<PAGE>
OPPENHEIMER HIGH YIELD FUND
Annual Report June 30, 1995
"We need
our money
[PHOTO] to work
as hard
as it can."
<PAGE>
NEWS
"THIS FUND IS PERFECT FOR CONSERVATIVE, YIELD-HUNGRY INVESTORS."
--MORNINGSTAR MUTUAL FUNDS
12/23/94
STANDARDIZED YIELD
For the 30 Days Ended 6/30/95:(3)
Class A
9.17%
Class B
8.80%
THE FUND'S CLASS A SHARES ARE RANKED **** AMONG 751 TAXABLE BOND FUNDS
FOR THE 3-, 5- AND 10-YEAR PERIODS ENDED 6/30/95.(4)
This Fund is for people who want HIGH monthly INCOME from their investment.
HOW YOUR FUND IS MANAGED
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.
PERFORMANCE
Total return at net asset value for the year ended 6/30/95 was 7.09% for Class A
shares and 6.21% for Class B shares.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5- and 10-year periods ended 6/30/95 were 2.00%,
10.92% and 9.84%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 6/30/95 and since inception of the Class
on 5/3/93 were 1.36% and 5.81%, respectively.(2)
OUTLOOK
"We continue to view the market cautiously. We want to protect the gains
we've made, so we're more comfortable staying in better credits. This is a
position we believe will pay off as the economic cycle progresses."
Ralph Stellmacher, Portfolio Manager
June 30, 1995
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.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/94, 6/30/90
and 6/30/85, after deducting the current maximum initial sales charge of 4.75%.
Class B returns show results of hypothetical investments on 6/30/94 and 5/3/93
(inception of class), and the deduction of the applicable contingent deferred
sales charge of 5% (1-year) and 3% (since inception). An explanation of the
different performance calculations is in the Fund's prospectus.
3. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 6/30/95, divided by the maximum offering price
at the end of the period, compounded semiannually and then annualized. Falling
net asset values will tend to artificially raise yields.
4. Source: MORNINGSTAR MUTUAL FUNDS, 6/30/95. 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 returns, 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-, 5- and 10-year
rankings for the class, which were 5, 4 and 4 stars, respectively, weighted 20%,
30% and 50%, respectively. There were 750, 482 and 165 funds ranked in these
respective periods. Rankings are subject to change.
The Fund's Class A and Class B shares have the same portfolio.
2 Oppenheimer High Yield Fund
<PAGE>
Dear OppenheimerFunds Shareholder,
[Photo]
James C. Swain
Chairman
Oppenheimer
High Yield Fund
[Photo]
Jon S. Fossel
President
Oppenheimer
High Yield Fund
In contrast to last year, the first half of 1995 has been exceptionally good
for the bond market. Almost all types of bonds have participated in the
upswing and, in many cases, have more than made up for last year's declines in
the first half alone--rewarding investors who were patient through the
market's short-term difficulties. The strength of the current market adds to
evidence showing, once again, that profitable investing calls for a long-term
perspective.
The single most important factor behind the bond rally was a change in the
Federal Reserve's monetary policy. Between February 1994 and February 1995,
the Fed raised rates aggressively to preempt possible rising inflation by
slowing the economy to a more moderate growth rate--thus prolonging the current
cycle of economic growth. As evidence began to mount that indicated the
economy was indeed slowing, the Fed stopped raising rates. Indications now
are that the desired slowdown, or "soft landing" you may have read about, has
been achieved. This has allowed rates to decline considerably, which in turn
pushed bond prices up dramatically.
While a near perfect landing is unlikely, our expectation going forward is
that with the current fundamentals in place, we will continue to experience
moderate, sustainable growth with relatively low inflation.
We believe the Fed will not feel pressure to tighten monetary policy in
the near term. Still, until the full extent of the economic slowdown is
known, some questions remain. Signs of economic pickup later this year could
motivate the Fed to raise rates again to combat potential inflation. The more
likely scenario, however, is that the Fed might actually lower rates during
the second half if the economy slows too much.
In light of the uncertainties in the market, your Fund's managers remain
cautious with an eye toward opportunity, so we're positioning investments
somewhat defensively at this time. The bond markets have performed very well
and we don't want to give back the gains the Fund has made. Thus, your Fund's
managers continue to focus on the income potential of bonds, because this
area has contributed most significantly and predictably to performance over
time.
Oppenheimer Management's fixed income investment team will continue to
monitor the economy and market conditions going forward to keep ahead of
significant events. We believe a conservative stance and an income
orientation in addition to this year's strong capital appreciation justify a
positive outlook for fixed income investments across the board.
Your portfolio manager discusses the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, and we
look forward to helping you continue to reach your investment goals in the
future.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
July 24, 1995
3 Oppenheimer High Yield Fund
<PAGE>
Q + A
Q How
did high
yield bonds
PERFORM?
AN INTERVIEW WITH YOUR FUND'S MANAGER.
OVER THE COURSE OF THE YEAR, BOTH THE STOCK AND BOND MARKETS REBOUNDED
DRAMATICALLY. HOW DID HIGH YIELD BONDS, WHICH HAVE CHARACTERISTICS OF BOTH
MARKETS, PERFORM?
The first half of the year has been the best of all worlds for high yield
bonds--a period of declining interest rates coupled with solid corporate
earnings. And the market is responding to a view that the economy has
achieved the desired soft landing. With an economy that is slower but still
growing, we believe interest rates will be relatively stable compared to
1994, but growth should still be sufficiently strong to pull earnings and
cash flow along at a healthy pace.
THE SUPPLY OF HIGH YIELD BONDS WAS LOW IN THE BEGINNING OF 1995. WHAT DID
THIS MEAN TO THE FUND?
Relatively few new issues hit the market in the beginning of this year
despite lower interest rates, so investor demand pushed prices of existing
bonds higher. In contrast to last year, high yield bond funds are now
experiencing positive cash flows. New money from investors plus monthly
coupon reinvestment is a large factor behind strong demand in a market where
new supply has been relatively low.
DOES A SLOWER-GROWTH OUTLOOK THREATEN HIGH YIELD BOND ISSUERS' ABILITY TO MAKE
INTEREST AND PRINCIPAL PAYMENTS?
In some instances it could. Although we don't anticipate a recession, a slower
growth environment may cause high yield issuers' earnings and cash flows to
come under more pressure. That's why we've been managing the Fund more
conservatively, focusing on issuers' financial strength and orienting the
portfolio toward higher quality. Of course, investors in high yield bonds are
subject to greater risk that the issuer will default
4 Oppenheimer High Yield Fund
<PAGE>
in its principal or interest payments, but by emphasizing portfolio quality
within the non-investment grade spectrum, we're reducing some of that risk.
WHAT SECTORS OF THE MARKET DO YOU FIND ATTRACTIVE IN THE CURRENT ENVIRONMENT?
As usual, we are very well diversified across sectors. Recently, we've been
adding to our exposure to refining, healthcare, energy, gaming, and
supermarkets, and decreasing our holdings of retailers.(1)
WITHIN THESE SECTORS, WHAT COMPANIES MEET YOUR CRITERIA FOR BOTH INCOME AND
QUALITY?
In refining, which we're buying because a difficult 1994 left prices
depressed, we like Clark R&M and Crown Central Petroleum.
In healthcare and supermarkets, which are defensive moves against the
economic slowdown, we're buying National Medical Enterprises and Charter
Medical, and Grand Union and Penn Traffic, respectively.
We have a relatively high exposure to the energy sector. We own Triton
Energy and Santa Fe Energy, and are considering buying into natural gas after
1994's warm winter hurt demand and consequently prices.
Prices are attractive in gaming. The Fund's portfolio includes Boyd Gaming,
Aztar and Empress River Casino.
WHAT IS YOUR OUTLOOK FOR THE FUND AND THE MARKET?
Fund shareholders have received a great return so far this year. Going
forward, however, we continue to view the market cautiously. We want to
protect the gains we've made, so we're more comfortable staying in better
credits. This is a position we believe will pay off as the economic cycle
progresses./ /
1. The Fund's portfolio is subject to change.
A The
first half
of the year
has been
the BEST
of all worlds
for high
yield bonds.
