipal Fund and Bond Fund Series-Oppenheimer
Bond Fund for Growth.
LACY B. HERRMANN, TRUSTEE; AGE: 65
380 Madison Avenue, Suite 2300, New York, New York 10017
President and Chairman of the Board of Aquila Management Corporation, the
sponsoring organization and Administrator and/or Sub-Adviser to the following
open-end investment companies, and Chairman of the Board of Trustees and
President of each: Churchill Cash Reserves Trust, Short Term Asset Reserves,
Pacific Capital Cash Assets Trust, Pacific Capital U.S. Treasuries Cash Assets
Trust, Pacific Capital Tax-Free Cash Assets Trust, Prime Cash Fund, Narragansett
Insured Tax-Free Income Fund, Tax-Free Fund For Utah, Churchill Tax-Free Fund of
Kentucky, Tax-Free Fund of Colorado, Tax-Free Trust of Oregon, Tax-Free Trust of
Arizona, Hawaiian Tax-Free Trust, and Aquila Rocky Mountain Equity Fund; Vice
President, Director, Secretary, and formerly Treasurer of Aquila Distributors,
Inc., distributor of the above funds; President and Chairman of the Board of
Trustees of Capital Cash Management Trust ("CCMT"), and an Officer and
Trustee/Director of its predecessors; President and Director of STCM Management
Company, Inc., sponsor and adviser to CCMT; Chairman, President and a Director
of InCap Management Corporation, formerly sub-adviser and administrator of Prime
Cash Fund and Short Term Asset Reserves; Director or Trustee of Quest Cash
Reserves, Inc., Oppenheimer Quest Global Value Fund, Inc. and Oppenheimer Quest
Value Fund, Inc. and Trustee of Quest for Value Accumulation Trust and The
Saratoga Advantage Trust, each of which is an open-end investment company;
Trustee of Rochester Portfolio Series-Limited Term New York Municipal Fund and
Bond Fund Series-Oppenheimer Bond Fund for Growth; Trustee of Brown University.
GEORGE LOFT, TRUSTEE, AGE: 81
51 Herrick Road, Sharon, Connecticut 06069
Private Investor; Director of Quest Cash Reserves, Inc., Oppenheimer Quest for
Value Fund, Inc. and Oppenheimer Quest Global Value Fund, Inc. and Trustee of
Quest for Value Accumulation Trust and The Saratoga Advantage Trust, all of
which are open-end investment companies, and Director of the Quest Value Dual
Purpose Fund, Inc., a closed-end investment company; Trustee of Rochester
Portfolio Series-Limited Term New York Municipal Fund and Bond Fund
Series-Oppenheimer Bond Fund for Growth.
RONALD H. FIELDING, VICE PRESIDENT; AGE: 47
350 Linden Oaks, Rochester, New York 14625
Vice President of the Fund and Rochester Portfolio Series-Limited Term New York
Municipal Fund, January 5, 1996-present; Senior Vice President and Portfolio
Manager of the Manager, January 5, 1996-present; President of the Rochester
Division of the Manager, January 4, 1996-present; President and Trustee of the
Fund, 1986-January 5, 1996; Portfolio Manager of the Fund, 1986-present;
President and Trustee of
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<PAGE>
Rochester Portfolio Series - Limited Term New York Municipal Fund, 1991-January
4, 1996; President and Trustee of Bond Fund Series - Oppenheimer Bond Fund for
Growth, 1986-January 4, 1996; President and Director of Rochester Tax Managed
Fund, Inc., 1985-1996; President and a Director, Fielding Management Company,
Inc. 1988-present; President and a Director, Rochester Fund Distributors, Inc.
1990-present; President and a Director, Rochester Capital Advisors, Inc.
1993-present; President and a Director, Rochester Fund Services, Inc.
1986-present.
ANDREW J. DONOHUE, SECRETARY; AGE: 46
Secretary of the Fund, Rochester Portfolio Series-Limited Term New York
Municipal Fund and Bond Fund Series-Oppenheimer Bond Fund for Growth, January 5,
1996-present; Executive Vice President and General Counsel of the Manager and
the Distributor; President and Director of Centennial Asset Management
Corporation, an investment advisory subsidiary of the Manager ("Centennial"); an
Officer of other Oppenheimer funds; formerly Senior Vice President and Associate
General Counsel of the Manager and the Distributor, partner in Kraft & McManimon
(a law firm), an Officer of First Investors Corporation (a broker-dealer) and
First Investors Management Company, Inc. (broker-dealer and investment adviser),
and a Director and an Officer of First Investors Family of Funds and First
Investors Life Insurance Company.
GEORGE C. BOWEN, TREASURER; AGE: 59
3410 South Galena Street Denver, Colorado 80231
Treasurer of the Fund, Rochester Portfolio Series-Limited Term New York
Municipal Fund and Bond Fund Series-Oppenheimer Bond Fund for Growth, January 5,
1996-present; Senior Vice President and Treasurer of the Manager; Vice President
and Treasurer of the Distributor and HarbourView; Senior Vice President,
Treasurer, Assistant Secretary and a Director of Centennial; Vice President,
Treasurer and Secretary of the Transfer Agent and Shareholder Financial
Services, ("SFSI") Inc., a transfer agent subsidiary of the Manager; an Officer
of other Oppenheimer funds.
ROBERT G. ZACK, ASSISTANT SECRETARY; AGE: 47
Assistant Secretary of the Fund, Rochester Portfolio Series-Limited Term New
York Municipal Fund and Bond Fund Series-Oppenheimer Bond Fund for Growth,
January 5 1996-present; Senior Vice President and Associate General Counsel of
the Manager; Assistant Secretary of the Agent and SFSI; an Officer of other
Oppenheimer funds.
ROBERT BISHOP, ASSISTANT TREASURER; AGE: 36
3410 South Galena Street, Denver, Colorado 80231
Assistant Treasurer of the Fund, Rochester Portfolio Series-Limited Term New
York Municipal Fund and Bond Fund Series-Oppenheimer Bond Fund for Growth,
January 5, 1996-present; Assistant Vice President of the Manager/Mutual Fund
Accounting; an Officer of other Oppenheimer funds; previously a Fund Controller
for the Manager, prior to which he was an Accountant for Yale & Seffinger, P.C.,
an accounting firm, and previously an Accountant and Commissions Supervisor for
Stuart James Company Inc., a broker-dealer.
SCOTT FARRAR, ASSISTANT TREASURER; AGE: 30
3410 South Galena Street, Denver, Colorado 80231
Assistant Treasurer of the Fund, Rochester Portfolio Series-Limited Term New
York Municipal Fund and Bond Fund Series-Oppenheimer Bond Fund for Growth,
January 5, 1996-present; Assistant Vice President of the Manager/Mutual Fund
Accounting; an Officer of other Oppenheimer funds; previously a Fund Controller
for the Manager, prior to which he was an International Mutual Fund Supervisor
for Brown Brothers Harriman & Co., a bank, and previously a Senior Fund
Accountant for State Street Bank & Trust Company.
ADELE CAMPBELL, ASSISTANT TREASURER; AGE: 32
350 Linden Oaks, Rochester, New York 14625
Assistant Treasurer of the Fund, Rochester Portfolio Series-Limited Term New
York Municipal Fund, and Bond Fund Series-Oppenheimer Bond Fund For Growth,
January 31, 1996-present and May 1, 1995-January 4, 1996; Assistant Vice
President of the Manager, January 5, 1996-present; Assistant Vice President,
Rochester Fund Services, Inc., January, 1994-January 1996; Assistant Manager,
Fund Accounting, Rochester Fund Services, Inc., June 1992-January, 1994; prior
to that, Audit Manager, Price Waterhouse, LLP.
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<PAGE>
-- REMUNERATION OF TRUSTEES. All officers of the Fund and Ms. Macaskill,
a Trustee and President, are officers or directors of the Manager and receive no
salary or fee from the Fund. The following table sets forth the aggregate
compensation received by the non-interested Trustees from the Fund during the
fiscal year ended December 31, 1995.
<TABLE>
<CAPTION>
Pension or
Retirement
Aggregate Benefits Estimated Total
Compensation Accrued as Annual Compensation
from the Part of Fund Benefits Upon From Fund
Name of Person Fund(1) Expenses(2) Retirement(2) Complex(3)
<S> <C> <C> <C> <C>
John Cannon ................ $19,900 $43,667 $13,500 $29,400
Paul Y. Clinton ............ $ 0 $ 0 $ 0 $ 0
Thomas W. Courtney ......... $ 0 $ 0 $ 0 $ 0
Lacy B. Herrmann ........... $ 0 $ 0 $ 0 $ 0
George Loft ................ $ 0 $ 0 $ 0 $ 0
</TABLE>
- -----------
(1) During the fiscal year ended December 31, 1995, only one of the Fund's
current trustees, John Cannon, served as a Trustee of the Fund. Four other
trustees received compensation from funds which are now part of the complex.
(2) The Board of Rochester Fund Municipals has adopted a Retirement Plan for
Independent Trustees of that Fund. Under the terms of the Retirement Plan, as
amended and restated on October 16, 1995, an eligible Trustee (an Independent
Trustee who has served as such for at least three years prior to retirement) may
receive an annual benefit equal to the product of $1,500 multiplied by the
number of years of service as an Independent Trustee up to a maximum of nine
years. The maximum annual benefit which may be paid to an eligible Trustee under
the Retirement Plan is $13,500. The Retirement Plan will be effective for all
eligible Trustees who have dates of retirement occurring on or after December
31, 1995. Subject to certain exceptions, retirement is mandatory at age 72 in
order to qualify for the Retirement Plan. Although the Retirement Plan permits
Eligible Trustees to elect early retirement at age 63, retirement benefits are
not payable to Eligible Trustees who elect early retirement until age 65. The
Retirement Plan provides that no Independent Trustee who is elected as a Trustee
of Rochester Fund Municipals after September 30, 1995, will be eligible to
receive benefits thereunder. Mr. Cannon is the only current Independent Trustee
who may be eligible to receive benefits under the Retirement Plan. The estimate
of annual benefits payable to Mr. Cannon under the Retirement Plan is based upon
the assumption that Mr. Cannon, who was first elected as a Trustee of the Fund
in 1992, will serve as an Independent Trustee for nine years.
(3) Includes compensation received during the fiscal year ended December 31,
1995, from all registered investment companies within the Fund Complex during
that year which consisted of the Fund Rochester Portfolio Series-Limited Term
New York Municipal Fund, Rochester Fund Series - The Bond Fund For Growth, and
Rochester Tax Managed Fund, Inc. On June 28, 1995, Rochester Fund Series - The
Bond Fund For Growth acquired all of the assets and assumed all of the
liabilities of Rochester Tax Managed Fund, Inc.
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<PAGE>
- --MAJOR SHAREHOLDERS. As of February 16, 1996, no person owned of record or was
known by the Fund to own beneficially 5% or more of outstanding voting
securities of the Fund except Merrill Lynch Pierce Fenner & Smith, 4800 Deer
Lake Drive, EFL 3, Jacksonville, Florida 32246 which was the record owner of 14%
of the outstanding shares of the Fund.
THE MANAGER AND ITS AFFILIATES. The Manager is wholly-owned by Oppenheimer
Acquisition Corp. ("OAC"), a holding company controlled by Massachusetts Mutual
Life Insurance Company. OAC is also owned in part by certain of the Manager's
directors and officers, some of whom serve as officers of the Fund and one of
whom (Ms. Macaskill) serves as a Trustee of the Fund. On January 4, 1996, the
manager acquired substantially all of the assets of Rochester Capital Advisers,
L.P. and Fielding Management Company, Inc. and was appointed investment adviser
to the Fund.
The Manager and the Fund have a Code of Ethics. It is designed to detect
and prevent improper personal trading by certain employees, including portfolio
managers, that would compete with or take advantage of the Fund's portfolio
transactions. Compliance with the Code of Ethics is carefully monitored and
strictly enforced by the Manager.
- --THE INVESTMENT ADVISORY AGREEMENT. The Investment Advisory Agreement between
the Manager and the Fund which was entered into on January 4, 1996 ("Advisory
Agreement") requires the Manager, at its expense, to provide the Fund with
adequate office space, facilities and equipment, and to provide and supervise
the activities of all administrative and clerical personnel required to provide
effective corporate administration for the Fund, including the compilation and
maintenance of records with respect to its operations, the preparation and
filing of specified reports, and the composition of proxy materials and
registration statements for continuous public sale of shares of the Fund. For
these services, the Manager will receive from the Fund an annual fee, computed
and payable monthly as a percentage of average daily net assets, as follows:
0.54% of average daily net assets up to $100 million; 0.52% of average daily net
assets on the next $150 million; 0.47% of average daily net assets on the next
$1,750 million; 0.46% of the next $3 billion; and 0.45% of average daily net
assets over $5 billion.
Expenses not expressly assumed by the Manager under the Advisory Agreement
or by the Distributor are paid by the Fund. The Advisory Agreement lists
examples of expenses paid by the Fund, the major categories of which relate to
interest, taxes, brokerage commissions, fees to certain Trustees, legal and
audit expenses, custodian and transfer agent expenses, share issuance costs,
certain printing and registration costs, and non-recurring expenses, including
litigation. For the Fund's fiscal year ended December 31, 1995, the management
fees paid by the Fund to its previous investment adviser, Rochester Capital
Advisors, L.P. were $9,128,887. During the fiscal year ended December 31, 1994,
management fees paid by the Fund consisted of $5,010,516 paid to Rochester
Capital Advisors, L.P. for the period from May 1, 1994 to December 31, 1994, and
$2,552,432 paid to Fielding Management Company, Inc. for the period from January
1, 1994 to April 30, 1994. During the fiscal year ended December 31, 1993, the
Fund paid investment advisory fees of $5,955,268 to Fielding Management Company,
Inc. Fielding Management Company, Inc. served as investment adviser to the Fund
from the commencement of its operations as an open-end investment company on May
15, 1986 through April 30, 1994. Rochester Capital Advisors, Inc. is the general
partner of Rochester Capital Advisors, L.P.
The Advisory Agreement contains no expense limitation. However,
independently of the Agreement, the Manager has voluntarily undertaken that the
total expenses of the Fund in any fiscal year (exclusive of
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<PAGE>
taxes, interest, brokerage commissions, and any extraordinary non-recurring
expenses, such as litigation costs) shall not exceed the most stringent state
regulatory limitation on Fund expenses applicable to the Fund. The payment of
the management fee will be reduced so that at no time will there be any accrued
but unpaid liability under the above expense limitation. the Manager reserves
the right to amend or terminate this expense limitation at any time.
The Advisory Agreement provides that in the absence of willful
misfeasance, bad faith, gross negligence or reckless disregard of its
obligations and duties thereunder, the Manager shall not be liable for any loss
sustained by reason of good faith errors or omissions on its part with respect
to any matters to which the Advisory Agreement relates. The Agreement permits
the Manager to act as investment adviser for any other person, firm or
corporation and to use the name "Oppenheimer" in connection with other
investment companies for which it may act as investment adviser. If the Manager
shall no longer act as investment adviser to the Fund, the right of the Fund to
use the name "Oppenheimer" as part of its name may be withdrawn.
- --THE DISTRIBUTOR. Under its General Distributor's Agreement with the Fund,
which was entered into on January 4, 1996, the Distributor acts as the Fund's
principal underwriter in the continuous public offering of the Fund's shares of
beneficial interest, but is not obligated to sell a specific number of shares.
Expenses normally attributable to sales (other than those paid under the
Distribution and Service Plans, but including advertising and the cost of
printing and mailing prospectuses, other than those furnished to existing
shareholders) are borne by the Distributor. During the Fund's fiscal years ended
December 31, 1993, 1994 and 1995, the aggregate amount of sales charge on sales
of the Fund's shares was $26,603,566, $16,039,947, and $8,868,211, respectively,
of which Rochester Fund Distributors, Inc., the Fund's previous principal
underwriter, retained $3,347,397, $2,015,030 and $1,086,283 in those respective
years. For additional information about distribution of the Fund's shares and
the payments made by the Fund to the Distributor in connection with such
activities, please refer to "The Fund's Service Plan," below.
--THE TRANSFER AGENT. OppenheimerFunds Services, the Fund's transfer agent,
a division of the Manager, serves as the Fund's Transfer Agent pursuant to a
Service Contract dated March 8, 1996. The Transfer Agent is responsible for
maintaining shareholder accounting records, and for shareholder servicing and
administrative functions. The Transfer Agent is compensated on the basis of a
fixed fee per account. The compensation paid by the Fund for such services under
a comparable arrangement with Rochester Fund Services, Inc., the Fund's previous
shareholder services agent, for the fiscal years ending December 31, 1993, 1994
and 1995 was $724,431, $1,152,456 and $1,267,856, respectively.
- --ACCOUNTING AND RECORDKEEPING SERVICES. The Manager also provides certain
accounting and recordkeeping services to the Fund pursuant to an Accounting and
Administration Agreement entered into on January 4, 1996. The services provided
pursuant to the Fund thereunder include the maintenance of general ledger
accounts and records relating to the business of the Fund in the form required
to comply with the Investment Company Act and the calculation of the daily net
asset value of the Fund. The compensation paid by the Fund for such services to
Rochester Fund Services, Inc. its previous shareholder services agent, for the
fiscal years ended December 31, 1993, 1994 and 1995 was $442,850, $556,700 and
$607,025.
BROKERAGE POLICIES OF THE FUND
BROKERAGE PROVISIONS OF THE INVESTMENT ADVISORY AGREEMENT. One of the duties of
the Manager under
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<PAGE>
the Advisory Agreement is to arrange the portfolio transactions for the
Fund. The Advisory Agreement contains provisions relating to the employment of
broker-dealers ("brokers") to effect the Fund's portfolio transactions. In doing
so, the Manager is authorized by the Advisory Agreement to employ
broker-dealers, including "affiliated" brokers, as that term is defined in the
Investment Company Act, as may, in its best judgment based on all relevant
factors, implement the policy of the Fund to obtain, at reasonable expense, the
"best execution" (prompt and reliable execution at the most favorable price
obtainable) of such transactions. the Manager need not seek competitive
commission bidding but is expected to minimize the commissions paid to the
extent consistent with the interest and policies of the Fund as established by
its Board of Trustees.
Under the Advisory Agreement, the Manager is authorized to select brokers
that provide brokerage and/or research services for the Fund and/or the other
accounts over which the Manager or its affiliates have investment discretion.
The commissions paid to such brokers may be higher than another qualified broker
would have charged if a good faith determination is made by the Manager that the
commission is fair and reasonable in relation to the services provided. Subject
to the foregoing considerations, the Manager may also consider sales of shares
of the Fund and other investment companies managed by the Manager or its
affiliates as a factor in the selection of brokers for the Fund's portfolio
transactions.
DESCRIPTION OF BROKERAGE PRACTICES FOLLOWED by the MANAGER. Subject to the
provisions of the Advisory Agreement and the procedures and rules described
above, allocations of brokerage are generally made by the Manager's portfolio
traders based upon recommendations from the Manager's portfolio managers. In
certain instances, portfolio managers may directly place trades and allocate
brokerage, also subject to the provisions of the Advisory Agreement and the
procedures and rules described above. In either case, brokerage is allocated
under the supervision of the Manager's executive officers. Transactions in
securities other than those for which an exchange is the primary market are
generally done with principals or market makers. As stated in the prospectus,
the portfolio securities of the Fund are generally traded on a net basis and, as
such, do not involve the payment of brokerage commissions. It is the policy of
the Manager to obtain the best net results in conducting portfolio transactions
for the Fund, taking into account such factors as price (including the
applicable dealer spread) and the firm's general execution capabilities. Where
more than one dealer is able to provide the most competitive price, both the
sale of Fund shares and the receipt of research may be taken into consideration
as factors in the selection of dealers to execute portfolio transactions for the
Fund. The transaction costs associated with such transactions consist primarily
of the payment of dealer and underwriter spreads. Brokerage commissions are paid
primarily for effecting transactions in listed securities and or for certain
fixed-income agency transactions, in the secondary market, otherwise only if it
appears likely that a better price or execution can be obtained. When possible,
concurrent orders to purchase or sell the same security by more than one of the
accounts managed by the Manager or its affiliates are combined. The transactions
effected pursuant to such combined orders are averaged as to price and allocated
in accordance with the purchase or sale orders actually placed for each account.
The research services provided by a particular broker may be useful in one
or more of the advisory accounts of the Manager and its affiliates. The research
services provided by brokers broaden the scope and supplement the research
activities of the Manager, by making available additional views for
consideration and comparisons. The Board of Trustees, including the
"independent" Trustees of the Fund (those Trustees of the Fund who are not
"interested persons" as defined in the Investment Company Act, and who have no
direct or indirect financial interest in the operation of the Advisory Agreement
or the Distribution Plans described below) annually reviews information
furnished by the Manager as to the commissions paid to
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brokers furnishing such services so that the Board may ascertain whether
the amount of such commissions was reasonably related to the value or benefit of
such services. The Fund did not incur costs for brokerage commissions in
connection with its portfolio transactions during the fiscal years ended
December 31, 1993, 1994 and 1995.
A change in securities held by the Fund is known as "portfolio
turnover". As portfolio turnover increases, the Fund can be expected to incur
brokerage commission expenses and transaction costs which will be borne by the
Fund. In any particular year, however, market conditions could result in
portfolio activity at a greater or lesser rate than anticipated. For the fiscal
years ended December 31, 1993, 1994, and 1995 the Fund's portfolio turnover
rates were and 18.27%, 34.39% and 14.59%, respectively.
PERFORMANCE OF THE FUND
YIELD AND TOTAL RETURN INFORMATION. As described in the Prospectus, from time to
time the "standardized yield," "dividend yield," "tax-equivalent yield,"
"average annual total return," "cumulative total return," "average annual total
return at net asset value" and "total return at net asset value" of an
investment in shares of the Fund may be advertised. An explanation of how these
total returns are calculated and the components of those calculations is set
forth below.
The Fund's advertisements of its performance data must, under applicable
rules of the Securities and Exchange Commission, include the average annual
total returns of the Fund for the 1, 5, and 10-year periods ending as of the
most recently-ended calendar quarter prior to the publication of the
advertisement. This enables an investor to compare the Fund's performance to the
performance of other funds for the same periods. However, a number of factors
should be considered before using such information as a basis for comparison
with other investments. An investment in the Fund is not insured; its returns
and share prices are not guaranteed and normally will fluctuate on a daily
basis. When redeemed, an investor's shares may be worth more or less than their
original cost. Returns for any given past period are not a prediction or
representation by the Fund of future returns.
- -- STANDARDIZED YIELDS
-- YIELD. The Fund's "yield" (referred to as "standardized yield") for a
given 30-day period is calculated using the following formula set forth in rules
adopted by the Securities and Exchange Commission that apply to all funds that
quote yields:
2-b 6
Standardized Yield = 2[( --- + 1) - 1]
cd
The symbols above represent the following factors:
a = dividends and interest earned during the 30-day period.
b = expenses accrued for the period (net of any expense reimbursements).
c = the average daily number of shares outstanding during the
30-day period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of the period,
adjusted for undistributed net investment income.
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The standardized yield for a 30-day period may differ from its yield for
any other period. The SEC formula assumes that the standardized yield for a
30-day period occurs at a constant rate for a six-month period and is annualized
at the end of the six-month period. This standardized yield is not based on
actual distributions paid by the Fund to shareholders in the 30-day period, but
is a hypothetical yield based upon the net investment income from the Fund's
portfolio investments calculated for that period. The standardized yield may
differ from the "dividend yield", described below. For the 30-day period ended
December 31, 1995, the standardized yields for the Fund's shares was 5.50%.
-- TAX-EQUIVALENT YIELD. The Fund's "tax-equivalent yield" adjusts the
Fund's current yield, as calculated above, by a stated combined Federal, state
and city tax rate. The tax-equivalent yield is based on a 30-day period, and is
computed by dividing the tax-exempt portion of the Fund's current yield (as
calculated above) by one minus a stated income tax rate and adding the result to
the portion (if any) of the Fund's current yield that is not tax exempt. The tax
equivalent yield may be used to compare the tax effects of income derived from
the Fund with income from taxable investments at the tax rates stated. The
Fund's tax-equivalent yield (after expense assumptions by the Manager) for the
30-day period ended December 31, 1995, for an individual New York City resident
in the 42.7% combined tax bracket was 9.6%.
-- DIVIDEND YIELD AND DISTRIBUTION RETURN. From time to time the Fund may
quote a "dividend yield" or a "distribution return". Dividend yield is based on
the dividends paid on shares of a class from dividends derived from net
investment income during a stated period. Distribution return includes dividends
derived from net investment income and from realized capital gains declared
during a stated period. Under those calculations, the dividends and/or
distributions for that class declared during a stated period of one year or less
(for example, 30 days) are added together, and the sum is divided by the maximum
offering price per share of that class on the last day of the period. When the
result is annualized for a period of less than one year, the "dividend yield" is
calculated as follows:
Dividend Yield Dividends of the Class
of the Class = ----------------------- / Number of Days (accrual period) X 365
Max. Offering Price of
the Class (last day of
period)
The maximum offering price includes the maximum front-end sales charge.
From time to time similar yield or distribution return calculations may
also be made using the net asset value (instead of its maximum offering price)
at the end of the period. The dividend yield for the 30-day period ended
December 31, 1995 were 5.66% and 5.89% when calculated at maximum offering price
and at net asset value, respectively.
- -- TOTAL RETURN INFORMATION
-- Average Annual Total Returns. The "average annual total return" is an
average annual compounded rate of return for each year in a specified number of
years. It is the rate of return based on the change in value of a hypothetical
initial investment of $1,000 ("P" in the formula below) held for a number of
years ("n") to achieve an Ending Redeemable Value ("ERV") of that investment,
according to the following formula:
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( ERV )(1/n)
(-----) -1 = Average Annual Total Return
( P )
-- CUMULATIVE TOTAL RETURNS. The cumulative "total return" calculation
measures the change in value of a hypothetical investment of $1,000 over an
entire period of years. Its calculation uses some of the same factors as average
annual total return, but it does not average the rate of return on an annual
basis. Cumulative total return is determined as follows:
ERV - P
------- = Total Return
P
In calculating total return, the current maximum sales charge of 4.0% (as a
percentage of the offering price) is deducted from the initial investment ("P")
(unless the return is shown at net asset value, as described below). Total
returns also assume that all dividends and capital gains distributions during
the period are reinvested to buy additional shares at net asset value per share,
and that the investment is redeemed at the end of the period. The "average
annual total returns" on an investment in shares of the Fund for the one and
five year periods ended December 31, 1995 and for the period from May 15, 1986
through December 31, 1995, were 13.83%, 8.44% and 8.37%, respectively. The
cumulative "total return" on shares of the Fund for the period from May 15, 1986
through December 31, 1995 was 116.0%.
-- TOTAL RETURNS AT NET ASSET VALUE. From time to time the Fund may also
quote an average annual total return at net asset value or a cumulative total
return at net asset value. Each is based on the difference in net asset value
per share at the beginning and the end of the period for a hypothetical
investment in shares of the Fund (without considering the front-end sales
charge) and takes into consideration the reinvestment of dividends and capital
gains distributions. The Fund's cumulative total return at net asset value for
the one year period ended December 31, 1995 and the period from May 15, 1986
through December 31, 1995 was 18.58% and 124.97%, respectively.
OTHER PERFORMANCE COMPARISONS. From time to time the Fund may publish the
ranking of its shares by Lipper Analytical Services, Inc. ("Lipper"), a
widely-recognized independent service. Lipper monitors the performance of
regulated investment companies, including the Fund, and ranks their performance
for various periods based on categories relating to investment objectives. The
performance of the Fund is ranked against (i) all other funds (excluding money
market funds) and (ii) all other New York municipal bond funds. The Lipper
performance rankings are based on total returns that include the reinvestment of
capital gain distributions and income dividends but do not take sales charges or
taxes into consideration.
From time to time the Fund may publish the ranking of its performance by
Morningstar, Inc., an independent mutual fund monitoring service that ranks
mutual funds, including the Fund, monthly in broad investment categories
(equity, taxable bond, municipal bond and hybrid) based on risk-adjusted
investment return. Investment return measures a fund's three, five and ten-year
average annual total returns (when
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available) in excess of 90-day U.S. Treasury bill returns after considering
sales charges and expenses. Risk reflects fund performance below 90-day U.S.
Treasury bill monthly returns. Risk and return are combined to produce star
rankings reflecting performance relative to the average fund in a fund's
category. Five stars is the "highest" ranking (top 10%), four stars is "above
average" (next 22.5%), three stars is "average" (next 35%), two stars is "below
average" (next 22.5%) and one star is "lowest" (bottom 10%). Morningstar ranks
the performance of the Fund in relation to that of other New York State
municipal bond funds. Rankings are subject to change.
The total return on an investment in the Fund may be compared with
performance for the same period of comparable indices, including but not limited
to The Bond Buyer Municipal Bond Index and the Lehman Brothers Municipal Long
Bond Index. The Bond Buyer Municipal Bond Index is an unmanaged index which
consists of 40 long-term municipal bonds. The index is based on price quotations
provided by six municipal bond dealer-to-dealer brokers. The Lehman Brothers
Municipal Bond Index is a broadly based, widely recognized unmanaged index of
municipal bonds. Whereas the Fund's portfolio comprises bonds principally from
New York State, the Indices are comprised of bonds from all 50 states and many
jurisdictions. Index performance reflects the reinvestment of income but does
not consider the effect of capital gains or transaction costs. Any other index
selected for comparison would be similar in composition to one of these two
indices.
Investors may also wish to compare the return on the Fund's shares to the
returns on fixed income investments available from banks and thrift
institutions, such as certificates of deposit, ordinary interest-paying checking
and savings accounts, and other forms of fixed or variable time deposits, and
various other instruments such as Treasury bills. However, the Fund's returns
and share price are not guaranteed by the FDIC or any other agency and will
fluctuate daily, while bank depository obligations may be insured by the FDIC
and may provide fixed rates of return, and Treasury bills are guaranteed as to
principal and interest by the U.S. government.
From time to time, the Fund's Adviser may publish rankings or ratings of
the Manager (or other service providers) or the investor services provided by
them to shareholders of the Oppenheimer funds, other than performance rankings
of the Oppenheimer funds themselves. Those ratings or rankings of
shareholder/investor services by third parties may compare the OppenheimerFunds'
services to those of other mutual fund families selected by the rating or
ranking services and may be based upon the opinions of the rating or ranking
service itself, based on its research or judgment, or based upon surveys of
investors, brokers, shareholders or others.
The performance of the Fund's shares may also be compared in publications
to (i) the performance of various market indices or to other investments for
which reliable performance data is available, and (ii) to averages, performance
rankings or other benchmarks prepared by recognized mutual fund statistical
services.
THE FUND'S SERVICE PLAN
The Fund has adopted a Service Plan under Rule 12b-1 of the Investment
Company Act, pursuant to which the Fund makes payments to the Distributor in
connection with the distribution and/or servicing of shares as described in the
Prospectus. The Service Plan permits the Fund to pay its Distributor a service
fee in connection with the distribution of shares of the Fund in an amount of up
to 0.25% per annum of the
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Fund's average daily net assets (the "Service Fee"). The Service Fee is
utilized to compensate broker-dealers and financial institutions, including the
Distributor (collectively, "Recipients"), for services performed and/or expenses
incurred in servicing shareholder accounts. Although the terms of the Service
Plan permit aggregate payments thereunder of up to 0.25% per annum of the Fund's
average daily net assets, the Board of Trustees of the Fund has approved
aggregate payments thereunder of only 0.15% per annum.
The Service Plan has been approved by a vote of (i) the Board of Trustees
of the Fund, including a majority of the "Independent Trustees", cast in person
at a meeting called for the purpose of voting on that Plan, and (ii) the holders
of a "majority of the outstanding voting securities" of the Fund (as defined in
the Investment Company Act). Unless terminated as described below, the Service
Plan will continue in effect from year to year but only as long as such
continuance is specifically approved at least annually by the Fund's Board of
Trustees, including the Independent Trustees, by a vote cast in person at a
meeting called for the purpose of voting on such continuance. The Service Plan
may be terminated at any time by the vote of a majority of the Independent
Trustees or by the vote of the holders of a "majority of the outstanding voting
securities" of the Fund (as defined in the Investment Company Act). The Service
Plan may not be amended to increase materially the amount of payments to be made
unless such amendment is approved by the holders of a "majority of the
outstanding voting securities" of the Fund (as defined in the Investment Company
Act).
While the Service Plan is in effect, the Treasurer of the Fund shall
provide written reports to the Fund's Board of Trustees at least quarterly for
its review, detailing the amount of all payments made pursuant to the Service
Plan, the identity of each Recipient that received any such payment, and the
purpose of the payments. Those reports will be subject to the review and
approval of the Independent Trustees in the exercise of their fiduciary duty.
The Service Plan further provides that while it is in effect, the selection or
replacement and nomination of those Trustees of the Fund who are not "interested
persons" of the Fund is committed to the discretion of the Independent Trustees.
This does not prevent the involvement of others in such selection and nomination
if the final decision as to any such selection or nomination is approved by a
majority of such Independent Trustees.
For the fiscal year ended December 31, 1995, payments under the Fund's
previous Distribution Plan, which was in effect during that year, totalled
$3,452,348, which consisted of Service Fee payments to Recipients of $3,007,088
and asset based sales charge payments of $445,260. The aggregate Service Fee
payments to Recipients included an amount of $54,519 paid to Rochester Fund
Distributors, Inc., the Fund's previous principal underwriter for its services
in maintaining shareholder accounts as to which it was the dealer of record and
an amount of $2,952,569 to broker dealers in 1995. The aggregate asset based
sales charge payments were paid to Rochester Fund Distributors, Inc. to
reimburse it for its expenditures as follows: printing and mailing of
prospectuses, $291,442; compensation to sales personnel, $140,460; and
advertising, 13,358. The Fund's The Fund's previous Distribution Plan was
amended, effective as of May 1, 1995, to eliminate the asset based sales charge
component of the Distribution Plan.
ABOUT YOUR ACCOUNT
HOW TO BUY SHARES
See How to Buy Shares in the Prospectus for a description of how shares of
the Fund are offered to the Public and how the excess of the public offering
price over the net amount invested is allocated to authorized dealers. The
Prospectus also describes several special purchase plans and methods by which
shares may be purchased at reduced sales loads, including certain classes of
persons who may purchase
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<PAGE>
shares at net asset value. As discussed in the Prospectus, a reduced sales
charge rate may be obtained for the purchase of shares under Right of
Accumulation and Letters of Intent because of the economies of sales efforts and
expenses realized by the Distributor, dealers and brokers making such sales. No
sales charge is imposed in certain circumstances described in the Prospectus
because the Distributor or dealer or broker incurs little or no selling
expenses. The term "immediate family" refers to one's spouse, children,
grandchildren, parents, grandparents, parents-in-law, brothers and sisters,
sons- and daughters-in-law, siblings, a sibling's spouse and a spouse's
siblings.
DETERMINATION OF NET ASSET VALUE PER SHARE. The net asset value per share of
shares of the Fund is determined as of the close of business of The New York
Stock Exchange on each day that the Exchange is open, by dividing the value of
the Fund's net assets attributable to that class by the number of shares of that
class outstanding. The Exchange normally closes at 4:00 P.M., New York time, but
may close earlier on some days (for example, in case of weather emergencies or
on days falling before a holiday). The Exchanges most recent annual holiday
schedule (which is subject to change) states that it will close on New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day. It may also close on other days. Trading may
occur in debt securities and in foreign securities when the Exchange is closed
(including weekends and holidays). Because the Fund's net asset value will not
be calculated on those days, the Fund's net asset value per share may be
significantly affected on such days when shareholders may not purchase or redeem
shares.
The Fund's Board of Trustees has established procedures for the valuation
of the Fund's securities, generally as follows: (i) equity securities traded on
a securities exchange or on the Nasdaq National Market System ("Nasdaq") are
valued at the last reported sale prices on their primary exchange or Nasdaq that
day (or, in the absence of sales that day, at values based on the last sale
prices of the preceding trading day, or closing bid and asked prices); (ii)
securities actively traded on a foreign securities exchange are valued at the
last sales price available to the pricing service approved by the Fund's Board
of Trustees or to the Manager as reported by the principal exchange on which the
security is traded; (iii) unlisted foreign securities or listed foreign
securities not actively traded are valued as in (i) above, if available, or at
the mean between "bid" and "asked" prices obtained from active market makers in
the security on the basis of reasonable inquiry; (iv) long-term debt securities
having a remaining maturity in excess of 60 days are valued at the mean between
the "bid" and "asked" prices determined by a portfolio pricing service approved
by the Fund's Board of Trustees or obtained from active market makers in the
security on the basis of reasonable inquiry; (v) debt instruments having a
maturity of more than one year when issued, and non-money market type
instruments having a maturity of one year or less when issued, which have a
remaining maturity of 60 days or less are valued at the mean between "bid" and
"asked" prices determined by a pricing service approved by the Fund's Board of
Trustees or obtained from active market makers in the security on the basis of
reasonable inquiry; (vi) money market-type debt securities having a maturity of
less than one year when issued that having a remaining maturity of 60 days or
less are valued at cost, adjusted for amortization of premiums and accretion of
discounts; and (vii) securities (including restricted securities) not having
readily-available market quotations are valued at fair value under the Board's
procedures.
In the case of Municipal Securities, when last sale information is not
generally available, such pricing procedures may include "matrix" comparisons to
the prices for comparable instruments on the basis of quality, yield, maturity,
and other special factors involved (such as the tax-exempt status of the
interest paid by Municipal Securities). The Fund's Board of Trustees has
authorized the Manager to employ a pricing service, bank or broker-dealer
experienced in such matters to price any of the types of securities described
above. The Trustees will monitor the accuracy of such pricing services by
comparing prices used for portfolio evaluation to actual sales prices of
selected securities.
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ACCOUNTLINK. When shares are purchased through AccountLink, each purchase must
be at least $25.00. Shares will be purchased on the regular business day the
Distributor is instructed to initiate the Automated Clearing House transfer to
buy shares. Dividends will begin to accrue on shares purchased by the proceeds
of ACH transfers on the business day the Fund receives Federal Funds for the
purchase through the ACH system before the close of The New York Stock Exchange.
The Exchange normally closes at 4:00 P.M., but may close earlier on certain
days. If Federal Funds are received on a business day after the close of the
Exchange, the shares will be purchased and dividends will begin to accrue on the
next regular business day. The proceeds of ACH transfers are normally received
by the Fund 3 days after the transfers are initiated. The Distributor and the
Fund are not responsible for any delays in purchasing shares resulting from
delays in ACH transmissions.
REDUCED SALES CHARGES. See "How to Purchase Shares" in the Prospectus for a
description of how shares are offered to the public and how the excess of public
offering price over the net amount invested, if any, is allocated to authorized
dealers. The Prospectus describes several special purchase plans and methods by
which shares may be purchased. As discussed in the Prospectus, a reduced sales
charge rate may be obtained for shares under Right of Accumulation and Letters
of Intent because of the economies of sales efforts and expenses realized by the
Distributor, dealers and brokers making such sales. No sales charge is imposed
in certain circumstances described in the Prospectus because the Distributor or
dealer or broker incurs little or no selling expenses. The term "immediate
family" refers to one's spouse, children, grandchildren, parents, grandparents,
parents-in-law, brothers and sisters, sons-and daughters-in-law, siblings, a
sibling's spouse and a spouse's siblings.
-- THE OPPENHEIMER FUNDS. The Oppenheimer funds are those mutual funds for
which the Distributor acts as the distributor or the sub-distributor and include
the following:
Oppenheimer Bond Fund for Growth
Oppenheimer Tax-Free Bond Fund
Oppenheimer New York Tax-Exempt Fund
Oppenheimer California Tax-Exempt Fund
Oppenheimer Intermediate Tax-Exempt Fund
Oppenheimer Insured Tax-Exempt Fund
Oppenheimer Main Street California Tax-Exempt Fund
Oppenheimer Florida Tax-Exempt Fund
Oppenheimer Pennsylvania Tax-Exempt Fund
Oppenheimer New Jersey Tax-Exempt Fund
Oppenheimer Fund
Oppenheimer Discovery Fund
Oppenheimer Target Fund
Oppenheimer Growth Fund
Oppenheimer Equity Income Fund
Oppenheimer Value Stock Fund
Oppenheimer Asset Allocation Fund
Oppenheimer Total Return Fund, Inc.
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Oppenheimer Main Street Income & Growth Fund
Oppenheimer High Yield Fund
Oppenheimer Champion Income Fund
Oppenheimer U.S. Government Trust
Oppenheimer Limited-Term Government Fund
Oppenheimer Global Fund
Oppenheimer Global Emerging Growth Fund
Oppenheimer Global Growth & Income Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Strategic Income Fund
Oppenheimer Strategic Income & Growth Fund
Oppenheimer International Bond Fund
Oppenheimer Enterprise Fund
Oppenheimer Quest Growth & Income Value Fund
Oppenheimer Quest Officers Value Fund
Oppenheimer Quest Opportunity Value Fund
Oppenheimer Quest Small Cap Fund
Oppenheimer Quest Value Fund, Inc.
Oppenheimer Quest Global Value Fund, Inc.
Rochester Fund Municipals
Rochester Portfolio Series--Limited Term New York Municipal Fund
and the following "Money Market Funds":
Oppenheimer Money Market Fund, Inc.
Oppenheimer Cash Reserves
Centennial Money Market Trust
Centennial Tax Exempt Trust
Centennial Government Trust
Centennial New York Tax Exempt Trust
Centennial California Tax Exempt Trust
Centennial America Fund, L.P.
Daily Cash Accumulation Fund, Inc.
There is an initial sales charge on the purchase of Class A shares of each
of the Oppenheimer funds except Money Market Funds (under certain circumstances
described herein, redemption proceeds of Money Market Fund shares may be subject
to a contingent deferred sales charge).
-- LETTERS OF INTENT. A Letter of Intent (referred to as a "Letter") is an
investor's statement in writing to the Distributor of the intention to purchase
shares of the Fund (and Class A Shares of other Oppenheimer funds) during a
13-month period (the "Letter of Intent period"), which may, at the investor's
request, include purchases made up to 90 days prior to the date of the Letter.
The Letter states the investor's intention to make the aggregate amount of
purchases of shares which, when added to the investor's holdings of shares of
those funds, will equal or exceed the amount specified in the Letter. Purchases
made by reinvestment of dividends or distributions of capital gains and
purchases made at net asset value without sales charge do not count toward
satisfying the amount of the Letter. A Letter enables an investor to count the
shares of the Fund and the Class A Shares of other Oppenheimer funds purchased
under the Letter to obtain the reduced sales charge rate on purchases of shares
of the Fund (and Class A Shares other Oppenheimer funds) that applies under the
Right of Accumulation to current purchases of such shares. Each purchase of
shares of the Fund and Class A Shares under the Letter will be made at the
public offering price (including the sales charge) that applies to a single
lump-sum purchase of shares in the amount intended to be purchased under the
Letter.
In submitting a Letter, the investor makes no commitment to purchase
shares, but if the investor's purchases of shares within the Letter of Intent
period, when added to the value (at offering
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price) of the investor's holdings of shares on the last day of that period, do
not equal or exceed the intended purchase amount, the investor agrees to pay the
additional amount of sales charge applicable to such purchases, as set forth in
"Terms of Escrow," below (as those terms may be amended from time to time). The
investor agrees that shares equal in value to 5% of the intended purchase amount
will be held in escrow by the Transfer Agent subject to the Terms of Escrow.
Also, the investor agrees to be bound by the terms of the Prospectus, this
Statement of Additional Information and the Application used for such Letter of
Intent, and if such terms are amended, as they may be from time to time by the
Fund, that those amendments will apply automatically to existing Letters of
Intent.
For purchases of shares of the Fund and other Oppenheimer funds by
OppenheimerFunds prototype 401(k) plans under a Letter of Intent, the Transfer
Agent will not hold shares in escrow. If the intended purchase amount under the
Letter entered into by an OppenheimerFunds prototype 401(k) plan is not
purchased by the plan by the end of the Letter of Intent period, there will be
no adjustment of commissions paid to the broker-dealer or financial institution
of record for accounts held in the name of that plan.
If the total eligible purchases made during the Letter of Intent period do
not equal or exceed the intended purchase amount, the commissions previously
paid to the dealer of record for the account and the amount of sales charge
retained by the Distributor will be adjusted to the rates applicable to actual
purchases. If total eligible purchases during the Letter of Intent period exceed
the intended purchase amount and exceed the amount needed to qualify for the
next sales charge rate reduction set forth in the applicable prospectus, the
sales charges paid will be adjusted to the lower rate, but only if and when the
dealer returns to the Distributor the excess of the amount of commissions
allowed or paid to the dealer over the amount of commissions that apply to the
actual amount of purchases. The excess commissions returned to the Distributor
will be used to purchase additional shares for the investor's account at the net
asset value per share in effect on the date of such purchase, promptly after the
Distributor's receipt thereof.
In determining the total amount of purchases made under a Letter, shares
redeemed by the investor prior to the termination of the Letter of Intent period
will be deducted. It is the responsibility of the dealer of record and/or the
investor to advise the Distributor about the Letter in placing any purchase
orders for the investor during the Letter of Intent period. All of such
purchases must be made through the Distributor.
-- Terms of Escrow That Apply to Letters of Intent.
1. Out of the initial purchase (or subsequent purchases if necessary) made
pursuant to a Letter, shares of the Fund equal in value up to 5% of the intended
purchase amount specified in the Letter shall be held in escrow by the Transfer
Agent. For example, if the intended purchase amount is $50,000, the escrow shall
be shares valued in the amount of $2,500 (computed at the public offering price
adjusted for a $50,000 purchase). Any dividends and capital gains distributions
on the escrowed shares will be credited to the investor's account.
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2. If the intended purchase amount specified under the Letter is completed
within the thirteen-month Letter of Intent period, the escrowed shares will be
promptly released to the investor.
3. If, at the end of the thirteen-month Letter of Intent period the total
purchases pursuant to the Letter are less than the intended purchase amount
specified in the Letter, the investor must remit to the Distributor an amount
equal to the difference between the dollar amount of sales charges actually paid
and the amount of sales charges which would have been paid if the total amount
purchased had been made at a single time. Such sales charge adjustment will
apply to any shares redeemed prior to the completion of the Letter. If such
difference in sales charges is not paid within twenty days after a request from
the Distributor or the dealer, the Distributor will, within sixty days of the
expiration of the Letter, redeem the number of escrowed shares necessary to
realize such difference in sales charges. Full and fractional shares remaining
after such redemption will be released from escrow. If a request is received to
redeem escrowed shares prior to the payment of such additional sales charge, the
sales charge will be withheld from the redemption proceeds.
4. By signing the Letter, the investor irrevocably constitutes and appoints
the Transfer Agent as attorney-in-fact to surrender for redemption any or all
escrowed shares.
5. The shares eligible for purchase under the Letter (or the holding of
which may be counted toward completion of a Letter) include (a) Class A shares
sold with a front-end sales charge or subject to a Class A contingent deferred
sales charge, (b) Class B shares of other Oppenheimer funds acquired subject to
a contingent deferred sales charge, and (c) Class A shares or Class B shares
acquired in exchange for either (i) Class A shares of one of the other
Oppenheimer funds that were acquired subject to a Class A initial or contingent
deferred sales charge or (ii) Class B shares of one of the other Oppenheimer
funds that were acquired subject to a contingent deferred sales charge.
6. Shares held in escrow hereunder will automatically be exchanged for
shares of another fund to which an exchange is requested, as described in the
section of the Prospectus entitled "How to Exchange Shares," and the escrow will
be transferred to that other fund.
ASSET BUILDER PLANS. To establish an Asset Builder Plan from a bank account, a
check (minimum $25) for the initial purchase must accompany the application.
Shares purchased by Asset Builder Plan payments from bank accounts are subject
to the redemption restrictions for recent purchases described in "How To Sell
Shares," in the Prospectus. Asset Builder Plans also enable shareholders of
Oppenheimer Cash Reserves to use those accounts for monthly automatic purchases
of shares of up to four other Oppenheimer funds.
There is a front-end sales charge on the purchase of certain Oppenheimer
funds, or a contingent deferred sales charge may apply to shares purchased by
Asset Builder payments. An application should be obtained from the Distributor,
completed and returned, and a prospectus of the selected fund(s) should be
obtained from the Distributor or your financial advisor before initiating Asset
Builder payments. The amount of the Asset Builder investment may be changed or
the automatic investments may be terminated at any time by writing to the
Transfer Agent. A reasonable period (approximately 15 days) is required after
the Transfer Agent's receipt of such instructions to implement them. The Fund
reserves the right to amend, suspend, or discontinue
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<PAGE>
offering such plans at any time without prior notice.
CANCELLATION OF PURCHASE ORDERS. Cancellation of purchase orders for the Fund's
shares (for example, when a purchase check is returned to the Fund unpaid)
causes a loss to be incurred when the net asset value of the Fund's shares on
the cancellation date is less than on the purchase date. That loss is equal to
the amount of the decline in the net asset value per share multiplied by the
number of shares in the purchase order. The investor is responsible for that
loss. If the investor fails to compensate the Fund for the loss, the Distributor
will do so. The Fund may reimburse the Distributor for that amount by redeeming
shares from any account registered in that investor's name, or the Fund or the
Distributor may seek other redress.
HOW to SELL SHARES
Information on how to sell shares of the Fund is stated in the Prospectus.
The information below supplements the terms and conditions for redemptions set
forth in the Prospectus.
-- INVOLUNTARY REDEMPTIONS. The Fund's Board of Trustees has the right
to cause the involuntary redemption of the shares held in any account if the
aggregate net asset value of those shares is less than $200 or such lesser
amount as the Board may fix. The Board of Trustees will not cause the
involuntary redemption of shares in an account if the aggregate net asset value
of the shares has fallen below the stated minimum solely as a result of market
fluctuations. Should the Board elect to exercise this right, it may also fix, in
accordance with the Investment Company Act, the requirements for any notice to
be given to the shareholders in question (not less than 30 days), or the Board
may set requirements for granting permission to the Shareholder to increase the
investment, and set other terms and conditions so that the shares would not be
involuntarily redeemed.
REINVESTMENT PRIVILEGE. Within six months of a redemption, a shareholder may
reinvest all or part of the redemption proceeds at net asset value as described
herein. The reinvestment may be made without sales charge only in shares of the
Fund or in Class A Shares any of the other Oppenheimer funds into which shares
of the Fund are exchangeable as described below, at the net asset value next
computed after the Transfer Agent receives the reinvestment order. The
shareholder must ask the Distributor for that privilege at the time of
reinvestment. Any capital gain that was realized when the shares were redeemed
is taxable, and reinvestment will not alter any capital gains tax payable on
that gain. If there has been a capital loss on the redemption, some or all of
the loss may not be tax deductible, depending on the timing and amount of the
reinvestment. Under the Internal Revenue Code, if the redemption proceeds of
Fund shares on which a sales charge was paid are reinvested in shares of the
Fund or another of the
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<PAGE>
Oppenheimer funds within 90 days of payment of the sales charge, the
shareholder's basis in the shares of the Fund that were redeemed may not include
the amount of the sales charge paid. That would reduce the loss or increase the
gain recognized from the redemption. However, in that case the sales charge
would be added to the basis of the shares acquired by the reinvestment of the
redemption proceeds. The Fund may amend, suspend or cease offering this
reinvestment privilege at any time as to shares redeemed after the date of such
amendment, suspension or cessation.
SPECIAL ARRANGEMENTS FOR REPURCHASE OF SHARES FROM DEALERS AND BROKERS. The
Distributor is the Fund's agent to repurchase its shares from authorized dealers
or brokers. The repurchase price per share will be the net asset value next
computed after the Distributor receives the order placed by the dealer or
broker, except that if the Distributor receives a repurchase order from a dealer
or broker after the close of The New York Stock Exchange on a regular business
day, it will be processed at that day's net asset value if the order was
received by the dealer or broker from its customers prior to the time the
Exchange closes (normally, that is 4:00 P.M., but may be earlier on some days)
and the order was transmitted to and received by the Distributor prior to its
close of business that day (normally 5:00 P.M.). Ordinarily, for accounts
redeemed by a broker-dealer under this procedure, payment will be made within
three business days after the shares have been redeemed upon the Distributor's
receipt the required redemption documents in proper form, with the signature(s)
of the registered owners guaranteed on the redemption document as described in
the Prospectus.
AUTOMATIC WITHDRAWAL AND EXCHANGE PLANS. Investors owning shares of the Fund
valued at $5,000 or more can authorize the Transfer Agent to redeem shares
(minimum $50) automatically on a monthly, quarterly, semi-annual or annual basis
under an Automatic Withdrawal Plan. Shares will be redeemed three business days
prior to the date requested by the shareholder for receipt of the payment.
Automatic withdrawals of up to $1,500 per month may be requested by telephone if
payments are to be made by check payable to all shareholders of record and sent
to the address of record for the account (and if the address has not been
changed within the prior 30 days). Required minimum distributions from
OppenheimerFunds-sponsored retirement plans may not be arranged on this basis.
Payments are normally made by check, but shareholders having AccountLink
privileges (see "How To Buy Shares") may arrange to have Automatic Withdrawal
Plan payments transferred to the bank account designated on the OppenheimerFunds
New Account Application or signature-guaranteed instructions. The Fund cannot
guarantee receipt of a payment on the date requested and reserves the right to
amend, suspend or discontinue offering such plans at any time without prior
notice.
