<PAGE>
Oppenheimer High Yield Fund
Semi-Annual Report December 31, 1993
[PHOTO]
[LOGO] OPPENHEIMERFUNDS
"We want to make each day better than the last.
"This Fund, with its high current income, has helped a lot of our wishes come
true."
<PAGE>
FUND FACTS
- -------------------------------------------------------------------------------
Seven Facts Every Shareholder Should Know About
Oppenheimer High Yield Fund
------------------------------------------------------------
1 The Fund seeks high current income, primarily from a
diversified portfolio of higher-yielding, lower-rated
fixed income securities.
------------------------------------------------------------
2 For the 30 days ended December 31, 1993, the Fund's
standardized yield was 8.32% for Class A shares and
7.79% for Class B shares.(1)
-----------------------------------------------------------
In this report:
3 Dividends paid per Class A share over the last 6
Answers to timely and 12 months totaled $0.729 and $1.509, respectively.
questions you should For Class B shares, the amount was $0.917 for the
ask your Fund's period since inception of the class on May 3, 1993.
managers.
------------------------------------------------------------
/ / How has the 4 The Fund's total return at net asset value for Class A
low-interest rate shares was 7.75% for the 6 months ended
environment affected December 31, 1993. For the 12-month period ended on
the Fund's returns? that date, that figure was 20.57%. For Class B shares,
total return at net asset value from inception of the
Class May 3, 1993 to December 31, 1993, was 11.14%.(2)
------------------------------------------------------------
/ / Have you made 5 The Fund's top five holdings on December 31, 1993,
any changes in the were:(3)
portfolio to reflect ARMCO, INC.
the improving U.S. ARGENTINA (REPUBLIC OF) PAR BONDS
economy? REVCO D.S., INC.
DI GIORGIO CORP.
/ / What's your RESTAURANT ENTERPRISES GROUP, INC.
outlook for the ------------------------------------------------------------
high yield sector 6 The Fund holds a **** ranking from MORNINGSTAR MUTUAL
in 1994? FUNDS.(4)
------------------------------------------------------------
7 "Our goal in managing the Fund is to combine
above-average returns with below-average risk. Instead
of chasing the highest yield, we look for opportunities
to buy solid value -- bonds issued by companies whose
financial condition is stronger than their credit
ratings and current yields suggest."
PORTFOLIO MANAGER, RALPH STELLMACHER, DECEMBER 31, 1993
1. Standardized yield is net investment income calculated on a yield to maturity
basis for the 30-day period ended 12/31/93, divided by the maximum offering
price for Class A shares at the end of the period, compounded semi-annually
and then annualized.
2. Based on the change in net asset value per Class A share from 6/30/93 and
12/31/92 to 12/31/93. The Fund's average annual total returns for Class A
shares, after deducting the current maximum sales charge of 4.75%, for the 1-,
5-, and 10-year periods ended 12/31/93 were 14.85%, 11.08%, and 10.61%,
respectively. Total return for Class B shares from 5/3/93 (inception of the
Class) and held until 12/31/93 was 6.14%. This reflects the change in value of a
hypothetical investment made on 5/3/93 and held until 12/31/93, with all
dividends reinvested and after applying the contingent deferred sales charge of
5%. All figures assume reinvestment of dividends. The Fund's maximum sales
charge rate on Class A shares was higher during a portion of the periods shown,
and actual investment results will be different as a result of that change.
3. The Fund's portfolio is subject to change.
4. Source: MORNINGSTAR MUTUAL FUNDS 12/31/93, an independent mutual fund
monitoring service which ranks funds in specific investment categories monthly
by a quantitative system that uses investment performance, risk assessment
factors and adjusts returns for fees and sales loads. One star is the lowest
ranking, five stars the highest. Of 2,160 funds ranked by Morningstar in that
period, 216 received a five-star ranking and 432 funds received a four-star
ranking. Risk assessment reflects fund performance relative to three-month
Treasury bill returns.
Past performance is not indicative of future results. An investment in the Fund
will fluctuate in value so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
2 Oppenheimer High Yield Fund
<PAGE>
---------------------------------------------------
REPORT TO SHAREHOLDERS
- --------------------------------------------------------------------------------
The past six months were an outstanding period for
the high yield bond market and an even better one
for Oppenheimer High Yield Fund. The Fund provided
Class A shareholders with a standardized yield of
8.32% for the 30-day period ended
December 31, 1993. For Class B shareholders, that
figure was 7.79%.(5)
As the chart shows, the Fund's total
return was above the average return provided by
all funds in Lipper Analytical Services' high
current yield category for the year ended
December 31, 1993.(6) More impressively, the Fund
produced this excellent return while maintaining a
relatively conservative average credit rating
of "B".
- -------------------------- The strengthening of the U.S. economy and
SUPERIOR TOTAL RETURN continued low inflation and interest rate levels
played a role in that performance, of course.
One-year period ended High yield bonds continued to be the best
12/31/93 performing sector of the fixed income market,
- -------------------------- with gains in bond prices more than offsetting
Oppenheimer High 20.57% modest declines in yields as interest rates moved
Yield Fund A(6) generally lower during the period. With the
(at net asset value) managers' focus on value investing--the selection
- -------------------------- of individual bonds whose yields and prices seem
Lipper high current 19.25% especially attractive when compared with other
yield funds average(7) bonds in the market--your Fund fared especially
well.
During the period, many high yield bond
issuers continued to take advantage of the
opportunity to call outstanding bonds and replace
them with lower-yielding issues. These bond calls
affected the investment income available to most
high yield funds, and, as we reported earlier, your
Fund was no exception. The Fund's managers,
however, used the bond call proceeds to take
advantage of many emerging investment
opportunities. This helped to further diversify the
Fund's portfolio, which can help to reduce risk.
We focused on bonds issued by companies
positioned to perform well as the economy improves.
For example, we profitably sold several broadcast
communications and media issues whose prices
appeared to have peaked. We used the proceeds to
buy cyclical bonds which are issued by companies
likely to benefit from improvements in consumer
spending.
Looking ahead, the Fund's prospects
appear to be bright. While we aren't expecting
interest rates to rise significantly in the months
ahead, declines appear to be behind us, and the
Fund should continue to provide an attractive high
current yield. At the same time, the economy is
strengthening and corporations continue to enhance
their balance sheets, making high yield issues
extremely attractive.
We appreciate the confidence you have
placed in Oppenheimer High Yield Fund, and we look
forward to continuing to help you meet your
financial goals.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
Chairman, Oppenheimer High Yield Fund President, Oppenheimer High Yield Fund
January 21, 1994
5. See footnote 1, page 2.
6. See footnote 2, page 2.
7. Source: Lipper Analytical Services, an independent mutual fund monitoring
service, 12/31/93. The Lipper total return average for the 1-year period ended
December 31, 1993 for 73 high current yield funds is 19.25%, including
reinvestment of dividends and capital gains distributions. This average is
provided for comparative purposes only. Oppenheimer High Yield Fund is
characterized by Lipper as a high current yield fund. Lipper performance does
not take sales charges into consideration.
