SEMIANNUAL REPORT JUNE 30, 1998
ROCHESTER
FUND MUNICIPALS
[LOGO]
[LOGO] OPPENHEIMERFUNDS(R)
THE RIGHT WAY TO INVEST
<PAGE>
[logo] ROCHESTER
FUND
MUNICIPALS
CONTENTS
2 President's Letter
3 Performance Update and Portfolio Review
4 An Interview with the Fund's Managers
6 Statement of Investments
29 Statement of Assets & Liabilities
30 Statement of Operations and Statements of Changes in Net Assets
31 Financial Highlights
33 Notes to Financial Statements
38 Officers & Trustees
Information & Services (see back cover)
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
o In managing Rochester Fund Municipals, we focused on higher-quality bonds,
because we feel the current market doesn't compensate investors for the
higher risks associated with lower-rated bonds.
o Our continued search for smaller new issues helps provide the Fund with
higher income and total return potential than ordinary NYS issues.
o The Fund concentrated on the same investment strategies that have proven
successful in the past. Our "scavenger hunts" continue to unearth
opportunities in areas where other municipal managers typically do not
venture. To help reduce volatility we include both premium bonds and
mandatory sinking fund issues that shorten effective maturity.
o Improving economic conditions throughout New York led us to find
creditworthy investments in virtually all areas of the state.
TOTAL RETURNS
For the 6 month and 1-year periods ended 6/30/98 without sales charges and
assuming reinvestment of all dividends into additional shares(1).
CLASS A
6 months 1 year
-------- ------
3.22% 9.67%
CLASS B
6 months 1 year
-------- ------
2.78% 8.70%
CLASS C
6 months 1 year
-------- ------
2.78% 8.76%
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
(1) Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account. Total returns for the 6-month period are cumulative and are
not annualized.
DEAR SHAREHOLDER,
- --------------------------------------------------------------------------------
[PHOTO]
Bridget A. Macaskill
President
Rochester Fund Municipals
As we move further into 1998, we remain impressed by the remarkable resilience
of the financial markets. Recent efforts by the United States to help support
the Japanese yen have inspired hope that the fallout of the Asian economic
crisis can be contained. In general, the U.S. and world markets have continued
to build wealth for investors at a virtually unprecedented pace.
<PAGE>
At OppenheimerFunds, we are pleased to help our fund shareholders
participate in the potential rewards of today's markets, but we also recognize
that this rate of growth cannot last forever. Because no one can predict exactly
when the next correction or bear market might occur, we think it is prudent to
continually identify, evaluate and manage the risks that may affect our fund
shareholders.
We believe that one of the leading risks facing investors today is that
stock valuations are at the high end of their historical range, while U.S.
corporate earnings growth is slowing. Given these facts, we believe it is
unlikely that stocks will sustain the growth rate of the past three years. Stock
prices could continue trading near current levels until earnings "catch up," or
there could be a market correction. However, we believe that either scenario
would be only a temporary pause on the way to potentially greater long-term
gains.
We are also examining the potential economic effects of the "millennium
problem" that may render many computer systems unable to recognize the year 2000
when it arrives. Solving this problem has required companies to divert
substantial human and financial resources from their core businesses, possibly
constraining global economic growth during 1999 and 2000.
For our part, we can report that OppenheimerFunds has made solid progress
toward ensuring that our shareholder accounting systems are fully "Year 2000
compliant," and that all shareholder accounts will make a seamless transition
into the 21st century.
We encourage you to meet with your financial advisor to discuss how a
possible market correction or the millennium problem may affect your
investments. Together, you can prepare your investment portfolio for the
challenges and opportunities of the new century.
Sincerely,
/s/ BRIDGET A. MACASKILL
- ------------------------
Bridget A. Macaskill
August 4, 1998
2 Rochester Fund Municipals
<PAGE>
PERFORMANCE UPDATE
- --------------------------------------------------------------------------------
Rochester Fund Municipals has performed well over the past six months, with
Class A shares providing a cumulative return of 3.22%, without sales charges.(1)
The Fund's positive returns can largely be attributed to successful management
of the portfolio's diversity. Over 1,000 issues from all over the state help us
to diversify the complete spectrum of risk, not just credit or interest rate
risk.
ROCHESTER FUND MUNICIPALS CLASS A
The Value of $10,000 invested for 5 years (without sales
charges) and the Lehman Brothers Municipal Bond Index
[GRAPHICAL REPRESENTATION]
Rochester Fund Municipals = $13,638
Lehman Brothers Municipal Index = $13,181
6/30/93 - 6/30/98
Results of a hypothetical $10,000 investment in Class A shares on June 30, 1998.
The Lehman Brothers Municipal Bond Index is an unmanaged index of a broad range
of investment grade municipal bonds which is widely regarded as a measure of the
performance of the general municipal bond market. The Index cannot be purchased
directly by investors.
TOTAL RETURNS(2)
For the periods ended 6/30/98
Cumulative Average Annual
----------------- --------------------
NAV MOP NAV MOP
--- --- --- ---
A SHARES
1-Year 9.67% 4.46% 9.67% 4.46%
5-Year 36.38% 29.90% 6.40% 5.37%
10-Year 132.25% 121.22% 8.79% 8.26%
Life (5/15/86) 170.56% 157.71% 8.56% 8.12%
B SHARES
1-Year 8.70% 3.70% 8.70% 3.70%
Life (3/17/97) 11.76% 7.76% 9.03% 5.99%
C SHARES
1-Year 8.76% 7.76% 8.76% 7.76%
Life (3/17/97) 11.83% 11.83% 9.08% 9.08%
(1) Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if
sales charges were taken into account.
(2) Total returns include changes in share price and reinvestment of
dividends and capital gains distributions in a hypothetical investment for
the periods shown. MOP stands for Maximum Offering Price, and calculations
for Class A returns at MOP include the maximum initial sales charge of
4.75%. Class B returns at MOP include the applicable contingent deferred
sales charge of 5% (1-year) and 4% (life-of-class). Class C returns for the
1-year period include the contingent deferred sales charge of 1%. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.75% asset-based
sales charge. NAV stands for Net Asset Value, and returns at NAV do not
reflect payment of any sales charge.
PORTFOLIO REVIEW(3)
- -------------------------------------------------------------------------------
------
YIELDS
------
For the 30 days ended 6/30/98
STANDARDIZED DIVIDEND
YIELD YIELD
------------ --------
CLASS A 4.62% 5.50%
CLASS B 3.98% 4.98%
CLASS C 3.99% 4.99%
Dividend yield (based on last distribution) and standardized yield (based on net
investment income for the 30-day period ended 6/30/98) are annualized and
divided by period-end offering price. Falling share prices may artificially
increase yields.
Investors should be aware that this report dated June 30, 1998 does not reflect
subsequent dividend reductions effective with the July dividend payment.
Investors are encouraged to contact their investment advisor and learn more
about the Fund's current standardized and distribution yields.
Rochester Fund Municipals is for investors looking for income that's
exempt from federal, New York State, and New York City personal income taxes.
CREDIT ALLOCATION
AAA 26.1%
AA 11.7%
[PIE CHART REPRESENTATION] A 29.8%
BBB 18.9%
BB 0.4%
B 1.9%
Not Rated 11.2%
WHAT WE LOOK FOR
o Issues that provide high triple tax-free income.
o Value-oriented issues with price appreciation potential.
o A diversity of issues across the state.
o Municipal regions with improving credit quality.
TOP 5 SECTORS
- --------------------------------------------------------------------------------
Hospital/Healthcare 16.5%
- --------------------------------------------------------------------------------
General Obligation 11.1%
- --------------------------------------------------------------------------------
Electric Utilities 10.2%
- --------------------------------------------------------------------------------
Multi-Family Housing 10.0%
- --------------------------------------------------------------------------------
Resource Recovery 8.9%
- --------------------------------------------------------------------------------
(3) Portfolio data are as of 6/30/98, and are subject to change. Portfolio data
are dollar-weighted based on total market value of investments. Securities
rated by a rating organization other than Standard & Poor's Rating Group
are included in the equivalent Standard & Poor's rating category. The
allocation includes rated securities and those not rated by a national
rating organization but to which the ratings given above have been assigned
by the Manager for internal purposes as being comparable, in the Manager's
judgment, to securities rated by a rating agency in the same category. See
page 28 for further explanation.
3 Rochester Fund Municipals
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
[PHOTO]
PORTFOLIO MANAGEMENT TEAM (l to r)
Tony Tanner
(Vice President, Rochester Division; Assistant Portfolio Manager)
Ron Fielding
(Senior Vice President, OppenheimerFunds, Inc.; Portfolio Manager
and Chief Strategist)
By maintaining a disciplined investment approach . . . we try to provide above
average yield and total return on behalf of our shareholders.
WHAT RECENT EVENTS HAVE WE SEEN IN THE NEW YORK MUNICIPAL BOND MARKET?
Thus far, 1998 has been interesting, yet fairly stable. The New York
municipal bond market cheapened in early 1998, due in part to the State's
largest municipal bond issue yet, for the Long Island Power Authority.
Fortunately, the demand for municipal bonds enabled the debt issued to date to
become completely absorbed into the market, while maintaining yields that we
view as being quite attractive.
One particular trend in 1998, which should be of special interest to
shareholders of the Fund, is the upgrading of state debt by the nation's rating
services. Last February, New York City General Obligation Debt was upgraded to
A3 from Baa1 by Moody's Investors Service, and most recently from BBB+ to A- by
Standard & Poor's Ratings Services. We've also seen upgrades in debt issued by
Niagara Mohawk (from BB+ to BBB+) and Long Island Lighting (from BB+ to A-);
issues we have believed in for many years.
The difference between the yields offered by high quality and lower quality
bonds has continued to be an issue in 1998. As we see that spread continue to
narrow, it becomes more and more important for us to conduct our own internal
research to determine a smaller, unrated issue's ability to reward the investor
with sufficient incremental yield to warrant the assumption of greater risk.
WHAT ABOUT INTEREST RATES?
Despite the fact that they are the single most influential force on the
performance of the Fund, we truly do not try to predict what will happen. Though
we have studied economics and finance at the graduate school level, we have
learned through years of experience that trying to predict interest rates is a
"fool's game"; fine for cocktail party conversation, but not when one's life
savings are at risk. By maintaining a disciplined investment approach, which has
weathered both rising and falling interest rate environments, we try to provide
above average yield and total return on behalf of our shareholders.
However, to answer the question, yields on New York municipal bonds have
shown little net change during the first six months of the year. The yield curve
is very "flat", meaning that there is little difference in yields for different
maturities of debt. As we get into the latter part of 1998, a continued low
inflationary environment should bode well for interest rates and the municipal
bond market.
HOW DO YOU MANAGE THE FUND IN THIS ENVIRONMENT?
In essence, the same way we always have. While we have always managed the Fund
to temper interest rate risk with a portfolio of widely diversified issues, we
look to the individual stories behind the issues to determine bond selection and
value for the portfolio. It's a micro, or "bottom-up" approach, but we believe
that it is where we, as portfolio managers, can best provide added value for our
shareholders. For example, it has always been our policy to select individual
bonds we believe to be undervalued, and sell bonds in areas that we believe to
be overvalued. Our own internal research helps identify what we believe to be a
solid financial opportunity, regardless of how the general marketplace views and
prices the issue.
Our investors should know that we have developed a certain affinity for
callable bonds, and have bought them especially when we believe they won't be
called. Such issues continue cranking out a lot of income if they pass their
call dates without being called, and their prices remain very steady. In
addition, callable bonds
4 Rochester Fund Municipals
<PAGE>
tend to outperform noncallables when interest rate volatility is low--precisely
what we have seen this year.
We will continue to follow the time-tested investment strategies we have
used for years. In each buy/sell decision, we look for individual, often obscure
bonds that offer a better risk/reward trade-off than those in the portfolio. In
markets that exhibit tight spreads, we find that our strategies of scavenger
hunting the secondary markets, looking to pick up odd lots and reducing the
Fund's tax exposure become even more important.
HOW HAS THE FUND PERFORMED?
Rochester Fund Municipals Class A shares have provided total returns of 9.67%
and 3.22% without sales charges, for the one-year and six month periods ended
June 30, 1998, respectively.(1)
In addition, investors should be aware that the Fund's (A Share) per share
price (without sales charge) experienced only minor fluctuations these first six
months--from $18.67 on December 31, 1997 to $18.71 on June 30, 1998. In
addition, in June, the Fund surpassed the $3.5 billion mark, and at this recent
quarter end, the portfolio has grown to include over 1,000 individual issues.
WHAT THOUGHTS WOULD YOU LIKE TO SHARE WITH THE FUND'S INVESTORS?
Our greatest concern is that the strength in the current equity market may cause
investors to underweight bonds and bond funds in their portfolios. We all
recognize the wonderful past performance of the equity markets, but we fear that
higher stock prices have made people inclined to allocate more money to stocks,
while these same consumers would buy less of any other item that had risen
sharply in price.
[PHOTO]
Portfolio Management Team (l to r)
Dan Loughran
(Assistant Vice President, Rochester Division; Senior Research Analyst)
Rich Stein
(Vice President, Rochester Division; Credit Analysis)
Even though our Fund's yield has decreased over the years, you should know
that, compared to the very low current inflation rates, current yields are
attractive. People often forget that when yields generally were higher, high
inflation was significantly reducing their purchasing power. Real interest
rates, after subtracting inflation, are in fact currently at very high levels.
Today's equity investor is well aware that a P/E ratio of 25 is considered
fairly normal in the U.S. equity market, but that means you'll earn 1/25, or
about 4%, on your ownership of that company. At month end, Rochester Fund
Municipals' Class A dividend yield was 5.50% (30 day standardized yield of
4.62%)(2), and that was tax-free.
We know that holding municipal bonds or muni bond funds can be fairly
boring in these times, but we continue to believe that investors should consult
with their financial advisors to ensure that their investment mix continues to
reflect their overall strategy.
(1) Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account. Past performance is not a guarantee of future investment
results.
(2) Dividend yield is based on an annualization of the prior monthly
distribution and the maximum offering price on 6/30/98. Standardized yield
is based on net investment income for the 30-day period ended 6/30/98.
Falling net asset values will tend to artificially raise yields.
* * * * *
Rochester Fund Municipals (Class A Share) has received Morningstar's
highest 5-star overall ranking at June 30, 1998. For the 3-year, 5-year and
10-year periods ended 6/30/98, the Fund's star rankings are five stars,
four stars and five stars, respectively. 1549, 860 and 349 municipal funds
were rated for these periods, respectively.(3)
(3) Source: Morningstar, Inc., 6/30/98. Overall star rankings are based on
a weighted average of the Fund's 3-, 5- and 10-year rankings. Ten percent
of the funds in an investment category receive five stars (highest), 22.5%
receive four stars (above average), 35% receive three stars (average), 22.5%
receive two stars (below average), and 10% receive one star (lowest).
Morningstar, Inc. is a nationally recognized mutual fund rating service.
Morningstar proprietary star rankings reflect historical risk-adjusted total
return as of June 30, 1998. The rankings are subject to change every month.
Rankings are based on past performance, which is no guarantee of future results.
Morningstar rankings are calculated from the fund's three-, five-, and ten-year
average annual returns in excess of 90-day Treasury bill returns with
appropriate fee adjustments, and a risk factor that reflects fund performance
below 90-day T-bill returns.
