-------------------------------
Semiannual Report June 30, 1999
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Rochester
Fund Municipals
[graphic: New York State map]
[logo] OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
[logo: Rochester Fund Municipals]
Report highlights
- --------------------------------------------------------------------------------
o In managing Rochester Fund Municipals, we 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 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 New York State issues.
o These strategies and more enabled the Fund to increase dividend payouts
beginning with the May 25, 1999, dividend. For more details, be sure to read "An
Interview with your Fund's Managers," beginning on page 4.
o Despite recent interest rate volatility, Rochester Fund Municipals continued
to exhibit strong performance against its peers. In fact, Rochester Fund
Municipals Class A is the #1 performing New York State Municipal Debt Fund as
ranked by Lipper Analytical Services, Inc. for the 10-year period ended
6/30/99.(1) These rankings included 31 funds for the 10-year period. Within the
same category, the Fund's Class A shares also ranked seventh out of 96 funds for
the 1-year period and third out of 61 funds for the 5-year period.
1. Source: Lipper Analytical Services, Inc., an independent
mutual fund monitoring service. Rochester Fund Municipals is categorized by
Lipper as a New York State Municipal Debt Fund. Lipper performance does not take
sales charges into consideration and assumes the reinvestment of dividends and
capital gains distributions. Sales charges, if included, would affect results.
Past performance is not predictive of future results.
Contents
2 President's Letter
3 Performance
Update and
Portfolio Review
4 An Interview
with your Fund's
Managers
6 Statement of
Investments
32 Statement of
Assets and Liabilities
33 Statement of
Operations and
Statements of
Changes in
Net Assets
34 Financial Highlights
37 Notes to Financial Statements
42 Officers and Trustees
Information and Services
(see back cover)
Dear shareholder,
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[photo: Bridget A. Macaskill]
Bridget A. Macaskill
President
Rochester Fund Municipals
According to popular belief, the last six months have been particularly
favorable for the financial markets.
The truth of the matter is that it's been a long, uphill struggle for the
diversified investor. That's because the stock market's dramatic rise reflects
the performance of the Dow Jones Industrial Average, which has been fueled by
only a small number of large-capitalization growth stocks and technology
companies. In the bond market this year, while many corporate and foreign bonds
have provided relatively attractive returns, the first quarter of 1999 was the
worst quarter in history for U.S. Treasury securities.(1)
Recently, though, signs of change have been emerging that confirm the
importance of a well-diversified portfolio. While investors focusing on
large-cap growth and technology stocks may have achieved superior short-term
returns, they may have also dramatically increased their exposure to potential
risks. If recent economic and market trends persist, previously out-of-favor
stocks may continue to rise.
Specifically, U.S. economic growth has continued to surpass most analysts'
expectations and the breadth of the market's positive performance has begun to
widen. This has raised concerns that inflationary pressures may re-emerge.
Looking outside of the United States, many foreign economies also appear to be
on the mend. The impact of these changes, as it applies to your fund, is
discussed more fully inside by your portfolio manager.
You may also have wondered about the impact of the Year 2000 problem on your
investments. While we cannot predict the final outcome, we are pleased that many
companies and governments appear to be making progress toward avoiding a major
disruption. For our part, OppenheimerFunds is in the advanced stages of our Y2K
project, and we have successfully participated in industry-wide tests.
Meanwhile, we intend to maintain the disciplined investment approach that
has been helping Oppenheimer funds shareholders for more than 40 years as they
pursue their financial goals. Our longstanding experience has taught us that
while investment fads come and go, prudent diversification remains key to
successful investing. In fact, it is an essential part of what makes
OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
- ------------------------
Bridget A. Macaskill July 22, 1999
1. Foreign investing entails higher expenses and risks,
such as foreign currency fluctuations, economic and political instability, and
differences in accounting standards.
2 Rochester Fund Municipals
<PAGE>
Performance update
- --------------------------------------------------------------------------------
The widely publicized hike in interest rates effected by the Federal
Reserve Board's decision on the last day of this semiannual report period
impacted all fixed income investments, including Rochester Fund Municipals. This
adverse environment notwithstanding, Class A shares of the Fund posted a modest
loss of 0.88% in cumulative return, without sales charges, through the six-month
period ended June 30, 1999--thanks in no small part to the risk diversification
we seek by including nearly 1,100 issues from around New York State.(1)
<TABLE>
<CAPTION>
-------------------------------------------------------
Total Returns(2)
-------------------------------------------------------
For the periods ended 6/30/99
Cumulative Average Annual
NAV MOP NAV MOP
<S> <C> <C> <C> <C>
A Shares
1-Year 2.29% -2.56% 2.29% -2.56%
3-Year 23.23% 17.38% 7.21% 5.49%
5-Year 41.49% 34.76% 7.19% 6.15%
10-Year 114.27% 104.11% 7.92% 7.40%
Life (5/15/86) 176.77% 163.63% 8.07% 7.67%
B Shares
1-Year 1.47% -3.37% 1.47% -3.37%
Life (3/17/97) 13.41% 10.41% 5.66% 4.43%
C Shares
1-Year 1.38% 0.41% 1.38% 0.41%
Life (3/17/97) 13.36% 13.36% 5.64% 5.64%
</TABLE>
Rochester Fund Municipals Class A
The value of $10,000 invested since inception
(May 15, 1986), without sales charges, and
the Lipper New York Municipal Debt Index.
[mountain chart]
<TABLE>
<CAPTION>
Date Rochester Fund Lipper New York Muncipal
Municipals Debt Index
<S> <C> <C>
May-86 10032 10000
Jun-86 10050 9903
Aug-86 10176 10426
Nov-86 10446 10814
Feb-87 10622 11162
May-87 10319 10247
Jun-87 10510 10459
Aug-87 10688 10623
Nov-87 10858 10368
Feb-88 11328 11100
May-88 11510 10953
Jun-88 11650 11122
Aug-88 11850 11237
Nov-88 12226 11599
Feb-89 12487 11838
May-89 12825 12357
Jun-89 12912 12521
Aug-89 13071 12530
Nov-89 13372 12768
Feb-90 13629 12843
May-90 13859 12981
Jun-90 13986 13138
Aug-90 14116 13111
Nov-90 14423 13481
Feb-91 14709 13784
May-91 15217 14175
Jun-91 15281 14165
Aug-91 15707 14642
Nov-91 16083 15047
Feb-92 16365 15325
May-92 16873 15790
Jun-92 17238 16119
Aug-92 17654 16463
Nov-92 17969 16644
Feb-93 19134 17737
May-93 19391 17873
Jun-93 19840 16173
Aug-93 20362 18568
Nov-93 20402 18610
Feb-94 20504 18722
May-94 19669 18075
Jun-94 19561 17954
Aug-94 20048 18328
Nov-94 18471 17125
Feb-95 20307 18665
May-95 21294 19495
Jun-95 21198 19273
Aug-95 21514 19572
Nov-95 22339 20404
Feb-96 22528 20515
May-96 22231 20087
Jun-96 22439 20298
Aug-96 22713 20445
Nov-96 23711 21354
Feb-97 24037 21443
May-97 24343 21668
Jun-97 24644 21889
Aug-97 25180 22300
Nov-97 25824 22818
Feb-98 26531 23419
May-98 26874 23665
Jun-98 27033 23770
Aug-98 27496 24210
Nov-98 27869 24499
Feb-99 28099 24671
May-99 28092 24537
Jun-99 27678 24116
</TABLE>
Results of a hypothetical $10,000 investment in Class A Shares on May 15, 1986.
The Lipper New York Municipal Debt Fund Index, beginning April 30, 1986, is an
arithmetic average of all funds, including reinvested dividends, that limit
assets to those securities which are exempt from New York State and New York
City taxes. The Index cannot be purchased directly by investors.
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 3% (life-of-class). Class C returns at MOP 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
Class 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)
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Rochester Fund Municipals is for investors looking
for income that's exempt from federal, New York State and New York City personal
income taxes.
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.
-----------------------------
Yields
-----------------------------
As of 6/30/99
Dividend Yield Standardized
NAV MOP Yield
Class A 5.74% 5.47% 4.64%
Class B 4.94% 4.94% 4.00%
Class C 4.95% 4.95% 4.01%
Dividend yield at MOP (based on last distribution) and standardized yield
(based on net investment income for the 30-day period ended 6/30/99) are
annualized and divided by period-end offering price. Dividend yield at NAV does
not include sales charges. Falling share prices may artificially increase
yields.
Credit Allocation
[pie chart]
AAA 26.3%
AA 10.1%
A 27.3%
BBB 19.4%
BB 1.5%
B 0.7%
Not Rated 14.7%
Top 5 Sectors
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Hospital/Healthcare 17.6%
- ---------------------------
Electric Utilities 12.3%
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General Obligation 10.7%
- ---------------------------
Multifamily Housing 8.6%
- ---------------------------
Resource Recovery 6.8%
- ---------------------------
3. Portfolio data are as of 6/30/99, 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 Ratings 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 as being
comparable, in the Manager's judgment, to securities rated by a rating agency in
the same category. See page 31 for further explanation.
3 Rochester Fund Municipals
<PAGE>
An interview with your Fund's managers
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[sidebar]
By maintaining a disciplined investment
approach...we try to provide above
average yield and total return on behalf
of our shareholders.
[photo]
Portfolio Management Team (l to r)
Anthony A. Tanner, CFA
Vice President and Portfolio Manager, Rochester Division
Joined the Rochester Funds Investment Team in June, 1991
Ronald H. Fielding, CFA
Senior Vice President, Portfolio Manager and Chief Strategist, Rochester
Division
Founded the Rochester Funds Investment Team in May, 1983
Daniel G. Loughran, CFA
Vice President and Senior Research Analyst, Rochester Division
Joined the Rochester Funds Investment Team in October, 1994
How would you describe the past six-month period ending June 30, 1999?
The big news in the first half of 1999 was the increase in the dividend payout.
Class A shareholders received an increase, from 8.5 cents to 8.7 cents per
share, per month, effective in May. (All share classes experienced proportional
increases. See your statement for details.)
Interest rates rose during the first half of 1999, which caused bond prices
in general to fall. Municipal bonds showed less volatility than taxable bonds,
and Rochester Fund Municipals was less volatile than many of its New York
competitors. Thus, while the total return of the Fund's Class A shares was
- -0.88% for the six months ended June 30, 1999, the average New York State
municipal debt fund was -1.80% for this 6-month period, as measured by Lipper
Analytical Services.(1)
Describe the condition of the New York State municipal bond market during this
period.
New York State municipal bonds were less volatile than other fixed income
securities, including Treasury issues, during this period. With the yield on
long municipal issues at approximately 90% of comparable Treasuries, before
consideration of the exemption from federal income tax, municipal bonds
continued to be attractive for buyers.
The first half of 1999 has produced fewer new large municipal bond issues
than the same period in 1998. Fortunately, new issuance of municipal bonds that
are smaller in size, and the increased availability of bonds in the secondary
market, have provided a more than adequate supply of bonds for effective
portfolio management.
Actually, we prefer smaller municipal bond offerings. Close analysis of
small offerings is a strategy that we've used for many years to find value for
the portfolio.
And, with total net assets of Rochester Fund Municipals over $4.5 billion,
and our sister fund Limited Term New York Municipal Fund over $1.3 billion, we
usually get "first call" on many of the small issues in New York State.
In large part, our strategy hinges on the ability of our in-house research
staff to analyze the issues. Accordingly, we have increased our staff of credit
analysts during this period, bringing our total professional staff to six. James
Bragg, MBA, and Chris Weiler, MBA, now bring additional expertise to analyze and
monitor portfolio holdings. Rochester Fund Municipals already owns over 1,100
individual bond issues from over 200 different issuers, and our expanded staff
will help to maintain the quality of the portfolio going forward.
What are the advantages of smaller bond issues?
We add select, small bond issues to the portfolio to provide high yield at good
value. Our traditional bottom-up approach to municipal bond investing helps us
to identify bonds with favorable credit characteristics that may not be
reflected by an institutional credit rating. Moreover, many small issuers may
elect not to spend the money to obtain a credit rating. In either case, careful
research is the only feasible way to assess bond value. Our research enables us
to evaluate bonds, looking beyond credit ratings, in a manner that most retail
investors would not be able to do themselves.
4 Rochester Fund Municipals
<PAGE>
[photo]
Portfolio Management Team (l to r)
Christopher D. Weiler
Credit Analyst, Rochester Division
Joined the Rochester Funds Investment Team in January, 1999
Richard A. Stein, CFA
Vice President-Credit Analysis, Rochester Division
Joined the Rochester Funds Investment Team in May, 1993
James E. Bragg
Credit Analyst, Rochester Division
Joined the Rochester Funds Investment Team in June, 1999
For example we used these methods to acquire all of a $1,465,000 Cattaraugus
County Industrial Development Agency issue, currently in the portfolio.(2) These
bonds, originally set to mature in twenty years, were purchased at par with a
5.45% coupon. They were rated BBB, but we determined that a special provision of
the bonds reduced their average life to sixteen years. As a result, the 5.45%
coupon represented 25 basis points of extra yield over similarly rated, large
issues of like duration issued at that time.
Now here's the kicker: Rochester Fund Municipals was one of three funds
bidding to purchase these bonds. But upon learning that the bonds would be sold
in equal shares to each of the three bidders, thus representing less than
$500,000 in each share, the two other funds dropped out--leaving all of the
bonds for the Rochester Fund Municipals portfolio. Result: Our shareholders
currently earn the income premium generated by this issue--which other funds
viewed as too small an offering to merit their attention.
How does the Fund's yield compare to other asset classes, like stocks?
Considering the very low current rate of inflation, the Fund's current yields
are attractive. Real interest rates, adjusted for inflation, are currently at
very high levels. And any stock investor knows that companies with a
Price/Earnings ratio of 25 are not uncommon in the U.S. stock market; but that
means that investors stand to earn 1/25 of each dollar invested, or about 4%, by
owning stock in those companies. This 4% represents an "earnings yield," or the
relationship of a company's earnings per share to its current stock price.
Generally most of this earnings yield is retained by the company for
reinvestment, while the smaller portion is paid out as a dividend which is fully
taxable to the recipient, reducing its after-tax value by up to 40%.
As of June 30, 1999, Rochester Fund Municipals' Class A dividend yield was
5.47% (30-day standardized yield of 4.64%).(3) For New York State investors,
this yield is exempt from federal, New York State and, if applicable, New York
City personal income taxes. Net cash dividends from stocks, or interest from
bank accounts or corporate bonds, are significantly reduced by these taxes.
The tax-free characteristic of municipal bond income is particularly
important when comparing different types of investments.(4) Consider whether
your taxable income investments leave you with as much after taxes as you could
be earning tax-free. Remember every dollar that you earn tax-free from Rochester
Fund Municipals is yours, to keep or spend as you wish.
What effect will the Federal Reserve Board's June 30 interest rate hike have on
the Fund?
On June 30 the Federal Reserve raised the target on "Fed Funds" (the overnight
borrowing rate between banks) by 0.25%. This increase was widely anticipated. In
fact, bond yields generally moved lower after this announcement, and the Fund's
net asset value rose 5 cents per share on June 30.
We concur with the Federal Reserve's view that the U.S. economy is very
strong, and that they must remain vigilant for signs of inflation. While the
current federal government surplus is helpful in this regard (by lowering
borrowing requirements) we believe that moderately higher short-term interest
rates can help keep inflation in check and our economic expansion continuing.
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. See the Statement of Investments for a complete listing of the Fund's
holdings as of 6/30/99.
3. Dividend yield is based on an annualization of the prior monthly distribution
and the maximum offering price on 6/30/99. Standardized yield is based on net
investment income for the 30-day period ended 6/30/99. Falling net asset values
will tend to artificially raise yields.
4. Capital gains distributions are taxable. For investors subject to the
Alternative Minimum Tax, a portion of the Fund's distributions may increase
that tax. A portion of the Fund's distributions may be subject to tax.