By requesting an Automatic Withdrawal or Exchange Plan, the shareholder
agrees to the terms and conditions applicable to such plans, as stated below and
in the provisions of the OppenheimerFunds Application relating to such Plans, as
well as the Prospectus. These provisions may be amended from time to time by the
Fund and/or the Distributor. When adopted, such amendments will automatically
apply to existing Plans.
-- AUTOMATIC EXCHANGE PLANS. Shareholders can authorize the Transfer Agent
(on the OppenheimerFunds Application or signature-guaranteed instructions) to
exchange a pre-determined amount of shares of the Fund for shares (of the same
class) of other Oppenheimer funds automatically on a monthly, quarterly,
semi-annual or annual basis under an Automatic Exchange
-40-
<PAGE>
Plan. The minimum amount that may be exchanged to each other fund account is
$25. Exchanges made under these plans are subject to the restrictions that apply
to exchanges as set forth in "How to Exchange Shares" in the Prospectus and
below in this Statement of Additional Information.
-- AUTOMATIC WITHDRAWAL PLANS. Fund shares will be redeemed as necessary to
meet withdrawal payments. Shares acquired without a sales charge will be
redeemed first and shares acquired with reinvested dividends and capital gains
distributions will be redeemed next, followed by shares acquired with a sales
charge, to the extent necessary to make withdrawal payments. Depending upon the
amount withdrawn, the investor's principal may be depleted. Payments made under
withdrawal plans should not be considered as a yield or income on your
investment.
The Transfer Agent will administer the investor's Automatic Withdrawal Plan
(the "Plan") as agent for the investor (the "Planholder") who executed the Plan
authorization and application submitted to the Transfer Agent. The Transfer
Agent and the Fund shall incur no liability to the Planholder for any action
taken or omitted by the Transfer Agent in good faith to administer the Plan.
Certificates will not be issued for shares of the Fund purchased for and held
under the Plan, but the Transfer Agent will credit all such shares to the
account of the Planholder on the records of the Fund. Any share certificates
held by a Planholder may be surrendered unendorsed to the Transfer Agent with
the Plan application so that the shares represented by the certificate may be
held under the Plan.
For accounts subject to Automatic Withdrawal Plans, distributions of
capital gains must be reinvested in shares of the Fund, which will be done at
net asset value without a sales charge. Dividends on shares held in the account
may be paid in cash or reinvested.
Redemptions of shares needed to make withdrawal payments will be made at
the net asset value per share determined on the redemption date. Checks or
AccountLink payments of the proceeds of Plan withdrawals will normally be
transmitted three business days prior to the date selected for receipt of the
payment (receipt of payment on the date selected cannot be guaranteed),
according to the choice specified in writing by the Planholder.
The amount and the interval of disbursement payments and the address to
which checks are to be mailed or AccountLink payments are to be sent may be
changed at any time by the Planholder by writing to the Transfer Agent. The
Planholder should allow at least two weeks' time in mailing such notification
for the requested change to be put in effect. The Planholder may, at any time,
instruct the Transfer Agent by written notice (in proper form in accordance with
the requirements of the then-current Prospectus of the Fund) to redeem all, or
any part of, the shares held under the Plan. In that case, the Transfer Agent
will redeem the number of shares requested at the net asset value per share in
effect in accordance with the Fund's usual redemption procedures and will mail a
check for the proceeds to the Planholder.
The Plan may be terminated at any time by the Planholder by writing to the
Transfer Agent. A Plan may also be terminated at any time by the Transfer Agent
upon receiving directions to that effect from the Fund. The Transfer Agent will
also terminate a Plan upon receipt of evidence satisfactory to it of the death
or legal incapacity of the Planholder. Upon termination of a Plan by the
Transfer Agent or the Fund, shares that have not been redeemed from the account
will be held in uncertificated form in the name of the Planholder, and the
account will continue as a dividend-reinvestment, uncertificated account unless
and until proper instructions are received from the
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<PAGE>
Planholder or his or her executor or guardian, or other authorized person.
To use shares held under the Plan as collateral for a debt, the Planholder
may request issuance of a portion of the shares in certificated form. Upon
written request from the Planholder, the Transfer Agent will determine the
number of shares for which a certificate may be issued without causing the
withdrawal checks to stop because of exhaustion of uncertificated shares needed
to continue payments. However, should such uncertificated shares become
exhausted, Plan withdrawals will terminate.
If the Transfer Agent ceases to act as transfer agent for the Fund, the
Planholder will be deemed to have appointed any successor transfer agent to act
as agent in administering the Plan.
HOW to EXCHANGE SHARES
As stated in the Prospectus, shares of a particular class of Oppenheimer
funds having more than one class of shares may be exchanged only for shares of
the same class of other Oppenheimer funds. Shares of the Oppenheimer funds that
have a single class without a class designation are deemed "Class A Shares" for
this purpose. All of the Oppenheimer funds offer Class A Shares. A list showing
which funds offer which class can be obtained by calling a service
representative at 1-800-525-7048. Upon the exchange of shares of the Fund for
Class A Shares of another Oppenheimer fund, those shares acquired upon exchange
may not subsequently be exchanged (1) for shares of the Fund unless the original
exchange involved an exchange of shares of the Fund for shares of Class A Shares
of Limited Term New York Municipal Fund, Class A Shares of Oppenheimer Money
Market Fund, Inc. or Class A Shares of Oppenheimer Cash Reserves or (2) for
Class A Shares of Limited Term New York Municipal Fund unless the original
exchange involved an exchange of shares of the Fund for Class A Shares of either
Oppenheimer Money Market Fund, Inc. or Oppenheimer Cash Reserves.
Class A Shares of Oppenheimer funds may be exchanged at net asset value for
shares of any Money Market Fund. Shares of any Money Market Fund purchased
without a sales charge may be exchanged for shares of Oppenheimer funds offered
with a sales charge upon payment of the sales charge (or, if applicable, may be
used to purchase shares of Oppenheimer funds subject to a contingent deferred
sales charge). However, shares of Oppenheimer Money Market Fund, Inc. purchased
with the redemption proceeds of shares of other mutual funds (other than funds
managed by the Manager or its subsidiaries) redeemed within the 12 months prior
to that purchase may subsequently be exchanged for shares of other Oppenheimer
funds without being subject to an initial or contingent deferred sales charge,
whichever is applicable. To qualify for that privilege, the investor or the
investor's dealer must notify the Distributor of eligibility for this privilege
at the time the shares of Oppenheimer Money Market Fund, Inc. are purchased,
and, if requested, must supply proof of entitlement to this privilege. No
contingent deferred sales charge is imposed on exchanges of shares of either
class purchased subject to a contingent deferred sales charge. However, when
Class A Shares acquired by exchange of Class A Shares of other Oppenheimer funds
purchased subject to a Class A contingent deferred sales charge are redeemed
within 18 months of the end of the calendar month of the initial purchase of the
exchanged Class A Shares, the Class A contingent deferred sales charge is
imposed on the redeemed shares (see "Class A Contingent Deferred Sales Charge"
in the Prospectus).
The Fund reserves the right to reject telephone or written exchange
requests submitted in bulk by anyone on behalf of 10 or more accounts. The Fund
may accept requests for exchanges of up to
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50 accounts per day from representatives of authorized dealers that qualify for
this privilege. In connection with any exchange request, the number of shares
exchanged may be less than the number requested if the exchange or the number
requested would include shares subject to a restriction cited in the Prospectus
or this Statement of Additional Information or would include shares covered by a
share certificate that is not tendered with the request. In those cases, only
the shares available for exchange without restriction will be exchanged.
When exchanging shares by telephone, a shareholder must either have an
existing account in, or obtain and acknowledge receipt of a prospectus of, the
fund to which the exchange is to be made. For full or partial exchanges of an
account made by telephone, any special account features such as Asset Builder
Plans, Automatic Withdrawal Plans, Checkwriting, if available, and retirement
plan contributions will be switched to the new account unless the Transfer Agent
is instructed otherwise. If all telephone lines are busy (which might occur, for
example, during periods of substantial market fluctuations), shareholders might
not be able to request exchanges by telephone and would have to submit written
exchange requests.
Shares to be exchanged are redeemed on the regular business day the
Transfer Agent receives an exchange request in proper form (the "Redemption
Date"). Normally, shares of the fund to be acquired are purchased on the
Redemption Date, but such purchases may be delayed by either fund up to five
business days if it determines that it would be disadvantaged by an immediate
transfer of the redemption proceeds. The Fund reserves the right, in its
discretion, to refuse any exchange request that may disadvantage it (for
example, if the receipt of multiple exchange requests from a dealer might
require the disposition of portfolio securities at a time or at a price that
might be disadvantageous to the Fund).
The different Oppenheimer funds available for exchange have different
investment objectives, policies and risks, and a shareholder should assure that
the Fund selected is appropriate for his or her investment and should be aware
of the tax consequences of an exchange. For federal income tax purposes, an
exchange transaction is treated as a redemption of shares of one fund and a
purchase of shares of another. "Reinvestment Privilege," above, discusses some
of the tax consequences of reinvestment of redemption proceeds in such cases.
The Fund, the Distributor, and the Transfer Agent are unable to provide
investment, tax or legal advice to a shareholder in connection with an exchange
request or any other investment transaction.
DIVIDENDS, CAPITAL GAINS AND TAXES
DIVIDENDS AND DISTRIBUTIONS. Dividends will be payable on shares held of record
at the time of the previous determination of net asset value. However, daily
dividends on newly purchased shares will not be declared or paid until such time
as Federal Funds (funds credited to a member bank's account at the Federal
Reserve Bank) are available from the purchase payment for such shares. Normally,
purchase checks received from investors are converted to Federal Funds on the
next business day. If all shares in an account are redeemed, all dividends
accrued on shares in the account will be paid together with the redemption
proceeds. Dividends will be declared on shares repurchased by a dealer or broker
for three business days following the trade date (i.e., to and including the day
prior to settlement of the repurchase).
Dividends, distributions and the proceeds of the redemption of Fund shares
represented by checks returned to the Transfer Agent by the Postal Service as
undeliverable will be invested in
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shares of Oppenheimer Money Market Fund, Inc., as promptly as possible after the
return of such checks to the Transfer Agent, in order to enable the investor to
earn a return on otherwise idle funds.
TAX STATUS OF THE FUND'S DIVIDENDS AND DISTRIBUTIONS. The Federal tax treatment
of the Fund's dividends and distributions is explained in the Prospectus under
the caption Dividends, Distributions and Taxes. In order to continue to qualify
for treatment as a regulated investment company ("RIC") under the Code, the Fund
must distribute to its shareholders for each taxable year at least 90% of the
sum of its investment company taxable income (consisting generally of taxable
net investment income and net short-term capital gain) plus its interest income
excludable from gross income under Section 103(a) of the Code ("tax-exempt
income") and must meet several additional requirements. These requirements
include the following: (1) the Fund must derive at least 90% of its gross income
each taxable year from dividends, interest and payments with respect to
securities loans and gains from the sale or other disposition of securities, or
other income (including gains from options) derived with respect to its business
of investing in securities ("Income Requirement"); (2) the Fund must derive less
than 30% of its gross income each taxable year from the sale or other
disposition of securities or options that were held for less than three months
("Short-Short Limitation"); and (3) at the close of each quarter of the Fund's
taxable year, (i) at least 50% of the value of its total assets must be
represented by cash and cash items, U.S. Government securities, securities of
other RICs and other securities that are limited, in respect of any one issuer,
to an amount that does not exceed 5% of the value of the Fund's total assets and
does not represent more than 10% of the issuer's outstanding voting securities,
and (ii) not more than 25% of the value of its total assets may be invested in
securities (other than U.S. Government securities or the securities of other
RICs) of any one issuer.
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<PAGE>
Dividends paid by the fund will qualify as exempt-interest dividends, and
thus will be excludable from gross income by its shareholders, if the Fund
satisfied the additional requirement that, at the close of each quarter of its
taxable year, at least 50% of the value of its total assets consists of
securities the interest on which is tax-exempt income; the Fund intends to
continue to satisfy this requirement. The aggregate exempt-interest dividends
may not be greater than the excess of the Fund's tax-exempt income over certain
amounts disallowed as deductions. The shareholders' treatment of dividends from
the Fund under local and state income tax laws may differ from the treatment
thereof under the Code.
As noted in the Prospectus, the Fund annually reports to its shareholders
regarding the amounts and status of distributions paid during the year. Such
report allocates dividends among tax-exempt, taxable and alternative minimum
taxable income in approximately the same proportions as they bear to the Fund's
total income for the year. Accordingly, income derived from each of these
sources by the Fund in any particular distribution period may vary substantially
from the allocation reported to shareholders annually. The proportion of
dividends that constitute taxable income will depend on the relative amounts of
assets invested in taxable securities, the yield relationships between taxable
and tax-exempt securities, and the period of time for which such securities are
held.
Because the taxable portion of the Fund's investment income consists
primarily of interest and income from options transactions, its dividends,
whether or not treated as "exempt-interest dividends", generally will not
qualify for the dividends-received deduction available to corporations.
Dividends and other distributions declared by the Fund, and payable to
shareholders of record on a date, in the last quarter of any calendar year, are
deemed to have been paid by the Fund and received by the shareholders on
December 31 of that year if the distributions are paid by the Fund during the
following January. Accordingly, those distributions will be taxed to
shareholders for the year in which that December 31 falls.
Interest on indebtedness incurred or continued by shareholders to purchase
or carry shares of the Fund is usually not deductible for federal income tax
purposes. Under rules applied by the Internal Revenue Service to determine
whether borrowed funds are used for the purpose of purchasing or carrying
particular assets, the purchase of Fund shares may, depending upon the
circumstances, be considered to have been made with borrowed funds even though
the borrowed funds are not directly traceable to the purchase of those shares.
If you redeem shares of the Fund held for six months or less at a loss,
that loss will not be recognized for federal income tax purposes to the extent
of exempt-interest dividends you have received with respect to those shares. If
any such loss exceeds the amount of the exempt-interest dividends you received,
that excess loss will be treated as a long-term capital loss to the extent you
receive any capital gain distribution with respect to those shares.
Persons who are "substantial users" (or persons related thereto) of
facilities financed by industrial development bonds should consult their own tax
advisers before purchasing shares. Such persons may find investment in the Fund
unsuitable for tax reasons. Generally, an individual will not be a "related
person" under the Code unless he or his immediate family (spouse, brothers,
sisters, ancestors, and lineal descendants) owns, directly or indirectly, in the
aggregate more than 50% of the equity of a corporation or partnership that is a
"substantial user" of a facility financed from the proceeds of industrial
development
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<PAGE>
bonds. "Substantial user" of such facilities is defined generally as a
non-exempt person who regularly uses a part of such facility in his trade or
business.
The Fund will be subject to a nondeductible 4% excise tax to the extent it
fails to distribute by the end of any calendar year substantially all of its
ordinary income for that year and capital gain net income for the one-year
period ending on December 31 of that year, plus certain other amounts.
The use of hedging strategies, such as writing (selling) and purchasing
options, involves complex rules that will determine for income tax purposes the
character and timing of recognition of the gains and losses the Fund realizes in
connection therewith. Income from transactions in options derived by the Fund
with respect to its business of investing in securities will qualify as
permissible income under the Income Requirement. However, income from the
disposition of options will be subject to the Short-Short Limitation if they are
held for less than three months.
If the Fund satisfies certain requirements, any increase in value of a
position that is part of a "designated hedge" will be offset by any decrease in
value (whether realized or not) of the offsetting hedging position during the
period of the hedge for purposes of determining whether the Fund satisfies the
Short-Short Limitation. Thus, only the net gain (if any) from the designated
hedge will be included in gross income for purposes of that limitation. The Fund
will consider whether it should seek to qualify for this treatment for its
hedging transactions. To the extent the Fund does not so qualify, it may be
forced to defer the closing out of certain options beyond the time when it
otherwise would be advantageous to do so, in order for the Fund to continue to
qualify as RIC.
Corporate investors may wish to consult their own tax advisers before
purchasing Fund shares. Corporations may find investment in the Fund unsuitable
for tax reasons, because the interest on all Municipal Obligations held by the
Fund passed through to corporate shareholders will be includible in calculating
adjusted current earnings for purposes of both the alternative minimum tax and
the environmental tax. In addition, certain property and casualty insurance
companies, financial institutions, and U.S. branches of foreign corporations may
be adversely affected by the tax treatment of the interest on municipal
securities.
ADDITIONAL INFORMATION ABOUT THE FUND
THE CUSTODIAN. Investors Bank & Trust Company, whose principal business address
is 89 South Street Boston, MA 02111 is currently the custodian of the Fund's
assets. The custodian's responsibilities include safeguarding and controlling
the Fund's portfolio securities and handling the delivery of such securities to
and from the Fund. It will be the practice of the Fund to deal with the
custodian in a manner uninfluenced by any banking relationship the custodian may
have with the Manager and its affiliates. It is anticipated that on or about
July 1, 1996, Citibank N.A., 399 Park Avenue, New York, New York 10043 will
replace Investors Bank & Trust Company as the custodian of the Fund's assets.
INDEPENDENT AUDITORS. Price Waterhouse LLP, 1900 Chase Square, Rochester, NY
14604, serves as the Fund's independent accountants. The services provided by
Price Waterhouse LLP include auditing services and review and consultations on
various filings by the Fund with the Securities and Exchange Commission and tax
authorities. They also act as auditors for certain other funds advised by the
Adviser and its affiliates.
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INVESTMENT ADVISER
OppenheimerFunds, Inc.
Two World Trade Center
New York, New York 10048-0203
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
Two World Trade Center
New York, New York 10048-0203
TRANSFER AGENT
OppenheimerFunds Services
P.O. Box 5270
Denver, Colorado 80217
1-800-525-7048
INDEPENDENT AUDITORS
Price Waterhouse LLP
1900 Chase Square
Rochester, NY 14604
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036
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<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing, Albany Hsg. Auth. 0.000% 10/01/02(p) $ 560 $ 115,830
Multi-Family Albany IDA (HHRH) 9.500 09/01/96 3,005 2,974,950
15.0% Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,715 1,764,735
$322,024,202 Batavia Hsg. Auth. (Washington Towers) 6.500 01/01/23 515 532,891
Battery Park City Auth. 10.000 06/01/23 700 712,250
Bayshore HDC 7.500 02/01/23 1,475 1,596,702
Bleeker Terrace HDC 8.100 07/01/01 35 35,700
Bleeker Terrace HDC 8.350 07/01/04 45 45,900
Bleeker Terrace HDC 8.750 07/01/07 900 916,731
Elmira HDC 7.500 08/01/07 25 26,428
Guam Economic Devel. 9.375 11/01/18 3,025 3,165,027
Guam Economic Devel. 9.500 11/01/18 2,515 2,631,419
Hamilton Elderly Hsg. 11.250 01/01/15 710 758,742
Holiday Square HDC 5.800 01/15/24 2,000 1,999,940
Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 3,965 4,364,989
Monroe HDC 7.000 08/01/21 300 314,334
New Hartford HDC 7.375 01/01/24 20 21,769
North Tonawanda HDC 6.800 12/15/07 585 634,415
North Tonawanda HDC 7.375 12/15/21 3,295 3,786,647
NYC HDC (Albert Einstein) 6.500 12/15/17 337 343,951
NYC HDC (Amsterdam) 6.500 08/15/18 942 961,175
NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,456 1,503,396
NYC HDC (Boulevard) 6.500 08/15/17 2,936 2,994,395
NYC HDC (Bridgeview) 6.500 12/15/17 506 515,927
NYC HDC (Cadman Plaza) 6.500 11/15/18 1,355 1,382,192
NYC HDC (Cadman Plaza) 7.000 12/15/18 491 500,401
NYC HDC (Candia) 6.500 06/15/18 199 203,419
NYC HDC (Clinton) 6.500 07/15/17 3,825 3,900,835
NYC HDC (Contello III) 7.000 12/15/18 301 310,978
NYC HDC (Cooper Gram) 6.500 08/15/17 1,590 1,621,006
NYC HDC (Court Plaza) 6.500 08/15/17 1,213 1,237,083
NYC HDC (Crown Gardens) 7.250 01/15/19 1,646 1,723,761
NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,408 3,518,127
NYC HDC (Essex) 6.500 07/15/18 87 89,217
NYC HDC (Forest Park) 6.500 12/15/17 543 553,850
NYC HDC (General Hsg.) 6.500 05/01/22 15 15,390
NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,624 1,676,208
NYC HDC (Heywood) 6.500 10/15/17 387 394,921
NYC HDC (Hudsonview) 6.500 09/15/17 4,364 4,450,388
NYC HDC (Janel) 6.500 09/15/17 1,234 1,258,885
NYC HDC (Kings Arms) 6.500 11/15/18 245 249,481
NYC HDC (Kingsbridge) 6.500 08/15/17 431 439,440
NYC HDC (Leader) 6.500 03/15/18 1,314 1,340,527
NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,684 1,763,215
NYC HDC (Middagh) 6.500 11/15/18 221 225,840
NYC HDC (Montefiore) 6.500 10/15/17 2,893 2,950,198
NYC HDC (Multi-Family) 5.600 11/01/20 5 4,500
NYC HDC (Multi-Family) 6.500 05/01/06 80 80,866
NYC HDC (Multi-Family) 6.600 04/01/30 38,880 40,626,101
NYC HDC (Multi-Family) 7.300 06/01/10 30 35,041
NYC HDC (Multi-Family) 7.350 06/01/19 1,145 1,237,722
NYC HDC (Multi-Family) 7.500 05/01/23 1,830 1,873,060
NYC HDC (Multi-Family) 8.250 01/01/11 1,415 1,450,375
NYC HDC (Multi-Family) 9.000 05/01/22 200 208,000
NYC HDC (New Amsterdam) 6.500 08/15/18 922 940,281
NYC HDC (Residential Charter) 7.375 04/01/17 3,295 3,471,315
NYC HDC (Riverbend) 6.500 11/15/18 1,152 1,175,195
NYC HDC (Riverside Park) 7.250 11/15/18 6,338 6,638,270
NYC HDC (RNA House) 7.000 12/15/18 469 483,955
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYC HDC (Robert Fulton) 6.500% 12/15/17 $ 729 $ 743,365
NYC HDC (Rosalie Manning) 7.034 11/15/18 244 251,703
NYC HDC (Scott Tower) 7.000 12/15/18 648 668,901
NYC HDC (Seaview) 6.500 01/15/18 958 977,390
NYC HDC (Sky View) 6.500 11/15/18 1,787 1,823,460
NYC HDC (South Bronx) 8.100 09/01/23 3,275 3,588,254
NYC HDC (Stevenson) 6.500 05/15/18 1,816 1,852,121
NYC HDC (Stryckers Bay) 7.034 11/15/18 484 499,603
NYC HDC (St. Martin) 6.500 11/15/18 396 404,291
NYC HDC (Tivoli) 6.500 01/15/18 1,824 1,860,635
NYC HDC (Towers) 6.500 08/15/17 393 400,696
NYC HDC (Townhouse) 6.500 11/15/18 248 252,705
NYC HDC (Tri-Faith House) 7.000 01/15/19 353 364,297
NYC HDC (University) 6.500 08/15/17 1,622 1,653,622
NYC HDC (Washington Square) 7.000 01/15/19 450 464,318
NYC HDC (West Side) 6.500 11/15/17 438 447,298
NYC HDC (West Village) 6.500 11/15/13 4,986 5,145,468
NYC HDC (Westview) 6.500 10/15/17 116 118,268
NYC HDC (Woodstock Terrace) 7.034 02/15/19 600 619,052
NYS HFA (Admiral Halsey Sr. Village) 8.000 05/01/19 355 356,576
NYS HFA (Baptist Manor) 8.000 05/01/19 150 153,600
NYS HFA (Children's Rescue) 7.625 05/01/18 3,555 3,862,116
NYS HFA (Clinton Plaza) 7.625 11/01/19 1,375 1,276,358
NYS HFA (Dominican Village) 6.600 08/15/27 2,000 2,094,560
NYS HFA (Ft. Schulyer) 7.750 11/01/18 15 15,826
NYS HFA (HELP/Bronx) 7.850 05/01/99 1,040 1,110,897
NYS HFA (HELP/Bronx) 7.850 11/01/99 1,080 1,171,692
NYS HFA (HELP/Bronx) 8.050 11/01/05 13,080 14,161,324
NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,210 1,307,853
NYS HFA (Henry Phipps) 8.000 05/01/18 3,620 3,715,025
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 (Meadow Manor) 7.750 11/01/19 10 10,210
NYS HFA (Multi-Family) 0.000 11/01/13 17,985 6,644,738
NYS HFA (Multi-Family) 0.000 11/01/17 12,695 3,558,155
NYS HFA (Multi-Family) 0.000 11/01/14 15,730 5,398,693
NYS HFA (Multi-Family) 0.000 11/01/12 15,000 5,886,600
NYS HFA (Multi-Family) 0.000 11/01/15 14,590 4,707,901
NYS HFA (Multi-Family) 6.300 08/15/26 5,000 5,204,600
NYS HFA (Multi-Family) 6.500 08/15/24 2,750 2,863,850
NYS HFA (Multi-Family) 6.700 08/15/25 11,980 12,527,486
NYS HFA (Multi-Family) 6.750 11/15/36 5,775 6,069,525
NYS HFA (Multi-Family) 6.950 08/15/12 75 79,659
NYS HFA (Multi-Family) 6.950 08/15/24 2,940 3,109,491
NYS HFA (Multi-Family) 7.050 08/15/24 5,350 5,701,281
NYS HFA (Multi-Family) 7.450 11/01/28 5,375 5,746,681
NYS HFA (Multi-Family) 10.000 11/15/25 1,025 1,050,666
NYS HFA (Multi-Family) 10.000 11/15/25 2,205 2,298,713
NYS HFA (Multi-Family) 10.000 11/15/25 370 379,380
NYS HFA (Non-Profit) 6.400 11/01/10 5 4,900
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 11/01/13 20 19,960
NYS HFA (Non-Profit) 6.600 11/01/10 25 25,300
NYS HFA (Pepper Tree) 7.750 11/01/09 2,640 2,698,423
NYS HFA (Phillips Village) 7.750 08/15/17 5,000 5,624,450
NYS HFA (SE Tower) 7.750 11/01/18 425 431,991
NYS HFA (Service Contract) 6.500 03/15/25 9,195 9,747,620
NYS HFA (Service Contract) 7.700 03/15/06 150 169,316
</TABLE>
49
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS HFA (Shorehill Hsg.) 7.500% 05/01/08 $ 1,350 $ 1,379,592
NYS HFA (Urban Rent) 8.250 11/01/19 1,760 1,818,854
Pilgrim Village HDC 6.800 02/01/21 1,150 1,258,940
Portchester CDC (Southport) 7.300 08/01/11 60 68,408
Portchester CDC (Southport) 7.375 08/01/22 25 27,357
Puerto Rico HB&F 7.500 10/01/15 210 229,100
Puerto Rico HFA 7.300 10/01/06 10 10,966
Puerto Rico HFC 7.500 04/01/22 8,665 9,270,250
Rensselaer Hsg. Auth. (Renwyck) 7.650 01/01/11 25 28,849
Riverhead HDC 8.250 08/01/10 45 47,250
Rochester Hsg. Auth. (Crossroads) 7.700 01/01/17 20,890 22,890,426
Rochester Hsg. Auth. (Stonewood) 5.900 09/01/09 715 720,563
Scotia Hsg. Auth. (Holyrood House) 7.000 06/01/09 175 191,387
Sunnybrook EHC 11.250 12/01/14 3,100 3,284,047
Syracuse IDA (James Square) 0.000 08/01/25 50,685 9,775,616
Syracuse Senior Citizens Hsg. 8.000 12/01/10 375 394,639
Tonawanda HDC 10.000 05/01/03 25 26,125
Tonawanda Senior Citizens Hsg. 7.875 02/01/11 555 581,712
Tupper Lake HDC 8.125 10/01/10 75 78,750
Union Elderly Hsg. 10.000 04/01/13 1,890 1,946,700
Union Hsg. Auth. (Methodist Homes) 7.625 11/01/16 1,585 1,725,082
Union Hsg. Auth. (Methodist Homes) 8.050 04/01/99 105 113,312
Union Hsg. Auth. (Methodist Homes) 8.150 04/01/00 110 120,164
Union Hsg. Auth. (Methodist Homes) 8.250 04/01/01 120 130,852
Union Hsg. Auth. (Methodist Homes) 8.350 04/01/02 150 164,492
Union Hsg. Auth. (Methodist Homes) 8.500 04/01/12 2,010 2,280,988
Utica Senior Citizen Hsg. 0.000 07/01/02 25 14,774
Utica Senior Citizen Hsg. 0.000 07/01/26 2,110 225,243
V. I. HFA 8.100 12/01/18 30 34,478
White Plains HDC (Armory Plaza) 9.000 02/01/25 960 983,539
White Plains (Battle Hill) 9.875 04/01/25 30 31,500
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care Albany IDA (Albany Medical Center) 8.250 08/01/04 3,065 3,307,564
13.9% Cayuga County COP (Auburn Hospital) 6.000 01/01/21 15,000 15,694,500
$299,064,252 Clifton Springs Hospital & Clinic 8.000 01/01/20 4,260 4,420,133
Erie IDA (Hospital Lease) 8.400 08/01/96 1,046 1,056,695
Erie IDA (Mercy Hospital) 6.250 06/01/10 1,355 1,375,230
Groton Community Health 7.450 07/15/21 2,095 2,382,015
Lyons Community Health 6.800 09/01/24 3,685 3,834,869
Monroe IDA (Genesee Hospital) 7.000 11/01/18 14,525 14,885,946
Newark/Wayne Community Hospital 5.875 01/15/33 4,750 4,766,340
NYC Health & Hospital 6.300 02/15/20 4,525 4,599,889
NYC Health & Hospital LEVRRS 6.662(f) 02/15/11 12,500 12,781,250
NYS Dorm (Bethel Springvale) 6.000 02/01/35 10,420 10,575,987
NYS Dorm (Brookhaven) 8.700 07/01/06 245 249,422
NYS Dorm (Cornwall Hospital) 8.750 07/01/07 885 884,920
NYS Dorm (Crouse Irving Hospital) 10.500 07/01/17 2,270 2,332,198
NYS Dorm (Department of Health) 6.625 07/01/24 250 267,248
NYS Dorm (Department of Health) 7.250 07/01/11 3,750 4,108,275
NYS Dorm (Department of Health) 7.350 08/01/29 90 95,991
NYS Dorm (Episcopal) 7.550 08/01/29 95 104,815
NYS Dorm (H&N) 5.750 07/01/14 750 750,938
NYS Dorm (KMH Homes) 6.950 08/01/31 25 26,291
NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 1,170 1,199,250
NYS Dorm (Montefiore) 8.625 07/01/10 100 102,200
NYS Dorm (Presbyterian) 6.500 08/01/34 2,200 2,348,258
NYS Dorm (RGH) RITES 5.089(f) 08/15/33(c) 12,750 12,192,188
NYS Dorm (Wesley Garden) 6.125 08/01/35 2,000 2,052,880
NYS HFA (Health Facilities) 8.000 11/01/08 2,920 3,326,581
NYS HFA (H&N) 6.875 11/01/10 9 9,180
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS HFA (H&N) 6.875% 11/01/11 $ 5 $ 5,100
NYS HFA (H&N) 7.000 11/01/17 535 545,882
NYS Medcare (Bronx Leb) 7.100 02/15/27 2,050 2,148,093
NYS Medcare (Bronx Leb) 7.100 02/15/27 4,915 5,095,725
NYS Medcare (Brookdale Hospital) 6.375 02/15/35 1,650 1,751,541
NYS Medcare (Brookdale Hospital) 6.375 08/15/34 4,000 4,228,680
NYS Medcare (Brookdale Hospital) 6.850 02/15/17 4,600 4,898,310
NYS Medcare (Central Suffolk) 6.125 11/01/16 3,310 3,265,613
NYS Medcare (Downtown Hospital) 6.800 02/15/20 2,240 2,376,282
NYS Medcare (H&N) 6.200 02/15/23 95 98,323
NYS Medcare (H&N) 6.375 08/15/33 1,000 1,068,340
NYS Medcare (H&N) 6.500 02/15/34 2,250 2,405,633
NYS Medcare (H&N) 6.600 02/15/31 250 267,748
NYS Medcare (H&N) 6.650 08/15/32 9,020 9,631,646
NYS Medcare (H&N) 7.250 02/15/12 25 26,377
NYS Medcare (H&N) 7.400 11/01/16 5,025 5,137,962
NYS Medcare (H&N) 7.700 02/15/18 45 48,711
NYS Medcare (H&N) 7.900 02/15/08 5 5,546
NYS Medcare (H&N) 8.000 02/15/97(p) 5 5,417
NYS Medcare (H&N) 9.000 02/15/26 2,120 2,170,498
NYS Medcare (H&N) 9.375 11/01/16 5,075 5,349,152
NYS Medcare (H&N) 10.000 11/01/06 4,100 4,323,573
NYS Medcare (Insured Mtg. Nursing) 9.500 01/15/24 1,040 1,055,714
NYS Medcare (Insured Mtg.) 6.450 08/15/34 4,000 4,267,560
NYS Medcare (Kingston Hospital) 8.875 11/15/17 7,220 7,394,363
NYS Medcare (Mental Health) 0.000 08/15/18 130 24,514
NYS Medcare (Mental Health) 6.500 02/15/19 190 201,362
NYS Medcare (Mental Health) 7.500 02/15/21 810 907,435
NYS Medcare (Mental Health) 7.625 08/15/17 810 919,180
NYS Medcare (Mental Health) 7.750 08/15/01(p) 240 283,044
NYS Medcare (Mental Health) 7.750 08/15/11 95 107,716
NYS Medcare (Mental Health) 7.875 08/15/15 705 775,930
NYS Medcare (Nyack) 8.200 11/01/04 3,000 3,272,910
NYS Medcare (Nyack) 8.300 11/01/13 2,835 3,110,505
NYS Medcare (N. General) 7.150 02/15/01 10 10,640
NYS Medcare (N. General) 7.350 08/15/09 4,600 4,916,112
NYS Medcare (N. General) 7.400 02/15/19 1,935 2,054,486
NYS Medcare (N. General) 10.250 01/01/24 1,485 1,535,490
NYS Medcare (Richmond) 9.125 02/15/25 425 435,153
NYS Medcare (St. Luke) IVRC 5.866(f) 02/15/29 22,000 21,670,000
NYS Medcare (St. Luke) RITES 5.089(f) 02/15/29 5,750 5,563,125
NYS Medcare (St. Luke) RITES 5.089(f) 02/15/29 8,400 8,127,000
NYS Medcare (St. Luke) RITES 5.327(f) 02/15/29 12,500 12,093,750
NYS Medcare (Vassar Brothers) 8.250 11/01/13 4,590 4,896,291
NYS Medcare (Wychoff) 7.350 08/15/11 50 55,927
NYS Medcare (Wychoff) 7.400 08/15/21 5,240 5,678,955
Oneida Healthcare Corp. 7.100 08/01/11 10 11,541
Onondaga IDA (CGH) 6.625 01/01/18 3,650 3,735,593
Onondaga IDA (Crouse Irving Hospital) 7.800 01/01/03 220 244,244
Puerto Rico ITEME (Ryder Hospital) 6.400 05/01/09 1,045 1,102,287
Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,250 5,476,118
Rensselaer Municipal Leasing Corp. 6.900 06/01/24 15,000 15,831,600
Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/18 3,770 4,035,860
Tompkins Health Care 5.875 02/01/33 2,800 2,809,996
Tompkins Health Care 10.800 02/01/28 25 31,618
UFA Devel. Corp. (Loretta Utica) 5.950 07/01/35 4,870 4,936,427
Valley Health Devel. 11.300 02/01/23 105 135,433
Valley Health Devel. 7.850 08/01/35 20 22,545
Westchester IDA (Beth Abraham Hospital) 8.375 12/01/25 1,870 1,942,463
</TABLE>
51
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Yonkers IDA (St. Joseph's Hospital) 7.500% 12/30/03 $ 1,345 $ 1,400,199
Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,270 3,405,967
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Tax Lowville GO 7.200 09/15/12 100 121,069
Obligations Lowville GO 7.200 09/15/13 100 121,839
11.6% Lowville GO 7.200 09/15/07 75 87,415
$248,900,859 Lowville GO 7.200 09/15/14 100 122,570
Lowville GO 7.200 09/15/05 100 115,625
Newburgh GO 7.100 09/15/08 185 203,951
Newburgh GO 7.100 09/15/07 185 204,262
Newburgh GO 7.150 09/15/09 180 197,791
Newburgh GO 7.150 09/15/10 150 164,201
Newburgh GO 7.200 09/15/12 155 169,381
Newburgh GO 7.200 09/15/11 155 169,641
Newburgh GO 7.250 09/15/13 160 175,205
Newburgh GO 7.250 09/15/14 155 169,474
NYC GO 0.000 05/15/14 1,690 1,115,130
NYC GO 0.000 08/01/14 500 318,240
NYC GO 0.000 05/15/12 200 76,864
NYC GO 0.000 08/15/16 70 53,565
NYC GO 0.000 10/15/15 1,000 601,100
NYC GO 0.000 05/15/11 270 111,661
NYC GO 0.000 11/15/11 4,990 1,970,002
NYC GO 5.750 02/01/20 250 244,098
NYC GO 6.125 02/01/25 12,500 12,530,875
NYC GO 6.500 08/01/14 500 519,570
NYC GO 6.600 02/15/10 2,000 2,108,580
NYC GO 6.625 02/15/25 8,030 8,450,933
NYC GO 6.625 08/01/25 2,000 2,112,580
NYC GO 7.000 02/01/15 30 30,336
NYC GO 7.000 02/01/22 4,600 4,968,736
NYC GO 7.000 02/01/10 25 26,234
NYC GO 7.000 02/01/20 650 702,104
NYC GO 7.000 10/01/12 625 678,750
NYC GO 7.100 02/01/11 1,765 1,916,419
NYC GO 7.100 02/01/09 1,000 1,087,410
NYC GO 7.100 02/01/10 4,000 4,343,160
NYC GO 7.200 02/01/15 2,800 3,051,468
NYC GO 7.200 02/01/14 4,000 4,370,040
NYC GO 7.250 08/15/24 13,820 15,014,048
NYC GO 7.400 02/01/02 330 364,561
NYC GO 7.500 02/01/03 2,000 2,238,140
NYC GO 7.500 02/01/18 1,500 1,674,885
NYC GO 7.500 08/01/21 1,000 1,123,550
NYC GO 7.500 08/01/20 7,500 8,426,625
NYC GO 7.500 02/01/16 3,000 3,349,770
NYC GO 7.500 08/01/19 1,865 2,095,421
NYC GO 7.500 08/15/20 6,180 7,088,027
NYC GO 7.625 02/01/13 3,845 4,352,117
NYC GO 7.625 02/01/14 270 303,955
NYC GO 7.750 08/15/13 1,000 1,132,350
NYC GO 7.750 08/15/12 1,000 1,132,350
NYC GO 7.750 08/15/17 2,050 2,321,318
NYC GO 7.750 02/01/10 1,500 1,702,455
NYC GO 7.750 02/01/13 6,000 6,809,820
NYC GO 8.000 08/15/20 10 11,470
NYC GO 8.000 08/15/01(p) 245 294,397
NYC GO 8.000 08/01/18 45 51,582
NYC GO 8.000 08/15/01(p) 1,390 1,670,252
NYC GO 8.000 08/15/21 5 5,735
</TABLE>
52
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYC GO 8.250% 08/01/01(p) $ 1,590 $ 1,924,854
NYC GO 8.250 11/15/18 240 280,169
NYC GO 8.250 11/15/15 80 93,168
NYC GO 8.250 08/01/12 40 46,331
NYC GO 8.250 11/15/01(p) 2,760 3,372,334
NYC GO 8.250 11/15/01(p) 920 1,124,111
NYC GO 8.250 08/01/14 35 40,539
NYC GO 8.250 08/01/13 30 34,748
NYC GO 8.250 11/15/20 20 23,292
NYC GO 8.250 08/01/01(p) 1,420 1,717,476
NYC GO CARS 7.520(f) 08/12/10 16,387 18,066,668
NYC GO CARS 7.520(f) 09/01/11 8,387 9,194,249
NYC GO RIBS 6.775(f) 08/01/10 4,200 4,058,250
NYC GO RIBS 6.775(f) 08/01/09 6,200 5,998,500
NYC GO RIBS 6.873(f) 08/22/13 5,400 5,197,500
NYC GO RIBS 6.873(f) 08/01/15 3,050 2,928,000
NYC GO RIBS 7.510(f) 08/08/13 13,150 13,297,938
NYC GO RITES 5.730(f) 10/01/11 15,000 16,151,400
Puerto Rico GO RITES 4.412(f) 07/01/22 1,600 1,718,000
Puerto Rico GO YCN 7.382(f) 07/01/20 11,750 12,381,563
Puerto Rico GO YCN 7.468(f) 07/01/15 1,000 1,062,500
Suffolk GO 6.375 11/01/16 725 750,658
Suffolk GO (Sewer) 6.750 08/01/10 15 15,300
V. I. Public Finance Auth. 7.125 10/01/04 1,135 1,229,194
V. I. Public Finance Auth. 7.250 10/01/18 28,725 31,218,905
V. I. Public Finance Auth. 7.375 10/01/10 1,735 1,945,820
V. I. (GO/HUGO) 7.750 10/01/06 415 456,288
- ------------------------------------------------------------------------------------------------------------------------------------
Resource Babylon IDA (Res Rec) 8.875(d) 03/01/11 1,395 627,750
Recovery, Dutchess Res Rec (Solid Waste) 6.800 01/01/10 1,700 1,791,137
Pollution Control Dutchess Res Rec (Solid Waste) 7.000 01/01/10 1,805 1,874,511
Revenue Franklin SWMA 6.125 06/01/09 2,150 2,198,483
9.9% Franklin SWMA 6.250 06/01/15 3,255 3,247,546
$212,766,534 Hemstead IDA (Resco) 7.400 12/01/10 4,110 4,281,058
Islip Res Rec 6.250 07/01/06 2,725 3,042,081
Islip Res Rec 6.500 07/01/09 2,000 2,258,740
NYS Environ. (Huntington) 7.500 10/01/12 58,860 62,744,760
Onondaga Res Rec 6.875 05/01/06 27,850 28,855,107
Onondaga Res Rec 7.000 05/01/15 68,640 71,194,094
Peekskill IDA (Karta) 9.000 07/01/10 2,024 2,130,549
Ulster County Res Rec 6.000 03/01/14 1,250 1,251,625
Warren/Washington IDA (Res Rec) 8.000 12/15/12 8,730 9,045,764
Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,965 9,354,260
Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,500 8,869,070
- ------------------------------------------------------------------------------------------------------------------------------------
Electric and American Samoa Power Auth. 6.800 09/01/00 400 424,100
Gas Utilities American Samoa Power Auth. 6.850 09/01/01 400 425,808
8.2% American Samoa Power Auth. 6.900 09/01/02 400 427,388
$174,808,561 American Samoa Power Auth. 6.950 09/01/03 500 535,595
American Samoa Power Auth. 7.000 09/01/04 500 537,215
American Samoa Power Auth. 7.100 09/01/01 800 860,560
American Samoa Power Auth. 7.200 09/01/02 800 867,128
Guam Power Auth. 6.750 10/01/24 4,780 5,101,551
NYS ERDA (Brooklyn Union Gas) 9.000 05/15/15 175 179,212
NYS ERDA (Brooklyn Union Gas) 7.125 12/01/20 100 104,093
NYS ERDA (Brooklyn Union Gas) 8.750 07/01/15 360 368,590
NYS ERDA (Brooklyn Union Gas) RIBS 6.951(f) 07/08/26 3,000 3,041,250
NYS ERDA (Brooklyn Union Gas) RIBS 8.295(f) 04/01/20 7,000 7,971,250
NYS ERDA (Brooklyn Union Gas) RIBS 9.481(f) 07/01/26 10,300 12,797,750
NYS ERDA (Con Ed) 6.000 03/15/28 1,920 1,990,560
NYS ERDA (Con Ed) 7.125 03/15/22 245 256,405
</TABLE>
53
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS ERDA (Con Ed) 7.250% 11/01/24 $ 8,485 $ 9,083,023
NYS ERDA (Con Ed) 7.375 07/01/24 20,500 21,969,440
NYS ERDA (Con Ed) 7.500 11/15/21 760 792,558
NYS ERDA (Con Ed) 7.500 07/01/25 25 27,332
NYS ERDA (Con Ed) 7.750 01/01/24 4,000 4,286,360
NYS ERDA (LILCO) 6.900 08/01/22 5,440 5,533,731
NYS ERDA (LILCO) 7.150 12/01/20 7,000 7,205,660
NYS ERDA (LILCO) 7.150 02/01/22 15,920 16,387,730
NYS ERDA (LILCO) 7.150 02/01/22 2,000 2,058,760
NYS ERDA (LILCO) 7.150 09/01/19 15,000 15,440,700
NYS ERDA (LILCO) 7.150 06/01/20 5,000 5,146,900
NYS ERDA (LILCO) 7.150 09/01/19 17,540 18,055,325
NYS ERDA (Niagara Power) 8.875 11/01/25 11,950 12,261,656
NYS ERDA (RG&E) 8.375 12/01/28 95 103,949
Puerto Rico Electric 6.000 07/01/14 60 58,800
Puerto Rico Electric LEVRRS 7.926(f) 07/01/23 12,800 13,472,000
V. I. Water & Power Auth. 7.400 07/01/11 6,465 7,036,183
- ------------------------------------------------------------------------------------------------------------------------------------
NonProfit, Albany IDA (Albany Rehab.) 8.375 06/01/23 1,045 1,111,023
Other Batavia Hsg. Auth. (Trocaire Place) 8.750 04/01/25 3,850 4,113,956
8.0% Beacon IDA (Craig House) 9.000 07/01/11 225 230,063
$171,476,268 Bethany Retirement Home 7.450 02/01/24 1,000 1,112,820
Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 640 693,139
Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,220 3,591,266
Columbia IDA (ARC) 7.750 06/01/05 820 886,518
Columbia IDA (ARC) 8.650 06/01/18 2,610 2,789,072
Columbia IDA (Berkshire Farms) 6.900 12/15/04 830 882,888
Columbia IDA (Berkshire Farms) 7.500 12/15/14 1,855 2,025,308
Geneva IDA (FLCP) 8.250 11/01/04 835 912,605
Islip IDA (Leeway School) 9.000 08/01/21 980 1,054,343
Middleton IDA (Southwinds) 8.375 03/01/18 3,740 3,785,703
Monroe IDA (Al Sigl Center) 7.250 12/15/15 1,590 1,623,660
Monroe IDA (DePaul CF) 6.450 02/01/14 880 942,260
Monroe IDA (DePaul CF) 6.500 02/01/24 1,285 1,367,497
Monroe IDA (DePaul Properties) 8.300 09/01/02 530 576,285
Monroe IDA (DePaul Properties) 8.800 09/01/21 4,605 4,932,922
Montgomery IDA (New Dimension) 8.900 05/01/16 1,130 1,238,695
Nassau IDA (ACLDD) 8.125 10/01/22 2,725 2,831,302
NYC IDA (BHMS) 8.400 09/01/02 260 269,586
NYC IDA (BHMS) 8.900 09/01/11 660 708,220
NYC IDA (BHMS) 9.200 09/01/21 1,690 1,850,584
NYC IDA (Blood Bank) 7.200 05/01/04(p) 500 580,505
NYC IDA (Blood Center) 7.250 05/01/04(p) 3,000 3,538,380
NYC IDA (Eden II) 7.750 06/01/04 490 517,572
NYC IDA (Eden II) 8.750 06/01/19 2,505 2,707,128
NYC IDA (EPG) 7.500 07/30/03 10,355 11,449,006
NYC IDA (Fund for NYC Project) 7.625 07/01/10 1,000 1,074,950
NYC IDA (Graphic Artists) 8.250 12/30/23 1,295 1,370,628
NYC IDA (Hebrew Academy) 10.000 03/01/21 2,335 2,679,623
NYC IDA (JBFS) 6.750 12/15/12 6,040 6,307,753
NYC IDA (Lighthouse) 6.500 07/01/22 1,000 1,047,160
NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,300 1,320,033
NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,400 4,501,992
NYC IDA (OHEL) 8.250 03/15/23 3,435 3,557,355
NYC IDA (PRFFP) 7.000 10/01/16 815 878,480
NYC IDA (Psycho Therapy) 9.625 04/01/10 780 866,026
NYC IDA (St. Christoper Ottilie) 7.500 07/01/21 4,100 4,383,966
NYC IDA (Summit School) 7.250 12/01/04 205 211,689
NYC IDA (Summit School) 8.250 12/01/24 1,485 1,547,830
NYC IDA (UN School) 6.350 12/01/15 500 501,325
</TABLE>
54
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Orange IDA (Glen Arden) 8.250% 01/01/02 $ 18,025 $ 18,781,149
Orange IDA (Glen Arden) 8.875 01/01/25 23,985 26,116,067
Orange IDA (Mental) 7.800 07/01/11 495 555,103
Saratoga IDA (ARC) 8.400 03/01/13 1,395 1,460,021
Schenectady IDA (ASSC) 6.400 05/01/14 500 512,870
Schenectady IDA (ASSC) 6.450 05/01/24 2,655 2,733,429
Suffolk IDA (Devel. Disabilities) 7.375 03/01/03 1,145 1,180,415
Suffolk IDA (Devel. Disabilities) 8.750 03/01/23 9,675 10,410,203
Tompkins IDA (Kendall at Ithaca) 7.625 06/01/09 925 933,334
Tompkins IDA (Kendall at Ithaca) 7.875 06/01/15 2,790 2,874,704
Tompkins IDA (Kendall at Ithaca) 7.875 06/01/24 5,465 5,545,991
Wayne IDA (ARC) 7.250 03/01/03 575 596,005
Wayne IDA (ARC) 8.375 03/01/18 2,925 3,052,676
Westchester IDA (Clearview School) 9.375 01/01/21 1,530 1,690,053
Westchester IDA (JBFS) 6.750 12/15/12 2,220 2,316,859
Yonkers IDA (Westchester) 7.375 12/30/03 475 495,805
Yonkers IDA (Westchester) 8.750 12/30/23 3,375 3,650,468
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation Albany IDA (Port of Albany) 7.250 02/01/24 1,395 1,504,856
7.6% Guam Airport 6.600 10/01/10 3,675 3,831,482
$161,940,052 Guam Airport 6.700 10/01/23 55,730 57,925,762
MTA YCR 6.675(f) 07/01/13 9,400 9,435,250
MTA YCR 6.675(f) 07/01/22 3,000 2,955,000
MTA (Transit) IVRC 5.589(f) 07/01/11 10,000 10,287,500
NYC IDA (Amer. Airlines) 6.900 08/01/24 14,185 15,462,076
NYC IDA (Amer. Airlines) 7.750 07/01/19 1,795 1,939,103
NYC IDA (Amer. Airlines) 8.000 07/01/20 7,110 7,729,423
NYC IDA (TOGA) 6.000 01/01/19 4,500 4,528,575
NYC IDA (TOGA) 6.125 01/01/24 5,000 5,070,900
NYS Thruway 0.000 01/01/03 1,000 682,860
NYS Thruway 0.000 01/01/04 2,000 1,283,300
NYS Thruway 0.000 01/01/05 260 157,490
Port Auth. NY/NJ 7.000 09/01/24 25 25,625
Port Auth. NY/NJ 0.000(c) 12/01/14 25 23,298
Port Auth. NY/NJ 7.875 03/01/24 2,025 2,090,246
Port Auth. NY/NJ (US Air) 9.000 12/01/10 475 537,458
Port Auth. NY/NJ (US Air) 9.000 12/01/06 7,005 7,913,408
Port Auth. NY/NJ (US Air) 9.125 12/01/15 22,310 25,350,184
Port Auth. NY/NJ, 76th Series 6.500 11/01/26 60 61,603
Puerto Rico IME (Amer. Airlines) 8.750 12/01/25 1,265 1,306,113
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 1,807,942
- ------------------------------------------------------------------------------------------------------------------------------------
Government and Albany IDA (Upper Hudson Library) 8.750 05/01/22 955 1,049,421
Public Facilities Albany IDA (Upper Hudson Library) 8.750 05/01/07 240 253,550
6.6% Albany Parking Auth. 0.000 11/01/17 1,770 530,965
$140,700,760 Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,330 1,450,365
Carnegie Redevelopment Corp. 7.000 09/01/21 500 528,580
Clifton Park COP (Clifton Commons) 8.500 08/01/08 15 15,600
Monroe COP 8.050 01/01/11 500 551,875
NYS COP (BOCES) 7.875 10/01/00 1,120 1,195,141
NYS COP (Hanson Redevelopment) 8.250 11/01/01 250 271,183
NYS COP (John Jay College) 7.250 08/15/07 70 72,951
NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 31,550 36,815,695
NYS UDC 0.000 01/01/11 97,960 42,087,534
NYS UDC 0.000 01/01/11 80 36,438
NYS UDC 0.000 01/01/03 15 10,243
NYS UDC 0.000 01/01/09 1,250 581,625
NYS UDC 0.000 01/01/10 1,250 583,838
NYS UDC 0.000 01/01/08 900 469,737
NYS UDC 0.000 01/01/10 33,590 15,582,401
</TABLE>
55
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS UDC 7.000% 05/01/14 $ 545 $ 557,050
NYS UDC 7.500 01/01/01(p) 4,000 4,663,200
NYS UDC 7.500 07/01/00(p) 10,725 12,500,095
NYS UDC 7.500 04/01/01(p) 305 355,481
NYS UDC 7.750 01/01/01(p) 385 443,123
NYS UDC 9.375 09/01/99 555 562,881
Schroon Lake Fire District 7.250 03/01/09 606 633,785
Troy IDA (City of Troy) 8.000 03/15/12 3,250 3,506,198
Troy IDA (City of Troy) 8.000 03/15/22 13,250 14,371,878
Vigilant EHL (Thomatson) 7.500 11/01/12 950 1,019,930
- ------------------------------------------------------------------------------------------------------------------------------------
Housing, NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/98 95 75,390
Single Family NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/14 40 7,107
6.3% NYS (SONYMA) Mortgage, 2nd Series 0.000 10/01/14 13,260 2,280,587
$134,138,407 NYS (SONYMA) Mortgage, 5th Series 0.000 10/01/99 90 64,431
NYS (SONYMA) Mortgage, 5th Series 0.000 04/01/00 25 17,015
NYS (SONYMA) Mortgage, 5th Series 0.000 04/01/99 80 59,878
NYS (SONYMA) Mortgage, 5th Series 9.625 10/01/05 15 15,435
NYS (SONYMA) Mortgage, 5th Series 9.750 10/01/10 160 164,000
NYS (SONYMA) Mortgage, 6th Series 0.000(c) 04/01/10 2,575 2,509,569
NYS (SONYMA) Mortgage, 7th Series 0.000(c) 10/01/14 1,915 1,616,509
NYS (SONYMA) Mortgage, 8th Series A 6.875 04/01/17 115 118,421
NYS (SONYMA) Mortgage, 8th Series C 8.300 10/01/06 35 36,620
NYS (SONYMA) Mortgage, 8th Series C 8.400 10/01/17 170 178,145
NYS (SONYMA) Mortgage, 8th Series D 8.200 10/01/06 100 104,725
NYS (SONYMA) Mortgage, 8th Series E 8.100 10/01/17 80 83,760
NYS (SONYMA) Mortgage, 8th Series F 8.000 10/01/17 70 73,254
NYS (SONYMA) Mortgage, 9th Series A 7.300 04/01/17 185 191,198
NYS (SONYMA) Mortgage, 9th Series B 8.300 10/01/17 25 26,123
NYS (SONYMA) Mortgage, 9th Series E 8.375 04/01/18 20 20,989
NYS (SONYMA) Mortgage, Series 12 0.000(c) 04/01/17 680 608,348
NYS (SONYMA) Mortgage, Series 27 6.450 04/01/04 25 27,530
NYS (SONYMA) Mortgage, Series 28 7.050 10/01/23 8,615 9,172,994
NYS (SONYMA) Mortgage, Series 30-A 4.375 10/01/23 15 12,000
NYS (SONYMA) Mortgage, Series 30-B 6.650 10/01/25 14,005 14,598,392
NYS (SONYMA) Mortgage, Series 36-A 6.625 04/01/25 11,500 12,014,625
NYS (SONYMA) Mortgage, Series 38 RITES 5.766(f) 04/01/25 14,020 14,230,300
NYS (SONYMA) Mortgage, Series 40-A 6.700 04/01/25 6,435 6,759,581
NYS (SONYMA) Mortgage, Series 40-B 6.600 04/01/25 5,720 5,981,175
NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 13,600 14,244,096
NYS (SONYMA) Mortgage, Series 44 7.500 04/01/26 12,000 12,708,000
NYS (SONYMA) Mortgage, Series 46 6.650 10/01/25 3,750 3,915,638
NYS (SONYMA) Mortgage, Series 50 6.625 04/01/25 7,550 7,877,293
NYS (SONYMA) Mortgage, Series 52 6.100 04/01/26 2,000 2,014,040
NYS (SONYMA) Mortgage, Series BB-2 7.950 10/01/15 150 158,364
NYS (SONYMA) Mortgage, Series EE-1 8.000 10/01/10 45 47,326
NYS (SONYMA) Mortgage, Series EE-2 7.450 10/01/10 100 104,082
NYS (SONYMA) Mortgage, Series EE-2 7.500 04/01/16 40 42,835
NYS (SONYMA) Mortgage, Series EE-3 7.700 10/01/10 275 295,449
NYS (SONYMA) Mortgage, Series EE-3 7.750 04/01/16 15 15,760
NYS (SONYMA) Mortgage, Series EE-4 7.750 10/01/10 95 100,304
NYS (SONYMA) Mortgage, Series GG 7.600 10/01/18 20 20,600
NYS (SONYMA) Mortgage, Series GG 8.125 10/01/17 295 310,322
NYS (SONYMA) Mortgage, Series GG 8.125 04/01/20 130 135,520
NYS (SONYMA) Mortgage, Series HH-2 7.600 10/01/21 35 35,875
NYS (SONYMA) Mortgage, Series HH-2 7.700 10/01/09 430 453,500
