Oppenheimer High Yield Fund
Semiannual Report December 31, 1994
[photo depicting couple cooking dinner]
"We need
our money
to work
as hard
as it can."
(Logo)OppenheimerFunds(R)
<PAGE>
This Fund is for people who want high monthly
income from their investment.
How Your Fund Is Managed
News
Oppenheimer High Yield Fund seeks high current income with a secondary
objective of capital growth. The Fund invests in high-yielding, lower-rated
corporate bonds. These types of securities often offer the highest income
available from any type of fixed income investment.
"This Fund is perfect for conservative, yield-hungry investors."
- --Morningstar Mutual Funds
12/23/94
Standardized Yield
For the 30 Days Ended 12/31/94:(1)
Class A
9.63%
Class B
9.24%
"Because of Oppenheimer High Yield Fund's strong performance and relatively
low risk, Morningstar Mutual Funds recently awarded the Fund's Class A shares
a ++++ ranking among 653 taxable bond funds.(2)
Performance
Total return at net asset value for the 6 months ended 12/31/94 was -1.00%
for Class A shares and -1.39% for Class B shares.(3)
The financial markets had a difficult year and, like many mutual
funds, your Fund felt the effects. While difficult years are hard to accept,
they're an inevitable part of investing. That's why keeping a long-term
perspective is crucial to getting the most from your investment and helping
you through short-term market fluctuations.
Your Fund's average annual total returns at maximum offering price
for Class A shares for the 1-, 5-, and 10-year periods ended 12/31/94 and
since inception of the Class on 7/28/78 were -7.00%, 9.70%, 9.96% and 9.31%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/94 and since inception of the Class on 5/3/93 were -7.66%
and 2.30%, respectively.(4)
Outlook
"The trends in corporate credit quality are very good today. Many companies
are reporting strong cash flows and earnings and continue
to improve their balance-sheet strength. As a result, the high yield bond market
offers attractive opportunities for investors seeking high yields."
Ralph Stellmacher, Portfolio Manager
December 31,1994
1. Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 12/31/94, divided by the
maximum offering price at the end of the period, compounded semi-annually and
then annualized. Falling net asset values will tend to artificially raise
yields.
2. Source: Morningstar Mutual Funds, 12/31/94. Morningstar, Inc., an
independent mutual fund monitoring service, produces proprietary monthly
rankings of funds in broad investment categories (equity, taxable bond,
tax-exempt bond, or "hybrid") based on risk-adjusted investment return, after
considering sales charges and expenses. Investment return measures a fund's
(or class's) 3-, 5-, and 10-year (depending on the inception of the class or
fund) average annual total returns in excess of 90-day U.S. Treasury bill
returns. Risk measures a fund's (or class's) performance below 90-day U.S.
Treasury bill returns. Risk and returns are combined to produce star
rankings, reflecting performance relative to the average fund in a fund's
category. Five stars is the "highest" ranking (top 10%), 4 stars is "above
average" and 1 star is the lowest (bottom 1%). The 4-star current ranking is
a weighted average of the 3- and 5-year rankings for the class, which were 5
and 4 stars, respectively, weighted 40%/60%. The Fund was ranked among 653
taxable bond funds. Rankings are subject to change. The Fund's Class A and
Class B shares have the same portfolio.
3. Based on the change in net asset value per share from 6/30/94 to 12/31/94,
without deducting any sales charges. Such performance would have been lower
if sales charges were taken into account.
4. Average annual total returns are based on a hypothetical investment held
until 12/31/94, after deducting the current maximum initial sales charge of
4.75% for Class A shares and the contingent deferred sales charge of 5% (1
year) and 4% (since inception) for Class B shares. The Fund's maximum sales
charge rate for Class A shares was higher during a portion of some of the
periods shown, and actual investment results will be different as a result of
the change. Class A and Class B shares were first publicly offered on 7/28/78
and 5/3/93, respectively.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and
principal value on an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
2 Oppenheimer High Yield Fund
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Dear OppenheimerFunds Shareholder,
The past year was marked by one of the greatest tests the bond markets faced
in more than six decades. As the U.S. Federal Reserve undertook one of the
most aggressive series of moves to raise interest rates in its history, bond
prices declined across the board, leaving many investors to wonder what the
future holds for interest rates and the fixed income markets.
Changing interest rates and fluctuating bond prices are facts of
life affecting all bond markets, and it's a bond market basic principle that
when interest rates rise, bond prices generally decline. That is why we
believe the best measure for any fixed income investment is its performance
over the long term. And we believe the long-term outlook for the bond markets
is excellent.
We expect the Fed's attempt to preempt possible inflation, while
temporarily disconcerting, to have its desired effect in 1995. The economy
should start to slow, and although short-term rates may move up modestly from
their present levels, long-term interest rates should stabilize in their
current range. Long-term rates may even begin to decline as overblown
concerns about inflation abate.
Those concerns are, in fact, already fading. While the prices of
some commodities have risen over the past year and U.S. manufacturing
capacity utilization and employment rose to their highest levels in years, in
today's globally competitive environment, price increases are difficult to
pass on to either consumers or businesses. The inflation rate--as measured by
the Consumer Price Index--continues to run at less than 3% a year, and there's
nothing on the horizon to suggest to us that it will increase substantially
anytime soon. As a result, bonds today offer some of the highest real,
inflation-adjusted returns we have seen in years.
At the same time, the changing political landscape reflected in
results of the mid-term election bode well for the bond market over time. In
addition to limiting the expectation that Congress will pass potentially
inflationary government spending proposals, the realignment in Washington has
raised the possibility of tax relief in the form of an expanded deduction for
individual retirement savings or possibly a reduction in the capital gains
tax rate. What specific action, if any, Congress will take on these proposals
remains to be seen. But any action to reduce the federal deficit, cut
spending, and reduce taxes should be good news for the investment markets
overall. Together, these factors suggest to us that 1995 will be a rewarding
time for bond market investors.
We expect that as short-term rates rise and inflation holds at its
current level, short-term investments should provide more attractive real,
inflation-adjusted yields. Longer-term bonds in all sectors--corporate,
municipal, and U.S. government--may also provide very attractive total return
opportunities. Along with strong yields, longer-term bonds offer the prospect
of modest price appreciation during 1995 as well.
Your portfolio manager discusses your Fund's outlook on the
following pages. We appreciate your confidence in OppenheimerFunds and we
look forward to helping you continue to reach your investment goals.
James C. Swain
Chairman
Oppenheimer
High Yield Fund
Jon S. Fossel
President
Oppenheimer
High Yield Fund
James C. Swain Jon S. Fossel
January 23, 1995
3 Oppenheimer High Yield Fund
<PAGE>
Q + A
Q What's your outlook for the high yield market?
An interview with your Fund's manager.
How did the Federal Reserve's aggressive moves to raise interest rates over the
past year affect the Fund?
The Fund continued to provide shareholders with high monthly income during
the past six months. At the same time, the Fed's moves caused bond prices to
decline across the board and this Fund was not immune to those developments.
