<PAGE> 1
[PHOTO]
OPPENHEIMER HIGH YIELD FUND
Semiannual Report December 31, 1996
"We need
our money
to work
as hard
as it can."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT AN INVESTMENT THAT OFFERS HIGH INCOME
POTENTIAL AS WELL AS DIVERSIFICATION FOR THEIR INCOME PORTFOLIO.
NEWS
STANDARDIZED YIELDS
For the 30 Days Ended 12/31/96:(3)
Class A
8.24%
Class B
7.83%
Class C
7.78%
THE FUND'S CLASS A SHARES ARE RANKED ***** AMONG 1,104 (3-YEAR), 597 (5-YEAR)
AND 242 (10-YEAR) TAXABLE BOND FUNDS AS OF 12/31/96 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 primarily 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 returns for the six months ended 12/31/96 for Class A, B and C shares
were 8.29%, 7.85% and 7.86%, respectively, without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-,
5- and 10-year periods ended 12/31/96 were 8.83%, 10.91% and 10.05%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 5/3/93 were 8.41% and 8.79%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 11/1/95 were 12.33% and 13.40%,
respectively.(2)
OUTLOOK
"Today's environment of moderate economic growth, healthy corporate profits and
easy access to capital markets should contribute to further credit improvement
for many high-yield issuers."
Ralph Stellmacher, Portfolio Manager
December 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. For more complete
information, please review the prospectus carefully before you invest.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 4.75%.
Class B returns include the applicable contingent deferred sales charge of 5%
(1-year) and 3% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
performance calculations is in the Fund's prospectus. Class B and C shares are
subject to an annual .75% asset-based sales charge.
3. Standardized yield is based on net investment income calculated for the
30-day period ended 12/31/96. Falling net asset values will tend to
artificially raise yields.
4. Source: Morningstar Mutual Funds, 12/31/96. Morningstar rankings are based
on risk-adjusted investment returns, after considering sales charges and
expenses. Investment return measures a fund's (or class's) 3-, 5- and 10-year
(depending on the inception of the class or fund) average annual total returns
in excess of 90-day U.S. Treasury bill returns. Risk measures a fund's (or
class's) performance below 90-day U.S. Treasury bill returns. Risk and returns
are combined to produce star rankings, reflecting performance relative to the
average fund in a fund's category. The top 10% of funds in each investment
class receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3 stars; the
next 22.5%, 2 stars; and the bottom 10%, 1 star. The 5-star current ranking is
a weighted average of the 3-, 5- and 10-year rankings for the Fund's Class A
shares, which were 4, 5 and 5 stars, weighted 20%/30%/50%, respectively. The
1-year ranking is 4 stars, but is not included in Morningstar's overall ranking
calculations. There were 1,670 funds ranked in the 1-year period. Rankings are
subject to change monthly. The Fund's Class A, B and C shares have the same
investment portfolio but different expenses.
2 Oppenheimer High Yield Fund
<PAGE> 3
[PHOTO]
James C. Swain
Chairman
Oppenheimer
High Yield Fund
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
High Yield Fund
DEAR SHAREHOLDER,
Most likely, 1996 will be remembered as a "year of the stock market." While
several stock indices broke all-time records, the bond market, with the
exception of high-yield bonds, underperformed. The first half of the year was
difficult for most fixed income investors as concerns about inflation led to
rising long-term interest rates. But as we moved through the third and fourth
quarters, interest rates declined, ultimately resulting in a bond market rally.
And, although we anticipate interest-rate fluctuations in the coming months,
our outlook for early 1997 remains positive.
To understand where we're going, let's first look at where we've been. In
1996, many of the forces that pushed the stock market to record levels also
helped strengthen corporate credit fundamentals, leading to the excellent
performance of the high-yield sector. Over the later part of the year, with
robust corporate earnings, low inflation, a healthy economy and falling
Treasury yields, the high-yield market became very appealing to investors
seeking high returns from fixed income securities.
The rest of the bond market, however, didn't partake in the excitement.
During the first six months of 1996, interest rates rose sharply, in response
to investors' fears that the economy was growing too fast. As a result of these
anxieties, we saw the yield on the benchmark 30-year Treasury bond increase to
a high of about 7.0%.
However, some analysts anticipated that an environment of moderate
economic growth and low inflation would return, which would help stabilize, and
even lower, interest rates. And, during the second half of 1996, that's exactly
how events unfolded. So, as fall passed, investors who rode out the uncertainty
of the bond market early in 1996 were rewarded: The yield on the 30-year
Treasury bond progressively retreated to 6.42%, marking the lowest
interest-rate level since April 1996.
Over the last few months, new developments have added to the appeal of
bonds. First, while earlier economic indicators made investors wary,
third-quarter Gross Domestic Product (GDP) results came in at a substantially
lower level than those of the second quarter. Contrary to popular opinion, the
economy had slowed. Second, although higher wages were also blamed for a
seemingly fast-moving economy, the Employment Cost Indicator increased only
marginally, remaining well below the expected figure. Third, the federal
government deficit ended fiscal 1996 lower than what was projected.
For 1997, President Clinton has expressed a desire to balance the federal
budget, rather than to provide broad-based tax cuts. This move should prove
beneficial for the fixed income market. Additionally, with a firm dollar, low
inflation and slow growth, the fear of Federal Reserve tightening has
diminished. Some economists even forecast that the Fed will attempt to
stimulate the economy by reducing the federal funds rate during the first
quarter of 1997, further fueling our optimistic outlook for fixed income.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. 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, 1997
3 Oppenheimer High Yield Fund
<PAGE> 4
Q + A
[PHOTO]
Q What market factors helped the Fund's
performance?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW DID THE FUND PERFORM OVER THE PAST SIX MONTHS?
While the bond market of 1996 has been somewhat difficult, high-yield bonds,
and Oppenheimer High Yield Fund in particular, performed very well over the
second half of 1996. For the twelve months ended December 31, 1996, the Fund
finished 46th out of 148 high current yield funds ranked by Lipper Analytical
Services.(1)
[PHOTO]
WHAT INVESTMENT DECISIONS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
A number of investment decisions contributed to our performance. Our holdings
in companies that produce oil or gas or provide energy services strengthened
the Fund's performance. Strong global energy demand and technological
advancements within the industry have improved profitability for these
companies. Additionally, companies in this industry tend to be good for
diversification because their earnings are not directly tied to the general
U.S. business cycle.
The Fund also was well-positioned to benefit from consolidation trends in
several industries. A number of companies in the portfolio became targets for
acquisition by financially stronger companies, which resulted in an immediate
bond rating upgrade.
Investments in the foreign bond market also proved successful for the
Fund. In particular, foreign investments in both government and corporate
emerging market bonds performed superbly throughout the year.(2)
WERE THERE ANY INVESTMENTS THAT NEGATIVELY IMPACTED PERFORMANCE?
Our heavy emphasis on relatively higher-quality "B+" and "BB" high-yield bonds
put us at a slight performance
1. Source: Lipper Analytical Services, 12/31/96. Oppenheimer High Yield Fund
was ranked 37 out of 63 funds in its category for the 5-year period ended
12/31/96 and 10 out of 43 funds in its category for the 10-year period ended
12/31/96. Oppenheimer High Yield Fund is characterized by Lipper as a high
current yield fund. Lipper rankings compare average annual total returns but do
not take sales charges into consideration.
2. The Fund's portfolio is subject to change.
4 Oppenheimer High Yield Fund
<PAGE> 5
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 The Fund
benefited
from the
consolidation
trends in several
industries.
disadvantage this year. Bonds in these rating categories tend to be more
interest-rate-sensitive than lower-rated bonds and were disproportionately hurt
by rising interest rates early in the year. Also, investments in high-yield
bonds are subject to a greater risk that the issuer will default in its
principal or interest payments. Conversely, weaker "B" rated bonds, which we
de-emphasized, benefited disproportionately from ideal economic conditions
which drove credit improvement this year.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
We continue to see an opportunity to benefit from today's merger and
acquisition activity which is driving consolidation trends in certain
industries. In particular, we see these opportunities in the
media/telecommunications, healthcare, supermarket and financial services
industries.
[PHOTO]
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook is favorable for many reasons. Today's environment of moderate
economic growth, healthy corporate profits and easy access to capital markets
should contribute to further credit improvement for many high-yield issuers.
The size of the high-yield market is expected to continue to grow, with in
excess of $300 billion of debt currently outstanding. This growth has been
accompanied by an increase in both high-yield bond investors and issuers,
providing a very solid foundation for the market.