5 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
====================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--102.2%
NEW YORK--92.8%
$ 215,000 Albany County IDA (Upper Hudson Library) 8.750% 05/01/07 $ 225,505
940,000 Albany County IDA (Upper Hudson Library) 8.750 05/01/22 1,011,280
495,512 Albany Hsg. Authority 0.000 10/01/12 (p) 131,008
400,000 Albany IDA (Albany Golf) 7.500 05/01/12 441,232
2,560,000 Albany IDA (Albany Medical Center) 8.250 08/01/04 2,744,883
1,015,000 Albany IDA (Albany Rehab.) 8.375 06/01/23 1,125,331
1,715,000 Albany IDA (MARA Mansion Rehab.) 6.500 02/01/23 1,769,400
1,395,000 Albany IDA (Port of Albany) 7.250 02/01/24 1,526,549
1,770,000 Albany Parking Authority 0.000 11/01/17 651,041
10,070,000 Allegany County IDA (Alfred University) 7.500 09/01/11 11,033,900
1,500,000 Allegany County IDA (Houghton College) 5.250 01/15/24 1,476,120
4,190,000 Amherst IDA (Amherst Rink) 5.650 10/01/22 4,325,295
32,670 Auburn IDA (Wegmans) 7.250 12/01/1998 32,840
1,100,000 Babylon IDA (JFB & Sons Lithographers) 7.625 12/01/06 1,165,032
2,570,000 Babylon IDA (JFB & Sons Lithographers) 8.625 12/01/16 2,766,502
1,330,000 Babylon IDA (WWH Ambulance) 7.375 09/15/08 1,473,893
3,850,000 Batavia Hsg. Authority (Trocaire Place) 8.750 04/01/25 4,054,897
515,000 Batavia Hsg. Authority (Washington Towers) 6.500 01/01/23 537,717
800,000 Battery Park City Authority 5.750 06/01/23 806,600
1,050,000 Battery Park City Authority 5.800 11/01/22 1,111,877
700,000 Battery Park City Authority 10.000 06/01/23 726,775
1,450,000 Bayshore HDC 7.500 02/01/23 1,555,720
215,000 Beacon IDA (Craig House) 9.000 07/01/11 215,030
1,000,000 Bethany Retirement Home 7.450 02/01/24 1,161,720
1,065,000 Blauvelt Volunteer Fire Company 6.250 10/15/17 1,088,856
35,000 Bleeker Terrace HDC 8.100 07/01/01 35,184
45,000 Bleeker Terrace HDC 8.350 07/01/04 45,143
900,000 Bleeker Terrace HDC 8.750 07/01/07 908,343
6,965,000 Brookhaven IDA (Dowling College) 6.750 03/01/23 7,504,370
870,000 Brookhaven IDA (Farber) (b) 6.375(v) 12/01/02 870,000
490,000 Brookhaven IDA (Farber) (b) 6.375(v) 12/01/04 490,000
535,000 Brookhaven IDA (Interdisciplinary School) 8.500 12/01/04 588,479
3,220,000 Brookhaven IDA (Interdisciplinary School) 9.500 12/01/19 3,664,457
190,000 Broome County IDA (Industrial Park) 7.550 12/01/00 191,606
195,000 Broome County IDA (Industrial Park) 7.600 12/01/01 196,702
645,000 Broome County IDA (Simulator) 8.250 01/01/02 659,674
600,000 Capital District Youth Center 6.000 02/01/17 640,938
500,000 Carnegie Redevelopment Corp. 7.000 09/01/21 549,775
6,250,000 Castle Rest Residential Health Care Fac. 5.750 08/01/37 6,587,750
1,910,000 Cattaraugus County IDA (Cherry Creek) 9.800 09/01/10 2,117,502
8,465,000 Cattaraugus County IDA (St. Bonaventure University) 8.300 12/01/10 9,262,742
8,600,000 Cayuga County COP (Auburn Hospital) 6.000 01/01/21 9,107,744
1,700,000 Chautauqua County IDA (Jamestown Devel. Corp.) 7.125 11/01/08 1,707,650
3,395,000 Chautauqua County IDA (Jamestown Devel. Corp.) 7.125 11/01/18 3,414,555
685,000 City of Port Jervis (Future Home Tech.) 10.000 11/01/08 709,085
2,255,000 City of Port Jervis (Mercy Hospital) 5.500 11/01/16 2,271,845
5,000 Clifton Park COP (Clifton Commons) 8.500 08/01/08 6,648
3,495,000 Clifton Springs Hospital & Clinic 8.000 01/01/20 3,889,865
</TABLE>
6 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 35,000 Cohoes GO 6.200% 03/15/12 $ 35,364
25,000 Cohoes GO 6.200 03/15/13 25,182
25,000 Cohoes GO 6.250 03/15/14 25,260
25,000 Cohoes GO 6.250 03/15/15 25,338
25,000 Cohoes GO 6.250 03/15/16 25,230
595,000 Columbia County IDA (ARC) 7.750 06/01/05 653,274
2,650,000 Columbia County IDA (ARC) 8.650 06/01/18 3,024,127
685,000 Columbia County IDA (Berkshire Farms) 6.900 12/15/04 739,684
1,855,000 Columbia County IDA (Berkshire Farms) 7.500 12/15/14 2,065,320
60,000 Cortland County IDA (Paul Bunyon Products) 8.000 07/01/00 61,298
3,500,000 Dutchess County IDA (Bard College) 7.000 11/01/17 3,915,905
1,800,000 Dutchess County IDA (Merchants Press) (b) 7.950(d) 06/30/02 1,080,000
4,590,000 Dutchess County IDA (Merchants Press) (b) 9.000(d) 06/30/22 2,754,000
1,700,000 Dutchess County Res Rec (Solid Waste) 6.800 01/01/10 1,839,927
1,805,000 Dutchess County Res Rec (Solid Waste) 7.000 01/01/10 1,960,320
1,540,000 Dutchess County Water & Waste 0.000 06/01/25 374,697
1,540,000 Dutchess County Water & Waste 0.000 06/01/26 354,570
1,000,000 Dutchess County Water & Waste 0.000 06/01/27 218,380
3,000,000 Dutchess County Water & Waste 5.375 06/01/19 3,010,350
2,000,000 East Rochester Hsg. Authority (Linden Knoll) 5.350 02/01/38 1,999,900
3,250,000 East Rochester Hsg. Authority (St. John's Meadows) 5.675 08/01/22 3,410,810
4,250,000 East Rochester Hsg. Authority (St. John's Meadows) 5.700 08/01/27 4,487,660
1,885,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/37 1,996,705
4,095,000 East Rochester Hsg. Authority (St. John's Meadows) 5.950 08/01/27 4,296,515
25,000 Elmira HDC 7.500 08/01/07 25,773
3,520,000 Erie County IDA (Affordable Hospitality) 9.250 12/01/15 3,662,419
1,370,000 Erie County IDA (Air Cargo) 8.250 10/01/07 1,426,882
2,380,000 Erie County IDA (Air Cargo) 8.500 10/01/15 2,523,252
100,000 Erie County IDA (Episcopal Church Home) 6.000 02/01/28 101,749
63,000 Erie County IDA (Great Lakes Orthodontic) 12.099 05/01/00 68,128
3,230,000 Erie County IDA (Medaille College) 8.000 12/30/22 3,574,899
1,355,000 Erie County IDA (Mercy Hospital) 6.250 06/01/10 1,397,046
16,565,000 Erie County Water Revenue, 4th Series 0.000 12/01/17 4,127,170
4,245,000 Franklin County SWMA 6.250 06/01/15 4,420,488
160,000 Fulton County IDA (Crossroads Incubator) 8.500 12/15/1998 (a) 163,363
700,000 Geneva IDA (FLCP) 8.250 11/01/04 765,730
1,000,000 Geneva IDA (FLCP) 8.500 11/01/16 1,096,910
2,055,000 Groton Community Health Care Center 7.450 07/15/21 2,404,823
680,000 Hamilton Elderly Hsg. Corp. 11.250 01/01/15 711,457
1,465,000 Herkimer County IDA (Burrows Paper) 7.250 01/01/01 1,509,023
14,440,000 Herkimer County IDA (Burrows Paper) 8.000 01/01/09 15,776,711
6,595,000 Housing NY Corp. 5.500 11/01/20 6,681,790
50,000 Housing NY Corp. 5.500 11/01/20 50,356
990,000 Hudson IDA (Have, Inc.) 8.125 12/01/17 1,072,130
435,000 Hudson IDA (Northside) 9.000 12/01/09 465,259
960,000 Islip IDA (Leeway School) 9.000 08/01/21 1,055,386
50,000 Islip IDA (WJL Realty) 7.800 03/01/03 52,132
100,000 Islip IDA (WJL Realty) 7.850 03/01/04 104,263
100,000 Islip IDA (WJL Realty) 7.900 03/01/05 104,280
500,000 Islip IDA (WJL Realty) 7.950 03/01/10 527,085
</TABLE>
7 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 Islip Res Rec 6.500% 07/01/09 $ 2,286,780
2,650,000 Lockport HDC 6.000 10/01/18 2,754,172
21,450,000 Long Island Power Authority 5.500 12/01/29 21,747,297
10,000,000 Long Island Power Authority 5.750 12/01/24 10,517,400
100,000 Lowville GO 7.200 09/15/05 116,061
75,000 Lowville GO 7.200 09/15/07 88,946
100,000 Lowville GO 7.200 09/15/12 121,090
100,000 Lowville GO 7.200 09/15/13 121,604
100,000 Lowville GO 7.200 09/15/14 121,776
5,350,000 Lyons Community Health Initiatives Corp. 6.800 09/01/24 5,913,195
4,640,000 Macleay Hsg. (Larchmont Woods) 8.500 01/01/31 4,942,389
2,495,000 Mechanicsville HDC 6.900 08/01/22 2,614,760
905,000 Middleton IDA (Fleurchem) 8.000 12/01/16 1,005,084
3,740,000 Middleton IDA (Southwinds) 8.375 03/01/18 4,177,692
70,000 Monroe County Airport 7.250 01/01/19 74,198
450,000 Monroe County COP 8.050 01/01/11 475,151
4,260,000 Monroe County IDA (Al Sigl Center) 6.600 12/15/17 4,567,444
1,590,000 Monroe County IDA (Al Sigl Center) 7.250 12/15/15 1,753,643
3,080,000 Monroe County IDA (Brazill Merk) 7.900 12/15/14 3,273,239
900,000 Monroe County IDA (Canal Ponds) 7.000 06/15/13 985,842
10,000 Monroe County IDA (Cohber) 7.550 12/01/01 10,238
10,000 Monroe County IDA (Cohber) 7.650 12/01/02 10,272
10,000 Monroe County IDA (Cohber) 7.700 12/01/03 10,276
170,000 Monroe County IDA (Cohber) 7.850 12/01/09 175,211
2,233,749 Monroe County IDA (Cottrone Devel.) 9.500 12/01/10 2,432,575
345,722 Monroe County IDA (De Carolis) 7.500 01/30/05 345,933
880,000 Monroe County IDA (DePaul CF) 6.450 02/01/14 971,564
1,285,000 Monroe County IDA (DePaul CF) 6.500 02/01/24 1,416,481
405,000 Monroe County IDA (DePaul Properties) 8.300 09/01/02 443,722
4,605,000 Monroe County IDA (DePaul Properties) 8.800 09/01/21 5,075,953
14,565,000 Monroe County IDA (Genesee Hospital) 7.000 11/01/18 15,402,488
1,000,000 Monroe County IDA (Jewish Home) 6.875 04/01/17 1,058,960
4,945,000 Monroe County IDA (Jewish Home) 6.875 04/01/27 5,197,937
1,495,000 Monroe County IDA (Melles Griot) 9.500 12/01/09 1,535,634
2,053,000 Monroe County IDA (Morrell/Morrell) 7.000 12/01/07 2,157,518
500,000 Monroe County IDA (Nazareth College) 5.250 04/01/23 501,480
4,330,000 Monroe County IDA (Piano Works) 7.625 11/01/16 4,789,500
2,625,000 Monroe County IDA (Roberts Wesleyan College) 6.700 09/01/11 2,723,910
3,490,000 Monroe County IDA (RTM Turbine) (b) 7.750 12/01/06 2,443,000
3,060,000 Monroe County IDA (RTM Turbine) (b) 8.000 12/01/11 2,142,000
770,000 Monroe County IDA (RTM Turbine) (b) 8.500 12/01/16 539,000
70,000 Monroe County IDA (West End Business) 6.750 12/01/04 74,450
520,000 Monroe County IDA (West End Business) 6.750 12/01/04 553,056
125,000 Monroe County IDA (West End Business) 6.750 12/01/04 133,645
345,000 Monroe County IDA (West End Business) 8.000 12/01/14 382,025
515,000 Monroe County IDA (West End Business) 8.000 12/01/14 570,270
170,000 Monroe County IDA (West End Business) 8.000 12/01/14 188,244
1,375,000 Monroe County IDA (West End Business) 8.000 12/01/14 1,522,565
285,000 Monroe HDC 7.000 08/01/21 296,055
5,860,000 Montgomery County IDA (Amsterdam) 7.250 01/15/19 6,052,853
</TABLE>
8 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,015,000 Montgomery County IDA (New Dimensions in Living) 8.900% 05/01/16 $ 1,106,035
10,000,000 MTA IVRC (b) 7.306(f) 07/01/11 10,812,500
1,000,000 MTA Service Contract, Series 8 5.375 07/01/21 1,006,610
1,000,000 MTA Service Contract, Series R 5.500 07/01/12 1,043,800
1,270,000 MTA Service Contract, Series R 5.500 07/01/12 1,325,626
815,000 MTA Service Contract, Series R 5.500 07/01/13 846,964
2,500,000 MTA Service Contract, Series R 5.500 07/01/14 2,586,675
3,320,000 MTA Service Contract, Series R 5.500 07/01/17 3,402,137
4,360,000 MTA Service Contract, Series R 5.500 07/01/17 4,467,866
9,400,000 MTA YCR (b) 7.253(f) 07/01/13 9,799,500
3,000,000 MTA YCR (b) 7.253(f) 07/01/22 3,112,500
5,000,000 MTA, Series C1 5.375 07/01/27 5,104,150
9,690,000 MTA, Series C1 5.500 07/01/22 9,837,869
13,480,000 MTA, Series C1 5.625 07/01/27 13,813,495
70,000 MTA, Series G 5.500 07/01/14 70,016
1,000,000 MTA, Series G 5.500 07/01/15 1,000,320
65,000 MTA, Series G 5.500 07/01/16 65,010
45,000 MTA, Series H 5.500 07/01/15 45,008
802,824 Municipal Assistance Corp. for Troy, NY 0.000 07/15/21 250,449
1,218,573 Municipal Assistance Corp. for Troy, NY 0.000 01/15/22 370,653
2,725,000 Nassau County IDA (ACLDD) 8.125 10/01/22 3,018,265
305,000 Nassau County IDA (RJS Scientific) 8.050 12/01/05 338,248
2,700,000 Nassau County IDA (RJS Scientific) 9.050 12/01/25 3,134,457
1,950,000 Nassau County IDA (Sharp International) 7.375 12/01/07 2,059,824
3,070,000 Nassau County IDA (Sharp International) 7.375 12/01/07 3,241,337
2,610,000 Nassau County IDA (Sharp International) 7.875 12/01/12 2,777,405
1,650,000 Nassau County IDA (Sharp International) 7.875 12/01/12 1,756,359
500,000 Nassau County IDA (Structural Industries) 7.750 02/01/12 568,940
20,000 New Hartford HDC 7.375 01/01/24 21,221
1,515,000 New Hartford Sunset Wood Project 5.950 08/01/27 1,582,463
3,000,000 New Rochelle IDA (CNR) 6.750 07/01/22 3,237,000
4,950,000 Newark/Wayne Community Hospital 5.875 01/15/33 5,151,218
2,365,000 Newark/Wayne Community Hospital 7.600 09/01/15 2,571,110
185,000 Newburgh GO 7.100 09/15/07 197,870
185,000 Newburgh GO 7.100 09/15/08 196,674
180,000 Newburgh GO 7.150 09/15/09 191,275
150,000 Newburgh GO 7.150 09/15/10 159,000
155,000 Newburgh GO 7.200 09/15/11 163,641
155,000 Newburgh GO 7.200 09/15/12 162,832
160,000 Newburgh GO 7.250 09/15/13 168,141