5 Rochester Fund Municipals
<PAGE>
<TABLE>
<CAPTION>
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Statement of Investments June 30, 1999 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
Municipal Bonds and Notes--103.1%
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New York--94.4%
$ 185,000 Albany County IDA (Upper Hudson Library) 8.750% 05/01/2007 $ 187,189
955,000 Albany County IDA (Upper Hudson Library) 8.750 05/01/2022 1,001,251
409,335 Albany Hsg. Authority 0.000 10/01/2012(p) 121,896
620,000 Albany Hsg. Authority (Lark Drive) 5.500 12/01/2028 603,241
1,270,000 Albany IDA (Albany Medical Center) 6.000 05/01/2019 1,264,044
1,460,000 Albany IDA (Albany Medical Center) 6.000 05/01/2029 1,441,881
2,275,000 Albany IDA (Albany Medical Center) 8.250 08/01/2004 2,405,357
400,000 Albany IDA (Albany Municipal Golf Course Clubhouse) 7.500 05/01/2012 429,192
1,000,000 Albany IDA (Albany Rehab.) 8.375 06/01/2023 1,074,510
1,715,000 Albany IDA (MARA Mansion Rehab.) 6.500 02/01/2023 1,762,008
1,395,000 Albany IDA (Port of Albany) 7.250 02/01/2024 1,485,661
1,135,000 Albany IDA (Sage Colleges) 5.250 04/01/2019 1,086,093
1,760,000 Albany IDA (Sage Colleges) 5.300 04/01/2029 1,666,509
1,770,000 Albany Parking Authority 0.000 11/01/2017 642,917
10,070,000 Allegany County IDA (Alfred University) 7.500 09/01/2011 10,938,739
2,170,000 Allegany County IDA (Cuba Memorial Hospital) 6.500 11/01/2009 2,118,723
4,230,000 Allegany County IDA (Cuba Memorial Hospital) 7.250 11/01/2019 4,089,945
4,200,000 Allegany County IDA (Houghton College) 5.250 01/15/2024 3,938,634
2,190,000 Amherst IDA (Amherst Rink) 5.650 10/01/2022 2,179,970
920,000 Amherst IDA (Asbury Pointe) 5.800 02/01/2015 879,787
3,000,000 Amherst IDA (Asbury Pointe) 6.000 02/01/2029 2,883,630
1,010,000 Babylon IDA (JFB & Sons Lithographers) 7.625 12/01/2006 1,043,118
2,570,000 Babylon IDA (JFB & Sons Lithographers) 8.625 12/01/2016 2,688,477
1,330,000 Babylon IDA (WWH Ambulance) 7.375 09/15/2008 1,435,416
515,000 Batavia Hsg. Authority (Washington Towers) 6.500 01/01/2023 535,173
800,000 Battery Park City Authority 5.750 06/01/2023 804,000
1,050,000 Battery Park City Authority 5.800 11/01/2022 1,078,707
700,000 Battery Park City Authority 10.000 06/01/2023 722,575
1,435,000 Bayshore HDC 7.500 02/01/2023 1,525,764
325,000 Beacon IDA (Craig House) 9.000 07/01/2011 325,838
1,000,000 Bethany Retirement Home 7.450 02/01/2024 1,128,420
1,065,000 Blauvelt Volunteer Fire Company 6.250 10/15/2017 1,056,171
35,000 Bleeker Terrace HDC 8.100 07/01/2001 35,328
45,000 Bleeker Terrace HDC 8.350 07/01/2004 45,476
900,000 Bleeker Terrace HDC 8.750 07/01/2007 911,277
6,965,000 Brookhaven IDA (Dowling College) 6.750 03/01/2023 7,348,980
780,000 Brookhaven IDA (Farber) (a) 6.000(v) 12/01/2002 780,000
490,000 Brookhaven IDA (Farber) (a) 6.000(v) 12/01/2004 490,000
475,000 Brookhaven IDA (Interdisciplinary School) 8.500 12/01/2004 508,440
3,220,000 Brookhaven IDA (Interdisciplinary School) 9.500 12/01/2019 3,565,731
500,000 Broome County IDA (Binghamton Simulator) 8.250 01/01/2002 506,275
190,000 Broome County IDA (Industrial Park) 7.550 12/01/2000 190,405
195,000 Broome County IDA (Industrial Park) 7.600 12/01/2001 195,470
600,000 Capital District Youth Center 6.000 02/01/2017 618,252
500,000 Carnegie Redevelopment Corp. (a) 7.000 09/01/2021 535,160
6,250,000 Castle Rest Residential Health Care Facility 5.750 08/01/2037 6,357,312
1,830,000 Cattaraugus County IDA (Cherry Creek) 9.800 09/01/2010 1,956,892
4,360,000 Cattaraugus County IDA (Olean General Hospital) 5.250 08/01/2023 4,118,064
1,465,000 Cattaraugus County IDA (St. Bonaventure University) 5.450 09/15/2019 1,422,954
6 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 8,075,000 Cattaraugus County IDA (St. Bonaventure University) 8.300% 12/01/2010(p) $ 8,728,590
8,615,000 Cayuga County COP (Auburn Memorial Hospital) 6.000 01/01/2021 8,878,619
2,900,000 Chautauqua County IDA (Jamestown Devel. Corp.) 5.250 08/01/2028 2,756,943
1,700,000 Chautauqua County IDA (Jamestown Devel. Corp.) 7.125 11/01/2008 1,667,071
3,395,000 Chautauqua County IDA (Jamestown Devel. Corp.) 7.125 11/01/2018 3,296,273
10,000,000 Chemung County IDA (St. Joseph's Hospital) 6.000 01/01/2013 9,881,700
10,380,000 Chemung County IDA (St. Joseph's Hospital) 6.350 01/01/2013 10,361,316
4,910,000 Chemung County IDA (St. Joseph's Hospital) 6.500 01/01/2019 4,910,000
1,000,000 Clifton Park Water Authority 5.000 10/01/2029 931,480
2,265,000 Clifton Springs Hospital & Clinic 8.000 01/01/2020 2,454,127
35,000 Cohoes GO 6.200 03/15/2012 34,573
25,000 Cohoes GO 6.200 03/15/2013 24,590
25,000 Cohoes GO 6.250 03/15/2014 24,573
25,000 Cohoes GO 6.250 03/15/2015 24,556
25,000 Cohoes GO 6.250 03/15/2016 24,403
530,000 Columbia County IDA (ARC) 7.750 06/01/2005 567,280
2,650,000 Columbia County IDA (ARC) 8.650 06/01/2018 2,936,200
605,000 Columbia County IDA (Berkshire Farms) 6.900 12/15/2004 636,575
1,855,000 Columbia County IDA (Berkshire Farms) 7.500 12/15/2014 2,012,694
30,000 Cortland County IDA (Paul Bunyon Products) 8.000 07/01/2000 30,359
3,500,000 Dutchess County IDA (Bard College) 7.000 11/01/2017 3,804,290
2,420,000 Dutchess County Res Rec (Solid Waste) (w) 5.150 01/01/2010 2,403,157
1,700,000 Dutchess County Res Rec (Solid Waste) (w) 5.400 01/01/2013 1,694,237
1,000,000 Dutchess County Res Rec (Solid Waste) (w) 5.450 01/01/2014 994,670
1,700,000 Dutchess County Res Rec (Solid Waste) 6.800 01/01/2010 1,859,426
1,805,000 Dutchess County Res Rec (Solid Waste) 7.000 01/01/2010 1,985,879
1,540,000 Dutchess County Water & Wastewater Authority 0.000 06/01/2025 348,394
1,540,000 Dutchess County Water & Wastewater Authority 0.000 06/01/2026 327,774
1,000,000 Dutchess County Water & Wastewater Authority 0.000 06/01/2027 200,790
3,000,000 Dutchess County Water & Wastewater Authority 5.375 06/01/2019 2,938,830
2,000,000 East Rochester Hsg. Authority (Linden Knoll) 5.350 02/01/2038 1,974,160
3,125,000 East Rochester Hsg. Authority (St. John's Meadows) 5.250 08/01/2038 2,995,000
3,250,000 East Rochester Hsg. Authority (St. John's Meadows) 5.675 08/01/2022 3,342,820
4,250,000 East Rochester Hsg. Authority (St. John's Meadows) 5.700 08/01/2027 4,376,267
1,885,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/2037 1,948,279
4,095,000 East Rochester Hsg. Authority (St. John's Meadows) 5.950 08/01/2027 4,155,196
25,000 Elmira HDC 7.500 08/01/2007 25,647
3,425,000 Erie County IDA (Affordable Hospitality) (a)(b) 9.250 12/01/2015 3,202,375
1,275,000 Erie County IDA (Air Cargo) 8.250 10/01/2007 1,313,390
2,380,000 Erie County IDA (Air Cargo) 8.500 10/01/2015 2,506,616
35,000,000 Erie County IDA (Canfibre Lackawanna) 9.050 12/01/2025 36,862,000
2,050,000 Erie County IDA (Episcopal Church Home) 6.000 02/01/2028 2,011,419
3,230,000 Erie County IDA (Medaille College) 8.000 12/30/2022 3,480,939
2,655,000 Erie County IDA (Mercy Hospital) 6.250 06/01/2010 2,658,717
1,850,000 Essex County IDA (International Paper Co.) 5.500 08/15/2022 1,781,272
5,720,000 Franklin County IDA (Adirondack Medical Center) 5.500 12/01/2029 5,583,578
4,245,000 Franklin County SWMA 6.250 06/01/2015 4,323,363
620,000 Geneva IDA (Finger Lakes Cerebral Palsy) 8.250 11/01/2004 660,387
1,000,000 Geneva IDA (Finger Lakes Cerebral Palsy) 8.500 11/01/2016 1,067,350
925,000 Glen Cove IDA (SLCD) 6.875 07/01/2008 933,815
3,775,000 Glen Cove IDA (SLCD) 7.375 07/01/2023 3,749,745
7 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 15,500,000 Glen Cove IDA (The Regency at Glen Cove) 0.000% 10/15/2019(p) $ 4,665,810
2,375,000 Grand Central BID (Grand Central District Management) 5.250 01/01/2022 2,276,722
2,030,000 Groton Community Health Care Center 7.450 07/15/2021 2,272,220
755,000 Hamilton EHC (Hamilton Apartments) 11.250 01/01/2015 787,639
5,210,000 Hempstead IDA (Franklin Hospital Medical Center) 5.750 11/01/2008 5,099,600
9,375,000 Hempstead IDA (Franklin Hospital Medical Center) 6.375 11/01/2018 9,071,906
6,355,000 Hempstead IDA (South Shore Y JCC) 6.750 11/01/2024 6,229,870
1,015,000 Herkimer County IDA (Burrows Paper) 7.250 01/01/2001 1,028,723
14,440,000 Herkimer County IDA (Burrows Paper) 8.000 01/01/2009 15,430,151
60,000 Hsg. NY Corp. 5.500 11/01/2020 60,860
6,595,000 Hsg. NY Corp. 5.500 11/01/2020 6,671,766
990,000 Hudson IDA (Have, Inc.) 8.125 12/01/2017 1,039,797
1,300,000 Hudson IDA (Wittcomm, Inc.) 7.125 11/01/2009 1,267,760
1,000,000 Huntington Hsg. Authority (GJSR) 6.000 05/01/2029 980,850
2,500,000 Huntington Hsg. Authority (GJSR) 6.000 05/01/2039 2,435,900
950,000 Islip IDA (Leeway School) 9.000 08/01/2021 1,014,856
50,000 Islip IDA (WJL Realty) 7.800 03/01/2003 51,346
100,000 Islip IDA (WJL Realty) 7.850 03/01/2004 102,693
100,000 Islip IDA (WJL Realty) 7.900 03/01/2005 102,700
500,000 Islip IDA (WJL Realty) 7.950 03/01/2010 515,825
2,000,000 Islip Res Rec 6.500 07/01/2009 2,218,880
28,410,000 L.I. Power Authority 5.125 12/01/2022 27,213,655
20,600,000 L.I. Power Authority 5.250 12/01/2026 19,663,936
107,800,000 L.I. Power Authority 5.500 12/01/2029 106,616,356
21,000,000 L.I. Power Authority RITES (a) 8.546(f) 12/01/2022 17,355,240
5,905,000 L.I. Power Authority RITES (a) 8.555(f) 12/01/2022 4,880,128
12,500,000 L.I. Power Authority RITES (a) 9.055(f) 12/01/2026 10,910,500
3,725,000 L.I. Power Authority RITES (a) 9.113(f) 12/01/2026 3,251,329
2,650,000 Lockport HDC 6.000 10/01/2018 2,736,787
100,000 Lowville GO 7.200 09/15/2005 112,123
75,000 Lowville GO 7.200 09/15/2007 85,615
100,000 Lowville GO 7.200 09/15/2012 118,652
100,000 Lowville GO 7.200 09/15/2013 118,833
100,000 Lowville GO 7.200 09/15/2014 118,660
5,350,000 Lyons Community Health Initiatives Corp. 6.800 09/01/2024 5,762,110
4,610,000 Macleay Hsg. Corp. (Larchmont Woods) 8.500 01/01/2031 4,855,436
1,805,000 Madison County IDA (Oneida Healthcare Center) 6.100 07/01/2014 1,809,567
2,480,000 Mechanicsville HDC 6.900 08/01/2022 2,559,757
200,000 Middleton IDA (Flanagan Design & Display) 7.000 11/01/2006 196,486
690,000 Middleton IDA (Flanagan Design & Display) 7.500 11/01/2018 669,997
905,000 Middleton IDA (Fleurchem) 8.000 12/01/2016 978,296
3,955,000 Middletown IDA (Southwinds Retirement Home) 6.375 03/01/2018 3,964,571
3,740,000 Middletown IDA (Southwinds Retirement Home) 8.375 03/01/2018 4,292,473
660,000 Middletown IDA (YMCA) 6.250 11/01/2009 642,919
1,255,000 Middletown IDA (YMCA) 7.000 11/01/2019 1,209,167
75,000 Monroe County Airport Authority (GRIA) 7.250 01/01/2019 77,666
430,000 Monroe County COP 8.050 01/01/2011 440,002
4,260,000 Monroe County IDA (Al Sigl Center) 6.600 12/15/2017 4,426,396
1,590,000 Monroe County IDA (Al Sigl Center) 7.250 12/15/2015 1,708,773
3,080,000 Monroe County IDA (Brazill Merk) 7.900 12/15/2014 3,199,689
900,000 Monroe County IDA (Canal Ponds) 7.000 06/15/2013 966,906
8 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 10,000 Monroe County IDA (Cohber) 7.550% 12/01/2001 $ 10,163
10,000 Monroe County IDA (Cohber) 7.650 12/01/2002 10,208
10,000 Monroe County IDA (Cohber) 7.700 12/01/2003 10,212
170,000 Monroe County IDA (Cohber) 7.850 12/01/2009 174,124
1,265,000 Monroe County IDA (Collegiate Hsg. Foundation - RIT) 5.375 04/01/2029 1,208,037
2,127,565 Monroe County IDA (Cottrone Devel.) 9.500 12/01/2010 2,252,390
950,000 Monroe County IDA (Dayton Rogers Manufacturing) 6.100 12/01/2009 949,829
5,750,000 Monroe County IDA (DePaul CF) 5.950 08/01/2028 5,502,635
880,000 Monroe County IDA (DePaul CF) 6.450 02/01/2014 945,921
1,285,000 Monroe County IDA (DePaul CF) 6.500 02/01/2024 1,385,924
4,485,000 Monroe County IDA (DePaul Properties) 6.150 09/01/2021 4,488,319
335,000 Monroe County IDA (DePaul Properties) 8.300 09/01/2002 368,935
4,605,000 Monroe County IDA (DePaul Properties) 8.800 09/01/2021 5,118,181
14,565,000 Monroe County IDA (Genesee Hospital) 7.000 11/01/2018 14,928,251
1,000,000 Monroe County IDA (Jewish Home) 6.875 04/01/2017 1,029,040
4,945,000 Monroe County IDA (Jewish Home) 6.875 04/01/2027 5,053,790
600,000 Monroe County IDA (Machine Tool Research) 7.750 12/01/2006 612,330
600,000 Monroe County IDA (Machine Tool Research) 8.000 12/01/2011 609,168
300,000 Monroe County IDA (Machine Tool Research) 8.500 12/01/2013 309,189
1,425,000 Monroe County IDA (Melles Groit) 9.500 12/01/2009 1,447,672
1,926,000 Monroe County IDA (Morrell/Morrell) 7.000 12/01/2007 1,979,408
500,000 Monroe County IDA (Nazareth College) 5.250 04/01/2023 488,350
4,330,000 Monroe County IDA (Piano Works) 7.625 11/01/2016 4,657,175
2,625,000 Monroe County IDA (Roberts Wesleyan College) 6.700 09/01/2011 2,672,302
3,075,000 Monroe County IDA (St. John Fisher College) 5.375 06/01/2024 2,960,518
1,310,000 Monroe County IDA (St. Joseph's Parking Garage) 7.000 11/01/2008 1,286,485
4,345,000 Monroe County IDA (St. Joseph's Parking Garage) 7.500 11/01/2022 4,250,062
915,000 Monroe County IDA (Volunteers of America) 5.700 08/01/2018 885,510
2,710,000 Monroe County IDA (Volunteers of America) 5.750 08/01/2028 2,600,272
465,000 Monroe County IDA (West End Business) 6.750 12/01/2004 482,814
110,000 Monroe County IDA (West End Business) 6.750 12/01/2004 114,214
65,000 Monroe County IDA (West End Business) 6.750 12/01/2004 67,490
1,375,000 Monroe County IDA (West End Business) 8.000 12/01/2014 1,483,446
345,000 Monroe County IDA (West End Business) 8.000 12/01/2014 372,210
170,000 Monroe County IDA (West End Business) 8.000 12/01/2014 183,408
515,000 Monroe County IDA (West End Business) 8.000 12/01/2014 555,618
280,000 Monroe HDC (Multifamily Hsg.) 7.000 08/01/2021 287,902
5,860,000 Montgomery County IDA (ASMF) (a)(b) 7.250 01/15/2019 4,102,000
970,000 Montgomery County IDA (New Dimensions in Living) 8.900 05/01/2016 1,027,812
1,495,000 Mt. Vernon IDA (Meadowview) 6.150 06/01/2019 1,498,663
1,500,000 Mt. Vernon IDA (Meadowview) 6.200 06/01/2029 1,503,660
3,800,000 MTA Dedicated Tax Fund RITES (a) 8.144(f) 04/01/2023 2,941,960
