OPPENHEIMER HIGH YIELD FUND
Supplement dated November 23, 1994 to
the Statement of Additional Information
dated October 25, 1994
The Statement of Additional Information is amended as follows:
1. The following text is added as the fourth paragraph under the heading
"Investment Policies and Strategies" on page 2:
-- Special Risks - High Yield Securities. As stated in the
Prospectus, the corporate debt securities in which the Fund will
principally invest may be in the lower rating categories. The Fund
may invest in securities rated as low as "C" by Moody's or "D" by
Standard & Poor's. The Manager will not rely solely on the ratings
assigned by rating services and may invest, without limitation, in
unrated securities which offer, in the opinion of the Manager,
comparable yields and risks as those rated securities in which the
Fund may invest.
Risks of high yield securities may include: (i) limited
liquidity and secondary market support, (ii) substantial market price
volatility resulting from changes in prevailing interest rates, (iii)
subordination to the prior claims of banks and other senior lenders,
(iv) the operation of mandatory sinking fund or call/redemption
provisions during periods of declining interest rates that could
cause the Fund to be able to reinvest premature redemption proceeds
only in lower yielding portfolio securities, (v) the possibility that
earnings of the issuer may be insufficient to meet its debt service,
and (vi) the issuer's low creditworthiness and potential for
insolvency during periods of rising interest rates and economic
downturn. As a result of the limited liquidity of high yield
securities, their prices have at times experienced significant and
rapid decline when a substantial number of holders decided to sell.
A decline is also likely in the high yield bond market during an
economic downturn. An economic downturn or an increase in interest
rates could severely disrupt the market for high yield bonds and
adversely affect the value of outstanding bonds and the ability of
the issuers to repay principal and interest. In addition, there have
been several Congressional attempts to limit the use of tax and other
advantages of high yield bonds which, if enacted, could adversely
affect the value of these securities and the Fund's net asset value.
2. The following text is added as the second paragraph under "How to
Sell Shares" on page 34:
-- Checkwriting. When a chec is presented to the Fund's bank for
for clearance, the Bank will ask the Fund to redeem a sufficient
number of full and fractional shares in the shareholder's account to
cover the amount of the check. This enables the shareholder to
continue receiving dividends on those shares until the check is
presented to the Fund. Checks may not be presented for payment at
the offices of the Bank or the Fund's Custodian. This
limitation does not affect the use of checks for the payment of bills
or to obtain cash at other banks. The Fund reserves the right to
amend, suspend or discontinue offering checkwriting privileges at any
time without prior notice.
3. The following text is added as the first and second paragraphs under
the heading "Dividends, Capital Gains and Taxes" on page 40:
Dividends and Distributions. Dividends will be payable on shares
held of record at the time of the previous determination of net asset
value, or as otherwise described in "How to Buy Shares." Daily dividends
on newly purchased shares will not be declared or paid until such time as
Federal Funds (funds credited to a member bank's account at the Federal
Reserve Bank) are available from the purchase payment for such shares.
Normally, purchase checks received from investors are converted to Federal
Funds on the next business day. Dividends will be declared on shares
repurchased by a dealer or broker for four business days following the
trade date (i.e., to and including the day prior to settlement
repurchase). If all shares in an account are redeemed, all dividends
accrued on shares of the same class in the account will be paid together
with the redemption proceeds.
Dividends, distributions and the proceeds of the redemption of Fund
shares represented by checks returned to the Transfer Agent by the
Postal Service as undeliverable will be invested in shares of
Oppenheimer Money Market Fund, Inc., as promptly as possible
after the return of such checks to the Transfer Agent, to enable the
investor to earn a return on otherwise idle funds.
November 23, 1994