I have little doubt, however, that the Fed's efforts to control
inflation will work to slow the economy to a sustainable growth rate over the
next several months. For high yield issuers, that means that earnings and
cash flows may come under pressure--thus, over the past few months, we've been
managing the Fund more conservatively, focusing on issuers' fundamental
financial strength and orienting the portfolio toward relative quality.
Will your emphasis on quality result in lower yields?
The Fund's yield may be somewhat lower, but it's important to bear two points
in mind. First, the level of income the Fund is producing is very attractive
compared with other fixed income alternatives. Of course, investors in high
yield bonds are subject to greater risk that the issuer will default in its
principal or interest payments. At the same time, by emphasizing portfolio
quality, we're reducing some of that risk for our shareholders. That's
important to us. Most shareholders invest in this Fund because we don't reach
for yield. In today's markets especially, earning marginally higher yields
means taking on substantially more risk, and that's something we don't want
to do.
<PAGE>
How has your emphasis on quality within the high yield sector translated into
specific investments?
We've taken several steps. Most importantly, we've reduced some of our holdings
in cyclical industries in the U.S. and sought opportunities in high yield bonds
issued by U.S. companies that derive a large percentage of their earnings from
Europe, where we believe growth opportunities are greater. Recent purchases
include NL Industries, American Standard and Coleman, all companies which obtain
significant cash flow from their European operations.
We've also focused more attention on bonds positioned to benefit
from rising commodity prices worldwide, notably those issued by companies in
the chemicals, industrial metals, and forest products sectors. Significant
additions to the portfolio include Kaiser Aluminum and Stone Container.
We've tried, where possible, to upgrade our holdings within a given
company, moving out of junior securities and into more senior securities when
yield premiums for more senior paper justified the move. For example, we've
upgraded our holdings in Thrifty/Pay-Less and Finley Fine Jewelry without
sacrificing much in yield.(1)
What's your outlook for the high yield market in general and the Fund
in particular?
Looking ahead, we believe that the outlook for high yield corporate bonds
remains basically positive. Despite the anticipated slowdown in the U.S.
economy as a result of higher interest rates, several fundamental
factors--including low inflation and a steady, if slower, rate of
growth--should help high yield issues to remain among the bond market's best
performers. We're taking a somewhat conservative view of the market at this
point, analyzing opportunities carefully and investing in those that promise to
provide the greatest value for our shareholders over time.
Facing Page
Top left: Ralph Stellmacher,
Portfolio Manager
Top Right: The trading desk
Bottom: Len Darling, Executive VP, Director of Fixed Income Investing, consults
with Jon Fossel
This page
Top and bottom: Ralph Stellmacher
A We believe the outlook for high yield corporate bonds remains basically
positive.
1. The Fund's portfolio is subject to change.
5 Oppenheimer High Yield Fund
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<CAPTION>
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Statement of Investments December 31, 1994 (Unaudited)
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Face Market Value
Amount(1) See Note 1
===================================================================================================================================
<S> <C> <C> <C>
Repurchase Agreements--11.5% Repurchase agreement with First Chicago Capital Markets, 6%,
dated 12/30/94, to be repurchased at $124,883,200 on 1/3/95,
collateralized by U.S. Treasury Nts., 3.875%--8.875%, 5/31/95--8/31/05,
with a value of $118,683,360 and U.S. Treasury Bonds, 10.75%--14.25%,
2/15/02--8/15/05, with a value of $8,718,538 (Cost $124,800,000) $124,800,000 $ 124,800,000
===================================================================================================================================
Mortgage-Backed Obligations--2.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Government Agency--1.8%
- -----------------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/Sponsored--1.8% Federal National Mortgage Assn., Interest-Only
Stripped Mtg.-Backed Security, Trust 240, Cl. 2, 7%, 9/25/23(7) 52,664,590 19,642,247
- -----------------------------------------------------------------------------------------------------------------------------------
Private--0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Multi-Family--0.2% Resolution Trust Corp. Commercial Mtg. Pass-Through Certificates, 8%,
Series 1994-C2, Cl. E, 4/25/25 2,964,357 2,369,633
--------------
Total Mortgage-Backed Obligations (Cost $20,140,509) 22,011,880
===================================================================================================================================
U.S. Government Obligations--2.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Treasury--2.6% U.S. Treasury Bonds, 10.375%, 5/15/95 24,000,000 24,345,000
-----------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 9.25%, 1/15/96 3,348,000 3,408,683
--------------
Total U.S. Government Obligations (Cost $28,353,090) 27,753,683
===================================================================================================================================
Foreign Government Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Obligations--2.2% Series 1, 5.625%, 4/1/01(4) (6) 6,981,426 4,472,113
-----------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de
Deudas, Series 1, 3.17%, 4/1/01(4) (6) ARA 21,667,647 9,207,121
-----------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Series 1, 5.625%, 4/1/07(4) (6) 12,799,281 5,717,004
-----------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Nts., 12.50%, 7/15/00AUD 5,000,000 4,212,786
--------------
Total Foreign Government Obligations (Cost $32,568,901) 23,609,024
===================================================================================================================================
Municipal Bonds and Notes--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Revenue Bonds--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation--0.6% San Joaquin Hills, California Transportation Corridor
Agency Toll Road Capital Appreciation Revenue Bonds,
Jr. Lien, 0%, 1/1/12 15,000,000 3,165,944
-----------------------------------------------------------------------------------------------------
San Joaquin Hills, California Transportation Corridor
Agency Toll Road Capital Appreciation Revenue Bonds,
Jr. Lien, 0%, 1/1/28 74,000,000 3,382,687
--------------
Total Municipal Bonds and Notes (Cost $7,550,493) 6,548,631
===================================================================================================================================
Corporate Bonds and Notes--76.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--14.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.3% Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 9,000,000 9,067,500
-----------------------------------------------------------------------------------------------------
Georgia Gulf Corp., 15% Sr. Sub. Nts., 4/15/00 11,550,000 11,838,750
-----------------------------------------------------------------------------------------------------
OSI Specialties Holding Co., 0%/11.50% Sr. Sec. Disc. Debs.,
-----------------------------------------------------------------------------------------------------
Series B, 4/15/04(3) 6,469,000 4,075,470
-----------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 12,000,000 10,620,000
--------------
35,601,720
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6 Oppenheimer High Yield Fund
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<CAPTION>
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Face Market Value
Amount(1) See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Metals--4.6% Armco, Inc., 8.50% SF Debs., 9/1/01 $ 26,985,000 $ 24,151,575
-----------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 3,250,000 3,274,375
-----------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 9.875% Sr. Nts., 2/15/02 6,760,000 6,219,200
-----------------------------------------------------------------------------------------------------
NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05(3) 10,880,000 6,800,000
-----------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 7,700,000 7,700,000
-----------------------------------------------------------------------------------------------------
Stelco, Inc., 10.40% Debs., 11/30/09CAD 3,300,000 2,164,420
--------------
50,309,570
- -----------------------------------------------------------------------------------------------------------------------------------
Paper and Forest Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02(2) 870,000 439,350
Products--6.4% -----------------------------------------------------------------------------------------------------
Gaylord Container Corp., 0%/12.75% Sr. Sub. Disc. Debs., 5/15/05(3) 4,300,000 3,816,250
-----------------------------------------------------------------------------------------------------
Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 11,050,000 11,409,125
-----------------------------------------------------------------------------------------------------
