ROCHESTER
[LOGO] FUND
MUNICIPALS
Tax-Free Income for New York Investors
Semi-Annual Report
June 30, 1997
[GRAPHIC OMITTED]
MAP
OppenheimerFunds, Inc.
Investment Adviser
[LOGO]OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
[LOGO]OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
OppenheimerFunds Distributor, Inc. -------------------
Rochester Division | BULK RATE |
350 Linden Oaks | U.S. Postage |
Rochester, NY 14625-2807 | Rochester, N.Y. |
| |
| Permit No. 491 |
| |
-------------------
RS0365.001.0897 August 29, 1997
<PAGE>
[LOGO]
OppenheimerFunds
[LOGO] The Rochester Funds
A Division of OppenheimerFunds, Inc.
350 Linden Oaks
Rochester, NY 14625
716 383 1300
July 1, 1997
Dear Fellow Shareholder,
We are extremely pleased to provide the most recent management report for
shareholders of Rochester Fund Municipals. Class A Shares of the Fund not only
continued to provide an attractive level of tax-free income for the first six
months of the year, but they also earned THE TOP SPOT AMONG NEW YORK MUNICIPAL
DEBT FUNDS FOR THE FIVE AND TEN YEAR PERIOD ending 6/30/97 as ranked by Lipper
Analytical Services, Inc. (based on total return)! Class A Shares of Rochester
Fund Municipals were also ranked #3 for the 1 year period ended 6/30/97.
(Lipper calculations do not include sales charges, which, if included, would
affect results. For ten years, there were 24 New York Municipal Debt Funds
ranked, for five years there were 43 funds, and for one year there were 90
funds.) The Fund's Class A Shares have provided average annual total returns for
the 10-year, 5-year, and 1-year periods ended 6/30/97 of 8.37%, 6.39% and 4.62%,
respectively, assuming payment of the maximum initial sales charge of 4.75%.(1)
The dividend yield of Class A Shares of the Fund is 5.8%. Based on a
combined federal and state combined tax bracket of approximately 38%, that is
equivalent to a taxable investment yielding more than 9.4%! The Fund's 30-day
standardized yield is 5.38% as of 6/30/97, and its tax equivalent yield at the
same income and tax bracket is 8.7%.(2)
On March 16, 1997, Rochester Fund Municipals redesignated as "Class A
Shares" all of its shares which had been outstanding prior to that date. Also on
that date, additional classes of shares became available for purchase (Class B
and Class C).(3) These different classes of shares share the same portfolio, but
have varying expenses.
From a management perspective, we have maintained our investment strategy
of buying municipal bond issues that we believe offer a strong potential for
investment return to shareholders. We continue to believe that our philosophies
and strategies can offer long term investors an opportunity to achieve their
financial objectives. Our strategies include:
2
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* A strong commitment to research.
* A diverse portfolio with over 700 different bonds as of June 30,
1997.
* A willingness to include select, unrated bonds which have passed
our stringent credit requirements.(4)
* Dedication and continuous monitoring of portfolio holdings.
Over the long term, Class A Shares of Rochester Fund Municipals have been
able to help many shareholders meet their investment goals. As you know, past
performance is not predictive of future results, the investment return and
principal value of your shares will fluctuate with market conditions and
investors may have a gain or loss when shares are redeemed. But we will continue
to use our strong credit research capabilities in the selection of municipal
securities which we believe will benefit the Fund and its shareholders.
Sincerely,
/s/ RONALD H. FIELDING
------------------------------
Ronald H. Fielding
Portfolio Manager
This letter is prepared for the information of shareholders of Rochester Fund
Municipals. It must be preceded or accompanied by a current prospectus.
(1) For the periods ended 6/30/97, without deducting the maximum initial sales
charge of 4.75%, Class A total returns showing results of hypothetical
investments made on 6/30/87, 6/30/92, and 6/30/96, are 8.90%, 7.43% and 9.84%,
respectively.
(2) Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 6/30/97, divided by the
maximum offering price at the end of the period, compounded semiannually and
then annualized. Falling net asset values may artificially raise yields.
Dividend yield is based on an annualization of the prior monthly distribution
and the maximum offering price on 6/30/97. 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 carry
forward, future net realized capital gain distributions, if any, are taxable as
capital gains.
(3) Performance data is not available for Class B and Class C Shares at this
time (inception date: 3/16/97).
(4) Small issues may be less liquid than equivalent quality larger issues.
Unrated bonds may involve greater credit risk than rated bonds.
3
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FINANCIALS
CONTENTS
STATEMENT OF INVESTMENTS 5
STATEMENT OF ASSETS AND LIABILITIES 24
STATEMENT OF OPERATIONS 25
STATEMENTS OF CHANGES IN NET ASSETS 25
FINANCIAL HIGHLIGHTS 26
NOTES TO FINANCIAL STATEMENTS 28
4
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<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
HOSPITAL/HEALTHCARE -- 13.7%
$344,760,080
Albany IDA (Albany Medical Center) 8.250% 08/01/04 $ 2,825 $ 3,012,947
Beacon IDA (Craig House) 9.000 07/01/11 215 219,838
Bethany Retirement Home 7.450 02/01/24 1,000 1,123,880
Cayuga County COP (Auburn Hospital) 6.000 01/01/21 8,500 8,615,685
Clifton Springs Hospital & Clinic 8.000 01/01/20 3,870 4,117,409
Erie IDA (Mercy Hospital) 6.250 06/01/10 1,355 1,376,450
Groton Community Health 7.450 07/15/21 2,075 2,354,357
Lyons Community Health 6.800 09/01/24 5,350 5,645,588
Monroe IDA (Genesee Hospital) 7.000 11/01/18 14,565 14,743,858
Newark/Wayne Community Hospital 5.875 01/15/33 4,750 4,767,053
NYC Health & Hospital LEVRRS 6.712(f) 02/15/11 26,500 26,665,625
NYS Dorm (Cornwall Hospital) 8.750 07/01/07 675 674,966
NYS Dorm (Department of Health) 6.625 07/01/24 250 270,825
NYS Dorm (Department of Health) 7.250 07/01/11 3,750 4,103,738
NYS Dorm (Department of Health) 7.350 08/01/29 95 99,817
NYS Dorm (Episcopal Health Services) 7.550 08/01/29 95 101,572
NYS Dorm (German Masonic Home) 6.000 08/01/36 2,500 2,531,150
NYS Dorm (Grace Manor Health Care) 6.150 07/01/18 1,000 1,030,220
NYS Dorm (Hebrew Hospital) 5.900 08/01/36 10,285 10,321,717
NYS Dorm (Insured Mtg. Nursing) 6.125 02/01/36 4,200 4,318,860
NYS Dorm (KMH Homes) 6.950 08/01/31 25 26,072
NYS Dorm (L.I. Medical Center) 7.750 08/15/27 25 26,039
NYS Dorm (Manhattan E,E&T) 11.500 07/01/09 1,085 1,092,063
NYS Dorm (Menorah Campus) 6.100 02/01/37 7,400 7,600,688
NYS Dorm (Menorah Campus) 7.300 08/01/16 20 21,929
NYS Dorm (Methodist Hospital) 6.050 02/01/34 7,230 7,450,443
NYS Dorm (Montefiore Hospital) 8.625 07/01/10 90 91,980
NYS Dorm (Presbyterian Hospital) 6.500 08/01/34 2,200 2,327,336
NYS Dorm (RGH) RITES (b) 6.814(f)(c) 08/01/33 12,750 12,208,125
NYS Dorm (St. Vincent Hospital) 7.400 08/01/30 5 5,442
NYS HFA (H&N) 6.875 11/01/11 5 5,104
NYS HFA (H&N) 6.875 11/01/10 9 9,225
NYS HFA (H&N) 7.000 11/01/17 500 510,285
NYS HFA (H&N) 8.000 11/01/08 500 556,205
NYS Medcare (BLH) 7.100 02/15/27 5,630 5,749,300
NYS Medcare (BLH) 7.100 02/15/27 2,355 2,408,364
NYS Medcare (Brookdale Hospital) 6.850 02/15/17 4,600 4,945,000
NYS Medcare (Downtown Hospital) 6.800 02/15/20 2,240 2,399,846
NYS Medcare (H&N) 6.200 02/15/23 95 98,197
NYS Medcare (H&N) 6.375 08/15/29 60 62,197
NYS Medcare (H&N) 6.375 08/15/33 1,000 1,040,250
NYS Medcare (H&N) 6.500 02/15/34 2,235 2,360,763
NYS Medcare (H&N) 6.600 02/15/31 250 265,243
</TABLE>
5
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<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYS Medcare (H&N) 6.650% 08/15/32 $ 12,820 $ 13,512,408
NYS Medcare (H&N) 7.250 02/15/24 50 52,394
NYS Medcare (H&N) 7.250 02/15/12 6,820 6,980,338
NYS Medcare (H&N) 7.400 11/01/16 4,910 5,021,113
NYS Medcare (H&N) 7.625 02/15/23 1,900 1,973,910
NYS Medcare (H&N) 7.700 02/15/18 25 26,013
NYS Medcare (H&N) 7.700 02/15/18 25 26,013
NYS Medcare (H&N) 7.875 08/15/15 485 515,502
NYS Medcare (H&N) 8.000 02/15/27 12,075 12,369,751
NYS Medcare (H&N) 9.000 02/15/26 2,120 2,133,314
NYS Medcare (H&N) 9.375 11/01/16 4,115 4,296,924
NYS Medcare (H&N) 10.000 11/01/06 3,350 3,542,625
NYS Medcare (Insured Mtg. Nursing) 6.375 08/15/24 2,000 2,091,240
NYS Medcare (Insured Mtg. Nursing) 6.450 08/15/34 4,000 4,203,560