155,000 Newburgh GO 7.250 09/15/14 162,685
2,310,000 Newburgh IDA (ARMA Textile Printers) 7.125 11/01/07 2,413,673
4,880,000 Newburgh IDA (ARMA Textile Printers) 8.000 11/01/17 5,143,764
1,045,000 Niagara County IDA (Maryland Maple) 10.250 11/15/09 1,085,703
1,900,000 Niagara County IDA (Sevenson Hotel) 6.600 05/01/07 1,955,081
715,000 North Babylon Volunteer Fire Company 5.750 08/01/22 752,223
585,000 North Tonawanda HDC 6.800 12/15/07 640,481
3,295,000 North Tonawanda HDC 7.375 12/15/21 3,842,827
270,000 NYC GO 0.000 05/15/11 140,648
4,990,000 NYC GO 0.000 11/15/11 2,534,371
</TABLE>
9 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 200,000 NYC GO 0.000% 05/15/12 $ 98,370
40,000 NYC GO 0.000 10/01/12 19,298
1,750,000 NYC GO 0.000(c) 05/15/14 1,435,438
500,000 NYC GO 0.000(c) 08/01/14 397,140
70,000 NYC GO 0.000(c) 08/15/16 (p) 61,156
100,000 NYC GO 0.000(c) 08/01/25 62,542
2,875,000 NYC GO 5.000 08/01/23 2,769,459
1,285,000 NYC GO 5.125 02/01/11 1,301,756
1,250,000 NYC GO 5.125 08/01/13 1,249,938
1,250,000 NYC GO 5.125 08/01/25 1,217,800
2,060,000 NYC GO 5.250 08/01/12 2,098,419
9,465,000 NYC GO 5.250 08/01/20 9,385,115
2,970,000 NYC GO 5.250 08/01/21 2,940,449
5,910,000 NYC GO 5.300 08/01/24 5,897,294
570,000 NYC GO 5.375 08/01/19 574,372
1,170,000 NYC GO 5.375 08/01/27 1,173,042
13,170,000 NYC GO 5.375 11/15/27 13,269,565
85,000 NYC GO 5.500 10/01/18 86,081
4,305,000 NYC GO 5.500 02/15/26 4,377,109
14,515,000 NYC GO 5.500 11/15/37 14,753,481
20,000 NYC GO 5.625 08/01/16 20,588
35,000 NYC GO 5.750 02/01/20 36,504
4,865,000 NYC GO 5.875 08/01/24 5,202,388
2,000,000 NYC GO 5.875 08/01/24 2,116,900
6,000,000 NYC GO 6.000 02/01/11 6,485,940
90,000 NYC GO 6.000 08/01/15 (p) 90,178
10,000 NYC GO 6.000 08/01/15 10,015
50,000 NYC GO 6.000 10/15/16 53,741
40,000 NYC GO 6.000 08/01/19 (p) 40,079
70,000 NYC GO 6.000 02/15/20 74,183
90,000 NYC GO 6.000 05/15/20 98,402
180,000 NYC GO 6.000 05/15/20 (p) 189,454
90,000 NYC GO 6.000 02/15/24 96,242
10,000 NYC GO 6.000 02/01/25 (p) 11,055
665,000 NYC GO 6.000 02/01/25 704,740
8,180,000 NYC GO 6.000 10/01/26 8,810,842
80,000 NYC GO 6.000 10/01/26 (p) 90,237
14,885,000 NYC GO 6.125 02/01/25 16,030,401
3,715,000 NYC GO 6.125 02/01/25 (p) 4,183,684
8,735,000 NYC GO 6.125 08/01/25 9,484,201
15,000 NYC GO 6.250 04/01/21 16,350
55,000 NYC GO 6.250 04/01/21 (p) 62,499
5,765,000 NYC GO 6.250 04/15/27 6,576,770
6,435,000 NYC GO 6.250 04/15/27 (p) 7,006,750
95,000 NYC GO 6.500 08/01/14 108,443
405,000 NYC GO 6.500 08/01/14 (p) 449,591
1,580,000 NYC GO 6.500 08/01/15 1,739,438
420,000 NYC GO 6.500 08/01/15 (p) 479,430
1,170,000 NYC GO 6.600 02/15/10 1,310,903
830,000 NYC GO 6.600 02/15/10 (p) 946,026
</TABLE>
10 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 15,580,000 NYC GO 6.625% 02/15/25 (p) $ 17,780,052
420,000 NYC GO 6.625 08/01/25 (p) 482,609
1,580,000 NYC GO 6.625 08/01/25 1,765,713
5,000 NYC GO 7.000 02/01/10 5,063
590,000 NYC GO 7.000 10/01/12 (p) 663,426
35,000 NYC GO 7.000 10/01/12 38,698
25,000 NYC GO 7.000 02/01/18 27,289
10,000 NYC GO 7.000 02/01/20 10,916
75,000 NYC GO 7.000 02/01/20 81,866
575,000 NYC GO 7.000 02/01/20 (p) 637,681
560,000 NYC GO 7.000 02/01/22 611,268
4,040,000 NYC GO 7.000 02/01/22 (p) 4,480,400
875,000 NYC GO 7.100 02/01/09 (p) 973,271
125,000 NYC GO 7.100 02/01/09 137,783
3,525,000 NYC GO 7.100 02/01/10 (p) 3,920,893
475,000 NYC GO 7.100 02/01/10 523,574
210,000 NYC GO 7.100 02/01/11 230,278
1,555,000 NYC GO 7.100 02/01/11 (p) 1,729,642
3,520,000 NYC GO 7.200 02/01/14 (p) 3,926,947
480,000 NYC GO 7.200 02/01/14 527,083
2,465,000 NYC GO 7.200 02/01/15 (p) 2,749,979
335,000 NYC GO 7.200 02/01/15 367,860
6,385,000 NYC GO 7.250 08/15/24 (p) 6,997,322
7,435,000 NYC GO 7.250 08/15/24 8,026,603
300,000 NYC GO 7.400 02/01/02 (p) 332,775
30,000 NYC GO 7.400 02/15/02 33,066
1,825,000 NYC GO 7.500 02/01/03 (p) 2,054,074
175,000 NYC GO 7.500 02/15/03 195,083
240,000 NYC GO 7.500 02/01/16 265,896
2,760,000 NYC GO 7.500 02/01/16 (p) 3,113,363
120,000 NYC GO 7.500 02/01/18 132,948
1,380,000 NYC GO 7.500 02/01/18 (p) 1,556,681
1,705,000 NYC GO 7.500 08/01/19 (p) 1,947,144
160,000 NYC GO 7.500 08/01/19 179,154
6,855,000 NYC GO 7.500 08/01/20 (p) 7,828,547
645,000 NYC GO 7.500 08/01/20 722,213
6,180,000 NYC GO 7.500 08/15/20 (p) 7,298,642
915,000 NYC GO 7.500 08/01/21 (p) 1,044,948
85,000 NYC GO 7.500 08/01/21 95,175
310,000 NYC GO 7.625 02/01/13 344,717
3,535,000 NYC GO 7.625 02/01/13 (p) 4,002,186
20,000 NYC GO 7.625 02/01/14 22,240
250,000 NYC GO 7.625 02/01/14 (p) 283,040
1,500,000 NYC GO 7.750 02/01/10 1,685,415
60,000 NYC GO 7.750 08/15/12 66,423
90,000 NYC GO 7.750 08/15/12 (p) 101,137
6,000,000 NYC GO 7.750 02/01/13 (p) 6,802,680
60,000 NYC GO 7.750 08/15/13 66,423
940,000 NYC GO 7.750 08/15/13 (p) 1,056,316
110,000 NYC GO 7.750 08/15/17 121,605
</TABLE>
11 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 20,000 NYC GO 7.750% 08/15/17 (p $ 22,475
40,000 NYC GO 8.000 08/01/18 (p) 45,187
5,000 NYC GO 8.000 08/01/18 5,581
10,000 NYC GO 8.000 08/15/20 (p) 11,310
250,000 NYC GO 8.000 08/15/21 (p) 282,753
5,000 NYC GO 8.250 08/01/12 5,684
25,000 NYC GO 8.250 08/01/13 28,422
5,000 NYC GO 8.250 08/01/13 5,609
1,620,000 NYC GO 8.250 08/01/14 (p) 1,838,182
5,000 NYC GO 8.250 08/01/14 5,617
40,000 NYC GO 8.250 11/15/15 45,310
960,000 NYC GO 8.250 11/15/15 (p) 1,101,629
2,870,000 NYC GO 8.250 11/15/18 (p) 3,293,411
130,000 NYC GO 8.250 11/15/18 (p) 146,818
10,000 NYC GO 8.250 11/15/20 11,294
10,000 NYC GO 8.250 11/15/20 (p) 11,475
16,387,000 NYC GO CARS 8.020(f) 08/12/10 18,681,180
8,387,000 NYC GO CARS 8.020(f) 09/01/11 9,582,148
13,640,000 NYC GO Indexed Flt. 6.080(c) (f) 08/01/14 14,026,830
6,200,000 NYC GO RIBS 7.383(f) 08/01/09 6,874,250
4,200,000 NYC GO RIBS 7.383(f) 07/29/10 4,646,250
5,400,000 NYC GO RIBS 7.481(f) 08/22/13 5,845,500
3,050,000 NYC GO RIBS 7.481(f) 08/01/15 3,297,813
13,150,000 NYC GO RIBS 8.118(f) 08/01/13 14,843,063
15,000,000 NYC GO RITES 8.110(f) 10/01/11 16,666,200
320,058 NYC HDC (Albert Einstein) 6.500 12/15/17 335,373
902,041 NYC HDC (Amsterdam) 6.500 08/15/18 902,546
1,500,978 NYC HDC (Atlantic Plaza) 7.034 02/15/19 1,576,553
1,045,000 NYC HDC (Barclay Avenue) 6.450 04/01/17 1,098,117
4,055,000 NYC HDC (Barclay Avenue) 6.600 04/01/33 4,259,696
2,798,506 NYC HDC (Boulevard) 6.500 08/15/17 2,930,092
480,089 NYC HDC (Bridgeview) 6.500 12/15/17 503,061
1,291,409 NYC HDC (Cadman Plaza) 6.500 11/15/18 1,355,954
505,228 NYC HDC (Cadman Plaza) 7.000 12/15/18 530,848
189,747 NYC HDC (Candia) 6.500 06/15/18 198,881
3,641,207 NYC HDC (Clinton) 6.500 07/15/17 3,812,198
310,252 NYC HDC (Contello III) 7.000 12/15/18 325,923
1,506,452 NYC HDC (Cooper Gram) 6.500 08/15/17 1,577,285
1,149,412 NYC HDC (Court Plaza) 6.500 08/15/17 1,203,917
1,708,352 NYC HDC (Crown Gardens) 7.250 01/15/19 1,795,939
3,663,151 NYC HDC (East Midtown) 6.500 11/15/18 3,841,180
3,510,944 NYC HDC (Esplanade Gardens) 7.000 01/15/19 3,688,984
83,671 NYC HDC (Essex) 6.500 07/15/18 87,827
515,452 NYC HDC (Forest Park) 6.500 12/15/17 539,936
1,673,652 NYC HDC (Gouverneur Gardens) 7.034 02/15/19 1,758,473
369,077 NYC HDC (Heywood) 6.500 10/15/17 386,501
4,160,976 NYC HDC (Hudsonview) 6.500 09/15/17 4,356,958
1,176,073 NYC HDC (Janel) 6.500 09/15/17 1,231,466
233,096 NYC HDC (Kings Arms) 6.500 11/15/18 244,746
410,703 NYC HDC (Kingsbridge) 6.500 08/15/17 430,014
12 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,256,000 NYC HDC (Leader) 6.500% 03/15/18 $ 1,315,962
1,746,383 NYC HDC (Lincoln Amsterdam) 7.250 11/15/18 1,835,536
210,126 NYC HDC (Middagh) 6.500 01/15/18 220,130
2,742,722 NYC HDC (Montefiore Hsg. Project) 6.500 10/15/17 2,872,206
50,000 NYC HDC (Multi-Family) 5.850 05/01/25 51,527
1,735,000 NYC HDC (Multi-Family) 5.850 05/01/26 1,789,982
4,390,000 NYC HDC (Multi-Family) 5.850 05/01/26 4,531,665
38,880,000 NYC HDC (Multi-Family) 6.600 04/01/30 41,327,885
30,000 NYC HDC (Multi-Family) 7.300 06/01/10 32,049
1,145,000 NYC HDC (Multi-Family) 7.350 06/01/19 1,221,532
882,432 NYC HDC (New Amsterdam) 6.500 08/15/18 926,306
1,098,007 NYC HDC (Riverbend) 6.500 11/15/18 1,152,885
6,721,013 NYC HDC (Riverside Park) 7.250 11/15/18 7,060,289
480,187 NYC HDC (RNA House) 7.000 12/15/18 504,538
691,728 NYC HDC (Robert Fulton) 6.500 12/15/17 724,827
250,997 NYC HDC (Rosalie Manning) 7.034 11/15/18 263,635
667,310 NYC HDC (Scott Tower) 7.000 12/15/18 701,016
915,051 NYC HDC (Seaview) 6.500 01/15/18 958,616
1,703,695 NYC HDC (Sky View) 6.500 11/15/18 1,788,846
3,190,000 NYC HDC (South Bronx) 8.100 09/01/23 3,382,102
1,736,454 NYC HDC (Stevenson) 6.500 05/15/18 1,819,769
498,313 NYC HDC (Stryckers Bay) 7.034 11/15/18 524,380
377,737 NYC HDC (St. Martin) 6.500 11/15/18 396,616
1,741,685 NYC HDC (Tivoli) 6.500 01/15/18 1,825,216
374,493 NYC HDC (Towers) 6.500 08/15/17 392,251
236,587 NYC HDC (Townhouse) 6.500 01/15/18 247,851
363,588 NYC HDC (Tri-Faith House) 7.000 01/15/19 381,953
1,545,482 NYC HDC (University) 6.500 08/15/17 1,618,769
463,337 NYC HDC (Washington Square) 7.000 01/15/19 486,527
417,920 NYC HDC (West Side) 6.500 11/15/18 438,807
4,686,215 NYC HDC (West Village) 6.500 11/15/13 4,921,041
269,072 NYC HDC (Westview) 6.500 10/15/17 281,890
618,095 NYC HDC (Woodstock Terrace) 7.034 02/15/19 649,216
5,235,000 NYC HDC, Series B 5.875 11/01/18 5,453,980
800,000 NYC Health & Hospital 5.750 02/15/22 833,664
26,500,000 NYC Health & Hospital LEVRRS 6.994(f) 02/15/11 29,050,625
1,035,000 NYC IDA (ALA Realty) 7.500 12/01/10 1,133,190
1,355,000 NYC IDA (ALA Realty) 8.375 12/01/15 1,553,589
870,000 NYC IDA (Allied Metal) 6.375 12/01/14 883,285
1,740,000 NYC IDA (Allied Metal) 7.125 12/01/27 1,765,404
16,685,000 NYC IDA (American Airlines) 6.900 08/01/24 18,590,928
1,795,000 NYC IDA (American Airlines) 7.750 07/01/19 1,863,731
11,445,000 NYC IDA (American Airlines) 8.000 07/01/20 11,897,306
1,255,000 NYC IDA (Amplaco Group, Inc.) 7.250 11/01/08 1,317,650
2,645,000 NYC IDA (Amplaco Group, Inc.) 8.125 11/01/18 2,814,677
530,000 NYC IDA (Amster Novelty) 8.000 12/01/10 526,136
790,000 NYC IDA (Amster Novelty) 8.375 12/01/15 784,581
1,160,000 NYC IDA (Atlantic Veal & Lamb) 8.375 12/01/16 1,261,349
200,000 NYC IDA (BHMS) 8.400 09/01/02 200,762
3,075,000 NYC IDA (BHMS) 8.500 01/01/27 3,449,566
13 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 660,000 NYC IDA (BHMS) 8.900% 09/01/11 $ 723,122
1,690,000 NYC IDA (BHMS) 9.200 09/01/21 1,895,555
500,000 NYC IDA (Blood Center) 7.200 05/01/12 (p) 573,685
3,000,000 NYC IDA (Blood Center) 7.250 05/01/22 (p) 3,449,760
29,935,000 NYC IDA (Brooklyn Navy Yard) 5.650 10/01/28 30,280,749
57,860,000 NYC IDA (Brooklyn Navy Yard) 5.750 10/01/36 59,105,726
1,770,000 NYC IDA (CCM) 7.875 12/01/16 1,986,754
1,980,000 NYC IDA (CCM) 8.000 12/01/11 2,202,057
1,500,000 NYC IDA (CNR) 5.800 09/01/26 1,558,005
4,790,000 NYC IDA (College of Aeronautics) 5.500 05/01/28 4,826,931
4,200,000 NYC IDA (Community Hospital of Brooklyn) 6.875 11/01/10 4,252,878
1,700,000 NYC IDA (Display Creations) 9.250 06/01/08 1,710,863
360,000 NYC IDA (Eden II School) 7.750 06/01/04 385,340
2,505,000 NYC IDA (Eden II School) 8.750 06/01/19 2,779,122
10,255,000 NYC IDA (EPG) 7.500 07/30/03 11,264,912
3,705,000 NYC IDA (Friends Seminary School) 7.000 12/01/17 4,034,486
1,000,000 NYC IDA (Fund for NYC Project) 7.625 07/01/10 1,061,800
3,280,000 NYC IDA (Gabrielli Truck Sales) 8.125 12/01/17 3,486,312
1,265,000 NYC IDA (Graphic Artists) 8.250 12/30/23 1,369,337
875,000 NYC IDA (Gutmann Plastics) 7.750 12/01/07 914,813
2,265,000 NYC IDA (Hebrew Academy) 10.000 03/01/21 2,477,480
735,000 NYC IDA (Herbert G. Birch Childhood Project) 7.375 02/01/09 797,982
2,195,000 NYC IDA (Herbert G. Birch Childhood Project) 8.375 02/01/22 2,449,422
240,000 NYC IDA (HiTech Res Rec) 8.750 08/01/00 249,684
695,000 NYC IDA (HiTech Res Rec) 9.250 08/01/08 750,162
410,000 NYC IDA (House of Spices) 9.000 10/15/01 445,588
2,140,000 NYC IDA (House of Spices) 9.250 10/15/11 2,357,766
3,395,000 NYC IDA (Japan Airlines) 6.000 11/01/15 3,639,270
6,040,000 NYC IDA (JBFS) 6.750 12/15/12 6,507,436
1,675,000 NYC IDA (Koenig Iron Works) 8.375 12/01/25 1,818,380
1,000,000 NYC IDA (Lighthouse) 6.500 07/01/22 1,072,480