Malette, Inc., 12.25% Sr. Sec. Nts., 7/15/04 2,150,000 2,182,250
-----------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 9,300,000 8,625,750
-----------------------------------------------------------------------------------------------------
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 3,100,000 2,542,000
-----------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.25% Fst. Priority Sr. Sec. Nts., 2/1/02 9,410,000 8,445,475
-----------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.375% Sr. Sub. Nts., 6/30/04 3,300,000 3,349,500
-----------------------------------------------------------------------------------------------------
Riverwood International Corp., 11.25% Sr. Sub. Nts., 6/15/02 9,850,000 10,194,750
-----------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., 12/15/04(5) 7,140,000 7,354,200
-----------------------------------------------------------------------------------------------------
Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00 2,325,000 2,295,938
-----------------------------------------------------------------------------------------------------
Stone Container Corp., 10.75% Fst. Mtg. Nts., 10/1/02 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 3,380,000 3,194,100
--------------
68,848,688
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Consumer Cyclicals--23.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Automobiles--2.6% Aftermarket Technology Corp., 12% Sr. Sub. Nts., 8/1/04(5) 2,250,000 2,328,750
-----------------------------------------------------------------------------------------------------
Envirotest Systems Corp., 9.125% Sr. Nts., 3/15/01 7,050,000 5,816,250
-----------------------------------------------------------------------------------------------------
Envirotest Systems Corp., 9.625% Sr. Sub. Nts., 4/1/03 8,625,000 6,835,313
-----------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02 6,600,000 6,270,000
-----------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp., 11.875% Sr. Sub. Debs., 10/1/04 2,000,000 1,910,000
-----------------------------------------------------------------------------------------------------
JPS Automotive Products Corp., 11.125% Sr. Nts., 6/15/01 5,000,000 4,837,500
--------------
27,997,813
- -----------------------------------------------------------------------------------------------------------------------------------
Construction Supplies and American Standard, 10.875% Sr. Nts., 5/15/99 1,000,000 1,010,000
Development--3.2% -----------------------------------------------------------------------------------------------------
Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 5,400,000 5,373,000
-----------------------------------------------------------------------------------------------------
Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03 8,450,000 8,069,750
-----------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(5) 6,000,000 5,190,000
-----------------------------------------------------------------------------------------------------
USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 13,000,000 13,292,500
-----------------------------------------------------------------------------------------------------
Walter Industries, Inc., 17% Sub. Debs., 1/1/96 3,150,000 2,189,250
--------------
35,124,500
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7 Oppenheimer High Yield Fund
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Statement of Investments (Unaudited) (Continued)
-----------------------------------------------------------------------------------------------------
Face Market Value
Amount(1) See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Goods and Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98 $ 17,500,000 $ 11,900,000
Services--6.5% -----------------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series B, 10/1/03 9,050,000 8,371,250
-----------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 12,000,000 13,020,000
-----------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/98(2) (8) 6,163,620 277,363
-----------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts.,
Series B, 11/1/03 6,500,000 6,207,500
-----------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 0% Promissory Nts., 10/23/96IDR 9,000,000,000 2,927,661
-----------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 13% Sr. Nts., 6/15/01 9,150,000 8,875,500
-----------------------------------------------------------------------------------------------------
Revlon, Inc., 10.875% Debs., 7/15/10 5,150,000 4,815,250
-----------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05 15,075,000 13,718,250
--------------
70,112,774
- -----------------------------------------------------------------------------------------------------------------------------------
Entertainment--4.8% Arizona Charlie's, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00(5) 2,750,000 2,323,750
-----------------------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 4,600,000 4,186,000
-----------------------------------------------------------------------------------------------------
Aztar Corp., 13.75% Sr. Sub. Nts., 10/1/04 2,700,000 2,740,500
-----------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00(5) 2,000,000 1,870,000
-----------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 12,075,200 12,829,900
-----------------------------------------------------------------------------------------------------
GNF Corp., 10.625% Gtd. Fst. Mtg. Nts., Series B, 4/1/03 6,000,000 3,990,000
-----------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units(2) (5) 2,212,618 1,472,774
-----------------------------------------------------------------------------------------------------
MGM Grand Hotel Finance Corp., 11.75% Fst. Mtg. Nts., Series A, 5/1/99 2,500,000 2,650,000
-----------------------------------------------------------------------------------------------------
MGM Grand Hotel Finance Corp., 12% Fst. Mtg. Nts., 5/1/02 3,500,000 3,797,500
-----------------------------------------------------------------------------------------------------
Resorts International, Inc., 0% Sec. Fst. Mtg. Non-Recourse
Pass-Through Nts., 6/30/00 6,785,000 5,428,000
-----------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 9,700,000 8,245,000
-----------------------------------------------------------------------------------------------------
United Gaming, Inc., 7.50% Cv. Sub. Debs., 9/15/03 2,790,000 2,190,150
--------------
51,723,574
- -----------------------------------------------------------------------------------------------------------------------------------
Media--1.7% Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03 8,950,000 8,547,250
-----------------------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 7,550,000 7,238,562
-----------------------------------------------------------------------------------------------------
News America Holdings, Inc., 10.125% Gtd. Sr. Debs., 10/15/12 2,000,000 2,128,968
--------------
17,914,780
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Development--0.6% Hees International Corp., 10% Sr. Nts., 8/23/99CAD 6,300,000 3,986,105
-----------------------------------------------------------------------------------------------------
Olympia & York First Canadian Place Ltd., 11% Debs.,
Series 3, 11/4/49(2) CAD 4,875,000 2,219,961
--------------
6,206,066
- -----------------------------------------------------------------------------------------------------------------------------------
Retail--4.2% Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts.,
Series B, 9/1/03 9,100,000 8,872,500
-----------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 11,450,000 11,077,875
-----------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03 7,700,000 6,006,000
-----------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 9,170,000 8,688,575
-----------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc., 0%/11.50%
Sr. Sec. Disc. Nts., 8/15/03(3) 21,560,000 9,270,800
-----------------------------------------------------------------------------------------------------
Pay 'N Pak Stores, Inc., 13.50% Sr. Sub. Debs., 6/1/98(2) 7,700,000 77,000
-----------------------------------------------------------------------------------------------------
Zale Delaware, Inc., 11% Gtd. 2nd Priority Sr. Sec. Nts., 7/30/00 2,000,000 2,005,000
--------------
45,997,750
</TABLE>
8 Oppenheimer High Yield Fund
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<TABLE>
<CAPTION>
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Face Market Value
Amount(1) See Note 1
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<S> <C> <C> <C>
Consumer Non-Cyclicals--11.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Food--2.5% ARA Group, Inc. (The), 12% Sub. Debs., 4/15/00 $ 5,200,000 $ 5,551,000
-----------------------------------------------------------------------------------------------------
Heileman Acquisition Corp., 9.625% Sr. Sub. Nts., 1/31/04 7,150,000 5,398,250
-----------------------------------------------------------------------------------------------------
PF Acquisition Corp., 12.25% Sr. Sub. Nts., 2/1/05(5) 4,500,000 4,556,250
-----------------------------------------------------------------------------------------------------
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00 12,550,000 11,232,250
--------------
26,737,750
- -----------------------------------------------------------------------------------------------------------------------------------
