[LOGO] ROCHESTER
FUND
MUNICIPALS
Tax-Fee Income for New York Investors
Semi-Annual Report
==================
June 30, 1996
[ARTWORK]
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OppenheimerFunds, Inc. Permit
Investment Advisor #
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[LOGO]
OppenheimerFunds Distributor, Inc.
Rochester Division
350 Linden Oaks
Rochester, NY 14625-2807
RS0365.001.0796 August 29, 1996
<PAGE>
[LOGO]
THE ROCHESTER FUNDS
A Division of OppenheimerFunds, Inc.
350 Linden Oaks
Rochester, New York 14625-2807
716 383 1300
July 31, 1996
Dear Fellow Shareholder,
We are pleased to tell you that Rochester Fund Municipals continued to
generate a high level of income through the first six months of 1996. Our
dividend increase in April, from 9.1 to 9.2 cents per share, equates to an
annualized distribution yield of 6.03% when considered with the Fund's maximum
offering price of June 30, 1996. In addition, 100% of this income was exempt
from Federal, New York State and New York City income taxes.(1)
Irrespective of sales charges, the Fund's historical average annual returns
for the one-, five-, and 10-year periods ended 6/30/96, assuming the
reinvestment of dividends at net asset value, are 5.86%, 8.01% and 8.37%. Your
returns may vary, depending on when you purchased the Fund and the sales charge
you incurred.(2) The Fund's 30 day SEC yield at June 30, 1996 is 6.07% and is
based on earnings of the Fund's portfolio during the 30 days ended 6/30/96 and
the maximum offering price, which includes the initial 4% sales charge.(3)
We are also pleased to report that your Fund was recently acknowledged by
Lipper Analytical Services, Inc. as the number one performing New York State
Municipal Bond Fund (based on total return) for the 10-year period ended
6/30/96. This reinforces our belief that the bottom-up investment style we
embrace here in Rochester may both produce superior long-term returns and
mitigate some of the risks inherent in municipal bond investing.
Lipper Analytical Services, Inc., an independent mutual fund monitoring
service, characterizes Rochester Fund Municipals as a New York State Municipal
Debt Fund. The Lipper total return rankings for the 10-year period ended 6/30/96
included 16 New York State Municipal Debt Funds. Within the same category, the
Fund was also ranked 46th out of 95 funds for the 1-year period and 7th out of
41 funds for the five-year period ended 6/30/96. Lipper performance does not
take sales charges into consideration and assumes the reinvestment of dividends
and capital gains distributions.
Clearly, the recent increases in interest rates have had an impact on the
Fund's performance. In response, we have been working to decrease the Fund's
volatility, particularly by replacing some of our longer credit obligations,
including zero-coupon bonds, with higher coupon, shorter maturity issues.(4) We
view these recent increases as just a natural progression of the interest rate
cycle -- interest rate swings are always a normal part of bond market investing
- -- and remind investors to stay focused on the performance of their investments
over the long term.
Regarding other economic trends, we believe that the long term trend toward
low inflation remains intact and that, despite short-term swings, bonds should
continue to provide solid income that helps investors keep pace with inflation.
We also note that the idea of serious tax reform has continued to diminish as we
approach this 1996 election and believe that municipal bond investing, with its
traditionally tax-exempt status, is still an ideal opportunity to earn
investment income.
We will continue to adhere to the Fund's objective of offering investors
high tax-free yields, and look forward to reporting on the Fund's progress in
the coming quarters.
Sincerely,
/s/ RONALD H. FIELDING
- ------------------------
Ronald H. Fielding
Portfolio Manager
[LOGO] OppenheimerFunds(R)
1
<PAGE>
TOTAL RETURNS INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS DISTRIBUTIONS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. FOR MORE COMPLETE INFORMATION, PLEASE REVIEW THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST.
(1) A portion of the Fund's distributions in the future may be subject to
federal, state or local income taxes. For investors subject to alternative
minimum tax, some of the Fund's distributions may increase that tax. Also,
while the Fund currently has a capital loss carryover, future net realized
capital gain distributions, if any, are taxable as capital gains.
(2) For the periods ended 6/30/96, after deducting the maximum initial sales
charge of 4.00%, total returns showing results of hypothetical investments
made on 6/30/95, 6/30/91 and 6/30/86 are 1.62%, 7.13% and 7.93%
respectively. The Fund's inception date is 5/15/86. An explanation of the
different performance calculations is in the Fund's prospectus.
(3) Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 6/30/96, divided by the
maximum offering price at the end of the period, compounded semiannually
and then annualized. Falling net asset values will tend to artificially
raise yields.
(4) The Fund's portfolio is subject to change.
2
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing, Multi-Family - 14.4%
$311,868,442
Albany Hsg. Auth. 0.000% 10/01/02(p) $ 560 $ 138,301
Albany IDA (HHRH) 9.500 09/01/96 3,005 2,974,950
Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,715 1,733,402
Batavia Hsg. Auth. (Washington Towers) 6.500 01/01/23 515 523,379
Battery Park City Auth. 10.000 06/01/23 700 712,250
Bayshore HDC 7.500 02/01/23 1,475 1,571,465
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 07/01/07 900 906,930
Elmira HDC 7.500 08/01/07 25 26,250
Guam Economic Devel. 9.375 11/01/18 3,025 3,132,357
Guam Economic Devel. 9.500 11/01/18 2,515 2,604,232
Hamilton Elderly Hsg. 11.250 01/01/15 710 753,019
Holiday Square HDC 5.800 01/15/24 2,000 1,928,100
Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 3,965 4,302,065
Mechanicsville HDC 6.900 08/01/22 2,500 2,637,925
Monroe HDC 7.000 08/01/21 300 308,613
New Hartford HDC 7.375 01/01/24 20 21,331
North Tonawanda HDC 6.800 12/15/07 585 618,895
North Tonawanda HDC 7.375 12/15/21 3,295 3,660,251
NYC HDC (Albert Einstein) 6.500 12/15/17 334 329,394
NYC HDC (Amsterdam) 6.500 08/15/18 935 921,738
NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,444 1,443,635
NYC HDC (Barclay Avenue) 6.450 04/01/17 1,045 1,041,311
NYC HDC (Barclay Avenue) 6.600 04/01/33 4,055 4,080,830
NYC HDC (Boulevard) 6.500 08/15/17 2,911 2,871,169
NYC HDC (Bridgeview) 6.500 12/15/17 501 494,092
NYC HDC (Cadman Plaza) 6.500 11/15/18 1,343 1,324,122
NYC HDC (Cadman Plaza) 7.000 12/15/18 486 487,288
NYC HDC (Candia) 6.500 06/15/18 198 194,874
NYC HDC (Clinton) 6.500 07/15/17 3,791 3,739,791
NYC HDC (Contello III) 7.000 12/15/18 299 299,259
NYC HDC (Cooper Gram) 6.500 08/15/17 1,574 1,552,634
NYC HDC (Court Plaza) 6.500 08/15/17 1,201 1,184,661
NYC HDC (Crown Gardens) 7.250 01/15/19 1,634 1,657,689
NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,379 3,385,034
NYC HDC (Essex) 6.500 07/15/18 87 85,494
NYC HDC (Forest Park) 6.500 12/15/17 538 530,519
NYC HDC (General Hsg.) 6.500 05/01/22 70 71,039
NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,610 1,615,532
NYC HDC (Heywood) 6.500 10/15/17 384 378,626
NYC HDC (Hudsonview) 6.500 09/15/17 4,327 4,267,361
NYC HDC (Janel) 6.500 09/15/17 1,224 1,206,940
</TABLE>
3
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYC HDC (Kings Arms) 6.500% 11/15/18 $ 242 $ 238,934
NYC HDC (Kingsbridge) 6.500 08/15/17 427 421,363
NYC HDC (Leader) 6.500 03/15/18 1,304 1,285,465
NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,671 1,695,860
NYC HDC (Middagh) 6.500 11/15/18 219 216,067
NYC HDC (Montefiore) 6.500 10/15/17 2,865 2,825,605
NYC HDC (Multi-Family) 5.600 11/01/20 5 4,700
NYC HDC (Multi-Family) 6.500 05/01/06 75 75,794
NYC HDC (Multi-Family) 6.600 04/01/30 38,880 39,940,646
NYC HDC (Multi-Family) 7.300 06/01/10 30 32,293
NYC HDC (Multi-Family) 7.350 06/01/19 1,145 1,218,028
NYC HDC (Multi-Family) 7.500 05/01/23 1,820 1,861,023
NYC HDC (Multi-Family) 8.250 01/01/11 1,415 1,450,375
NYC HDC (Multi-Family) 9.000 05/01/22 195 202,800
NYC HDC (New Amsterdam) 6.500 08/15/18 914 901,693
NYC HDC (Residential Charter) 7.375 04/01/17 3,430 3,603,970
NYC HDC (Riverbend) 6.500 11/15/18 1,142 1,125,821
NYC HDC (Riverside Park) 7.250 11/15/18 6,292 6,383,627
NYC HDC (RNA House) 7.000 12/15/18 465 465,640
NYC HDC (Robert Fulton) 6.500 12/15/17 722 711,904
NYC HDC (Rosalie Manning) 7.034 11/15/18 242 241,951
NYC HDC (Scott Tower) 7.000 12/15/18 642 643,695
NYC HDC (Seaview) 6.500 01/15/18 950 937,223
NYC HDC (Sky View) 6.500 11/15/18 1,772 1,746,851
NYC HDC (South Bronx) 8.100 09/01/23 3,255 3,505,765
NYC HDC (Stevenson) 6.500 05/15/18 1,801 1,776,086
NYC HDC (Stryckers Bay) 7.034 11/15/18 480 479,722
NYC HDC (St. Martin) 6.500 11/15/18 393 387,305
NYC HDC (Tivoli) 6.500 01/15/18 1,809 1,783,816
NYC HDC (Towers) 6.500 08/15/17 390 384,213
NYC HDC (Townhouse) 6.500 11/15/18 246 242,184
NYC HDC (Tri-Faith House) 7.000 01/15/19 350 350,572
NYC HDC (University) 6.500 08/15/17 1,608 1,585,599
NYC HDC (Washington Square) 7.000 01/15/19 446 446,821
NYC HDC (West Side) 6.500 11/15/17 435 428,506
NYC HDC (West Village) 6.500 11/15/13 4,916 4,905,849
NYC HDC (Westview) 6.500 10/15/17 115 113,343
NYC HDC (Woodstock Terrace) 7.034 02/15/19 595 594,445
NYS HFA (Admiral Halsey Sr. Village) 8.000 05/01/19 350 354,036
NYS HFA (Baptist Manor) 8.000 05/01/19 150 153,600
NYS HFA (Children's Rescue) 7.625 05/01/18 3,555 3,794,749
NYS HFA (Clinton Plaza) 7.625 11/01/19 1,365 1,378,950
NYS HFA (Dominican Village) 6.600 08/15/27 2,000 2,061,560
NYS HFA (Ft. Schulyer) 7.750 11/01/18 15 15,731
NYS HFA (HELP/Bronx) 7.850 11/01/99 1,080 1,147,943
</TABLE>
4
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS HFA (HELP/Bronx) 7.850% 05/01/99 $ 1,040 $ 1,096,389
NYS HFA (HELP/Bronx) 8.050 11/01/05 13,080 14,073,557
NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,210 1,283,883
NYS HFA (Henry Phipps) 8.000 05/01/18 3,620 3,704,093
NYS HFA (Keeler Park) 8.000 05/01/19 50 51,000
NYS HFA (Meadow Manor) 7.750 11/01/19 10 10,210
NYS HFA (Multi-Family) 0.000 11/01/12 5,000 1,867,000
NYS HFA (Multi-Family) 0.000 11/01/13 17,985 6,290,793
NYS HFA (Multi-Family) 0.000 11/01/14 15,730 5,015,511
NYS HFA (Multi-Family) 0.000 11/01/15 14,590 4,371,018
NYS HFA (Multi-Family) 0.000 11/01/17 12,695 3,639,910
NYS HFA (Multi-Family) 6.300 08/15/26 5,000 5,031,300
NYS HFA (Multi-Family) 6.500 08/15/24 2,750 2,812,370
NYS HFA (Multi-Family) 6.700 08/15/25 11,980 12,342,275
NYS HFA (Multi-Family) 6.750 11/15/36 5,765 5,943,657
NYS HFA (Multi-Family) 6.950 08/15/24 2,940 3,061,745
NYS HFA (Multi-Family) 6.950 08/15/12 75 78,499
NYS HFA (Multi-Family) 7.050 08/15/24 5,350 5,605,142
NYS HFA (Multi-Family) 7.450 11/01/28 5,355 5,660,878
NYS HFA (Multi-Family) 10.000 11/15/25 1,025 1,050,031
NYS HFA (Multi-Family) 10.000 11/15/25 370 379,095
NYS HFA (Multi-Family) 10.000 11/15/25 2,205 2,298,713
NYS HFA (NonProfit) 6.400 11/01/10 5 4,900
NYS HFA (NonProfit) 6.400 11/01/13 25 24,750
NYS HFA (NonProfit) 6.600 11/01/10 25 25,300
NYS HFA (NonProfit) 6.600 11/01/13 20 19,960
NYS HFA (NonProfit) 6.600 11/01/08 20 20,300
NYS HFA (Phillips Village) 7.750 08/15/17 5,000 5,520,900
NYS HFA (SE Tower) 7.750 11/01/18 420 425,485
NYS HFA (Service Contract) 6.500 03/15/25 9,195 9,351,223
NYS HFA (Service Contract) 7.700 03/15/06 150 163,103
NYS HFA (Shorehill Hsg.) 7.500 05/01/08 1,320 1,348,591
NYS HFA (Urban Rent) 8.250 11/01/19 1,880 1,942,266
Pilgrim Village HDC 6.800 02/01/21 1,145 1,176,110
Portchester CDC (Southport) 7.300 08/01/11 60 63,655
Portchester CDC (Southport) 7.375 08/01/22 25 26,467
Puerto Rico HB&F 7.500 10/01/15 210 222,560
Puerto Rico HFA 7.300 10/01/06 10 10,491
Puerto Rico HFC 7.500 04/01/22 8,180 8,635,217
Rensselaer Hsg. Auth. (Renwyck) 7.650 01/01/11 25 28,471
Riverhead HDC 8.250 08/01/10 45 47,250
Rochester Hsg. Auth. (Crossroads) 7.700 01/01/17 20,890 22,291,092
Rochester Hsg. Auth. (Stonewood) 5.900 09/01/09 715 704,647
Schenectady IDA (ASSC) 6.400 05/01/14 500 501,755
Schenectady IDA (ASSC) 6.450 05/01/24 2,655 2,673,930
</TABLE>
5
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Scotia Hsg. Auth. (Holyrood House) 7.000% 06/01/09 $ 175 $ 185,784
Sunnybrook EHC 11.250 12/01/14 3,100 3,284,047
Syracuse IDA (James Square) 0.000 08/01/25 49,145 8,248,497
Syracuse Senior Citizens Hsg. 8.000 12/01/10 375 394,534
Tonawanda HDC 10.000 05/01/03 25 26,125
Tonawanda Senior Citizens Hsg. 7.875 02/01/11 535 556,052
Tupper Lake HDC 8.125 10/01/10 75 78,750
Union Elderly Hsg. 10.000 04/01/13 1,890 1,965,600
Utica Senior Citizen Hsg. 0.000 07/01/02 24 16,551
Utica Senior Citizen Hsg. 0.000 07/01/26 2,460 270,010
V. I. HFA 8.100 12/01/18 25 26,535
- -----------------------------------------------------------------------------------------------------------------
Municipal Tax Obligations - 13.4%
$289,964,018
Lowville GO 7.200 09/15/14 100 111,044
Lowville GO 7.200 09/15/13 100 110,928
Lowville GO 7.200 09/15/05 100 108,240
Lowville GO 7.200 09/15/07 75 82,132
Lowville GO 7.200 09/15/12 100 110,993
Newburgh GO 7.100 09/15/08 185 194,152
Newburgh GO 7.100 09/15/07 185 194,152
Newburgh GO 7.150 09/15/10 150 157,403
Newburgh GO 7.150 09/15/09 180 189,571
Newburgh GO 7.200 09/15/11 155 162,631
Newburgh GO 7.200 09/15/12 155 162,397
Newburgh GO 7.250 09/15/14 155 162,496
Newburgh GO 7.250 09/15/13 160 167,981
NYC GO 0.000 11/15/11 4,990 1,927,837
NYC GO 0.000 05/15/14 1,690 1,071,899
NYC GO 0.000 05/15/11 270 108,054
NYC GO 0.000 05/15/12 200 74,570
NYC GO 0.000 08/01/14 500 306,155
NYC GO 0.000 08/15/16 70 51,535
NYC GO 5.750 02/01/20 250 228,778
NYC GO 6.000 02/01/11 13,000 12,522,510
NYC GO 6.000 02/15/24 4,200 3,959,886
NYC GO 6.125 02/01/25 28,000 26,904,920
NYC GO 6.500 08/01/14 500 504,480
NYC GO 6.500 08/01/15 2,000 2,017,920
NYC GO 6.600 02/15/10 2,000 2,043,460
NYC GO 6.625 02/15/25 15,580 15,767,895
NYC GO 6.625 08/01/25 2,000 2,021,740
NYC GO 7.000 08/01/96(p) 15 15,329
NYC GO 7.000 02/01/10 20 20,667
NYC GO 7.000 10/01/12 625 653,369
NYC GO 7.000 02/01/22 4,600 4,767,762
</TABLE>
6
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYC GO 7.000% 08/01/96(p) $ 5 $ 5,107
NYC GO 7.000 02/01/15 15 15,168
NYC GO 7.000 02/01/20 650 673,706
NYC GO 7.100 02/01/10 4,000 4,256,080
NYC GO 7.100 02/01/09 1,000 1,062,550
NYC GO 7.100 02/01/11 1,765 1,877,995
NYC GO 7.200 02/01/15 2,800 2,969,092
NYC GO 7.200 02/01/14 4,000 4,251,320
NYC GO 7.250 08/15/24 13,820 14,581,206
NYC GO 7.400 02/01/02 330 356,189
NYC GO 7.500 08/15/20 6,180 6,927,904
NYC GO 7.500 02/01/16 3,000 3,267,810
NYC GO 7.500 02/01/03 2,000 2,191,060
NYC GO 7.500 08/01/21 1,000 1,104,030
NYC GO 7.500 08/01/20 7,500 8,280,225
NYC GO 7.500 08/01/19 1,865 2,059,016
NYC GO 7.500 02/01/18 1,500 1,646,700
NYC GO 7.625 02/01/13 3,845 4,247,687
NYC GO 7.625 02/01/14 270 296,779
NYC GO 7.750 08/15/12 1,000 1,105,700
NYC GO 7.750 08/15/17 1,225 1,365,495
NYC GO 7.750 08/15/01(p) 825 948,016
NYC GO 7.750 02/01/10 1,500 1,661,415
NYC GO 7.750 08/15/13 1,000 1,105,700
NYC GO 7.750 02/01/13 6,000 6,645,660
NYC GO 8.000 08/15/01(p) 245 284,293
NYC GO 8.000 08/15/21 5 5,595