NYS Medcare (Insured Mtg. Nursing) 6.500 11/01/15 70 72,587
NYS Medcare (Insured Mtg. Nursing) 6.900 08/15/34 15 16,501
NYS Medcare (Insured Mtg. Nursing) 9.500 01/15/24 2,275 2,344,388
NYS Medcare (Kingston Hospital) 8.875 11/15/17 7,745 7,854,514
NYS Medcare (Mental Health) 0.000 08/15/18 100 20,600
NYS Medcare (Mental Health) 0.000 08/15/18 45 9,270
NYS Medcare (Mental Health) 6.500 02/15/19 190 198,487
NYS Medcare (Mental Health) 7.300 02/15/21 5 5,514
NYS Medcare (Mental Health) 7.500 02/15/21 305 336,946
NYS Medcare (Mental Health) 7.500 02/15/21 505 567,059
NYS Medcare (Mental Health) 7.625 08/15/17 250 275,340
NYS Medcare (Mental Health) 7.625 08/15/17 545 619,382
NYS Medcare (Mental Health) 7.750 08/15/11 60 67,139
NYS Medcare (Mental Health) 7.750 08/15/11 35 39,016
NYS Medcare (Mental Health) 7.875 08/15/15 220 232,863
NYS Medcare (N. General Hospital) 7.150 02/15/01 10 10,483
NYS Medcare (N. General Hospital) 7.350 08/15/09 4,645 4,882,963
NYS Medcare (N. General Hospital) 7.400 02/15/19 2,015 2,115,246
NYS Medcare (N. General Hospital) 10.250 01/01/24 1,465 1,523,600
NYS Medcare (St. Charles Hospital) 6.375 08/15/34 1,350 1,411,331
NYS Medcare (St. Charles Hospital) 6.375 02/15/35 1,650 1,724,960
NYS Medcare (St. Luke) IVRC(b) 6.986(f) 02/15/29 22,000 21,670,000
NYS Medcare (St. Luke) RITES(b) 6.764(f) 02/15/29 12,500 11,984,375
NYS Medcare (St. Luke) RITES(b) 6.814(f) 02/15/29 10,000 9,587,500
NYS Medcare (St. Luke) RITES(b) 6.814(f) 02/15/29 5,750 5,512,813
NYS Medcare (St. Luke) RITES(b) 6.814(f) 02/15/29 8,400 8,053,500
NYS Medcare (Vassar Brothers) 8.250 11/01/13 4,590 4,722,284
NYS Medcare (Wyckoff Heights Medical Center) 7.350 08/15/11 50 54,183
NYS Medcare (Wyckoff Heights Medical Center) 7.400 08/15/21 5,255 5,757,904
Oneida Healthcare Corp. 7.100 08/01/11 10 10,808
Oneida Healthcare Corp. 7.200 08/01/31 130 141,938
</TABLE>
6
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Onondaga IDA (CGH) 6.625% 01/01/18 $ 7,820 $ 8,082,752
Onondaga IDA (Crouse Irving Hospital) 7.800 01/01/03 220 239,325
Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,250 5,452,703
Puerto Rico TEMEC (Mennonite Hospital) 6.500 07/01/26 3,000 3,112,440
Rensselaer Municipal Leasing Corp. 6.900 06/01/24 15,000 15,787,800
Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/18 3,770 4,247,734
Tompkins Healthcare 10.800 02/01/07 140 191,220
Tompkins Healthcare 10.800 02/01/28 25 32,854
UFA Devel. Corp. (Loretto Utica) 5.950 07/01/35 4,870 4,876,380
Valley Health Devel. 7.850 08/01/35 20 22,216
Valley Health Devel. 11.300 02/01/23 175 210,194
Westchester IDA (Beth Abraham Hospital) 8.375 12/01/25 1,870 1,949,251
Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/03 1,125 1,168,133
Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,270 3,462,832
- --------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION -- 12.9%
$325,736,670
Lowville GO 7.200 09/15/13 100 114,799
Lowville GO 7.200 09/15/12 100 114,667
Lowville GO 7.200 09/15/07 75 83,978
Lowville GO 7.200 09/15/05 100 110,126
Lowville GO 7.200 09/15/14 100 115,101
Newburgh GO 7.100 09/15/08 185 184,887
Newburgh GO 7.100 09/15/07 185 184,893
Newburgh GO 7.150 09/15/10 150 149,901
Newburgh GO 7.150 09/15/09 180 180,612
Newburgh GO 7.200 09/15/11 155 154,895
Newburgh GO 7.200 09/15/12 155 154,608
Newburgh GO 7.250 09/15/14 155 154,735
Newburgh GO 7.250 09/15/13 160 160,035
NYC GO 0.000 11/15/11 4,990 2,215,161
NYC GO 0.000 08/01/14 500 354,595
NYC GO 0.000 10/01/12 40 16,226
NYC GO 0.000 05/15/14 1,690 1,240,578
NYC GO 0.000 05/15/12 200 85,938
NYC GO 0.000 05/15/11 270 123,792
NYC GO 0.000 08/15/16 70 58,147
NYC GO 6.000 02/01/25 650 650,650
NYC GO 6.000 02/01/11 6,000 6,160,440
NYC GO 6.000 10/01/26 8,170 8,200,883
NYC GO 6.125 08/01/25 8,735 8,913,980
NYC GO 6.125 02/01/25 18,500 18,845,025
NYC GO 6.250 04/15/27 12,200 12,604,918
NYC GO 6.500 08/01/15 2,000 2,111,760
NYC GO 6.500 08/01/14 500 527,940
NYC GO 6.600 02/15/10 2,000 2,123,560
</TABLE>
7
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<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYC GO 6.625% 02/15/25 $ 15,580 $ 16,487,068
NYC GO 6.625 08/01/25 2,000 2,121,100
NYC GO 7.000 08/01/97(p) 5 5,086
NYC GO 7.000 02/01/02(p) 400 446,688
NYC GO 7.000 10/01/12 625 676,475
NYC GO 7.000 02/01/22 4,600 4,944,356
NYC GO 7.000 02/01/15 15 15,168
NYC GO 7.000 02/01/20 250 268,715
NYC GO 7.000 02/01/10 15 15,236
NYC GO 7.100 02/01/11 1,325 1,429,503
NYC GO 7.100 02/01/10 4,000 4,315,480
NYC GO 7.100 02/01/02(p) 440 493,165
NYC GO 7.100 02/01/09 1,000 1,078,870
NYC GO 7.200 02/01/15 2,800 3,032,092
NYC GO 7.200 02/01/14 2,390 2,588,107
NYC GO 7.200 02/01/02(p) 1,610 1,811,137
NYC GO 7.250 08/15/24 9,815 10,524,428
NYC GO 7.250 08/15/01(p) 4,005 4,442,987
NYC GO 7.400 02/01/02 330 363,188
NYC GO 7.500 08/01/19 160 178,822
NYC GO 7.500 08/01/02(p) 915 1,054,181
NYC GO 7.500 08/01/20 645 720,878
NYC GO 7.500 08/01/02(p) 6,855 7,897,714
NYC GO 7.500 08/01/02(p) 1,705 1,964,348
NYC GO 7.500 02/01/16 240 265,147
NYC GO 7.500 08/15/20 6,180 7,279,855
NYC GO 7.500 08/01/21 85 94,313
NYC GO 7.500 02/01/02(p) 1,380 1,573,103
NYC GO 7.500 02/01/03 2,000 2,214,320
NYC GO 7.500 02/01/02(p) 2,760 3,146,207
NYC GO 7.500 02/01/18 120 133,040
NYC GO 7.625 02/01/13 310 344,447
NYC GO 7.625 02/01/02(p) 3,535 4,047,822
NYC GO 7.625 02/01/14 20 21,610
NYC GO 7.625 02/01/02(p) 250 285,595
NYC GO 7.750 02/01/13 6,000 6,712,680
NYC GO 7.750 02/01/10 1,500 1,681,440
NYC GO 7.750 08/15/12 60 66,680
NYC GO 7.750 08/15/01(p) 940 1,072,192
NYC GO 7.750 08/15/13 60 66,680
NYC GO 7.750 08/15/01(p) 90 102,657
NYC GO 7.750 08/15/17 110 121,857
NYC GO 7.750 08/15/01(p) 20 22,250
NYC GO 8.000 08/15/01(p) 245 281,444
NYC GO 8.000 08/01/18 45 50,138
</TABLE>
8
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYC GO 8.000% 08/15/20 $ 10 $ 11,150
NYC GO 8.000 08/15/21 5 5,575
NYC GO 8.250 08/01/12 5 5,616
NYC GO 8.250 08/01/13 30 33,698
NYC GO 8.250 11/15/20 20 22,602
NYC GO 8.250 08/01/14 35 39,314
NYC GO 8.250 11/15/01(p) 2,760 3,217,525
NYC GO 8.250 08/01/01(p) 1,590 1,835,242
NYC GO 8.250 11/15/18 240 272,734
NYC GO 8.250 11/15/01(p) 920 1,072,508
NYC GO 8.250 11/15/15 80 90,406
NYC GO 8.500 08/01/13 30 30,750
NYC GO CARS 7.770(f) 08/12/10 16,387 18,005,216
NYC GO CARS 7.770(f) 09/01/11 8,387 9,141,830
NYC GO RIBS 6.724(f) 08/01/10 4,200 4,200,000
NYC GO RIBS 6.724(f) 08/01/09 6,200 6,262,000
NYC GO RIBS 6.822(f) 08/22/13 5,400 5,265,000
NYC GO RIBS 6.822(f) 08/01/15 3,050 2,928,000
NYC GO RIBS 7.905(f) 08/01/13 13,150 13,659,563
NYC GO RITES 7.627(f) 10/01/11 15,000 16,027,650
Puerto Rico GO RITES(b) 7.538(f) 07/01/22 1,600 1,686,000
Puerto Rico GO YCN 7.888(f) 07/01/20 40,250 41,558,125
Puerto Rico GO YCN(b) 7.095(f) 07/01/15 1,000 1,052,500
Suffolk GO 6.375 11/01/16 725 739,790
Suffolk GO (Sewer) 6.750 08/01/10 15 15,300
Utica GO 5.900 12/01/02 100 100,985
Utica GO 6.000 01/15/06 580 530,949
Utica GO 6.250 01/15/07 560 518,330
V. I. Public Finance Authority 7.125 10/01/04 1,135 1,234,347
V. I. Public Finance Authority 7.250 10/01/18 28,750 31,294,663
V. I. Public Finance Authority 7.375 10/01/10 1,735 1,904,076
V. I. (GO/HUGO) 7.750 10/01/06 388 420,126
- --------------------------------------------------------------------------------------------------------------------------
HOUSING, MULTI-FAMILY -- 12.6%
$318,329,700
Albany Hsg. Authority 0.000 10/01/12(p) 560 148,853
Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,715 1,748,597
Batavia Hsg. Authority (Washington Towers) 6.500 01/01/23 515 530,955
Battery Park City Authority 5.800 11/01/22 1,050 1,043,700
Battery Park City Authority 10.000 06/01/23 700 735,000
Bayshore HDC 7.500 02/01/23 1,465 1,561,514
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 07/01/07 900 904,356
East Rochester Hsg. Authority (St. John's Meadows) 5.950 08/01/27 4,095 4,041,110
Elmira HDC 7.500 08/01/07 25 26,250
</TABLE>
9
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Guam Economic Devel. 9.375% 11/01/18 $ 3,010 $ 3,089,103
Guam Economic Devel. 9.500 11/01/18 2,505 2,570,831
Hamilton Elderly Hsg. 11.250 01/01/15 695 729,952
Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 4,665 5,087,089
Mechanicsville HDC 6.900 08/01/22 2,500 2,625,725
Monroe HDC 7.000 08/01/21 290 300,979
New Hartford HDC 7.375 01/01/24 20 21,574
New Hartford Sunset Wood Project 5.950 08/01/27 1,520 1,525,107
North Tonawanda HDC 6.800 12/15/07 585 633,239
North Tonawanda HDC 7.375 12/15/21 3,295 3,738,276
NYC HDC (Albert Einstein) 6.500 12/15/17 327 331,376
NYC HDC (Amsterdam) 6.500 08/15/18 919 919,182
NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,531 1,565,275
NYC HDC (Barclay Avenue) 6.450 04/01/17 1,045 1,075,901
NYC HDC (Barclay Avenue) 6.600 04/01/33 4,055 4,174,014
NYC HDC (Boulevard) 6.500 08/15/17 2,857 2,891,967
NYC HDC (Bridgeview) 6.500 12/15/17 492 497,922
NYC HDC (Cadman Plaza) 6.500 11/15/18 1,318 1,334,744
NYC HDC (Cadman Plaza) 7.000 12/15/18 516 529,406
NYC HDC (Candia) 6.500 06/15/18 194 196,248
NYC HDC (Clinton) 6.500 07/15/17 3,719 3,765,007
NYC HDC (Contello III) 7.000 12/15/18 317 325,106
NYC HDC (Cooper Gram) 6.500 08/15/17 1,541 1,559,551
NYC HDC (Court Plaza) 6.500 08/15/17 1,176 1,190,792
NYC HDC (Crown Gardens) 7.250 01/15/19 1,738 1,815,931
NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,582 3,678,527
NYC HDC (Essex) 6.500 07/15/18 85 86,352
NYC HDC (Forest Park) 6.500 12/15/17 527 533,616
NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,707 1,751,850
NYC HDC (Heywood) 6.500 10/15/17 377 381,418
NYC HDC (Hudsonview) 6.500 09/15/17 4,247 4,299,230
NYC HDC (Janel) 6.500 09/15/17 1,201 1,215,575
NYC HDC (Kings Arms) 6.500 11/15/18 238 240,948
NYC HDC (Kingsbridge) 6.500 08/15/17 419 424,423
NYC HDC (Leader) 6.500 03/15/18 1,281 1,296,615
NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,777 1,855,940
NYC HDC (Middagh) 6.500 01/15/18 215 217,593
NYC HDC (Montefiore) 6.500 10/15/17 2,806 2,840,525
NYC HDC (Multi-Family) 5.850 05/01/26 1,650 1,651,898
NYC HDC (Multi-Family) 6.600 04/01/30 38,880 40,721,357
NYC HDC (Multi-Family) 7.300 06/01/10 30 32,734
NYC HDC (Multi-Family) 7.350 06/01/19 1,145 1,218,429
NYC HDC (Multi-Family) 8.250 01/01/11 1,360 1,394,000
NYC HDC (New Amsterdam) 6.500 08/15/18 899 910,376
NYC HDC (Residential Charter) 7.375 04/01/17 3,490 3,591,629
</TABLE>
10
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYC HDC (Riverbend) 6.500% 11/15/18 $ 1,121 $ 1,134,851
NYC HDC (Riverside Park) 7.250 11/15/18 6,839 7,145,310
NYC HDC (RNA House) 7.000 12/15/18 490 503,166
NYC HDC (Robert Fulton) 6.500 12/15/17 707 716,188
NYC HDC (Rosalie Manning) 7.034 11/15/18 256 263,293
NYC HDC (Scott Tower) 7.000 12/15/18 681 699,257
NYC HDC (Seaview) 6.500 01/15/18 933 944,988
NYC HDC (Sky View) 6.500 11/15/18 1,739 1,760,864
NYC HDC (South Bronx) 8.100 09/01/23 3,230 3,455,971
NYC HDC (Stevenson) 6.500 05/15/18 1,770 1,792,167
NYC HDC (Stryckers Bay) 7.034 11/15/18 509 519,902
NYC HDC (St. Martin) 6.500 11/15/18 386 390,412
NYC HDC (Tivoli) 6.500 01/15/18 1,777 1,798,864
NYC HDC (Towers) 6.500 08/15/17 382 387,072
NYC HDC (Townhouse) 6.500 01/15/18 241 244,403
NYC HDC (Tri-Faith House) 7.000 01/15/19 371 380,953
NYC HDC (University) 6.500 08/15/17 1,578 1,597,396
NYC HDC (Washington Square) 7.000 01/15/19 473 485,467
NYC HDC (West Side) 6.500 11/15/18 427 431,944
NYC HDC (West Village) 6.500 11/15/13 4,770 4,871,354
NYC HDC (Westview) 6.500 10/15/17 275 278,439
NYC HDC (Woodstock Terrace) 7.034 02/15/19 631 644,572
NYC HDC, Series B 5.875 11/01/18 5,235 5,254,474
NYS HFA (Children's Rescue) 7.625 05/01/18 3,555 3,793,576
NYS HFA (Dominican Village) 6.600 08/15/27 2,200 2,299,726
NYS HFA (Fulton Manor) 6.100 11/15/25 4,205 4,333,379
NYS HFA (HELP/Bronx) 7.850 11/01/99 1,080 1,133,363
NYS HFA (HELP/Bronx) 7.850 05/01/99 1,040 1,080,914
NYS HFA (HELP/Bronx) 8.050 11/01/05 13,080 13,923,922
NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,210 1,268,225
NYS HFA (Meadow Manor) 7.750 11/01/19 5 5,105
NYS HFA (Multi-Family) 0.000 11/01/17 12,695 3,960,332
NYS HFA (Multi-Family) 0.000 11/01/15 14,590 5,147,352
NYS HFA (Multi-Family) 0.000 11/01/14 15,730 5,905,671
NYS HFA (Multi-Family) 6.100 11/15/36 1,285 1,313,450
NYS HFA (Multi-Family) 6.125 08/15/38 4,700 4,767,915
NYS HFA (Multi-Family) 6.300 08/15/26 5,000 5,138,900
NYS HFA (Multi-Family) 6.350 08/15/23 4,170 4,336,383
NYS HFA (Multi-Family) 6.400 11/15/27 1,175 1,220,120
NYS HFA (Multi-Family) 6.500 08/15/24 2,905 3,010,074
NYS HFA (Multi-Family) 6.700 08/15/25 11,980 12,456,325
NYS HFA (Multi-Family) 6.750 11/15/36 5,740 6,087,500
NYS HFA (Multi-Family) 6.950 08/15/24 2,905 3,055,973
NYS HFA (Multi-Family) 6.950 08/15/12 75 78,982
NYS HFA (Multi-Family) 7.050 08/15/24 5,350 5,658,642
</TABLE>
11
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYS HFA (Multi-Family) 7.450% 11/01/28 $ 1,590 $ 1,671,344
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 11/01/13 20 19,960
NYS HFA (NonProfit) 6.600 11/01/10 25 25,300
NYS HFA (NonProfit) 6.600 11/01/08 20 20,300
NYS HFA (Phillips Village) 7.750 08/15/17 5,000 5,540,400
NYS HFA (Service Contract) 6.125 03/15/20 25 24,900
NYS HFA (Service Contract) 6.500 03/15/25 9,265 9,894,557
NYS HFA (Service Contract) 7.700 03/15/06 150 163,158
NYS HFA (Shorehill Hsg.) 7.500 05/01/08 1,245 1,272,178
NYS HFA, Series A 6.125 11/01/20 1,385 1,422,949
Pilgrim Village HDC 6.800 02/01/21 1,110 1,142,579
Portchester CDC (Southport) 7.300 08/01/11 60 64,542
Portchester CDC (Southport) 7.375 08/01/22 25 26,742
Puerto Rico HB&F 7.500 10/01/15 210 221,920
Puerto Rico HFA 7.300 10/01/06 10 10,478
Puerto Rico HFC 7.500 04/01/22 6,180 6,506,551
Rensselaer Hsg. Authority (Renwyck) 7.650 01/01/11 25 28,692
Riverhead HDC 8.250 08/01/10 45 47,250
Rochester Hsg. Authority (Crossroads) 7.700 01/01/17 20,890 22,542,399
Schenectady IDA (ASSC) 6.400 05/01/14 500 519,520
Schenectady IDA (ASSC) 6.450 05/01/24 2,655 2,767,705
Scotia Hsg. Authority (Holyrood House) 7.000 06/01/09 175 192,364
Sunnybrook EHC 11.250 12/01/14 3,045 3,224,655
Syracuse IDA (James Square) 0.000 08/01/25 46,385 9,599,840
Tonawanda Senior Citizens Hsg. 7.875 02/01/11 520 540,935
Tupper Lake HDC 8.125 10/01/10 75 78,750
Union Elderly Hsg. 10.000 04/01/13 2,140 2,226,670
Utica Senior Citizen Hsg. 0.000 07/01/02 25 18,754
Utica Senior Citizen Hsg. 0.000 07/01/26 3,410 416,225
V. I. HFA 8.100 12/01/18 25 26,379
Watervliet Elderly Hsg. 8.000 11/15/05 95 97,156
Watervliet Elderly Hsg. 8.000 11/15/03 100 102,269
Watervliet Elderly Hsg. 8.000 11/15/04 95 97,156
Watervliet Elderly Hsg. 8.000 11/15/07 100 102,269
Watervliet Elderly Hsg. 8.000 11/15/08 100 102,269
Watervliet Elderly Hsg. 8.000 11/15/09 100 102,269
Watervliet Elderly Hsg. 8.000 11/15/06 100 102,269
- --------------------------------------------------------------------------------------------------------------------------
RESOURCE RECOVERY -- 12.0%
$304,205,611
Dutchess Res Rec (Solid Waste) 6.800 01/01/10 1,700 1,772,352
Dutchess Res Rec (Solid Waste) 7.000 01/01/10 1,805 1,908,860
Islip Res Rec 6.500 07/01/09 2,000 2,220,720
NYS Environ. (Huntington Res Rec) 7.500 10/01/12 58,860 63,277,443
</TABLE>
12
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Onondaga Res Rec 6.875% 05/01/06 $ 27,850 $ 29,281,490
Onondaga Res Rec 7.000 05/01/15 67,385 71,629,581
Suffolk IDA (Huntington Res Rec) 5.550(w) 10/01/04 8,545 8,539,958
Suffolk IDA (Huntington Res Rec) 5.650(w) 10/01/05 9,180 9,181,561
Suffolk IDA (Huntington Res Rec) 5.750(w) 10/01/06 9,875 9,882,406
Suffolk IDA (Huntington Res Rec) 5.800(w) 10/01/07 10,615 10,595,575
Suffolk IDA (Huntington Res Rec) 5.850(w) 10/01/08 11,410 11,400,530
Suffolk IDA (Huntington Res Rec) 5.950(w) 10/01/09 12,265 12,308,418
Suffolk IDA (Huntington Res Rec) 6.000(w) 10/01/10 13,190 13,249,619
Suffolk IDA (Huntington Res Rec) 6.150(w) 10/01/11 14,170 14,358,461
Suffolk IDA (Huntington Res Rec) 6.250(w) 10/01/12 17,155 17,474,083
Ulster County Res Rec 6.000 03/01/14 1,250 1,245,188
Warren/Washington IDA (Res Rec) 8.000 12/15/12 8,730 8,509,568
Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,535 8,471,500
Warren/Washington IDA (Res Rec) 8.200 12/15/10 8,965 8,898,300
- --------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 8.8%
$220,964,841
American Samoa Power Authority 6.800 09/01/00 400 419,192
American Samoa Power Authority 6.850 09/01/01 400 423,220
American Samoa Power Authority 6.900 09/01/02 400 426,672
American Samoa Power Authority 6.950 09/01/03 500 536,800
American Samoa Power Authority 7.000 09/01/04 500 539,900
American Samoa Power Authority 7.100 09/01/01 800 853,376
American Samoa Power Authority 7.200 09/01/02 800 863,520
Guam Power Authority 6.750 10/01/24 4,780 5,060,729
NYS ERDA (Con Ed) 6.375 12/01/27 290 306,243
NYS ERDA (Con Ed) 6.375 12/01/27 11,000 11,358,600
NYS ERDA (Con Ed) 6.750 01/15/27 115 121,516
NYS ERDA (Con Ed) 7.125 03/15/22 3,250 3,322,898
NYS ERDA (Con Ed) 7.125 03/15/22 1,255 1,281,644
NYS ERDA (Con Ed) 7.250 11/01/24 15,840 16,450,790
NYS ERDA (Con Ed) 7.375 07/01/24 27,730 28,668,383
NYS ERDA (Con Ed) 7.500 07/01/25 1,615 1,708,622