[PHOTO]
5 Oppenheimer High Yield Fund
<PAGE> 6
STATEMENT OF INVESTMENTS December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
==============================================================================================================================
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS--2.7%
- ------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security, Trust 177, Cl. B, 16.058%, 7/15/26(2) $ 5,472,781 $ 1,910,343
-----------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security, Trust 240, Cl. 2, 13.793%--15.764%, 9/1/23(2) 64,140,129 21,216,353
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through Certificates,
Series 1996-C1, Cl. E, 7.51%, 2/15/28(3)(4) 5,362,000 4,356,625
-----------------------------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through Certificates,
Series 1996-MC1, Cl. G, 7.15%, 6/15/06(5) 3,750,000 3,039,844
-----------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1994-C2, Cl. E, 8%, 4/25/25 2,633,883 2,626,475
Series 1995-C1, Cl. F, 6.90%, 2/25/27 2,375,723 2,094,348
-----------------------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII, Series 1996-C1,
Cl. E, 9.18%, 1/20/06 2,496,000 2,258,880
-----------------------------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through Certificates:
Series 1995-C4, Cl. E, 8.791%, 6/25/26(4)(5) 2,835,676 2,408,552
Series 1996-C3, Cl. E, 8.45%, 6/25/30(5) 1,575,000 1,391,414
-----------
Total Mortgage-Backed Obligations (Cost $39,459,259) 41,302,834
==============================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--8.6%
- ------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Treasury Bills, Zero Coupon, 12.12%, 1/17/97(6) ARP 1,300,000 1,296,686
-----------------------------------------------------------------------------------------------------------------------
Banco Estado Minas Gerais, 8.25%, 2/10/00 5,000,000 4,828,125
-----------------------------------------------------------------------------------------------------------------------
Banco Hipotecario Nacional (Argentina) Medium-Term Nts.,
10.625%, 8/7/06(7) 3,000,000 3,112,500
-----------------------------------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Registered Bonds, 11.25%, 5/30/06 5,000,000 5,456,250
-----------------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon:
25.79%, 11/6/97(6) MXP 29,800,000 3,103,967
29.17%, 7/3/97(6) MXP 14,284,440 1,604,816
28.59%, 7/31/97(6) MXP 15,800,000 1,745,681
27.80%, 9/4/97(6) MXP 21,930,000 2,382,010
-----------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Multi-Year Discount Facility
Agreement Trust Certificates, Series REGS, 6.688%, 9/15/07(4) 3,600,000 3,089,250
-----------------------------------------------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, 10%, 3/5/01 DEM 2,474,000 1,719,316
-----------------------------------------------------------------------------------------------------------------------
Canada (Government of) Debs., 10.50%, 7/1/00 CAD 14,495,000 12,405,086
-----------------------------------------------------------------------------------------------------------------------
Central Bank of Costa Rica Interest Claim Bonds,
Series B, 6.344%, 5/21/05(4)(5) 449,526 424,240
-----------------------------------------------------------------------------------------------------------------------
Comtel Brasileira Ltd. Nts., 10.75%, 9/26/04(3) 750,000 773,437
-----------------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 11/15/01 DKK 34,305,000 6,455,187
-----------------------------------------------------------------------------------------------------------------------
Germany (Republic of) Bonds, 7.375%, 12/2/02 DEM 4,860,000 3,503,935
-----------------------------------------------------------------------------------------------------------------------
Hashemite Kingdom of Jordan:
Disc. Bonds, 6.50%, 12/23/23(4) 3,500,000 2,708,125
Interest Arrears Bonds, 6.50%, 12/23/05(4) 2,080,000 1,918,800
-----------------------------------------------------------------------------------------------------------------------
Italy (Republic of):
Sr. Unsec. Unsub. Global Bonds, 0.563%, 7/26/99(4) JPY 805,000,000 6,971,534
Treasury Bonds, Buoni del Tesoro Poliennali, 10.50%, 11/1/98 ITL 4,400,000,000 3,098,853
-----------------------------------------------------------------------------------------------------------------------
Ministry of Finance (Russian Government) Unsec. Unsub. Debs.,
Series REGS, 9.25%, 11/27/01 130,000 126,669
</TABLE>
6 Oppenheimer High Yield Fund
<PAGE> 7
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN GOVERNMENT
OBLIGATIONS (CONTINUED)
New Zealand (Government of):
Bonds, 8%, 4/15/04 NZD 3,040,000 $ 2,243,762
Index Linked Bonds, 4.60%, 2/15/16(4) NZD 247,000 170,984
-----------------------------------------------------------------------------------------------------------------------
Norwegian Government Bonds, 9.50%, 10/31/02 NOK 17,540,000 3,280,898
-----------------------------------------------------------------------------------------------------------------------
Panama (Republic of) Interest Reduction Bonds, 3.50%, 7/17/14(8) 7,975,000 5,550,122
-----------------------------------------------------------------------------------------------------------------------
Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio Prazo,
11.625%, 2/23/98 PTE 1,049,000,000 7,167,151
-----------------------------------------------------------------------------------------------------------------------
Russia (Government of) Interest Nts., 12/29/49(9)(10) 2,500,000 1,740,625
-----------------------------------------------------------------------------------------------------------------------
Sweden (Kingdom of) Bonds, Series 1030, 13%, 6/15/01 SEK 27,400,000 5,173,838
-----------------------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA Bonds, 13%, 2/5/99 ITL 2,250,000,000 1,593,503
-----------------------------------------------------------------------------------------------------------------------
Telkom SA Ltd. Bonds, Series TK05, 12%, 3/31/98 ZAR 4,770,000 971,191
-----------------------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 12%, 9/22/01 AUD 7,450,000 7,076,214
-----------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 12.50%, 11/21/05 GBP 7,300,000 15,842,150
-----------------------------------------------------------------------------------------------------------------------
United Mexican States Bonds, 10.375%, 1/29/03 DEM 8,465,000 5,923,982
-----------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of):
Collateralized Par Bonds, Series W-A, 6.75%, 3/31/20 2,000,000 1,535,000
Front-Loaded Interest Reduction Bonds, Series A, 6.625%,3/31/07(4) 3,490,000 3,119,188
New Money Bonds, Series A, 6.625%, 12/18/05(4) 2,000,000 1,784,375
New Money Bonds, Series B, 6.50%, 12/18/05(4) 500,000 446,094
------------
Total Foreign Government Obligations (Cost $127,246,484) 130,343,544
==============================================================================================================================
LOAN PARTICIPATIONS--1.3%
- ------------------------------------------------------------------------------------------------------------------------------
Algeria (Republic of) Reprofiled Debt Loan Participation,
Tranche A, 6.625%, 9/4/06(4)(5) 7,671,232 5,926,027
-----------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989--1990 Integrated Loan Facility Bonds,
6.563%, 7/1/01(4)(5) 714,399 682,252
-----------------------------------------------------------------------------------------------------------------------
GPA Investment BV, 6.40% Nts., 11/19/98(5) 2,000,000 1,925,000
-----------------------------------------------------------------------------------------------------------------------
Jamaica (Government of) 1990 Refinancing Agreement Nts.,
Tranche B, 6.312%, 11/15/04(4)(5) 450,000 387,000
-----------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement, Tranche A,
6.437%, 1/1/09(7) 10,215,000 8,328,417
-----------------------------------------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation Agreement:
Tranche A, 1.772%, 9/30/00(4)(5) JPY 28,435,778 227,839
Tranche B, 1.772%, 9/30/00(4)(5) JPY 306,564,221 2,456,317
------------
Total Loan Participations (Cost $18,262,359) 19,932,852
==============================================================================================================================
MUNICIPAL BONDS AND NOTES--1.0%
- ------------------------------------------------------------------------------------------------------------------------------
San Joaquin Hills, California Transportation Corridor Agency Toll Road
Capital Appreciation Revenue Bonds, Jr. Lien, Zero Coupon:
8.75%, 1/1/12(6) 15,000,000 5,565,600
9%, 1/1/28(6)(11) 74,000,000 8,874,080
------------
Total Municipal Bonds and Notes (Cost $8,983,995) 14,439,680
==============================================================================================================================
CORPORATE BONDS AND NOTES--76.5%
- ------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY--10.5%
- ------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.4%
Arcadian Partner LP, 10.75% Sr. Nts., Series B, 5/1/05 3,120,000 3,478,800
-----------------------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc., 10.25% Gtd. Sr. Sec. Disc. Nts., 7/15/01 580,000 608,275
-----------------------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 9% Sr. Nts., 10/15/03(3) 5,100,000 5,202,000
</TABLE>
7 Oppenheimer High Yield Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS
(CONTINUED)
NL Industries, Inc.:
0%/13% Sr. Sec. Disc. Nts., 10/15/05(10) $ 4,300,000 $ 3,730,250
11.75% Sr. Sec. Nts., 10/15/03 1,040,000 1,105,000
-----------------------------------------------------------------------------------------------------------------------
Terra Industries, Inc., 10.50% Sr. Nts., Series B, 6/15/05 6,470,000 7,084,650
------------
21,208,975
- ------------------------------------------------------------------------------------------------------------------------------
CONTAINERS--1.7%
United States Can Co., 13.50% Sr. Sub. Nts., 1/15/02 20,900,000 21,736,000
-----------------------------------------------------------------------------------------------------------------------
U.S. Can Corp., 10.125% Sr. Sub. Nts., 10/15/06(3) 4,275,000 4,510,125
------------
26,246,125
- ------------------------------------------------------------------------------------------------------------------------------
METALS/MINING--1.3%
Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 7,271,000 7,979,922
-----------------------------------------------------------------------------------------------------------------------
Royal Oak Mines, Inc., 11% Sr. Sub. Nts., 8/15/06 11,425,000 11,653,500
------------
19,633,422
- ------------------------------------------------------------------------------------------------------------------------------
PAPER--3.3%
APP International Finance Co. BV, 11.75% Gtd. Sec. Nts., 10/1/05 1,500,000 1,606,875
-----------------------------------------------------------------------------------------------------------------------
Asia Pulp & Paper International Finance Co.,
Zero Coupon Asian Currency Nts., 16.55%, 5/15/97(6) IDR 1,500,000,000 599,724
-----------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp., 9.25% Sr. Sub. Nts., 9/15/08 4,235,000 4,383,225
-----------------------------------------------------------------------------------------------------------------------
Container Corp., 9.75% Gtd. Sr. Nts., 4/1/03 1,500,000 1,586,250
-----------------------------------------------------------------------------------------------------------------------