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
5 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1995
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS--2.7%
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--2.3%
- ---------------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED--2.3% Federal National Mortgage Assn.:
Interest-Only Stripped Mtg.-Backed Security,
Trust 218, Cl. 2, 7.50%, 4/25/23(2) $19,876,052 $5,832,379
Interest-Only Stripped Mtg.-Backed Security,
Trust 240, Cl. 2, 7%, 9/25/23(2) 51,472,859 16,278,292
Interest-Only Stripped Mtg.-Backed Security,
Trust 252, Cl. 2, 7.50%, 11/25/23(2) 19,918,813 5,950,746
-----------
28,061,417
- ---------------------------------------------------------------------------------------------------------------------------------
PRIVATE--0.4%
- ---------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY--0.4% Resolution Trust Corp., Commercial Mtg.
Pass-Through Certificates,
Series 1994-C2, Cl. E, 8%, 4/25/25 2,901,471 2,608,151
-----------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg.
Pass-Through Certificates,
Series 1995-C1, Cl. F, 6.90%, 2/25/27 3,250,000 2,831,563
-----------
5,439,714
-----------
Total Mortgage-Backed Obligations (Cost $34,468,879) 33,501,131
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--4.4%
- ---------------------------------------------------------------------------------------------------------------------------------
TREASURY--4.4% U.S. Treasury Nts., 10.50%, 8/15/95 (Cost $55,880,879)(3) 55,250,000 55,560,781
- ---------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS--2.5% Argentina (Republic of) Bonds, Bonos de Consolidacion
de Deudas, Series I, 4.513%, 4/1/01(4)(5) ARA 1,503,472 710,235
-----------------------------------------------------------------------------------------
Brazil (Federal Republic of) Debs., 7.25%, 4/15/06(4) 4,500,000 2,685,938
-----------------------------------------------------------------------------------------
Brazil (Federal Republic of) Par Bonds, 4.25%, 4/15/24(6) 10,000,000 4,462,500
-----------------------------------------------------------------------------------------
Bulgaria (Republic of) Disc. Bonds, Tranche A,
7.562%, 7/28/24(4) 13,500,000 6,690,938
-----------------------------------------------------------------------------------------
Ecuador (Republic of) Par Bonds, 3%, 2/28/25(4) 6,000,000 1,938,750
-----------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 7.375%, 1/1/09(4) 13,000,000 7,572,500
-----------------------------------------------------------------------------------------
Poland (Republic of) Par Bonds, 2.75%, 10/27/24(6) 10,000,000 4,325,000
-----------------------------------------------------------------------------------------
Poland (Republic of) Past Due Interest Bonds,
3.25%, 10/27/14(6) 5,000,000 3,006,250
-----------
Total Foreign Government Obligations (Cost $30,134,018) 31,392,111
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--0.8% San Joaquin Hills, California Transportation Corridor
Agency Toll Road Capital Appreciation Revenue Bonds,
Jr. Lien, Zero Coupon, 1/1/12 15,000,000 4,149,838
-----------------------------------------------------------------------------------------
San Joaquin Hills, California Transportation Corridor
Agency Toll Road Capital Appreciation Revenue Bonds,
Jr. Lien, Zero Coupon, 1/1/28 74,000,000 5,363,076
-----------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (Cost $7,885,852) 9,512,914
- ---------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--84.7%
- ---------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY--16.6%
- ---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.2% Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 8,050,000 8,452,500
-----------------------------------------------------------------------------------------
NL Industries, Inc., 0%/13%
Sr. Sec. Disc. Nts., 10/15/05(7) 10,490,000 7,447,900
-----------------------------------------------------------------------------------------
NL Industries, Inc., 11.75%
Sr. Sec. Nts., 10/15/03 3,200,000 3,344,000
-----------------------------------------------------------------------------------------
OSI Specialties Holding Co., 0%/11.50%
Sr. Sec. Disc. Debs., Series B, 4/15/04(7) 6,469,000 4,560,645
-----------------------------------------------------------------------------------------
OSI Specialties, Inc., 9.25%
Sr. Sub. Nts., 10/1/03 4,195,000 4,236,950
-----------------------------------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr. Nts., 12/1/04 7,400,000 7,899,500
-----------------------------------------------------------------------------------------
UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05 3,400,000 3,655,000
-----------
39,596,495
</TABLE>
6 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
CONTAINERS--3.5% Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 $2,450,000 $2,535,750
-----------------------------------------------------------------------------------------
Owens-Illinois, Inc., 11% Sr. Debs., 12/1/03 11,955,000 13,240,163
-----------------------------------------------------------------------------------------
U.S. Can Co., 13.50% Sr. Sub. Nts., 1/15/02 25,450,000 28,122,250
-----------
43,898,163
- ---------------------------------------------------------------------------------------------------------------------------------
METALS/MINING--0.7% Kaiser Aluminum & Chemical Corp., 9.875%
Sr. Nts., 2/15/02 8,560,000 8,388,800
- ---------------------------------------------------------------------------------------------------------------------------------
PAPER--6.9% Domtar, Inc.:
11.25% Debs., 9/15/17 1,060,000 1,134,200
11.75% Sr. Nts., 3/15/99 600,000 663,000
12% Nts., 4/15/01 1,060,000 1,224,300
-----------------------------------------------------------------------------------------
Gaylord Container Corp., 0%/12.75%
Sr. Sub. Disc. Debs., 5/15/05(7) 3,150,000 3,087,000
-----------------------------------------------------------------------------------------
Gaylord Container Corp., 11.50%
Sr. Nts., 5/15/01 8,200,000 8,702,250
-----------------------------------------------------------------------------------------
QUNO Corp., 9.125% Sr. Nts., 5/15/05 8,200,000 8,200,000
-----------------------------------------------------------------------------------------
Repap New Brunswick, Inc.:
9.50% First Priority Sr. Sec. Nts., 7/15/00(4) 1,300,000 1,322,750
9.875% First Priority Sr. Sec. Nts., 7/15/00 6,600,000 6,699,000
-----------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.25% First Priority
Sr. Sec. Nts., 2/1/02 12,020,000 11,674,425
-----------------------------------------------------------------------------------------
Riverwood International Corp.:
10.375% Sr. Sub. Nts., 6/30/04 3,300,000 3,630,000
10.75% Sr. Nts., 6/15/00 2,000,000 2,160,000
11.25% Sr. Sub. Nts., 6/15/02 10,450,000 11,416,625
-----------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., 12/15/04 8,350,000 9,018,000
-----------------------------------------------------------------------------------------
Stone Consolidated Corp.:
10.25% Sr. Sec. Nts., 12/15/00 9,385,000 9,783,863
-----------------------------------------------------------------------------------------
Stone Container Corp.:
10.75% First Mtg. Nts., 10/1/02 3,600,000 3,798,000
10.75% Sr. Sub. Nts., 6/15/97 1,000,000 1,046,250
9.875% Sr. Nts., 2/1/01 3,000,000 3,000,000
-----------
86,559,663
- ---------------------------------------------------------------------------------------------------------------------------------
STEEL--2.3% AK Steel Corp., 10.75% Gtd. Sr. Nts., 4/1/04 3,200,000 3,368,000
-----------------------------------------------------------------------------------------
Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01 26,985,000 25,770,675
-----------
29,138,675
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--22.5%
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--2.9% Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 5/27/98 17,500,000 13,037,500
-----------------------------------------------------------------------------------------
Harman International Industries, Inc.,
12% Sr. Sub. Nts., 8/1/02 12,000,000 13,140,000
-----------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc.,
0%/11.50% Sr. Sec. Disc. Nts., 8/15/03(7) 19,410,000 9,802,050
-----------------------------------------------------------------------------------------
Revlon Consumer Products Corp.,
10.50% Sr. Sub. Nts., Series B, 2/15/03 460,000 453,100
-----------
36,432,650
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO--2.3% Consolidated Cigar Corp., 10.50% Sr. Sub. Nts., 3/1/03 2,000,000 1,970,000
-----------------------------------------------------------------------------------------
Cott Corp., 9.375% Sr. Nts., 7/1/05 5,650,000 5,720,625
-----------------------------------------------------------------------------------------
Curtice-Burns Foods, Inc., 12.25% Sr. Sub. Nts., 2/1/05 4,500,000 4,803,750
-----------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 5,400,000 4,023,000
-----------------------------------------------------------------------------------------
Dr. Pepper Bottling Holdings, Inc., 0%/11.625%
Sr. Disc. Nts., 2/15/03(7) 1,000,000 745,000
-----------------------------------------------------------------------------------------
Heileman Acquisition Corp., 9.625% Sr. Sub. Nts., 1/31/04 7,150,000 4,969,250
-----------------------------------------------------------------------------------------
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00 6,625,000 6,393,125
-----------
28,624,750
</TABLE>
7 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE--5.4% Abbey Healthcare Group, Inc., 9.50%
Sr. Sub. Nts., 11/1/02 $1,500,000 $1,552,500
-----------------------------------------------------------------------------------------
AmeriSource Corp., 11.25% Sr. Debs., 7/15/05(5) 3,538,328 3,620,152
-----------------------------------------------------------------------------------------
Charter Medical Corp., 11.25% Sr. Sub. Nts., 4/15/04 11,430,000 12,201,525
-----------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp., 6.91% Nts., 6/15/05 11,575,000 10,996,250
-----------------------------------------------------------------------------------------