NYS ERDA (Con Ed) 7.500 01/01/26 4,900 5,232,661
NYS ERDA (Con Ed) 7.500 11/15/21 2,580 2,637,431
NYS ERDA (Con Ed) 7.750 01/01/24 6,010 6,186,213
NYS ERDA (LILCO) 6.900 08/01/22 25 26,290
NYS ERDA (LILCO) 7.150 02/01/22 15,250 16,251,925
NYS ERDA (LILCO) 7.150 02/01/22 10,925 11,642,773
NYS ERDA (LILCO) 7.150 09/01/19 14,810 15,767,911
NYS ERDA (LILCO) 7.150 06/01/20 15,200 16,198,640
NYS ERDA (LILCO) 7.150 09/01/19 16,515 17,600,036
NYS ERDA (LILCO) 7.150 12/01/20 12,225 13,028,183
NYS ERDA (NIMO) 8.875 11/01/25 18,140 18,611,640
NYS ERDA (RG&E) 8.375 12/01/28 120 126,953
</TABLE>
13
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Puerto Rico Electric LEVRRS 8.084%(f) 07/01/23 $ 17,800 $ 18,690,000
V. I. Water & Power Authority 7.400 07/01/11 6,215 6,622,083
- --------------------------------------------------------------------------------------------------------------------------
HOUSING, SINGLE FAMILY -- 7.8%
$197,444,548
NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/14 30 6,088
NYS (SONYMA) Mortgage, 1st Series 0.000 10/01/98 95 85,446
NYS (SONYMA) Mortgage, 2nd Series 0.000 10/01/14 13,225 2,624,634
NYS (SONYMA) Mortgage, 6th Series 9.375 04/01/10 1,120 1,158,830
NYS (SONYMA) Mortgage, 7th Series GAINS 0.000(c) 10/01/14 1,255 1,212,694
NYS (SONYMA) Mortgage, 8th Series A 6.875 04/01/17 315 321,851
NYS (SONYMA) Mortgage, 8th Series C 8.300 10/01/06 35 35,775
NYS (SONYMA) Mortgage, 8th Series C 8.400 10/01/17 170 173,218
NYS (SONYMA) Mortgage, 8th Series D 8.200 10/01/06 100 103,189
NYS (SONYMA) Mortgage, 8th Series E 8.100 10/01/17 80 82,590
NYS (SONYMA) Mortgage, 8th Series F 8.000 10/01/17 15 15,513
NYS (SONYMA) Mortgage, 9th Series A 7.300 04/01/17 280 285,998
NYS (SONYMA) Mortgage, 9th Series B 8.300 10/01/17 65 66,368
NYS (SONYMA) Mortgage, 9th Series E 8.375 04/01/18 10 10,370
NYS (SONYMA) Mortgage, Series 12 CAB 0.000(c) 04/01/17 790 793,018
NYS (SONYMA) Mortgage, Series 2 0.000 10/01/14 265 52,592
NYS (SONYMA) Mortgage, Series 27 6.450 04/01/04 25 26,987
NYS (SONYMA) Mortgage, Series 28 6.650 04/01/22 10,000 10,338,500
NYS (SONYMA) Mortgage, Series 28 7.050 10/01/23 8,760 9,285,337
NYS (SONYMA) Mortgage, Series 30-A 4.375 10/01/23 15 12,750
NYS (SONYMA) Mortgage, Series 30-B 6.650 10/01/25 16,005 16,835,980
NYS (SONYMA) Mortgage, Series 36-A 6.625 04/01/25 11,500 12,153,660
NYS (SONYMA) Mortgage, Series 38 RITES (b) 7.565(f) 04/01/25 13,940 14,427,900
NYS (SONYMA) Mortgage, Series 40-A 6.700 04/01/25 7,060 7,446,888
NYS (SONYMA) Mortgage, Series 40-B 6.400 10/01/12 35 36,400
NYS (SONYMA) Mortgage, Series 40-B 6.600 04/01/25 5,745 6,086,483
NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 100 106,628
NYS (SONYMA) Mortgage, Series 42 6.650 04/01/26 13,600 14,461,424
NYS (SONYMA) Mortgage, Series 44 7.500 04/01/26 11,990 12,960,830
NYS (SONYMA) Mortgage, Series 46 6.500 04/01/13 100 106,292
NYS (SONYMA) Mortgage, Series 46 6.600 10/01/19 65 68,892
NYS (SONYMA) Mortgage, Series 46 6.650 10/01/25 24,655 26,290,120
NYS (SONYMA) Mortgage, Series 50 6.625 04/01/25 7,500 8,006,400
NYS (SONYMA) Mortgage, Series 52 6.100 04/01/26 900 928,170
NYS (SONYMA) Mortgage, Series 58 6.400 04/01/27 6,200 6,503,614
NYS (SONYMA) Mortgage, Series 63 6.125 04/01/27 9,750 10,016,273
NYS (SONYMA) Mortgage, Series 65 5.850 10/01/28 10,205 10,174,895
NYS (SONYMA) Mortgage, Series BB-2 7.950 10/01/15 150 153,893
NYS (SONYMA) Mortgage, Series EE-1 8.000 10/01/10 40 41,433
NYS (SONYMA) Mortgage, Series EE-2 7.450 10/01/10 95 100,306
NYS (SONYMA) Mortgage, Series EE-2 7.500 04/01/16 40 42,014
</TABLE>
14
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYS (SONYMA) Mortgage, Series EE-3 7.700% 10/01/10 $ 270 $ 285,814
NYS (SONYMA) Mortgage, Series EE-3 7.750 04/01/16 15 16,035
NYS (SONYMA) Mortgage, Series EE-4 7.750 10/01/10 90 97,085
NYS (SONYMA) Mortgage, Series HH-2 7.600 10/01/21 5 5,150
NYS (SONYMA) Mortgage, Series HH-2 7.700 10/01/09 400 416,196
NYS (SONYMA) Mortgage, Series HH-2 7.850 04/01/22 40 42,605
NYS (SONYMA) Mortgage, Series HH-3 7.875 10/01/09 275 291,544
NYS (SONYMA) Mortgage, Series HH-3 7.950 04/01/22 490 515,500
NYS (SONYMA) Mortgage, Series HH-4 8.050 04/01/22 65 67,092
NYS (SONYMA) Mortgage, Series II 0.000 10/01/07 100 46,963
NYS (SONYMA) Mortgage, Series II 0.000 10/01/08 120 52,129
NYS (SONYMA) Mortgage, Series II 0.000 04/01/06 90 47,711
NYS (SONYMA) Mortgage, Series II 0.000 10/01/09 180 72,329
NYS (SONYMA) Mortgage, Series II 0.000 04/01/08 170 76,786
NYS (SONYMA) Mortgage, Series II 0.000 04/01/05 100 57,284
NYS (SONYMA) Mortgage, Series JJ 7.500 10/01/17 445 469,671
NYS (SONYMA) Mortgage, Series KK 7.650 04/01/19 115 122,112
NYS (SONYMA) Mortgage, Series KK 7.800 10/01/20 255 268,525
NYS (SONYMA) Mortgage, Series MM-1 7.500 04/01/13 70 73,820
NYS (SONYMA) Mortgage, Series MM-1 7.750 10/01/05 25 26,649
NYS (SONYMA) Mortgage, Series MM-2 7.700 04/01/05 100 109,610
NYS (SONYMA) Mortgage, Series NN 7.550 10/01/17 60 63,913
NYS (SONYMA) Mortgage, Series RR 7.700 10/01/10 105 113,111
NYS (SONYMA) Mortgage, Series RR 7.750 10/01/17 80 86,174
NYS (SONYMA) Mortgage, Series SS 7.500 10/01/19 185 190,866
NYS (SONYMA) Mortgage, Series TT 6.950 10/01/02 5 5,474
NYS (SONYMA) Mortgage, Series UU 7.150 10/01/22 135 140,646
NYS (SONYMA) Mortgage, Series UU 7.750 10/01/23 1,365 1,444,620
NYS (SONYMA) Mortgage, Series VV 0.000 10/01/23 115,222 16,906,524
NYS (SONYMA) Mortgage, Series VV 7.375 10/01/11 195 207,940
Puerto Rico HFA 0.000 08/01/26 8,690 1,202,088
Puerto Rico HFA 6.250 04/01/29 90 92,697
Puerto Rico HFA 7.650 10/15/22 80 85,122
V. I. HFA 6.450 03/01/16 100 104,523
- --------------------------------------------------------------------------------------------------------------------------
MARINE/AVIATION FACILITIES -- 6.3%
$158,035,147
Albany IDA (Port of Albany) 7.250 02/01/24 1,395 1,491,283
Guam Airport 6.600 10/01/10 3,675 3,856,655
Guam Airport 6.700 10/01/23 60,730 63,518,114
Monroe County Airport 7.250 01/01/19 20 20,927
NYC IDA (American Airlines) 6.900 08/01/24 16,685 18,110,733
NYC IDA (American Airlines) 7.750 07/01/19 1,795 1,891,266
NYC IDA (American Airlines) 8.000 07/01/20 7,110 7,516,621
NYC IDA (Japan Airlines) 6.000 11/01/15 3,500 3,620,470
NYC IDA (Terminal One Group Assoc.) 6.000 11/01/19 15,050 15,214,497
</TABLE>
15
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYC IDA (Terminal One Group Assoc.) 6.125% 01/01/24 $ 6,715 $ 6,844,062
Port Authority NY/NJ (US Air) 9.000 12/01/10 520 584,854
Port Authority NY/NJ (US Air) 9.000 12/01/06 7,205 8,103,608
Port Authority NY/NJ (US Air) 9.125 12/01/15 22,335 25,223,139
Port Authority NY/NJ, 51st Series 7.000 12/01/14 45 46,125
Port Authority NY/NJ, 68th Series 7.250 02/15/25 80 86,249
Port Authority NY/NJ, 68th Series 7.250 02/15/25 30 31,689
Port Authority NY/NJ, 70th Series 7.250 08/01/25 20 21,376
Port Authority NY/NJ, 70th Series 7.250 08/01/25 15 16,187
Port Authority NY/NJ, 76th Series 6.500 11/01/26 60 61,331
Puerto Rico Port Authority 7.300 07/01/07 25 25,500
V. I. Port Authority (CEK Airport) 8.100 10/01/05 1,670 1,750,461
- --------------------------------------------------------------------------------------------------------------------------
LEASE RENTAL -- 4.0%
$101,906,413
Albany IDA (Upper Hudson Library) 8.750 05/01/22 940 1,012,173
Albany IDA (Upper Hudson Library) 8.750 05/01/07 215 221,968
Albany Parking Authority 0.000 11/01/17 1,770 561,072
Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,330 1,436,373
Capital District Youth Center 6.000 02/01/17 600 601,698
Carnegie Redevelopment Corp. 7.000 09/01/21 500 528,480
Clifton Park COP (Clifton Commons) 8.500 08/01/08 10 10,456
Monroe COP 8.050 01/01/11 470 504,813
NYS COP (BOCES) (b) 7.875 10/01/00 1,000 1,044,630
NYS COP (Hanson Redevelopment) 8.250 11/01/01 250 265,880
NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 31,750 37,054,473
NYS LGSC (SCSB) 7.375 12/15/16 810 829,521
NYS UDC 0.000 01/01/08 900 515,331
NYS UDC 0.000 01/01/11 80 39,815
NYS UDC 0.000 01/01/11 98,200 45,495,078
NYS UDC 0.000 01/01/03 15 11,236
NYS UDC 7.500 01/01/01(p) 2,000 2,241,560
Puerto Rico Public Bldgs. Authority Indexed Flt. 5.120(f)(c) 07/01/16 7,000 6,953,520
Schroon Lake Fire District (b) 7.250 03/01/09 552 572,866
Vigilant EHL (Thomatson) 7.500 11/01/12 950 1,009,888
Yonkers Parking Authority 7.750 12/01/04 950 995,581
- --------------------------------------------------------------------------------------------------------------------------
ADULT LIVING FACILITIES -- 3.3%
$83,104,690