3,025,000 NYC IDA (Little Red Schoolhouse) 6.750 11/01/18 3,035,436
845,000 NYC IDA (Loehmann's) 9.500 12/31/04 857,345
2,600,000 NYC IDA (L&M Optical Disc) 7.125 11/01/10 2,620,280
3,500,000 NYC IDA (MMC) 7.000 07/01/23 3,766,700
5,550,000 NYC IDA (Nekboh) 9.625 05/01/11 5,921,795
547,083 NYC IDA (Novelty Cord & Tassel) 8.663(v) 12/01/06 550,147
1,040,000 NYC IDA (NY Hostel Co.) 6.750 01/01/04 1,078,709
4,400,000 NYC IDA (NY Hostel Co.) 7.600 01/01/17 4,650,052
3,435,000 NYC IDA (OHEL) 8.250 03/15/23 3,794,988
1,125,000 NYC IDA (Paradise Products) 7.125 11/01/07 1,165,489
4,475,000 NYC IDA (Paradise Products) 8.250 11/01/22 4,704,478
84,874 NYC IDA (Penguin Air Conditioning) 12.222 12/01/1999 88,125
1,785,000 NYC IDA (Petrocelli Electric) 7.250 11/01/07 1,861,523
3,780,000 NYC IDA (Petrocelli Electric) 8.000 11/01/17 3,952,897
1,035,000 NYC IDA (Pop Display) 6.750 12/15/04 1,097,866
2,645,000 NYC IDA (Pop Display) 7.900 12/15/14 2,932,459
815,000 NYC IDA (PRFFP) 7.000 10/01/16 885,587
1,655,000 NYC IDA (Priority Mailers) 9.000 03/01/10 1,806,912
710,000 NYC IDA (Promotional Slideguide) 7.500 12/01/10 775,121
</TABLE>
14 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,065,000 NYC IDA (Promotional Slideguide) 7.875% 12/01/15 $ 1,182,853
700,000 NYC IDA (Psycho Therapy) 9.625 04/01/10 749,133
220,000 NYC IDA (Sequins International) 8.500 04/30/00 232,157
4,555,000 NYC IDA (Sequins International) 8.950 01/30/16 5,056,050
585,000 NYC IDA (Streamline Plastics) 7.750 12/01/15 630,460
1,275,000 NYC IDA (Streamline Plastics) 8.125 12/01/25 1,391,459
5,115,000 NYC IDA (St. Bernard's School) 7.000 12/01/21 5,615,912
4,140,000 NYC IDA (St. Christoper Ottilie) 7.500 07/01/21 4,518,272
170,000 NYC IDA (Summit School) 7.250 12/01/04 181,358
1,485,000 NYC IDA (Summit School) 8.250 12/01/24 1,626,832
15,050,000 NYC IDA (Terminal One Group Assoc.) 6.000 01/01/19 15,928,920
6,715,000 NYC IDA (Terminal One Group Assoc.) 6.125 01/01/24 7,158,459
240,000 NYC IDA (Ultimate Display) 8.750 10/15/00 256,334
1,910,000 NYC IDA (Ultimate Display) 9.000 10/15/11 2,113,472
1,000,000 NYC IDA (United Nations School) 6.350 12/01/15 1,068,640
1,380,000 NYC IDA (Van Blarcom Closures) 7.125 11/01/07 1,418,957
2,965,000 NYC IDA (Van Blarcom Closures) 8.000 11/01/17 3,065,306
1,125,000 NYC IDA (Visual Display) 7.250 11/01/08 1,131,075
2,375,000 NYC IDA (Visual Display) 8.325 11/01/18 2,394,594
8,000,000 NYC IDA (Visy Paper) 7.950 01/01/28 9,341,360
14,300,000 NYC Municipal Water Finance Authority 5.250 06/15/29 14,305,148
1,200,000 NYC Municipal Water Finance Authority 5.500 06/15/19 1,233,096
65,000 NYC Municipal Water Finance Authority 5.500 06/15/27 67,240
40,000 NYC Municipal Water Finance Authority 5.750 06/15/20 42,092
12,500,000 NYC Municipal Water Finance Authority IRS 6.770(f) 06/15/13 13,156,250
30,000,000 NYC Municipal Water Finance Authority IVRC (b) 7.945(f) 06/15/17 34,125,000
10,000,000 NYC Municipal Water Finance Authority LEVRRS 7.361(f) 06/15/19 10,900,000
21,947,988 NYS Certificate of Lease (b) 5.875 01/02/2023 22,192,927
740,000 NYS COP (BOCES) (b) 7.875 10/01/00 765,893
230,000 NYS COP (Hanson Redevelopment) 8.250 11/01/01 242,754
10,000 NYS Dorm (Bethel Springvale Home) 6.000 02/01/35 10,726
2,330,000 NYS Dorm (Brookdale Hospital) 5.200 02/15/13 2,372,429
1,000,000 NYS Dorm (Brookdale Hospital) 5.200 02/15/13 1,008,630
1,355,000 NYS Dorm (Brookdale Hospital) 5.300 02/15/17 1,359,350
8,435,000 NYS Dorm (Center for Nursing) 5.550 08/01/37 8,754,602
1,100,000 NYS Dorm (Chapel Oaks, Inc.) 5.375 07/01/17 1,111,638
2,855,000 NYS Dorm (Chapel Oaks, Inc.) 5.450 07/01/26 2,893,942
21,180,000 NYS Dorm (City University) 5.250 07/01/25 20,983,873
13,400,000 NYS Dorm (City University) 5.375 07/01/24 13,491,388
20,000 NYS Dorm (Cornell University) 7.375 07/01/30 21,600
605,000 NYS Dorm (Cornwall Hospital) 8.750 07/01/07 606,452
175,000 NYS Dorm (Court Facility) 5.375 05/15/16 176,538
100,000 NYS Dorm (Court Facility) 5.500 05/15/23 100,990
4,750,000 NYS Dorm (Dept. of Health) 5.000 07/01/24 4,546,890
5,000,000 NYS Dorm (Dept. of Health) 5.500 08/15/17 5,139,450
410,000 NYS Dorm (Dept. of Health) 5.500 07/01/20 414,625
525,000 NYS Dorm (Dept. of Health) 5.500 07/01/21 532,576
250,000 NYS Dorm (Dept. of Health) 6.625 07/01/24 288,785
3,750,000 NYS Dorm (Dept. of Health) 7.250 07/01/11 (p) 4,242,038
95,000 NYS Dorm (Dept. of Health) 7.350 08/01/29 (p) 101,890
15 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 265,000 NYS Dorm (Episcopal Health Services) 7.550% 08/01/29 $ 281,764
2,500,000 NYS Dorm (German Masonic Home) 6.000 08/01/36 2,688,850
1,000,000 NYS Dorm (Grace Manor Health Care Facility) 6.150 07/01/18 1,105,690
3,230,000 NYS Dorm (Gurwin Geriatric Home) 5.700 02/01/37 3,390,919
10,285,000 NYS Dorm (Hebrew Hospital) 5.900 08/01/36 10,922,876
125,010,000 NYS Dorm (Insured Hospital) 0.000 08/15/36 16,158,793
4,200,000 NYS Dorm (Insured Mtg. Nursing) 6.125 02/01/36 4,557,000
10,735,000 NYS Dorm (Interfaith Medical Center) 5.300 02/15/19 10,727,593
36,500,000 NYS Dorm (Interfaith Medical Center) 5.400 02/15/28 36,732,505
35,000 NYS Dorm (KMH Homes) 6.950 08/01/31 37,869
4,380,000 NYS Dorm (Lakeside Home) 6.000 02/01/37 4,723,348
25,000 NYS Dorm (Lakeside Memorial Hospital) 6.000 02/01/21 26,592
25,000 NYS Dorm (L.I. Medical Center) 7.750 08/15/27 25,748
7,400,000 NYS Dorm (Menorah Campus) 6.100 02/01/37 8,040,100
20,000 NYS Dorm (Menorah Campus) 7.300 08/01/16 22,139
7,500,000 NYS Dorm (Mental Health) 5.250 02/15/19 7,476,150
7,230,000 NYS Dorm (Methodist Hospital) 6.050 02/01/34 7,910,054
85,000 NYS Dorm (MHMC) 8.625 07/01/10 85,290
3,465,000 NYS Dorm (Millard Hospital) 5.375 02/01/32 3,519,816
2,200,000 NYS Dorm (New York & Presbyterian Hospital) 6.500 08/01/34 2,403,170
2,400,000 NYS Dorm (Niagara Nursing Home) 5.600 08/01/37 2,499,504
4,100,000 NYS Dorm (North General Hospital) 5.200 02/15/15 4,139,319
4,800,000 NYS Dorm (North General Hospital) 5.300 02/15/19 4,796,688
10,700,000 NYS Dorm (NY Downtown Hospital) 5.300 02/15/20 10,699,251
25,000 NYS Dorm (NY Medical College) 6.875 07/01/21 27,436
855,000 NYS Dorm (Park Ridge Facility) 7.850 02/01/29 889,038
12,750,000 NYS Dorm (RGH) RITES (b) 7.435(c)(f) 08/01/33 13,610,625
4,725,000 NYS Dorm (Rosalind) 5.600 02/01/27 4,922,080
600,000 NYS Dorm (Sarah Neumann Home) 5.450 08/01/27 616,308
1,900,000 NYS Dorm (Sarah Neumann Home) 5.500 08/01/37 1,962,852
50,000 NYS Dorm (State University) 0.000 05/15/07 33,193
25,000 NYS Dorm (State University) 6.000 05/15/17 25,497
5,000 NYS Dorm (State University) 6.000 05/15/17 (p) 5,190
50,000 NYS Dorm (State University) 6.000 05/01/22 54,872
225,000 NYS Dorm (State University) 7.000 05/15/16 239,591
9,000,000 NYS Dorm (St. Agnes Hospital) 5.400 02/15/25 9,057,330
3,000,000 NYS Dorm (St. Barnabas Hospital) 5.450 08/01/35 3,071,160
1,500,000 NYS Dorm (St. Clare's Hospital) 5.300 02/15/19 1,498,965
2,970,000 NYS Dorm (St. Clare's Hospital) 5.400 02/15/25 2,988,919
2,580,000 NYS Dorm (St. James Mercy Hospital) 5.400 02/01/38 2,609,799
75,000 NYS Dorm (St. Thomas Aquinas College) 6.250 07/01/14 82,092
5,000 NYS Dorm (St. Vincent Hospital) 7.400 08/01/30 5,526
3,885,000 NYS Dorm (St. Vincent's) 5.300 07/01/18 3,896,966
32,865,000 NYS Dorm (Suffolk-Judicial) 9.500 04/15/14 38,344,253
4,990,000 NYS Dorm (Teresian House) 5.250 07/01/17 4,969,192
50,000 NYS Dorm (UCC) 5.700 07/01/21 51,176
1,700,000 NYS Dorm (Vassar Brothers) 5.375 07/01/25 1,726,248
32,915,000 NYS Dorm (WHMC) 5.300 08/15/21 32,890,972
1,840,000 NYS Environ. (Consolidated Water) 7.150 11/01/14 2,026,282
58,860,000 NYS Environ. (Huntington Res Rec) 7.500 10/01/12 62,087,294
16 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 7,500,000 NYS Environ. (NYS Water Services) 8.375% 01/15/20 $ 8,089,050
6,015,000 NYS Environ. (Occidental Petroleum) 5.700 09/01/28 6,129,887
9,000,000 NYS Environ. (Occidental Petroleum) 6.100 11/01/30 9,515,250
7,000,000 NYS ERDA (Brooklyn Union Gas) RIBS 7.427(f) 07/08/26 7,315,000
7,000,000 NYS ERDA (Brooklyn Union Gas) RIBS 8.812(f) 04/01/20 8,741,250
10,300,000 NYS ERDA (Brooklyn Union Gas) RIBS 9.868(f) 07/01/26 13,557,375
290,000 NYS ERDA (Con Ed) 6.375 12/01/27 310,056
11,040,000 NYS ERDA (Con Ed) 6.375 12/01/27 11,623,906
15,630,000 NYS ERDA (Con Ed) 7.250 11/01/24 15,939,005
35,920,000 NYS ERDA (Con Ed) 7.375 07/01/24 36,368,641
45,000 NYS ERDA (Con Ed) 7.375 07/01/24 45,564
8,040,000 NYS ERDA (Con Ed) 7.500 07/01/25 8,366,906
7,525,000 NYS ERDA (Con Ed) 7.500 01/01/26 7,926,609
4,000,000 NYS ERDA (Con Ed) 7.500 01/01/26 4,213,480
440,000 NYS ERDA (LILCO) 6.900 08/01/22 482,979
845,000 NYS ERDA (LILCO) 6.900 08/01/22 927,540
15,165,000 NYS ERDA (LILCO) 7.150 09/01/19 16,640,706
16,760,000 NYS ERDA (LILCO) 7.150 09/01/19 18,390,916
17,090,000 NYS ERDA (LILCO) 7.150 06/01/20 18,753,028
13,285,000 NYS ERDA (LILCO) 7.150 12/01/20 14,577,763
10,975,000 NYS ERDA (LILCO) 7.150 02/01/22 12,042,977
15,360,000 NYS ERDA (LILCO) 7.150 02/01/22 16,854,682
19,200,000 NYS ERDA (NIMO) 8.875 11/01/25 19,680,000
400,000 NYS ERDA (NYSEG) 5.700 12/01/28 415,280
30,000 NYS ERDA (NYSEG) 5.950 12/01/27 31,662
12,500,000 NYS ERDA (RG&E) 5.950(w) 09/01/33 13,223,875
135,000 NYS ERDA (RG&E) 8.375 12/01/28 139,991
3,555,000 NYS HFA (Children's Rescue) 7.625 05/01/18 3,809,822
2,200,000 NYS HFA (Dominican Village) 6.600 08/15/27 2,362,360
4,205,000 NYS HFA (Fulton Manor) 6.100 11/15/25 4,526,178
1,040,000 NYS HFA (HELP/Bronx) 7.850 05/01/1999 1,062,318
1,080,000 NYS HFA (HELP/Bronx) 7.850 11/01/1999 1,116,644
13,080,000 NYS HFA (HELP/Bronx) 8.050 11/01/05 13,725,367
1,210,000 NYS HFA (HELP/Suffolk) 8.100 11/01/05 1,248,006
9,000 NYS HFA (H&NH) 6.875 11/01/10 9,201
5,000 NYS HFA (H&NH) 6.875 11/01/11 5,111
520,000 NYS HFA (H&NH) 7.000 11/01/17 531,024
500,000 NYS HFA (H&NH) 8.000 11/01/08 546,240
5,000 NYS HFA (Meadow Manor) 7.750 11/01/19 5,070
15,730,000 NYS HFA (Multi-Family) 0.000 11/01/14 6,533,298
14,590,000 NYS HFA (Multi-Family) 0.000 11/01/15 5,696,957
12,695,000 NYS HFA (Multi-Family) 0.000 11/01/17 4,195,317
65,000 NYS HFA (Multi-Family) 5.950 08/15/24 66,892
2,000,000 NYS HFA (Multi-Family) 6.050 08/15/32 2,122,200
1,285,000 NYS HFA (Multi-Family) 6.100 11/15/36 1,373,549
4,700,000 NYS HFA (Multi-Family) 6.125 08/15/38 4,976,313
50,000 NYS HFA (Multi-Family) 6.200 08/15/12 52,794
100,000 NYS HFA (Multi-Family) 6.250 08/15/27 106,395
5,000,000 NYS HFA (Multi-Family) 6.300 08/15/26 5,361,450
4,170,000 NYS HFA (Multi-Family) 6.350 08/15/23 4,502,224
</TABLE>
17 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,175,000 NYS HFA (Multi-Family) 6.400% 11/15/27 $ 1,268,283
2,905,000 NYS HFA (Multi-Family) 6.500 08/15/24 (p) 3,058,733
255,000 NYS HFA (Multi-Family) 6.500 03/15/25 286,082
9,010,000 NYS HFA (Multi-Family) 6.500 03/15/25 10,417,182
11,980,000 NYS HFA (Multi-Family) 6.700 08/15/25 12,639,140
5,710,000 NYS HFA (Multi-Family) 6.750 11/15/36 6,181,932
75,000 NYS HFA (Multi-Family) 6.950 08/15/12 80,763
2,870,000 NYS HFA (Multi-Family) 6.950 08/15/24 3,036,804
5,350,000 NYS HFA (Multi-Family) 7.050 08/15/24 5,743,546
1,576,000 NYS HFA (Multi-Family) 7.450 11/01/28 1,645,675
2,460,000 NYS HFA (Multi-Family) 7.550 11/01/29 2,571,881
145,000 NYS HFA (Multi-Family) 7.700 03/15/06 (p) 161,413
5,000 NYS HFA (Multi-Family) 7.700 03/15/06 5,516
1,035,000 NYS HFA (Multi-Family) 7.750 11/01/20 1,111,559
50,000 NYS HFA (Multi-Family) 7.850 02/15/30 54,887
15,000 NYS HFA (Non Profit) 6.400 11/01/10 15,325
25,000 NYS HFA (Non Profit) 6.400 11/01/13 25,541
20,000 NYS HFA (Non Profit) 6.600 11/01/08 20,440
25,000 NYS HFA (Non Profit) 6.600 11/01/10 25,552
20,000 NYS HFA (Non Profit) 6.600 11/01/13 20,640
5,000,000 NYS HFA (Phillips Village) 7.750 08/15/17 5,562,900
35,000 NYS HFA (Service Contract) 5.375 03/15/23 35,121
5,600,000 NYS HFA (Service Contract) 5.500 09/15/22 5,698,728
100,000 NYS HFA (Service Contract) 5.500 09/15/22 100,968
5,525,000 NYS HFA (Service Contract) 5.500 03/15/25 5,617,599
25,000 NYS HFA (Service Contract) 6.125 03/15/20 26,442
1,170,000 NYS HFA (Shorehill Hsg.) 7.500 05/01/08 1,184,169
1,395,000 NYS HFA, Series A 6.125 11/01/20 1,510,771
