Oppenheimer High Yield Fund
Semiannual Report December 31, 1995
(Picture of Zoo) "We need
our money
to work
as hard
as it can."
(Oppenheimer Logo)
<PAGE>
This Fund is for people who want high monthly
income from their investment.
News
"The fund is more concerned
with defense than glory.
This stance should once
again allow investors to
survive what battles the
future may bring."
--Morningstar Mutual Funds
September 15, 1995
Standardized Yield
For the 30 Days Ended 12/31/95:3
Class A
9.12%
Class B
8.76%
Class C
8.40%
The Fund's Class A shares
are ranked (FOUR STARS) among
837 taxable bond funds as
of 12/31/95 by Morningstar
Mutual Funds.4
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 six months ended 12/31/95 was 6.38% for
Class A shares and 5.94% 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 12/31/95 were 9.60%,
13.57% and 9.61%, respectively. For Class B shares, average annual total returns
for the 1-year period ended 12/31/95 and since inception of the Class on 5/3/93
were 9.10% and 7.03%, respectively.2
Outlook
"In this type of market, we believe that the income advantage of high yield
bonds should translate into solid returns, and that active management, coupled
with a focus on finding higher-quality bonds within this sector, should help the
Fund capitalize on the market's potential."
Ralph Stellmacher, Portfolio Manager
December 31, 1995
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor' shares, when redeemed, may be worth more or less
than the original cost. For more complete information, please review the
prospectus carefully before you invest.
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 12/31/94,
12/31/90 and 12/31/85, after deducting the current maximum initial sales charge
of 4.75%. Class B returns show results of hypothetical investments on 12/31/94
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). Class C
performance is not shown above because shares were first publicly offered on
11/1/95. 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 12/31/95, 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, 12/31/95. 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 consid ering 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. Tre asury 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 837, 508 and 188 funds ranked in these
respective periods. Rankings are subject to change. The Fund's Class A, B and C
shares have the same portfolio.
2 Oppenheimer High Yield Fund
<PAGE>
(PHOTO OF JAMES C. SWAIN)
James C. Swain
Chairman
Oppenheimer
High Yield Fund
(PHOTO OF BRIDGET A. MACASKILL)
Bridget A. Macaskill
President
Oppenheimer
High Yield Fund
Dear OppenheimerFunds Shareholder,
The bond market amply rewarded patient investors in 1995.
One year ago, many fixed-income investors had negative returns, as a
surging economy pushed interest rates higher and bond prices lower. But a
vigilant Federal Reserve Board helped slow the economy down by early 1995,
lowering the fear of inflation. And by the summer, after a quarter in which GDP
growth was just 1.3%, the Fed began to lower short-term interest rates.
In the Fall, a balanced federal budget was on the front burner in
Washington, suggesting to foreign investors that the U.S. was finally addressing
its debt burden, which helped stabilize the U.S. dollar, making U.S.
fixed-income investments more attractive to international investors.
Throughout 1995, inflation and economic growth came in at less than 3%. As
a result, the yield on the benchmark 30-year U.S. Treasury bond fell to 6% from
nearly 8% the year before. And patient investors saw the value of their higher
paying bonds appreciate substantially. In 1995, while the stock market was up
35%, bonds rose as much as 20%, depending on the type of security.
Overall, the best performing sector of the bond market was the 30-year U.S.
Treasury bond. This is because when interest rates are falling, bonds with the
longest maturities appreciate the most in price. Another excellent performing
sector in 1995 was high quality corporate bonds. Although a slowing economy
often raises credit worries about Corporate America, the continuation of strong
corporate profits offset these concerns.
After having such a good year, where does the bond market go from here?
Unlike stocks, which have infinite upside potential, bonds have a constraint.
For bonds to do well, interest rates must remain steady or continue to fall. And
when interest rates are low already, there is only so far they can decline. But
if low inflation can be maintained, and if a budget accord is reached, a
positive environment can continue to exist.
We believe that the general long-term trend for the U.S. economy is slow
growth and low inflation. Moving into 1996, we're looking for even slower growth
than we saw in 1995, which should be an excellent environment for bond
investors.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages.
Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you reach your investment goals in the future.
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
January 22, 1996
3 Oppenheimer High Yield Fund
<PAGE>
Q + A
[PHOTO OF RALPH STELLMACHER]
[PHOTO OF SCOTT SCHARER]
Q How has
the Fund
performed?
An interview with your Fund's managers.
How has the Fund performed over the past six months?
Performance over the past six months has been good. There were two main factors
driving our performance over the period. First, we profited from a decline in
interest rates. Bond prices generally move in the opposite direction as rates,
so when interest rates decline, prices increase. Second, we be nefited from
making strong decisions in terms of industry sector selection.
(PHOTO OF LEN DARLING)
Specifically, which sectors made positive contributions to performance?
We've done very well with our investments in the media sector, particularly in
the areas of foreign cable and telecommunications. We increased our weighting in
this sector in the second half of the year, which helped our performance.
As the economy continues to show signs of slowing, we've been selectively
moving out of cyclical industries in favor of more defensive sectors that offer
higher growth potential and are not as closely tied to the economic cycle. One
of these sectors that has worked well is healthcare, particularly bonds of
hospital management com-panies, a beneficiary of healthcare consolidation.
And finally, we benefited from being underexposed to the retail sector, an
area that was negatively affected by sluggish consumer activity throughout 1995.
Were there any investments that didn't perform as well as expected?
We were market weighted in cyclicals which didn't perform as well as defensive
and growth industries. But, the fact that we focused our buying on higher credit
quality securities within this sector provided some downside protection.
4 Oppenheimer High Yield Fund
<PAGE>
Facing page
Top left: Ralph Stellmacher,
Portfolio Manager
Top right: Scott Scharer, Member
of Fixed Income Investments Team
Bottom: Len Darling, Executive
VP, Director of Fixed Income
Investments
This page
Top: Ralph Stellmacher
Bottom: David Negri with Mark
Frank, Members of Fixed Income
Investments Team
A We believe
the income
advantage
of high yield
bonds should
translate into
solid returns.
What areas of the market are you currently targeting?
As we have over the past year, we plan to continue to focus on the higher
quality tiers of below-investment grade bonds. Since default is always a risk
when investing in high yield bonds, we believe an emphasis on the upper tiers is
the best way to capture the potential of the market without taking on
unnecessary risk.
Because we believe the economy is slowing, we will continue to focus our
investments in situations where there is an opportunity for outstanding value or
growth. Value, as we found in the housing and energy sectors over the past year,
is simply the chance to buy bonds that we feel are worth more than their market
price. Growth companies, in contrast with cyclical companies, whose profits are
tied to the business cycle, have the potential to increase earnings in almost
any environment. The past year's investments in bonds of foreign cable companies
are a good example of growth.1
What is your outlook for the Fund?
We believe the economy will still remain strong, therefore, we believe the
environment is still good for high yield bonds. Slower growth and low interest
rates have led to an extension of the business cycle, which means we should
continue to avoid a recession in the near term. In addition, inflatio n has
remained low and corporations have remained profitable in the face of slower
growth. Nevertheless, while most of these indicators are good, careful analysis
and selectivity in terms of bonds and issuers remains important.
[PHOTO OF RALPH STELLMACHER]
In this type of market, we believe that the income advantage of high yield
bonds should translate into solid returns, and that active management, coupled
with a focus on finding higher-quality bonds within this sector, should help the
Fund capitalize on the market's potential. (Solid Box)
[PHOTO OF DAVID NEGRI WITH MARK FRANK]