NYC GO 8.000 08/15/20 10 11,191
NYC GO 8.000 08/01/18 45 50,329
NYC GO 8.250 11/15/15 80 90,795
NYC GO 8.250 11/15/01(p) 920 1,077,403
NYC GO 8.250 08/01/13 30 33,881
NYC GO 8.250 08/01/14 35 39,528
NYC GO 8.250 08/01/12 5 5,647
NYC GO 8.250 08/01/01(p) 1,590 1,850,299
NYC GO 8.250 11/15/18 240 272,986
NYC GO 8.250 11/15/01(p) 2,760 3,232,208
NYC GO 8.250 11/15/20 20 22,699
NYC GO CARS 8.190(f) 08/12/10 16,387 16,940,061
NYC GO CARS 8.190(f) 09/01/11 8,387 8,638,610
NYC GO RIBS 6.825(f) 08/01/10 4,200 3,654,000
NYC GO RIBS 6.825(f) 08/01/09 6,200 5,448,250
NYC GO RIBS 6.923(f) 08/22/13 5,400 4,495,500
NYC GO RIBS 6.923(f) 08/01/15 3,050 2,508,625
NYC GO RIBS 7.984(f) 08/08/13 13,150 12,032,250
</TABLE>
7
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYC GO RITES 8.405%(f) 10/01/11 $ 15,000 $15,468,000
Puerto Rico GO RITES 7.916(f) 07/01/22 1,600 1,606,000
Puerto Rico GO YCN 7.168(f) 07/01/15 1,000 986,250
Puerto Rico GO YCN 7.892(f) 07/01/20 27,500 26,571,875
Suffolk GO 6.375 11/01/16 725 726,776
Suffolk GO (Sewer) 6.750 08/01/10 15 15,300
V. I. Public Finance Auth. 7.125 10/01/04 1,135 1,191,739
V. I. Public Finance Auth. 7.250 10/01/18 28,750 30,607,538
V. I. Public Finance Auth. 7.375 10/01/10 1,735 1,873,436
V. I. (GO/HUGO) 7.750 10/01/06 415 438,464
- -----------------------------------------------------------------------------------------------------------------
Healthcare - 13.1%
$281,002,172
Albany IDA (Albany Medical Center) 8.250 08/01/04 3,065 3,255,766
Beacon IDA (Craig House) 9.000 07/01/11 220 224,950
Bethany Retirement Home 7.450 02/01/24 1,000 1,100,470
Cayuga County COP (Auburn Hospital) 6.000 01/01/21 8,400 8,257,116
Clifton Springs Hospital & Clinic 8.000 01/01/20 4,260 4,319,257
Erie IDA (Hospital Lease) 8.400 08/01/96 153 152,827
Erie IDA (Mercy Hospital) 6.250 06/01/10 1,355 1,336,491
Groton Community Health 7.450 07/15/21 2,085 2,312,161
Lyons Community Health 6.800 09/01/24 3,470 3,572,226
Monroe IDA (Genesee Hospital) 7.000 11/01/18 14,525 14,525,581
Newark/Wayne Community Hospital 5.875 01/15/33 4,750 4,604,223
NYC Health & Hospital LEVRRS 7.193(f) 02/15/11 24,500 23,030,000
NYS Dorm (Brookhaven) 8.700 07/01/06 220 222,805
NYS Dorm (Cornwall Hospital) 8.750 07/01/07 775 774,884
NYS Dorm (Crouse Irving Hospital) 10.500 07/01/17 2,270 2,332,425
NYS Dorm (Department of Health) 6.625 07/01/24 250 257,480
NYS Dorm (Department of Health) 7.250 07/01/11 3,750 4,000,463
NYS Dorm (Department of Health) 7.350 08/01/29 95 100,208
NYS Dorm (Episcopal) 7.550 08/01/29 95 101,739
NYS Dorm (KMH Homes) 6.950 08/01/31 25 25,941
NYS Dorm (L.I. Medical Center) 7.750 08/15/27 25 26,497
NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 1,125 1,153,125
NYS Dorm (Menorah Campus) 7.300 08/01/16 20 21,368
NYS Dorm (Montefiore) 8.625 07/01/10 95 97,090
NYS Dorm (Presbyterian) 6.500 08/01/34 2,200 2,264,592
NYS Dorm (RGH) RITES 7.662(f)(c) 08/15/33 12,750 10,757,813
NYS Dorm (St. Vincent Hospital) 7.400 08/01/30 5 5,377
NYS HFA (H&N) 6.875 11/01/11 5 5,101
NYS HFA (H&N) 6.875 11/01/10 9 9,225
NYS HFA (H&N) 7.000 11/01/17 470 479,800
NYS HFA (H&N) 8.000 11/01/00(p) 2,420 2,759,405
NYS HFA (H&N) 8.000 11/01/08 500 557,700
NYS Medcare (Bronx Leb) 7.100 02/15/27 2,080 2,149,118
</TABLE>
8
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS Medcare (Bronx Leb) 7.100% 02/15/27 $ 5,045 $ 5,182,174
NYS Medcare (Brookdale Hospital) 6.375 08/15/34 1,350 1,373,558
NYS Medcare (Brookdale Hospital) 6.375 02/15/35 1,650 1,678,793
NYS Medcare (Brookdale Hospital) 6.850 02/15/17 4,600 4,735,930
NYS Medcare (Downtown Hospital) 6.800 02/15/20 2,240 2,280,454
NYS Medcare (H&N) 6.200 02/15/23 95 95,177
NYS Medcare (H&N) 6.375 08/15/33 1,000 1,036,120
NYS Medcare (H&N) 6.500 02/15/34 2,250 2,313,788
NYS Medcare (H&N) 6.600 02/15/31 250 261,595
NYS Medcare (H&N) 6.650 08/15/32 12,820 13,203,446
NYS Medcare (H&N) 7.250 02/15/24 50 52,948
NYS Medcare (H&N) 7.250 02/15/12 25 26,031
NYS Medcare (H&N) 7.400 11/01/16 4,400 4,497,504
NYS Medcare (H&N) 7.700 02/15/18 50 53,174
NYS Medcare (H&N) 7.900 02/15/08 5 5,433
NYS Medcare (H&N) 9.000 02/15/26 2,120 2,148,726
NYS Medcare (H&N) 9.375 11/01/16 4,355 4,588,820
NYS Medcare (H&N) 10.000 11/01/06 3,695 3,895,269
NYS Medcare (Insured Mtg. Nursing) 6.450 08/15/34 15 15,839
NYS Medcare (Insured Mtg. Nursing) 6.450 08/15/34 4,000 4,087,600
NYS Medcare (Insured Mtg. Nursing) 6.500 11/01/15 75 77,133
NYS Medcare (Insured Mtg. Nursing) 9.500 01/15/24 1,030 1,060,900
NYS Medcare (Kingston Hospital) 8.875 11/15/17 7,660 7,842,844
NYS Medcare (Mental Health) 0.000 08/15/18 145 28,137
NYS Medcare (Mental Health) 6.500 02/15/19 190 190,048
NYS Medcare (Mental Health) 7.500 02/15/21 810 895,852
NYS Medcare (Mental Health) 7.625 08/15/17 805 895,546
NYS Medcare (Mental Health) 7.750 08/15/11 95 106,241
NYS Medcare (Mental Health) 7.875 08/15/15 705 761,167
NYS Medcare (Nyack) 8.200 11/01/98(p) 3,000 3,309,540
NYS Medcare (Nyack) 8.300 11/01/98(p) 2,835 3,133,781
NYS Medcare (N. General) 7.150 02/15/01 10 10,487
NYS Medcare (N. General) 7.350 08/15/09 4,600 4,843,294
NYS Medcare (N. General) 7.400 02/15/19 1,935 2,024,300
NYS Medcare (N. General) 10.250 01/01/24 1,485 1,535,490
NYS Medcare (Richmond) 9.125 02/15/25 425 430,793
NYS Medcare (St. Luke) IVRC 7.790(f) 02/15/29 22,000 18,810,000
NYS Medcare (St. Luke) RITES 5.700(f) 02/15/29 10,000 8,550,000
NYS Medcare (St. Luke) RITES 7.613(f) 02/15/29 12,500 10,687,500
NYS Medcare (St. Luke) RITES 7.662(f) 02/15/29 8,400 7,182,000
NYS Medcare (St. Luke) RITES 7.662(f) 02/15/29 5,750 4,916,250
NYS Medcare (Vassar Brothers) 8.250 11/01/13 4,590 4,818,215
NYS Medcare (Wychoff) 7.350 08/15/11 50 53,651
NYS Medcare (Wychoff) 7.400 08/15/21 5,255 5,631,153
Oneida Healthcare Corp. 7.100 08/01/11 10 10,626
</TABLE>
9
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oneida Healthcare Corp. 7.200% 08/01/31 $ 80 $ 86,898
Onondaga IDA (CGH) 6.625 01/01/18 3,650 3,647,883
Onondaga IDA (Crouse Irving Hospital) 7.800 01/01/03 220 239,107
Puerto Rico ITEME (Ryder Hospital) 6.400 05/01/09 1,045 1,077,186
Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,250 5,302,080
Puerto Rico TEMEC (Mennonite Hospital) 6.500 07/01/26 3,000 2,948,310
Rensselaer Municipal Leasing Corp. 6.900 06/01/24 15,000 15,410,700
Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/18 3,770 3,970,866
Tompkins Healthcare 5.875 02/01/33 2,800 2,713,956
Tompkins Healthcare 10.800 02/01/07 145 194,120
Tompkins Healthcare 10.800 02/01/28 25 33,783
UFA Devel. Corp. (Loretta Utica) 5.950 07/01/35 4,870 4,551,599
Valley Health Devel. 7.850 08/01/35 20 22,103
Valley Health Devel. 11.300 02/01/23 135 168,387
Westchester IDA (Beth Abraham Hospital) 8.375 12/01/25 1,870 1,887,765
Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/03 1,240 1,264,316
Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,270 3,352,567
- -----------------------------------------------------------------------------------------------------------------
Resource Recovery, Pollution Control Revenue - 9.6%
$207,729,814
Dutchess Res Rec (Solid Waste) 6.800 01/01/10 1,700 1,727,591
Dutchess Res Rec (Solid Waste) 7.000 01/01/10 1,805 1,839,909
Franklin SWMA 6.250 06/01/15 2,195 2,116,419
Franklin SWMA 6.250 06/01/03(p) 1,060 1,153,397
Hemstead IDA (Amer. Ref-Fuel Co.) 7.400 12/01/10 4,110 4,228,039
Islip Res Rec 6.250 07/01/06 2,725 2,938,340
Islip Res Rec 6.500 07/01/09 2,000 2,162,660
NYS Environ. (Huntington) 7.500 10/01/12 58,860 62,087,294
Onondaga Res Rec 6.875 05/01/06 27,850 28,173,896
Onondaga Res Rec 7.000 05/01/15 71,245 72,155,511
Peekskill IDA (Karta) 9.000 07/01/10 1,834 1,917,274