Florida Coast Paper Co. LLC, 12.75% First Mtg. Nts., 6/1/03 480,000 522,000
-----------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs., 5/15/05 3,625,000 4,014,687
-----------------------------------------------------------------------------------------------------------------------
Indah Kiat International Finance Co. BV, 12.50% Sr. Sec. Gtd. Nts.,
Series C, 6/15/06 6,610,000 7,312,312
-----------------------------------------------------------------------------------------------------------------------
QUNO Corp., 9.125% Sr. Nts., 5/15/05 5,300,000 5,485,500
-----------------------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 10.625% Second Priority Sr. Sec. Nts., 4/15/05 4,550,000 4,777,500
-----------------------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.25% First Priority Sr. Sec. Nts., 2/1/02 3,890,000 3,958,075
-----------------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.25% Sr. Nts., 4/1/06 5,170,000 5,118,300
-----------------------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 4,775,000 5,180,875
-----------------------------------------------------------------------------------------------------------------------
Stone Container Corp., 10.75% Sr. Sub. Nts., 6/15/97 1,000,000 1,017,500
-----------------------------------------------------------------------------------------------------------------------
Tembec Finance Corp., 9.875% Gtd. Sr. Nts., 9/30/05 3,925,000 3,718,937
------------
49,281,760
- ------------------------------------------------------------------------------------------------------------------------------
STEEL--2.8%
AK Steel Corp., 9.125% Sr. Nts., 12/15/06(3) 10,300,000 10,583,250
-----------------------------------------------------------------------------------------------------------------------
Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01(7)(12) 24,507,000 24,690,802
-----------------------------------------------------------------------------------------------------------------------
Bar Technologies, Inc., 13.50% Sr. Sec. Nts., 4/1/01 3,650,000 3,723,000
-----------------------------------------------------------------------------------------------------------------------
Gulf States Steel, Inc. (Alabama), 13.50% First Mtg. Nts., Series B, 4/15/03 1,610,000 1,529,500
-----------------------------------------------------------------------------------------------------------------------
Republic Engineered Steels, Inc., 9.875% First Mtg. Nts., 12/15/01 1,490,000 1,404,325
------------
41,930,877
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--15.9%
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--4.2%
Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 11.55%, 5/27/98(6) 17,370,000 14,569,087
-----------------------------------------------------------------------------------------------------------------------
E & S Holdings Corp., 10.375% Sr. Sub. Nts., 10/1/06(3) 8,120,000 8,536,150
-----------------------------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 12,000,000 13,140,000
-----------------------------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc.,
0%/11.50% Sr. Sec. Disc. Nts., 8/15/03(10) 17,100,000 11,157,750
</TABLE>
8 Oppenheimer High Yield Fund
<PAGE> 9
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER PRODUCTS
(CONTINUED)
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05 $11,275,000 $ 12,458,875
-----------------------------------------------------------------------------------------------------------------------
TAG Heuer International SA, 12% Sr. Sub. Nts., 12/15/05 2,695,000 3,112,725
-----------
62,974,587
- ------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO--1.6%
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 11,515,000 11,860,450
-----------------------------------------------------------------------------------------------------------------------
Foodbrands America, Inc., 10.75% Sr. Sub. Nts., 5/15/06 2,900,000 3,088,500
-----------------------------------------------------------------------------------------------------------------------
International Home Foods, Inc., 10.375% Sr. Sub. Nts., 11/1/06(3) 6,845,000 7,153,025
-----------
24,191,975
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE--3.0%
Genesis Health Ventures, Inc., 9.25% Sr. Sub. Nts., 10/1/06(3) 11,340,000 11,708,550
-----------------------------------------------------------------------------------------------------------------------
Integrated Health Services, Inc., 10.25% Sr. Sub. Nts., 10/31/06(3) 4,380,000 4,588,050
-----------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 15,580,000 17,371,700
-----------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 10.125% Sr. Sub. Nts., 3/1/05 10,250,000 11,377,500
-----------
45,045,800
- ------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING--3.3%
Arizona Charlie's, Inc., 12% First Mtg. Nts., Series A, 11/15/00(5) 2,750,000 1,925,000
-----------------------------------------------------------------------------------------------------------------------
California Hotel Finance Corp., 11% Sr. Sub. Nts., 12/1/02 1,700,000 1,772,250
-----------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., Promissory Nts., 8/1/95(13) 22,500 --
-----------------------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% First Mtg. Nts., Series A, 11/15/00(5)(13) 1,000,000 750,000
-----------------------------------------------------------------------------------------------------------------------
Empress River Casino Finance Corp., 10.75% Sr. Gtd. Nts., 4/1/02(5) 8,070,000 8,735,775
-----------------------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 1,725,000 1,750,875
-----------------------------------------------------------------------------------------------------------------------
Griffin Gaming & Entertainment, Inc., 8.015% First Mtg.
Non-Recourse Pass-Through Nts., 6/30/00(4) 6,785,000 6,513,600
-----------------------------------------------------------------------------------------------------------------------
HMC Acquisition Properties, Inc., 9% Sr. Nts., Series B, 12/15/07 6,390,000 6,517,800
-----------------------------------------------------------------------------------------------------------------------
HMH Properties, Inc., 9.50% Sr. Sec. Nts., Series B, 5/15/05 6,030,000 6,323,962
-----------------------------------------------------------------------------------------------------------------------
Majestic Star Casino LLC (The), 12.75% Sr. Sec. Nts., 5/15/03 1,570,000 1,695,600
-----------------------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts., Series B, 11/15/02 4,475,000 5,929,375
-----------------------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 1,900,000 2,004,500
-----------------------------------------------------------------------------------------------------------------------
Showboat Marina Casino Partnership/Showboat Marina Finance Corp.,
13.50% First Mtg. Nts., Series B, 3/15/03 5,200,000 5,746,000
-----------------------------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 13.875% Sub. Nts., 11/15/05(14) 32 29
-----------
49,664,766
- ------------------------------------------------------------------------------------------------------------------------------
LEISURE--0.3%
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02(5) 5,019,737 5,239,350
- ------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS--0.9%
Ameriking, Inc., 10.75% Sr. Nts., 12/1/06 2,600,000 2,704,000
-----------------------------------------------------------------------------------------------------------------------
Carrols Corp., 11.50% Sr. Nts., 8/15/03 6,840,000 7,267,500
-----------------------------------------------------------------------------------------------------------------------
Foodmaker, Inc.:
9.25% Sr. Nts., 3/1/99 3,475,000 3,544,500
9.75% Sr. Sub. Nts., 6/1/02 710,000 725,975
-----------
14,241,975
</TABLE>
9 Oppenheimer High Yield Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TEXTILE/APPAREL--2.6%
Consoltex Group, Inc., 11% Sr. Sub. Gtd. Nts., Series B, 10/1/03 $ 5,600,000 $ 5,628,000
-----------------------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/98(5)(13)(17) 5,955,189 37,220
-----------------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 13% Gtd. Nts., 6/15/01 5,490,000 6,176,250
-----------------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 10,000,000 11,075,000
-----------------------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 2,800,000 2,870,000
-----------------------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05 10,255,000 10,613,925
-----------------------------------------------------------------------------------------------------------------------
William Carter Co., 10.375% Sr. Sub. Nts., 12/1/06(3) 2,375,000 2,470,000
------------
38,870,395
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY--10.0%
- ------------------------------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp.:
10.50% Sr. Nts., 6/1/02 650,000 708,500
9.125% Sr. Nts., 4/15/06 9,075,000 9,460,687
-----------------------------------------------------------------------------------------------------------------------
DeepTech International, Inc., 12% Sr. Sec. Nts., 12/15/00 10,888,000 11,704,600
-----------------------------------------------------------------------------------------------------------------------
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., Series A, 8/1/01 9,700,000 10,269,875
-----------------------------------------------------------------------------------------------------------------------
Ferrellgas Partners LP, 9.375% Sr. Sec. Nts., Series B, 6/15/06 2,310,000 2,353,312
-----------------------------------------------------------------------------------------------------------------------
Forcenergy, Inc., 9.50% Sr. Sub. Nts., 11/1/06 7,305,000 7,661,119
-----------------------------------------------------------------------------------------------------------------------
J. Ray McDermott SA, 9.375% Sr. Sub. Bonds, 7/15/06 8,560,000 9,009,400
-----------------------------------------------------------------------------------------------------------------------
Mariner Energy, Inc., 10.50% Sr. Sub. Nts., 8/1/06(3) 10,060,000 10,713,900
-----------------------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 5,700,000 6,042,000
-----------------------------------------------------------------------------------------------------------------------
Mesa Operating Co.:
0%/11.625% Gtd. Sr. Sub. Disc. Nts., 7/1/06(10) 23,000,000 15,985,000
10.625% Gtd. Sr. Sub. Nts., 7/1/06 3,700,000 4,023,750
-----------------------------------------------------------------------------------------------------------------------
National Energy Group, Inc., 10.75% Sr. Nts., 11/1/06(3) 11,730,000 12,375,150
-----------------------------------------------------------------------------------------------------------------------
Nuevo Energy Co., 12.50% Sr. Sub. Nts., 6/15/02 7,240,000 7,801,100
-----------------------------------------------------------------------------------------------------------------------
Parker Drilling Corp., 9.75% Gtd. Sr. Nts., 11/15/06(3) 1,350,000 1,427,625
-----------------------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc.:
10.125% Sub. Nts., 4/1/03 900,000 922,500
12.25% Sub. Debs., 2/1/05 4,709,000 5,285,852
9.375% Sub. Debs., 2/1/06 5,630,000 5,489,250
-----------------------------------------------------------------------------------------------------------------------
TransTexas Gas Corp., 11.50% Sr. Sec. Gtd. Nts., 6/15/02 21,005,000 22,816,681
-----------------------------------------------------------------------------------------------------------------------
Triton Energy Corp., Zero Coupon Sr. Sub. Disc. Nts., 9.14%, 11/1/97(6) 6,475,000 6,135,062
