ROCHESTER FUND MUNICIPALS
Supplement Dated July 29, 1996 to the
Prospectus Dated March 11, 1996
The Prospectus is amended as follows:
1. The first paragraph under the section "Investment Policies and
Strategies" on page 6 is deleted and replaced with the following:
Credit Quality. At least 75% of the Fund's total
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, if not rated, judged
by the Manager to be in an equivalent rating category.
Tax-exempt obligations in the lowest categories of
investment grade ratings may have speculative
characteristics. A description of rating categories is
contained in Appendix A to the Statement of Additional
Information. The Fund is permitted to invest up to 25%
of its total assets in tax-exempt obligations which are
rated below investment grade or, if unrated, judged by
the Manager to be in an equivalent rating category.
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
Objective and Policies" in the Statement of Additional
Information for a discussion of the risks associated with
investments in high yield, high risk securities.
2. The first, second and third sentences of the third paragraph
under the section "Investment Considerations" on page 10 are
deleted and replaced with the following:
Credit Quality. At least 75% of the Fund's total
assets which are invested in tax-exempt obligations will
be invested in securities which have received investment
grade ratings from an NRSRO or, if not rated, judged by
the Manager to be 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 &
Poor's"] 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 25% of its total assets in tax-
exempt obligations that are not investment grade.
3. The first sentence of the fifth paragraph under the section
"Investment Considerations" on page 11 is deleted and replaced with
the following:
Management of Credit Risk. Because up to 25% of the
Fund's total assets which are invested in tax-exempt
obligations may be invested in securities which are not
investment grade, or (subject to the 75%/25% percentage
limitations described above in "Credit Quality") in
securities which are unrated, the Fund is dependent on
the Manager's judgment, analysis and experience in
evaluating the quality of such obligations.
July 29, 1996 PS0365.001
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ROCHESTER FUND MUNICIPALS
Supplement Dated July 29, 1996 to the
Statement of Additional Information Dated March 11, 1996
The Statement of Additional Information is amended as follows:
1. The first sentence of the first full paragraph under the
section "Credit Quality" in "Investment Considerations/Risk
Factors" on page 18 is deleted and replaced with the following:
Risk Factors of High Yield Securities. The Fund is
permitted to invest up to 25% of its total assets in tax-
exempt obligations which are rated below investment grade
or, if unrated, judged by the Manager to be in an
equivalent rating category.
July 29, 1996 PXO365.001