Ulster County Res Rec 6.000 03/01/14 1,250 1,178,250
Warren/Washington IDA (Res Rec) 8.000 12/15/12 8,730 8,569,455
Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,965 8,960,786
Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,525 8,520,993
- -----------------------------------------------------------------------------------------------------------------
Electric and Gas Utilities - 7.7%
$166,167,040
American Samoa Power Auth. 6.800 09/01/00 400 416,100
American Samoa Power Auth. 6.850 09/01/01 400 415,968
American Samoa Power Auth. 6.900 09/01/02 400 416,216
American Samoa Power Auth. 6.950 09/01/03 500 520,515
American Samoa Power Auth. 7.000 09/01/04 500 521,065
American Samoa Power Auth. 7.100 09/01/01 800 840,552
American Samoa Power Auth. 7.200 09/01/02 800 844,200
Guam Power Auth. 6.750 10/01/24 4,780 4,901,986
NYS ERDA (Brooklyn Union Gas) 7.000 12/01/20 50 51,624
</TABLE>
10
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS ERDA (Brooklyn Union Gas) 7.125% 12/01/20 $ 180 $ 185,114
NYS ERDA (Brooklyn Union Gas) RIBS 7.346(f) 07/08/26 3,000 2,531,250
NYS ERDA (Brooklyn Union Gas) RIBS 8.755(f) 04/01/20 7,000 7,148,750
NYS ERDA (Brooklyn Union Gas) RIBS 9.927(f) 07/01/26 10,300 11,587,500
NYS ERDA (Con Ed) 6.375 12/01/27 2,000 2,010,540
NYS ERDA (Con Ed) 7.125 03/15/22 430 442,023
NYS ERDA (Con Ed) 7.250 11/01/24 8,485 8,940,220
NYS ERDA (Con Ed) 7.375 07/01/24 20,500 21,608,845
NYS ERDA (Con Ed) 7.500 11/15/21 1,250 1,285,950
NYS ERDA (Con Ed) 7.500 07/01/25 25 26,840
NYS ERDA (Con Ed) 7.750 01/01/24 4,000 4,214,200
NYS ERDA (LILCO) 7.150 09/01/19 9,790 9,663,220
NYS ERDA (LILCO) 7.150 06/01/20 15,200 15,003,464
NYS ERDA (LILCO) 7.150 12/01/20 7,000 6,909,560
NYS ERDA (LILCO) 7.150 02/01/22 10,920 10,780,224
NYS ERDA (LILCO) 7.150 02/01/22 2,000 1,974,400
NYS ERDA (LILCO) 7.150 09/01/19 15,000 14,805,750
NYS ERDA (Niagara Power) 8.875 11/01/25 18,140 18,606,017
NYS ERDA (RG&E) 8.375 12/01/28 95 102,018
Puerto Rico Electric 6.000 07/01/14 60 58,800
Puerto Rico Electric LEVRRS 8.288(f) 07/01/23 12,800 12,592,000
V. I. Water & Power Auth. 7.400 07/01/11 6,465 6,762,131
- -----------------------------------------------------------------------------------------------------------------
Housing, Single Family - 7.3%
$158,199,490
NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/98 95 78,313
NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/14 30 5,545
NYS (SONYMA) Mortgage, 2nd Series 0.000 10/01/14 13,170 2,362,040
NYS (SONYMA) Mortgage, 6th Series 0.000(c) 04/01/10 2,575 2,609,325
NYS (SONYMA) Mortgage, 7th Series 0.000(c) 10/01/14 1,915 1,681,485
NYS (SONYMA) Mortgage, 8th Series A 6.875 04/01/17 115 118,302
NYS (SONYMA) Mortgage, 8th Series C 8.300 10/01/06 35 35,581
NYS (SONYMA) Mortgage, 8th Series C 8.400 10/01/17 170 176,123
NYS (SONYMA) Mortgage, 8th Series D 8.200 10/01/06 100 103,600
NYS (SONYMA) Mortgage, 8th Series E 8.100 10/01/17 80 82,863
NYS (SONYMA) Mortgage, 8th Series F 8.000 10/01/17 35 36,880
NYS (SONYMA) Mortgage, 9th Series A 7.300 04/01/17 225 230,337
NYS (SONYMA) Mortgage, 9th Series B 8.300 10/01/17 25 25,852
NYS (SONYMA) Mortgage, 9th Series E 8.375 04/01/18 20 20,755
NYS (SONYMA) Mortgage, Series 12 0.000(c) 04/01/17 685 632,632
NYS (SONYMA) Mortgage, Series 27 6.450 04/01/04 25 26,428
NYS (SONYMA) Mortgage, Series 28 6.650 04/01/22 10,000 10,283,100
NYS (SONYMA) Mortgage, Series 28 7.050 10/01/23 8,615 9,010,945
NYS (SONYMA) Mortgage, Series 30-A 4.375 10/01/23 15 13,050
NYS (SONYMA) Mortgage, Series 30-B 6.650 10/01/25 14,005 14,345,882
NYS (SONYMA) Mortgage, Series 36-A 6.625 04/01/25 11,500 11,789,455
</TABLE>
11
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS (SONYMA) Mortgage, Series 38 RITES 8.414%(f) 04/01/25 $ 13,980 $12,791,700
NYS (SONYMA) Mortgage, Series 40-A 6.700 04/01/25 6,560 6,755,882
NYS (SONYMA) Mortgage, Series 40-B 6.600 04/01/25 5,745 5,880,467
NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 13,600 13,972,640
NYS (SONYMA) Mortgage, Series 44 7.500 04/01/26 12,000 12,891,840
NYS (SONYMA) Mortgage, Series 46 6.650 10/01/25 18,740 19,273,715
NYS (SONYMA) Mortgage, Series 50 6.625 04/01/25 7,550 7,756,417
NYS (SONYMA) Mortgage, Series 52 6.100 04/01/26 2,000 1,943,680
NYS (SONYMA) Mortgage, Series BB-2 7.950 10/01/15 150 157,761
NYS (SONYMA) Mortgage, Series EE-1 8.000 10/01/10 45 47,378
NYS (SONYMA) Mortgage, Series EE-2 7.450 10/01/10 95 100,386
NYS (SONYMA) Mortgage, Series EE-2 7.500 04/01/16 40 42,876
NYS (SONYMA) Mortgage, Series EE-3 7.700 10/01/10 275 291,852
NYS (SONYMA) Mortgage, Series EE-3 7.750 04/01/16 15 16,031
NYS (SONYMA) Mortgage, Series EE-4 7.750 10/01/10 95 102,259
NYS (SONYMA) Mortgage, Series GG 8.125 10/01/17 105 106,841
NYS (SONYMA) Mortgage, Series HH-2 7.600 10/01/21 20 20,500
NYS (SONYMA) Mortgage, Series HH-2 7.700 10/01/09 420 436,309
NYS (SONYMA) Mortgage, Series HH-2 7.850 04/01/22 40 42,788
NYS (SONYMA) Mortgage, Series HH-3 7.600 10/01/21 115 115,721
NYS (SONYMA) Mortgage, Series HH-3 7.875 10/01/09 285 303,052
NYS (SONYMA) Mortgage, Series HH-3 7.950 04/01/22 490 519,312
NYS (SONYMA) Mortgage, Series HH-4 8.050 04/01/22 65 69,283
NYS (SONYMA) Mortgage, Series II 0.000 10/01/08 120 48,484
NYS (SONYMA) Mortgage, Series II 0.000 10/01/07 100 43,679
NYS (SONYMA) Mortgage, Series II 0.000 04/01/08 170 71,414
NYS (SONYMA) Mortgage, Series II 0.000 04/01/20 1,285 206,410
NYS (SONYMA) Mortgage, Series II 0.000 10/01/09 180 67,271
NYS (SONYMA) Mortgage, Series II 0.000 01/01/06 90 44,396
NYS (SONYMA) Mortgage, Series II 0.000 04/01/05 100 53,303
NYS (SONYMA) Mortgage, Series JJ 7.500 10/01/17 425 448,626
NYS (SONYMA) Mortgage, Series KK 7.625 04/01/19 140 149,036
NYS (SONYMA) Mortgage, Series KK 7.800 10/01/20 230 245,497
NYS (SONYMA) Mortgage, Series MM-1 7.500 04/01/13 70 73,810
NYS (SONYMA) Mortgage, Series MM-1 7.750 10/01/05 25 26,543
NYS (SONYMA) Mortgage, Series MM-2 7.700 04/01/05 100 109,132
NYS (SONYMA) Mortgage, Series NN 7.550 10/01/17 60 63,976
NYS (SONYMA) Mortgage, Series RR 7.700 10/01/10 105 112,829
NYS (SONYMA) Mortgage, Series RR 7.750 10/01/17 80 85,957
NYS (SONYMA) Mortgage, Series SS 7.500 10/01/19 305 311,323
NYS (SONYMA) Mortgage, Series TT 6.950 10/01/02 5 5,372
NYS (SONYMA) Mortgage, Series UU 7.150 10/01/22 115 117,530
NYS (SONYMA) Mortgage, Series UU 7.750 10/01/23 1,365 1,437,127
NYS (SONYMA) Mortgage, Series VV 0.000 10/01/23 115,222 15,725,499
NYS (SONYMA) Mortgage, Series VV 7.375 10/01/11 195 207,264
</TABLE>
12
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Puerto Rico HFA 0.000% 08/01/26 $ 8,690 $ 1,114,493
Puerto Rico HFA 7.650 10/15/22 20 21,343
V. I. HFA 6.450 03/01/16 100 101,998
- -----------------------------------------------------------------------------------------------------------------
Transportation - 6.9%
$148,022,542
Albany IDA (Port of Albany) 7.250 02/01/24 1,395 1,467,373
Guam Airport 6.600 10/01/10 3,675 3,698,520
Guam Airport 6.700 10/01/23 55,730 56,469,537
Monroe County Airport 7.250 01/01/19 20 20,989
MTA YCR 6.476(f) 07/01/22 3,000 2,576,250
MTA YCR 6.476(f) 07/01/13 9,400 8,518,750
MTA (Transit) IVRC 7.450(f) 07/01/11 10,000 9,400,000
NYC IDA (Amer. Airlines) 6.900 08/01/24 16,685 17,489,050
NYC IDA (Amer. Airlines) 7.750 07/01/19 1,795 1,889,597
NYC IDA (Amer. Airlines) 8.000 07/01/20 7,110 7,525,366
NYS Thruway 0.000 01/01/05 260 156,707
NYS Thruway 0.000 01/01/04 2,000 1,288,720
NYS Thruway 0.000 01/01/03 1,000 687,530
Port Auth. NY/NJ (US Air) 9.000 12/01/10 495 547,935
Port Auth. NY/NJ (US Air) 9.000 12/01/06 7,025 7,776,254
Port Auth. NY/NJ (US Air) 9.125 12/01/15 22,310 24,801,581
Port Auth. NY/NJ, 62nd Series 8.000 12/01/23 175 182,394