10,000,000 MTA IVRC (a) 7.206(f) 06/15/2029 10,575,000
3,125,000 MTA RITES (a) 7.144(f) 07/01/2026 1,822,375
1,000,000 MTA Service Contract, Series 8 5.375 07/01/2021 972,350
1,000,000 MTA Service Contract, Series R 5.500 07/01/2012 1,007,800
1,270,000 MTA Service Contract, Series R 5.500 07/01/2012 1,279,906
815,000 MTA Service Contract, Series R 5.500 07/01/2013 818,676
2,500,000 MTA Service Contract, Series R 5.500 07/01/2014 2,505,100
3,320,000 MTA Service Contract, Series R 5.500 07/01/2017 3,306,853
4,360,000 MTA Service Contract, Series R 5.500 07/01/2017 4,342,734
9 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 9,400,000 MTA YCR (a) 7.104%(f) 07/01/2013 $ 9,599,092
3,000,000 MTA YCR (a) 7.104(f) 07/01/2022 3,009,000
8,330,000 MTA, Series A 5.250 07/01/2028 8,070,854
5,000,000 MTA, Series C1 5.375 07/01/2027 4,935,850
9,690,000 MTA, Series C1 5.500 07/01/2022 9,596,395
13,480,000 MTA, Series C1 5.625 07/01/2027 13,531,089
50,000 MTA, Series J 5.500 07/01/2022 50,089
802,824 Municipal Assistance Corp. for Troy, NY 0.000 07/15/2021 240,566
1,218,573 Municipal Assistance Corp. for Troy, NY 0.000 01/15/2022 355,068
2,725,000 Nassau County IDA (ACLDD) 8.125 10/01/2022 2,942,046
2,290,000 Nassau County IDA (NSCFGA) 6.750 05/01/2024 2,249,513
275,000 Nassau County IDA (RJS Scientific) 8.050 12/01/2005 296,348
2,700,000 Nassau County IDA (RJS Scientific) 9.050 12/01/2025 3,042,333
2,850,000 Nassau County IDA (Sharp International) 7.375 12/01/2007 2,969,557
1,810,000 Nassau County IDA (Sharp International) 7.375 12/01/2007 1,885,929
2,610,000 Nassau County IDA (Sharp International) 7.875 12/01/2012 2,705,552
1,650,000 Nassau County IDA (Sharp International) 7.875 12/01/2012 1,716,528
3,900,000 Nassau IDA (New York Institute of Technology) 6.150 03/01/2029 3,749,226
20,000 New Hartford HDC (Village Point) 7.375 01/01/2024 21,076
1,495,000 New Hartford Sunset Wood Project 5.950 08/01/2027 1,565,325
13,010,000 New Rochelle IDA (College of New Rochelle) 5.250 07/01/2027 12,221,594
3,000,000 New Rochelle IDA (College of New Rochelle) 6.750 07/01/2022 3,258,240
4,950,000 Newark-Wayne Community Hospital 5.875 01/15/2033 5,033,952
2,350,000 Newark-Wayne Community Hospital 7.600 09/01/2015 2,494,713
185,000 Newburgh GO 7.100 09/15/2007 211,022
185,000 Newburgh GO 7.100 09/15/2008 211,022
180,000 Newburgh GO 7.150 09/15/2009 205,699
150,000 Newburgh GO 7.150 09/15/2010 171,415
155,000 Newburgh GO 7.200 09/15/2011 177,455
155,000 Newburgh GO 7.200 09/15/2012 177,455
160,000 Newburgh GO 7.250 09/15/2013 183,515
155,000 Newburgh GO 7.250 09/15/2014 177,780
2,310,000 Newburgh IDA (ARMA Textile Printers) 7.125 11/01/2007 2,340,030
4,880,000 Newburgh IDA (ARMA Textile Printers) 8.000 11/01/2017 4,983,114
995,000 Niagara County IDA (Maryland Maple) 10.250 11/15/2009 1,017,636
1,000,000 Niagara County IDA (Niagara University) 5.375 10/01/2023 994,540
1,900,000 Niagara County IDA (Sevenson Hotel) 6.600 05/01/2007 1,934,143
1,700,000 Niagara Falls COP (High School Facility) 5.375 06/15/2028 1,609,407
715,000 North Babylon Volunteer Fire Company 5.750 08/01/2022 728,757
3,145,000 North Country Devel. Authority (Clarkson University) 5.500 07/01/2029 3,077,131
585,000 North Tonawanda HDC (Bishop Gibbons Assoc.) 6.800 12/15/2007 632,993
3,295,000 North Tonawanda HDC (Bishop Gibbons Assoc.) 7.375 12/15/2021 3,800,486
25,000 Nunda GO 8.000 05/01/2010 30,976
270,000 NYC GO 0.000 05/15/2011 144,571
4,990,000 NYC GO 0.000 11/15/2011 2,602,534
200,000 NYC GO 0.000 05/15/2012 101,094
40,000 NYC GO 0.000 10/01/2012 19,818
9,025,000 NYC GO 5.000 08/01/2023 8,352,547
12,125,000 NYC GO 5.000 08/01/2023 11,221,566
8,900,000 NYC GO 5.000 08/15/2028 8,142,699
36,750,000 NYC GO 5.000 03/15/2029 33,646,830
10 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,285,000 NYC GO 5.125% 02/01/2011 $ 1,268,385
1,250,000 NYC GO 5.125 08/01/2013 1,219,337
855,000 NYC GO 5.125 08/01/2025 798,493
12,250,000 NYC GO 5.125 08/01/2025 11,448,360
1,900,000 NYC GO 5.200 03/15/2028 1,788,052
2,060,000 NYC GO 5.250 02/01/2012 2,047,722
16,265,000 NYC GO 5.250 08/01/2020 15,652,460
26,970,000 NYC GO 5.250 08/01/2021 25,896,055
1,015,000 NYC GO 5.250 08/15/2023 971,467
500,000 NYC GO 5.250 08/01/2024 477,515
5,910,000 NYC GO 5.300 08/01/2024 5,683,824
570,000 NYC GO 5.375 08/01/2019 557,642
1,170,000 NYC GO 5.375 08/01/2027 1,138,059
13,170,000 NYC GO 5.375 11/15/2027 12,741,316
85,000 NYC GO 5.500 10/01/2018 84,642
4,380,000 NYC GO 5.500 02/15/2026 4,334,404
15,015,000 NYC GO 5.500 11/15/2037 14,813,048
20,000 NYC GO 5.625 08/01/2016 20,302
35,000 NYC GO 5.750 02/01/2020 35,459
2,000,000 NYC GO 5.875 08/01/2024 2,065,220
4,865,000 NYC GO 5.875 08/01/2024 5,034,253
6,000,000 NYC GO 6.000 02/01/2011 6,332,100
50,000 NYC GO 6.000 10/15/2016 53,110
50,000 NYC GO 6.000 02/15/2020 52,089
110,000 NYC GO 6.000 05/15/2020(p) 117,737
160,000 NYC GO 6.000 05/15/2020 166,774
75,000 NYC GO 6.000 02/15/2024 78,406
230,000 NYC GO 6.000 02/15/2025(p) 247,388
445,000 NYC GO 6.000 02/15/2025 466,249
80,000 NYC GO 6.000 10/15/2026(p) 87,352
8,180,000 NYC GO 6.000 10/15/2026 8,581,556
4,920,000 NYC GO 6.125 02/01/2025(p) 5,374,608
13,680,000 NYC GO 6.125 02/01/2025 14,551,279
8,735,000 NYC GO 6.125 08/01/2025 9,305,133
70,000 NYC GO 6.250 04/01/2021(p) 77,084
6,605,000 NYC GO 6.250 04/15/2027(p) 7,291,458
5,595,000 NYC GO 6.250 04/15/2027 6,028,612
103,000 NYC GO 6.500 08/01/2014(p) 114,264
397,000 NYC GO 6.500 08/01/2014 431,162
420,000 NYC GO 6.500 08/01/2015(p) 465,931
1,580,000 NYC GO 6.500 08/01/2015 1,697,884
1,955,000 NYC GO 6.600 02/15/2010(p) 2,165,436
45,000 NYC GO 6.600 02/15/2010 49,131
15,580,000 NYC GO 6.625 02/15/2025(p) 17,276,195
420,000 NYC GO 6.625 08/01/2025(p) 468,695
1,580,000 NYC GO 6.625 08/01/2025 1,719,277
5,000 NYC GO 7.000 02/01/2010 5,039
610,000 NYC GO 7.000 10/01/2012(p) 669,658
15,000 NYC GO 7.000 10/01/2012 16,233
25,000 NYC GO 7.000 02/01/2018 26,732
625,000 NYC GO 7.000 02/01/2020(p) 675,406
11 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 25,000 NYC GO 7.000% 02/01/2020 $ 26,732
10,000 NYC GO 7.000 02/01/2020 10,736
190,000 NYC GO 7.000 02/01/2022 203,161
4,410,000 NYC GO 7.000 02/01/2022(p) 4,765,666
875,000 NYC GO 7.100 02/01/2009(p) 947,511
125,000 NYC GO 7.100 02/01/2009 134,389
3,525,000 NYC GO 7.100 02/01/2010(p) 3,817,117
475,000 NYC GO 7.100 02/01/2010 510,677
1,555,000 NYC GO 7.100 02/01/2011(p) 1,683,863
210,000 NYC GO 7.100 02/01/2011 225,506
3,840,000 NYC GO 7.200 02/01/2014(p) 4,166,707
160,000 NYC GO 7.200 02/01/2014 171,854
2,465,000 NYC GO 7.200 02/01/2015(p) 2,674,722
335,000 NYC GO 7.200 02/01/2015 359,820
13,815,000 NYC GO 7.250 08/15/2024(p) 14,718,639
5,000 NYC GO 7.250 08/15/2024 5,284
325,000 NYC GO 7.400 02/01/2002(p) 349,823
5,000 NYC GO 7.400 02/01/2002 5,359
2,000,000 NYC GO 7.500 02/01/2003(p) 2,184,500
2,955,000 NYC GO 7.500 02/01/2016(p) 3,231,411
45,000 NYC GO 7.500 02/01/2016 48,659
1,470,000 NYC GO 7.500 02/01/2018(p) 1,607,504
30,000 NYC GO 7.500 02/01/2018 32,440
45,000 NYC GO 7.500 08/01/2019 49,197
1,820,000 NYC GO 7.500 08/01/2019(p) 2,015,796
180,000 NYC GO 7.500 08/01/2020 196,787
7,320,000 NYC GO 7.500 08/01/2020(p) 8,107,486
6,180,000 NYC GO 7.500 08/15/2020(p) 7,070,414
975,000 NYC GO 7.500 08/01/2021(p) 1,079,890
25,000 NYC GO 7.500 08/01/2021 27,331
3,790,000 NYC GO 7.625 02/01/2013(p) 4,156,038
55,000 NYC GO 7.625 02/01/2013 59,708
265,000 NYC GO 7.625 02/01/2014(p) 290,594
5,000 NYC GO 7.625 02/01/2014 5,422
1,500,000 NYC GO 7.750 02/01/2010 1,645,530
15,000 NYC GO 7.750 08/15/2012 16,225
6,000,000 NYC GO 7.750 02/01/2013(p) 6,589,860
985,000 NYC GO 7.750 08/15/2013(p) 1,072,941
15,000 NYC GO 7.750 08/15/2013 16,225
115,000 NYC GO 7.750 08/15/2017(p) 125,267
15,000 NYC GO 7.750 08/15/2017 16,209
5,000 NYC GO 8.250 08/01/2012(p) 5,488
1,620,000 NYC GO 8.250 08/01/2014(p) 1,776,443
5,000 NYC GO 8.250 08/01/2014 5,452
1,000,000 NYC GO 8.250 11/15/2015(p) 1,108,530
3,000,000 NYC GO 8.250 11/15/2018(p) 3,325,590
1,750,000 NYC GO CAB 0.000(c) 05/15/2014 1,484,560
500,000 NYC GO CAB 0.000(c) 08/01/2014 412,040
16,387,000 NYC GO CARS 8.470(f) 08/12/2010 18,291,989
8,387,000 NYC GO CARS 8.470(f) 09/01/2011 9,361,989
70,000 NYC GO DIAMONDS 0.000(c) 08/15/2016 64,240
12 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 100,000 NYC GO DIAMONDS 0.000% (c) 08/01/2025 $ 64,469
13,640,000 NYC GO Indexed Inverse Floater 5.950 (c) (f) 08/01/2014 14,088,620
6,200,000 NYC GO RIBS 7.484(f) 08/13/2009 6,703,750
4,200,000 NYC GO RIBS 7.484(f) 07/29/2010 4,515,000
5,400,000 NYC GO RIBS 7.582(f) 08/22/2013 5,744,250
3,050,000 NYC GO RIBS 7.582(f) 08/01/2015 3,213,937
13,150,000 NYC GO RIBS 8.731(f) 08/01/2013 14,547,187
3,375,000 NYC GO RITES (a) 8.055(f) 05/15/2023 2,594,025
3,500,000 NYC GO RITES (a) 8.055(f) 05/15/2028 2,559,060
15,000,000 NYC GO RITES 8.247(f) 10/01/2011 16,167,900
312,304 NYC HDC (Albert Einstein Staff Hsg.) 6.500 12/15/2017 325,055
1,468,404 NYC HDC (Atlantic Plaza Towers) 7.034 02/15/2019 1,542,501
1,045,000 NYC HDC (Barclay Avenue) 6.450 04/01/2017 1,089,538
4,055,000 NYC HDC (Barclay Avenue) 6.600 04/01/2033 4,226,729
366,009 NYC HDC (Bay Towers) 6.500 08/15/2017 380,807
2,735,228 NYC HDC (Boulevard Towers) 6.500 08/15/2017 2,844,801
468,457 NYC HDC (Bridgeview III) 6.500 12/15/2017 487,585
494,092 NYC HDC (Cadman Plaza North) 7.000 12/15/2018 519,015
1,262,721 NYC HDC (Cadman Towers) 6.500 11/15/2018 1,316,918
185,363 NYC HDC (Candia House) 6.500 06/15/2018 192,983
3,556,567 NYC HDC (Clinton Towers) 6.500 07/15/2017 3,698,865
303,413 NYC HDC (Contello III) 7.000 12/15/2018 318,711
1,468,766 NYC HDC (Cooper Gramercy) 6.500 08/15/2017 1,527,606
1,120,658 NYC HDC (Court Plaza) 6.500 08/15/2017 1,165,967
1,676,338 NYC HDC (Crown Gardens) 7.250 01/15/2019 1,761,714
3,563,279 NYC HDC (East Midtown Plaza) 6.500 11/15/2018 3,743,154
3,434,156 NYC HDC (Esplanade Gardens) 7.000 01/15/2019 3,607,994
81,944 NYC HDC (Essex Terrace) 6.500 07/15/2018 85,434
502,963 NYC HDC (Forest Park Crescent) 6.500 12/15/2017 523,344
1,637,332 NYC HDC (Gouverneur Gardens) 7.034 02/15/2019 1,720,279
360,716 NYC HDC (Heywood Towers) 6.500 10/15/2017 375,232
4,067,517 NYC HDC (Hudsonview Terrace) 6.500 09/15/2017 4,230,788
1,149,200 NYC HDC (Janel Towers) 6.500 09/15/2017 1,195,330
401,399 NYC HDC (Kingsbridge Arms) 6.500 08/15/2017 417,480
227,917 NYC HDC (Kingsbridge Arms) 6.500 11/15/2018 237,700
1,229,193 NYC HDC (Leader House) 6.500 03/15/2018 1,279,258
1,713,091 NYC HDC (Lincoln-Amsterdam) 7.250 11/15/2018 1,799,586
205,075 NYC HDC (Middagh St. Studio Apartments) 6.500 01/15/2018 213,405
2,674,658 NYC HDC (Montefiore Hospital Hsg. Sec. II) 6.500 10/15/2017 2,782,287
2,285,000 NYC HDC (Multifamily Hsg.) 5.250 11/01/2031 2,219,078
4,390,000 NYC HDC (Multifamily Hsg.) 5.850 05/01/2026 4,610,510
38,880,000 NYC HDC (Multifamily Hsg.) 6.600 04/01/2030 41,420,030
30,000 NYC HDC (Multifamily Hsg.) 7.300 06/01/2010 32,072
1,145,000 NYC HDC (Multifamily Hsg.) 7.350 06/01/2019 1,225,116
100,000 NYC HDC (Multifamily Hsg.), Series A 5.850 05/01/2025 105,023
1,735,000 NYC HDC (Multifamily Hsg.), Series B 5.850 05/01/2026 1,822,149
864,374 NYC HDC (New Amsterdam House) 6.500 08/15/2018 901,223
883,582 NYC HDC (New Amsterdam House) 6.500 08/15/2018 884,024
1,073,615 NYC HDC (Riverbend) 6.500 11/15/2018 1,120,092
6,592,889 NYC HDC (Riverside Park Community) 7.250 11/15/2018 6,928,666
469,603 NYC HDC (RNA House) 7.000 12/15/2018 493,374
13 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 674,969 NYC HDC (Robert Fulton Terrace) 6.500% 12/15/2017 $ 702,528
245,421 NYC HDC (Rosalie Manning Apartments) 7.034 12/15/2016 257,806
652,601 NYC HDC (Scott Tower) 7.000 12/15/2018 685,212
895,186 NYC HDC (Seaview Towers) 6.500 01/15/2018 931,549
1,665,849 NYC HDC (Sky View Towers) 6.500 11/15/2018 1,737,347
3,155,000 NYC HDC (South Bronx Cooperatives) 8.100 09/01/2023 3,307,355
369,345 NYC HDC (St. Martin Tower) 6.500 11/15/2018 385,198
1,700,013 NYC HDC (Stevenson Commons) 6.500 05/15/2018 1,769,646
487,243 NYC HDC (Strycker's Bay Apartments) 7.034 11/15/2018 509,369
1,703,875 NYC HDC (Tivoli Towers) 6.500 01/15/2018 1,773,615
231,451 NYC HDC (Town House West) 6.500 01/15/2018 240,853
355,636 NYC HDC (Tri-Faith House) 7.000 01/15/2019 373,568
1,510,470 NYC HDC (University River View) 6.500 08/15/2017 1,571,539
453,203 NYC HDC (Washington Square Southeast) 7.000 01/15/2019 476,054
408,635 NYC HDC (West Side Manor) 6.500 11/15/2018 426,175
4,514,659 NYC HDC (West Village) 6.500 11/15/2013 4,722,560
262,416 NYC HDC (Westview Apartments) 6.500 10/15/2017 273,078
604,681 NYC HDC (Woodstock Terrace) 7.034 02/15/2019 632,999
5,235,000 NYC HDC, Series B 5.875 11/01/2018 5,450,787
23,500,000 NYC Health & Hospital Corp. 5.000 02/15/2020 22,295,860
24,100,000 NYC Health & Hospital Corp. 5.250 02/15/2017 22,979,591
800,000 NYC Health & Hospital Corp. 5.750 02/15/2022 814,344
26,500,000 NYC Health & Hospital Corp. LEVRRS 7.502(f) 02/15/2011 27,659,375
300,000 NYC IDA (A Very Special Place) 5.750 01/01/2029 284,145
3,600,000 NYC IDA (Acme Architectural Products) 6.375 11/01/2019 3,481,380
1,035,000 NYC IDA (ALA Realty) 7.500 12/01/2010 1,102,327
1,450,000 NYC IDA (ALA Realty) 8.375 12/01/2015 1,614,923
680,000 NYC IDA (A-Lite Vertical Products) 6.750 11/01/2009 661,484
1,330,000 NYC IDA (A-Lite Vertical Products) 7.500 11/01/2019 1,320,730
440,000 NYC IDA (Allied Metal) 6.375 12/01/2014 432,230
940,000 NYC IDA (Allied Metal) 7.125 12/01/2027 919,442
3,500,000 NYC IDA (Amboy Properties) 6.750 06/01/2020 3,502,310
595,000 NYC IDA (American Airlines) 5.400 07/01/2019 584,510
20,760,000 NYC IDA (American Airlines) 5.400 07/01/2020 20,384,244
16,685,000 NYC IDA (American Airlines) 6.900 08/01/2024 18,073,526
1,255,000 NYC IDA (Amplaco Group) 7.250 11/01/2008 1,282,133
2,645,000 NYC IDA (Amplaco Group) 8.125 11/01/2018 2,732,840
530,000 NYC IDA (Amster Novelty) (a) (d) 8.000 12/01/2010 343,837
