[Photo of High Rise Buildings]
Semiannual Report December 31, 1999
Oppenheimer
High Yield Fund
[Logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
High yield bonds currently offer a greater than average yield spread over U.S.
Treasury securities, which we believe is an attractive return.
Our strategy continues to focus on bonds issued by U.S. technology companies as
well as in Europe, where the high yield market is relatively new.
Contents
1 President's Letter
3 An Interview
with Your Fund's
Managers
8 Financial
Statements
44 Officers and Trustees
45 OppenheimerFunds
Family
- -----------------------
Cumulative
Total Returns
For the 6-Month Period
Ended 12/31/99*
Class A
Without With
Sales Chg. Sales Chg.
- -----------------------
0.17% -4.59%
Class B
Without With
Sales Chg. Sales Chg.
- -----------------------
- -0.29% -5.05%
Class C
Without With
Sales Chg. Sales Chg.
- -----------------------
- -0.22% -1.17%
Class Y
Without With
Sales Chg. Sales Chg.
- -----------------------
0.19% 0.19%
- -----------------------
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
- -----------------------
*See page 7 for further details.
<PAGE>
PRESIDENT'S LETTER
Dear shareholder,
[Photo of James C. Swain] [Photo of Bridget A. Macaskill]
James C. Swain
Chairman
Oppenheimer
High Yield Fund
Bridget A. Macaskill
President
Oppenheimer
High Yield Fund
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns, and
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a moderate-growth,
low-inflation course. As recent revisions of 1999's economic statistics
demonstrated, the economy has defied many analysts' forecasts by growing at a
strong rate, which should be positive for the bond market. Similarly, positive
economic forces could help the stock market's performance broaden to include
value-oriented and smaller stocks.
1 OPPENHEIMER HIGH YIELD FUND
<PAGE>
PRESIDENT'S LETTER
We see particularly compelling opportunities outside of the U.S. market. Many
foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving companies
there the same potential for cost-cutting and productivity improvements that
U.S. companies enjoyed 10 years ago. In Japan and Asia, economic recovery is
expected to gain strength, which could allow stocks to rally from relatively low
levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risk and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds The Right Way to Invest in 2000 and
beyond.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
January 24, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
2 OPPENHEIMER HIGH YIELD FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[Photo of Portfolio Management Team]
Portfolio Management Team
(l to r)
David Negri
Thomas Reedy
Q How did Oppenheimer High Yield Fund perform during the six-month period that
ended December 31, 1999?
A. From a total return perspective, the Fund has performed in line with the high
yield market as a whole, which has been weak due to a rising interest rate
environment. Beginning in June, the Federal Reserve Board gradually raised its
key interest rates to curb borrowing by business and consumers. Long-term
interest rates drifted upward, while bond prices, which move inversely to
interest rates, fell because investors were concerned that the booming U.S.
economy would lead to an acceleration of inflation.
However, high yield bond prices have not declined as much as those of U.S.
Treasury bonds during the period. One reason that high yield bonds have held up
better than Treasury securities is due to an unusually high yield "spread"
compared to Treasuries. High yield bonds have paid as much as six percentage
points more in yield in recent months. Historically, the average spread is about
four and a half percentage points.
3 OPPENHEIMER HIGH YIELD FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[Sidebar Text]
"We have focused
the portfolio on
'new economy'
companies engaged
in high technology
industries such as
the Internet or
telecommunications."
[End Sidebar Text]
How did you manage the Fund under these conditions?
In addition to maintaining a broadly diversified portfolio that includes more
than 500 securities, we have kept credit quality relatively high and have been
rewarded for doing so. Higher quality bonds have outperformed lower quality
bonds over the past few months as the money supply has tightened. That's because
a slowing economy could adversely affect a low quality company's ability to pay
its debts. And, as a result, we've also seen higher than normal default rates in
the market place.
The high yield market has experienced explosive growth over the past three
years, but we believe that credit quality standards in the marketplace have
deteriorated. When interest rates were falling in 1998, investors were willing
to reach further down the credit spectrum to earn extra yield, much to their
regret today. During that period, we made a decision to maintain high credit
standards, which has been a plus for the portfolio, although we have tiptoed
back into some lower quality bonds in recent weeks.
Where have you found attractive investment opportunities?
We have focused on "new economy" companies engaged in high technology industries
such as the Internet or telecommunications. At the same time, we have reduced
our exposure to economically sensitive old-line industries that made up a large
part of the economy several years ago. Just as technology has led the stock
market in recent years, it has also benefited high yield bonds issued by these
companies. Surging stock prices have created an environment where mergers
proliferate, because the acquiring company
4 OPPENHEIMER HIGH YIELD FUND
<PAGE>
can pay for its target with more valuable stock. For example, Omnipoint Corp., a
CCC-rated cellular telephone company in the portfolio was acquired by
VoiceStream Wireless Corp., which carries a B- rating. When a higher rated
company acquires a lower rated company, the lower rated bond typically increases
in price to reflect the higher credit rating of the combined entity.
What is your current investment strategy?
In addition to stressing technology and keeping the portfolio generally high
quality, we continue to anticipate certain seasonal effects in the high yield
market. For instance, high yield bonds have historically performed the best
during the first quarter of the year. During this period, issuance is slow while
demand for bonds remains constant or increases. Therefore, it typically is
beneficial to move into January fully invested.
Another important aspect of our strategy is an increasing interest in the
European high yield bond market. Since the advent of Europe's single currency,
government bonds issued by individual countries no longer offer such high
yields. Instead, a Pan-European high yield corporate bond market has emerged,
and our goal is to increase the portfolio's weighting in these European
companies.
What is your outlook for the Fund?
Although 1999 has been a difficult year for the bond market, we look favorably
to the future. Bond yields in the Fund are higher than average in relation to
U.S. Treasury yields as investors have reacted to higher than normal default
rates in the high yield marketplace. At the same time, the U.S. economy
continues to perform well without significant inflation.
[Sidebar Text]
- ----------------------------------
Average Annual
Total Returns
For the Periods Ended 12/31/99(1)
Class A
1-Year 5-Year 10-Year
- ----------------------------------
- -0.79% 7.88% 9.32%
Class B Since
1-Year 5-Year Inception
- ----------------------------------
- -1.40% 7.79% 7.25%
Class C Since
1-Year 5-Year Inception
- ----------------------------------
2.42% N/A 6.88%
Class Y Since
1-Year 5-Year Inception
- ----------------------------------
4.29% N/A 2.43%
- ----------------------------------
Standardized Yields(2)
For the 30 Days Ended 12/31/99
- ----------------------------------
Class A 10.52%
- ----------------------------------
Class B 10.27
- ----------------------------------
Class C 10.26
- ----------------------------------
Class Y 11.17
- ----------------------------------
[End Sidebar Text]
1. See page 7 for further details.
2. Standardized yield is based on net investment income for the 30-day period
ended December 31, 1999. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER HIGH YIELD FUND
<PAGE>
We believe that investor sentiment regarding high yield bonds will improve as
default rates decline. Bond prices should then rebound accordingly. In the
meantime, we will continue to use thorough research and analysis to take
advantage of opportunities in the high yield market, which is why Oppenheimer
High Yield Fund remains an important part of The Right Way to Invest.
Corporate Bonds & Notes--Top 10 Industries(4)
- ----------------------------------------------------------
Media/Entertainment: Telecommunications 23.8%
- ----------------------------------------------------------
Media/Entertainment: Wireless Communications 9.9
- ----------------------------------------------------------
Gaming/Leisure 6.0
- ----------------------------------------------------------
Transportation 5.8
- ----------------------------------------------------------
Energy 5.5
- ----------------------------------------------------------
Service 4.7
- ----------------------------------------------------------
Media/Entertainment: Cable/Wireless Video 4.2
- ----------------------------------------------------------
Metal/Minerals 3.9
- ----------------------------------------------------------
Media/Entertainment: Diversified Media 3.8
- ----------------------------------------------------------
Information Technology 3.7
[Pie Chart]
- -----------------------
Credit Allocation(3)
o Treasury/Agency 1.2%
o AAA/BBB 1.6
o BB+/B- 80.8
o CCC+/C 11.9
o Other Securities 4.5
- -----------------------
[End Pie Chart]
3. Portfolio is subject to change. Percentages are as of December 31, 1999, and
are dollar-weighted based on total market value of investments. Average credit
quality and ratings allocations include securities rated by a national rating
organization. Under normal market conditions, the Fund invests at least 65% of
its assets in high yield, lower rated fixed income securities commonly known as
"junk bonds." Securities rated below investment grade carry a greater risk of
default. While the Fund has generally invested under 15% of its assets in
foreign securities, which are subject to exchange rate and political
uncertainties, it is not restricted to any amount by prospectus.
4. Portfolio is subject to change. Percentages are as of December 31, 1999, and
are based on total market value of corporate bonds and notes.
6 OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES
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. The Fund's
performance may from time to time be subject to substantial short-term changes,
particularly during periods of market or interest rate volatility. For updates
on the Fund's performance, please contact your financial advisor, call us at
1.800.525.7048 or visit our website, www.oppenheimerfunds.com.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized.
Class A shares were first publicly offered on 7/28/78. The Fund's maximum sales
charge for Class A shares was higher prior to 4/1/91, so actual performance may
have been lower. Class A returns include the current maximum initial sales
charge of 4.75%.
Class B shares of the Fund were first publicly offered on 5/3/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 1% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "life of class" return for Class B uses Class A performance
for the period after conversion. Class B shares are subject to an annual 0.75%
asset-based sales charge.
Class C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 10/15/97. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the different performance calculations is in the Fund's
prospectus.
7 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS December 31, 1999 / Unaudited
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
=======================================================================================================================
Mortgage-Backed Obligations--2.6%
- -----------------------------------------------------------------------------------------------------------------------
AMRESCO Commercial Mortgage Funding I Corp., Multiclass Mtg.