Port Auth. NY/NJ, 65th Series 7.000 09/01/24 290 298,668
Port Auth. NY/NJ, 65th Series 7.000 09/01/24 670 688,894
Port Auth. NY/NJ, 66th Series 7.250 09/01/24 425 437,414
Port Auth. NY/NJ, 68th Series 7.250 02/15/25 45 48,132
Port Auth. NY/NJ, 70th Series 7.250 08/01/25 15 15,954
Port Auth. NY/NJ, 76th Series 6.500 11/01/26 60 60,835
Port Auth. NY/NJ, Series 51 0.000(c) 12/01/14 25 23,800
Puerto Rico Port Auth. 7.300 07/01/07 30 30,600
Puerto Rico Port Auth. (Amer. Airlines) 6.250 06/01/26 150 144,747
V. I. Port Auth. (CEK Airport) 8.100 10/01/05 1,670 1,776,947
- -----------------------------------------------------------------------------------------------------------------
Government and Public Facilities - 4.9%
$105,033,118
Albany IDA (Upper Hudson Library) 8.750 05/01/07 230 240,023
Albany IDA (Upper Hudson Library) 8.750 05/01/22 955 1,029,710
Albany Parking Auth. 0.000 11/01/17 1,770 463,315
Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,330 1,407,858
Carnegie Redevelopment Corp. 7.000 09/01/21 500 511,270
Clifton Park COP (Clifton Commons) 8.500 08/01/08 15 15,600
Monroe COP 8.050 01/01/11 490 530,900
NYS COP (BOCES) 7.875 10/01/00 1,120 1,175,048
NYS COP (Hanson Redevelopment) 8.250 11/01/01 250 266,780
NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 31,550 36,804,022
NYS LGSC (SCSB) 7.375 12/15/16 810 803,204
</TABLE>
13
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYS UDC 0.000% 01/01/03 $ 15 $ 10,313
NYS UDC 0.000 01/01/11 98,080 38,882,835
NYS UDC 0.000 01/01/08 900 459,378
NYS UDC 0.000 01/01/11 80 33,835
NYS UDC 0.000 01/01/10 5,590 2,424,663
NYS UDC 7.000 05/01/14 575 587,529
NYS UDC 7.500 01/01/01(p) 2,000 2,263,240
NYS UDC 9.375 09/01/99 555 562,826
Schroon Lake Fire District 7.250 03/01/09 580 592,342
Troy IDA (City of Troy) 8.000 03/15/12 3,250 2,946,190
Troy IDA (City of Troy) 8.000 03/15/22 13,250 12,029,145
Vigilant EHL (Thomatson) 7.500 11/01/12 950 993,092
- -----------------------------------------------------------------------------------------------------------------
Water and Telephone Utilities - 4.3%
$93,646,321
Erie County Water Revenue 4th Series 0.000 12/01/17 13,590 2,942,235
Montgomery IDA (Amsterdam) 7.250 01/15/19 5,860 5,969,758
NYC Municipal Water Finance Auth. IVRC 8.342(f) 06/15/17 30,000 29,962,500
NYS Environ. (Consolidated Water) 7.150 11/01/14 1,840 1,926,425
NYS Environ. (L.I. Water) 10.000 10/01/17 500 538,570
NYS Environ. (NYS Water Services) 8.375 01/15/20 7,500 8,230,950
Puerto Rico Telephone Auth. RIBS 6.965(f) 01/01/15 16,550 14,936,375
Puerto Rico Telephone Auth. RIBS 7.950(f) 01/01/20 15,000 14,756,250
St. Lawrence County (SWDA) 8.250 01/01/02 10 10,722
St. Lawrence County (SWDA) 8.875 01/01/08 100 106,199
Suffolk IDA (Ocean Park Water ) 7.500 11/01/22 715 760,939
V.I. Water & Power Auth. 7.600 01/01/12 6,850 7,364,504
V.I. Water & Power Auth. 8.500 01/01/10 5,700 6,140,895
- -----------------------------------------------------------------------------------------------------------------
Manufacturing, Durable Goods - 3.3%
$71,727,231
Brookhaven IDA (Farber) 6.188(e) 12/01/02 870 870,000
Brookhaven IDA (Farber) 6.188(e) 12/01/04 490 490,000
Brookhaven IDA (Modular Devices) 7.375 11/01/96 235 236,283
Broome IDA (Simulator) 8.250 01/01/02 895 944,771
Cattaraugus IDA (Cherry Creek) 9.800 09/01/10 2,045 2,285,778
Chautauqua IDA (Dunkirk Glass) 11.500 12/01/10 7,900 8,410,103
City of Port Jervis (Future Home Tech.) 10.000 11/01/08 750 780,600
Cortland IDA (Paul Bunyon Products) 8.000 07/01/00 120 127,688
Erie IDA (Great Lakes Orthodontic) 12.099 05/01/00 132 145,723
Monroe IDA (Brazill Merk) 7.900 12/15/14 3,080 3,296,986
Monroe IDA (Melles Griot) 9.500 12/01/09 1,620 1,700,627
Monroe IDA (RTM Turbine) 7.750 12/01/06 3,490 3,449,237
Monroe IDA (RTM Turbine) 8.000 12/01/11 3,060 3,015,814
Monroe IDA (RTM Turbine) 8.500 12/01/16 770 745,599
Nassau IDA (RJS Scientific) 8.050 12/01/05 355 377,638
Nassau IDA (RJS Scientific) 9.050 12/01/25 2,700 2,940,786
</TABLE>
14
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nassau IDA (Structural Industries) 7.750% 02/01/12 $ 500 $ 526,185
NYC IDA (Display Creations) 9.250 06/01/97(b) 2,000 2,026,980
NYC IDA (HiTech Res Rec) 8.750 08/01/00 400 417,716
NYC IDA (HiTech Res Rec) 9.250 08/01/08 695 721,493
NYC IDA (House of Spices) 9.000 10/15/01 565 614,245
NYC IDA (House of Spices) 9.250 10/15/11 2,140 2,349,592
NYC IDA (Koenig Iron Works) 8.375 12/01/25 1,675 1,635,906
NYC IDA (Nekboh) 9.625 05/01/11 5,955 6,274,784
NYC IDA (Novelty Cord & Tassel) 8.663(e) 12/01/06 677 688,932
NYC IDA (Penguin Air Conditioning) 12.222 12/01/99 194 204,629
NYC IDA (Pop Display) 6.750 12/15/04 1,260 1,256,585
NYC IDA (Pop Display) 7.900 12/15/14 2,645 2,719,748
NYC IDA (Priority Mailers) 9.000 03/01/10 1,795 1,951,219
NYC IDA (Sequins International) 8.500 04/30/00 405 433,516
NYC IDA (Sequins International) 8.950 01/30/16 4,555 5,071,446
NYC IDA (Ultimate Display) 8.750 10/15/00 365 389,707
NYC IDA (Ultimate Display) 9.000 10/15/11 1,910 2,067,441
Onondaga IDA (Coltec) 7.250 06/01/08 525 530,250
Onondaga IDA (Coltec) 9.875 10/01/10 750 778,125
Onondaga IDA (Gear Motion) 8.400 12/15/01 670 688,948
Onondaga IDA (Gear Motion) 8.900 12/15/11 1,730 1,861,445
Peekskill IDA (Wenco) 8.875 12/01/08 1,085 1,118,266
Rensselaer IDA (MMP) 8.500 12/15/02 20 20,885
Suffolk IDA (Fil-Coil) 9.000 12/01/15 445 440,697
Suffolk IDA (Fil-Coil) 9.250 12/01/25 1,060 1,048,722
Suffolk IDA (Marbar Assoc.) 8.300 03/01/08 190 197,600
Suffolk IDA (Marbar Assoc.) 8.300 03/01/09 190 196,213
Suffolk IDA (Microwave Power) 7.750 06/30/02 345 354,708
Suffolk IDA (Microwave Power) 8.500 06/30/22 4,320 4,565,894
Syracuse IDA (Piscitell Stone) 8.400 12/01/11 705 757,720
- -----------------------------------------------------------------------------------------------------------------
NonProfit, Other - 3.2%
$68,835,577
Albany IDA (Albany Rehab.) 8.375 06/01/23 1,035 1,062,252
Columbia IDA (Berkshire Farms) 6.900 12/15/04 830 858,793
Columbia IDA (Berkshire Farms) 7.500 12/15/14 1,855 1,960,642
Geneva IDA (FLCP) 8.250 11/01/04 835 893,183
Monroe IDA (Al Sigl Center) 7.250 12/15/15 1,590 1,571,954
Monroe IDA (DePaul CF) 6.450 02/01/14 880 920,506
Monroe IDA (DePaul CF) 6.500 02/01/24 1,285 1,336,336
Monroe IDA (DePaul Properties) 8.300 09/01/02 530 562,839
Monroe IDA (DePaul Properties) 8.800 09/01/21 4,605 4,826,040
NYC IDA (BHMS) 8.400 09/01/02 260 265,889
NYC IDA (BHMS) 8.900 09/01/11 660 691,112
NYC IDA (BHMS) 9.200 09/01/21 1,690 1,805,123
NYC IDA (Blood Center) 7.200 05/01/04(p) 500 559,750
</TABLE>
15
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYC IDA (Blood Center) 7.250% 05/01/04(p) $ 3,000 $ 3,411,300
NYC IDA (CCM) 7.875 12/01/16 1,770 1,776,655
NYC IDA (CCM) 8.000 12/01/11 2,055 2,061,001
NYC IDA (EPG) 7.500 07/30/03 10,355 11,146,433
NYC IDA (Fund for NYC Project) 7.625 07/01/10 1,000 1,063,460
NYC IDA (Graphic Artists) 8.250 12/30/23 1,295 1,331,441
NYC IDA (JBFS) 6.750 12/15/12 6,040 6,148,660
NYC IDA (Lighthouse) 6.500 07/01/22 1,000 1,020,280
NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,300 1,289,301
NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,400 4,365,240
NYC IDA (OHEL) 8.250 03/15/23 3,435 3,474,606
NYC IDA (PRFFP) 7.000 10/01/16 815 863,272
NYC IDA (Psycho Therapy) 9.625 04/01/10 770 837,491
NYC IDA (St. Bernard's School) 7.000 12/01/21 5,115 5,137,915
NYC IDA (St. Christoper Ottilie) 7.500 07/01/21 4,100 4,372,240
NYC IDA (UN School) 6.350 12/01/15 1,000 963,370
Westchester IDA (JBFS) 6.750 12/15/12 2,220 2,258,495
- -----------------------------------------------------------------------------------------------------------------