790,000 NYC IDA (Amster Novelty) (a) (d) 8.375 12/01/2015 512,512
1,635,000 NYC IDA (Atlantic Paste & Glue Co.) 6.000 11/01/2007 1,611,816
4,620,000 NYC IDA (Atlantic Paste & Glue Co.) 6.625 11/01/2019 4,512,677
1,160,000 NYC IDA (Atlantic Veal & Lamb) 8.375 12/01/2016 1,251,269
525,000 NYC IDA (Bark Frameworks) 6.000 11/01/2007 517,256
1,500,000 NYC IDA (Bark Frameworks) 6.750 11/01/2019 1,465,335
11,480,000 NYC IDA (Berkeley Carroll School) 6.100 11/01/2028 10,962,252
500,000 NYC IDA (Blood Center) 7.200 05/01/2012(p) 554,815
3,000,000 NYC IDA (Blood Center) 7.250 05/01/2022(p) 3,334,770
1,995,000 NYC IDA (British Airways) 5.250 12/01/2032 1,869,933
165,000 NYC IDA (Brooklyn Heights Montessori School) 8.400 09/01/2002 165,384
3,075,000 NYC IDA (Brooklyn Heights Montessori School) 8.500 01/01/2027 3,388,773
660,000 NYC IDA (Brooklyn Heights Montessori School) 8.900 09/01/2011 713,618
14 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,690,000 NYC IDA (Brooklyn Heights Montessori School) 9.200% 09/01/2021 $ 1,863,952
50,785,000 NYC IDA (Brooklyn Navy Yard Cogeneration Partners) 5.650 10/01/2027 50,135,968
99,910,000 NYC IDA (Brooklyn Navy Yard Cogeneration Partners) 5.750 10/01/2036 100,186,751
6,390,000 NYC IDA (College of Aeronautics) 5.500 05/01/2028 6,249,420
2,900,000 NYC IDA (College of New Rochelle) 5.800 09/01/2026 2,929,696
3,990,000 NYC IDA (Community Hospital of Brooklyn) 6.875 11/01/2010 3,931,068
3,975,000 NYC IDA (Comprehensive Care Management) 6.375 11/01/2028 3,811,985
1,575,000 NYC IDA (Comprehensive Care Management) 6.375 11/01/2028 1,515,323
1,770,000 NYC IDA (Comprehensive Care Management) 7.875 12/01/2016 1,933,601
1,900,000 NYC IDA (Comprehensive Care Management) 8.000 12/01/2011 2,061,519
5,750,000 NYC IDA (Crowne Plaza-LaGuardia) 6.000 11/01/2028 5,652,825
1,280,000 NYC IDA (Dioni) 6.000 11/01/2007 1,264,218
3,600,000 NYC IDA (Dioni) 6.625 11/01/2019 3,524,904
1,600,000 NYC IDA (Display Creations) 7.000 06/01/2008 1,705,072
310,000 NYC IDA (Eden II School) 7.750 06/01/2004 327,534
2,505,000 NYC IDA (Eden II School) 8.750 06/01/2019 2,732,304
10,255,000 NYC IDA (Elmhurst Parking Garage) 7.500 07/30/2003 11,014,690
3,705,000 NYC IDA (Friends Seminary School) 7.000 12/01/2017 3,904,699
1,000,000 NYC IDA (Fund for NYC Project) 7.625 07/01/2010 1,037,950
3,280,000 NYC IDA (Gabrielli Truck Sales) 8.125 12/01/2017 3,451,708
2,325,000 NYC IDA (Gateway School of NY) 6.200 11/01/2012 2,325,000
2,265,000 NYC IDA (Gateway School of NY) 6.500 11/01/2019 2,265,000
2,175,000 NYC IDA (Good Shepherd Services) 5.875 06/01/2014 2,175,957
1,250,000 NYC IDA (Graphic Artists) 8.250 12/30/2023 1,337,812
810,000 NYC IDA (Gutmann Plastics) 7.750 12/01/2007 828,014
2,235,000 NYC IDA (Hebrew Academy) 10.000 03/01/2021 2,470,189
690,000 NYC IDA (Herbert G. Birch Childhood Project) 7.375 02/01/2009 736,375
2,195,000 NYC IDA (Herbert G. Birch Childhood Project) 8.375 02/01/2022 2,430,962
160,000 NYC IDA (HiTech Res Rec) 8.750 08/01/2000 162,875
695,000 NYC IDA (HiTech Res Rec) 9.250 08/01/2008 732,815
5,000,000 NYC IDA (Holiday Inn/JFK Airport) 6.000 11/01/2028 4,915,500
320,000 NYC IDA (House of Spices) 9.000 10/15/2001 336,272
2,140,000 NYC IDA (House of Spices) 9.250 10/15/2011 2,296,948
3,280,000 NYC IDA (Japan Airlines) 6.000 11/01/2015 3,424,714
6,040,000 NYC IDA (JBFS) 6.750 12/15/2012 6,383,616
1,675,000 NYC IDA (Koenig Iron Works) 8.375 12/01/2025 1,786,387
2,600,000 NYC IDA (L&M Optical Disc) 7.125 11/01/2010 2,557,516
1,000,000 NYC IDA (Lighthouse) 6.500 07/01/2022(p) 1,079,400
3,025,000 NYC IDA (Little Red Schoolhouse) 6.750 11/01/2018 2,925,901
845,000 NYC IDA (Loehmann's) 9.500 12/31/2004 842,271
3,500,000 NYC IDA (Marymount Manhattan College) 7.000 07/01/2023 3,697,365
19,335,000 NYC IDA (MediSys Health Network) 6.250 03/15/2024 19,336,353
2,275,000 NYC IDA (Morrisons Pastry) 6.500 11/01/2019 2,245,220
5,320,000 NYC IDA (Nekboh) 9.625 05/01/2011 5,561,156
11,600,000 NYC IDA (Northwest Airlines) 6.000 06/01/2027 11,711,476
482,082 NYC IDA (Novelty Cord & Tassel) (a) 6.000(v) 12/01/2006 487,482
895,000 NYC IDA (NY Hostel Co.) 6.750 01/01/2004 910,573
4,400,000 NYC IDA (NY Hostel Co.) 7.600 01/01/2017 4,535,256
695,000 NYC IDA (NY Vanities & Manufacturing) 7.000 11/01/2009 692,137
1,405,000 NYC IDA (NY Vanities & Manufacturing) 7.500 11/01/2019 1,395,207
3,435,000 NYC IDA (Ohel Children's Home & Family Services) 8.250 03/15/2023 3,699,255
15 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,045,000 NYC IDA (Paradise Products) 7.125% 11/01/2007 $ 1,055,931
4,475,000 NYC IDA (Paradise Products) 8.250 11/01/2022 4,628,850
23,475 NYC IDA (Penguin Air Conditioning) 12.222 12/01/1999 24,273
1,660,000 NYC IDA (Petrocelli Electric) 7.250 11/01/2007 1,690,411
460,000 NYC IDA (Petrocelli Electric) 7.250 11/01/2008 469,724
3,780,000 NYC IDA (Petrocelli Electric) 8.000 11/01/2017 3,940,990
940,000 NYC IDA (Petrocelli Electric) 8.000 11/01/2018 970,653
915,000 NYC IDA (Pop Display) 6.750 12/15/2004 947,885
2,645,000 NYC IDA (Pop Display) 7.900 12/15/2014 2,860,091
1,910,000 NYC IDA (Precision Gear) 6.375 11/01/2024 1,880,376
2,240,000 NYC IDA (Precision Gear) 6.375 11/02/2024 2,153,581
815,000 NYC IDA (PRFF) 7.000 10/01/2016 864,144
1,575,000 NYC IDA (Priority Mailers) 9.000 03/01/2010 1,670,114
710,000 NYC IDA (Promotional Slideguide) 7.500 12/01/2010 753,608
1,065,000 NYC IDA (Promotional Slideguide) 7.875 12/01/2015 1,152,543
665,000 NYC IDA (Psycho Therapy) 9.625 04/01/2010 691,248
3,705,000 NYC IDA (Riverdale Terrace Hsg. Devel. Fund) 6.250 11/01/2014 3,705,000
8,595,000 NYC IDA (Riverdale Terrace Hsg. Devel. Fund) 6.750 11/01/2028 8,595,000
115,000 NYC IDA (Sequins International) 8.500 04/30/2000 117,629
4,555,000 NYC IDA (Sequins International) 8.950 01/30/2016 4,904,596
4,255,000 NYC IDA (Special Needs Facilities Pooled Program) 6.650 07/01/2023 4,217,726
5,115,000 NYC IDA (St. Bernard's School) 7.000 12/01/2021 5,446,299
4,140,000 NYC IDA (St. Christopher Ottilie) 7.500 07/01/2021 4,394,279
585,000 NYC IDA (Streamline Plastics) 7.750 12/01/2015 619,626
1,275,000 NYC IDA (Streamline Plastics) 8.125 12/01/2025 1,373,800
150,000 NYC IDA (Summit School) 7.250 12/01/2004 156,216
1,485,000 NYC IDA (Summit School) 8.250 12/01/2024 1,602,285
15,050,000 NYC IDA (Terminal One Group Assoc.) 6.000 01/01/2019 15,577,201
6,815,000 NYC IDA (Terminal One Group Assoc.) 6.125 01/01/2024 7,084,806
12,250,000 NYC IDA (Touro College) 6.350 06/01/2029 12,200,387
170,000 NYC IDA (Ultimate Display) 8.750 10/15/2000 175,941
1,910,000 NYC IDA (Ultimate Display) 9.000 10/15/2011 2,051,531
10,465,000 NYC IDA (United Air Lines) 5.650 10/01/2032 10,456,209
1,000,000 NYC IDA (United Nations School) 6.350 12/01/2015 1,030,210
1,720,000 NYC IDA (Urban Health Plan) 6.250 09/15/2009 1,723,853
9,830,000 NYC IDA (Urban Health Plan) 7.050 09/15/2026 9,806,113
255,000 NYC IDA (Utleys) 6.625 11/01/2006 249,500
1,335,000 NYC IDA (Utleys) 7.375 11/01/2023 1,324,774
1,285,000 NYC IDA (Van Blarcom Closures) 7.125 11/01/2007 1,289,536
2,965,000 NYC IDA (Van Blarcom Closures) 8.000 11/01/2017 2,980,744
1,125,000 NYC IDA (Visual Display) 7.250 11/01/2008 1,129,522
2,375,000 NYC IDA (Visual Display) 8.325 11/01/2018 2,421,550
8,000,000 NYC IDA (Visy Paper) 7.800 01/01/2016 8,702,000
24,750,000 NYC IDA (Visy Paper) 7.950 01/01/2028 26,978,737
530,000 NYC Municipal Water Finance Authority 0.000 06/15/2018 188,775
530,000 NYC Municipal Water Finance Authority 0.000 06/15/2019 178,080
6,030,000 NYC Municipal Water Finance Authority 0.000 06/15/2020 1,914,404
5,000,000 NYC Municipal Water Finance Authority 5.000 06/15/2021 4,741,350
3,500,000 NYC Municipal Water Finance Authority 5.125 06/15/2021 3,361,785
1,200,000 NYC Municipal Water Finance Authority 5.500 06/15/2019 1,203,888
75,000 NYC Municipal Water Finance Authority 5.500 06/15/2023 75,243
16 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 65,000 NYC Municipal Water Finance Authority 5.500% 06/15/2027 $ 65,294
40,000 NYC Municipal Water Finance Authority 5.750 06/15/2020 40,958
12,500,000 NYC Municipal Water Finance Authority IRS 7.270(f) 06/15/2013 12,640,625
30,000,000 NYC Municipal Water Finance Authority IVRC (a) 7.845(f) 08/15/2017 32,587,500
10,000,000 NYC Municipal Water Finance Authority LEVRRS 7.534(f) 06/15/2019 10,337,500
4,775,000 NYC Municipal Water Finance Authority RITES (a) 8.144(f) 06/15/2021 3,787,148
2,805,000 NYC Municipal Water Finance Authority RITES (a) 8.144(f) 06/15/2027 2,061,563
18,240,000 NYC Municipal Water Finance Authority RITES (a) 8.634(f) 06/15/2030 14,346,854
5,000,000 NYC Municipal Water Finance Authority RITES (a) 8.644(f) 06/15/2030 3,932,800
4,030,000 NYC Municipal Water Finance Authority RITES (a) 8.644(f) 06/15/2030 3,169,837
5,000,000 NYC Municipal Water Finance Authority RITES (a) 8.644(f) 06/15/2030 3,932,800
5,385,000 NYC TFA 5.000 05/01/2029 4,980,910
2,150,000 NYC TFA RITES (a) 5.000(f) 08/15/2027 1,543,442
2,500,000 NYC TFA RITES (a) 7.144(f) 11/15/2023 1,468,300
21,540,782 NYS Certificate of Lease (a) 5.875 01/02/2023 21,177,174
460,000 NYS COP (BOCES) (a) 7.875 10/01/2000 470,364
170,000 NYS COP (Hanson Redevelopment) 8.250 11/01/2001 176,220
10,000 NYS DA (Bethel Springvale Home) 6.000 02/01/2035 10,376
1,000,000 NYS DA (Brookdale Hospital) 5.200 02/15/2013 975,640
1,355,000 NYS DA (Brookdale Hospital) 5.300 02/15/2017 1,314,906
16,115,000 NYS DA (Brooklyn Hospital) 5.200 02/01/2039 15,325,365
14,360,000 NYS DA (Buena Vida Nursing Home) 5.250 07/01/2028 13,400,321
8,435,000 NYS DA (Center for Nursing) 5.550 08/01/2037 8,414,587
1,100,000 NYS DA (Chapel Oaks) 5.375 07/01/2017 1,082,565
2,855,000 NYS DA (Chapel Oaks) 5.450 07/01/2026 2,766,780
11,485,000 NYS DA (City University) 5.000 07/01/2028 10,525,428
21,180,000 NYS DA (City University) 5.250 07/01/2025 20,046,446
13,400,000 NYS DA (City University) 5.375 07/01/2024 13,005,638
20,000 NYS DA (Cornell University) 7.375 07/01/2030 21,050
215,000 NYS DA (Court Facility) 5.375 05/15/2016 211,012
495,000 NYS DA (Court Facility) 5.500 05/15/2023 490,099
4,750,000 NYS DA (Dept. of Health) 5.000 07/01/2024 4,377,980
5,000,000 NYS DA (Dept. of Health) 5.500 08/15/2017 4,996,800
410,000 NYS DA (Dept. of Health) 5.500 07/01/2020 407,224
525,000 NYS DA (Dept. of Health) 5.500 07/01/2021 520,044
150,000 NYS DA (Dept. of Health) 5.500 07/01/2025 148,464
250,000 NYS DA (Dept. of Health) 6.625 07/01/2024(p) 280,307
3,750,000 NYS DA (Dept. of Health) 7.250 07/01/2011(p) 4,128,450
265,000 NYS DA (Episcopal Health Services) 7.550 08/01/2029 274,150
6,480,000 NYS DA (Frances Schervier Home & Hospital) 5.500 07/01/2027 6,357,463
2,500,000 NYS DA (German Masonic Home) 6.000 08/01/2036 2,598,275
1,000,000 NYS DA (Grace Manor Health Care Facility) 6.150 07/01/2018 1,070,200
10,285,000 NYS DA (Hebrew Hospital) 5.900 08/01/2036 10,564,443
140,510,000 NYS DA (Insured Hospital) 0.000 08/15/2036 17,159,081
10,735,000 NYS DA (Interfaith Medical Center) 5.300 02/15/2019 10,224,873
38,650,000 NYS DA (Interfaith Medical Center) 5.400 02/15/2028 36,629,378
35,000 NYS DA (KMH Homes) 6.950 08/01/2031 36,962
1,800,000 NYS DA (L.I. University) 5.125 09/01/2023 1,697,580
1,400,000 NYS DA (L.I. University) 5.250 09/01/2028 1,338,568
4,380,000 NYS DA (Lakeside Home) 6.000 02/01/2037 4,556,120
25,000 NYS DA (Lakeside Memorial Hospital) 6.000 02/01/2021 25,804
17 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 9,650,000 NYS DA (LSSUNY) RITES (a) 6.635% (f) 02/01/2038 $ 8,870,087
7,400,000 NYS DA (Menorah Campus) 6.100 02/01/2037 7,786,058
20,000 NYS DA (Menorah Campus) 7.300 08/01/2016(p) 21,626
3,115,000 NYS DA (Menorah Home & Hospital) RITES (a) 5.100(f) 08/01/2038 2,455,741
5,825,000 NYS DA (Menorah Home & Hospital) RITES (a) 5.150(f) 08/01/2038 4,501,327
120,000 NYS DA (Mental Health) 5.000 02/15/2023 113,399
7,500,000 NYS DA (Mental Health) 5.250 02/15/2019 7,228,200
4,625,000 NYS DA (Mental Health) RITES (a) 8.144(f) 02/15/2023 3,607,315
2,810,000 NYS DA (Mental Health) RITES (a) 8.144(f) 02/15/2028 2,057,257
7,230,000 NYS DA (Methodist Hospital) 6.050 02/01/2034 7,555,639
3,465,000 NYS DA (Millard Hospital) 5.375 02/01/2032 3,407,238
80,000 NYS DA (Montefiore Hospital & Medical Center) 8.625 07/01/2010 80,250
2,850,000 NYS DA (Municipal Health Facilities) RITES (a) 8.144(f) 01/15/2023 2,210,004
2,400,000 NYS DA (Niagara Nursing Home) 5.600 08/01/2037 2,454,624
9,800,000 NYS DA (North General Hospital) 5.300 02/15/2019 9,334,304
3,500,000 NYS DA (North Shore Hospital) 5.250 11/01/2019 3,416,420
2,200,000 NYS DA (NY & Presbyterian Hospital) 6.500 08/01/2034 2,351,470
4,860,000 NYS DA (NY & Presbyterian Hospital) RITES (a) 7.144(f) 08/01/2027 2,849,710
3,780,000 NYS DA (NY & Presbyterian Hospital) RITES (a) 8.144(f) 08/01/2032 2,665,505
2,500,000 NYS DA (NY & Presbyterian Hospital) RITES (a) 9.649(f) 08/01/2027 1,465,900
10,700,000 NYS DA (NY Downtown Hospital) 5.300 02/15/2020 10,315,870
25,000 NYS DA (NY Medical College) 6.875 07/01/2021 27,276
855,000 NYS DA (Park Ridge Hsg.) 7.850 02/01/2029 874,212
12,750,000 NYS DA (Rochester General Hospital) RITES (a) 7.336(f) 08/01/2033 12,950,430
4,725,000 NYS DA (Rosalind & Joseph Gurwin Geriatric Home) 5.600 02/01/2027 4,828,430
3,230,000 NYS DA (Rosalind & Joseph Gurwin Geriatric Home) 5.700 02/01/2037 3,322,281
600,000 NYS DA (Sarah Neumann Home) 5.450 08/01/2027 598,686
1,900,000 NYS DA (Sarah Neumann Home) 5.500 08/01/2037 1,898,385
6,000,000 NYS DA (Sisters of Charity Healthcare System) 5.000 08/01/2038 5,470,680
3,045,000 NYS DA (Special Surgery) RITES (a) 8.144(f) 02/01/2028 2,230,036
2,650,000 NYS DA (Special Surgery) RITES (a) 8.144(f) 02/01/2038 1,796,806
4,500,000 NYS DA (St. Agnes Hospital) 5.300 02/15/2019 4,286,160
9,000,000 NYS DA (St. Agnes Hospital) 5.400 02/15/2025 8,562,330
3,000,000 NYS DA (St. Barnabas Hospital) 5.450 08/01/2035 2,992,770