Healthsouth Rehabilitation Corp., 9.50%
Sr. Sub. Nts., 4/1/01 2,640,000 2,725,800
-----------------------------------------------------------------------------------------
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 7,977,000 8,974,125
-----------------------------------------------------------------------------------------
National Medical Enterprises, Inc., 10.125%
Sr. Sub. Nts., 3/1/05 11,550,000 12,271,875
-----------------------------------------------------------------------------------------
Ornda Healthcorp, 12.25% Sr. Sub. Nts., 5/15/02 4,500,000 4,972,500
-----------------------------------------------------------------------------------------
Quorum Health Group, Inc., 11.875%
Sr. Sub. Nts., 12/15/02 4,745,000 5,213,569
-----------------------------------------------------------------------------------------
Surgical Health Corp., 11.50% Sr. Sub. Nts., 7/15/04 2,550,000 2,945,250
-----------------------------------------------------------------------------------------
Total Renal Care, Inc., Units (each Unit consists of $1,000
principal amount of 0%/12% Sr. Sub. Disc. Nts., 8/15/04 and
nine shares of non-voting Class B Common Stock)(7)(8) 3,000,000 2,745,000
-----------
68,218,546
- ---------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING--7.0% Arizona Charlie's, Inc., 12% First Mtg. Nts.,
Series A, 11/15/00(9) 2,750,000 2,172,500
-----------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 2,000,000 2,000,000
-----------------------------------------------------------------------------------------
Aztar Corp., 13.75% Sr. Sub. Nts., 10/1/04 4,630,000 5,243,475
-----------------------------------------------------------------------------------------
Bally's Park Place Funding, Inc., 9.25%
Gtd. First Mtg. Nts., 3/15/04 6,800,000 6,460,000
-----------------------------------------------------------------------------------------
Boyd Gaming Corp., 10.75% Sr. Sub. Nts., 9/1/03 3,035,000 3,141,225
-----------------------------------------------------------------------------------------
Capital Gaming International, Inc. Promissory Nts. 22,500 --
-----------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% First Mtg. Nts.,
Series A, 11/15/00(9) 1,000,000 890,000
-----------------------------------------------------------------------------------------
Casino America, Inc.,
Zero Coupon First Mtg. Nts., 11/15/01 4,350,000 4,437,000
-----------------------------------------------------------------------------------------
Empress River Casino Finance Corp.,
10.75% Gtd. Sr. Nts., 4/1/02 5,820,000 5,892,750
-----------------------------------------------------------------------------------------
GB Property Funding Corp.,
10.875% First Mtg. Nts., 1/15/04 3,100,000 2,697,000
-----------------------------------------------------------------------------------------
GNF Corp., 10.625% Gtd. First Mtg. Nts.,
Series B, 4/1/03 2,000,000 1,695,000
-----------------------------------------------------------------------------------------
HMH Properties, Inc., 9.50% Sr. Sec. Nts., 5/15/05(10) 4,850,000 4,728,750
-----------------------------------------------------------------------------------------
Hollywood Casino Corp., 14% Sr. Sec. Nts., 4/1/98 800,000 884,000
-----------------------------------------------------------------------------------------
Maritime Group Ltd., Units (consisting of $1,000
principal amount of 14.25% First Mtg. Nts.,
Series 2/15/97 and one Warrant to purchase one share of
Palace Casinos, Inc., Series A Common Stock)(8)(10)(11) 2,212,618 1,239,066
-----------------------------------------------------------------------------------------
MGM Grand Hotel Finance Corp., 11.75% First Mtg. Nts.,
Series A, 5/1/99 2,500,000 2,706,250
-----------------------------------------------------------------------------------------
MGM Grand Hotel Finance Corp.,
12% First Mtg. Nts., 5/1/02 9,930,000 11,084,363
-----------------------------------------------------------------------------------------
Players International, Inc.,
10.875% Sr. Nts., 4/15/05(10) 7,260,000 7,169,250
-----------------------------------------------------------------------------------------
Resorts International, Inc., Zero Coupon Sec.
First Mtg. Non-Recourse Pass-Through Nts., 6/30/00 6,785,000 6,038,650
-----------------------------------------------------------------------------------------
Showboat, Inc., 13% Sr. Sub. Nts., 8/1/09 750,000 775,313
-----------------------------------------------------------------------------------------
Showboat, Inc., 9.25% First Mtg. Bonds, 5/1/08 3,850,000 3,542,000
-----------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 9,960,000 9,312,600
-----------------------------------------------------------------------------------------
Trump Hotels & Casino Resorts Holdings LP/Trump
Hotels & Casino Resorts Funding, Inc., 15.50%
Sr. Sec. Nts., 6/15/05 1,400,000 1,368,500
-----------------------------------------------------------------------------------------
Trump Plaza Funding, Inc.,
10.875% Gtd. Mtg. Nts., 6/15/01 4,175,000 3,861,875
-----------------------------------------------------------------------------------------
Trump's Castle Funding, Inc.,
13.875% Sub. Nts., 11/15/05(5) 26 19
-----------
87,339,586
</TABLE>
8 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
LEISURE--1.0% Gillett Holdings, Inc.,
12.25% Sr. Sub. Nts., Series A, 6/30/02 $12,075,200 $12,769,524
- ---------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS--0.7% Carrols Corp., 11.50% Sr. Nts., 8/15/03 7,000,000 6,615,000
-----------------------------------------------------------------------------------------
Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 1,820,000 1,660,750
-----------
8,275,750
- ---------------------------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL--3.2% Consoltex Group, Inc.,
11% Gtd. Sr. Sub. Nts., Series B, 10/1/03 5,600,000 5,124,000
-----------------------------------------------------------------------------------------
Fieldcrest Cannon, Inc.,
11.25% Sr. Sub. Debs., 6/15/04 1,300,000 1,368,250
-----------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.,
7% Sr. Nts., 5/15/98(11)(12) 5,955,189 267,984
-----------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 13% Sr. Nts., 6/15/01 7,150,000 7,257,250
-----------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa,
Zero Coupon Promissory Nts., 10/23/96 IDR 9,000,000,000 2,894,589
-----------------------------------------------------------------------------------------
Synthetic Industries, Inc.,
12.75% Sr. Sub. Debs., 12/1/02 12,000,000 12,060,000
-----------------------------------------------------------------------------------------
WestPoint Stevens, Inc.,
9.375% Sr. Sub. Debs., 12/15/05 12,175,000 11,779,313
-----------
40,751,386
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY--9.4% AmeriGas Partners LP,
10.125% Sr. Nts., 4/15/07(10) 1,280,000 1,350,400
-----------------------------------------------------------------------------------------
Clark R&M Holdings, Inc., Zero Coupon
Sr. Sec. Nts., Series A, 2/15/00 6,650,000 4,189,500
-----------------------------------------------------------------------------------------
Crown Central Petroleum Corp.,
10.875% Sr. Nts., 2/1/05 5,680,000 5,964,000
-----------------------------------------------------------------------------------------
Ferrellgas LP/Ferrellgas Finance Corp.,
10% Sr. Nts., 8/1/01 12,100,000 12,584,000
-----------------------------------------------------------------------------------------
Gulf Canada Resources Ltd.,
9.25% Sr. Sub. Debs., 1/15/04 2,960,000 2,955,915
-----------------------------------------------------------------------------------------
Gulf Canada Resources Ltd.,
9.625% Sr. Sub. Nts., 7/1/05(14) 4,240,000 4,224,100
-----------------------------------------------------------------------------------------
HS Resources, Inc., 9.875% Sr. Sub. Nts., 12/1/03 3,250,000 3,168,750
-----------------------------------------------------------------------------------------
Kelley Oil & Gas Corp., 13.50% Sr. Nts., 6/15/99 5,200,000 5,174,000
-----------------------------------------------------------------------------------------
Maxus Energy Corp.:
11.50% Debs., 11/15/15 5,700,000 5,643,000
9.375% Nts., 11/1/03 425,000 401,625
9.875% Nts., 10/15/02 2,200,000 2,095,500
-----------------------------------------------------------------------------------------
Mesa Capital Corp.,
0%/12.75% Sec. Disc. Nts., 6/30/98(7) 1,645,000 1,480,500
-----------------------------------------------------------------------------------------
Nuevo Energy Co., 12.50% Sr. Sub. Nts., 6/15/02 5,000,000 5,375,000
-----------------------------------------------------------------------------------------
OPI International, Inc.,
12.875% Gtd. Sr. Nts., 7/15/02 11,765,000 13,294,450
-----------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc.,
12.25% Sub. Debs., 2/1/05 7,190,000 7,729,250
-----------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc.,
9.375% Sub. Debs., 2/1/06 2,030,000 1,877,750
-----------------------------------------------------------------------------------------
Plains Resources, Inc., 12% Sr. Sub. Nts., 10/1/99 1,600,000 1,660,000
-----------------------------------------------------------------------------------------
Santa Fe Energy Resources, Inc.,
11% Sr. Sub. Debs., 5/15/04 11,280,000 12,069,600
-----------------------------------------------------------------------------------------
Transco Energy Co., 9.375% Debs., 8/15/01 7,000,000 7,907,298
-----------------------------------------------------------------------------------------
Triton Energy Corp.,
Zero Coupon Sr. Sub. Disc. Nts., 11/1/97 7,000,000 5,705,000
-----------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 11,925,000 12,402,000
-----------------------------------------------------------------------------------------
Wilrig AS, 11.25% Sr. Sec. Nts., 3/15/04 800,000 844,000
-----------
118,095,638
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--3.6%
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.0% Acme Holdings, Inc., 11.75% Sr. Nts., 6/1/00(11) 1,100,000 445,500
-----------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02(9) 2,230,477 2,453,525