------------
150,185,363
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--4.2%
- ------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS--1.2%
Banco de Colombia, 5.20% Cv. Jr. Sub. Unsec. Nts., 2/1/99(5) 1,650,000 1,534,500
-----------------------------------------------------------------------------------------------------------------------
Bank of America Malaysia, Zero Coupon Nts., 7.12%, 4/30/97(6)(9) MYR 3,900,000 1,510,116
-----------------------------------------------------------------------------------------------------------------------
Citibank Malaysia Banker's Acceptance, Zero Coupon Negotiable CD:
7.16%, 3/24/97(6) MYR 3,900,000 1,520,664
7.17%, 4/17/97(6) MYR 2,700,000 1,047,781
7.23%, 5/2/97(6) MYR 2,000,000 773,964
7.17%, 5/5/97(6) MYR 1,800,000 696,160
-----------------------------------------------------------------------------------------------------------------------
First Nationwide Escrow Corp., 10.625% Sr. Sub. Nts., 10/1/03(3) 5,250,000 5,696,250
-----------------------------------------------------------------------------------------------------------------------
PT Hutama Karya, Zero Coupon Medium-Term Nts.:
15.38%, 11/19/97(6) IDR 10,000,000,000 3,706,562
17.67%, 3/26/97(6) IDR 4,000,000,000 1,636,101
------------
18,122,098
</TABLE>
10 Oppenheimer High Yield Fund
<PAGE> 11
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL--1.6%
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02(5) $ 1,624,837 $ 1,795,445
-----------------------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 6,590,000 6,738,275
-----------------------------------------------------------------------------------------------------------------------
GPA Holland BV, 8.94% Medium-Term Nts., Series C, 2/16/99 7,300,000 7,373,000
-----------------------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03(5)(13) 8,802,000 1,980,450
-----------------------------------------------------------------------------------------------------------------------
Snap Ltd., 11.50% Sec. Bonds, 1/29/09 DEM 6,770,000 4,447,852
-----------------------------------------------------------------------------------------------------------------------
Wilshire Financial Services Group, Inc., 13% Nts., 1/1/04 1,500,000 1,515,000
------------
23,850,022
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.4%
American Life Holding Co., 11.25% Sr. Sub. Nts., 9/15/04 6,980,000 8,027,000
-----------------------------------------------------------------------------------------------------------------------
Reliance Group Holdings, Inc., 9.75% Sr. Sub. Debs., 11/15/03 8,250,000 8,662,500
-----------------------------------------------------------------------------------------------------------------------
Veritas Holdings, Inc., 9.625% Sr. Nts., 12/15/03(3) 4,730,000 4,800,950
------------
21,490,450
- ------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED--1.9%
- ------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--0.8%
Building Materials Corp. of America, 8.625% Sr. Nts., 12/15/06(3) 3,750,000 3,740,625
-----------------------------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 8,880,000 9,057,600
------------
12,798,225
- ------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/
REAL ESTATE--1.1%
First Place Tower, Inc.:
9.22% First Mtg. Bonds, 12/15/05 CAD 1,464,450 1,193,706
Units (each unit consists of one $10 principal amount of 8.50% cv. sub. debs.,
12/15/15 and 40 common shares)(15) CAD 880,730 1,317,253
-----------------------------------------------------------------------------------------------------------------------
NVR, Inc., 11% Sr. Gtd. Nts., 4/15/03 3,100,000 3,255,000
-----------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. Nts., Series B, 4/1/02 650,000 702,000
-----------------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(3) 8,900,000 7,459,313
-----------------------------------------------------------------------------------------------------------------------
U.S. Home Corp., 9.75% Sr. Nts., 6/15/03 2,440,000 2,549,800
------------
16,477,072
- ------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--4.0%
- ------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/
COMPUTERS--1.5%
Businessland, Inc., 5.50% Sub. Debs., 3/1/07(5) 3,850,000 2,464,000
-----------------------------------------------------------------------------------------------------------------------
Newport News Shipbuilding, Inc., 8.625% Sr. Nts., 12/1/06(3) 1,400,000 1,438,500
-----------------------------------------------------------------------------------------------------------------------
Tracor, Inc., 10.875% Sr. Sub. Nts., 8/15/01 10,730,000 11,454,275
-----------------------------------------------------------------------------------------------------------------------
UNC, Inc., 11% Sr. Sub. Nts., 6/1/06 2,000,000 2,150,000
-----------------------------------------------------------------------------------------------------------------------
Unisys Corp., 11.75% Sr. Nts., 10/15/04 4,300,000 4,606,375
------------
22,113,150
- ------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--2.2%
Aftermarket Technology Corp.:
12% Sr. Sub. Nts., Series B, 8/1/04 3,530,000 3,935,950
12% Sr. Sub. Nts., Series D, 8/1/04 970,000 1,081,550
-----------------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Gtd. Sr. Sub. Nts., 4/15/06 6,750,000 7,382,813
-----------------------------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp.:
11.25% Sr. Nts., 10/1/02 1,325,000 1,417,750
9.50% Gtd. Sr. Sec. Nts., 6/1/00 800,000 824,000
-----------------------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 9,455,000 10,305,950
-----------------------------------------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 7,415,000 7,934,050
------------
32,882,063
</TABLE>
11 Oppenheimer High Yield Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL GOODS--0.3%
Mettler Toledo, Inc., 9.75% Gtd. Sr. Sub. Nts., 10/1/06 $ 4,035,000 $ 4,256,925
- ------------------------------------------------------------------------------------------------------------------------------
MEDIA--10.3%
- ------------------------------------------------------------------------------------------------------------------------------
BROADCASTING--1.6%
Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05 915,000 928,725
-----------------------------------------------------------------------------------------------------------------------
Granite Broadcasting Corp., 9.375% Sr. Sub. Nts., Series A, 12/1/05 3,700,000 3,598,250
-----------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 11.625% Sr. Sub. Nts., 10/1/02 8,850,000 9,292,500
-----------------------------------------------------------------------------------------------------------------------
SFX Broadcasting, Inc., 10.75% Sr. Sub. Nts., Series B, 5/15/06 1,300,000 1,381,250
-----------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 4,870,000 4,985,663
-----------------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 9% Sr. Sub. Nts., Series B, 1/15/06 4,500,000 4,398,750
-----------
24,585,138
- ------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION--6.3%
American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04(10) 10,238,688 4,249,056
-----------------------------------------------------------------------------------------------------------------------
Bell Cablemedia plc:
0%/11.875% Sr. Disc. Nts., 9/15/05(10) 11,470,000 9,319,375
0%/11.95% Sr. Disc. Nts., 7/15/04(10) 3,400,000 2,992,000
-----------------------------------------------------------------------------------------------------------------------
Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 1,600,000 1,698,952
-----------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp.:
10.75% Sr. Sub. Debs., 4/1/04 7,800,000 8,131,500
9.875% Sr. Sub. Debs., 2/15/13 600,000 595,500
9.875% Sr. Sub. Nts., 5/15/06 2,200,000 2,268,750
-----------------------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(10) 9,380,000 6,730,150
-----------------------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc, 0%/11.75% Sr. Disc. Nts., 12/15/05(10) 14,465,000 10,360,556
-----------------------------------------------------------------------------------------------------------------------
EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04(10) 1,855,000 1,544,288
-----------------------------------------------------------------------------------------------------------------------
International CableTel, Inc.:
0%/10.875% Sr. Deferred Coupon Nts., 10/15/03(10) 640,000 545,600
0%/11.50% Sr. Deferred Coupon Nts., Series B, 2/1/06(10) 3,950,000 2,705,750
0%/12.75% Sr. Deferred Coupon Nts., 4/15/05(10) 14,595,000 10,982,738
-----------------------------------------------------------------------------------------------------------------------
Marcus Cable Co. LP/Marcus Cable Capital Corp.,
0%/14.25% Sr. Disc. Nts., 12/15/05(10) 960,000 693,600
-----------------------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 11% Sr. Sub. Gtd. Debs., 12/1/15 2,075,000 2,235,813
-----------------------------------------------------------------------------------------------------------------------
TeleWest plc, 0%/11% Sr. Disc. Debs., 10/1/07(10) 23,460,000 16,422,000
-----------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 5,000,000 5,410,125
-----------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc.:
0%/14% Sr. Disc. Nts., Series B, 5/15/06(10) 3,006,000 1,585,665
Zero Coupon Sr. Sec. Disc. Nts., Series B, 12.58%, 11/15/99(6) 5,190,000 3,710,850
Zero Coupon Sr. Sec. Disc. Nts., 12.58%, 11/15/99(6) 950,000 679,250
-----------------------------------------------------------------------------------------------------------------------
Videotron Holdings plc, 0%/11% Sr. Disc. Nts., 8/15/05(10) 2,500,000 2,043,750
-----------
94,905,268
- ------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA--2.2%
Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03 6,950,000 7,401,750
-----------------------------------------------------------------------------------------------------------------------
Katz Media Corp., 10.50% Sr. Sub. Nts., 1/15/07(3) 2,800,000 2,866,500
-----------------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 2,175,000 2,262,000
-----------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 10.125% Sr. Gtd. Debs., 10/15/12 2,000,000 2,306,924
-----------------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(10) 10,670,000 9,949,775
9.75% Sr. Sec. Nts., 8/1/00 3,025,000 3,221,625
-----------------------------------------------------------------------------------------------------------------------
Universal Outdoor, Inc.:
9.75% Sr. Sub. Nts., 10/15/06 2,450,000 2,535,750
9.75% Sr. Sub. Nts., 10/15/06(3) 2,220,000 2,292,150
-----------
32,836,474
</TABLE>
12 Oppenheimer High Yield Fund
<PAGE> 13
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PUBLISHING/PRINTING--0.2%
Bell & Howell Co. (New), 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05(10) $ 3,130,000 $ 2,292,725
- ------------------------------------------------------------------------------------------------------------------------------
OTHER--2.2%
- ------------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL--0.5%
Allied Waste North America, Inc., 10.25% Sr. Sub. Nts., 12/1/06(3) 6,725,000 7,086,469
-----------------------------------------------------------------------------------------------------------------------
Mid-American Waste Systems, Inc., 12.25% Sr. Sub. Nts., 2/15/03(5)(13) 800,000 324,000
-----------
7,410,469
- ------------------------------------------------------------------------------------------------------------------------------
SERVICES--1.7%