1. The Fund's portfolio is subject to change.
5 Oppenheimer High Yield Fund
<PAGE>
Financials
Contents
Statement of Investments 7
Statement of Assets & Liabilities 19
Statement of Operations 20
Statements of Changes in Net Assets 21
Financial Highlights 22
Notes to Financial Statements 24
6 Oppenheimer High Yield Fund
<PAGE>
Statement of Investments December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Face Market Value
Amount (1) See Note 1
<S> <C> <C>
==========================================================================================================================
Certificates of Deposit--0.2%
- --------------------------------------------------------------------------------------------------------------------------
Canadian Imperial Bank CD, Zero Coupon,
28.67%, 2/8/96 (Cost $3,400,514)(2)(3)CLP $ 462,350,000 $ 3,290,478
==========================================================================================================================
Mortgage-Backed Obligations--2.5%
- --------------------------------------------------------------------------------------------------------------------------
Government Agency--2.1%
- --------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/ Sponsored--1.4%
Federal National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security, Trust 240, Cl. 2, 12.106%, 9/1/23(4) 69,695,111 19,084,482
- --------------------------------------------------------------------------------------------------------------------------
GNMA/Guaranteed--0.7% Government National Mortgage Assn., 6%, 1/15/26(5) 9,000,000 9,095,625
- --------------------------------------------------------------------------------------------------------------------------
Private--0.4%
- --------------------------------------------------------------------------------------------------------------------------
Multi-Family--0.4% Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1994-C2, Cl. E, 8%, 4/25/25 2,815,638 2,657,259
Series 1995-C1, Cl. F, 6.90%, 2/25/27 2,947,121 2,594,388
------------
5,251,647
------------
Total Mortgage-Backed Obligations (Cost $36,000,367) 33,431,754
==========================================================================================================================
Foreign Government Obligations--6.2%
- --------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Sr. Unsub. Unsec. Nts., 9.875%, 1/6/98 FRF 12,350,000 2,520,633
---------------------------------------------------------------------------------------------------
Brazil (Federal Republic of):
Eligible Interest Bonds, 6.812%, 4/15/06(6)(7) 9,500,000 6,531,250
Interest Due and Unpaid Bonds, 6.688%, 1/1/01(6) 1,187,500 1,022,734
---------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears Bonds, 6.75%, 7/28/11(6)(7) 7,000,000 3,246,250
---------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
7.75%, 9/1/99 CAD 1,398,000 1,073,736
Series A-76, 9%, 6/1/25 CAD 1,293,000 1,106,895
---------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan Facility Bonds,
6.875%, 7/1/01(6)(8) 857,200 797,196
---------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds:
7%, 11/10/24DKK 10,850,000 1,746,400
8%, 3/15/06DKK 14,560,000 2,770,493
---------------------------------------------------------------------------------------------------
Ecuador (Republic of) Disc. Bonds, 6.812%, 2/28/25(6) 6,800,000 3,459,500
---------------------------------------------------------------------------------------------------
France (Government of) Obligation Assimilable du Tresor Debs.,
9.50%, 6/25/98FRF 7,310,000 1,635,580
---------------------------------------------------------------------------------------------------
Germany (Republic of) Bonds, Series 95, 7.375%, 1/3/05DEM 8,100,000 6,184,463
---------------------------------------------------------------------------------------------------
Hashemite Kingdom of Jordan Disc. Bonds, 6.437%, 12/23/23(6) 1,500,000 930,000
---------------------------------------------------------------------------------------------------
Industrial Finance Corp. of Thailand, Zero Coupon
Sr. Unsec. Medium-Term Nts., 11.27%, 3/20/96(3)THB 70,000,000 2,703,933
---------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali,
10.50%, 4/1/00ITL 6,685,000,000 4,253,557
---------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement, Tranche A,
6.594%, 1/1/09(6) 6,500,000 4,330,625
---------------------------------------------------------------------------------------------------
National Treasury Management Agency (Irish Government) Bonds,
8%, 10/18/00IEP 1,000,000 1,684,508
---------------------------------------------------------------------------------------------------
New Zealand (Republic of) Bonds, 10%, 7/15/97NZD 7,050,000 4,736,701
---------------------------------------------------------------------------------------------------
Panama (Republic of) Debs., 6.75%, 5/10/02(6) 3,910,000 3,350,381
---------------------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon, 25.03%, 5/2/96(3)PLZ 7,500,000 2,813,677
---------------------------------------------------------------------------------------------------
Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio Prazo,
11.875%, 2/23/00PTE 720,000,000 5,193,285
</TABLE>
7 Oppenheimer High Yield Fund
<PAGE>
Statement of Investmentsx (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Foreign Government Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado,
Obligations (continued) 12.25%, 3/25/00 ESP $705,000,000 $ 6,352,932
-----------------------------------------------------------------------------------------------------
Sweden (Kingdom of) Bonds, Series 1028, 11%, 1/21/99 SEK 8,800,000 1,428,843
-----------------------------------------------------------------------------------------------------
Thai Oil Co. Ltd., Zero Coupon:
11.79%, 4/1/96(3)THB 22,500,000 863,583
11.14%, 5/2/96(3)THB 30,000,000 1,140,607
-----------------------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation Agreement:
Tranche A, 1.563%, 9/30/00(6)(8)JPY 29,887,192 245,555
Tranche B, 1.563%, 9/30/00(6)(8)JPY 170,112,808 1,397,656
-----------------------------------------------------------------------------------------------------
United Kingdom Treasury:
Debs., 8.50%, 12/7/05 GBP 816,000 1,361,545
Nts., 10%, 2/26/01 GBP 815,000 1,430,658
-----------------------------------------------------------------------------------------------------
United Mexician States Bonds, 8.50%, 9/15/02 1,500,000 1,290,000
-----------------------------------------------------------------------------------------------------
Venezuela (Republic of) Disc. Bonds, Series DL, 6.563%, 12/18/07 (6) 6,250,000 3,453,125
-----------------------------------------------------------------------------------------------------
Western Australia Treasury Corp. Gtd. Bonds, Series 98, 12.50%, 4/1/98 AUD 4,260,000 3,497,930
-----------
Total Foreign Government Obligations (Cost $82,586,370) 84,554,231
=============================================================================================================================
Municipal Bonds and Notes--0.9%
- -----------------------------------------------------------------------------------------------------------------------------
San Joaquin Hills, California Transportation Corridor Agency Toll Road
Capital Appreciation Revenue Bonds, Jr. Lien, Zero Coupon:
8.75%, 1/1/12 (3) 15,000,000 4,782,179
9%, 1/1/28 (3) 74,000,000 7,119,096
-----------
Total Municipal Bonds and Notes (Cost $8,236,110) 11,901,275
=============================================================================================================================
Corporate Bonds and Notes--83.1%
- -----------------------------------------------------------------------------------------------------------------------------
Basic Industry--12.3%
- -----------------------------------------------------------------------------------------------------------------------------
Chemicals--1.5% Acetex Corp., 9.75% Sr. Sec. Nts., 10/1/03(9) 8,580,000 8,966,100
-----------------------------------------------------------------------------------------------------
NL Industries, Inc.:
0%/13% Sr. Sec. Disc. Nts., 10/15/05(10) 9,490,000 7,331,025
11.75% Sr. Sec. Nts., 10/15/03 3,200,000 3,432,000
-----------
19,729,125
- -----------------------------------------------------------------------------------------------------------------------------
Containers--2.1% U.S. Can Co., 13.50% Sr. Sub. Nts., 1/15/02 25,450,000 27,931,375
- -----------------------------------------------------------------------------------------------------------------------------
Metals/Mining--1.6% Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 7,271,000 7,889,035
-----------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 9.875% Sr. Nts., 2/15/02 11,630,000 12,007,975
-----------------------------------------------------------------------------------------------------
UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05 1,890,000 2,159,325
-----------
22,056,335
- -----------------------------------------------------------------------------------------------------------------------------
Paper--4.6% Buckeye Cellulose Corp., 8.50% Sr. Sub. Nts., 12/15/05 780,000 804,375
-----------------------------------------------------------------------------------------------------
Crown Paper Co., 11% Sr. Sub. Nts., 9/1/05 4,400,000 3,872,000
-----------------------------------------------------------------------------------------------------
Domtar, Inc.:
11.25% Debs., 9/15/17 1,060,000 1,128,900
12% Nts., 4/15/01 1,060,000 1,252,125
-----------------------------------------------------------------------------------------------------
Gaylord Container Corp.:
0%/12.75% Sr. Sub. Disc. Debs., 5/15/05(10) 350,000 344,750
11.50% Sr. Nts., 5/15/01 6,500,000 6,727,500
-----------------------------------------------------------------------------------------------------
Indah Kiat Finance Co. BV, 12.50% Sr. Gtd. Sec. Nts., Series C, 6/15/06 7,600,000 7,562,000
-----------------------------------------------------------------------------------------------------
QUNO Corp., 9.125% Sr. Nts., 5/15/05 10,500,000 10,657,500
</TABLE>
8 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Paper (continued) Repap New Brunswick, Inc., 9.25% First Priority Sr. Sec. Nts., 7/15/00 (6) $ 1,300,000 $ 1,306,500
-----------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.25% First Priority Sr. Sec. Nts., 2/1/02 7,540,000 7,200,700
-----------------------------------------------------------------------------------------------------
Riverwood International Corp., 11.25% Sr. Sub. Nts., 6/15/02 9,450,000 10,158,750
-----------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., 12/15/04 6,000,000 6,630,000
-----------------------------------------------------------------------------------------------------
Stone Container Corp.:
10.75% First Mtg. Nts., 10/1/02 4,160,000 4,347,200
10.75% Sr. Sub. Nts., 6/15/97 1,000,000 1,025,000
------------
63,017,300
- -----------------------------------------------------------------------------------------------------------------------------
Steel--2.5% AK Steel Corp., 10.75% Gtd. Sr. Nts., 4/1/04 2,200,000 2,447,500
-----------------------------------------------------------------------------------------------------
Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01 27,317,000 26,497,490
-----------------------------------------------------------------------------------------------------
WCI Steel, Inc., 10.50% Sr. Gtd. Nts., Series B, 3/1/02 5,400,000 5,211,000
------------
34,155,990
- -----------------------------------------------------------------------------------------------------------------------------