3 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS December 31, 1993 (Unaudited)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
<C> <S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM CORPORATE BONDS AND NOTES--0.2%
- ----------------------------------------------------------------------------------------------------------------------------------
Citibank CD, 17.30%, 7/29/94(7) (Cost $3,020,225) 1,219,800,000(1) $ 2,846,673
- ----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM GOVERNMENT OBLIGATIONS--5.4%
- ----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas:
Series I, 3.1875%, 4/1/01(4)(6) $ 6,715,800 5,835,910
Series I, 4.25%, 4/1/01(4)(6) 21,003,500(1) 16,723,398
Series I, 3.1875%, 4/1/07(4)(6) 10,633,350 8,308,007
Series I, 4.25%, 4/1/07(4)(6) 1,853,250(1) 1,239,196
Bonds, Bonos del Tesoro, Series II, 3.50%, 9/1/97(4) 1,880,000 1,551,047
Past Due Interest Bonds, 4.1875%, 3/31/05(4) 15,000,000 13,181,250
---------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Interest Due and Unpaid Bonds,
8.75%, 1/1/01(4) 2,000,000 1,665,000
---------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, 11%, 6/1/03(8) 8,000,000,000(1) 5,320,092
---------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Bonds, 9%, 2/28/97(8) 600,000,000(1) 4,302,535
---------------------------------------------------------------------------------------------------------
Venezuela (Republic of):
Front-Loaded Interest Reduction Bonds, Series B, 6%, 3/31/07(4) 5,000,000 3,825,000
Discount Bonds, Series W-A, 4.1875%, 3/31/20(4) 5,000,000 3,775,000
---------------
Total Long-Term Government Obligations (Cost $57,690,312) 65,726,435
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--0.7%
- ----------------------------------------------------------------------------------------------------------------------------------
San Joaquin Hills, California Transportation Corridor
Agency Toll Road Capital Appreciation Revenue Bonds, Jr. Lien, 0%:
1/1/12 15,000,000 3,445,530
1/1/28 74,000,000 4,465,529
---------------
Total Municipal Bonds and Notes (Cost $6,921,962) 7,911,059
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--87.7%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--8.9%
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.6% Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 9,000,000 9,652,500
---------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc.:
0%/10.25% Gtd. Sr. Sec. Disc. Nts., 7/15/01(3) 3,000,000 2,576,250
10.75% Sr. Gtd. Sub. Nts., 10/15/03 1,000,000 1,057,500
----------------------------------------------------------------------------------------------------------
Rexene Corp.:
12% Fst. Priority Nts., 11/15/99 3,000,000 2,820,000
10% 2nd Priority Nts., 11/15/02 2,000,000 1,584,440
----------------------------------------------------------------------------------------------------------
Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05(3) 3,750,000 2,193,750
---------------
19,884,440
- ----------------------------------------------------------------------------------------------------------------------------------
METALS--3.0% Armco, Inc., 8.50% SF Debs., 9/1/01 26,985,000 26,310,375
----------------------------------------------------------------------------------------------------------
Stelco, Inc.:
9.75% Debs., 4/1/95(8) 2,000,000(1) 1,499,289
10.25% Debs., 4/30/96(8) 3,700,000(1) 2,784,164
10.40% Debs., 11/30/09(8) 7,700,000(1) 5,685,024
---------------
36,278,852
</TABLE>
4 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PAPER AND FOREST Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02 $3,200,000 $ 2,784,000
PRODUCTS--4.3% ----------------------------------------------------------------------------------------------------------
Gaylord Container Corp.:
11.50% Sr. Nts., 5/15/01 5,450,000 5,831,500
0%/12.75% Sr. Sub. Disc. Debs., 5/15/05(3) 10,550,000 8,730,125
----------------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 12,550,000 13,020,625
----------------------------------------------------------------------------------------------------------
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 9,700,000 9,736,375
----------------------------------------------------------------------------------------------------------
Riverwood International Corp., 11.25% Sr. Sub. Nts., 6/15/02 9,000,000 9,855,000
----------------------------------------------------------------------------------------------------------
Stone Savannah River Pulp & Paper Corp., 14.125% Sr. Sub. Nts., 12/15/00 1,850,000 1,507,750
-----------------
51,465,375
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--33.7%
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--2.1% Envirotest Systems Corp., 9.625% Sr. Sub. Nts., 4/1/03 11,625,000 12,148,125
----------------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp.:
11.25% Sr. Nts., 10/1/02 7,950,000 8,705,250
11.875% Sr. Sub. Debs., 10/1/04 4,000,000 4,450,000
------------------
25,303,375
- ----------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION SUPPLIES Baldwin Co., 10.375% Sr. Nts., 8/1/03(5) 2,500,000 2,412,500
AND DEVELOPMENT--1.6% ----------------------------------------------------------------------------------------------------------
Trizec Corp. Ltd.:
11.125%, Sr. Debs., 6/18/96(2)(8) 4,000,000(1) 2,182,844
10% Debs., 10/1/96(2)(8) 4,350,000(1) 2,332,772
10.25% Sr. Debs., 6/22/99(2)(8) 2,500,000(1) 1,383,160
----------------------------------------------------------------------------------------------------------
USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 10,650,000 10,969,500
------------------
19,280,776
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER GOODS AND Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 11,136,000 11,414,400
SERVICES--10.3% ----------------------------------------------------------------------------------------------------------
Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98 17,050,000 11,039,875
----------------------------------------------------------------------------------------------------------
Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01 10,706,000 11,027,180
----------------------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series A, 10/1/03(5) 11,250,000 11,531,250
----------------------------------------------------------------------------------------------------------
Genesco, Inc., 10.375% Sr. Nts., 2/1/03 7,000,000 7,288,750
----------------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 10,000,000 11,200,000
----------------------------------------------------------------------------------------------------------
Insilco Corp., 10.375% Sr. Sec. Nts., 7/1/97 10,950,000 11,032,125
----------------------------------------------------------------------------------------------------------
Interco, Inc.:
9% Sec. Nts., Series B, 6/1/04 4,874,000 4,886,185
9% Sec. Nts., Series B, 6/1/04(5) 10,500,000 10,224,375
----------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/98(6) (9) 5,955,189 267,984
----------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts., 11/1/03 6,500,000 5,980,000
----------------------------------------------------------------------------------------------------------
Revlon, Inc., 10.875% Debs., 7/15/10 5,150,000 5,278,750
----------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., Series B, 3/15/98 3,250,000 1,673,750
----------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 11,000,000 12,100,000
----------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc., 8.75% Sr. Nts., 12/15/01 9,000,000 9,112,500
--------------------
124,057,124
</TABLE>
5 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENTERTAINMENT--7.5% Arizona Charlie's, Inc., 12% Fst. Mort. Nts., Series A, 11/15/00(5) $2,750,000 $2,750,000
----------------------------------------------------------------------------------------------------------
Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 5,400,000 5,697,000
----------------------------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 7,400,000 7,548,000
----------------------------------------------------------------------------------------------------------
Aztar Mortgage Funding, Inc., 13.50% Gtd. Fst. Mort. Nts., 9/15/96 7,900,000 8,334,500
----------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% Fst. Mort. Nts., Series A, 11/15/00(5) 2,000,000 1,780,000
----------------------------------------------------------------------------------------------------------
Casino America, Inc., Units 4,000,000 4,140,000
----------------------------------------------------------------------------------------------------------
GNF Corp., 10.625% Gtd. Fst. Mort. Nts., Series B, 4/1/03 6,000,000 5,790,000
----------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc.:
0% Sr. Sec. Nts., 6/30/95 2,452 2,415
12.25% Sr. Sub. Nts., Series A, 6/30/02 12,075,200 13,222,344
----------------------------------------------------------------------------------------------------------
MGM Grand Hotels Financial Corp.:
11.75% Fst. Mort. Nts., Series A, 5/1/99 2,500,000 2,825,000
12% Fst. Mort. Nts., 5/1/02 3,500,000 4,068,750
----------------------------------------------------------------------------------------------------------
Marvel (Parent) Holdings, Inc., 0% Sr. Sec. Disc. Nts., 4/15/98 1,250,000 821,875
----------------------------------------------------------------------------------------------------------
Marvel Holdings, Inc., 0% Sr. Sec. Nts., Series B, 4/15/98 3,000,000 1,972,500
----------------------------------------------------------------------------------------------------------
Resorts International, Inc., 0% Sec. Fst. Mort.