-----------------------------------------------------------------------------------------
GPA Holland BV, 8.94% Medium-Term Nts.,
Series C, 2/16/99 7,300,000 5,621,000
-----------------------------------------------------------------------------------------
GPA Investment BV, 6.40% Nts., 11/19/98 2,000,000 1,525,000
-----------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03 8,802,000 1,287,293
-----------------------------------------------------------------------------------------
Olympic Financial Ltd., 13% Sr. Nts., 5/1/00 1,890,000 1,946,700
-----------
13,279,018
</TABLE>
9 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
INSURANCE--2.6% American Life Holding Co.,
11.25% Sr. Sub. Nts., 9/15/04 $11,730,000 $12,257,850
-----------------------------------------------------------------------------------------
Life Partners Group, Inc.,
12.75% Sr. Sub. Nts., 7/15/02 12,170,000 13,447,850
-----------------------------------------------------------------------------------------
Terra Nova Holdings, 10.75% Sr. Nts., 7/1/05 6,400,000 6,496,000
-----------
32,201,700
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED--4.0%
- ---------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--3.1% American Standard, Inc.,
0%/10.50% Sr. Sub. Disc. Debs., 6/1/05(7) 10,625,000 8,075,000
-----------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 1,750,000 1,898,750
-----------------------------------------------------------------------------------------
Diamond Cable Communications PLC,
0%/13.25% Sr. Disc. Nts., 9/30/04(7) 1,280,000 848,000
-----------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 9,300,000 8,811,750
-----------------------------------------------------------------------------------------
Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03 3,750,000 3,825,000
-----------------------------------------------------------------------------------------
USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 12,900,000 13,093,500
-----------------------------------------------------------------------------------------
Walter Industries, Inc., 17% Sub. Nts., 1/1/96(11) 3,150,000 2,000,250
-----------
38,552,250
- ---------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/REAL ESTATE--0.9% NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 6,400,000 5,872,000
-----------------------------------------------------------------------------------------
Olympia & York First Canadian Place Ltd.,
11% Debs., Series 3, 11/4/49(13) CAD 4,875,000 2,182,238
-----------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts.,
Series 1993-A, 12/1/11(10) 6,000,000 3,870,000
-----------
11,924,238
- ---------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--3.9%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS--1.6% Berg Electronics Holdings Corp.,
11.375% Sr. Sub. Debs., 5/1/03 5,890,000 6,125,600
-----------------------------------------------------------------------------------------
Businessland, Inc., 5.50% Sub. Debs., 3/1/07 3,850,000 808,500
-----------------------------------------------------------------------------------------
Tracor, Inc., 10.875% Sr. Sub. Nts., 8/15/01 6,930,000 7,155,225
-----------------------------------------------------------------------------------------
Unisys Corp., 13.50% Credit Sensitive Nts., 7/1/97(4) 5,631,000 6,286,059
-----------
20,375,384
- ---------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--1.4% Aftermarket Technology Corp.,
12% Sr. Sub. Nts., 8/1/04 4,730,000 5,061,100
-----------------------------------------------------------------------------------------
Aftermarket Technology Corp.,
12% Sr. Sub. Nts., 8/1/04(10) 1,870,000 1,996,225
-----------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp.,
11.25% Sr. Nts., 10/1/02 6,600,000 6,534,000
-----------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp.,
9.50% Sr. Sec. Nts., 6/1/00 800,000 782,000
-----------------------------------------------------------------------------------------
JPS Automotive Products Corp.,
11.125% Sr. Nts., 6/15/01 3,350,000 3,291,375
-----------
17,664,700
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--0.9% Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 930,000 916,050
-----------------------------------------------------------------------------------------
Imo Industries, Inc., 12% Sr. Sub. Debs., 11/1/01 2,500,000 2,543,750
-----------------------------------------------------------------------------------------
Imo Industries, Inc., 12.25% Sr. Sub. Debs., 8/15/97 7,368,000 7,403,190
-----------
10,862,990
- ---------------------------------------------------------------------------------------------------------------------------------
MEDIA--9.9%
- ---------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION--6.2% American Telecasting, Inc.,
0%/12.50% Sr. Disc. Nts., 6/15/04(7) 7,200,000 4,230,000
-----------------------------------------------------------------------------------------
Bell Cablemedia PLC,
0%/11.95% Sr. Disc. Nts., 7/15/04(7) 1,500,000 1,005,000
-----------------------------------------------------------------------------------------
Cablevision Systems Corp.:
10.75% Sr. Sub. Debs., 4/1/04 7,800,000 8,180,250
9.875% Sr. Sub. Debs., 2/15/13 1,700,000 1,789,250
9.875% Sr. Sub. Debs., 4/1/23 1,000,000 1,045,000
-----------------------------------------------------------------------------------------
Century Communications Corp.,
11.875% Sr. Sub. Debs., 10/15/03 1,800,000 1,912,500
-----------------------------------------------------------------------------------------
Century Communications Corp., 9.50% Sr. Nts., 3/1/05 8,500,000 8,500,000
</TABLE>
10 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION (continued) Continental Cablevision, Inc.,
11% Sr. Sub. Debs., 6/1/07 $2,430,000 $2,697,300
-----------------------------------------------------------------------------------------
Continental Cablevision, Inc.,
9.50% Sr. Debs., 8/1/13 10,985,000 11,369,475
-----------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp.,
9% Sr. Sec. Nts., Series B, 11/1/03(4) 3,250,000 2,998,125
-----------------------------------------------------------------------------------------
International CableTel, Inc.,
0%/10.875% Sr. Deferred Coupon Nts., 10/15/03(7) 640,000 425,600
-----------------------------------------------------------------------------------------
International CableTel, Inc.,
0%/12.75% Sr. Deferred Coupon Nts., 4/15/05(7)(10) 11,080,000 6,592,600
-----------------------------------------------------------------------------------------
Rogers Cablesystems, Inc., 10% Sr. Nts., 3/15/05(10) 4,000,000 4,125,000
-----------------------------------------------------------------------------------------
Rogers Communications, Inc.,
10.875% Sr. Debs., 4/15/04 4,200,000 4,326,000
-----------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 9,950,000 10,431,510
-----------------------------------------------------------------------------------------
Time Warner, Inc., 9.15% Debs., 2/1/23 1,700,000 1,792,276
-----------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 5,000,000 5,782,375
-----------
77,202,261
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA--2.7% Ackerley Communications, Inc.,
10.75% Sr. Sec. Nts., Series A, 10/1/03 6,950,000 7,332,250
-----------------------------------------------------------------------------------------
Echostar Communications Corp.,
0%/12.875% Sr. Disc. Nts., 6/1/04(7) 4,310,000 2,101,125
-----------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 7,550,000 7,568,875
-----------------------------------------------------------------------------------------
News America Holdings, Inc.,
10.125% Gtd. Sr. Debs., 10/15/12 2,000,000 2,414,234
-----------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(7) 14,600,000 10,384,250
-----------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.,
9.75% Sr. Sec. Nts., 8/1/00 3,500,000 3,605,000
-----------
33,405,734
- ---------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM--0.1% AMC Entertainment, Inc.,
11.875% Gtd. Sr. Nts., 8/1/00 1,800,000 1,953,000
- ---------------------------------------------------------------------------------------------------------------------------------
PUBLISHING/PRINTING--0.9% Bell & Howell Holdings Co.,
0%/11.50% Sr. Disc. Debs., Series B, 3/1/05(7) 11,630,000 6,861,700
-----------------------------------------------------------------------------------------
Sullivan Graphics, Inc., 15% Sr. Sub. Nts., 2/1/00 4,500,000 4,770,000
-----------
11,631,700
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER--1.7%
- ---------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES--0.2% Talley Manufacturing & Technology, Inc.,
10.75% Sr. Nts., 10/15/03 2,400,000 2,364,000
- ---------------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL--0.8% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 8,800,000 7,854,000
-----------------------------------------------------------------------------------------
Envirotest Systems Corp., 9.625% Sr. Sub. Nts., 4/1/03 2,255,000 1,679,975
-----------------------------------------------------------------------------------------
Mid-American Waste Systems, Inc.,
12.25% Sr. Sub. Nts., 2/15/03 800,000 828,000
-----------
10,361,975
- ---------------------------------------------------------------------------------------------------------------------------------
SERVICES--0.7% Protection One Alarm Monitoring, Inc., Units (each
Unit consists of ten $1,000 principal amount 0%/13.625%
Sr. Sub. Disc. Nts., 6/30/05 and thirty-two Warrants,
each Warrant entitles holder to purchase one share of
Protection One, Inc. Common Stock(7)(8)(10) 13,100,000 8,842,500
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL--8.3%
- ---------------------------------------------------------------------------------------------------------------------------------
DRUG STORES--2.5% Duane Reade, 12% Sr. Nts., Series B, 9/15/02 5,000,000 4,025,000
-----------------------------------------------------------------------------------------
Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 13,800,000 14,421,000
-----------------------------------------------------------------------------------------