NYS (SONYMA) Mortgage, Series HH-2 7.850 04/01/22 40 42,218
NYS (SONYMA) Mortgage, Series HH-3 7.600 10/01/21 245 255,351
NYS (SONYMA) Mortgage, Series HH-3 7.875 10/01/09 295 319,069
NYS (SONYMA) Mortgage, Series HH-3 7.950 04/01/22 490 520,429
</TABLE>
56
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS (SONYMA) Mortgage, Series HH-4 7.700% 10/01/21 $ 40 $ 42,153
NYS (SONYMA) Mortgage, Series HH-4 8.050 04/01/22 65 69,002
NYS (SONYMA) Mortgage, Series II 0.000 10/01/07 100 42,067
NYS (SONYMA) Mortgage, Series II 0.000 04/01/20 1,285 189,512
NYS (SONYMA) Mortgage, Series II 0.000 10/01/08 120 48,647
NYS (SONYMA) Mortgage, Series II 0.000 04/01/05 100 53,513
NYS (SONYMA) Mortgage, Series II 0.000 04/01/08 170 67,920
NYS (SONYMA) Mortgage, Series II 0.000 10/01/09 180 67,518
NYS (SONYMA) Mortgage, Series II 0.000 01/01/06 90 44,641
NYS (SONYMA) Mortgage, Series JJ 7.500 10/01/17 375 401,190
NYS (SONYMA) Mortgage, Series KK 7.625 04/01/19 160 167,757
NYS (SONYMA) Mortgage, Series KK 7.800 10/01/20 230 242,077
NYS (SONYMA) Mortgage, Series MM-1 7.500 04/01/13 75 78,437
NYS (SONYMA) Mortgage, Series MM-1 7.750 10/01/05 25 29,012
NYS (SONYMA) Mortgage, Series MM-2 7.700 04/01/05 100 113,182
NYS (SONYMA) Mortgage, Series NN 7.550 10/01/17 60 62,969
NYS (SONYMA) Mortgage, Series RR 7.700 10/01/10 90 94,844
NYS (SONYMA) Mortgage, Series RR 7.750 10/01/17 80 84,299
NYS (SONYMA) Mortgage, Series SS 7.500 10/01/19 380 392,274
NYS (SONYMA) Mortgage, Series TT 6.950 10/01/02 5 5,619
NYS (SONYMA) Mortgage, Series UU 7.150 10/01/22 135 137,970
NYS (SONYMA) Mortgage, Series UU 7.750 10/01/23 1,365 1,456,660
NYS (SONYMA) Mortgage, Series VV 0.000 10/01/23 115,222 14,278,310
NYS (SONYMA) Mortgage, Series VV 7.375 10/01/11 195 208,531
Puerto Rico HFA 0.000 08/01/26 8,690 1,062,961
Puerto Rico HFA 7.650 10/15/22 30 33,173
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Erie County Water Revenue 4th Series 0.000 12/01/17 12,590 2,629,925
Telephone Utilities Montgomery IDA (Amsterdam) 7.250 01/15/19 5,860 6,140,108
4.5% NYC Municipal Water Finance Auth. IVRC 6.476(f) 06/15/17 30,000 32,587,500
$96,245,721 NYS Environ. (Consolidated Water) 7.150 11/01/14 1,840 1,986,832
NYS Environ. (Jamaica Water) 11.000 08/01/03 1,970 2,068,500
NYS Environ. (L.I. Water) 10.000 10/01/17 500 552,855
NYS Environ. (NYS Water Services) 8.375 01/15/20 7,500 8,400,375
Puerto Rico Telephone Auth. RIBS 6.434(f) 01/01/15 16,550 16,591,375
Puerto Rico Telephone Auth. RIBS 7.478(f) 01/01/20 10,000 10,525,000
St. Lawrence County (Solid Waste) 8.250 01/01/02 10 10,875
St. Lawrence County (Solid Waste) 8.875 01/01/08 100 109,139
Suffolk IDA (Ocean Park Water ) 7.500 11/01/22 715 781,059
V.I. Water & Power Auth. 7.600 01/01/12 6,850 7,586,992
V.I. Water & Power Auth. 8.500 01/01/10 5,700 6,275,187
- ------------------------------------------------------------------------------------------------------------------------------------
NonProfit, Allegany IDA (Alfred University) 7.500 09/01/11 10,070 11,052,429
Higher Education Brookhaven IDA (Dowling College) 6.750 03/01/23 6,965 7,328,643
3.1% Cattaraugus IDA (St. Bonaventure) 8.300 12/01/10 9,155 10,273,009
$66,487,059 Dutchess IDA (Bard College) 7.000 11/01/17 3,500 3,785,145
Erie IDA (Medaille College) 8.000 12/30/22 3,230 3,552,839
Monroe IDA (Roberts Wesleyan) 6.700 09/01/11 2,625 2,705,063
New Rochelle IDA (CNR) 6.750 07/01/22 3,000 3,218,490
NYC IDA (MMC) 7.000 07/01/23 3,700 3,889,847
NYS Dorm (City University) 7.875 07/01/00(p) 425 497,662
NYS Dorm (State University) 0.000 05/15/07 50 27,089
NYS Dorm (State University) 7.000 05/15/16 165 179,871
Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5 4,750
Rockland IDA (DC) 8.000 03/01/13 2,090 2,294,841
Suffolk IDA (Dowling College) 6.625 06/01/24 2,000 2,128,400
Suffolk IDA (Dowling College) 8.250 12/01/20 980 1,106,155
University of V. I. 7.250 10/01/04 1,205 1,257,646
University of V. I. 7.700 10/01/19 3,570 3,965,128
University of V. I. 7.750 10/01/24 5,175 5,746,424
Yates IDA (Keuka College) 8.750 08/01/15 2,000 2,252,080
</TABLE>
57
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Yates IDA (Keuka College) 9.000% 08/01/11 $ 1,095 $ 1,221,549
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing, Brookhaven IDA (Farber) 6.563(e) 12/01/02 870 870,000
Durable Goods Brookhaven IDA (Farber) 6.563(e) 12/01/04 490 490,000
3.0% Brookhaven IDA (Modular Devices) 7.375 11/01/96 235 238,772
$65,253,567 Broome IDA (Simulator) 8.250 01/01/02 895 961,543
Cattaraugus IDA (Cherry Creek) 9.800 09/01/10 2,045 2,264,285
Chautauqua IDA (Dunkirk Glass) 11.500 12/01/10 7,900 8,199,726
City of Port Jervis (Future Home Tech.) 10.000 11/01/08 750 754,943
Cortland IDA (Paul Bunyon Products) 8.000 07/01/00 140 152,659
Erie IDA (Great Lakes Orthodontic) 12.099 05/01/00 149 167,432
Monroe IDA (Brazill Merk) 7.900 12/15/14 3,080 3,356,615
Monroe IDA (Melles Griot) 9.500 12/01/09 1,620 1,743,541
Montgomery IDA (Breton Industries) 8.150 04/01/10 590 647,749
Nassau IDA (RJS Scientific) 8.050 12/01/05 355 381,593
Nassau IDA (RJS Scientific) 9.050 12/01/25 2,700 2,961,009
Nassau IDA (Structural Industries) 7.750 02/01/12 500 533,505
NYC IDA (Display Creations) 9.250 06/01/97(b) 2,100 2,161,194
NYC IDA (HiTech Res Rec) 8.750 08/01/00 400 426,388
NYC IDA (HiTech Res Rec) 9.250 08/01/08 695 754,965
NYC IDA (House of Spices) 9.000 10/15/01 565 623,817
NYC IDA (House of Spices) 9.250 10/15/11 2,140 2,347,773
NYC IDA (Koenig Iron Works) 8.375 12/01/25 1,675 1,697,345
NYC IDA (Nekboh) 9.625 05/01/11 6,135 6,262,547
NYC IDA (Penguin Air Conditioning) 12.222 12/01/99 222 234,597
NYC IDA (Pop Display) 6.750 12/15/04 1,260 1,289,673
NYC IDA (Pop Display) 7.900 12/15/14 2,645 2,804,758
NYC IDA (Priority Mailers) 9.000 03/01/10 1,855 2,019,353
NYC IDA (Sequins International) 8.500 04/30/00 485 516,283
NYC IDA (Sequins International) 8.950 01/30/16 4,555 5,122,781
NYC IDA (Ultimate Display) 8.750 10/15/00 365 395,302
NYC IDA (Ultimate Display) 9.000 10/15/11 1,910 2,073,133
Onondaga IDA (Coltec) 7.250 06/01/08 525 530,250
Onondaga IDA (Coltec) 9.875 10/01/10 710 736,625
Onondaga IDA (Gear Motion) 8.400 12/15/01 730 756,076
Onondaga IDA (Gear Motion) 8.900 12/15/11 1,760 1,881,774
Peekskill IDA (Wenco) 8.875 12/01/08 1,085 1,130,581
Rensselaer IDA (MMP) 8.500 12/15/02 20 21,244
Suffolk IDA (Fil-Coil) 9.000 12/01/15 445 454,612
Suffolk IDA (Fil-Coil) 9.250 12/01/25 1,060 1,082,599
Suffolk IDA (Marbar Assoc.) 8.300 03/01/08 190 199,498
Suffolk IDA (Marbar Assoc.) 8.300 03/01/09 190 196,616
Suffolk IDA (Microwave Power) 7.750 06/30/02 385 401,101
Suffolk IDA (Microwave Power) 8.500 06/30/22 4,320 4,635,922
Syracuse IDA (Piscitell Stone) 8.400 12/01/11 705 773,392
- ------------------------------------------------------------------------------------------------------------------------------------
Private Lease Albany IDA (100 State Street) 8.750 12/31/10 2,500 2,525,000
Revenue Albany IDA (Kenwood Assoc.) 9.250(d) 09/01/10 2,735 2,752,641
1.4% Broome IDA (Industrial Park) 7.550 12/01/00 190 195,700
$29,890,552 Broome IDA (Industrial Park) 7.600 12/01/01 195 200,850
Erie IDA (Air Cargo) 8.250 10/01/07 1,535 1,601,650
Erie IDA (Air Cargo) 8.500 10/01/15 2,380 2,513,780
Fulton IDA (Crossroads Incubator) 8.500 12/15/98(a) 160 162,400
Hudson IDA (Northside) 9.000 12/01/09 475 526,580
Islip IDA (WJL Realty) 7.800 03/01/03 50 54,054
Islip IDA (WJL Realty) 7.850 03/01/04 100 108,289
Islip IDA (WJL Realty) 7.900 03/01/05 100 108,472
Islip IDA (WJL Realty) 7.950 03/01/10 500 541,535
Monroe IDA (Canal Ponds) 7.000 06/15/13 900 969,921
Monroe IDA (Cottrone Devel.) 9.500 12/01/10 2,436 2,681,376
Monroe IDA (Morrell/Morrell) 7.000 12/01/07 2,284 2,342,836
</TABLE>
58
<PAGE>
<TABLE>
<CAPTION>
Rochester Fund Municipals
Portfolio of Investments
December 31, 1995
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Monroe IDA (West End Business) 6.750% 12/01/04 $ 625 $ 643,938
Monroe IDA (West End Business) 6.750 12/01/04 80 82,422
Monroe IDA (West End Business) 6.750 12/01/04 155 160,448
Monroe IDA (West End Business) 8.000 12/01/14 1,375 1,482,608
Monroe IDA (West End Business) 8.000 12/01/14 345 372,000
Monroe IDA (West End Business) 8.000 12/01/14 515 555,304
Monroe IDA (West End Business) 8.000 12/01/14 170 183,297
Niagara IDA (Maryland Maple) 10.250 11/15/09 1,130 1,254,571
NYC IDA (ALA Realty) 7.500 12/01/10 1,035 1,059,178
NYC IDA (ALA Realty) 8.375 12/01/15 1,450 1,487,932
Suffolk IDA (Rimland Facilities) 6.563(e) 12/01/09 1,670 1,636,600
Syracuse IDA (Rockwest Center I) 8.000 06/01/13 1,150 1,221,703
Syracuse IDA (Rockwest Center II) 7.625 12/01/10 980 986,399
Syracuse IDA (Rockwest Center II) 8.625 12/01/15 1,470 1,479,070
- ------------------------------------------------------------------------------------------------------------------------------------
Service Albany IDA (Albany Golf) 7.500 05/01/12 400 424,176
Companies Auburn IDA (Wegmans) 7.250 12/01/98 185 187,548
0.7% Dutchess IDA (Merchants Press) 7.950 06/30/02 1,800 1,809,180
$15,780,611 Dutchess IDA (Merchants Press) 9.000 06/30/22 4,590 4,628,051
Erie IDA (Affordable Hospitality) 9.250 12/01/15 3,690 3,804,796
Monroe IDA (De Carolis) 7.500 01/30/05 436 436,311
Niagara IDA (Sevenson Hotel) 6.600 05/01/07 1,900 1,954,093
NYC IDA (Loehmann's) 9.500 12/31/04 745 767,909
Syracuse IDA (Genesee Inn) 10.000(d) 05/01/05 2,701 675,183
Yonkers Parking Auth. 7.750 12/01/04 1,035 1,093,364
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing, Herkimer IDA (Burrows Paper) 8.000 01/01/09 1,440 1,549,872
Non-Durable Monroe IDA (Cohber) 7.550 12/01/01 10 10,849
Goods Monroe IDA (Cohber) 7.650 12/01/02 10 10,791
0.5% Monroe IDA (Cohber) 7.700 12/01/03 10 10,804
$11,689,289 Monroe IDA (Cohber) 7.850 12/01/09 170 185,798
NYC IDA (Amster Novelty) 8.000 12/01/10 530 531,367
NYC IDA (Amster Novelty) 8.375 12/01/15 790 792,267
NYC IDA (Promotional Slideguide) 7.500 12/01/10 710 712,435
NYC IDA (Promotional Slideguide) 7.875 12/01/15 1,065 1,069,952
NYC IDA (Visy Paper) 7.950 01/01/28 4,000 4,092,520
Ulster IDA (Brooklyn Bottling) 7.800 06/30/02 660 690,914
Ulster IDA (Brooklyn Bottling) 8.600 06/30/22 1,915 2,031,719
- ------------------------------------------------------------------------------------------------------------------------------------
Total municipal bond investments (cost $2,027,738,427) - 100.3% $ 2,151,166,694
- ------------------------------------------------------------------------------------------------------------------------------------
Other assets and liabilities (net) - (0.3%) (5,902,737)
-------------------
Net assets at market - 100.0% $ 2,145,263,957
===================
(a) Date of mandatory put; final maturity 12/15/08. (f) Interest rate is subject to change periodically and
(b) Date of mandatory put; final maturity 06/01/08. inversely to the prevailing market rate. The interest
(c) Security will convert to a fixed coupon at a future rate shown is the rate in effect at December 31,1995.
date prior to maturity. (p) Date of pre-refunded call.
(d) Non-income accruing security.
(e) Variable rate security that fluctuates as a percentage
of prime rate.
See accompanying notes to financial statements.
</TABLE>
59
<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 IDA Industrial Development Authority
and Developmental Disabilities IME Industrial Medical and Environmental
ARC Association of Retarded Citizens ITEME Industrial Tourist Educational Medical
ASSC Annie Schaffer Senior Center and Environmental
BHMS Brooklyn Heights Montessori School IVRC Inverse Variable Rate Certificate
BOCES Board of Cooperative Educational Services JBFS Jewish Board of Family Services
CARS Complimentary Auction Rate Security LEVRRS Leveraged Reverse Rate Security
CDC Community Development Corporation L.I. Long Island
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 TOGA Terminal One Group Association
GO General Obligation UDC Urban Development Corporation
HB&F Housing Bank and Finance UFA Utica Free Academy
HDC Housing Development Corporation UN United Nations
HELP Homeless Economic Loan Program WWH Wyandach/Wheatley Heights
HFA Housing Finance Agency YCN Yield Curve Note
HFC Housing Finance Corporation YCR Yield Curve Receipt
HHRH Historic Hudson River Heritage V.I. United States Virgin Islands
H&N Hospital and Nursing
</TABLE>
================================================================================
Asset Composition Table
December 31, 1995 (Unaudited)
(As a percentage of total investments)
<TABLE>
<CAPTION>
Percentage
Rating of Investments
-------------------------
<S> <C> <C>
AAA 18.4% All unrated bonds are backed by mortgage liens and guarantees by the issuer.
AA 13.5% Bonds which are backed by a letter of credit or by other financial institutions or
A 23.2% agencies may be assigned an investment grade rating by the Investment
BBB 25.3% Policy Committee of the Board of Trustees, which reflects the quality of the
BB 5.2% guarantor, institution or agency. Unrated bonds may also be assigned a rating
B 2.3% 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 further
----------- information see "Credit Quality" in the Prospectus.
Total 100.0%
===========
</TABLE>
60
<PAGE>
Rochester Fund Municipals
<TABLE>
<CAPTION>
====================================================================================================================================
Statement of Assets and Liabilities - December 31, 1995
<S> <C> <C> <C>
Assets Represented by
Investments at market Paid in capital $ 2,074,930,655
(Cost $2,027,738,427) $ 2,151,166,694 Undistributed net investment
Cash and cash equivalents 58,592 income 2,633,000
Interest receivable 35,911,013 Accumulated net realized loss on
Receivable for capital investment transactions (55,727,965)
shares sold 5,295,741 Net unrealized appreciation
Receivable for of investments 123,428,267
investments sold 1,107,071 ---------------
Other assets 767,512 Total - Representing net assets applicable
--------------- to capital shares outstanding $ 2,145,263,957
Total assets 2,194,306,623 ===============
--------------- Computation of net asset value and offering price
Net asset value and redemption
Liabilities price per share ($2,145,263,957
Payable for investments purchased 27,739,518 divided by 118,019,143 shares) $18.18
Payable for capital shares ===============
repurchased 2,741,660 Offering price per share (100/96 of $18.18)* $18.94
Demand note payable to Bank ===============
(Interest rate 6.5% at 12/31/95) 17,930,000
Other liabilities 631,488
---------------
Total liabilities 49,042,666 * 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.
Net Assets $ 2,145,263,957
===============
</TABLE>
================================================================================
Statement of Operations
Year Ended December 31, 1995
Investment Income:
Interest $ 141,470,850
-------------
Expenses:
Management fees 9,128,887
Distribution fees 3,452,348
Shareholder servicing agent fees 1,267,856
Accounting and auditing 668,262
Trustees' compensation 371,000
Shareholder communications 297,930
Custodian fees 238,373
Registration fees 105,396
Legal fees 68,806
Miscellaneous 116,294
Interest 630,993
-------------
Total expenses 16,346,145
Expenses paid indirectly (Note 4) (62,231)
-------------
Net expenses 16,283,914
-------------
Net investment income 125,186,936
-------------
Realized and unrealized
gain (loss) on investments:
Net realized loss on
investments (10,724,838)
Net increase in unrealized
appreciation of investments 222,374,949
-------------
Net gain on investments 211,650,111
-------------
Net increase in net assets
resulting from operations $ 336,837,047
=============
================================================================================
Statement of Changes in Net Assets
Year Ended December 31, 1995 1994
---- ----
Increase (decrease) in net assets-
Operations:
Net investment income $ 125,186,936 $ 118,882,777
Net realized loss
from security transactions (10,724,838) (40,072,783)
Increase (decrease) in unrealized
appreciation 222,374,949 (243,302,977)
--------------- ---------------
Increase (decrease) in net assets
resulting from operations 336,837,047 (164,492,983)
--------------- ---------------
Distributions to shareholders from:
Net investment income (124,417,144) (120,341,434)
--------------- ---------------
Fund share transactions:
Net proceeds from shares sold 292,964,245 476,656,393
Value of shares issued in
reinvestment of distributions 67,511,771 61,703,204
Cost of shares repurchased (218,931,015) (256,321,686)
--------------- ---------------
Increase in net assets derived
from Fund share transactions 141,545,001 282,037,911
--------------- ---------------
Increase (decrease) in net assets 353,964,904 (2,796,506)
Net assets:
Beginning of year 1,791,299,053 1,794,095,559
--------------- ---------------
End of year (including undistributed
net investment income of $2,633,000 -
1995 and $1,863,208 - 1994) $ 2,145,263,957 $ 1,791,299,053
=============== ===============
See accompanying notes to financial statements.
61
<PAGE>
Rochester Fund Municipals
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended December 31,
1995 1994 1993 1992 1991
------------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $16.31 $19.00 $17.65 $17.01 $16.24
------------- ------------- ------------- ------------- ------------
Income from investment operations:
Net investment income 1.10 1.13 1.17 1.20 1.20
Net realized and unrealized gain
(loss) on investments 1.86 (2.68) 1.35 0.64 0.81
------------- ------------- ------------- ------------- ------------
Total from investment operations 2.96 (1.55) 2.52 1.84 2.01
------------- ------------- ------------- ------------- ------------
Less distributions to shareholders from:
Net investment income (1.09) (1.13) (1.17) (1.20) (1.20)
Undistributed net investment income -
prior year -- (0.01) -- -- --
Capital gains -- -- -- -- (0.04)
------------- ------------- ------------- ------------- ------------
Total distributions (1.09) (1.14) (1.17) (1.20) (1.24)
------------- ------------- ------------- ------------- ------------
Net asset value, end of year $18.18 $16.31 $19.00 $17.65 $17.01
============= ============= ============= ============= ============
Total return (excludes sales load) 18.58% (8.35%) 14.60% 11.19% 12.79%
Ratios/supplemental data:
Net assets, end of year
(000 omitted) $2,145,264 $1,791,299 $1,794,096 $997,030 $497,440
Ratio of total expenses
to average net assets 0.82%** 0.84% 0.75% 0.84% 0.87%
Ratio of total expenses (excluding
interest) to average net assets* 0.78%** 0.73% 0.64% 0.70% 0.74%
Ratio of net investment income to
average net assets 6.25% 6.43% 6.21% 6.79% 7.12%
Portfolio turnover rate 14.59% 34.39% 18.27% 29.99% 48.54%
</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.
** Effective in 1995, the ratios do not include reductions from custodian
fee offset arrangements. The 1995 ratio of total expenses and the
ratio of total expenses (excluding interest) to average net assets are
0.81% and 0.78%, respectively, after including this reduction. See
Note 4.
Per share information has been determined on the basis of the
weighted average number of shares outstanding during the period.
62
<PAGE>
Rochester Fund Municipals
Notes to Financial Statements
December 31, 1995
Note 1. Significant Accounting Policies:
Rochester Fund Municipals (the "Fund"), which is organized as a business trust
under the laws of the Commonwealth of Massachusetts, conducted operations as a
closed-end investment company from December, 1982 until May 15, 1986, at which
time it commenced operations as an open-end investment company. The Fund's
investment objective is to provide as high a level of interest income exempt
from federal, New York State and New York City personal income taxes as is
consistent with prudent investing while seeking preservation of shareholders'
capital. 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. The amount and character of
income and gains to be distributed are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of wash sales. Reclassifications are
made to the Fund's capital accounts to reflect income and gains available for
distribution (or available capital loss carryovers) under income tax
regulations.
Federal income taxes. During any particular year, the Fund is required to
distribute certain minimum amounts of net realized capital gains and net
investment income in order to avoid a federal income or excise tax. It is the
Fund's intention to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
taxable and tax-exempt income to shareholders. Therefore, the Fund is not
required to record a liability for either federal income or excise tax.
Concentration in New York Issuers. There are certain risks arising from
geographic concentration in any state. Certain revenue or tax related events in
a state may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
Other. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
63
<PAGE>
Note 2. Management Fee and Other Transactions with Affiliated Parties:
Ronald H. Fielding, President and a trustee of the Fund, is also an officer,
director and controlling shareholder of Rochester Fund Distributors, Inc.
("RFD"), the Fund's principal underwriter and an officer, director and
controlling shareholder of Rochester Fund Services, Inc. ("RFS"), the Fund's
shareholder servicing, accounting and pricing agent. The Fund's investment
adviser is Rochester Capital Advisors, L.P. ("RCA, L.P."). RCA, L.P. is managed
by Rochester Capital Advisors, Inc. ("RCA"), which serves as the general partner
of RCA, L.P. Mr. Fielding is President, director and controlling shareholder of
RCA. See Note 6.
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. For the year ended December
31, 1995, RCA, L.P. received fees of $9,128,887 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 year ended December 31, 1995, the Fund paid distribution
fees of $3,452,348 to RFD. From this amount, RFD made service fee payments of
$2,698,619 to broker dealers and financial institutions.
For the year ended December 31, 1995, RFD, acting as an underwriter, received
$1,086,283 as its portion of the sales charge on sales of the Fund.
For the year ended December 31, 1995, RFS received $1,874,881 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. During 1995, the Fund was charged
$607,025 for pricing and accounting services.
In January, 1995, the Board of Trustees of the Fund adopted a retirement plan
for its independent trustees. Upon retirement, eligible trustees receive annual
payments based upon their years of service. The plan is not funded. In
connection with the sale of certain assets of RCA, L.P. and other affiliates to
OppenheimerFunds, Inc. (see Note 6), all but one of the independent trustees
retired effective January 4, 1996. The retirement plan expense, which is
included in trustees' compensation, amounted to $262,000 for the year ended
December 31, 1995. No payments have been made under the plan. The retirement
plan, as amended and restated on October 16, 1995, provides that no independent
trustee of the Fund who is elected after September 30, 1995 may be eligible to
receive benefits thereunder.
Note 3. Portfolio Information:
Purchases at cost and proceeds from sales of investment securities for the year
ended December 31, 1995 were $424,608,164 and $289,514,285, respectively.
The Fund held $296,376,056 in inverse floating rate municipal bonds at December
31, 1995, comprising approximately 13.82% of net assets.
During 1995, 10.86% of interest income was derived from investments in U.S.
territories which are exempt from federal, all states, and New York City income
taxes.
64
<PAGE>
Unrealized appreciation (depreciation) at December 31, 1995 based on cost of
securities for federal income tax purposes of $2,027,868,234 was:
Gross unrealized appreciation $130,385,919
Gross unrealized depreciation (7,087,459)
------------
Net unrealized appreciation $123,298,460
============
At December 31, 1995, capital loss carryovers available (to the* extent provided
in regulations) to offset future realized gains were approximately as follows:
Year of Expiration Capital Loss Carryover
- ------------------ ----------------------
2000 $ 564,400
2001 1,954,100
2002 42,293,600
2003 10,726,200
---- -----------
$55,538,300
===========
The availability of these loss carryovers may be limited in a given year but
will be used to the extent possible to offset any future realized gains.
Note 4. Bank Borrowings and Expense Offset Arrangements:
The Fund may borrow up to 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.
The Fund had borrowings of $17,930,000 outstanding at December 31, 1995. For the
year ended December 31, 1995, the average monthly loan balance was $8,217,334 at
a weighted average interest rate of 7.592%. The maximum amount of borrowings
outstanding at any month-end was $26,550,000.
The Fund's custodian bank has agreed to reduce its fees when the Fund maintains
cash on deposit in the non-interest bearing custody account. For the year ended
December 31, 1995, custodian fee offset arrangements reduced expenses by
$62,231.
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:
Year ended December 31, 1995 1994
- ----------------------- ---- ----
Shares sold 16,778,524 26,972,429
Shares issued on reinvestment of distributions 3,857,323 3,569,917
Shares repurchased (12,475,987) (15,115,012)
------------ ------------
Net increase in shares outstanding 8,159,860 15,427,334
Shares outstanding, beginning of year 109,859,283 94,431,949
------------ ------------
Shares outstanding, end of year 118,019,143 109,859,283
============ ============
Note 6. Subsequent Event:
On January 4, 1996, RCA, L.P. (the Fund's investment adviser), RFD (the Fund's
principal underwriter) and RFS (the Fund's shareholder servicing, accounting and
pricing agent) consummated a transaction with OppenheimerFunds, Inc. ("OFI"),
which resulted in the sale to OFI of certain assets of RCA, L.P., RFD and RFS,
including the transfer of the investment advisory agreement and other contracts
with the Fund and the use of the name "The Rochester Funds". This transaction
received approval by the Fund's shareholders on December 20, 1995.
65
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of Rochester Fund Municipals
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Rochester Fund Municipals (the
"Fund") at December 31, 1995, 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, 1995 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Rochester, New York
January 30, 1996
66
<PAGE>
[THIS PAGE LEFT INTENTIONALLY BLANK]
67
<PAGE>
APPENDIX A
DESCRIPTION OF MUNICIPAL SECURITIES RATINGS
STANDARD & POOR'S RATING GROUP
A brief description of the applicable Standard & Poor's Corporation rating
symbols and their meanings (as published by Standard & Poor's Corporation)
follows:
A Standard & Poor's corporate or municipal debt rating is a current assessment
of the creditworthiness of an obligator with respect to a specific debt
obligation. This assessment may take into consideration obligors such as
guarantors, insurers, or lessees.
The rating is not a recommendation to purchase, sell or hold a security,
inasmuch as it does not comment as to market price or suitability for a
particular investor.
The ratings are based on current information furnished by the issuer and
obtained by Standard & Poor's from other sources it considers reliable. Standard
& Poor's does not perform an audit in connection with any rating and may, on
occasion rely on unaudited financial information. The ratings may be changed,
suspended, or withdrawn as a result of changes in, or unavailability of, such
information, or for other circumstances.
The ratings are based, in varying degrees, on the following considerations:
I. Likelihood of default--capacity and willingness of the obligor as to
the timely payment of interest and repayment of principal in accordance
with the terms of the obligation;
II. Nature of and provisions of the obligation;
III. Protection afforded by, and relative position of, the obligation
in the event of bankruptcy, reorganization or other arrangements under
the laws of bankruptcy and other laws affecting creditors' rights.
Long-Term Municipal Bonds
AAA Bonds rated AAA have the highest rating assigned by Standard & Poor's
to a debt obligation. Capacity to pay interest and repay principal is
extremely strong.
AA Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from the highest rated issues only in small
degree.
A Bonds rated A have a strong capacity to pay interest and repay
principal although they are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than bonds
in higher rated categories.
A-1
<PAGE>
BBB Bonds rated BBB are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for bonds in this category than for bonds
in higher rated categories.
BB-D Debt rated "BB", "B", "CCC" and "CC" is regarded, on balance, as
predominantly speculative with respect to capacity to pay interest and
repay principal in accordance with the terms of the obligation. "BB"
indicates the lowest degree of speculation and "CC" the highest degree
of speculation. While such debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties
or major risk exposures to adverse conditions. The "C" is reserved for
income bonds on which no interest is being paid. Debt rated "D" is in
default, and payment of interest and/or repayment of principal is in
arrears.
Plus (+) or minus (-): The ratings from "AA" to "BBB" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
Provisional Ratings: The letter "P" indicates that the rating is provisional. A
provisional rating assumes the successful completion of the project being
financed by the bonds being rated and indicates that payment of debt service
requirements is largely or entirely dependent upon the successful and timely
completion of the project. This rating, however, while addressing credit quality
subsequent to completion of the project, makes no comment on the likelihood of,
or the risk of default upon failure of, such completion. The investors should
exercise his own judgement with respect to such likelihood and risk.
Short-Term Tax-Exempt Notes
Standard & Poor's tax exempt note ratings are generally given to such notes that
mature in three years or less. The three rating categories are as follows:
SP-1 Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will
be given a plus (+) designation.
SP-2 Satisfactory capacity to pay principal interest.
SP-3 Speculative capacity to pay principal and interest.
Tax-Exempt Commercial Paper
A Standard & Poor's commercial paper rating is a current assessment of the
likelihood of timely payment of debt having an original maturity of no more than
165 days. Ratings are graded into four categories, ranging from "A" for the
highest quality obligations to "D" for the lowest. The four categories are as
follows:
A Issues assigned this highest rating are regarded as having the greatest
capacity for timely payment. Issues in this category are further
refined with the designation 1, 2, and 3 to indicate the relative
degree of safety. These issues determined to posses overwhelming safety
characteristics are denoted with a plus (+) sign designation.
A-2
<PAGE>
A-1 This designation indicates that the degree of safety regarding timely
payment is very strong.
A-2 Capacity for timely payment on issues with this designation is strong.
However, the relative degree of safety is not as overwhelming as for
issues designated "A-1".
A-3 Issues carrying this designation have a satisfactory capacity for
timely payment. They are, however, somewhat more vulnerable to the
adverse effects of changes in circumstances than obligations carrying
the higher designation.
B Issues rated "B" are regarded as having only an adequate capacity for
timely payment. However, such capacity may be damaged by changing
conditions or short-term adversities.
C & D These ratings indicate that the issue is either in default or
expected to be in default upon maturity.
MOODY'S INVESTORS SERVICE, INC.
A brief description of the applicable Moody's Investors Service, Inc. rating
symbols and their meanings follow:
Long-Term Municipal Bonds
Aaa Bonds which are rated Aaa are judged to be the best quality. They carry
the smallest degree of investment risk and are generally referred to as
"gilt edge". Interest payments are protected by a large, or by an
exceptionally stable, margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are more unlikely to impair the fundamentally strong
position of such issues. With the occasional exception of oversupply in
a few specific instances, the safety of obligations of this class is so
absolute that their market value is affected solely by money market
fluctuations.
Aa Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities
or fluctuations of protective elements may be of greater amplitude or
there may be other elements present which make the one-term risks
appear somewhat larger than the Aaa securities. These Aa bonds are high
grade, their market value virtually immune to all but money market
fluctuations.
A Bonds which are rated A possess many favorable investment attributes
and are to be considered as higher medium grade obligations. Factors
giving security to principal and interest are considered adequate, but
elements may be present which suggest a susceptibility to A-rated bonds
may be influenced to some degree by credit circumstances during a
sustained period of depressed business conditions. During periods of
normalcy, bonds of this quality frequently move in parallel with Aaa
and Aa obligations, with the occasional exception of oversupply in a
few specific instances.
A-3
<PAGE>
Baa Bonds which are rated Baa are considered as lower medium grade
obligations, i.e., they are neither highly protected nor poorly
secured. Interest payments but certain protective elements may be
lacking or may be characteristically unreliable or over any great
length of time. Such bonds lack outstanding investment characteristics
and in fact have speculative characteristics as well. The market value
of Baa-rated bonds is more sensitive to change in economic
circumstances, and aside from occasional speculative factors applying
to some bonds of this class, Baa market valuations move in parallel
with Aaa, Aa and A obligations during periods of economic normalcy,
except in instances of oversupply.
Ba-C Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often, the protection of
interest and principal payments may be very moderate, and thereby not
well safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class. Bonds which
are rated B generally lack characteristics of the desirable investment.
Assurance of interest and principal payments or of maintenance of other
terms of the contract over any long period of time may be small. Bonds
which are rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest. Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or have
other marked shortcomings. Bonds which are rated C are the lowest rated
of bonds, and issues so rated can be regarded as having extremely poor
prospects of ever attaining any real investment standing.
Moody's bond rating symbols may contain numerical modifiers of a generic rating
classification. The modifier 1 indicates that the bond ranks at the high end of
its category; the modifier 2 indicates a mid-range ranking; and the modifier 3
indicates that the issue ranks in the lower end of its generic rating category.
Con. Bonds for which the security depends upon the completion of some act or
the fulfillment of some conditions are rated conditionally. These are
bonds secured by (a) earnings of projects under construction, (b)
earnings of projects unseasoned in operating experience, (c) rentals
which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes
probable credit status upon completion of construction or elimination
of basis of condition.
Short-Term Tax-Exempt Notes
The four ratings of Moody's for short-term notes are MIG 1, MIG 2, MIG 3, and
MIG 4; MIG 1 denotes "best quality, enjoying strong protection from established
cash flows"; MIG 2 denotes "high quality" with "ample margins of protection";
MIG 3 notes are of "favorable quality... but lacking the undeniable strength of
the preceding grades"; MIG 4 notes are of "adequate quality, carrying specific
risk but having protection...and not distinctly or predominantly speculative".
Tax-Exempt Commercial Paper
Moody's commercial paper ratings are opinions of the ability of issuers to repay
punctually promissory obligations not having an original maturity in excess of
nine months. Moody's employs the following three designations, all judged to be
investment grade, to indicate the relative repayment capacity of rated issuers:
A-4
<PAGE>
Issuers rated Prime 1 (or related supporting institutions) have a
superior capacity for repayment of short-term promissory obligations.
Issuers rated Prime 2 (or related supporting institutions) have a
strong capacity for repayment of short-term promissory obligations.
Issuers rated Prime 3 (or related supporting institutions) have an
acceptable capacity for repayment of short-term promissory obligations.
Issuers rated Not Prime do not fall within any of the Prime rating
categories.
FITCH INVESTORS SERVICE, INC.
A brief description of the applicable Fitch Investors Service rating symbols and
their meanings follow:
Long Term Municipal Bonds
AAA Bonds considered to be investment grade and of the highest credit quality.
The obligor has an exceptionally strong ability to pay interest and repay
principal, which is unlikely to be affected by reasonably foreseeable events.
AA Bonds considered to be investment grade and of very high quality. "The
obligor's ability to pay interest and repay principal is very strong, although
not quite as strong as bond rating "AAA".
A Bonds considered to be investment grade and of high quality. The obligor's
ability to pay interest and repay principal is considered to be strong, but may
be more vulnerable to adverse changes in economic conditions and circumstances
than bonds with higher ratings.
BBB Bonds considered to be investment grade and of satisfactory credit quality.
The obligor's ability to pay interest and repay principal is considered to be
adequate. Adverse changes in economic conditions and circumstances, however, are
more likely to have an adverse impact on these bonds, and therefore impair
timely payment. The likelihood that the ratings of these bonds will fall below
investment grade is higher than for bonds with higher ratings.
BB-C BB bonds are considered speculative. The obligor's ability to pay interest
and repay principal may be affected over time by adverse economic changes,
however, business and financial alternatives can be identified which could
assist the obligor in satisfying debt service requirements. B bonds are
considered highly speculative. While debt service payments are currently being
met, the probability of continued timely payment of principal and interest
reflects the obligor's limited margin of safety. CCC bonds have certain
identifiable characteristics which, if not remedied, may lead to default; CC
bonds are minimally protected and default in payment of interest and/or
principal seems probable over time; C bonds are in imminent default in payment
of interest or principal.
DDD Bonds rated DDD, DD, D are in default on interest and/or principal payments.
Such bonds are extremely speculative. "DDD" represents the highest probability
for recovery on these bonds, "D" represents the lowest probability for recovery.
A-5
<PAGE>
Plus (+) Minus(-): Plus and minus signs are used with a rating symbol to
indicate the relative position of a credit within the rating category. Plus and
minus signs are not used in the "AAA", "DDD", "DD", or "D" categories.
Conditional: A conditional rating is premised on the successful completion of a
project or the occurrence of a specific event.
A-6
<PAGE>
ROCHESTER FUND MUNICIPALS
PART C. OTHER INFORMATION
ITEM 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Financial Highlights (see Part A, Prospectus): Filed herewith
(2) Report of Independent Accountants (see Part B, Statement of Additional
Information): Filed herewith
(3) Portfolio of Investments (see Part B, Statement of Additional
Information): Filed herewith
(4) Statement of Assets and Liabilities (see Part B, Statement of
Additional Information): Filed herewith
(5) Statement of Operations (see Part B, Statement of Additional
Information): Filed herewith
(6) Statement of Changes in Net Assets (see Part B, Statement of Additional
Information): Filed herewith
(7) Notes to Financial Statements (see Part B, Statement of Additional
Information): Filed herewith
(b) Exhibits:
(1) Amended and Restated Declaration of Trust as filed with the
Commonwealth of Massachusetts on February 8, 1995, as amended on November 7,
1995 ("Amended and Restated Declaration of Trust")--filed with Registrant's Post
Effective Amendment No. 16 filed January 11, 1996--incorporated by reference
(2) Bylaws--filed with Registrant's Post Effective Amendment No. 13 filed
May 1, 1993--incorporated by reference
(3) Not Applicable
(4) Specimen Share Certificate--filed with Registrant's Post Effective
Amendment No. 11 filed March 1, 1992--incorporated by reference
(5) Investment Advisory Agreement dated January 4, 1996 with Oppenheimer
Management Corporation--filed with Registrant's Post Effective Amendment No. 16
filed January 11, 1996--incorporated by reference
(6) (a) General Distributor's Agreement dated January 4, 1996 with
Oppenheimer Funds Distributor, Inc.--filed with Registrant's Post
Effective Amendment No. 16 filed January 11, 1996--incorporated by reference
(b) Form of Oppenheimer Funds Distributor Inc. Dealer Agreement--Filed
with Post-Effective Amendment No. 14 of Oppenheimer Main Street Funds, Inc.
(Reg. No. 33-17850) filed September 30, 1994--incorporated by reference
(c) Form of Oppenheimer Funds Distributor Inc. Broker Agreement--Filed
with Post-Effective Amendment No. 14 of Oppenheimer Main Street Funds, Inc.
(Reg. No. 33-17850) filed September 30, 1994--incorporated by reference
(d) Form of Oppenheimer Funds Distributor Inc. Agency Agreement--Filed
with Post-Effective Amendment No. 14 of Oppenheimer Main Street Funds, Inc.
(Reg. No. 33-17850) filed September 30,1994--incorporated by reference
(7) Amended and Restated Retirement Plan for Independent Trustees of
Registrant adopted on January 26, 1995, as amended and restated October 16, 1995
- --filed with Registrant's Post Effective Amendment No. 16 filed January 11,
1996--incorporated by reference
(8) Acknowledgement of Assignment of Custodian Agreement between Registrant
and Investors Bank & Trust Company--filed with Registrant's Post Effective
Amendment No. 9 filed March 11, 1991--incorporated by reference
(9) Form of Service Contract with Oppenheimer Shareholder Services-- filed
with Registrant's Post Effective Amendment No. 16 filed January 11,
1996--incorporated by reference
(10) Consent of Counsel--incorporated by reference to the Registrant's
Rule 24f-2 Notice filed on February 28, 1996
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<PAGE>
(11) Independent Auditor's Consent--filed herewith
(12) Not Applicable
(13) Not Applicable
(14) Not Applicable
(15) Amended and Restated Service Plan and Agreement with Oppenheimer Funds
Distributor, Inc. dated January 4, 1996 for Class A Shares--filed with
Registrant's Post Effective Amendment No. 16 filed January 11,
1996--incorporated by reference
(16) Performance Computation Schedules--filed herewith
(17) Financial Data Schedule--filed herewith
(18) Oppenheimer Fund Multiple Class Plan under Rule 18f-3 dated January 5,
1996--filed with Registrant's Post Effective Amendment No. 16 filed January 11,
1996--incorporated by reference
-- Powers of Attorney--filed with Registrant's Post Effective Amendment No.
16 filed January 11, 1996--incorporated by reference
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
The Board of Trustees of the Registrant is identical to the Boards of
Trustees of Oppenheimer Bond Fund for Growth (f/k/a The Bond Fund For Growth)
("RCVGX"), and Limited Term New York Municipal Fund ("LTNYX"), both business
trusts organized under the laws of the Commonwealth of Massachusetts
(collectively, "The Rochester Funds").
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
TITLE OF CLASS NUMBER OF RECORD HOLDERS AS OF JANUARY 31, 1996
Shares of Beneficial Interest
$.01 par value 56,782
ITEM 27. INDEMNIFICATION.
Registrant's Amended and Restated Agreement and Declaration of Trust, which
is reference herein (see Exhibit 1) as Exhibit 1 contains certain provisions
relating to the indemnification of Registrant's officers and trustees. Section
6.4 of Registrant's Agreement and Declaration of Trust provides that Registrant
shall indemnify (from the assets of the Series or Class in question) each of its
trustees and officers (including persons who served at Registrant's request as
directors, officers or trustees of another organization in which Registrant has
any interest as a shareholder, creditor or otherwise hereinafter referred to as
a "Covered Person") against all liabilities, including but not limited to,
amounts paid for satisfaction of judgments, in compromise or as fines and
penalties, and expenses, including reasonable accountants' and counsel fees,
incurred by any Covered Person in connection with the defense or disposition of
any action, suit or other proceeding, whether civil criminal, before any court
or administrative or legislative body, in which such Covered Person may be or
may have been involved as a party or otherwise or with which such person may be
or may have been threatened, while in office or thereafter, by reason of being
or having been such a trustee or officer, director or trustee, except with
respect to any matter as to which it has been determined in one of the manners
described below, that such Covered Person (i) did not act in good faith in the
reasonable belief that such Covered Person's action was in or not opposed to the
best interest of Registrant or (ii) had acted with willful misfeasance, bad
faith, gross negligence, or reckless disregard of the duties involved in the
conduct described in (i) and (ii) being referred to hereafter as "Disabling
Conduct".
Section 6.4 provides that a determination that the covered conduct may be
made by (i) a final
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<PAGE>
decision on the merits by a court or other body before whom the proceeding was
brought that the person to be indemnified was not liable by reason of Disabling
Conduct, (ii) dismissal of a court action or an administrative proceeding
against a Covered Person for insufficiency of evidence of Disabling Conduct, or
(iii) a reasonable determination, based upon a review of the facts, that the
indemnitee was not liable by reason of Disabling Conduct by (a) a vote of a
majority of a quorum of trustees who are neither "interested persons" of
Registrant as defined in Section 2(a)(19) of the 1940 Act nor parties to the
proceeding, or (b) an independent legal counsel in a written opinion.
In addition, Section 6.4 provides that expenses, including accountants' and
counsel fees so incurred by any such Covered Person (but excluding amounts paid
in satisfaction of judgments, in compromise or as fines or penalties), may be
paid from time to time in advance of the final disposition of any such action,
suit or proceeding, providing that the Covered Person shall have undertaken to
repay the amounts so paid to the Fund in question if it is ultimately determined
that indemnification of such expenses is not authorized under Article 6 and (i)
the Covered Person shall have provided security for such undertaking, (ii)
Registrant shall be insured against losses arising by reason of any lawful
advances, or (iii) a majority of a quorum of disinterested trustees who are not
a party to the proceeding, by an independent legal counsel in a written opinion,
based upon a review of readily available facts (as opposed to a full trial-type
inquiry), that there is reason to believe that the Covered Person ultimately
will be found entitled to indemnification.
Section 6.1 of Registrant's Agreement and Declaration of Trust provides,
among other things, that nothing in the Agreement and Declaration of Trust shall
protect any trustee or officer against any liability to Registrant or the
shareholders to which such trustee or officer would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of the office of trustee or such officer.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to trustees, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a trustee, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
During the last two fiscal years, all other business, profession, vocation
or employment of a
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substantial nature in which the investment adviser of Registrant and each
director, officer or partner of that investment adviser have been engaged for
their own account or in the capacity of director, officer, employee, partner or
trustee is as follows:
(a) OppenheimerFunds, Inc. is the investment adviser of the Registrant; it
and certain subsidiaries and affiliates act in the same capacity to other
registered investment companies as described in Parts A and B hereof and listed
in Item 28(b) below.
(b) There is set forth below information as to any other business,
profession, vocation or employment of a substantial nature in which each officer
and director of OppenheimerFunds, Inc. is, or at any time during the past two
fiscal years has been, engaged for his/her own account or in the capacity of
director, officer, employee, partner or trustee.
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<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Lawrence Apolito, None.
Vice President
Victor Babin, None.
Senior Vice President
Robert J. Bishop, Treasurer of the Oppenheimer Funds
Assistant Vice President (listed below); previously a Fund Controller for
OppenheimerFunds, Inc. (the "Manager").
Bruce Bartlett, Vice President and Portfolio Manager of
Vice President Oppenheimer Total Return Fund, Inc., Oppenheimer
Main Street Funds, Inc. and Oppenheimer Variable
Account Funds; formerly a Vice President and
Senior Portfolio Manager at First of America
Investment Corp.
George Bowen, Treasurer of the New York-based Oppenheimer Funds;
Senior Vice President Vice President, Secretary and Treasurer and
and Treasurer Treasurer of the Denver-based Oppenheimer Funds.
Vice President and Treasurer of Oppenheimer Funds
Distributor, Inc. (the "Distributor") and
HarbourView Asset Management Corporation
("HarbourView"), an investment adviser subsidiary
of OMC; Senior Vice President, Treasurer,
Assistant Secretary and a director of Centennial
Asset Management Corporation ("Centennial"), an
investment adviser subsidiary of the Manager; Vice
President, Treasurer and Secretary of Shareholder
Services, Inc. ("SSI") and Shareholder Financial
Services, Inc. ("SFSI"), transfer agent
subsidiaries of the Manager; President, Treasurer
and Director of Centennial Capital Corporation;
Vice President and Treasurer of Main Street
Advisers.