80,000 NYS LGAC 5.500 04/01/23 81,893
810,000 NYS LGSC (SCSB) 7.375 12/15/16 886,707
4,600,000 NYS Medcare (Brookdale Hospital) 6.850 02/15/17 (p) 5,352,744
1,015,000 NYS Medcare (Central Suffolk Hospital) 6.125 11/01/16 1,021,445
500,000 NYS Medcare (Downtown Hospital) 6.700 02/15/12 (p) 577,780
2,255,000 NYS Medcare (Downtown Hospital) 6.800 02/15/20 (p) 2,618,123
45,000 NYS Medcare (H&NH) 5.750 08/15/19 46,507
14,515,000 NYS Medcare (H&NH) 5.800 08/15/22 15,174,562
4,690,000 NYS Medcare (H&NH) 5.850 02/15/33 4,916,152
10,000 NYS Medcare (H&NH) 6.200 08/15/22 10,657
95,000 NYS Medcare (H&NH) 6.200 02/15/23 101,711
60,000 NYS Medcare (H&NH) 6.375 08/15/29 64,798
1,000,000 NYS Medcare (H&NH) 6.375 08/15/33 1,072,640
2,195,000 NYS Medcare (H&NH) 6.500 02/15/34 2,396,282
250,000 NYS Medcare (H&NH) 6.600 02/15/31 273,830
590,000 NYS Medcare (H&NH) 6.650 08/15/32 (p) 657,585
12,230,000 NYS Medcare (H&NH) 6.650 08/15/32 (p) 13,344,887
385,000 NYS Medcare (H&NH) 6.875 02/15/32 427,477
2,615,000 NYS Medcare (H&NH) 6.875 02/15/32 2,852,050
50,000 NYS Medcare (H&NH) 7.250 02/15/24 52,109
4,505,000 NYS Medcare (H&NH) 7.400 11/01/16 4,607,624
5,000 NYS Medcare (H&NH) 7.600 02/15/29 5,221
18 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000 NYS Medcare (H&NH) 7.600% 02/15/29 $ 5,202
3,370,000 NYS Medcare (H&NH) 7.700 02/15/18 3,447,106
15,000 NYS Medcare (H&NH) 8.000 02/15/08 15,368
12,785,000 NYS Medcare (H&NH) 8.000 02/15/27 13,080,717
430,000 NYS Medcare (H&NH) 8.000 02/15/28 440,625
460,000 NYS Medcare (H&NH) 8.875 08/15/27 470,971
1,740,000 NYS Medcare (H&NH) 9.000 02/15/26 1,745,429
3,560,000 NYS Medcare (H&NH) 9.375 11/01/16 3,717,815
2,990,000 NYS Medcare (H&NH) 10.000 11/01/06 3,182,257
22,230,000 NYS Medcare (Insured Mtg. Nursing) 5.900 08/15/33 23,422,195
2,000,000 NYS Medcare (Insured Mtg. Nursing) 6.375 08/15/24 2,186,860
4,000,000 NYS Medcare (Insured Mtg. Nursing) 6.450 08/15/34 4,380,480
70,000 NYS Medcare (Insured Mtg. Nursing) 6.500 11/01/15 76,637
700,000 NYS Medcare (Insured Mtg. Nursing) 6.600 02/15/11 (p) 744,436
15,000 NYS Medcare (Insured Mtg. Nursing) 6.900 08/15/34 (p) 17,494
7,840,000 NYS Medcare (Kingston Hospital) 8.875 11/15/17 7,870,341
630,000 NYS Medcare (Mental Health) 0.000 08/15/18 136,773
11,855,000 NYS Medcare (Mental Health) 5.250 02/15/19 11,865,314
8,000,000 NYS Medcare (Mental Health) 5.250 08/15/23 8,006,960
600,000 NYS Medcare (Mental Health) 5.250 08/15/23 600,522
20,000,000 NYS Medcare (Mental Health) 5.375 02/15/25 20,185,400
250,000 NYS Medcare (Mental Health) 5.500 08/15/24 256,158
70,000 NYS Medcare (Mental Health) 5.900 08/15/22 74,622
190,000 NYS Medcare (Mental Health) 6.500 02/15/19 204,885
5,000 NYS Medcare (Mental Health) 7.300 02/15/21 (p) 5,569
305,000 NYS Medcare (Mental Health) 7.500 02/15/21 334,137
505,000 NYS Medcare (Mental Health) 7.500 02/15/21 (p) 557,899
250,000 NYS Medcare (Mental Health) 7.625 08/15/17 278,775
545,000 NYS Medcare (Mental Health) 7.625 08/15/17 (p) 611,490
35,000 NYS Medcare (Mental Health) 7.750 08/15/11 38,490
60,000 NYS Medcare (Mental Health) 7.750 08/15/11 (p) 66,655
220,000 NYS Medcare (Mental Health) 7.875 08/15/15 225,399
1,725,000 NYS Medcare (Mental Health) 8.875 08/15/07 1,766,279
25,000 NYS Medcare (Montefiore Medical Center) 5.750 02/15/25 26,254
10,000 NYS Medcare (North General Hospital) 7.150 02/15/01 (p) 10,574
4,745,000 NYS Medcare (North General Hospital) 7.350 08/15/09 (p) 5,027,612
2,110,000 NYS Medcare (North General Hospital) 7.400 02/15/19 (p) 2,236,832
10,000 NYS Medcare (North Shore Hospital) 7.200 11/01/20 10,821
25,000 NYS Medcare (Secured Hospital) 6.250 02/15/24 26,633
1,350,000 NYS Medcare (St. Charles Hospital) 6.375 08/15/34 1,484,568
1,650,000 NYS Medcare (St. Charles Hospital) 6.375 02/15/35 1,814,472
10,850,000 NYS Medcare (St. Francis Hospital) 7.625 11/01/21 11,194,271
1,000,000 NYS Medcare (St. Luke's Hospital) 5.700 02/15/29 1,039,340
10,000 NYS Medcare (St. Luke's Hospital) 7.375 02/15/19 10,665
22,000,000 NYS Medcare (St. Luke's Hospital) IVRC (b) 7.522(f) 02/15/29 23,430,000
10,000,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 10,675,000
5,750,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 6,138,125
8,400,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 8,967,000
12,500,000 NYS Medcare (St. Luke's Hospital) RITES (b) 7.386(f) 02/15/29 13,343,750
50,000 NYS Medcare (WHMC) 7.350 08/15/11 (p) 55,763
</TABLE>
19 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,255,000 NYS Medcare (WHMC) 7.400% 08/15/21 (p) $ 5,868,311
10,000 NYS Power Authority 6.750 01/01/18 10,829
1,000,000 NYS Thruway 0.000 01/01/03 814,470
2,000,000 NYS Thruway 0.000 01/01/04 1,551,340
260,000 NYS Thruway 0.000 01/01/05 191,966
25,000,000 NYS Thruway Inflos 5.845(f) 01/01/24 23,718,750
15,000 NYS UDC 0.000 01/01/03 12,407
900,000 NYS UDC 0.000 01/01/08 568,665
101,270,000 NYS UDC 0.000 01/01/11 50,705,889
85,000 NYS UDC 0.000 01/01/11 42,819
4,080,000 NYS UDC 5.250 01/01/21 4,040,138
10,250,000 NYS UDC 5.375 01/01/23 10,293,870
5,590,000 NYS UDC 5.375 01/01/25 5,623,037
500,000 NYS UDC 5.500 01/01/18 511,645
1,000,000 NYS UDC 5.500 01/01/25 1,031,140
2,000,000 NYS UDC 7.500 01/01/18 (p) 2,203,640
3,500,000 NYS UDC (Correctional Facilities) 5.000 01/01/19 3,376,030
7,020,000 NYS UDC (Correctional Facilities) 5.000 01/01/28 6,722,633
1,265,000 Oneida County IDA (MCC) 8.000 11/01/08 1,348,907
2,825,000 Oneida County IDA (MCC) 8.750 11/01/18 3,012,326
1,690,000 Oneida County IDA (Mohawk Valley Civic Facility) 5.200 02/01/13 1,722,211
10,000 Oneida Healthcare Corp. 7.100 08/01/11 10,843
130,000 Oneida Healthcare Corp. 7.200 08/01/31 141,383
7,820,000 Onondaga County IDA (CGH) 6.625 01/01/18 8,402,668
575,000 Onondaga County IDA (Coltec) 7.250 06/01/08 585,695
750,000 Onondaga County IDA (Coltec) 9.875 10/01/10 781,800
220,000 Onondaga County IDA (Crouse Irving Hospital) 7.800 01/01/03 245,447
430,000 Onondaga County IDA (Gear Motion) 8.400 12/15/01 435,801
1,610,000 Onondaga County IDA (Gear Motion) 8.900 12/15/11 1,709,836
27,850,000 Onondaga County Res Rec 6.875 05/01/06 29,790,588
67,435,000 Onondaga County Res Rec 7.000 05/01/15 73,009,851
1,166,000 Ontario County IDA (Ontario Design) 6.500 11/01/05 1,177,182
22,450,000 Orange County IDA (Glen Arden) 8.875 01/01/25 25,906,402
7,600,000 Orange County IDA (Kingston Manufacturing) 8.000 11/01/17 8,082,372
495,000 Orange County IDA (Mental Retardation Project) 7.800 07/01/11 546,119
3,260,000 Oswego County IDA (Seneca Hill Manor) 5.650 08/01/37 3,400,408
4,750,000 Oswego County IDA (SLRHFP) 5.400 02/01/38 4,813,080
1,600,000 Otsego County IDA (Bassett Healthcare Project) 5.350 11/01/20 1,617,904
1,403,659 Peekskill IDA (Karta) 9.000 07/01/10 1,446,962
1,100,000 Pilgrim Village HDC 6.800 02/01/21 1,136,685
465,000 Port Authority NY/NJ (KIAC) 6.750 10/01/19 513,448
7,255,000 Port Authority NY/NJ (US Airways) 9.000 12/01/06 8,102,239
520,000 Port Authority NY/NJ (US Airways) 9.000 12/01/10 580,726
22,355,000 Port Authority NY/NJ (US Airways) 9.125 12/01/15 25,027,093
45,000 Port Authority NY/NJ, 67th Series 6.875 01/01/25 47,198
220,000 Port Authority NY/NJ, 68th Series 7.250 02/15/25 231,623
680,000 Port Authority NY/NJ, 68th Series 7.250 02/15/25 715,979
70,000 Port Authority NY/NJ, 69th Series 7.125 06/01/25 74,261
85,000 Port Authority NY/NJ, 70th Series 7.250 08/01/25 90,488
15,000 Port Authority NY/NJ, 70th Series 7.250 08/01/25 15,967
20 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 40,000 Port Authority NY/NJ, 71st Series 6.500% 01/15/26 $ 42,416
15,000 Port Authority NY/NJ, 73rd Series 6.750 04/15/26 15,991
70,000 Port Authority NY/NJ, 73rd Series 6.750 04/15/26 74,729
15,000 Port Authority NY/NJ, 74th Series 6.750 08/01/26 16,164
60,000 Port Authority NY/NJ, 76th Series 6.500 11/01/26 64,220
60,000 Portchester CDC (Southport) 7.300 08/01/11 62,376
25,000 Portchester CDC (Southport) 7.375 08/01/22 25,974
1,990,000 Putnam County IDA (Brewster Plastics) 8.500 12/01/16 2,160,901
30,000 Rensselaer County IDA (MMP) 8.500 12/15/02 30,406
25,000 Rensselaer Hsg. Authority (Renwyck) 7.650 01/01/11 27,192
15,000,000 Rensselaer Municipal Leasing Corp. 6.900 06/01/24 16,668,000
45,000 Riverhead HDC 8.250 08/01/10 47,216
20,890,000 Rochester Hsg. Authority (Crossroads) 7.700 01/01/17 22,778,247
6,790,000 Rochester Museum & Science Center 6.125 12/01/15 6,957,781
2,000,000 Rockland County IDA (DC) 6.250 05/01/28 2,000,000
2,090,000 Rockland County IDA (DC) 8.000 03/01/13 2,374,658
1,395,000 Saratoga County IDA (ARC) 8.400 03/01/13 1,545,758
500,000 Schenectady IDA (ASSC) 6.400 05/01/14 541,395
2,655,000 Schenectady IDA (ASSC) 6.450 05/01/24 2,881,445
522,000 Schroon Lake Fire District (b) 7.250 03/01/09 551,467
175,000 Scotia Hsg. Authority (Holyrood House) 7.000 06/01/09 185,950
65,000 SONYMA, 1st Series 0.000 10/01/19 64,017
30,000 SONYMA, 1st Series 0.000 10/01/14 6,637
10,775,000 SONYMA, 2nd Series 0.000 10/01/14 2,322,982
830,000 SONYMA, 6th Series 9.375 04/01/10 856,834
1,255,000 SONYMA, 7th Series GAINS 9.250 10/01/14 1,282,610
450,000 SONYMA, 8th Series A 6.875 04/01/17 458,213
100,000 SONYMA, 8th Series D 8.200 10/01/06 101,628
665,000 SONYMA, 8th Series E 8.100 10/01/17 679,284
360,000 SONYMA, 9th Series A 7.300 04/01/17 362,070
790,000 SONYMA, Series 12 CAB 8.250 04/01/17 809,884
220,000 SONYMA, Series 2 0.000 10/01/14 47,685
25,000 SONYMA, Series 27 6.450 04/01/04 26,609
6,915,000 SONYMA, Series 28 6.450 10/01/20 7,145,062
10,000,000 SONYMA, Series 28 6.650 04/01/22 10,563,600
8,830,000 SONYMA, Series 28 7.050 10/01/23 9,437,681
605,000 SONYMA, Series 30 5.800 10/01/25 621,759
15,000 SONYMA, Series 30-A 4.375 10/01/23 14,747
16,005,000 SONYMA, Series 30-B 6.650 10/01/25 17,075,895
100,000 SONYMA, Series 30-C1 5.850 10/01/25 103,388
15,000 SONYMA, Series 30-C2 5.800 10/01/25 15,482
11,510,000 SONYMA, Series 36-A 6.625 04/01/25 12,391,091
13,620,000 SONYMA, Series 38 RITES (b) 8.186(f) 04/01/25 15,101,175
80,000 SONYMA, Series 40-A 6.350 04/01/21 83,754
7,560,000 SONYMA, Series 40-A 6.700 04/01/25 8,166,161
75,000 SONYMA, Series 40-B 6.400 10/01/12 80,778
5,885,000 SONYMA, Series 40-B 6.600 04/01/25 6,335,144
110,000 SONYMA, Series 42 6.650 04/01/26 119,189
13,605,000 SONYMA, Series 42 6.650 04/01/26 14,689,319
11,990,000 SONYMA, Series 44 7.500 04/01/26 13,076,654
</TABLE>
21 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 100,000 SONYMA, Series 46 6.500% 04/01/13 $ 108,423
65,000 SONYMA, Series 46 6.600 10/01/19 70,454
24,525,000 SONYMA, Series 46 6.650 10/01/25 26,592,948
305,000 SONYMA, Series 48 6.100 04/01/25 323,626
7,370,000 SONYMA, Series 50 6.625 04/01/25 8,007,137
920,000 SONYMA, Series 52 6.100 04/01/26 982,220
145,000 SONYMA, Series 52 6.100 04/01/26 154,247
45,000 SONYMA, Series 54 6.200 10/01/26 48,440
25,000 SONYMA, Series 54 6.200 10/01/26 26,812
6,190,000 SONYMA, Series 58 6.400 04/01/27 6,728,840
515,000 SONYMA, Series 60 6.000 10/01/22 545,025
350,000 SONYMA, Series 60 6.050 04/01/26 372,677
1,000,000 SONYMA, Series 61 5.800 10/01/17 1,047,260
9,750,000 SONYMA, Series 63 6.125 04/01/27 10,451,513
10,205,000 SONYMA, Series 65 5.850 10/01/28 10,625,242
3,000,000 SONYMA, Series 67 5.700 10/01/17 3,123,060
11,665,000 SONYMA, Series 67 5.800 10/01/28 12,101,154
200,000 SONYMA, Series 69 5.400 10/01/19 201,708
9,455,000 SONYMA, Series 69 5.500 10/01/28 9,514,945
10,250,000 SONYMA, Series 71 5.400 04/01/29 10,267,938
1,845,000 SONYMA, Series BB-2 7.950 10/01/15 1,897,121
35,000 SONYMA, Series EE-1 8.000 10/01/10 35,361
95,000 SONYMA, Series EE-2 7.450 10/01/10 99,025
40,000 SONYMA, Series EE-2 7.500 04/01/16 41,718
260,000 SONYMA, Series EE-3 7.700 10/01/10 274,108
15,000 SONYMA, Series EE-3 7.750 04/01/16 15,821
95,000 SONYMA, Series EE-4 7.750 10/01/10 100,333
385,000 SONYMA, Series HH-2 7.700 10/01/09 398,983
40,000 SONYMA, Series HH-2 7.850 04/01/22 41,569
260,000 SONYMA, Series HH-3 7.875 10/01/09 273,213
515,000 SONYMA, Series HH-3 7.950 04/01/22 541,286
20,000 SONYMA, Series HH-4 8.050 04/01/22 21,112
100,000 SONYMA, Series II 0.000 04/01/05 62,509
90,000 SONYMA, Series II 0.000 04/01/06 52,016