Pass-Through Certificates, Series 1997-C1, Cl. H, 7%, 6/17/29(2) $ 840,000 $ 553,350
- -----------------------------------------------------------------------------------------------------------------------
Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates,
Series 1997-D4, Cl. B3, 7.525%, 4/14/29(3) 1,500,000 945,000
- -----------------------------------------------------------------------------------------------------------------------
CBA Mortgage Corp., Mtg. Pass-Through Certificates,
Series 1993-C1, Cl. E, 6.72%, 12/25/03(2,3) 1,452,000 1,248,266
- -----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only
Stripped Mtg.-Backed Security:
Series 194, Cl. IO, 9.853%, 4/1/28(4) 30,685,820 10,258,174
Series 197, Cl. IO, 11.419%, 4/1/28(4) 18,163,448 5,947,110
Series 199, Cl. IO, 17.353%, 8/1/28(4) 13,539,064 4,554,626
- -----------------------------------------------------------------------------------------------------------------------
First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through Certificates,
Series 1997, Cl. E, 8.126%, 2/25/11(2,3) 4,500,000 3,015,000
- -----------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., Collateralized Mtg. Obligations,
Series 1997-C2, Cl. F, 6.75%, 4/16/29 3,000,000 1,800,937
- -----------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., Interest-Only Stripped
Mtg.-Backed Security, Series 1997-C1, Cl. X, 8.887%, 7/15/27(4) 72,382,218 5,451,286
- -----------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group LP, Collateralized Bond Obligations,
Sub. Bonds, Series 1A, Cl. D, 12.54%, 6/13/11(2) 2,000,000 1,920,000
- -----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through Certificates:
Series 1997-RR, Cl. D, 7.671%, 4/30/39(2) 5,000,269 3,511,908
Series 1997-RR, Cl. F, 7.649%, 4/30/39(2) 8,000,430 4,082,720
Series 1997-MC1, Cl. F, 7.452%, 5/20/07(2) 1,400,000 1,059,188
- -----------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1995-C1, Cl. F, 6.90%, 2/25/27 1,167,818 1,050,489
- -----------------------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII,
Series 1996-C1, Cl. E, 9.184%, 1/20/06 2,496,000 2,285,400
-----------
Total Mortgage-Backed Obligations (Cost $51,666,173) 47,683,454
=======================================================================================================================
Foreign Government Obligations--0.9%
- -----------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Series I, 2.868%, 4/1/07(3) [ARP] 9,088,731 6,362,966
- -----------------------------------------------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, Series PBA1, 2.868%, 4/1/07(3) [ARP] 2,329,145 1,538,706
- -----------------------------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears Bonds, 6.50%, 7/28/11(3) 2,650,000 2,096,813
- -----------------------------------------------------------------------------------------------------------------------
Hashemite (Kingdom of Jordan) Disc. Bonds, 7%, 12/23/23(3) 1,750,000 1,233,750
- -----------------------------------------------------------------------------------------------------------------------
Panama (Republic of) Interest Reduction Bonds, 4.25%, 7/17/14(3) 2,250,000 1,766,250
- -----------------------------------------------------------------------------------------------------------------------
Panama (Republic of) Past Due Interest Debs., 5.819%, 7/17/16(3) 1,943,494 1,537,790
- -----------------------------------------------------------------------------------------------------------------------
Peru (Republic of) Past Due Interest Bonds, Series 20 yr., 4.50%, 3/7/17(3) 2,350,000 1,627,375
- -----------------------------------------------------------------------------------------------------------------------
Perusahaan Listr, 17% Nts., 8/21/01(2) [IDR] 1,000,000,000 142,755
- -----------------------------------------------------------------------------------------------------------------------
PT Hutama Karya Medium-Term Nts., Zero Coupon, 3/17/99(2,5,6) [IDR] 4,000,000,000 157,424
-----------
Total Foreign Government Obligations (Cost $16,982,216) 16,463,829
</TABLE>
8 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
=======================================================================================================================
Loan Participations--1.5%
- -----------------------------------------------------------------------------------------------------------------------
Algeria (Republic of) Reprofiled Debt Loan Participation Nts.,
Tranche 1, 6.812%, 9/4/06(2,3) $ 1,179,272 $ 915,410
- -----------------------------------------------------------------------------------------------------------------------
Central Bank of Indonesia Gtd. Nts.:
Series 2 yr., 8.906%, 8/25/00(2,3) 1,000,000 970,000
Series 3 yr., 9.156%, 8/25/01(2,3) 2,500,000 2,312,500
Series 4 yr., 9.406%, 8/25/02(2,3) 500,000 442,500
- -----------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 6.844%, 1/1/09(2,3) 1,031,428 933,443
- -----------------------------------------------------------------------------------------------------------------------
Shoshone Partners Loan Trust Sr. Nts., 7.955%, 4/28/02
(representing a basket of reference loans and a total return swap
between Chase Manhattan Bank and the Trust)(2,3) 23,200,000 22,794,768
-----------
Total Loan Participations (Cost $28,338,439) 28,368,621
=======================================================================================================================
Corporate Bonds and Notes--86.2%
- -----------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.8%
Amtran, Inc.:
9.625% Nts., 12/15/05 2,300,000 2,219,500
10.50% Sr. Nts., 8/1/04 5,600,000 5,628,000
- -----------------------------------------------------------------------------------------------------------------------
Atlas Air, Inc.:
9.375% Sr. Unsec. Nts., 11/15/06 5,600,000 5,432,000
10.75% Sr. Nts., 8/1/05 115,000 117,875
- -----------------------------------------------------------------------------------------------------------------------
BE Aerospace, Inc., 9.50% Sr. Unsec. Sub. Nts., 11/1/08 4,900,000 4,630,500
- -----------------------------------------------------------------------------------------------------------------------
Constellation Finance LLC, 9.80% Airline Receivable Asset-Backed Nts.,
Series 1997-1, 1/1/01(2) 3,000,000 2,790,000
- -----------------------------------------------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 4,000,000 3,700,000
- -----------------------------------------------------------------------------------------------------------------------
Fairchild Corp., 10.75% Sr. Unsec. Sub. Nts., 4/15/09 6,650,000 5,677,437
- -----------------------------------------------------------------------------------------------------------------------
Pegasus Aircraft Lease Securitization Trust, 11.76% Sr. Nts.,
Series 1997-A, Cl. B, 6/15/04(2) 2,060,688 2,105,817
-----------
32,301,129
- -----------------------------------------------------------------------------------------------------------------------
Chemicals--3.1%
ClimaChem, Inc., 10.75% Sr. Unsec. Nts., Series B, 12/1/07 4,630,000 1,180,650
- -----------------------------------------------------------------------------------------------------------------------
Georgia Gulf Corp., 10.375% Sr. Sub. Nts., 11/1/07(7) 1,500,000 1,573,125
- -----------------------------------------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc:
10.125% Sr. Unsec. Sub. Nts., 7/1/09(7) 3,000,000 3,120,000
10.125% Sr. Unsec. Sub. Nts., 7/1/09 [EUR] 2,700,000 2,887,109
Zero Coupon Sr. Disc. Nts., 13.09%, 12/31/09(7,8) 13,500,000 4,134,375
- -----------------------------------------------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.875% Sec. Nts., Series B, 5/1/07 2,000,000 2,050,000
10.875% Sr. Sub. Nts., 5/1/09 2,000,000 2,070,000
</TABLE>
9 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Chemicals Continued
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 $11,325,000 $11,778,000
- -----------------------------------------------------------------------------------------------------------------------
PCI Chemicals Canada, Inc., 9.25% Sec. Nts., 10/15/07 1,000,000 775,000
- -----------------------------------------------------------------------------------------------------------------------
Pioneer Americas Acquisition Corp., 9.25% Sr. Nts., 6/15/07 2,020,000 1,605,900
- -----------------------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 2,000,000 1,950,000
- -----------------------------------------------------------------------------------------------------------------------
Royster-Clark, Inc., 10.25% First Mtg. Nts., 4/1/09(7) 3,900,000 3,549,000
- -----------------------------------------------------------------------------------------------------------------------
Sovereign Specialty Chemicals, Inc., 9.50% Sr. Unsec. Sub. Nts., Series B, 8/1/07 7,255,000 7,327,550
- -----------------------------------------------------------------------------------------------------------------------
Sterling Chemicals Holdings, Inc., 0%/13.50% Sr. Disc. Nts., 8/15/08(9) 2,650,000 682,375
- -----------------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
11.25% Sr. Sub. Nts., 4/1/07 1,560,000 1,154,400
11.75% Sr. Unsec. Sub. Nts., 8/15/06 4,905,000 3,703,275
12.375% Sr. Sec. Nts., Series B, 7/15/06 3,700,000 3,848,000
- -----------------------------------------------------------------------------------------------------------------------
ZSC Specialty Chemical plc, 11% Sr. Nts., 7/1/09(7) 4,200,000 4,378,500
-----------
57,767,259
- -----------------------------------------------------------------------------------------------------------------------
Consumer Durables--0.2%
Holmes Products Corp., 9.875% Sr. Sub. Nts., Series C, 11/15/07 1,000,000 735,000
- -----------------------------------------------------------------------------------------------------------------------
Icon Health & Fitness, Inc., 12% Unsec. Nts., 7/15/05(2) 150,960 83,028
- -----------------------------------------------------------------------------------------------------------------------
TAG Heuer International SA, 12% Sr. Sub. Nts., 12/15/05(2) 2,695,000 2,955,283
-----------
3,773,311
- -----------------------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.6%
AKI Holdings, Inc.:
0%/13.50% Sr. Disc. Debs., 7/1/09(9) 2,520,000 1,203,300
10.50% Sr. Unsec. Nts., 7/1/08 4,200,000 3,759,000
- -----------------------------------------------------------------------------------------------------------------------
Bell Sports, Inc., 11% Sr. Unsec. Sub. Nts., Series B, 8/15/08 4,675,000 4,698,375
- -----------------------------------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Sr. Sub. Nts., Series B, 10/1/03 3,780,000 3,803,625
- -----------------------------------------------------------------------------------------------------------------------
Fruit of the Loom, Inc., 8.875% Sr. Unsec. Nts., 4/15/06(6) 2,500,000 137,500
- -----------------------------------------------------------------------------------------------------------------------
Globe Manufacturing Corp., 10% Sr. Unsec. Sub. Nts., Series B, 8/1/08 3,500,000 1,697,500
- -----------------------------------------------------------------------------------------------------------------------
Phillips-Van Heusen Corp., 9.50% Sr. Unsec. Sub. Nts., 5/1/08 1,300,000 1,215,500
- -----------------------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/98(2,5,6,10,11) 5,955,189 --
- -----------------------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp.:
8.625% Sr. Unsec. Sub. Nts., 2/1/08 2,350,000 1,186,750
9% Sr. Nts., 11/1/06 4,515,000 3,408,825
- -----------------------------------------------------------------------------------------------------------------------
Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 7,000,000 7,192,500
- -----------------------------------------------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08(2) 1,200,000 426,000
-----------
28,728,875
- -----------------------------------------------------------------------------------------------------------------------
Energy--4.7%
Chesapeake Energy Corp.:
9.125% Sr. Unsec. Nts., 4/15/06 3,227,000 2,960,772
9.625% Sr. Unsec. Nts., Series B, 5/1/05 5,750,000 5,448,125
</TABLE>
10 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Energy Continued
Clark Refinancing & Marketing, Inc., 8.875% Sr. Sub. Nts., 11/15/07 $ 5,450,000 $ 2,861,250
- -----------------------------------------------------------------------------------------------------------------------
Clark USA, Inc., 10.875% Sr. Nts., Series B, 12/1/05 3,175,000 1,285,875
- -----------------------------------------------------------------------------------------------------------------------
Denbury Management, Inc., 9% Sr. Sub. Nts., 3/1/08 2,500,000 2,287,500
- -----------------------------------------------------------------------------------------------------------------------
Empresa Electric Del Norte, 10.50% Sr. Debs., 6/15/05(2) 2,800,000 1,318,612
- -----------------------------------------------------------------------------------------------------------------------
Forcenergy, Inc.:
8.50% Sr. Sub. Nts., Series B, 2/15/07(5,6) 1,700,000 1,391,875
9.50% Sr. Sub. Nts., 11/1/06(5,6) 1,700,000 1,391,875
- -----------------------------------------------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 3,300,000 3,267,000
- -----------------------------------------------------------------------------------------------------------------------
Gothic Energy Corp., 0%/14.125% Sr. Disc. Nts., 5/1/06(9) 14,875,000 5,206,250
- -----------------------------------------------------------------------------------------------------------------------
Gothic Production Corp., 11.125% Sr. Sec. Nts., Series B, 5/1/05(7) 9,725,000 8,314,875
- -----------------------------------------------------------------------------------------------------------------------
Grant Geophysical, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/15/08 4,015,000 2,549,525
- -----------------------------------------------------------------------------------------------------------------------
Leviathan Gas Pipeline Partners, LP/Leviathan Finance Corp.,
10.375% Sr. Unsec. Sub. Nts., Series B, 6/1/09 3,750,000 3,881,250
- -----------------------------------------------------------------------------------------------------------------------