Thrifty Payless, Inc., 11.75% Sr. Nts., 4/15/03 11,550,000 12,300,750
-----------
30,746,750
</TABLE>
11 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING--3.3% Brylane LP/Brylane Capital Corp.,
10% Sr. Sub. Nts., Series B, 9/1/03 $11,100,000 $10,933,500
-----------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 8,300,000 7,947,250
-----------------------------------------------------------------------------------------
Eye Care Centers of America, Inc.,
12% Sr. Nts., 10/1/03 5,450,000 4,469,000
-----------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp.,
10.625% Sr. Nts., 5/1/03 8,850,000 8,540,250
-----------------------------------------------------------------------------------------
United Stationers Supply Co.,
12.75% Sr. Sub. Nts., 5/1/05(10) 6,000,000 6,075,000
-----------------------------------------------------------------------------------------
Zale Delaware, Inc., 11% Gtd.
Second Priority Sr. Sec. Nts., 7/30/00 3,500,000 3,491,250
-----------
41,456,250
- ---------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS--2.5% Grand Union Co., 12% Sr. Nts., 9/1/04(14) 10,226,000 9,970,350
-----------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc.,
11.50% Sr. Nts., 2/1/03(5) 2,781,158 2,702,000
-----------------------------------------------------------------------------------------
Penn Traffic Co., 9.625% Sr. Sub. Nts., 4/15/05 7,890,000 7,475,775
-----------------------------------------------------------------------------------------
Purity Supreme, Inc.,
11.75% Sr. Sec. Nts., Series B, 8/1/99 7,375,000 7,946,563
-----------------------------------------------------------------------------------------
Ralph's Grocery Co., 10.45% Sr. Nts., 6/15/04 3,300,000 3,316,500
-----------
31,411,188
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.9%
- ---------------------------------------------------------------------------------------------------------------------------------
RAILROADS--1.0% Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr. Disc. Nts., Series B, 12/15/03(7) 21,515,000 13,016,575
- ---------------------------------------------------------------------------------------------------------------------------------
SHIPPING--1.9% Gearbulk Holding Ltd., 11.25% Sr. Nts., 12/1/04 6,400,000 6,816,000
-----------------------------------------------------------------------------------------
Sea Containers Ltd.:
12.50% Sr. Sub. Debs., Series A, 12/1/04 1,250,000 1,375,000
12.50% Sr. Sub. Debs., Series B, 12/1/04 2,900,000 3,117,500
9.50% Sr. Sub. Debs., 7/1/03 4,000,000 3,900,000
-----------------------------------------------------------------------------------------
Trans Ocean Container Corp.,
12.25% Sr. Sub. Nts., 7/1/04 7,950,000 8,069,250
-----------
23,277,750
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.9%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.4% California Energy Co.,
0%/10.25% Sr. Disc. Nts., 1/15/04(7) 2,680,000 2,331,602
-----------------------------------------------------------------------------------------
Subic Power Corp.,
9.50% Sinking Fund Debs., 12/28/08(10) 2,793,103 2,430,000
-----------
4,761,602
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.5% Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(7) 10,456,000 8,207,960
-----------------------------------------------------------------------------------------
In Flight Phone Corp., Units (each Unit consists of
$1,000 principal amount of 0%/14% Sr. Disc. Nts.,
Series A, 5/15/02 and one Warrant to purchase one
share of Common Stock)(7)(8)(10) 6,400,000 3,776,000
-----------------------------------------------------------------------------------------
MFS Communications, Inc.,
0%/9.375% Sr. Disc. Nts., 1/15/04(7) 3,850,000 2,685,375
-----------------------------------------------------------------------------------------
PriCellular Wireless Corp.,
0%/14% Sr. Sub. Disc. Nts., 11/15/01(7) 2,133,000 1,717,065
-----------------------------------------------------------------------------------------
USA Mobile Communications, Inc. II,
14% Sr. Nts., 11/1/04 2,000,000 2,160,000
-----------
18,546,400
- ---------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds and Notes (Cost $1,063,469,788) 1,061,927,591
SHARES
- ---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--0.6%
- ---------------------------------------------------------------------------------------------------------------------------------
Digicon, Inc. 4,930 28,964
-----------------------------------------------------------------------------------------
ECM Fund, L.P.I.(9) 1,350 1,350,000
-----------------------------------------------------------------------------------------
Equitable Bag, Inc.(15) 39,357 98,393
-----------------------------------------------------------------------------------------
Finlay Enterprises, Inc.(15) 4,266 60,257
-----------------------------------------------------------------------------------------
Grand Union Co.(15) 144,928 2,065,224
</TABLE>
12 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (continued) Great Bay Power Corp.(15) 39,565 $306,629
-----------------------------------------------------------------------------------------
Hollywood Casino Corp.(15) 90,836 806,170
-----------------------------------------------------------------------------------------
Jewel Recovery LP(15) 10,113 --
-----------------------------------------------------------------------------------------
LTV Corp.(15) 958 14,011
-----------------------------------------------------------------------------------------
New World Communications Group, Inc., Cl. A(15) 20,292 423,596
-----------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.(12)(15) 1,688,400 52,763
-----------------------------------------------------------------------------------------
Resorts International, Inc.(15) 282,691 777,400
-----------------------------------------------------------------------------------------
Triangle Wire & Cable Inc.(9)(15) 370,500 741,000
-----------------------------------------------------------------------------------------
Walter Industries, Inc.(15) 7,097 97,584
-----------------------------------------------------------------------------------------
Zale Corp.(15) 10,113 136,526
-----------------------------------------------------------------------------------------
Total Common Stocks (Cost $9,687,771) 6,958,517
- ---------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--1.4%
- ---------------------------------------------------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 19,480 2,084,360
-----------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 108,300 11,696,400
-----------------------------------------------------------------------------------------
K-III Communications Corp.,
$11.625 Exchangeable, Series B(5) 14,185 1,376,034
-----------------------------------------------------------------------------------------
SDW Holdings Corp. Units (each Unit consists of
ten shares of Sr. Exchangeable Preferred Stock
and one Cl. B Warrant to purchase one share of
Common Stock)(8)(10) 6,187 1,673,224
-----------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 29,400 1,264,200
-----------------------------------------------------------------------------------------
Total Preferred Stocks (Cost $17,097,876) 18,094,218
UNITS
- ---------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.5%
- ---------------------------------------------------------------------------------------------------------------------------------
ALC Communications Corp. Wts., Exp. 12/95 275,000 2,750
-----------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 32,000 80,000
-----------------------------------------------------------------------------------------
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(9) 125,000 125,000
-----------------------------------------------------------------------------------------
Casino America, Inc. Wts., Exp. 11/96 13,052 13,052
-----------------------------------------------------------------------------------------
Digicon, Inc. Wts., Exp. 7/96 1,657 932
-----------------------------------------------------------------------------------------
Echostar Communications Corp. Wts., Exp. 6/04 25,860 290,925
-----------------------------------------------------------------------------------------
EUA Power Corp., Contingent Interest Certificates 2,000 --
-----------------------------------------------------------------------------------------
Eye Care Centers of America, Inc. Wts., Exp. 10/03 5,450 27,250
-----------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts., Cl. C, Exp. 12/99 69,654 478,871
-----------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts., Cl. D, Exp. 12/01 69,654 487,578
-----------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 291,367 3,022,933
-----------------------------------------------------------------------------------------
Interco, Inc. Wts., Series 1, Exp. 8/99 32,716 134,954
-----------------------------------------------------------------------------------------
OSI Specialties Corp. Wts., 4/99(10) 6,469 12,938
-----------------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 11/03 182,000 1,092,000
-----------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97(9) 22,525 451
-----------------------------------------------------------------------------------------
Republic Health Corp. Wts., Exp. 4/00 3,763 --
-----------------------------------------------------------------------------------------
Southland Corp. Wts., Exp. 3/96 5,800 10,875
</TABLE>
13 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
MARKET VALUE
UNITS SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES Terex Corp. Rts., Exp. 7/96(10) 534 $ 67
(continued) -----------------------------------------------------------------------------------------
Trizec Corp. Wts., Exp. 7/99 16,277 24,880
-----------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 63,583 3,179
-----------------------------------------------------------------------------------------
Total Rights, Warrants and Certificates (Cost $3,323,484) 5,822,363
</TABLE>
<TABLE>
<CAPTION>
DATE/PRICE SHARES
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS PURCHASED--0.0% U.S. Treasury Nts. Call Opt.