NonProfit, Higher Education - 3.1%
$66,267,262
Allegany IDA (Alfred University) 7.500 09/01/11 10,070 10,820,014
Brookhaven IDA (Dowling College) 6.750 03/01/23 6,965 7,138,498
Cattaraugus IDA (St. Bonaventure) 8.300 12/01/10 9,155 10,050,542
Dutchess IDA (Bard College) 7.000 11/01/17 3,500 3,698,450
Erie IDA (Medaille College) 8.000 12/30/22 3,230 3,467,534
Monroe IDA (Roberts Wesleyan) 6.700 09/01/11 2,625 2,640,750
New Rochelle IDA (CNR) 6.750 07/01/22 3,000 3,100,020
NYC IDA (MMC) 7.000 07/01/23 3,700 3,775,406
NYS Dorm (State University) 0.000 05/15/07 50 25,785
NYS Dorm (State University) 7.000 05/15/16 215 231,792
Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5 4,599
Rockland IDA (DC) 8.000 03/01/13 2,090 2,240,250
Suffolk IDA (Dowling College) 6.625 06/01/24 2,000 2,025,240
Suffolk IDA (Dowling College) 6.700 12/01/20 1,870 1,883,202
Suffolk IDA (Dowling College) 8.250 12/01/20 980 1,081,616
University of V. I. 7.250 10/01/04 1,205 1,229,004
University of V. I. 7.700 10/01/19 3,570 3,876,020
University of V. I. 7.750 10/01/24 5,175 5,617,618
Yates IDA (Keuka College) 8.750 08/01/15 2,000 2,165,500
Yates IDA (Keuka College) 9.000 08/01/11 1,095 1,195,422
- -----------------------------------------------------------------------------------------------------------------
Adult Living Facilities - 3.0%
$65,450,816
Batavia Hsg. Auth. (Trocaire Place) 8.750 04/01/25 3,850 4,004,193
Middleton IDA (Southwinds) 8.375 03/01/18 3,740 3,730,014
Orange IDA (Glen Arden) 8.250 01/01/02 18,025 18,574,402
Orange IDA (Glen Arden) 8.875 01/01/25 23,985 25,492,697
</TABLE>
16
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tompkins IDA (Kendall at Ithaca) 7.625% 06/01/09 $ 925 $ 928,848
Tompkins IDA (Kendall at Ithaca) 7.875 06/01/24 5,465 5,484,893
Tompkins IDA (Kendall at Ithaca) 7.875 06/01/15 2,790 2,813,855
Union Hsg. Auth. (Methodist Homes) 7.625 11/01/16 1,585 1,677,802
Union Hsg. Auth. (Methodist Homes) 8.050 04/01/99 105 110,879
Union Hsg. Auth. (Methodist Homes) 8.150 04/01/00 110 117,389
Union Hsg. Auth. (Methodist Homes) 8.250 04/01/01 120 128,257
Union Hsg. Auth. (Methodist Homes) 8.350 04/01/02 150 160,569
Union Hsg. Auth. (Methodist Homes) 8.500 04/01/12 2,010 2,227,020
- -----------------------------------------------------------------------------------------------------------------
NonProfit, Special Education - 2.1%
$44,393,059
Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 640 674,810
Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,220 3,499,818
Columbia IDA (ARC) 7.750 06/01/05 765 804,099
Columbia IDA (ARC) 8.650 06/01/18 2,610 2,718,994
Islip IDA (Leeway School) 9.000 08/01/21 980 1,033,763
Montgomery IDA (New Dimension) 8.900 05/01/16 1,095 1,178,450
Nassau IDA (ACLDD) 8.125 10/01/22 2,725 2,762,414
NYC IDA (Eden II) 7.750 06/01/04 450 463,347
NYC IDA (Eden II) 8.750 06/01/19 2,505 2,632,805
NYC IDA (Hebrew Academy) 10.000 03/01/21 2,315 2,547,820
NYC IDA (Summit School) 7.250 12/01/04 205 208,034
NYC IDA (Summit School) 8.250 12/01/24 1,485 1,502,672
Orange IDA (Mental) 6.125 05/01/16 500 497,110
Orange IDA (Mental) 7.800 07/01/11 495 539,050
Saratoga IDA (ARC) 8.400 03/01/13 1,395 1,426,541
Suffolk IDA (Devel. Disabilities) 7.375 03/01/03 1,035 1,047,037
Suffolk IDA (Devel. Disabilities) 8.750 03/01/23 9,675 10,152,074
Wayne IDA (ARC) 7.250 03/01/03 515 522,792
Wayne IDA (ARC) 8.375 03/01/18 2,925 2,981,160
Westchester IDA (Clearview School) 9.375 01/01/21 1,530 1,653,287
Westchester IDA (JDAM) 6.750 04/01/16 1,560 1,566,568
Yonkers IDA (Westchester) 7.375 12/30/03 435 443,078
Yonkers IDA (Westchester) 8.750 12/30/23 3,375 3,537,337
- -----------------------------------------------------------------------------------------------------------------
Private Lease Revenue - 1.2%
$26,425,866
Albany IDA (Kenwood Assoc.) 9.250(d) 09/01/10 2,735 2,256,266
Broome IDA (Industrial Park) 7.550 12/01/00 190 195,700
Broome IDA (Industrial Park) 7.600 12/01/01 195 200,850
Erie IDA (Air Cargo) 8.250 10/01/07 1,535 1,573,805
Erie IDA (Air Cargo) 8.500 10/01/15 2,380 2,460,825
Fulton IDA (Crossroads Incubator) 8.500 12/15/98(a) 160 162,400
Hudson IDA (Northside) 9.000 12/01/09 475 516,420
Islip IDA (WJL Realty) 7.800 03/01/03 50 53,069
Islip IDA (WJL Realty) 7.850 03/01/04 100 106,299
</TABLE>
17
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Islip IDA (WJL Realty) 7.900% 03/01/05 $ 100 $ 106,460
Islip IDA (WJL Realty) 7.950 03/01/10 500 531,585
Monroe IDA (Canal Ponds) 7.000 06/15/13 900 951,048
Monroe IDA (Cottrone Devel.) 9.500 12/01/10 2,398 2,588,975
Monroe IDA (Morrell/Morrell) 7.000 12/01/07 2,284 2,283,566
Monroe IDA (West End Business) 6.750 12/01/04 80 80,280
Monroe IDA (West End Business) 6.750 12/01/04 155 155,543
Monroe IDA (West End Business) 6.750 12/01/04 625 627,181
Monroe IDA (West End Business) 8.000 12/01/14 345 361,039
Monroe IDA (West End Business) 8.000 12/01/14 170 177,905
Monroe IDA (West End Business) 8.000 12/01/14 515 538,942
Monroe IDA (West End Business) 8.000 12/01/14 1,375 1,438,924
Niagara IDA (Maryland Maple) 10.250 11/15/09 1,130 1,225,293
NYC IDA (ALA Realty) 7.500 12/01/10 1,035 1,059,033
NYC IDA (ALA Realty) 8.375 12/01/15 1,450 1,502,389
Suffolk IDA (Rimland Facilities) 6.188(e) 12/01/09 1,670 1,619,900
Syracuse IDA (Rockwest Center II) 7.625 12/01/10 980 984,439
Syracuse IDA (Rockwest Center II) 8.625 12/01/15 1,470 1,476,527
Syracuse IDA (Rockwest Center I) 8.000 06/01/13 1,150 1,191,205
- -----------------------------------------------------------------------------------------------------------------
Manufacturing, Non-Durable Goods - 0.7%
$16,185,247
Herkimer IDA (Burrows Paper) 8.000 01/01/09 1,440 1,506,528
Middleton IDA (Fleurchem) 8.000 12/01/16 905 908,720
Monroe IDA (Cohber) 7.550 12/01/01 10 10,504
Monroe IDA (Cohber) 7.650 12/01/02 10 10,526
Monroe IDA (Cohber) 7.700 12/01/03 10 10,537
Monroe IDA (Cohber) 7.850 12/01/09 170 179,500
NYC IDA (Amster Novelty) 8.000 12/01/10 530 524,822
NYC IDA (Amster Novelty) 8.375 12/01/15 790 783,214
NYC IDA (Promotional Slideguide) 7.500 12/01/10 710 688,927
NYC IDA (Promotional Slideguide) 7.875 12/01/15 1,065 1,031,069
NYC IDA (Streamline Plastics) 7.750 12/01/15 585 589,311
NYC IDA (Streamline Plastics) 8.125 12/01/25 1,275 1,284,512
NYC IDA (Visy Paper) 7.950 01/01/28 4,000 4,130,880
Putnam IDA (Brewster Plastics) 8.500 12/01/16 1,990 2,004,567
Ulster IDA (Brooklyn Bottling) 7.800 06/30/02 530 542,996
Ulster IDA (Brooklyn Bottling) 8.600 06/30/22 1,915 1,978,635
</TABLE>
18
<PAGE>
Rochester Fund Municipals
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Service Companies - 0.7%
$14,931,821
Albany IDA (Albany Golf) 7.500% 05/01/12 $ 400 $ 413,232
Auburn IDA (Wegmans) 7.250 12/01/98 155 156,893
Dutchess IDA (Merchants Press) 7.950(d) 06/30/02 1,640 1,531,383
Dutchess IDA (Merchants Press) 9.000(d) 06/30/22 4,590 4,163,819
Erie IDA (Affordable Hospitality) 9.250 12/01/15 3,690 3,728,819
Monroe IDA (De Carolis) 7.500 01/30/05 420 414,370
Niagara IDA (Sevenson Hotel) 6.600 05/01/07 1,900 1,919,722
NYC IDA (Loehmann's) 9.500 12/31/04 845 863,522
Syracuse IDA (Genesee Inn) 10.000(d) 05/01/05 2,701 675,183
Yonkers Parking Auth. 7.750 12/01/04 1,035 1,064,880
Total municipal bond investments, at value (cost $2,090,642,214) - 98.9% $2,135,849,836
- ------------------------------------------------------------------------------------------------------------------
Other assets and liabilities (net) - 1.1% 24,679,345
---------------
Net assets - 100.0% $2,160,529,181
===============
</TABLE>
(a) Date of mandatory put; final maturity 12/15/08.
