OPPENHEIMER HIGH YIELD FUND
Supplement dated January 3, 1995 to
the Prospectus dated October 25, 1994
The Prospectus is amended as follows:
1. The supplement dated November 18, 1994, to the Prospectus is replaced
by this supplement.
2. The section entitled "At What Price Are Shares Sold?" on page 15 is
amended to change the time of day at which net asset value is determined,
by revising the first three sentences of that paragraph to read as
follows: "In most cases, to enable you to receive that day's offering
price, the Distributor must receive your order by the time of day The New
York Stock Exchange closes, which is normally 4;00 P.M., New York time,
but may be earlier on some days (all references to time in this Prospectus
mean "New York time"). The net asset value of each class of shares is
determined as of that time on each day The New York Stock Exchange is open
(which is a "regular business day"). If you buy shares through a dealer,
the dealer must receive your order by the close of The New York Stock
Exchange on a regular business day and transmit it to the Distributor so
that it is received before the Distributor's close of business that day,
which is normally 5:00 P.M."
3. The second sentence of the first paragraph under the heading
"Distribution and Service Plan for Class B Shares" on page 19 is revised
to read as follows:
Under the Plan, the Fund pays the Distributor an
annual "asset-based sales charge" of 0.75% per year
on Class B shares that are outstanding for 6 years or
less.
4. The section entitled "Selling Shares by Telephone" on page 21 is
amended by revising the second sentence to read as follows: "To receive
the redemption price on a regular business day, your call must be received
by the Transfer Agent by the close of The New York Stock Exchange that
day, which is normally 4:00 P.M., but may be earlier on some days."
5. The section entitled "How To Exchange Shares" starting on page 22 is
amended by revising the first sentence in the first "bulleted" paragraph
following "Telephone Exchange Requests" on page 23 to become two sentences
that read as follows: "Shares are normally redeemed from one fund and
purchased from the other fund in the exchange transaction on the same
regular business day on which the Transfer Agent receives an exchange
request that is in proper form by the close of The New York Stock Exchange
that day, which is normally 4:00 P.M. but may be earlier on some days.
However, either fund may delay the purchase of shares of the Fund you are
exchanging into if it determines it would be disadvantaged by a same-day
transfer of the proceeds to buy shares."
6. The first sentence of the section entitled "Net Asset Value Per
Share" under "Shareholder Account Rules and Policies" on page 23 is
revised to read as follows: "Net Asset Value Per Share is determined for
each class of shares as of the close of The New York Stock Exchange on
each regular business day by dividing the value of the Fund's net assets
attributable to a class by the number of shares that are outstanding."
January 3, 1995
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OPPENHEIMER HIGH YIELD FUND
Supplement dated January 3, 1995 to
the Statement of Additional Information
dated October 25, 1994
The Statement of Additional Information is amended as follows:
1. The following text is added as the fourth paragraph under the heading
"Investment Policies and Strategies" on page 2:
- Special Risks - High Yield Securities. As stated in the
Prospectus, the corporate debt securities in which the Fund will
principally invest may be in the lower rating categories. The Fund
may invest in securities rated as low as "C" by Moody's or "D" by
Standard & Poor's. The Manager will not rely solely on the ratings
assigned by rating services and may invest, without limitation, in
unrated securities which offer, in the opinion of the Manager,
comparable yields and risks as those rated securities in which the
Fund may invest.
Risks of high yield securities may include: (i) limited liquidity and
secondary market support, (ii) substantial market price volatility
resulting from changes in prevailing interestrates, (iii) subordination
to the prior claims of banks and other senior lenders, (iv) the operation
of mandatory sinking fund or call/redemption provisions during periods of
declining interest rates that could cause the Fund to be able to reinvest
premature redemption proceeds only in lower yielding portfolio securities,
(v) the possibility that earnings of the issuer may be insufficient to
meet its debt service, and (vi) the issuer's low creditworthiness and
potential for insolvency during periods of rising interest rates and
economic downturn. As a result of the limited liquidity of high yield
securities, their prices have at times experienced significant and rapid
decline when a substantial number of holders decided to sell. A decline
is also likely in the high yield bond market during an economic downturn.