Non-Recourse Pass-Through Nts., 6/30/00 5,185,000 4,692,425
----------------------------------------------------------------------------------------------------------
Santa Fe Hotel, Inc., Units 1,000,000 965,000
----------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 12,050,000 12,230,750
----------------------------------------------------------------------------------------------------------
Treasure Bay Gaming & Resorts, Inc., Units(5) 3,375,000 3,425,625
----------------------------------------------------------------------------------------------------------
Trump Castle Funding, Inc., Units 12,126,175 9,976,131
---------------
90,242,315
- ----------------------------------------------------------------------------------------------------------------------------------
MEDIA--4.1% Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/13(5) 8,000,000 8,360,000
----------------------------------------------------------------------------------------------------------
Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 2,500,000 2,550,000
----------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 7,550,000 8,021,875
----------------------------------------------------------------------------------------------------------
News America Holdings, Inc.:
8.625% Sr. Nts., 2/1/03 10,000,000 11,037,500
10.125% Gtd. Sr. Debs., 10/15/12 2,000,000 2,427,500
---------------------------------------------------------------------------------------------------------
SCI Television, Inc.:
11% Sr. Sec. Nts., 6/30/05 5,200,000 5,408,000
Bank Participation Interest Agreements:
Series 1, 9/30/94(2)(5) 7,500,000 7,312,500
Series 2, 9/30/94(2)(5) 4,676,277 4,559,370
----------------
49,676,745
- ----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE
DEVELOPMENT--1.1% Hees International Corp., 10% Sr. Nts., 8/23/99 5,000,000(1) 3,247,830
----------------------------------------------------------------------------------------------------------
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 5,700,000 6,027,750
----------------------------------------------------------------------------------------------------------
UDC Homes, Inc., 11.75% Sr. Nts., 4/30/03 4,000,000 4,250,000
----------------
13,525,580
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL--7.0% AnnTaylor, Inc., 0%/14.375% Sr. Sub. Disc. Nts., 7/15/99(3) 7,300,000 7,811,000
----------------------------------------------------------------------------------------------------------
Apparel Retailers, Inc., 0%/12.75% Sr. Disc. Debs.,
Series A, 8/15/05(3)(5) 2,000,000 1,150,000
----------------------------------------------------------------------------------------------------------
Brylane LP/ Brylane Capital Corp., 10% Sr. Sub. Nts., 9/1/03(5) 12,100,000 12,523,500
----------------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 9,450,000 9,733,500
----------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Units(5) 7,700,000 7,892,500
</TABLE>
6 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
RETAIL Finlay Enterprises, Inc., 0%/12% Sr. Disc. Debs., 5/1/05(3) $5,300,000 $3,339,000
(CONTINUED) --------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 8,475,000 8,771,625
--------------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc., 11.50% Sr. Sec. Disc.
Nts., 8/15/03 12,000,000 6,300,000
----------------------------------------------------------------------------------------------------------
Musicland Group, Inc. (The), 9% Sr. Sub. Nts., 6/15/03 10,500,000 10,696,875
----------------------------------------------------------------------------------------------------------
Parisian, Inc., 9.875% Sr. Sub. Nts., 7/15/03 4,250,000 4,207,500
----------------------------------------------------------------------------------------------------------
Pay 'N Pak Stores, Inc., 13.50% Sr. Sub. Debs., 6/1/98(2) 7,700,000 77,000
----------------------------------------------------------------------------------------------------------
Speciality Retailers, Inc., 10% Sr. Nts., Series A, 8/15/00(5) 6,500,000 6,662,500
----------------------------------------------------------------------------------------------------------
Zale Corp.:
11.90% Sr. Debs., 6/1/95 1,000,000 415,000
12.20% Sr. Nts., 6/1/97 3,000,000 1,245,000
13.25% Sr. Debs., 4/15/01 4,750,000 1,923,750
----------------------------------------------------------------------------------------------------------
Zale Delaware Corp., 11% Sr. Sec. Nts., 6/1/00 2,000,000 2,070,000
----------------
84,818,750
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--11.7%
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD--3.9% American Restaurant Group, Inc.:
12% Gtd. Sr. Sec. Nts., 9/15/98 6,800,000 6,783,000
12% Gtd. Sr. Sec. Nts., 9/15/98(5) 2,000,000 2,000,000
----------------------------------------------------------------------------------------------------------
ARA Group, Inc. (The):
12% Sub. Debs., 4/15/00 1,750,000 1,962,188
12.50% Sub. Debs., 7/15/01 8,800,000 9,592,000
----------------------------------------------------------------------------------------------------------
Restaurant Enterprises Group, Inc.:
12.25% Sr. Sub. Nts., 12/15/96(2) 100,000 98,500
12.75% Sub. Nts., 12/15/98(2) 20,550,000 13,563,000
----------------------------------------------------------------------------------------------------------
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00 13,100,000 13,493,000
----------------
47,491,688
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD AND DRUG Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05(6) 6,725,000 6,743,917
DISTRIBUTION--4.8% ----------------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 12,500,000 13,593,750
----------------------------------------------------------------------------------------------------------
Duane Reade, 12% Sr. Nts., Series B, 9/15/02 3,250,000 3,526,250
----------------------------------------------------------------------------------------------------------
Grand Union Co., 11.25% Sr. Nts., 7/15/00 8,700,000 9,178,500
----------------------------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 10,300,000 10,145,500
----------------------------------------------------------------------------------------------------------
Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 13,800,000 14,697,000
-----------------
57,884,917
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE--3.0% Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02 2,000,000 2,052,500
----------------------------------------------------------------------------------------------------------
Epic Healthcare Group, Inc., 10.875% Sr. Sub. Nts., 6/1/03 6,500,000 7,003,750
----------------------------------------------------------------------------------------------------------
Epic Holdings, Inc., 0%/12% Sr. Def. Cpn. Nts., 3/15/02(3) 9,000,000 6,570,000
----------------------------------------------------------------------------------------------------------
Healthtrust, Inc.--The Hospital Co., 10.75% Sub. Nts., 5/1/02 6,900,000 7,745,250
----------------------------------------------------------------------------------------------------------
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 6,790,000 7,638,750
----------------------------------------------------------------------------------------------------------
Quorum Health Group, Inc., 11.875% Sr. Sub. Nts., 12/15/02 4,250,000 4,791,875
----------------
35,802,125
</TABLE>
7 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY--9.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Addington Resources, Inc., 12% Sr. Sec. Nts., 7/1/95 $7,225,000 $7,550,125
----------------------------------------------------------------------------------------------------------
Bridge Oil (USA), Inc., 9.50% Sr. Nts., 8/15/00 11,500,000 11,730,000
----------------------------------------------------------------------------------------------------------