100,000 SONYMA, Series II 0.000 10/01/07 51,178
170,000 SONYMA, Series II 0.000 04/01/08 83,623
120,000 SONYMA, Series II 0.000 10/01/08 56,761
180,000 SONYMA, Series II 0.000 10/01/09 78,689
455,000 SONYMA, Series JJ 7.500 10/01/17 476,358
75,000 SONYMA, Series KK 7.650 04/01/19 77,927
285,000 SONYMA, Series KK 7.800 10/01/20 297,306
260,000 SONYMA, Series MM-1 7.500 04/01/13 271,778
25,000 SONYMA, Series MM-1 7.750 10/01/05 26,109
75,000 SONYMA, Series MM-1 7.950 10/01/21 80,533
100,000 SONYMA, Series MM-2 7.700 04/01/05 104,130
1,655,000 SONYMA, Series MM-2 7.700 04/01/13 1,681,017
60,000 SONYMA, Series NN 7.550 10/01/17 62,956
5,000 SONYMA, Series OO 7.900 10/01/11 5,179
20,000 SONYMA, Series QQ 7.700 10/01/12 20,919
105,000 SONYMA, Series RR 7.700 10/01/10 111,011
22 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 80,000 SONYMA, Series RR 7.750% 10/01/17 $ 84,491
5,000 SONYMA, Series TT 6.950 10/01/02 5,270
70,000 SONYMA, Series UU 7.150 10/01/22 73,140
2,760,000 SONYMA, Series UU 7.750 10/01/23 2,928,857
115,222,000 SONYMA, Series VV 0.000 10/01/23 18,031,091
195,000 SONYMA, Series VV 7.375 10/01/11 208,457
725,000 Suffolk County GO 6.375 11/01/16 801,872
15,000 Suffolk County GO 6.750 08/01/10 15,338
425,000 Suffolk County IDA (Community Program Ctr. of L.I.) 7.250 11/01/07 447,908
1,825,000 Suffolk County IDA (Community Program Ctr. of L.I.) 8.250 11/01/22 1,938,150
790,000 Suffolk County IDA (Devel. Disabilities) 7.375 03/01/03 827,170
9,675,000 Suffolk County IDA (Devel. Disabilities) 8.750 03/01/23 11,024,082
2,000,000 Suffolk County IDA (Dowling College) 6.625 06/01/24 2,111,900
2,870,000 Suffolk County IDA (Dowling College) 6.700 12/01/20 3,084,820
950,000 Suffolk County IDA (Dowling College) 8.250 12/01/20 (p) 1,052,125
445,000 Suffolk County IDA (Fil-Coil) 9.000 12/01/15 453,900
1,060,000 Suffolk County IDA (Fil-Coil) 9.250 12/01/25 1,083,659
3,860,000 Suffolk County IDA (HFAS) 6.650 11/01/17 3,888,564
8,545,000 Suffolk County IDA (Huntington Res Rec) 5.550(w) 10/01/04 8,843,990
9,180,000 Suffolk County IDA (Huntington Res Rec) 5.650(w) 10/01/05 9,567,580
9,875,000 Suffolk County IDA (Huntington Res Rec) 5.750(w) 10/01/06 10,383,168
10,615,000 Suffolk County IDA (Huntington Res Rec) 5.800(w) 10/01/07 11,186,193
11,410,000 Suffolk County IDA (Huntington Res Rec) 5.850(w) 10/01/08 12,087,412
12,265,000 Suffolk County IDA (Huntington Res Rec) 5.950(w) 10/01/09 13,104,049
13,190,000 Suffolk County IDA (Huntington Res Rec) 6.000(w) 10/01/10 14,096,153
14,170,000 Suffolk County IDA (Huntington Res Rec) 6.150(w) 10/01/11 15,257,689
17,155,000 Suffolk County IDA (Huntington Res Rec) 6.250(w) 10/01/12 18,533,061
190,000 Suffolk County IDA (Marbar Assoc.) 8.300 03/01/08 190,608
190,000 Suffolk County IDA (Marbar Assoc.) 8.300 03/01/09 190,608
250,000 Suffolk County IDA (Microwave Power) 7.750 06/30/02 263,453
4,320,000 Suffolk County IDA (Microwave Power) 8.500 06/30/22 4,609,267
715,000 Suffolk County IDA (OBPWC) 7.500 11/01/22 784,863
1,670,000 Suffolk County IDA (Rimland Facilities) 6.375(v) 12/01/09 1,664,990
1,365,000 Suffolk County IDA (Wireless Boulevard Realty) 7.875 12/01/12 1,454,653
4,005,000 Suffolk County IDA (Wireless Boulevard Realty) 8.625 12/01/26 4,346,186
3,030,000 Sunnybrook EHC 11.250 12/01/14 3,198,923
1,990,000 Syracuse Hsg. Authority (Seneca Heights) 7.500 12/01/07 2,027,770
4,720,000 Syracuse Hsg. Authority (Seneca Heights) 8.500 12/01/17 4,818,318
9,590,000 Syracuse Hsg. Authority, Series A 5.800 08/01/37 10,184,292
625,000 Syracuse Hsg. Authority, Series B 7.500 08/01/10 645,713
550,000 Syracuse IDA (Anoplate Corp.) 7.250 11/01/07 579,475
2,195,000 Syracuse IDA (Anoplate Corp.) 8.000 11/01/22 2,313,640
43,990,000 Syracuse IDA (James Square) 0.000 08/01/25 11,038,851
660,000 Syracuse IDA (Piscitell Stone) 8.400 12/01/11 709,790
980,000 Syracuse IDA (Rockwest Center II) 7.625 12/01/10 1,037,105
1,470,000 Syracuse IDA (Rockwest Center II) 8.625 12/01/15 1,630,157
1,150,000 Syracuse IDA (Rockwest Center I) 8.000 06/01/13 1,229,615
3,770,000 Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/18 (p) 4,191,411
3,750,000 Tompkins County IDA (Ithacare Center) 6.200 02/01/37 4,100,250
50,000 Tompkins County IDA (Kendall at Ithaca) 7.250 06/01/03 51,172
23 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,790,000 Tompkins County IDA (Kendall at Ithaca) 7.875% 06/01/15 $ 2,998,385
5,715,000 Tompkins County IDA (Kendall at Ithaca) 7.875 06/01/24 6,116,879
250,000 Tompkins Healthcare Corp. 10.800 02/01/07 306,758
45,000 Tompkins Healthcare Corp. 10.800 02/01/28 59,669
505,000 Tonawanda Senior Citizens Hsg. 7.875 02/01/11 522,933
75,000 Tupper Lake HDC 8.125 10/01/10 75,194
1,000,000 UCP/HCA of Chemung County 6.600 08/01/22 1,124,350
4,870,000 UFA Devel. Corp. (Loretto-Utica Corp.) 5.950 07/01/35 5,160,544
445,000 Ulster County IDA (Brooklyn Bottling) 7.800 06/30/02 467,682
1,915,000 Ulster County IDA (Brooklyn Bottling) 8.600 06/30/22 2,056,787
2,250,000 Ulster County Res Rec 6.000 03/01/14 2,359,845
2,470,000 Union Hsg. Authority (Methodist Homes) 7.625 11/01/16 2,751,432
105,000 Union Hsg. Authority (Methodist Homes) 8.050 04/01/19 107,388
110,000 Union Hsg. Authority (Methodist Homes) 8.150 04/01/00 115,262
120,000 Union Hsg. Authority (Methodist Homes) 8.250 04/01/01 128,965
150,000 Union Hsg. Authority (Methodist Homes) 8.350 04/01/02 165,131
2,010,000 Union Hsg. Authority (Methodist Homes) 8.500 04/01/12 2,272,988
23,140,000 United Nations Devel. Corp., Series B 5.600 07/01/26 23,228,163
13,450,000 United Nations Devel. Corp., Series C 5.600 07/01/26 13,501,245
100,000 Utica GO 5.900 12/01/02 100,152
580,000 Utica GO 6.000 01/15/06 574,275
560,000 Utica GO 6.250 01/15/07 560,896
25,000 Utica Senior Citizen Hsg. Corp. 0.000 07/01/02 17,154
3,410,000 Utica Senior Citizen Hsg. Corp. 0.000 07/01/26 296,909
20,000 Valley Health Devel. Corp. 7.850 08/01/35 22,220
435,000 Valley Health Devel. Corp. 11.300 02/01/07 522,544
175,000 Valley Health Devel. Corp. 11.300 02/01/23 209,818
950,000 Vigilant EHL (Thomatson) 7.500 11/01/12 1,027,302
8,440,000 Warren & Washington Counties IDA (Res Rec) 8.000 12/15/12 8,544,318
8,535,000 Warren & Washington Counties IDA (Res Rec) 8.200 12/15/10 8,687,520
8,965,000 Warren & Washington Counties IDA (Res Rec) 8.200 12/15/10 9,125,205
100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/03 101,865
95,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/04 96,772
95,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/05 96,772
100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/06 101,865
100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/07 101,865
100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/08 101,865
100,000 Watervliet Elderly Hsg. Corp. 8.000 11/15/09 101,865
385,000 Wayne County IDA (ARC) 7.250 03/01/03 403,569
2,925,000 Wayne County IDA (ARC) 8.375 03/01/18 3,244,498
1,870,000 Westchester County IDA (BAH) 8.375 12/01/25 2,171,313
1,407,600 Westchester County IDA (Clearview School) 9.375 01/01/21 1,580,327
2,220,000 Westchester County IDA (JBFS) 6.750 12/15/12 2,390,896
1,560,000 Westchester County IDA (JDAM) 6.750 04/01/16 1,683,380
1,800,000 Westchester County IDA (Lawrence Hospital) 5.125 04/01/18 1,754,514
65,000 Westchester County IDA (Westchester Airport) 5.950 08/01/24 66,584
1,915,000 Yates County IDA (Keuka College) 8.750 08/01/15 2,271,420
1,095,000 Yates County IDA (Keuka College) 9.000 08/01/11 1,227,791
1,000,000 Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/03 1,065,290
3,270,000 Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/13 3,710,469
24 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,200,000 Yonkers IDA (St. Joseph's Hospital), Series A 6.150% 03/01/15 $ 2,219,184
2,100,000 Yonkers IDA (St. Joseph's Hospital), Series B 6.150 03/01/15 2,118,312
1,000,000 Yonkers IDA (St. Joseph's Hospital), Series C 6.200 03/01/20 1,008,700
350,000 Yonkers IDA (Westchester School) 7.375 12/30/03 370,472
3,375,000 Yonkers IDA (Westchester School) 8.750 12/30/23 3,780,304
860,000 Yonkers Parking Authority 7.750 12/01/04 923,115
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Possessions--9.4%
400,000 American Samoa Power Authority 6.800 09/01/00 419,660
400,000 American Samoa Power Authority 6.850 09/01/01 427,420
400,000 American Samoa Power Authority 6.900 09/01/02 434,228
500,000 American Samoa Power Authority 6.950 09/01/03 550,480
500,000 American Samoa Power Authority 7.000 09/01/04 557,530
800,000 American Samoa Power Authority 7.100 09/01/01 860,192
800,000 American Samoa Power Authority 7.200 09/01/02 876,952
5,375,000 Guam Airport Authority, Series B 6.600 10/01/10 5,885,679
60,730,000 Guam Airport Authority, Series B 6.700 10/01/23 66,541,254
2,995,000 Guam Economic Devel. Authority 9.375(d) 11/01/18 2,921,473
2,540,000 Guam Economic Devel. Authority 9.500 11/01/18 2,584,755
10,000 Guam Power Authority 6.300 10/01/22 10,636
450,000 Guam Power Authority 6.625 10/01/14 499,136
4,780,000 Guam Power Authority 6.750 10/01/24 5,333,811
1,010,034 Puerto Rico Dept. of Corrections Equipment Lease (b) 8.000 04/17/03 1,049,435
17,800,000 Puerto Rico Electric LEVRRS 8.153(f) 07/01/23 20,737,000
7,240,000 Puerto Rico GO 5.000 07/01/26 7,012,085
9,150,000 Puerto Rico GO 5.000 07/01/27 8,870,834
30,000 Puerto Rico GO 5.875 07/01/18 32,405
5,000,000 Puerto Rico GO 5.375 07/01/25 5,085,650
1,600,000 Puerto Rico GO RITES (b) 7.890(f) 07/01/22 1,812,000
40,250,000 Puerto Rico GO YCN 8.124(f) 07/01/20 45,130,313
1,000,000 Puerto Rico GO YCN (b) 8.063(f) 07/01/15 1,158,750
6,766,263 Puerto Rico Health Dept. Municipal Lease (b) 7.438 03/26/03 6,949,967
350,000 Puerto Rico HFA 6.250 04/01/29 369,747
8,690,000 Puerto Rico HFC 0.000 08/01/26 1,282,123
10,000 Puerto Rico HFC 7.300 10/01/06 10,540
210,000 Puerto Rico HFC 7.500 10/01/15 222,025
5,240,000 Puerto Rico HFC 7.500 04/01/22 5,540,042
95,000 Puerto Rico HFC 7.650 10/15/22 100,841
25,000 Puerto Rico HFC 7.800 10/15/21 25,533
1,000,000 Puerto Rico Highway & Transportation Authority 5.500 07/01/17 1,024,790
2,520,000 Puerto Rico IME (Upjohn) 7.500 12/01/23 2,629,292
672,600 Puerto Rico Industrial Commission Municipal Lease (b) 8.000 03/26/03 700,042
1,215,000 Puerto Rico Infrastructure Authority, Series A 7.500 07/01/09 1,242,605
660,000 Puerto Rico Infrastructure Authority, Series A 7.750 07/01/08 675,134
165,000 Puerto Rico Infrastructure Authority, Series A 7.900 07/01/07 168,803
5,000 Puerto Rico ITEME (Polytech University) 5.700 08/01/13 5,130
5,250,000 Puerto Rico ITEME (Ryder Hospital) 6.700 05/01/24 5,747,228
208,424 Puerto Rico Medical Services Municipal Lease (b) 7.300 02/27/03 214,133
802,650 Puerto Rico Medical Services Municipal Lease (b) 7.500 04/01/03 829,314
171,146 Puerto Rico Municipality of Rio Grande Vehicle Lease (b) 9.000 01/23/03 182,212
20,000 Puerto Rico Port Authority 7.300 07/01/07 20,034
25 Rochester Fund Municipals
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
===================================================================================================================================
Face
Amount Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 7,000,000 Puerto Rico Public Bldgs. Authority Indexed Flt. 6.050% (c)(f) 07/01/16 $ 7,375,620
427,962 Puerto Rico State Courts Municipal Lease (b) 8.000 03/26/03 445,718
16,550,000 Puerto Rico Telephone Authority RIBS 6.996(f) 01/16/15 17,646,438
15,000,000 Puerto Rico Telephone Authority RIBS (b) 8.200(f) 01/01/20 16,668,750
500,000 Puerto Rico TEMEC (Mennonite Hospital) 5.625 07/01/17 511,615
985,000 Puerto Rico TEMEC (Mennonite Hospital) 5.625 07/01/27 1,003,518
3,000,000 Puerto Rico TEMEC (Mennonite Hospital) 6.500 07/01/26 3,257,460
3,343,091 Puerto Rico/Family Dept. Municipal Lease (b) 12.725 08/12/03 3,847,363
1,205,000 University of V. I. 7.250 10/01/04 1,308,196
3,570,000 University of V. I. 7.700 10/01/19 4,099,859
5,175,000 University of V. I. 7.750 10/01/24 5,956,736
358,000 V. I. GO (Hugo Insurance Claims Program) 7.750 10/01/06 393,249
70,000 V. I. HFA 6.450 03/01/16 74,579
25,000 V. I. HFA 8.100 12/01/18 25,960