Batavia Hsg. Authority (Trocaire Place) 8.750 04/01/25 3,850 4,099,557
Middleton IDA (Southwinds) 8.375 03/01/18 3,740 3,960,660
Monroe IDA (Jewish Home) 6.875 04/01/27 4,945 5,000,285
Monroe IDA (Jewish Home) 6.875 04/01/17 1,000 1,019,070
Orange IDA (Glen Arden) 8.250 01/01/02 18,025 18,495,633
Orange IDA (Glen Arden) 8.875 01/01/25 23,985 26,003,578
Syracuse Hsg. Authority (Seneca Heights) 7.500 12/01/07 1,990 1,995,652
Syracuse Hsg. Authority (Seneca Heights) 8.500 12/01/17 4,720 4,734,821
</TABLE>
16
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Tompkins IDA (Ithacare Center) 6.200% 02/01/37 $ 3,750 $ 3,832,163
Tompkins IDA (Kendall at Ithaca) 7.875 06/01/15 2,790 2,877,355
Tompkins IDA (Kendall at Ithaca) 7.875 06/01/24 5,465 5,646,985
Union Hsg. Authority (Methodist Homes) 7.625 11/01/16 2,470 2,679,975
Union Hsg. Authority (Methodist Homes) 8.050 04/01/99 105 110,208
Union Hsg. Authority (Methodist Homes) 8.150 04/01/00 110 115,737
Union Hsg. Authority (Methodist Homes) 8.250 04/01/01 120 126,346
Union Hsg. Authority (Methodist Homes) 8.350 04/01/02 150 158,042
Union Hsg. Authority (Methodist Homes) 8.500 04/01/12 2,010 2,248,627
- --------------------------------------------------------------------------------------------------------------------------
WATER UTILITIES -- 3.3%
$82,293,165
Erie County Water Revenue, 4th Series 0.000 12/01/17 16,565 3,843,080
NYC Municipal Water Finance Authority IRS 6.540(f) 06/15/13 12,500 11,937,500
NYC Municipal Water Finance Authority IVRC (b) 7.410(f) 06/15/17 30,000 31,912,500
NYC Municipal Water Finance Authority LEVVRS 7.017(f) 06/15/19 10,000 10,012,500
NYS Environ. (Consolidated Water) 7.150 11/01/14 1,840 1,969,812
NYS Environ. (L.I. Water) 10.000 10/01/17 500 515,810
NYS Environ. (NYS Water Services) 8.375 01/15/20 7,500 8,184,375
Suffolk IDA (Ocean Park Water) 7.500 11/01/22 715 772,286
V. I. Water & Power Authority 7.600 01/01/12 6,850 7,350,393
V. I. Water & Power Authority 8.500 01/01/10 5,500 5,794,910
- --------------------------------------------------------------------------------------------------------------------------
MANUFACTURING, DURABLE GOODS -- 3.2%
$81,088,817
Brookhaven IDA (Farber) 6.375(v) 12/01/04 490 490,000
Brookhaven IDA (Farber) 6.375(v) 12/01/02 870 870,000
Broome IDA (Simulator) 8.250 01/01/02 775 801,420
Cattaraugus IDA (Cherry Creek) 9.800 09/01/10 1,980 2,197,998
Chautauqua IDA (Dunkirk Glass) 11.500 12/01/10 7,900 2,370,632
City of Port Jervis (Future Home Tech.) 10.000 11/01/08 720 751,219
Cortland IDA (Paul Bunyon Products) 8.000 07/01/00 120 124,873
Erie IDA (Great Lakes Orthodontic) 12.099 05/01/00 98 108,056
Hudson IDA (Have, Inc.) 8.125 12/01/17 990 1,005,484
Monroe IDA (Brazill Merk) 7.900 12/15/14 3,080 3,290,672
Monroe IDA (Melles Griot) 9.500 12/01/09 1,560 1,613,711
Monroe IDA (RTM Turbine) 7.750 12/01/06 3,490 3,538,511
Monroe IDA (RTM Turbine) 8.000 12/01/11 3,060 3,148,740
Monroe IDA (RTM Turbine) 8.500 12/01/16 770 812,658
Nassau IDA (RJS Scientific) 8.050 12/01/05 330 357,545
Nassau IDA (RJS Scientific) 9.050 12/01/25 2,700 2,995,137
Nassau IDA (Structural Industries) 7.750 02/01/12 500 542,885
NYC IDA (Display Creations) 9.250 06/01/08 1,900 1,918,582
NYC IDA (Gabrielli Truck Sales) 8.125 12/01/17 3,280 3,329,659
NYC IDA (HiTech Res Rec) 8.750 08/01/00 320 334,422
NYC IDA (HiTech Res Rec) 9.250 08/01/08 695 731,203
NYC IDA (House of Spices) 9.000 10/15/01 490 532,826
</TABLE>
17
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYC IDA (House of Spices) 9.250% 10/15/11 $ 2,140 $ 2,353,743
NYC IDA (Koenig Iron Works) 8.375 12/01/25 1,675 1,789,101
NYC IDA (Nekboh) 9.625 05/01/11 5,760 6,110,899
NYC IDA (Novelty Cord & Tassel) 8.925(v) 12/01/06 612 622,488
NYC IDA (Penguin Air Conditioning) 12.222 12/01/99 137 142,984
NYC IDA (Pop Display) 6.750 12/15/04 1,150 1,172,241
NYC IDA (Pop Display) 7.900 12/15/14 2,645 2,788,438
NYC IDA (Priority Mailers) 9.000 03/01/10 1,730 1,880,735
NYC IDA (Sequins International) 8.500 04/30/00 315 335,012
NYC IDA (Sequins International) 8.950 01/30/16 4,555 5,063,611
NYC IDA (Ultimate Display) 8.750 10/15/00 305 324,791
NYC IDA (Ultimate Display) 9.000 10/15/11 1,910 2,075,750
Onondaga IDA (Coltec) 7.250 06/01/08 535 540,618
Onondaga IDA (Coltec) 9.875 10/01/10 750 777,750
Onondaga IDA (Gear Motion) 8.400 12/15/01 550 561,083
Onondaga IDA (Gear Motion) 8.900 12/15/11 1,670 1,786,516
Orange IDA (Kingston Manufacturing) 8.000 11/01/17 7,600 7,718,636
Rensselaer IDA (MMP) 8.500 12/15/02 30 31,056
Suffolk IDA (Fil-Coil) 9.000 12/01/15 445 445,009
Suffolk IDA (Fil-Coil) 9.250 12/01/25 1,060 1,060,011
Suffolk IDA (Marbar Assoc.) 8.300 03/01/09 190 194,750
Suffolk IDA (Marbar Assoc.) 8.300 03/01/08 190 195,700
Suffolk IDA (Microwave Power) 7.750 06/30/02 300 312,015
Suffolk IDA (Microwave Power) 8.500 06/30/22 4,320 4,596,005
Suffolk IDA (Wireless Boulevard Realty) 7.875 12/01/12 1,410 1,438,073
Suffolk IDA (Wireless Boulevard Realty) 8.625 12/01/26 4,005 4,168,845
Syracuse IDA (Piscitell Stone) 8.400 12/01/11 685 736,724
- --------------------------------------------------------------------------------------------------------------------------
HIGHER EDUCATION -- 2.8%
$71,632,218
Allegany IDA (Alfred University) 7.500 09/01/11 10,070 10,983,853
Brookhaven IDA (Dowling College) 6.750 03/01/23 6,965 7,315,618
Cattaraugus IDA (St. Bonaventure) 8.300 12/01/10 8,825 9,680,407
Dutchess IDA (Bard College) 7.000 11/01/17 3,500 3,839,395
Erie IDA (Medaille College) 8.000 12/30/22 3,230 3,510,429
Monroe IDA (Roberts Wesleyan College) 6.700 09/01/11 2,625 2,675,138
New Rochelle IDA (CNR) 6.750 07/01/22 3,000 3,127,980
NYC IDA (MMC) 7.000 07/01/23 3,500 3,653,265
NYS Dorm (Lakeside) 6.000 02/01/37 4,380 4,425,289
NYS Dorm (Rochester Institute of Technology) 5.250 07/01/22 375 359,640
NYS Dorm (State University) 0.000 05/15/07 50 29,303
NYS Dorm (State University) 7.000 05/15/16 225 237,119
NYS Dorm (St. Thomas Aquinas College) 6.250 07/01/14 75 76,697
Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5 4,797
Rockland IDA (DC) 8.000 03/01/13 2,090 2,265,079
Suffolk IDA (Dowling College) 6.625 06/01/24 2,000 2,095,080
</TABLE>
18
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Suffolk IDA (Dowling College) 6.700% 12/01/20 $ 1,870 $ 1,943,248
Suffolk IDA (Dowling College) 8.250 12/01/20(p) 965 1,092,795
University of V. I. 7.250 10/01/04 1,205 1,274,878
University of V. I. 7.700 10/01/19 3,570 3,905,687
University of V. I. 7.750 10/01/24 5,175 5,660,622
Yates IDA (Keuka College) 8.750 08/01/15 1,960 2,261,272
Yates IDA (Keuka College) 9.000 08/01/11 1,095 1,214,629
- --------------------------------------------------------------------------------------------------------------------------
NONPROFIT ORGANIZATION -- 2.6%
$66,208,590
Albany IDA (Albany Rehab.) 8.375 06/01/23 1,025 1,085,260
Columbia IDA (Berkshire Farms) 6.900 12/15/04 760 801,086
Columbia IDA (Berkshire Farms) 7.500 12/15/14 1,855 2,008,186
Geneva IDA (FLCP) 8.250 11/01/04 770 828,628
Monroe IDA (Al Sigl Center) 6.600 12/15/17 4,260 4,326,754
Monroe IDA (Al Sigl Center) 7.250 12/15/15 1,590 1,687,117
Monroe IDA (DePaul CF) 6.450 02/01/14 880 948,526
Monroe IDA (DePaul CF) 6.500 02/01/24 1,285 1,378,908
Monroe IDA (DePaul Properties) 8.300 09/01/02 470 502,989
Monroe IDA (DePaul Properties) 8.800 09/01/21 4,605 4,877,156
NYC IDA (Blood Center) 7.200 05/01/12(p) 500 571,220
NYC IDA (Blood Center) 7.250 05/01/22(p) 3,000 3,435,990
NYC IDA (CCM) 7.875 12/01/16 1,770 1,832,729
NYC IDA (CCM) 8.000 12/01/11 2,055 2,114,883
NYC IDA (EPG) 7.500 07/30/03 10,355 11,257,438
NYC IDA (Fund for NYC Project) 7.625 07/01/10 1,000 1,064,090
NYC IDA (Graphic Artists) 8.250 12/30/23 1,280 1,346,509
NYC IDA (JBFS) 6.750 12/15/12 6,040 6,306,364
NYC IDA (Lighthouse) 6.500 07/01/22 1,000 1,064,710
NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,175 1,189,194
NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,400 4,488,132
NYC IDA (OHEL) 8.250 03/15/23 3,435 3,568,484
NYC IDA (PRFFP) 7.000 10/01/16 815 879,548
NYC IDA (Psycho Therapy) 9.625 04/01/10 730 789,086
NYC IDA (St. Christoper Ottilie) 7.500 07/01/21 4,140 4,482,337
UCP Chemung County 6.600 08/01/22 1,000 1,056,720
Westchester IDA (JBFS) 6.750 12/15/12 2,220 2,316,548
- --------------------------------------------------------------------------------------------------------------------------
EDUCATION -- 2.5%
$63,186,939
Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 590 632,079
Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,220 3,554,494