1,500,000 NYS DA (St. Clare's Hospital) 5.300 02/15/2019 1,428,720
2,970,000 NYS DA (St. Clare's Hospital) 5.400 02/15/2025 2,825,569
1,500,000 NYS DA (St. Thomas Aquinas College) 5.250 07/01/2028 1,426,170
3,885,000 NYS DA (St. Vincent's Hospital) 5.300 07/01/2018 3,747,549
5,000 NYS DA (St. Vincent's Hospital) 7.400 08/01/2030 5,356
50,000 NYS DA (State University) 0.000 05/15/2007 33,916
30,000 NYS DA (State University) 6.000 05/15/2017 30,465
50,000 NYS DA (State University) 6.000 05/15/2022(p) 53,896
225,000 NYS DA (State University) 7.000 05/15/2016 235,035
32,865,000 NYS DA (Suffolk County Judicial Facilities) 9.500 04/15/2014 38,073,774
1,120,000 NYS DA (Terence Cardinal Cooke Healthcare Center) 5.000 07/01/2018 1,046,360
3,990,000 NYS DA (Teresian House) 5.250 07/01/2017 3,826,330
5,000,000 NYS DA (Upstate Community Colleges) 5.000 07/01/2028 4,582,250
2,580,000 NYS DA (Upstate Community Colleges) 5.400 02/01/2038 2,504,612
50,000 NYS DA (Upstate Community Colleges) 5.700 07/01/2021 50,473
1,700,000 NYS DA (Vassar Brothers) 5.375 07/01/2025 1,678,886
1,750,000 NYS DA (Victory Memorial Hospital) 5.375 08/01/2025 1,725,762
18 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 2,250,000 NYS DA (Victory Memorial Hospital) 5.500% 08/01/2038 $ 2,244,487
4,200,000 NYS DA (W.K. Nursing Home) 6.125 02/01/2036 4,417,686
32,915,000 NYS DA (Wyckoff Heights Medical Center) 5.300 08/15/2021 31,091,180
1,840,000 NYS EFC (Consolidated Water) 7.150 11/01/2014 1,974,706
58,860,000 NYS EFC (Huntington Res Rec) 7.500 10/01/2012 60,505,137
7,500,000 NYS EFC (NYS Water Services) 8.375 01/15/2020 7,837,200
6,120,000 NYS EFC (Occidental Petroleum) 5.700 09/01/2028 6,144,664
9,000,000 NYS EFC (Occidental Petroleum) 6.100 11/01/2030 9,197,730
7,000,000 NYS ERDA (Brooklyn Union Gas) RIBS 7.944(f) 07/08/2026 7,035,000
7,000,000 NYS ERDA (Brooklyn Union Gas) RIBS 8.974(f) 04/01/2020 8,373,750
10,300,000 NYS ERDA (Brooklyn Union Gas) RIBS 10.172(f) 07/01/2026 12,939,375
11,040,000 NYS ERDA (Con Ed) 6.375 12/01/2027 11,409,178
290,000 NYS ERDA (Con Ed) 6.375 12/01/2027 303,395
15,630,000 NYS ERDA (Con Ed) 7.250 11/01/2024 15,826,782
100,000 NYS ERDA (Con Ed) 7.500 01/01/2026 102,698
9,350,000 NYS ERDA (Con Ed) RITES (a) 6.535(f) 08/15/2020 8,986,472
10,000,000 NYS ERDA (LILCO) 5.150 03/01/2016 9,594,100
7,500,000 NYS ERDA (LILCO) 5.300 11/01/2023 7,111,800
300,000 NYS ERDA (LILCO) 5.300 10/01/2024 284,205
2,500,000 NYS ERDA (LILCO) 5.300 08/01/2025 2,366,525
370,000 NYS ERDA (LILCO) 6.900 08/01/2022 405,624
475,000 NYS ERDA (LILCO) 6.900 08/01/2022 511,793
14,810,000 NYS ERDA (LILCO) 7.150 09/01/2019 16,185,257
4,775,000 NYS ERDA (LILCO) 7.150 09/01/2019 5,218,407
11,740,000 NYS ERDA (LILCO) 7.150 09/01/2019 12,486,664
2,575,000 NYS ERDA (LILCO) 7.150 06/01/2020 2,814,115
12,625,000 NYS ERDA (LILCO) 7.150 06/01/2020 13,427,950
8,695,000 NYS ERDA (LILCO) 7.150 12/01/2020 9,515,112
3,530,000 NYS ERDA (LILCO) 7.150 12/01/2020 3,754,508
10,975,000 NYS ERDA (LILCO) 7.150 02/01/2022 11,994,139
11,225,000 NYS ERDA (LILCO) 7.150 02/01/2022 12,267,354
4,135,000 NYS ERDA (LILCO) 7.150 02/01/2022 4,397,986
16,150,000 NYS ERDA (NIMO) 5.150 11/01/2025 15,442,953
3,485,000 NYS ERDA (NIMO) RITES (a) 8.744(f) 11/01/2025 2,874,846
400,000 NYS ERDA (NYSEG) 5.700 12/01/2028 402,860
30,000 NYS ERDA (NYSEG) 5.950 12/01/2027 30,615
12,500,000 NYS ERDA (RG&E) 5.950 09/01/2033 12,937,250
3,555,000 NYS HFA (Children's Rescue) 7.625 05/01/2018 3,759,057
2,200,000 NYS HFA (Dominican Village) 6.600 08/15/2027 2,356,882
4,205,000 NYS HFA (Fulton Manor) 6.100 11/15/2025 4,476,307
20,000 NYS HFA (General Hsg.) 6.600 11/01/2008 20,443
1,080,000 NYS HFA (HELP-Bronx Hsg.) 7.850 11/01/1999 1,089,029
13,080,000 NYS HFA (HELP-Bronx Hsg.) 8.050 11/01/2005 13,435,776
1,210,000 NYS HFA (HELP-Suffolk Hsg.) 8.100 11/01/2005 1,219,414
2,000 NYS HFA (Hospital & Nursing Home) 6.875 11/01/2010(p) 2,319
205,000 NYS HFA (Hospital & Nursing Home) 7.000 11/01/2017 236,304
5,000 NYS HFA (Meadow Manor) 7.750 11/01/2019 5,020
15,730,000 NYS HFA (Multifamily Hsg.) 0.000 11/01/2014 6,703,811
14,590,000 NYS HFA (Multifamily Hsg.) 0.000 11/01/2015 5,852,779
50,000 NYS HFA (Multifamily Hsg.) 0.000 11/01/2016 18,772
12,695,000 NYS HFA (Multifamily Hsg.) 0.000 11/01/2017 4,252,190
19 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 745,000 NYS HFA (Multifamily Hsg.) 5.250% 11/15/2028 $ 721,130
1,340,000 NYS HFA (Multifamily Hsg.) 5.300 08/15/2024 1,310,788
1,700,000 NYS HFA (Multifamily Hsg.) 5.300 11/15/2039 1,639,650
2,860,000 NYS HFA (Multifamily Hsg.) 5.350 08/15/2031 2,791,246
1,135,000 NYS HFA (Multifamily Hsg.) 5.400 08/15/2031 1,107,874
2,075,000 NYS HFA (Multifamily Hsg.) 5.500 08/15/2030 2,071,784
1,215,000 NYS HFA (Multifamily Hsg.) 5.550 08/15/2019 1,213,457
1,000,000 NYS HFA (Multifamily Hsg.) 5.650 08/15/2031 998,450
95,000 NYS HFA (Multifamily Hsg.) 5.950 08/15/2024 97,684
2,000,000 NYS HFA (Multifamily Hsg.) 6.050 08/15/2032 2,097,960
1,285,000 NYS HFA (Multifamily Hsg.) 6.100 11/15/2036 1,359,119
4,700,000 NYS HFA (Multifamily Hsg.) 6.125 08/15/2038 4,920,477
50,000 NYS HFA (Multifamily Hsg.) 6.200 08/15/2012 52,629
100,000 NYS HFA (Multifamily Hsg.) 6.250 08/15/2027 106,349
5,000,000 NYS HFA (Multifamily Hsg.) 6.300 08/15/2026 5,305,950
4,100,000 NYS HFA (Multifamily Hsg.) 6.350 08/15/2023 4,376,299
1,255,000 NYS HFA (Multifamily Hsg.) 6.400 11/15/2027 1,347,230
2,905,000 NYS HFA (Multifamily Hsg.) 6.500 08/15/2024 3,058,471
11,980,000 NYS HFA (Multifamily Hsg.) 6.700 08/15/2025 12,519,340
5,675,000 NYS HFA (Multifamily Hsg.) 6.750 11/15/2036 6,097,220
75,000 NYS HFA (Multifamily Hsg.) 6.950 08/15/2012 80,440
2,830,000 NYS HFA (Multifamily Hsg.) 6.950 08/15/2024 2,965,585
5,375,000 NYS HFA (Multifamily Hsg.) 7.050 08/15/2024 5,738,296
1,556,000 NYS HFA (Multifamily Hsg.) 7.450 11/01/2028 1,597,296
2,460,000 NYS HFA (Multifamily Hsg.) 7.550 11/01/2029 2,526,346
50,000 NYS HFA (Multifamily Hsg.) 7.850 02/15/2030 53,231
500,000 NYS HFA (Multifamily Hsg.) 8.000 11/01/2008 528,765
3,035,000 NYS HFA (NH&HC) RITES (a) 8.524(f) 11/01/2016 2,664,730
15,000 NYS HFA (Nonprofit Hsg.) 6.400 11/01/2010 15,325
25,000 NYS HFA (Nonprofit Hsg.) 6.400 11/01/2013 25,540
25,000 NYS HFA (Nonprofit Hsg.) 6.600 11/01/2010 25,556
20,000 NYS HFA (Nonprofit Hsg.) 6.600 11/01/2013 20,443
5,000,000 NYS HFA (Phillips Village) 7.750 08/15/2017 5,488,750
8,885,000 NYS HFA (Service Contract) 5.375 03/15/2023 8,640,663
4,185,000 NYS HFA (Service Contract) 5.500 09/15/2022 4,154,784
5,600,000 NYS HFA (Service Contract) 5.500 09/15/2022 5,552,400
5,525,000 NYS HFA (Service Contract) 5.500 03/15/2025 5,475,717
25,000 NYS HFA (Service Contract) 6.125 03/15/2020 26,084
9,010,000 NYS HFA (Service Contract) 6.500 03/15/2025(p) 10,042,366
255,000 NYS HFA (Service Contract) 6.500 03/15/2025 278,427
5,000 NYS HFA (Service Contract) 7.700 03/15/2006 5,360
1,055,000 NYS HFA (Shorehill Hsg.) 7.500 05/01/2008 1,067,734
1,395,000 NYS HFA, Series A 6.125 11/01/2020 1,486,386
80,000 NYS LGAC 5.500 04/01/2023 80,059
810,000 NYS LGSC (SCSB) (a) 7.375 12/15/2016 860,099
22,230,000 NYS Medcare (Brookdale Hospital Medical Center) 5.900 08/15/2033 22,959,366
4,600,000 NYS Medcare (Brookdale Hospital Medical Center) 6.850 02/15/2017(p) 5,182,452
1,015,000 NYS Medcare (Central Suffolk Hospital) 6.125 11/01/2016 1,003,693
500,000 NYS Medcare (Downtown Hospital) 6.700 02/15/2012(p) 559,625
2,255,000 NYS Medcare (Downtown Hospital) 6.800 02/15/2020(p) 2,534,981
45,000 NYS Medcare (Hospital & Nursing Home) 5.750 08/15/2019 45,784
20 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 4,690,000 NYS Medcare (Hospital & Nursing Home) 5.850% 02/15/2033 $ 4,814,473
10,000 NYS Medcare (Hospital & Nursing Home) 6.200 08/15/2022 10,477
95,000 NYS Medcare (Hospital & Nursing Home) 6.200 02/15/2023 99,914
60,000 NYS Medcare (Hospital & Nursing Home) 6.375 08/15/2029 63,464
1,000,000 NYS Medcare (Hospital & Nursing Home) 6.375 08/15/2033 1,054,730
160,000 NYS Medcare (Hospital & Nursing Home) 6.500 02/15/2019(p) 173,006
30,000 NYS Medcare (Hospital & Nursing Home) 6.500 02/15/2019 31,956
2,145,000 NYS Medcare (Hospital & Nursing Home) 6.500 02/15/2034 2,297,038
250,000 NYS Medcare (Hospital & Nursing Home) 6.600 02/15/2031 269,305
590,000 NYS Medcare (Hospital & Nursing Home) 6.650 08/15/2032(p) 642,339
12,230,000 NYS Medcare (Hospital & Nursing Home) 6.650 08/15/2032 13,080,107
385,000 NYS Medcare (Hospital & Nursing Home) 6.875 02/15/2032(p) 416,824
4,505,000 NYS Medcare (Hospital & Nursing Home) 7.400 11/01/2016 4,608,795
12,410,000 NYS Medcare (Hospital & Nursing Home) 8.000 02/15/2027 12,464,356
1,740,000 NYS Medcare (Hospital & Nursing Home) (a) 9.000 02/15/2026 1,795,854
3,560,000 NYS Medcare (Hospital & Nursing Home) 9.375 11/01/2016 3,718,776
2,865,000 NYS Medcare (Hospital & Nursing Home) (a) 10.000 11/01/2006 3,056,096
2,000,000 NYS Medcare (Insured Mortgage Nursing) 6.375 08/15/2024 2,207,960
4,000,000 NYS Medcare (Insured Mortgage Nursing) 6.450 08/15/2034(p) 4,429,520
70,000 NYS Medcare (Insured Mortgage Nursing) 6.500 11/01/2015 75,098
7,725,000 NYS Medcare (Kingston Hospital) 8.875 11/15/2017 7,954,433
1,650,000 NYS Medcare (M.G. Nursing Home) 6.375 02/15/2035 1,775,004
630,000 NYS Medcare (Mental Health) 0.000 08/15/2018 147,918
600,000 NYS Medcare (Mental Health) 5.250 08/15/2023 584,352
8,000,000 NYS Medcare (Mental Health) 5.250 08/15/2023 7,791,360
250,000 NYS Medcare (Mental Health) 5.500 08/15/2024 250,050
13,625,000 NYS Medcare (Mental Health) 5.800 08/15/2022(p) 14,527,520
890,000 NYS Medcare (Mental Health) 5.800 08/15/2022 908,085
505,000 NYS Medcare (Mental Health) 7.500 02/15/2021(p) 541,809
305,000 NYS Medcare (Mental Health) 7.500 02/15/2021 325,039
545,000 NYS Medcare (Mental Health) 7.625 08/15/2017(p) 593,854
250,000 NYS Medcare (Mental Health) 7.625 08/15/2017 269,860
3,370,000 NYS Medcare (Mental Health) 7.700 02/15/2018 3,413,372
35,000 NYS Medcare (Mental Health) 7.750 05/15/2011 37,432
220,000 NYS Medcare (Mental Health) 7.875 08/15/2015 225,038
1,725,000 NYS Medcare (Mental Health) 8.875 08/15/2007 1,735,540
25,000 NYS Medcare (Montefiore Medical Center) 5.750 02/15/2025 25,704
6,000,000 NYS Medcare (NY & Presbyterian Hospital) 5.375 02/15/2025 5,925,600
25,000 NYS Medcare (Secured Hospital) 6.250 02/15/2024 25,957
1,350,000 NYS Medcare (St. Charles Memorial Hospital) 6.375 08/15/2034 1,452,276
10,850,000 NYS Medcare (St. Francis Hospital) 7.625 11/01/2021 11,100,418
1,000,000 NYS Medcare (St. Luke's Hospital) 5.700 02/15/2029 1,019,830
10,000 NYS Medcare (St. Luke's Hospital) 7.375 02/15/2019 10,401
22,000,000 NYS Medcare (St. Luke's Hospital) IVRC (a) 7.550(f) 02/15/2029 22,467,500
12,500,000 NYS Medcare (St. Luke's Hospital) RITES (a) 7.287(f) 02/15/2029 12,748,750
8,400,000 NYS Medcare (St. Luke's Hospital) RITES (a) 7.287(f) 02/15/2029 8,567,160
5,750,000 NYS Medcare (St. Luke's Hospital) RITES (a) 7.336(f) 02/15/2029 5,864,425
10,000,000 NYS Medcare (St. Luke's Hospital) RITES (a) 7.336(f) 02/15/2029 10,199,000
5,255,000 NYS Medcare (Wyckoff Heights Medical Center) 7.400 08/15/2021(p) 5,707,876
5,925,000 NYS Medcare RITES (a) 6.535(f) 02/15/2019 5,605,998
10,000,000 NYS Medcare RITES (a) 6.785(f) 02/15/2025 9,643,800
21 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 10,000 NYS Power Authority 6.750% 01/01/2018 $ 10,594
1,000,000 NYS Thruway Authority 0.000 01/01/2003 850,700
2,000,000 NYS Thruway Authority 0.000 01/01/2004 1,617,500
260,000 NYS Thruway Authority 0.000 01/01/2005 199,519
25,000,000 NYS Thruway Authority Convertible INFLOS 5.094(f) 01/01/2024 21,656,250
7,140,000 NYS Thruway Authority RITES (a) 8.134(f) 01/01/2025 5,213,057
15,000 NYS UDC (Correctional Facilities) 0.000 01/01/2003 12,817
900,000 NYS UDC (Correctional Facilities) 0.000 01/01/2008 585,054
3,500,000 NYS UDC (Correctional Facilities) 5.000 01/01/2019 3,258,605
12,845,000 NYS UDC (Correctional Facilities) 5.000 01/01/2020 11,934,418
13,270,000 NYS UDC (Correctional Facilities) 5.000 01/01/2028 12,169,121
6,635,000 NYS UDC (Correctional Facilities) 5.250 01/01/2021 6,342,795
10,275,000 NYS UDC (Correctional Facilities) 5.375 01/01/2023 9,981,443
5,590,000 NYS UDC (Correctional Facilities) 5.375 01/01/2025 5,423,977
500,000 NYS UDC (Correctional Facilities) 5.500 01/01/2018 502,940
1,000,000 NYS UDC (Correctional Facilities) 5.500 01/01/2025 1,003,350
2,000,000 NYS UDC (Correctional Facilities) 7.500 01/01/2018(p) 2,139,860
3,200,000 NYS UDC (Correctional Facilities) RITES (a) 8.144(f) 01/01/2028 2,327,680
102,445,000 NYS UDC (South Mall) 0.000 01/01/2011 50,974,583
95,000 NYS UDC (South Mall) 0.000 01/01/2011 48,707
1,265,000 Oneida County IDA (Mobile Climate Control) 8.000 11/01/2008 1,312,298
2,825,000 Oneida County IDA (Mobile Climate Control) 8.750 11/01/2018 2,933,028
450,000 Oneida County IDA (Mohawk Valley Handicapped Services) 5.300 03/15/2019 436,842
740,000 Oneida County IDA (Mohawk Valley Handicapped Services) 5.350 03/15/2029 698,508
1,190,000 Oneida County IDA (Presbyterian Home) 5.250 03/01/2019 1,123,693
10,000 Oneida Healthcare Corp. 7.100 08/01/2011 10,581
130,000 Oneida Healthcare Corp. 7.200 08/01/2031 137,764
555,000 Onondaga County IDA (Coltec) 7.250 06/01/2008 568,598
770,000 Onondaga County IDA (Coltec) 9.875 10/01/2010 806,960
1,825,000 Onondaga County IDA (Community General Hospital) 5.500 11/01/2018 1,741,306
7,000,000 Onondaga County IDA (Community General Hospital) 6.625 01/01/2018 7,368,130
1,550,000 Onondaga County IDA (Gear Motion) 8.900 12/15/2011 1,599,414
6,765,000 Onondaga County IDA (Iroquois Nursing Home) 5.250 02/01/2039 6,384,198
5,000,000 Onondaga County IDA (Solvay Paperboard) 6.800 11/01/2014 5,108,350
30,400,000 Onondaga County IDA (Solvay Paperboard) 7.000 11/01/2030 31,478,896
750,000 Onondaga County IDA (Syracuse Home) 5.200 12/01/2018 707,520
27,850,000 Onondaga County Res Rec 6.875 05/01/2006 29,118,011