1,670,000 V. I. Port Authority (CEK Airport) 8.100 10/01/05 1,716,125
1,000,000 V. I. Public Finance Authority 5.500 10/01/22 1,012,910
7,500,000 V. I. Public Finance Authority 5.625 10/01/25 7,647,075
4,500,000 V. I. Public Finance Authority 6.000 10/01/22 4,603,455
1,135,000 V. I. Public Finance Authority 7.125 10/01/04 (p) 1,259,248
28,750,000 V. I. Public Finance Authority 7.250 10/01/18 (p) 32,763,213
1,735,000 V. I. Public Finance Authority 7.375 10/01/10 (p) 2,045,461
1,515,000 V. I. Water & Power Authority 5.300 07/01/21 1,508,016
5,945,000 V. I. Water & Power Authority 7.400 07/01/11 6,546,812
6,850,000 V. I. Water & Power Authority 7.600 01/01/12 7,817,289
5,200,000 V. I. Water & Power Authority 8.500 01/01/10 5,456,568
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,472,432,860)--102.2% 3,704,170,490
- ----------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(2.2%) (80,231,602)
---------------
NET ASSETS--100.0% $ 3,623,938,888
===============
</TABLE>
(a) Date of mandatory put; final maturity 12/15/2008.
(b) Illiquid security--See Note 5 of Notes to Financial Statements.
(c) Security will convert to a fixed coupon at a date prior to maturity.
(d) Non-income accruing security--Issuer is in default of interest payment.
(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
06/30/98.
(p) This issue has been prerefunded to an earlier date.
(v) Variable rate security that fluctuates as a percentage of prime rate.
(w) When-issued security--See Note 3 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
26 Rochester Fund Municipals
<PAGE>
PORTFOLIO ABBREVIATIONS
- --------------------------------------------------------------------------------
To simplify the listings of Rochester Fund Municipals' holdings in the Statement
of Investments, we have abbreviated the descriptions of many of the securities
per the table below:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
ACLDD Adults and Children with Learning and MMC Marymount Manhattan College
Developmental Disabilities MMP Millbrook Millwork Project
ARC Association of Retarded Citizens MTA Metropolitan Transit Authority
ASSC Annie Schaffer Senior Center NIMO Niagara Mohawk Power Corporation
BAH Beth Abraham Hospital NJ New Jersey
BHMS Brooklyn Heights Montessori School NY New York
BOCES Board of Cooperative Educational Services NYC New York City
CAB Capital Appreciation Bond NYS New York State
CARS Complimentary Auction Rate Security NYSEG New York State Electric and Gas
CCM Comprehensive Care Management OBPWC Ocean Bay Park Water Corporation
CDC Community Development Corporation PRFFP Puerto Rican Family Foundation Project
CEK Cyril E. King Res Rec Resource Recovery Facility
CF Community Facilities RGH Rochester General Hospital
CGH Community General Hospital RG&E Rochester Gas and Electric
CNR College of New Rochelle RIBS Residual Interest Bonds
Con Ed Consolidated Edison Company RITES Residual Interest Tax Exempt Security
COP Certificate of Participation SCSB Schuyler Community Services Board
DC Dominican College SLRHFP St. Luke Residential Healthcare Facility Project
EHC Elderly Housing Corporation SONYMA State of New York Mortgage Agency
EHL Engine Hook and Ladder SWMA Solid Waste Management Authority
EPG Elmhurst Parking Garage TEMEC Tourist, Educational, Medical and
ERDA Energy Research and Development Authority Environmental Control
FLCP Finger Lakes Cerebral Palsy UCC Upstate Community Colleges
GAINS Growth and Income Securities UCP/HCA United Cerebral Palsy and Handicapped
GO General Obligation Children's Association
HDC Housing Development Corporation UDC Urban Development Corporation
HELP Homeless Economic Loan Program UFA Utica Free Academy
HFA Housing Finance Agency V. I. United States Virgin Islands
HFAS Huntington First Aid Squad WHMC Wyckoff Heights Medical Center
HFC Housing Finance Corporation WWH Wyandach/Wheatley Heights
H&NH Hospital and Nursing Home YCN Yield Curve Note
IDA Industrial Development Authority YCR Yield Curve Receipt
IME Industrial, Medical and Environmental
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
LGAC Local Government Assistance Corporation
LGSC Local Government Services Corporation
LILCO Long Island Lighting Corporation
L.I. Long Island
MCC Mobile Climate Control
MHMC Montefiore Hospital and Medical Center
</TABLE>
27 Rochester Fund Municipals
<PAGE>
INDUSTRY CONCENTRATIONS June 30, 1998 (Unaudited)
================================================================================
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
Industry Market Value Percent
- --------------------------------------------------------------------------------
Hospital/Healthcare $611,360,552 16.5%
General Obligation 412,485,546 11.1
Electric Utilities 377,892,887 10.2
Multi-Family Housing 371,239,546 10.0
Resource Recovery 328,396,079 8.9
Lease Rental 258,962,862 7.0
Single-Family Housing 253,856,769 6.9
Marine/Aviation Facilities 162,849,671 4.4
Water Utilities 106,088,043 2.9
Non Profit Organization 104,895,030 2.8
Higher Education 104,696,668 2.8
Manufacturing, Non-Durable Goods 97,228,866 2.6
Highways/Railways 95,641,364 2.6
Adult Living Facilities 76,981,581 2.1
Education 65,801,278 1.8
Corporate Backed 61,620,759 1.7
Manufacturing, Durable Goods 61,182,909 1.6
Sales Tax Revenue 52,120,899 1.4
Other 100,869,181 2.7
-------------- -----
$3,704,170,490 100.0%
============== =====
SUMMARY OF RATINGS June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Distribution of investments by rating category, as a percentage of total
investments at value, is as follows:
Rating Percent
-------------------------------------------------
AAA 26.1%
AA 11.7
A 29.8
BBB 18.9
BB 0.4
B 1.9
CCC 0.0
CC 0.0
C 0.0
Not Rated 11.2
-----
100.0%
=====
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not 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 Trustees are
included in the "Not Rated" category. For further information see "Credit
Quality" in the Prospectus.
28 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES June 30, 1998 (Unaudited)
==============================================================================================
<S> <C>
ASSETS
Investments, at value (cost $3,472,432,860--see accompanying statement $3,704,170,490
--------------------------------------------------------------------------------------------
Receivables:
Interest 58,268,059
Shares of beneficial interest sold 20,369,807
Investments sold 2,905,128
--------------------------------------------------------------------------------------------
Other 350,741
--------------
Total assets 3,786,064,225
--------------
LIABILITIES
Bank overdraft 3,278,325
--------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 141,575,730
Note payable to bank (interest rate 7.125% at 6/30/98)--Note 6 6,900,000
Shares of beneficial interest redeemed 6,115,808
Dividends 3,195,219
Trustees' fees--Note 1 516,422
Other 543,833
--------------
Total liabilities 162,125,337
--------------
NET ASSETS $3,623,938,888
==============
==============================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $3,464,401,340
-------------------------------------------------------------------------------------------
Excess of distributions over net investment income (4,776,324)
-------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (67,423,758)
-------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 231,737,630
--------------
Net assets $3,623,938,888
==============
==============================================================================================
NET ASSET VALUE PER SHARE
CLASS A SHARES:
Net asset value and redemption price per share (based on net assets of
$3,176,445,829 and 169,755,161 shares of beneficial interest outstanding) $18.71
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $19.64
- ----------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $334,326,994 and
17,885,018 shares of beneficial interest outstanding) $18.69
- ----------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $113,166,065 and
6,052,636 shares of beneficial interest outstanding) $18.70
</TABLE>
See accompanying Notes to Financial Statements.
29 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1998 (Unaudited)
====================================================================================================================================
<S> <C> <C> <C>
INVESTMENT INCOME EXPENSES (CONTINUED)
Interest $104,415,480 Custodian fees and expenses $114,022
EXPENSES ------------
Management fees--Note 4 7,767,963 Trustees' fees and expenses--Note 1 51,572
Distribution and service plan Legal and auditing fees 37,940
fees--Note 4: Other 92,240
Class A 2,234,930 Interest 283,267
Class B 1,225,744 ------------
Class C 389,743 Total expenses 13,881,291
Transfer and shareholder servicing ------------
agent fees--Note 4: NET INVESTMENT INCOME 90,534,189
Class A 744,888 ------------
Class B 73,297 REALIZED AND UNREALIZED GAIN (LOSS)
Class C 17,882 Net realized loss on investments (2,451,118)
Accounting service fees--Note 4 496,927 Net change in unrealized appreciation
Registration and filing fees 198,128 or depreciation on investments 15,806,589
Shareholder reports 152,748 ------------
Net realized and unrealized gain 13,355,471
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $103,889,660
============
See accompanying Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1998 Year Ended
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) December 31, 1997
====================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 90,534,189 $ 155,206,919
Net realized loss (2,451,118) (5,735,552)
Net change in unrealized appreciation or depreciation 15,806,589 107,729,438
Net increase in net assets resulting from operations ----------- ------------
103,889,660 257,200,805
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (88,608,738) (152,050,014)
Class B (6,136,796) (2,948,096)
Class C (1,945,200) (808,459)
- -------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions--Note 2:
Class A 322,375,081 443,076,063
Class B 162,007,137 168,083,894
Class C 63,730,381 48,222,991
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 555,311,525 760,777,184
Beginning of period 3,068,627,363 2,307,850,179
-------------- --------------
End of period (including excess of distributions over net investment income of
$4,776,324 and undistributed net investment income of $1,380,220, respectively) $3,623,938,888 $3,068,627,363
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
30 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CLASS A
----------------------------------------------------------------------------
Six Months
Ended
June 30, 1998 Year Ended December 31,
(Unaudited) 1997 1996 (b) 1995 1994 1993
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.67 $18.00 $18.18 $16.31 $19.00 $17.65
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.52 1.10 1.10 1.10 1.13 1.17
Net realized and unrealized gain (loss) 0.06 0.67 (0.18) 1.86 (2.68) 1.35
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations 0.58 1.77 0.92 2.96 (1.55) 2.52
- --------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (0.54) (1.10) (1.10) (1.09) (1.13) (1.17)
Undistributed net investment income -
prior year -- -- -- -- (0.01) --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (0.54) (1.10) (1.10) (1.09) (1.14) (1.17)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.71 $18.67 $ 18.00 $18.18 $16.31 $19.00
==========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE (C) 3.22% 10.20% 5.37% 18.58% (8.35%) 14.60%
==========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,176 $2,848 $2,308 $2,145 $1,791 $1,794
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $3,006 $2,539 $2,191 $2,005 $1,847 $1,449
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.52%(d) 5.96% 6.20% 6.25% 6.43% 6.21%
Expenses (e) 0.75%(d) 0.76% 0.82% 0.82% 0.84% 0.75%
Expenses (excluding interest) (e) (f) 0.73%(d) 0.75% 0.77% 0.78% 0.73% 0.64%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (g) 6.1% 4.6% 13.3% 14.6% 34.4% 18.3%
(a) For the period from March 17, 1997 (inception of offering) to December 31,
1997.
