OPPENHEIMER HIGH YIELD FUND
Supplement Dated May 1, 1997
to the Prospectus Dated October 1, 1996
This supplement to the Prospectus replaces the supplements dated
October 1, 1996, October 18, 1996, December 11, 1996 and January 29, 1997 and
changes the Prospectus as follows:
1. The first footnote under the "Shareholder Transaction Expenses" table on
page 3 is revised to read as follows:
(1) If you invest $1 million or more ($500,000 or more for purchases by
"Retirement Plans", as defined in "Class A Contingent Deferred Sales Charge" on
page 30) in Class A shares, you may have to pay a sales charge of up to 1% if
you sell your shares within 12 calendar months (18 months for shares purchased
prior to May 1, 1997) from the end of the calendar month during which you
purchased those shares. See "How to Buy Shares - Buying Class A Shares", below.
2. The first sentence under the caption "What does the Fund Invest In?" on page
5 is deleted and replaced with the following:
To seek high current income, the Fund anticipates that under normal market
conditions (when the Manager believes that the financial markets are not in a
volatile or unstable period) at least 80% of its total assets will be invested
in fixed-income securities which may include high yield, lower rated long term
debt (commonly referred to as "junk bonds"), preferred stock, and foreign
securities.
3. On page 11, the second sentence under the caption "Investment Policies and
Strategies" is deleted and replaced with the following:
Consistent with its primary investment objective, the Fund anticipates that
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under normal conditions at least 80% of the value of its total assets will be
invested in fixed-income securities.
4. The first and second sentences in the sub-section captioned "Class A Shares"
in "How to Buy Shares - Classes of Shares" on page 26 are revised to read as
follows:
If you buy Class A shares, you may pay an initial sales charge on investments up
to $1 million (up to $500,000 for purchases by "Retirement Plans," as defined in
"Class A Contingent Deferred Sales Charge" on page 30). If you purchase Class A
shares as part of an investment of at least $1 million ($500,000 for Retirement
Plans) in shares of one or more Oppenheimer funds, you will not pay an initial
sales charge, but if you sell any of those shares within 12 months of buying
them (18 months if the shares were purchased prior to May 1, 1997), you may pay
a contingent deferred sales charge.
5. The following is added to "Which Class of Shares Should You Choose? -
How Does it Affect Payments To My Broker?" on page 28:
The Distributor may pay additional periodic compensation from its own resources
to securities dealers or financial institutions based upon the value of shares
of the Fund owned by the dealer or financial institution for its own account or
for its customers.
6. The first and second paragraphs in the section captioned "Buying Class A
Shares Class A Contingent Deferred Sales Charge" on page 30 are revised to read
as follows:
There is no initial sales charge on purchases of Class A shares of any one or
more of the Oppenheimer funds in the following cases:
o Purchases aggregating $1 million or more.
o Purchases by a retirement plan qualified under sections 401(a) or
401(k) of the Internal Revenue Code, by a non-qualified deferred
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compensation plan (not including Section 457 plans), employee benefit plan,
group retirement plan (see "How to Buy Shares - Retirement Plans" in the
Statement of Additional Information for further details), an employee's
403(b)(7) custodial plan account, SEP IRA, SARSEP, or SIMPLE plan (all of these
plans are collectively referred to as "Retirement Plans"); that: (1) buys shares
costing $500,000 or more or (2) has, at the time of purchase, 100 or more
eligible participants, or (3) certifies that it projects to have annual plan
purchases of $200,000 or more.
o Purchases by an OppenheimerFunds Rollover IRA if the purchases are
made (1) through a broker, dealer, bank or registered investment adviser that
has made special arrangements with the Distributor for these purchases, or (2)
by a direct rollover of a distribution from a qualified retirement plan if the
administrator of that plan has made special arrangements with the Distributor
for those purchases.
o Purchases by a retirement plan qualified under section 401(a) if the
retirement plan has total plan assets of $500,00 or more.
The Distributor pays dealers of record commissions on those purchases in an
amount equal to (i) 1.0% for non-Retirement Plan accounts, and (ii) for
Retirement Plan accounts, 1.0% of the first $2.5 million, plus 0.50% of the next
$2.5 million, plus 0.25% of purchases over $5 million calculated on a calendar
year basis. That commission will be paid only on those purchases that were not
previously subject to a front-end sales charge and dealer commission. No sales
commission will be paid to the dealer, broker or financial institution on sales
of Class A shares purchased with the redemption proceeds of shares of a mutual
fund offered as an investment option in a Retirement Plan in which Oppenheimer
funds are also offered as investment options under a special arrangement with
the Distributor if the purchase occurs more than 30 days after the addition of
the Oppenheimer funds as an investment option to the Retirement Plan.
7. In the third paragraph of "Buying Class A Shares - Class A Contingent
Deferred
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Sales Charge" on page 31, the first sentence is replaced by the following:
If you redeem any of those shares purchased prior to May 1, 1997, within 18
months of the end of the calendar month of their purchase, a contingent deferred
sales charge (called the "Class A contingent deferred sales charge") may be
deducted from the redemption proceeds. A Class A contingent deferred sales
charge may be deducted from the redemption proceeds of any of those shares
purchased on or after May 1, 1997 that are redeemed within 12 months of the end
of the calendar month of their purchase.
8. Effective January 1, 1997, the second sentence in the section captioned
"Special Arrangements with Dealers" on page 31 is deleted.
9. The third sentence of the second paragraph of "Reduced Sales Charges for
Class A Share Purchases - Right of Accumulation" on page 32 is replaced by the
following:
The Distributor will add the value, at current offering price, of the shares you
previously purchased and currently own to the value of current purchases to
determine the sales charge rate that applies.