67,435,000 Onondaga County Res Rec 7.000 05/01/2015 71,158,086
1,083,000 Ontario County IDA (Ontario Design) 6.500 11/01/2005 1,072,517
3,250,000 Orange County IDA (Glen Arden) 5.625 01/01/2018 3,150,875
4,590,000 Orange County IDA (Glen Arden) 5.700 01/01/2028 4,402,453
22,450,000 Orange County IDA (Glen Arden) 8.875 01/01/2025(p) 27,185,154
7,600,000 Orange County IDA (Kingston Manufacturing) (a) 8.000 11/01/2017 7,847,000
495,000 Orange County IDA (Mental Retardation Project) 7.800 07/01/2011 519,349
2,770,000 Oswego County IDA (Bishop's Common) 5.375 02/01/2049 2,609,091
4,750,000 Oswego County IDA (SLRHF) 5.400 02/01/2038 4,589,355
3,260,000 Oswego IDA (Seneca Hill Manor) 5.650 08/01/2037 3,285,982
2,970,000 Otsego County IDA (Bassett Healthcare Project) 5.350 11/01/2020 2,952,952
1,280,000 Otsego County IDA (Bassett Healthcare Project) 5.375 11/01/2020 1,276,672
3,000,000 Otsego County IDA (Hartwick College) 5.500 07/01/2019 2,958,840
10,900,000 Peekskill IDA (Drum Hill) 6.375 10/01/2028 10,541,608
22 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,403,659 Peekskill IDA (Karta) 9.000% 07/01/2010 $ 1,430,778
1,085,000 Pilgrim Village HDC (Multifamily Hsg.) 6.800 02/01/2021 1,109,022
465,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2019 507,269
7,340,000 Port Authority NY/NJ (US Airways) 9.000 12/01/2006 7,888,078
520,000 Port Authority NY/NJ (US Airways) 9.000 12/01/2010 558,828
22,400,000 Port Authority NY/NJ (US Airways) 9.125 12/01/2015 24,110,464
45,000 Port Authority NY/NJ, 67th Series 6.875 01/01/2025 46,155
220,000 Port Authority NY/NJ, 68th Series 7.250 02/15/2025 226,378
70,000 Port Authority NY/NJ, 69th Series 7.125 06/01/2025 72,735
85,000 Port Authority NY/NJ, 70th Series 7.250 08/01/2025 88,031
15,000 Port Authority NY/NJ, 70th Series 7.250 08/01/2025 15,618
65,000 Port Authority NY/NJ, 71st Series 6.500 01/15/2026 67,967
70,000 Port Authority NY/NJ, 73rd Series 6.750 04/15/2026 73,021
15,000 Port Authority NY/NJ, 73rd Series 6.750 04/15/2026 15,721
15,000 Port Authority NY/NJ, 74th Series 6.750 08/01/2026 15,921
85,000 Port Authority NY/NJ, 76th Series 6.500 11/01/2026 89,191
4,255,000 Port Jervis IDA (Franciscan Health Partnership) 5.500 11/01/2016 4,071,439
60,000 Portchester CDC (Southport) 7.300 08/01/2011 61,514
25,000 Portchester CDC (Southport) 7.375 08/01/2022 25,659
1,990,000 Putnam County IDA (Brewster Plastics) 8.500 12/01/2016 2,098,435
20,000 Rensselaer Hsg. Authority (Renwyck) 7.650 01/01/2011 21,668
30,000 Rensselaer IDA (Millbrook Millwork) 8.500 12/15/2002 30,350
15,000,000 Rensselaer Municipal Leasing Corp. 6.900 06/01/2024 16,224,450
45,000 Riverhead HDC (a) 8.250 08/01/2010 46,946
20,990,000 Rochester Hsg. Authority (Crossroads Apartments) 7.700 01/01/2017 23,202,346
6,790,000 Rochester Museum & Science Center 6.125 12/01/2015 6,752,791
2,000,000 Rockland County IDA (Dominican College) 6.250 05/01/2028 1,947,700
2,090,000 Rockland County IDA (Dominican College) 8.000 03/01/2013 2,373,864
1,395,000 Saratoga County IDA (ARC) 8.400 03/01/2013 1,527,051
490,000 Schroon Lake Fire District (a) 7.250 03/01/2009 508,498
175,000 Scotia Hsg. Authority (Holyrood House) 7.000 06/01/2009 186,193
10,000 SONYMA, Series 1 0.000 10/01/2014 2,428
1,935,000 SONYMA, Series 2 0.000 10/01/2014 446,211
45,000 SONYMA, Series 2 0.000 10/01/2014 10,573
25,000 SONYMA, Series 27 6.450 04/01/2004 26,274
3,445,000 SONYMA, Series 28 6.450 10/01/2020 3,527,852
10,000,000 SONYMA, Series 28 6.650 04/01/2022 10,447,400
8,830,000 SONYMA, Series 28 7.050 10/01/2023 9,312,383
610,000 SONYMA, Series 30 5.800 10/01/2025 619,961
15,000 SONYMA, Series 30-A 4.375 10/01/2023 14,537
16,005,000 SONYMA, Series 30-B 6.650 10/01/2025 16,891,677
100,000 SONYMA, Series 30-C1 5.850 10/01/2025 102,618
15,000 SONYMA, Series 30-C2 5.800 10/01/2025 15,370
11,510,000 SONYMA, Series 36-A 6.625 04/01/2025 12,253,891
13,280,000 SONYMA, Series 38 RITES (a) 8.046(f) 04/01/2025 14,477,059
80,000 SONYMA, Series 40-A 6.350 04/01/2021 82,948
7,560,000 SONYMA, Series 40-A 6.700 04/01/2025 8,075,214
75,000 SONYMA, Series 40-B 6.400 10/01/2012 79,920
5,885,000 SONYMA, Series 40-B 6.600 04/01/2025 6,268,584
13,605,000 SONYMA, Series 42 6.650 04/01/2026 14,524,018
110,000 SONYMA, Series 42 6.650 04/01/2026 117,842
23 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 11,990,000 SONYMA, Series 44 7.500% 04/01/2026 $ 12,917,427
100,000 SONYMA, Series 46 6.500 04/01/2013 107,192
65,000 SONYMA, Series 46 6.600 10/01/2019 69,659
23,900,000 SONYMA, Series 46 6.650 10/01/2025 25,622,234
535,000 SONYMA, Series 48 6.100 04/01/2025 561,894
7,165,000 SONYMA, Series 50 6.625 04/01/2025 7,697,145
180,000 SONYMA, Series 52 6.100 04/01/2026 187,882
915,000 SONYMA, Series 52 6.100 04/01/2026 967,182
30,000 SONYMA, Series 53 5.900 10/01/2017 31,116
25,000 SONYMA, Series 54 6.200 10/01/2026 26,289
45,000 SONYMA, Series 54 6.200 10/01/2026 47,932
6,125,000 SONYMA, Series 58 6.400 04/01/2027 6,542,848
835,000 SONYMA, Series 6 9.375 04/01/2010 851,976
540,000 SONYMA, Series 60 6.000 10/01/2022 561,800
335,000 SONYMA, Series 60 6.050 04/01/2026 349,753
9,750,000 SONYMA, Series 63 6.125 04/01/2027 10,241,790
10,205,000 SONYMA, Series 65 5.850 10/01/2028 10,516,559
3,000,000 SONYMA, Series 67 5.700 10/01/2017 3,045,990
11,665,000 SONYMA, Series 67 5.800 10/01/2028 12,211,389
200,000 SONYMA, Series 69 5.400 10/01/2019 197,078
4,725,000 SONYMA, Series 69 RITES (a) 6.985(f) 10/01/2028 4,549,041
1,255,000 SONYMA, Series 7 (a) 0.000 10/01/2014 1,263,358
940,000 SONYMA, Series 71 5.350 10/01/2018 923,296
10,150,000 SONYMA, Series 71 RITES (a) 6.785(f) 04/01/2029 9,649,808
5,500,000 SONYMA, Series 73 RITES (a) 9.196(f) 10/01/2028 4,986,960
10,830,000 SONYMA, Series 79 5.300 04/01/2029 10,361,061
450,000 SONYMA, Series 8-A (a) 6.875 04/01/2017 455,513
475,000 SONYMA, Series 8-E (a) 8.100 10/01/2017 476,188
95,000 SONYMA, Series EE-2 7.450 10/01/2010 97,240
190,000 SONYMA, Series EE-2 7.500 04/01/2016 194,499
250,000 SONYMA, Series EE-3 7.700 10/01/2010 259,088
15,000 SONYMA, Series EE-3 7.750 04/01/2016 15,546
90,000 SONYMA, Series EE-4 7.750 10/01/2010 93,578
360,000 SONYMA, Series HH-2 7.700 10/01/2009 368,089
10,000 SONYMA, Series HH-2 7.850 04/01/2022 10,245
100,000 SONYMA, Series II 0.000 04/01/2005 66,137
90,000 SONYMA, Series II 0.000 04/01/2006 55,082
100,000 SONYMA, Series II 0.000 10/01/2007 54,269
170,000 SONYMA, Series II 0.000 04/01/2008 88,723
120,000 SONYMA, Series II 0.000 10/01/2008 60,234
455,000 SONYMA, Series JJ 7.500 10/01/2017 466,935
20,000 SONYMA, Series KK 7.650 04/01/2019 20,451
285,000 SONYMA, Series KK 7.800 10/01/2020 291,951
70,000 SONYMA, Series MM-1 7.500 04/01/2013 70,643
25,000 SONYMA, Series MM-1 7.750 10/01/2005 25,842
100,000 SONYMA, Series MM-2 7.700 04/01/2005 103,069
50,000 SONYMA, Series NN 7.550 10/01/2017 51,485
15,000 SONYMA, Series QQ 7.700 10/01/2012 15,463
105,000 SONYMA, Series RR 7.700 10/01/2010 109,240
75,000 SONYMA, Series RR 7.750 10/01/2017 77,982
5,000 SONYMA, Series TT 6.950 10/01/2002 5,199
24 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 2,020,000 SONYMA, Series UU 7.750% 10/01/2023 $ 2,103,547
115,222,000 SONYMA, Series VV 0.000 10/01/2023 19,025,457
195,000 SONYMA, Series VV 7.375 10/01/2011 205,353
2,370,000 St. Lawrence County IDA (Clarkson University) 5.500 07/01/2029 2,325,942
2,805,000 St. Lawrence County IDA (Hepburn Medical Center) 5.375 12/01/2019 2,736,979
3,595,000 St. Lawrence County IDA (Hepburn Medical Center) 5.500 12/01/2024 3,520,152
725,000 Suffolk County GO 6.375 11/01/2016 785,117
1,310,000 Suffolk County IDA (ACLDD) 6.500 03/01/2018 1,293,180
490,000 Suffolk County IDA (ALIA - ACLDD) 6.375 06/01/2014 489,049
2,085,000 Suffolk County IDA (ALIA - DDI) 6.375 06/01/2014 2,080,350
1,080,000 Suffolk County IDA (ALIA - FREE) 6.375 06/01/2014 1,077,592
870,000 Suffolk County IDA (ALIA - IGHL) 6.375 06/01/2014 868,060
515,000 Suffolk County IDA (ALIA - LIHIA) 6.375 06/01/2014 513,852
845,000 Suffolk County IDA (ALIA - MCH) 6.375 06/01/2014 843,116
365,000 Suffolk County IDA (ALIA - UCPAGS) 6.375 06/01/2014 364,186
425,000 Suffolk County IDA (Community Program Ctr. of L.I.) 7.250 11/01/2007 446,050
1,825,000 Suffolk County IDA (Community Program Ctr. of L.I.) 8.250 11/01/2010 2,001,478
865,000 Suffolk County IDA (CPCLI) 6.000 06/01/2009 864,758
3,230,000 Suffolk County IDA (CPCLI) 6.875 06/01/2024 3,229,354
1,505,000 Suffolk County IDA (DDI) 6.250 03/01/2009 1,500,726
5,270,000 Suffolk County IDA (DDI) 7.250 03/01/2024 5,301,357
655,000 Suffolk County IDA (DDI) 7.375 03/01/2003 672,371
9,675,000 Suffolk County IDA (DDI) 8.750 03/01/2023 10,720,577
2,000,000 Suffolk County IDA (Dowling College) 6.625 06/01/2024 2,070,380
2,870,000 Suffolk County IDA (Dowling College) 6.700 12/01/2020 3,015,940
935,000 Suffolk County IDA (Dowling College) 8.250 12/01/2020(p) 1,011,296
445,000 Suffolk County IDA (Fil-Coil) (a) 9.000 12/01/2015 447,225
1,060,000 Suffolk County IDA (Fil-Coil) 9.250 12/01/2025 1,067,314
3,860,000 Suffolk County IDA (Huntington First Aid Squad) 6.650 11/01/2017 3,833,520
8,545,000 Suffolk County IDA (Huntington Res Rec) (w) 5.550 10/01/2004 8,868,856
9,180,000 Suffolk County IDA (Huntington Res Rec) (w) 5.650 10/01/2005 9,583,828
9,875,000 Suffolk County IDA (Huntington Res Rec) (w) 5.750 10/01/2006 10,365,985
10,615,000 Suffolk County IDA (Huntington Res Rec) (w) 5.800 10/01/2007 11,152,544
11,410,000 Suffolk County IDA (Huntington Res Rec) (w) 5.850 10/01/2008 12,010,737
12,265,000 Suffolk County IDA (Huntington Res Rec) (w) 5.950 10/01/2009 13,002,740
13,190,000 Suffolk County IDA (Huntington Res Rec) (w) 6.000 10/01/2010 14,061,727
14,170,000 Suffolk County IDA (Huntington Res Rec) (w) 6.150 10/01/2011 15,325,138
17,155,000 Suffolk County IDA (Huntington Res Rec) (w) 6.250 10/01/2012 18,733,775
195,000 Suffolk County IDA (Microwave Power) 7.750 06/30/2002 201,211
4,320,000 Suffolk County IDA (Microwave Power) 8.500 06/30/2022 4,571,424
500,000 Suffolk County IDA (Nissequogue Cogeneration Partners) 5.500 01/01/2023 491,265
715,000 Suffolk County IDA (OBPWC) 7.500 11/01/2022 766,659
1,670,000 Suffolk County IDA (Rimland Facilities) (a) 6.375(v) 12/01/2009 1,670,000
1,315,000 Suffolk County IDA (Wireless Boulevard Realty) 7.875 12/01/2012 1,361,393
4,005,000 Suffolk County IDA (Wireless Boulevard Realty) 8.625 12/01/2026 4,221,390
2,960,000 Sunnybrook EHC (a) 11.250 12/01/2014 3,107,260
9,590,000 Syracuse Hsg. Authority (LRRHCF) 5.800 08/01/2037 9,783,334
625,000 Syracuse Hsg. Authority (LRRHCF) 7.500 08/01/2010 628,331
1,990,000 Syracuse Hsg. Authority (Seneca Heights) 7.500 12/01/2007 2,014,795
4,720,000 Syracuse Hsg. Authority (Seneca Heights) 8.500 12/01/2017 4,785,514
510,000 Syracuse IDA (Anoplate Corp.) 7.250 11/01/2007 523,413
25 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 2,195,000 Syracuse IDA (Anoplate Corp.) 8.000% 11/01/2022 $ 2,247,241
41,905,000 Syracuse IDA (James Square) 0.000 08/01/2025 7,739,434
635,000 Syracuse IDA (Piscitell Stone & Supply) 8.400 12/01/2011 665,785
1,150,000 Syracuse IDA (Rockwest Center I) (a) 8.000 06/01/2013 1,171,850
980,000 Syracuse IDA (Rockwest Center II) (a) 7.625 12/01/2010 948,150
1,470,000 Syracuse IDA (Rockwest Center II) (a) 8.625 12/01/2015 1,429,575
3,770,000 Syracuse IDA (St. Joseph's Hospital) 7.500 06/01/2018(p) 4,071,525
25,000 34th Street BID (34th Street Partnership) 5.500 01/01/2023 25,006
3,750,000 Tompkins County IDA (Ithacare Center) 6.200 02/01/2037 3,982,088
50,000 Tompkins County IDA (Kendall at Ithaca) 7.250 06/01/2003 50,627
2,790,000 Tompkins County IDA (Kendall at Ithaca) 7.875 06/01/2015 2,936,336
5,735,000 Tompkins County IDA (Kendall at Ithaca) 7.875 06/01/2024 6,008,158
230,000 Tompkins Healthcare Corp. 10.800 02/01/2007 272,720
60,000 Tompkins Healthcare Corp. 10.800 02/01/2028 75,265
480,000 Tonawanda SCHC (Westchester Park Apartments) 7.875 02/01/2011 496,435
70,000 Tupper Lake HDC 8.125 10/01/2010 70,280
1,000,000 UCP/HCA of Chemung County 6.600 08/01/2022 1,093,190
4,870,000 UFA Devel. Corp. (Loretto-Utica Corp.) 5.950 07/01/2035 5,034,509
725,000 Ulster County IDA (Benedictine Hospital) 6.400 06/01/2014 726,428
1,945,000 Ulster County IDA (Benedictine Hospital) 6.450 06/01/2024 1,941,168
360,000 Ulster County IDA (Brooklyn Bottling) 7.800 06/30/2002 370,681
1,915,000 Ulster County IDA (Brooklyn Bottling) 8.600 06/30/2022 2,018,965
4,000,000 Ulster County IDA (Kingston Hospital) 5.650 11/15/2024 3,949,280
1,465,000 Ulster County IDA (Mid-Hsg. Family Health) 5.350 07/01/2023 1,416,025
2,250,000 Ulster County Res Rec 6.000 03/01/2014 2,301,210
2,470,000 Union Hsg. Authority (Methodist Homes) 7.625 11/01/2016 2,682,840
110,000 Union Hsg. Authority (Methodist Homes) 8.150 04/01/2000 112,034
120,000 Union Hsg. Authority (Methodist Homes) 8.250 04/01/2001 125,142
150,000 Union Hsg. Authority (Methodist Homes) 8.350 04/01/2002 160,002
2,010,000 Union Hsg. Authority (Methodist Homes) 8.500 04/01/2012 2,209,653
20,005,000 United Nations Devel. Corp., Series B 5.600 07/01/2026 20,030,806
14,450,000 United Nations Devel. Corp., Series C 5.600 07/01/2026 14,468,641
100,000 Utica GO 5.900 12/01/2002 99,762
580,000 Utica GO 6.000 01/15/2006 567,431
560,000 Utica GO 6.250 01/15/2007 551,572
3,000,000 Utica IDA (Utica College) 5.750 08/01/2028 3,007,140
25,000 Utica SCHC (Brook Apartments) 0.000 07/01/2002 18,846
3,410,000 Utica SCHC (Brook Apartments) 0.000 07/01/2026 299,773
20,000 Valley Health Devel. Corp. 7.850 08/01/2035 21,583
400,000 Valley Health Devel. Corp. 11.300 02/01/2007 460,456
165,000 Valley Health Devel. Corp. 11.300 02/01/2023 189,545
950,000 Vigilant EHL (Thomaston Volunteer Fire Dept.) 7.500 11/01/2012 1,004,597
8,440,000 Warren & Washington Counties IDA (Res Rec) 8.000 12/15/2012 8,329,014
8,550,000 Warren & Washington Counties IDA (Res Rec) 8.200 12/15/2010 8,559,063