HS Resources, Inc., 9.875% Sr. Sub. Nts., 12/1/03 3,250,000 3,294,687
----------------------------------------------------------------------------------------------------------
Maxus Energy Corp.:
9.875% Nts., 10/15/02 2,200,000 2,205,500
8.50% Debs., 4/1/08 5,000,000 4,750,000
11.50% Debs., 11/15/15 7,700,000 8,123,500
----------------------------------------------------------------------------------------------------------
Mesa Capital Corp.:
0%/12.75% Disc. Nts., 6/30/96(3) 1,000 797
0%/12.75% Cv. Disc. Nts., 6/30/98(3) 774,000 1,104,885
0%/12.75% Sec. Disc. Nts., 6/30/98(3) 15,516,000 13,188,600
----------------------------------------------------------------------------------------------------------
Nuevo Energy Co., 12.50% Sr. Sub. Nts., 6/15/02 3,000,000 3,315,000
----------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 8,765,000 10,211,225
----------------------------------------------------------------------------------------------------------
Presidio Oil Co.:
13.25% Sr. Sub. Gas Indexed Nts., 2/15/99(4) (5) 7,000,000 7,420,000
11.50% Sr. Sec. Nts., Series A, 9/15/00 6,162,000 6,485,505
----------------------------------------------------------------------------------------------------------
Transco Energy Co.:
11.25% Sr. Nts., 7/1/99 4,400,000 4,999,500
9.375% Debs., 8/15/01 7,000,000 7,612,500
----------------------------------------------------------------------------------------------------------
Triton Energy Corp., 0% Sr. Sub. Disc. Nts., 11/1/97 8,600,000 6,020,000
----------------------------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 9,925,000 10,594,938
-----------------
108,606,762
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--2.9%
- ----------------------------------------------------------------------------------------------------------------------------------
Acme Holdings, Inc., 11.75% Sr. Nts., 6/1/00 1,100,000 973,500
----------------------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC International Finance BV,
8% Gtd. Matador Bonds, 8/5/03(5) 1,500,000 1,545,000
----------------------------------------------------------------------------------------------------------
Banco do Nordeste do Brasil, 10.375% Sr. Debs., 11/6/95(5) 2,050,000 2,080,750
----------------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(5) 8,475,000 8,856,375
----------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02(5) 3,887,276 4,359,580
----------------------------------------------------------------------------------------------------------
GSPI Corp., 10.15% Fst. Mort. Bonds, 6/24/10(5) 987,885 1,205,220
----------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03 8,802,000 8,251,875
----------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(5) 8,000,000 8,250,000
----------------
35,522,300
</TABLE>
8 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL--9.7%
- ----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS--3.0% Envirodyne Industries, Inc., 0%/14.50% Sr. Disc. Nts., 8/1/97(2) (3) $1,000,000 $888,750
----------------------------------------------------------------------------------------------------------
Hoover Group, Inc., 13% Sr. Sub. Debs., 11/15/98 7,730,000 7,942,575
----------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc.:
10.50% Sr. Sub. Nts., 6/15/02 500,000 549,375
10% Sr. Sub. Nts., 8/1/02 4,700,000 5,011,375
11% Sr. Debs., 12/1/03 3,305,000 3,809,012
----------------------------------------------------------------------------------------------------------
Sea Containers Ltd.:
9.50% Sr. Nts., 7/1/03 4,250,000 4,276,563
12.50% Sr. Sub. Debs., Series A, 12/1/04 3,000,000 3,393,750
12.50% Sr. Sub. Debs., Series B, 12/1/04 3,050,000 3,370,250
----------------------------------------------------------------------------------------------------------
Stone Container Corp.:
12.625% Sr. Nts., 7/15/98 5,000,000 5,150,000
10.75% Sr. Sub. Nts., 4/1/02 2,500,000 2,253,125
----------------
36,644,775
- ----------------------------------------------------------------------------------------------------------------------------------
GENERAL INDUSTRIAL--3.8%
EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 12,250,000 11,943,750
----------------------------------------------------------------------------------------------------------
Imo Industries, Inc.:
12.25% Sr. Sub. Debs., 8/15/97 2,725,000 2,759,062
12% Sr. Sub. Debs., 11/1/01 7,250,000 7,367,813
----------------------------------------------------------------------------------------------------------
Mosler, Inc., 11% Sr. Nts., Series A, 4/15/03 10,750,000 9,728,750
----------------------------------------------------------------------------------------------------------
Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02(5) 3,000,000 3,090,000
----------------------------------------------------------------------------------------------------------
Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 6,000,000 6,900,000
----------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02(2)(5) 8,775,000 3,334,500
----------------
45,123,875
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.9% Greyhound Lines, Inc., 10% Sr. Nts., 7/31/01 11,705,000 12,143,937
----------------------------------------------------------------------------------------------------------
Southern Pacific Transportation Co., 10.50% Sr. Sec. Nts.,
Series B, 7/1/99 6,600,000 7,334,250
----------------------------------------------------------------------------------------------------------
Tiphook Financial Corp., 8% Gtd. Nts., 3/15/00 4,500,000 3,690,000
----------------------------------------------------------------------------------------------------------
Transportacion Maritima Mexicana SA:
8.50% Nts., 10/15/00 2,000,000 2,057,500
9.25% Nts., 5/15/03 2,000,000 2,090,000
----------------------------------------------------------------------------------------------------------
Transtar Holdings LP, 0%/13.375% Sr. Disc. Nts., Series A, 12/15/08(3) 12,765,000 6,350,588
----------------------------------------------------------------------------------------------------------
Trism, Inc., 10.75% Gtd. Sr. Sub. Nts., 12/15/00 1,750,000 1,802,500
---------------
35,468,775
- ----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--10.7%
- ----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.4% Delta Airlines, Inc., 3.23% Cv. Sub. Nts., 6/15/03 3,600,000 2,974,500
----------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 15,250,000 11,723,437
----------------------------------------------------------------------------------------------------------
GPA Netherlands BV, 8.50% Medium-Term Nts., 2/10/97(5) 2,000,000 1,655,000
----------------
16,352,937
</TABLE>
9 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CABLE TELEVISION--4.6% Cablevision Systems Corp.:
14% Sr. Sub. Reset Debs., 11/15/03 $5,000,000 $5,231,250
10.75% Sr. Sub. Debs., 4/1/04 7,800,000 8,755,500
9.875% Sr. Sub. Debs., 2/15/13 3,000,000 3,502,500
----------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc.:
8.875% Sr. Debs., 9/15/05 2,000,000 2,155,000
11% Sr. Sub. Debs., 6/1/07 1,000,000 1,177,500
9.50% Sr. Debs., 8/1/13 6,750,000 7,560,000
----------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp.,
0%/9.50% Sr. Sec. Nts., 11/1/03(3)(5) 10,250,000 10,019,375
----------------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts.,
10/15/03(3) 14,150,000 9,056,000
----------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 9.625% Sr. Sec. 2nd Priority Nts., 8/1/02 2,000,000 2,205,000
----------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 5,000,000 6,100,000
----------------
55,762,125
- ----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS--2.7% Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 5,000,000 4,975,000
----------------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr. Sub.