Michael A. Carbuto, Vice President and Portfolio Manager of
Vice President Centennial California Tax Trust, Centennial
New York Tax Exempt Trust and Centennial Tax
Exempt Trust; Vice President of Centennial.
William Colbourne, Formerly, Director of Alternative Staffing
Assistant Vice President Resources, and Vice President of Human Resources,
American Cancer Society.
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<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Lynn Coluccy, Formerly Vice President\Director of Internal Audit
Vice President of the Manager.
O. Leonard Darling, Formerly Co-Director of Fixed Income for
Executive Vice President State Street Research & Management Co.
Robert A. Densen, None.
Senior Vice President
Robert Doll, Jr., Vice President and Portfolio Manager of
Executive Vice President Oppenheimer Growth Fund, Oppenheimer Variable
Account Funds; Senior Vice President and Portfolio
Manager of Oppenheimer Strategic Income & Growth
Fund; Vice President of Oppenheimer Quest Value
Fund, Inc., Oppenheimer Quest Officers Value Fund,
Oppenheimer Quest For Value Funds and Oppenheimer
Quest Global Value Fund, Inc.
John Doney, Vice President Vice President and Portfolio Manager of
Oppenheimer Equity Income Fund.
Andrew J. Donohue, Secretary of the New York-based Oppenheimer
Executive Vice President Funds; Vice President of the Denver-based
& General Counsel Oppenheimer Funds; Executive Vice President,
Director and General Counsel of the Distributor;
formerly Senior Vice President and Associate
General Counsel of the Manager and the
Distributor.
Kenneth C. Eich, Treasurer of Oppenheimer Acquisition
Executive Vice President/ Corporation
Chief Financial Officer
George Evans, Vice President Vice President and Portfolio Manager of
Oppenheimer Variable Account Funds and
Oppenheimer Global Securities Fund.
Scott Farrar, Assistant Treasurer of the Oppenheimer Funds;
Assistant Vice President previously a Fund Controller for the Manager.
Ronald H. Fielding Chairman of the Board and Director of Rochester
Senior Vice President Fund Distributors, Inc. ("RFD"); President and
Director of Fielding Management Company, Inc.
("FMC"); President and Director of Rochester
Capital Advisors, Inc. ("RCAI"); President and
Director of Rochester Fund Services, Inc. ("RFS");
President and Director of Rochester Tax Managed
Fund, Inc.; Vice President and Portfolio Manager
and formerly President and Trustee of Rochester
Fund Municipals and Rochester Portfolio Series--
Limited Term New York Municipal Fund; formerly
President and Trustee of Bond Fund Series-
Oppenheimer Bond Fund for Growth.
Katherine P. Feld Vice President and Secretary of Oppenheimer Funds
Vice President and Distributor, Inc.; Secretary of HarbourView, Main
Secretary Street Advisers, Inc. and Centennial; Secretary,
Vice President and Director of Centennial Capital
Corp.
Jon S. Fossel, Director of OAC, the Manager's parent holding
Chairman of the Board company; President, CEO and a director of
and Director HarbourView; a director of SSI and SFSI;
President, Director, Trustee, and Managing General
Partner of the Denver-based Oppenheimer Funds;
President and Chairman of the Board of Main Street
Advisers, Inc.; formerly Chief Executive Officer
of the Manager.
Patricia C. Foster Formerly Secretary and General Counsel of RFD,
Vice President FMC, ROAI, RFS, Rochester Fund Municipals and
Rochester Portfolio Series-Limited Term New York
Municipal Fund, Rochester Tax Managed Fund, Inc.,
Bond Fund Series-Oppenheimer Bond Fund for Growth.
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<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Robert G. Galli, Trustee of the New York-based
Vice Chairman Oppenheimer Funds; Vice President and Counsel of
OAC; formerly he held the following positions: a
director of the Distributor, Vice President and a
director of HarbourView and Centennial, a director
of SFSI and SSI, an officer of other Oppenheimer
Funds and Executive Vice President & General
Counsel of the Manager and the Distributor.
Linda Gardner, None.
Assistant Vice President
Ginger Gonzalez, Formerly 1st Vice President/Director of
Vice President Creative Services for Shearson Lehman Brothers.
Mildred Gottlieb, Formerly served as a Strategy Consultant
Assistant Vice President for the Private Client Division of Merrill Lynch.
Dorothy Grunwager, None.
Assistant Vice President
Caryn Halbrecht, Vice President and Portfolio Manager of
Vice President Oppenheimer Insured Tax-Exempt Fund and
Oppenheimer Intermediate Tax Exempt Fund; an
officer of other Oppenheimer Funds; formerly Vice
President of Fixed Income Portfolio Management at
Bankers Trust.
Barbara Hennigar, President and Director of Shareholder
President and Chief Financial Service, Inc.
Executive Officer of
Oppenheimer Shareholder
Services, a division of OMC.
Alan Hoden, Vice President None.
Merryl Hoffman, None.
Vice President
Scott T. Huebl, None.
Assistant Vice President
Jane Ingalls, Formerly a Senior Associate with Robinson,
Assistant Vice President Lake/Sawyer Miller.
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<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Bennett Inkeles, Formerly employed by Doremus & Company, an
Assistant Vice President advertising agency.
Frank Jennings Portfolio Manager of Oppenheimer Global
Vice President Growth & Income Fund. Formerly a Managing
Director of Global Equities at Paine Webber's
Mitchell Hutchins division.
Stephen Jobe, None.
Vice President
Heidi Kagan, None.
Assistant Vice President
Avram Kornberg, Formerly a Vice President with Bankers Trust.
Vice President
Paul LaRocco, Portfolio Manager of Oppenheimer Capital
Assistant Vice President Appreciation Fund and Oppenheimer Variable Account
Funds; Associate Portfolio Manager of Oppenheimer
Discovery Fund. Formerly a Securities Analyst for
Columbus Circle Investors.
Mitchell J. Lindauer, None.
Vice President
Loretta McCarthy, None.
Senior Vice President
Bridget Macaskill, President, Director and Trustee of the Oppenheimer
President, Chief Executive Funds; President and a Director of OAC,
Officer and Director HarbourView and Oppenheimer Partnership Holdings,
Inc; Director of Main Street Advisers, Inc.;
Chairman and Director of SSI.
Sally Marzouk, None.
Vice President
Marilyn Miller, Formerly a Director of marketing for
Vice President TransAmerica Fund Management Company.
Robert J. Milnamow, Vice President and Portfolio Manager of
Vice President Oppenheimer Main Street Funds, Inc. Formerly a
Portfolio Manager with Phoenix Securities Group.
Denis R. Molleur, None.
Vice President
Kenneth Nadler, None.
Vice President
David Negri, Vice President and Portfolio Manager of
Vice President Oppenheimer Variable Account Funds, Oppenheimer
Asset Allocation Fund, Oppenheimer Strategic
Income Fund, Oppenheimer Strategic Income & Growth
Fund; an officer of other Oppenheimer Funds.
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<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Barbara Niederbrach, None.
Assistant Vice President
Stuart Novek, Formerly a Director Account Supervisor for
Vice President J. Walter Thompson.
Robert A. Nowaczyk, None.
Vice President
Robert E. Patterson, Vice President and Portfolio Manager of
Senior Vice President Oppenheimer Main Street Funds, Inc., Oppenheimer
Multi-State Tax-Exempt Trust, Oppenheimer
Tax-Exempt Fund, Oppenheimer California Tax-Exempt
Fund, Oppenheimer New York Tax-Exempt Fund and
Oppenheimer Tax-Free Bond Fund; Vice President of
The New York Tax-Exempt Income Fund, Inc.; Vice
President of Oppenheimer Multi-Sector Income
Trust.
Tilghman G. Pitts III, Chairman and Director of the Distributor.
Executive Vice President
and Director
Jane Putnam, Associate Portfolio Manager of Oppenheimer Growth
Assistant Vice President Fund; Vice President and Portfolio Manager of
Oppenheimer Target Fund and Oppenheimer Variable
Account Funds. Formerly Senior Investment Officer
and Portfolio Manager with Chemical Bank.
Russell Read, Formerly an International Finance Consultant
Vice President for Dow Chemical.
Thomas Reedy, Vice President of Oppenheimer Multi-Sector
Vice President Income Trust and Oppenheimer Multi-Government
Trust; an officer of other Oppenheimer Funds;
formerly a Securities Analyst for the Manager.
David Robertson, None.
Vice President
Adam Rochlin, Formerly a Product Manager for Metropolitan
Assistant Vice President Life Insurance Company.
Michael S. Rosen, Vice President of RFS; President and Director of
Vice President RFD; Vice President and Director of FMC; Vice
President and director of RCAI; Vice President
and Director of Rochester Tax Managed Fund Inc.;
Vice President and Portfolio Manager and former
Trustee of Bond Fund Series-Oppenheimer Bond
Fund For Growth; formerly Vice President and
Trustee of Rochester Fund Municipals and
Rochester Portfolio Series-Limited Term New
York Municipal Fund.
David Rosenberg, Vice President and Portfolio Manager of
Vice President Oppenheimer Limited-Term Government Fund,
Oppenheimer U.S. Government Trust and Oppenheimer
Integrity Funds. Formerly Vice President and
Senior Portfolio Manager for Delaware Investment
Advisors.
C-9
<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Richard H. Rubinstein, Vice President and Portfolio Manager of
Vice President Oppenheimer Asset Allocation Fund, Oppenheimer
Fund and Oppenheimer Variable Account Funds; an
officer of other Oppenheimer Funds; formerly Vice
President and Portfolio Manager/Security Analyst
for Oppenheimer Capital Corp., an investment
adviser.
Lawrence Rudnick, Formerly Vice President of Dollar Dry Dock
Assistant Vice President Bank.
James Ruff, None.
Executive Vice President
Ellen Schoenfeld, None.
Assistant Vice President
Diane Sobin, Vice President and Portfolio Manager of
Vice President Oppehneimer Gold & Special Minerals Fund,
Oppenheimer Total Return Fund, Inc. Oppenheimer
Main Street Funds, Inc. and Oppenheimer Variable
Account Funds; formerly a Vice President and
Senior Portfolio Manager for Dean Witter
InterCapital, Inc.
Nancy Sperte, None.
Senior Vice President
Donald W. Spiro, President and Trustee of the New York-based
Chairman Emeritus Oppenheimer Funds; formerly Chairman of the
and Director Manager and the Distributor.
Arthur Steinmetz, Vice President and Portfolio Manager of
Senior Vice President Oppenheimer Strategic Income Fund, Oppenheimer
Strategic Income & Growth Fund; an officer of
other Oppenheimer Funds.
Ralph Stellmacher, Vice President and Portfolio Manager of
Senior Vice President Oppenheimer Champion Income Fund and Oppenheimer
High Yield Fund; an officer of other Oppenheimer
Funds.
John Stoma, Vice President Formerly Vice President of Pension Marketing with
Manulife Financial.
James C. Swain, Chairman, CEO and Trustee, Director or
Vice Chairman of the Managing Partner of the Denver-based
Board of Directors Oppenheimer Funds; President and a Director
and Director of Centennial; formerly President and Director of
OAMC, and Chairman of the Board of SSI.
James Tobin, Vice President None.
C-10
<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Jay Tracey, Vice President Vice President of the Manager; Vice President and
Portfolio Manager of Oppenheimer Discovery Fund.
Formerly Managing Director of Buckingham Capital
Management.
Gary Tyc, Vice President, Assistant Treasurer of the Distributor and
Assistant Secretary SFSI.
and Assistant Treasurer
Jeffrey Van Giesen Formerly employed by Kidder Peabody Asset
Vice President Management.
Ashwin Vasan, Vice President and Portfolio Manager of
Vice President Oppenheimer Multi-Sector Income Trust, Oppenheimer
Multi-Government Trust and Oppenheimer
International Bond Fund; an officer of other
Oppenheimer Funds.
Valerie Victorson, None.
Vice President
Dorothy Warmack, Vice President and Portfolio Manager of Daily
Vice President Cash Accumulation Fund, Inc., Oppenheimer Cash
Reserves, Centennial America Fund, L.P.,
Centennial Government Trust and Centennial Money
Market Trust; Vice President of Centennial.
Christine Wells, None.
Vice President
William L. Wilby, Vice President and Portfolio Manager of
Senior Vice President Oppenheimer Variable Account Funds,
Oppenheimer Global Fund and Oppenheimer Global
Growth & Income Fund; Vice President of
HarbourView; an officer of other Oppenheimer
Funds.
Susan Wilson-Perez, None.
Vice President
Carol Wolf, Vice President and Portfolio Manager of
Vice President Oppenheimer Money Market Fund, Inc., Centennial
America Fund, L.P., Centennial Government Trust,
Centennial Money Market Trust and Daily Cash
Accumulation Fund, Inc.; Vice President of
Oppenheimer Multi-Sector Income Trust; Vice
President of Centennial.
Robert G. Zack, Associate General Counsel of the Manager;
Senior Vice President Assistant Secretary of the Oppenheimer
and Assistant Secretary Funds; Assistant Secretary of SSI, SFSI; an
officer of other Oppenheimer Funds.
Eva A. Zeff, An officer of certain Oppenheimer Funds; Assistant
Assistant Vice President Vice President formerly a Securities Analyst for
the Manager.
C-11
<PAGE>
Name & Current Position Other Business and Connections
with OppenheimerFunds, Inc. During the Past Two Years
- -------------------------- ------------------------------
Arthur J. Zimmer, Vice President and Portfolio Manager of
Vice President Oppenheimer Variable Account Funds, Centennial
America Fund, L.P., Centennial Government Trust,
Centennial Money Market Trust and Daily Cash
Accumulation Fund, Inc.; Vice President of
Oppenheimer Multi-Sector Income Trust; Vice
President of Centennial; an officer of other
Oppenheimer Funds.
The Oppenheimer Funds include the New York-based Oppenheimer Funds, and the
Denver-based Oppenheimer Funds and the Rochester-based Oppenheimer Funds set
forth below:
New York-based Oppenheimer Funds
--------------------------------
Oppenheimer Asset Allocation Fund
Oppenheimer California Tax-Exempt Fund
Oppenheimer Discovery Fund
Oppenheimer Enterprise Fund
Oppenheimer Global Emerging Growth Fund
Oppenheimer Global Fund
Oppenheimer Global Growth & Income Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Growth Fund
Oppenheimer Money Market Fund, Inc.
Oppenheimer Multi-Government Trust
Oppenheimer Multi-Sector Income Trust
Oppenheimer Multi-State Tax-Exempt Trust
Oppenheimer New York Tax-Exempt Fund
Oppenheimer Fund
Oppenheimer Quest Global Value Fund, Inc.
Oppenheimer Quest Value Fund, Inc.
Oppenheimer Quest for Value Funds
Oppenheimer Target Fund
Oppenheimer Tax-Free Bond Fund
Oppenheimer U.S. Government Trust
Denver-based Oppenheimer Funds
------------------------------
Oppenheimer Cash Reserves
Centennial America Fund, L.P.
Centennial California Tax Exempt Trust
Centennial Government Trust
Centennial Money Market Trust
Centennial New York Tax Exempt Trust
Centennial Tax Exempt Trust
Daily Cash Accumulation Fund, Inc.
The New York Tax-Exempt Income Fund, Inc.
Oppenheimer Champion Income Fund
Oppenheimer Equity Income Fund
Oppenheimer High Yield Fund
Oppenheimer Integrity Funds
Oppenheimer International Bond Fund
Oppenheimer Limited-Term Government Fund
Oppenheimer Main Street Funds, Inc.
C-12
<PAGE>
Oppenheimer Strategic Funds Trust
Oppenheimer Strategic Income & Growth Fund
Oppenheimer Tax-Exempt Fund
Oppenheimer Total Return Fund, Inc.
Oppenheimer Variable Account Funds
Rochester-based Funds
-----------------
Rochester Fund Municipals
Bond Fund Series--Oppenheimer Bond Fund for Growth
(f/k/a Rochester Fund Series--The Bond Fund For Growth)
Rochester Portfolio Series--Limited Term New York
Municipal Fund
The address of OppenheimerFunds, Inc. the New York-based Oppenheimer
Funds, Oppenheimer Funds Distributor, Inc., Harbourview Asset Management Corp.,
Oppenheimer Partnership Holdings, Inc., and Oppenheimer Acquisition Corp. is Two
World Trade Center, New York, New York 10048-0203.
The address of the Denver-based Oppenheimer Funds, Shareholder Financial
Services, Inc., Shareholder Services, Inc., Oppenheimer Shareholder Services,
Centennial Asset Management Corporation, Centennial Capital Corp., and Main
Street Advisers, Inc. is 3410 South Galena Street, Denver, Colorado 80231.
The address of Rochester-based Oppenheimer Funds is 350 Linden Oaks,
Rochester, New York 14625
ITEM 29. PRINCIPAL UNDERWRITERS
(a) OppenheimerFunds Distributor, Inc. is the Distributor of Registrant's
shares. It is also the Distributor of each of the other registered open-end
investment companies for which Oppenheimer Funds, Inc. is the investment
adviser, as described in Part A and B of this Registration Statement and listed
in Item 28(b) above.
(b) The directors and officers of the Registrant's principal underwriter
are:
Positions
and
Name & Principal Positions & Offices Offices with
Business Address with Underwriter Registrant
- ---------------- ------------------- -------------
Christopher Blunt Vice President None
6 Baker Avenue
Westport, CT 06880
George Clarence Bowen+ Vice President & Treasurer Vice President and
Treasurer of the
NY-based Oppenheimer
Funds,Vice President,
Secretary and Treasurer
of the Denver-based
Oppenheimer Funds;
Treasurer of the
Rochester-based
Oppenheimer Funds
Julie Bowers Vice President None
21 Dreamwold Road
Scituate, MA 02066
Peter W. Brennan Vice President None
1940 Cotswold Drive
Orlando, FL 32825
Mary Ann Bruce* Senior Vice President - None
Financial Institution Div.
Robert Coli Vice President None
12 Whitetail Lane
Bedminster, NJ 07921
C-13
<PAGE>
Positions
and
Name & Principal Positions & Offices Offices with
Business Address with Underwriter Registrant
- ---------------- ------------------- -------------
Ronald T. Collins Vice President None
710-3 E. Ponce DeLeon Ave.
Decatur, GA 30030
Bill Coughlin Vice President None
1400 Laurel Avenue
Apt. W710
Minneapolis, MN 55403
Mary Crooks+ Vice President None
Paul Delli Bovi Vice President None
750 West Broadway
Apt. 5M
Long Beach, NY 11561
Andrew John Donohue* Executive Vice Secretary of the
President & Director NY-based and
Rochester-based
Oppenheimer
Funds; Vice President
of the Denver-based
Oppenheimer Funds
Wendy H. Ehrlich Vice President None
4 Craig Street
Jericho, NY 11753
Kent Elwell Vice President None
41 Craig Place
Cranford, NJ 07016
John Ewalt Vice President None
2301 Overview Dr. NE
Tacoma, WA 98422
Katherine P. Feld* Vice President & Secretary None
Mark Ferro Vice President None
43 Market Street
Breezy Point, NY 11697
Ronald H. Fielding++ Vice President None
Reed F. Finley Vice President - None
1657 Graefield Financial Institution Div.
Birmingham, MI 48009
Wendy Fishler* Vice President - None
Financial Institution Div.
Wayne Flanagan Vice President - None
36 West Hill Road Financial Institution Div.
Brookline, NH 03033
Ronald R. Foster Senior Vice President - None
11339 Avant Lane Eastern Division Manager
Cincinnati, OH 45249
Patricia Gadecki Vice President None
6026 First Ave. South,
Apt. 10
St. Petersburg, FL 33707
Luiggino Galleto Vice President None
10239 Rougemont Lane
Charlotte, NC 28277
C-14
<PAGE>
Positions
and
Name & Principal Positions & Offices Offices with
Business Address with Underwriter Registrant
- ---------------- ------------------- -------------
Mark Giles Vice President - None
5506 Bryn Mawr Financial Institution Div.
Dallas, TX 75209
Ralph Grant* Vice President/National None
Sales Manager - Financial
Institution Div.
Sharon Hamilton Vice President None
720 N. Juanita Ave. - #1
Redondo Beach, CA 90277
Carla Jiminez Vice President None
609 Chimney Bluff Drive
Mt. Pleasant, SC 29464
Mark D. Johnson Vice President None
7512 Cromwell Dr. Apt 1
Clayton, MO 63105
Michael Keogh* Vice President None
Richard Klein Vice President None
4011 Queen Avenue South
Minneapolis, MN 55410
Ilene Kutno* Assistant Vice President None
Wayne A. LeBlang Senior Vice President - None
23 Fox Trail Director Eastern Div.
Lincolnshire, IL 60069
Dawn Lind Vice President - None
7 Maize Court Financial Institution Div.
Melville, NY 11747
James Loehle Vice President None
30 John Street
Cranford, NJ 07016
Laura Mulhall* Senior Vice President - None
Director of Key Accounts
Charles Murray Vice President None
50 Deerwood Drive
Littleton, CO 80127
C-15
<PAGE>
Positions
and
Name & Principal Positions & Offices Offices with
Business Address with Underwriter Registrant
- ---------------- ------------------- -------------
Joseph Norton Vice President None
1550 Bryant Street
San Francisco, CA 94103
Patrick Palmer Vice President None
958 Blue Mountain Cr.
West Lake Village, CA 91362
Randall Payne Vice President - None
1307 Wandering Way Dr. Financial Institution Div.
Charlotte, NC 28226
Gayle Pereira Vice President None
2707 Via Arboleda
San Clemente, CA 92672
Charles K. Pettit Vice President None
22 Fall Meadow Dr.
Pittsford, NY 14534
Bill Presutti Vice President None
664 Circuit Road
Portsmouth, NH 03801
Tilghman G. Pitts, III* Chairman & Director None
Elaine Puleo* Vice President - None
Financial Institution Div.
Minnie Ra Vice President - None
109 Peach Street Financial Institution Div.
Avenel, NJ 07001
Ian Robertson Vice President None
4204 Summit Wa
Marietta, GA 30066
Robert Romano Vice President None
1512 Fallingbrook Drive
Fishers, IN 46038
Michael S. Rosen++ Vice President None
James Ruff* President None
Timothy Schoeffler Vice President None
3118 N. Military Road
Arlington, VA 22207
Mark Schon Vice President None
10483 E. Corrine Dr.
Scottsdale, AZ 85259
C-16
<PAGE>
Positions
and
Name & Principal Positions & Offices Offices with
Business Address with Underwriter Registrant
- ---------------- ------------------- -------------
Michael Sciortino Vice President None
785 Beau Chene Dr.
Mandeville, LA 70448
James A. Shaw Vice President - None
5155 West Fair Place Financial Institution Div.
Littleton, CO 80123
Robert Shore Vice President - None
26 Baroness Lane Financial Institution Div.
Laguna Niguel, CA 92677
Peggy Spilker Vice President - None
2017 N. Cleveland, #2 Financial Institution Div.
Chicago, IL 60614
Michael Stenger Vice President None
C/O America Building
30 East Central Pkwy
Suite 1008
Cincinnati, OH 45202
George Sweeney Vice President None
1855 O'Hara Lane
Middletown, PA 17057
Scott McGregor Tatum Vice President None
7123 Cornelia Lane
Dallas, TX 75214
Dave Thomas Vice President - None
111 South Joliet Circle Financial Institution Div.
#304
Aurora, CO 80112
Philip St. John Trimble Vice President None
2213 West Homer
Chicago, IL 60647
Gary Paul Tyc+ Assistant Treasurer None
Mark Stephen Vandehey+ Vice President None
Gregory K. Wilson Vice President None
2 Side Hill Road
Westport, CT 06880
- --------
* Two World Trade Center, New York, NY 10048-0203
+ 3410 South Galena St., Denver, CO 80231
++ 350 Linden Oaks, Rochester, NY 14625-2807
C-17
<PAGE>
(c) Not applicable.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
All accounts, books or other documents required to be maintained by Section
31(a) of the Investment Company Act and the General Rules and Regulations
promulgated thereunder, are in possesion of OppenheimerFunds, Inc. at its
offices at 3410 South Galena Street, Denver, Colorado 80231, except that records
with regard to items covered by Registrant's Custodian Agreement, are maintained
by, or under agreement with, its Custodian, Investors Bank & Trust Company, 89
South Street, Boston, MA 02111.
ITEM 31. MANAGEMENT SERVICES
There are no management-related service contracts not discussed in Parts A
and B of this Form under which services are provided to the Registrant and,
therefore, this Item 31 is not applicable.
ITEM 32. UNDERTAKINGS
(a) Not applicable
(b) Not applicable
(c) The Registrant hereby undertakes to furnish each person to whom a
Prospectus is delivered with a copy of the Registrant's latest annual report to
shareholders, upon request and without charge.
C-18
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and/or the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of New York and State of New York on the 5th day of
March, 1996
ROCHESTER FUND MUNICIPALS
By: BRIDGET A. MACASKILL*
--------------------------------
Bridget A. Macaskill,
Chairman of the Board and President
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated:
Signatures Title Date
- ---------- ----- ----
BRIDGET A. MACASKILL* Chairman of the Board, March 5, 1996
- ---------------------------- President (Principal
Bridget A. Macaskill Executive Officer) and
Trustee
GEORGE C. BOWEN* Treasurer (Principal March 5, 1996
- ---------------------------- Financial and Accounting
George C. Bowen Officer)
JOHN CANNON* Trustee March 5, 1996
- ----------------------------
John Cannon
PAUL Y. CLINTON* Trustee March 5, 1996
- ----------------------------
Paul Y. Clinton
THOMAS W. COURTNEY* Trustee March 5, 1996
- ----------------------------
Thomas W. Courtney
LACY B. HERRMANN* Trustee March 5, 1996
- ----------------------------
Lacy B. Herrmann
GEORGE LOFT* Trustee March 5, 1996
- ----------------------------
George Loft
*By: /s/ ROBERT G. ZACK
- ----------------------------
Robert G. Zack,
Attorney-in-Fact
EXHIBIT 11
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 17 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
January 30, 1996, relating to the financial statements and schedule of
financial highlights of Rochester Fund Municipals which appears in such
Statement of Additional Information, and to the incorporation by reference of
our report into the Prospectus which constitutes part of this Registration
Statement. We also consent to the reference to us under the heading "Financial
Highlights" in such Prospectus.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Rochester, New York
March 5, 1996
Distribution Yield Calculations:
Formula:
Dividend Yield of the Class = (a/b)*365
a = Dividends of the Class
---------------------------------------------------------------
Max. Offering Price of the Class (last day of period)
b = Number of days (accrual period)
Examples:
Rochester Fund Municipals
Dividend paid = $0.091
MOP at 12/31/95 = $18.94
NAV at 12/31/95 = $18.18
Number of days = 31
at MOP, a = ($0.091/$18.94) at NAV, a = ($0.091/$18.18)
b = 31
Dividend Yield of the Class at MOP = (a/b)*365 = 5.66%
Dividend Yield of the Class at NAV = (a/b)*365 = 5.89%
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
23-Dec-94 Inc $0.0950 $16.26 $16.26 0.0130 58.8582 31-Dec-94 $16.99 $16.31 $ 959.9765
24-Jan-95 Inc $0.0950 $16.47 $16.47 0.3395 59.1977 31-Jan-95 $17.39 $16.69 $ 988.0088
21-Feb-95 Inc $0.0900 $17.06 $17.06 0.3123 59.5100 28-Feb-95 $17.93 $17.21 $1,024.1663
28-Mar-95 Inc $0.0900 $17.29 $17.29 0.3098 59.8198 31-Mar-95 $18.00 $17.28 $1,033.6853
25-Apr-95 Inc $0.0900 $17.44 $17.44 0.3087 60.1285 30-Apr-95 $17.95 $17.23 $1,036.0132
23-May-95 Inc $0.0900 $17.61 $17.61 0.3073 60.4358 31-May-95 $18.51 $17.77 $1,073.9433
27-Jun-95 Inc $0.0900 $17.71 $17.71 0.3071 60.7429 30-Jun-95 $18.33 $17.60 $1,069.0742
25-Jul-95 Inc $0.0900 $17.51 $17.51 0.3122 61.0551 31-Jul-95 $18.27 $17.54 $1,070.9056
22-Aug-95 Inc $0.0900 $17.40 $17.40 0.3158 61.3709 31-Aug-95 $18.42 $17.68 $1,085.0367
26-Sep-95 Inc $0.0910 $17.69 $17.69 0.3125 61.6834 30-Sep-95 $18.44 $17.70 $1,091.7953
24-0ct-95 Inc $0.0910 $17.87 $17.87 0.3109 61.9943 31-0ct-95 $18.64 $17.89 $1,109.0772
21-Nov-95 Inc $0.0910 $17.95 $17.95 0.3111 62.3054 30-Nov-95 $18.83 $18.08 $1,126.4808
27-Dec-95 Inc $0.0910 $18.11 $18.11 0.3084 62.6138 29-Dec-95 $18.94 $18.18 $1,138.3180
POP
Average annual total return for the one year period ending 12/31/95 13.83%
Cumulative return for the one year period ended 12/31/95 13.83%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
27-Dec-90 Inc $0.100 $16.26 $16.26 0.0104 59.1017 31-Dec-90 $16.92 $16.24 $ 959.8109
29-Jan-91 Inc $0.100 $16.25 $16.25 0.3637 59.4654 31-Jan-91 $16.98 $16.30 $ 969.2853
26-Feb-91 Inc $0.100 $16.31 $16.31 0.3646 59.8300 28-Feb-91 $17.01 $16.33 $ 977.0232
27-Mar-91 Inc $0.100 $16.35 $16.35 0.3659 60.1959 28-Mar-91 $17.04 $16.36 $ 984.8042
26-Apr-91 Inc $0.100 $16.52 $16.52 0.3644 60.5603 30-Apr-91 $17.24 $16.55 $1,002.2722
29-May-91 Inc $0.100 $16.52 $16.52 0.3666 60.9269 31-May-91 $17.28 $16.59 $1,010.7765
26-Jun-91 Inc $0.100 $16.51 $16.51 0.3690 61.2959 28-Jun-91 $17.25 $16.56 $1,015.0594
29-Jul-91 Inc $0.100 $16.68 $16.68 0.3675 61.6634 31-Jul-91 $17.39 $16.69 $1,029.1614
28-Aug-91 Inc $0.100 $16.79 $16.79 0.3673 62.0307 30-Aug-91 $17.52 $16.82 $1,043.3556
26-Sep-91 Inc $0.100 $16.88 $16.88 0.3675 62.3982 30-Sep-91 $17.63 $16.92 $1,055.7768
29-0ct-91 Inc $0.100 $16.93 $16.93 0.3686 62.7668 31-0ct-91 $17.65 $16.94 $1,063.2688
26-Nov-91 Inc $0.100 $16.91 $16.91 0.3712 63.1380 29-Nov-91 $17.63 $16.92 $1,068.2942
27-Dec-91 Inc $0.1351 $16.95 $16.95 0.5032 63.6412 31-Dec-91 $17.72 $17.01 $1,082.5360
29-Jan-92 Inc $0.1000 $16.87 $16.87 0.3772 64.0184 31-Jan-92 $17.55 $16.85 $1,078.7093
26-Feb-92 Inc $0.1000 $16.80 $16.80 0.3811 64.3995 28-Feb-92 $17.58 $16.88 $1,087.0628
27-Mar-92 Inc $0.1000 $16.89 $16.89 0.3813 64.7808 31-Mar-92 $17.64 $16.93 $1,096.7382
28-Apr-92 Inc $0.1000 $17.00 $17.00 0.3811 65.1619 30-Apr-92 $17.73 $17.02 $1,109.0548
27-May-92 Inc $0.1000 $17.11 $17.11 0.3808 65.5427 29-May-92 $17.81 $17.10 $1,120.7794
26-Jun-92 Inc $0.1000 $17.35 $17.35 0.3778 65.9205 30-Jun-92 $18.09 $17.37 $1,145.0383
29-Jul-92 Inc $0.1000 $17.91 $17.91 0.3681 66.2886 31-Jul-92 $18.64 $17.89 $1,185.9022
27-Aug-92 Inc $0.1000 $17.55 $17.55 0.3777 66.6663 31-Aug-92 $18.32 $17.59 $1,172.6594
28-Sep-92 Inc $0.1000 $17.55 $17.55 0.3799 67.0462 30-Sep-92 $18.27 $17.54 $1,175.9896
28-0ct-92 Inc $0.1000 $17.27 $17.27 0.3882 67.4344 30-0ct-92 $18.09 $17.37 $1,171.3347
25-Nov-92 Inc $0.1000 $17.61 $17.61 0.3829 67.8173 30-Nov-92 $18.33 $17.60 $1,193.5837
29-Dec-92 Inc $0.1000 $17.64 $17.64 0.3845 68.2018 31-Dec-92 $18.39 $17.65 $1,203.7610
28-Jan-93 Inc $0.1000 $17.72 $17.72 0.3849 68.5867 31-Jan-93 $18.49 $17.75 $1,217.4131
24-Feb-93 Inc $0.1000 $18.30 $18.30 0.3748 68.9615 28-Feb-93 $19.20 $18.43 $1,270.9596
29-Mar-93 Inc $0.1000 $18.21 $18.21 0.3787 69.3402 31-Mar-93 $18.97 $18.21 $1,262.6842
28-Apr-93 Inc $0.1000 $18.31 $18.31 0.3787 69.7189 30-Apr-93 $19.17 $18.40 $1,282.8269
27-May-93 Inc $0.0950 $18.38 $18.38 0.3604 70.0793 31-May-93 $19.15 $18.38 $1,288.0567
28-Jun-93 Inc $0.0950 $18.67 $18.67 0.3566 70.4359 30-Jun-93 $19.49 $18.71 $1,317.8548
28-Jul-93 Inc $0.0950 $18.57 $18.57 0.3603 70.7962 31-Jul-93 $19.41 $18.63 $1,318.9324
27-Aug-93 Inc $0.0950 $18.98 $18.98 0.3544 71.1506 31-Aug-93 $19.80 $19.01 $1,352.5720
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
28-Sep-93 Inc $0.1000 $19.18 $19.18 0.3710 71.5216 30-Sep-93 $19.91 $19.11 $1,366.7769
27-0ct-93 Inc $0.0950 $19.11 $19.11 0.3555 71.8771 29-0ct-93 $19.92 $19.12 $1,374.2893
26-Nov-93 Inc $0.0950 $18.78 $18.78 0.3636 72.2407 30-Nov-93 $19.54 $18.76 $1,355.2347
23-Dec-93 Inc $0.0970 $19.02 $19.02 0.3684 72.6091 31-Dec-93 $19.79 $19.00 $1,379.5720
24-Jan-94 Inc $0.0950 $18.98 $18.98 0.3634 72.9725 01-Jan-94 $19.93 $19.13 $1,395.9631
22-Feb-94 Inc $0.0950 $18.71 $18.71 0.3705 73.3430 28-Feb-94 $19.34 $18.57 $1,361.9787
24-Mar-94 Inc $0.0950 $18.09 $18.09 0.3852 73.7282 31-Mar-94 $18.39 $17.65 $1,301.3019
22-Apr-94 Inc $0.0950 $17.52 $17.52 0.3998 74.1280 30-Apr-94 $18.20 $17.47 $1,295.0154
24-May-94 Inc $0.0950 $17.43 $17.43 0.4040 74.5320 31-May-94 $18.26 $17.53 $1,306.5452
23-Jun-94 Inc $0.0950 $17.56 $17.56 0.4032 74.9352 30-Jun-94 $18.06 $17.34 $1,299.3756
22-Jul-94 Inc $0.0950 $17.46 $17.46 0.4077 75.3429 31-Jul-94 $18.31 $17.58 $1,324.5274
24-Aug-94 Inc $0.0950 $17.47 $17.47 0.4097 75.7526 31-Aug-94 $18.31 $17.58 $1,331.7299
23-Sep-94 Inc $0.0950 $17.14 $17.14 0.4199 76.1725 30-Sep-94 $17.78 $17.07 $1,300.2638
24-0ct-94 Inc $0.0950 $16.77 $16.77 0.4315 76.6040 31-0ct-94 $17.25 $16.56 $1,268.5615
22-Nov-94 Inc $0.0950 $15.59 $15.59 0.4668 77.0708 30-Nov-94 $16.58 $15.92 $1,226.9664
23-Dec-94 Inc $0.0950 $16.26 $16.26 0.4503 77.5211 31-Dec-94 $16.99 $16.31 $1,264.3684
24-Jan-95 Inc $0.0950 $16.47 $16.47 0.4471 77.9682 31-Jan-95 $17.39 $16.69 $1,301.2885
21-Feb-95 Inc $0.0900 $17.06 $17.06 0.4113 78.3795 28-Feb-95 $17.93 $17.21 $1,348.9104
28-Mar-95 Inc $0.0900 $17.29 $17.29 0.4080 78.7875 31-Mar-95 $18.00 $17.28 $1,361.4472
25-Apr-95 Inc $0.0900 $17.44 $17.44 0.4066 79.1941 30-Apr-95 $17.95 $17.23 $1,364.5136
23-May-95 Inc $0.0900 $17.61 $17.61 0.4047 79.5988 31-May-95 $18.51 $17.77 $1,414.4699
27-Jun-95 Inc $0.0900 $17.71 $17.71 0.4045 80.0033 30-Jun-95 $18.33 $17.60 $1,408.0573
25-Jul-95 Inc $0.0900 $17.51 $17.51 0.4112 80.4145 31-Jul-95 $18.27 $17.54 $1,410.4695
22-Aug-95 Inc $0.0900 $17.40 $17.40 0.4159 80.8304 31-Aug-95 $18.42 $17.68 $1,429.0807
26-Sep-95 Inc $0.0910 $17.69 $17.69 0.4115 81.2419 30-Sep-95 $18.44 $17.70 $1,437.9808
24-0ct-95 Inc $0.0910 $17.87 $17.87 0.4095 81.6514 31-0ct-95 $18.64 $17.89 $1,460.7427
21-Nov-95 Inc $0.0910 $17.95 $17.95 0.4098 82.0612 30-Nov-95 $18.83 $18.08 $1,483.6657
27-Dec-95 Inc $0.0910 $18.11 $18.11 0.4062 82.4674 29-Dec-95 $18.94 $18.18 $1,499.2565
POP
Average annual total return for the five year period ending 12/31/95 8.44%
Cumulative return for the five year period ended 12/31/95 49.93%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
62.8141 30-May-86 $16.58 $15.92 $1,000.0000
62.8141 30-Jun-86 $16.64 $15.97 $1,003.1407
62.8141 31-Jul-86 $16.74 $16.07 $1,009.4221
29-Aug-86 Inc $0.300 $15.83 $15.83 1.1904 64.0045 29-Aug-86 $16.51 $15.85 $1,014.4709
64.0045 30-Sep-86 $16.69 $16.02 $1,025.3516
64.0045 31-0ct-86 $16.79 $16.12 $1,031.7521
64.0045 28-Nov-86 $16.95 $16.27 $1,041.3527
08-Dec-86 Inc $0.300 $15.99 $15.99 1.2008 65.2053 31-Dec-86 $16.73 $16.06 $1,047.1966
65.2053 30-Jan-87 $16.61 $15.95 $1,040.0241
02-Feb-87 Inc $0.208 $15.95 $15.95 0.8503 66.0556 27-Feb-87 $16.59 $15.93 $1,052.2652
27-Feb-87 Inc $0.100 $15.93 $15.93 0.4147 66.4703 27-Feb-87 $16.59 $15.93 $1,058.8714
27-Mar-87 Inc $0.100 $16.01 $16.01 0.4152 66.8855 31-Mar-87 $16.52 $15.86 $1,060.8036
29-Apr-87 Inc $0.100 $15.35 $15.35 0.4357 67.3212 30-Apr-87 $16.00 $15.36 $1,034.0532
28-May-87 Inc $0.100 $15.17 $15.17 0.4438 67.7650 29-May-87 $15.81 $15.18 $1,028.6722
26-Jun-87 Inc $0.100 $15.28 $15.28 0.4435 68.2085 30-Jun-87 $16.00 $15.36 $1,047.6821
28-Jul-87 Inc $0.100 $15.34 $15.34 0.4446 68.6531 31-Jul-87 $15.97 $15.33 $1,052.4516
27-Aug-87 Inc $0.100 $15.43 $15.43 0.4449 69.0980 31-Aug-87 $16.06 $15.42 $1,065.4907
28-Sep-87 Inc $0.100 $15.31 $15.31 0.4513 69.5493 30-Sep-87 $15.92 $15.28 $1,062.7129
28-0ct-87 Inc $0.100 $14.95 $14.95 0.4652 70.0145 30-0ct-87 $15.57 $14.95 $1,046.7163
27-Nov-87 Inc $0.100 $15.37 $15.37 0.4555 70.4700 30-Nov-87 $16.00 $15.36 $1,082.4187
29-Dec-87 Inc $0.100 $15.42 $15.42 0.4570 70.9270 31-Dec-87 $15.95 $15.31 $1,085.8919
28-Jan-88 Inc $0.100 $15.52 $15.52 0.4570 71.3840 29-Jan-88 $16.19 $15.54 $1,109.3069
26-Feb-88 Inc $0.100 $15.73 $15.73 0.4538 71.8378 29-Feb-88 $16.38 $15.72 $1,129.2897
29-Mar-88 Inc $0.100 $15.62 $15.62 0.4599 72.2977 31-Mar-88 $16.28 $15.63 $1,130.0126
28-Apr-88 Inc $0.100 $15.67 $15.67 0.4614 72.7591 29-Apr-88 $16.32 $15.67 $1,140.1346
27-May-88 Inc $0.100 $15.67 $15.67 0.4643 73.2234 31-May-88 $16.32 $15.67 $1,147.4102
29-Jun-88 Inc $0.100 $15.75 $15.75 0.4649 73.6883 30-Jun-88 $16.42 $15.76 $1,161.3271
29-Jul-88 Inc $0.100 $15.83 $15.83 0.4655 74.1538 29-Jul-88 $16.49 $15.83 $1,173.8542
30-Aug-88 Inc $0.100 $15.82 $15.82 0.4687 74.6225 31-Aug-88 $16.49 $15.83 $1,181.2737
29-Sep-88 Inc $0.100 $15.97 $15.97 0.4673 75.0898 30-Sep-88 $16.64 $15.97 $1,199.1836
27-0ct-88 Inc $0.100 $15.98 $15.98 0.4699 75.5597 31-0ct-88 $16.64 $15.97 $1,206.6879
28-Nov-88 Inc $0.100 $15.97 $15.97 0.4731 76.0328 30-Nov-88 $16.70 $16.03 $1,218.8053
28-Dec-88 Inc $0.100 $15.99 $15.99 0.4755 76.5083 30-Dec-88 $16.81 $16.14 $1,234.8435
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
27-Jan-89 Inc $0.100 $16.06 $16.06 0.4764 76.9847 31-Jan-89 $16.75 $16.08 $1,237.9135
27-Feb-89 Inc $0.100 $16.06 $16.06 0.4794 77.4641 28-Feb-89 $16.74 $16.07 $1,244.8476
28-Mar-89 Inc $0.100 $16.03 $16.03 0.4832 77.9473 31-Mar-89 $16.68 $16.01 $1,247.9358
