[photo of skyscrapers]
Annual Report June 30, 2000
Oppenheimer
High Yield Fund
[logo]
OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
Higher interest rates and economic uncertainty have created a credit crunch in
the high-yield market, causing prices to fall.
High-yield bonds are currently providing unusually high yields compared to
investment-grade bonds.
The Fund has focused on well-capitalized growth companies, primarily in the
technology, and telecommunications industries.
Contents
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
12 Financial
Statements
48 Independent
Auditors' Report
49 Federal
Income Tax
Information
50 Officers and Trustees
Average Annual
Total Returns*
For the 1-Year Period
Ended 6/30/00
Class A
Without With
Sales Chg. Sales Chg.
------------------------
0.71% -4.07%
Class B
Without With
Sales Chg. Sales Chg.
------------------------
-0.13% -4.67%
Class C
Without With
Sales Chg. Sales Chg.
------------------------
-0.06% -0.97%
Class Y
Without With
Sales Chg. Sales Chg.
------------------------
0.85% 0.85%
* See page 10 for further details.
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000, in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks and
bonds. In a dramatic decline, previously high-flying technology stocks generally
fell to more reasonable valuations. At the same time, long-neglected value
stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully
[photos]
James C. Swain
Chairman
Oppenheimer
High Yield Fund
Bridget A. Macaskill
President
Oppenheimer
High Yield Fund
1 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
PRESIDENT'S LETTER
designed as long-term investments to help individuals and families progress
toward significant financial goals. In general, short-term trading is risky and
may compromise a well planned financial strategy. It may also result in
unforeseen adverse consequences, such as unnecessarily high tax bills.
We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to monitor
areas of opportunity in the arenas in which your fund invests, as the effects of
today's changing investment environment take hold. Knowing what's going on in
the world's economies, markets and companies--and making investment decisions
designed to try to take advantage of them over the long term--is central to what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
July 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.
Stocks and bonds have different types of investment risks; stocks are subject to
market volatility and bonds are subject to credit and interest rate risks.
2 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Q How did Oppenheimer High Yield Fund perform over the one-year period that
ended June 30, 2000?
A. The Fund's performance over the past 12 months reflected a very challenging
investment environment. First, rising interest rates eroded the prices of most
bond-market sectors, especially the riskier, higher-income sectors such as
high-yield bonds. Second, high-yield bonds were adversely affected by their own,
unique influences, including a higher-than-usual default rate of approximately
five percent. Finally, because high-yield bonds respond to changes in their
issuers' stock prices, the high-yield market was generally hurt by the decline
of the Nasdaq stock market during March and April, 2000.
Has the income from high-yield bonds compensated investors for the risks of the
current environment?
Yes. In fact, the differences in yield between long-term high-yield bonds and
long-term U.S. Treasury securities recently reached very wide levels compared to
historical norms. This is the case because bonds rated below "investment grade"
are attempting to attract investors by paying unusually high rates of interest,
relative to the safest bonds available. As of June 30, the yield difference, or
spread, was approximately 1.5 percentage points above the long-term averages. We
believe that these wide spreads make high-yield bonds very attractive to income-
oriented investors who can tolerate short-term price volatility.
[photo]
Portfolio Management
Team (l to r)
David Negri
Thomas Reedy
3 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
What economic forces most affected the high-yield bond market and the Fund?
Rising interest rates were partly responsible for the relative underperformance
of high-yield bonds over the past year. Because higher interest rates tend to
increase borrowing costs for companies that finance their operations and growth
through the bond market, investors were concerned that higher interest rates
might reduce earnings for these companies.
Of course, interest rates have been rising because of concerns that the U.S.
economy may be growing too quickly, potentially re-igniting long-dormant
inflationary pressures. To ease these pressures, the Federal Reserve Board (the
Fed) has raised key short-term interest rates five times during the 12-month
reporting period. Including the single rate hike implemented just before the
reporting period began, the Fed has raised interest rates by a total of 1.75
percentage points.
In addition, high-yield bond issuers have been adversely affected by
more-stringent loan requirements from many lenders, which have made credit
scarce in both the banking system and public markets. This development is bad
for companies that need to borrow to refinance maturing debt. In addition, many
high-yield bond issuers are in high-growth sectors of the economy, such as
telecommunications, technology and media, which need ongoing access to credit to
build the physical facilities required by their business models. As a result,
these companies are highly vulnerable to any market forces that threaten to
curtail their access to capital.
How was the Fund managed in this market environment?
We have focused primarily on the market's high-growth sectors, including
telecommunications, technology and media companies. Within these areas, we've
emphasized companies that have relatively strong balance sheets. For example,
many cellular communications companies are still growing, but have already
completed the bulk of their infrastructure investments. By contrast,
[callout]
"Rising interest
rates were partly
responsible for
the relative
underperformance
of high-yield bonds
over the past year."
4 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
some land-line telecommunications companies that are betting on new growth in
the Internet are in a much earlier stage of development, and tend not to have
fully funded business plans. For the Fund, our current strategy represents a
relatively conservative shift within an aggressive area of the market.
In addition, we have generally avoided healthcare companies, especially
long-term care facilities such as nursing homes. Some of the companies in this
industry group have defaulted on their high-yield debt because of financial
problems caused by reduced Medicare reimbursements. We have also had less
exposure than the overall market to the basic manufacturing sector, such as
paper, chemical and steel companies. Our relatively light position in these
sectors helped the Fund's performance last year, when the international
operations of these companies were feeling pressure from economic weakness
overseas. However, when their bond prices later rebounded during the reporting
period, the Fund's returns were also hurt by the investments we did not own.
What is your outlook for the future?
While we have been frustrated by the extent to which the high-yield bond market
has been out of favor, we are encouraged that historically wide spreads may
attract interest from investors who are no longer receiving spectacular results
in the stock market. Nonetheless, the economic environment remains uncertain,
and we do not expect any lasting recovery to take place until the success of the
Federal Reserve Board's inflation-fighting strategy becomes more evident.
Average Annual
Total Returns
For the Periods Ended 6/30/00(1)
Class A
1-Year 5-Year 10-Year
-----------------------------
-4.07% 6.32% 9.13%
Class B Since
1-Year 5-Year Inception
-----------------------------
-4.67% 6.23% 6.81%
Class C Since
1-Year 5-Year Inception
-----------------------------
-0.97% N/A 6.16%
Class Y Since
1-Year 5-Year Inception
-----------------------------
0.85% N/A 2.23%
-----------------------------
Standardized Yields(2)
For the 30 Days Ended 6/30/00
-----------------------------
Class A 11.11%
-----------------------------
Class B 10.89
-----------------------------
Class C 10.88
-----------------------------
Class Y 12.05
1. See page 10 for further details.
2. Standardized yield is based on net investment income for the 30-day period
ended June 30, 2000. Falling share prices will tend to artificially raise
yields.
5 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
In the meantime, high-yield bonds are providing attractive levels of income;
and, in our opinion, their prices are reflecting a worst-case economic scenario.
Having the patience and discipline to take advantage of temporary market
weaknesses is an important part of what makes OppenheimerFunds The Right Way to
Invest.
Credit Allocation(3)
[pie chart]
Treasury/
Agency 1.16%
AAA/BBB 2.03
BB+/B- 78.87
CCC+/C 9.50
Other
Securities 8.44
Corporate Bonds & Notes--Top Ten Industries(4)
-----------------------------------------------------------
Media/Entertainment: Telecommunications 14.5%
-----------------------------------------------------------
Media/Entertainment: Wireless Communications 10.3
-----------------------------------------------------------
Media/Entertainment: Cable/Wireless Video 9.1
-----------------------------------------------------------
Transportation 5.5
-----------------------------------------------------------
Gaming/Leisure 5.1
-----------------------------------------------------------
Energy 4.8
-----------------------------------------------------------
Service 4.2
-----------------------------------------------------------
Media/Entertainment: Diversified Media 3.3
-----------------------------------------------------------
Information Technology 3.1
-----------------------------------------------------------
Metals/Minerals 2.9
3. Portfolio is subject to change. Percentages are as of June 30, 2000, and are
based on total market value of investments.
4. Portfolio is subject to change. Percentages are as of June 30, 2000, and are
based on net assets.
6 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
FUND PERFORMANCE
How has the Fund performed? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended June 30, 2000, followed by a graphical
comparison of the Fund's performance to appropriate broad-based market indices.