Disc. Nts., 10/1/00(3)(5) 10,456,000 7,580,600
----------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
9.75% Sr. Sec. Nts., 8/1/00 2,500,000 2,656,250
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(3) 18,100,000 12,127,000
----------------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 10.875% Sr. Debs., 4/15/04 4,200,000 4,704,000
---------------
32,042,850
- ----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--2.0% Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs.,
Series B, 3/1/05(3) 23,850,000 13,236,750
----------------------------------------------------------------------------------------------------------
Berg Electronics, Inc., 11.375% Sr. Sub. Debs., 5/1/03 2,900,000 3,045,000
----------------------------------------------------------------------------------------------------------
Businessland, Inc., 5.50% Sub. Debs., 3/1/07 3,850,000 1,520,750
----------------------------------------------------------------------------------------------------------
Unisys Corp., 9.75% Sr. Nts., 9/15/16 6,650,000 6,783,000
-----------------
24,585,500
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.1% Consolidated Hydro, Inc., 0%/12% Sr. Disc. Nts., 7/15/03(3)(5) 11,000,000 6,545,000
----------------------------------------------------------------------------------------------------------
EUA Power Corp.:
17.50% Sec. Debs., Series C, 11/15/92(2) 1,107,000 282,285
17.50% Mort. Nts., Series B, 5/15/93(2) 2,960,000 784,400
----------------------------------------------------------------------------------------------------------
Subic Power Corp., 0% Sr. Sec. Nts., 12/15/08(5) 6,000,000 6,120,000
----------------
13,731,685
----------------
Total Corporate Bonds and Notes (Cost $1,022,910,922) 1,059,553,646
- ----------------------------------------------------------------------------------------------------------------------------------
DERIVATIVE SECURITIES--0.2%
- ----------------------------------------------------------------------------------------------------------------------------------
Bankers Trust New York Corp., S & P 500 Equity-Linked Nts., 2/11/94(5) 1,419,452 292,123
----------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 3.20% S & P 500
Index-Linked Nts., 2/9/94(5) 2,000,000 2,171,600
----------------
Total Derivative Securities (Cost $3,919,452) 2,463,723
</TABLE>
10 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--1.2%
- ----------------------------------------------------------------------------------------------------------------------------------
Digicon, Inc.(2) 14,790 $40,673
----------------------------------------------------------------------------------------------------------
ECM Fund L.P.I.(5) 1,350 1,350,000
----------------------------------------------------------------------------------------------------------
Empire of Carolina, Inc.(2) 273 1,774
----------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., Cl. 1(2)(5) 21,955 477,521
----------------------------------------------------------------------------------------------------------
Harvard Industries, Inc., Cl. B 28,600 176,962
----------------------------------------------------------------------------------------------------------
Hillsborough Holdings Corp.(2)(5) 34,280 343
----------------------------------------------------------------------------------------------------------
Host Marriott Corp. 10,678 97,437
----------------------------------------------------------------------------------------------------------
Insilco Corp.(2) 160,901 2,172,164
----------------------------------------------------------------------------------------------------------
Leaseway Transportation Corp.(2) 254,285 4,322,845
----------------------------------------------------------------------------------------------------------
LFC Holding Corp.(2) 29,092 487,291
----------------------------------------------------------------------------------------------------------
LTV Corp.(2) 9 145
----------------------------------------------------------------------------------------------------------
Marriott International, Inc. 10,678 309,662
----------------------------------------------------------------------------------------------------------
Petrolane, Inc., Cl. B(9) 480,690 4,866,986
----------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.(2)(9) 1,688,400 52,763
----------------------------------------------------------------------------------------------------------
Resorts International, Inc.(2) 282,691 459,373
-----------------
Total Common Stocks (Cost $15,550,009) 14,815,939
- ----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--2.1%
- ----------------------------------------------------------------------------------------------------------------------------------
AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A(5) 60,300 3,165,750
----------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., Cl. A(2) 6,400 96,000
----------------------------------------------------------------------------------------------------------
Harvard Industries, Inc., $14.25 Exch.(6) 343,994 8,083,859
----------------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exch., Series B 11,945 1,221,390
----------------------------------------------------------------------------------------------------------
Navistar International Corp., $6.00 Cv., Series G 21,200 1,134,200
----------------------------------------------------------------------------------------------------------
Trizec Ltd., Sr. Cl. B, Series 3(2) 205,000 263,225
----------------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 233,400 11,290,725
----------------
Total Preferred Stocks (Cost $22,898,348) 25,255,149
- ----------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.5%
- ----------------------------------------------------------------------------------------------------------------------------------
ALC Communications Corp. Wts., Exp. 12/95 275,000 2,750
----------------------------------------------------------------------------------------------------------
Amerigas, Inc. Rts. 23,175 289,687
----------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc. Excess Cash Flow Payment Ctfs. 326,800 3,268
----------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Litigation Trust Units 1,045,990 10,460
----------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00(5) 125,000 312,500
----------------------------------------------------------------------------------------------------------
Digicon, Inc. Wts., Exp. 7/96 4,972 1,864
----------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 763,878 2,769,058
----------------------------------------------------------------------------------------------------------
Hollywood Casino Corp. Wts., Exp. 4/98 9,524 2,019,088
----------------------------------------------------------------------------------------------------------
Interco, Inc. Wts., Series 1, Exp. 8/99 19,474 29,211
</TABLE>
11 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
UNITS SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
RIGHTS, WARRANTS Protection One, Inc. Wts., Exp. 11/03 182,000 $584,220
AND CERTIFICATES ----------------------------------------------------------------------------------------------------------
(CONTINUED) Purity Supreme, Inc. Wts., Exp. 8/97 22,525 451
----------------------------------------------------------------------------------------------------------
Santa Fe, Inc. Wts., Exp. 12/96 100 70,750
----------------------------------------------------------------------------------------------------------
Southland Corp. Wts., Exp. 3/96 5,800 29,000
----------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Wts., Exp. 1/98(2) (5) 87,750 878
----------------------------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 63,583 108,091
-------------
Total Rights, Warrants and Certificates (Cost $3,983,754) 6,231,276
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,136,894,984) 98.0% 1,184,803,900
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.0 23,743,207
------------ -----------------
NET ASSETS 100.0% $1,208,547,107
------------ ------------------
------------ ------------------
1. Face amount is reported in foreign currency.
2. Non-income producing security.
3. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date.
4. Represents the current interest rate for a variable rate security.
5. Restricted security--See Note 5 of Notes to Financial Statements.
6. Interest or dividend is paid in kind.
7. Indexed instrument for which the principal amount due at maturity is affected by the relative value of a
foreign security.
8. Securities with an aggregate market value of $25,489,880 are segregated to collateralize outstanding
forward foreign currency exchange contracts. See Note 6 of Notes to Financial Statements.
9. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer and is or
was an affiliate, as defined in the Investment Company Act of 1940, at or during the six months ended
December 31, 1993. The aggregate fair value of all securities of affiliated companies as of December 31,
1993 amounted to $5,187,733. Transactions during the period in which the issuer was an affiliate are as
follows:
</TABLE>
<TABLE>
<CAPTION>
BALANCE JUNE 30, 1993 GROSS ADDITIONS BALANCE DECEMBER 31, 1993
------------------------- -------------------------- --------------------------- INTEREST
STOCKS SHARES/FACE COST SHARES/FACE COST SHARES/FACE COST INCOME
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Pope, Evans & Robbins, Inc. 1,688,400 $1,114,384 -- $ -- 1,688,400 $ 1,114,384 $ --
- ----------------------------------------------------------------------------------------------------------------------------------
Petrolane, Inc., Cl. B -- -- 480,690 4,806,900 480,690 4,806,900 --
- ----------------------------------------------------------------------------------------------------------------------------------
BONDS AND NOTES
- ----------------------------------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.,
7% Sr. Nts., 5/15/98 $5,743,583 4,046,595 $211,606 191,764 $5,955,189 4,238,359 9,171(6)
---------- ---------- ----------- ----------
$5,160,979 $4,998,664 $10,159,643 $9,171
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES December 31, 1993 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ASSETS Investments, at value (cost $1,136,894,984)--see accompanying statement $1,184,803,900
-------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 6 88,625
-------------------------------------------------------------------------------------------------------------------
Cash 1,447,658
-------------------------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 25,916,703
Investments sold 2,815,119
Shares of beneficial interest sold 2,657,727
-------------------------------------------------------------------------------------------------------------------
Other 141,288
------------------
Total assets 1,217,871,020
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Dividends 5,366,071
Shares of beneficial interest redeemed 3,271,398
Distribution assistance--Note 4 381,689
Other 304,755
-----------------
Total liabilities 9,323,913
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,208,547,107
------------------
------------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $1,321,526,280
NET ASSETS -------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 11,953,242
-------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment transactions (172,920,118)
-------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies--Note 3 47,987,703
-------------------------------------------------------------------------------------------------------------------
Net assets $1,208,547,107
------------------
------------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets of $1,155,494,221 and
79,679,714 shares of beneficial interest outstanding) $14.50