27-Apr-89 Inc $0.100 $16.09 $16.09 0.4844 78.4317 28-Apr-89 $16.76 $16.09 $1,261.9656
26-May-89 Inc $0.100 $16.17 $16.17 0.4850 78.9167 31-May-89 $16.88 $16.20 $1,278.4501
28-Jun-89 Inc $0.100 $16.21 $16.21 0.4868 79.4035 30-Jun-89 $16.89 $16.21 $1,287.1303
28-Jul-89 Inc $0.100 $16.29 $16.29 0.4874 79.8909 31-Jul-89 $16.98 $16.30 $1,302.2212
28-Aug-89 Inc $0.100 $16.19 $16.19 0.4935 80.3844 31-Aug-89 $16.89 $16.21 $1,303.0306
28-Sep-89 Inc $0.100 $16.13 $16.13 0.4984 80.8828 29-Sep-89 $16.83 $16.16 $1,307.0656
30-0ct-89 Inc $0.100 $16.19 $16.19 0.4996 81.3824 31-0ct-89 $16.88 $16.20 $1,318.3944
28-Nov-89 Inc $0.100 $16.25 $16.25 0.5008 81.8832 30-Nov-89 $16.96 $16.28 $1,333.0580
27-Dec-89 Inc $0.100 $16.32 $16.32 0.5017 82.3849 29-Dec-89 $16.97 $16.29 $1,342.0495
29-Jan-90 Inc $0.100 $16.11 $16.11 0.5114 82.8963 31-Jan-90 $16.82 $16.15 $1,338.7748
26-Feb-90 Inc $0.100 $16.25 $16.25 0.5101 83.4064 28-Feb-90 $16.97 $16.29 $1,358.6898
28-Mar-90 Inc $0.100 $16.18 $16.18 0.5155 83.9219 30-Mar-90 $16.83 $16.16 $1,356.1774
26-Apr-90 Inc $0.100 $15.97 $16.97 0.4945 84.4164 30-Apr-90 $16.63 $15.96 $1,347.2853
29-May-90 Inc $0.100 $16.25 $16.25 0.5195 84.9359 31-May-90 $16.94 $16.26 $1,381.0573
27-Jun-90 Inc $0.100 $16.27 $16.27 0.5220 85.4579 29-Jun-90 $17.00 $16.32 $1,394.6724
27-Jul-90 Inc $0.100 $16.42 $16.42 0.5204 85.9783 31-Jul-90 $17.13 $16.44 $1,413.4828
28-Aug-90 Inc $0.100 $16.19 $16.19 0.5311 86.5094 31-Aug-90 $16.94 $16.26 $1,406.6424
26-Sep-90 Inc $0.100 $16.15 $16.15 0.5357 87.0451 28-Sep-90 $16.82 $16.15 $1,405.7779
29-0ct-90 Inc $0.100 $16.16 $16.16 0.5386 87.5837 31-0ct-90 $16.88 $16.20 $1,418.8555
28-Nov-90 Inc $0.100 $16.27 $16.27 0.5383 88.1220 30-Nov-90 $16.99 $16.31 $1,437.2693
27-Dec-90 Inc $0.100 $16.26 $16.26 0.5420 88.6640 31-Dec-90 $16.92 $16.24 $1,439.9029
29-Jan-91 Inc $0.100 $16.25 $16.25 0.5456 89.2096 31-Jan-91 $16.98 $16.30 $1,454.1160
26-Feb-91 Inc $0.100 $16.31 $16.31 0.5470 89.7566 28-Feb-91 $17.01 $16.33 $1,465.7248
27-Mar-91 Inc $0.100 $16.35 $16.35 0.5490 90.3056 28-Mar-91 $17.04 $16.36 $1,477.3991
26-Apr-91 Inc $0.100 $16.52 $16.52 0.5466 90.8522 30-Apr-91 $17.24 $16.55 $1,503.6034
29-May-91 Inc $0.100 $16.52 $16.52 0.5500 91.4022 31-May-91 $17.28 $16.59 $1,516.3620
26-Jun-91 Inc $0.100 $16.51 $16.51 0.5536 91.9558 28-Jun-91 $17.25 $16.56 $1,522.7876
29-Jul-91 Inc $0.100 $16.68 $16.68 0.5513 92.5071 31-Jul-91 $17.39 $16.69 $1,543.9430
28-Aug-91 Inc $0.100 $16.79 $16.79 0.5510 93.0581 30-Aug-91 $17.52 $16.82 $1,565.2367
26-Sep-91 Inc $0.100 $16.88 $16.88 0.5513 93.6094 30-Sep-91 $17.63 $16.92 $1,583.8705
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
29-0ct-91 Inc $0.100 $16.93 $16.93 0.5529 94.1623 31-0ct-91 $17.65 $16.94 $1,595.1089
26-Nov-91 Inc $0.100 $16.91 $16.91 0.5568 94.7191 29-Nov-91 $17.63 $16.92 $1,602.6467
27-Dec-91 Inc $0.1351 $16.95 $16.95 0.7550 95.4741 31-Dec-91 $17.72 $17.01 $1,624.0139
29-Jan-92 Inc $0.1000 $16.87 $16.87 0.5659 96.0400 31-Jan-92 $17.55 $16.85 $1,618.2735
26-Feb-92 Inc $0.1000 $16.80 $16.80 0.5717 96.6117 28-Feb-92 $17.58 $16.88 $1,630.8050
27-Mar-92 Inc $0.1000 $16.89 $16.89 0.5720 97.1837 31-Mar-92 $17.64 $16.93 $1,645.3195
28-Apr-92 Inc $0.1000 $17.00 $17.00 0.5717 97.7554 30-Apr-92 $17.73 $17.02 $1,663.7964
27-May-92 Inc $0.1000 $17.11 $17.11 0.5713 98.3267 29-May-92 $17.81 $17.10 $1,681.3861
26-Jun-92 Inc $0.1000 $17.35 $17.35 0.5667 98.8934 30-Jun-92 $18.09 $17.37 $1,717.7778
29-Jul-92 Inc $0.1000 $17.91 $17.91 0.5522 99.4456 31-Jul-92 $18.64 $17.89 $1,779.0813
27-Aug-92 Inc $0.1000 $17.55 $17.55 0.5666 100.0122 31-Aug-92 $18.32 $17.59 $1,759.2141
28-Sep-92 Inc $0.1000 $17.55 $17.55 0.5699 100.5821 30-Sep-92 $18.27 $17.54 $1,764.2095
28-0ct-92 Inc $0.1000 $17.27 $17.27 0.5824 101.1645 30-0ct-92 $18.09 $17.37 $1,757.2269
25-Nov-92 Inc $0.1000 $17.61 $17.61 0.5745 101.7390 30-Nov-92 $18.33 $17.60 $1,790.6059
29-Dec-92 Inc $0.1000 $17.64 $17.64 0.5768 102.3158 31-Dec-92 $18.39 $17.65 $1,805.8733
28-Jan-93 Inc $0.1000 $17.72 $17.72 0.5774 102.8932 31-Jan-93 $18.49 $17.75 $1,826.3538
24-Feb-93 Inc $0.1000 $18.30 $18.30 0.5623 103.4555 28-Feb-93 $19.20 $18.43 $1,906.6843
29-Mar-93 Inc $0.1000 $18.21 $18.21 0.5681 104.0236 31-Mar-93 $18.97 $18.21 $1,894.2692
28-Apr-93 Inc $0.1000 $18.31 $18.31 0.5681 104.5917 30-Apr-93 $19.17 $18.40 $1,924.4867
27-May-93 Inc $0.0950 $18.38 $18.38 0.5406 105.1323 31-May-93 $19.15 $18.38 $1,932.3311
28-Jun-93 Inc $0.0950 $18.67 $18.67 0.5350 105.6673 30-Jun-93 $19.49 $18.71 $1,977.0346
28-Jul-93 Inc $0.0950 $18.57 $18.57 0.5406 106.2079 31-Jul-93 $19.41 $18.63 $1,978.6526
27-Aug-93 Inc $0.0950 $18.98 $18.98 0.5316 106.7395 31-Aug-93 $19.80 $19.01 $2,029.1173
28-Sep-93 Inc $0.1000 $19.18 $19.18 0.5565 107.2960 30-Sep-93 $19.91 $19.11 $2,050.4260
27-0ct-93 Inc $0.0950 $19.11 $19.11 0.5334 107.8294 29-0ct-93 $19.92 $19.12 $2,061.6976
26-Nov-93 Inc $0.0950 $18.78 $18.78 0.5455 108.3749 30-Nov-93 $19.54 $18.76 $2,033.1126
23-Dec-93 Inc $0.0970 $19.02 $19.02 0.5527 108.9276 31-Dec-93 $19.79 $19.00 $2,069.6238
24-Jan-94 Inc $0.0950 $18.98 $18.98 0.5452 109.4728 01-Jan-94 $19.93 $19.13 $2,094.2141
22-Feb-94 Inc $0.0950 $18.71 $18.71 0.5558 110.0286 28-Feb-94 $19.34 $18.57 $2,043.2306
24-Mar-94 Inc $0.0950 $18.09 $18.09 0.5778 110.6064 31-Mar-94 $18.39 $17.65 $1,952.2024
22-Apr-94 Inc $0.0950 $17.52 $17.52 0.5997 111.2061 30-Apr-94 $18.20 $17.47 $1,942.7700
24-May-94 Inc $0.0950 $17.43 $17.43 0.6061 111.8122 31-May-94 $18.26 $17.53 $1,960.0673
23-Jun-94 Inc $0.0950 $17.56 $17.56 0.6049 112.4171 30-Jun-94 $18.06 $17.34 $1,949.3120
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
22-Jul-94 Inc $0.0950 $17.46 $17.46 0.6117 113.0288 31-Jul-94 $18.31 $17.58 $1,987.0458
24-Aug-94 Inc $0.0950 $17.47 $17.47 0.6146 113.6434 31-Aug-94 $18.31 $17.58 $1,997.8505
23-Sep-94 Inc $0.0950 $17.14 $17.14 0.6299 114.2733 30-Sep-94 $17.78 $17.07 $1,950.6447
24-0ct-94 Inc $0.0950 $16.77 $16.77 0.6473 114.9206 31-0ct-94 $17.25 $16.56 $1,903.0846
22-Nov-94 Inc $0.0950 $15.59 $15.59 0.7003 115.6209 30-Nov-94 $16.58 $15.92 $1,840.6843
23-Dec-94 Inc $0.0950 $16.26 $16.26 0.6755 116.2964 31-Dec-94 $16.99 $16.31 $1,896.7938
24-Jan-95 Inc $0.0950 $16.47 $16.47 0.6708 116.9672 31-Jan-95 $17.39 $16.69 $1,952.1821
21-Feb-95 Inc $0.0900 $17.06 $17.06 0.6171 117.5843 28-Feb-95 $17.93 $17.21 $2,023.6253
28-Mar-95 Inc $0.0900 $17.29 $17.29 0.6121 118.1964 31-Mar-95 $18.00 $17.28 $2,042.4333
25-Apr-95 Inc $0.0900 $17.44 $17.44 0.6100 118.8064 30-Apr-95 $17.95 $17.23 $2,047.0338
23-May-95 Inc $0.0900 $17.61 $17.61 0.6072 119.4136 31-May-95 $18.51 $17.77 $2,121.9791
27-Jun-95 Inc $0.0900 $17.71 $17.71 0.6068 120.0204 30-Jun-95 $18.33 $17.60 $2,112.3585
25-Jul-95 Inc $0.0900 $17.51 $17.51 0.6169 120.6373 31-Jul-95 $18.27 $17.54 $2,115.9777
22-Aug-95 Inc $0.0900 $17.40 $17.40 0.6240 121.2613 31-Aug-95 $18.42 $17.68 $2,143.8993
26-Sep-95 Inc $0.0910 $17.69 $17.69 0.6238 121.8851 30-Sep-95 $18.44 $17.70 $2,157.3657
24-0ct-95 Inc $0.0910 $17.87 $17.87 0.6207 122.5058 31-0ct-95 $18.64 $17.89 $2,191.6282
21-Nov-95 Inc $0.0910 $17.95 $17.95 0.6211 123.1269 30-Nov-95 $18.83 $18.08 $2,226.1338
27-Dec-95 Inc $0.0910 $18.11 $18.11 0.6187 123.7456 29-Dec-95 $18.94 $18.18 $2,249.6945
NAV
Average annual total return for the 9.583 year period ending 12/31/95 8.83%
Cumulative return for the 9.583 year period ended 12/31/95 124.97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
62.8141 30-May-86 $16.58 $15.92 $1,000.0000
62.8141 30-Jun-86 $16.64 $15.97 $1,003.1407
62.8141 31-Jul-86 $16.74 $16.07 $1,009.4221
29-Aug-86 Inc $0.300 $15.83 $15.83 1.1904 64.0045 29-Aug-86 $16.51 $15.85 $1,014.4709
64.0045 30-Sep-86 $16.69 $16.02 $1,025.3516
64.0045 31-0ct-86 $16.79 $16.12 $1,031.7521
64.0045 28-Nov-86 $16.95 $16.27 $1,041.3527
08-Dec-86 Inc $0.300 $15.99 $15.99 1.2008 65.2053 31-Dec-86 $16.73 $16.06 $1,047.1966
65.2053 30-Jan-87 $16.61 $15.95 $1,040.0241
02-Feb-87 Inc $0.208 $15.95 $15.95 0.8503 66.0556 27-Feb-87 $16.59 $15.93 $1,052.2652
27-Feb-87 Inc $0.100 $15.93 $15.93 0.4147 66.4703 27-Feb-87 $16.59 $15.93 $1,058.8714
27-Mar-87 Inc $0.100 $16.01 $16.01 0.4152 66.8855 31-Mar-87 $16.52 $15.86 $1,060.8036
29-Apr-87 Inc $0.100 $15.35 $15.35 0.4357 67.3212 30-Apr-87 $16.00 $15.36 $1,034.0532
28-May-87 Inc $0.100 $15.17 $15.17 0.4438 67.7650 29-May-87 $15.81 $15.18 $1,028.6722
26-Jun-87 Inc $0.100 $15.28 $15.28 0.4435 68.2085 30-Jun-87 $16.00 $15.36 $1,047.6821
28-Jul-87 Inc $0.100 $15.34 $15.34 0.4446 68.6531 31-Jul-87 $15.97 $15.33 $1,052.4516
27-Aug-87 Inc $0.100 $15.43 $15.43 0.4449 69.0980 31-Aug-87 $16.06 $15.42 $1,065.4907
28-Sep-87 Inc $0.100 $15.31 $15.31 0.4513 69.5493 30-Sep-87 $15.92 $15.28 $1,062.7129
28-0ct-87 Inc $0.100 $14.95 $14.95 0.4652 70.0145 30-0ct-87 $15.57 $14.95 $1,046.7163
27-Nov-87 Inc $0.100 $15.37 $15.37 0.4555 70.4700 30-Nov-87 $16.00 $15.36 $1,082.4187
29-Dec-87 Inc $0.100 $15.42 $15.42 0.4570 70.9270 31-Dec-87 $15.95 $15.31 $1,085.8919
28-Jan-88 Inc $0.100 $15.52 $15.52 0.4570 71.3840 29-Jan-88 $16.19 $15.54 $1,109.3069
26-Feb-88 Inc $0.100 $15.73 $15.73 0.4538 71.8378 29-Feb-88 $16.38 $15.72 $1,129.2897
29-Mar-88 Inc $0.100 $15.62 $15.62 0.4599 72.2977 31-Mar-88 $16.28 $15.63 $1,130.0126
28-Apr-88 Inc $0.100 $15.67 $15.67 0.4614 72.7591 29-Apr-88 $16.32 $15.67 $1,140.1346
27-May-88 Inc $0.100 $15.67 $15.67 0.4643 73.2234 31-May-88 $16.32 $15.67 $1,147.4102
29-Jun-88 Inc $0.100 $15.75 $15.75 0.4649 73.6883 30-Jun-88 $16.42 $15.76 $1,161.3271
29-Jul-88 Inc $0.100 $15.83 $15.83 0.4655 74.1538 29-Jul-88 $16.49 $15.83 $1,173.8542
30-Aug-88 Inc $0.100 $15.82 $15.82 0.4687 74.6225 31-Aug-88 $16.49 $15.83 $1,181.2737
29-Sep-88 Inc $0.100 $15.97 $15.97 0.4673 75.0898 30-Sep-88 $16.64 $15.97 $1,199.1836
27-0ct-88 Inc $0.100 $15.98 $15.98 0.4699 75.5597 31-0ct-88 $16.64 $15.97 $1,206.6879
28-Nov-88 Inc $0.100 $15.97 $15.97 0.4731 76.0328 30-Nov-88 $16.70 $16.03 $1,218.8053
28-Dec-88 Inc $0.100 $15.99 $15.99 0.4755 76.5083 30-Dec-88 $16.81 $16.14 $1,234.8435
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
27-Jan-89 Inc $0.100 $16.06 $16.06 0.4764 76.9847 31-Jan-89 $16.75 $16.08 $1,237.9135
27-Feb-89 Inc $0.100 $16.06 $16.06 0.4794 77.4641 28-Feb-89 $16.74 $16.07 $1,244.8476
28-Mar-89 Inc $0.100 $16.03 $16.03 0.4832 77.9473 31-Mar-89 $16.68 $16.01 $1,247.9358
27-Apr-89 Inc $0.100 $16.09 $16.09 0.4844 78.4317 28-Apr-89 $16.76 $16.09 $1,261.9656
26-May-89 Inc $0.100 $16.17 $16.17 0.4850 78.9167 31-May-89 $16.88 $16.20 $1,278.4501
28-Jun-89 Inc $0.100 $16.21 $16.21 0.4868 79.4035 30-Jun-89 $16.89 $16.21 $1,287.1303
28-Jul-89 Inc $0.100 $16.29 $16.29 0.4874 79.8909 31-Jul-89 $16.98 $16.30 $1,302.2212
28-Aug-89 Inc $0.100 $16.19 $16.19 0.4935 80.3844 31-Aug-89 $16.89 $16.21 $1,303.0306
28-Sep-89 Inc $0.100 $16.13 $16.13 0.4984 80.8828 29-Sep-89 $16.83 $16.16 $1,307.0656
30-0ct-89 Inc $0.100 $16.19 $16.19 0.4996 81.3824 31-0ct-89 $16.88 $16.20 $1,318.3944
28-Nov-89 Inc $0.100 $16.25 $16.25 0.5008 81.8832 30-Nov-89 $16.96 $16.28 $1,333.0580
27-Dec-89 Inc $0.100 $16.32 $16.32 0.5017 82.3849 29-Dec-89 $16.97 $16.29 $1,342.0495
29-Jan-90 Inc $0.100 $16.11 $16.11 0.5114 82.8963 31-Jan-90 $16.82 $16.15 $1,338.7748
26-Feb-90 Inc $0.100 $16.25 $16.25 0.5101 83.4064 28-Feb-90 $16.97 $16.29 $1,358.6898
28-Mar-90 Inc $0.100 $16.18 $16.18 0.5155 83.9219 30-Mar-90 $16.83 $16.16 $1,356.1774
26-Apr-90 Inc $0.100 $15.97 $16.97 0.4945 84.4164 30-Apr-90 $16.63 $15.96 $1,347.2853
29-May-90 Inc $0.100 $16.25 $16.25 0.5195 84.9359 31-May-90 $16.94 $16.26 $1,381.0573
27-Jun-90 Inc $0.100 $16.27 $16.27 0.5220 85.4579 29-Jun-90 $17.00 $16.32 $1,394.6724
27-Jul-90 Inc $0.100 $16.42 $16.42 0.5204 85.9783 31-Jul-90 $17.13 $16.44 $1,413.4828
28-Aug-90 Inc $0.100 $16.19 $16.19 0.5311 86.5094 31-Aug-90 $16.94 $16.26 $1,406.6424
26-Sep-90 Inc $0.100 $16.15 $16.15 0.5357 87.0451 28-Sep-90 $16.82 $16.15 $1,405.7779
29-0ct-90 Inc $0.100 $16.16 $16.16 0.5386 87.5837 31-0ct-90 $16.88 $16.20 $1,418.8555
28-Nov-90 Inc $0.100 $16.27 $16.27 0.5383 88.1220 30-Nov-90 $16.99 $16.31 $1,437.2693
27-Dec-90 Inc $0.100 $16.26 $16.26 0.5420 88.6640 31-Dec-90 $16.92 $16.24 $1,439.9029
29-Jan-91 Inc $0.100 $16.25 $16.25 0.5456 89.2096 31-Jan-91 $16.98 $16.30 $1,454.1160
26-Feb-91 Inc $0.100 $16.31 $16.31 0.5470 89.7566 28-Feb-91 $17.01 $16.33 $1,465.7248
27-Mar-91 Inc $0.100 $16.35 $16.35 0.5490 90.3056 28-Mar-91 $17.04 $16.36 $1,477.3991
26-Apr-91 Inc $0.100 $16.52 $16.52 0.5466 90.8522 30-Apr-91 $17.24 $16.55 $1,503.6034
29-May-91 Inc $0.100 $16.52 $16.52 0.5500 91.4022 31-May-91 $17.28 $16.59 $1,516.3620
26-Jun-91 Inc $0.100 $16.51 $16.51 0.5536 91.9558 28-Jun-91 $17.25 $16.56 $1,522.7876
29-Jul-91 Inc $0.100 $16.68 $16.68 0.5513 92.5071 31-Jul-91 $17.39 $16.69 $1,543.9430
28-Aug-91 Inc $0.100 $16.79 $16.79 0.5510 93.0581 30-Aug-91 $17.52 $16.82 $1,565.2367
26-Sep-91 Inc $0.100 $16.88 $16.88 0.5513 93.6094 30-Sep-91 $17.63 $16.92 $1,583.8705
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
29-0ct-91 Inc $0.100 $16.93 $16.93 0.5309 90.4142 31-0ct-91 $17.65 $16.94 $1,531.6171
26-Nov-91 Inc $0.100 $16.91 $16.91 0.5347 90.9489 29-Nov-91 $17.63 $16.92 $1,538.8559
27-Dec-91 Inc $0.1351 $16.95 $16.95 0.7249 91.6738 31-Dec-91 $17.72 $17.01 $1,559.3719
29-Jan-92 Inc $0.1000 $16.87 $16.87 0.5434 92.2172 31-Jan-92 $17.55 $16.85 $1,553.8603
26-Feb-92 Inc $0.1000 $16.80 $16.80 0.5489 92.7661 28-Feb-92 $17.58 $16.88 $1,565.8923
27-Mar-92 Inc $0.1000 $16.89 $16.89 0.5492 93.3153 31-Mar-92 $17.64 $16.93 $1,579.8286
28-Apr-92 Inc $0.1000 $17.00 $17.00 0.5489 93.8642 30-Apr-92 $17.73 $17.02 $1,597.5692
27-May-92 Inc $0.1000 $17.11 $17.11 0.5486 94.4128 29-May-92 $17.81 $17.10 $1,614.4594
26-Jun-92 Inc $0.1000 $17.35 $17.35 0.5442 94.9570 30-Jun-92 $18.09 $17.37 $1,649.4036
29-Jul-92 Inc $0.1000 $17.91 $17.91 0.5302 95.4872 31-Jul-92 $18.64 $17.89 $1,708.2666
27-Aug-92 Inc $0.1000 $17.55 $17.55 0.5441 96.0313 31-Aug-92 $18.32 $17.59 $1,689.1911
28-Sep-92 Inc $0.1000 $17.55 $17.55 0.5472 96.5785 30-Sep-92 $18.27 $17.54 $1,693.9874
28-0ct-92 Inc $0.1000 $17.27 $17.27 0.5592 97.1377 30-0ct-92 $18.09 $17.37 $1,687.2824
25-Nov-92 Inc $0.1000 $17.61 $17.61 0.5516 97.6893 30-Nov-92 $18.33 $17.60 $1,719.3322
29-Dec-92 Inc $0.1000 $17.64 $17.64 0.5538 98.2431 31-Dec-92 $18.39 $17.65 $1,733.9913
28-Jan-93 Inc $0.1000 $17.72 $17.72 0.5544 98.7975 31-Jan-93 $18.49 $17.75 $1,753.6562
24-Feb-93 Inc $0.1000 $18.30 $18.30 0.5399 99.3374 28-Feb-93 $19.20 $18.43 $1,830.7889
29-Mar-93 Inc $0.1000 $18.21 $18.21 0.5455 99.8829 31-Mar-93 $18.97 $18.21 $1,818.8682
28-Apr-93 Inc $0.1000 $18.31 $18.31 0.5455 100.4284 30-Apr-93 $19.17 $18.40 $1,847.8831
27-May-93 Inc $0.0950 $18.38 $18.38 0.5191 100.9475 31-May-93 $19.15 $18.38 $1,855.4156
28-Jun-93 Inc $0.0950 $18.67 $18.67 0.5137 101.4612 30-Jun-93 $19.49 $18.71 $1,898.3396
28-Jul-93 Inc $0.0950 $18.57 $18.57 0.5191 101.9803 31-Jul-93 $19.41 $18.63 $1,899.8936
27-Aug-93 Inc $0.0950 $18.98 $18.98 0.5104 102.4907 31-Aug-93 $19.80 $19.01 $1,948.3488
28-Sep-93 Inc $0.1000 $19.18 $19.18 0.5344 103.0251 30-Sep-93 $19.91 $19.11 $1,968.8103
27-0ct-93 Inc $0.0950 $19.11 $19.11 0.5122 103.5373 29-0ct-93 $19.92 $19.12 $1,979.6338
26-Nov-93 Inc $0.0950 $18.78 $18.78 0.5238 104.0611 30-Nov-93 $19.54 $18.76 $1,952.1868
23-Dec-93 Inc $0.0970 $19.02 $19.02 0.5307 104.5918 31-Dec-93 $19.79 $19.00 $1,987.2448
24-Jan-94 Inc $0.0950 $18.98 $18.98 0.5235 105.1153 01-Jan-94 $19.93 $19.13 $2,010.8563
22-Feb-94 Inc $0.0950 $18.71 $18.71 0.5337 105.6490 28-Feb-94 $19.34 $18.57 $1,961.9025
24-Mar-94 Inc $0.0950 $18.09 $18.09 0.5548 106.2038 31-Mar-94 $18.39 $17.65 $1,874.4976
22-Apr-94 Inc $0.0950 $17.52 $17.52 0.5759 106.7797 30-Apr-94 $18.20 $17.47 $1,865.4419
24-May-94 Inc $0.0950 $17.43 $17.43 0.5820 107.3617 31-May-94 $18.26 $17.53 $1,882.0511
23-Jun-94 Inc $0.0950 $17.56 $17.56 0.5808 107.9425 30-Jun-94 $18.06 $17.34 $1,871.7235
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
22-Jul-94 Inc $0.0950 $17.46 $17.46 0.5873 108.5298 31-Jul-94 $18.31 $17.58 $1,907.9544
24-Aug-94 Inc $0.0950 $17.47 $17.47 0.5902 109.1200 31-Aug-94 $18.31 $17.58 $1,918.3301
23-Sep-94 Inc $0.0950 $17.14 $17.14 0.6048 109.7248 30-Sep-94 $17.78 $17.07 $1,873.0029
24-0ct-94 Inc $0.0950 $16.77 $16.77 0.6216 110.3464 31-0ct-94 $17.25 $16.56 $1,827.3369
22-Nov-94 Inc $0.0950 $15.59 $15.59 0.6724 111.0188 30-Nov-94 $16.58 $15.92 $1,767.4198
23-Dec-94 Inc $0.0950 $16.26 $16.26 0.6486 111.6674 31-Dec-94 $16.99 $16.31 $1,821.2958
24-Jan-95 Inc $0.0950 $16.47 $16.47 0.6441 112.3115 31-Jan-95 $17.39 $16.69 $1,874.4795
21-Feb-95 Inc $0.0900 $17.06 $17.06 0.5925 112.9040 28-Feb-95 $17.93 $17.21 $1,943.0784
28-Mar-95 Inc $0.0900 $17.29 $17.29 0.5877 113.4917 31-Mar-95 $18.00 $17.28 $1,961.1371
25-Apr-95 Inc $0.0900 $17.44 $17.44 0.5857 114.0774 30-Apr-95 $17.95 $17.23 $1,965.5541
23-May-95 Inc $0.0900 $17.61 $17.61 0.5830 114.6604 31-May-95 $18.51 $17.77 $2,037.5159
27-Jun-95 Inc $0.0900 $17.71 $17.71 0.5827 115.2431 30-Jun-95 $18.33 $17.60 $2,028.2791
25-Jul-95 Inc $0.0900 $17.51 $17.51 0.5923 115.8354 31-Jul-95 $18.27 $17.54 $2,031.7535
22-Aug-95 Inc $0.0900 $17.40 $17.40 0.5991 116.4345 31-Aug-95 $18.42 $17.68 $2,058.5625
26-Sep-95 Inc $0.0910 $17.69 $17.69 0.5990 117.0335 30-Sep-95 $18.44 $17.70 $2,071.4935
24-0ct-95 Inc $0.0910 $17.87 $17.87 0.5960 117.6295 31-0ct-95 $18.64 $17.89 $2,104.3923
21-Nov-95 Inc $0.0910 $17.95 $17.95 0.5963 118.2258 30-Nov-95 $18.83 $18.08 $2,137.5230
27-Dec-95 Inc $0.0910 $18.11 $18.11 0.5941 118.8199 29-Dec-95 $18.94 $18.18 $2,160.1463
POP
Average annual total return for the 9.583 year period ending 12/31/95 8.37%
Cumulative return for the 9.583 year period ended 12/31/95 116.01%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, INC
TOTAL RETURN CALCULATION
NAV Load Applicable
Dist Dist Dist Reinvest Reinvest Share Share Offering
Date Type Amount Rate Rate Reinvest Balance Date Price NAV ERV
- --------- ---- ------- -------- -------- -------- --------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
23-Dec-94 Inc $0.0950 $16.26 $16.26 0.0130 61.3121 31-Dec-94 $16.99 $16.31 $1,000.0000
24-Jan-95 Inc $0.0950 $16.47 $16.47 0.3537 61.6658 31-Jan-95 $17.39 $16.69 $1,029.2018
21-Feb-95 Inc $0.0900 $17.06 $17.06 0.3253 61.9911 28-Feb-95 $17.93 $17.21 $1,066.8665
28-Mar-95 Inc $0.0900 $17.29 $17.29 0.3227 62.3138 31-Mar-95 $18.00 $17.28 $1,076.7821
25-Apr-95 Inc $0.0900 $17.44 $17.44 0.3216 62.6354 30-Apr-95 $17.95 $17.23 $1,079.2076
23-May-95 Inc $0.0900 $17.61 $17.61 0.3201 62.9555 31-May-95 $18.51 $17.77 $1,118.7189
27-Jun-95 Inc $0.0900 $17.71 $17.71 0.3199 63.2754 30-Jun-95 $18.33 $17.60 $1,113.6467
25-Jul-95 Inc $0.0900 $17.51 $17.51 0.3252 63.6006 31-Jul-95 $18.27 $17.54 $1,115.5541
22-Aug-95 Inc $0.0900 $17.40 $17.40 0.3290 63.9296 31-Aug-95 $18.42 $17.68 $1,130.2749
26-Sep-95 Inc $0.0910 $17.69 $17.69 0.3255 64.2551 30-Sep-95 $18.44 $17.70 $1,137.3149
24-0ct-95 Inc $0.0910 $17.87 $17.87 0.3239 64.5790 31-0ct-95 $18.64 $17.89 $1,155.3179
21-Nov-95 Inc $0.0910 $17.95 $17.95 0.3241 64.9031 30-Nov-95 $18.83 $18.08 $1,173.4477
27-Dec-95 Inc $0.0910 $18.11 $18.11 0.3212 65.2243 29-Dec-95 $18.94 $18.18 $1,185.7774
NAV
Average annual total return for the one year period ending 12/31/95 18.58%
Cumulative return for the one year period ended 12/31/95 18.58%
</TABLE>
<PAGE>
EXHIBIT 16
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $240,000 Albany IDA (Upper Hudson Library) 108.0980 $103.000 8.7500 05/01/07 05/01/97
11/30/95 $955,000 Albany IDA (Upper Hudson Library) 109.6810 $103.000 8.7500 05/01/22 05/01/00
11/30/95 $2,500,000 Albany IDA (100 State Stree) 102.0000 $100.000 8.7500 12/31/10 06/30/96
11/30/95 $3,005,000 Albany IDA Historic Hudson 100.0000 $100.000 9.5000 06/01/96 06/01/96
11/30/95 $1,715,000 Albany (Mara Inc) Mansion Rehab 102.5630 $100.000 6.5000 02/01/23 02/01/03
11/30/95 $560,144 Albany Housing 10.500 18.9810 $35.938 0.0000 10/01/12 10/01/02
11/30/95 $400,000 Albany IDA (Albany Golf) 108.7080 $100.000 7.5000 05/01/12 05/01/12
11/30/95 $3,065,000 Albany IDA (Albany Medical Ctr) 107.6520 $100.000 8.2500 08/01/04 08/01/03
11/30/95 $1,045,000 Albany IDA (Albany Rehab) 110.7490 $104.000 8.3750 06/01/23 06/01/08
11/30/95 $1,395,000 Albany IDA (Port of Albany ) 107.3850 $100.000 7.2500 02/01/24 02/01/08
11/30/95 $2,755,000 Albany IDA (Kenwood Business Park) 100.0000 $100.000 9.2500 09/01/10 09/01/10
11/30/95 $1,770,000 Albany Parking Authority 7.250 29.1730 $75.211 0.0000 11/01/17 11/01/13
11/30/95 $10,070,000 Allegany IDA (Alfred U) 109.4870 $100.000 7.5000 09/01/11 09/01/03
11/30/95 $800,000 American Samoa Power Auth 107.4570 $100.000 7.1000 09/01/01 09/01/01
11/30/95 $800,000 American Samoa Power Auth 108.1820 $100.000 7.2000 09/01/02 09/01/02
11/30/95 $400,000 American Samoa Power Auth 105.8320 $100.000 6.8000 09/01/00 09/01/00
11/30/95 $400,000 American Samoa Power Auth 106.2660 $100.000 6.8500 09/01/01 09/01/01
11/30/95 $400,000 American Samoa Power Auth 106.5790 $100.000 6.9000 09/01/02 09/01/02
11/30/95 $500,000 American Samoa Power Auth 107.0230 $100.000 6.9500 09/01/03 09/01/03
11/30/95 $500,000 American Samoa Power Auth 107.3530 $100.000 7.0000 09/01/04 09/01/04
11/30/95 $185,460 Auburn IDA (Wegmans) 101.1920 $100.000 7.2500 12/01/98 12/01/98
11/30/95 $1,330,000 Babylon IDA (WWH Ambulance) 108.5300 $100.000 7.3750 09/15/08 09/15/08
11/30/95 $1,395,000 *Babylon IDA (Recyc) 38.0000 $100.000 8.8750 03/01/11 03/01/11
11/30/95 $3,850,000 Batavia HSG Auth (Trocare Place) 107.5450 $100.000 8.7500 04/01/25 04/01/07
11/30/95 $515,000 Batavia HSG Auth (Washington) 104.5210 $100.000 6.5000 01/01/23 01/01/03
11/30/95 $700,000 Battery Park 102.5000 $100.000 10.0000 06/01/23 06/01/96
12/22/95 ($945,000) Battery Park 5.7500
12/21/95 ($3,055,000) Battery Park 5.7500
12/20/95 ($1,000,000) Battery Park 5.7500
12/08/95 $5,000,000 Battery Park 99.5000 $100.000 5.7500 05/01/23 05/01/23
11/30/95 $1,475,000 Bayshore HDC 108.0810 $100.000 7.5000 02/01/23 02/01/03
11/30/95 $225,000 Beacon IDA (Craig) 102.2500 $100.000 9.0000 07/01/11 07/01/96
11/30/95 $1,000,000 Bethany Retirement Home 110.0210 $100.000 7.4500 02/01/24 02/01/06
11/30/95 $35,000 Bleecker Terr HDC 102.0000 $100.000 8.1000 07/01/01 07/01/97
11/30/95 $45,000 Bleecker Terr HDC 102.0000 $100.000 8.3500 07/01/04 07/01/97
11/30/95 $900,000 Bleecker Terr HDC 103.0000 $100.000 8.7500 07/01/07 07/01/97
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $240,000 Albany IDA (Upper Hudson Library) 4.8400 1 $0.7048 108.8028 30 $1,053.21
11/30/95 $955,000 Albany IDA (Upper Hudson Library) 6.7699 1 $0.7048 110.3858 30 $5,947.27
11/30/95 $2,500,000 Albany IDA (100 State Stree) 5.2108 1 $3.6458 105.6458 30 $11,468.74
11/30/95 $3,005,000 Albany IDA Historic Hudson 9.4986 0 $4.7236 104.7236 30 $23,789.58
11/30/95 $1,715,000 Albany (Mara Inc) Mansion Rehab 6.0522 1 $2.1486 104.7116 30 $9,057.13
11/30/95 $560,144 Albany Housing 9.5594 1 $0.0000 18.9810 30 $846.97
11/30/95 $400,000 Albany IDA (Albany Golf) 6.6214 1 $0.6041 109.3121 30 $2,412.67
11/30/95 $3,065,000 Albany IDA (Albany Medical Ctr) 6.9436 1 $2.7270 110.3790 30 $19,575.85
11/30/95 $1,045,000 Albany IDA (Albany Rehab) 7.2546 1 $4.1642 114.9132 30 $7,259.70
11/30/95 $1,395,000 Albany IDA (Port of Albany ) 6.3673 1 $2.3965 109.7815 30 $8,126.01
11/30/95 $2,755,000 Albany IDA (Kenwood Business Park) 9.2467 0 $2.2868 102.2868 30 $21,236.46
11/30/95 $1,770,000 Albany Parking Authority 5.3555 1 $0.0000 29.1730 30 $2,304.48
11/30/95 $10,070,000 Allegany IDA (Alfred U) 5.9523 1 $1.8541 111.3411 30 $55,614.60
11/30/95 $800,000 American Samoa Power Auth 5.5649 1 $1.7552 109.2122 30 $4,051.70
11/30/95 $800,000 American Samoa Power Auth 5.7200 1 $1.7800 109.9620 30 $4,193.22
11/30/95 $400,000 American Samoa Power Auth 5.3900 1 $1.6811 107.5131 30 $1,931.65
11/30/95 $400,000 American Samoa Power Auth 5.5600 1 $1.6934 107.9594 30 $2,000.85
11/30/95 $400,000 American Samoa Power Auth 5.7100 1 $1.7058 108.2848 30 $2,061.02
11/30/95 $500,000 American Samoa Power Auth 5.8100 1 $1.7181 108.7411 30 $2,632.44
11/30/95 $500,000 American Samoa Power Auth 5.9100 1 $1.7305 109.0835 30 $2,686.18
11/30/95 $185,460 Auburn IDA (Wegmans) 6.8043 1 $3.6048 104.7968 30 $1,102.05
11/30/95 $1,330,000 Babylon IDA (WWH Ambulance) 6.3874 1 $1.5364 110.0664 30 $7,792.01
11/30/95 $1,395,000 *Babylon IDA (Recyc) 24.5227 0 $2.1940 40.1940 30 $0.00
11/30/95 $3,850,000 Batavia HSG Auth (Trocare Place) 7.7360 1 $1.4340 108.9790 30 $27,048.23
11/30/95 $515,000 Batavia HSG Auth (Washington) 5.7140 1 $2.6902 107.2112 30 $2,629.10
11/30/95 $700,000 Battery Park 4.9047 1 $4.9722 107.4722 30 $3,074.86
12/22/95 ($945,000) Battery Park 5.7861 100.0910 9 ($1,368.21)
12/21/95 ($3,055,000) Battery Park 5.7861 100.0910 10 ($4,914.62)
12/20/95 ($1,000,000) Battery Park 5.7861 100.0910 11 ($1,769.58)
12/08/95 $5,000,000 Battery Park 5.7861 0 $0.5909 100.0909 23 $18,368.06
11/30/95 $1,475,000 Bayshore HDC 6.0899 1 $2.4791 110.5601 30 $8,275.98
11/30/95 $225,000 Beacon IDA (Craig) 5.0419 1 $3.7250 105.9750 30 $1,001.84
11/30/95 $1,000,000 Bethany Retirement Home 6.1107 1 $2.4626 112.4836 30 $5,727.95
11/30/95 $35,000 Bleecker Terr HDC 6.7428 1 $3.3525 105.3525 30 $207.19
11/30/95 $45,000 Bleecker Terr HDC 6.9890 1 $3.4559 105.4559 30 $276.39
11/30/95 $900,000 Bleecker Terr HDC 6.7175 1 $3.6215 106.6215 30 $5,371.73
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,120,000 NYS COPS (BOCES) 107.2470 $100.000 7.8750 10/01/00 10/01/00
11/30/95 $6,965,000 Brookhaven (Dowling College) 104.7480 $100.000 6.7500 03/01/23 03/01/23
11/30/95 $640,000 Brookhaven (Interdiciplinary) 109.5440 $100.000 8.5000 12/01/04 12/01/01
11/30/95 $3,220,000 Brookhaven (Interdiciplinary) 111.8710 $100.000 9.5000 12/01/19 12/01/04
11/30/95 $235,000 Brookhaven (Modular Devices) 101.6880 $100.000 7.3750 11/01/96 11/01/96
11/30/95 $870,000 Brookhaven IDA (Farber) 100.0000 $100.000 6.3750 12/01/02 12/01/02
11/30/95 $490,000 Brookhaven IDA (Farber) 100.0000 $100.000 6.3750 12/01/04 12/01/04
11/30/95 $190,000 Broome IDA 103.0000 $100.000 7.5500 12/01/00 12/01/99
11/30/95 $195,000 Broome IDA 103.0000 $100.000 7.6000 12/01/01 12/01/99
11/30/95 $1,010,000 Broome IDA (Binghamton Simulator) 107.4700 $100.000 8.2500 01/01/02 01/01/00
11/30/95 $500,000 Carnegie Redevl Corp 104.4880 $100.000 7.0000 09/01/21 09/01/21
11/30/95 $2,045,000 Cattaraugus IDA (Cherry Creek) 116.2200 $103.000 9.8000 09/01/10 09/01/00
11/30/95 $9,155,000 Cattaraugus IDA (ST Bonaventure) 112.0390 $102.000 8.3000 12/01/10 12/01/00
11/30/95 $15,000,000 Cattaraugus COPS (Auburn Hosp) 103.7860 $100.000 6.0000 01/01/21 01/01/21
11/30/95 $7,900,000 Chautauqua IDA (Dunkirk Glass) 103.0000 $100.000 11.5000 12/01/10 12/01/10
11/30/95 $15,000 Clifton Park 104.0000 $100.000 8.5000 08/01/08 08/01/08
11/30/95 $4,640,000 Clifton Springs Hospital & Clinic 103.1980 $100.000 8.0000 11/01/20 11/01/20
11/30/95 $820,000 Columbia IDA (ARC) 107.5120 $100.000 7.7500 06/01/05 06/01/00
11/30/95 $2,610,000 Columbia IDA (ARC) 106.2390 $102.000 8.6500 06/01/18 06/01/04
12/15/95 ($65,000) Columbia IDA (Berkshire Farm) 6.9000
11/30/95 $895,000 Columbia IDA (Berkshire Farm) 105.9140 $100.000 6.9000 12/15/04 12/15/04
11/30/95 $1,855,000 Columbia IDA (Berkshire Farm) 108.5200 $100.000 7.5000 12/15/14 12/15/14
11/30/95 $140,000 Cortland IDA (Paul Bunyon) 109.2530 $102.000 8.0000 07/01/00 07/01/98
11/30/95 $3,500,000 Dutchess IDA (Bard College) 107.6200 $100.000 7.0000 11/01/17 11/01/03
11/30/95 $1,800,000 Dutchess IDA (Merchants Press) 103.9120 $100.000 7.9500 06/30/02 06/30/02
11/30/95 $4,590,000 Dutchess IDA (Merchants Press) 107.1460 $103.000 9.0000 06/30/22 06/30/02
11/30/95 $1,700,000 Dutchess IDA (Solid Waste) 104.8210 $100.000 6.8000 07/01/10 07/01/10
11/30/95 $1,805,000 Dutchess IDA (Solid Waste) 103.3130 $100.000 7.0000 01/01/10 01/01/10
11/30/95 $25,000 Elmira HDC 105.7130 $104.000 7.5000 08/01/07 08/01/97
11/30/95 $3,230,000 Erie IDA (Medaille College) 109.5730 $100.000 8.0000 12/30/22 12/30/22
11/30/95 $1,355,000 Erie IDA (Mercy Hosp) 101.9430 $100.000 6.2500 06/01/10 06/01/10
11/30/95 $152,125 Erie IDA (Great Lakes Ortho) 112.4780 $100.000 12.0990 05/01/00 05/01/00
11/30/95 Erie IDA (Great Lakes Ortho)
principal paydown
11/30/95 Erie IDA (Hospital Lease) principal
11/30/95 $1,191,332 Erie IDA (Hospital Lease) 100.3980 $100.000 8.4000 08/01/96 08/01/96
11/30/95 $3,690,000 Erie IDA (Affordable Hosp) 105.5000 $104.000 9.2500 12/01/15 12/01/96
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,120,000 NYS COPS (BOCES) 6.1181 1 $1.2906 108.5376 30 $6,197.74
11/30/95 $6,965,000 Brookhaven (Dowling College) 6.3793 1 $1.6687 106.4167 30 $39,402.42
11/30/95 $640,000 Brookhaven (Interdiciplinary) 6.5513 1 $4.2263 113.7703 30 $3,975.17
11/30/95 $3,220,000 Brookhaven (Interdiciplinary) 7.6513 1 $4.7236 116.5946 30 $23,938.03
11/30/95 $235,000 Brookhaven (Modular Devices) 5.4601 1 $0.5940 102.2820 30 $1,093.67
11/30/95 $870,000 Brookhaven IDA (Farber) 6.3750 0 $3.1697 103.1697 30 $4,621.88
11/30/95 $490,000 Brookhaven IDA (Farber) 6.3750 0 $3.1697 103.1697 30 $2,603.13
11/30/95 $190,000 Broome IDA 6.6833 1 $3.7540 106.7540 30 $1,129.66
11/30/95 $195,000 Broome IDA 6.7324 1 $3.7788 106.7788 30 $1,168.18
11/30/95 $1,010,000 Broome IDA (Binghamton Simulator) 6.1521 1 $3.4145 110.8845 30 $5,741.62
11/30/95 $500,000 Carnegie Redevl Corp 6.6330 1 $1.7305 106.2185 30 $2,935.62
11/30/95 $2,045,000 Cattaraugus IDA (Cherry Creek) 6.3399 1 $2.4227 118.6427 30 $12,818.46
11/30/95 $9,155,000 Cattaraugus IDA (ST Bonaventure) 5.8401 1 $4.1269 116.1659 30 $51,757.85
11/30/95 $15,000,000 Cattaraugus COPS (Auburn Hosp) 5.7137 1 $2.4833 106.2693 30 $75,898.89
11/30/95 $7,900,000 Chautauqua IDA (Dunkirk Glass) 11.0851 1 $5.7180 108.7180 30 $79,339.08
11/30/95 $15,000 Clifton Park 7.9898 1 $2.8097 106.8097 30 $106.67
11/30/95 $4,640,000 Clifton Springs Hospital & Clinic 7.7084 1 $0.6444 103.8424 30 $30,951.09
11/30/95 $820,000 Columbia IDA (ARC) 5.8291 1 $3.8534 111.3654 30 $4,435.93
11/30/95 $2,610,000 Columbia IDA (ARC) 7.8025 1 $4.3009 110.5399 30 $18,759.12
12/15/95 ($65,000) Columbia IDA (Berkshire Farm) 6.0409 109.0765 16 ($190.35)
11/30/95 $895,000 Columbia IDA (Berkshire Farm) 6.0409 1 $3.1625 109.0765 30 $4,914.45
11/30/95 $1,855,000 Columbia IDA (Berkshire Farm) 6.7010 1 $3.4375 111.9575 30 $11,597.26
11/30/95 $140,000 Cortland IDA (Paul Bunyon) 4.8802 1 $3.3111 112.5641 30 $640.89
11/30/95 $3,500,000 Dutchess IDA (Bard College) 5.7859 1 $0.5638 108.1838 30 $18,256.62
11/30/95 $1,800,000 Dutchess IDA (Merchants Press) 7.1917 1 $3.3125 107.2245 30 $11,566.90
11/30/95 $4,590,000 Dutchess IDA (Merchants Press) 7.9387 1 $3.7500 110.8960 30 $33,674.16
11/30/95 $1,700,000 Dutchess IDA (Solid Waste) 6.2894 1 $2.8144 107.6354 30 $9,590.29
11/30/95 $1,805,000 Dutchess IDA (Solid Waste) 6.6335 1 $2.8972 106.2102 30 $10,597.54
11/30/95 $25,000 Elmira HDC 6.1505 1 $2.4791 108.1921 30 $138.63
11/30/95 $3,230,000 Erie IDA (Medaille College) 7.1915 1 $3.3333 112.9063 30 $21,855.42
11/30/95 $1,355,000 Erie IDA (Mercy Hosp) 6.0469 1 $3.1076 105.0506 30 $7,172.81
11/30/95 $152,125 Erie IDA (Great Lakes Ortho) 8.6379 1 $0.9746 113.4526 30 $1,242.34
11/30/95 Erie IDA (Great Lakes Ortho)
principal paydown 30 ($118.30)
11/30/95 Erie IDA (Hospital Lease) principal 30 ($188.16)
11/30/95 $1,191,332 Erie IDA (Hospital Lease) 7.7505 1 $2.7766 103.1746 30 $7,938.79
11/30/95 $3,690,000 Erie IDA (Affordable Hosp) 7.3753 1 $4.5993 110.0993 30 $24,969.47
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,535,000 Erie IDA (Air Cargo) 105.5970 $100.000 8.2500 10/01/07 10/01/00
11/30/95 $2,380,000 Erie IDA (Air Cargo) 112.5590 $100.000 8.5000 10/01/15 10/01/05
11/30/95 $12,590,000 Erie IDA Water Rev 7.3 20.7720 $100.000 0.0000 12/01/17 12/01/17
11/30/95 $2,150,000 Franklin Solid Waste Mgmt Auth 101.7640 $100.000 6.1250 06/01/09 06/01/09
11/30/95 $3,255,000 Franklin Solid Waste Mgmt Auth 99.0000 $100.000 6.2500 06/01/15 06/01/15
11/30/95 $160,000 Fulton IDA 101.5000 $100.000 8.5000 12/15/08 12/15/98
11/30/95 $835,000 Geneva IDA (Finger Lakes CP) 108.9710 $102.000 8.2500 11/01/04 11/01/01
11/30/95 $2,095,000 Groton Community Health 112.8560 $100.000 7.4500 07/15/21 07/15/07
12/22/95 ($555,000) Guam Airport 6.6000
11/30/95 $4,230,000 Guam Airport 103.3850 $100.000 6.6000 10/01/10 10/01/05
11/30/95 $55,730,000 Guam Airport 103.0730 $100.000 6.7000 10/01/23 10/01/23
11/30/95 $4,780,000 Guam Power Auth 105.7790 $100.000 6.7500 10/01/24 10/01/06
11/30/95 $2,515,000 Guam Economic Dev 106.8160 $103.000 9.5000 11/01/18 11/01/96
11/30/95 $3,025,000 Guam Economic Dev 106.7060 $103.000 9.3750 11/01/18 11/01/96
11/30/95 $725,000 Hamilton Elderly HSG 107.0000 $104.500 11.2500 01/01/15 05/01/96
11/30/95 $4,075,000 Hemstead IDA (Resco) 104.2720 $102.000 7.4000 12/01/10 12/01/96
12/19/95 $35,000 Hemstead IDA (Resco) 104.1000 $102.000 7.4000 12/01/10 12/01/96
11/30/95 $1,440,000 Herkimer IDA (Burrows Paper) 104.4180 $100.000 8.0000 01/01/09 01/01/09
11/30/95 $2,000,000 Holiday Square HDC 98.4929 $100.000 5.8000 01/15/24 01/15/24
11/30/95 $475,000 Hudson IDA (Northside) 116.9310 $103.000 9.0000 12/01/09 12/01/99
11/30/95 $980,000 ISLIP IDA (Leeway School) 107.3090 $102.000 9.0000 08/01/21 08/01/01
11/30/95 $100,000 ISLIP IDA (WJL REALTY) 108.2670 $102.000 7.9000 03/01/05 03/01/00
11/30/95 $50,000 ISLIP IDA (WJL REALTY) 107.8970 $102.000 7.8000 03/01/03 03/01/00
11/30/95 $100,000 ISLIP IDA (WJL REALTY) 108.0820 $102.000 7.8500 03/01/04 03/01/00
11/30/95 $500,000 ISLIP IDA (WJL REALTY) 109.0410 $102.000 7.9500 03/01/10 03/01/00
11/30/95 $2,725,000 Islip Res Rec 111.6120 $100.000 6.2500 07/01/06 07/01/06
11/30/95 $2,000,000 Islip Res Rec 111.6990 $100.000 6.5000 07/01/09 07/01/09
11/30/95 $100,000 Lowville GO 114.4810 $100.000 7.2000 09/15/05 09/15/05
11/30/95 $75,000 Lowville GO 115.2070 $100.000 7.2000 09/15/07 09/15/07
11/30/95 $100,000 Lowville GO 119.2660 $100.000 7.2000 09/15/12 09/15/12
11/30/95 $100,000 Lowville GO 119.9550 $100.000 7.2000 09/15/13 09/15/13
11/30/95 $100,000 Lowville GO 120.6080 $100.000 7.2000 09/15/14 09/15/14
11/30/95 $3,685,000 Lyons Community Hospital 103.5340 $100.000 6.8000 09/01/24 09/01/06
11/30/95 $3,980,000 Mc Cleay (Larchmont) 110.0840 $105.000 8.5000 01/01/31 01/01/99
11/30/95 $9,400,000 MTA (FLT) 100.1250 $100.000 6.9230 07/01/13 07/01/13
11/30/95 $3,000,000 MTA (FLT) 97.7500 $100.000 6.9230 07/01/22 07/01/22
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,535,000 Erie IDA (Air Cargo) 6.8665 1 $1.3520 106.9490 30 $9,393.76
11/30/95 $2,380,000 Erie IDA (Air Cargo) 6.7314 1 $1.3930 113.9520 30 $15,213.29
11/30/95 $12,590,000 Erie IDA Water Rev 7.2716 1 $0.0000 20.7720 30 $15,847.21
11/30/95 $2,150,000 Franklin Solid Waste Mgmt Auth 5.9333 1 $3.0454 104.8094 30 $11,141.77
11/30/95 $3,255,000 Franklin Solid Waste Mgmt Auth 6.3400 0 $3.1076 102.1076 30 $16,953.13
11/30/95 $160,000 Fulton IDA 7.9329 1 $3.8958 105.3958 30 $1,114.79
11/30/95 $835,000 Geneva IDA (Finger Lakes CP) 6.6700 1 $0.6645 109.6355 30 $5,088.42
11/30/95 $2,095,000 Groton Community Health 5.9046 1 $2.7937 115.6497 30 $11,921.69
12/22/95 ($555,000) Guam Airport 6.1350 104.4667 9 ($889.25)
11/30/95 $4,230,000 Guam Airport 6.1350 1 $1.0816 104.4666 30 $22,591.83
11/30/95 $55,730,000 Guam Airport 6.4598 1 $1.0980 104.1710 30 $312,517.21
11/30/95 $4,780,000 Guam Power Auth 6.0150 1 $1.1062 106.8852 30 $25,609.44
11/30/95 $2,515,000 Guam Economic Dev 5.0405 1 $0.7652 107.5812 30 $11,364.94
11/30/95 $3,025,000 Guam Economic Dev 5.0396 1 $0.7552 107.4612 30 $13,651.86
11/30/95 $725,000 Hamilton Elderly HSG 4.9022 1 $0.9062 107.9062 30 $3,195.91
11/30/95 $4,075,000 Hemstead IDA (Resco) 4.9504 1 $3.6794 107.9514 30 $18,147.43
12/19/95 $35,000 Hemstead IDA (Resco) 5.0044 1 $0.3700 104.4700 12 $60.99
11/30/95 $1,440,000 Herkimer IDA (Burrows Paper) 7.4640 1 $3.3111 107.7291 30 $9,649.08
11/30/95 $2,000,000 Holiday Square HDC 5.9100 0 $2.1750 100.6680 30 $9,666.67
11/30/95 $475,000 Hudson IDA (Northside) 4.9699 1 $4.4750 121.4060 30 $2,388.36
11/30/95 $980,000 ISLIP IDA (Leeway School) 7.6701 1 $2.9750 110.2840 30 $6,908.10
11/30/95 $100,000 ISLIP IDA (WJL REALTY) 6.0799 1 $1.9530 110.2200 30 $558.44