Borg-Warner Security Corp., 9.125% Sr. Sub. Nts., 5/1/03 1,550,000 1,555,813
-----------------------------------------------------------------------------------------------------------------------
Coinstar, Inc., Units (each unit consists of $1,000 principal
amount of 0%/13% sr. sub. disc. nts., 10/1/06 and one warrant to
purchase seven ordinary shares)(5)(10)(15) 5,475,000 3,843,450
-----------------------------------------------------------------------------------------------------------------------
Iron Mountain, Inc., 10.125% Sr. Sub. Nts., 10/1/06 4,350,000 4,632,750
-----------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc.:
0%/13.625% Sr. Disc. Nts., 6/30/05(10) 15,350,000 14,659,250
6.75% Cv. Gtd. Sr. Sub. Nts., 9/15/03 705,000 648,600
-----------
25,339,863
- ------------------------------------------------------------------------------------------------------------------------------
RETAIL--3.7%
- ------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING--1.3%
Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts., Series B, 9/1/03 11,100,000 11,488,500
-----------------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 4,970,000 5,218,500
-----------------------------------------------------------------------------------------------------------------------
United Stationers Supply Co., 12.75% Sr. Sub. Nts., 5/1/05 2,500,000 2,775,000
-----------
19,482,000
- ------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS--2.4%
Grand Union Co., 12% Sr. Nts., 9/1/04 12,811,000 13,643,715
-----------------------------------------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc., 11.50% Sr. Nts., 2/1/03 7,618,658 7,656,751
-----------------------------------------------------------------------------------------------------------------------
Ralph's Grocery Co.:
10.45% Sr. Nts., 6/15/04 3,125,000 3,335,938
10.45% Sr. Nts., 6/15/04 7,520,000 8,027,600
-----------------------------------------------------------------------------------------------------------------------
Smith's Food & Drug Centers, Inc., 11.25% Sr. Unsec. Sub. Nts., 5/15/07 2,800,000 3,108,000
-----------
35,772,004
- ------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.3%
- ------------------------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION--0.4%
Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02 6,000,000 6,690,000
- ------------------------------------------------------------------------------------------------------------------------------
RAILROADS--1.2%
Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr. Disc. Nts., Series B, 12/15/03(10) 21,515,000 17,319,575
- ------------------------------------------------------------------------------------------------------------------------------
SHIPPING--0.7%
Gearbulk Holding Ltd., 11.25% Sr. Nts., 12/1/04 9,150,000 10,019,250
- ------------------------------------------------------------------------------------------------------------------------------
UTILITIES--11.5%
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.7%
CalEnergy, Inc., 9.50% Sr. Nts., 9/15/06 3,450,000 3,579,375
-----------------------------------------------------------------------------------------------------------------------
California Energy, Inc., 0%/10.25% Sr. Disc. Nts., 1/15/04(10) 7,290,000 7,745,625
-----------------------------------------------------------------------------------------------------------------------
Calpine Corp., 10.50% Sr. Nts., 5/15/06 4,200,000 4,467,750
-----------------------------------------------------------------------------------------------------------------------
Centragas Natural Gas Transmission System, 10.65% Sr. Sec. Bonds, 12/1/10(3) 1,158,321 1,303,112
-----------------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Bonds, Series E, 5/1/11 5,700,000 6,127,500
-----------------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08(3) 2,586,206 2,702,586
-----------
25,925,948
</TABLE>
13 Oppenheimer High Yield Fund
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS--9.8%
American Communications Services, Inc.:
0%/12.75% Sr. Disc. Nts., 4/1/06(10) $ 5,850,000 $ 3,261,375
0%/13% Sr. Disc. Nts., 11/1/05(10) 2,575,000 1,532,125
-----------------------------------------------------------------------------------------------------------------------
Brooks Fiber Properties, Inc.:
0%/10.875% Sr. Disc. Nts., 3/1/06(10) 1,050,000 706,125
0%/11.875% Sr. Disc. Nts., 11/1/06(3)(10) 14,130,000 9,078,525
-----------------------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc., 0%/13% Sr. Disc. Nts., 6/15/05(5)(10) 2,000,000 1,390,000
-----------------------------------------------------------------------------------------------------------------------
Cellular Communications International, Inc.,
Zero Coupon Sr. Disc. Nts., 12.07%, 8/15/00(6) 18,765,000 13,088,588
-----------------------------------------------------------------------------------------------------------------------
Central Termica Guemes, 12% Bonds, 11/26/01(5) 1,300,000 1,319,500
-----------------------------------------------------------------------------------------------------------------------
Colt Telecom Group plc, Units (each unit consists of $1,000
principal amount of 0%/12% sr. disc. nts., 12/15/06
and one warrant to purchase 7.8 ordinary shares)(10)(15) 3,950,000 2,389,750
-----------------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA, 0%/13.125% Sr. Deferred Coupon Bonds, 11/15/03(10) 5,700,000 3,790,500
-----------------------------------------------------------------------------------------------------------------------
GST Telecommunications, Inc., 0%/13.875% Cv. Sr. Sub. Disc. Nts., 12/15/05(3)(10) 1,400,000 910,000
-----------------------------------------------------------------------------------------------------------------------
GST USA, Inc., 0%/13.875% Bonds, 12/15/05(10) 11,200,000 6,888,000
-----------------------------------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc., 0%/13% Sr. Disc. Nts., Series B, 4/15/03(10) 3,395,000 1,943,638
-----------------------------------------------------------------------------------------------------------------------
IntelCom Group (USA), Inc.:
0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06(10) 3,900,000 2,564,250
0%/13.50% Sr. Disc. Nts., 9/15/05(10) 12,540,000 8,966,100
-----------------------------------------------------------------------------------------------------------------------
Lenfest Communications, Inc., 8.375% Sr. Unsec. Nts., 11/1/05 7,650,000 7,430,063
-----------------------------------------------------------------------------------------------------------------------
Metrocall, Inc., 10.375% Sr. Sub. Nts., 10/1/07 4,540,000 3,881,700
-----------------------------------------------------------------------------------------------------------------------
MFS Communications Co., Inc.:
0%/8.875% Sr. Disc. Nts., 1/15/06(10) 1,035,000 767,194
0%/9.375% Sr. Disc. Nts., 1/15/04(10) 11,620,000 10,167,500
-----------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/9.75% Sr. Disc. Nts., 8/15/04(10) 4,750,000 3,259,688
-----------------------------------------------------------------------------------------------------------------------
Omnipoint Corp.:
11.625% Sr. Nts., 8/15/06 5,465,000 5,710,925
11.625% Sr. Nts., 8/15/06(3) 2,450,000 2,560,250
-----------------------------------------------------------------------------------------------------------------------
Petersburg Long Distance, Inc.:
9% Cv. Sub. Nts., 6/1/06(3) 630,000 664,650
Units (each unit consists of $1,000 principal amount of 0%/14% sr. disc. nts.,
6/1/04 and one warrant to purchase 34 ordinary shares)(3)(10)(15) 4,350,000 3,588,750
-----------------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp.:
0%/12.25% Sr. Sub. Disc. Nts., 10/1/03(10) 10,290,000 8,849,400
0%/14% Sr. Sub. Disc. Nts., 11/15/01(10) 3,373,000 3,297,108
10.75% Sr. Nts., 11/1/04(3) 4,200,000 4,378,500
-----------------------------------------------------------------------------------------------------------------------
Rogers Cantel, Inc., 9.375% Sr. Sec. Debs., 6/1/08 3,000,000 3,157,500
-----------------------------------------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp.,
0%/12.50% Sr. Disc. Nts., 8/15/06(10) 9,250,000 6,266,875
-----------------------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc.:
0%/11.125% Sr. Disc. Nts., 7/1/07(10) 13,710,000 9,459,900
9.875% Sr. Nts., 7/1/06 2,805,000 3,015,375
-----------------------------------------------------------------------------------------------------------------------
USA Mobile Communications, Inc. II, 14% Sr. Nts., 11/1/04 2,000,000 2,250,000
-----------------------------------------------------------------------------------------------------------------------
Western Wireless Corp.:
10.50% Sr. Sub. Nts., 2/1/07(3) 5,550,000 5,820,563
10.50% Sr. Sub. Nts., 6/1/06 5,435,000 5,713,544
--------------
148,067,961
--------------
Total Corporate Bonds and Notes (Cost $1,115,370,918) 1,151,352,050
</TABLE>
14 Oppenheimer High Yield Fund
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==============================================================================================================================
<S> <C> <C>
COMMON STOCKS--0.8%
- ------------------------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I.(5) 1,350 $ 1,356,750
-----------------------------------------------------------------------------------------------------------------------
Equitable Bag, Inc.(5)(16) 39,357 196,785
-----------------------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc.(16) 4,266 66,123
-----------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., Cl. A(16) 96,000 588,000
-----------------------------------------------------------------------------------------------------------------------
Grand Union Co.(16) 144,928 724,640
-----------------------------------------------------------------------------------------------------------------------
Great Bay Power Corp.(16) 46,533 389,714
-----------------------------------------------------------------------------------------------------------------------
Gulfstream Housing Corp.(16) 844,536 --
-----------------------------------------------------------------------------------------------------------------------
Hollywood Casino Corp., Cl. A(16) 90,836 340,635
-----------------------------------------------------------------------------------------------------------------------
ICG Communications, Inc.(16) 5,000 88,125
-----------------------------------------------------------------------------------------------------------------------
New World Communications Group, Inc.:
Cl. A(16) 18,225 460,181
Cl. B(16) 96,445 2,435,236
-----------------------------------------------------------------------------------------------------------------------
Omnipoint Corp.(5)(16) 200,000 3,657,500
-----------------------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.(5)(16)(17) 1,688,400 84,420
-----------------------------------------------------------------------------------------------------------------------
Pratt Hotel Corp.(16) 15,247 26,682
-----------------------------------------------------------------------------------------------------------------------
Resorts International, Inc.(16) 187,187 --
-----------------------------------------------------------------------------------------------------------------------
Sun International Hotels Ltd., B Shares(16) 24,447 892,316
-----------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc.(5)(16) 370,500 370,500
-----------------------------------------------------------------------------------------------------------------------
Walter Industries, Inc.(16) 544 7,684
-----------
Total Common Stocks (Cost $12,707,321) 11,685,291