(Cost $125,938) Jul. 95/$102-05 13,000 $20,313
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,222,074,485) 97.6% 1,222,789,939
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.4 30,427,211
----- --------------
NET ASSETS 100.0% $1,253,217,150
----- --------------
----- --------------
</TABLE>
1. Face amount is reported in local currency. Foreign currency abbreviations
are as follows:
ARA--Argentine Austral
CAD--Canadian Dollar
IDR--Indonesian Rupiah
2. 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).
3. Securities with an aggregate market value of $538,009 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts, as follows:
TYPE OF CONTRACT NUMBER OF CONTRACTS FACE AMOUNT
- ------------------------------------------------------------------------------
U.S. Treasury Nts., 9/95 250 $25,000,000
The market value of the open contracts was $28,382,813 at June 30, 1995, with
a net unrealized loss of $210,937.
4. Represents the current interest rate for a variable rate security.
5. Interest or dividend is paid in kind.
6. Represents the current interest rate for an increasing rate security.
7. Represents a zero coupon bond that converts to a fixed rate of interest at
a designated future date.
8. Units may be comprised of several components, such as debt and equity
and/or warrants to purchase equity at some point in the future. In most
cases, units involve a high degree of risk.
9. Identifies issues considered to be illiquid--See Note 6 of Notes to
Financial Statements.
10. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security has
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $53,881,020 or 4.30% of the Fund's net
assets, at June 30, 1995.
11. Non-income producing--issuer is in default of interest payment.
12. 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 year ended June 30, 1995.
The aggregate fair value of all securities of affiliated companies as of June
30, 1995 amounted to $320,747. Transactions during the period in which the
issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
BALANCE JUNE 30, 1994 GROSS ADDITIONS GROSS REDEMPTIONS BALANCE JUNE 30, 1995
---------------------- -------------------- --------------------- --------------------- DIVIDEND
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 -- 222,705 208,431 9,379 5,955,189 4,662,420 --
----------- -------- ---------- ---------- -------
$10,138,628 $222,705 $4,584,529 $5,776,804 $34,176
----------- -------- ---------- ---------- -------
----------- -------- ---------- ---------- -------
</TABLE>
13. Partial interest payment received.
14. When-issued security to be delivered and settled after June 30, 1995.
15. Non-income producing security.
See accompanying Notes to Financial Statements.
14 Oppenheimer High Yield Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at value (cost $1,222,074,485)--see accompanying statement $1,222,789,939
-----------------------------------------------------------------------------------------------------
Receivables:
Interest 29,037,265
Investments sold 18,081,263
Shares of beneficial interest sold 1,916,134
-----------------------------------------------------------------------------------------------------
Receivable for daily variation on futures contracts 117,187
-----------------------------------------------------------------------------------------------------
Other 2,153,904
-----------------------------------------------------------------------------------------------------
Total assets 1,274,095,692
--------------
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Bank overdraft 1,521,853
Payables and other liabilities:
Investments purchased 12,030,833
Dividends 3,394,658
Shares of beneficial interest redeemed 2,714,034
Distribution and service plan fees--Note 5 635,713
Transfer and shareholder servicing agent fees 40,739
Other 540,712
--------------
Total liabilities 20,878,542
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,253,217,150
--------------
--------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $1,477,292,236
NET ASSETS -----------------------------------------------------------------------------------------------------
Overdistributed net investment income (3,769,638)
-----------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment, written option and
foreign currency transactions (220,809,965)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 504,517
--------------
Net assets $1,253,217,150
--------------
--------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets of
$1,060,752,358 and 80,259,749 shares of beneficial interest outstanding) $13.22
Maximum offering price per share (net asset value plus sales charge of 4.75%
of offering price) $13.88
- ----------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $192,464,792 and 14,639,438 shares of beneficial interest
outstanding) $13.15
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer High Yield Fund
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Interest (net of withholding taxes of $131,146) $122,002,614
-----------------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of withholding taxes of $7,366) 1,511,846
Affiliated companies 34,176
------------
Total income 123,548,636
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 5 7,542,307
-----------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 1,981,782
Class B--Note 5 1,343,774
-----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 1,076,505
-----------------------------------------------------------------------------------------------------
Shareholder reports 484,540
-----------------------------------------------------------------------------------------------------
Custodian fees and expenses 100,052
-----------------------------------------------------------------------------------------------------
Legal and auditing fees 67,313
-----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 54,706
-----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 34,542
-----------------------------------------------------------------------------------------------------
Other 133,363
------------
Total expenses 12,818,884
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 110,729,752
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) on:
GAIN (LOSS) ON INVESTMENTS, Investments:
OPTIONS WRITTEN Unaffiliated companies (59,188,576)
AND FOREIGN CURRENCY Affiliated companies 2,744,845
TRANSACTIONS Closing of options written--Note 4 (578,488)
Foreign currency transactions (155,967)
------------
Net realized loss (57,178,186)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 26,793,814
Translation of assets and liabilities denominated in foreign currencies (30,694)
------------
Net change 26,763,120
------------
Net realized and unrealized loss on investments, options written and foreign
currency transactions (30,415,066)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $80,314,686
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer High Yield Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 110,729,752 $ 116,850,546
-----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments, options written and foreign
currency transactions (57,178,186) 14,669,174
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments
and translation of assets and liabilities denominated in foreign
currencies 26,763,120 (59,741,123)
-------------- --------------
Net increase in net assets resulting from operations 80,314,686 71,778,597
- ----------------------------------------------------------------------------------------------------------------------------------
EQUALIZATION Net change -- (96,177)
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS Class A ($1.295 and $1.407 per share, respectively) (98,284,579) (109,900,662)
TO SHAREHOLDERS Class B ($1.192 and $1.295 per share, respectively) (11,983,690) (4,671,944)
-----------------------------------------------------------------------------------------------------
Tax return of capital distribution:
Class A ($.012 per share) (998,196) --
Class B ($.012 per share) (181,114) --
- ----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from Class A beneficial
TRANSACTIONS interest transactions--Note 2 40,387,389 (30,446,407)
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B beneficial
interest transactions--Note 2 107,007,443 80,742,052
-------------- --------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 116,261,939 7,405,459
-----------------------------------------------------------------------------------------------------
Beginning of period 1,136,955,211 1,129,549,752
-------------- --------------
End of period (including overdistributed net investment income
of $3,769,638 and $3,538,462, respectively) $1,253,217,150 $1,136,955,211
-------------- --------------
-------------- --------------
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer High Yield Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------
YEAR ENDED JUNE 30,
1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $13.63 $14.16 $13.76 $13.08
- ----------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 1.30 1.42 1.60 1.79
Net realized and unrealized gain
(loss) on investments, options written and
foreign currency transactions (.40) (.54) .36 .68
---------- ---------- ---------- --------
Total income from investment
operations .90 .88 1.96 2.47
- ----------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (1.30) (1.41) (1.56) (1.79)
Tax return of capital distribution (.01) -- -- --
---------- ---------- ---------- --------
Total dividends and distributions
to shareholders (1.31) (1.41) (1.56) (1.79)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $13.22 $13.63 $14.16 $13.76
---------- ---------- ---------- --------
---------- ---------- ---------- --------
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 7.09% 6.27% 15.31% 20.06%
- ----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,060,752 $1,049,446 $1,119,056 $902,562
- ----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,005,746 $1,111,103 $978,671 $768,339
- ----------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 80,260 77,002 79,047 65,581
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 9.81% 10.10% 11.59% 13.15%
Expenses 1.03% .96% .97% .92%
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 93.7% 96.7% 87.2% 64.0%
<FN>
1. For the period from May 3, 1993 (inception of offering) to June 30, 1993.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Sales charges are not reflected in the total returns. Total returns are not
annualized for periods of less than one full year.