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $15.22
-----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$53,052,886 and 3,669,728 shares of beneficial interest outstanding) $14.46
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1993 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INVESTMENT INCOME Interest:
Unaffiliated companies $65,275,143
Affiliated companies 9,171
Dividends 2,135,126
-------------------
Total income 67,419,440
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 3,872,623
----------------------------------------------------------------------------------------------------
Distribution assistance:
Class A--Note 4 726,697
Class B--Note 4 177,951
----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 505,541
----------------------------------------------------------------------------------------------------
Shareholder reports 161,843
----------------------------------------------------------------------------------------------------
Custodian fees and expenses 119,914
----------------------------------------------------------------------------------------------------
Legal and auditing fees 32,710
----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 20,792
----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 1,816
Class B 16,262
----------------------------------------------------------------------------------------------------
Other 21,167
--------------
Total expenses 5,657,316
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 61,762,124
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) from:
GAIN (LOSS) ON INVESTMENTS Investments 11,486,692
AND FOREIGN CURRENCY Foreign currency transactions (50,766)
TRANSACTIONS ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 15,305,863
Translation of assets and liabilities denominated in foreign currencies (800,680)
---------------
Net realized and unrealized gain on investments and foreign currency transactions 25,941,109
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $87,703,233
---------------
---------------
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1993 JUNE 30,
(UNAUDITED) 1993
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 61,762,124 $ 113,492,302
-----------------------------------------------------------------------------------------------------
Net realized gain on investments and foreign currency transactions 11,435,926 21,219,657
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments and
translation of assets and liabilities denominated in foreign currencies 14,505,183 8,066,722
------------ -------------
Net increase in net assets resulting from operations 87,703,233 142,778,681
- ----------------------------------------------------------------------------------------------------------------------------------
EQUALIZATION Net change (96,177) 2,351,565
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS Class A ($.729 and $1.56 per share, respectively) (57,848,151) (111,069,977)
FROM NET INVESTMENT INCOME -----------------------------------------------------------------------------------------------------
Class B ($.670 and $.247 per share, respectively) (1,575,586) (80,250)
- ----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from Class A beneficial interest
TRANSACTIONS transactions--Note 2 9,254,965 182,608,161
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B beneficial interest
transactions--Note 2 41,559,071 10,399,783
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 78,997,355 226,987,963
-----------------------------------------------------------------------------------------------------
Beginning of period 1,129,549,752 902,561,789
------------- ---------------
End of period (including undistributed net investment income
of $11,953,242 and $12,282,453, respectively) $1,208,547,107 $1,129,549,752
-------------- ----------------
-------------- ----------------
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
CLASS A CLASS B
--------------------------------------------------------------- --------------------------
SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED
DEC. 31, 1993 YEAR ENDED JUNE 30, DEC. 31, 1993 JUNE 30,
(UNAUDITED) 1993 1992 1991 1990 1989 (UNAUDITED) 1993(1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.16 $13.76 $13.08 $13.60 $15.42 $16.00 $14.12 $13.87
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .72 1.60 1.79 1.91 1.89 2.02 .70 .23
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .35 .36 .68 (.51) (1.79) (.68) .31 .27
------------ -------- ------- ------- ------ ------ ------ ------
Total income from
investment operations 1.07 1.96 2.47 1.40 .10 1.34 1.01 .50
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (.73) (1.56) (1.79) (1.92) (1.92) (1.92) (.67) (.25)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.50 $14.16 $13.76 $13.08 $13.60 $15.42 $14.46 $14.12
---------- -------- ------ ------ ------ ------ ------ --------
---------- -------- ------ ------ ------ ------ ------ --------
TOTAL RETURN, AT NET ASSET VALUE(2) 7.75% 15.31% 20.06% 11.90% .85% 8.97% 7.33% 3.54%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,155,494 $1,119,056 $902,562 $657,182 $650,989 $860,588 $53,053 $10,493
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,134,511 $978,671 $768,339 $601,758 $734,703 $863,178 $34,060 $4,405
- ----------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at end
of period (in thousands) 79,680 79,047 65,581 50,258 47,870 55,810 3,670 743
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 10.69%(3) 11.59% 13.15% 14.94% 13.00% 12.88% 9.63%(3) 10.84%(3)
Expenses .95%(3) .97% .92% .96% .93% .88% 1.95%(3) 2.28%(3)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 44.0% 87.2% 64.0% 90.4% 63.2% 57.0% 44.0% 87.2%
<FN>
1. For the period from May 3, 1993 (inception of offering) to June 30, 1993.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns.
3. Annualized.
4. 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 six
months ended December 31, 1993 were $559,157,464 and $55,962,279, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer High Yield Fund
<PAGE>
---------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer High Yield Fund (the Fund) is
ACCOUNTING POLICIES registered under the Investment Company Act of
1940, as amended, as a diversified, open-end
management investment company. The Fund's
investment advisor is Oppenheimer Management
Corporation (the Manager). The Fund offers both
Class A and Class B shares. Class A shares are sold
with a front-end sales charge. Class B shares may
be subject to a contingent deferred sales charge.
Both classes of shares have identical rights to
earnings, assets and voting privileges, except that
each class has its own distribution plan, expenses
directly attributable to a particular class and
exclusive voting rights with respect to matters
affecting a single class. Class B shares will
automatically convert to Class A shares six years
after the date of purchase. The following is a
summary of significant accounting policies
consistently followed by the Fund.
---------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are
valued at 4:00 p.m. (New York time) on each trading
day. Listed and unlisted securities for which such
information is regularly reported are valued at the
last sale price of the day or, in the absence of
sales, at values based on the closing bid or asked
price or the last sale price on the prior trading
day. Long-term debt securities are valued by a
portfolio pricing service approved by the Board of
Trustees. Long-term debt securities which cannot be
valued by the approved portfolio pricing service
are valued by averaging the mean between the bid
and asked prices obtained from two active market
makers in such securities. Short-term debt
securities having a remaining maturity of 60 days
or less are valued at cost (or last determined
market value) adjusted for amortization to maturity
of any premium or discount. Securities for which
market quotes are not readily available are valued
under procedures established by the Board of
Trustees to determine fair value in good faith.
Forward foreign currency contracts are valued at
the forward rate on a daily basis.
---------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high
yield securities, which may be subject to a greater
degree of credit risk, greater market fluctuations
and risk of loss of income and principal, and may
be more sensitive to economic conditions than lower
yielding, higher rated fixed income securities. The
Fund may acquire securities in default, and is not
obligated to dispose of securities whose issuers
subsequently default. At December 31, 1993,
securities with an aggregate market value of
$36,799,082, representing 3.02% of the Fund's total
assets, were in default.
---------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting
records of the Fund are maintained in U.S. dollars.
Prices of securities denominated in foreign
currencies are translated into U.S. dollars at the
closing rates of exchange. Amounts related to the
purchase and sale of securities and investment
income are translated at the rates of exchange
prevailing on the respective dates of such
transactions.
The Fund generally enters into forward
currency exchange contracts as a hedge, upon the
purchase or sale of a security denominated in a
foreign currency. In addition, the Fund may enter
into such contracts as a hedge against changes in
foreign currency exchange rates on portfolio
positions. A forward exchange contract is a
commitment to purchase or sell a foreign currency
at a future date, at a negotiated rate. Risks may
arise from the potential inability of the
counterparty to meet the terms of the contract and
from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
The effect of changes in foreign currency
exchange rates on investments is separately
identified from the fluctuations arising from
changes in market values of securities held and
reported with all other foreign currency gains and
losses in the Fund's results of operations.
---------------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS AND
LOSSES. Income, expenses (other than those
attributable to a specific class) and gains and
losses are allocated daily to each class of shares
based upon the relative proportion of net assets
represented by such class. Operating expenses
directly attributable to a specific class are
charged against the operations of that class.
17 Oppenheimer High Yield Fund
<PAGE>
---------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Continued)
- --------------------------------------------------------------------------------
FEDERAL INCOME 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 tax provision is
required. At December 31, 1993, the Fund had
available for federal income tax purposes an unused
capital loss carryover of approximately
$179,100,000, $10,800,000 of which will expire in
1994, $1,400,000 in 1996, $14,500,000 in 1997,
$14,900,000 in 1998, $74,100,000 in 1999,
$42,200,000 in 2000 and $21,200,000 in 2001.
---------------------------------------------------
EQUALIZATION. Prior to September 30, 1993, the Fund
followed the accounting practice of equalization,
by which a portion of the proceeds from sales and
costs of redemptions of Fund shares equivalent on
a per share basis to the amount of undistributed
net investment income were credited or charged to
undistributed income. The cumulative effect of the
change in accounting practice resulted in a
reclassification of $2,571,421 from undistributed
net investment income to paid-in capital.
---------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to
declare dividends separately for Class A and Class
B shares from net investment income each regular
business day and pay such dividends monthly.
Distributions from net realized gains on
investments, if any, will be declared at least once
each year.