Consumer Related--20.4%
- -----------------------------------------------------------------------------------------------------------------------------
Consumer Products--3.9% Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 11.42%, 5/27/98 (3) 15,520,000 12,416,000
-----------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 12,000,000 13,260,000
-----------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc.,
0%/11.50% Sr. Sec. Disc. Nts., 8/15/03(10) 22,660,000 12,009,800
-----------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 10.50% Sr. Sub. Nts., Series B, 2/15/03 460,000 473,800
-----------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., 13.43%, 3/15/98(3) 9,400,000 7,003,000
-----------------------------------------------------------------------------------------------------
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05 3,840,000 3,782,400
-----------------------------------------------------------------------------------------------------
Tag-Heuer International SA, 12% Sr. Sub. Nts., 12/15/05 (9) 4,300,000 4,316,125
------------
53,261,125
- -----------------------------------------------------------------------------------------------------------------------------
Food/Beverages/Tobacco--1.5%
Consolidated Cigar Corp., 10.50% Sr. Sub. Nts., 3/1/03 2,000,000 2,090,000
-----------------------------------------------------------------------------------------------------
Cott Corp., 9.375% Sr. Nts., 7/1/05 7,150,000 7,060,625
-----------------------------------------------------------------------------------------------------
Curtice-Burns Foods, Inc., 12.25% Sr. Sub. Nts., 2/1/05 4,500,000 4,612,500
-----------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 2,720,000 2,080,800
-----------------------------------------------------------------------------------------------------
Heileman Acquisition Corp., 9.625% Sr. Sub. Nts., 1/31/04 7,150,000 2,037,750
-----------------------------------------------------------------------------------------------------
Specialty Foods Corp., 11.125% Sr. Nts., Series A, 10/1/02 2,800,000 2,688,000
------------
20,569,675
- -----------------------------------------------------------------------------------------------------------------------------
Healthcare--4.7% AmeriSource Corp., 11.25% Sr. Debs., 7/15/05(11) 6,138,326 6,782,850
-----------------------------------------------------------------------------------------------------
Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02 600,000 719,250
-----------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 13,630,000 14,958,925
-----------------------------------------------------------------------------------------------------
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 7,977,000 9,213,435
-----------------------------------------------------------------------------------------------------
Quorum Health Group, Inc.:
11.875% Sr. Sub. Nts., 12/15/02 4,745,000 5,338,125
8.75% Sr. Sub. Nts., 11/1/05 3,080,000 3,199,350
-----------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 10.125% Sr. Sub. Nts., 3/1/05 14,250,000 15,853,125
-----------------------------------------------------------------------------------------------------
Total Renal Care, Inc., 0%/12% Sr. Sub. Disc. Nts., 8/15/04(10) 8,188,000 7,901,420
------------
63,966,480
</TABLE>
9 Oppenheimer High Yield Fund
<PAGE>
Statement of Investmentsx (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Hotel/Gaming--5.5% Arizona Charlie's, Inc., 12% First Mtg. Nts., Series A, 11/15/00 (8)(12) $ 2,750,000 $ 1,925,000
---------------------------------------------------------------------------------------------------------
Aztar Corp., 13.75% Sr. Sub. Nts., 10/1/04 1,350,000 1,501,875
---------------------------------------------------------------------------------------------------------
Bally's Casino Holdings, Inc., Zero Coupon Sr. Disc. Nts., 10.23%, 6/15/98(3) 5,000,000 4,025,000
---------------------------------------------------------------------------------------------------------
Bally's Park Place Funding, Inc., 9.25% Gtd. First Mtg. Nts., 3/15/04 5,600,000 5,684,000
---------------------------------------------------------------------------------------------------------
Boyd Gaming Corp., 10.75% Sr. Sub. Nts., 9/1/03 6,000,000 6,330,000
---------------------------------------------------------------------------------------------------------
California Hotel Finance Corp., 11% Sr. Sub. Nts., 12/1/02 3,500,000 3,727,500
---------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Promissory Nts. 22,500 --
---------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% First Mtg. Nts., Series A, 11/15/00(8)(12) 1,000,000 800,000
---------------------------------------------------------------------------------------------------------
Empress River Casino Finance Corp., 10.75% Gtd. Sr. Nts., 4/1/02 6,370,000 6,529,250
---------------------------------------------------------------------------------------------------------
GNF Corp., 10.625% Gtd. First Mtg. Nts., Series B, 4/1/03 1,050,000 976,500
---------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 6,250,000 6,546,875
---------------------------------------------------------------------------------------------------------
Griffin Gaming & Entertainment, Inc., 7.995% First Mtg.
Non-Recourse Pass-Through Nts., 6/30/00 (6) 6,785,000 6,242,200
---------------------------------------------------------------------------------------------------------
HMC Acquisition Properties, Inc., 9% Sr. Nts., 12/15/07 (9) 3,120,000 3,135,600
---------------------------------------------------------------------------------------------------------
HMH Properties, Inc., 9.50% Sr. Sec. Nts., 5/15/05 6,370,000 6,537,212
---------------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units (each unit consists of $1,000 principal amount
of 14.25% first mtg. nts., series A, 2/15/97 and one warrant to purchase
one share of Palace Casinos, Inc., series A common stock) (9)(12)(13) 2,212,618 354,019
---------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts., 11/15/02 (9) 1,600,000 1,736,000
---------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 6,305,000 6,494,150
---------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 6,200,000 6,107,000
---------------------------------------------------------------------------------------------------------
Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts., 6/15/01 4,925,000 5,122,000
---------------------------------------------------------------------------------------------------------
Trump Taj Mahal Funding, Inc., 11.35% Debs., Series A, 11/15/99(11) 1,200,000 1,135,300
---------------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 13.875% Sub. Nts., 11/15/05(11) 28 21
-----------
74,909,502
- ------------------------------------------------------------------------------------------------------------------------------
Leisure--0.6% Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 6,982,869 7,375,655
- ------------------------------------------------------------------------------------------------------------------------------
Restaurants--1.2% Carrols Corp., 11.50% Sr. Nts., 8/15/03 9,180,000 9,317,700
---------------------------------------------------------------------------------------------------------
Flagstar Corp., 10.75% Sr. Nts., 9/15/01 2,580,000 2,380,050
---------------------------------------------------------------------------------------------------------
Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 4,600,000 4,427,500
-----------
16,125,250
- ------------------------------------------------------------------------------------------------------------------------------
Textile/Apparel--3.0%
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series B, 10/1/03 5,600,000 5,180,000
---------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/98(12)(14) 5,955,189 267,984
---------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa:
13% Sr. Nts., 6/15/01 7,150,000 7,436,000
Zero Coupon Promissory Nts., 17.90%, 10/23/96 (3) IDR 9,000,000,000 3,302,533
---------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 12,000,000 11,820,000
---------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05 12,075,000 11,984,437
-----------
39,990,954
</TABLE>
10 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount (1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Energy--8.7%
- -----------------------------------------------------------------------------------------------------------------------------
Clark R&M Holdings, Inc., Zero Coupon Sr. Sec. Nts.,
Series A, 10.23%, 2/15/00 (3) $ 1,000,000 $ 670,000
------------------------------------------------------------------------------------------------------
Crown Central Petroleum Corp., 10.875% Sr. Nts., 2/1/05 3,115,000 3,286,325
------------------------------------------------------------------------------------------------------
DeepTech International, Inc., 12% Sr. Sec. Nts., 12/15/00 2,290,000 2,072,450
------------------------------------------------------------------------------------------------------
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., 8/1/01 9,700,000 10,330,500
------------------------------------------------------------------------------------------------------
Giant Industries, Inc., 9.75% Sr. Sub. Nts., 11/15/03 7,400,000 7,511,000
------------------------------------------------------------------------------------------------------
Kelley Oil & Gas Corp., 13.50% Sr. Nts., 6/15/99 5,380,000 4,384,700
------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 5,700,000 5,913,750
------------------------------------------------------------------------------------------------------
Nuevo Energy Co., 12.50% Sr. Sub. Nts., 6/15/02 7,240,000 7,927,800
------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 11,765,000 13,382,687
------------------------------------------------------------------------------------------------------
Page Petroleum Ltd., 11% Cv. Debs., 10/1/89 2,000,000 --
------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc.:
12.25% Sub. Debs., 2/1/05 7,190,000 8,052,800
9.375% Sub. Debs., 2/1/06 2,030,000 1,999,550
------------------------------------------------------------------------------------------------------
Plains Resources, Inc., 12% Sr. Sub. Nts., 10/1/99 1,600,000 1,664,000
------------------------------------------------------------------------------------------------------
Santa Fe Energy Resources, Inc., 11% Sr. Sub. Debs., 5/15/04 11,090,000 12,199,000
------------------------------------------------------------------------------------------------------
Transco Energy Co., 9.375% Debs., 8/15/01 6,000,000 6,918,983
------------------------------------------------------------------------------------------------------
TransTexas Gas Corp., 11.50% Gtd. Sr. Sec. Nts., 6/15/02 11,760,000 12,201,000
------------------------------------------------------------------------------------------------------
Triton Energy Corp., Zero Coupon Sr. Sub. Disc. Nts., 9.49%, 11/1/97(3) 7,000,000 6,072,500
------------------------------------------------------------------------------------------------------
United Meridian Corp., 10.375% Gtd. Sr. Sub. Nts., 10/15/05 2,400,000 2,550,000
------------------------------------------------------------------------------------------------------
Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05 6,165,000 6,242,062
------------------------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 4,275,000 4,200,188
------------------------------------------------------------------------------------------------------
Wilrig AS, 11.25% Sr. Sec. Nts., 3/15/04 800,000 878,000