National Energy Group, Inc., 10.75% Sr. Nts., Series D, 11/1/06(5,6) 5,995,000 3,147,375
- -----------------------------------------------------------------------------------------------------------------------
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 4,980,000 4,158,300
- -----------------------------------------------------------------------------------------------------------------------
Pogo Producing Co., 8.75% Sr. Sub. Nts., Series B, 5/15/07 7,525,000 7,186,375
- -----------------------------------------------------------------------------------------------------------------------
R&B Falcon Corp., 12.25% Sr. Unsec. Nts., 3/15/06 6,000,000 6,570,000
- -----------------------------------------------------------------------------------------------------------------------
RAM Energy, Inc., 11.50% Sr. Unsec. Nts., 2/15/08 12,535,000 5,828,775
- -----------------------------------------------------------------------------------------------------------------------
RBF Finance Co.:
11% Sr. Sec. Nts., 3/15/06 6,000,000 6,420,000
11.375% Sr. Sec. Nts., 3/15/09 2,500,000 2,687,500
- -----------------------------------------------------------------------------------------------------------------------
Statia Terminals International/Statia Terminals (Canada), Inc.,
11.75% First Mtg. Nts., Series B, 11/15/03 925,000 946,969
- -----------------------------------------------------------------------------------------------------------------------
Stone Energy Corp., 8.75% Sr. Sub. Nts., 9/15/07 4,210,000 4,125,800
- -----------------------------------------------------------------------------------------------------------------------
Universal Compression Holdings, Inc.:
0%/9.875% Sr. Disc. Nts., 2/15/08(9) 4,200,000 2,625,000
0%/11.375% Sr. Disc. Nts., 2/15/09(9) 1,680,000 898,800
----------
86,759,678
- -----------------------------------------------------------------------------------------------------------------------
Financial--1.3%
AMRESCO, Inc., 9.875% Sr. Sub. Nts., Series 98-A, 3/15/05 2,225,000 1,412,875
- -----------------------------------------------------------------------------------------------------------------------
Bank Plus Corp., 12% Sr. Nts., 7/18/07 78,000 62,010
- -----------------------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03(2,5,6) 8,802,000 --
- -----------------------------------------------------------------------------------------------------------------------
Parametric RE Ltd., 10.331% Nts., 11/19/07(3,7) 1,000,000 1,023,750
- -----------------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 24% Nts., 6/19/03(5,6) [IDR] 2,464,500,000 45,851
- -----------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 9.75% Sr. Sec. Nts., Series B, 4/1/08 11,610,000 10,666,687
- -----------------------------------------------------------------------------------------------------------------------
Sovereign Bankcorp, 10.50% Sr. Unsec. Nts., 11/15/06 5,500,000 5,637,500
- -----------------------------------------------------------------------------------------------------------------------
Veritas Capital Trust, 10% Nts., 1/1/28 2,525,000 1,900,062
- -----------------------------------------------------------------------------------------------------------------------
Veritas Holdings, Inc., 9.625% Sr. Nts., 12/15/03 3,820,000 3,724,500
-----------
24,473,235
</TABLE>
11 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Food & Drug--1.3%
AmeriKing, Inc., 10.75% Sr. Nts., 12/1/06 $ 4,730,000 $ 4,375,250
- -----------------------------------------------------------------------------------------------------------------------
Family Restaurants, Inc.:
9.75% Sr. Nts., 2/1/02 9,500,000 4,512,500
10.875% Sr. Sub. Disc. Nts., 2/1/04 450,000 204,750
- -----------------------------------------------------------------------------------------------------------------------
Fleming Cos., Inc.:
10.50% Sr. Sub. Nts., Series B, 12/1/04 3,050,000 2,813,625
10.625% Sr. Sub. Nts., Series B, 7/31/07 8,255,000 7,491,412
- -----------------------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc.:
10.75% Jr. Sub. Deferred Coupon Nts., 11/1/03 5,610,000 701,250
12.625% Sub. Nts., 6/15/02 10,500,000 3,517,500
- -----------------------------------------------------------------------------------------------------------------------
Shoppers Food Warehouse Corp., 9.75% Sr. Nts., 6/15/04 1,065,000 1,134,225
-------------
24,750,512
- -----------------------------------------------------------------------------------------------------------------------
Food/Tobacco--2.3%
Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 1,680,000 1,608,600
- -----------------------------------------------------------------------------------------------------------------------
Cott Corp., 9.375% Sr. Nts., 7/1/05 10,015,000 9,914,850
- -----------------------------------------------------------------------------------------------------------------------
Del Monte Foods Co., 0%/12.50% Sr. Disc. Nts., Series B, 12/15/07(9) 4,571,000 3,542,525
- -----------------------------------------------------------------------------------------------------------------------
International Home Foods, Inc., 10.375% Sr. Sub. Nts., 11/1/06 6,845,000 7,135,912
- -----------------------------------------------------------------------------------------------------------------------
New World Pasta Co., 9.25% Sr. Nts., 2/15/09 6,000,000 5,430,000
- -----------------------------------------------------------------------------------------------------------------------
Packaged Ice, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/1/05 6,400,000 5,888,000
- -----------------------------------------------------------------------------------------------------------------------
Purina Mills, Inc., 9% Sr. Unsec. Sub. Nts., 3/15/1(6) 1,150,000 293,250
- -----------------------------------------------------------------------------------------------------------------------
SmithField Foods, Inc., 7.625% Sr. Unsec. Sub. Nts., 2/15/08 2,240,000 2,027,200
- -----------------------------------------------------------------------------------------------------------------------
Sparkling Spring Water Group Ltd., 11.50% Sr. Sec. Sub. Nts., 11/15/07 3,435,000 2,799,525
- -----------------------------------------------------------------------------------------------------------------------
Triarc Consumer Products Group LLC, 10.25% Sr. Sub. Nts., 2/15/09(7) 3,500,000 3,412,500
-----------
42,052,362
- -----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers--2.8%
American Pad & Paper Co., 13% Sr. Sub. Nts., Series B, 11/15/05(6) 4,000,000 460,000
- -----------------------------------------------------------------------------------------------------------------------
Ball Corp.:
7.75% Sr. Unsec. Nts., 8/1/06 2,500,000 2,450,000
8.25% Sr. Unsec. Sub. Nts., 8/1/08 3,300,000 3,184,500
- -----------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 9.75% Sr. Nts., 6/15/07 2,500,000 2,368,750
- -----------------------------------------------------------------------------------------------------------------------
Packaging Corp. of America, 9.625% Sr. Unsec. Sub. Nts., 4/1/09 2,000,000 2,052,500
- -----------------------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc.:
9% First Priority Sr. Sec. Nts., 6/1/04 1,000,000 985,000
10.625% Second Priority Sr. Sec. Nts., 4/15/05 2,400,000 2,244,000
- -----------------------------------------------------------------------------------------------------------------------
Riverwood International Corp.:
10.625% Sr. Unsec. Nts., 8/1/07 5,420,000 5,609,700
10.875% Sr. Sub. Nts., 4/1/08 4,200,000 4,158,000
</TABLE>
12 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Forest Products/Containers Continued
SD Warren Co.:
12% Sr. Sub. Nts., Series B, 12/15/04 $ 4,450,000 $ 4,661,375
14% Unsec. Nts., 12/15/06(10) 9,895,722 11,132,687
- -----------------------------------------------------------------------------------------------------------------------
Tembec Industries, Inc., 8.625% Sr. Nts., 6/30/09 4,000,000 4,010,000
- -----------------------------------------------------------------------------------------------------------------------
U.S. Can Corp., 10.125% Sr. Sub. Nts., Series B, 10/15/06(2) 2,750,000 2,818,750
- -----------------------------------------------------------------------------------------------------------------------
U.S. Timberlands Co. LP, 9.625% Sr. Nts., 11/15/07 5,590,000 5,191,712
-----------
51,326,974
- ----------------------------------------------------------------------------------------------------------------------
Gaming/Leisure--5.2%
AP Holdings, Inc., 0%/11.25% Sr. Disc. Nts., 3/15/08(9) 1,400,000 567,000
- -----------------------------------------------------------------------------------------------------------------------
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 3,080,000 2,171,400
- -----------------------------------------------------------------------------------------------------------------------
Aztar Corp., 8.875% Sr. Unsec. Sub. Nts., 5/15/07 4,500,000 4,342,500
- -----------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/95(5,6) 22,500 --
- -----------------------------------------------------------------------------------------------------------------------
Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 3,000,000 2,778,750
- -----------------------------------------------------------------------------------------------------------------------
Casino Magic of Louisiana Corp., 13% First Mtg. Nts., Series B, 8/15/03 3,000,000 3,401,250
- -----------------------------------------------------------------------------------------------------------------------
Coast Hotel & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09 2,250,000 2,160,000
- -----------------------------------------------------------------------------------------------------------------------
Empress Entertainment, Inc., 8.125% Sr. Sub. Nts., 7/1/06 860,000 872,900
- -----------------------------------------------------------------------------------------------------------------------
Florida Panthers Holdings, Inc., 9.875% Sr. Sub. Nts., 4/15/09 4,800,000 4,680,000
- -----------------------------------------------------------------------------------------------------------------------
Hard Rock Hotel, Inc., 9.25% Sr. Sub. Nts., 4/1/05 1,700,000 1,215,500
- -----------------------------------------------------------------------------------------------------------------------
Harveys Casino Resorts, 10.625% Sr. Unsec. Sub. Nts., 6/1/06 280,000 290,500
- -----------------------------------------------------------------------------------------------------------------------
Hollywood Casino Corp., 11.25% Sr. Sec. Nts., 5/1/07 4,500,000 4,725,000
- -----------------------------------------------------------------------------------------------------------------------
Hollywood Park, Inc., 9.25% Sr. Unsec. Sub. Nts., Series B, 2/15/07 6,000,000 5,977,500
- -----------------------------------------------------------------------------------------------------------------------
Horseshoe Gaming LLC, 9.375% Sr. Sub. Nts., 6/15/07 11,355,000 11,355,000
- -----------------------------------------------------------------------------------------------------------------------
Intrawest Corp., 9.75% Sr. Nts., 8/15/08 7,980,000 7,860,300
- -----------------------------------------------------------------------------------------------------------------------
Isle of Capri Casinos, Inc., 8.75% Sr. Unsec. Nts., 4/15/09 4,900,000 4,532,500
- -----------------------------------------------------------------------------------------------------------------------
Jupiters Ltd., 8.50% Sr. Unsec. Nts., 3/1/06 5,200,000 4,992,000
- -----------------------------------------------------------------------------------------------------------------------
Meristar Hospitality Corp., 8.75% Sr. Unsec. Sub. Nts., 8/15/07 2,200,000 2,035,000
- -----------------------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 8.75% Sr. Unsec. Sub. Nts., 1/1/09 5,000,000 4,950,000
- -----------------------------------------------------------------------------------------------------------------------
Premier Parks, Inc.:
0%/10% Sr. Disc. Nts., 4/1/08(9) 4,880,000 3,391,600
9.25% Sr. Nts., 4/1/06 1,850,000 1,826,875
9.75% Sr. Nts., 6/15/07 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------------------------------
Six Flags Entertainment Corp., 8.875% Sr. Nts., 4/1/06 3,640,000 3,571,750
- -----------------------------------------------------------------------------------------------------------------------
Station Casinos, Inc.:
9.75% Sr. Sub. Nts., 4/15/07 5,800,000 5,858,000
10.125% Sr. Sub. Nts., 3/15/06 6,000,000 6,150,000
-----------
94,705,325
</TABLE>
13 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Healthcare--1.2%
Charles River Labs ONC, Units (each unit consists of $1,000 principal
amount of 13.50% sr. sub. nts., 10/1/09 and one warrant to purchase
3.942 shares of common stock)(7,12) $3,000,000 $ 3,135,000
- -----------------------------------------------------------------------------------------------------------------------
ICN Pharmaceutical, Inc., 8.75% Sr. Nts., 11/15/08(7) 5,040,000 4,838,400
- -----------------------------------------------------------------------------------------------------------------------
King Pharmaceuticals, Inc., 10.75% Sr. Unsec. Sub. Nts., 2/15/09 4,500,000 4,792,500
- -----------------------------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc., 11% Sr. Unsec. Nts., 5/15/05 2,350,000 2,267,750
- -----------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.:
8.125% Sr. Unsec. Sub. Nts., Series B, 12/1/08 1,250,000 1,168,750
8.625% Sr. Sub. Nts., 1/15/07 2,200,000 2,134,000
- -----------------------------------------------------------------------------------------------------------------------
Unilab Finance Corp., 12.75% Sr. Sub. Nts., 10/1/09(7) 3,500,000 3,640,000
-----------
21,976,400
- -----------------------------------------------------------------------------------------------------------------------
Housing--2.1%
D.R. Horton, Inc., 8% Sr. Nts., 2/1/09 4,320,000 3,974,400
- -----------------------------------------------------------------------------------------------------------------------
Del Webb Corp., 10.25% Sr. Unsec. Sub. Nts., 2/15/10 4,500,000 4,398,750