---------------------------------------------------
OTHER. Investment transactions are accounted for on
the date the investments are purchased or sold
(trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased
is amortized over the life of the respective
securities, in accordance with federal income tax
requirements. 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. Dividends in kind are
recognized as income on the ex-dividend date,
at the current market value of the underlying
security. Interest on payment-in-kind debt
instruments is accrued as income at the coupon rate
and a market adjustment is made on the ex-date.
- --------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no
BENEFICIAL INTEREST par value shares of beneficial interest of each
class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED DECEMBER 31, 1993 PERIOD ENDED JUNE 30, 1993(1)
---------------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 11,360,495 $160,928,756 26,776,418 $ 362,823,963
Dividends reinvested 2,242,979 31,661,954 4,419,112 59,368,501
Redeemed (12,971,247) (183,335,745) (17,728,777) (239,584,303)
------------ ------------ ------------ ------------
Net increase 632,227 $ 9,254,965 13,466,753 $ 182,608,161
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
----------------------------------------------------------------------------------------------------
Class B:
Sold 3,065,943 $ 43,530,304 742,214 $ 10,390,635
Dividends reinvested 49,821 708,033 2,550 35,404
Redeemed (188,938) (2,679,266) (1,862) (26,256)
------------ ------------ ---------- ------------
Net increase 2,926,826 $ 41,559,071 742,902 $ 10,399,783
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<FN>
1. For the year ended June 30, 1993 for Class A
shares and for the period from May 3, 1993
(inception of offering) to June 30, 1993 for Class
B shares.
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At December 31, 1993, net unrealized appreciation
LOSSES ON INVESTMENTS on investments of $49,048,246 was composed of gross
appreciation of $78,120,038, and gross depreciation
of $29,071,792.
18 Oppenheimer High Yield Fund
<PAGE>
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND
OTHER TRANSACTIONS Management fees paid to the Manager were in
WITH AFFILIATES accordance with the investment advisory
agreement with the Fund which provides for
an annual fee of .75% on the first
$200 million of net assets with a reduction
of .03% on each $200 million thereafter to
$800 million, .60% on the next $200 million
and .50% on net assets in excess of
$1 billion. The Manager has agreed to
reimburse the Fund if aggregate expenses
(with specified exceptions) exceed the most
stringent applicable regulatory limit on Fund
expenses.
For the six months ended
December 31, 1993, commissions (sales charges
paid by investors) on sales of Class A shares
totaled $2,419,620, of which $581,152 was
retained by Oppenheimer Funds Distributor,
Inc. (OFDI), a subsidiary of the Manager, as
general distributor, and by an affiliated
broker/dealer. During the six months ended
December 31, 1993, OFDI received contingent
deferred sales charges of $22,271 upon
redemption of Class B shares.
Oppenheimer Shareholder Services
(OSS), a division of the Manager, is the
transfer and shareholder servicing agent for
the Fund, and for other registered investment
companies. OSS's total costs of providing
such services are allocated ratably to these
companies.
Under separate approved plans of
distribution, each class may expend up to .25%
of its net assets annually to reimburse OFDI
for costs incurred in distributing shares of
the Fund, including amounts paid to brokers,
dealers, banks and other institutions. In
addition, Class B shares are subject to an
asset-based sales charge of .75% of net assets
annually, to reimburse OFDI for sales
commissions paid from its own resources at
the time of sale and associated financing
costs. In the event of termination or
discontinuance of the Class B plan of
distribution, the Fund would be contractually
obligated to pay OFDI for any expenses not
previously reimbursed or recovered through
contingent deferred sales charges. During the
six months ended December 31, 1993, OFDI paid
$14,365 to an affiliated broker/dealer as
reimbursement for Class A distribution-related
expenses and retained $177,951 as
reimbursement for Class B distribution-related
expenses and sales commissions.
- --------------------------------------------------------------------------------
5. RESTRICTED SECURITIES The Fund owns securities purchased in private
placement transactions, without registration
under the Securities Act of 1933 (the Act).
The securities are valued under methods
approved by the Board of Trustees as
reflecting fair value. The Fund intends to
invest no more than 10% of its net assets
(determined at the time of purchase) in
restricted and illiquid securities, excluding
securities eligible for resale pursuant to
Rule 144A of the Act that are determined to
be liquid by the Board of Trustees or by the
Manager under Board-approved guidelines.
Restricted and illiquid securities amount to
$42,350,915, or 3.50% of the Fund's net
assets, at December 31, 1993.
19 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- ----------------------------------------------------------------------------------------------------------------------------------
RESTRICTED SECURITIES VALUATION
(CONTINUED) PER UNIT AS
OF DEC. 31,
SECURITY ACQUISTIION DATE COST PER UNIT 1993
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Ackerley Communications, Inc., 10.75%
Sr. Sec. Nts., Series A, 10/1/13(1) 10/1/93--10/12/93 $100.48 $104.50
-----------------------------------------------------------------------------------------------------
American Restaurant Group, Inc., 12% Gtd.
Sr. Sec. Nts., 9/15/98(1) 12/3/93 $99.01 $100.00
-----------------------------------------------------------------------------------------------------
AMR Corp., $3.00 Cum. Cv. Depositary Shares,
Series A, Preferred Stock(1) 12/2/93 $52.88 $52.50
-----------------------------------------------------------------------------------------------------
Apparel Retailers, Inc., 0%/12.75% Sr. Disc. Debs.,
Series A, 8/15/05(1) 11/18/93 $55.75 $57.50
-----------------------------------------------------------------------------------------------------
Arizona Charlie's, Inc., 12% Fst. Mort. Nts.,
Series A, 11/15/00 11/18/93 $100.00 $100.00
-----------------------------------------------------------------------------------------------------
Baldwin Co., 10.375% Sr. Nts., 8/1/03(1) 7/15/93 $100.00 $96.50
-----------------------------------------------------------------------------------------------------
Banco do Nordeste do Brasil, 10.375% Sr. Debs., 11/6/95(1)
4/27/93 $99.80 $101.50
-----------------------------------------------------------------------------------------------------
Banco Nac de Com Ext SNC, Gtd. by Banco Nacional
de Comercio Exterior SNC, 8% Bonds, 8/5/03(1) 11/11/93 $97.82 $103.00
-----------------------------------------------------------------------------------------------------
Bankers Trust New York Corp., S & P 500
Equity-Linked Nts., 2/11/94 11/5/93 $100.00 $20.58
-----------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., 11/00 11/15/93 $2.00 $2.50
-----------------------------------------------------------------------------------------------------
Brylane LP/Brylane Capital Corp.,
10% Sr. Sub. Nts., 9/1/03(1) 8/20/93--9/30/93 $99.44 $103.50
-----------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% Fst. Mort. Nts.,
Series A, 11/15/00 11/18/93 $87.50 $89.00
-----------------------------------------------------------------------------------------------------
Card Establishment Services, Inc.,
10% Sr. Sub. Nts., 10/1/03(1) 10/5/93--11/3/93 $102.02 $104.50
-----------------------------------------------------------------------------------------------------
Consolidated Hydro, Inc., 0%/12% Sr. Disc. Nts.,
7/15/03(1) 6/15/93 $55.43 $59.50
-----------------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts.,
Series A, 10/1/03(1) 9/23/93--10/15/93 $100.45 $102.50
-----------------------------------------------------------------------------------------------------
ECM Fund L.P.I., 14% Sub. Nts., 6/10/02 4/14/92 $100.00 $112.15
-----------------------------------------------------------------------------------------------------
ECM Fund L.P.I. Common Stock 4/14/92 $1,000.00 $1,000.00
-----------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc.,
Units(1) 9/28/93--10/5/93 $100.14 $102.50
-----------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., Cl. 1 Common Stock 12/1/92 $10.50 $21.75
-----------------------------------------------------------------------------------------------------
GPA Netherlands BV, 8.50% Medium-Term
Nts., 2/10/97(1) 6/30/93 $69.50 $82.75
-----------------------------------------------------------------------------------------------------
GSPI Corp., 10.15% Fst. Mort. Bonds, 6/24/10(1) 1/29/93 $102.40 $122.00
-----------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 0%/9.50% Sr.