-----------
118,457,295
- ----------------------------------------------------------------------------------------------------------------------------
Financial Services--4.3%
- ----------------------------------------------------------------------------------------------------------------------------
Banks & Thrifts--0.1% Banco Bamerindus do Brasil SA, 11% Unsub. Unsec. Nts., 11/24/97 1,775,000 1,633,000
- ----------------------------------------------------------------------------------------------------------------------------
Diversified ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 (8) 1,916,724 2,108,397
Financial--1.1% ------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 3,750,000 3,534,375
------------------------------------------------------------------------------------------------------
GPA Holland BV, 8.94% Medium-Term Nts., Series C, 2/16/99 7,300,000 6,614,968
------------------------------------------------------------------------------------------------------
GPA Investment BV, 6.40% Nts., 11/19/98 2,000,000 1,680,000
------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03(12) 8,802,000 1,100,250
-----------
15,037,990
- ----------------------------------------------------------------------------------------------------------------------------
Insurance--3.1% American Life Holding Co., 11.25% Sr. Sub. Nts., 9/15/04 11,980,000 12,519,100
------------------------------------------------------------------------------------------------------
Chartwell Re Corp., 10.25% Sr. Nts., 3/1/04 4,800,000 5,040,000
------------------------------------------------------------------------------------------------------
Life Partners Group, Inc., 12.75% Sr. Sub. Nts., 7/15/02 12,170,000 13,204,450
------------------------------------------------------------------------------------------------------
Reliance Group Holdings, Inc., 9.75% Sr. Sub. Debs., 11/15/03 3,250,000 3,363,750
------------------------------------------------------------------------------------------------------
Terra Nova Insurance (UK) Holdings PLC, 10.75% Sr. Nts., 7/1/05 6,400,000 7,008,000
------------
41,135,300
</TABLE>
11 Oppenheimer High Yield Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount (1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Housing Related--2.8%
- -----------------------------------------------------------------------------------------------------------------------------
Building Material--1.5%
American Standard, Inc.:
0%/10.50% Sr. Sub. Disc. Debs., 6/1/05(10) $10,625,000 $ 9,137,500
10.875% Sr. Nts., 5/15/99 750,000 819,375
-------------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 8,100,000 7,684,875
-------------------------------------------------------------------------------------------------------
Walter Industries, Inc., 17% Sub. Nts., 1/1/96(12) 3,150,000 2,000,250
-----------
19,642,000
- -----------------------------------------------------------------------------------------------------------------------------
Homebuilders/ NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 5,600,000 5,656,000
Real Estate--1.3% -------------------------------------------------------------------------------------------------------
Olympia & York First Canadian Place Ltd., 11% Debs.,
Series 3, 11/4/49 (15) CAD 4,875,000 2,305,529
-------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (9) 6,000,000 4,470,000
-------------------------------------------------------------------------------------------------------
U.S. Home Corp., 9.75% Sr. Nts., 6/15/03 5,600,000 5,768,000
----------
18,199,529
- -----------------------------------------------------------------------------------------------------------------------------
Manufacturing--3.6%
- -----------------------------------------------------------------------------------------------------------------------------
Aerospace/ Berg Electronics Holdings Corp., 11.375% Sr. Sub. Debs., 5/1/03 5,890,000 6,626,250
Electronics/ -------------------------------------------------------------------------------------------------------
Computers--1.9% Businessland, Inc., 5.50% Sub. Debs., 3/1/07 (8) 3,850,000 2,021,250
- -----------------------------------------------------------------------------------------------------------------------------
Tracor, Inc., 10.875% Sr. Sub. Nts., 8/15/01 10,730,000 11,078,725
-------------------------------------------------------------------------------------------------------
Unisys Corp., 13.50% Credit Sensitive Nts., 7/1/97 (6) 5,631,000 5,377,605
-----------
25,103,830
- -----------------------------------------------------------------------------------------------------------------------------
Automotive--1.2%
- -----------------------------------------------------------------------------------------------------------------------------
Aftermarket Technology Corp.:
12% Sr. Sub. Nts., Series B, 8/1/04 4,730,000 5,037,450
12% Sr. Sub. Nts., Series D, 8/1/04 970,000 1,033,050
-------------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp.:
11.25% Sr. Nts., 10/1/02 6,600,000 6,369,000
9.50% Sr. Sec. Nts., 6/1/00 800,000 780,000
-------------------------------------------------------------------------------------------------------
JPS Automotive Products Corp., 11.125% Sr. Nts., 6/15/01 3,350,000 3,366,750
-----------
16,586,250
- -----------------------------------------------------------------------------------------------------------------------------
Capital Goods--0.5% Imo Industries, Inc.:
12% Sr. Sub. Debs., 11/1/01 2,500,000 2,562,500
12.25% Sr. Sub. Debs., 8/15/97 4,692,000 4,727,190
-----------
7,289,690
- -----------------------------------------------------------------------------------------------------------------------------
Media--14.0%
- -----------------------------------------------------------------------------------------------------------------------------
Broadcasting--1.3% New World Communications Group Holding Corp.,
Zero Coupon Sr. Disc. Nts., Series B, 11.69%, 6/15/99 (3) 6,400,000 4,400,000
- -----------------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 11.625% Sr. Sub. Nts., 10/1/02 (9) 8,860,000 8,948,600
-------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 4,000,000 4,110,000
-----------
17,458,600
- -----------------------------------------------------------------------------------------------------------------------------
Cable American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04(10) 19,243,688 13,326,254
Television--9.8% -------------------------------------------------------------------------------------------------------
Australis Media Ltd., Units (each unit consists of $1,000 principal
amount of 0%/14% sr. sub. disc. nts., 5/15/03 and one warrant to
purchase 57.721 ordinary shares)(10)(13) 9,335,000 6,814,550
-------------------------------------------------------------------------------------------------------
Bell Cablemedia PLC:
0%/11.875% Sr. Disc. Nts., 9/15/05 (9)(10) 8,200,000 5,207,000
0%/11.95% Sr. Disc. Nts., 7/15/04(10) 7,100,000 5,067,625
</TABLE>
12 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount (1) See Note 1
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Cable Television Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 $ 1,600,000 $ 1,736,000
(continued) ------------------------------------------------------------------------------------------------
Cablevision Systems Corp.:
10.75% Sr. Sub. Debs., 4/1/04 7,800,000 8,287,500
9.875% Sr. Sub. Debs., 2/15/13 1,700,000 1,819,000
------------------------------------------------------------------------------------------------
Century Communications Corp.:
11.875% Sr. Sub. Debs., 10/15/03 1,800,000 1,944,000
9.50% Sr. Nts., 3/1/05 4,500,000 4,663,125
------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc.Debs., 11/15/07(10) 6,575,000 3,879,250
------------------------------------------------------------------------------------------------
Continental Cablevision, Inc.:
11% Sr. Sub. Debs., 6/1/07 2,430,000 2,721,600
9.50% Sr. Debs., 8/1/13 3,825,000 4,073,625
------------------------------------------------------------------------------------------------
Diamond Cable Communications PLC:
0%/11.75% Sr. Disc. Nts., 12/15/05(10) 4,600,000 2,737,000
0%/13.25% Sr. Disc. Nts., 9/30/04(10) 3,800,000 2,688,500
------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., Series B,
11/1/03(6) 2,900,000 2,798,500
------------------------------------------------------------------------------------------------
International CableTel, Inc.:
0%/10.875% Sr. Deferred Coupon Nts., 10/15/03(10) 640,000 459,200
0%/12.75% Sr. Deferred Coupon Nts., 4/15/05(10) 14,595,000 9,304,313
------------------------------------------------------------------------------------------------
Marcus Cable Co. LP/Marcus Cable Capital Corp.,
0%/14.25% Sr. Disc. Nts., 12/15/05(10) 1,600,000 1,096,000
------------------------------------------------------------------------------------------------
Marcus Cable Operating Co. LP/Marcus Cable Capital Corp.,
0%/13.50% Gtd. Sr. Sub. Disc. Nts., Series II, 8/1/04(10) 12,695,000 9,473,644
------------------------------------------------------------------------------------------------
People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04(10) 6,500,000 3,753,750
------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd.:
10% Sr. Nts., 3/15/05 4,000,000 4,300,000
11% Gtd. Sr. Sub. Debs., 12/1/15 1,650,000 1,782,000
------------------------------------------------------------------------------------------------
TeleWest PLC, 0%/11% Sr. Disc. Debs., 10/1/07(10) 20,980,000 12,719,125
------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 5,150,000 5,807,650
------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 5,000,000 5,883,894
------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.:
13.50%, 11/15/99 (3) 2,000,000 1,250,000
Series B, 14%, 11/15/99 (3) 4,000,000 2,500,000
------------------------------------------------------------------------------------------------
Videotron Holdings PLC, 0%/11% Sr. Disc. Nts., 8/15/05(10) 10,950,000 6,843,750
------------
132,936,855
- ----------------------------------------------------------------------------------------------------------------------
Diversified Media--2.4%
Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03 6,950,000 7,436,500
------------------------------------------------------------------------------------------------
Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04(10) 780,000 526,500
------------------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 7,550,000 7,852,000
------------------------------------------------------------------------------------------------
News America Holdings, Inc., 10.125% Gtd. Sr. Debs., 10/15/12 2,000,000 2,432,520
------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(10) 10,800,000 8,910,000
9.75% Sr. Sec. Nts., 8/1/00 3,025,000 3,214,063
------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.15% Debs., 2/1/23 1,700,000 1,938,527
------------
32,310,110
</TABLE>
13 Oppenheimer High Yield Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount (1) See Note 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Publishing/Printing--0.5%
Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B,
3/1/ 05(10) $11,630,000 $ 7,385,050
- ---------------------------------------------------------------------------------------------------------------------------
Other--1.8%
- ---------------------------------------------------------------------------------------------------------------------------
Environmental--0.7% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 7,660,000 6,817,400
--------------------------------------------------------------------------------------------------