8,965,000 Warren & Washington Counties IDA (Res Rec) 8.200 12/15/2010 8,974,503
100,000 Watervliet EHC 8.000 11/15/2003 101,362
95,000 Watervliet EHC 8.000 11/15/2004 96,294
95,000 Watervliet EHC 8.000 11/15/2005 96,294
100,000 Watervliet EHC 8.000 11/15/2006 101,362
100,000 Watervliet EHC 8.000 11/15/2007 101,362
100,000 Watervliet EHC 8.000 11/15/2008 101,362
100,000 Watervliet EHC 8.000 11/15/2009 101,362
26 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 315,000 Wayne County IDA (ARC) 7.250% 03/01/2003 $ 323,738
2,925,000 Wayne County IDA (ARC) 8.375 03/01/2018 3,160,287
1,870,000 Westchester County IDA (Beth Abraham Hospital) 8.375 12/01/2025 2,107,696
1,346,400 Westchester County IDA (Clearview School) 9.375 01/01/2021 1,474,227
2,220,000 Westchester County IDA (JBFS) 6.750 12/15/2012 2,332,510
1,560,000 Westchester County IDA (JDAM) 6.750 04/01/2016 1,634,896
3,250,000 Westchester County IDA (Lawrence Hospital) 5.000 01/01/2028 2,929,193
800,000 Westchester County IDA (Lawrence Hospital) 5.125 01/01/2018 748,256
65,000 Westchester County IDA (Westchester Airport) 5.950 08/01/2024 65,413
1,750,000 Westchester County IDA (Rippowam-Cisqua School) 5.750 06/01/2029 1,712,025
1,865,000 Yates County IDA (Keuka College) 8.750 08/01/2015 2,141,169
1,020,000 Yates County IDA (Keuka College) 9.000 08/01/2011 1,107,740
3,825,000 Yates County IDA (SSMH) 5.650 02/01/2039 3,836,437
4,685,000 Yonkers IDA (Hudson Scenic Studio) 6.625 11/01/2019 4,621,846
4,520,000 Yonkers IDA (Michael Malotz Skilled Nursing Pavilion) 5.650 02/01/2039 4,544,544
865,000 Yonkers IDA (St. Joseph's Hospital) 7.500 12/30/2003 900,439
3,270,000 Yonkers IDA (St. Joseph's Hospital) 8.500 12/30/2013 3,608,347
2,200,000 Yonkers IDA (St. Joseph's Hospital), Series 98-A 6.150 03/01/2015 2,146,848
2,100,000 Yonkers IDA (St. Joseph's Hospital), Series 98-B 6.150 03/01/2015 2,049,264
1,000,000 Yonkers IDA (St. Joseph's Hospital), Series 98-C 6.200 03/01/2020 972,100
300,000 Yonkers IDA (Westchester School) 7.375 12/30/2003 310,572
3,375,000 Yonkers IDA (Westchester School) 8.750 12/30/2023 3,694,579
800,000 Yonkers Parking Authority 6.000 06/15/2018 798,176
1,215,000 Yonkers Parking Authority 6.000 06/15/2024 1,196,423
760,000 Yonkers Parking Authority 7.750 12/01/2004 800,842
--------------
4,298,845,788
--------------
- -----------------------------------------------------------------------------------------------------------------------------
U.S. Possessions--8.7%
400,000 American Samoa Power Authority 6.800 09/01/2000 411,584
400,000 American Samoa Power Authority 6.850 09/01/2001 417,020
400,000 American Samoa Power Authority 6.900 09/01/2002 422,080
500,000 American Samoa Power Authority 6.950 09/01/2003 533,995
500,000 American Samoa Power Authority 7.000 09/01/2004 539,350
800,000 American Samoa Power Authority 7.100 09/01/2001 837,880
800,000 American Samoa Power Authority 7.200 09/01/2002 850,824
5,375,000 Guam Airport Authority, Series B 6.600 10/01/2010 5,805,699
60,730,000 Guam Airport Authority, Series B 6.700 10/01/2023 65,753,586
2,995,000 Guam EDA (Harmon Village Apartments) (d) 9.375 11/01/2018 2,795,683
2,545,000 Guam EDA (Royal Socio Apartments) 9.500 11/01/2018 2,564,546
11,000,000 Guam Power Authority, Series A 5.125 10/01/2029 10,249,030
945,000 Guam Power Authority, Series A 5.250 10/01/2023 900,727
20,550,000 Guam Power Authority, Series A 5.250 10/01/2034 19,401,872
10,000 Guam Power Authority, Series A 6.300 10/01/2022 10,754
450,000 Guam Power Authority, Series A 6.625 10/01/2014 500,144
4,780,000 Guam Power Authority, Series A 6.750 10/01/2024 5,340,264
837,866 Puerto Rico Dept. of Corrections Equipment Lease (a) 8.000 04/17/2003 854,742
17,800,000 Puerto Rico Electric Power Authority LEVRRS 8.548(f) 07/01/2023 19,691,250
922,025 Puerto Rico Family Dept. Furniture Lease (a) 8.000 08/18/2003 946,183
2,891,011 Puerto Rico Family Dept. Furniture Lease (a) 12.725 08/12/2003 3,219,430
5,000,000 Puerto Rico GO 5.375 07/01/2025 4,917,450
30,000 Puerto Rico GO 5.875 07/01/2018 31,867
1,600,000 Puerto Rico GO RITES (a) 8.216(f) 07/01/2022 1,760,000
40,250,000 Puerto Rico GO YCN 8.202(f) 07/01/2020 43,369,375
1,000,000 Puerto Rico GO YCN (a) 8.335(f) 07/01/2015(p) 1,121,880
27 Rochester Fund Municipals
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount Description Coupon Maturity See Note 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 5,599,899 Puerto Rico Health Dept. Computer Lease (a) 7.438% 03/26/2003 $ 5,659,090
390,000 Puerto Rico HFA (Affordable Hsg.) 6.250 04/01/2029 405,947
8,690,000 Puerto Rico HFC 0.000 08/01/2026 1,348,254
10,000 Puerto Rico HFC 7.300 10/01/2006 10,397
210,000 Puerto Rico HFC 7.500 10/01/2015 218,652
5,240,000 Puerto Rico HFC 7.500 04/01/2022 5,458,298
45,000 Puerto Rico HFC 7.650 10/15/2022 46,926
185,000 Puerto Rico IMEPCF (Instituto Medico) 9.500 04/01/2003 190,644
557,951 Puerto Rico Industrial Commission Computer Lease (a) 8.000 03/26/2003 570,042
1,215,000 Puerto Rico Infrastructure 7.500 07/01/2009 1,230,674
660,000 Puerto Rico Infrastructure 7.750 07/01/2008 668,653
165,000 Puerto Rico Infrastructure 7.900 07/01/2007 167,183
2,500,000 Puerto Rico ITEMECF (Ana G. Mendez University) 5.375 02/01/2029 2,417,275
500,000 Puerto Rico ITEMECF (Mennonite General Hospital) 5.625 07/01/2017 487,580
985,000 Puerto Rico ITEMECF (Mennonite General Hospital) 5.625 07/01/2027 954,652
12,205,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2026 12,710,775
5,000 Puerto Rico ITEMECF (Polytech University) 5.700 08/01/2013 5,027
5,250,000 Puerto Rico ITEMECF (Ryder Memorial Hospital) 6.700 05/01/2024 5,596,920
172,492 Puerto Rico Medical Services Equipment Lease (a) (d) 7.300 02/27/2003 174,352
664,849 Puerto Rico Medical Services Ventilator Lease (a) 7.500 04/01/2003 675,068
15,000 Puerto Rico Port Authority 7.300 07/01/2007 15,026
1,400,000 Puerto Rico Port Authority (American Airlines) 6.250 06/01/2026 1,478,218
20,000 Puerto Rico Port Authority (American Airlines) 6.300 06/01/2023 20,901
7,000,000 Puerto Rico Public Buildings Authority 5.700 07/01/2016 7,231,280
15,124,296 Puerto Rico Public Buildings Authority Computer Lease (a) 6.528 05/01/2004 15,084,822
870,873 Puerto Rico Rio Grande Computer Lease (a) 8.000 09/02/2003 893,578
2,247,808 Puerto Rico Rio Grande Equipment Lease (a) 8.800 10/13/2003 2,351,162
142,663 Puerto Rico Rio Grande Vehicle Lease (a) 9.000 01/23/2003 150,271
569,385 Puerto Rico San Sebastian Garage Lease (a) 10.000 09/16/2005 612,841
355,013 Puerto Rico State Courts Vehicle Lease (a) 8.000 03/26/2003 362,902
16,550,000 Puerto Rico Telephone Authority RIBS 7.290(f) 01/16/2015 17,894,688
15,000,000 Puerto Rico Telephone Authority RIBS (a) 8.338(f) 01/01/2022 16,676,400
1,205,000 University of V.I. 7.250 10/01/2004 1,284,675
3,570,000 University of V.I. 7.700 10/01/2019 3,969,554
5,175,000 University of V.I. 7.750 10/01/2024 5,765,830
328,000 V.I. GO (Hugo Insurance Claims Program) 7.750 10/01/2006 353,072
60,000 V.I. HFA 6.450 03/01/2016 63,368
1,250,000 V.I. Public Finance Authority 5.500 10/01/2022 1,221,825
7,500,000 V.I. Public Finance Authority 5.625 10/01/2025 7,428,150
7,750,000 V.I. Public Finance Authority 5.875 10/01/2018 7,944,913
6,500,000 V.I. Public Finance Authority 6.000 10/01/2022 6,703,255
1,135,000 V.I. Public Finance Authority 7.125 10/01/2004(p) 1,233,257
28,750,000 V.I. Public Finance Authority 7.250 10/01/2018(p) 31,885,188
1,735,000 V.I. Public Finance Authority 7.375 10/01/2010(p) 1,998,200
13,550,000 V.I. Public Finance Authority Computer Lease (a) 6.250 01/01/2005 13,427,373
75,000 V.I. Water & Power Authority 5.300 07/01/2018 73,332
2,515,000 V.I. Water & Power Authority 5.300 07/01/2021 2,445,008
2,500,000 V.I. Water & Power Authority 5.500 07/01/2017 2,358,275
5,655,000 V.I. Water & Power Authority 7.400 07/01/2011(p) 6,061,425
6,850,000 V.I. Water & Power Authority 7.600 01/01/2012(p) 7,589,732
--------------
396,822,145
--------------
28 Rochester Fund Municipals
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $4,604,020,339)--103.1% $4,695,667,933
Liabilities in Excess of Other Assets--(3.1)% (139,313,193)
--------------
Net Assets--100.0% $4,556,354,740
==============
</TABLE>
(a) Illiquid security--See Note 5 of Notes to Financial Statements.
(b) Non-income accruing security.
(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) Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce
less current income. Their price may be more volatile than the price of a
comparable fixed-rate security. Inverse floaters amount to $926,477,782, or
19.33% of the Fund's total assets as of June 30, 1999.
(p) This issue has been prerefunded to an earlier date.
(v) Represents the current interest rate for a variable rate security that
fluctuates as a percentage of prime rate.
(w) When-issued security to be delivered and settled after June 30, 1999.
See accompanying Notes to Financial Statements.
29 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Portfolio Abbreviations
- -------------------------------------------------------------------------------
To simplify the listing of securities in the Statement of Investments,
abbreviations are used per the table below:
<TABLE>
<S> <C> <C> <C>
ACLDD Adults and Children with Learning and LSSUNY Lutheran Social Services of Upstate New York
Developmental Disabilities MCH Maryhaven Center of Hope
ALIA Alliance of Long Island Agencies MTA Metropolitan Transportation Authority
ARC Association of Retarded Citizens NH&HC Nursing Home and Health Care
ASMF Amsterdam Sludge Management Facility NIMO Niagara Mohawk Power Corporation
BID Business Improvement District NJ New Jersey
BOCES Board of Cooperative Educational Services NSCFGA North Shore Child and Family
CAB Capital Appreciation Bond Guidance Association
CARS Complimentary Auction Rate Security NY New York
CDC Community Development Corporation NYC New York City
CF Community Facilities NYS New York State
Con Ed Consolidated Edison Company NYSEG New York State Electric and Gas
COP Certificates of Participation OBPWC Ocean Bay Park Water Corporation
CPCLI Community Programs Center of Long Island PRFF Puerto Rican Family Foundation
DA Dormitory Authority Res Rec Resource Recovery Facility
DDI Developmental Disabilities Institute RG&E Rochester Gas and Electric
DIAMONDS Direct Investment of Accrued Municipals RIBS Residual Interest Bonds
EDA Economic Development Authority RIT Rochester Institute of Technology
EFC Environmental Facilities Corporation RITES Residual Interest Tax Exempt Security
EHC Elderly Housing Corporation SCHC Senior Citizen Housing Corporation
EHL Engine Hook and Ladder SCSB Schuyler Community Services Board
ERDA Energy Research and Development Authority SLCD School for Language and Communication
FREE Family Residences and Essential Enterprises Development
GJSR Gurwin Jewish Senior Residences SLRHF St. Luke Residential Healthcare Facility
GO General Obligation SONYMA State of New York Mortgage Agency
GRIA Greater Rochester International Airport SSMH Soldiers and Sailors Memorial Hospital
HDC Housing Development Corporation SWMA Solid Waste Management Authority
HELP Homeless Economic Loan Program TFA Transitional Finance Authority
HFA Housing Finance Agency UCPAGS United Cerebral Palsy Association
HFC Housing Finance Corporation of Greater Suffolk
IDA Industrial Development Agency UCP/HCA United Cerebral Palsy and Handicapped
IGHL Independent Group Home for Living Children's Association
IMEPCF Industrial, Medical and Environmental UDC Urban Development Corporation
Pollution Control Facilities UFA Utica Free Academy
INFLOS Inverse Floating Rate Securities V.I. United States Virgin Islands
IRS Inverse Rate Security WWH Wyandach/Wheatley Heights
ITEMECF Industrial, Tourist, Educational, Medical YCN Yield Curve Note
and Environmental Community Facilities YCR Yield Curve Receipt
IVRC Inverse Variable Rate Certificate YMCA Young Men's Christian Association
JBFS Jewish Board of Family Services
JCC Jewish Community Center
JDAM Julia Dyckman Angus Memorial
JFK John Fitzgerald Kennedy
L.I. Long Island
LEVRRS Leveraged Reverse Rate Security
LGAC Local Government Assistance Corporation
LGSC Local Government Services Corporation
LIHIA Long Island Head Injury Association
LILCO Long Island Lighting Corporation
LRRHCF Loretto Rest Residential Health Care Facility
</TABLE>
30 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Industry Concentrations June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
<TABLE>
<CAPTION>
Industry Market Value Percent
- ---------------------------------------------------------------------------------
<S> <C> <C>
Hospital/Healthcare $ 824,863,337 17.6%
Electric Utilities 577,292,492 12.3
General Obligation 501,435,074 10.7
Multifamily Housing 402,564,350 8.6
Resource Recovery 319,351,265 6.8
Municipal Leases 310,936,559 6.6
Single Family Housing 247,593,663 5.3
Marine/Aviation Facilities 178,117,663 3.8
Nonprofit Organization 162,442,034 3.5
Higher Education 157,109,208 3.3
Adult Living Facilities 133,048,621 2.8
Manufacturing, Non-Durable Goods 131,584,484 2.8
Water Utilities 123,840,245 2.6
Corporate Backed 122,719,536 2.6
Manufacturing, Durable Goods 116,230,440 2.5
Highways/Railways 107,902,148 2.3
Education 95,959,379 2.0
Sales Tax Revenue 69,149,640 1.5
Other 113,527,795 2.4
-------------- -----
$4,695,667,933 100.0%
============== ======
</TABLE>
- -------------------------------------------------------------------------------
Summary of Ratings June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
Distribution of investments by rating category, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
Rating Percent
---------------------------------
<S> <C>
AAA 26.3%
AA 10.1
A 27.3
BBB 19.4
BB 1.5
B 0.7
CCC 0.0
CC 0.0
C 0.0
Not Rated 14.7
------
100.0%
======
</TABLE>
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 are included in the "Not Rated"
category.