Management's discussion of performance. During the Fund's fiscal year that ended
June 30, 2000, the Fund posted negative returns. The Fund's performance was
strongly influenced by adverse economic and market conditions, including
inflation fears, rising interest rates, lack of available credit and rising
default rates among high-yield bond issuers. However, the deleterious effects of
these influences were partly offset by the management team's focus on
technology, telecommunications and media companies with fully funded business
plans and strong balance sheets. In the portfolio managers' opinion, high-yield
bonds are currently providing highly competitive levels of income compared to
historical norms, and may represent attractive values if the U.S. economy slows
enough to relieve inflationary pressures without entering recession. The Fund's
portfolio holdings, allocations and investment style are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each Class of shares of the
Fund held until June 30, 2000. In the case of Class A shares, performance is
measured over a ten-year period. In the case of Class B shares, performance is
measured from the inception of the Class on May 3, 1993, and in the case of
Class C shares, from the inception of the Class on November 1, 1995, and in the
case of Class Y shares, performance is measured from inception of the class on
October 15, 1997. The Funds performance reflects the deduction of the maximum
initial sales charge on Class A shares and the applicable contingent deferred
sales charge for Class B and Class C shares. The graphs assume that all
dividends and capital gains distributions were reinvested in additional shares.
The Fund's performance is compared to the performance of the Merrill Lynch
High Yield Bond Master Index and Lehman Brothers Corporate Bond Index. The
Merrill Lynch High Yield Bond Master Index is an index of below investment grade
(ratings are generally comparable to below BBB of S&P) U.S. corporate issuers.
It is widely recognized as a measure of the U.S. corporate high yield bond
market. The Lehman Brothers Corporate Bond Index is an unmanaged index of
publicly-issued nonconvertible investment grade corporate debt of U.S. issuers,
widely recognized as a measure of the U.S. fixed-rate corporate bond market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Funds performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Funds performance, it
must be noted that the Funds investments are not limited to the investments in
the index.
7 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
FUND PERFORMANCE
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[line chart]
<TABLE>
<CAPTION>
Oppenheimer High Yield Merrill Lynch High Yield Lehman Brothers Corporate
Fund (Class A) Bond Master Index Bond Index
<S> <C> <C> <C>
6/30/90 9525 10000 10000
9137 9393 9998
12/31/90 9007 9365 10393
10173 10641 10837
6/30/91 10659 11296 11052
11186 11961 11701
12/31/91 11583 12603 12317
12453 13554 12227
6/30/92 12797 14043 12759
13154 14682 13404
12/31/92 13187 14892 13388
14076 15817 14063
6/30/93 14756 16448 14532
15060 16866 15037
12/30/93 15900 17450 15015
15693 17128 14487
6/30/94 15682 16929 14259
15809 17160 14363
12/31/94 15525 17247 14425
16023 18288 15279
6/30/95 16793 19448 16416
17289 20016 16803
12/31/95 17865 20681 17634
18503 20983 17178
6/30/96 18850 21270 17255
19686 22100 17601
12/31/96 20411 22970 18213
20397 23210 18030
6/30/97 21319 24312 18772
22414 25263 19507
12/31/97 22845 25915 20077
23842 26638 20383
6/30/98 23951 27084 20909
22179 26115 21667
12/31/98 22869 26665 21798
23731 27155 21643
6/30/99 23782 27337 21304
23471 26996 21364
12/31/99 23822 27287 21372
23507 26795 21677
6/30/00 23950 26963 21944
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 6/30/00(1)
1-Year -4.07% 5-Year 6.32% 10-Year 9.13%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[line chart]
<TABLE>
<CAPTION>
Oppenheimer High Yield Merrill Lynch High Yield Lehman Brothers Corporate
Fund (Class B) Bond Master Index Bond Index
<S> <C> <C> <C>
5/3/93 10000 10000 10000
6/30/93 10355 10399 10255
9/30/93 10545 10663 10611
12/31/93 11114 11033 10596
10932 10829 10223
6/30/94 10905 10703 10062
10971 10849 10135
12/31/94 10752 10904 10179
11077 11562 10782
6/30/95 11581 12296 11584
11893 12655 11857
12/31/95 12269 13076 12443
12686 13266 12122
6/30/96 12901 13448 12176
13442 13973 12420
12/31/96 13914 14522 12852
13878 14675 12723
6/30/97 14472 15371 13247
15182 15973 13765
12/31/97 15447 16385 14167
16084 16842 14384
6/30/98 16137 17124 14754
14904 16511 15289
12/31/98 15342 16985 15382
15881 17169 15272
6/30/99 15908 17284 15033
15700 17068 15076
12/31/99 15935 17252 15081
15725 16941 15296
6/30/00 16021 17047 15485
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 6/30/00(1)
1-Year -4.67% 5-Year 6.23% Life 6.81%
1. See page 10 for further details.
8 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[line chart]
<TABLE>
<CAPTION>
Oppenheimer High Yield Merrill Lynch High Yield Lehman Brothers Corporate
Fund (Class C) Bond Master Index Bond Index
<S> <C> <C> <C>
11/1/95 10000 10000 10000
10215 10332 10359
10558 10483 10092
6/30/96 10733 10627 10137
11179 11041 10340
11577 11476 10700
11546 11596 10592
6/30/97 12046 12146 11028
12624 12622 11460
12850 12947 11795
13386 13308 11975
6/30/98 13420 13531 12283
12401 13047 12729
12763 13422 12806
13218 13567 12715
6/30/99 13222 13658 12516
13023 13487 12551
13192 13633 12555
12992 13387 12735
6/30/00 13213 13471 12892
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 6/30/00(1)
1-Year -0.97% Life 6.16%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[line chart]
<TABLE>
<CAPTION>
Oppenheimer High Yield Merrill Lynch High Yield Lehman Brothers Corporate
Fund (Class Y) Bond Master Index Bond Index
<S> <C> <C> <C>
10/15/97 10000 10000 10000
10076 10258 10292
10515 10544 10449
6/30/98 10579 10721 10718
9796 10337 11107
10109 10634 11174
10491 10749 11095
6/30/99 10522 10821 10921
10385 10686 10952
10543 10801 10956
10404 10606 11112
6/30/00 10612 10673 11249
</TABLE>
Average Annual Total Return of Class Y Shares of the Fund at 6/30/00(1)
1-Year 0.85% Life 2.23%
The performance information for both indices in the graph begins on 6/30/90 for
Class A, 4/30/93 for Class B, 10/31/95 for Class C and 9/30/97 for Class Y.
Past performance is not predictive of future performance. Graphs are not drawn
to same scale.
9 | 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. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
short-term changes and current performance may be less than the results shown.
For quarterly updates on the Fund's performance, please contact your financial
advisor, call us at 1.800.525.7048 or visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
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 2% (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 calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Financials
11 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS June 30, 2000
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
===========================================================================================================
<S> <C> <C>
Mortgage-Backed Obligations--2.9%
AMRESCO Commercial Mortgage Funding I Corp., Multiclass Mtg
Pass-Through Certificates, Series 1997-C1, Cl. H, 7%, 6/17/29(1) $ 840,000 $ 625,669
-----------------------------------------------------------------------------------------------------------
Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates,
Series 1997-D4, Cl. B3, 7.525%, 4/14/29(2) 1,500,000 1,005,234
-----------------------------------------------------------------------------------------------------------
CBA Mortgage Corp., Mtg. Pass-Through Certificates, Series 1993-C1,
Cl. E, 6.72%, 12/25/03(1,2) 1,452,000 1,247,813
-----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only
Stripped Mtg.-Backed Security:
Series 194, Cl. IO, 11.33%, 4/1/28(3) 29,393,008 9,389,688
Series 197, Cl. IO, 11.25%, 4/1/28(3) 17,503,534 5,469,854
Series 199, Cl. IO, 18.28%, 8/1/28(3) 13,041,068 4,256,686
-----------------------------------------------------------------------------------------------------------
First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through
Certificates, Series 1997, Cl. E, 8.083%, 2/25/11(1,2) 4,500,000 3,290,625
-----------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., Collateralized Mtg. Obligations,
Series 1997-C2, Cl. F, 6.75%, 4/16/29 3,000,000 1,771,406
-----------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., Commercial Mtg. Securities, Inc.,
Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed
Security, Series 1997-C1, Cl. X, 8.41%, 7/15/27(3) 70,716,574 5,370,040
-----------------------------------------------------------------------------------------------------------
Goldman Sachs Asset Management, Sub. Collateralized Bond
Obligations, Series 1A, Cl. D, 12.54%, 6/13/11(1) 2,000,000 1,920,000
-----------------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through Certificates:
Series 1997-RR, Cl. D, 7.766%, 4/30/39(1) 5,000,269 3,711,919
Series 1997-RR, Cl. F, 7.766%, 4/30/39(1) 8,000,430 4,457,740
-----------------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1997-MC1, Cl. F, 7.452%, 5/20/07(1) 1,400,000 1,149,750
-----------------------------------------------------------------------------------------------------------
Project Orange Funding LP/Project Orange Capital Corp.,
Sr. Sec. Nts., 10.50%, 9/15/07(1) 1,451,250 1,567,350
-----------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,