Mid-American Waste Systems, Inc., 12.25% Sr. Sub. Nts., 2/15/03 800,000 756,000
--------------------------------------------------------------------------------------------------
Norcal Waste Systems, Inc., 12.50% Sr. Nts., 11/15/05 (6) (9) 1,250,000 1,268,750
-----------
8,842,150
- ---------------------------------------------------------------------------------------------------------------------------
Services--1.1% Borg-Warner Security Corp., 9.125% Sr. Sub. Nts., 5/1/03 3,050,000 2,790,750
--------------------------------------------------------------------------------------------------
Protection One, Inc., 0%/13.625% Sr. Disc. Nts., 6/30/05 (10) 15,350,000 12,433,500
-----------
15,224,250
- ---------------------------------------------------------------------------------------------------------------------------
Retail--5.8%
- ---------------------------------------------------------------------------------------------------------------------------
Drug Stores--0.6% Thrifty Payless, Inc., 11.75% Sr. Nts., 4/15/03 7,050,000 7,666,875
- ---------------------------------------------------------------------------------------------------------------------------
Specialty Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts., Series B,
Retailing--2.7% 9/1/03 11,100,000 9,851,250
- ---------------------------------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 7,300,000 7,354,750
--------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03 3,325,000 3,108,875
--------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 8,270,000 8,104,600
--------------------------------------------------------------------------------------------------
United Stationers Supply Co., 12.75% Sr. Sub. Nts., 5/1/05 7,500,000 8,137,500
--------------------------------------------------------------------------------------------------
36,556,975
- ---------------------------------------------------------------------------------------------------------------------------
Supermarkets--2.5% Grand Union Co., 12% Sr. Nts., 9/1/04 20,846,000 18,136,020
--------------------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc., 11.50% Sr. Nts., 2/1/03(11) 7,204,458 7,011,335
--------------------------------------------------------------------------------------------------
Penn Traffic Co., 9.625% Sr. Sub. Nts., 4/15/05 11,050,000 8,619,000
-----------
33,766,355
- ---------------------------------------------------------------------------------------------------------------------------
Transportation--3.4%
- ---------------------------------------------------------------------------------------------------------------------------
Air Transportation--0.4% Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02 6,000,000 6,150,000
--------------------------------------------------------------------------------------------------------------------------
Railroads--1.1% Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr. Disc. Nts., Series B, 12/15/03(10) 21,515,000 14,307,475
- ---------------------------------------------------------------------------------------------------------------------------
Shipping--1.9% Gearbulk Holding Ltd., 11.25% Sr. Nts., 12/1/04 9,150,000 9,813,375
--------------------------------------------------------------------------------------------------
Sea Containers Ltd.:
12.50% Sr. Sub. Debs., Series A, 12/1/04 1,250,000 1,346,875
12.50% Sr. Sub. Debs., Series B, 12/1/04 2,900,000 3,153,750
9.50% Sr. Sub. Debs., 7/1/03 2,700,000 2,713,500
--------------------------------------------------------------------------------------------------
Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 7,950,000 8,307,750
-----------
25,335,250
- ---------------------------------------------------------------------------------------------------------------------------
Utilities--6.0%
- ---------------------------------------------------------------------------------------------------------------------------
Electric Utilities--0.3% California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04(10) 2,060,000 1,951,850
--------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08 (9) 2,689,655 2,353,448
-----------
4,305,298
</TABLE>
14 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount (1) See Note 1
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
Telecommunications--5.7% A+ Network, Inc., 11.875% Sr. Sub. Nts., 11/1/05 $ 8,100,000 $ 8,201,250
------------------------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04 (10) 1,000,000 720,000
------------------------------------------------------------------------------------------------------
Cellular Communications International, Inc., Zero Coupon Sr.
Disc. Nts., 12.76%, 8/15/00 (3) 11,625,000 7,004,063
------------------------------------------------------------------------------------------------------
Cencall Communications Corp., 0%/10.125% Sr. Disc. Nts., 1/15/04 (10) 6,670,000 3,768,550
------------------------------------------------------------------------------------------------------
Comcast Cellular Corp., Zero Coupon Nts., Series B, 6.28%, 3/5/00 (3) 3,900,000 3,012,750
------------------------------------------------------------------------------------------------------
Comunicacion Celular SA, Units (each unit consists of $1,000 principal
0%/13.125% sr. deferred coupon bond, 11/15/03 and one warrant to
purchase 12,860 shares of common stock at $1.32 per 1,000
shares)(9)(10)(13) 5,000,000 2,850,000
------------------------------------------------------------------------------------------------------
GST Telecommunications, Inc., Units (each unit consists of eight
0%/13.875% sr. disc. nts., 12/15/05 and one 0%/13.875%
cv. sr. sub. disc. nt., 12/15/05) (9)(10)(13) 10,350,000 5,405,000
------------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 (10) 10,456,000 8,939,880
------------------------------------------------------------------------------------------------------
In-Flight Phone Corp., 0%/14% Sr. Disc. Nts., 5/15/02 (10) 6,000,000 2,010,000
------------------------------------------------------------------------------------------------------
IntelCom Group (USA), Inc., 0%/13.50% Sr. Disc. Nts., 9/15/05 (9)(10) 15,400,000 8,893,500
------------------------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (10) 5,450,000 4,387,250
------------------------------------------------------------------------------------------------------
Nextel Communications, Inc.:
0%/11.50% Sr. Disc. Nts., 9/1/03 (10) 2,000,000 1,237,500
0%/9.75% Sr. Disc. Nts., 8/15/04 (10) 800,000 430,000
------------------------------------------------------------------------------------------------------
Omnipoint Corp., Units (each unit represents $1,000 principal amount
of 10% cv. sub. nts., 11/29/00 and one warrant to purchase a share
of common stock) (9)(11)(13) 3,200,000 3,174,080
------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp.:
0%/12.25% Sr. Sub. Disc. Nts., 10/1/03 (10) 11,050,000 8,591,375
0%/14% Sr. Sub. Disc. Nts., 11/15/01 (10) 4,773,000 4,200,240
------------------------------------------------------------------------------------------------------
USA Mobile Communications, Inc. II, 14% Sr. Nts., 11/1/04 2,000,000 2,350,000
------------------------------------------------------------------------------------------------------
Wireless One, Inc., Units (each unit consists of $1,000 principal
amount of 13% sr. nts., 10/15/03 and three warrants to purchase one
share of common stock at $11.55) (13) 2,080,000 2,173,600
--------------
77,349,038
--------------
Total Corporate Bonds and Notes (Cost $1,117,867,057) 1,125,767,931
</TABLE>
15 Oppenheimer High Yield Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C> <C>
========================================================================================================================
Common Stocks--0.5%
- ------------------------------------------------------------------------------------------------------------------------
Digicon, Inc.(16) 4,930 $ 39,440
-------------------------------------------------------------------------------------------------
EchoStar Communications Corp., Cl. A(16) 30,540 555,446
-------------------------------------------------------------------------------------------------
ECM Fund, L.P.I. (8)(16) 1,350 1,350,000
-------------------------------------------------------------------------------------------------
Equitable Bag, Inc.(16) 39,357 98,392
-------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc.(16) 4,266 50,126
-------------------------------------------------------------------------------------------------
Gaylord Container Corp., Cl. A(16) 127,473 1,027,751
-------------------------------------------------------------------------------------------------
Grand Union Co.(16) 144,928 1,086,960
-------------------------------------------------------------------------------------------------
Great Bay Power Corp.(16) 39,565 316,520
-------------------------------------------------------------------------------------------------
Griffin Gaming & Entertainment, Inc.(16) 56,538 621,918
-------------------------------------------------------------------------------------------------
Hollywood Casino Corp.(16) 90,836 386,053
-------------------------------------------------------------------------------------------------
LTV Corp.(16) 958 13,173
-------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.(14)(16) 1,688,400 52,763
-------------------------------------------------------------------------------------------------
Resorts International, Inc.(16) 187,187 --
-------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. (8)(16) 370,500 370,500
-------------------------------------------------------------------------------------------------
Walter Industries, Inc.(16) 7,097 93,148
-------------------------------------------------------------------------------------------------
Zale Corp.(16) 10,113 163,072
-----------
Total Common Stocks (Cost $9,810,364) 6,225,262
========================================================================================================================
Preferred Stocks--1.7%
- ------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8.50% Cum. Cv., Series I 176,000 4,796,000
-------------------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 21,040 2,282,840
-------------------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 108,300 12,170,213
-------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exchangeable,
Series B(11) 15,021 1,494,674
-------------------------------------------------------------------------------------------------
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) (9)(13) 6,188 1,794,520
-------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 29,400 790,125
-----------
Total Preferred Stocks (Cost $21,783,981) 23,328,372
Units
========================================================================================================================
Rights, Warrants and Certificates--0.4%
- ------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 40,000 240,000
-------------------------------------------------------------------------------------------------
Ames Department Stores, Inc.:
Excess Cash Flow Payment Certificates, Series AG-7A (8) 326,800 3,268
Litigation Trust (8) 1,045,990 10,460
-------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 (8) 125,000 62,500
-------------------------------------------------------------------------------------------------
Casino America, Inc. Wts., Exp. 11/96 13,052 1,305
-------------------------------------------------------------------------------------------------
Cellular Communications International, Inc.