</TABLE>
18 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------- --------------------------
Year Ended June 30,
1991 1990 1989 1988 1987 1986 1995 1994 1993(1)
-------- -------- -------- -------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $13.60 $15.42 $16.00 $17.09 $17.54 $17.15 $13.57 $14.12 $13.87
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 1.91 1.89 2.02 2.06 2.18 2.28 1.20 1.35 .23
Net realized and unrealized gain
(loss) on investments, options written
and foreign currency transactions (.51) (1.79) (.68) (1.03) (.47) .47 (.42) (.60) .27
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total income from investment
operations 1.40 .10 1.34 1.03 1.71 2.75 .78 .75 .50
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (1.92) (1.92) (1.92) (2.12) (2.16) (2.36) (1.19) (1.30) (.25)
Tax return of capital distribution -- -- -- -- -- -- (.01) -- --
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total dividends and distributions
to shareholders (1.92) (1.92) (1.92) (2.12) (2.16) (2.36) (1.20) (1.30) (.25)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.08 $13.60 $15.42 $16.00 $17.09 $17.54 $13.15 $13.57 $14.12
-------- -------- -------- -------- -------- -------- -------- ------- -------
-------- -------- -------- -------- -------- -------- -------- ------- -------
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 11.90% .85% 8.97% 6.75% 10.63% 17.26% 6.21% 5.31% 3.54%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $657,182 $650,989 $860,588 $857,767 $760,934 $627,256 $192,465 $87,509 $10,493
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $601,758 $734,703 $863,178 $791,471 $691,968 $527,731 $134,550 $51,816 $4,405
- -------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 50,258 47,870 55,810 53,617 44,531 35,767 14,639 6,449 743
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 14.94% 13.00% 12.88% 12.72% 12.79% 13.24% 8.95% 8.98% 10.84%(3)
Expenses .96% .93% .88% .89% .88% .89% 1.84% 1.88% 2.28%(3)
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 90.4% 63.2% 57.0% 41.1% 46.2% 90.5% 93.7% 96.7% 87.2%
<FN>
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 period ended June 30, 1995 were $1,111,748,812 and
$974,203,135, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer High Yield Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer High Yield Fund (the Fund) is
ACCOUNTING POLICIES registered under the Investment Company Act of
1940, as amended, as a diversified, open-end
management investment company. The Fund's
investment advisor is Oppenheimer Management
Corporation (the Manager). The Fund offers both
Class A and Class B shares. Class A shares are
sold with a front-end sales charge. Class B shares
may be subject to a contingent deferred sales
charge. Both classes of shares have identical
rights to earnings, assets and voting privileges,
except that each class has its own distribution
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 the close of the New York Stock Exchange
on each trading day. Listed and unlisted
securities for which such information is regularly
reported are valued at the last sale price of the
day or, in the absence of sales, at values based
on the closing bid or asked price or the last sale
price on the prior trading day. Long-term and
short-term "non-money market" debt securities
are valued by a portfolio pricing service approved
by the Board of Trustees. Such 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 ""money
market type'' 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 contracts are valued based on
the closing prices of the forward currency
contract rates in the London foreign exchange
markets on a daily basis as provided by a
reliable bank or dealer. Options are valued based
upon 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
upon the last sale price 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
June 30, 1995, securities with an aggregate market
value of $6,135,038, representing .49% of the
Fund's net 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 effect of changes in foreign currency
exchange rate 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.
20 Oppenheimer High Yield Fund
<PAGE>
- --------------------------------------------------------------------------------
1. Significant FEDERAL TAXES. The Fund intends to continue to
Accounting Policies comply with provisions of the Internal Revenue
(continued) Code applicable to regulated investment companies
and to distribute all of its taxable income,
including any net realized gain on investments not
offset by loss carryovers, to shareholders.
Therefore, no federal income or excise tax
provision is required. At June 30, 1995, the Fund
had available for federal income tax purposes an
unused capital loss carryover of approximately
$167,575,000, $749,000 of which will expire in
1997, $14,942,000 in 1998, $74,080,000 in 1999,
$42,206,000 in 2000, $21,168,000 in 2001 and
$14,430,000 in 2003.
---------------------------------------------------
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.
---------------------------------------------------
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, during the year
ended June 30, 1995, amounts have been
reclassified to reflect a decrease in paid-in
capital of $1,179,310, a decrease in
overdistributed net investment income of $486,651,
and a decrease in accumulated net realized loss on
investments of $692,659.
---------------------------------------------------
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. 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. 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.
- --------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no
BENEFICIAL INTEREST par value shares of beneficial interest of each
class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30, 1995 YEAR ENDED JUNE 30, 1994
-------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 19,902,935 $270,466,315 23,301,265 $328,422,185
Dividends reinvested 4,217,534 45,347,591 4,259,599 60,060,363
Redeemed (20,862,882) (275,426,517) (29,606,189) (418,928,955)
---------- ----------- ---------- -----------
Net increase (decrease) 3,257,587 $40,387,389 (2,045,325) $(30,446,407)
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
----------------------------------------------------------------------------------
Class B:
Sold 10,963,657 $143,405,028 7,150,795 $100,862,645
Dividends reinvested 431,770 5,641,548 146,613 2,058,843
Redeemed (3,205,114) (42,039,133) (1,591,185) (22,179,436)
---------- ----------- --------- -----------
Net increase 8,190,313 $107,007,443 5,706,223 $80,742,052
---------- ----------- --------- -----------
---------- ----------- --------- -----------
</TABLE>
21 Oppenheimer High Yield Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS At June 30, 1995, net unrealized appreciation on
AND LOSSES ON investments of $715,454 was composed of gross
INVESTMENTS appreciation of $41,610,867, and gross
depreciation of $40,895,413.
- --------------------------------------------------------------------------------
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.
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 designated 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.
Written option activity for the year ended June
30, 1995 was as follows:
<TABLE>
<CAPTION>
Call Options
-----------------------------
Number of Amount of
Options Premiums
----------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at June 30, 1994 -- $ --
----------------------------------------------------------------------------
Options written 29,981,244 379,370
----------------------------------------------------------------------------
Options closed or expired (29,981,244) (379,370)
----------- --------
Options outstanding at June 30, 1995 -- $ --
----------- --------
----------- --------
</TABLE>
- --------------------------------------------------------------------------------
5. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER TRANSACTIONS accordance with the investment advisory agreement
WITH AFFILIATES with the Fund which provides for a fee of .75% on
the first $200 million of average annual net
assets with a reduction of .03% on each $200
million thereafter to $800 million, .60% on the
next $200 million and .50% on net assets in excess
of $1 billion. The Manager has agreed to reimburse
the Fund if aggregate expenses (with specified
exceptions) exceed the most stringent state
regulatory limit on Fund expenses.