- -----------------------------------------------------------------------------------------------------------------------
Engle Homes, Inc., 9.25% Sr. Unsec. Nts., Series C, 2/1/08 2,160,000 1,954,800
- -----------------------------------------------------------------------------------------------------------------------
Falcon Building Products, Inc., 9.50% Sr. Sub. Nts., 6/15/07 995,000 970,125
- -----------------------------------------------------------------------------------------------------------------------
Formica Corp., 10.875% Sr. Unsec. Sub. Nts., Series B, 3/1/09 5,000,000 4,625,000
- -----------------------------------------------------------------------------------------------------------------------
Nortek, Inc.:
8.875% Sr. Unsec. Nts., Series B, 8/1/08 1,750,000 1,671,250
9.125% Sr. Nts., Series B, 9/1/07 9,540,000 9,277,650
9.25% Sr. Nts., Series B, 3/15/07 7,545,000 7,394,100
- -----------------------------------------------------------------------------------------------------------------------
Panolam Industries International, Inc., 11.50% Sr. Sub. Nts., 2/15/09(7) 4,400,000 4,499,000
-----------
38,765,075
- -----------------------------------------------------------------------------------------------------------------------
Information Technology--3.2%
Amkor Technologies, Inc.:
9.25% Sr. Nts., 5/1/06(7) 9,500,000 9,310,000
- -----------------------------------------------------------------------------------------------------------------------
10.50% Sr. Sub. Nts., 5/1/09(7) 9,500,000 9,500,000
Cherokee International LLC, 10.50% Sr. Sub. Nts., 5/1/09 6,000,000 5,310,000
- -----------------------------------------------------------------------------------------------------------------------
Chippac International Ltd., 12.75% Sr. Sub. Nts., 8/1/09(7) 4,000,000 4,200,000
- -----------------------------------------------------------------------------------------------------------------------
Details, Inc., 10% Sr. Sub. Nts., Series B, 11/15/05 4,000,000 3,700,000
- -----------------------------------------------------------------------------------------------------------------------
Dialog Corp. plc, 11% Sr. Sub. Nts., Series B, 11/15/07 3,250,000 1,576,250
- -----------------------------------------------------------------------------------------------------------------------
DII Group, Inc., 8.50% Sr. Sub. Nts., 9/15/07 2,355,000 2,355,000
- -----------------------------------------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 2,805,000 2,478,919
- -----------------------------------------------------------------------------------------------------------------------
Fairchild Semiconductor International, Inc., 10.375% Sr. Unsec. Nts., 10/1/07 9,175,000 9,473,187
- -----------------------------------------------------------------------------------------------------------------------
Fisher Scientific International, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/08 7,860,000 7,575,075
- -----------------------------------------------------------------------------------------------------------------------
Unisys Corp., 11.75% Sr. Nts., 10/15/04 200,000 219,500
- -----------------------------------------------------------------------------------------------------------------------
Wavetek Corp., 10.125% Sr. Sub. Nts., 6/15/07 3,360,000 2,776,200
-----------
58,474,131
</TABLE>
14 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Manufacturing--2.7%
Applied Power, Inc., 8.75% Sr. Sub. Nts., 4/1/09 $3,600,000 $ 3,541,500
- -----------------------------------------------------------------------------------------------------------------------
Axia, Inc., 10.75% Sr. Sub. Nts., 7/15/08 2,020,000 1,860,925
- -----------------------------------------------------------------------------------------------------------------------
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09(7) 6,300,000 6,678,000
- -----------------------------------------------------------------------------------------------------------------------
Burke Industries, Inc., 10% Sr. Sub. Nts., 8/15/07 2,150,000 892,250
- -----------------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12% Sr. Sub. Nts., Series B, 8/1/05 350,000 281,750
- -----------------------------------------------------------------------------------------------------------------------
Eagle-Picher Industries, Inc., 9.375% Sr. Unsec. Sub. Nts., 3/1/08 2,800,000 2,450,000
- -----------------------------------------------------------------------------------------------------------------------
Grove Worldwide LLC, 9.25% Sr. Sub. Nts., 5/1/08 2,500,000 712,500
- -----------------------------------------------------------------------------------------------------------------------
Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 3,500,000 3,018,750
- -----------------------------------------------------------------------------------------------------------------------
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 7,055,000 6,984,450
- -----------------------------------------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05 6,055,000 6,282,063
- -----------------------------------------------------------------------------------------------------------------------
Jordan Industries, Inc., 10.375% Sr. Unsec. Nts., Series D, 8/1/07 3,150,000 3,165,750
- -----------------------------------------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12% Bonds, 2/15/02(2,5,6) 700,000 260,750
- -----------------------------------------------------------------------------------------------------------------------
Moll Industries, Inc., 10.50% Sr. Unsec. Sub. Nts., 7/1/08 1,960,000 793,800
- -----------------------------------------------------------------------------------------------------------------------
Park-Ohio Industries, Inc., 9.25% Sr. Sub. Nts., 12/1/07 3,900,000 3,773,250
- -----------------------------------------------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07 5,480,000 4,986,800
- -----------------------------------------------------------------------------------------------------------------------
Terex Corp., 8.875% Sr. Unsec. Sub. Nts., 4/1/08 1,960,000 1,862,000
- -----------------------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 2,800,000 2,761,500
-----------
50,306,038
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Broadcasting--2.1%
Allbritton Communications Co., 8.875% Sr. Sub. Nts., Series B, 2/1/08 1,625,000 1,568,125
- -----------------------------------------------------------------------------------------------------------------------
AMFM Operating, Inc., 12.625% Debs., 10/31/06(10) 842,200 960,108
- -----------------------------------------------------------------------------------------------------------------------
Chancellor Media Corp.:
8.75% Sr. Unsec. Sub. Nts., Series B, 6/15/07 1,400,000 1,417,500
9% Sr. Unsec. Sub. Nts., 10/1/08 7,000,000 7,315,000
10.50% Sr. Sub. Nts., Series B, 1/15/07 1,240,000 1,351,600
- -----------------------------------------------------------------------------------------------------------------------
Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 5,500,000 5,252,500
- -----------------------------------------------------------------------------------------------------------------------
Radio One, Inc., 7% Sr. Sub. Nts., Series B, 5/15/04(3) 1,800,000 1,926,000
- -----------------------------------------------------------------------------------------------------------------------
RCN Corp., 10.125% Sr. Unsec. Nts., 1/15/10 5,750,000 5,750,000
- -----------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 9% Sr. Unsec. Sub. Nts., 7/15/07 3,500,000 3,298,750
- -----------------------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Sub. Nts., 11/1/09 6,000,000 6,060,000
- -----------------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 2,850,000 2,714,625
-----------
37,614,208
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Cable/Wireless Video--3.7%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 3,000,000 2,895,000
8.375% Sr. Nts., Series B, 2/1/08 3,700,000 3,450,250
9.875% Sr. Nts., Series B, 3/1/07 3,545,000 3,615,900
</TABLE>
15 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Cable/Wireless Video Continued
Bresnan Communications, Inc.:
0%/9.25% Sr. Disc. Nts., 2/1/09(9) $ 6,350,000 $ 4,413,250
8% Sr. Nts., 2/1/09 1,350,000 1,365,188
- -----------------------------------------------------------------------------------------------------------------------
Charter Communication Holdings LLC/Charter
Communication Holdings Capital Corp.:
0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11(9) 11,750,000 6,947,188
8.25% Sr. Unsec. Nts., 4/1/07 2,000,000 1,855,000
8.625% Sr. Unsec. Nts., 4/1/09 2,000,000 1,857,500
- -----------------------------------------------------------------------------------------------------------------------
Diva Systems Corp., 0%/12.625% Sr. Disc. Nts., Series B, 3/1/08(9) 2,500,000 987,500
- -----------------------------------------------------------------------------------------------------------------------
EchoStar DBS Corp., 9.375% Sr. Unsec. Nts., 2/1/09 17,000,000 17,170,000
- -----------------------------------------------------------------------------------------------------------------------
EchoStar I, 8.25% Bonds, 2/26/01(2) 1,320,455 1,320,456
- -----------------------------------------------------------------------------------------------------------------------
EchoStar II, 8.25% Sinking Fund Bonds, 11/9/01(2) 1,639,485 1,639,485
- -----------------------------------------------------------------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285% Sr. Disc. Debs., Series B, 4/15/10(9) 8,305,000 6,259,894
- -----------------------------------------------------------------------------------------------------------------------
Insight Midwest LP/Insight Capital, Inc., 9.75% Sr. Nts., 10/1/09(7) 2,000,000 2,075,000
- -----------------------------------------------------------------------------------------------------------------------
NTL Communications Corp., 9.875% Sr. Nts., 11/15/09(7) [EUR] 5,200,000 5,272,528
- -----------------------------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 8.75% Sr. Nts., 7/15/07 [CAD] 3,030,000 2,109,255
- -----------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., 0%/10.75% Sr. Disc. Nts., Series B, 2/15/08(9) 6,110,000 3,940,950
-----------
67,174,344
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Diversified Media--3.3%
Ackerley Group, Inc., 9% Sr. Unsec. Sub. Nts., Series B, 1/15/09 5,500,000 5,390,000
- -----------------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 5,900,000 5,251,000
- -----------------------------------------------------------------------------------------------------------------------
IPC Magazines Group plc:
0%/10.75% Bonds, 3/15/08(9) [GBP] 1,650,000 1,032,911
9.625% Bonds, 3/15/08(2) [GBP] 1,000,000 985,456
- -----------------------------------------------------------------------------------------------------------------------
Lamar Media Corp., 9.625% Sr. Unsec. Sub. Nts., 12/1/06 5,065,000 5,191,625
- -----------------------------------------------------------------------------------------------------------------------
Mail-Well Corp., 8.75% Sr. Unsec. Sub. Nts., Series B, 12/15/08 3,335,000 3,184,925
- -----------------------------------------------------------------------------------------------------------------------
Metromedia International Group, Inc., 0%/10.50%
Sr. Unsec. Disc. Nts., 9/30/07(2,9) 793,333 376,833
- -----------------------------------------------------------------------------------------------------------------------
Premier Graphics, Inc., 11.50% Sr. Unsec. Nts., 12/1/05 5,000,000 3,525,000
- -----------------------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc.:
8.875% Sr. Unsec. Sub. Nts., 12/15/10 2,000,000 1,420,000
9.50% Sr. Unsec. Sub. Nts., 6/1/08 5,000,000 3,800,000
- -----------------------------------------------------------------------------------------------------------------------
SFX Entertainment, Inc.:
9.125% Sr. Unsec. Sub. Nts., 12/1/08 8,000,000 7,640,000
9.125% Sr. Unsec. Sub. Nts., Series B, 2/1/08 9,175,000 8,693,313
- -----------------------------------------------------------------------------------------------------------------------
TV Guide, Inc., 8.125% Sr. Unsec. Sub. Nts., 3/1/09 4,000,000 4,010,000
- -----------------------------------------------------------------------------------------------------------------------
World Color Press, Inc., 7.75% Sr. Unsec. Sub. Nts., 2/15/09 3,000,000 2,865,000
- -----------------------------------------------------------------------------------------------------------------------
WRC Media Corp., Units (each unit consists of $1,000 principal
amount of 12.75% sr. sub. nts., 11/15/09 and one warrant
to purchase 1.353 shares of common stock)(7,12) 7,000,000 6,982,500
-----------
60,348,563
</TABLE>
16 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Telecommunications--20.5%
Adelphia Business Solutions, Inc., 12% Sr. Sub. Nts., 11/1/07 $ 7,825,000 $ 8,372,750
- -----------------------------------------------------------------------------------------------------------------------
Allegiance Telecom, Inc., 12.875% Sr. Nts., 5/15/08 1,000,000 1,116,250
- -----------------------------------------------------------------------------------------------------------------------
Amazon.com, Inc., 0%/10% Sr. Unsec. Disc. Nts., 5/1/08(9) 15,500,000 9,920,000
- -----------------------------------------------------------------------------------------------------------------------
COLT Telecom Group plc:
0%/12% Sr. Unsec. Disc. Nts., 12/15/06(9) 850,000 735,250
7.625% Bonds, 7/31/08 [DEM] 4,750,000 2,447,234
8.875% Sr. Nts., 11/30/07 [DEM] 2,295,000 1,234,066
10.125% Sr. Nts., 11/30/07 [GBP] 3,275,000 5,555,304
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)(9,12) 7,055,000 7,160,825
- -----------------------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(9) 5,570,000 5,333,275
- -----------------------------------------------------------------------------------------------------------------------
Concentric Network Corp., 12.75% Sr. Unsec. Nts., 12/15/07 3,065,000 3,241,238
- -----------------------------------------------------------------------------------------------------------------------
Convergent Communications, Inc., 13% Sr. Nts., 4/1/08(13) 1,500,000 1,061,250