Wts., Exp. 8/03 11,625 261,562
-------------------------------------------------------------------------------------------------
Digicon, Inc. Wts., Exp. 7/96 1,657 104
-------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc. Wts., Exp. 10/03 (9) 3,325 16,625
-------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts.:
Cl. C, Exp. 12/99 69,654 557,232
Cl. D, Exp. 12/01 69,654 565,939
-------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 163,894 1,229,204
-------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 (9) 6,000 --
</TABLE>
16 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Units See Note 1
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Rights, Warrants and IntelCom Group, Inc. Wts., Exp. 9/05 (9) 50,820 $ 203,280
Certificates -----------------------------------------------------------------------------------------------------------
(continued) Interco, Inc. Wts., Series 1, Exp. 8/99 32,716 77,700
-----------------------------------------------------------------------------------------------------------
Jewel Recovery LP, Participation Units of Limited Partners'
Interest 10,113 --
-----------------------------------------------------------------------------------------------------------
People's Choice TV Corp. Wts., Exp. 6/00 6,500 65,000
-----------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts.:
Exp. 11/03 182,000 1,797,250
Exp. 6/05 49,120 221,040
-----------------------------------------------------------------------------------------------------------
Republic Health Corp. Wts., Exp. 4/00 3,763 --
-----------------------------------------------------------------------------------------------------------
Southland Corp. Wts., Exp. 3/96 5,800 7,250
-----------------------------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 7/96 (9) 534 27
-----------------------------------------------------------------------------------------------------------
Trizec Corp. Wts., Exp. 7/99 CAD 16,277 16,947
-----------------------------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 63,583 3,179
--------------
Total Rights, Warrants and Certificates (Cost $2,285,052) 5,339,872
Face
Amount(1)
==================================================================================================================================
Structured Instruments--0.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked Nts.,
11.10%, 3/5/96 (indexed to the Nota Do Tesouro Nacional, Zero
Coupon, 3/5/96) (3) $ 3,100,000 3,033,040
-----------------------------------------------------------------------------------------------------------
United Mexican States Linked Nts. (indexed to the greater
of Cetes Option Amount or USD LIBOR Option Amount, 11/27/96)(9) 3,300,000 3,360,225
--------------
Total Structured Instruments (Cost $6,341,455) 6,393,265
==================================================================================================================================
Repurchase Agreements--4.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 5.90%,
dated 12/29/95, to be repurchased at $63,941,890 on 1/2/96,
collateralized by U.S. Treasury Nts., 5.125%--8.75%,
12/31/96--11/5/04, with a value of $34,685,383, U.S.
Treasury Bonds, 6.25%--11.25%, 8/15/03--8/15/23, with a value
of $21,020,176, and U.S. Treasury Bills maturing 11/14/96,
with a value of $9,532,348 (Cost $63,900,000) 63,900,000 63,900,000
==================================================================================================================================
Total Investments, at Value (Cost $1,352,211,270) 100.7% 1,364,132,440
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.7) (9,628,210)
--------- --------------
Net Assets 100.0% $1,354,504,230
=========== ==============
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
AUD--Australian Dollar FRF--French Franc NZD--New Zealand Dollar
CAD--Canadian Dollar GBP--British Pound Sterling PLZ--Polish Zloty
CLP--Chilean Peso IDR--Indonesian Rupiah PTE--Portuguese Escudo
DEM--German Deutsche Mark IEP--Irish Punt SEK--Swedish Krona
DKK--Danish Krone ITL--Italian Lira THB--Thai Baht
ESP --Spanish Peseta JPY--Japanese Yen
2. Indexed instrument for which the principal amount and/or interest due at
maturity is affected by the relative value of a foreign currency.
3. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
4. 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). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows.
5. When-issued security to be delivered and settled after December 31, 1995.
6. Represents the current interest rate for a variable rate security.
17 Oppenheimer High Yield Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
7. A sufficient amount of liquid assets has been designated to cover outstanding
written call options, as follows:
<TABLE>
<CAPTION>
Face/Shares Expiration Exercise Premium Market Value
Subject to Call Date Price Received Note 1
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
Call Option on Brazil
(Federal Republic of)
Eligible Interest Bonds,
6.812%, 4/15/06 4,750,000 1/8/96 $65.875 $ 47,500 $136,325
- ----------------------------------------------------------------------------------------------------------------------------
Call Option on Bulgaria
(Republic of) Interest
Arrears Bonds, 6.75%,
7/28/11 7,000,000 1/22/96 45.00 100,100 97,300
-------- --------
$147,600 $233,625
======== ========
</TABLE>
8. Identifies issues considered to be illiquid--See Note 6 of Notes to Financial
Statements.
9. 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 $66,452,899 or 4.91% of the Fund's net assets, at December
31, 1995.
10. Denotes a step bond: a zero coupon bond that converts to a fixed rate of
interest at a designated future date.
11. Interest or dividend is paid in kind.
12. Non-income producing--issuer is in default of interest payment.
13. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, face amount disclosed represents total underlying
principal.
14. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended December 31, 1995.
The aggregate fair value of all securities of affiliated companies as of
Decembver 31, 1995 amounted to $320,747. Transactions during the period in which
the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Balance June 30, 1995 Gross Additions Gross Redemptions Balance December 31, 1995 Dividend/
----------------------- -------------------- ------------------- ---------------------------- Interest
Stocks Shares/Face Cost Shares/Face Cost Shares/Face Cost Shares/Face Cost Income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Pope, Evans &
Robbins, Inc. 1,688,400 $1,114,384 -- $ -- -- $ -- 1,688,400 $1,114,384 $ --
Bonds and Notes
- -----------------------------------------------------------------------------------------------------------------------------------
Pope, Evans &
Robbins, Inc.,
7% Sr. Nts.,
5/15/98 5,955,189 4,662,420 -- -- -- -- 5,955,189 4,662,420 --
---------- ----- ----- ---------- --------
$5,776,804 $ -- $ -- $5,776,804 $ --
========== ===== ===== ========== ========
</TABLE>
15. Partial interest payment received.
16. Non-income producing security.
See accompanying Notes to Financial Statements.