Series 1995-C1, Cl. F, 6.90%, 2/25/27 1,024,212 928,673
-----------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII, Commercial Mtg
Pass-Through Certificates, Series 1996-C1, Cl. E1, 8.888%, 1/20/06 2,496,000 2,274,480
-----------
Total Mortgage-Backed Obligations (Cost $51,889,509) 48,436,927
===========================================================================================================
Foreign Government Obligations--0.2%
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Series I, 2.807%, 4/1/07(2) [ARP] 188,107 129,633
-----------------------------------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, Series PBA1, 2.807%, 4/1/07(2) [ARP] 2,168,603 1,476,713
-----------------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears Bonds, 7.063%, 7/28/11(2) 2,650,000 2,123,312
-----------------------------------------------------------------------------------------------------------
Perusahaan Listr Nts., 17%, 8/21/01 [IDR] 1,000,000,000 113,111
-----------------------------------------------------------------------------------------------------------
PT Hutama Karya Medium-Term Nts., Zero Coupon, 3/17/1999(1,4,5) [IDR] 4,000,000,000 125,678
-----------
Total Foreign Government Obligations (Cost $4,705,003) 3,968,447
12 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
===========================================================================================================
Loan Participations--1.3%
Bank Rakyat Loan Participation Nts., Series 2 yr., 9.375%, 8/25/00(1,2) $ 1,000,000 $ 985,000
-----------------------------------------------------------------------------------------------------------
Bank Rakyat Loan Participation Nts., Series 3 yr., 9.625%, 8/25/01(1,2) 2,500,000 2,281,250
-----------------------------------------------------------------------------------------------------------
Bank Rakyat Loan Participation Nts., Series 4 yr., 9.875%, 8/25/02(1,2) 500,000 431,250
-----------------------------------------------------------------------------------------------------------
Shoshone Partners Loan Trust Sr. Nts., 8.252%, 4/28/02 (representing a
basket of reference loans and a total return swap between Chase
Manhattan Bank and the Trust)(1,2) 23,200,000 17,838,727
-----------
Total Loan Participations (Cost $26,881,066) 21,536,227
===========================================================================================================
Corporate Bonds and Notes--83.7%
-----------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.1%
BE Aerospace, Inc., 9.50% Sr. Unsec. Sub. Nts., 11/1/08(6) 4,500,000 4,162,500
-----------------------------------------------------------------------------------------------------------
Constellation Finance LLC, 9.80% Airline Receivable Asset-Backed
Nts., Series 1997-1, 1/1/01(1) 3,000,000 2,790,000
-----------------------------------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 4,000,000 3,555,000
-----------------------------------------------------------------------------------------------------------
Fairchild Corp., 10.75% Sr. Unsec. Sub. Nts., 4/15/09 6,000,000 4,185,000
-----------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd., 9.50% Sr. Nts., 1/15/06 3,000,000 2,190,000
-----------------------------------------------------------------------------------------------------------
Pegasus Aircraft Lease Securitization Trust Sr. Nts., Series 1997-A, Cl. B,
11.76%, 6/15/04(1) 1,943,214 1,976,832
-----------
18,859,332
-----------------------------------------------------------------------------------------------------------
Chemicals--2.8%
Avecia Group plc, 11% Sr. Unsec. Nts., 7/1/09 4,200,000 4,137,000
-----------------------------------------------------------------------------------------------------------
ClimaChem, Inc., 10.75% Sr. Unsec. Nts., Series B, 12/1/07 2,000,000 510,000
-----------------------------------------------------------------------------------------------------------
Georgia Gulf Corp., 10.375% Sr. Sub. Nts., 11/1/077 1,500,000 1,567,500
-----------------------------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc:
10.125% Sr. Unsec. Sub. Nts., 7/1/09 3,000,000 3,037,500
10.125% Sr. Unsec. Sub. Nts., 7/1/09 [EUR] 2,700,000 2,685,278
Zero Coupon Sr. Unsec. Disc. Nts., 13.088%, 12/31/09(8) 11,200,000 3,752,000
-----------------------------------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.625% Sr. Sec. Nts., Series A, 5/1/07 2,500,000 2,468,750
9.875% Sec. Nts., Series B, 5/1/07 2,000,000 1,980,000
10.875% Sr. Sub. Nts., 5/1/09 3,000,000 2,992,500
-----------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03(9) 8,000,000 8,200,000
-----------------------------------------------------------------------------------------------------------
PCI Chemicals Canada, Inc., 9.25% Sec. Nts., 10/15/07(1) 1,000,000 625,000
-----------------------------------------------------------------------------------------------------------
Pioneer Americas Acquisition Corp., 9.25% Sr. Nts., 6/15/07 3,000,000 1,995,000
-----------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 2,000,000 1,710,000
-----------------------------------------------------------------------------------------------------------
Royster-Clark, Inc., 10.25% First Mtg. Nts., 4/1/09 3,900,000 3,198,000
-----------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
11.75% Sr. Unsec. Sub. Nts., 8/15/06(9) 4,100,000 3,382,500
12.375% Sr. Sec. Nts., Series B, 7/15/06 3,700,000 3,774,000
-----------
46,015,028
13 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Consumer Durables--0.5%
Boyds Collection Ltd. (The), 9% Sr. Unsec. Sub. Nts., Series B, 5/15/08 $ 3,221,000 $ 2,850,585
-----------------------------------------------------------------------------------------------------------
Holmes Products Corp., 9.875% Sr. Sub. Nts., Series C, 11/15/07 1,000,000 705,000
-----------------------------------------------------------------------------------------------------------
Home Interiors & Gifts, Inc., 10.125% Sr. Sub. Nts., 6/1/08(1) 2,000,000 1,150,000
-----------------------------------------------------------------------------------------------------------
Icon Health & Fitness, Inc., 12% Unsec. Nts., 7/15/05(1) 151,000 98,150
-----------------------------------------------------------------------------------------------------------
TAG Heuer International SA, 12% Sr. Sub. Nts., 12/15/05(1) 2,695,000 2,900,790
-----------
7,704,525
-----------------------------------------------------------------------------------------------------------
Consumer Non-Durables--1.4%
AKI Holdings, Inc., 0%/13.50% Sr. Disc. Debs., 7/1/09(10) 2,520,000 1,203,300
-----------------------------------------------------------------------------------------------------------
AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 4,200,000 3,339,000
-----------------------------------------------------------------------------------------------------------
Bell Sports, Inc., 11% Sr. Unsec. Sub. Nts., Series B, 8/15/08 4,675,000 4,675,000
-----------------------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Sr. Sub. Nts., Series B, 10/1/03 3,780,000 3,458,700
-----------------------------------------------------------------------------------------------------------
Globe Manufacturing Corp., 10% Sr. Unsec. Sub. Nts., Series B, 8/1/08(1) 3,500,000 402,500
-----------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/1998(1,4,5,13) 5,955,189 --
-----------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp.:
8.625% Sr. Unsec. Sub. Nts., 2/1/08 1,000,000 510,000
9% Sr. Nts., 11/1/06 4,515,000 3,273,375
-----------------------------------------------------------------------------------------------------------
Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 6,500,000 6,435,000
-----------------------------------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08 1,200,000 126,000
-----------
23,422,875
-----------------------------------------------------------------------------------------------------------
Energy--4.8%
Chesapeake Energy Corp.:
9.125% Sr. Unsec. Nts., 4/15/06 3,227,000 3,033,380
9.625% Sr. Unsec. Nts., Series B, 5/1/05 5,750,000 5,606,250
-----------------------------------------------------------------------------------------------------------
Clark Refinancing & Marketing, Inc., 8.875% Sr. Sub. Nts., 11/15/07 5,450,000 3,515,250
-----------------------------------------------------------------------------------------------------------
Denbury Management, Inc., 9% Sr. Sub. Nts., 3/1/08 2,500,000 2,287,500
-----------------------------------------------------------------------------------------------------------
Empresa Electric del Norte Grande SA, 10.50% Sr. Debs., 6/15/05(1) 2,800,000 1,127,000
-----------------------------------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 5,500,000 5,527,500
-----------------------------------------------------------------------------------------------------------
Gothic Production Corp., 11.125% Sr. Sec. Nts., Series B, 5/1/05(7) 10,725,000 10,054,687
-----------------------------------------------------------------------------------------------------------
Grant Geophysical, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/15/08(1) 4,015,000 2,469,225
-----------------------------------------------------------------------------------------------------------
Leviathan Gas Pipeline Partners LP/Leviathan Finance Corp.,
10.375% Sr. Unsec. Sub. Nts., Series B, 6/1/09(1) 3,750,000 3,806,250
-----------------------------------------------------------------------------------------------------------