(b) Date of mandatory put; final maturity 06/01/08.
(c) Security will convert to a fixed coupon at a future date prior to maturity.
(d) Non-income accruing security.
(e) Variable rate security that fluctuates as a percentage of prime rate.
(f) Interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
June 30, 1996.
(p) Date of pre-refunded call.
See accompanying Notes to Financial Statements.
19
<PAGE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of Rochester Fund Municipals' holdings in the Statement
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 ITEME Industrial Tourist Educational Medical
and Developmental Disabilities and Environmental
ARC Association of Retarded Citizens IVRC Inverse Variable Rate Certificate
ASSC Annie Schaffer Senior Center JBFS Jewish Board of Family Services
BHMS Brooklyn Heights Montessori School JDAM Julia Dyckman Angus Memorial
BOCES Board of Cooperative Educational Services LEVRRS Leveraged Reverse Rate Security
CARS Complimentary Auction Rate Security LGSC Local Government Services Corporation
CCM Comprehensive Care Management L.I. Long Island
CDC Community Development Corporation LILCO Long Island Lighting Corporation
CEK Cyril E. King MMC Marymount Manhattan College
CF Community Facilities MMP Millbrook Millwork Project
CGH Community General Hospital MTA Metropolitan Transit Authority
CNR College of New Rochelle PRFFP Puerto Rico Family Foundation Project
COP Certificate of Participation Res Rec Resource Recovery Facility
DC Dominican College RGH Rochester General Hospital
EHC Elderly Housing Corporation RG&E Rochester Gas & Electric
EHL Engine Hook and Ladder RIBS Residual Interest Bonds
EPG Elmhurst Parking Garage RITES Residual Interest Tax Exempt Security
ERDA Energy Research and SCSB Schuyler Community Services Board
Development Authority SONYMA State of New York Mortgage Agency
E,E&T Ear, Eye and Throat SWDA Solid Waste Disposal Authority
FLCP Finger Lakes Cerebral Palsy SWMA Solid Waste Management Authority
GO General Obligation TEMEC Tourist, Educational, Medical and
HB&F Housing Bank and Finance Environmental Control
HDC Housing Development Corporation UDC Urban Development Corporation
HELP Homeless Economic Loan Program UFA Utica Free Academy
HFA Housing Finance Agency UN United Nations
HFC Housing Finance Corporation WWH Wyandach/Wheatley Heights
HHRH Historic Hudson River Heritage YCN Yield Curve Note
H&N Hospital and Nursing YCR Yield Curve Receipt
IDA Industrial Development Authority V. I. United States Virgin Islands
</TABLE>
================================================================================
<TABLE>
ASSET COMPOSITION TABLE--June 30, 1996
(Unaudited) (As a percentage of total investments)
<CAPTION>
Percentage
Rating of Investments
- -------- --------------
<S> <C> <C>
AAA 17.1% All unrated bonds are backed by mortgage liens and guarantees by the
AA 14.5% issuer. Bonds which are backed by a letter of credit or by other financial
A 23.9% institutions or agencies may be assigned an investment grade rating by the
BBB 25.0% Manager, which reflects the quality of the guarantor, institution or
BB 5.0% agency. Unrated bonds may also be assigned a rating when the issuer has
B 2.3% rated bonds outstanding with comparable credit characteristics which allow
CCC 0.0% for rating. The unrated bonds in the portfolio are predominantly smaller
CC 0.0% issuers which have not applied for a bond rating. Only those unrated bonds
C 0.0% which subsequent to purchase have not been designated investment grade are
Not Rated 12.2% included in the "Not Rated" category. For further information see "Credit
----- Quality" in the Prospectus.
Total 100.0%
=====
</TABLE>
20
<PAGE>
ROCHESTER FUND MUNICIPALS
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES--June 30, 1996 (Unaudited)
ASSETS
Investments,at value
(Cost $2,090,642,214) $2,135,849,836
Cash 907
Receivables:
Interest 37,473,702
Shares of beneficial interest sold 7,062,299
Investments sold 3,781,061
Other 74,964
--------------
Total assets 2,184,242,769
--------------
LIABILITIES
Payables and other liabilities:
Demand note payable to bank
(interest rate 6.25% at 06/30/96) 18,040,000
Investments purchased 2,022,247
Dividends 2,020,912
Shares of beneficial interest redeemed 1,361,766
Other 268,663
--------------
Total liabilities 23,713,588
--------------
NET ASSETS $2,160,529,181
==============
COMPOSITION OF NET ASSETS
Paid-in capital $2,170,090,540
Undistributed net investment income 972,170
Accumulated net realized loss on
investment transactions (55,741,151)
Net unrealized appreciation on investments 45,207,622
--------------
Net assets $2,160,529,181
==============
NET ASSET VALUE PER SHARE
Net asset value and redemption price per share
(based on net assets of $2,160,529,181 and 123,345,065
shares of beneficial interest outstanding) $17.52
==============
Maximum offering price per share (net asset
value plus sales charge of 4.00% of offering price) $18.25
==============
================================================================================
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
INVESTMENT INCOME:
Interest $75,504,105
------------
EXPENSES:
Management fees 5,077,891
Distribution and service plan fees 1,590,913
Transfer and shareholder servicing agent fees 609,597
Accounting service fees 323,216
Shareholder reports 279,451
Trustees' fees and expenses 158,410
Custodian fees and expenses 88,300
Legal and auditing fees 30,620
Registration and filing fees 24,443
Other 51,616
Interest 585,920
-----------
Total expenses 8,820,377
Less expenses paid indirectly (15,065)
-----------
Total net expenses 8,805,312
------------
NET INVESTMENT INCOME 66,698,793
------------
REALIZED AND UNREALIZED LOSS:
Net realized loss on investments (13,187)
Net change in unrealized appreciation
or depreciation on investments (78,220,645)
-----------
Net realized and unrealized loss (78,233,832)
------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ($11,535,039)
============
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1996 Year Ended
(Unaudited) December 31, 1995
---------------- -----------------
INCREASE IN NET ASSETS -
OPERATIONS:
Net investment income $ 66,698,793 $ 125,186,936
Net realized loss (13,187) (10,724,838)
Net change in unrealized appreciation
or depreciation (78,220,645) 222,374,949
-------------- --------------
Net increase (decrease) in net assets
resulting from operations (11,535,039) 336,837,047
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (68,359,623) (124,417,144)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Sold 182,476,634 292,964,245
Dividends and distributions reinvested 35,318,211 67,511,771
Redeemed (122,634,959) (218,931,015)
-------------- --------------
Net increase in net assets resulting from
beneficial interest transactions 95,159,886 141,545,001
-------------- --------------
NET ASSETS:
Total increase 15,265,224 353,964,904
Beginning of period 2,145,263,957 1,791,299,053
-------------- --------------
End of period (including undistributed
net investment income of $972,170
and $2,633,000, respectively) $2,160,529,181 $2,145,263,957
============== ==============
See accompanying Notes to Financial Statements
21
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
FINANCIAL HIGHLIGHTS
<CAPTION>
Six Months
Ended
June 30, 1996 Year Ended December 31,
(Unaudited) 1995 1994 1993 1992 1991
----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $18.18 $16.31 $19.00 $17.65 $0.72 ($0.05)
------ ------ ------ ------ ---- ----
Income (loss) from investment operations:
Net investment income 0.55 1.10 1.13 1.17 1.20 1.20
Net realized and unrealized gain (loss) (0.66) 1.86 (2.68) 1.35 0.64 0.81
------ ------ ------ ------ ---- ----
Total income from investment operations (0.11) 2.96 (1.55) 2.52 1.84 2.01
------ ------ ------ ------ ---- ----
Dividends and distributions to shareholders:
Dividends from net investment income (0.55) (1.09) (1.13) (1.17) (1.20) (1.20)
Undistributed net investment income--
prior year - - (0.01) - - -
Distributions from net realized gain - - - - - (0.04)
------ ------ ------ ------ ---- ----
Total dividends and distributions to
shareholders (0.55) (1.09) (1.14) (1.17) (1.20) (1.24)
------ ------ ------ ------ ---- ----
Net asset value, end of period $17.52 $18.18 $16.31 $19.00 $1.36 $0.72
====== ====== ====== ====== ===== =====
TOTAL RETURN, AT NET ASSET VALUE (a) (0.51%) 18.58% (8.35%) 14.60% 11.19% 12.79%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $2,161 $2,145 $1,791 $1,794 $997 $497
Average net assets (in millions) $2,145 $2,005 $1,847 $1,449 $717 $374
Ratios to average net assets:
Net investment income 6.22%(b) 6.25% 6.43% 6.21% 6.79% 7.12%
Expenses (c) 0.82%(b) 0.82% 0.84% 0.75% 0.84% 0.87%
Expenses (excluding interest)(c)(d) 0.77%(b) 0.78% 0.73% 0.64% 0.70% 0.74%
Portfolio turnover rate(e) 8.87% 14.59% 34.39% 18.27% 29.99% 48.54%
</TABLE>
- --------------------------------------------------------------------------------
(a) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption
at the net asset value calculated on the last business day of the fiscal
period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
(b) Annualized.