==============================================================================================================================
PREFERRED STOCKS--3.0%
- ------------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8.50% Cum. Cv., Series I 176,000 3,608,000
-----------------------------------------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 32,040 3,556,440
-----------------------------------------------------------------------------------------------------------------------
Earthwatch, Inc., 12% Cv. Sr. Preferred Stock, Series C(5)(14) 390,000 3,900,000
-----------------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 11.40% Series A Preferred Stock(14) 15,721 1,760,752
-----------------------------------------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 97,300 11,165,175
-----------------------------------------------------------------------------------------------------------------------
Fresenius Medical Care Trust, 9% Preferred Securities 11,035,000 11,255,700
-----------------------------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exchangeable, Series B(5)(14) 16,845 1,705,632
-----------------------------------------------------------------------------------------------------------------------
Panamsat Corp., 12.75% Sr. Preferred Exchangeable(5)(14) 1,850 2,270,875
-----------------------------------------------------------------------------------------------------------------------
SDW Holdings Corp., 15% Cum. Sr. Exchangeable Preferred Stock(5) 61,880 2,165,800
-----------------------------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 29,400 1,014,300
-----------------------------------------------------------------------------------------------------------------------
Walden Residential Properties, Inc., Units (each unit consists of
1 share of perpetual 9.20% Sr. Preferred Stock and 1 warrant to
purchase .33 ordinary shares)(15) 114,400 2,882,880
-----------
Total Preferred Stocks (Cost $43,528,234) 45,285,554
</TABLE>
15 Oppenheimer High Yield Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
UNITS SEE NOTE 1
==============================================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.5%
- ------------------------------------------------------------------------------------------------------------------------------
American Communications Services, Inc. Wts., Exp. 11/05 2,575 $ 231,750
-----------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 40,000 70,000
-----------------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc.:
Excess Cash Flow Payment Certificates, Series AG-7A(5) 326,800 3,268
Litigation Trust(5) 1,045,990 10,460
-----------------------------------------------------------------------------------------------------------------------
Australis Media Ltd. Wts., Exp. 5/00(5) 825 7
-----------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00(5) 125,000 31,250
-----------------------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc. Wts., Exp. 6/05(3) 16,000 234,000
-----------------------------------------------------------------------------------------------------------------------
Cellular Communications International, Inc. Wts., Exp. 8/03(5) 12,305 246,100
-----------------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/03(5) 5,700 427,500
-----------------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.:
Cl. C Wts., Exp. 12/99 69,654 905,502
Cl. D Wts., Exp. 12/01 69,654 922,915
-----------------------------------------------------------------------------------------------------------------------
Furniture Brands International, Inc., Series 1 Wts., Exp. 8/99 32,716 229,012
-----------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 11/02 163,894 1,003,851
-----------------------------------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01(5) 3,395 67,900
-----------------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 6,000 --
-----------------------------------------------------------------------------------------------------------------------
IntelCom Group, Inc. Wts., Exp. 9/05 50,820 457,380
-----------------------------------------------------------------------------------------------------------------------
Jewel Recovery LP, Participation Units of Limited Partners' Interest 10,113 --
-----------------------------------------------------------------------------------------------------------------------
Omnipoint Corp. Wts., Exp. 11/00(5) 32,000 585,200
-----------------------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts.:
Exp. 11/03(5) 182,000 1,137,500
Exp. 6/05(5) 49,120 405,240
-----------------------------------------------------------------------------------------------------------------------
Republic Health Corp. Wts., Exp. 4/00 3,763 --
-----------------------------------------------------------------------------------------------------------------------
SDW Holdings Corp., Cl. B Wts., Exp. 12/06(5) 6,188 80,444
-----------------------------------------------------------------------------------------------------------------------
Trizec Corp. Wts., Exp. 7/99 16,277 69,471
-----------------------------------------------------------------------------------------------------------------------
Venezuela Government Wts., Exp. 4/20 10,000 --
------------
Total Rights, Warrants and Certificates (Cost $2,443,374) 7,118,750
<CAPTION>
FACE
AMOUNT(1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
STRUCTURED INSTRUMENTS--2.6%
- ------------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale, New York Branch,
6.28% Deutsche Mark Currency Protected Yield Curve CD, 7/25/97 $ 1,500,000 1,494,750
-----------------------------------------------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce, New York Branch:
13.50% Greek Drachma/Swiss Franc Linked Nts., 2/5/97 7,000,000 7,084,700
16.75% CD, 4/16/97 (indexed to the Federation GKO, Zero Coupon, 4/9/97)(5) 4,800,000 4,785,600
17% CD, 2/26/97 (indexed to the Federation GKO, Zero Coupon, 2/19/97)(5) 1,500,000 1,497,750
17.30% CD, 2/26/97 (indexed to the Federation GKO, Zero Coupon, 2/19/97)(5) 1,400,000 1,397,900
-----------------------------------------------------------------------------------------------------------------------
Deutsche Bank AG, New York Branch, Czech Koruna Linked Nts.,
Zero Coupon Debs., 12.55%, 2/3/97(6) CZK 41,250,000 1,499,642
-----------------------------------------------------------------------------------------------------------------------
ING (U.S.) Financial Holdings Corp.:
Zero Coupon Korean Won/U.S. Dollar Linked Nts., 10.87%,6/9/97(6) 1,500,000 1,394,700
Zero Coupon Nts., Linked to Greek Drachma/Swiss
Franc Exchange Rate, 14.44%, 12/10/97(6) 4,020,000 3,428,256
-----------------------------------------------------------------------------------------------------------------------
Internationale Nederlanden (U.S.) Capital Holdings Corp.,
Zero Coupon GKO Pass-Through Nts., 15.06%, 5/21/97(6) 3,000,000 2,819,100
</TABLE>
16 Oppenheimer High Yield Fund
<PAGE> 17
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
STRUCTURED INSTRUMENTS
(CONTINUED)
Lehman Brothers Holdings:
15% U.S. Dollar Nts. Linked to Czech Koruna/Swiss Franc, 12/21/98 $ 1,500,000 $ 1,498,800
Zero Coupon U.S. Dollar Nts. Linked to Czech Koruna/Swiss Franc,
15.41%, 12/29/97(6) 3,000,000 3,005,400
-----------------------------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked Nts.:
12.61%, 1/3/97 (indexed to the Brazilian National Treasury Nts.,
Zero Coupon, 1/2/97)(6) 1,500,000 1,499,400
12.89%, 1/3/97 (indexed to the Brazilian National Treasury Nts.,
Zero Coupon, 1/2/97)(6) 1,500,000 1,499,400
12.64%, 1/3/97 (indexed to the Brazilian National Treasury Nts.,
Zero Coupon, 1/2/97)(6) 1,600,000 1,599,360
-----------------------------------------------------------------------------------------------------------------------
Swiss Bank Corp., New York Branch, 6.05% CD, 6/20/97
(indexed to the closing Nikkei 225 Index on 1/23/97, 5 yr. & 3 mos.
Japanese Yen Swap rate & New Zealand Dollar) 4,300,000 4,388,150
-------------
Total Structured Instruments (Cost $38,879,467) 38,892,908
</TABLE>
<TABLE>
<CAPTION>
DATE STRIKE CONTRACTS
==============================================================================================================================
<S> <C> <C> <C> <C>
PUT OPTIONS PURCHASED--0.0%
- ------------------------------------------------------------------------------------------------------------------------------
Australian Dollar Put Opt. 1/97 1.28 AUD 4,330,000 5,846
-----------------------------------------------------------------------------------------------------------------------
Australian Dollar Put Opt. 2/97 1.282 AUD 4,340,000 11,501
-----------------------------------------------------------------------------------------------------------------------
Deutsche Mark Put Opt. 2/97 1.545 DEM 41,960,000 230,612
-----------------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni
del Tesoro Poliennali, 9.50%, 2/1/06 Put Opt. 7/97 99.96 ITL 5,532 3,873
-----------------------------------------------------------------------------------------------------------------------
Japanese Yen Put Opt. 3/97 115 JPY 1,112,300,000 153,497
-----------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Put Opt. 3/97 1.43 NZD 3,197,000 19,310
-----------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Put Opt. 3/97 1.44 NZD 167,500 610
-----------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Put Opt. 3/97 1.453 NZD 74,500 171
------------
Total Put Options Purchased (Cost $762,968) 425,420
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT(1)
==============================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--2.3%
- ------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 6.52%, dated 12/31/96,
to be repurchased at $34,812,605 on 1/2/97, collateralized by
U.S. Treasury Nts., 5.50%--7.50%, 7/15/99--8/15/05, with a value of
$35,597,893 (Cost $34,800,000) $34,800,000 34,800,000
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,442,444,379) 99.3% 1,495,578,883
- ------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.7 9,811,478
----------- --------------
NET ASSETS 100.0% $1,505,390,361
=========== ==============
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted in
the following currencies:
<TABLE>
<S> <C> <C>
ARP--Argentine Peso GBP--British Pound Sterling NOK--Norwegian Krone
AUD--Australian Dollar IDR--Indonesian Rupiah NZD--New Zealand Dollar
CAD--Canadian Dollar ITL--Italian Lira PTE--Portuguese Escudo
CZK--Czech Koruna JPY--Japanese Yen SEK--Swedish Krona
DEM--German Deutsche Mark MXP--Mexican Peso ZAR--South African Rand
DKK--Danish Krone MYR--Malaysian Ringgit
</TABLE>
2. Interest-Only Strips represent the right to receive the monthly
interest payments on an underlying pool of mortgage loans. These
securities typically decline in price as interest rates decline. Most
other fixed income securities increase in price when interest rates
decline. The principal amount of the underlying pool represents the
notional amount on which current interest is calculated. The price of
these securities is typically more sensitive to changes in prepayment
rates than traditional mortgage-backed securities (for example, GNMA
pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future
cash flows.
17 Oppenheimer High Yield Fund
<PAGE> 18
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid under guidelines
established by the Board of Trustees. These securities amount to
$151,019,580 or 10.03% of the Fund's net assets, at December 31, 1996.
4. Represents the current interest rate for a variable rate security.
5. Identifies issues considered to be illiquid--See Note 8 of Notes to
Financial Statements.
6. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
7. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
CONTRACTS/FACE EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Australian Dollar Call Option 3,524,620 1/8/97 1.229 AUD $ 22,734 $ 352
-----------------------------------------------------------------------------------------------------------------------
Banco Hipotecario Nacional
(Argentina) Medium-Term Nts.,
10.625%, 8/7/06 Call Option 3,000,000 8/7/00 100.00% 27,600 90,000
-----------------------------------------------------------------------------------------------------------------------
British Pound Sterling Call Option 2,180,000 1/30/97 1.632 GBP 49,094 174,182
-----------------------------------------------------------------------------------------------------------------------
British Pound Sterling Call Option 3,900,000 3/17/97 1.69 GBP 71,760 130,026
-----------------------------------------------------------------------------------------------------------------------
British Pound Sterling Call Option 1,425,000 3/25/97 1.71 GBP 27,830 44,318
-----------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan
Participation Agreement, Tranche A,
6.437%, 1/1/09 Call Option 10,215,000 1/17/97 79.875% 111,344 306,450
-----------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 3,197,000 3/13/97 1.412 NZD 21,100 18,766
------------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 167,500 3/6/97 1.419 NZD 1,080 1,208
-----------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 74,500 3/13/97 1.428 NZEE 521 706
-------- --------
$333,063 $766,008
======== ========
</TABLE>
8. Represents the current interest rate for an increasing rate security.
9. When-issued security to be delivered and settled after December 31,
1996.
10. Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
11. Securities with an aggregate market value of $8,874,080 are held in
collateralized accounts to cover initial margin requirements on open
futures sales contracts. See Note 6 of Notes to Financial
Statements.
12. A sufficient amount of securities has been designated to cover
outstanding forward foreign currency exchange contracts. See Note
5 of Notes to Financial Statements.
13. Non-income producing--issuer is in default of interest payment.
14. Interest or dividend is paid in kind.
15. 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.
16. Non-income producing security.
17. 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, 1996. The a aggregate fair value of all
securities of affiliated companies as of December 31, 1996 amounted
to $121,640. Transactions during the period in which the issuer was
an affiliate are as follows:
<TABLE>
<CAPTION>
BALANCE JUNE 30, 1996 GROSS ADDITIONS GROSS REDUCTIONS BALANCE DECEMBER 31, 1996
---------------------- -------------------- ------------------- -------------------------
STOCKS SHARES/FACE COST SHARES/FACE COST SHARES/FACE COST SHARES/FACE COST
-------------------------------------------------------------------------------------------------------------------------------
<S> <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>
See accompanying Notes to Financial Statements.
18 Oppenheimer High Yield Fund
<PAGE> 19
STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 (Unaudited)
<TABLE>
================================================================================================================================
<S> <C>
ASSETS
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,436,667,575) $1,495,457,243
Affiliated companies (cost $5,776,804) 121,640
-------------------------------------------------------------------------------------------------------------------------
Cash 1,469,886
-------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 256,798
-------------------------------------------------------------------------------------------------------------------------
Receivables:
Interest, dividends and principal paydowns 25,295,517
Investments sold 6,029,966
Shares of beneficial interest sold 2,056,175
Daily variation on futures contracts--Note 6 25,000
-------------------------------------------------------------------------------------------------------------------------
Other 187,594
--------------
Total assets 1,530,899,819
================================================================================================================================
LIABILITIES
Unrealized depreciation on forward foreign currency exchange contracts--Note 5 4,261
-------------------------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $333,063)--
see accompanying statement--Note 7 766,008
-------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $3,185,190 purchased on a when-issued basis)--Note 1 13,885,942
Dividends 5,858,507
Shares of beneficial interest redeemed 3,601,833
Distribution and service plan fees 800,089
Closed forward foreign currency exchange contracts 254,591
Transfer and shareholder servicing agent fees 27,145
Trustees' fees 4,325
Other 306,757
--------------
Total liabilities 25,509,458
================================================================================================================================
NET ASSETS $1,505,390,361
==============
================================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $1,651,111,508
-------------------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (893,996)
-------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (197,738,136)
-------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 52,910,985
--------------
Net assets $1,505,390,361
==============
================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,148,050,509
and 82,102,650 shares of beneficial interest outstanding) $13.98
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $14.68
-------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $340,952,365 and 24,548,688 shares of beneficial interest outstanding) $13.89
-------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $16,387,487 and 1,173,109 shares of beneficial interest outstanding) $13.97
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer High Yield Fund
<PAGE> 20
STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1996 (Unaudited)
<TABLE>
================================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $36,209) $ 73,502,798
-------------------------------------------------------------------------------------------------------------------------
Dividends 1,106,173
------------
Total income 74,608,971
================================================================================================================================
EXPENSES
Management fees--Note 4 4,531,569
-------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,152,662
Class B 1,548,032
Class C 58,690
-------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 740,355
-------------------------------------------------------------------------------------------------------------------------
Shareholder reports 248,452
-------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 51,370
-------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 36,462
-------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 32,795
-------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 72
Class B 17,159
Class C 2,624
-------------------------------------------------------------------------------------------------------------------------
Insurance expenses 5,849
-------------------------------------------------------------------------------------------------------------------------
Other 32,208
------------
Total expenses 8,458,299
================================================================================================================================
NET INVESTMENT INCOME 66,150,672
================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss) on:
Investments and options written (including premiums on options exercised) 10,011,303
Closing of futures contracts (1,260,636)
Closing and expiration of options written (745,726)
Foreign currency transactions 444,928
------------
Net realized gain 8,449,869
-------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 39,489,345
Translation of assets and liabilities denominated in foreign currencies (434,200)
------------
Net change 39,055,145
------------
Net realized and unrealized gain 47,505,014
================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $113,655,686
============
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer High Yield Fund
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1996 JUNE 30,
(UNAUDITED) 1996
================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 66,150,672 $ 125,626,377
-------------------------------------------------------------------------------------------------------------------------
Net realized gain 8,449,869 14,577,616
-------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 39,055,145 13,351,323
------------- --------------
Net increase in net assets resulting from operations 113,655,686 153,555,316
================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS
TO SHAREHOLDERS
Dividends from net investment income:
Class A (51,031,873) (103,496,917)
Class B (13,002,128) (20,649,798)
Class C (490,692) (185,655)
================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2:
Class A 25,873,488 (1,432,524)
Class B 50,700,851 82,693,557
Class C 8,334,900 7,649,000
================================================================================================================================
NET ASSETS
Total increase 134,040,232 118,132,979
-------------------------------------------------------------------------------------------------------------------------
Beginning of period 1,371,350,129 1,253,217,150
-------------- --------------
End of period (including overdistributed net investment income
of $893,996 and $2,519,975, respectively) $1,505,390,361 $1,371,350,129
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer High Yield Fund
<PAGE> 22
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, 1996 YEAR ENDED JUNE 30,
(UNAUDITED) 1996 1995 1994
==========================================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $13.51 $13.22 $13.63 $14.16
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .65 1.29 1.30 1.42
Net realized and unrealized gain (loss) .45 .27 (.40) (.54)
-------- -------- -------- --------
Total income from investment operations 1.10 1.56 .90 .88
- --------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.63) (1.27) (1.30) (1.41)
Tax return of capital distribution -- -- (.01) --
-------- -------- -------- --------
Total dividends and distributions
to shareholders (.63) (1.27) (1.31) (1.41)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.98 $13.51 $13.22 $13.63
======== ======== ======== ========
==========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 8.29% 12.25% 7.09% 6.27%
==========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $1,148 $1,084 $1,061 $1,049
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,116 $1,092 $1,006 $1,111
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 9.27%(4) 9.59% 9.81% 10.10%
Expenses 0.99%(4) 1.03% 1.03% 0.96%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 56.6% 104.9% 93.7% 96.7%
</TABLE>
1. For the period from November 1, 1995 (inception of offering) to
June 30, 1996.
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 (or inception of offering), 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> 23
<TABLE>
<CAPTION>
CLASS B CLASS C
- ------------------- ---------------------------------------------------------------------- ---------------------------
SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED
DECEMBER 31, 1996 YEAR ENDED JUNE 30, DECEMBER 31, 1996 JUNE 30,
1993 1992 (UNAUDITED) 1996 1995 1994 1993(2) (UNAUDITED) 1996(1)
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$13.76 $13.08 $13.43 $13.15 $13.57 $14.12 $13.87 $13.50 $13.30
- ----------------------------------------------------------------------------------------------------------------------------
1.60 1.79 .58 1.18 1.20 1.35 .23 .57 .77
.36 .68 .46 .27 (.42) (.60) .27 .47 .19
- -------- -------- -------- -------- -------- -------- -------- -------- --------
1.96 2.47 1.04 1.45 .78 .75 .50 1.04 .96
- ----------------------------------------------------------------------------------------------------------------------------
(1.56) (1.79) (.58) (1.17) (1.19) (1.30) (.25) (.57) (.76)
-- -- -- -- (.01) -- -- -- --
- -------- -------- -------- -------- -------- -------- -------- -------- --------
(1.56) (1.79) (.58) (1.17) (1.20) (1.30) (.25) (.57) (.76)
- ----------------------------------------------------------------------------------------------------------------------------
$14.16 $13.76 $13.89 $13.43 $13.15 $13.57 $14.12 $13.97 $13.50
======== ======== ======== ======== ======== ======== ======== ======== ========
============================================================================================================================
15.31% 20.06% 7.85% 11.40% 6.21% 5.31% 3.54% 7.86% 7.36%
============================================================================================================================
$1,119 $ 903 $341 $280 $192 $88 $10 $16 $8
- ----------------------------------------------------------------------------------------------------------------------------
$ 979 $ 768 $308 $236 $135 $52 $ 4 $12 $3
- ----------------------------------------------------------------------------------------------------------------------------
11.59% 13.15% 8.44%(4) 8.75% 8.95% 8.98% 10.84%(4) 11.92%(4) 8.41%(4)
0.97% 0.92% 1.79%(4) 1.84% 1.84% 1.88% 2.28%(4) 1.81%(4) 1.90%(4)
- ----------------------------------------------------------------------------------------------------------------------------
87.2% 64.0% 56.6% 104.9% 93.7% 96.7% 87.2% 56.6% 104.9%
</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, 1996 were $806,748,956 and $759,417,737,
respectively.