National Energy Group, Inc., 10.75% Sr. Nts., Series D, 11/1/06(4,5) 4,000,000 2,140,000
-----------------------------------------------------------------------------------------------------------
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 4,000,000 3,340,000
-----------------------------------------------------------------------------------------------------------
Pogo Producing Co., 8.75% Sr. Sub. Nts., Series B, 5/15/07 7,525,000 7,148,750
-----------------------------------------------------------------------------------------------------------
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(1) 12,535,000 6,220,494
-----------------------------------------------------------------------------------------------------------
RBF Finance Co.:
11% Sr. Sec. Nts., 3/15/06 6,000,000 6,457,500
11.375% Sr. Sec. Nts., 3/15/09 2,500,000 2,725,000
14 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
--------------------------------------------------------------------------------------------------------------------
Energy Continued
--------------------------------------------------------------------------------------------------------------------
Statia Terminals International NV/Statia Terminals (Canada), Inc.,
11.75% First Mtg. Nts., Series B, 11/15/03 $ 925,000 $ 929,625
--------------------------------------------------------------------------------------------------------------------
Stone Energy Corp., 8.75% Sr. Sub. Nts., 9/15/07 4,210,000 4,020,550
--------------------------------------------------------------------------------------------------------------------
Universal Compression Holdings, Inc., 0%/9.875% Sr. Disc. Nts., 2/15/08(10) 4,200,000 3,045,000
-----------
80,023,961
--------------------------------------------------------------------------------------------------------------------
Financial--1.5%
AMRESCO, Inc., 9.875% Sr. Sub. Nts., Series 98-A, 3/15/05 4,000,000 2,040,000
--------------------------------------------------------------------------------------------------------------------
Bank Plus Corp., 12% Sr. Nts., 7/18/07 78,000 58,890
--------------------------------------------------------------------------------------------------------------------
LaBranche & Co., Inc., 12% Sr. Sub. Nts., 3/1/07(7) 2,500,000 2,503,125
--------------------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03(1,4,5) 8,802,000 --
--------------------------------------------------------------------------------------------------------------------
Parametric RE Ltd., 11.341% Nts., 11/19/07(2,7) 1,000,000 1,023,750
--------------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 24% Nts., 6/19/03(4,5) [IDR] 2,464,500,000 36,605
--------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 9.75% Sr. Sec. Nts., Series B, 4/1/08 11,300,000 9,802,750
--------------------------------------------------------------------------------------------------------------------
Sovereign Bancorp, Inc., 10.50% Sr. Unsec. Nts., 11/15/06 5,500,000 5,458,750
--------------------------------------------------------------------------------------------------------------------
Veritas Capital Trust, 10% Nts., 1/1/28 2,525,000 789,062
--------------------------------------------------------------------------------------------------------------------
Veritas Holdings, Inc., 9.625% Sr. Nts., 12/15/03 3,255,000 2,962,050
-----------
24,674,982
--------------------------------------------------------------------------------------------------------------------
Food & Drug--0.9%
Family Restaurants, Inc.:
9.75% Sr. Nts., 2/1/02 9,500,000 4,227,500
10.875% Sr. Sub. Disc. Nts., 2/1/04(1) 450,000 202,500
--------------------------------------------------------------------------------------------------------------------
Fleming Cos., Inc., 10.625% Sr. Sub. Nts., Series B, 7/31/07 6,200,000 5,208,000
--------------------------------------------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 1,600,000 1,520,000
--------------------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc., 12.625% Sub. Nts., 6/15/02(4,5) 10,500,000 2,677,500
--------------------------------------------------------------------------------------------------------------------
Shoppers Food Warehouse Corp., 9.75% Sr. Nts., 6/15/04 1,065,000 1,117,462
-----------
14,952,962
--------------------------------------------------------------------------------------------------------------------
Food/Tobacco--2.3%
Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 1,680,000 949,200
--------------------------------------------------------------------------------------------------------------------
Cott Corp., 9.375% Sr. Nts., 7/1/05 10,015,000 9,589,362
--------------------------------------------------------------------------------------------------------------------
Del Monte Foods Co., 0%/12.50% Sr. Disc. Nts., Series B, 12/15/07(10) 4,571,000 3,416,822
--------------------------------------------------------------------------------------------------------------------
International Home Foods, Inc., 10.375% Sr. Sub. Nts., 11/1/06 6,845,000 7,358,375
--------------------------------------------------------------------------------------------------------------------
New World Pasta Co., 9.25% Sr. Nts., 2/15/09(1) 5,500,000 3,300,000
--------------------------------------------------------------------------------------------------------------------
Packaged Ice, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/1/05 6,400,000 5,344,000
--------------------------------------------------------------------------------------------------------------------
Purina Mills, Inc., 9% Sr. Unsec. Sub. Nts., 3/15/10(1,4,5) 1,150,000 339,250
--------------------------------------------------------------------------------------------------------------------
SmithField Foods, Inc., 7.625% Sr. Unsec. Sub. Nts., 2/15/08 2,240,000 2,016,000
--------------------------------------------------------------------------------------------------------------------
Sparkling Spring Water Group Ltd., 11.50% Sr. Sec. Sub. Nts., 11/15/07(1) 3,435,000 2,730,825
--------------------------------------------------------------------------------------------------------------------
Triarc Consumer Products Group LLC, 10.25% Sr. Sub. Nts., 2/15/09 3,500,000 3,403,750
-----------
38,447,584
15 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Forest Products/Containers--2.7%
American Pad & Paper Co., 13% Sr. Sub. Nts., Series B, 11/15/05(4,5) $ 2,500,000 $ 187,500
-----------------------------------------------------------------------------------------------------------
Ball Corp.:
7.75% Sr. Unsec. Nts., 8/1/06 2,500,000 2,362,500
8.25% Sr. Unsec. Sub. Nts., 8/1/08 3,300,000 3,118,500
-----------------------------------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 4,250,000 3,315,000
-----------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 9.75% Sr. Nts., 6/15/07 2,100,000 1,669,500
-----------------------------------------------------------------------------------------------------------
Packaging Corp. of America, 9.625% Sr. Unsec. Sub. Nts., 4/1/09 2,000,000 1,995,000
-----------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc.:
9% First Priority Sr. Sec. Nts., 6/1/04 1,000,000 955,000
10.625% Second Priority Sr. Sec. Nts., 4/15/05 3,000,000 2,655,000
-----------------------------------------------------------------------------------------------------------
Riverwood International Corp.:
10.625% Sr. Unsec. Nts., 8/1/07 5,420,000 5,284,500
10.875% Sr. Sub. Nts., 4/1/08 3,900,000 3,451,500
-----------------------------------------------------------------------------------------------------------
SD Warren Co., 14% Unsec. Nts., 12/15/06(11) 9,895,722 10,984,251
-----------------------------------------------------------------------------------------------------------
U.S. Can Corp., 10.125% Sr. Sub. Nts., Series B, 10/15/06 2,750,000 2,832,500
-----------------------------------------------------------------------------------------------------------
U.S. Timberlands Co. LP, 9.625% Sr. Nts., 11/15/07 5,590,000 4,947,150
-----------
43,757,901
-----------------------------------------------------------------------------------------------------------
Gaming/Leisure--5.1%
Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995(4,5) 22,500 --
-----------------------------------------------------------------------------------------------------------
Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 3,000,000 2,745,000
-----------------------------------------------------------------------------------------------------------
Casino Magic of Louisiana Corp., 13% First Mtg. Nts., Series B, 8/15/03 3,000,000 3,195,000
-----------------------------------------------------------------------------------------------------------
Coast Hotel & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09 2,250,000 2,148,750
-----------------------------------------------------------------------------------------------------------
Florida Panthers Holdings, Inc., 9.875% Sr. Sub. Nts., 4/15/09 4,800,000 4,524,000
-----------------------------------------------------------------------------------------------------------
Hollywood Casino Corp., 11.25% Sr. Sec. Nts., 5/1/07 4,500,000 4,623,750
-----------------------------------------------------------------------------------------------------------
Hollywood Park, Inc., 9.25% Sr. Unsec. Sub. Nts., Series B, 2/15/07 5,600,000 5,600,000
-----------------------------------------------------------------------------------------------------------
Horseshoe Gaming LLC, 9.375% Sr. Sub. Nts., 6/15/07 11,355,000 11,241,450