An economic downturn or an increase in interest rates could severely
disrupt the market for high yield bonds and adversely affect the value of
outstanding bonds and the ability of the issuers to repay principal and
interest. In addition, there have been several Congressional attempts to
limit the use of tax and other advantages of high yield bonds which, if
enacted, could adversely affect the value of these securities and the
Fund's net asset value.
2. The first sentence of the section entitled "Determination of Net
Asset Values Per Share" under "How To Buy Shares" on page 29 is amended
to read as follows, and a new second sentence is added to that section as
follows: "The net asset values per shares of Class A and Class B shares
of the Fund are determined as of the close of business of The New York
Stock Exchange on each day that the Exchange is open by dividing the
Fund's net assets attributable to a class by the number of shares of that
class that are outstanding. The Exchange normally closes at 4:00 P.M.,
New York time, but may close earlier on some days (for example, in case
of weather emergencies or on days falling before a holiday)."
3. The section entitled AccountLink on page 31 is revised by replacing
the text after the third sentence with the following: "Dividends will
begin to accrue on shares purchased by the proceeds of ACH transfers on
the business day the Fund receives Federal Funds for the purchase through
the ACH system before the close of The New York Stock Exchange. The
Exchange normally closes at 4:00 P.M., but may close earlier on certain
days. If Federal Funds are received on a business day after the close of
the Exchange, the shares will be purchased and dividends will begin to
accrue on the next regular business day. The proceeds of ACH transfers
are normally received by the Fund 3 days after the transfers are
initiated. The Distributor and the Fund are not responsible for any
delays in purchasing shares resulting from delays in ACH transmissions."
4. The following text is added as the second paragraph under "How to
Sell Shares" on page 34:
- Checkwriting. When a check is presented to the Fund's Bank for
clearance, the Bank will ask the Fund to redeem a sufficient number of
full and fractional shares in the shareholder's account to cover the
amount of the check. This enables the shareholder to continue receiving
dividends on those shares until the check is presented to the Fund.
Checks may not be presented for payment at the offices of the Bank or the
Fund's Custodian. This limitation does not affect the use of checks for
the payment of bills or to obtain cash at other banks. The Fund reserves
the right to amend, suspend or discontinue offering checkwriting
privileges at any time without prior notice.
5. The second sentence of the section entitled "Special Arrangements for
Repurchase of Shares from Dealers and Brokers" on page 36 is amended to
read as follows: "The repurchase price per share will be the net asset
value next computed after the Distributor receives the order placed by the
dealer or broker, except that if the Distributor receives a repurchase
order from a dealer or broker after the close of The New York Stock
Exchange on a regular business day, it will be processed at that day's net
asset value if the order was received by the dealer or broker from its
customer prior to the time the Exchange closes (normally, that is 4:00
P.M., but may be earlier on some days) and the order was transmitted to
and received by the Distributor prior to its close of business that day
(normally 5:00 P.M.)."
6. The following text is added as the first and second paragraphs under
the heading "Dividends, Capital Gains and Taxes" on page 40:
Dividends and Distributions. Dividends will be payable on shares
held of record at the time of the previous determination of net asset
value, or as otherwise described in "How to Buy Shares." Daily dividends
on newly purchased shares will not be declared or paid until such time as
Federal Funds (funds credited to a member bank's account at the Federal
Reserve Bank) are available from the purchase payment for such shares.
Normally, purchase checks received from investors are converted to Federal
Funds on the next business day. Dividends will be declared on shares
repurchased by a dealer or broker for four business days following the
trade date (i.e., to and including the day prior to settlement
repurchase). If all shares in an account are redeemed, all dividends
accrued on shares of the same class in the account will be paid together
with the redemption proceeds.
Dividends, distributions and the proceeds of the redemption of Fund
shares represented by checks returned to the Transfer Agent by the Postal
Service as undeliverable will be invested in shares of Oppenheimer Money
Market Fund, Inc., as promptly as possible after the return of such checks
to the Transfer Agent, to enable the investor to earn a return on
otherwise idle funds.
January 3, 1995