Food and Drug AmeriSource Corp., 11.25% Sr. Debs., 7/15/05(6) 6,699,793 6,364,803
Distribution--6.0% -----------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 12,500,000 11,750,000
-----------------------------------------------------------------------------------------------------
Duane Reade, 12% Sr. Nts., Series B, 9/15/02 3,250,000 2,746,250
-----------------------------------------------------------------------------------------------------
Grand Union Co., 11.25% Sr. Nts., 7/15/00 11,850,000 10,546,500
-----------------------------------------------------------------------------------------------------
Grand Union Co., 12.25% Sr. Sub. Nts., 7/15/02 4,500,000 1,777,500
-----------------------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 5,595,000 4,671,825
-----------------------------------------------------------------------------------------------------
Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 13,800,000 13,834,500
-----------------------------------------------------------------------------------------------------
Thrifty Payless, Inc., 11.75% Sr. Nts., 4/15/03 13,600,000 13,430,000
--------------
65,121,378
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare--3.1% American Medical International, Inc., 11.375% Sr. Sub. Nts., 2/1/95 900,000 907,875
-----------------------------------------------------------------------------------------------------
American Medical International, Inc., 13.50% Sr. Sub. Nts., 8/15/01 4,000,000 4,390,000
-----------------------------------------------------------------------------------------------------
Healthtrust, Inc.-The Hospital Co., 10.25% Sub. Nts., 4/15/04 1,550,000 1,648,813
-----------------------------------------------------------------------------------------------------
Healthtrust, Inc.-The Hospital Co., 10.75% Sub. Nts., 5/1/02 11,575,000 12,298,437
-----------------------------------------------------------------------------------------------------
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 6,790,000 7,910,350
-----------------------------------------------------------------------------------------------------
Quorum Health Group, Inc., 11.875% Sr. Sub. Nts., 12/15/02 4,250,000 4,526,250
-----------------------------------------------------------------------------------------------------
Total Renal Care, Inc., Units(3) 3,000,000 2,265,000
--------------
33,946,725
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--8.4% Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., 8/1/01 12,100,000 11,979,000
-----------------------------------------------------------------------------------------------------
HS Resources, Inc., 9.875% Sr. Sub. Nts., 12/1/03 3,250,000 3,038,750
-----------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 7,700,000 7,295,750
-----------------------------------------------------------------------------------------------------
Maxus Energy Corp., 8.50% Debs., 4/1/08 3,500,000 2,765,000
-----------------------------------------------------------------------------------------------------
Maxus Energy Corp., 9.375% Nts., 11/1/03 1,250,000 1,068,750
-----------------------------------------------------------------------------------------------------
Maxus Energy Corp., 9.875% Nts., 10/15/02 2,200,000 1,947,000
-----------------------------------------------------------------------------------------------------
Mesa Capital Corp., 0%/12.75% Sec. Disc. Nts., 6/30/98(3) 4,045,000 3,498,925
-----------------------------------------------------------------------------------------------------
Nuevo Energy Co., 12.50% Sr. Sub. Nts., 6/15/02 5,000,000 5,150,000
-----------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 11,765,000 13,117,975
-----------------------------------------------------------------------------------------------------
Presidio Oil Co., 11.50% Sr. Sec. Nts., Series B, 9/15/00 6,162,000 4,590,690
-----------------------------------------------------------------------------------------------------
Presidio Oil Co., 13.675% Sr. Sub. Gas Indexed Nts.,
Series B, 7/15/02(4) 7,000,000 4,340,000
-----------------------------------------------------------------------------------------------------
Sante Fe Energy Resources, Inc., 11% Sr. Sub. Debs., 5/15/04 12,780,000 12,875,850
-----------------------------------------------------------------------------------------------------
Transco Energy Co., 9.375% Debs., 8/15/01 7,000,000 7,042,273
-----------------------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 11,925,000 12,223,125
--------------
90,933,088
</TABLE>
9 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
-----------------------------------------------------------------------------------------------------
Face Market Value
Amount(1) See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Financial--2.7% Acme Holdings, Inc., 11.75% Sr. Nts., 6/1/00 $ 1,100,000 $ 467,500
-----------------------------------------------------------------------------------------------------
American Life Holding Co., 11.25% Sr. Sub. Nts., 9/15/04 10,030,000 9,779,250
-----------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts.,
Series B, 10/1/03 9,975,000 10,423,875
-----------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02(5) 2,891,556 3,180,712
-----------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03 8,802,000 5,589,270
--------------
29,440,607
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--6.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Containers--1.2% Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 6,700,000 6,566,000
-----------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 10.50% Sr. Sub. Nts., 6/15/02 1,300,000 1,280,500
-----------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 11% Sr. Debs., 12/1/03 5,305,000 5,517,200
--------------
13,363,700
- -----------------------------------------------------------------------------------------------------------------------------------
General Industrial--3.0% American Standard, Inc., 0%/10.50% Sr. Sub. Disc. Debs., 6/1/05(3) 8,150,000 5,297,500
-----------------------------------------------------------------------------------------------------
American Standard, Inc., 9.875% Sr. Sub. Nts., 6/1/01 1,250,000 1,221,875
-----------------------------------------------------------------------------------------------------
EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 10,650,000 9,185,625
-----------------------------------------------------------------------------------------------------
Imo Industries, Inc., 12% Sr. Sub. Debs., 11/1/01 2,500,000 2,512,500
-----------------------------------------------------------------------------------------------------
Imo Industries, Inc., 12.25% Sr. Sub. Debs., 8/15/97 10,025,000 10,012,468
-----------------------------------------------------------------------------------------------------
Interlake Corp., 12.125% Sr. Sub. Debs., 3/1/02 2,400,000 2,256,000
-----------------------------------------------------------------------------------------------------
Terex Corp., 13% Sr. Nts., 8/1/96(5) 1,553,000 1,471,468
--------------
31,957,436
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation--2.2% Kloster Cruise Ltd., 13% Sr. Sec. Nts., 5/1/03 1,895,000 1,733,925
-----------------------------------------------------------------------------------------------------
Sea Containers Ltd., 12.50% Sr. Sub. Debs., Series A, 12/1/04 1,250,000 1,264,063
-----------------------------------------------------------------------------------------------------
Sea Containers Ltd., 12.50% Sr. Sub. Debs., Series B, 12/1/04 2,900,000 2,965,250
-----------------------------------------------------------------------------------------------------
Sea Containers Ltd., 9.50% Sr. Nts., 7/1/03 4,000,000 3,580,000
-----------------------------------------------------------------------------------------------------
Tiphook Financial Corp., 8% Gtd. Nts., 3/15/00 1,409,000 1,000,390
-----------------------------------------------------------------------------------------------------
Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 7,950,000 7,512,750
-----------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc. Nts ,
Series B, 12/15/03(3) 11,965,000 6,042,325
--------------
24,098,703
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--8.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.5% GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 4,700,000 3,619,000
-----------------------------------------------------------------------------------------------------
GPA Holland BV, 8.50% Med.-Term Nts., 2/10/97(5) 2,000,000 1,735,000
-----------------------------------------------------------------------------------------------------
GPA Holland BV, 8.94% Med.-Term Nts., 2/16/99 7,300,000 5,237,750
-----------------------------------------------------------------------------------------------------
GPA Investment BV, 6.40% Nts., 11/19/98 2,000,000 1,410,000
-----------------------------------------------------------------------------------------------------
Tracor, Inc., 10.875% Sr. Sub. Nts., 8/15/01 4,350,000 4,176,000
--------------
16,177,750
- -----------------------------------------------------------------------------------------------------------------------------------
Cable Television--2.9% Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 7,800,000 7,839,000
-----------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 9.875% Sr. Sub. Debs., 2/15/13 1,000,000 900,000
-----------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 11% Sr. Sub. Debs., 6/1/07 2,430,000 2,478,600