-----------------------------------------------------------------------------------------------------------
Intrawest Corp., 9.75% Sr. Nts., 8/15/08 7,980,000 7,940,100
-----------------------------------------------------------------------------------------------------------
Isle of Capri Casinos, Inc., 8.75% Sr. Unsec. Nts., 4/15/09 5,200,000 4,836,000
-----------------------------------------------------------------------------------------------------------
Jupiters Ltd., 8.50% Sr. Unsec. Nts., 3/1/06(1) 5,200,000 4,875,000
-----------------------------------------------------------------------------------------------------------
Meristar Hospitality Corp., 8.75% Sr. Unsec. Sub. Nts., 8/15/07 2,200,000 1,969,000
-----------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 8.75% Sr. Unsec. Sub. Nts., 1/1/09 5,000,000 4,775,000
-----------------------------------------------------------------------------------------------------------
Premier Parks, Inc.:
0%/10% Sr. Disc. Nts., 4/1/08(10) 4,880,000 3,336,700
9.25% Sr. Nts., 4/1/06 1,850,000 1,748,250
9.75% Sr. Nts., 6/15/07 2,750,000 2,670,937
-----------------------------------------------------------------------------------------------------------
Six Flags Entertainment Corp., 8.875% Sr. Nts., 4/1/06 3,640,000 3,494,400
-----------------------------------------------------------------------------------------------------------
Station Casinos, Inc.:
9.75% Sr. Sub. Nts., 4/15/07 5,800,000 5,829,000
9.875% Sr. Sub. Nts., 7/1/10(7) 2,500,000 2,501,325
10.125% Sr. Sub. Nts., 3/15/06 6,000,000 6,105,000
-----------
84,158,662
16 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Healthcare--1.1%
ICN Pharmaceutical, Inc., 9.75% Sr. Nts., 11/15/08(7) $5,040,000 $ 4,989,600
-----------------------------------------------------------------------------------------------------------
King Pharmaceuticals, Inc., 10.75% Sr. Unsec. Sub. Nts., 2/15/09(1) 4,500,000 4,657,500
-----------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 9% Sr. Sub. Nts., 2/15/08 2,500,000 1,275,000
-----------------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc., 11% Sr. Unsec. Nts., 5/15/05 2,350,000 2,444,000
-----------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.:
8.125% Sr. Unsec. Sub. Nts., Series B, 12/1/08 250,000 230,000
8.625% Sr. Sub. Nts., 1/15/07 2,200,000 2,112,000
9.25% Sr. Nts., 9/1/10(7) 2,000,000 2,025,000
-----------------------------------------------------------------------------------------------------------
Unilab Finance Corp., 12.75% Sr. Sub. Nts., 10/1/09 500,000 517,500
-----------
18,250,600
-----------------------------------------------------------------------------------------------------------
Housing--1.6%
D.R. Horton, Inc., 8% Sr. Nts., 2/1/09 4,320,000 3,780,000
-----------------------------------------------------------------------------------------------------------
Del Webb Corp., 10.25% Sr. Unsec. Sub. Nts., 2/15/10 4,500,000 3,926,250
-----------------------------------------------------------------------------------------------------------
Formica Corp., 10.875% Sr. Unsec. Sub. Nts., Series B, 3/1/09 4,500,000 3,532,500
-----------------------------------------------------------------------------------------------------------
Nortek, Inc.:
9.125% Sr. Nts., Series B, 9/1/07 9,540,000 8,872,200
9.25% Sr. Nts., Series B, 3/15/07 7,545,000 7,092,300
-----------
27,203,250
-----------------------------------------------------------------------------------------------------------
Information Technology--3.1%
Amkor Technologies, Inc.:
9.25% Sr. Unsec. Nts., 5/1/06 9,500,000 9,416,875
10.50% Sr. Unsec. Sub. Nts., 5/1/09 7,500,000 7,546,875
-----------------------------------------------------------------------------------------------------------
Cherokee International LLC, 10.50% Sr. Unsec. Sub. Nts., Series B, 5/1/09 6,000,000 5,205,000
-----------------------------------------------------------------------------------------------------------
Chippac International Ltd., 12.75% Sr. Unsec. Sub. Nts., Series B, 8/1/09 2,750,000 2,997,500
-----------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12% Sr. Sub. Nts., Series B, 8/1/05 350,000 247,625
-----------------------------------------------------------------------------------------------------------
Details, Inc., 10% Sr. Sub. Nts., Series B, 11/15/05 4,000,000 3,780,000
-----------------------------------------------------------------------------------------------------------
Fairchild Semiconductor International, Inc., 10.375% Sr. Unsec. Nts., 10/1/07 9,175,000 9,381,437
-----------------------------------------------------------------------------------------------------------
Fisher Scientific International, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/08 7,860,000 7,231,200
-----------------------------------------------------------------------------------------------------------
Flextronics International Ltd., 9.875% Sr. Sub. Nts., 7/1/10(7) 5,000,000 5,062,500
-----------
50,869,012
-----------------------------------------------------------------------------------------------------------
Manufacturing--2.7%
Applied Power, Inc., 8.75% Sr. Sub. Nts., 4/1/09 3,600,000 3,744,000
-----------------------------------------------------------------------------------------------------------
Axia, Inc., 10.75% Sr. Sub. Nts., 7/15/08 1,700,000 1,334,500
-----------------------------------------------------------------------------------------------------------
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 3,500,000 3,587,500
-----------------------------------------------------------------------------------------------------------
Burke Industries, Inc., 10% Sr. Sub. Nts., 8/15/07(1) 2,150,000 768,625
-----------------------------------------------------------------------------------------------------------
Eagle-Picher Industries, Inc., 9.375% Sr. Unsec. Sub. Nts., 3/1/08(1) 2,800,000 2,394,000
-----------------------------------------------------------------------------------------------------------
Grove Worldwide LLC, 9.25% Sr. Sub. Nts., 5/1/08 2,000,000 770,000
-----------------------------------------------------------------------------------------------------------
Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 3,500,000 2,695,000
17 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Manufacturing Continued
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 $ 7,500,000 $ 7,453,125
-----------------------------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05 6,055,000 6,115,550
-----------------------------------------------------------------------------------------------------------
Jordan Industries, Inc., 10.375% Sr. Unsec. Nts., Series D, 8/1/07 3,150,000 2,898,000
-----------------------------------------------------------------------------------------------------------
Moll Industries, Inc., 10.50% Sr. Unsec. Sub. Nts., 7/1/08 1,960,000 352,800
-----------------------------------------------------------------------------------------------------------
Park-Ohio Industries, Inc., 9.25% Sr. Sub. Nts., 12/1/07 3,900,000 3,451,500
-----------------------------------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07 5,480,000 5,041,600
-----------------------------------------------------------------------------------------------------------
Terex Corp., 8.875% Sr. Unsec. Sub. Nts., Series C, 4/1/08(1) 2,000,000 1,810,000
-----------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03(1) 2,800,000 2,632,000
-----------
45,048,200
-----------------------------------------------------------------------------------------------------------
Media/Entertainment: Broadcasting--1.6%
Allbritton Communications Co., 8.875% Sr. Sub. Nts., Series B, 2/1/08 1,625,000 1,505,156
-----------------------------------------------------------------------------------------------------------
AMFM Operating, Inc., 12.625% Sr. Sub. Debs., Series E, 10/31/06(11) 842,200 987,480
-----------------------------------------------------------------------------------------------------------
Chancellor Media Corp.:
8.75% Sr. Unsec. Sub. Nts., Series B, 6/15/07 1,400,000 1,410,500
9% Sr. Unsec. Sub. Nts., 10/1/08 7,000,000 7,227,500
-----------------------------------------------------------------------------------------------------------
Cumulus Media, Inc., 10.375% Sr. Unsec. Sub. Nts., 7/1/08 1,600,000 1,360,000
-----------------------------------------------------------------------------------------------------------
Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 2,000,000 1,835,000
-----------------------------------------------------------------------------------------------------------
Radio One, Inc., 12% Sr. Sub. Nts., Series B, 5/15/04(2) 1,800,000 1,953,000
-----------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 9% Sr. Unsec. Sub. Nts., 7/15/07 2,500,000 2,256,250
-----------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Sub. Nts., 11/1/09 6,000,000 6,000,000
-----------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 2,750,000 2,543,750
-----------
27,078,636
-----------------------------------------------------------------------------------------------------------
Media/Entertainment: Cable/Wireless Video--9.1%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 3,000,000 2,842,500
8.375% Sr. Nts., Series B, 2/1/08 2,700,000 2,399,625
9.875% Sr. Nts., Series B, 3/1/07 3,545,000 3,412,063
-----------------------------------------------------------------------------------------------------------
Charter Communications Holdings LLC/Charter Communications