18 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
Statement of Assets and Liabilities December 31, 1995 (unaudited)
<S> <C> <C>
==================================================================================================================================
Assets Investments, at value (cost $1,352,211,270)--see accompanying statement $1,364,132,440
--------------------------------------------------------------------------------------------------------
Cash 472,540
--------------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 27,891,186
Shares of beneficial interest sold 4,331,690
Investments sold 1,530,348
Receivable for daily variation on futures contracts 152,281
--------------------------------------------------------------------------------------------------------
Other 97,853
--------------
Total assets 1,398,608,338
==================================================================================================================================
Liabilities Unrealized depreciation on forward foreign currency exchange contracts--Note 8 2,974
--------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $147,600)--see accompanying
statement--Note 4 233,625
--------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 35,022,336
Shares of beneficial interest redeemed 4,206,841
Dividends 3,708,446
Distribution and service plan fees 695,384
Transfer and shareholder servicing agent fees 42,766
Other 191,736
--------------
Total liabilities 44,104,108
--------------------------------------------------------------------------------------------------------
Net Assets $1,354,504,230
==============
==================================================================================================================================
Composition of Paid-in capital $1,559,911,233
Net Assets --------------------------------------------------------------------------------------------------------
Overdistributed net investment income (3,431,398)
--------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign
currency transactions (214,321,445)
--------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 12,345,840
--------------
Net assets $1,354,504,230
==============
==================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$1,113,481,130 and 83,045,968 shares of beneficial interest outstanding) $13.41
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $14.08
--------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $239,279,274 and 17,949,557 shares of beneficial interest outstanding) $13.33
--------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $1,743,826 and 130,104 shares of beneficial interest outstanding) $13.40
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
Statement of Operations For the Six Months Ended December 31, 1995 (Unaudited)
<S> <C> <C>
==================================================================================================================================
Investment Income Interest (net of foreign withholding taxes of $13,307) $68,736,785
--------------------------------------------------------------------------------------------------------
Dividends 1,209,821
-----------
Total income 69,946,606
==================================================================================================================================
Expenses Management fees--Note 5 4,198,667
--------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 5:
Class A 1,097,621
Class B 1,092,260
Class C 1,235
--------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 763,369
--------------------------------------------------------------------------------------------------------
Shareholder reports 192,748
--------------------------------------------------------------------------------------------------------
Custodian fees and expenses 174,109
--------------------------------------------------------------------------------------------------------
Legal and auditing fees 104,941
--------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 25,522
--------------------------------------------------------------------------------------------------------
Insurance expenses 21,069
--------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 193
Class B 17,289
Class C 366
--------------------------------------------------------------------------------------------------------
Other 50,556
-----------
Total expenses 7,739,945
==================================================================================================================================
Net Investment Income 62,206,661
==================================================================================================================================
Realized and Unrealized
Gain (Loss) Net realized gain on:
Investments 5,607,039
Closing of futures contracts 844,254
Foreign currency transactions 37,227
-----------
Net realized gain 6,488,520
--------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 12,141,245
Translation of assets and liabilities denominated in foreign currencies (299,922)
-----------
Net change 11,841,323
-----------
Net realized and unrealized gain 18,329,843
==================================================================================================================================
Net Increase in Net Assets Resulting From Operations $80,536,504
===========
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer High Yield Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1995 June 30,
(Unaudited) 1995
<S> <C> <C> <C>
==================================================================================================================================
Operations Net investment income $ 62,206,661 $ 110,729,752
--------------------------------------------------------------------------------------------------------
Net realized gain (loss) 6,488,520 (57,178,186)
--------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 11,841,323 26,763,120
-------------- --------------
Net increase in net assets resulting from operations 80,536,504 80,314,686
==================================================================================================================================
Dividends and Dividends from net investment income:
Distributions Class A (52,192,608) (98,284,579)
To Shareholders Class B (9,666,448) (11,983,690)
Class C (9,365) --
--------------------------------------------------------------------------------------------------------
Tax return of capital distribution:
Class A -- (998,196)
Class B -- (181,114)
==================================================================================================================================
Beneficial Interest Net increase in net assets resulting from beneficial interest
Transactions transactions--Note 2:
Class A 37,069,670 40,387,389
Class B 43,814,221 107,007,443
Class C 1,735,106 --
==================================================================================================================================
Net Assets Total increase 101,287,080 116,261,939
--------------------------------------------------------------------------------------------------------
Beginning of period 1,253,217,150 1,136,955,211
-------------- --------------
End of period (including overdistributed net investment
income of $3,431,398 and $3,769,638, respectively) $1,354,504,230 $1,253,217,150
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer High Yield Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------
Six Months Ended
December 31, 1995 Year Ended June 30,
(Unaudited) 1995 1994
<S> <C> <C> <C>
==============================================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $13.22 $13.63 $14.16
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .65 1.30 1.42
Net realized and unrealized gain (loss) .18 (.40) (.54)
---------- ---------- ----------
Total income from investment operations .83 .90 .88
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.64) (1.30) (1.41)
Tax return of capital distribution -- (.01) --
---------- ---------- ----------
Total dividends and distributions to shareholders (.64) (1.31) (1.41)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.41 $13.22 $13.63
========== ========== ==========
==============================================================================================================================
Total Return, at Net Asset Value(3) 6.38% 7.09% 6.27%
==============================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $1,113,481 $1,060,752 $1,049,446
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,081,014 $1,005,746 $1,111,103
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 9.65%(4) 9.81% 10.10%
Expenses 1.05%(4) 1.03% .96%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (5) 43.8% 93.7% 96.7%
</TABLE>
1. For the period from November 1, 1995 (inception of offering) to December 31,
1995.
2. For the period from May 3, 1993 (inception of offering) to June 30, 1993.
3. 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.
22 Oppenheimer High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
Class B Class C
- ------------------------------------ ------------------------------------------------------------------- ----------
Period
Ended
Six Months Ended Dec. 31,
December 31, 1995 Year Ended June 30, 1995(1)
1993 1992 1991 (Unaudited) 1995 1994 1993(2) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
================================================================================================================================
$13.76 $13.08 $13.60 $13.15 $13.57 $14.12 $13.87 $13.30
- --------------------------------------------------------------------------------------------------------------------------------
1.60 1.79 1.91 .59 1.20 1.35 .23 .19
.36 .68 (.51) .18 (.42) (.60) .27 .10
- ---------- -------- -------- -------- -------- ------- ------- --------
1.96 2.47 1.40 .77 .78 .75 .50 .29
- --------------------------------------------------------------------------------------------------------------------------------
(1.56) (1.79) (1.92) (.59) (1.19) (1.30) (.25) (.19)
-- -- -- -- (.01) -- -- --
- ---------- -------- -------- -------- -------- ------- ------- --------
(1.56) (1.79) (1.92) (.59) (1.20) (1.30) (.25) (.19)
- --------------------------------------------------------------------------------------------------------------------------------
$14.16 $13.76 $13.08 $13.33 $13.15 $13.57 $14.12 $13.40
========== ======== ======== ======== ======== ======= ======= ========
================================================================================================================================
15.31% 20.06% 11.90% 5.94% 6.21% 5.31% 3.54% 2.18%
================================================================================================================================
$1,119,056 $902,562 $657,182 $239,279 $192,465 $87,509 $10,493 $1,744
- --------------------------------------------------------------------------------------------------------------------------------
$ 978,671 $768,339 $601,758 $216,989 $134,550 $51,816 $ 4,405 $ 767
- --------------------------------------------------------------------------------------------------------------------------------
11.59% 13.15% 14.94% 8.81%(4) 8.95% 8.98% 10.84%(4) 7.73%(4)
.97% .92% .96% 1.86%(4) 1.84% 1.88% 2.28%(4) 2.03%(4)
- --------------------------------------------------------------------------------------------------------------------------------
87.2% 64.0% 90.4% 43.8% 93.7% 96.7% 87.2% 43.8%
</TABLE>
4. Annualized.
5. 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 December 31, 1995 were $626,988,478 and $540,025,669, respectively.
See accompanying Notes to Financial Statements.
23 Oppenheimer High Yield Fund
<PAGE>
Notes to Financial Statements (Unaudited)
================================================================================
1. Significant
Accounting Policies
Oppenheimer High Yield Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek a high level of
current income primarily through investing in a diversified portfolio of
high-yield fixed income securities. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B and Class
C shares. Class A shares are sold with a front-end sales charge. Class B and
Class C shares may be subject to a contingent deferred sales charge. All three
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 are valued 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
foreign currency exchange 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.
- ----------------------------------------------------------------------------
Securities Purchased on a When-Issued Basis. Delivery and payment for
securities that have been purchased by the Fund on a forward commitment or
when-issued basis can take place a month or more after the transaction date.
During the period, such securities do not earn interest, are subject to
market fluctuation and may increase or decrease in value prior to their
delivery. The Fund maintains, in a segregated account with its custodian,
assets with a market value equal to the amount of its purchase commitments.
The purchase of securities on a when-issued or forward commitment basis may
increase the volatility of the Fund's net asset value to the extent the Fund
makes such purchases while remaining substantially fully invested. As of
December 31, 1995, the Fund had entered into outstanding when-issued or
forward commitments of $9,082,313.
In connection with its ability to purchase securities on a when-issued or
forward commitment basis, the Fund may enter into mortgage "dollar-rolls" in
which the Fund sells securities for delivery in the current month and
simultaneously contracts with the same counterparty to repurchase similar
(same type, coupon and maturity) but not identical securities on a specified
future date. The Fund records each dollar-roll as a sale and a new purchase
transaction.
- ----------------------------------------------------------------------------
Security Credit Risk. The Fund invests in high yield securities, which may
be subject to a greater degree of credit risk, greater market fluctuations
and risk of loss of income and principal, and may be more sensitive to
economic conditions than lower yielding, higher rated fixed income
securities. The Fund may acquire securities in default, and is not obligated
to dispose of securities whose issuers subsequently default. At December 31,
1995, securities with an aggregate market value of $8,753,032, representing
.65% 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 rates on investments
is separately identified from the fluctuations arising from changes in
market values of securities held and reported with all other foreign
currency gains and losses in the Fund's Statement of Operations.
24 Oppenheimer High Yield Fund
<PAGE>
================================================================================
1. Significant
Accounting Policies
(continued)
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.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income, including any net realized
gain on investments not offset by loss carryovers, to shareholders.
Therefore, no federal income or excise tax provision is required. At
December 31, 1995, the Fund had available for federal income tax purposes
an unused capital loss carryover of approximately $167,575,000, which
expires between 1997 and 2003.