11/30/95 $50,000 ISLIP IDA (WJL REALTY) 6.0800 1 $1.9283 109.8253 30 $278.22
11/30/95 $100,000 ISLIP IDA (WJL REALTY) 6.0799 1 $1.9406 110.0226 30 $557.44
11/30/95 $500,000 ISLIP IDA (WJL REALTY) 5.9300 1 $1.9654 111.0064 30 $2,742.78
11/30/95 $2,725,000 Islip Res Rec 4.8350 1 $2.5868 114.1988 30 $12,538.43
11/30/95 $2,000,000 Islip Res Rec 5.2818 1 $2.6902 114.3892 30 $10,069.69
11/30/95 $100,000 Lowville GO 5.2850 1 $1.5000 115.9810 30 $510.80
11/30/95 $75,000 Lowville GO 5.4350 1 $1.5000 116.7070 30 $396.44
11/30/95 $100,000 Lowville GO 5.4350 1 $1.5000 120.7660 30 $546.97
11/30/95 $100,000 Lowville GO 5.4350 1 $1.5000 121.4550 30 $550.09
11/30/95 $100,000 Lowville GO 5.4350 1 $1.5000 122.1080 30 $553.05
11/30/95 $3,685,000 Lyons Community Hospital 6.3400 1 $1.6811 105.2151 30 $20,484.42
11/30/95 $3,980,000 Mc Cleay (Larchmont) 6.3399 1 $3.5180 113.6020 30 $23,887.48
11/30/95 $9,400,000 MTA (FLT) 6.9098 1 $2.8653 102.9903 30 $55,745.35
11/30/95 $3,000,000 MTA (FLT) 7.1119 0 $2.8653 100.6153 30 $17,307.50
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $3,740,000 Middleton IDA (Southwinds) 106.6370 $102.000 8.3750 03/01/18 03/01/03
11/30/95 $500,000 Monroe COPS 108.0440 $100.000 8.0500 01/01/11 01/01/01
11/30/95 $2,442,033 Monroe IDA (Cottrone Dev Fac) 116.2670 $103.000 9.5000 12/01/10 12/01/00
11/30/95 $1,620,000 Monroe IDA (Melles Griot) 107.5740 $103.000 9.5000 12/01/09 12/01/96
11/30/95 $3,080,000 Monroe IDA (Brazill Merk) 108.7860 $100.000 7.9000 12/15/14 12/15/05
11/30/95 $10,000 Monroe HDA (COHBER) 108.3740 $102.000 7.5500 12/01/01 12/01/98
11/30/95 $10,000 Monroe HDA (COHBER) 108.0670 $102.000 7.6500 12/01/02 12/01/98
11/30/95 $10,000 Monroe HDA (COHBER) 108.2040 $102.000 7.7000 12/01/03 12/01/98
11/30/95 $170,000 Monroe HDA (COHBER) 109.4920 $102.000 7.8500 12/01/09 12/01/98
11/30/95 $625,000 Monroe IDA (West End) 101.9070 $100.000 6.7500 12/01/04 12/01/04
11/30/95 $1,375,000 Monroe IDA (West End) 108.7310 $100.000 8.0000 12/01/14 12/01/14
11/30/95 $530,000 Monroe IDA (DePaul) 109.2110 $100.000 8.3000 09/01/02 09/01/02
11/30/95 $438,958 Monroe IDA (De Carolis) 100.0090 $100.000 7.5000 01/30/05 01/30/05
11/30/95 $4,605,000 Monroe IDA (DePaul) 113.2920 $102.000 8.8000 09/01/21 09/01/01
11/30/95 $14,525,000 Monroe IDA (Genesee Hosp) 103.6750 $100.000 7.0000 11/01/18 11/01/03
11/30/95 $900,000 Monroe IDA (Canal Ponds) 107.3750 $100.000 7.0000 06/15/13 06/15/04
11/30/95 $2,284,000 Monroe IDA (Morrell/Morrell) 103.5270 $100.000 7.0000 12/01/07 12/01/07
11/30/95 $880,000 Monroe IDA (DePaul CF) 106.4740 $100.000 6.4500 02/01/14 02/01/14
11/30/95 $1,285,000 Monroe IDA (DePaul CF) 105.8210 $100.000 6.5000 02/01/24 02/01/24
11/30/95 $155,000 Monroe IDA (West End) 101.9070 $100.000 6.7500 12/01/04 12/01/99
11/30/95 $345,000 Monroe IDA (West End) 109.6340 $100.000 8.0000 12/01/14 12/01/08
11/30/95 $80,000 Monroe IDA (West End) 101.9070 $100.000 6.7500 12/01/04 12/01/99
11/30/95 $170,000 Monroe IDA (West End) 112.0280 $100.000 8.0000 12/01/14 12/01/08
11/30/95 $515,000 Monroe IDA (West End) 112.0280 $100.000 8.0000 12/01/14 12/01/14
11/30/95 $2,625,000 Monroe IDA (Roberts Wesleyan) 102.4720 $100.000 6.7000 09/01/11 09/01/11
11/30/95 $1,590,000 Monroe IDA (Al Sigl Ctr) 101.5230 $100.000 7.2500 12/01/15 12/01/15
11/30/95 $300,000 Monroe HDC 104.6560 $100.000 7.0000 08/01/21 08/01/13
11/30/95 $1,130,000 Montgomery IDA (New Dimension) 109.3450 $102.000 8.9000 05/01/16 05/01/01
11/30/95 $590,000 Montgomery IDA Breton 109.8310 $103.000 8.1500 10/01/11 04/01/98
11/30/95 $5,860,000 Montgomery IDA (Amsterdam) 104.2010 $100.000 7.2500 01/01/19 01/01/05
11/30/95 $2,725,000 Nassau IDA (ACLDD) 103.4350 $102.000 8.1250 10/01/22 10/01/03
11/30/95 $500,000 Nassau IDA (Structured Industries) 106.5690 $102.000 7.7500 02/01/12 02/01/99
11/30/95 $355,000 Nassau IDA (RJS Scientific) 104.1560 $100.000 8.0500 12/01/05 12/01/01
11/30/95 $2,700,000 Nassau IDA (RJS Scientific) 109.7900 $100.000 9.0500 12/01/25 12/01/08
11/30/95 $20,000 New Hartford HDC 108.2800 $100.000 7.3750 07/01/24 07/01/02
11/30/95 $3,000,000 New Rochelle IDA (College of NR) 105.4830 $100.000 6.7500 07/01/22 07/01/04
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $3,740,000 Middleton IDA (Southwinds) 7.3866 1 $2.0704 108.7074 30 $25,026.17
11/30/95 $500,000 Monroe COPS 6.1807 1 $3.3318 111.3758 30 $2,868.25
11/30/95 $2,442,033 Monroe IDA (Cottrone Dev Fac) 6.1900 1 $4.7236 120.9906 30 $15,240.97
11/30/95 $1,620,000 Monroe IDA (Melles Griot) 4.6395 1 $4.7236 112.2976 30 $7,033.56
11/30/95 $3,080,000 Monroe IDA (Brazill Merk) 6.6841 1 $3.6208 112.4068 30 $19,284.36
11/30/95 $10,000 Monroe HDA (COHBER) 5.1299 1 $3.7540 112.1280 30 $47.93
11/30/95 $10,000 Monroe HDA (COHBER) 5.3301 1 $3.8037 111.8707 30 $49.69
11/30/95 $10,000 Monroe HDA (COHBER) 5.3301 1 $3.8286 112.0326 30 $49.76
11/30/95 $170,000 Monroe HDA (COHBER) 5.0299 1 $3.9031 113.3951 30 $808.02
11/30/95 $625,000 Monroe IDA (West End) 6.4672 1 $3.3562 105.2632 30 $3,545.62
11/30/95 $1,375,000 Monroe IDA (West End) 7.1526 1 $3.9777 112.7087 30 $9,237.26
11/30/95 $530,000 Monroe IDA (DePaul) 6.5852 1 $2.0519 111.2629 30 $3,236.04
11/30/95 $438,958 Monroe IDA (De Carolis) 7.4963 1 $2.5000 102.5090 30 $2,810.94
11/30/95 $4,605,000 Monroe IDA (DePaul) 6.3000 1 $2.1755 115.4675 30 $27,915.72
11/30/95 $14,525,000 Monroe IDA (Genesee Hosp) 6.4000 1 $0.5638 104.2388 30 $80,750.39
11/30/95 $900,000 Monroe IDA (Canal Ponds) 5.8884 1 $3.2083 110.5833 30 $4,883.69
11/30/95 $2,284,000 Monroe IDA (Morrell/Morrell) 6.5706 1 $3.4805 107.0075 30 $13,382.41
11/30/95 $880,000 Monroe IDA (DePaul CF) 5.8651 1 $2.1320 108.6060 30 $4,671.23
11/30/95 $1,285,000 Monroe IDA (DePaul CF) 6.0656 1 $2.1486 107.9696 30 $7,012.89
11/30/95 $155,000 Monroe IDA (West End) 6.2046 1 $3.3562 105.2632 30 $843.61
11/30/95 $345,000 Monroe IDA (West End) 6.8678 1 $3.9777 113.6117 30 $2,243.26
11/30/95 $80,000 Monroe IDA (West End) 6.2046 1 $3.3562 105.2632 30 $435.41
11/30/95 $170,000 Monroe IDA (West End) 6.6071 1 $3.9777 116.0057 30 $1,085.82
11/30/95 $515,000 Monroe IDA (West End) 6.8580 1 $3.9777 116.0057 30 $3,414.31
11/30/95 $2,625,000 Monroe IDA (Roberts Wesleyan) 6.4465 1 $1.6563 104.1283 30 $14,683.89
11/30/95 $1,590,000 Monroe IDA (Al Sigl Ctr) 7.1062 1 $3.6048 105.1278 30 $9,898.54
11/30/95 $300,000 Monroe HDC 6.5502 1 $2.3138 106.9698 30 $1,751.69
11/30/95 $1,130,000 Montgomery IDA (New Dimension) 7.0993 1 $0.7169 110.0619 30 $7,357.83
11/30/95 $590,000 Montgomery IDA Breton 4.8700 1 $1.3356 111.1666 30 $2,661.79
11/30/95 $5,860,000 Montgomery IDA (Amsterdam) 6.6259 1 $3.0006 107.2016 30 $34,686.69
11/30/95 $2,725,000 Nassau IDA (ACLDD) 7.7202 1 $1.3315 104.7665 30 $18,366.93
11/30/95 $500,000 Nassau IDA (Structured Industries) 6.0201 1 $2.5618 109.1308 30 $2,737.41
11/30/95 $355,000 Nassau IDA (RJS Scientific) 7.1854 1 $4.0026 108.1586 30 $2,299.11
11/30/95 $2,700,000 Nassau IDA (RJS Scientific) 7.8359 1 $4.4998 114.2898 30 $20,150.19
11/30/95 $20,000 New Hartford HDC 5.8411 1 $3.0524 111.3324 30 $108.38
11/30/95 $3,000,000 New Rochelle IDA (College of NR) 5.9250 1 $2.7937 108.2767 30 $16,038.49
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $330,000 NYC GO ser E 112.0340 $100.000 7.4000 02/01/02 02/01/02
11/30/95 $2,000,000 NYC GO ser D 111.0200 $101.500 7.5000 02/01/03 02/01/02
11/30/95 $25,000 NYC GO 104.9250 $102.000 7.0000 02/01/10 08/01/96
11/30/95 $1,500,000 NYC GO 111.5330 $101.500 7.7500 02/01/10 02/01/02
11/30/95 $1,000,000 NYC GO 108.2190 $100.000 7.1000 02/01/09 02/01/04
11/30/95 $4,000,000 NYC GO SER H 108.2190 $100.000 7.1000 02/01/10 02/01/04
11/30/95 $16,387,000 NYC GO (CARS) 108.8750 $100.000 7.9200 08/12/10 08/12/04
11/30/95 $6,200,000 NYC GO RIBS 96.2500 $100.000 6.7240 08/01/09 08/01/09
11/30/95 $4,200,000 NYC GO RIBS 96.0000 $100.000 6.7350 08/01/10 08/01/10
11/30/95 $2,000,000 NYC GO 106.0410 $100.000 6.6000 02/15/10 02/15/07
11/30/95 $4,990,000 NYC GO 8.449 40.7830 $100.000 0.0000 11/15/11 11/15/11
11/30/95 $1,000,000 NYC GO 112.9540 $101.500 7.7500 07/01/15 07/01/01
11/30/95 $1,765,000 NYC GO 108.2190 $100.000 7.1000 02/01/11 02/01/04
11/30/95 $625,000 NYC GO 108.0210 $100.000 7.0000 10/01/12 02/01/04
11/30/95 $15,000,000 NYC GO RITES 106.0850 $100.000 7.9520 10/01/11 10/01/04
11/30/95 $8,387,000 NYC GO (CARS) 108.1250 $100.000 7.9200 09/01/11 09/01/11
11/30/95 $270,000 NYC GO 6.300 40.6730 $100.000 0.0000 05/15/11 05/15/11
11/30/95 $200,000 NYC GO 6.350 37.7650 $100.000 0.0000 05/15/12 05/15/12
11/30/95 $1,000,000 NYC GO 112.9540 $101.500 7.7500 08/15/13 08/15/01
11/30/95 $6,000,000 NYC GO 113.1760 $101.500 7.7500 02/01/13 02/01/02
11/30/95 $3,845,000 NYC GO ser D 112.8650 $101.500 7.6250 02/01/13 02/01/02
11/30/95 $270,000 NYC GO ser F 112.5280 $101.500 7.6250 02/01/14 02/01/02
11/30/95 $4,000,000 NYC GO ser H 108.8960 $100.000 7.2000 02/01/14 02/01/04
11/30/95 $13,150,000 NYC GO RIBS 100.3750 $100.000 7.6310 04/08/13 04/08/13
11/30/95 $1,690,000 NYC GO 6.350 63.4360 $100.000 0.0000 05/15/14 05/15/14
11/30/95 $500,000 NYC GO (5.9 CV 8/1/03) 5.950 60.7680 $89.000 0.0000 08/01/14 08/01/03
11/30/95 $5,400,000 NYC GO RIBS 95.0000 $100.000 6.8220 08/22/13 08/22/13
11/30/95 $1,590,000 NYC GO (preref 8/1/01) 121.0700 $101.500 8.2500 08/01/14 08/01/01
11/30/95 $35,000 NYC GO 115.5740 $101.500 8.2500 08/01/14 08/01/01
11/30/95 $500,000 NYC GO 107.8480 $100.000 6.5000 08/01/14 08/01/14
11/30/95 $30,000 NYC GO 101.1210 $100.000 7.0000 02/01/15 02/01/00
11/30/95 $70,000 NYC GO 7.750 74.1810 $101.500 0.0000 08/15/16 08/15/01
11/30/95 $3,000,000 NYC GO 111.3230 $101.500 7.5000 02/01/16 02/01/02
11/30/95 $2,800,000 NYC GO 108.4610 $100.000 7.2000 02/01/15 02/01/04
11/30/95 $920,000 NYC GO 121.9540 $101.500 8.2500 11/15/15 11/15/01
11/30/95 $80,000 NYC GO 116.1940 $101.500 8.2500 11/15/15 11/15/01
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $330,000 NYC GO ser E 5.0999 1 $2.4461 114.4801 30 $1,605.55
11/30/95 $2,000,000 NYC GO ser D 5.5697 1 $2.4791 113.4991 30 $10,535.94
11/30/95 $25,000 NYC GO 2.5090 1 $2.3138 107.2388 30 $56.05
11/30/95 $1,500,000 NYC GO 5.7097 1 $2.5618 114.0948 30 $8,143.09
11/30/95 $1,000,000 NYC GO 5.8198 1 $2.3469 110.5659 30 $5,362.26
11/30/95 $4,000,000 NYC GO SER H 5.8198 1 $2.3469 110.5659 30 $21,449.06
11/30/95 $16,387,000 NYC GO (CARS) 6.5626 1 $2.3760 111.2510 30 $99,700.67
11/30/95 $6,200,000 NYC GO RIBS 7.1570 0 $2.2226 98.4726 30 $34,740.67
11/30/95 $4,200,000 NYC GO RIBS 7.1790 0 $2.2262 98.2262 30 $23,572.50
11/30/95 $2,000,000 NYC GO 5.8559 1 $1.9250 107.9660 30 $10,537.30
11/30/95 $4,990,000 NYC GO 5.7000 1 $0.0000 40.7830 30 $9,666.59
11/30/95 $1,000,000 NYC GO 5.2753 1 $3.2076 116.1616 30 $5,106.56
11/30/95 $1,765,000 NYC GO 5.8198 1 $2.3469 110.5659 30 $9,464.40
11/30/95 $625,000 NYC GO 5.7539 1 $2.3138 110.3348 30 $3,306.54
11/30/95 $15,000,000 NYC GO RITES 7.0141 1 $1.3032 107.3882 30 $94,153.99
11/30/95 $8,387,000 NYC GO (CARS) 7.0555 1 $1.9580 110.0830 30 $54,284.20
11/30/95 $270,000 NYC GO 5.9050 1 $0.0000 40.6730 30 $540.39
11/30/95 $200,000 NYC GO 6.0051 1 $0.0000 37.7650 30 $377.97
11/30/95 $1,000,000 NYC GO 5.3151 1 $2.2604 115.2144 30 $5,103.13
11/30/95 $6,000,000 NYC GO 5.4150 1 $2.5618 115.7378 30 $31,336.01
11/30/95 $3,845,000 NYC GO ser D 5.3550 1 $2.5204 115.3854 30 $19,798.20
11/30/95 $270,000 NYC GO ser F 5.4150 1 $2.5204 115.0484 30 $1,401.72
11/30/95 $4,000,000 NYC GO ser H 5.8148 1 $2.3800 111.2760 30 $21,568.26
11/30/95 $13,150,000 NYC GO RIBS 7.5902 1 $1.1022 101.4772 30 $84,404.66
11/30/95 $1,690,000 NYC GO 2.4810 1 $0.0000 63.4360 30 $2,216.50
11/30/95 $500,000 NYC GO (5.9 CV 8/1/03) 5.0376 1 $0.0000 60.7680 30 $1,275.52
11/30/95 $5,400,000 NYC GO RIBS 7.3288 0 $1.8571 96.8571 30 $30,699.00
11/30/95 $1,590,000 NYC GO (preref 8/1/01) 4.2620 1 $2.7270 123.7970 30 $6,991.01
11/30/95 $35,000 NYC GO 5.2649 1 $2.7270 118.3010 30 $181.66
11/30/95 $500,000 NYC GO 5.8050 1 $2.1486 109.9966 30 $2,660.54
11/30/95 $30,000 NYC GO 6.6839 1 $2.3138 103.4348 30 $172.84
11/30/95 $70,000 NYC GO 5.5690 1 $0.0000 74.1810 30 $240.98
11/30/95 $3,000,000 NYC GO 5.5150 1 $2.4791 113.8021 30 $15,690.47
11/30/95 $2,800,000 NYC GO 5.8791 1 $2.3800 110.8410 30 $15,205.06
11/30/95 $920,000 NYC GO 4.2620 1 $0.3437 122.2977 30 $3,996.12
11/30/95 $80,000 NYC GO 5.2650 1 $0.3437 116.5377 30 $409.05
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $3,050,000 NYC GO RIBS 94.2500 $100.000 6.8330 08/01/15 08/01/15
11/30/95 $1,000,000 NYC GO (5.5 cv 10/01/03) 5.500 57.5470 $88.000 0.0000 10/01/15 10/01/03
11/30/95 $2,050,000 NYC GO 112.9540 $101.500 7.7500 08/15/17 08/15/01
11/30/95 $1,500,000 NYC GO 111.3230 $100.000 7.5000 02/01/18 02/01/04
11/30/95 $45,000 NYC GO 114.3620 $101.500 8.0000 08/01/18 08/01/01
11/30/95 $2,760,000 NYC GO 121.9540 $101.500 8.2500 11/15/18 11/15/01
11/30/95 $240,000 NYC GO 116.1940 $101.500 8.2500 11/15/18 11/15/01
11/30/95 $1,865,000 NYC GO 112.1040 $101.500 7.5000 08/01/19 08/01/02
11/30/95 $7,500,000 NYC GO 111.9850 $101.500 7.5000 08/01/20 08/01/02
11/30/95 $1,000,000 NYC GO 111.8660 $100.000 7.5000 08/01/21 08/01/04
11/30/95 $650,000 NYC GO 107.4350 $100.000 7.0000 02/01/20 02/01/04
11/30/95 $4,600,000 NYC GO 107.6510 $100.000 7.0000 02/01/22 02/01/04
11/30/95 $1,390,000 NYC GO 119.9330 $101.500 8.0000 08/15/20 08/15/01
11/30/95 $10,000 NYC GO 114.4370 $101.500 8.0000 08/15/20 08/15/01
11/30/95 $20,000 NYC GO 116.1940 $101.500 8.2500 11/15/20 11/15/01
11/30/95 $245,000 NYC GO 119.9330 $101.500 8.0000 08/15/21 08/15/01
11/30/95 $5,000 NYC GO 114.4370 $101.500 8.0000 08/15/21 08/15/01
11/30/95 $6,180,000 NYC GO 114.1920 $100.000 7.5000 08/15/20 08/15/06
11/30/95 $13,820,000 NYC GO 108.3360 $100.000 7.2500 08/15/24 08/15/01
11/30/95 $8,030,000 NYC GO 105.5590 $100.000 6.6250 02/15/25 02/15/25
11/30/95 $2,000,000 NYC GO 105.3520 $100.000 6.6250 08/15/25 08/15/25
11/30/95 $4,525,000 NYC Health & Hosp 101.0310 $100.000 6.3000 02/15/20 02/15/20
11/30/95 $12,500,000 NYC Health & Hosp LEVRRS 101.5000 $100.000 6.9120 02/15/11 02/15/11
11/30/95 $1,465,000 NYC HDC 102.7000 $101.000 8.2500 01/01/11 07/01/96
11/30/95 $80,000 NYC HDC 101.0000 $100.000 6.5000 05/01/22 05/01/22
11/30/95 $15,000 NYC HDC 102.1260 $100.000 6.5000 05/01/22 11/01/00
11/30/95 $5,000 NYC HDC 90.0000 $100.000 5.6000 11/01/20 11/01/20
11/30/95 $200,000 NYC HDC 104.0000 $101.000 9.0000 05/01/22 11/01/98
11/30/95 $1,780,000 NYC HDC 102.3490 $102.000 7.5000 05/01/23 11/01/95
12/05/95 $50,000 NYC HDC 104.4000 $101.000 7.5000 05/01/23 11/01/98
11/30/95 $244,178 NYC HDC (Rosalie Manning) 104.1830 $100.000 7.0340 11/15/18 11/15/18
12/15/95 ($345) NYC HDC (Rosalie Manning) 7.0340
11/30/95 $648,839 NYC HDC (Scott Tower) 103.7090 $100.000 7.0000 12/15/18 12/15/18
12/15/95 ($910) NYC HDC (Scott Tower) 7.0000
11/30/95 $337,680 NYC HDC (Albert Einstein) 102.3780 $100.000 6.5000 12/15/17 12/15/17
11/30/95 NYC HDC (Albert Einstein) principal
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $3,050,000 NYC GO RIBS 7.3907 0 $2.2586 96.5086 30 $17,367.21
11/30/95 $1,000,000 NYC GO (5.5 cv 10/01/03) 5.4943 1 $0.0000 57.5470 30 $2,634.84
11/30/95 $2,050,000 NYC GO 5.3151 1 $2.2604 115.2144 30 $10,461.43
11/30/95 $1,500,000 NYC GO 5.7423 1 $2.4791 113.8021 30 $8,168.58
11/30/95 $45,000 NYC GO 5.2650 1 $2.6444 117.0064 30 $231.01
11/30/95 $2,760,000 NYC GO 4.2620 1 $0.3437 122.2977 30 $11,988.36
11/30/95 $240,000 NYC GO 5.2650 1 $0.3437 116.5377 30 $1,227.14
11/30/95 $1,865,000 NYC GO 5.4950 1 $2.4791 114.5831 30 $9,785.57
11/30/95 $7,500,000 NYC GO 5.5150 1 $2.4791 114.4641 30 $39,454.37
11/30/95 $1,000,000 NYC GO 5.7416 1 $2.4791 114.3451 30 $5,471.04
11/30/95 $650,000 NYC GO 5.8408 1 $2.3138 109.7488 30 $3,472.20
11/30/95 $4,600,000 NYC GO 5.8087 1 $2.3138 109.9648 30 $24,485.53
11/30/95 $1,390,000 NYC GO 4.2620 1 $2.3333 122.2663 30 $6,036.06
11/30/95 $10,000 NYC GO 5.2650 1 $2.3333 116.7703 30 $51.23
11/30/95 $20,000 NYC GO 5.2650 1 $0.3437 116.5377 30 $102.26
11/30/95 $245,000 NYC GO 4.2620 1 $2.3333 122.2663 30 $1,063.91
11/30/95 $5,000 NYC GO 5.2650 1 $2.3333 116.7703 30 $25.62
11/30/95 $6,180,000 NYC GO 5.7087 1 $2.1875 116.3795 30 $34,215.35
11/30/95 $13,820,000 NYC GO 5.5249 1 $2.1145 110.4505 30 $70,277.97
11/30/95 $8,030,000 NYC GO 6.2094 1 $1.9322 107.4912 30 $44,663.96
11/30/95 $2,000,000 NYC GO 6.2265 1 $1.9322 107.2842 30 $11,133.43
11/30/95 $4,525,000 NYC Health & Hosp 6.2161 1 $1.8375 102.8685 30 $24,112.25
11/30/95 $12,500,000 NYC Health & Hosp LEVRRS 6.7512 1 $2.0160 103.5160 30 $72,797.63
11/30/95 $1,465,000 NYC HDC 5.2022 1 $3.4145 106.1145 30 $6,739.36
11/30/95 $80,000 NYC HDC 6.4204 1 $0.5236 101.5236 30 $434.55
11/30/95 $15,000 NYC HDC 5.9931 1 $0.5236 102.6496 30 $76.90
11/30/95 $5,000 NYC HDC 6.4083 0 $0.4511 90.4511 30 $23.33
11/30/95 $200,000 NYC HDC 7.7501 1 $0.7250 104.7250 30 $1,352.72
11/30/95 $1,780,000 NYC HDC 7.5000 1 102.3490 30 $11,386.33
12/05/95 $50,000 NYC HDC 6.1398 1 $0.7083 105.1083 26 $233.04
11/30/95 $244,178 NYC HDC (Rosalie Manning) 6.6750 1 $0.2930 104.4760 30 $1,419.04
12/15/95 ($345) NYC HDC (Rosalie Manning) 6.6750 104.4761 16 ($1.07)
11/30/95 $648,839 NYC HDC (Scott Tower) 6.6819 1 $3.2083 106.9173 30 $3,862.81
12/15/95 ($910) NYC HDC (Scott Tower) 6.6819 106.9173 16 ($2.89)
11/30/95 $337,680 NYC HDC (Albert Einstein) 6.2987 1 $2.9791 105.3571 30 $1,867.41
11/30/95 NYC HDC (Albert Einstein) principal 30 ($29.07)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/15/95 ($518) NYC HDC (Albert Einstein) 6.5000
11/30/95 $3,295,000 NYC HDC 105.6390 $101.500 7.3750 04/01/17 04/01/98
11/30/95 $3,275,000 NYC HDC (S. Bronx) 109.5030 $102.000 8.1000 09/01/23 09/01/00
11/30/95 $1,500,000 NYC HDC 105.0440 $100.000 6.5500 10/01/15 04/01/05
12/22/95 ($1,500,000) NYC HDC 6.5500
11/30/95 $38,880,000 NYC HDC 103.6520 $100.000 6.6000 04/01/30 04/01/05
11/30/95 $30,000 NYC HDC 116.5740 $100.000 7.3000 06/01/10 06/01/01
11/30/95 $1,145,000 NYC HDC 107.9860 $102.000 7.3500 06/01/19 06/01/01
12/15/95 ($492) NYC HDC (Tri-Faith House) 7.0000
11/30/95 $353,349 NYC HDC (Tri-Faith House) 103.7090 $100.000 7.0000 01/15/19 01/15/19
11/30/95 $450,311 NYC HDC (Washington Sq) 103.9300 $100.000 7.0000 01/15/19 01/15/19
12/15/95 ($627) NYC HDC (Washington Sq) 7.0000
11/30/95 $600,500 NYC HDC (Woodstock Terrace) 104.2120 $100.000 7.0340 02/15/19 02/15/19
12/15/95 ($830) NYC HDC (Woodstock Terrace) 7.0340
11/30/95 $1,626,088 NYC HDC (Goveneur Gardens) 104.2720 $100.000 7.0340 02/15/19 02/15/19
12/15/95 ($2,248) NYC HDC (Goveneur Gardens) 7.0340
12/15/95 ($685) NYC HDC (Strykers Bay) 7.0340
11/30/95 $484,661 NYC HDC (Strykers Bay) 104.1830 $100.000 7.0340 11/15/18 11/15/18
11/30/95 $1,458,343 NYC HDC (Atlantic Plaza) 104.1990 $100.000 7.0340 02/15/19 02/15/19
12/15/95 ($2,016) NYC HDC (Atlantic Plaza) 7.0340
12/15/95 ($689) NYC HDC (Cadman Plaza) 7.0000
11/30/95 $491,271 NYC HDC (Cadman Plaza) 103.7090 $100.000 7.0000 12/15/18 12/15/18
11/30/95 $301,650 NYC HDC (Contello) 103.8080 $100.000 7.0000 12/15/18 12/15/18
12/15/95 ($423) NYC HDC (Contello) 7.0000
11/30/95 NYC HDC (Crown) principal
12/15/95 ($1,908) NYC HDC (Crown) 7.2500
11/30/95 $1,647,707 NYC HDC (Crown) 106.2800 $100.000 7.2500 01/15/19 01/15/19
11/30/95 $3,412,437 NYC HDC (Esplande) 103.9300 $100.000 7.0000 01/15/19 01/15/19
12/15/95 ($4,754) NYC HDC (Esplande) 7.0000
12/15/95 ($1,984) NYC HDC (Lincoln) 7.2500
11/30/95 $1,685,531 NYC HDC (Lincoln) 105.7910 $100.000 7.2500 11/15/18 11/15/18
11/30/95 NYC HDC (Lincoln) principal
12/15/95 ($610) NYC HDC (RNA House) 7.0000
11/30/95 $434,645 NYC HDC (RNA House) 103.9300 $100.000 7.0000 12/15/18 12/15/18
11/30/95 NYC HDC (West Vlg) principal
12/15/95 ($11,293) NYC HDC (West Vlg) 6.5000
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/15/95 ($518) NYC HDC (Albert Einstein) 6.2987 105.3572 16 ($1.53)
11/30/95 $3,295,000 NYC HDC 5.3802 1 $1.2086 106.8476 30 $15,784.75
11/30/95 $3,275,000 NYC HDC (S. Bronx) 6.1300 1 $2.0025 111.5055 30 $18,654.64
11/30/95 $1,500,000 NYC HDC 5.8400 1 $1.0734 106.1174 30 $7,746.58
12/22/95 ($1,500,000) NYC HDC 5.8400 106.1175 9 ($2,323.97)
11/30/95 $38,880,000 NYC HDC 6.0801 1 $1.0816 104.7336 30 $206,320.34
11/30/95 $30,000 NYC HDC 3.9220 1 $3.6297 120.2037 30 $117.86
11/30/95 $1,145,000 NYC HDC 5.9399 1 $3.6545 111.6405 30 $6,327.40
12/15/95 ($492) NYC HDC (Tri-Faith House) 6.6819 106.3340 16 ($1.55)
11/30/95 $353,349 NYC HDC (Tri-Faith House) 6.6819 1 $2.6250 106.3340 30 $2,092.16
11/30/95 $450,311 NYC HDC (Washington Sq) 6.6635 1 $2.6250 106.5550 30 $2,664.45
12/15/95 ($627) NYC HDC (Washington Sq) 6.6635 106.5550 16 ($1.98)
11/30/95 $600,500 NYC HDC (Woodstock Terrace) 6.6734 1 $2.0515 106.2635 30 $3,548.66
12/15/95 ($830) NYC HDC (Woodstock Terrace) 6.6734 106.2636 16 ($2.62)
11/30/95 $1,626,088 NYC HDC (Goveneur Gardens) 6.6684 1 $2.0515 106.3235 30 $9,607.59
12/15/95 ($2,248) NYC HDC (Goveneur Gardens) 6.6684 106.3236 16 ($7.09)
12/15/95 ($685) NYC HDC (Strykers Bay) 6.6750 104.4761 16 ($2.12)
11/30/95 $484,661 NYC HDC (Strykers Bay) 6.6750 1 $0.2930 104.4760 30 $2,816.60
11/30/95 $1,458,343 NYC HDC (Atlantic Plaza) 6.6745 1 $2.0515 106.2505 30 $8,618.44
12/15/95 ($2,016) NYC HDC (Atlantic Plaza) 6.6745 106.2506 16 ($6.36)
12/15/95 ($689) NYC HDC (Cadman Plaza) 6.6819 106.9173 16 ($2.19)
11/30/95 $491,271 NYC HDC (Cadman Plaza) 6.6819 1 $3.2083 106.9173 30 $2,924.75
11/30/95 $301,650 NYC HDC (Contello) 6.6737 1 $3.2083 107.0163 30 $1,795.31
12/15/95 ($423) NYC HDC (Contello) 6.6737 107.0163 16 ($1.34)
11/30/95 NYC HDC (Crown) principal 30 ($12.53)
12/15/95 ($1,908) NYC HDC (Crown) 6.7106 108.9988 16 ($6.20)
11/30/95 $1,647,707 NYC HDC (Crown) 6.7106 1 $2.7187 108.9987 30 $10,043.42
11/30/95 $3,412,437 NYC HDC (Esplande) 6.6635 1 $2.6250 106.5550 30 $20,191.09
12/15/95 ($4,754) NYC HDC (Esplande) 6.6635 106.5550 16 ($15.00)
12/15/95 ($1,984) NYC HDC (Lincoln) 6.7499 106.0931 16 ($6.32)
11/30/95 $1,685,531 NYC HDC (Lincoln) 6.7499 1 $0.3020 106.0930 30 $10,058.66
11/30/95 NYC HDC (Lincoln) principal 30 ($11.41)
12/15/95 ($610) NYC HDC (RNA House) 6.6635 107.1383 16 ($1.94)
11/30/95 $434,645 NYC HDC (RNA House) 6.6635 1 $3.2083 107.1383 30 $2,585.84
11/30/95 NYC HDC (West Vlg) principal 30 ($118.52)
12/15/95 ($11,293) NYC HDC (West Vlg) 6.2726 102.6967 16 ($32.33)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 NYC HDC (West Vlg) principal
11/30/95 $4,996,970 NYC HDC (West Vlg) 102.4260 $100.000 6.5000 11/15/13 11/15/13
11/30/95 NYC HDC (West Vlg) principal
12/15/95 ($5,511) NYC HDC (Clinton) 6.5000
11/30/95 NYC HDC (Clinton)principal
11/30/95 $3,830,610 NYC HDC (Clinton) 102.3350 $100.000 6.5000 08/15/17 08/15/17
12/15/95 ($552) NYC HDC (Towers) 6.5000
11/30/95 $393,477 NYC HDC (Towers) 102.3240 $100.000 6.5000 08/15/17 08/15/17
11/30/95 $2,940,454 NYC HDC (Boulevard) 102.3520 $100.000 6.5000 08/15/17 08/15/17
12/15/95 ($4,137) NYC HDC (Boulevard) 6.5000
11/30/95 NYC HDC (Boulevard) principal
11/30/95 NYC HDC (Cooper Gram) principal
12/15/95 ($2,520) NYC HDC (Cooper Gram) 6.5000
11/30/95 $1,592,083 NYC HDC (Cooper Gram) 102.3240 $100.000 6.5000 08/15/17 08/15/17
12/15/95 ($1,922) NYC HDC (Court) 6.5000
11/30/95 $1,214,749 NYC HDC (Court) 102.3950 $100.000 6.5000 08/15/17 08/15/17
11/30/95 NYC HDC (Kingsbridge) principal
11/30/95 $431,520 NYC HDC (Kingsbridge) 102.3240 $100.000 6.5000 08/15/17 08/15/17
12/15/95 ($605) NYC HDC (Kingsbridge) 6.5000
12/15/95 ($2,279) NYC HDC (University) 6.5000
11/30/95 $1,623,828 NYC HDC (University) 102.3240 $100.000 6.5000 08/15/17 08/15/17
11/30/95 NYC HDC (University) principal
11/30/95 $4,370,108 NYC HDC (Hudsonview) 102.3360 $100.000 6.5000 09/15/17 09/15/17
12/15/95 ($6,085) NYC HDC (Hudsonview) 6.5000
11/30/95 NYC HDC (Hudsonview) principal
11/30/95 NYC HDC (Hudsonview) principal
11/30/95 $1,236,204 NYC HDC (Janel) 102.3520 $100.000 6.5000 09/15/17 09/15/17
12/15/95 ($1,749) NYC HDC (Janel) 6.5000
11/30/95 $387,786 NYC HDC (Heywood) 102.3520 $100.000 6.5000 10/15/17 10/15/17
12/15/95 ($544) NYC HDC (Heywood) 6.5000
11/30/95 $2,897,385 NYC HDC (Montifiore) 102.3520 $100.000 6.5000 08/15/17 08/15/17
12/15/95 ($4,551) NYC HDC (Montifiore) 6.5000
11/30/95 NYC HDC (Montifiore) principal a
11/30/95 NYC HDC (Montifiore) principal b
11/30/95 $116,138 NYC HDC (Westview) 102.3700 $100.000 6.5000 10/15/17 10/15/17
12/15/95 ($181) NYC HDC (Westview) 6.5000
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 NYC HDC (West Vlg) principal 30 ($88.89)
11/30/95 $4,996,970 NYC HDC (West Vlg) 6.2726 1 $0.2708 102.6968 30 $26,824.41
11/30/95 NYC HDC (West Vlg) principal 30 ($223.44)
12/15/95 ($5,511) NYC HDC (Clinton) 6.3001 104.2308 16 ($16.08)
11/30/95 NYC HDC (Clinton)principal 30 ($304.57)
11/30/95 $3,830,610 NYC HDC (Clinton) 6.3001 1 $1.8958 104.2308 30 $20,961.89
12/15/95 ($552) NYC HDC (Towers) 6.3010 104.2198 16 ($1.61)
11/30/95 $393,477 NYC HDC (Towers) 6.3010 1 $1.8958 104.2198 30 $2,153.27
11/30/95 $2,940,454 NYC HDC (Boulevard) 6.2987 1 $1.8958 104.2478 30 $16,089.82
12/15/95 ($4,137) NYC HDC (Boulevard) 6.2987 104.2478 16 ($12.08)
11/30/95 NYC HDC (Boulevard) principal 30 ($191.58)
11/30/95 NYC HDC (Cooper Gram) principal 30 ($139.27)
12/15/95 ($2,520) NYC HDC (Cooper Gram) 6.3010 104.2198 16 ($7.36)
11/30/95 $1,592,083 NYC HDC (Cooper Gram) 6.3010 1 $1.8958 104.2198 30 $8,712.53
12/15/95 ($1,922) NYC HDC (Court) 6.2951 104.2908 16 ($5.61)
11/30/95 $1,214,749 NYC HDC (Court) 6.2951 1 $1.8958 104.2908 30 $6,645.91
11/30/95 NYC HDC (Kingsbridge) principal 30 ($34.43)
11/30/95 $431,520 NYC HDC (Kingsbridge) 6.3010 1 $1.8958 104.2198 30 $2,361.46
12/15/95 ($605) NYC HDC (Kingsbridge) 6.3010 104.2198 16 ($1.77)
12/15/95 ($2,279) NYC HDC (University) 6.3010 104.2198 16 ($6.65)
11/30/95 $1,623,828 NYC HDC (University) 6.3010 1 $1.8958 104.2198 30 $8,886.26
11/30/95 NYC HDC (University) principal 30 ($125.99)
11/30/95 $4,370,108 NYC HDC (Hudsonview) 6.3004 1 $1.3541 103.6901 30 $23,791.22
12/15/95 ($6,085) NYC HDC (Hudsonview) 6.3004 103.6902 16 ($17.67)
11/30/95 NYC HDC (Hudsonview) principal 30 ($272.37)
11/30/95 NYC HDC (Hudsonview) principal 30 ($63.92)
11/30/95 $1,236,204 NYC HDC (Janel) 6.2991 1 $1.3541 103.7061 30 $6,729.64
12/15/95 ($1,749) NYC HDC (Janel) 6.2991 103.7062 16 ($5.08)
11/30/95 $387,786 NYC HDC (Heywood) 6.2997 1 $0.8125 103.1645 30 $2,100.20
12/15/95 ($544) NYC HDC (Heywood) 6.2997 103.1645 16 ($1.57)
11/30/95 $2,897,385 NYC HDC (Montifiore) 6.2987 1 $1.8958 104.2478 30 $15,854.15
12/15/95 ($4,551) NYC HDC (Montifiore) 6.2987 104.2478 16 ($13.28)
11/30/95 NYC HDC (Montifiore) principal a 30 ($204.96)
11/30/95 NYC HDC (Montifiore) principal b 30 ($47.24)
11/30/95 $116,138 NYC HDC (Westview) 6.2982 1 $0.8125 103.1825 30 $628.95
12/15/95 ($181) NYC HDC (Westview) 6.2982 103.1825 16 ($0.52)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 NYC HDC (Westview) principal
11/30/95 $506,518 NYC HDC (Bridgeview) 102.3780 $100.000 6.5000 12/15/17 12/15/17
11/30/95 NYC HDC (Bridgeview) principal
12/15/95 ($777) NYC HDC (Bridgeview) 6.5000
11/30/95 NYC HDC (Forest Park) principal
12/15/95 ($835) NYC HDC (Forest Park) 6.5000
11/30/95 $543,830 NYC HDC (Forest Park) 102.3620 $100.000 6.5000 12/15/17 12/15/17
12/15/95 ($1,120) NYC HDC (Robert Fulton) 6.5000
11/30/95 $729,810 NYC HDC (Robert Fulton) 102.3780 $100.000 6.5000 12/15/17 12/15/17
11/30/95 NYC HDC (Robert Fulton) principal
11/30/95 NYC HDC (Middagh) principal
11/30/95 $221,599 NYC HDC (Middagh) 102.4480 $100.000 6.5000 11/15/18 11/15/18
12/15/95 ($337) NYC HDC (Middagh) 6.5000
12/15/95 ($1,293) NYC HDC (Seaview) 6.5000
11/30/95 $959,500 NYC HDC (Seaview) 102.3140 $100.000 6.5000 01/15/18 01/15/18
12/15/95 ($1,745) NYC HDC (Leader) 6.5000
11/30/95 NYC HDC (Leader) principal
11/30/95 $1,315,985 NYC HDC (Leader) 102.3360 $100.000 6.5000 08/15/18 08/15/18
11/30/95 $1,817,999 NYC HDC (Stevenson) 102.3820 $100.000 6.5000 05/15/18 05/15/18
12/15/95 ($2,372) NYC HDC (Stevenson) 6.5000
12/15/95 ($293) NYC HDC (Candia) 6.5000
11/30/95 $199,709 NYC HDC (Candia) 102.3780 $100.000 6.5000 06/15/18 06/15/18
12/15/95 ($112) NYC HDC (Essex) 6.5000
11/30/95 NYC HDC (Essex) principal
11/30/95 $87,534 NYC HDC (Essex) 102.4400 $100.000 6.5000 07/15/18 07/15/18
11/30/95 NYC HDC (New Amsterdam) principal
12/15/95 ($1,175) NYC HDC (New Amsterdam) 6.5000
11/30/95 $922,838 NYC HDC (New Amsterdam) 102.3950 $100.000 6.5000 08/15/18 08/15/18
11/30/95 $1,356,598 NYC HDC (Cadman) 102.4220 $100.000 6.5000 11/15/18 11/15/18
12/15/95 ($1,918) NYC HDC (Cadman) 6.5000
11/30/95 NYC HDC (Kingsarms) principal
12/15/95 ($346) NYC HDC (Kingsarms) 6.5000
11/30/95 $244,862 NYC HDC (Kingsarms) 102.4400 $100.000 6.5000 11/15/18 11/15/18
12/15/95 ($1,631) NYC HDC (Riverbend) 6.5000
11/30/95 $1,153,432 NYC HDC (Riverbend) 102.4400 $100.000 6.5000 11/15/18 11/15/18
11/30/95 NYC HDC (Sky View) principal
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 NYC HDC (Westview) principal 30 ($6.28)
11/30/95 $506,518 NYC HDC (Bridgeview) 6.2987 1 $2.9791 105.3571 30 $2,801.10
11/30/95 NYC HDC (Bridgeview) principal 30 ($43.60)
12/15/95 ($777) NYC HDC (Bridgeview) 6.2987 105.3572 16 ($2.29)
11/30/95 NYC HDC (Forest Park) principal 30 ($46.81)
12/15/95 ($835) NYC HDC (Forest Park) 6.3000 105.3412 16 ($2.46)
11/30/95 $543,830 NYC HDC (Forest Park) 6.3000 1 $2.9791 105.3411 30 $3,007.61
12/15/95 ($1,120) NYC HDC (Robert Fulton) 6.2987 105.3572 16 ($3.31)
11/30/95 $729,810 NYC HDC (Robert Fulton) 6.2987 1 $2.9791 105.3571 30 $4,035.93
11/30/95 NYC HDC (Robert Fulton) principal 30 ($62.82)
11/30/95 NYC HDC (Middagh) principal 30 ($18.93)
11/30/95 $221,599 NYC HDC (Middagh) 6.2966 1 $0.2708 102.7188 30 $1,194.38
12/15/95 ($337) NYC HDC (Middagh) 6.2966 102.7188 16 ($0.97)
12/15/95 ($1,293) NYC HDC (Seaview) 6.3038 104.7515 16 ($3.80)
11/30/95 $959,500 NYC HDC (Seaview) 6.3038 1 $2.4375 104.7515 30 $5,279.91
12/15/95 ($1,745) NYC HDC (Leader) 6.3041 104.2318 16 ($5.10)
11/30/95 NYC HDC (Leader) principal 30 ($63.14)
11/30/95 $1,315,985 NYC HDC (Leader) 6.3041 1 $1.8958 104.2318 30 $7,205.98
11/30/95 $1,817,999 NYC HDC (Stevenson) 6.3000 1 $0.2708 102.6528 30 $9,797.70
12/15/95 ($2,372) NYC HDC (Stevenson) 6.3000 102.6528 16 ($6.82)
12/15/95 ($293) NYC HDC (Candia) 6.3007 105.3572 16 ($0.86)
11/30/95 $199,709 NYC HDC (Candia) 6.3007 1 $2.9791 105.3571 30 $1,104.76
12/15/95 ($112) NYC HDC (Essex) 6.2955 104.8775 16 ($0.33)
11/30/95 NYC HDC (Essex) principal 30 ($4.00)
11/30/95 $87,534 NYC HDC (Essex) 6.2955 1 $2.4375 104.8775 30 $481.63
11/30/95 NYC HDC (New Amsterdam) principal 30 ($64.97)
12/15/95 ($1,175) NYC HDC (New Amsterdam) 6.2993 104.2908 16 ($3.43)
11/30/95 $922,838 NYC HDC (New Amsterdam) 6.2993 1 $1.8958 104.2908 30 $5,052.23
11/30/95 $1,356,598 NYC HDC (Cadman) 6.2987 1 $0.2708 102.6928 30 $7,312.42
12/15/95 ($1,918) NYC HDC (Cadman) 6.2987 102.6928 16 ($5.51)
11/30/95 NYC HDC (Kingsarms) principal 30 ($19.38)
12/15/95 ($346) NYC HDC (Kingsarms) 6.2973 102.7108 16 ($1.00)
11/30/95 $244,862 NYC HDC (Kingsarms) 6.2973 1 $0.2708 102.7108 30 $1,319.81
12/15/95 ($1,631) NYC HDC (Riverbend) 6.2973 102.7108 16 ($4.69)
11/30/95 $1,153,432 NYC HDC (Riverbend) 6.2973 1 $0.2708 102.7108 30 $6,217.01
11/30/95 NYC HDC (Sky View) principal 30 ($98.27)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,790,450 NYC HDC (Sky View) 102.4400 $100.000 6.5000 11/15/18 11/15/18
12/15/95 ($2,530) NYC HDC (Sky View) 6.5000
12/15/95 ($561) NYC HDC (St. Martin) 6.5000
11/30/95 NYC HDC (St. Martin) principal
11/30/95 $396,807 NYC HDC (St. Martin) 102.4400 $100.000 6.5000 11/15/18 11/15/18
11/30/95 $439,014 NYC HDC (West Side) 102.3700 $100.000 6.5000 11/15/18 11/15/18
12/15/95 ($620) NYC HDC (West Side) 6.5000
11/30/95 NYC HDC (West Side) principal
12/15/95 ($2,461) NYC HDC (Tivoli) 6.5000
11/30/95 $1,826,292 NYC HDC (Tivoli) 102.3140 $100.000 6.5000 01/15/18 01/15/18
11/30/95 $248,080 NYC HDC (Townhouse) 102.4400 $100.000 6.5000 11/15/18 11/15/18
11/30/95 NYC HDC (Townhouse) principal
12/15/95 ($334) NYC HDC (Townhouse) 6.5000
12/15/95 ($1,201) NYC HDC (Amsterdam) 6.5000
11/30/95 $943,345 NYC HDC (Amsterdam) 102.4640 $100.000 6.5000 08/15/18 08/15/18
11/30/95 NYC HDC (Riverside) principal
12/15/95 ($1,631) NYC HDC (Riverside) 7.2500
11/30/95 $6,345,631 NYC HDC (Riverside) 105.9620 $100.000 7.2500 11/15/18 11/15/18
11/30/95 $34,794 NYC HDC (RNA House) 104.1113 $100.000 7.0000 12/15/18 12/15/18
12/15/95 ($48) NYC HDC (RNA House) 7.0000
11/30/95 $8,045,000 NYC HDC 99.7120 $100.000 5.8500 05/01/26 05/01/26
12/21/95 ($8,045,000) NYC HDC 5.8500
11/30/95 $6,135,000 NYC IDA (Nekboh) 112.7000 $102.000 9.6250 05/01/11 05/01/01
11/30/95 $485,000 NYC IDA (Sequins Int'l) 105.6940 $100.000 8.5000 04/30/00 04/30/00
11/30/95 $4,555,000 NYC IDA (Sequins Int'l) 114.4610 $103.000 8.9499 01/30/16 01/30/01
11/30/95 $400,000 NYC IDA (Hi Tech) 110.3580 $100.000 8.7500 08/01/00 08/01/00
11/30/95 $365,000 NYC IDA (Ultimate Display) 107.1900 $100.000 8.7500 10/15/00 10/15/00
11/30/95 $695,000 NYC IDA (Hi Tech) 109.6500 $102.000 9.2500 08/01/08 08/01/01
11/30/95 $1,910,000 NYC IDA (Ultimate Display) 108.9520 $102.000 9.0000 10/15/11 10/15/01
11/30/95 $565,000 NYC IDA (House of Spices) 108.1390 $100.000 9.0000 10/15/01 10/15/01
11/30/95 $2,140,000 NYC IDA (House of Spices) 110.6310 $100.000 9.2500 10/15/11 10/15/03
11/30/95 $1,365,000 NYC IDA (POP Display) 102.9720 $100.000 6.7500 12/15/04 12/15/04
12/15/95 ($105,000) NYC IDA (POP Display) 6.7500
11/30/95 $2,645,000 NYC IDA (POP Display) 109.5530 $100.000 7.9000 12/15/14 12/15/14
11/30/95 $1,420,000 NYC IDA (NY Hostel) 102.8010 $100.000 6.7500 01/01/04 01/01/04
11/30/95 $4,400,000 NYC IDA (NY Hostel) 109.1660 $100.000 7.6000 01/01/17 01/01/17
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,790,450 NYC HDC (Sky View) 6.2973 1 $0.2708 102.7108 30 $9,650.54
12/15/95 ($2,530) NYC HDC (Sky View) 6.2973 102.7108 16 ($7.28)
12/15/95 ($561) NYC HDC (St. Martin) 6.2973 102.7108 16 ($1.61)
11/30/95 NYC HDC (St. Martin) principal 30 ($31.45)
11/30/95 $396,807 NYC HDC (St. Martin) 6.2973 1 $0.2708 102.7108 30 $2,138.79
11/30/95 $439,014 NYC HDC (West Side) 6.3030 1 $0.2708 102.6408 30 $2,366.82
12/15/95 ($620) NYC HDC (West Side) 6.3030 102.6408 16 ($1.79)
11/30/95 NYC HDC (West Side) principal 30 ($34.80)
12/15/95 ($2,461) NYC HDC (Tivoli) 6.3038 104.7515 16 ($7.23)
11/30/95 $1,826,292 NYC HDC (Tivoli) 6.3038 1 $2.4375 104.7515 30 $10,049.67
11/30/95 $248,080 NYC HDC (Townhouse) 6.2973 1 $0.2708 102.7108 30 $1,337.15
11/30/95 NYC HDC (Townhouse) principal 30 ($18.75)
12/15/95 ($334) NYC HDC (Townhouse) 6.2973 102.7108 16 ($0.96)
12/15/95 ($1,201) NYC HDC (Amsterdam) 6.2936 104.3598 16 ($3.51)
11/30/95 $943,345 NYC HDC (Amsterdam) 6.2936 1 $1.8958 104.3598 30 $5,163.24
11/30/95 NYC HDC (Riverside) principal 30 ($57.21)
12/15/95 ($1,631) NYC HDC (Riverside) 6.7357 106.2641 16 ($5.19)
11/30/95 $6,345,631 NYC HDC (Riverside) 6.7357 1 $0.3020 106.2640 30 $37,849.74
11/30/95 $34,794 NYC HDC (RNA House) 6.6485 1 $3.2083 107.3196 30 $206.89
12/15/95 ($48) NYC HDC (RNA House) 6.6485 107.3196 16 ($0.15)
11/30/95 $8,045,000 NYC HDC 5.8700 0 $0.4712 100.1832 30 $39,219.38
12/21/95 ($8,045,000) NYC HDC 5.8700 100.1833 10 ($13,073.13)
11/30/95 $6,135,000 NYC IDA (Nekboh) 7.0701 1 $0.7753 113.4753 30 $41,016.67
11/30/95 $485,000 NYC IDA (Sequins Int'l) 6.9771 1 $0.7083 106.4023 30 $3,000.45
11/30/95 $4,555,000 NYC IDA (Sequins Int'l) 6.1401 1 $2.9833 117.4443 30 $27,372.51
11/30/95 $400,000 NYC IDA (Hi Tech) 6.1600 1 $2.8923 113.2503 30 $2,325.41
11/30/95 $365,000 NYC IDA (Ultimate Display) 6.9812 1 $1.0937 108.2837 30 $2,299.35
11/30/95 $695,000 NYC IDA (Hi Tech) 7.4199 1 $3.0576 112.7076 30 $4,843.45
11/30/95 $1,910,000 NYC IDA (Ultimate Display) 7.3701 1 $1.1250 110.0770 30 $12,912.85
11/30/95 $565,000 NYC IDA (House of Spices) 7.2699 1 $1.1250 109.2640 30 $3,740.01
11/30/95 $2,140,000 NYC IDA (House of Spices) 7.4393 1 $1.1562 111.7872 30 $14,830.54
11/30/95 $1,365,000 NYC IDA (POP Display) 6.3130 1 $3.0937 106.0657 30 $7,616.62
12/15/95 ($105,000) NYC IDA (POP Display) 7.4393 111.7873 16 ($388.09)