Holdings Capital Corp.:
0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11(10) 11,250,000 6,412,500
8.25% Sr. Unsec. Nts., 4/1/07 2,000,000 1,775,000
8.625% Sr. Unsec. Nts., 4/1/09 2,000,000 1,767,500
-----------------------------------------------------------------------------------------------------------
Classic Cable, Inc., 10.50% Sr. Sub. Nts., 3/1/10 2,500,000 2,318,750
-----------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(10) 5,570,000 5,221,875
-----------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc:
0%/10.75% Sr. Disc. Nts., 2/15/07(1,10) 700,000 537,250
0%/11.75% Sr. Disc. Nts., 12/15/05(10) 16,675,000 15,903,781
-----------------------------------------------------------------------------------------------------------
Diamond Holdings plc, 9.125% Sr. Nts., 2/1/08 1,400,000 1,302,000
-----------------------------------------------------------------------------------------------------------
Diva Systems Corp., 0%/12.625% Sr. Disc. Nts., Series B, 3/1/08(10) 2,500,000 1,337,500
-----------------------------------------------------------------------------------------------------------
EchoStar DBS Corp., 9.375% Sr. Unsec. Nts., 2/1/09 15,000,000 14,475,000
18 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
----------------------------------------------------------------------------------------------------------------
Media/Entertainment: Cable/Wireless Video Continued
EchoStar I Bonds, 8.25%, 2/26/01(1) $ 863,336 $ 863,336
----------------------------------------------------------------------------------------------------------------
EchoStar II Sinking Fund Bonds, 8.25%, 11/9/01(1) 1,236,378 1,236,378
----------------------------------------------------------------------------------------------------------------
Insight Midwest LP/Insight Capital, Inc., 9.75% Sr. Nts., 10/1/09 2,000,000 1,970,000
----------------------------------------------------------------------------------------------------------------
NTL Communications Corp.:
0%/9.78% Sr. Nts., 11/15/09(7.10) [EUR] 2,750,000 1,430,111
0%/12.375% Sr. Unsec. Nts., Series B, 10/1/08(10) 12,905,000 8,259,200
9.875% Sr. Nts., 11/15/09(7) [EUR] 4,000,000 3,431,788
11.50% Sr. Unsec. Nts., Series B, 10/1/08 7,000,000 7,000,000
----------------------------------------------------------------------------------------------------------------
NTL, Inc.:
0%/9.75% Sr. Deferred Coupon Nts., Series B, 4/1/08(10) 3,995,000 2,506,863
0%/9.75% Sr. Nts., Series B, 4/15/09(10) [GBP] 19,350,000 15,525,801
0%/10.75% Sr. Unsec. Unsub. Nts., Series B, 4/1/08(10) [GBP] 2,955,000 2,784,800
10% Sr. Nts., Series B, 2/15/07 3,930,000 3,733,500
----------------------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 8.75% Sr. Nts., 7/15/07[CAD] 3,030,000 2,039,836
----------------------------------------------------------------------------------------------------------------
Telewest Communications plc:
0%/9.25% Sr. Disc. Nts., 4/15/09(10) 7,500,000 4,068,750
0%/9.875% Sr. Nts., 4/15/09(7,10) [GBP] 8,500,000 7,013,142
0%/11% Sr. Disc. Debs., 10/1/07(10) 9,060,000 8,629,650
11.25% Sr. Nts., 11/1/08 6,065,000 6,095,325
----------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., 0%/10.75% Sr. Disc. Nts., Series B, 2/15/08(10) 6,110,000 4,307,550
----------------------------------------------------------------------------------------------------------------
United Pan-Europe Communications NV, 10.875% Sr. Unsec. Nts.,
Series B, 8/1/09 10,450,000 9,143,750
------------
149,745,124
----------------------------------------------------------------------------------------------------------------
Media/Entertainment: Diversified Media--3.3%
Ackerley Group, Inc., 9% Sr. Unsec. Sub. Nts., Series B, 1/15/09 5,500,000 5,073,750
----------------------------------------------------------------------------------------------------------------
Amazon.com, Inc., 0%/10% Sr. Unsec. Disc. Nts., 5/1/08(10) 15,000,000 8,175,000
----------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 5,300,000 2,411,500
----------------------------------------------------------------------------------------------------------------
IPC Magazines Group plc:
0%/10.75% Bonds, 3/15/08(10) [GBP] 2,000,000 1,801,541
9.625% Bonds, 3/15/08(1) [GBP] 1,500,000 1,952,931
----------------------------------------------------------------------------------------------------------------
Lamar Media Corp., 9.625% Sr. Unsec. Sub. Nts., 12/1/06 5,065,000 5,115,650
----------------------------------------------------------------------------------------------------------------
Mail-Well Corp., 8.75% Sr. Unsec. Sub. Nts., Series B, 12/15/08 3,335,000 2,818,075
----------------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc., 8.875% Sr. Unsec. Sub. Nts., 12/15/10 2,000,000 490,000
----------------------------------------------------------------------------------------------------------------
SFX Entertainment, Inc.:
9.125% Sr. Unsec. Sub. Nts., 12/1/08 8,000,000 8,080,000
9.125% Sr. Unsec. Sub. Nts., Series B, 2/1/08 7,175,000 7,246,750
----------------------------------------------------------------------------------------------------------------
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 1,000,000 927,225
----------------------------------------------------------------------------------------------------------------
WRC Media, Inc./Weekly Reader Corp./Compass Learning Corp.,
12.75% Sr. Sub. Nts., 11/15/09(7) 7,000,000 6,475,000
------------
54,577,422
19 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Media/Entertainment: Telecommunications--14.5%
360networks, Inc.:
12% Sr. Unsec. Sub. Nts., 8/1/09 $ 500,000 $ 475,000
13% Sr. Unsec. Nts., 5/1/08(7) 1,800,000 1,809,000
13% Sr. Unsec. Nts., 5/1/08(7) [EUR] 3,000,000 2,832,663
-----------------------------------------------------------------------------------------------------------
Adelphia Business Solutions, Inc., 12% Sr. Sub. Nts., 11/1/07 7,825,000 7,394,625
-----------------------------------------------------------------------------------------------------------
Allegiance Telecom, Inc., 12.875% Sr. Nts., 5/15/08 1,000,000 1,087,500
-----------------------------------------------------------------------------------------------------------
Colo.com, Units (each unit consists of $1,000 principal amount of
13.875% sr. nts., 3/15/10 and one warrant to purchase 19.9718 shares
of common stock at $.01 per share)(7,12) 2,000,000 2,160,000
-----------------------------------------------------------------------------------------------------------
COLT Telecom Group plc:
8.875% Sr. Nts., 11/30/07[DEM] 2,295,000 1,102,339
10.125% Sr. Nts., 11/30/07[GBP] 3,275,000 5,007,603
Units (each unit consists of $1,000 principal amount of 0%/12% sr. disc. nts.,
12/15/06 and one warrant to purchase 7.8 ordinary shares)(10,12) 7,055,000 8,986,306
-----------------------------------------------------------------------------------------------------------
Concentric Network Corp., 12.75% Sr. Unsec. Nts., 12/15/07 3,065,000 3,248,900
-----------------------------------------------------------------------------------------------------------
Covad Communications Group, Inc., 0%/13.50% Sr. Disc. Nts., 3/15/08(10) 6,450,000 3,192,750
-----------------------------------------------------------------------------------------------------------
Equinix, Inc., 13% Sr. Nts., 12/1/07(7) 5,250,000 5,007,188
-----------------------------------------------------------------------------------------------------------
ESAT Telecom Group plc, 11.875% Sr. Unsec. Unsub. Nts., 11/1/09[EUR] 1,000,000 1,194,799
-----------------------------------------------------------------------------------------------------------
Exodus Communications, Inc.:
10.75% Sr. Nts., 12/15/09(7) [EUR] 5,000,000 4,601,280
10.75% Sr. Unsec. Sub. Nts., 12/15/09 1,000,000 970,000
11.25% Sr. Nts., 7/1/08 6,725,000 6,691,375
-----------------------------------------------------------------------------------------------------------
FirstWorld Communications, Inc., 0%/13% Sr. Disc. Nts., 4/15/08(10) 2,000,000 910,000
-----------------------------------------------------------------------------------------------------------
FLAG Telecom Holdings Ltd.:
11.625% Sr. Nts., 3/30/10(7) 1,000,000 975,000
11.625% Sr. Nts., 3/30/10(1) [EUR] 1,000,000 881,912
-----------------------------------------------------------------------------------------------------------
Focal Communications Corp.:
0%/12.125% Sr. Unsec. Disc. Nts., 2/15/08(10) 4,720,000 3,209,600
11.875% Sr. Nts., 1/15/10(7) 1,200,000 1,212,000
-----------------------------------------------------------------------------------------------------------
Global Crossing Holdings Ltd., 9.625% Sr. Nts., 5/15/08 5,295,000 5,162,625
-----------------------------------------------------------------------------------------------------------
Global Telesystems Group, Inc., 10.50% Sr. Unsec. Bonds, 12/1/06(7) [EUR] 3,500,000 2,696,662
-----------------------------------------------------------------------------------------------------------
Globix Corp., 12.50% Sr. Unsec. Nts., 2/1/10 2,000,000 1,650,000
-----------------------------------------------------------------------------------------------------------
ICG Holdings, Inc., 0%/12.50% Sr. Sec. Disc. Nts., 5/1/06(10) 800,000 666,000
-----------------------------------------------------------------------------------------------------------
ICG Services, Inc., 0%/10% Sr. Exchangeable Unsec. Disc. Nts., 2/15/08(10) 3,985,000 2,092,125
-----------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc.:
0%/12.25% Sr. Disc. Nts., Series B, 3/1/09(10) 7,000,000 4,252,500
8.50% Sr. Nts., Series B, 1/15/08 3,800,000 3,515,000
8.60% Sr. Unsec. Nts., Series B, 6/1/08 1,700,000 1,581,000
8.875% Sr. Nts., 11/1/07 4,995,000 4,695,300
-----------------------------------------------------------------------------------------------------------
Jazztel plc, 13.25% Sr. Nts., 12/15/09(7) [EUR] 8,000,000 6,882,748
-----------------------------------------------------------------------------------------------------------
KMC Telecom Holdings, Inc.:
0%/12.50% Sr. Unsec. Disc. Nts., 2/15/08(10) 8,500,000 4,037,500
13.50% Sr. Unsec. Nts., 5/15/09 1,800,000 1,593,000
20 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
----------------------------------------------------------------------------------------------------------------
Media/Entertainment: Telecommunications Continued
Level 3 Communications, Inc.:
0%/10.50% Sr. Disc. Nts., 12/1/08(10) $9,000,000 $5,512,500
11% Sr. Nts., 3/15/08(7) 500,000 497,500
11.25% Sr. Nts., 3/15/10(7) [EUR] 6,000,000 5,593,431
----------------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., 8.125% Sr. Unsec. Nts., 2/15/09 1,950,000 1,764,750
----------------------------------------------------------------------------------------------------------------
Metromedia Fiber Network, Inc.:
10% Sr. Nts., 12/15/09 6,000,000 5,940,000
10% Sr. Nts., 12/15/09[EUR] 2,500,000 2,344,855
10% Sr. Unsec. Nts., Series B, 11/15/08 7,000,000 6,930,000
----------------------------------------------------------------------------------------------------------------
Metromedia International Group, Inc., 0%/10.50% Sr. Unsec. Disc. Nts., 9/30/07(10) 793,333 400,633
----------------------------------------------------------------------------------------------------------------
MGC Communications, Inc./Mpower Communications Corp.,
13% Sr. Nts., 4/1/10(7) 5,000,000 4,725,000
----------------------------------------------------------------------------------------------------------------
Netia Holdings BV:
0%/11% Sr. Disc. Nts., 11/1/07(1,10) [DEM] 1,500,000 527,496
0%/11.25% Sr. Disc. Nts., Series B, 11/1/07(1,10) 1,400,000 938,000
----------------------------------------------------------------------------------------------------------------
Netia Holdings II BV, 13.125% Sr. Nts., Series B, 6/15/09 5,525,000 5,276,375
----------------------------------------------------------------------------------------------------------------
NEXTLINK Communications, Inc.:
9.625% Sr. Nts., 10/1/07 9,895,000 9,375,513
10.75% Sr. Unsec. Nts., 6/1/09 1,000,000 990,000
10.75% Sr. Unsec. Nts., 11/15/08 6,600,000 6,534,000
----------------------------------------------------------------------------------------------------------------
NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10(7) 2,900,000 2,102,500
----------------------------------------------------------------------------------------------------------------
Optel, Inc., 13% Sr. Nts., Series B, 2/15/05(4,5) 3,000,000 2,265,000
----------------------------------------------------------------------------------------------------------------
Pratama Datakom Asia BV, 12.75% Gtd. Nts., 7/15/05(1) 4,000,000 690,000
----------------------------------------------------------------------------------------------------------------
PSINet, Inc.:
10.50% Sr. Nts., 12/1/06(7) [EUR] 3,000,000 2,681,684
11.50% Sr. Unsec. Nts., 11/1/08 6,700,000 6,331,500
----------------------------------------------------------------------------------------------------------------
Qwest Communications International, Inc., 0%/9.47% Sr. Disc. Nts., 10/15/07(10) 3,300,000 2,777,128
----------------------------------------------------------------------------------------------------------------
RCN Corp., 10.125% Sr. Unsec. Nts., 1/15/10 4,000,000 3,350,000
----------------------------------------------------------------------------------------------------------------
Rhythms NetConnections, Inc., 14% Sr. Unsec. Nts., 2/15/10(7) 2,500,000 1,825,000
----------------------------------------------------------------------------------------------------------------
RSL Communications plc:
10.50% Sr. Unsec. Nts., 11/5/08 4,800,000 3,336,000
12.875% Sr. Unsec. Nts., 3/1/10(7) 2,000,000 1,510,000
----------------------------------------------------------------------------------------------------------------
Tele1 Europe BV:
11.875% Sr. Nts., 12/1/09(7) [EUR] 4,000,000 3,767,298
13% Sr. Unsec. Nts., 5/15/09 [EUR] 3,000,000 2,933,316
----------------------------------------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 2,300,000 1,794,000
----------------------------------------------------------------------------------------------------------------
Time Warner Telecom LLC, 9.75% Sr. Nts., 7/15/08 5,700,000 5,543,250
----------------------------------------------------------------------------------------------------------------
Tritel PCS, Inc., 0%/12.75% Sr. Unsec. Sub. Disc. Nts., 5/15/09(10) 3,400,000 2,269,500
----------------------------------------------------------------------------------------------------------------
Triton PCS, Inc., 0%/11% Sr. Unsec. Sub. Disc. Nts., 5/1/08(10) 1,500,000 1,095,000
----------------------------------------------------------------------------------------------------------------
United Pan-Europe Communications NV:
0%/13.375% Sr. Unsec. Disc. Nts., Series B, 11/1/09(10) 2,000,000 980,000
10.875% Sr. Nts., 8/1/09[EUR] 250,000 209,694
11.25% Sr. Nts., 11/1/09(7) [EUR] 1,500,000 1,274,339
21 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Media/Entertainment: Telecommunications Continued
Verio, Inc.:
10.375% Sr. Unsec. Nts., 4/1/05 $ 5,300,000 $ 5,591,500
10.625% Sr. Nts., 11/15/09(7) 4,750,000 5,290,313
11.25% Sr. Unsec. Nts., 12/1/08 5,000,000 5,637,500
13.50% Sr. Unsec. Nts., 6/15/04 725,000 821,969
-----------------------------------------------------------------------------------------------------------
Versatel Telecom International NV:
11.25% Sr. Nts., 3/30/10(7) [EUR] 1,200,000 1,074,111
11.875% Sr. Nts., 7/15/09 4,000,000 3,960,000
11.875% Sr. Nts., 7/15/09[EUR] 1,000,000 929,842
-----------------------------------------------------------------------------------------------------------
Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 2,925,000 2,179,125
-----------------------------------------------------------------------------------------------------------
WAM!NET, Inc., 0%/13.25% Sr. Unsec. Disc. Nts., Series B, 3/1/05(10) 10,160,000 5,753,100
-----------------------------------------------------------------------------------------------------------
Winstar Communications, Inc., 12.75% Sr. Nts., 4/15/10(7) 3,000,000 2,812,500
------------
239,909,522
-----------------------------------------------------------------------------------------------------------
Media/Entertainment: Wireless Communications--10.3%
AirGate PCS, Inc., 0%/13.50% Sr. Sub. Disc. Nts., 10/1/09(10) 1,000,000 577,500
-----------------------------------------------------------------------------------------------------------
Alamosa PCS Holdings, Inc., 0%/12.875% Sr. Unsec. Disc. Nts., 2/15/10(10) 1,000,000 525,000
-----------------------------------------------------------------------------------------------------------
Arch Communications, Inc., 12.75% Sr. Nts., 7/1/07 1,400,000 1,078,000
-----------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc., 0%/14% Sr. Unsec. Disc. Nts., 10/1/07(4,5,10) 9,220,000 726,075
-----------------------------------------------------------------------------------------------------------
Centennial Cellular Corp., 10.75% Sr. Sub. Nts., 12/15/08 4,000,000 3,905,000
-----------------------------------------------------------------------------------------------------------
Clearnet Communications, Inc., 0%/14.75% Sr. Disc. Nts., 12/15/05(10) 670,000 695,125
-----------------------------------------------------------------------------------------------------------
Crown Castle International Corp.:
0%/10.375% Sr. Disc. Nts., 5/15/11(10) 6,500,000 4,005,625
0%/10.625% Sr. Unsec. Disc. Nts., 11/15/07(10) 8,790,000 6,548,550
9% Sr. Nts., 5/15/11 2,700,000 2,504,250
10.75% Sr. Nts., 8/1/11 4,250,000 4,329,688
-----------------------------------------------------------------------------------------------------------
CTI Holdings SA, 0%/11.50% Sr. Deferred Coupon Nts., 4/15/08(10) 4,650,000 2,685,375
-----------------------------------------------------------------------------------------------------------
Exodus Communications, Inc., 11.25% Sr. Nts., 7/15/10(7) 12,000,000 12,015,000
-----------------------------------------------------------------------------------------------------------
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)(4,5,12) 2,800,000 1,638,000
-----------------------------------------------------------------------------------------------------------
IPCS, Inc., Units (each unit consists of $1,000 principal amount of
0%/14% sr. disc. nts., 7/15/10 and one warrant to purchase
2,971,830 shares of common stock)(7,10,12,14) 3,750,000 1,968,750
-----------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc., Units (each unit consists of 12.50% sr. nts.,
4/15/10 and one warrant to purchase 5.146 shares of common stock)(7,12) 2,500,000 2,212,500
-----------------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc.:
0%/11.125% Sr. Disc. Nts., Series B, 10/15/07(10) [CAD] 6,405,000 2,863,814
0%/12% Sr. Unsec. Disc. Nts., 6/1/09(10) 7,000,000 4,637,500
0%/14% Sr. Disc. Nts., Series B, 6/1/06(10) 3,900,000 3,617,250
-----------------------------------------------------------------------------------------------------------