-----------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 3,985,000 3,676,162
-----------------------------------------------------------------------------------------------------
Echostar Communications Corp., Units(3) 6,410,000 3,349,225
</TABLE>
10 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Face Market Value
Amount(1) See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cable Television Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts.,
(continued) Series B, 11/1/03(4) $ 8,500,000 $ 7,692,500
-----------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 5,000,000 5,187,500
--------------
31,122,987
- -----------------------------------------------------------------------------------------------------------------------------------
Communications--2.3% Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375%
Sr. Sub. Disc. Nts., 10/1/00(3) 10,456,000 7,319,200
-----------------------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04(3) 250,000 149,375
-----------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub
Disc. Nts., 8/1/03(3) 14,600,000 9,052,000
-----------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 9.75% Sr. Sec. Nts., 8/1/00 3,500,000 3,316,250
-----------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., .50%/14% Sr. Sub
Disc. Nts., 11/15/01(5) (9) 1,633,000 1,085,945
-----------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 10.875% Sr. Debs., 4/15/04 4,200,000 4,263,000
--------------
25,185,770
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--1.5% Bell & Howell Holdings Co., 0%/10.75% Sr. Disc. Debs.,
Series B, 3/1/05(3) 24,000,000 11,880,000
-----------------------------------------------------------------------------------------------------
Berg Electronics Holdings Corp., 11.375% Sr. Sub. Debs., 5/1/03 2,900,000 2,892,750
-----------------------------------------------------------------------------------------------------
Businessland, Inc., 5.50% Sub. Debs., 3/1/07 3,850,000 1,001,000
--------------
15,773,750
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities--1.4% California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04(3) 13,955,000 10,012,713
-----------------------------------------------------------------------------------------------------
EUA Power Corp., 17.50% Mtg. Nts., Series B, 5/15/93(2) 2,960,000 784,400
-----------------------------------------------------------------------------------------------------
EUA Power Corp., 17.50% Sec. Debs., Series C, 11/15/92(2) 1,107,000 127,305
-----------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08(5) 4,250,000 3,676,250
--------------
14,600,668
--------------
Total Corporate Bonds and Notes (Cost $889,407,997) 828,297,547
Shares
===================================================================================================================================
Common Stocks--1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Automobiles--0.1% Leaseway Transportation Corp.(2) 66,785 742,982
- -----------------------------------------------------------------------------------------------------------------------------------
Broadcast Media--0.0% New World Communications Group, Inc., Cl. A(2) 40,292 473,431
- -----------------------------------------------------------------------------------------------------------------------------------
Homebuilding--0.2% Triangle Wire & Cable, Inc.(2) (5) 370,500 1,482,000
-----------------------------------------------------------------------------------------------------
Trizec, Ltd.(2) 117,185 793,662
--------------
2,275,662
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure Time--0.1% Capital Gaming, Inc.(2) 6,291 18,873
-----------------------------------------------------------------------------------------------------
Hollywood Casino Corp.(2) 154,336 887,432
-----------------------------------------------------------------------------------------------------
Resorts International, Inc.(2) 282,691 247,355
--------------
1,153,660
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Stores: Federated Department Stores, Inc 104,570 2,012,973
Department Stores--0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Stores: Department, Finlay Enterprises, Inc., Cl. A(2) 6,400 96,000
General and Specialty--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Shoes--0.0% Pope, Evans & Robbins, Inc.(2) (8) 1,688,400 52,762
</TABLE>
11 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
-----------------------------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energy--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Oil Well Services and Digicon, Inc.(2) 14,790 $ 20,336
Equipment--0.6% -----------------------------------------------------------------------------------------------------
Petrolane, Inc., Cl. B(8) 457,515 6,348,021
--------------
6,368,357
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Engineering and Hillsborough Holdings Corp.(2) (5) 34,280 343
Construction--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Finance--0.1% ECM Fund L.P.I.(5) 1,350 1,350,000
--------------
Total Common Stocks (Cost $15,866,598) 14,526,170
===================================================================================================================================
Preferred Stocks--1.4% Algoma Finance Corp., 5.50% Exch., Series A 65,820 1,008,872
-----------------------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 6,780 679,695
-----------------------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 87,300 8,555,400
-----------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exch., Series B(6) 13,396 1,286,019
-----------------------------------------------------------------------------------------------------
Navistar International Corp., $6.00 Cv., Series G 4,200 216,300
-----------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 94,400 2,997,200
--------------
Total Preferred Stocks (Cost $15,221,328) 14,743,486
Units
===================================================================================================================================
Rights, Warrants
- -----------------------------------------------------------------------------------------------------------------------------------
and Certificates--0.4% ALC Communications Corp. Wts., Exp. 12/95 275,000 2,750
-----------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Excess Cash Flow Payment Certificates,
Series AG-7A 326,800 3,268
-----------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Litigation Trust 1,045,990 10,460
-----------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00(5) 125,000 375,000
-----------------------------------------------------------------------------------------------------
Casino America, Inc. Wts., Exp. 11/96 13,052 6,526
-----------------------------------------------------------------------------------------------------
Digicon, Inc. Wts., Exp. 7/96 4,972 311
-----------------------------------------------------------------------------------------------------
EUA Power Corp., Contingent Interest Certificates 2,000 --
-----------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc. Wts., Exp. 10/03 7,700 38,500
-----------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts., Cl. C, Exp. 12/99 69,654 356,976
-----------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts., Cl. D, Exp. 12/01 69,654 391,804
-----------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 291,367 2,112,410
-----------------------------------------------------------------------------------------------------
Interco, Inc. Wts., Series 1, Exp. 8/99 19,474 80,330
-----------------------------------------------------------------------------------------------------
OSI Specialties Wts., Exp. 4/99 6,469 11,321
-----------------------------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 11/03 182,000 682,500
-----------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97(5) 22,525 451
-----------------------------------------------------------------------------------------------------
Southland Corp. Wts., Exp. 3/96 5,800 14,500
-----------------------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 7/96(5) 534 401
-----------------------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 63,583 108,091
--------------
Total Rights, Warrants and Certificates (Cost $3,313,269) $ 4,195,599
</TABLE>
12 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Structured Instruments--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., Standard & Poor's 500 Index-Linked
Nts., 5.7875%, 2/27/95(5) $ 625,000 $ 772,438
-----------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., Standard & Poor's 500 Index-Linked
Nts., 6.225%, 3/6/95(5) 625,000 784,125
-----------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., Standard & Poor's 500 Index-Linked Nts.,
5.60%, 2/21/95(5) 1,250,000 1,728,750
-----------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Standard & Poor's 500 Index-Linked Nts.,
5.9271%, 2/16/95(5) 1,250,000 1,725,000
--------------
Total Structured Instruments (Cost $5,707,500) 5,010,313
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,142,929,685) 99.1% 1,071,496,333
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.9 9,969,370
----- --------------
Net Assets 100.0% $1,081,465,703
===== ==============
1. Face amount is reported in local currency. Foreign currency abbreviations are as follows:
ARA--Argentine Austral
AUD--Australian Dollar
CAD--Canadian Dollar
IDR--Indonesian Rupiah
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 6 of Notes to Financial Statements.