10. The seventh subparagraph under the section captioned "Waivers of Class A
Sales Charges - Waivers of Initial and Contingent Deferred Sales Charges for
Certain Purchasers" on page 33 is deleted and replaced with the following
subparagraph:
o (1) investment advisors and financial planners who charge an
advisory, consulting or other fee for their services and buy shares for their
own accounts or the accounts of their clients, (2) Retirement Plans and deferred
compensation plans and trusts used to fund those Plans (including, for example,
plans qualified or created under sections 401(a), 403(b) or 457 of the Internal
Revenue Code), and "rabbi trusts" that buy shares for their own accounts, in
each case if those purchases are made through a broker or agent or other
financial intermediary that has made special arrangements with the Distributor
for those purchases; and (3) clients of such investment advisors or financial
planners who buy shares for their own accounts may
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also purchase shares without sales charge but only if their accounts are linked
to a master account of their investment advisor or financial planner on the
books and records of the broker, agent or financial intermediary with which the
Distributor has made such special arrangements (each of these investors may be
charged a fee by the broker, agent or financial intermediary for purchasing
shares).
11. The section captioned "Waivers of Class A Sales Charges - Waivers of the
Class A Contingent Deferred Sales Charge for Certain Redemptions" on page 34 is
revised to read as follows:
The Class A contingent deferred sales charge is also waived if shares that would
otherwise be subject to the contingent deferred sales charge are redeemed in the
following cases:
o to make Automatic Withdrawal Plan payments that are limited annually
to no more than 12% of the original account value;
o involuntary redemptions of shares by operation of law or involuntary
redemptions of small accounts (see "Shareholder Account Rules and Policies,"
below);
o if, at the time of purchase of shares (prior to May 1, 1997) the
dealer agreed in writing to accept the dealer's portion of the sales commission
in installments of 1/18th of the commission per month (and no further commission
will be payable if the shares are redeemed within 18 months of purchase);
o if, at the time of purchase of shares (on or after May 1, 1997) the
dealer agrees in writing to accept the dealer's portion of the sales commission
in installments of 1/12th of the commission per month (and no further commission
will be payable if the shares are redeemed within 12 months of purchase);
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o for distributions from a TRAC-2000 401(k) plan sponsored by the
Distributor due to the termination of the TRAC-2000 program.
o for distributions from Retirement Plans, deferred compensation plans
or other employee benefit plans for any of the following purposes: (1) following
the death or disability (as defined in the Internal Revenue Code) of the
participant or beneficiary (the death or disability must occur after the
participant's account was established); (2) to return excess contributions; (3)
to return contributions made due to a mistake of fact; (4) hardship withdrawals,
as defined in the plan; (5) under a Qualified Domestic Relations Order, as
defined in the Internal Revenue Code; (6) to meet the minimum distribution
requirements of the Internal Revenue Code; (7) to establish "substantially equal
periodic payments" as described in Section 72(t) of the Internal Revenue Code;
(8) for retirement distributions or loans to participants or beneficiaries; (9)
separation from service; (10) participant- directed redemptions to purchase
shares of a mutual fund (other than a fund managed by the Manager or its
subsidiary) offered as an investment option in a Retirement Plan in which
Oppenheimer funds are also offered as investment options under a special
arrangement with the Distributor; or (11) plan termination or "in-service
distributions", if the redemption proceeds are rolled over directly to an
OppenheimerFunds IRA.
o for distributions from Retirement Plans having 500 or more eligible
participants, except distributions due to termination of all of the Oppenheimer
funds as an investment option under the Plan; and
o for distributions from 401(k) plans sponsored by broker-dealers that
have entered into a special agreement with the Distributor allowing this waiver.
12. The following sentence is added to the end of the fourth paragraph in
"Distribution and Service Plans for Class B and Class C Shares" on page 37:
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If a dealer has a special agreement with the Distributor, the Distributor will
pay the Class B service fee and the asset-based sales charge to the dealer
quarterly in lieu of paying the sales commission and service fee advance at the
time of purchase.
13. The following is added as a new penultimate sentence to the fifth paragraph
of "Distribution and Service Plans for Class B and Class C shares" on page 37:
If a dealer has a special agreement with the Distributor, the
Distributor shall pay the Class C service fee and asset-based sales charge to
the dealer quarterly in lieu of paying the sales commission and service fee
advance at the time of purchase.
14. The introductory phrase in the sixth sub-paragraph of "Waivers for
Redemptions in Certain Cases"in "Waivers of Class B and Class C Sales Charges"
on page 38 is replaced with the following and a new sub-section (6) is added as
follows:
o distributions from OppenheimerFunds prototype 401(k) plans and
from certain Massachusetts Mutual Life Insurance Company prototype
401(k) plans . . . or (6) for loans to participants or beneficiaries.
15. The following sub-paragraph is added at the end of "Waivers of Class B
and Class C Sales Charges" on page 38:
o distributions from 401(k) plans sponsored by broker-dealers that have
entered into a special agreement with the Distributor allowing this waiver.
16. The section captioned "Special Investor Services" on page 39 is revised by
adding the following after the sub-section captioned "PhoneLink":
Shareholder Transactions by Fax. Beginning May 30, 1997, requests for
certain account transactions may be sent to the Transfer Agent by fax
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(telecopier). Please call 1-800-525-7048 for information about which
transactions are included. Transaction requests submitted by fax are subject to
the same rules and restrictions as written and telephone requests described in
this Prospectus.
17. Appendix C (appearing on pages C-1 and C-2) is hereby deleted.
May 1, 1997 PS0280.015
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