Columbia IDA (ARC) 7.750 06/01/05 660 707,190
Columbia IDA (ARC) 8.650 06/01/18 2,650 2,841,436
Islip IDA (Leeway School) 9.000 08/01/21 970 1,037,405
Montgomery IDA (New Dimension) 8.900 05/01/16 1,055 1,138,651
Nassau IDA (ACLDD) 8.125 10/01/22 2,725 2,841,167
</TABLE>
19
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
NYC IDA (BHMS) 8.400% 09/01/02 $ 230 $ 233,843
NYC IDA (BHMS) 8.500 01/01/27 3,075 3,112,054
NYC IDA (BHMS) 8.900 09/01/11 660 701,369
NYC IDA (BHMS) 9.200 09/01/21 1,690 1,832,467
NYC IDA (Eden II) 7.750 06/01/04 405 424,177
NYC IDA (Eden II) 8.750 06/01/19 2,505 2,684,508
NYC IDA (Friends Seminary School) 7.000 12/01/17 3,705 3,766,799
NYC IDA (Hebrew Academy) 10.000 03/01/21 2,290 2,514,557
NYC IDA (Herbert G. Birch) 7.375 02/01/09 780 788,947
NYC IDA (Herbert G. Birch) 8.375 02/01/22 2,195 2,222,306
NYC IDA (St. Bernard's School) 7.000 12/01/21 5,115 5,298,373
NYC IDA (Summit School) 7.250 12/01/04 190 195,905
NYC IDA (Summit School) 8.250 12/01/24 1,485 1,541,133
NYC IDA (United Nations School) 6.350 12/01/15 1,000 1,009,960
Orange IDA (Mental Retardation Project) 7.800 07/01/11 495 568,062
Saratoga IDA (ARC) 8.400 03/01/13 1,395 1,465,169
Suffolk IDA (Devel. Disabilities) 7.375 03/01/03 915 941,187
Suffolk IDA (Devel. Disabilities) 8.750 03/01/23 9,675 10,387,080
Wayne IDA (ARC) 7.250 03/01/03 450 464,319
Wayne IDA (ARC) 8.375 03/01/18 2,925 3,029,891
Westchester IDA (Clearview School) 9.375 01/01/21 1,469 1,604,928
Westchester IDA (JDAM) 6.750 04/01/16 1,560 1,611,199
Yonkers IDA (Westchester) 7.375 12/30/03 395 409,307
Yonkers IDA (Westchester) 8.750 12/30/23 3,375 3,626,978
- --------------------------------------------------------------------------------------------------------------------------
CORPORATE BACKED -- 1.7%
$43,493,520
Albany IDA (Albany Golf) 7.500 05/01/12 400 434,116
Albany IDA (Kenwood Assoc.) 9.250(d) 09/01/10 2,735 2,222,051
Auburn IDA (Wegmans) 7.250 12/01/98 95 95,831
Broome IDA (Industrial Park) 7.550 12/01/00 190 195,700
Broome IDA (Industrial Park) 7.600 12/01/01 195 200,850
Dutchess IDA (Merchants Press) 7.950(d) 06/30/02 1,800 1,463,472
Dutchess IDA (Merchants Press) 9.000(d) 06/30/22 4,590 3,756,043
Erie IDA (Affordable Hospitality) 9.250 12/01/15 3,610 3,700,900
Erie IDA (Air Cargo) 8.250 10/01/07 1,455 1,509,286
Erie IDA (Air Cargo) 8.500 10/01/15 2,380 2,508,044
Fulton IDA (Crossroads Incubator) 8.500 12/15/98(a) 160 162,400
Hudson IDA (Northside) 9.000 12/01/09 455 491,591
Islip IDA (WJL Realty) 7.800 03/01/03 50 53,020
Islip IDA (WJL Realty) 7.850 03/01/04 100 106,161
Islip IDA (WJL Realty) 7.900 03/01/05 100 106,282
Islip IDA (WJL Realty) 7.950 03/01/10 500 530,875
Monroe IDA (Canal Ponds) 7.000 06/15/13 900 973,377
Monroe IDA (Cottrone Devel.) 9.500 12/01/10 2,316 2,501,935
Monroe IDA (De Carolis) 7.500 01/30/05 384 384,165
</TABLE>
20
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
Monroe IDA (Morrell/Morrell) 7.000% 12/01/07 $ 2,172 $ 2,218,850
Monroe IDA (Piano Works) 7.625 11/01/16 4,330 4,517,749
Monroe IDA (West End Business) 6.750 12/01/04 140 143,522
Monroe IDA (West End Business) 6.750 12/01/04 575 589,467
Monroe IDA (West End Business) 6.750 12/01/04 75 76,887
Monroe IDA (West End Business) 8.000 12/01/14 515 550,875
Monroe IDA (West End Business) 8.000 12/01/14 1,375 1,470,783
Monroe IDA (West End Business) 8.000 12/01/14 170 181,842
Monroe IDA (West End Business) 8.000 12/01/14 345 369,033
Niagara IDA (Maryland Maple) 10.250 11/15/09 1,090 1,140,641
Niagara IDA (Sevenson Hotel) 6.600 05/01/07 1,900 1,939,102
NYC IDA (ALA Realty) 7.500 12/01/10 1,035 1,075,500
NYC IDA (ALA Realty) 8.375 12/01/15 1,450 1,580,761
NYC IDA (Loehmann's) 9.500 12/31/04 845 859,044
Suffolk IDA (Rimland Facilities) 6.375(v) 12/01/09 1,670 1,618,230
Syracuse IDA (Rockwest Center II) 7.625 12/01/10 980 1,004,569
Syracuse IDA (Rockwest Center II) 8.625 12/01/15 1,470 1,549,733
Syracuse IDA (Rockwest Center I) 8.000 06/01/13 1,150 1,210,835
- --------------------------------------------------------------------------------------------------------------------------
MANUFACTURING, NON-DURABLE GOODS -- 1.4%
$35,294,770
Babylon IDA (JFB & Sons Lithographers) 7.625 12/01/06 1,180 1,193,039
Babylon IDA (JFB & Sons Lithographers) 8.625 12/01/16 2,570 2,602,279
Herkimer IDA (Burrows Paper) 7.250 01/01/01 1,885 1,850,542
Herkimer IDA (Burrows Paper) 8.000 01/01/09 2,440 2,427,532
Middleton IDA (Fleurchem) 8.000 12/01/16 905 950,422
Monroe IDA (Cohber) 7.550 12/01/01 10 10,488
Monroe IDA (Cohber) 7.650 12/01/02 10 10,502
Monroe IDA (Cohber) 7.700 12/01/03 10 10,509
Monroe IDA (Cohber) 7.850 12/01/09 170 178,871
Nassau IDA (Sharp International) 7.375 12/01/07 3,070 3,116,480
Nassau IDA (Sharp International) 7.875 12/01/12 2,610 2,657,972
NYC IDA (Amster Novelty) 8.000 12/01/10 530 544,591
NYC IDA (Amster Novelty) 8.375 12/01/15 790 828,015
NYC IDA (Atlantic Veal & Lamb) 8.375 12/01/16 1,160 1,176,762
NYC IDA (Gutmann Plastics) 7.750 12/01/07 905 916,113
NYC IDA (Promotional Slideguide) 7.500 12/01/10 710 713,451
NYC IDA (Promotional Slideguide) 7.875 12/01/15 1,065 1,088,334
NYC IDA (Streamline Plastics) 7.750 12/01/15 585 605,299
NYC IDA (Streamline Plastics) 8.125 12/01/25 1,275 1,340,841
NYC IDA (Visy Paper) 7.950 01/01/28 4,000 4,426,320
NYS Environ. (Occidental Petroleum) 6.100 11/01/30 4,000 4,023,040
Putnam IDA (Brewster Plastics) 8.500 12/01/16 1,990 2,062,197
Ulster IDA (Brooklyn Bottling) 7.800 06/30/02 525 544,409
Ulster IDA (Brooklyn Bottling) 8.600 06/30/22 1,915 2,016,763
</TABLE>
21
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
STATEMENT OF INVESTMENTS
June 30, 1997 (Unaudited)
<CAPTION>
Face Amount
Description Coupon Maturity (000) Omitted Market Value
----------- ------ -------- ------------- ------------
<S> <C> <C> <C> <C>
TELEPHONE UTILITIES -- 1.3%
$32,391,188
Puerto Rico Telephone Authority RIBS 6.692%(f) 01/01/15 $ 16,550 $ 16,322,438
Puerto Rico Telephone Authority RIBS(b) 7.700(f) 01/01/20 15,000 16,068,750
- --------------------------------------------------------------------------------------------------------------------------
HIGHWAYS, COMMUTER FACILITIES -- 1.0%
$24,851,661
MTA IVRC(b) 6.581(f) 07/01/11 10,000 10,225,000
MTA YCR(b) 6.286(f) 07/01/13 9,400 9,423,500
MTA YCR(b) 6.286(f) 07/01/22 3,000 2,868,750
NYS Thruway 0.000 01/01/04 2,000 1,412,540
NYS Thruway 0.000 01/01/05 260 172,801
NYS Thruway 0.000 01/01/03 1,000 749,070
- --------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES -- 1.0%
$24,697,375
NYS ERDA (Brooklyn Union Gas) RIBS 7.133(f) 07/08/26 5,000 4,668,750
NYS ERDA (Brooklyn Union Gas) RIBS 8.345(f) 04/01/20 7,000 7,630,000
NYS ERDA (Brooklyn Union Gas) RIBS 9.442(f) 07/01/26 10,300 12,398,625
- --------------------------------------------------------------------------------------------------------------------------
OTHER -- 0.5%
$12,573,273
Franklin SWMA 6.250 06/01/15 4,245 4,267,329
Montgomery IDA (Amsterdam) 7.250 01/15/19 5,860 6,103,307
Municipal Assistance Corp. for Troy, NY 0.000 01/15/22 1,219 305,338
Municipal Assistance Corp. for Troy, NY 0.000 07/15/21 803 207,402
Peekskill IDA (Karta) 9.000 07/01/10 1,629 1,689,897
--------------
TOTAL MUNICIPAL BOND INVESTMENTS, AT VALUE
(COST $2,468,875,244) -- 102.7% $2,592,199,216
--------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (2.7%) (68,303,325)
--------------
NET ASSETS -- 100.0% $2,523,895,891
==============
- ---------------
(a) Date of mandatory put; final maturity 12/15/2008.
(b) Illiquid security.
(c) Security will convert to a fixed coupon at a future date prior to maturity.
(d) Non-income accruing security.
(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 06/30/97.
(p) Date of pre-refunded call.
(v) Variable rate security that fluctuates as a percentage of prime rate.
(w) When-issued security to be delivered on 07/29/99 -- See Note 3 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
</TABLE>
22
<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:
ACLDD Adults and Children with Learning
and Developmental Disabilities
ARC Association of Retarded Citizens
ASSC Annie Schaffer Senior Center
BHMS Brooklyn Heights Montessori School
BLH Bronx Lebanon Hospital
BOCES Board of Cooperative Educational Services
CAB Capital Appreciation Bond
CARS Complimentary Auction Rate Security
CCM Comprehensive Care Management
CDC Community Development Corporation
CEK Cyril E. King
CF Community Facilities
CGH Community General Hospital
CNR College of New Rochelle
Con Ed Consolidated Edison Co.