6. Interest or dividend is paid in kind.
7. Interest--Only Strips represent the right to receive the monthly interest payments on an
underlying pool of mortgage loans. These securities typically decline in price as interest rates
decline. Most other fixed-income securities increase in price when interest rates decline. The
principal amount of the underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes in prepayment rates
than traditional mortgage-backed securities (for example, GNMA pass-throughs).
8. 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 period
ended December 31, 1994. The aggregate fair value of all securities of affiliated companies as of
December 31, 1994 amounted to $6,678,146. Transactions during the period in which the issuer was an
affiliate are as follows:
</TABLE>
<TABLE>
<CAPTION>
Balance June 30, 1994 Gross Additions Gross Redemptions Balance December 31, 1994
----------------------- ---------------------- --------------------- ------------------------- Interest
Stocks Shares/Face Cost Shares/Face Cost Shares/Face Cost Shares/Face Cost Income
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <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 457,515 4,575,150 -- -- -- -- 457,515 4,575,150 34,176
Bonds and Notes
- -----------------------------------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.,
7% Sr. Nts., 5/15/98 6,163,620 4,449,094 -- 222,705 -- -- 6,163,620 4,671,799 --
----------- ---------- --------- ----------- -------
$10,138,628 $ 222,705 -- $10,361,333 $34,176
=========== ========== ========= =========== =======
9. Represents a bond that pays contingent supplemental interest until it converts to a fixed rate of
interest at a designated future date.
See accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1994 (Unaudited)
-----------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C> <C>
Assets Investments, at value (including repurchase agreements of $124,800,000)
(cost $1,142,929,685)--see accompanying statement $ 1,071,496,333
-----------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 22,667,583
Shares of beneficial interest sold 2,396,118
Investments sold 1,320,600
-----------------------------------------------------------------------------------------------------
Other 736,337
Total assets 1,098,616,971
===================================================================================================================================
Liabilities Bank overdraft 701,825
Payables and other liabilities:
Shares of beneficial interest redeemed 7,984,415
Investments purchased 3,927,615
Dividends 3,513,469
Distribution and service plan fees--Note 5 543,473
Other 480,472
---------------
Total liabilities 17,151,269
===================================================================================================================================
Net Assets $ 1,081,465,702
===============
===================================================================================================================================
Composition of Paid-in capital $ 1,341,518,684
Net Assets -----------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income (5,133,458)
-----------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) from investment transactions (183,489,109)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies (71,430,415)
---------------
Net assets $ 1,081,465,702
===============
===================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$958,342,045 and 74,675,743 shares of beneficial interest outstanding) $12.83
Maximum offering price per share (net asset value plus sales
charge of 4.75% of offering price) $13.47
-----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $123,123,657 and 9,640,553 shares of beneficial
interest outstanding) $12.77
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended December 31, 1994 (Unaudited)
-----------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C> <C>
Investment Income Interest (net of withholding taxes of $198,361) $ 59,245,161
-----------------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of withholding taxes of $4,965) 666,530
Affiliated companies 34,177
------------
Total income 59,945,868
===================================================================================================================================
Expenses Management fees--Note 5 3,706,595
-----------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 959,492
Class B--Note 5 551,048
-----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 616,119
-----------------------------------------------------------------------------------------------------
Shareholder reports 251,211
-----------------------------------------------------------------------------------------------------
Custodian fees and expenses 163,835
-----------------------------------------------------------------------------------------------------
Legal and auditing fees 31,894
-----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 31,662
-----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 226
Class B 14,364
-----------------------------------------------------------------------------------------------------
Other 80,471
------------
Total expenses 6,406,917
===================================================================================================================================
Net Investment Income (Loss) 53,538,951
===================================================================================================================================
Realized and Unrealized Net realized gain (loss) from:
Gain (Loss) on Investments, Investments (19,298,094)
Options Written Closing of options written--Note 4 (578,488)
And Foreign Currency Foreign currency transactions 711,911
Transactions ------------
Net realized gain (loss) (19,164,671)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (44,810,351)
Translation of assets and liabilities denominated in foreign currencies (361,461)
------------
Net change (45,171,812)
------------
Net realized and unrealized gain (loss) on investments, options
written and foreign currency transactions (64,336,483)
===================================================================================================================================
Net Increase (Decrease) in Net Assets Resulting From Operations $(10,797,532)
============
See accompanying Notes to Financial Statements.
</TABLE>
15 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------------
Six Months Ended
December 31, 1994 Year Ended
(Unaudited) June 30, 1994
===================================================================================================================================
<S> <C> <C> <C>
Operations Net investment income (loss) $ 53,538,951 $ 116,850,546
-----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments, options written and foreign
currency transactions (19,164,671) 14,669,174
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments
and translation of assets and liabilities denominated in
foreign currencies (45,171,812) (59,741,123)
--------------- ---------------
Net increase (decrease) in net assets resulting from operations (10,797,532) 71,778,597
===================================================================================================================================
Equalization Net change -- (96,177)
===================================================================================================================================
Dividends and Dividends from net investment income:
Distributions Class A ($.6710 and $1.407 per share, respectively) (50,061,075) (109,900,662)
To Shareholders Class B ($.6187 and $1.295 per share, respectively) (5,072,871) (4,671,944)
===================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets resulting from Class A
Transactions beneficial interest transactions--Note 2 (31,939,057) (30,446,407)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Class B
beneficial interest transactions--Note 2 42,381,027 80,742,052
--------------- ---------------
===================================================================================================================================
Net Assets Total increase (decrease) (55,489,508) 7,405,459
-----------------------------------------------------------------------------------------------------
Beginning of period 1,136,955,211 1,129,549,752
--------------- ---------------
End of period (including overdistributed net investment income
of $5,133,458 and $3,538,462, respectively) $ 1,081,465,703 $ 1,136,955,211
=============== ===============
See accompanying Notes to Financial Statements.