11/30/95 $2,645,000 NYC IDA (POP Display) 6.9848 1 $3.6208 113.1738 30 $17,423.86
11/30/95 $1,420,000 NYC IDA (NY Hostel) 6.3014 1 $2.7937 105.5947 30 $7,873.84
11/30/95 $4,400,000 NYC IDA (NY Hostel) 6.7762 1 $3.1455 112.3115 30 $27,905.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,035,000 NYC IDA (ALA Realty) 101.6700 $100.000 7.5000 12/01/10 12/01/10
11/30/95 $1,450,000 NYC IDA (ALA Realty) 101.9790 $100.000 8.3750 12/01/15 12/01/15
12/20/95 $1,675,000 NYC IDA (Keonig MFG) 100.0000 $100.000 8.3750 12/01/15 12/01/15
12/29/95 $530,000 NYC IDA (Amster Novelty) 100.0000 $100.000 8.0000 12/01/10 12/01/10
12/29/95 $790,000 NYC IDA (Amster Novelty) 100.0000 $100.000 8.3750 12/01/15 12/01/15
12/28/95 $710,000 NYC IDA (Promo Slideguide) 100.0000 $100.000 7.5000 12/01/10 12/01/10
12/28/95 $1,065,000 NYC IDA (Promo Slideguide) 100.0000 $100.000 7.8750 12/01/15 12/01/15
11/30/95 $780,000 NYC IDA (pscho therapy) 110.8620 $102.000 9.6250 04/01/10 04/01/00
11/30/95 $1,000,000 NYC IDA (Fund For NY Project) 107.2410 $102.000 7.6250 07/01/10 07/01/00
11/30/95 $2,335,000 NYC IDA (Hebrew Academy) 113.9690 $102.000 10.0000 03/01/21 03/01/01
11/30/95 $4,100,000 NYC IDA (St. Christopher Ottilie) 106.5890 $102.000 7.5000 07/01/21 07/01/01
11/30/95 $815,000 NYC IDA (PR Fam Fndtn) 107.4460 $100.000 7.0000 10/01/16 10/01/16
11/30/95 $260,000 NYC IDA (Brooklyn Heighst Montes) 110.4860 $100.000 8.4000 09/01/02 09/01/98
11/30/95 $660,000 NYC IDA (Brooklyn Heighst Montes) 109.7930 $102.000 8.9000 09/01/11 09/01/02
11/30/95 $1,690,000 NYC IDA (Brooklyn Heighst Montes) 112.0320 $104.000 9.1999 09/01/21 09/01/02
11/30/95 $1,000,000 NYC IDA (Lighthouse) 104.1950 $100.000 6.5000 07/01/22 07/01/22
11/30/95 $500,000 NYC IDA (Blood Bank) 117.2030 $100.000 7.2000 05/01/12 05/01/12
11/30/95 $3,000,000 NYC IDA (Blood Center) 117.4810 $100.000 7.2500 05/01/22 05/01/22
11/30/95 $6,040,000 NYC IDA (Jewish Bd F&C Serv) 103.9700 $100.000 6.7500 12/15/12 12/15/12
11/30/95 $3,435,000 NYC IDA (OHEL) 103.1160 $102.000 8.2500 03/15/23 03/15/03
11/30/95 $1,305,000 NYC IDA (Graphic Artists) 107.3610 $100.000 8.2500 12/30/23 12/30/23
12/30/95 ($10,000) NYC IDA (Graphic Artists) 8.2500
11/30/95 $3,700,000 NYC IDA (Marymount Manhatten College) 105.0530 $100.000 7.0000 07/01/23 07/01/23
11/30/95 $490,000 NYC IDA (EDEN II) 106.0300 $100.000 7.7500 06/01/04 06/01/04
11/30/95 $2,505,000 NYC IDA (EDEN II) 108.6920 $100.000 8.7500 06/01/19 06/01/19
11/30/95 $205,000 NYC IDA (SUMMIT SCHOOL) 102.5260 $100.000 7.2500 12/01/04 12/01/04
11/30/95 $1,485,000 NYC IDA (SUMMIT SCHOOL) 107.3350 $100.000 8.2500 12/01/24 12/01/24
12/26/95 $500,000 NYC IDA (U.N. School) 100.0000 $100.000 6.3500 12/01/15 12/01/15
11/30/95 $10,355,000 NYC IDA (Elmhurst Parking Lease) 110.1950 $100.000 7.5000 07/30/03 07/30/03
11/30/95 $2,100,000 NYC IDA (Display Creations) 106.3830 $100.000 9.2500 06/01/08 06/01/97
12/28/95 $4,000,000 NYC IDA (Visy Paper Project) 100.0000 $100.000 7.9500 01/01/28 01/01/28
11/30/95 $226,564 NYC IDA (Penguin Air) 110.7410 $100.000 12.2220 12/01/99 12/01/99
11/30/95 NYC IDA (Penguin Air) principal paydown
11/30/95 $1,795,000 NYC IDA (American Air) 107.1950 $102.000 7.7500 07/01/19 01/01/99
11/30/95 $7,110,000 NYC IDA (American Air) 108.0400 $101.000 8.0000 07/01/20 01/01/00
12/01/95 $5,000,000 NYC IDA (TOGA) 99.6610 $100.000 6.1250 01/01/24 01/01/24
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,035,000 NYC IDA (ALA Realty) 7.3148 1 $3.7291 105.3991 30 $6,649.65
11/30/95 $1,450,000 NYC IDA (ALA Realty) 8.1724 1 $4.1642 106.1432 30 $10,481.63
12/20/95 $1,675,000 NYC IDA (Keonig MFG) 8.3742 0 $0.4420 100.4420 11 $4,286.37
12/29/95 $530,000 NYC IDA (Amster Novelty) 7.9988 0 $0.6222 100.6222 2 $235.56
12/29/95 $790,000 NYC IDA (Amster Novelty) 8.3737 0 $0.6513 100.6513 2 $367.57
12/28/95 $710,000 NYC IDA (Promo Slideguide) 7.4990 0 $0.5625 100.5625 3 $443.75
12/28/95 $1,065,000 NYC IDA (Promo Slideguide) 7.8740 0 $0.5906 100.5906 3 $698.91
11/30/95 $780,000 NYC IDA (pscho therapy) 7.0699 1 $1.5774 112.4394 30 $5,167.08
11/30/95 $1,000,000 NYC IDA (Fund For NY Project) 6.1700 1 $3.1559 110.3969 30 $5,676.24
11/30/95 $2,335,000 NYC IDA (Hebrew Academy) 7.0848 1 $2.4722 116.4412 30 $16,052.40
11/30/95 $4,100,000 NYC IDA (St. Christopher Ottilie) 6.3811 1 $3.1041 109.6931 30 $23,915.40
11/30/95 $815,000 NYC IDA (PR Fam Fndtn) 6.3496 1 $1.1472 108.5932 30 $4,683.01
11/30/95 $260,000 NYC IDA (Brooklyn Heighst Montes) 4.3148 1 $2.0766 112.5626 30 $1,052.32
11/30/95 $660,000 NYC IDA (Brooklyn Heighst Montes) 7.2700 1 $2.2002 111.9932 30 $4,478.05
11/30/95 $1,690,000 NYC IDA (Brooklyn Heighst Montes) 7.3700 1 $2.2744 114.3064 30 $11,864.34
11/30/95 $1,000,000 NYC IDA (Lighthouse) 6.1762 1 $2.6902 106.8852 30 $5,501.21
11/30/95 $500,000 NYC IDA (Blood Bank) 5.5852 1 $0.5800 117.7830 30 $2,741.01
11/30/95 $3,000,000 NYC IDA (Blood Center) 5.9312 1 $0.5840 118.0650 30 $17,506.68
11/30/95 $6,040,000 NYC IDA (Jewish Bd F&C Serv) 6.3646 1 $3.0937 107.0637 30 $34,298.04
11/30/95 $3,435,000 NYC IDA (OHEL) 7.8846 1 $1.7187 104.8347 30 $23,660.85
11/30/95 $1,305,000 NYC IDA (Graphic Artists) 7.6105 1 $3.4375 110.7985 30 $9,170.15
12/30/95 ($10,000) NYC IDA (Graphic Artists) 7.6105 110.7985 1 ($2.34)
11/30/95 $3,700,000 NYC IDA (Marymount Manhatten College) 6.5992 1 $2.8972 107.9502 30 $21,965.21
11/30/95 $490,000 NYC IDA (EDEN II) 6.8043 1 $3.8534 109.8834 30 $3,053.03
11/30/95 $2,505,000 NYC IDA (EDEN II) 7.9287 1 $4.3506 113.0426 30 $18,709.88
11/30/95 $205,000 NYC IDA (SUMMIT SCHOOL) 6.8691 1 $3.6048 106.1308 30 $1,245.42
11/30/95 $1,485,000 NYC IDA (SUMMIT SCHOOL) 7.6190 1 $4.1020 111.4370 30 $10,506.86
12/26/95 $500,000 NYC IDA (U.N. School) 6.3495 0 $0.4409 100.4409 5 $440.97
11/30/95 $10,355,000 NYC IDA (Elmhurst Parking Lease) 5.8300 1 $2.5000 112.6950 30 $56,694.65
11/30/95 $2,100,000 NYC IDA (Display Creations) 4.7967 1 $4.5993 110.9823 30 $9,316.10
12/28/95 $4,000,000 NYC IDA (Visy Paper Project) 7.9499 0 $3.9087 103.9087 3 $2,650.00
11/30/95 $226,564 NYC IDA (Penguin Air) 8.9689 1 $6.0770 116.8180 30 $1,978.15
11/30/95 NYC IDA (Penguin Air) principal paydown 30 ($181.88)
11/30/95 $1,795,000 NYC IDA (American Air) 5.7700 1 $3.2076 110.4026 30 $9,528.80
11/30/95 $7,110,000 NYC IDA (American Air) 5.9709 1 $3.3111 111.3511 30 $39,393.33
12/01/95 $5,000,000 NYC IDA (TOGA) 6.1500 0 $2.5520 102.2130 30 $25,520.83
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $4,500,000 NYC IDA (TOGA) 100.2560 $100.000 6.0000 01/01/19 01/01/19
12/26/95 ($5,000,000) NYC IDA (American Air) 6.9000
11/30/95 $19,185,000 NYC IDA (American Air) 107.7420 $100.000 6.9000 08/01/24 08/01/06
11/30/95 $745,000 NYC IDA (Loehmann's) 102.1580 $102.000 9.5000 12/31/04 12/31/95
11/30/95 $1,855,000 NYC IDA (Priority Mailers) 108.7970 $100.000 9.0000 03/01/10 03/01/01
11/30/95 $250,000 NYS Cert of Partic (Hanson) 109.1890 $100.000 8.2500 11/01/01 05/01/98
11/30/95 $70,000 NYS Cert of Partic (J. Jay College) 103.7710 $100.000 7.2500 08/15/07 08/15/00
11/30/95 $250,000 NYS Dorm (Brookhaven) 101.8230 $101.000 8.6999 07/01/06 07/01/96
11/30/95 $885,000 NYS Dorm (Cornwall hosp) 99.9850 $100.000 8.7500 07/01/07 07/01/07
11/30/95 $90,000 NYS Dorm (Health) 106.5810 $102.000 7.3500 08/01/29 02/01/00
11/30/95 $95,000 NYS Dorm (Episcopal) 109.8190 $102.000 7.5500 08/01/29 02/01/00
11/30/95 $100,000 NYS Dorm (Montifiore) 102.2000 $100.000 8.6250 07/01/10 07/01/10
11/30/95 $1,170,000 NYS Dorm (Manh EE&T) 102.5000 $100.000 11.5000 07/01/09 07/01/96
11/30/95 $2,270,000 NYS Dorm (Crouse Irving) 102.8400 $101.000 10.5000 07/01/17 07/01/96
11/30/95 $50,000 NYS Dorm (State U) 7.400 53.4050 $100.000 0.0000 05/15/07 05/15/07
11/30/95 $25,000 NYS Dorm (KMH Homes) 116.6900 $100.000 6.9500 08/01/31 08/01/03
11/30/95 $165,000 NYS Dorm (State U) 107.2800 $100.000 7.0000 05/15/16 05/15/02
11/30/95 $3,750,000 NYS Dorm (Dept of Health) 109.1640 $100.000 7.2500 07/01/11 07/14/01
11/30/95 $425,000 NYS Dorm (City U) 116.6050 $102.000 7.8750 07/01/17 07/01/00
11/30/95 $2,000,000 NYS Dorm (Upstate CC) 115.6800 $100.000 7.3000 07/01/21 07/01/03
12/11/95 ($2,000,000) NYS Dorm (Upstate CC) 7.3000
11/30/95 $31,550,000 NYS Dorm (Judicials) 116.6900 $116.082 9.5000 04/15/14 04/15/96
11/30/95 $2,200,000 NYS Dorm (Presbyterian) 105.7870 $100.000 6.5000 08/01/34 08/01/06
11/30/95 $12,750,000 NYS Dorm (Rochester General) RITES 92.1250 $100.000 7.2580 08/15/33 08/15/33
11/30/95 $250,000 NYS Dorm (Dept of Health) 105.2870 $100.000 6.6250 07/01/24 07/01/24
11/30/95 $670,000 NYS ERDA (Con ED) 104.4170 $102.000 7.5000 11/15/24 11/15/96
12/26/95 $45,000 NYS ERDA (Con ED) 104.2690 $102.000 7.5000 11/15/24 11/15/96
11/30/95 $245,000 NYS ERDA (Con ED) 104.7240 $102.000 7.1250 03/15/22 03/15/97
11/30/95 $4,000,000 NYS ERDA (Con ED) 107.2040 $100.000 7.7500 01/01/24 01/01/00
11/30/95 $20,500,000 NYS ERDA (Con ED) 107.1470 $100.000 7.3750 07/01/24 07/01/00
11/30/95 $8,485,000 NYS ERDA (Con ED) 106.9860 $100.000 7.2500 11/01/24 11/01/00
11/30/95 $25,000 NYS ERDA (Con ED) 109.2210 $101.000 7.5000 07/01/25 07/01/99
12/05/95 ($1,000,000) NYS Energy R&D (LI Light) 7.1500
11/30/95 $18,540,000 NYS Energy R&D (LI Light) 102.7890 $100.000 7.1500 09/01/19 09/01/19
11/30/95 $15,000,000 NYS Energy R&D (LI Light) 102.7900 $100.000 7.1500 09/01/19 09/01/19
11/30/95 $5,000,000 NYS Energy R&D (LI Light) 102.8390 $100.000 7.1500 09/01/20 09/01/20
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $4,500,000 NYC IDA (TOGA) 5.9789 1 $2.4833 102.7393 30 $23,035.06
12/26/95 ($5,000,000) NYC IDA (American Air) 5.9100 110.0228 5 ($4,515.52)
11/30/95 $19,185,000 NYC IDA (American Air) 5.9100 1 $2.2808 110.0228 30 $103,956.31
11/30/95 $745,000 NYC IDA (Loehmann's) 7.1657 1 $3.9583 106.1163 30 $4,720.80
11/30/95 $1,855,000 NYC IDA (Priority Mailers) 6.9670 1 $2.2250 111.0220 30 $11,956.87
11/30/95 $250,000 NYS Cert of Partic (Hanson) 4.2128 1 $0.6645 109.8535 30 $964.15
11/30/95 $70,000 NYS Cert of Partic (J. Jay College) 6.3084 1 $2.1145 105.8855 30 $389.65
11/30/95 $250,000 NYS Dorm (Brookhaven) 7.1504 1 $3.6008 105.4238 30 $1,570.46
11/30/95 $885,000 NYS Dorm (Cornwall hosp) 8.7502 0 $3.6215 103.6065 30 $6,453.13
11/30/95 $90,000 NYS Dorm (Health) 5.9699 1 $2.4295 109.0105 30 $488.09
11/30/95 $95,000 NYS Dorm (Episcopal) 5.3246 1 $2.4956 112.3146 30 $473.44
11/30/95 $100,000 NYS Dorm (Montifiore) 8.3597 1 $3.5697 105.7697 30 $736.84
11/30/95 $1,170,000 NYS Dorm (Manh EE&T) 7.0460 1 $4.7597 107.2597 30 $7,368.58
11/30/95 $2,270,000 NYS Dorm (Crouse Irving) 7.1439 1 $4.3458 107.1858 30 $14,484.96
11/30/95 $50,000 NYS Dorm (State U) 5.5499 1 $0.0000 53.4050 30 $123.50
11/30/95 $25,000 NYS Dorm (KMH Homes) 4.3646 1 $2.2973 118.9873 30 $108.19
11/30/95 $165,000 NYS Dorm (State U) 5.6388 1 $0.2916 107.5716 30 $834.04
11/30/95 $3,750,000 NYS Dorm (Dept of Health) 5.3398 1 $2.7388 111.9028 30 $18,673.10
11/30/95 $425,000 NYS Dorm (City U) 4.2499 1 $3.2593 119.8643 30 $1,804.17
11/30/95 $2,000,000 NYS Dorm (Upstate CC) 4.8078 1 $3.0213 118.7013 30 $9,511.54
12/11/95 ($2,000,000) NYS Dorm (Upstate CC) 4.8078 118.7014 20 ($6,341.03)
11/30/95 $31,550,000 NYS Dorm (Judicials) 6.6838 1 $1.1875 117.8775 30 $207,144.06
11/30/95 $2,200,000 NYS Dorm (Presbyterian) 5.7650 1 $2.1486 107.9356 30 $11,407.89
11/30/95 $12,750,000 NYS Dorm (Rochester General) RITES 7.9152 0 $2.1169 94.2419 30 $77,116.25
11/30/95 $250,000 NYS Dorm (Dept of Health) 6.2263 1 $2.7420 108.0290 30 $1,401.29
11/30/95 $670,000 NYS ERDA (Con ED) 4.7901 1 $0.3125 104.7295 30 $2,800.96
12/26/95 $45,000 NYS ERDA (Con ED) 4.7508 1 $0.8541 105.1231 5 $31.21
11/30/95 $245,000 NYS ERDA (Con ED) 4.8198 1 $1.4843 106.2083 30 $1,045.14
11/30/95 $4,000,000 NYS ERDA (Con ED) 5.7447 1 $3.2076 110.4116 30 $21,142.72
11/30/95 $20,500,000 NYS ERDA (Con ED) 5.5851 1 $3.0524 110.1994 30 $105,143.62
11/30/95 $8,485,000 NYS ERDA (Con ED) 5.6039 1 $0.5840 107.5700 30 $42,623.81
11/30/95 $25,000 NYS ERDA (Con ED) 4.9201 1 $3.1041 112.3251 30 $115.14
12/05/95 ($1,000,000) NYS Energy R&D (LI Light) 6.9081 104.5566 26 ($5,216.52)
11/30/95 $18,540,000 NYS Energy R&D (LI Light) 6.9081 1 $1.7676 104.5566 30 $111,593.45
11/30/95 $15,000,000 NYS Energy R&D (LI Light) 6.9080 1 $1.7676 104.5576 30 $90,285.52
11/30/95 $5,000,000 NYS Energy R&D (LI Light) 6.9077 1 $1.7676 104.6066 30 $30,107.97
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $7,000,000 NYS Energy R&D (LI Light) 102.8620 $100.000 7.1500 12/01/20 12/01/20
11/30/95 $15,920,000 NYS Energy R&D (LI Light) 102.8970 $100.000 7.1500 02/01/22 02/01/22
11/30/95 $2,000,000 NYS Energy R&D (LI Light) 102.8970 $100.000 7.1500 02/01/22 02/01/22
11/30/95 $5,440,000 NYS Energy R&D (LILCO) 101.8860 $100.000 6.9000 08/01/22 08/01/22
11/30/95 $175,000 NYS ERDA (BUG) 102.4000 $101.500 9.0000 05/15/15 05/15/96
11/30/95 $315,000 NYS ERDA (BUG) 102.3790 $101.500 8.7500 07/01/15 07/01/96
12/06/95 $45,000 NYS ERDA (BUG) 103.0500 $101.500 8.7500 07/01/15 07/01/96
11/30/95 $100,000 NYS ERDA (BUG) 104.1970 $102.000 7.1250 12/01/20 12/01/96
11/30/95 $10,300,000 NYS ERDA (Brooklyn RIBS) 121.7500 $100.000 9.6259 07/01/26 07/01/01
11/30/95 $7,000,000 NYS ERDA (BUG) RIBS 111.2500 $100.000 8.5390 04/01/20 04/01/20
11/30/95 $3,000,000 NYS ERDA (BUG) RIBS 97.2500 $100.000 7.1540 07/08/26 07/08/26
11/30/95 $11,950,000 NYS ERDA (NIMO) 103.0000 $101.000 8.8750 11/01/25 11/01/96
11/30/95 $95,000 NYS ERDA (RG & E) 109.9370 $102.000 8.3750 12/01/28 12/01/98
11/30/95 $1,920,000 NYS ERDA (LILCO) 102.6020 $100.000 6.0000 03/15/28 03/15/28
11/30/95 $500,000 NYS Environ (LI Water)AMT 110.8000 $102.000 10.0000 10/01/17 10/01/97
11/30/95 $7,500,000 NYS Environ (NYS Water) 111.8820 $103.000 8.3750 01/15/20 01/15/00
11/30/95 $1,970,000 NYS Environ Fac (Jamaica Water) 105.2380 $100.000 11.0000 08/01/03 08/01/02
11/30/95 $1,840,000 NYS Environ (Water) 107.6960 $100.000 7.1500 11/01/14 11/01/06
11/30/95 $1,385,000 NYS HFA (Shorehill) 104.0000 $100.000 7.5000 05/01/08 11/01/02
11/30/95 $5,000 NYS HFA 98.0000 $100.000 6.4000 11/01/10 11/01/10
11/30/95 $25,000 NYS HFA 99.0000 $100.000 6.4000 11/01/13 11/01/13
11/30/95 $20,000 NYS HFA 101.5000 $100.000 6.6000 11/01/08 11/01/08
11/30/95 $20,000 NYS HFA 99.8000 $100.000 6.6000 11/01/13 11/01/13
11/30/95 $9,000 NYS HFA 102.0000 $100.000 6.8750 11/01/10 11/01/10
11/30/95 $5,000 NYS HFA 102.0000 $101.000 6.8750 11/01/11 11/01/98
11/30/95 $25,000 NYS HFA (NON-PROFIT) 101.2000 $100.000 6.6000 11/01/10 11/01/10
11/30/95 $2,640,000 NYS HFA (Pepper Tree) 101.8000 $100.000 7.7500 11/01/09 11/01/09
11/30/95 $425,000 NYS HFA (SE Tower) 103.0000 $100.000 7.7500 11/01/18 11/01/98
12/19/95 $30,000 NYS HFA 102.8500 $101.000 7.0000 11/01/17 11/01/97
12/27/95 $5,000 NYS HFA 102.4000 $101.000 7.0000 11/01/17 11/01/97
11/30/95 $500,000 NYS HFA 102.0160 $101.000 7.0000 11/01/17 11/01/97
11/30/95 $3,620,000 NYS HFA (HENRY PHIPPS) 103.2000 $100.000 8.0000 05/01/18 05/01/98
11/30/95 $5,000 NYS HFA 101.0000 $100.000 8.0000 05/01/16 11/01/96
12/18/95 $145,000 NYS HFA (Baptist Manor) 103.4000 $101.000 8.0000 05/01/19 05/01/96
11/30/95 $5,000 NYS HFA (Baptist Manor) 101.7800 $101.000 8.0000 05/01/19 05/01/96
11/30/95 $1,375,000 NYS HFA (Clinton Plaza) 108.0080 $102.000 7.6250 11/01/19 11/01/98
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $7,000,000 NYS Energy R&D (LI Light) 6.9080 1 $3.5551 106.4171 30 $42,882.56
11/30/95 $15,920,000 NYS Energy R&D (LI Light) 6.9080 1 $2.3634 105.2604 30 $96,467.14
11/30/95 $2,000,000 NYS Energy R&D (LI Light) 6.9080 1 $2.3634 105.2604 30 $12,118.99
11/30/95 $5,440,000 NYS Energy R&D (LILCO) 6.7456 1 $2.2808 104.1668 30 $31,854.27
11/30/95 $175,000 NYS ERDA (BUG) 6.8464 1 $0.3750 102.7750 30 $1,026.14
11/30/95 $315,000 NYS ERDA (BUG) 7.0674 1 $3.6215 106.0005 30 $1,966.51
12/06/95 $45,000 NYS ERDA (BUG) 5.8417 1 $3.7673 106.8173 25 $195.00
11/30/95 $100,000 NYS ERDA (BUG) 4.7600 1 $3.5427 107.7397 30 $427.37
11/30/95 $10,300,000 NYS ERDA (Brooklyn RIBS) 5.1005 1 $3.9840 125.7340 30 $55,045.50
11/30/95 $7,000,000 NYS ERDA (BUG) RIBS 7.5229 1 $1.3994 112.6494 30 $49,434.61
11/30/95 $3,000,000 NYS ERDA (BUG) RIBS 7.3809 0 $2.8218 100.0718 30 $17,885.00
11/30/95 $11,950,000 NYS ERDA (NIMO) 6.5225 1 $0.7149 103.7149 30 $67,366.20
11/30/95 $95,000 NYS ERDA (RG & E) 5.3702 1 $4.1642 114.1012 30 $485.09
11/30/95 $1,920,000 NYS ERDA (LILCO) 5.8197 1 $1.2500 103.8520 30 $9,670.20
11/30/95 $500,000 NYS Environ (LI Water)AMT 4.8299 1 $1.6388 112.4388 30 $2,262.79
11/30/95 $7,500,000 NYS Environ (NYS Water) 5.7501 1 $3.1406 115.0226 30 $41,336.97
11/30/95 $1,970,000 NYS Environ Fac (Jamaica Water) 9.9021 1 $3.6361 108.8741 30 $17,698.52
11/30/95 $1,840,000 NYS Environ (Water) 6.1700 1 $0.5759 108.2719 30 $10,243.25
11/30/95 $1,385,000 NYS HFA (Shorehill) 6.7650 1 $0.6041 104.6041 30 $8,167.43
11/30/95 $5,000 NYS HFA 6.6122 0 $0.5155 98.5155 30 $26.67
11/30/95 $25,000 NYS HFA 6.4946 0 $0.5155 99.5155 30 $133.33
11/30/95 $20,000 NYS HFA 6.4265 1 $0.5316 102.0316 30 $109.28
11/30/95 $20,000 NYS HFA 6.6185 0 $0.5316 100.3316 30 $110.00
11/30/95 $9,000 NYS HFA 6.6606 1 $0.5538 102.5538 30 $51.23
11/30/95 $5,000 NYS HFA 6.4268 1 $0.5538 102.5538 30 $27.46
11/30/95 $25,000 NYS HFA (NON-PROFIT) 6.4726 1 $0.5316 101.7316 30 $137.18
11/30/95 $2,640,000 NYS HFA (Pepper Tree) 7.5378 1 $0.6243 102.4243 30 $16,985.19
11/30/95 $425,000 NYS HFA (SE Tower) 6.6002 1 $0.6243 103.6243 30 $2,422.29
12/19/95 $30,000 NYS HFA 5.8747 1 $0.9333 103.7833 12 $60.97
12/27/95 $5,000 NYS HFA 6.1181 1 $1.0888 103.4888 4 $3.52
11/30/95 $500,000 NYS HFA 6.3616 1 $0.5638 102.5798 30 $2,719.05
11/30/95 $3,620,000 NYS HFA (HENRY PHIPPS) 6.5445 1 $0.6444 103.8444 30 $20,501.57
11/30/95 $5,000 NYS HFA 6.8489 1 $0.6444 101.6444 30 $29.01
12/18/95 $145,000 NYS HFA (Baptist Manor) 1.4398 1 $1.0444 104.4444 13 $78.73
11/30/95 $5,000 NYS HFA (Baptist Manor) 5.9951 1 $0.6444 102.4244 30 $25.59
11/30/95 $1,375,000 NYS HFA (Clinton Plaza) 5.2699 1 $0.6142 108.6222 30 $6,559.07
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/19/95 $35,000 NYS HFA 105.5500 $102.000 8.2500 11/01/19 11/01/98
12/18/95 $25,000 NYS HFA 105.1000 $102.000 8.2500 11/01/19 11/01/98
11/30/95 $1,700,000 NYS HFA 103.3890 $102.000 8.2500 11/01/19 11/01/98
11/30/95 $50,000 NYS HFA (Keeler Park) 102.0000 $101.000 8.0000 05/01/19 05/01/96
11/30/95 $355,000 NYS HFA (ADM HALSEY) 102.1000 $100.000 8.0000 05/01/19 05/01/19
11/30/95 $15,000 NYS HFA (Ft.Schulyer) 105.4070 $100.000 7.7500 11/01/18 11/01/98
11/30/95 $1,025,000 NYS HFA 105.4070 $102.000 10.0000 11/15/25 05/15/96
12/04/95 $2,205,000 NYS HFA 104.0000 $101.000 10.0000 11/15/25 11/15/96
11/30/95 $5,000,000 NYS HFA (Phillips Village) 111.3710 $100.000 7.7500 08/15/17 08/15/07
11/30/95 $5,775,000 NYS HFA 104.9950 $100.000 6.7500 05/15/36 05/15/07
11/30/95 $1,040,000 NYS HFA (HELP/BRONX) 107.5870 $100.000 7.8500 05/01/99 05/01/99
11/30/95 $1,080,000 NYS HFA (HELP/BRONX) 108.3730 $100.000 7.8500 11/01/99 11/01/99
11/30/95 $13,080,000 NYS HFA (HELP/BRONX) 107.6270 $100.000 8.0500 11/01/05 11/01/01
11/30/95 $1,210,000 NYS HFA (Help Suffolk) 106.2420 $100.000 8.1000 11/01/05 11/01/99
11/30/95 $5,395,000 NYS HFA 106.5210 $102.000 7.4500 11/01/28 11/01/99
12/20/95 $1,000,000 NYS HFA 103.3260 $100.000 6.3000 08/15/26 08/15/07
12/21/95 $3,500,000 NYS HFA 102.4790 $100.000 6.3000 08/15/26 08/15/07
12/21/95 $500,000 NYS HFA 103.3260 $100.000 6.3000 08/15/26 08/15/07
11/30/95 $2,920,000 NYS HFA 113.4010 $102.000 8.0000 11/01/08 11/01/00
11/30/95 $370,000 NYS HFA 102.5320 $101.000 10.0000 11/15/25 11/15/96
11/30/95 $3,555,000 NYS HFA (Children's Rescue) 111.8150 $102.000 7.6250 05/01/18 11/01/01
11/30/95 $75,000 NYS HFA 105.9900 $100.000 6.9500 08/15/12 08/15/04
11/30/95 $5,350,000 NYS HFA 106.3320 $100.000 7.0500 08/15/24 08/15/04
11/30/95 $2,940,000 NYS HFA 105.5260 $100.000 6.9500 08/15/24 08/15/04
11/30/95 $2,750,000 NYS HFA 103.2730 $100.000 6.5000 08/15/24 08/15/04
11/30/95 $11,980,000 NYS HFA 104.3110 $100.000 6.7000 08/15/25 08/15/05
11/30/95 $15,000,000 NYS HFA 5.800 38.7000 $100.000 0.0000 11/01/12 11/01/12
11/30/95 $17,985,000 NYS HFA 5.800 36.3560 $100.000 0.0000 11/01/13 11/01/13
11/30/95 $15,730,000 NYS HFA 5.850 33.7700 $100.000 0.0000 11/01/14 11/01/14
11/30/95 $14,590,000 NYS HFA 5.850 31.7360 $100.000 0.0000 11/01/15 11/01/15
11/30/95 $12,695,000 NYS HFA 5.850 27.2860 $100.000 0.0000 11/01/17 11/01/17
11/30/95 $2,000,000 NYS HFA (Dominican Village) 104.6540 $100.000 6.6000 08/15/27 08/15/06
11/30/95 $150,000 NYS HFA 112.2810 $102.000 7.7000 03/15/06 03/15/01
11/30/95 $9,195,000 NYS HFA 102.3920 $100.000 6.5000 03/15/25 03/15/25
11/30/95 $4,100,000 NYS Med Care (H&N) 105.4390 $104.000 10.0000 11/01/06 11/01/96
11/30/95 $5,075,000 NYS Med Care 105.3880 $104.000 9.3750 11/01/16 11/01/96
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/19/95 $35,000 NYS HFA 6.7280 1 $1.1000 106.6500 12 $83.70
12/18/95 $25,000 NYS HFA 6.8976 1 $1.0770 106.1770 13 $66.12
11/30/95 $1,700,000 NYS HFA 7.5558 1 $0.6645 104.0535 30 $11,137.95
11/30/95 $50,000 NYS HFA (Keeler Park) 5.4712 1 $0.6444 102.6444 30 $234.00
11/30/95 $355,000 NYS HFA (ADM HALSEY) 7.8024 1 $0.6444 102.7444 30 $2,371.56
11/30/95 $15,000 NYS HFA (Ft.Schulyer) 5.7102 1 $0.6243 106.0313 30 $75.68
11/30/95 $1,025,000 NYS HFA 2.4253 1 $0.4166 105.8236 30 $2,192.25
12/04/95 $2,205,000 NYS HFA 6.6062 1 $0.5277 104.5277 27 $11,419.66
11/30/95 $5,000,000 NYS HFA (Phillips Village) 6.3565 1 $2.2604 113.6314 30 $30,095.75
11/30/95 $5,775,000 NYS HFA 6.1361 1 $0.2812 105.2762 30 $31,088.06
11/30/95 $1,040,000 NYS HFA (HELP/BRONX) 5.3886 1 $0.6323 108.2193 30 $5,053.97
11/30/95 $1,080,000 NYS HFA (HELP/BRONX) 5.4467 1 $0.6323 109.0053 30 $5,343.48
11/30/95 $13,080,000 NYS HFA (HELP/BRONX) 6.4765 1 $0.6484 108.2754 30 $76,435.82
11/30/95 $1,210,000 NYS HFA (Help Suffolk) 6.2763 1 $0.6525 106.8945 30 $6,764.93
11/30/95 $5,395,000 NYS HFA 6.0155 1 $0.6001 107.1211 30 $28,970.58
12/20/95 $1,000,000 NYS HFA 5.9001 1 $2.1875 105.5135 11 $1,902.21
12/21/95 $3,500,000 NYS HFA 6.0000 1 $2.2050 104.6840 10 $6,106.57
12/21/95 $500,000 NYS HFA 5.9000 1 $2.2050 105.5310 10 $864.77
11/30/95 $2,920,000 NYS HFA 5.2349 1 $0.6444 114.0454 30 $14,527.40
11/30/95 $370,000 NYS HFA 8.2143 1 $0.4166 102.9486 30 $2,607.46
11/30/95 $3,555,000 NYS HFA (Children's Rescue) 5.5449 1 $0.6142 112.4292 30 $18,468.49
11/30/95 $75,000 NYS HFA 6.0530 1 $2.0270 108.0170 30 $408.64
11/30/95 $5,350,000 NYS HFA 6.1000 1 $2.0562 108.3882 30 $29,477.09
11/30/95 $2,940,000 NYS HFA 6.1200 1 $2.0270 107.5530 30 $16,126.51
11/30/95 $2,750,000 NYS HFA 6.0100 1 $1.8958 105.1688 30 $14,484.82
11/30/95 $11,980,000 NYS HFA 6.1032 1 $1.9541 106.2651 30 $64,747.66
11/30/95 $15,000,000 NYS HFA 5.6903 1 $0.0000 38.7000 30 $27,526.83
11/30/95 $17,985,000 NYS HFA 5.7269 1 $0.0000 36.3560 30 $31,205.05
11/30/95 $15,730,000 NYS HFA 5.8211 1 $0.0000 33.7700 30 $25,768.17
11/30/95 $14,590,000 NYS HFA 5.8456 1 $0.0000 31.7360 30 $22,555.65
11/30/95 $12,695,000 NYS HFA 6.0140 0 28 $0.0000 28.2552 30 $17,486.63
11/30/95 $2,000,000 NYS HFA (Dominican Village) 6.0030 1 $1.9250 106.5790 30 $10,663.23
11/30/95 $150,000 NYS HFA 5.3350 1 $1.6041 113.8851 30 $759.47
11/30/95 $9,195,000 NYS HFA 6.3188 1 $1.3541 103.7461 30 $50,231.62
11/30/95 $4,100,000 NYS Med Care (H&N) 8.0099 1 $0.8055 106.2445 30 $29,076.12
11/30/95 $5,075,000 NYS Med Care 7.4728 1 $0.7552 106.1432 30 $33,545.20
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/27/95 $25,000 NYS Med Care 104.3000 $101.000 7.4000 11/01/16 11/01/99
12/19/95 $30,000 NYS Med Care 104.4500 $101.000 7.4000 11/01/16 11/01/99
11/30/95 $4,970,000 NYS Med Care 102.2340 $101.000 7.4000 11/01/16 11/01/99
11/30/95 $10,000 NYS Med Care (N. Gen) 106.6880 $102.000 7.1500 02/15/01 08/15/99
11/30/95 $4,600,000 NYS Med Care (N. Gen) 107.1750 $100.000 7.3500 08/15/09 08/15/01
11/30/95 $1,935,000 NYS Med Care (N Gen) 105.9470 $102.000 7.4000 02/15/19 08/15/99
11/30/95 $1,520,000 NYS Med Care 104.1000 $102.000 10.2500 01/01/24 07/01/96
11/30/95 $30,000 NYS Med Care 102.0000 $100.000 9.5000 11/01/03 11/01/96
12/28/95 ($30,000 ) NYS Med Care 9.5000
11/30/95 $2,055,000 NYS Med Care 102.5000 $100.000 9.8000 11/01/16 11/01/96
11/30/95 ($2,055,000 ) NYS Med Care 9.8000
11/30/95 $1,040,000 NYS Med Care 102.0000 $100.000 9.5000 01/15/24 07/15/96
11/30/95 $7,210,000 NYS Med Care (Kingston Hosp) 102.3990 $101.000 8.8750 11/15/17 11/15/96
12/15/95 $10,000 NYS Med Care (Kingston Hosp) 103.1500 $101.000 8.8750 11/15/17 11/15/96
11/30/95 $425,000 NYS Med Care 102.3790 $101.000 9.1250 02/15/25 03/15/96
11/30/95 $2,120,000 NYS Med Care (H&N) 102.3680 $101.000 9.0000 02/15/26 03/22/96
11/30/95 $4,905,000 NYS Med Care (Bronx Leb) 103.9230 $102.000 7.1000 02/15/27 02/15/97
12/29/95 $10,000 NYS Med Care (Bronx Leb) 103.0500 $102.000 7.1000 02/15/27 02/15/97
11/30/95 $25,000 NYS Med Care 105.5360 $102.000 7.2500 02/15/12 08/15/97
11/30/95 $5,000 NYS Med Care 108.4890 $102.000 8.0000 02/15/27 08/15/97
11/30/95 $4,590,000 NYS Med Care (Vassar) 107.0810 $102.000 8.2500 11/01/13 11/01/97
11/30/95 $2,050,000 NYS Med Care (Bronx Leb) 104.7470 $102.000 7.1000 02/15/27 02/15/97
11/30/95 $3,000,000 NYS Med Care (Nyack) 109.9730 $102.000 8.1999 11/01/04 11/01/98
11/30/95 $2,835,000 NYS Med Care (Nyack) 110.2410 $102.000 8.3000 11/01/13 11/01/98
11/30/95 $5,000 NYS Med Care (H&N) 110.9250 $102.000 7.9000 02/15/08 08/15/98
11/30/95 $680,000 NYS Mort S-12 8.250 88.5510 $101.520 0.0000 04/01/17 10/01/97
11/30/95 $150,000 NYS Mort BB2 105.9770 $102.000 7.9500 10/01/15 10/01/97
11/30/95 $35,000 NYS Mort 8th Series 104.6730 $100.000 8.3000 10/01/06 10/01/99
11/30/95 $100,000 NYS Mort Series 8-D 104.7380 $100.000 8.1999 10/01/06 04/01/01
11/30/95 $95,000 NYS Mort 1 9.210 78.8700 $87.360 0.0000 10/01/98 10/01/97
11/30/95 $40,000 NYS Mort 1 9.523 17.6540 $19.630 0.0000 10/01/14 04/01/97
11/30/95 $13,260,000 NYS Mort 2 10.000 17.0800 $32.557 0.0000 10/01/14 04/01/03
11/30/95 $80,000 NYS Mort 5 9.600 74.3130 $100.000 0.0000 04/01/99 04/01/99
11/30/95 $90,000 NYS Mort 5 9.600 71.0789 $100.000 0.0000 10/01/99 10/01/99
11/30/95 $25,000 NYS Mort 5 9.750 67.5639 $100.000 0.0000 04/01/00 04/01/00
11/30/95 $15,000 NYS Mort 5 102.9000 $100.000 9.6250 10/01/05 04/01/96
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/27/95 $25,000 NYS Med Care 6.3519 1 $1.1511 105.4511 4 $18.61
12/19/95 $30,000 NYS Med Care 6.3140 1 $0.9866 105.4366 12 $66.56
11/30/95 $4,970,000 NYS Med Care 6.9627 1 $0.5961 102.8301 30 $29,653.31
11/30/95 $10,000 NYS Med Care (N. Gen) 5.6160 1 $2.0854 108.7734 30 $50.91
11/30/95 $4,600,000 NYS Med Care (N. Gen) 5.8507 1 $2.1437 109.3187 30 $24,517.66
11/30/95 $1,935,000 NYS Med Care (N Gen) 6.0699 1 $2.1583 108.1053 30 $10,581.04
11/30/95 $1,520,000 NYS Med Care 6.3943 1 $4.2423 108.3423 30 $8,775.12
11/30/95 $30,000 NYS Med Care 7.2001 1 $0.7652 102.7652 30 $184.98
12/28/95 ($30,000) NYS Med Care 7.2001 102.7653 3 ($18.50)
11/30/95 $2,055,000 NYS Med Care 6.9337 1 $0.7894 103.2894 30 $12,264.55
11/30/95 ($2,055,000) NYS Med Care 6.9337 103.2894 30 ($12,264.54)
11/30/95 $1,040,000 NYS Med Care 6.1664 1 $3.5625 105.5625 30 $5,641.49
11/30/95 $7,210,000 NYS Med Care (Kingston Hosp) 7.2583 1 $0.3697 102.7687 30 $44,817.76
12/15/95 $10,000 NYS Med Care (Kingston Hosp) 6.3492 1 $0.7395 103.8895 16 $29.32
11/30/95 $425,000 NYS Med Care 4.2165 1 $1.9010 104.2800 30 $1,557.26
11/30/95 $2,120,000 NYS Med Care (H&N) 4.4229 1 $1.7000 104.0680 30 $8,131.65
11/30/95 $4,905,000 NYS Med Care (Bronx Leb) 5.3196 1 $2.0708 105.9938 30 $23,047.16
12/29/95 $10,000 NYS Med Care (Bronx Leb) 5.9941 1 $2.6427 105.6927 2 $3.52
11/30/95 $25,000 NYS Med Care 4.9598 1 $2.1145 107.6505 30 $111.23
11/30/95 $5,000 NYS Med Care 3.9498 1 $2.3333 110.8223 30 $18.24
11/30/95 $4,590,000 NYS Med Care (Vassar) 5.3200 1 $0.6645 107.7455 30 $21,925.15
11/30/95 $2,050,000 NYS Med Care (Bronx Leb) 4.6349 1 $2.0708 106.8178 30 $8,457.79
11/30/95 $3,000,000 NYS Med Care (Nyack) 5.1201 1 $0.6605 110.6335 30 $14,161.37
11/30/95 $2,835,000 NYS Med Care (Nyack) 5.1200 1 $0.6686 110.9096 30 $13,415.63
11/30/95 $5,000 NYS Med Care (H&N) 4.2849 1 $2.3041 113.2291 30 $20.22
11/30/95 $680,000 NYS Mort S-12 7.5841 1 $0.0000 88.5510 30 $3,805.62
11/30/95 $150,000 NYS Mort BB2 5.5251 1 $1.3029 107.2799 30 $740.92
11/30/95 $35,000 NYS Mort 8th Series 6.8884 1 $1.3602 106.0332 30 $213.03
11/30/95 $100,000 NYS Mort Series 8-D 7.1138 1 $1.3438 106.0818 30 $628.87
11/30/95 $95,000 NYS Mort 1 5.6463 1 $0.0000 78.8700 30 $352.55
11/30/95 $40,000 NYS Mort 1 8.1004 1 $0.0000 17.6540 30 $47.67
11/30/95 $13,260,000 NYS Mort 2 8.9894 1 $0.0000 17.0800 30 $16,966.05
11/30/95 $80,000 NYS Mort 5 9.1000 1 $0.0000 74.3130 30 $450.84
11/30/95 $90,000 NYS Mort 5 9.1000 1 $0.0000 71.0789 30 $485.11
11/30/95 $25,000 NYS Mort 5 9.2501 1 $0.0000 67.5639 30 $130.20
11/30/95 $15,000 NYS Mort 5 0.9542 1 $1.5774 104.4774 30 $12.46
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $160,000 NYS Mort 5 102.5000 $102.000 9.7500 10/01/10 04/01/96
11/30/95 $2,575,000 NYS Mort 6 (9.375 LIMO 10/1/96) 9.375 95.3300 $103.708 0.0000 04/01/10 10/01/96
11/30/95 $1,915,000 NYS Mort 7 9.250 83.8750 $102.000 0.0000 10/01/14 04/01/98
11/30/95 $170,000 NYS Mort 8 104.8430 $100.000 8.4000 10/01/17 10/01/99
11/30/95 $115,000 NYS Mort 8a 103.2310 $100.000 6.8750 10/01/17 04/01/98
11/30/95 $80,000 NYS Mort 8th Ser E 104.7040 $100.000 8.1000 10/01/17 04/01/00
11/30/95 $185,000 NYS Mort 9 103.4270 $102.000 7.3000 04/01/17 10/01/96
12/19/95 $15,000 NYS Mort 9 103.8500 $102.000 8.3000 07/01/17 07/01/97
11/30/95 $10,000 NYS Mort 9 105.1410 $102.000 8.3000 07/01/17 07/01/97
11/30/95 $20,000 NYS Mort 9 104.9570 $100.000 8.3750 04/01/18 04/01/00
11/30/95 $6,435,000 NYS Mort Series 40A 104.7610 $100.000 6.7000 04/01/25 04/01/06
11/30/95 $5,720,000 NYS Mort Series 40b 104.2670 $100.000 6.6000 04/01/25 04/01/25
11/30/95 $13,600,000 NYS Mort Series 42 104.4390 $100.000 6.6500 04/01/26 04/01/26
11/30/95 $12,000,000 NYS Mort SER 44 105.9590 $100.000 7.5000 04/01/26 11/01/06
11/30/95 $70,000 NYS Mort Series 8 F 104.6210 $102.000 8.0000 10/01/17 07/01/98
11/30/95 $95,000 NYS Mort Series EE 105.6530 $102.000 7.7500 10/01/10 10/01/00
11/30/95 $15,000 NYS Mort Series EE3 105.1330 $102.000 7.7500 04/01/16 04/01/00
11/30/95 $35,000 NYS Mort HH-2 102.5000 $100.000 7.6000 10/01/21 09/14/01
11/30/95 $245,000 NYS Mort HH-3 104.2870 $102.000 7.6000 10/01/21 06/07/00
11/30/95 $40,000 NYS Mort HH-4 105.4500 $102.000 7.7000 10/01/21 10/01/00
11/30/95 $40,000 NYS Mort HH-2 105.6270 $102.000 7.8500 04/01/22 09/14/99
11/30/95 $490,000 NYS Mort HH3 106.6100 $102.000 7.9500 04/01/22 06/07/00
11/30/95 $65,000 NYS Mort HH-4 106.2350 $100.000 8.0500 04/01/22 10/01/02
11/30/95 $45,000 NYS Mort HO-EE1 105.2540 $100.000 8.0000 10/01/10 10/01/01
11/30/95 $100,000 NYS Mort HO-EE2 104.1360 $102.000 7.4500 10/01/10 09/14/99
11/30/95 $275,000 NYS Mort HO-EE3 107.3620 $102.000 7.7000 10/01/10 06/07/00
11/30/95 $40,000 NYS Mort HO-EE3 107.4250 $100.000 7.5000 04/01/16 09/14/01
11/30/95 $295,000 NYS Mort GG 105.4060 $102.000 8.1250 10/01/17 10/01/97
11/30/95 $20,000 NYS Mort GG 103.0000 $100.000 7.6000 10/01/18 10/01/99
11/30/95 $130,000 NYS Mort GG 104.2750 $102.000 8.1250 04/01/20 10/01/97
11/30/95 $430,000 NYS Mort Series HH-2 106.0820 $102.000 7.7000 10/01/09 10/01/99
11/30/95 $295,000 NYS Mort Series HH-3 109.1550 $102.000 7.8750 10/01/09 06/07/00
11/30/95 $100,000 NYS Mort Series II 7.900 53.3830 $64.709 0.0000 04/01/05 04/01/99
11/30/95 $90,000 NYS Mort Series II 7.900 49.4820 $73.349 0.0000 04/01/06 04/01/02
11/30/95 $180,000 NYS Mort Series II 7.950 37.4180 $45.428 0.0000 10/01/09 04/01/99
11/30/95 $1,285,000 NYS Mort II 8.125 14.6930 $23.845 0.0000 04/01/20 04/01/02
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $160,000 NYS Mort 5 7.9371 1 $1.5979 104.0979 30 $1,101.65
11/30/95 $2,575,000 NYS Mort 6 (9.375 LIMO 10/1/96) 10.3326 0 92 $0.0000 92.6256 30 $18,633.68
11/30/95 $1,915,000 NYS Mort 7 8.5526 1 $0.0000 83.8750 30 $11,447.70
11/30/95 $170,000 NYS Mort 8 6.9358 1 $1.3766 106.2196 30 $1,043.68
11/30/95 $115,000 NYS Mort 8a 5.3801 1 $1.1267 104.3577 30 $538.05
11/30/95 $80,000 NYS Mort 8th Ser E 6.8244 1 $1.3275 106.0315 30 $482.40
11/30/95 $185,000 NYS Mort 9 5.4099 1 $1.1963 104.6233 30 $872.59
12/19/95 $15,000 NYS Mort 9 6.8678 1 $3.8733 107.7233 12 $36.99
11/30/95 $10,000 NYS Mort 9 6.0658 1 $3.4352 108.5762 30 $54.88
11/30/95 $20,000 NYS Mort 9 7.0248 1 $1.3725 106.3295 30 $124.49
11/30/95 $6,435,000 NYS Mort Series 40A 6.0716 1 $1.0980 105.8590 30 $34,466.60
11/30/95 $5,720,000 NYS Mort Series 40b 6.2790 1 $1.0816 105.3486 30 $31,530.75
11/30/95 $13,600,000 NYS Mort Series 42 6.3186 1 $1.0898 105.5288 30 $75,570.06
11/30/95 $12,000,000 NYS Mort SER 44 6.7200 1 $0.6041 106.5631 30 $71,610.45
11/30/95 $70,000 NYS Mort Series 8 F 6.7398 1 $3.3111 107.9321 30 $424.34
11/30/95 $95,000 NYS Mort Series EE 6.7151 1 $1.2701 106.9231 30 $568.42
11/30/95 $15,000 NYS Mort Series EE3 6.7651 1 $1.2701 106.4031 30 $89.98
11/30/95 $35,000 NYS Mort HH-2 7.0629 1 $1.6044 104.1044 30 $214.46
11/30/95 $245,000 NYS Mort HH-3 6.8649 1 $3.6522 107.9392 30 $1,512.86
11/30/95 $40,000 NYS Mort HH-4 6.7150 1 $1.2619 106.7119 30 $238.86
11/30/95 $40,000 NYS Mort HH-2 6.6151 1 $1.6572 107.2842 30 $236.57
11/30/95 $490,000 NYS Mort HH3 6.6201 1 $3.8204 110.4304 30 $2,985.16
11/30/95 $65,000 NYS Mort HH-4 6.8883 1 $1.3193 107.5543 30 $401.30
11/30/95 $45,000 NYS Mort HO-EE1 6.8883 1 $1.3111 106.5651 30 $275.27
11/30/95 $100,000 NYS Mort HO-EE2 6.6650 1 $1.5727 105.7087 30 $587.12
11/30/95 $275,000 NYS Mort HO-EE3 6.1970 1 $3.7002 111.0622 30 $1,577.25
11/30/95 $40,000 NYS Mort HO-EE3 5.9617 1 $1.5833 109.0083 30 $216.62
11/30/95 $295,000 NYS Mort GG 6.0101 1 $1.3315 106.7375 30 $1,577.03
11/30/95 $20,000 NYS Mort GG 6.6961 1 $1.2455 104.2455 30 $116.34
11/30/95 $130,000 NYS Mort GG 6.6469 1 $1.3315 105.6065 30 $760.45
11/30/95 $430,000 NYS Mort Series HH-2 6.3532 1 $1.2619 107.3439 30 $2,443.75
11/30/95 $295,000 NYS Mort Series HH-3 5.9280 1 $3.7843 112.9393 30 $1,645.87
11/30/95 $100,000 NYS Mort Series II 5.8519 1 $0.0000 53.3830 30 $260.33
11/30/95 $90,000 NYS Mort Series II 6.3100 1 $0.0000 49.4820 30 $234.17
11/30/95 $180,000 NYS Mort Series II 5.8998 1 $0.0000 37.4180 30 $331.14
11/30/95 $1,285,000 NYS Mort II 7.7898 1 $0.0000 14.6930 30 $1,225.63
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $100,000 NYS Mort II 7.950 41.3430 $65.130 0.0000 10/01/07 04/01/02
11/30/95 $170,000 NYS Mort II 7.950 39.7630 $51.063 0.0000 10/01/08 04/01/99
11/30/95 $120,000 NYS Mort II 7.950 40.3990 $49.111 0.0000 10/01/08 04/01/99
11/30/95 $375,000 NYS Mort JJ 104.5000 $100.000 7.5000 10/01/17 10/01/01
11/30/95 $230,000 NYS Mort Series KK 105.3280 $102.000 7.8000 10/01/20 10/01/99
11/30/95 $160,000 NYS Mort Series KK 104.9180 $102.000 7.6500 04/01/19 10/01/99
12/21/95 $25,000 NYS Mort nn 104.8750 $100.000 7.5500 10/01/17 01/01/02
11/30/95 $35,000 NYS Mort nn 105.0080 $100.000 7.5500 10/01/17 01/01/02
11/30/95 $90,000 NYS Mort Series RR 105.4500 $102.000 7.7000 10/01/10 10/01/00
11/30/95 $80,000 NYS Mort Series RR 105.4410 $102.000 7.7500 10/01/17 10/01/00
11/30/95 $380,000 NYS Mort Series SS 103.0000 $100.000 7.5000 10/01/19 10/01/02
11/30/95 $100,000 NYS Mort Series MM-2 112.7930 $101.000 7.7000 04/01/05 10/01/01
11/30/95 $25,000 NYS Mort Series MM-1 115.4070 $100.000 7.7500 10/01/05 02/04/03
11/30/95 $75,000 NYS Mort Series MM-1 104.6350 $102.000 7.5000 04/01/13 02/04/01
11/30/95 $135,000 NYS Mort UU 102.0000 $100.000 7.1500 10/01/22 04/01/03
11/30/95 $1,365,000 NYS Mort UU 106.0270 $102.000 7.7500 10/01/23 04/01/01
11/30/95 $5,000 NYS Mort TT 111.7600 $100.000 6.9500 10/01/02 10/01/02
11/30/95 $195,000 NYS Mort VV 106.8410 $100.000 7.3750 10/01/11 10/01/03
11/30/95 $115,222,000 NYS Mort VV 7.700 12.3550 $22.070 0.0000 10/01/23 10/01/03
11/30/95 $25,000 NYS Mort SER 28 109.5150 $102.000 6.4500 04/01/04 04/01/02
11/30/95 $8,615,000 NYS Mort SER HOMR -28 106.2590 $100.000 7.0500 10/01/23 10/01/04
11/30/95 $14,020,000 NYS Mort SER 30 RITES 99.2500 $100.000 7.9600 04/01/25 04/01/25