COP Certificate of Participation
DC Dominican College
EHC Elderly Housing Corporation
EHL Engine Hook and Ladder
EPG Elmhurst Parking Garage
ERDA Energy Research and
Development Authority
E,E&T Ear, Eye and Throat
FLCP Finger Lakes Cerebral Palsy
GAINS Growth and Income Securities
GO General Obligation
HB&F Housing Bank and Finance
HDC Housing Development Corporation
HELP Homeless Economic Loan Program
HFA Housing Finance Agency
HFC Housing Finance Corporation
H&N Hospital and Nursing
IDA Industrial Development Authority
IRS Inverse Rate Security
ITEME Industrial Tourist Educational Medical
and Environmental
IVRC Inverse Variable Rate Certificate
JBFS Jewish Board of Family Services
JDAM Julia Dyckman Angus Memorial
LEVRRS Leveraged Reverse Rate Security
LGSC Local Government Services Corporation
L.I. Long Island
LILCO Long Island Lighting Corporation
MMC Marymount Manhattan College
MMP Millbrook Millwork Project
MTA Metropolitan Transit Authority
NIMO Niagara Mohawk Power Corporation
PRFFP Puerto Rican Family Foundation Project
Res Rec Resource Recovery Facility
RGH Rochester General Hospital
RG&E Rochester Gas and Electric
RIBS Residual Interest Bonds
RITES Residual Interest Tax Exempt Security
SCSB Schuyler Community Services Board
SONYMA State of New York Mortgage Agency
SWMA Solid Waste Management Authority
TEMEC Tourist, Educational, Medical and
Environmental Control
UCP United Cerebral Palsy
UDC Urban Development Corporation
UFA Utica Free Academy
WWH Wyandach/Wheatley Heights
YCN Yield Curve Note
YCR Yield Curve Receipt
V.I. United States Virgin Islands
================================================================================
ASSET COMPOSITION TABLE - JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Percentage
Rating of Investments
------ --------------
<S> <C> <C>
AAA 23.7% Bonds rated by any nationally recognized statistical rating organization are included
AA 15.0% in the equivalent Standard & Poor's rating category. All unrated bonds are backed by
A 21.3% mortgage liens and guarantees by the issuer. Bonds which are backed by a letter of
BBB 21.4% credit or by other financial institutions or agencies may be assigned an investment
BB 5.3% grade rating by the Manager, which reflects the quality of the guarantor, institution or
B 2.0% agency. Unrated bonds may also be assigned a rating when the issuer has rated bonds
CCC 0.0% outstanding with comparable credit characteristics, or when, in the opinion of the
CC 0.0% Manager, the bond itself possesses credit characteristics which allow for rating. The
C 0.0% unrated bonds in the portfolio are predominantly smaller issuers which have not
Not Rated 11.3% applied for a bond rating. Only those unrated bonds which subsequent to purchase
----- have not been designated investment grade by the Manager and the Fund's Board of
Total 100.0% Trustees are included in the "Not Rated" category. For further information see
===== "Credit Quality" in the Prospectus.
23
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROCHESTER FUND MUNICIPALS
=================================================================================================================================
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
ASSETS
<S> <C>
Investments, at value (Cost $2,468,875,244) $2,592,199,216
Receivables:
Interest 41,428,468
Shares of beneficial interest sold 16,371,226
Investments sold 805,723
Other 2,684,387
--------------
Total assets 2,653,489,020
--------------
LIABILITIES
Bank overdraft 131,415
Payables and other liabilities:
Investments purchased 124,117,156
Dividends 2,722,165
Shares of beneficial interest redeemed 1,991,788
Trustees' fees 511,695
Other 118,910
--------------
Total liabilities 129,593,129
--------------
NET ASSETS $2,523,895,891
==============
=================================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $2,459,219,430
Excess of distributions over net investment income (407,140)
Accumulated net realized loss on investment transactions (58,240,371)
Net unrealized appreciation on investments--Note 3 123,323,972
--------------
Net assets $2,523,895,891
==============
=================================================================================================================================
NET ASSET VALUE PER SHARE
CLASS A SHARES:
Net asset value and redemption price per share (based on net assets of
$2,463,223,226 and 136,171,585 shares of beneficial interest outstanding) $18.09
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $18.99
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value, redemption price and offering price per share (based on net assets
of $48,602,469 and 2,688,426 shares of beneficial interest outstanding) $18.08
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value, redemption price and offering price per share (based on net assets
of $12,070,196 and 667,551 shares of beneficial interest outstanding) $18.08
- ---------------------------------------------------------------------------------------------------------------------------------
See accompanying Notes to Financial Statements
</TABLE>
24
<PAGE>
ROCHESTER FUND MUNICIPALS
==============================================================================
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1997 (Unaudited)
Investment Income:
Interest $81,429,393
-----------
Expenses:
Management fees 5,579,419
Distribution and service plan fees:
Class A 1,727,261
Class B 65,065
Class C 14,042
Transfer and shareholder servicing
agent fees:
Class A 641,773
Class B 4,049
Class C 709
Accounting service fees 353,070
Shareholder reports 204,543
Registration and filing fees 131,524
Custodian fees and expenses 122,718
Trustees' fees and expenses 49,341
Legal and auditing fees 34,712
Other 76,336
Interest 165,534
-----------
Total expenses 9,170,096
Less expenses paid indirectly (33,606)
-----------
Net expenses 9,136,490
-----------
Net Investment Income 72,292,903
-----------
Realized and Unrealized Gain:
Net realized gain on investments 996,717
Net change in unrealized appreciation
or depreciation on investments 15,122,370
-----------
Net realized and unrealized gain 16,119,087
-----------
Net Increase in Net Assets
Resulting From Operations $88,411,990
===========
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
---------------- -----------------
Operations:
<S> <C> <C>
Net investment income $ 72,292,903 $ 135,835,359
Net realized gain (loss) 996,717 (3,568,327)
Net change in unrealized appreciation
or depreciation 15,122,370 (15,226,664)
-------------- --------------
Net increase in net assets
resulting from operations 88,411,990 117,040,368
-------------- --------------
Dividends and Distributions to
Shareholders:
Dividends from net investment
income:
Class A (74,277,727) (136,511,912)
Class B (330,265) --
Class C (71,921) --
-------------- --------------
Beneficial Interest Transactions:
Net increase in net assets resulting
from beneficial interest
transactions--Note 2:
Class A 142,269,449 182,057,766
Class B 48,092,153 --
Class C 11,952,033 --
-------------- --------------
Net Assets:
Total increase 216,045,712 162,586,222
Beginning of period 2,307,850,179 2,145,263,957
-------------- --------------
End of period (including excess of
distributions over net investment income
of $407,140 and ($1,979,870), respectively) $2,523,895,891 $2,307,850,179
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
25
<PAGE>
<TABLE>
ROCHESTER FUND MUNICIPALS
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
-----------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, 1997 --------------------------------------------------
(Unaudited)(a) 1996 1995 1994 1993 1992
------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $18.00 $18.18 $16.31 $19.00 $17.65 $17.01
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment income 0.55 1.10 1.10 1.13 1.17 1.20
Net realized and unrealized gain (loss) 0.09 (0.18) 1.86 (2.68) 1.35 0.64
------ ------ ------ ------ ------ ------
Total income (loss) from investment operations 0.64 0.92 2.96 (1.55) 2.52 1.84
------ ------ ------ ------ ------ ------
Dividends and distributions to shareholders:
Dividends from net investment income (0.55) (1.10) (1.09) (1.13) (1.17) (1.20)
Undistributed net investment income -- prior year -- -- -- (0.01) -- --
------ ------ ------ ------ ------ ------
Total dividends and distributions to shareholders (0.55) (1.10) (1.09) (1.14) (1.17) (1.20)
------ ------ ------ ------ ------ ------
Net asset value, end of period $18.09 $18.00 $18.18 $16.31 $19.00 $17.65
====== ====== ====== ====== ====== ======
TOTAL RETURN, AT NET ASSET VALUE(b) 3.71% 5.37% 18.58% (8.35%) 14.60% 11.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $2,463 $2,308 $2,145 $1,791 $1,794 $997
Average net assets (in millions) $2,349 $2,191 $2,005 $1,847 $1,449 $717
Ratios to average net assets:
Net investment income 6.12%(c) 6.20% 6.25% 6.43% 6.21% 6.79%
Expenses(d) 0.77%(c) 0.82% 0.82% 0.84% 0.75% 0.84%
Expenses (excluding interest)(d)(e) 0.76%(c) 0.77% 0.78% 0.73% 0.64% 0.70%
Portfolio turnover rate(f) 2.63% 13.34% 14.59% 34.39% 18.27% 29.99%
- ---------------
(a) For the period from March 16, 1997 (inception of offering) to June 30, 1997.
(b) Assumes a hypothetical initial investment on the business day before the first day of the fiscal period (or
inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized for periods of less than one
full year.
(c) Annualized.
(d) Beginning in fiscal 1995, the expense ratios reflect the effect of gross expenses paid indirectly by the Fund.
Prior year expense ratios have not been adjusted.
(e) During the periods shown above, the Fund's interest expense was substantially offset by the incremental interest
income generated on bonds purchased with borrowed funds.
(f) The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the
market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation. Purchases and sales of investment
securities (excluding short-term securities) for the period ended June 30, 1997 were $336,012,753 and $64,117,462,
respectively.
Per share information has been determined based on average shares outstanding for the period.
See accompanying Notes to Financial Statements.
</TABLE>
26
<PAGE>
ROCHESTER FUND MUNICIPALS
FINANCIAL HIGHLIGHTS -- (Continued)
Class B Class C
-------------- | --------------
Period Ended | Period Ended
June 30, 1997 | June 30, 1997
(Unaudited)(a) | (Unaudited)(a)
-------------- | --------------
|
PER SHARE OPERATING DATA: |
|
Net asset value, beginning of period $17.89 | $17.89
------ | ------
Income from investment operations: |
Net investment income 0.25 | 0.25
Net realized and unrealized gain 0.20 | 0.20
------ | ------
Total income from investment operations 0.45 | 0.45
------ | ------
Dividends and distributions to shareholders: |
|
Dividends from net investment income (0.26) | (0.26)
Undistributed net investment income -- prior year -- | --
------ | ------
Total dividends and distributions to shareholders (0.26) | (0.26)
------ | ------
Net asset value, end of period $18.08 | $18.08
====== | ======
TOTAL RETURN, AT NET ASSET VALUE(b) 2.82% | 2.82%
|
RATIOS/SUPPLEMENTAL DATA: |
Net assets, end of period (in millions) $49 | $12
Average net assets (in millions) $23 | $5
Ratios to average net assets: |
Net investment income 4.76%(c) | 4.72%(c)
Expenses(d) 1.56%(c) | 1.54%(c)
Expenses (excluding interest)(d)(e) 1.56%(c) | 1.54%(c)
Portfolio turnover rate(f) 2.63% | 2.63%
- ----------
(a) For the period from March 16, 1997 (inception of offering) to June 30,
1997.
(b) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less
than one full year.
(c) Annualized.
(d) Beginning in fiscal 1995, the expense ratios reflect the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not
been adjusted.
(e) During the periods shown above, the Fund's interest expense was
substantially offset by the incremental interest income generated on bonds
purchased with borrowed funds.
(f) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended June 30, 1997 were $336,012,753
and $64,117,462, respectively.
Per share information has been determined based on average shares
outstanding for the period.
See accompanying Notes to Financial Statements.
27
<PAGE>
ROCHESTER FUND MUNICIPALS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (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, 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 its
investment policies and prudent investment management while seeking preservation
of shareholders' capital. The Fund's investment adviser is OppenheimerFunds,
Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge. Class B and Class C shares may be subject to a
contingent deferred sales charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its own
distribution and/or service plan, expenses directly attributable to a particular
class and exclusive voting rights with respect to matters affecting a single
class. Class B shares will automatically convert to Class A shares six years
after the date of purchase. The following is a summary of significant accounting
policies consistently followed by the Fund.