</TABLE>
16 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------------------------
Class A Class B
---------------------------------------------------------------- -----------------------------
Six Months Six Months Year
Ended Ended Dec. Ended
Dec. 31, 1994 Year Ended June 30, 31, 1994 June 30,
(Unaudited) 1994 1993 1992 1991 1990 (Unaudited) 1994 1993(1)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning
of period $ 13.63 $ 14.16 $ 13.76 $ 13.08 $ 13.60 $ 15.42 $ 13.57 $ 14.12 $ 13.87
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .65 1.42 1.60 1.79 1.91 1.89 .59 1.35 .23
Net realized and unrealized
gain (loss) on investments,
options written and foreign
currency transactions (.78) (.54) .36 .68 (.51) (1.79) (.77) (.60) .27
------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations (.13) .88 1.96 2.47 1.40 .10 (.18) .75 .50
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (.67) (1.41) (1.56) (1.79) (1.92) (1.92) (.62) (1.30) (.25)
Net asset value, end of period $ 12.83 $ 13.63 $ 14.16 $ 13.76 $ 13.08 $ 13.60 $ 12.77 $ 13.57 $ 14.12
======= ======= ======= ======= ======= ======= ======= ======= =======
================================================================================================================================
Total Return, at Net Asset Value(2) (1.00)% 6.27% 15.31% 20.06% 11.90% .85% (1.39)% 5.31% 3.54%
================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $958,342 $1,049,446 $1,119,056 $902,562 $657,182 $650,989 $123,124 $87,509 $10,493
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $992,626 $1,111,103 $978,671 $768,339 $601,758 $734,703 $109,510 $51,816 $4,405
- --------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 74,676 77,002 79,047 65,581 50,258 47,870 9,641 6,449 743
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 9.72%(3) 10.10% 11.59% 13.15% 14.94% 13.00% 8.84%(3) 8.98% 10.84%(3)
Expenses 1.07%(3) .96% .97% .92% .96% .93% 1.90%(3) 1.88% 2.28%(3)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 46.7% 96.7% 87.2% 64.0% 90.4% 63.2% 46.7% 96.7% 87.2%
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, 1994 were $59,797,016 and $96,103,814, respectively.
See accompanying Notes to Financial Statements.
</TABLE>
17 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
-----------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
1. Significant Oppenheimer High Yield Fund (the Fund) is registered under the Investment Company Act of 1940, as
Accounting Policies 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 and/or service 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 day the
New York Stock Exchange is open for business. 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 using dealer-supplied valuations provided the Manager is satisfied that the firm rendering
the quotes is reliable and that the quotes reflect current market value, or under consistently
applied procedures established by the Board of Trustees to determine fair value in good faith.
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. Forward
foreign currency contracts are valued at the closing price on the London foreign exchange market on a
daily basis. Options are valued at the last sale price on the principal exchange on which the option
is traded or, in the absence of any transactions that day, the value is based on the last sale on the
prior trading date if it is within the spread between the closing bid and asked prices. If the last
sale price is outside the spread, the closing bid or asked price closest to the last reported sale
price is used.
-----------------------------------------------------------------------------------------------------
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, 1994, securities with an aggregate market value of
$7,587,403, representing .69% 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 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 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.
-----------------------------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to have legally segregated
in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all
securities held as collateral for repurchase agreements. The market value of the underlying
securities is required to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the seller enters an
insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or
limited.
-----------------------------------------------------------------------------------------------------
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.
</TABLE>
18 Oppenheimer High Yield Fund
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<CAPTION>
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<S> <C>
1. Significant Federal Income Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue
Accounting Policies Code applicable to regulated investment companies and to distribute all of its taxable income,
(continued) 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, 1994, the Fund had available
for federal income tax purposes an unused capital loss carryover of approximately $152,818,000,
$422,000 of which will expire in 1997, $14,942,000 in 1998, $74,080,000 in 1999, $42,206,000 in 2000
and $21,168,000 in 2001.
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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 $12,664,697 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 day the New York Stock Exchange is open for business and pay
such dividends monthly. Distributions from net realized gains on investments, if any, will be
declared at least once each year.
-----------------------------------------------------------------------------------------------------
Change in Accounting Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes primarily because of
premium amortization, paydown gains and losses and the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes. The character of the distributions made during
the year from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year that the income or realized
gain (loss) was recorded by the Fund. Effective July 1, 1993, the Fund adopted Statement of Position
93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies. As a result, the Fund changed the
classification of distributions to shareholders to better disclose the differences between financial
statement amounts and distributions determined in accordance with income tax regulations.
Accordingly, subsequent to June 30, 1993, amounts have been reclassified to reflect a decrease in
paid-in capital of $24,451, a decrease in undistributed net investment income of $5,337,981, and a
decrease in accumulated net realized loss on investments of $5,362,432.
-----------------------------------------------------------------------------------------------------
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 par value shares of beneficial interest of each
Beneficial Interest class. Transactions in shares of beneficial interest were as follows:
Six Months Ended Year Ended
December 31, 1994 June 30, 1994
--------------------------------- ---------------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 7,997,429 $ 115,764,721 23,301,265 $ 328,422,185
Dividends reinvested 2,053,617 17,102,797 4,259,599 60,060,363
Redeemed (12,377,465) (164,806,575) (29,606,189) (418,928,955)
----------- ------------- ----------- -------------
Net increase (decrease) (2,326,419) $ (31,939,057) (2,045,325) $ (30,446,407)
=========== ============= =========== =============
-----------------------------------------------------------------------------------------------------
Class B:
Sold 5,038,812 $ 66,711,827 7,150,795 $ 100,862,645
Dividends reinvested 171,806 2,260,921 146,613 2,058,843
Redeemed (2,019,190) (26,591,721) (1,591,185) (22,179,436)
----------- ------------- ----------- -------------
Net increase 3,191,428 $ 42,381,027 5,706,223 $ 80,742,052
=========== ============= =========== =============
</TABLE>
19 Oppenheimer High Yield Fund
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<CAPTION>
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Notes to Financial Statements (Unaudited) (Continued)
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===================================================================================================================================
<S> <C>
3. Unrealized Gains At December 31, 1994, net unrealized depreciation on investments of $71,433,352 was composed of gross
And Losses on appreciation of $14,252,270, and gross depreciation of $85,685,622.
Investments
===================================================================================================================================
4. Option Activity The Fund may buy and sell put and call options, or write covered call options on portfolio securities
in order to produce incremental earnings or protect against changes in the value of portfolio
securities.
The Fund generally purchases put options or writes covered call options to hedge against adverse
movements in the value of portfolio holdings. When an option is written, the Fund receives a premium
and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of
the option. The Fund segregates assets to cover its obligations under option contracts.