31 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets
Investments, at value (cost $4,604,020,339)--see accompanying statement $4,695,667,933
-----------------------------------------------------------------------------------------------------------
Cash 707,281
-----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 74,399,849
Shares of beneficial interest sold 19,290,459
Investments sold 3,508,729
Other 28,741
--------------
Total assets 4,793,602,992
--------------
Liabilities
Payables and other liabilities:
Investments purchased 180,522,235
Note payable to bank (interest rate 6.625% at 6/30/99)--Note 6 44,300,000
Shares of beneficial interest redeemed 6,440,344
Dividends 4,805,813
Trustees' compensation--Note 1 839,832
Other 340,028
--------------
Total liabilities 237,248,252
--------------
Net Assets $4,556,354,740
==============
===============================================================================================================
Composition of Net Assets
Paid-in capital $4,547,102,007
-----------------------------------------------------------------------------------------------------------
Excess of distributions over net investment income (2,870,379)
-----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (79,524,482)
-----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 91,647,594
--------------
Net assets $4,556,354,740
==============
===============================================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$3,653,965,519 and 201,684,018 shares of beneficial interest outstanding) $18.12
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $19.02
-----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$666,938,785 and 36,831,895 shares of beneficial interest outstanding) $18.11
-----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$235,450,436 and 13,005,940 shares of beneficial interest outstanding) $18.10
</TABLE>
See accompanying Notes to Financial Statements.
32 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Investment Income
Interest $ 137,733,949
-------------
Expenses
Management fees--Note 4 10,135,446
Distribution and service plan
fees--Note 4:
Class A 2,661,677
Class B 2,886,604
Class C 1,030,622
Accounting service fees--Note 4 651,325
Transfer and shareholder servicing
agent fees--Note 4:
Class A 469,387
Class B 114,085
Class C 25,722
Trustees' compensation--Note 1 252,350
Shareholder reports 221,530
Registration and filing fees 204,178
Custodian fees and expenses 185,446
Expenses (continued)
Legal, auditing and other
professional fees $ 53,312
Other 152,654
Interest 556,757
-------------
Total expenses 19,601,095
Less expenses paid indirectly--Note 1 (130,447)
-------------
Net expenses 19,470,648
-------------
Net Investment Income 118,263,301
-------------
Realized and Unrealized Loss
Net realized loss on investments (10,161,375)
Net change in unrealized appreciation
or depreciation on investments (155,002,612)
-------------
Net realized and unrealized loss (165,163,987)
Net Decrease in Net Assets
Resulting from Operations $ (46,900,686)
=============
</TABLE>
See accompanying Notes to Financial Statements.
- -------------------------------------------------------------------------------
Statements of Changes in Net Assets
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
================================================================================================================================
<S> <C> <C>
Operations
Net investment income $ 118,263,301 $ 193,865,904
Net realized loss (10,161,375) (4,390,468)
Net change in unrealized appreciation or depreciation (155,002,612) 30,719,166
-------------- --------------
Net increase (decrease) in net assets resulting from operations (46,900,686) 220,194,602
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (102,302,684) (175,270,973)
Class B (13,780,093) (14,972,126)
Class C (5,024,532) (5,050,170)
- --------------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial interest
transactions--Note 2:
Class A 355,193,296 565,102,760
Class B 196,517,524 320,057,221
Class C 69,974,903 123,988,335
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets
Total increase 453,677,728 1,034,049,649
Beginning of period 4,102,677,012 3,068,627,363
-------------- --------------
End of period (including excess of distributions over net investment
income of $2,870,379 and $26,371, respectively) $4,556,354,740 $4,102,677,012
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
33 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Financial Highlights
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------
Six Months
Ended
June 30, 1999 Year Ended December 31,
(Unaudited) 1998 1997 1996 (a) 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $18.81 $18.67 $18.00 $18.18 $16.31 $19.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .50 1.04 1.10 (b) 1.10 (b) 1.10 (b) 1.13 (b)
Net realized and unrealized gain (loss) (.68) .15 .67 (.18) 1.86 (2.68)
------ ------ ------ ------ ------ ------
Total income (loss) from investment operations (.18) 1.19 1.77 .92 2.96 (1.55)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.51) (1.04) (1.10) (1.10) (1.09) (1.13)
Undistributed net investment income - prior year -- (.01) -- -- -- (.01)
------ ------ ------ ------ ------ ------
Total dividends and distributions to shareholders (.51) (1.05) (1.10) (1.10) (1.09) (1.14)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.12 $18.81 $18.67 $18.00 $18.18 $16.31
====== ====== ====== ====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value (c) (0.88)% 6.52% 10.20% 5.37% 18.58% (8.35)%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in millions) $3,654 $3,435 $2,848 $2,308 $2,145 $1,791
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $3,580 $3,161 $2,539 $2,191 $2,005 $1,847
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: (d)
Net investment income 5.57% 5.50% 5.96% 6.20% 6.25% 6.43%
Expenses 0.74%(e) 0.78% 0.76%(e) 0.82%(e) 0.82%(e) 0.84%
Expenses (excluding interest) (f) 0.72%(e) 0.75% 0.75%(e) 0.77%(e) 0.78%(e) 0.73%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (g) 8% 25% 5% 13% 15% 34%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
(b) Based on average shares outstanding for the period.
(c) Assumes a $1,000 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 for periods of less than one full year.
(e) The expense ratio reflects the effect of 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, 1999 were
$1,018,697,536 and $367,047,614, respectively.
(h) For the period from March 17, 1997 (inception of offering) to December
31, 1997.
See accompanying Notes to Financial Statements.
34 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Financial Highlights (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
Six Months
Ended
June 30, 1999 Year Ended December 31,
(Unaudited) 1998 1997 (h)
================================================================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $18.79 $18.65 $17.89
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .43 .89 .74(b)
Net realized and unrealized gain (loss) (.67) .14 .76
------ ------ ------
Total income (loss) from investment operations (.24) 1.03 1.50
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.44) (.89) (.74)
------ ------ ------
Total dividends and distributions to shareholders (.44) (.89) (.74)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.11 $18.79 $18.65
====== ====== ======
- --------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value (c) (1.25)% 5.61% 8.74%
- --------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in millions) $667 $494 $172
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $583 $329 $76
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: (d)
Net investment income 4.69% 4.57% 4.91%
Expenses 1.60%(e) 1.64% 1.59%(e)
Expenses (excluding interest) (f) 1.57%(e) 1.61% 1.58%(e)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (g) 8% 25% 5%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor
to the Fund.
(b) Based on average shares outstanding for the period.
(c) Assumes a $1,000 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 for periods of less than one full year.
(e) The expense ratio reflects the effect of 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, 1999 were
$1,018,697,536 and $367,047,614, respectively.
(h) For the period from March 17, 1997 (inception of offering) to December
31, 1997.
See accompanying Notes to Financial Statements.
35 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Financial Highlights (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
Six Months
Ended
June 30, 1999 Year Ended December 31,
(Unaudited) 1998 1997 (h)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $18.79 $18.66 $17.89
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .43 .89 .74(b)
Net realized and unrealized gain (loss) (.68) .13 .77
------ ------ ------
Total income (loss) from investment operations (.25) 1.02 1.51
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.44) (.89) (.74)
------ ------ ------
Total dividends and distributions to shareholders (.44) (.89) (.74)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.10 $18.79 $18.66
====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value (c) (1.30)% 5.56% 8.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in millions) $235 $174 $49
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $208 $111 $21
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: (d)
Net investment income 4.70% 4.57% 4.92%
Expenses 1.58%(e) 1.63% 1.58%(e)
Expenses (excluding interest) (f) 1.55%(e) 1.59% 1.57%(e)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (g) 8% 25% 5%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
(b) Based on average shares outstanding for the period.
(c) Assumes a $1,000 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 for periods of less than one full year.
(e) The expense ratio reflects the effect of 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, 1999 were
$1,018,697,536 and $367,047,614, respectively.
(h) For the period from March 17, 1997 (inception of offering) to December
31, 1997.
See accompanying Notes to Financial Statements.
36 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- -------------------------------------------------------------------------------
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
income exempt from federal income tax and New York State and New York City
personal income taxes as is consistent with its investment policies and prudent
investment management while seeking preservation of shareholders' capital. The
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, on investments up to $1 million. Class B and
Class C shares may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable
to that class and exclusive voting rights with respect to matters affecting
that class. Classes A, B and C have separate distribution and/or service plans.
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.
Securities Valuation. Portfolio securities are valued as of 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 after the transaction
date; however, the Fund may, from time to time, purchase 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 segregated 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, 1999, the Fund had entered into outstanding when-issued or forward
commitments of $111,525,000.
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. As of June 30, 1999, securities
with an aggregate market value of $3,826,384, representing 0.08% 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), 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. As of June 30, 1999, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $79,354,000, which expires between 2000 and 2007.
37 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- -------------------------------------------------------------------------------
Trustees' Compensation. In June, 1998, the Fund adopted a nonfunded retirement
plan for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during the years of service. During the
six months ended June 30, 1999, a provision of $160,789 was made for the Fund's
projected benefit obligations, resulting in an accumulated liability of
$319,865 as of June 30, 1999.
In January, 1995, the then existing Board of Trustees of the Fund adopted a
nonfunded retirement plan for its independent trustees. The retirement plan, as
amended and restated in October, 1995, provides that no independent trustee of
the Fund who is elected after September, 1995 may be eligible to receive
benefits thereunder. Upon retirement, eligible trustees receive annual payments
based upon their years of service. 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 expense, which is
included in trustees' compensation, amounted to $32,399 for the six months
ended June 30, 1999. Payments of $33,750 were made to retired trustees during
the six months ended June 30, 1999. At June 30, 1999, the Fund had recognized
an accumulated liability of $506,830.
Distributions to Shareholders. Distributions to shareholders, which are
determined in accordance with income tax regulations, are recorded on the
ex-dividend date.
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.
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 as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal bonds acquired after April 30, 1993, on
disposition or maturity, taxable ordinary income is recognized to the extent of
the lesser of gain or market discount that would have accrued over the holding
period. 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.
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.
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.
38 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- -------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 1999 Year Ended December 31, 1998
------------------------------ ----------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 26,650,062 $496,832,861 44,149,177 $828,290,736
Dividends reinvested 2,850,383 53,107,220 5,034,167 94,396,140
Redeemed (10,457,403) (194,746,785) (19,054,473) (357,584,116)
----------- ------------ ----------- ------------
Net increase 19,043,042 $355,193,296 30,128,871 $565,102,760
=========== ============ =========== ============
- ------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 11,364,429 $211,665,259 17,637,855 $330,613,878
Dividends reinvested 465,338 8,655,426 514,626 9,646,518
Redeemed (1,280,028) (23,803,161) (1,077,120) (20,203,175)
----------- ------------ ----------- ------------
Net increase 10,549,739 $196,517,524 17,075,361 $320,057,221
=========== ============ =========== ============
- ------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 4,558,157 $ 84,986,173 7,026,163 $131,632,053
Dividends reinvested 180,806 3,362,842 187,218 3,511,228
Redeemed (989,386) (18,374,112) (594,948) (11,154,946)
----------- ------------ ----------- ------------
Net increase 3,749,577 $ 69,974,903 6,618,433 $123,988,335
=========== ============ =========== ============
</TABLE>
3. Portfolio Information
As of June 30, 1999, net unrealized appreciation on investments of
$91,647,594 was composed of gross appreciation of $170,626,788, and gross
depreciation of $78,979,194.
4. Fees and Other Transactions with Affiliates
Management Fees. 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 average daily net assets, 0.52% on the next
$150 million, 0.47% on the next $1.75 billion of average daily net assets,
0.46% on the next $3 billion, and 0.45% of average daily net assets over $5
billion. The Fund's annualized management fee for the six months ended June
30, 1999 was 0.46% of average annual net assets for each class of shares.
Accounting Fees. 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,
1999, the Fund paid $651,325 to the Manager for accounting and pricing
services.
39 Rochester Fund Municipals
<PAGE>
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- -------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund and for
other Oppenheimer funds. 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, 1999, the Fund paid OFS $609,194.
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
<TABLE>
<CAPTION>
Aggregate Class A Front-End Commissions on Commissions on Commissions on
Front-End Sales Sales Charges Class A Shares Class B Shares Class C Shares
Charges on Retained by Advanced by Advanced by Advanced by
Six Months Ended Class A Shares Distributor Distributor(1) Distributor(1) Distributor(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
June 30, 1999 $9,986,338 $1,375,354 $1,586,721 $8,222,432 $825,065
</TABLE>
1.The Distributor advances commission payments to dealers for certain sales
of Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Six Months Ended Retained by Distributor Retained by Distributor Retained by Distributor
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
June 30, 1999 $50,093 $645,374 $48,737
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements
to the Distributor at a rate of up to 0.25% of average annual net assets of
Class A shares. Currently, the Board of Trustees has limited the rate to 0.15%
per year on Class A shares. The Distributor makes payments to plan recipients
quarterly at an annual rate not to exceed 0.15% of the average annual net
assets consisting of Class A shares of the Fund. For the six months ended
June 30, 1999, payments under the Class A Plan totaled $2,661,677, all of which
was paid by the Distributor to recipients. That included $17,448 paid to an
affiliate of the Distributor's parent company. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be
recovered in subsequent years.
Class B and Class C Distribution and Service Plan Fees. Under each plan,
service fees and distribution fees are computed on the average of the net asset
value of shares in the respective class, determined as of the close of each
regular business day during the period. The Class B and Class C plans provide
for the Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
40 Rochester Fund Municipals
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and from the Fund under the plans. If
either the Class B or the Class C plan is terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the asset-based sales
charge to the Distributor for distributing shares before the plan was
terminated. The plans allow for the carry-forward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended June 30,
1999 were as follows:
<TABLE>
<CAPTION>
Distributor's Aggregate Distributor's
Total Amount Unreimbursed Unreimbursed
Payments Retained by Expenses Expenses as % of
Class Under Plan Distributor Under Plan Net Assets of Class
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $2,886,604 $2,589,890 $27,845,266 4.18%
- --------------------------------------------------------------------------------------------------------------------
Class C Plan $1,030,622 $ 676,045 $ 3,047,515 1.29%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
5. Illiquid or Restricted Securities
As of June 30, 1999, 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 or
restricted securities subject to this limitation as of June 30, 1999 was
$436,539,009, which represents 9.58% of the Fund's net assets.
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 certain other
Oppenheimer funds in an unsecured line of credit with a bank, which permits
borrowings up to $100 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, 1999 was
$17,175.
The Fund had borrowings outstanding of $44,300,000 at June 30, 1999. For the
six months ended June 30, 1999, the average monthly loan balance was
$19,966,330 at an average interest rate of 5.462%. The maximum amount of
borrowings outstanding at any month-end was $46,000,000.
41 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
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Adele A. Campbell, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
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 of 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, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible loss of the principal
amount invested.
42 Rochester Fund Municipals
<PAGE>
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
Europe Fund
Stock Funds
Enterprise Fund
Discovery Fund
Quest Small Cap Value Fund
MidCap Fund
Capital Appreciation Fund
Quest Capital Value Fund
Growth Fund
Large Cap Growth Fund
Disciplined Value Fund
Quest Value Fund
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 Bond 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
Stock & Bond Funds
Main Street Growth & Income Fund(1)
Quest Opportunity Value Fund
Total Return Fund
Quest Balanced Value Fund
Capital Income Fund(2)
Multiple Strategies Fund
Disciplined Allocation Fund
Convertible Securities Fund
Money Market Funds(4)
Money Market Fund
Cash Reserves
1. On 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
2. On 4/1/99, the Fund's name was changed from "Equity Income Fund."
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.
For more complete information about the Oppenheimer funds listed, including
charges and operating expenses that apply to a continued investment in one of
the Funds, contact your financial advisor, call us at 1-800-525-7048 or visit
our website at www.oppenheimerfunds.com to obtain a copy of the Fund's
prospectus. Read it carefully before you invest or send money.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
43 Rochester Fund Municipals
<PAGE>
[This page intentionally left blank]
44 Rochester Fund Municipals
<PAGE>
*****
- --------------------------------------------------------------------------------
Rochester Fund Municipals (Class A shares) has received Morningstar's highest
(5-star) overall rating at June 30, 1999. For the 3-year, 5-year and 10-year
periods ended 6/30/99, the Fund's star ratings are five stars for all periods.
1591, 1191 and 366 municipal funds were rated for these periods,
respectively.(1)
1. Source: Morningstar, Inc., 6/30/99. Overall star ratings are based on a
weighted average of the Fund's 3-, 5- and 10-year ratings. 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 ratings reflect historical risk-adjusted total return as of June 30, 1999.
The ratings are subject to change every month. Ratings are based on past
performance, which is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-, five-, and ten-year average annual returns
in excess of 90-day Treasury bill returns after considering sales charges and
expenses, and a risk factor that reflects fund performance below 90-day T-bill
returns.
Information and services
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us
whenever you need assistance. So call us today, or visit our website--we're
here to help.
Internet
24-hr access to account information and transactions
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET 1-800-525-7048
Telephone Transactions
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET 1-800-852-8457
PhoneLink
24-hr automated information and automated transactions 1-800-533-3310
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-6pm 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
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services,
P.O. Box 5270, Denver, CO 80217-5270
RS0365.001.0699 August 30, 1999
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