- --------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends
separately for Class A, Class B and Class C 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 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.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date) and dividend income is
recorded on the ex-dividend date. Discount on securities purchased is
amortized over the life of the respective securities, in accordance with
federal income tax requirements. Realized gains and losses on investments
and options written and unrealized appreciation and depreciation are
determined on an identified cost basis, which is the same basis used for
federal income tax purposes. Dividends in kind are recognized as income
on the ex-dividend date, at the current market value of the underlying
security. Interest on payment-in-kind debt instruments is accrued as
income at the coupon rate and a market adjustment is made on the ex-date.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
25 Oppenheimer High Yield Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
2. Shares of
Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended December 31, 1995(1) Year Ended June 30, 1995
-------------------------------------- --------------------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
Class A:
Sold 10,081,018 $134,109,067 19,902,935 $270,466,315
Dividends reinvested 2,294,175 30,538,059 4,217,534 45,347,591
Redeemed (9,588,974) (127,577,456) (20,862,882) (275,426,517)
----------- ------------- ------------ -------------
Net increase 2,786,219 $37,069,670 3,257,587 $40,387,389
- ---------------------------------------------------------------------------------------------------------
Class B:
Sold 4,925,441 $65,169,159 10,963,657 $143,405,028
Dividends reinvested 350,816 4,644,004 431,770 5,641,548
Redeemed (1,966,138) (25,998,942) (3,205,114) (42,039,133)
----------- ------------ ----------- ------------
Net increase 3,310,119 $43,814,221 8,190,313 $107,007,443
- ---------------------------------------------------------------------------------------------------------
Class C:
Sold 160,659 $2,143,498 -- $ --
Dividends reinvested 436 5,833 -- --
Redeemed (30,991) (414,225) -- --
----------- ------------ ----------- ------------
Net increase 130,104 $1,735,106 -- $ --
=========== ============ =========== ============
</TABLE>
1. For the six months ended December 31, 1995 for Class A and Class B shares
and for the period from November 1, 1995 (inception of offering) to December
31, 1995 for Class C shares.
================================================================================
3. Unrealized Gains
And Losses on
Investments
At December 31, 1995, net unrealized appreciation on investments of $11,835,145
was composed of gross appreciation of $58,307,683, and gross depreciation of
$46,472,538.
================================================================================
4. Option Activity
The Fund may buy and sell put and call options, or write covered put and
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.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. 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 six months ended December 31, 1995 was as
follows:
<TABLE>
<CAPTION>
Call Options
-----------------------
Number of Amount of
Options Premiums
<S> <C> <C>
- --------------------------------------------------------------------------------
Options outstanding at June 30, 1995 -- $ --
- --------------------------------------------------------------------------------
Options written 11,750 147,600
-------- --------
Options outstanding at December 31, 1995 11,750 $147,600
======== ========
</TABLE>
26 Oppenheimer High Yield Fund
<PAGE>
================================================================================
5. Management Fees
And Other Transactions
With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement 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 six months ended December 31, 1995, commissions (sales charges
paid by investors) on sales of Class A shares totaled $1,381,317, of which
$322,390 was retained by OppenheimerFunds 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 and Class C shares totaled $1,992,510 and $13,912, of
which $17,322 was paid to an affiliated broker/dealer. During the six months
ended December 31, 1995, OFDI received contingent deferred sales charges of
$318,988 upon redemption of Class B shares as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OFS'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 and Class C shares are subject to an asset-based sales
charge of .75% of net assets annually, to reimburse OFDI for sales
commissions paid from its own resources at the time of sale and associated
financing costs. In the event of termination or discontinuance of the Class
B or Class C plan, the Board of Trustees may allow the Fund to continue
payment of the asset-based sales charge to OFDI for distribution expenses
incurred on Class B or Class C shares sold prior to termination or
discontinuance of the plan. At December 31, 1995, OFDI had incurred
unreimbursed expenses of $8,638,316 for Class B and $38,131 for Class C.
During the six months ended December 31, 1995, OFDI paid $14,488 and $1,450
to an affiliated broker/dealer as reimbursement for Class A and Class B
personal service and maintenance expenses, respectively, and retained
$939,077 and $1,075, respectively, as reimbursement for Class B and Class C
sales commissions and service fee advances, as well as financing costs.
================================================================================
6. Illiquid and
Restricted Securities
At December 31, 1995, investments in 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 December 31, 1995 was $11,091,782, which represents .82% of the
Fund's net assets. Information concerning these securities is as follows:
<TABLE>
<CAPTION>
Valuation
Per Unit as
of Dec. 31,
Security Acquisition Date Cost Per Unit 1995
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Excess Cash Flow Payment Certificates,
Series AG-7A 12/30/92 $ -- $ .01
- ----------------------------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Litigation Trust 12/30/92 -- .01
- ----------------------------------------------------------------------------------------------------------------------------------
Arizona Charlie's, Inc., 12% First Mtg. Nts., Series A, 11/15/00 11/18/93 100.00 70.00
- ----------------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/18/93 2.00 .50
- ----------------------------------------------------------------------------------------------------------------------------------
Businessland, Inc., 5.50% Sub. Debs., 3/1/07 9/20/91--1/13/92 52.17 52.50
- ----------------------------------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% First Mtg. Nts., Series A, 11/15/00 11/18/93 87.50 80.00
- ----------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989--1990 Integrated Loan Facility Bonds, 6.875%,
7/1/01 12/5/95 92.00 93.00
- ----------------------------------------------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., Common Stock 5/2/94 9.50 1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation Agreement, Tranche A, 1.5625%, 9/30/00 12/13/95 .84 .82
- ----------------------------------------------------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation Agreement, Tranche B, 1.5625%, 9/30/00 12/13/95 .84 .82
</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.
27 Oppenheimer High Yield Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
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 December 31, 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 December 31, 1995 Appreciation
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds 3/96 443 $53,810,656 $ 490,094
</TABLE>
================================================================================
8. Forward Contracts
A forward foreign currency exchange contract (forward contract) is a
commitment to purchase or sell a foreign currency at a future date, at a
negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks.
They may also be used to tactically shift portfolio currency risk. The Fund
generally enters into forward contracts as a hedge upon the purchase or sale
of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
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. The Fund will realize a gain
or loss upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments
where applicable. Unrealized appreciation or depreciation on forward
contracts is reported in the Statement of Assets and Liabilities. Realized
gains and losses are reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
Risks include the potential inability of the counterparty to meet the
terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
At December 31, 1995, the Fund had outstanding forward contracts to purchase
and sell foreign currencies as follows:
<TABLE>
<CAPTION>
Unrealized
Contract Valuation as of Appreciation
Contracts to Purchase Exchange Date Amount(000s) December 31, 1995 (Depreciation
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Japanese Yen (JPY) 1/4/96 170,000 JPY $ 1,648,468 $(29,716)
New Zealand Dollar (NZD) 12/18/96 2,769 NZD 1,762,240 6,679
----------- --------
$ 3,410,708 $(23,037)
=========== ========
Contracts to Sell
- ----------------------------------------------------------------------------------------------------------------------
German Deutsche Mark (DEM) 1/8/96--2/21/96 15,250 DEM $10,646,458 $(17,007)
Japanese Yen (JPY) 12/18/96 169,675 JPY 1,718,491 37,070
----------- --------
$12,364,949 20,063
=========== ========
Net Unrealized Depreciation $ (2,974)
========
</TABLE>
28 Oppenheimer High Yield Fund
<PAGE>
Oppenheimer High Yield Fund
===============================================================================
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
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Bridget A. Macaskill, Trustee and President
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 OppenheimerFunds, Inc.
===============================================================================
Distributor OppenheimerFunds Distributor, Inc.
===============================================================================
Transfer and Shareholder
Servicing Agent
OppenheimerFunds Services
===============================================================================
Custodian of
Portfolio Securities
The Bank of New York
===============================================================================
Independent Auditors
Deloitte & Touche LLP
===============================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken
from the records of the Fund without examination by the
independent auditors. This is a copy of a report to
shareholders of Oppenheimer High Yield Fund. This report
must be preceded or accompanied by a Prospectus of
Oppenheimer High Yield Fund. For material information
concerning the Fund, see the Prospectus.
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.
29 Oppenheimer High Yield Fund
<PAGE>
Oppenheimer Funds Family
================================================================================
OppenheimerFunds offers over 35 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 35 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 flexibl e
fixed-income investments--with over 2.8 million shareholder accounts and more
than $41 billion under Oppenheimer's management and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange shares. And you can
exchange shares easily by mail or by telephone.1 For more information on
Oppenheimer funds, 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.
===============================================================================
Stock Funds
Global Emerging Growth Fund Growth Fund
Enterprise Fund Global Fund
Discovery Fund Quest Global Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
================================================================================
Stock & Bond Funds
Main Street Income & Growth Fund Global Growth & Income Fund
Quest Opportunity Value Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
================================================================================
Bond Funds
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Strategic Income Fund Limited-Term Government Fund
Champion Income Fund
================================================================================
Tax-Exempt Funds
California Tax-Exempt Fund2 Pennsylvania Tax-Exempt Fund2
Florida Tax-Exempt Fund2 Tax-Free Bond Fund
New Jersey Tax-Exempt Fund2 Insured Tax-Exempt Fund
New York Tax-Exempt Fund2 Intermediate Tax-Exempt Fund
================================================================================
Money Market Funds
Money Market Fund Cash Reserves
1. Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
2. Available only
to investors in certain states. Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
(c) Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
30 Oppenheimer High Yield Fund
<PAGE>
<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
RS0280.001.1295 February 28, 1996
[Picture of Jennifer Leonard]
[Caption] Jennifer Leonard, Customer Service Representative
OppenheimerFunds Service
"How may I help you?"
As an Oppenheimer funds 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 Oppenheimer funds 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.
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 Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
================================================================================
(Oppenheimer Logo)
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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