- -----------------------------------------------------------------------------------------------------------------------
Covad Communications Group, Inc., 0%/13.50% Sr. Disc. Nts., 3/15/08(9) 13,500,000 8,572,500
- -----------------------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc:
0%/10.75% Sr. Disc. Nts., 2/15/07(9) 700,000 577,500
0%/11.75% Sr. Disc. Nts., 12/15/05(9) 16,675,000 15,841,250
- -----------------------------------------------------------------------------------------------------------------------
Diamond Holdings plc, 9.125% Sr. Nts., 2/1/08 1,400,000 1,393,000
- -----------------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc., 13.75% Sr. Nts., 7/15/07(13) 1,000,000 715,000
- -----------------------------------------------------------------------------------------------------------------------
Equinix, Inc., Units (each unit consists of $1,000 principal
amount of 13% sr. nts., 12/1/07 and one warrant to purchase
11.255 shares of common stock)(7,12) 5,250,000 5,381,250
- -----------------------------------------------------------------------------------------------------------------------
ESAT Telecom Group plc, 11.875% Sr. Unsec. Unsub. Nts., 11/1/09 [EUR] 1,000,000 1,136,527
- -----------------------------------------------------------------------------------------------------------------------
Exodus Communications, Inc.:
10.75% Sr. Nts., 12/15/09(7) [EUR] 5,000,000 5,126,348
11.25% Sr. Nts., 7/1/08 6,725,000 6,977,188
10.75% Sr. Nts., 12/15/09(7) 1,900,000 1,942,750
- -----------------------------------------------------------------------------------------------------------------------
FirstWorld Communications, Inc., 0%/13% Sr. Disc. Nts., 4/15/08(9) 3,500,000 1,942,500
- -----------------------------------------------------------------------------------------------------------------------
Focal Communications Corp., 0%/12.125% Sr. Unsec. Disc. Nts., 2/15/08(9) 4,720,000 3,091,600
- -----------------------------------------------------------------------------------------------------------------------
Global Crossing Ltd., 9.625% Sr. Nts., 5/15/08 5,295,000 5,321,475
- -----------------------------------------------------------------------------------------------------------------------
Global Telesystems Group, Inc., 10.50% Sr. Unsec. Bonds, 12/1/06(7) [EUR] 3,500,000 3,566,429
- -----------------------------------------------------------------------------------------------------------------------
GST Telecommunications, Inc., 0%/13.875% Cv. Sr. Sub. Disc. Nts., 12/15/05(7,9) 1,400,000 1,568,000
- -----------------------------------------------------------------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr. Disc. Nts., 12/15/05(9) 1,160,000 864,200
- -----------------------------------------------------------------------------------------------------------------------
ICG Holdings, Inc., 0%/12.50% Sr. Sec. Disc. Nts., 5/1/06(9) 800,000 602,000
- -----------------------------------------------------------------------------------------------------------------------
ICG Services, Inc., 0%/10% Sr. Exchangeable Unsec. Disc. Nts., 2/15/08(9) 3,985,000 2,122,013
- -----------------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc.:
0%/12.25% Sr. Disc. Nts., Series B, 3/1/09(9) 6,000,000 3,607,500
8.50% Sr. Nts., Series B, 1/15/08 5,895,000 5,423,400
8.60% Sr. Unsec. Nts., Series B, 6/1/08 5,000,000 4,600,000
8.875% Sr. Nts., 11/1/07 4,995,000 4,670,325
- -----------------------------------------------------------------------------------------------------------------------
Jazztel plc, 13.25% Sr. Nts., 12/15/09(7) [EUR] 8,000,000 8,106,550
</TABLE>
17 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Telecommunications Continued
KMC Telecom Holdings, Inc.:
0%/12.50% Sr. Unsec. Disc. Nts., 2/15/08(9) $10,000,000 $ 5,750,000
13.50% Sr. Nts., 5/15/09(7) 1,800,000 1,809,000
- -----------------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc.:
0%/10.50% Sr. Disc. Nts., 12/1/08(9) 11,850,000 7,228,500
9.125% Sr. Unsec. Nts., 5/1/08 2,400,000 2,274,000
- -----------------------------------------------------------------------------------------------------------------------
Long Distance International, Inc., 12.25% Sr. Unsec. Nts., 4/15/08(6) 1,090,000 604,950
- -----------------------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., 8.125% Sr. Unsec. Nts., 2/15/09 1,950,000 1,828,125
- -----------------------------------------------------------------------------------------------------------------------
Metromedia Fiber Network, Inc.:
10% Sr. Nts., 12/15/09 5,000,000 5,150,000
10% Sr. Nts., 12/15/09 [EUR] 2,500,000 2,626,074
10% Sr. Unsec. Nts., Series B, 11/15/08 7,000,000 7,192,500
- -----------------------------------------------------------------------------------------------------------------------
Netia Holdings BV:
0%/11% Sr. Disc. Nts., 11/1/07(9) [DEM] 2,800,000 943,710
0%/11.25% Sr. Disc. Nts., Series B, 11/1/07(9) 1,400,000 913,500
- -----------------------------------------------------------------------------------------------------------------------
Netia Holdings II BV, 13.125% Sr. Nts., 6/15/09 5,525,000 5,566,438
- -----------------------------------------------------------------------------------------------------------------------
NEXTLINK Communications, Inc.:
9.625% Sr. Nts., 10/1/07 9,895,000 9,697,100
10.75% Sr. Unsec. Nts., 11/15/08 6,600,000 6,831,000
10.75% Sr. Unsec. Nts., 6/1/09 1,000,000 1,032,500
- -----------------------------------------------------------------------------------------------------------------------
NTL Communications Corp.:
0%/9.78% Sr. Nts., 11/15/09(7,9) [EUR] 2,750,000 1,629,424
0%/12.375% Sr. Unsec. Nts., Series B, 10/1/08(9) 12,905,000 9,194,813
11.50% Sr. Unsec. Nts., Series B, 10/1/08 7,000,000 7,630,000
- -----------------------------------------------------------------------------------------------------------------------
NTL, Inc.:
0%/9.75% Sr. Deferred Coupon Nts., Series B, 4/1/08(9) 3,995,000 2,776,525
0%/9.75% Sr. Nts., Series B, 4/15/09(9) [GBP] 19,350,000 18,072,156
0%/10.75% Sr. Unsec. Unsub. Nts., Series B, 4/1/08(9) [GBP] 2,955,000 3,161,453
10% Sr. Nts., Series B, 2/15/07 3,930,000 4,057,725
- -----------------------------------------------------------------------------------------------------------------------
Optel, Inc., 13% Sr. Nts., Series B, 2/15/05(5,6) 6,000,000 4,470,000
- -----------------------------------------------------------------------------------------------------------------------
Pratama Datakom Asia BV, 12.75% Gtd. Nts., 7/15/05(7) 4,000,000 770,000
- -----------------------------------------------------------------------------------------------------------------------
PSINet, Inc.:
10% Sr. Unsec. Nts., Series B, 2/15/05 1,000,000 993,750
10.50% Sr. Nts., 12/1/06(7) 1,500,000 1,518,750
10.50% Sr. Nts., 12/1/06(7) [EUR] 3,000,000 3,056,939
11.50% Sr. Unsec. Nts., 11/1/08 10,000,000 10,500,000
- -----------------------------------------------------------------------------------------------------------------------
Qwest Communications International, Inc., 0%/9.47%
Sr. Disc. Nts., 10/15/07(9) 5,520,000 4,498,800
- -----------------------------------------------------------------------------------------------------------------------
RSL Communications plc, 10.50% Gtd. Sr. Nts., 11/15/08 4,800,000 4,536,000
- -----------------------------------------------------------------------------------------------------------------------
Tele1 Europe BV:
11.875% Sr. Nts., 12/1/09(7) [EUR] 4,000,000 4,060,823
3% Sr. Unsec. Nts., 5/15/09(2) [EUR] 3,000,000 3,170,159
</TABLE>
18 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Telecommunications Continued
Telewest Communications plc:
0%/9.25% Sr. Nts., 4/15/09(7,9) $ 7,500,000 $ 4,762,500
0%/9.875% Sr. Nts., 4/15/09(7,9) [GBP] 8,500,000 8,719,667
0%/11% Sr. Disc. Debs., 10/1/07(9) 9,060,000 8,493,750
11.25% Sr. Nts., 11/1/08 6,065,000 6,610,850
- -----------------------------------------------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 2,300,000 2,231,000
- -----------------------------------------------------------------------------------------------------------------------
Time Warner Telecom LLC, 9.75% Sr. Nts., 7/15/08 5,700,000 5,899,500
- -----------------------------------------------------------------------------------------------------------------------
United Pan-Europe Communications NV:
0%/13.375% Sr. Disc. Nts., 11/1/09(7,9) 2,000,000 1,130,000
0%/13.375% Sr. Disc. Nts., 11/1/09(7,9) [EUR] 4,000,000 2,309,687
10.875% Sr. Nts., 8/1/09 [EUR] 250,000 255,059
10.875% Sr. Nts., 8/1/09 12,750,000 12,973,125
11.25% Sr. Nts., 11/1/09(7) [EUR] 2,000,000 2,058,087
- -----------------------------------------------------------------------------------------------------------------------
Verio, Inc.:
10.375% Sr. Unsec. Nts., 4/1/05 5,300,000 5,432,500
10.625% Sr. Nts., 11/15/09(7) 7,000,000 7,210,000
11.25% Sr. Unsec. Nts., 12/1/08 6,100,000 6,435,500
13.50% Sr. Unsec. Nts., 6/15/04 725,000 799,313
- -----------------------------------------------------------------------------------------------------------------------
Versatel Telecom International BV:
11.875% Sr. Nts., 7/15/09 4,000,000 4,080,000
11.875% Sr. Nts., 7/15/09 [EUR] 1,750,000 1,875,677
- -----------------------------------------------------------------------------------------------------------------------
Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 2,925,000 2,917,688
- -----------------------------------------------------------------------------------------------------------------------
WAM!NET, Inc., 0%/13.25% Sr. Unsec. Disc. Nts., Series B, 3/1/05(9) 10,160,000 5,943,600
- -----------------------------------------------------------------------------------------------------------------------
Winstar Equipment Corp., 12.50% Gtd. Sr. Sec. Exchangeable Nts., 3/15/04 2,000,000 2,150,000
- -----------------------------------------------------------------------------------------------------------------------
Worldwide Fiber, Inc., 12% Sr. Nts., 8/1/09(7) 1,700,000 1,759,500
------------
376,918,464
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Wireless Communications--8.5%
Arch Communications, Inc., 12.75% Sr. Nts., 7/1/07 1,400,000 1,114,750
- -----------------------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc., 0%/14% Sr. Disc. Nts., 10/1/07(9) 9,220,000 1,002,675
- -----------------------------------------------------------------------------------------------------------------------
Centennial Cellular Corp., 10.75% Sr. Sub. Nts., 12/15/08 4,000,000 4,300,000
- -----------------------------------------------------------------------------------------------------------------------
Clearnet Communications, Inc., 0%/14.75% Sr. Disc. Nts., 12/15/05(9) 670,000 660,788
- -----------------------------------------------------------------------------------------------------------------------
Crown Castle International Corp.:
0%/10.375% Sr. Disc. Nts., 5/15/11(9) 6,500,000 4,095,000
0%/10.625% Sr. Unsec. Disc. Nts., 11/15/07(9) 8,790,000 6,647,438
9% Sr. Nts., 5/15/11 5,200,000 5,102,500
- -----------------------------------------------------------------------------------------------------------------------
CTI Holdings SA, 0%/11.50% Sr. Deferred Coupon Nts., 4/15/08(9) 4,650,000 2,685,375
- -----------------------------------------------------------------------------------------------------------------------
Dobson Communications Corp., 11.75% Sr. Nts., 4/15/07 1,160,000 1,316,600
- -----------------------------------------------------------------------------------------------------------------------
ICO Global Communications (Holdings) Ltd., Units
(each unit consists of $1,000 principal amount of 15% sr. nts.,
8/1/05 and one warrant to purchase 19.85 shares of common stock)(6,12) 2,800,000 1,302,000
- -----------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd., 9.50% Sr. Nts., 1/15/06 3,525,000 3,190,125
</TABLE>
19 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Media/Entertainment: Wireless Communications Continued
Microcell Telecommunications, Inc.:
0%/11.125% Sr. Disc. Nts., Series B, 10/15/07(9) [CAD] $ 6,405,000 $ 2,976,137
0%/12% Sr. Unsec. Disc. Nts., 6/1/09(9) 7,000,000 4,541,250
0%/14% Sr. Disc. Nts., Series B, 6/1/06(9) 3,900,000 3,461,250
- -----------------------------------------------------------------------------------------------------------------------
Millicom International Cellular SA, 0%/13.50% Sr. Disc. Nts., 6/1/06(9) 1,760,000 1,416,800
- -----------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc.:
0%/9.75% Sr. Disc. Nts., 10/31/07(9) 1,500,000 1,080,000
0%/9.95% Sr. Disc. Nts., 2/15/08(9) 5,690,000 4,011,450
0%/10.65% Sr. Disc. Nts., 9/15/07(9) 4,000,000 3,000,000
9.375% Sr. Nts., 11/15/09(7) 6,000,000 5,910,000
- -----------------------------------------------------------------------------------------------------------------------
Omnipoint Corp.:
11.50% Sr. Nts., 9/15/09(7) 8,865,000 9,574,200
11.625% Sr. Nts., 8/15/06 5,760,000 6,134,400
11.625% Sr. Nts., Series A, 8/15/06 10,095,000 10,751,175
- -----------------------------------------------------------------------------------------------------------------------
ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04 3,775,000 2,736,875
- -----------------------------------------------------------------------------------------------------------------------
Orion Network Systems, Inc., 0%/12.50% Sr. Disc. Nts., 1/15/07(9) 5,310,000 2,469,150
- -----------------------------------------------------------------------------------------------------------------------
Pinnacle Holdings, Inc., 0%/10% Sr. Unsec. Disc. Nts., 3/15/08(9) 9,895,000 6,530,700
- -----------------------------------------------------------------------------------------------------------------------
Polska Telefoniz Cyfrowa International Financial II SA,
11.25% Sr. Sub. Nts., 12/1/09(7) [EUR] 2,750,000 2,802,194
- -----------------------------------------------------------------------------------------------------------------------
Price Communications Wireless, Inc.:
9.125% Sr. Sec. Nts., Series B, 12/15/06 8,000,000 8,140,000
11.75% Sr. Sub. Nts., 7/15/07 4,225,000 4,626,375
- -----------------------------------------------------------------------------------------------------------------------
Rogers Cantel, Inc., 8.80% Sr. Sub. Nts., 10/1/07 5,000,000 5,050,000