Sec. Nts., 11/1/03(1) 10/20/93--12/6/93 $96.12 $97.75
-----------------------------------------------------------------------------------------------------
Hillsborough Holdings Corp., Common Stock 1/7/88 $5.00 $0.01
-----------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(1)
9/24/93--10/5/93 $64.70 $72.50
-----------------------------------------------------------------------------------------------------
Interco, Inc., 9% Sec. Nts., Series B, 6/1/04 10/14/92 $91.50 $97.38
-----------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 3.20% S & P 500
Index-Linked Nts., 2/9/94 11/9/93 $125.00 $108.58
</TABLE>
20 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
VALUATION
PER UNIT AS
COST OF DEC. 31
SECURITY ACQUISITION DATE PER UNIT 1993
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTRICTED SECURITIES Pace Industries, Inc., 10.625% Sr.
(CONTINUED) Nts., 12/1/02(1) 12/3/93--12/7/93 $100.25 $103.00
-----------------------------------------------------------------------------------------------------
Presidio Oil Co., 13.25% Sr. Sub. Gas Indexed Nts.,
2/15/99(1) 9/26/91--2/24/92 $101.42 $106.00
-----------------------------------------------------------------------------------------------------
SCI Television, Inc. Bank Participation Interest
Agreements:
Series 1, 9/30/94 3/25/93 $91.75 $97.50
Series 2, 9/30/94 4/8/93 $92.00 $97.50
-----------------------------------------------------------------------------------------------------
Speciality Retailers, Inc., 10% Sr. Nts., Series A,
8/15/00(1) 11/12/93 $100.38 $102.50
-----------------------------------------------------------------------------------------------------
Subic Power Corp., 0% Sr. Sec. Nts.,
12/15/08(1) 12/20/93 $99.93 $102.00
-----------------------------------------------------------------------------------------------------
Treasure Bay Gaming & Resorts, Inc., Units 11/10/93 $100.00 $101.50
-----------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., 13.50% Sr. Nts.,
1/15/02 1/13/92--1/23/92 $100.00 $38.00
-----------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Wts.,
Exp. 1/98 1/13/92--1/23/92 $ -- $0.01
-----------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series
1993-A, 12/1/11(1) 11/8/93 $100.00 $103.13
</TABLE>
1. Transferable under Rule 144A of the Act.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
6. FORWARD FOREIGN At December 31, 1993, the Fund had outstanding forward exchange currency contracts to sell foreign
CURRENCY EXCHANGE currencies as follows:
CONTRACTS
EXPIRATION VALUATION AS OF UNREALIZED
DATE CONTRACT AMOUNT DEC. 31, 1993 APPRECIATION
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canadian Dollar 1/10/94 $15,490,633 $15,486,410 $4,223
-----------------------------------------------------------------------------------------------------
Italian Lira 1/13/94 481,393 475,121 6,272
-----------------------------------------------------------------------------------------------------
Spanish Peseta 1/14/94 4,265,908 4,187,778 78,130
----------- ------------ ----------
$20,237,934 $20,149,309 $88,625
------------ ---------- --------
------------ ---------- --------
</TABLE>
21 Oppenheimer High Yield
<PAGE>
-------------------------------------------------------
OPPENHEIMER HIGH YIELD FUND
- --------------------------------------------------------------------------------
OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive Officer
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
Ralph W. Stellmacher, Vice President
George C. Bowen, Vice President, Secretary and
Treasurer
Lynn M. Coluccy, Assistant Treasurer
Robert G. Zack, Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- --------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche
- --------------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson & Adams, P.C.
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer High Yield Fund. This
report must be preceded or accompanied by a Prospectus of Oppenheimer High Yield
Fund. For material information concerning the Fund, see the Prospectus.
22 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
THE FAMILY OF OPPENHEIMERFUNDS
- -----------------------------------------------------------------------------------------------------------------------------------
OppenheimerFunds offers over 30 funds designed to fit virtually every investment goal. Whether you're
investing for retirement, your children's education, or tax-free income, we have the funds to help you seek
your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing that you are investing
with a respected financial institution with over 30 years of experience in helping people just like you
reach their financial goals. And you're investing with a leader in global, growth stock, and flexible fixed
income investments -- with over 1.7 million shareholder accounts and more than $25 billion under
Oppenheimer's management and that of our affiliates.
As an OppenheimerFunds shareholder, you can easily exchange shares of eligible funds of the same
class by mail or by telephone for a small administrative fee.(1) For more information on OppenheimerFunds,
please contact your financial advisor or call us at 1-800-525-7048 for a prospectus. You may also write us
at the address shown on the back cover. As always, please read the prospectus carefully before you invest.
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY STOCK FUNDS Global Bio-Tech Fund Gold & Special Minerals Fund
Global Environment Fund
- -----------------------------------------------------------------------------------------------------------------------------------
STOCK FUNDS Discovery Fund Global Fund
Time Fund Oppenheimer Fund
Target Fund Value Stock Fund
Special Fund
- -----------------------------------------------------------------------------------------------------------------------------------
STOCK AND BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- -----------------------------------------------------------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund(3)
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Government Securities Fund
Strategic Investment Grade Bond Fund
- -----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(2) Tax-Free Bond Fund
California Tax-Exempt Fund(2) Insured Tax-Exempt Bond Fund
Pennsylvania Tax-Exempt Fund(2) Intermediate Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(2)
- -----------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS Money Market Fund Tax-Exempt Cash Reserves
Cash Reserves
<FN>
1. The fee is waived for PhoneLink exchanges between existing accounts. Exchange privileges are subject to
change or termination.
2. Available only to residents of those states.
3. Formerly GNMA Fund.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203. -C- Copyright 1994 Oppenheimer Management Corporation. All rights reserved.
</TABLE>
23 Oppenheimer High Yield Fund
<PAGE>
"How may I help you?"
GENERAL INFORMATION
1-800-525-7048
Talk to a Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and Saturday from 10:00 a.m.
to 2:00 p.m. ET.
TELEPHONE TRANSACTIONS
1-800-852-8457
Make account transactions with a Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
PHONELINK
1-800-533-3310
Get automated information or make automated transactions.
24 hours a day, 7 days a week.
TELECOMMUNICATION
DEVICE FOR THE DEAF
1-800-843-4461
Service for the hearing impaired.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
OPPENHEIMERFUNDS INFORMATION HOTLINE
1-800-835-3104
Hear timely and insightful
messages on the economy and
issues that affect your finances.
24 hours a day, 7 days a week.
"Just as OppenheimerFunds offers over 30 different funds designed to help meet
virtually every investment need, Oppenheimer Shareholder Services offers a
variety of services to satisfy your individual needs. Whenever you require help,
we're only a toll-free phone call away.
"For personalized assistance and account information, call our General
Information number to speak with our knowledgeable Customer Service
Representatives.
"We also make it easy for you
to redeem shares, exchange shares, or conduct [PICTURE]
AccountLink transactions, simply by calling our
Telephone Transactions number.
"And for added convenience, OppenheimerFunds' PhoneLink, an automated
voice response system, is available 24 hours a day, 7 days a week. PhoneLink
gives you access to variety of fund, account, and market information. You
can even make purchases, exchanges and redemptions using your
[PICTURE] touch-tone phone. Of course, PhoneLink will always give you the
option to speak with a Customer Service Representative during regular business
hours.
"When you invest in OppenheimerFunds, you know you'll receive a high
level of customer service. The International Customer Service Association knows
it, too, as it recently awarded Oppenheimer Shareholder Services a 1993 Award of
Excellence for consistently demonstrating superior customer service.
"Whatever your needs, we're ready to assist you."
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
[LOGO]
OPPENHEIMER FUNDS DISTRIBUTOR, INC.
P.O. Box 5270
Denver, CO 80217-5270