See accompanying Notes to Financial Statements.
23 Oppenheimer High Yield Fund
<PAGE> 24
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 adviser 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 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 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, 1996,
the Fund had entered into outstanding when-issued or forward commitments
of $3,185,190.
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, 1996, securities with an aggregate market value
of $3,091,670, representing 0.2% 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> 25
==============================================================================
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.
-----------------------------------------------------------------------
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. 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 periodically.
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> 26
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, 1996 YEAR ENDED JUNE 30, 1996(1)
------------------------------------ -----------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 9,363,273 $ 128,358,238 19,901,989 $ 267,392,441
Dividends reinvested 2,192,573 30,215,237 4,497,586 60,481,931
Redeemed (9,664,149) (132,699,987) (24,448,371) (329,306,896)
---------- ------------- ----------- -------------
Net increase (decrease) 1,891,697 $ 25,873,488 (48,796) $ (1,432,524)
========== ============= =========== =============
-------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 6,298,489 $ 85,909,292 11,155,284 $ 149,169,252
Dividends reinvested 453,522 6,213,799 730,103 9,766,261
Redeemed (3,038,922) (41,422,240) (5,689,226) (76,241,956)
---------- ------------- ----------- -------------
Net increase 3,713,089 $ 50,700,851 6,196,161 $ 82,693,557
========== ============= =========== =============
-------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 716,418 $ 9,843,093 870,562 $ 11,774,656
Dividends reinvested 23,050 318,179 8,861 120,139
Redeemed (132,684) (1,826,372) (313,098) (4,245,795)
---------- ------------- ----------- -------------
Net increase 606,784 $ 8,334,900 566,325 $ 7,649,000
========== ============= =========== =============
</TABLE>
1. For the year ended June 30, 1996 for Class A and Class B shares and
for the period from November 1, 1995 (inception of offering) to June 30,
1996 for Class C shares.
==============================================================================
3. UNREALIZED GAINS
AND LOSSES ON
INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments and
options written of $52,701,560 was composed of gross appreciation of
$81,477,652, and gross depreciation of $28,776,092.
==============================================================================
4. 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
0.75% on the first $200 million of average annual net assets with a
reduction of 0.03% on each $200 million thereafter to $800 million,
0.60% on the next $200 million and 0.50% on net assets in excess of $1
billion. The Manager has agreed to reimburse the Fund if aggregate
expenses (with specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
For the six months ended December 31, 1996, commissions (sales
charges paid by investors) on sales of Class A shares totaled
$1,252,117, of which $322,104 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 $2,130,175 and $81,058, respectively, of which $28,708
was paid to an affiliated broker/dealer for Class B shares. During the
six months ended December 31, 1996, OFDI received contingent deferred
sales charges of $446,044 and $4,744, respectively, upon redemption of
Class B and Class C 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.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not
exceed 0.25% of the average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse brokers, dealers, banks
and other financial institutions quarterly for providing personal
service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended December 31, 1996, OFDI paid
$18,125 to an affiliated broker/dealer as reimbursement for Class A
personal service and maintenance expenses.
26 Oppenheimer High Yield Fund
<PAGE> 27
==============================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
The Fund has adopted a reimbursement type Distribution and Service Plan
for Class B shares to reimburse OFDI for its services and costs in
distributing Class B shares and servicing accounts. Under the Plan, the
Fund pays OFDI an annual asset-based sales charge of 0.75% per year on
Class B shares. OFDI also receives a service fee of 0.25% per year to
reimburse dealers for providing personal services for accounts that hold
Class B shares. Both fees are computed on the average annual net assets
of Class B shares, determined as of the close of each regular business
day. During the six months ended December 31, 1996, OFDI paid $3,399 to
an affiliated broker/dealer as reimbursement for Class B personal
service and maintenance expenses and retained $1,288,645 as
reimbursement for Class B sales commissions and service fee advances, as
well as financing costs. If the Plan is terminated by the Fund, the
Board of Trustees may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain expenses it incurred before
the Plan was terminated. As of December 31, 1996, OFDI had incurred
unreimbursed expenses of $10,488,128 for Class B.
The Fund has adopted a compensation type Distribution and
Service Plan for Class C shares to compensate OFDI for its services
and costs in distributing Class C shares and servicing accounts. Under
the Plan, the Fund pays OFDI an annual asset-based sales charge of
0.75% per year on Class C shares. OFDI also receives a service fee of
0.25% per year to compensate dealers for providing personal services
for accounts that hold Class C shares. Both fees are computed on the
average annual net assets of Class C shares, determined as of the
close of each regular business day. During the six months ended
December 31, 1996, OFDI retained $54,675 as compensation for Class C
sales commissions and service fee advances, as well as financing
costs. If the Plan is terminated by the Fund, the Board of Trustees
may allow the Fund to continue payments of the asset-based sales
charge to OFDI for certain expenses it incurred before the Plan was
terminated. As of December 31, 1996, OFDI had incurred unreimbursed
expenses of $213,914 for Class C.
==============================================================================
5. 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, 1996, the Fund had outstanding forward
contracts to purchase and sell foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACTS TO PURCHASE EXPIRATION DATE AMOUNT (000S) DEC. 31, 1996 APPRECIATION DEPRECIATION
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Spanish Peseta (ESP) 10/20/97 894,537 ESP $6,878,102 $ 59,978 $ -
========== -------- ------
CONTRACTS TO SELL
------------------------------------------------------------------------------------------------------------
Swiss Franc (CHF) 10/20/97 8,600 CHF $6,625,565 $196,820 $4,261
========== -------- ------
$256,798 $4,261
======== ======
</TABLE>
==============================================================================
6. 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.
27 Oppenheimer High Yield Fund
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
==============================================================================
6. FUTURES CONTRACTS
(CONTINUED)
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, 1996, the Fund had outstanding futures contracts to
sell debt securities as follows:
<TABLE>
<CAPTION>
NUMBER OF VALUATION AS OF UNREALIZED
CONTRACTS TO SELL EXPIRATION DATE FUTURES CONTRACTS DEC. 31, 1996 DEPRECIATION
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Notes 3/97 20 $2,252,500 $13,750
</TABLE>
==============================================================================
7. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and
covered call options on portfolio securities in order to produce
incremental earnings or protect against changes in the value of
portfolio securities.
The Fund generally purchases put options
or writes covered call options to hedge against adverse movements in
the value of portfolio holdings. When an option is written, the Fund
receives a premium and becomes obligated to sell or purchase the
underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the
last sale price on the principal exchange on which the option is traded
and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss upon the expiration or closing of the option
transaction. When an option is exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option, or the
cost of the security for a purchased put or call option is adjusted by
the amount of premium received or paid.
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, 1996 was
as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
------------------------------- -------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
OPTIONS PREMIUMS OPTIONS PREMIUMS
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at June 30, 1996 9,183,500 $ 185,550 -- --
- ---------------------------------------------------------------------------------------------------------------
Options written 56,515,015 718,339 1,504,728 $181,065
- ---------------------------------------------------------------------------------------------------------------
Options closed or expired (42,530,130) (435,699) (1,504,728) (181,065)
- ---------------------------------------------------------------------------------------------------------------
Options exercised (8,686,550) (135,127) -- --
----------- ---------- ---------- --------
Options outstanding at December 31, 1996 14,481,835 $ 333,063 -- $ --
=========== ========== ========== ========
</TABLE>
28 Oppenheimer High Yield Fund
<PAGE> 29
==============================================================================
8. ILLIQUID AND
RESTRICTED SECURITIES
At December 31, 1996, investments in securities included issues that
are illiquid or restricted. Restricted 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. A security may be considered illiquid if it
lacks a readily available market or if its valuation has not changed
for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
from time to time) in illiquid and restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limit. The aggregate value of
illiquid or restricted securities subject to this limitation at
December 31, 1996 was $76,591,556, which represents 5.09% of the Fund's
net assets. Information concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION PER
UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT DEC. 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------
BONDS
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Charlie's, Inc., 12% First Mtg. Nts., Series A, 11/15/00 11/18/93 100.00% 70.00%
- ------------------------------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% First Mtg. Nts., Series A, 11/15/00 11/18/93--12/15/95 87.50% 75.00%
- ------------------------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 4/14/92--3/3/93 100.00% 110.50%
STOCKS AND WARRANTS
- ------------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/18/93 $ 2.00 $ .25
- ------------------------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I. 4/14/92 1,000.00 1,005.00
- ------------------------------------------------------------------------------------------------------------------------------
Omnipoint Corp. 1/26/96 16.00 18.29
- ------------------------------------------------------------------------------------------------------------------------------
Omnipoint Corp. Wts., Exp. 11/00 11/29/95 -- 18.29
- ------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. 5/2/94 9.50 1.00
</TABLE>
29 Oppenheimer High Yield Fund
<PAGE> 30
OPPENHEIMER HIGH YIELD FUND
==============================================================================
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Ralph W. Stellmacher, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
==============================================================================
INVESTMENT ADVISER
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.
30 Oppenheimer High Yield Fund
<PAGE> 31
OPPENHEIMERFUNDS FAMILY
==============================================================================
OppenheimerFunds offers over 50 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 flexible fixed-income investments--with over 3 million
shareholder accounts and more than $60 billion under OppenheimerFunds'
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
adviser 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.
<TABLE>
===========================================================================================================
<S> <C>
STOCK FUNDS
Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Capital Appreciation Fund(3)
===========================================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
===========================================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
===========================================================================================================
MUNICIPAL FUNDS
California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
===========================================================================================================
MONEY MARKET FUNDS(5)
Money Market Fund Cash Reserves
===========================================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. Available only to investors in certain states.
5. An investment in money market funds is neither insured nor guaranteed
by the U.S. government and there can be no assurance that a money market
fund will be able to maintain a stable net asset value of $1.00 per
share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
31 Oppenheimer High Yield Fund
<PAGE> 32
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 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
RS0280.001.1296 February 28, 1997
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"HOW MAY I HELP YOU?"
As an Oppenheimer fund 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.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
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