- -----------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 6,400,000 6,576,000
- -----------------------------------------------------------------------------------------------------------------------
Satelites Mexicanos SA, 10.125% Sr. Nts., 11/1/04 500,000 341,250
- -----------------------------------------------------------------------------------------------------------------------
SBA Communications Corp., 0%/12% Sr. Unsec. Disc. Nts., 3/1/08(9) 16,320,000 9,710,400
- -----------------------------------------------------------------------------------------------------------------------
Spectrasite Holdings, Inc.:
0%/11.25% Sr. Unsec. Disc. Nts., 4/15/09(9) 5,175,000 2,781,563
0%/12% Sr. Disc. Nts., 7/15/08(9) 7,550,000 4,548,875
- -----------------------------------------------------------------------------------------------------------------------
VoiceStream Wireless Corp., 10.375% Sr. Nts., 11/15/09(7) 15,000,000 15,525,000
------------
156,112,295
- -----------------------------------------------------------------------------------------------------------------------
Metals/Minerals--3.4%
AEI Resources, Inc., 11.50% Sr. Sub. Nts., 12/15/06(7) 3,500,000 2,283,750
- -----------------------------------------------------------------------------------------------------------------------
AK Steel Corp.:
7.875% Sr. Unsec. Nts., 2/15/09 8,000,000 7,600,000
9.125% Sr. Nts., 12/15/06 1,000,000 1,022,500
- -----------------------------------------------------------------------------------------------------------------------
California Steel Industries Corp., 8.50% Sr. Unsec. Nts., Series B, 4/1/09 4,000,000 3,860,000
- -----------------------------------------------------------------------------------------------------------------------
Centaur Mining & Exploration Ltd., 11% Sr. Nts., 12/1/07 5,025,000 5,006,156
- -----------------------------------------------------------------------------------------------------------------------
Great Lakes Carbon Corp., 10.25% Sr. Sub. Nts., Series B, 5/15/08 4,540,000 4,335,700
- -----------------------------------------------------------------------------------------------------------------------
International Utility Structures, Inc., 10.75% Sr. Sub. Nts., 2/1/08 1,400,000 1,183,000
- -----------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 2,975,000 2,989,875
- -----------------------------------------------------------------------------------------------------------------------
Metallurg Holdings, Inc., 0%/12.75% Sr. Disc. Nts., 7/15/08(9) 11,000,000 3,575,000
</TABLE>
20 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Metals/Minerals Continued
Metallurg, Inc., 11% Sr. Nts., 12/1/07 $ 9,585,000 $ 8,674,425
- -----------------------------------------------------------------------------------------------------------------------
National Steel Corp., 9.875% First Mtg. Bonds, Series D, 3/1/09 6,250,000 6,468,750
- -----------------------------------------------------------------------------------------------------------------------
P&L Coal Holdings Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 5,000,000 4,950,000
- -----------------------------------------------------------------------------------------------------------------------
Republic Technologies International Holdings LLC/RTI Capital Corp.,
Units (each unit consists of $1,000 principal amount of 13.75% sr. nts.,
7/15/09 and one warrant to purchase Cl. D common stock at $0.01 per share)(12) 5,000,000 3,325,000
- -----------------------------------------------------------------------------------------------------------------------
WHX Corp., 10.50% Sr. Unsec. Nts., 4/15/05 7,000,000 6,877,500
------------
62,151,656
- -----------------------------------------------------------------------------------------------------------------------
Retail--1.4%
Boyds Collection Ltd. (The), 9% Sr. Unsec. Sub. Nts., Series B, 5/15/08 3,221,000 3,076,055
- -----------------------------------------------------------------------------------------------------------------------
Dura Operating Corp., 9% Sr. Sub. Nts., Series B, 5/1/09 6,500,000 6,158,750
- -----------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 9.125% Sr. Unsec. Sub. Nts., 5/1/08 3,435,000 2,421,675
- -----------------------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., 9% Debs., 5/1/08 6,585,000 6,025,275
- -----------------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 2,100,000 1,953,000
- -----------------------------------------------------------------------------------------------------------------------
Home Interiors & Gifts, Inc., 10.125% Sr. Sub. Nts., 6/1/08 4,000,000 3,440,000
- -----------------------------------------------------------------------------------------------------------------------
Just For Feet, Inc., 11% Sr. Sub. Nts., 5/1/09(6,7) 700,000 38,500
- -----------------------------------------------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 1,600,000 1,560,000
- -----------------------------------------------------------------------------------------------------------------------
United Stationers Supply Co., 12.75% Sr. Sub. Nts., 5/1/05 1,685,000 1,824,013
------------
26,497,268
- -----------------------------------------------------------------------------------------------------------------------
Service--4.1%
Allied Waste North America, Inc.:
7.875% Sr. Unsec. Nts., Series B, 1/1/09 4,400,000 3,910,500
10% Sr. Sub. Nts., 8/1/09(7) 7,250,000 6,525,000
- -----------------------------------------------------------------------------------------------------------------------
American Plumbing & Mechanical, Inc., 11.625% Gtd. Sr. Sub. Nts., 10/15/08(7) 6,500,000 6,223,750
- -----------------------------------------------------------------------------------------------------------------------
Coinstar, Inc., 13% Sr. Disc. Nts., 10/1/06 2,000,000 2,012,500
- -----------------------------------------------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 3,000,000 1,852,500
- -----------------------------------------------------------------------------------------------------------------------
Dura Operating Corp., 9% Sr. Sub. Nts., Series B, 5/1/09 [EUR] 2,500,000 2,371,329
- -----------------------------------------------------------------------------------------------------------------------
Integrated Electric Services, Inc., 9.375% Sr. Sub. Nts., Series B, 2/1/09 3,000,000 2,958,750
- -----------------------------------------------------------------------------------------------------------------------
IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts., Series B, 4/1/09 4,000,000 3,900,000
- -----------------------------------------------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09 10,570,000 10,358,600
- -----------------------------------------------------------------------------------------------------------------------
Norse CBO Ltd., 9.342% Sub. Bonds, Series 1A, Cl. C2, 8/13/10(2) 11,000,000 8,635,000
- -----------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc.:
6.75% Cv. Sr. Sub. Nts., 9/15/03 2,432,000 1,167,360
7.375% Gtd. Sr. Unsec. Nts., 8/15/05 4,700,000 3,760,000
13.625% Sr. Sub. Disc. Nts., 6/30/05 2,300,000 1,460,500
- -----------------------------------------------------------------------------------------------------------------------
Stericycle Inc., 12.375% Sr. Sub. Nts., 11/15/09(7) 4,000,000 4,115,000
- -----------------------------------------------------------------------------------------------------------------------
United Rentals, Inc.:
9% Sr. Unsec. Sub. Nts., Series B, 4/1/09 2,900,000 2,755,000
9.25% Sr. Unsec. Sub. Nts., Series B, 1/15/09 6,500,000 6,272,500
</TABLE>
21 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Service Continued
URS Corp., 12.25% Sr. Sub. Nts., Series B, 5/1/09 $ 3,000,000 $ 3,090,000
- -----------------------------------------------------------------------------------------------------------------------
US Unwired, Inc., 0%/13.375% Sr. Disc. Nts., 11/1/09(7,9) 5,250,000 3,097,500
--------------
74,465,789
- -----------------------------------------------------------------------------------------------------------------------
Transportation--5.0%
Amtran, Inc., 10.50% Sr. Nts., 8/1/04(7) 2,000,000 2,010,000
- -----------------------------------------------------------------------------------------------------------------------
Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 7,000,000 6,545,000
- -----------------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Sr. Unsec. Sub. Nts., 4/15/06 3,000,000 2,977,500
- -----------------------------------------------------------------------------------------------------------------------
Great Lakes Dredge & Dock Corp., 11.25% Sr. Unsec. Sub. Nts., 8/15/08 4,050,000 4,252,500
- -----------------------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc.:
9.125% Sr. Sub. Nts., 7/15/07 1,000,000 982,500
11% Sr. Sub. Nts., 7/15/06 8,625,000 9,056,250
- -----------------------------------------------------------------------------------------------------------------------
HDA Parts System, Inc., 12% Sr. Sub. Nts., 8/1/05 4,100,000 3,751,500
- -----------------------------------------------------------------------------------------------------------------------
Key Plastics, Inc., 10.25% Sr. Sub. Nts., Series B, 3/15/07 2,845,000 1,095,325
- -----------------------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc., Units (each unit consists of $1,000
principal amount of 11.63% first priority ship mtg. sr. sec. nts., 7/15/05
and one warrant to purchase five shares of common stock)(2,3,12) 5,000,000 2,875,000
- -----------------------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc:
10.50% First Priority Ship Mtg. Nts., 6/30/07(7) 6,935,000 3,224,775
Units (each unit consists of $1,000 principal amount of 12%
second priority ship mtg. nts., 6/30/07 and 7.66 warrants)(7,12) 4,620,000 346,500
- -----------------------------------------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr. Unsec. Sub. Nts., Series D, 6/15/07(2) 5,150,000 4,866,750
- -----------------------------------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 11.50% First Preferred Ship Mtg. Nts., 5/30/08(6) 4,000,000 1,540,000
- -----------------------------------------------------------------------------------------------------------------------
Tenneco, Inc., 11.625% Sr. Sub. Nts., 10/15/09(7) 8,250,000 8,456,250
- -----------------------------------------------------------------------------------------------------------------------
Terex Corp., 8.875% Sr. Unsec. Sub. Nts., Series C, 4/1/08 2,000,000 1,900,000
- -----------------------------------------------------------------------------------------------------------------------
TFM SA de CV, 10.25% Sr. Nts., 6/15/07 560,000 516,600
- -----------------------------------------------------------------------------------------------------------------------
Trans World Airlines Lease, 14% Equipment Trust, 7/2/08(2) 1,909,687 1,718,719
- -----------------------------------------------------------------------------------------------------------------------
Trans World Airlines, Inc., 11.50% Sr. Sec. Nts., 12/15/04 11,200,000 7,266,000
- -----------------------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 13.375% Sr. Disc. Nts.,
Series B, 12/15/03 25,515,000 26,152,875
- -----------------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(2) 3,510,635 1,588,562
--------------
91,122,606
- -----------------------------------------------------------------------------------------------------------------------
Utility--0.7%
Calpine Corp., 10.50% Sr. Nts., 5/15/06 2,990,000 3,169,400
- -----------------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Sec. Nts., Series E, 5/1/11 5,550,000 5,942,657
- -----------------------------------------------------------------------------------------------------------------------
Niagara Mohawk Power Corp., 0%/8.50% Sr. Unsec. Nts., Series H, 7/1/10(9) 3,000,000 2,268,315
- -----------------------------------------------------------------------------------------------------------------------
Project Orange Funding Corp., 10.50% Sr. Sec. Nts., 9/15/07(2) 1,500,000 1,500,000
- -----------------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08(7) 135,620 123,415
--------------
13,003,787
--------------
Total Corporate Bonds and Notes (Cost $1,725,072,470) 1,581,569,284
</TABLE>
22 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
=======================================================================================================================
Preferred Stocks--5.7%
AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg.(10) 82,051 $ 1,497,431
- -----------------------------------------------------------------------------------------------------------------------
CGA Group Ltd., Series A(2,5,11) 160,595 4,014,875
- -----------------------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp., 7% Cv., Non-Vtg.(5,7) 72,575 1,877,878
- -----------------------------------------------------------------------------------------------------------------------
Clark USA, Inc., 11.50% Cum. Sr. Exchangeable, Non-Vtg.(10) 3,362 916,145
- -----------------------------------------------------------------------------------------------------------------------
Concentric Network Corp., 13.50% Sr. Redeemable Exchangeable,
Series B, Non-Vtg.(10) 5,384 5,343,625
- -----------------------------------------------------------------------------------------------------------------------
Doane Products Co., 14.25% Exchangeable, Non-Vtg.(2,5) 140,000 6,230,000
- -----------------------------------------------------------------------------------------------------------------------
Dobson Communications Corp.:
12.25% Sr. Exchangeable, Non-Vtg.(10) 5,795 5,838,462
13% Sr. Exchangeable, Non-Vtg.(10) 8,528 9,316,840
- -----------------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg.(10) 3,195 646,987
- -----------------------------------------------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg.(2,5) 28,000 1,295,000
- -----------------------------------------------------------------------------------------------------------------------
Earthwatch, Inc., 12% Cv. Sr., Series C, Non-Vtg.(2) 175,180 437,950
- -----------------------------------------------------------------------------------------------------------------------
Fidelity Federal Bank FSB Glendale California, 12% Non-Cum.