11/30/95 $14,005,000 NYS Mort SER HOMR -30B 103.9760 $100.000 6.6500 10/01/25 03/01/05
11/30/95 $11,500,000 NYS Mort Series 36A 104.1880 $100.000 6.6250 04/01/25 04/01/25
11/30/95 $15,000 NYS Mort SER HOMR -30B 80.0000 $100.000 4.3750 10/01/23 10/01/23
11/30/95 $3,750,000 NYS Mort SER HOMR -46 104.1880 $100.000 6.6500 10/01/25 03/28/07
11/30/95 $7,550,000 NYS Mort SER 50 104.0140 $100.000 6.6250 04/01/25 04/01/25
11/30/95 $1,000,000 NYS Medcare 102.6960 $100.000 6.3750 08/15/33 08/15/33
12/19/95 $95,000 NYS Medcare 102.3500 $100.000 6.2000 02/15/23 02/15/05
11/30/95 $810,000 NYS Medcare (Mental Health) 111.9810 $102.000 7.6250 02/15/17 08/15/01
11/30/95 $9,020,000 NYS Medcare (H&N) 105.9810 $100.000 6.6500 08/15/32 08/15/32
11/30/95 $50,000 NYS Medcare 109.6300 $102.000 7.3500 08/15/11 08/15/01
11/30/95 $5,240,000 NYS Medcare (Wycoff) 106.9440 $100.000 7.4000 08/15/21 08/15/03
11/30/95 $250,000 NYS Medcare 104.5240 $100.000 6.6000 02/15/31 02/15/05
11/30/95 $190,000 NYS Medcare (Mental Health) 105.3550 $100.000 6.5000 02/15/19 02/15/19
11/30/95 $4,000,000 NYS Medcare 105.7330 $100.000 6.4500 08/15/34 08/15/34
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $100,000 NYS Mort II 7.3031 1 $0.0000 41.3430 30 $251.61
11/30/95 $170,000 NYS Mort II 7.6398 1 $0.0000 39.7630 30 $430.36
11/30/95 $120,000 NYS Mort II 5.9400 1 $0.0000 40.3990 30 $239.97
11/30/95 $375,000 NYS Mort JJ 6.5568 1 $1.2291 105.7291 30 $2,166.39
11/30/95 $230,000 NYS Mort Series KK 6.6650 1 $1.2783 106.6063 30 $1,361.85
11/30/95 $160,000 NYS Mort Series KK 6.6390 1 $1.2537 106.1717 30 $939.83
12/21/95 $25,000 NYS Mort nn 6.5572 1 $3.5652 108.4402 10 $49.38
11/30/95 $35,000 NYS Mort nn 6.5377 1 $3.1248 108.1328 30 $206.19
11/30/95 $90,000 NYS Mort Series RR 6.7150 1 $1.2619 106.7119 30 $537.42
11/30/95 $80,000 NYS Mort Series RR 6.7651 1 $1.2701 106.7111 30 $481.27
11/30/95 $380,000 NYS Mort Series SS 6.9388 1 $1.2291 104.2291 30 $2,290.21
11/30/95 $100,000 NYS Mort Series MM-2 5.2713 1 $1.2619 114.0549 30 $501.01
11/30/95 $25,000 NYS Mort Series MM-1 5.1530 1 $2.4972 117.9042 30 $126.58
11/30/95 $75,000 NYS Mort Series MM-1 6.7502 1 $2.4166 107.0516 30 $451.64
11/30/95 $135,000 NYS Mort UU 6.7970 1 $1.1718 103.1718 30 $788.92
11/30/95 $1,365,000 NYS Mort UU 6.7027 1 $1.2701 107.2971 30 $8,180.68
11/30/95 $5,000 NYS Mort TT 4.9029 1 $1.1390 112.8990 30 $23.06
11/30/95 $195,000 NYS Mort VV 6.2553 1 $1.2086 108.0496 30 $1,098.31
11/30/95 $115,222,000 NYS Mort VV 7.5424 1 $0.0000 12.3550 30 $89,475.98
11/30/95 $25,000 NYS Mort SER 28 4.9529 1 $1.0570 110.5720 30 $114.09
11/30/95 $8,615,000 NYS Mort SER HOMR -28 6.1207 1 $1.1554 107.4144 30 $47,199.53
11/30/95 $14,020,000 NYS Mort SER 30 RITES 8.0253 0 $1.3045 100.5545 30 $92,999.33
11/30/95 $14,005,000 NYS Mort SER HOMR -30B 6.0800 1 $1.6440 105.6200 30 $74,946.56
11/30/95 $11,500,000 NYS Mort Series 36A 6.3090 1 $1.0857 105.2737 30 $63,649.83
11/30/95 $15,000 NYS Mort SER HOMR -30B 5.8366 0 $0.7170 80.7170 30 $54.69
11/30/95 $3,750,000 NYS Mort SER HOMR -46 6.1304 1 $1.1452 105.3332 30 $20,179.22
11/30/95 $7,550,000 NYS Mort SER 50 6.3217 1 $1.0857 105.0997 30 $41,802.41
11/30/95 $1,000,000 NYS Medcare 6.1887 1 $1.8593 104.5553 30 $5,392.18
12/19/95 $95,000 NYS Medcare 5.8633 1 $2.1355 104.4855 12 $194.00
11/30/95 $810,000 NYS Medcare (Mental Health) 5.4549 1 $2.2239 114.2049 30 $4,205.09
11/30/95 $9,020,000 NYS Medcare (H&N) 6.2326 1 $1.9395 107.9205 30 $50,559.04
11/30/95 $50,000 NYS Medcare 5.6519 1 $2.1437 111.7737 30 $263.22
11/30/95 $5,240,000 NYS Medcare (Wycoff) 6.2488 1 $2.1583 109.1023 30 $29,770.13
11/30/95 $250,000 NYS Medcare 5.9530 1 $1.9250 106.4490 30 $1,320.19
11/30/95 $190,000 NYS Medcare (Mental Health) 6.0660 1 $1.8958 107.2508 30 $1,030.09
11/30/95 $4,000,000 NYS Medcare 6.0634 1 $1.8812 107.6142 30 $21,750.27
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $8,400,000 NYS Medcare (St Luke) FLT 93.2500 $100.000 7.2580 02/15/29 02/15/29
11/30/95 $12,500,000 NYS Medcare (St Luke) FLT 93.2500 $100.000 7.0600 02/15/29 02/15/29
11/30/95 $3,310,000 NYS Medcare (Central Suffolk) 97.6340 $100.000 6.1250 11/01/16 11/01/16
11/30/95 $2,250,000 NYS Med Care (H&N) 103.7410 $100.000 6.5000 02/15/34 02/15/34
11/30/95 $5,750,000 NYS Medcare (St. Luke) RITES 93.2500 $100.000 7.2580 02/15/29 02/15/29
11/30/95 $45,000 NYS Med Care (Nursing) 108.2710 $100.000 7.7000 02/15/18 02/15/00
11/30/95 $705,000 NYS Med Care (Mental) 110.0490 $102.000 7.8750 08/15/15 08/15/98
11/30/95 $130,000 NYS Med Care (Mental) 8.000 18.8060 $21.870 0.0000 08/15/18 08/15/98
11/30/95 $240,000 NYS Medcare (Mental Health) preref 117.2820 $102.000 7.7500 08/15/11 08/15/01
11/30/95 $95,000 NYS Medcare (Mental Health) 111.3490 $102.000 7.7500 08/15/11 08/15/01
11/30/95 $810,000 NYS Medcare (Mental Health) 109.9930 $101.000 7.5000 02/15/21 02/15/02
11/30/95 $2,240,000 NYS Medcare (Downtown) 106.1960 $100.000 6.8000 02/15/20 02/15/20
11/30/95 $4,600,000 NYS Medcare (Brookdale) 106.5990 $100.000 6.8500 02/15/17 02/15/17
11/30/95 $1,650,000 NYS Medcare 105.1310 $100.000 6.3750 02/15/35 02/15/35
11/30/95 $4,000,000 NYS Medcare 104.6970 $100.000 6.3750 08/15/35 08/15/35
11/30/95 $58,860,000 NYS Environ (Huntington) 106.4420 $102.000 7.5000 10/01/12 10/01/99
11/30/95 $1,000,000 NYS Thruway 7.900 68.3160 $100.000 0.0000 01/01/03 01/01/03
11/30/95 $2,000,000 NYS Thruway 7.900 64.2320 $100.000 0.0000 01/01/04 01/01/04
11/30/95 $260,000 NYS Thruway 7.900 60.6760 $100.000 0.0000 01/01/05 01/01/04
11/30/95 $545,000 NYS UDC 102.1980 $101.000 7.0000 05/01/14 05/01/99
11/30/95 $555,000 NYS UDC 101.4640 $100.000 9.3750 09/01/99 09/01/97
11/30/95 $15,000 NYS UDC 7.125 68.3160 $100.000 0.0000 01/01/03 01/01/03
11/30/95 $97,960,000 NYS UDC 8.100 42.2090 $100.000 0.0000 01/01/11 01/01/11
11/30/95 $80,000 NYS UDC (MBIA) 8.100 44.7600 $100.000 0.0000 01/01/11 01/01/11
11/30/95 $900,000 NYS UDC 7.250 51.6000 $100.000 0.0000 01/01/08 01/01/08
11/30/95 $385,000 NYS UDC 115.2930 $102.000 7.7500 01/01/14 01/01/00
11/30/95 $305,000 NYS UDC 116.3340 $102.000 7.5000 04/01/11 04/01/01
11/30/95 $10,725,000 NYS UDC 116.3340 $102.000 7.5000 04/01/20 04/01/01
11/30/95 $4,000,000 NYS UDC 116.3350 $100.000 7.5000 01/01/18 01/01/03
11/30/95 $1,250,000 NYS UDC 6.050 46.7240 $100.000 0.0000 01/01/09 01/01/09
11/30/95 $1,250,000 NYS UDC 6.050 45.9330 $100.000 0.0000 01/01/10 01/01/10
11/30/95 $33,590,000 NYS UDC 6.050 45.6200 $100.000 0.0000 01/01/10 01/01/10
11/30/95 $4,750,000 Newark Wayne Community Hosp 99.2450 $100.000 5.8750 01/15/33 01/15/33
11/30/95 $185,000 Newburgh GO 107.6450 $100.000 7.1000 09/15/07 09/15/06
11/30/95 $185,000 Newburgh GO 107.6450 $100.000 7.1000 09/15/08 09/15/06
11/30/95 $180,000 Newburgh GO 108.0360 $100.000 7.1500 09/15/09 09/15/06
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $8,400,000 NYS Medcare (St Luke) FLT 7.8298 0 $2.1169 95.3669 30 $50,806.00
11/30/95 $12,500,000 NYS Medcare (St Luke) FLT 7.6198 0 $2.0591 95.3091 30 $73,541.67
11/30/95 $3,310,000 NYS Medcare (Central Suffolk) 6.3300 0 $0.4934 98.1274 30 $16,894.79
11/30/95 $2,250,000 NYS Med Care (H&N) 6.2410 1 $1.8958 105.6368 30 $12,361.49
11/30/95 $5,750,000 NYS Medcare (St. Luke) RITES 7.8298 0 $2.1169 95.3669 30 $34,777.92
11/30/95 $45,000 NYS Med Care (Nursing) 5.4697 1 $2.2458 110.5168 30 $226.69
11/30/95 $705,000 NYS Med Care (Mental) 4.5848 1 $2.2968 112.3458 30 $3,026.11
11/30/95 $130,000 NYS Med Care (Mental) 5.6515 1 $0.0000 18.8060 30 $115.14
11/30/95 $240,000 NYS Medcare (Mental Health) preref 4.5832 1 $2.2604 119.5424 30 $1,095.77
11/30/95 $95,000 NYS Medcare (Mental Health) 5.6922 1 $2.2604 113.6094 30 $511.96
11/30/95 $810,000 NYS Medcare (Mental Health) 5.7002 1 $2.1875 112.1805 30 $4,316.30
11/30/95 $2,240,000 NYS Medcare (Downtown) 6.2969 1 $1.9833 108.1793 30 $12,715.63
11/30/95 $4,600,000 NYS Medcare (Brookdale) 6.2816 1 $1.9979 108.5969 30 $26,149.56
11/30/95 $1,650,000 NYS Medcare 6.0314 1 $1.8593 106.9903 30 $8,872.90
11/30/95 $4,000,000 NYS Medcare 6.0602 1 $1.8593 106.5563 30 $21,525.10
11/30/95 $58,860,000 NYS Environ (Huntington) 6.0600 1 $1.2291 107.6711 30 $320,045.01
11/30/95 $1,000,000 NYS Thruway 5.4500 1 $0.0000 68.3160 30 $3,102.69
11/30/95 $2,000,000 NYS Thruway 5.5500 1 $0.0000 64.2320 30 $5,941.46
11/30/95 $260,000 NYS Thruway 6.2752 1 $0.0000 60.6760 30 $824.97
11/30/95 $545,000 NYS UDC 6.5355 1 $0.5638 102.7618 30 $3,050.18
11/30/95 $555,000 NYS UDC 8.4438 1 $2.3177 103.7817 30 $4,052.94
11/30/95 $15,000 NYS UDC 5.4500 1 $0.0000 68.3160 30 $46.54
11/30/95 $97,960,000 NYS UDC 5.7999 1 $0.0000 42.2090 30 $199,844.91
11/30/95 $80,000 NYS UDC (MBIA) 5.4001 1 $0.0000 44.7600 30 $161.14
11/30/95 $900,000 NYS UDC 5.5501 1 $0.0000 51.6000 30 $2,147.89
11/30/95 $385,000 NYS UDC 4.1000 1 $3.2076 118.5006 30 $1,558.78
11/30/95 $305,000 NYS UDC 4.3700 1 $1.2291 117.5631 30 $1,305.78
11/30/95 $10,725,000 NYS UDC 4.3700 1 $1.2291 117.5631 30 $45,916.50
11/30/95 $4,000,000 NYS UDC 4.7564 1 $3.1041 119.4391 30 $18,936.68
11/30/95 $1,250,000 NYS UDC 5.9000 1 $0.0000 46.7240 30 $2,871.58
11/30/95 $1,250,000 NYS UDC 5.6000 1 $0.0000 45.9330 30 $2,679.43
11/30/95 $33,590,000 NYS UDC 5.6499 1 $0.0000 45.6200 30 $72,148.08
11/30/95 $4,750,000 Newark Wayne Community Hosp 5.9250 0 $2.2031 101.4481 30 $23,255.21
11/30/95 $185,000 Newburgh GO 6.1200 1 $1.4791 109.1241 30 $1,029.59
11/30/95 $185,000 Newburgh GO 6.1200 1 $1.4791 109.1241 30 $1,029.59
11/30/95 $180,000 Newburgh GO 6.1200 1 $1.4895 109.5255 30 $1,005.44
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $150,000 Newburgh GO 108.0360 $100.000 7.1500 09/15/10 09/15/06
11/30/95 $155,000 Newburgh GO 108.0160 $100.000 7.2000 09/15/11 09/15/06
11/30/95 $155,000 Newburgh GO 108.0160 $100.000 7.2000 09/15/12 09/15/06
11/30/95 $160,000 Newburgh GO 109.3220 $100.000 7.2500 09/15/13 09/15/06
11/30/95 $155,000 Newburgh GO 109.3220 $100.000 7.2500 09/15/14 09/15/06
11/30/95 $1,130,000 Niagara IDA (MARYLAND MAPLES) 111.2000 $103.000 10.2500 11/15/09 11/15/97
11/30/95 $1,900,000 Niagara IDA (Sevenson Hotel) 102.5220 $100.000 6.6000 05/01/07 05/01/07
11/30/95 $585,000 North Tonawanda HDC 108.1260 $100.000 6.8000 12/15/07 12/15/07
11/30/95 $3,295,000 North Tonawanda HDC 114.3710 $100.000 7.3750 12/15/21 12/15/21
11/30/95 $10,000 Oneida Healthcare 115.1360 $100.000 7.1000 08/01/11 08/01/00
11/30/95 $220,000 Onondaga IDA (Crouse Irving) 110.7960 $103.000 7.8000 01/01/03 01/01/01
11/30/95 $3,650,000 Onondaga IDA (Com Gen Hosp) 100.9320 $100.000 6.6250 01/01/18 01/01/18
11/30/95 $740,000 Onondaga IDA (Gear Motion) 106.5500 $100.000 8.4000 01/15/01 01/15/98
12/15/95 ($100,000) Onondaga IDA (Gear Motion) 8.4000
12/15/95 ($5,000) Onondaga IDA (Gear Motion) 8.9000
11/30/95 $1,765,000 Onondaga IDA (Gear Motion) 112.7260 $100.000 8.9000 01/15/11 01/15/01
11/30/95 $525,000 Onondaga IDA (Coltec) 101.0000 $100.000 7.2500 06/01/08 06/01/08
11/30/95 $710,000 Onondaga IDA 104.0000 $100.000 9.8750 10/01/10 10/01/96
11/30/95 $68,640,000 Onondaga IDA (Res Rec) 103.2940 $100.000 7.0000 05/01/15 05/01/15
11/30/95 $27,850,000 Onondaga IDA (Res Rec) 103.1790 $100.000 6.8750 05/01/06 05/01/06
11/30/95 $495,000 Orange IDA (Mental) 111.3360 $102.000 7.8000 07/01/11 07/01/01
11/30/95 $18,000,000 Orange IDA (Glen Arden) 104.1100 $100.000 8.2500 01/01/02 01/01/00
12/14/95 $25,000 Orange IDA (Glen Arden) 102.0000 $100.000 8.2500 01/01/02 01/01/00
11/30/95 $23,985,000 Orange IDA (Glen Arden) 108.3680 $100.000 8.8750 01/01/25 01/01/07
11/30/95 $1,085,000 Peekskill IDA (Wengen) 104.4020 $103.000 8.8750 12/01/08 06/01/96
11/30/95 $2,023,659 Peekskill IDA (Karta) 105.5870 $103.000 9.0000 07/01/10 07/01/96
11/30/95 $1,150,000 Pilgrim Vlg HDC 103.1690 $100.000 6.8000 02/01/21 02/01/01
11/30/95 $25,000 PORT AUTH NY/NJ 101.7930 $102.000 7.8750 03/01/24 05/01/96
12/26/95 $2,000,000 PORT AUTH NY/NJ 103.1040 $102.000 7.8750 03/01/24 05/01/96
11/30/95 $25,000 PORT AUTH NY/NJ 102.5000 $102.000 7.0000 09/01/24 11/01/96
11/30/95 $25,000 PORT AUTH NY/NJ 7.000 92.9150 $100.000 0.0000 12/01/14 06/01/97
11/30/95 $60,000 PORT AUTH NY/NJ 76th ser 102.4570 $100.000 6.5000 11/01/26 11/01/26
11/30/95 $22,310,000 PORT AUTH NY/NJ (US AIR) 113.7060 $102.000 9.1250 12/01/15 12/01/00
11/30/95 $7,005,000 PORT AUTH NY/NJ (US AIR) 113.1760 $102.000 9.0000 12/01/06 12/01/00
11/30/95 $475,000 PORT AUTH NY/NJ (US AIR) 113.1760 $102.000 9.0000 12/01/10 12/01/00
11/30/95 $60,000 Portchester CDC (Southport) 113.7580 $100.000 7.3000 08/01/11 08/01/01
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $150,000 Newburgh GO 6.1200 1 $1.4895 109.5255 30 $837.87
11/30/95 $155,000 Newburgh GO 6.1700 1 $1.5000 109.5160 30 $872.80
11/30/95 $155,000 Newburgh GO 6.1700 1 $1.5000 109.5160 30 $872.80
11/30/95 $160,000 Newburgh GO 6.0590 1 $1.5104 110.8324 30 $895.38
11/30/95 $155,000 Newburgh GO 6.0590 1 $1.5104 110.8324 30 $867.40
11/30/95 $1,130,000 Niagara IDA (MARYLAND MAPLES) 5.5998 1 $0.4270 111.6270 30 $5,886.26
11/30/95 $1,900,000 Niagara IDA (Sevenson Hotel) 6.2863 1 $0.5316 103.0536 30 $10,257.25
11/30/95 $585,000 North Tonawanda HDC 5.8499 1 $3.1166 111.2426 30 $3,172.45
11/30/95 $3,295,000 North Tonawanda HDC 6.2500 1 $3.3802 117.7512 30 $20,207.82
11/30/95 $10,000 Oneida Healthcare 3.5520 1 $2.3469 117.4829 30 $34.77
11/30/95 $220,000 Onondaga IDA (Crouse Irving) 5.8299 1 $3.2283 114.0243 30 $1,218.71
11/30/95 $3,650,000 Onondaga IDA (Com Gen Hosp) 6.5440 1 $2.7420 103.6740 30 $20,635.97
11/30/95 $740,000 Onondaga IDA (Gear Motion) 5.1034 1 $3.1500 109.7000 30 $3,452.37
12/15/95 ($100,000) Onondaga IDA (Gear Motion) 5.1034 109.7000 16 ($248.82)
12/15/95 ($5,000) Onondaga IDA (Gear Motion) 5.9777 116.0635 16 ($15.42)
11/30/95 $1,765,000 Onondaga IDA (Gear Motion) 5.9777 1 $3.3375 116.0635 30 $10,204.54
11/30/95 $525,000 Onondaga IDA (Coltec) 7.1278 1 $3.6048 104.6048 30 $3,262.01
11/30/95 $710,000 Onondaga IDA 4.9171 1 $1.6184 105.6184 30 $3,072.74
11/30/95 $68,640,000 Onondaga IDA (Res Rec) 6.6937 1 $0.5638 103.8578 30 $397,650.71
11/30/95 $27,850,000 Onondaga IDA (Res Rec) 6.4503 1 $0.5538 103.7328 30 $155,288.77
11/30/95 $495,000 Orange IDA (Mental) 5.7087 1 $3.2283 114.5643 30 $2,697.81
11/30/95 $18,000,000 Orange IDA (Glen Arden) 7.0714 1 $3.4145 107.5245 30 $114,052.40
12/14/95 $25,000 Orange IDA (Glen Arden) 7.6640 1 $3.7354 105.7354 17 $95.67
11/30/95 $23,985,000 Orange IDA (Glen Arden) 7.7355 1 $3.6732 112.0412 30 $173,230.70
11/30/95 $1,085,000 Peekskill IDA (Wengen) 5.8294 1 $4.4128 108.8148 30 $5,735.36
11/30/95 $2,023,659 Peekskill IDA (Karta) 4.3398 1 $3.7250 109.3120 30 $8,000.07
11/30/95 $1,150,000 Pilgrim Vlg HDC 6.0739 1 $2.2477 105.4167 30 $6,136.12
11/30/95 $25,000 PORT AUTH NY/NJ 8.1701 1 $0.6343 102.4273 30 $174.34
12/26/95 $2,000,000 PORT AUTH NY/NJ 4.5016 1 $1.2031 104.3071 5 $1,304.30
11/30/95 $25,000 PORT AUTH NY/NJ 6.2975 1 $0.5638 103.0638 30 $135.22
11/30/95 $25,000 PORT AUTH NY/NJ 4.9502 1 $0.0000 92.9150 30 $95.81
11/30/95 $60,000 PORT AUTH NY/NJ 76th ser 6.3177 1 $0.5236 102.9806 30 $325.30
11/30/95 $22,310,000 PORT AUTH NY/NJ (US AIR) 6.2400 1 $4.5371 118.2431 30 $137,176.25
11/30/95 $7,005,000 PORT AUTH NY/NJ (US AIR) 6.2400 1 $4.4750 117.6510 30 $42,855.55
11/30/95 $475,000 PORT AUTH NY/NJ (US AIR) 6.2400 1 $4.4750 117.6510 30 $2,905.98
11/30/95 $60,000 Portchester CDC (Southport) 4.5201 1 $2.4130 116.1710 30 $262.55
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $25,000 Portchester CDC (Southport) 109.1760 $100.000 7.3750 08/01/22 02/01/01
11/30/95 $750,000 C/O Port Jervis 104.0000 $103.000 10.0000 11/01/08 11/01/98
11/30/95 $1,000,000 Puerto Rico GO Flt 101.4900 $100.000 7.7320 07/01/15 07/01/15
11/30/95 $11,750,000 Puerto Rico GO Flt 101.6640 $100.000 7.6770 07/01/20 07/01/20
11/30/95 $1,600,000 Puerto Rico GO RITES 103.0740 $100.000 7.7180 07/01/22 07/01/22
11/30/95 $60,000 Puerto Rico Electric 98.0000 $100.000 6.0000 01/01/99 01/01/99
11/30/95 $12,800,000 Puerto Rico Electric 103.1250 $100.000 7.8980 07/01/23 07/01/23
11/30/95 $10,000 Puerto Rico HFC 109.3030 $100.000 7.3000 10/01/06 04/01/02
11/30/95 $210,000 Puerto Rico HFA 108.7670 $102.000 7.5000 04/01/15 04/01/00
11/30/95 $8,665,000 Puerto Rico HFA 106.9120 $100.000 7.5000 04/01/22 04/01/02
11/30/95 $1,265,000 Puerto Rico IME 102.5000 $102.000 8.7500 12/01/25 06/01/96
11/30/95 $5,000 Puerto Rico (Polytech U) 94.2580 $100.000 5.7000 08/01/13 08/01/13
11/30/95 $1,045,000 PR ITEME (Ryder Hosp) 103.0860 $100.000 6.4000 05/01/09 05/01/09
11/30/95 $5,250,000 PR ITEME (Ryder Hosp) 103.6340 $100.000 6.7000 05/01/24 05/01/06
11/30/95 $30,000 Puerto Rico Housing Fin Corp 110.2670 $102.000 7.6500 10/15/22 09/27/00
11/30/95 $8,690,000 Puerto Rico Housing Fin 7.000 12.2080 $22.780 0.0000 08/01/26 02/01/05
11/30/95 $30,000 Puerto Rico Port Auth 102.0000 $100.000 7.3000 07/01/07 07/01/96
11/30/95 $10,000,000 Puerto Rico Telephone RIBS FLT 103.0000 $100.000 7.9210 01/01/20 01/01/20
11/30/95 $16,550,000 Puerto Rico Telephone RIBS FLT 100.1250 $100.000 6.7360 01/15/15 01/15/15
11/30/95 $20,000 Rensselear IDA 106.3980 $103.000 8.5000 12/15/02 12/15/96
11/30/95 $25,000 Rensselear Hsg Auth (Renwyck) 112.6500 $100.000 7.6500 01/01/11 01/01/06
11/30/95 $15,000,000 Rensselear Municipal Leasing 104.8720 $100.000 6.9000 06/01/24 06/01/24
11/30/95 $45,000 Riverhead HDC 105.0000 $100.000 8.2500 08/01/10 08/01/99
11/30/95 $715,000 Rochester Hsg Auth (Stonewood) 99.8960 $100.000 5.9000 09/01/09 09/01/09
11/30/95 $20,890,000 Rochester Hsg Auth 110.3070 $103.000 7.7000 01/01/17 12/01/05
11/30/95 $2,090,000 Rockland IDA (Dominican College) 109.3820 $100.000 8.0000 03/01/13 03/01/05
11/30/95 $100,000 St. Lawrence Cty Solid Waste 109.2370 $102.000 8.8750 01/01/08 01/01/98
11/30/95 $10,000 St. Lawrence Cty Solid Waste 108.8650 $102.000 8.2500 01/01/02 01/01/99
11/30/95 $1,395,000 Saratoga IDA (ARC) 104.0830 $100.000 8.4000 03/01/13 03/01/05
11/30/95 $500,000 Schnectady (Annie SSC) 101.5880 $100.000 6.4000 05/01/14 05/01/14
11/30/95 $2,655,000 Schnectady (Annie SSC) 103.4190 $100.000 6.4500 05/01/24 05/01/24
11/30/95 $175,000 Scotia Hsh Auth (Holy Rood) 108.8480 $100.000 7.0000 06/01/09 06/01/06
11/30/95 $606,000 Schroon Lake Fire District 106.1830 $100.000 7.2500 03/01/09 03/01/09
11/30/95 $15,000 Suffolk GO 102.0000 $100.000 6.7500 08/01/10 08/01/10
11/30/95 $725,000 Suffolk GO 104.2720 $100.000 6.3750 11/01/16 11/01/16
11/30/95 $980,000 Suffolk IDA (Dowling College) 112.7080 $102.000 8.2500 12/01/20 12/01/00
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $25,000 Portchester CDC (Southport) 5.3190 1 $2.4378 111.6138 30 $123.68
11/30/95 $750,000 C/O Port Jervis 9.3153 1 $0.8055 104.8055 30 $6,101.84
11/30/95 $1,000,000 Puerto Rico GO Flt 7.5837 1 $3.2001 104.6901 30 $6,616.16
11/30/95 $11,750,000 Puerto Rico GO Flt 7.5265 1 $3.1774 104.8414 30 $77,264.96
11/30/95 $1,600,000 Puerto Rico GO RITES 7.4499 1 $3.1943 106.2683 30 $10,555.85
11/30/95 $60,000 Puerto Rico Electric 6.7259 0 $2.4833 100.4833 30 $300.00
11/30/95 $12,800,000 Puerto Rico Electric 7.6242 1 $3.2688 106.3938 30 $86,524.62
11/30/95 $10,000 Puerto Rico HFC 5.5371 1 $1.1963 110.4993 30 $50.99
11/30/95 $210,000 Puerto Rico HFA 5.6053 1 $1.2291 109.9961 30 $1,078.98
11/30/95 $8,665,000 Puerto Rico HFA 6.1633 1 $1.2291 108.1411 30 $48,127.32
11/30/95 $1,265,000 Puerto Rico IME 7.5656 1 $4.3506 106.8506 30 $8,521.77
11/30/95 $5,000 Puerto Rico (Polytech U) 6.2400 0 $1.8841 96.1421 30 $23.75
11/30/95 $1,045,000 PR ITEME (Ryder Hosp) 6.0600 1 $0.5155 103.6015 30 $5,467.31
11/30/95 $5,250,000 PR ITEME (Ryder Hosp) 6.2200 1 $0.5397 104.1737 30 $28,348.27
11/30/95 $30,000 Puerto Rico Housing Fin Corp 5.5590 1 $1.3387 111.6057 30 $155.10
11/30/95 $8,690,000 Puerto Rico Housing Fin 6.9200 1 $0.0000 12.2080 30 $6,117.71
11/30/95 $30,000 Puerto Rico Port Auth 3.8085 1 $3.0213 105.0213 30 $99.98
11/30/95 $10,000,000 Puerto Rico Telephone RIBS FLT 7.6456 1 $3.2784 106.2784 30 $67,713.52
11/30/95 $16,550,000 Puerto Rico Telephone RIBS FLT 6.7233 1 $2.5260 102.6510 30 $95,183.67
11/30/95 $20,000 Rensselear IDA 4.9599 1 $3.8958 110.2938 30 $91.17
11/30/95 $25,000 Rensselear Hsg Auth (Renwyck) 5.9620 1 $3.1662 115.8162 30 $143.85
11/30/95 $15,000,000 Rensselear Municipal Leasing 6.5215 1 $3.4308 108.3028 30 $88,287.12
11/30/95 $45,000 Riverhead HDC 6.6861 1 $2.7270 107.7270 30 $270.10
11/30/95 $715,000 Rochester Hsg Auth (Stonewood) 5.9100 0 $1.4586 101.3546 30 $3,515.42
11/30/95 $20,890,000 Rochester Hsg Auth 6.5000 1 $3.8286 114.1356 30 $129,149.20
11/30/95 $2,090,000 Rockland IDA (Dominican College) 6.6251 1 $1.9777 111.3597 30 $12,849.49
11/30/95 $100,000 St. Lawrence Cty Solid Waste 5.0700 1 $3.6732 112.9102 30 $477.05
11/30/95 $10,000 St. Lawrence Cty Solid Waste 5.6771 1 $3.4145 112.2795 30 $53.12
11/30/95 $1,395,000 Saratoga IDA (ARC) 7.7700 1 $2.0766 106.1596 30 $9,589.00
11/30/95 $500,000 Schnectady (Annie SSC) 6.2530 1 $0.5155 102.1035 30 $2,660.22
11/30/95 $2,655,000 Schnectady (Annie SSC) 6.1923 1 $0.5195 103.9385 30 $14,240.07
11/30/95 $175,000 Scotia Hsh Auth (Holy Rood) 5.8599 1 $3.4805 112.3285 30 $959.92
11/30/95 $606,000 Schroon Lake Fire District 6.5435 1 $1.7923 107.9753 30 $3,568.01
11/30/95 $15,000 Suffolk GO 6.5347 1 $2.2312 104.2312 30 $85.14
11/30/95 $725,000 Suffolk GO 6.0129 1 $0.5135 104.7855 30 $3,806.64
11/30/95 $980,000 Suffolk IDA (Dowling College) 5.6499 1 $4.1020 116.8100 30 $5,389.72
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,145,000 Suffolk IDA (Dev Disabilities) 105.0300 $100.000 7.3750 03/01/03 03/01/03
11/30/95 $9,675,000 Suffolk IDA (Dev Disabilities) 110.5930 $104.000 8.7500 03/01/23 03/01/03
11/30/95 $2,000,000 Suffolk IDA (Dowling College) 105.0960 $100.000 6.6250 06/01/24 06/01/24
11/30/95 $190,000 Suffolk IDA 104.9990 $103.000 8.3000 03/01/08 03/01/96
11/30/95 $190,000 Suffolk IDA 103.6920 $103.000 8.3000 03/01/09 03/01/96
11/30/95 $385,000 Suffolk IDA (Microwave Power) 107.0850 $103.000 7.7500 06/30/02 06/30/96
11/30/95 $4,320,000 Suffolk IDA (Microwave Power) 105.0000 $100.000 8.5000 06/30/22 06/30/02
11/30/95 $715,000 Suffolk IDA (Ocean Park) 110.0630 $100.000 7.5000 11/01/22 11/01/05
11/30/95 $1,670,000 Suffolk IDA (Rimland) 98.5000 $100.000 6.3750 12/01/09 12/01/09
11/30/95 $445,000 Suffolk IDA (FIL-COIL) 101.3660 $100.000 9.0000 12/01/15 12/01/15
11/30/95 $1,060,000 Suffolk IDA (FIL-COIL) 101.5270 $100.000 9.2500 12/01/25 12/01/25
11/30/95 $3,100,000 Sunnybrook Elderly Housing 106.5000 $104.500 11.2500 12/01/14 04/01/96
11/30/95 $3,770,000 Syracuse IDA (St.Joes ) 106.6890 $102.000 7.5000 06/01/18 06/01/98
11/30/95 $2,700,730 *Syracuse IDA (GENESEE INN) 25.0000 $100.000 10.0000 05/01/05 05/01/05
11/30/95 $705,000 Syracuse IDA (Piscitell Stone) 111.0870 $100.000 8.4000 12/01/11 12/01/02
11/30/95 $1,150,000 Syracuse IDA (Rockwell) 109.1720 $102.000 8.0000 06/01/13 06/01/02
12/12/95 $980,000 Syracuse IDA (Rockwest Ctr) 100.0000 $100.000 7.6250 12/01/10 12/01/10
12/12/95 $1,470,000 Syracuse IDA (Rockwest Ctr) 100.0000 $100.000 8.6250 12/01/15 12/01/15
11/30/95 $50,685,000 Syracuse IDA (James Square) 7.200 18.6010 $34.750 0.0000 08/01/25 08/01/10
11/30/95 $375,000 Syracuse Senior Citizens Hsg 105.2330 $104.500 8.0000 12/01/10 12/01/96
11/30/95 $925,000 Tompkins (Kendall at Ithaca) 105.7010 $100.000 7.6250 06/01/09 06/01/01
11/30/95 $2,790,000 Tompkins (Kendall at Ithaca) 106.7180 $100.000 7.8750 06/01/15 06/01/05
11/30/95 $5,465,000 Tompkins (Kendall at Ithaca) 106.3510 $100.000 7.8750 06/01/24 06/01/05
11/30/95 $25,000 Tompkins (Health Care) 125.9060 $110.000 10.8000 02/01/28 08/01/05
11/30/95 $2,800,000 Tompkins (Health Care) 99.2429 $100.000 5.8750 02/01/33 02/01/33
11/30/95 $25,000 Tonawanda HDC 104.5000 $103.000 10.0000 05/01/03 05/01/96
11/30/95 $555,000 Tonawanda SR CIT HSG 105.0920 $100.000 7.8750 02/01/11 08/01/96
11/30/95 $3,250,000 Troy IDA (City of Troy) 107.5170 $102.000 8.0000 03/15/12 03/15/02
11/30/95 $13,250,000 Troy IDA (City of Troy) 107.2530 $102.000 8.0000 03/15/22 03/15/02
11/30/95 $75,000 Tupper Lake HDC 105.0000 $100.000 8.1250 10/01/10 10/01/98
11/30/95 $4,870,000 UFA Devl Corp (Loretta) 100.4220 $100.000 5.9500 07/01/35 07/01/35
11/30/95 $660,000 Ulster IDA (Brooklyn Bottling) 107.5620 $100.000 7.8000 07/30/02 07/30/02
11/30/95 $1,915,000 Ulster IDA (Brooklyn Bottling) 109.7240 $103.000 8.6000 07/30/22 07/30/02
11/30/95 $1,250,000 Ulster Cty Res Rec 99.4410 $100.000 6.0000 03/01/14 03/01/14
11/30/95 $1,890,000 Union Elderly 104.0000 $101.500 10.0000 04/01/13 04/01/96
11/30/95 $105,000 Union Hsg Auth (Methodist Homes) 108.0530 $100.000 8.0500 04/01/99 04/01/99
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $1,145,000 Suffolk IDA (Dev Disabilities) 6.4919 1 $1.8232 106.8532 30 $6,618.87
11/30/95 $9,675,000 Suffolk IDA (Dev Disabilities) 7.2700 1 $2.1631 112.7561 30 $66,091.34
11/30/95 $2,000,000 Suffolk IDA (Dowling College) 6.2402 1 $3.2940 108.3900 30 $11,272.93
11/30/95 $190,000 Suffolk IDA 0.3661 1 $2.0519 107.0509 30 $62.05
11/30/95 $190,000 Suffolk IDA 5.2603 1 $2.0519 105.7439 30 $880.72
11/30/95 $385,000 Suffolk IDA (Microwave Power) 0.6981 1 $3.2291 110.3141 30 $247.07
11/30/95 $4,320,000 Suffolk IDA (Microwave Power) 7.5210 1 $3.5416 108.5416 30 $29,388.31
11/30/95 $715,000 Suffolk IDA (Ocean Park) 6.1300 1 $0.6041 110.6671 30 $4,042.07
11/30/95 $1,670,000 Suffolk IDA (Rimland) 6.5402 0 $3.1697 101.6697 30 $8,871.87
11/30/95 $445,000 Suffolk IDA (FIL-COIL) 8.8530 1 $4.4750 105.8410 30 $3,474.75
11/30/95 $1,060,000 Suffolk IDA (FIL-COIL) 9.1006 1 $4.5993 106.1263 30 $8,531.35
11/30/95 $3,100,000 Sunnybrook Elderly Housing 4.8915 1 $1.8437 108.3437 30 $13,690.72
11/30/95 $3,770,000 Syracuse IDA (St.Joes ) 5.3655 1 $3.7291 110.4181 30 $18,612.76
11/30/95 $2,700,730 *Syracuse IDA (GENESEE INN) 43.2204 0 $0.8055 25.8055 30 $0.00
11/30/95 $705,000 Syracuse IDA (Piscitell Stone) 6.4100 1 $4.1766 115.2636 30 $4,340.69
11/30/95 $1,150,000 Syracuse IDA (Rockwell) 6.5000 1 $3.9777 113.1497 30 $7,048.29
12/12/95 $980,000 Syracuse IDA (Rockwest Ctr) 7.6245 0 $0.2329 100.2329 19 $3,943.82
12/12/95 $1,470,000 Syracuse IDA (Rockwest Ctr) 8.6244 0 $0.2635 100.2635 19 $6,691.56
11/30/95 $50,685,000 Syracuse IDA (James Square) 4.3060 1 $0.0000 18.6010 30 $33,830.51
11/30/95 $375,000 Syracuse Senior Citizens Hsg 6.9191 1 $3.9777 109.2107 30 $2,361.38
11/30/95 $925,000 Tompkins (Kendall at Ithaca) 6.3801 1 $3.7913 109.4923 30 $5,384.83
11/30/95 $2,790,000 Tompkins (Kendall at Ithaca) 6.8994 1 $3.9156 110.6336 30 $17,746.86
11/30/95 $5,465,000 Tompkins (Kendall at Ithaca) 6.9506 1 $3.9156 110.2666 30 $34,904.01
11/30/95 $25,000 Tompkins (Health Care) 7.6700 1 $3.5700 129.4760 30 $206.89
11/30/95 $2,800,000 Tompkins (Health Care) 5.9250 0 $1.9420 101.1850 30 $13,708.33
11/30/95 $25,000 Tonawanda HDC 6.1002 1 $0.8055 105.3055 30 $133.83
11/30/95 $555,000 Tonawanda SR CIT HSG 0.2564 1 $2.6031 107.6951 30 $127.71
11/30/95 $3,250,000 Troy IDA (City of Troy) 6.7700 1 $1.6666 109.1836 30 $20,019.28
11/30/95 $13,250,000 Troy IDA (City of Troy) 6.8196 1 $1.6666 108.9196 30 $82,016.24
11/30/95 $75,000 Tupper Lake HDC 6.1710 1 $1.3315 106.3315 30 $410.11
11/30/95 $4,870,000 UFA Devl Corp (Loretta) 5.9218 1 $2.4626 102.8846 30 $24,725.89
11/30/95 $660,000 Ulster IDA (Brooklyn Bottling) 6.3868 1 $2.6000 110.1620 30 $3,869.70
11/30/95 $1,915,000 Ulster IDA (Brooklyn Bottling) 7.1003 1 $2.8666 112.5906 30 $12,757.53
11/30/95 $1,250,000 Ulster Cty Res Rec 6.0500 0 $1.4833 100.9243 30 $6,250.00
11/30/95 $1,890,000 Union Elderly 2.4252 1 $1.6388 105.6388 30 $4,035.08
11/30/95 $105,000 Union Hsg Auth (Methodist Homes) 5.3770 1 $1.3193 109.3723 30 $514.58
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $110,000 Union Hsg Auth (Methodist Homes) 109.4570 $103.000 8.1500 04/01/00 04/01/98
11/30/95 $120,000 Union Hsg Auth (Methodist Homes) 109.2150 $103.000 8.2500 04/01/01 04/01/98
11/30/95 $150,000 Union Hsg Auth (Methodist Homes) 109.8920 $103.000 8.3500 04/01/02 04/01/98
11/30/95 $2,010,000 Union Hsg Auth (Methodist Homes) 113.0660 $103.000 8.5000 04/01/12 04/01/03
11/30/95 $1,585,000 Union Hsg Auth (Methodist Homes) 108.2700 $100.000 7.6250 11/01/16 11/01/16
11/30/95 $1,205,000 University of VI GO 107.1950 $100.000 7.2500 10/01/04 10/01/04
11/30/95 $3,570,000 University of VI GO 110.4550 $100.000 7.7000 10/01/19 10/01/08
11/30/95 $5,175,000 University of VI GO 110.4310 $100.000 7.7500 10/01/24 10/01/08
11/30/95 $25,000 Utica Senior Citizen Hous 9.850 58.7460 $100.000 0.0000 07/01/02 07/01/02
11/30/95 $2,110,000 Utica Senior Citizen Hous 9.750 10.7380 $34.732 0.0000 07/01/26 07/01/15
11/30/95 $30,000,000 NYC Muni Water Flt 105.2500 $100.000 6.4760 06/15/17 06/15/17
11/30/95 $10,000,000 MTA IVRC Flt 100.6250 $100.000 6.7390 07/01/11 07/01/11
11/30/95 $22,000,000 NYS Medcare (St Lukes) IVRC 91.3750 $100.000 7.0160 05/12/05 05/12/05
11/30/95 $105,000 Valley Health Development Corp 128.8770 $110.000 11.3000 02/15/23 08/01/00
11/30/95 $20,000 Valley Health Development Corp 112.2480 $103.000 7.8500 08/01/35 08/01/01
11/30/95 $950,000 Vigilant EHL Co. (Thomatson) 106.8900 $100.000 7.5000 11/01/12 11/01/04
11/30/95 $30,000 Virgin Islands HFA 115.0160 $100.000 8.1000 12/01/18 12/01/00
11/30/95 $1,670,000 Virgin Islands Airport 108.4860 $102.000 8.1000 10/01/05 10/01/97
11/30/95 $28,725,000 Virgin Islands Public Fin 108.0440 $100.000 7.2500 10/01/18 10/01/04
11/30/95 $1,135,000 Virgin Islands Public Fin 108.2160 $100.000 7.1250 10/01/04 10/01/04
11/30/95 $1,735,000 Virgin Islands Public Fin 111.3990 $100.000 7.3750 10/01/10 10/01/06
11/30/95 $415,000 Virgin Islands (GO/HUGO) 111.3010 $102.000 7.7500 10/01/06 10/01/01
11/30/95 $6,465,000 Virgin Islands WATER & 108.3150 $102.000 7.4000 07/01/11 07/01/01
11/30/95 $5,900,000 Virgin Islands WATER & 110.0630 $104.000 8.5000 01/01/10 01/01/98
11/30/95 $6,850,000 Virgin Islands WATER & 110.0250 $101.000 7.6000 01/01/12 01/01/03
11/30/95 $8,500,000 Warren Wash IDA (RFDG Res Rec) 104.1130 $100.000 8.1999 12/15/10 12/15/02
11/30/95 $8,965,000 Warren Wash IDA (RFDG Res Rec) 104.1020 $100.000 8.1999 12/15/10 12/15/02
11/30/95 $8,730,000 Warren Wash IDA (res rec) 105.3740 $100.000 8.0000 12/15/12 12/15/12
11/30/95 $575,000 Wayne IDA (ARC) 103.2780 $100.000 7.2500 03/01/03 03/01/03
11/30/95 $2,925,000 Wayne IDA (ARC) 103.9200 $100.000 8.3750 03/01/13 03/01/05
11/30/95 $1,530,000 Westchester IDA (Clearview School) 114.8550 $102.000 9.3750 01/01/21 01/01/05
11/30/95 $2,220,000 Westchester IDA (Jewish Bd F&C Serv) 103.9700 $100.000 6.7500 10/15/12 10/15/12
11/30/95 $1,870,000 Westchester IDA (Beth Abraham) 104.3460 $100.000 8.3750 12/01/25 12/01/25
11/30/95 $960,000 White Plains (Armory Plaza) 102.4480 $101.500 9.0000 02/01/25 05/01/96
11/30/95 $30,000 White Plains (Battle Hill hsg) 105.0000 $100.000 7.4970 04/01/25 04/01/99
11/30/95 $1,345,000 Yonkers IDA (St Joe's Hosp) ser a 107.6790 $100.000 7.5000 12/70/03 12/30/03
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $110,000 Union Hsg Auth (Methodist Homes) 5.0299 1 $1.3356 110.7926 30 $510.84
11/30/95 $120,000 Union Hsg Auth (Methodist Homes) 5.2271 1 $1.3520 110.5670 30 $577.95
11/30/95 $150,000 Union Hsg Auth (Methodist Homes) 5.0300 1 $1.3684 111.2604 30 $699.55
11/30/95 $2,010,000 Union Hsg Auth (Methodist Homes) 6.5508 1 $1.3930 114.4590 30 $12,559.12
11/30/95 $1,585,000 Union Hsg Auth (Methodist Homes) 6.8731 1 $0.6142 108.8842 30 $9,884.75
11/30/95 $1,205,000 University of VI GO 6.1793 1 $1.1881 108.3831 30 $6,725.23
11/30/95 $3,570,000 University of VI GO 6.4860 1 $1.2619 111.7169 30 $21,556.73
11/30/95 $5,175,000 University of VI GO 6.5354 1 $1.2701 111.7011 30 $31,481.75
11/30/95 $25,000 Utica Senior Citizen Hous 8.2421 1 $0.0000 58.7460 30 $100.87
11/30/95 $2,110,000 Utica Senior Citizen Hous 6.0841 1 $0.0000 10.7380 30 $1,148.74
11/30/95 $30,000,000 NYC Muni Water Flt 6.0369 1 $2.9681 108.2181 30 $163,325.56
11/30/95 $10,000,000 MTA IVRC Flt 6.6731 1 $2.7891 103.4141 30 $57,507.77
11/30/95 $22,000,000 NYS Medcare (St Lukes) IVRC 8.3528 0 $0.3508 91.7258 30 $128,626.67
11/30/95 $105,000 Valley Health Development Corp 6.0000 1 $3.7352 132.6122 30 $696.21
11/30/95 $20,000 Valley Health Development Corp 5.7410 1 $2.5948 114.8428 30 $109.89
11/30/95 $950,000 Vigilant EHL Co. (Thomatson) 6.4700 1 $0.6041 107.4941 30 $5,505.94
11/30/95 $30,000 Virgin Islands HFA 4.6970 1 $4.0275 119.0435 30 $139.79
11/30/95 $1,670,000 Virgin Islands Airport 4.2972 1 $1.3275 109.8135 30 $6,567.14
11/30/95 $28,725,000 Virgin Islands Public Fin 6.0591 1 $1.1881 109.2321 30 $158,430.05
11/30/95 $1,135,000 Virgin Islands Public Fin 5.9160 1 $1.1677 109.3837 30 $6,120.62
11/30/95 $1,735,000 Virgin Islands Public Fin 5.9324 1 $1.2086 112.6076 30 $9,658.66
11/30/95 $415,000 Virgin Islands (GO/HUGO) 5.7350 1 $1.2701 112.5711 30 $2,232.68
11/30/95 $6,465,000 Virgin Islands WATER & 5.9349 1 $3.0627 111.3777 30 $35,612.24
11/30/95 $5,900,000 Virgin Islands WATER & 5.1848 1 $3.5180 113.5810 30 $28,954.01
11/30/95 $6,850,000 Virgin Islands WATER & 5.9590 1 $3.1455 113.1705 30 $38,496.05
11/30/95 $8,500,000 Warren Wash IDA (RFDG Res Rec) 7.4380 1 $3.7583 107.8713 30 $56,832.91
11/30/95 $8,965,000 Warren Wash IDA (RFDG Res Rec) 7.4400 1 $3.7583 107.8603 30 $59,952.01
11/30/95 $8,730,000 Warren Wash IDA (res rec) 7.4380 1 $3.6666 109.0406 30 $59,003.49
11/30/95 $575,000 Wayne IDA (ARC) 6.6700 1 $1.7923 105.0703 30 $3,358.09
11/30/95 $2,925,000 Wayne IDA (ARC) 7.7701 1 $2.0704 105.9904 30 $20,074.19
11/30/95 $1,530,000 Westchester IDA (Clearview School) 7.2700 1 $3.8802 118.7352 30 $11,005.86
11/30/95 $2,220,000 Westchester IDA (Jewish Bd F&C Serv) 6.3619 1 $0.8438 104.8138 30 $12,336.05
11/30/95 $1,870,000 Westchester IDA (Beth Abraham) 7.9911 1 $4.1642 108.5102 30 $13,512.56
11/30/95 $960,000 White Plains (Armory Plaza) 6.5326 1 $0.7250 103.1730 30 $5,391.90
11/30/95 $30,000 White Plains (Battle Hill hsg) 5.8224 1 $1.2287 106.2287 30 $154.63
11/30/95 $1,345,000 Yonkers IDA (St Joe's Hosp) ser a 6.2731 1 $3.1250 110.8040 30 $7,790.74
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS, YIELD CALCULATION
FOR THE 30 DAY PERIOD ENDING 12/31/95
11/30/95
Settlement 11/30/95
Date Market Call Call
Purch/Sale Par Value Description OID Value Price Coupon Maturity Date
- ---------- ----------- ---------------------------------- ------- -------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $3,270,000 Yonkers IDA (St. Joe's Hosp)ser b 109.8120 $100.000 8.5000 12/30/13 12/30/06
11/30/95 $475,000 Yonkers IDA (Westchester) 104.0780 $100.000 7.3750 12/30/03 12/30/03
11/30/95 $3,375,000 Yonkers IDA (Westchester) 111.7240 $100.000 8.7500 12/30/23 12/30/03
11/30/95 $1,035,000 Yonkers Parking Auth 103.7810 $100.000 7.7500 12/01/04 12/01/04
11/30/95 $1,095,000 Yates IDA (Keuka College ) 115.0610 $103.000 9.0000 08/01/11 08/01/01
11/30/95 $2,000,000 Yates IDA (Keuka College ) 115.5990 $103.000 8.7500 08/01/15 08/01/05
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 Acc Int
Settlement 11/30/95 Days
Date YTC Disc=0 OID or Settle Mark Val In Interest
Purch/Sale Par Value Description YTM/ Prem=1 Basis Date + Acc Int Period Income
- ---------- ----------- ---------------------------------- ------ ------ ----- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/95 $3,270,000 Yonkers IDA (St. Joe's Hosp)ser b 7.1986 1 $3.5416 113.3536 30 $22,235.66
11/30/95 $475,000 Yonkers IDA (Westchester) 6.7117 1 $3.0729 107.1509 30 $2,846.69
11/30/95 $3,375,000 Yonkers IDA (Westchester) 6.8364 1 $3.6458 115.3698 30 $22,182.59
11/30/95 $1,035,000 Yonkers Parking Auth 7.1726 1 $3.8534 107.6344 30 $6,658.66
11/30/95 $1,095,000 Yates IDA (Keuka College) 6.2500 1 $2.9750 118.0360 30 $6,731.74
11/30/95 $2,000,000 Yates IDA (Keuka College) 6.7499 1 $2.8923 118.4913 30 $13,330.08
--------------
Total interest $11,521,775.94
Total expense $1,426,592.32
Average shares 117,652,849.446
eligible for distribution
Ask Price $18.94
Yield 5.50%
</TABLE>
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<NAME> ROCHESTER FUND MUNICIPALS
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