INVESTMENT VALUATION AND TRANSACTIONS. Portfolio securities are valued at the
close of the New York Stock Exchange on each trading day. Long-term debt
securities are valued at the mean between the bid and asked price using
information available from a portfolio pricing service approved by the Board of
Trustees, dealer-supplied valuations, provided the Manager is satisfied that the
firm rendering the quotes is reliable and that the quotes reflect current value,
or analysis of various relationships between comparable securities. Securities
for which market quotations are not readily available are valued at fair value
under consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Investment transactions are accounted for on
the date the investments are purchased or sold (trade date). Cost is determined
and realized gains and losses are based upon the specific identification method
for both financial statement and federal income tax purposes. Interest income is
recorded on the accrual basis. In computing net investment income, the Fund
amortizes premiums and accretes original issue discount. For municipal bonds
purchased after April 30, 1993 and subsequently sold at a gain, market discount
is accreted at the time of sale (to the extent of the lesser of the accrued
market discount or the disposition gain) and is treated as taxable income,
rather than capital gain.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS. Delivery and payment for securities
that have been purchased by the Fund on a forward commitment or when-issued
basis can take place a month or more after the transaction date. Normally the
settlement date occurs within six months of the purchase of municipal bonds and
notes. However, the Fund may, from time to time, purchase municipal securities
whose settlement date extends beyond six months and possibly as long as two
years or more beyond trade 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.
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
28
<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, 1997, the Fund
had available for federal income tax purposes an unused capital loss carryover
of approximately $58,103,000 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 Rochester
Capital Advisors, L.P. (the Fund's former investment adviser) to the Manager,
all but one of the existing independent trustees retired effective January 4,
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. The retirement plan expense,
which is included in trustees' fees and expenses, amounted to $30,090 for the
six months ended June 30, 1997. Payments of $27,000 were made to retired
trustees during the six months ending June 30, 1997. At June 30, 1997, the Fund
had recognized an accumulated liability of $502,590.
DISTRIBUTIONS TO SHAREHOLDERS. Income dividends are declared and recorded each
day the New York Stock Exchange is open for business based on the projected net
investment income for a period, usually one month, calculated as if earned pro
rata throughout the period on a daily basis. Such dividends are paid monthly.
Distributions from net realized gains on investments, if any, are recorded on
the ex-dividend date and paid annually.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of the distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gain (loss) was recorded by the
Fund.
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.
29
<PAGE>
NOTE 2. SHARES OF BENEFICIAL INTEREST:
The Fund has authorized 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, 1997 (1) DECEMBER 31, 1996
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
CLASS A:
<S> <C> <C> <C> <C>
Sold 13,738,596 $246,387,073 20,027,352 $355,593,044
Dividends and distributions
reinvested 2,118,984 37,999,331 4,049,796 71,854,295
Redeemed (7,931,799) (142,116,955) (13,850,487) (245,389,573)
---------- ------------ ----------- ------------
Net increase 7,925,781 $142,269,449 10,226,661 $182,057,766
========== ============ =========== ============
CLASS B:
Sold 2,692,462 $ 48,162,358 -- $ --
Dividends and distributions
reinvested 10,623 191,304 -- --
Redeemed (14,659) (261,509) -- --
--------- ------------ ----------- ------------
Net increase 2,688,426 $ 48,092,153 -- $ --
========== ============ =========== ============
CLASS C:
Sold 669,399 $ 11,985,284 -- $ --
Dividends and distributions
reinvested 2,427 43,734 -- --
Redeemed (4,275) (76,985) -- --
---------- ------------ ----------- ------------
Net increase 667,551 $ 11,952,033 -- $ --
=========== ============ =========== ============
</TABLE>
- ------------
(1) For the six months ended June 30, 1997 for Class A shares and for the
period from March 16, 1997 (inception of offering) to June 30, 1997 for
Class B and Class C shares.
NOTE 3. PORTFOLIO INFORMATION:
At June 30, 1997, net unrealized appreciation on investments of $123,323,972 was
composed of gross appreciation of $134,250,695, and gross depreciation of
$10,926,723.
The Fund held $389,007,555 in inverse floating rate municipal bonds at June 30,
1997, comprising approximately 15.41% of net assets.
30
<PAGE>
The Fund intends to invest no more than 10% of its net assets in when-issued or
delayed delivery securities. In January, 1997, the Fund entered into a forward
delivery contract to purchase a total of $106,405,000 of Suffolk County
Industrial Development Agency (the Issuer), Solid Waste Disposal Facility
Revenue Bonds (Ogden Martin Systems of Huntington Limited Partnerships Resource
Recovery Facility), Series 1999 (the Bonds), as detailed below:
Face Amount Coupon Maturity
----------- ------ --------
$ 8,545,000 5.55% 2004
9,180,000 5.65% 2005
9,875,000 5.75% 2006
10,615,000 5.80% 2007
11,410,000 5.85% 2008
12,265,000 5.95% 2009
13,190,000 6.00% 2010
14,170,000 6.15% 2011
17,155,000 6.25% 2012
------------
$106,405,000
============
The Bonds will be issued and delivered on July 29, 1999 if the following terms
and conditions are met: 1) Counsel must render an opinion that the interest on
the Bonds is exempt for federal, state and local income tax purposes, except for
the alternative minimum tax, and 2) the bond insurer must issue the municipal
bond insurance policy related to the Bonds. The Fund has recorded this
commitment and is valuing the when-issued securities at current market value on
each trading day. In addition, the Fund has segregated sufficient liquid debt
securities with its custodian to cover this commitment. The aggregate market
value of securities purchased on a when-issued or delayed delivery basis at June
30, 1997 was $106,990,611, which represents 4.24% of the Fund's 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 of 0.54% on the first
$100 million of average annual net assets, 0.52% of the next $150 million, 0.47%
of the next $1,750 million, 0.46% of the next $3 billion, and 0.45% on net
assets in excess of $5 billion. During the six months ended June 30, 1997, the
Fund paid $5,579,419 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 the first six months of 1997, the Fund paid $353,070 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 and for other registered investment
companies. The Fund pays OFS an annual maintenance fee of $24.12 for each Class
A shareholder account and $26.02 for each Class B and Class C shareholder
account. During the six months ended June 30, 1997, the Fund paid a total of
$646,531 to OFS for transfer and shareholder servicing agent fees.
31
<PAGE>
For the six months ended June 30, 1997, commissions (sales charges paid by
investors) on sales of Class A shares totaled $5,954,569, of which $916,236 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by affiliated broker/dealers. Sales charges
advanced to brokers/dealers by OFDI on sales of the Fund's Class B and Class C
shares totaled $1,873,198 and $118,922, respectively, of which $2,614 was paid
to an affiliated broker/dealer for Class B shares. During the six months ended
June 30, 1997, OFDI received contingent deferred sales charges of $9,895 upon
redemption of Class B shares as reimbursement for sales commissions advanced by
OFDI at the time of sale of such shares.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI for a
portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% of the average annual net
assets of Class A shares of the Fund. Currently, the Board of Trustees has
limited the rate to 0.15% per year on Class A shares. OFDI uses the service fee
to reimburse brokers, dealers, banks and other financial institutions quarterly
for providing personal service and maintenance of accounts of their customers
that hold Class A shares. During the six months ended June 30, 1997, OFDI paid
$6,943 to an affiliated broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
The Fund has adopted compensation type Distribution and Service Plans for Class
B and Class C shares to compensate OFDI for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under the Plans,
the Fund pays OFDI an annual asset-based sales charge of 0.75% per year on Class
B and Class C shares, as compensation for sales commissions paid from its own
resources at the time of sale and associated financing costs. OFDI also receives
a service fee of 0.25% per year as compensation for costs incurred in connection
with the personal service and maintenance of accounts that hold shares of the
Fund, including amounts paid to brokers, dealers, banks and other financial
institutions. Both fees are computed on the average annual net assets of Class B
and Class C shares, determined as of the close of each regular business day.
During the period ended June 30, 1997, OFDI retained $65,477 and $14,236,
respectively, as compensation for Class B and Class C sales commissions and
service fee advances, as well as financing costs. If the Plans are terminated by
the Fund, the Board of Trustees may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain expenses it incurred before the
Plans were terminated. At June 30, 1997, OFDI had incurred unreimbursed expenses
of $2,279,138 for Class B and $219,931 for Class C.
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 no borrowings outstanding at June 30, 1997. For the six months
ended June 30, 1997, the average monthly loan balance was $5,268,920 at an
average interest rate of 6.248%. The maximum amount of borrowings outstanding at
any month-end was $16,480,000.
32
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
33
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
REAL ASSET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
====================================================================================================================================
STOCK FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Developing Markets Fund Quest Small Cap Value Fund Global Fund
Enterprise Fund(2) Capital Appreciation Fund(3) Quest Global Value Fund
International Growth Fund Quest Capital Value Fund Disciplined Value Fund
Discovery Fund Growth Fund Quest Value Fund
====================================================================================================================================
STOCK & BOND FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Main Street Income & Growth Fund Quest Growth & Income Value Fund Disciplined Allocation Fund
Quest Opportunity Value Fund Global Growth & Income Fund Multiple Strategies Fund(4)
Total Return Fund Equity Income Fund Bond Fund for Growth
====================================================================================================================================
BOND FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
====================================================================================================================================
MUNICIPAL FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
California Municipal Fund(5) Pennsylvania Municipal Fund(5) Rochester Division
Florida Municipal Fund(5) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(5) Insured Municipal Fund Limited Term New York
New York Municipal Fund(5) Intermediate Municipal Fund Municipal Fund
====================================================================================================================================
MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
====================================================================================================================================
LIFESPAN
- ------------------------------------------------------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
(1) Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
(2) Effective 4/1/96, the Fund is closed to new investors.
(3) On 12/18/96, the Fund's name was changed from "Target Fund."
(4) On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
(5) Available only to investors in certain states.
(6) An investment in money market funds is neither insured nor guaranteed by
the U.S. government and there can be no assurance that a money market fund
will be able to maintain a stable net asset value of $1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(c) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
34
<PAGE>
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------------------------
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- ------------------------
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24-hr automated information with OppenheimerFunds PhoneLink service,
information and available 24 hours a day, 7 days a week. PhoneLink
automated transactions gives you access to a variety of fund, account, and
- ------------------------ market information. Of course, you can always speak
1-800-533-3310 with a Customer Service Representative during the
- ------------------------ General Information hours shown at the left.
TELECOMMUNICATION DEVICE You can count on us whenever you need assistance.
for the Deaf (TDD) That's why the International Customer Service
Mon-Fri 8:30am-2pm ET Association, an independent, nonprofit organization
- ------------------------ made up of over 3,2000 customer service management
1-800-843-4461 professionals from around the country, honored the
- ------------------------ Oppenheimer funds' transfer agent, OppenheimerFunds
Services, with their Award of Excellence in 1993.
OPPENHEIMERFUNDS So call us today, or visit us at our website at
INFORMATION HOTLINE www.oppenheimerfunds.com--we're here to help.
24 hours a day, timely
and insightful messages
on the economy and
issues that affect your
investments
- ------------------------
1-800-835-3104
- ------------------------ [LOGO]
OPPENHEIMERFUNDS.(sm)
THE RIGHT WAY TO INVEST
35
<PAGE>
[GRAPHIC OMITTED] ROCHESTER
[LOGO] FUND
MUNICIPALS
The Rochester Funds
A Division of OppenheimerFunds, Inc.
350 Linden Oaks
Rochester, New York 14625-2807
- -------------------------------------------------------------------------------
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 Adviser OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
- --------------------------------------------------------------------------------
Custodian Citibank, N.A.
- --------------------------------------------------------------------------------
Independent Accountants Price Waterhouse LLP
- --------------------------------------------------------------------------------
Legal Counsel Kirkpatrick & Lockhart LLP
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.