Exchangeable Perpetual, Series A(2) 30 450
- -----------------------------------------------------------------------------------------------------------------------
Global Crossing Ltd., 10.50% Sr. Exchangeable(10) 27,500 2,770,625
- -----------------------------------------------------------------------------------------------------------------------
ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg.(10) 3,349 3,055,963
- -----------------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc.:
13.50% Exchangeable, Series B(10) 3,292 3,234,390
Depositary Shares Representing one one-hundredth 7% Cum. Cv. Jr.,
Series E, Non-Vtg.(7) 84,480 2,872,320
- -----------------------------------------------------------------------------------------------------------------------
International Utility Structures, Inc.:
13%, Non-Vtg.(7,10) 114 94,905
Units (each unit consists of $1,000 principal amount of 13%
sr. exchangeable preferred stock and one warrant to purchase
30 shares of common stock)(2,10,12) 560 499,800
- -----------------------------------------------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable
Preferred Stock, Non-Vtg.(10) 96,993 1,091,171
- -----------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 11.125% Exchangeable , Series E, Non-Vtg.(10) 5,629 5,643,073
- -----------------------------------------------------------------------------------------------------------------------
NEXTLINK Communications, Inc., 14% Cum., Non-Vtg.(10) 160,493 8,626,499
- -----------------------------------------------------------------------------------------------------------------------
Packaging Corp. of America, 12.375%(5,10) 10,580 1,161,155
- -----------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 13.25% Cum. Jr. Exchangeable, Non-Vtg.(10) 481 4,930,250
- -----------------------------------------------------------------------------------------------------------------------
PRIMEDIA, Inc.:
8.625% Exchangeable, Series H, Non-Vtg. 101,200 8,829,700
9.20% Exchangeable, Series F, Non-Vtg. 22,500 2,064,375
- -----------------------------------------------------------------------------------------------------------------------
R&B Falcon Corp., 13.875% Cum., Non-Vtg.(10) 9,667 10,222,853
- -----------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum. Sr., Series B, Non-Vtg.(10) 8,104 8,326,860
- -----------------------------------------------------------------------------------------------------------------------
SF Holdings Group, Inc.:
13.75% Cum. Nts., Series B, 3/15/09, Non-Vtg.(10) 84 422,100
13.75% Exchangeable(7) 17 85,425
- -----------------------------------------------------------------------------------------------------------------------
Star Gas Partners, LP 5,999 79,487
</TABLE>
23 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
=======================================================================================================================
Preferred Stocks Continued
Walden Residential Properties, Inc.:
9.16% Cv., Series B, Non-Vtg. 4,650 $ 112,181
9.20% Sr. 158,950 2,473,659
------------
Total Preferred Stocks (Cost $125,279,952) 104,012,434
=======================================================================================================================
Common Stocks--0.5%
Cablevision Systems Corp.(5) 40,000 3,020,000
- -----------------------------------------------------------------------------------------------------------------------
ECM Fund, LPI(2) 1,350 1,182,937
- -----------------------------------------------------------------------------------------------------------------------
Equitable Bag, Inc.(2,5) 39,357 39,357
- -----------------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc.(5) 1,158 44,945
- -----------------------------------------------------------------------------------------------------------------------
Optel, Inc.(5) 7,425 74
- -----------------------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.(2,5,11) 1,688,400 --
- -----------------------------------------------------------------------------------------------------------------------
Price Communications Corp. 132,700 3,690,719
- -----------------------------------------------------------------------------------------------------------------------
Resorts International, Inc.(5) 187,187 --
- -----------------------------------------------------------------------------------------------------------------------
SF Holdings Group, Inc., Cl. C(5) 3,108 31
- -----------------------------------------------------------------------------------------------------------------------
Siena Holdings, Inc.(5) 239,111 269,001
------------
Total Common Stocks (Cost $3,451,283) 8,247,064
<CAPTION>
Units
<S> <C> <C>
=======================================================================================================================
Rights, Warrants and Certificates--0.7%
Adelphia Business Solutions, Inc. Wts., Exp. 4/15/01(2) 1,090 190,750
- -----------------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Litigation Trust Wts., Exp. 1/31/00(2) 1,045,990 10,460
- -----------------------------------------------------------------------------------------------------------------------
Australis Holdings PTY Ltd./Australia Media Ltd. Wts., Exp. 5/15/00(2) 825 5
- -----------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/15/00(2) 125,000 --
- -----------------------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc. Wts., Exp. 10/1/07(7) 3,407 13,202
- -----------------------------------------------------------------------------------------------------------------------
CGA Group Ltd. Wts.(2,11) 130,000 39,000
- -----------------------------------------------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07(2) 3,330 882,866
- -----------------------------------------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08 8,200 100,450
- -----------------------------------------------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 4,000 --
- -----------------------------------------------------------------------------------------------------------------------
Diva Systems Corp. Wts., Exp. 3/1/08(2) 7,500 60,000
- -----------------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05 2,575 14,003
- -----------------------------------------------------------------------------------------------------------------------
FirstWorld Communications, Inc. Wts., Exp. 4/15/08(2) 3,500 525,437
- -----------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 11/1/02 163,894 1,065,311
- -----------------------------------------------------------------------------------------------------------------------
Globix Corp. Wts., Exp. 5/1/05 7,510 1,802,400
- -----------------------------------------------------------------------------------------------------------------------
Golden State Bancorp, Inc. Wts., Exp. 1/1/01 107,699 94,237
</TABLE>
24 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Units See Note 1
<S> <C> <C>
=======================================================================================================================
Rights, Warrants and Certificates Continued
Gothic Energy Corp. Wts.:
Exp. 1/23/03 80,080 $ --
Exp. 1/23/03(2) 57,200 572
Exp. 5/1/05(2) 118,003 11,800
Exp. 9/1/04(2) 168,000 178,584
- -----------------------------------------------------------------------------------------------------------------------
HF Holdings, Inc. Wts., Exp. 9/27/00(2) 1,445 21,675
- -----------------------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 50,820 627,119
- -----------------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/31/02 6,000 --
- -----------------------------------------------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07(2) 7,055 --
- -----------------------------------------------------------------------------------------------------------------------
KMC Telecom Holdings, Inc. Wts., Exp. 4/15/08(2) 12,340 37,797
- -----------------------------------------------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08(2) 2,800 1,400
- -----------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07(2) 3,910 47,409
- -----------------------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05(2) 6,400 7,200
- -----------------------------------------------------------------------------------------------------------------------
Omnipoint Corp. Wts., Exp. 11/29/00(2) 32,000 3,860,000
- -----------------------------------------------------------------------------------------------------------------------
PLD Telekom, Inc., 9% Cv. Sub. Nts. Wts., Exp. 3/31/03(2) 630 32
- -----------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts.:
Exp. 11/1/03(2) 182,000 318,500
Exp. 6/30/05(2) 49,120 4,912
- -----------------------------------------------------------------------------------------------------------------------
R&B Falcon Corp. Wts., Exp. 5/1/09(2) 9,000 2,250,000
- -----------------------------------------------------------------------------------------------------------------------
Republic Health Corp. Wts., Exp. 4/30/00 3,763 --
- -----------------------------------------------------------------------------------------------------------------------
Rocky Mountain Internet, Inc. Wts., Exp. 7/3/03(2) 24,520 208,427
- -----------------------------------------------------------------------------------------------------------------------
Tele1 Europe BV Wts., Exp. 5/15/09(2) 3,000 513,264
- -----------------------------------------------------------------------------------------------------------------------
Walden Residential Properties, Inc. Wts., Exp. 1/1/02(2) 114,400 1,144
- -----------------------------------------------------------------------------------------------------------------------
WAM!NET, Inc. Wts., Exp. 3/1/05(7) 30,480 681,990
--------------
Total Rights, Warrants and Certificates (Cost $1,869,660) 13,569,946
- -----------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,952,660,193) 98.1% 1,799,914,632
- -----------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.9 34,820,453
-----------------------
Net Assets 100.0% $1,834,735,085
=======================
</TABLE>
25 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP Argentine Peso
CAD Canadian Dollar
DEM German Mark
EUR Euro
GBP British Pound Sterling
IDR Indonesian Rupiah
2. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
3. Represents the current interest rate for a variable or increasing rate
security.
4. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows.
5. Non-income-producing security.
6. Issuer is in default.
7. 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 $232,003,811 or 12.65% of the Fund's net
assets as of December 31, 1999.
8. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
9. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
10. Interest or dividend is paid in kind.
11. 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, 1999.
The aggregate fair value of securities of affiliated companies held by the Fund
as of December 31, 1999, amounts to $4,053,875. Transactions during the period
in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares/Face Shares/Face
June 30, Gross Gross Dec. 31,
1999 Additions Reductions 1999
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Stocks and Warrants
CGA Group Ltd., Series A 160,595 -- -- 160,595
CGA Group Ltd. Wts. 130,000 -- -- 130,000
Pope, Evans & Robbins, Inc. 1,688,400 -- -- 1,688,400
Bonds and Notes
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/98 $5,955,189 -- -- $5,955,189
</TABLE>
12. 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.
13. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
26 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
December 31, 1999
<TABLE>
<S> <C>
===============================================================================================
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,947,530,867) $1,795,860,757
Affiliated companies (cost $5,129,326) 4,053,875
- -----------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts 889
- -----------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 35,575,037
Investments sold 10,102,520
Shares of beneficial interest sold 9,356,595
Other 52,200
--------------
Total assets 1,855,001,873
===============================================================================================
Liabilities
Bank overdraft 11,427,464
- -----------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency exchange contracts 571,835
- -----------------------------------------------------------------------------------------------
Payables and other liabilities:
Dividends 2,195,851
Shares of beneficial interest redeemed 4,151,454
Distribution and service plan fees 1,094,327
Transfer and shareholder servicing agent fees 264,160
Investments purchased 221,857
Trustees' compensation 684
Other 339,156
--------------
Total liabilities 20,266,788
===============================================================================================
Net Assets $1,834,735,085
==============
===============================================================================================
Composition of Net Assets
Paid-in capital $2,171,470,002
- -----------------------------------------------------------------------------------------------
Undistributed net investment income 1,625,246
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (185,030,956)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets
and liabilities denominated in foreign currencies (153,329,207)
--------------
Net assets $1,834,735,085
==============
</TABLE>
27 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Cont'd
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,161,333,141 and 93,279,032 shares of beneficial interest outstanding) $12.45
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $13.07
- -----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $528,593,097
and 42,860,691 shares of beneficial interest outstanding) $12.33
- -----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $89,143,112
and 7,171,520 shares of beneficial interest outstanding) $12.43
- -----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $55,665,735 and 4,493,906 shares of beneficial interest outstanding) $12.39
</TABLE>
See accompanying Notes to Financial Statements.
28 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended December 31, 1999
<TABLE>
<S> <C>
===============================================================================================
Investment Income
Interest $ 96,347,243
- -----------------------------------------------------------------------------------------------
Dividends 6,147,362
------------
Total income 102,494,605
===============================================================================================
Expenses
Management fees 5,613,473
- -----------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,388,725
Class B 2,749,120
Class C 464,190
- -----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 706,047
Class B 330,048
Class C 55,570
Class Y 90,941
- -----------------------------------------------------------------------------------------------
Custodian fees and expenses 23,401
- -----------------------------------------------------------------------------------------------
Trustees' compensation 9,838
- -----------------------------------------------------------------------------------------------
Other 309,402
------------
Total expenses 11,740,755
Less expenses paid indirectly (19,812)
------------
Net expenses 11,720,943
===============================================================================================
Net Investment Income 90,773,662
===============================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (23,636,024)
Closing of futures contracts (332,437)
Foreign currency transactions (1,375,645)
------------
Net realized loss (25,344,106)
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (65,480,445)
Translation of assets and liabilities denominated in foreign currencies (776,214)
------------
Net change (66,256,659)
------------
Net realized and unrealized loss (91,600,765)
===============================================================================================
Net Decrease in Net Assets Resulting from Operations $ (827,103)
============
</TABLE>
See accompanying Notes to Financial Statements.
29 OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Dec. 31, 1999 June 30,
(Unaudited) 1999
<S> <C> <C>
=============================================================================================================
Operations
Net investment income $ 90,773,662 $ 169,801,337
- -------------------------------------------------------------------------------------------------------------
Net realized loss (25,344,106) (51,853,796)
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (66,256,659) (129,580,700)
---------------------------------
Net decrease in net assets resulting from operations (827,103) (11,633,159)
=============================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (57,795,522) (111,798,886)
Class B (24,972,813) (46,977,882)
Class C (4,176,584) (6,828,204)
Class Y (2,766,674) (3,328,108)
=============================================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 10,249,961 70,287,073
Class B (25,081,113) 105,348,488
Class C (18,305) 35,072,177
Class Y 5,326,369 43,279,495
=============================================================================================================
Net Assets
Total increase (decrease) (100,061,784) 73,420,994
- -------------------------------------------------------------------------------------------------------------
Beginning of period 1,934,796,869 1,861,375,875
---------------------------------
End of period (including undistributed net investment
income of $1,625,246 and $563,177, respectively) $1,834,735,085 $1,934,796,869
=================================
</TABLE>
See accompanying Notes to Financial Statements.
30 OPPENHEIMER HIGH YIELD FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Dec. 31, 1999 June 30,
Class A (Unaudited) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
===============================================================================================================================
Per Share Operating Data
Net asset value, beginning of period $13.06 $14.44 $13.98 $13.51 $13.22 $13.63
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .63 1.26 1.24 1.27 1.29 1.30
Net realized and unrealized gain (loss) (.62) (1.39) .43 .43 .27 (.40)
----------------------------------------------------------------------------
Total income (loss) from investment
operations .01 (.13) 1.67 1.70 1.56 .90
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.62) (1.25) (1.21) (1.23) (1.27) (1.30)
Tax return of capital distribution -- -- -- -- -- (.01)
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.62) (1.25) (1.21) (1.23) (1.27) (1.31)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.45 $13.06 $14.44 $13.98 $13.51 $13.22
============================================================================
===============================================================================================================================
Total Return, at Net Asset Value(1) 0.17% (0.71)% 12.34% 13.10% 12.25% 7.09%
===============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,161 $1,208 $1,257 $1,167 $1,084 $1,061
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,166 $1,199 $1,227 $1,128 $1,092 $1,006
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 9.95% 9.40% 8.64% 9.22% 9.59% 9.81%
Expenses 0.99% 0.99% 1.00%(3) 1.00%(3) 1.03%(3) 1.03%(3)
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 43% 117% 126% 105% 94%
</TABLE>
1. Assumes a $1,000 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.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended December 31, 1999, were $269,922,063 and $236,740,331, respectively.