(c) Beginning in fiscal 1995, the expense ratios reflect the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not
been adjusted.
(d) During the periods shown above, the Fund's interest expense was
substantially offset by the incremental interest income generated on
bonds purchased with borrowed funds.
(e) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio
securities owned during the period. Securities with a maturity or
expiration date at the time of acquisition of one year or less are
excluded from the calculation. Purchases and sales of investment
securities (excluding short-term securites) for the period ended June
30, 1996 were $250,650,044 and $189,884,027, respectively.
Per share information has been determined on the basis of the weighted
average number of shares outstanding during the period.
See accompanying Notes to Financial Statements.
22
<PAGE>
Rochester Fund Municipals
Notes to Financial Statements
June 30, 1996 (Unaudited)
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.
On January 4, 1996, Rochester Capital Advisors, L.P. (RCA, L.P.), the Fund's
investment adviser, Rochester Fund Distributors, Inc., (RFD), the Fund's
principal underwriter and Rochester Fund Services, Inc. (RFS), the Fund's
shareholder servicing, accounting and pricing agent, consummated a transaction
with OppenheimerFunds, Inc. (the Manager), which resulted in the sale to the
Manager of certain assets of RCA, L.P., RFD and RFS, including the transfer of
the investment advisory agreement and other contracts with the Fund and the use
of the name "The Rochester Funds".
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
Investment Valuation and Transactions. Portfolio securities are valued at the
close of the New York Stock Exchange on each trading day. Long-term debt
securities are valued at the mean between the bid and asked price using
information available from a portfolio pricing service approved by the Board of
Trustees, dealer-supplied valuations provided the Manager is satisfied that the
firm rendering the quotes is reliable and that the quotes reflect current value,
or analysis of various relationships between comparable securities. Securities
for which market quotations are not readily available are valued at fair value
under consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Investment transactions are accounted for on
the date the investments are purchased or sold (trade date). Cost is determined
and realized gains and losses are based upon the specific identification method
for both financial statement and federal income tax purposes. Interest income is
recorded on the accrual basis. In computing net investment income, the Fund
amortizes premiums and accretes original issue discount. For municipal bonds
purchased after April 30, 1993 and subsequently sold at a gain, market discount
is accreted at the time of sale (to the extent of the lesser of the accrued
market discount or the disposition gain) and is treated as taxable income,
rather than capital gain.
Securities Purchased on a When-Issued Basis. Delivery and payment for securities
that have been purchased by the Fund on a forward commitment or when-issued
basis can take place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to market fluctuation
and may increase or decrease in value prior to their delivery. The Fund
maintains, in a segregated account with its custodian, assets with a market
value equal to the amount of its purchase commitments. The purchase of
securities on a when-issued or forward commitment basis may increase the
volatility of the Fund's net asset value to the extent the Fund makes such
purchases while remaining substantially fully invested. As of June 30, 1996, the
Fund had no outstanding when-issued or forward commitments.
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<PAGE>
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At June 30, 1996, the Fund
had available for federal income tax purposes an unused capital loss carryover
of approximately $55,552,000 which expires between 2000 and 2004.
Trustees' Fees and Expenses: 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 the Manager, all but one of the independent trustees
retired effective January 4, 1996. The retirement plan expense, which is
included in trustees' fees and expenses, amounted to $139,000 for the period
ended June 30, 1996. Payments of $13,500 were made to retired trustees during
the six months ended June 30, 1996. 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.
Distributions to Shareholders. Income dividends are declared and recorded each
day the New York Stock Exchange is open for business based on the projected net
investment income for a period, usually one month, calculated as if earned pro
rata throughout the period on a daily basis. Such dividends are paid monthly.
Distributions from net realized gains on investments, if any, are recorded on
the ex-dividend date and paid annually. 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.
Concentration in New York Issuers. There are certain risks arising from
geographic concentration in any state. Certain revenue or tax related events in
a state may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
Expense Offset Arrangements: Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
Other. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
24
<PAGE>
Note 2. Shares of Beneficial Interest:
The Agreement and Declaration of Trust permits the Fund to issue an unlimited
number of shares of beneficial interest, par value $.01 per share. Transactions
in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
---------------- ------------------
<S> <C> <C>
Sold 10,269,741 16,778,524
Dividends and distributions reinvested 1,992,929 3,857,323
Redeemed (6,936,748) (12,475,987)
----------- -----------
Net increase in shares outstanding 5,325,922 8,159,860
Shares outstanding, beginning of period 118,019,143 109,859,283
----------- -----------
Shares outstanding, end of period 123,345,065 118,019,143
=========== ===========
</TABLE>
Note 3. Portfolio Information:
At June 30, 1996, net unrealized appreciation on investments of $45,207,622 was
composed of gross appreciation of $74,210,454, and gross depreciation of
$29,002,832.
The Fund held $309,084,309 in inverse floating rate municipal bonds at June 30,
1996, comprising approximately 14.3% of net assets.
Note 4. Management Fees and Other Transactions With Affiliates:
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee based on an annual
rate of 0.54% of average daily net assets up to $100 million, 0.52% of average
daily net assets in excess of $100 million to $250 million, 0.47% of average
daily net assets in excess of $250 million to $2 billion, 0.46% of average daily
net assets in excess of $2 billion to $5 billion, and 0.45% of average daily net
assets in excess of $5 billion. During 1996, the Fund paid $113,595 to RCA, L.P.
(the former manager) and $4,964,296 to the Manager for management and investment
advisory services.
Accounting fees paid to the Manager were in accordance with the accounting
services agreement with the Fund which provides for an annual fee of $12,000 for
the first $30 million of net assets and $9,000 for each additional $30 million
of net assets. During 1996, the Fund paid $7,180 to RFS (the former accounting
and pricing agent) and $316,036 to the Manager for accounting and pricing
services.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund. The transfer and shareholder servicing
agent fee paid by the Fund is based on an annual maintenance fee of $24.12 for
each shareholder account. During 1996, the Fund paid $13,137 to RFS (the former
shareholder servicing agent) and $596,460 to OFS.
For the six months ended June 30, 1996, commissions (sales charges paid by
investors) totaled $4,819,293, of which $659,859 was retained by
OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the Manager, as
general distributor, and by an affiliated broker/dealer.
25
<PAGE>
The Fund has adopted a Service Plan to reimburse OFDI for a portion of its costs
incurred in connection with the personal service and maintenance of shareholder
accounts. Reimbursement is made monthly at an annual rate that may not exceed
0.25% per annum of average daily net assets of the Fund. Currently, the Board of
Trustees has limited the rate to 0.15% per annum of average daily net assets.
OFDI uses the service fee to reimburse brokers, dealers, banks and other
financial institutions quarterly for providing personal service and maintenance
of accounts of their customers that hold shares of the Fund. During the six
months ended June 30, 1996, OFDI paid $2,527 to an affiliated broker/dealer as
reimbursement for personal service and maintenance expenses.
Note 5. Bank Borrowings:
The Fund may borrow up to 5% of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The Fund has
entered into an agreement which enables it to participate with two other
Rochester Division funds managed by the Manager, in an unsecured line of credit
with a bank which permits borrowings up to $70 million, collectively. Interest
is charged to each fund, based on its borrowings, at a rate equal to the New
York Interbank Offer Rate (NIBOR) plus 0.75%. Borrowings are payable on demand.
The Fund had borrowings of $18,040,000 outstanding at June 30, 1996. For the six
month period ended June 30, 1996, the average monthly loan balance was
$21,514,667 at an average interest rate of 6.185%. The maximum amount of
borrowings outstanding at any month-end was $49,370,000.
26
<PAGE>
ROCHESTER
FUND
[LOGO] MUNICIPALS
The Rochester Funds
A Division of OppenheimerFunds, Inc.
350 Linden Oaks
Rochester, New York 14625-2807
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------------
Officers and Trustees Bridget A Macaskill, Chairman of the Board of Trustees and President
John Cannon, Trustee
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Ronald H. Fielding, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Adele A. Campbell, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- ----------------------------------------------------------------------------------------------------
Investment Advisor OppenheimerFunds, Inc.
- ----------------------------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
- ----------------------------------------------------------------------------------------------------
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
- ----------------------------------------------------------------------------------------------------
Custodian of Citibank, N.A.
Portfolio Securities
- ----------------------------------------------------------------------------------------------------
Independent Accountants Price Waterhouse LLP
- ----------------------------------------------------------------------------------------------------
Legal Counsel Kirkpatrick & Lockhart LLP
</TABLE>
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants. This is a copy of a
report to shareholders of Rochester Fund Municipals. This report must be
preceded or accompanied by a Prospectus of Rochester Fund Municipals. For
material information concerning the Fund, see the Prospectus. Shares of
Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the principal amount
invested.