For the year ended June 30, 1995, commissions
(sales charges paid by investors) on sales of
Class A shares totaled $2,629,870, of which
$624,955 was retained by Oppenheimer Funds
Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an
affiliated broker/dealer. Sales charges advanced
to broker/dealers by OFDI on sales of the Fund's
Class B shares totaled $3,735,267, of which
$35,245 was paid to an affiliated broker/dealer.
During the year ended June 30, 1995, OFDI received
contingent deferred sales charges of $333,734 upon
redemption of Class B shares.
Oppenheimer Shareholder Services (OSS), a
division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for
other registered investment companies. OSS's total
costs of providing such services are allocated
ratably to these companies.
Under separate approved plans, 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.
22 Oppenheimer High Yield Fund
<PAGE>
- --------------------------------------------------------------------------------
5. MANAGEMENT FEES In the event of termination or discontinuance of
AND OTHER TRANSACTIONS the Class B plan, the Board of Trustees may allow
WITH AFFILIATES the Fund to continue payment of the asset-based
(CONTINUED) sales charge to OFDI for distribution expenses
incurred on Class B shares sold prior to
termination or discontinuance of the plan. During
the year ended June 30, 1995, OFDI paid $26,763
and $1,112 to an affiliated broker/dealer as
reimbursement for Class A and Class B personal
service and maintenance expenses, respectively,
and retained $1,215,382 as reimbursement for Class
B sales commissions and service fee advances, as
well as financing costs.
- --------------------------------------------------------------------------------
6. ILLIQUID AND At June 30, 1995, investments in securities
RESTRICTED SECURITIES included issues that are illiquid or restricted.
The securities are often purchased in private
placement transactions, are not registered under
the Securities Act of 1933, may have contractual
restrictions on resale, and 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 illiquid and restricted
securities. The aggregate value of these
securities subject to this limitation at June 30,
1995 was $7,732,476 which represents .62% of the
Fund's net assets. Information concerning these
securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS
OF JUNE 30,
SECURITY ACQUISITION DATE COST PER UNIT 1995
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Charlie's, Inc., 12% First Mtg. Nts., Series A, 11/15/00 11/18/93 100.00 79.00
- ------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/18/93 $ 2.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% First Mtg. Nts., Series A, 11/15/00 11/18/93 87.50 89.00
- ------------------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 4/14/92--3/3/93 100.00 110.00
- ------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I. Common Stock 4/14/92 $1,000.00 $1,000.00
- ------------------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97 7/29/92 $ -- $ 0.02
- ------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., Common Stock 5/2/94 $ 9.50 $ 2.00
</TABLE>
Pursuant to guidelines adopted by the Board of
Trustees, certain unregistered securities are
determined to be liquid and are not included
within the 10% limitation specified above.
- --------------------------------------------------------------------------------
7. FUTURES CONTRACTS The Fund may buy and sell interest rate futures
contracts in order to gain exposure to or protect
against changes in interest rates. The Fund may
also buy or write put or call options on these
futures contracts.
The Fund generally sells futures contracts to
hedge against increases in interest rates and the
resulting negative effect on the value of fixed
rate portfolio securities. The Fund may also
purchase futures contracts to gain exposure to
changes in interest rates as it may be more
efficient or cost effective than actually buying
fixed income securities.
Upon entering into a futures contract, the
Fund is required to deposit either cash or
securities in an amount (initial margin) equal to
a certain percentage of the contract value.
Subsequent payments (variation margin) are made or
received by the Fund each day. The variation
margin payments are equal to the daily changes in
the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized
gain or loss when the contract is closed or
expires.
Securities held in collateralized accounts to
cover initial margin requirements on open futures
contracts are noted in the Statement of
Investments. The Statement of Assets and
Liabilities reflects a receivable or payable for
the daily mark to market for variation margin.
Risks of entering into futures contracts (and
related options) include the possibility that
there may be an illiquid market and that a change
in the value of the contract or option may not
correlate with changes in the value of the
underlying securities.
At June 30, 1995, the Fund had outstanding futures
contracts to sell debt securities as follows:
<TABLE>
<CAPTION>
Number of Valuation as of Unrealized
Expiration Date Futures Contracts June 30, 1995 Depreciation
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bonds 9/95 250 $28,382,813 $(210,937)
</TABLE>
23 Oppenheimer High Yield Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
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THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER HIGH YIELD FUND:
We have audited the accompanying statement of
assets and liabilities, including the statement of
investments, of Oppenheimer High Yield Fund as of
June 30, 1995, the related statement of operations
for the year then ended, the statements of changes
in net assets for the years ended June 30, 1995
and 1994, and the financial highlights for the
period July 1, 1985 to June 30, 1995. These
financial statements and financial highlights are
the responsibility of the Fund's management. Our
responsibility is to express an opinion on these
financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about whether
the financial statements and financial highlights
are free of material misstatement. An audit
includes examining, on a test basis, evidence
supporting the amounts and disclosures in the
financial statements. Our procedures included
confirmation of securities owned at June 30, 1995
by correspondence with the custodian and brokers;
where replies were not received from brokers, we
performed other auditing procedures. An audit also
includes assessing the accounting principles used
and significant estimates made by management, as
well as evaluating the overall financial statement
presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and
financial highlights present fairly, in all
material respects, the financial position of
Oppenheimer High Yield Fund at June 30, 1995, the
results of its operations, the changes in its net
assets, and the financial highlights for the
respective stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
July 24, 1995
24 Oppenheimer High Yield Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
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In early 1996, shareholders will receive
information regarding all dividends and
distributions paid to them by the Fund during
calendar year 1995. Regulations of the U.S.
Treasury Department require the Fund to report
this information to the Internal Revenue Service.
Dividends paid by the Fund during the fiscal
year ended June 30, 1995 which are not designated
as capital gain distributions should be multiplied
by 1.27% to arrive at the net amount eligible for
the corporate dividend-received deduction.
The foregoing information is presented to
assist shareholders in reporting distributions
received from the Fund to the Internal Revenue
Service. Because of the complexity of the federal
regulations which may affect your individual tax
return and the many variations in state and local
tax regulations, we recommend that you consult
your tax advisor for specific guidance.
25 Oppenheimer High Yield Fund
<PAGE>
OPPENHEIMER HIGH YIELD FUND
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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
Servicing Agent
Oppenheimer Shareholder Services
---------------------------------------------------
Custodian of
Portfolio Securities
The Bank of New York
---------------------------------------------------
Independent Auditors Deloitte & Touche LLP
---------------------------------------------------
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
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.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
26 Oppenheimer High Yield Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
OppenheimerFunds offers over 30 funds designed to fit virtually every investment
goal. Whether you're investing for retirement, your children's education or
tax-free income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing
that you are investing with a respected financial institution with over 30
years of experience in helping people just like you reach their financial
goals. And you're investing with a leader in global, growth stock and
flexible fixed income investments--with over 2.6 million shareholder accounts
and more than $35 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to exchange shares of eligible
funds of the same class. And you can exchange shares easily by mail or by
telephone.(1) For more information on OppenheimerFunds, please contact your
financial advisor or call us at 1-800-525-7048 for a prospectus. You may also
write us at the address shown on the back cover. As always, please read the
prospectus carefully before you invest.
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STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund(3) Gold & Special Minerals Fund
- --------------------------------------------------------------------------------
STOCK & BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- --------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund International Bond Fund
Strategic Income & Growth Fund Bond Fund(4)
Strategic Income Fund U.S. Government Trust
Strategic Investment Grade Limited-Term Government Fund
Bond Fund
- -------------------------------------------------------------------------------
TAX-EXEMPT New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5)
FUNDS California Tax-Exempt Fund(5) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt
Bond Fund
- -------------------------------------------------------------------------------
MONEY MARKET Money Market Fund Cash Reserves
FUNDS
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Formerly Investment Grade Bond Fund.
5. Available only to residents of certain states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
- -C- Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
27 Oppenheimer High Yield Fund
<PAGE>
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
PHONELINK
24 hours a day, automated information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
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
RA0280.001.0695 August 31, 1995
"HOW MAY I HELP YOU?"
As an OppenheimerFunds shareholder, you have some special privileges. 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. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
[Photo]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
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.
[Logo] Bulk Rate
OPPENHEIMER FUNDS DISTRIBUTOR, INC. U.S. Postage
P.O. Box 5270 PAID
Denver, CO 80217-5270 Permit No. 314
Farmingdale, NY