See accompanying Notes to Financial Statements.
31 OPPENHEIMER HIGH YIELD FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Dec. 31, 1999 June 30,
Class B (Unaudited) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
===============================================================================================================================
Per Share Operating Data
Net asset value, beginning of period $12.95 $14.33 $13.88 $13.43 $13.15 $13.57
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .58 1.14 1.11 1.15 1.18 1.20
Net realized and unrealized gain (loss) (.63) (1.38) .44 .43 .27 (.42)
----------------------------------------------------------------------------
Total income (loss) from investment
operations (.05) (.24) 1.55 1.58 1.45 .78
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.57) (1.14) (1.10) (1.13) (1.17) (1.19)
Tax return of capital distribution -- -- -- -- -- (.01)
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.57) (1.14) (1.10) (1.13) (1.17) (1.20)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.33 $12.95 $14.33 $13.88 $13.43 $13.15
============================================================================
===============================================================================================================================
Total Return, at Net Asset Value(1) (0.29)% (1.48)% 11.50% 12.18% 11.40% 6.21%
===============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $529 $580 $528 $397 $280 $192
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $546 $545 $464 $335 $236 $135
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 9.18% 8.61% 7.86% 8.41% 8.75% 8.95%
Expenses 1.75% 1.78% 1.79%(3) 1.80%(3) 1.84%(3) 1.84%(3)
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 43% 117% 126% 105% 94%
</TABLE>
1. Assumes a $1,000 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.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended December 31, 1999, were $269,922,063 and $236,740,331, respectively.
See accompanying Notes to Financial Statements.
32 OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Dec. 31, 1999 June 30,
Class C (Unaudited) 1999 1998 1997 1996(5)
<S> <C> <C> <C> <C> <C>
=========================================================================================================
Per Share Operating Data
Net asset value, beginning of period $13.04 $14.42 $13.97 $13.50 $13.30
- ---------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .58 1.15 1.22 1.14 .77
Net realized and unrealized gain (loss) (.62) (1.39) .33 .45 .19
------------------------------------------------------
Total income (loss) from investment
operations (.04) (.24) 1.55 1.59 .96
- ---------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.57) (1.14) (1.10) (1.12) (.76)
Tax return of capital distribution -- -- -- -- --
------------------------------------------------------
Total dividends and/or distributions
to shareholders (.57) (1.14) (1.10) (1.12) (.76)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.43 $13.04 $14.42 $13.97 $13.50
======================================================
=========================================================================================================
Total Return, at Net Asset Value(1) (0.22)% (1.49)% 11.42% 12.23% 7.36%
=========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $89 $94 $66 $30 $8
- ---------------------------------------------------------------------------------------------------------
Average net assets (in millions) $92 $80 $48 $18 $3
- ---------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 9.18% 8.60% 7.87% 8.40% 8.41%
Expenses 1.76% 1.78% 1.78%(3) 1.82%(3) 1.90%(3)
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 43% 117% 126% 105%
</TABLE>
1. Assumes a $1,000 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.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended December 31, 1999, were $269,922,063 and $236,740,331, respectively.
5. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
See accompanying Notes to Financial Statements.
33 OPPENHEIMER HIGH YIELD FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Dec. 31, 1999 June 30,
Class Y (Unaudited) 1999 1998(6)
<S> <C> <C> <C>
======================================================================================
Per Share Operating Data
Net asset value, beginning of period $13.02 $14.42 $14.48
- --------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .63 1.28 .90
Net realized and unrealized gain (loss) (.61) (1.39) (.08)
------------------------------
Total income (loss) from investment
operations .02 (.11) .82
- --------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.65) (1.29) (.88)
Tax return of capital distribution -- -- --
------------------------------
Total dividends and/or distributions to shareholders (.65) (1.29) (.88)
- --------------------------------------------------------------------------------------
Net asset value, end of period $12.39 $13.02 $14.42
==============================
======================================================================================
Total Return, at Net Asset Value(1) 0.19% (0.54)% 5.81%
======================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $56 $53 $11
- --------------------------------------------------------------------------------------
Average net assets (in millions) $54 $34 $6
- --------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 9.97% 9.73% 9.14%
Expenses 0.97% 0.76% 0.81%(3)
- --------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 43% 117%
</TABLE>
1. Assumes a $1,000 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.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended December 31, 1999, were $269,922,063 and $236,740,331, respectively.
5. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
6. For the period from October 15, 1997 (inception of offering) to June 30,
1998.
See accompanying Notes to Financial Statements.
34 OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
================================================================================
1. Significant Accounting Policies
Oppenheimer High Yield Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek a high level of
current income by investing in a diversified portfolio of high-yield,
lower-rated fixed-income securities the Fund's investment Manager,
OppenheimerFunds, Inc., believes do not involve undue risk. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
an initial sales charge. Class B and Class C shares are sold without an initial
sales charge but may be subject to a contingent deferred sales charge (CDSC).
Class Y shares are sold to certain institutional investors without either a
front-end sales charge or a CDSC. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its own
expenses directly attributable to that class and exclusive voting rights with
respect to matters affecting that class. Classes A, B and C shares have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. 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.
- --------------------------------------------------------------------------------
Securities 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 an
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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign 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.
35 OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
1. Significant Accounting Policies Continued
Structured Notes. The Fund invests in foreign currency-linked structured notes
whose market value and redemption price are linked to foreign currency exchange
rates. The structured notes may be leveraged, which increases the notes'
volatility relative to the face of the security. Fluctuations in value of these
securities are recorded as unrealized gains and losses in the accompanying
financial statements. As of December 31, 1999, the market value of these
securities comprised 1.24% of the Fund's net assets and resulted in realized and
unrealized losses of $1,062,043. The Fund also hedges a portion of the foreign
currency exposure generated by these securities, as discussed in Note 5.
- --------------------------------------------------------------------------------
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. As of December 31, 1999, securities with an
aggregate market value of $15,241,350, representing 0.83% 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 foreign 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.
- --------------------------------------------------------------------------------
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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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.
36 OPPENHEIMER HIGH YIELD FUND
<PAGE>
- --------------------------------------------------------------------------------
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. As of June 30, 1999, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $134,218,000, which expires between 2000 and 2007.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of distributions made during the year from net investment income or
net realized gains may differ from its 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 fiscal year in which
the income or realized gain was recorded by the Fund.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of 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.
37 OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Class A
Sold 18,484,920 $234,640,750 32,012,691 $425,721,467
Dividends and/or distributions
reinvested 2,809,391 35,388,033 5,234,985 69,582,895
Redeemed (20,459,026) (259,778,822) (31,832,727) (425,017,289)
--------------------------------------------------------------
Net increase 835,285 $ 10,249,961 5,414,949 $ 70,287,073
==============================================================
- -------------------------------------------------------------------------------------------------
Class B
Sold 7,831,614 $98,437,490 21,331,218 $282,008,116
Dividends and/or distributions
reinvested 974,426 12,161,161 1,810,370 23,848,743
Redeemed (10,778,282) (135,679,764) (15,125,912) (200,508,371)
--------------------------------------------------------------
Net increase (decrease) (1,972,242) $(25,081,113) 8,015,676 $105,348,488
==============================================================
- -------------------------------------------------------------------------------------------------
Class C
Sold 2,360,575 $ 29,842,581 5,602,995 $ 74,516,748
Dividends and/or distributions
reinvested 189,621 2,384,230 325,453 4,315,117
Redeemed (2,554,728) (32,245,116) (3,294,631) (43,759,688)
--------------------------------------------------------------
Net increase (decrease) (4,532) $ (18,305) 2,633,817 $ 35,072,177
==============================================================
- -------------------------------------------------------------------------------------------------
Class Y
Sold 683,903 $ 8,582,523 3,704,375 $ 48,757,945
Dividends and/or distributions
reinvested 227,750 2,858,453 244,820 3,235,007
Redeemed (486,888) (6,114,607) (660,742) (8,713,457)
--------------------------------------------------------------
Net increase 424,765 $ 5,326,369 3,288,453 $ 43,279,495
==============================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of December 31, 1999, net unrealized depreciation on securities of
$152,745,561 was composed of gross appreciation of $49,825,653, and gross
depreciation of $202,571,214.
38 OPPENHEIMER HIGH YIELD FUND
<PAGE>
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management Fees. 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% of
the first $200 million of average annual net assets, 0.72% of the next $200
million, 0.69% of the next $200 million, 0.66% of the next $200 million, 0.60%
of the next $200 million and 0.50% of average annual net assets over $1 billion.
The Fund's management fee for the six months ended December 31, 1999, was 0.60%
of the average annual net assets for each class of shares, annualized for
periods of less than one full year.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Six Months Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
December 31, 1999 $1,413,423 $260,083 $63,512 $1,751,094 $133,086
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Six Months Ended Retained by Distributor Retained by Distributor Retained by Distributor
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
December 31, 1999 $6,487 $903,299 $20,647
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
39 OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
4. Management Fees and Other Transactions with Affiliates Continued
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares purchased. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the six months ended December 31, 1999,
payments under the Class A Plan totaled $1,388,725, all of which was paid by the
Distributor to recipients. That included $29,633 paid to an affiliate of the
Manager. Any unreimbursed expenses the Distributor incurs with respect to Class
A shares in any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended December 31,
1999, were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Class B Plan $2,749,120 $2,278,025 $16,764,373 3.17%
Class C Plan 464,190 255,423 1,390,881 1.56
</TABLE>
40 OPPENHEIMER HIGH YIELD FUND
<PAGE>
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. Risks to the Fund include the potential
inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
As of December 31, 1999, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Expiration Contract Valuation as of Unrealized Unrealized
Contract Description Date Amount (000s) Dec. 31, 1999 Appreciation Depreciation
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Contracts to Sell
Canadian Dollar (CAD) 6/1/00 CAD 7,485 $ 5,190,280 $ -- $ 91,504
British Pound Sterling (GBP) 6/2/00-6/5/00 GBP 21,745 35,117,267 -- 480,331
British Pound Sterling (GBP) 3/13/00 GBP 95 153,484 889 --
---------------------------
Total Unrealized Appreciation and Depreciation $889 $571,835
===========================
</TABLE>
================================================================================
6. Futures Contracts
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to protect against changes in interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount 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 may recognize a realized gain or loss when the contract is
closed or expires.
41 OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
6. Futures Contracts Continued
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 and/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.
================================================================================
7. Illiquid or Restricted Securities
As of December 31, 1999, 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 also 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
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of December 31, 1999, was $108,365,495,
which represents 5.91% of the Fund's net assets, of which $13,770,815 is
considered restricted. Information concerning restricted securities is as
follows:
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Date Cost Per Unit Dec. 31, 1999
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
Bonds
TAG Heuer International SA, 12% Sr. 12/8/1995- 100.00%-
Sub. Nts., 12/15/05 5/14/96 105.25% 109.66%
- --------------------------------------------------------------------------------------------
Trans World Airlines Lease, 14%
Equipment Trust, 7/2/08 3/19/98 101.00 90.00
Stocks and Warrants
Becker Gaming, Inc. Wts., Exp. 11/15/00 11/18/93 $ 2.00 $ --
- --------------------------------------------------------------------------------------------
CGA Group Ltd. Preferred Stock, Series A 6/17/97 25.00 25.00
- --------------------------------------------------------------------------------------------
CGA Group Ltd. Wts. 6/17/97 -- 0.30
- --------------------------------------------------------------------------------------------
ECM Fund, LPI 4/14/92 1,000.00 876.25
- --------------------------------------------------------------------------------------------
Omnipoint Corp. Wts., Exp. 11/29/00 11/29/95 -- 120.63
</TABLE>
42 OPPENHEIMER HIGH YIELD FUND
<PAGE>
================================================================================
8. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings during the six months ended December 31, 1999.
43 OPPENHEIMER HIGH YIELD FUND
<PAGE>
OPPENHEIMER HIGH YIELD FUND
================================================================================
Officers and Trustees James C. Swain, Trustee and Chairman of the Board
Bridget A. Macaskill, Trustee and President
William H. Armstrong, Trustee
Robert G. Avis, Trustee
William A. Baker, Trustee
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
David P. Negri, Vice President
Thomas P. Reedy, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors Deloitte & Touche LLP
================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been
taken from the records of the Fund without
examination of 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, are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
44 OPPENHEIMER HIGH YIELD FUND
<PAGE>
OPPENHEIMERFUNDS FAMILY
<TABLE>
<S> <C> <C>
=======================================================================================================
Global Equity
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
=======================================================================================================
Equity
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
=======================================================================================================
Fixed Income
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
=======================================================================================================
Money Market(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
45 OPPENHEIMER HIGH YIELD FUND
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to
help.
- --------------------------------------------------------------------------------
Internet
24-hr access to account information and transactions
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- --------------------------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
- --------------------------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on the economy and issues that
may affect your investments
1.800.835.3104
- --------------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
[Logo] OppenheimerFunds(R)
Distributor, Inc.
RS0280.001.1299 February 29, 2000