(b) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
(c) 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.
(d) Annualized.
(e) The expense ratios reflect the effect of gross expenses paid indirectly by
the Fund.
(f) 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.
(g) 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, 1998 were $747,887,491 and
$211,017,014, respectively.
Per share information has been determined based on average shares outstanding for the period.
See accompanying Notes to Financial Statements.
</TABLE>
31 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (Continued) CLASS B CLASS C
----------------------------------------------------------
Six Months |Six Months
Ended Period Ended | Ended Period Ended
June 30, 1998 December 31, |June 30, 1998 December 31,
(Unaudited) 1997 (a) | (Unaudited) 1997 (a)
=======================================================================================================
<S> <C> <C> | <C> <C>
PER SHARE OPERATING DATA |
Net asset value, beginning of period $18.65 $17.89 | $18.66 $17.89
- -------------------------------------------------------------------------------------------------------
Income (loss) from investment operations: |
Net investment income 0.43 0.74 | 0.43 0.74
Net realized and unrealized gain (loss) 0.07 0.76 | 0.07 0.77
------ ------ | ------ ------
Total income (loss) from investment operations 0.50 1.50 | 0.50 1.51
- -------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders: |
Dividends from net investment income (0.46) (0.74) | (0.46) (0.74)
------ ------ | ------ ------
Total dividends and distributions to shareholders (0.46) (0.74) | (0.46) (0.74)
- -------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.69 $18.65 | $18.70 $18.66
====== ====== | ====== ======
=======================================================================================================
TOTAL RETURN, AT NET ASSET VALUE (C) 2.78% 8.74% | 2.78% 8.80%
=======================================================================================================
RATIOS/SUPPLEMENTAL DATA |
Net assets, end of period (in millions) $334 $172 | $113 $49
- -------------------------------------------------------------------------------------------------------
Average net assets (in millions) $248 $76 | $79 $21
- -------------------------------------------------------------------------------------------------------
Ratios to average net assets: |
Net investment income 4.60%(d) 4.91%(d) | 4.59%(d) 4.92%(d)
Expenses (e) 1.59%(d) 1.59%(d) | 1.57%(d) 1.58%(d)
Expenses (excluding interest) (e) (f) 1.58%(d) 1.58%(d) | 1.56%(d) 1.57%(d)
- -------------------------------------------------------------------------------------------------------
Portfolio turnover rate (g) 6.1% 4.6% | 6.1% 4.6%
- ----------------
(a) For the period from March 17, 1997 (inception of offering) to December 31,
1997.
(b) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
(c) 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.
(d) Annualized.
(e) The expense ratios reflect the effect of gross expenses paid indirectly by
the Fund.
(f) 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.
(g) 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, 1998 were $747,887,491
and $211,017,014, respectively.
Per share information has been determined based on average shares
outstanding for the period.
See accompanying Notes to Financial Statements.
</TABLE>
32 Rochester Fund Municipals
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Rochester Fund Municipals (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified open-end management 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 advisor 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 that class
and exclusive voting rights with respect to matters affecting that 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. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Long-term debt securities are valued by
a portfolio pricing service approved by the Board of Trustees. Such securities
which cannot be valued by an approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith.
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 or greater than the amount of
its purchase commitments. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of the Fund's net asset value to
the extent the Fund makes such purchases while remaining substantially fully
invested. As of June 30, 1998, the Fund had entered into outstanding when-issued
or forward commitments (see Note 3).
SECURITY CREDIT RISK. The Fund invests in high yield securities, which may be
subject to a greater degree of credit risk, greater market fluctuations and risk
of loss of income and principal, and may be more sensitive to economic
conditions than lower yielding, higher rated fixed income securities. The Fund
may acquire securities in default, and is not obligated to dispose of securities
whose issuers subsequently default. At June 30, 1998, securities with an
aggregate market value of $6,755,473, representing 0.19% of the Fund's net
assets, were in default.
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.
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, 1998, the Fund
had available for federal income tax purposes an unused capital loss carryover
of approximately $66,997,000, which expires between 2000 and 2006.
33 Rochester Fund Municipals
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 advisor) 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 $30,617 for the
six months ended June 30, 1998. Payments of $30,375 were made to retired
trustees during the six months ended June 30, 1998. At June 30, 1998, the Fund
had recognized an accumulated liability of $507,548.
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately
for Class A, Class B and Class C shares from net investment income each day the
New York Stock Exchange is open for business and pay such dividends monthly.
Distributions from net realized gains on investments, if any, will be declared
at least once each year.
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 distributions made during the year from net
investment income or net realized gains may differ from its 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 fiscal year in which the income or realized gain 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. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Interest income is accrued on a daily basis. In
computing net investment income, the Fund amortizes premiums and accretes
original issue discount, which is in accordance with federal income tax
requirements. For municipal bonds acquired 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. Realized gains and losses
on investments and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income tax
purposes.
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.
34 Rochester Fund Municipals
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NOTE 2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of shares of beneficial interest of
each class, par value $.01 per share. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997 (1)
-------------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A:
Sold 23,165,224 $ 432,991,077 35,581,801 $ 648,373,849
Dividends and distributions
reinvested 2,474,974 46,231,150 4,372,465 79,564,502
Redeemed (8,397,142) (156,847,146) (15,687,966) (284,862,288)
----------- ------------- ----------- -------------
Net increase 17,243,056 $ 322,375,081 24,266,300 $ 443,076,063
========== ============= =========== =============
- -----------------------------------------------------------------------------------------------------------------
CLASS B:
Sold 8,856,128 $ 165,324,564 9,239,870 $ 168,687,731
Dividends and distributions
reinvested 205,756 3,838,926 101,107 1,860,790
Redeemed (383,661) (7,156,353) (134,182) (2,464,627)
---------- ------------- ----------- -------------
Net increase 8,678,223 $ 162,007,137 9,206,795 $168,083,894
========== ============= =========== =============
- -----------------------------------------------------------------------------------------------------------------
CLASS C:
Sold 3,592,786 $ 67,049,985 2,680,454 $ 49,004,451
Dividends and distributions
reinvested 69,759 1,302,046 28,231 520,244
Redeemed (247,839) (4,621,650) (70,755) (1,301,704)
---------- ------------- ----------- -------------
Net increase 3,414,706 $ 63,730,381 2,637,930 $ 48,222,991
========== ============= =========== =============
</TABLE>
- -------------
(1) For the year ended December 31, 1997 for Class A shares and for the period
from March 17, 1997 (inception of offering) to December 31, 1997 for Class
B and Class C shares.
NOTE 3. PORTFOLIO INFORMATION
The Fund held $460,546,530 in inverse floating rate municipal bonds at June 30,
1998, which represents 12.71% of the Fund's net assets.
At June 30, 1998, net unrealized appreciation on investments of $231,737,630 was
composed of gross appreciation of $237,511,245, and gross depreciation of
$5,773,615.
35 Rochester Fund Municipals
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
At June 30, 1998, investments in securities included issues that were purchased
on a when-issued or delayed delivery basis. The Fund has recorded these
commitments 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 these commitments. The Fund intends to
invest no more than 10% of its net assets in when-issued or delayed delivery
securities. The aggregate cost of securities purchased on a when-issued or
delayed delivery basis at June 30, 1998 was $119,028,750, which represents 3.28%
of the Fund's net assets. Information concerning these securities is as follows:
<TABLE>
<CAPTION>
VALUATION PER UNIT
FACE AMOUNT ACQUISITION DELIVERY AS OF
SECURITY (IN THOUSANDS) DATE DATE COST PER UNIT JUNE 30, 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NYS ERDA (RG&E):
5.95% due 9/01/33 $ 7,000 9/03/97 9/02/98 100.000% 105.791%
5.95% due 9/01/33 5,500 9/29/97 9/02/98 102.250 105.791
- -----------------------------------------------------------------------------------------------------------------
Suffolk County IDA
(Huntington Res Rec):
5.55% due 10/01/04 8,545 1/28/97 7/29/99 100.000 103.499
5.65% due 10/01/05 9,180 1/28/97 7/29/99 100.000 104.222
5.75% due 10/01/06 9,875 1/28/97 7/29/99 100.000 105.146
5.80% due 10/01/07 10,615 1/28/97 7/29/99 100.000 105.381
5.85% due 10/01/08 11,410 1/28/97 7/29/99 100.000 105.937
5.95% due 10/01/09 12,265 1/28/97 7/29/99 100.000 106.841
6.00% due 10/01/10 13,190 1/28/97 7/29/99 100.000 106.870
6.15% due 10/01/11 14,170 1/28/97 7/29/99 100.000 107.676
6.25% due 10/01/12 17,155 1/28/97 7/29/99 100.000 108.033
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
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% of the first
$100 million of the Fund's 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% of the net assets in excess of $5 billion. During the six months ended
June 30, 1998, the Fund paid $7,767,963 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 six months ended June 30, 1998, the Fund paid $496,927
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 for each Fund shareholder
account and reimburses OFS for its out-of-pocket expenses. During the six months
ended June 30, 1998, the Fund paid a total of $836,067 to OFS for transfer and
shareholder servicing agent fees.
For the six months ended June 30, 1998, commissions (sales charges paid by
investors) on sales of Class A shares totaled $10,407,935, of which $1,569,159
was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to brokers/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $6,430,080 and $658,844, respectively, of which $13,345
was paid to an affiliated broker/dealer for Class B shares. During the six
months ended June 30, 1998, OFDI received contingent deferred sales charges of
$211,780 and $28,049, respectively, upon redemption of Class B and Class C
shares, as reimbursement for sales commissions advanced by OFDI at the time of
sale of such shares.
36 Rochester Fund Municipals
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 shareholder 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, 1998, OFDI paid
$13,202 to an affiliated broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its 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 for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and Class C shares. Each fee is 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 six months ended June 30,
1998, OFDI retained $1,209,535 and $374,789, respectively, as compensation for
Class B and Class C sales commissions and service fee advances, as well as
financing costs. If either Plan is terminated by the Fund, the Board of Trustees
may allow the Fund to continue payments of the asset-based sales charge to OFDI
for distributing shares before the Plan was terminated. At June 30, 1998, OFDI
had incurred excess distribution and servicing costs of $14,271,369 for Class B
and $1,591,729 for Class C.
NOTE 5. ILLIQUID AND RESTRICTED SECURITIES
At June 30, 1998, investments in securities included issues that are illiquid. A
security may be considered illiquid if it lacks a readily- available market or
if its valuation has not changed for a certain period of time. The Fund intends
to invest no more than 15% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid securities subject to
this limitation at June 30, 1998 was $216,801,146, which represents 5.98% of the
Fund's net assets.
NOTE 6. 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 funds
managed by the Manager in an unsecured line of credit with a bank, which permits
borrowings up to $75 million, collectively. Interest is charged to each fund,
based on its borrowings, at a rate equal to the Federal Funds Rate plus 0.625%.
The Fund also pays a commitment fee equal to its pro rata share of the average
unutilized amount of the credit facility at a rate of 0.07% per annum. The
commitment fee allocated to the Fund for the six months ended June 30, 1998 was
$9,070.
The Fund had borrowings outstanding of $6,900,000 at June 30, 1998. For the six
months ended June 30, 1998, the average monthly loan balance was $9,258,582 at
an average interest rate of 6.220%. The maximum amount of borrowings outstanding
at any month-end was $43,900,000.
37 Rochester Fund Municipals
<PAGE>
ROCHESTER FUND MUNICIPALS
- --------------------------------------------------------------------------------
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
Robert G. Galli, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Ronald H. Fielding, Vice President and Portfolio Manager
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Adele A. Campbell, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR
OppenheimerFunds, Inc.
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
CUSTODIAN OF PORTFOLIO SECURITIES
Citibank, N.A.
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers 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.
OPPENHEIMERFUNDS FAMILY
- --------------------------------------------------------------------------------
REAL ASSET FUNDS
Real Asset Fund
Gold & Special Minerals Fund
GLOBAL STOCK FUNDS
Developing Markets Fund
International Small Company Fund
International Growth Fund
Global Fund
Quest Global Value Fund
Global Growth & Income Fund
STOCK FUNDS
Enterprise Fund
Discovery Fund
Quest Small Cap Value Fund
MidCap Fund
Capital Appreciation Fund
Quest Capital Value Fund
Growth Fund
Disciplined Value Fund
Quest Value Fund
STOCK & BOND FUNDS
Main Street Income & Growth Fund
Quest Opportunity Value Fund
Total Return Fund
Quest Balanced Value Fund(1)
Equity Income Fund
Disciplined Allocation Fund
Multiple Strategies Fund
Convertible Securities Fund(2)
TAXABLE BOND FUNDS
International Bond Fund
World Bond Fund
High Yield Fund
Champion Income Fund
Strategic Income Fund
Bond Fund
U.S. Government Trust
Limited-Term Government Fund
MUNICIPAL FUNDS
California Municipal Fund(3)
Florida Municipal Fund(3)
New Jersey Municipal Fund(3)
New York Municipal Fund(3)
Pennsylvania Municipal Fund(3)
Municipal Bond Fund
Insured Municipal Fund
Intermediate Municipal Fund
Rochester Division:
Rochester Fund Municipals
Limited Term New York Municipal Fund
MONEY MARKET FUNDS(4)
Money Market Fund Cash Reserves
(1) On 5/18/98, the Fund's name was changed from "Quest Growth & Income Value
Fund".
(2) On 4/28/98, the Fund's name was changed from "Bond Fund for Growth".
(3) Available only to investors in certain states.
(4) An investment in money market funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although these funds may seek to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc. Two World Trade Center,
New York, NY 10048-0203.
(c) Copyright 1998 OppenheimerFunds, Inc. All rights reserved.
38 Rochester Fund Municipals
<PAGE>
INTERNET
24-hr access to account
information and online
transactions now available
www.oppenheimerfunds.com
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
ACCOUNT TRANSACTIONS
Mon-Fri 8:30am-8pm ET
1-800-852-8457
PHONELINK
24-hr automated information
and automated transactions
1-800-533-3310
TELECOMMUNICATION DEVICE
FOR THE DEAF (TDD)
Mon-Fri 8:30am-2pm ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
1-800-835-3104
[LOGO]
OPPENHEIMERFUNDS(R)
THE RIGHT WAY TO INVEST
RSO 365.001.0898
August 30, 1998
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you have some special privileges.
Whether it's automatic investment plans, informative newsletters and hotlines,
or ready account access, you can benefit from services designed to make
investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that links your Oppenheimer funds
accounts and your bank checking or savings account, you can use the Telephone
Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