Options are valued daily based upon the last sale price on the principal exchange on which the
option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a
gain or loss upon the expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written put option, or the
cost of the security for a purchased put or call option is adjusted by the amount of premium received
or paid.
In this report, securities segregated to cover outstanding call options are noted in the
Statement of Investments. Shares subject to call, expiration date, exercise price, premium received
and market value are detailed in a footnote to the Statement of Investments. Options written are
reported as a liability in the Statement of Assets and Liabilities. Gains and losses are reported in
the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity for profit if the
market price of the security increases and the option is exercised. The risk in writing a put option
is that the Fund may incur a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is
exercised. The Fund also has the additional risk of not being able to enter into a closing
transaction if a liquid secondary market does not exist.
Call option activity for the six months ended December 31, 1994 was as follows:
Number of Amount of
Options Premiums
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at June 30, 1994 -- $ --
-----------------------------------------------------------------------------------------------------
Options written 29,981,244 379,370
-----------------------------------------------------------------------------------------------------
Options closed (29,981,244) (379,370)
----------- ---------
Options outstanding at December 31, 1994 -- $ --
=========== =========
The cost of cancelling options in closing purchase transactions was $957,858, resulting in a net
short-term loss of $578,488.
</TABLE>
20 Oppenheimer High Yield Fund
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<CAPTION>
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<S> <C>
5. Management Fees Management fees paid to the Manager were in accordance with the investment advisory agreement with
And Other Transactions the Fund which provides for an annual fee of .75% on the first $200 million of net assets with a
With Affiliates 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, 1994, commissions (sales charges paid by investors) on
sales of Class A shares totaled $1,328,499, of which $312,719 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, 1994, OFDI received contingent deferred sales
charges of $146,609 upon redemption of Class B shares, as reimbursement for sales commissions
advanced by OFDI at the time of sale of such 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, each class may expend up to .25% of its net assets annually to
reimburse OFDI for costs incurred in connection with the personal service and maintenance of accounts
that hold 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, the Board of Trustees may allow the Fund to continue payment of the asset-based sales charge to
OFDI for distribution expenses incurred on Class B shares sold prior to termination or discontinuance
of the plan. During the six months ended December 31, 1994, OFDI paid $13,151 to an affiliated
broker/dealer as reimbursement for Class A personal service and maintenance expenses and retained
$511,458 as reimbursement for Class B sales commissions and service fee advances, as well as
financing costs.
</TABLE>
21 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
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Notes to Financial Statements (Unaudited) (Continued)
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===================================================================================================================================
<S> <C>
6. 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,
excluding securities eligible for resale pursuant to Rule 144A of the Act, amount to $15,592,569, or
1.44% of the Fund's net assets, at December 31, 1994. Illiquid and/or restricted securities,
including those restricted securities that are transferable under Rule 144A of the Act are listed
below.
Valuation
Per Unit
as of
Dec. 31,
Security Acquisition Date Cost Per Unit 1994
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aftermarket Technology Corp., 12% Sr. Sub.
Nts., 8/1/04(1) 7/22/94 $ 100.00 $ 103.50
-----------------------------------------------------------------------------------------------------
Arizona Charlie's, Inc., 12% Fst. Mtg. Nts.,
Series A, 11/15/00 11/18/93 $ 100.00 $ 84.50
-----------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/15/93 $ 2.00 $ 3.00
-----------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% Fst. Mtg. Nts.,
Series A, 11/15/00 11/18/93 $ 87.50 $ 93.50
-----------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 4/14/92 $ 100.00 $ 110.00
-----------------------------------------------------------------------------------------------------
ECM Fund L.P.I. Common Stock 4/14/92 $1,000.00 $1,000.00
-----------------------------------------------------------------------------------------------------
GPA Holland BV, 8.50% Med.-Term Nts., 2/10/97(1) 6/30/93 $ 69.50 $ 86.75
-----------------------------------------------------------------------------------------------------
Hillsborough Holdings Corp. Common Stock 1/7/88 $ 5.00 $ 0.01
-----------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., Standard & Poor's
500 Index-Linked Nts., 6.225%, 3/6/95 12/2/94 $ 154.20 $ 125.46
-----------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., Standard & Poor's
500 Index-Linked Nts., 5.7875%, 2/27/95 11/25/94 $ 155.80 $ 123.59
-----------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units(1) 2/16/94--11/16/94 $ 98.78 $ 66.56
-----------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., Standard & Poor's
500 Index-Linked Nts., 5.60%, 2/21/95 11/18/94 $ 151.40 $ 138.30
-----------------------------------------------------------------------------------------------------
PF Acquisition Corp., 12.25% Sr. Sub. Nts., 2/1/05(1) 10/21/94 $ 100.00 $ 101.25
-----------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., .50%/14% Sr. Sub. Disc.
Nts., 11/15/01(1) 11/17/94 $ 66.83 $ 66.50
-----------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97 7/29/92 $ -- $ 0.02
-----------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Standard & Poor's
500 Index-Linked Nts., 5.9271%, 2/16/95 11/16/94 $ 150.20 $ 138.00
-----------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., 12/15/04(1) 12/13/94--12/22/94 $ 100.71 $ 103.00
-----------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts.,
Series A, 12/28/08(1) 12/20/93--12/22/94 $ 99.70 $ 86.50
-----------------------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 7/96(1) 4/5/94 $ 1.52 $ 0.75
-----------------------------------------------------------------------------------------------------
Terex Corp., 13% Sr. Nts., 8/1/96(1) 10/20/94 $ 96.75 $ 94.75
-----------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Common Stock 5/2/94 $ 9.50 $ 4.00
-----------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts.,
Series 1993-A, 12/1/11(1) 11/8/93 $ 100.00 $ 86.50
1. Transferable under Rule 144A of the Act.
</TABLE>
22 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
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Oppenheimer High Yield Fund
-----------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
Officers and Trustees James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
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
Robert J. Bishop, Assistant Treasurer
Scott Farrar, 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 LLP
===================================================================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, 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.
</TABLE>
23 Oppenheimer High Yield Fund
<PAGE>
"How may I help you?"
As an OppenheimerFunds shareholder, some special privileges are available to
you. Whether it's automatic investment plans, informative newsletters and
hotlines, or ready account access, you can benefit from services designed to
make investing simple.
And when you need help, our Customer Service Representatives are
only a toll-free phone call away. They can provide information about your
account and handle administrative requests. You can reach them at our General
Information number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in
AccountLink, a convenient service that "links" your OppenheimerFunds accounts
and your bank checking or savings account, you can use the Telephone
Transactions number to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day,
7 days a week. PhoneLink gives you access to a variety of fund, account, and
market information. It also gives you the ability to make transactions using
your touch-tone phone. Of course, you can always speak with a Customer Service
Representative during business hours.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, non-profit
organization made up of over 3,200 customer service management professionals
from around the country, honored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
Information
General Information
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
PhoneLink
24 hours a day, automated information and transactions
1-800-533-3310
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for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful messages on the economy and issues
that affect your investments
1-800-835-3104
RS0280.001.0295
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