Millicom International Cellular SA, 0%/13.50% Sr. Disc. Nts., 6/1/06(1,10) 1,760,000 1,504,800
22 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Media/Entertainment: Wireless Communications Continued
Nextel Communications, Inc.:
0%/9.75% Sr. Disc. Nts., 10/31/07(10) $ 1,500,000 $ 1,121,250
0%/9.95% Sr. Disc. Nts., 2/15/08(10) 5,690,000 4,196,375
0%/10.65% Sr. Disc. Nts., 9/15/07(10) 2,750,000 2,172,500
9.375% Sr. Unsec. Nts., 11/15/09 5,000,000 4,800,000
-----------------------------------------------------------------------------------------------------------
Omnipoint Corp.:
11.50% Sr. Nts., 9/15/09(7) 8,865,000 9,529,875
11.625% Sr. Nts., 8/15/06 5,760,000 6,249,600
11.625% Sr. Nts., Series A, 8/15/06 10,095,000 10,953,075
-----------------------------------------------------------------------------------------------------------
ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04(1) 3,775,000 2,963,375
-----------------------------------------------------------------------------------------------------------
Orion Network Systems, Inc., 0%/12.50% Sr. Disc. Nts., 1/15/07(1,10) 5,310,000 2,203,650
-----------------------------------------------------------------------------------------------------------
Pinnacle Holdings, Inc., 0%/10% Sr. Unsec. Disc. Nts., 3/15/08(10) 9,895,000 6,877,025
-----------------------------------------------------------------------------------------------------------
Polska Telefoniz Cyfrowa International Financial II SA, 11.25% Sr. Sub. Nts.,
12/1/09(1) [EUR] 2,750,000 2,698,759
-----------------------------------------------------------------------------------------------------------
Price Communications Wireless, Inc.:
9.125% Sr. Sec. Nts., Series B, 12/15/06 8,000,000 8,120,000
11.75% Sr. Sub. Nts., 7/15/07 4,225,000 4,563,000
-----------------------------------------------------------------------------------------------------------
Rogers Cantel, Inc., 8.80% Sr. Sub. Nts., 10/1/07 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 6,400,000 6,240,000
-----------------------------------------------------------------------------------------------------------
SBA Communications Corp., 0%/12% Sr. Unsec. Disc. Nts., 3/1/08(10) 16,320,000 11,587,200
-----------------------------------------------------------------------------------------------------------
Spectrasite Holdings, Inc.:
0%/11.25% Sr. Unsec. Disc. Nts., 4/15/09(10) 5,175,000 3,053,250
0%/12% Sr. Disc. Nts., 7/15/08(10) 7,550,000 5,285,000
10.75% Sr. Nts., 3/15/10(7) 1,000,000 1,002,500
-----------------------------------------------------------------------------------------------------------
Telecorp PCS, Inc., 0%/11.625% Sr. Unsec. Sub. Disc. Nts., 4/15/09(10) 1,000,000 657,500
-----------------------------------------------------------------------------------------------------------
VoiceStream Wireless Corp., 10.375% Sr. Nts., 11/15/09(7) 13,000,000 13,520,000
------------
170,831,736
-----------------------------------------------------------------------------------------------------------
Metals/Minerals--2.9%
AEI Resources, Inc., 11.50% Sr. Sub. Nts., 12/15/06(7) 3,500,000 367,500
-----------------------------------------------------------------------------------------------------------
AK Steel Corp.:
7.875% Sr. Unsec. Nts., 2/15/09 8,000,000 7,140,000
9.125% Sr. Nts., 12/15/06 1,000,000 965,000
-----------------------------------------------------------------------------------------------------------
California Steel Industries Corp., 8.50% Sr. Unsec. Nts., Series B, 4/1/09 4,000,000 3,680,000
-----------------------------------------------------------------------------------------------------------
Centaur Mining & Exploration Ltd., 11% Sr. Nts., 12/1/07 5,025,000 4,045,125
-----------------------------------------------------------------------------------------------------------
Great Lakes Carbon Corp., 10.25% Sr. Sub. Nts., Series B, 5/15/08 4,540,000 3,972,500
-----------------------------------------------------------------------------------------------------------
International Utility Structures, Inc., 10.75% Sr. Sub. Nts., 2/1/08 1,400,000 1,155,000
-----------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 2,975,000 2,722,125
-----------------------------------------------------------------------------------------------------------
Metallurg Holdings, Inc., 0%/12.75% Sr. Disc. Nts., 7/15/08(10) 11,000,000 2,860,000
-----------------------------------------------------------------------------------------------------------
Metallurg, Inc., 11% Sr. Nts., 12/1/07 8,120,000 6,455,400
-----------------------------------------------------------------------------------------------------------
National Steel Corp., 9.875% First Mtg. Bonds, Series D, 3/1/09 5,000,000 4,200,000
-----------------------------------------------------------------------------------------------------------
P&L Coal Holdings Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 5,000,000 4,662,500
23 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Metals/Minerals Continued
Republic Technologies International LLC/RTI Capital Corp., 13.75%
Sr. Sec. Nts., 7/15/09 $ 1,200,000 $ 217,500
-----------------------------------------------------------------------------------------------------------
WHX Corp., 10.50% Sr. Unsec. Nts., 4/15/05 7,000,000 5,495,000
-----------
47,937,650
-----------------------------------------------------------------------------------------------------------
Retail--0.5%
Eye Care Centers of America, Inc., 9.125% Sr. Unsec. Sub. Nts., 5/1/08(1) 1,000,000 575,000
-----------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., 9% Debs., 5/1/08 6,585,000 5,827,725
-----------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 2,100,000 1,879,500
-----------------------------------------------------------------------------------------------------------
Just For Feet, Inc., 11% Sr. Sub. Nts., 5/1/09(1,4,5) 700,000 10,500
-----------
8,292,725
-----------------------------------------------------------------------------------------------------------
Service--4.2%
Allied Waste North America, Inc.:
7.625% Sr. Nts., Series B, 1/1/06 1,000,000 880,000
7.875% Sr. Unsec. Nts., Series B, 1/1/09 4,000,000 3,430,000
10% Sr. Unsec. Sub. Nts., Series B, 8/1/09 5,700,000 4,788,000
-----------------------------------------------------------------------------------------------------------
American Plumbing & Mechanical, Inc., 11.625% Gtd. Sr. Sub. Nts.,
Series B, 10/15/08 6,000,000 5,625,000
-----------------------------------------------------------------------------------------------------------
AP Holdings, Inc., 0%/11.25% Sr. Disc. Nts., 3/15/08(10) 1,400,000 147,000
-----------------------------------------------------------------------------------------------------------
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 3,080,000 1,097,250
-----------------------------------------------------------------------------------------------------------
Charles River Laboratories, Inc., 13.50% Sr. Sub. Nts., 10/1/09(7) 3,000,000 3,112,500
-----------------------------------------------------------------------------------------------------------
Coinstar, Inc., 13% Sr. Disc. Nts., 10/1/06 2,000,000 2,032,500
-----------------------------------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 2,400,000 1,212,000
-----------------------------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 2,805,000 2,145,825
-----------------------------------------------------------------------------------------------------------
Integrated Electric Services, Inc., 9.375% Sr. Sub. Nts., Series B, 2/1/09 3,000,000 2,445,000
-----------------------------------------------------------------------------------------------------------
IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts., Series B, 4/1/09 4,000,000 3,600,000
-----------------------------------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09 8,570,000 7,927,250
-----------------------------------------------------------------------------------------------------------
Norse CBO Ltd., 9.342% Sub. Bonds, Series 1A, Cl. C2, 8/13/10(11) 1,000,000 8,373,750
-----------------------------------------------------------------------------------------------------------
Protection One, Inc., 7.375% Sr. Unsec. Nts., 8/15/05 5,400,000 4,050,000
-----------------------------------------------------------------------------------------------------------
Stericycle, Inc., 12.375% Sr. Unsec. Sub. Nts., Series B, 11/15/09 4,000,000 4,105,000
-----------------------------------------------------------------------------------------------------------
United Rentals, Inc., 9.25% Sr. Unsec. Sub. Nts., Series B, 1/15/09 6,500,000 5,898,750
-----------------------------------------------------------------------------------------------------------
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. Unsec. Sub. Disc. Nts., Series B, 11/1/09(10) 8,500,000 4,653,750
-----------
68,613,575
24 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Principal Market Value
Amount See Note 1
-----------------------------------------------------------------------------------------------------------
Transportation--5.5%
Amtran, Inc:
9.625% Nts., 12/15/05(1) $ 2,300,000 $ 2,018,250
10.50% Sr. Nts., 8/1/04 7,600,000 7,049,000
-----------------------------------------------------------------------------------------------------------
Atlas Air, Inc.:
9.375% Sr. Unsec. Nts., 11/15/06 5,600,000 5,404,000
10.75% Sr. Nts., 8/1/05 115,000 117,444
-----------------------------------------------------------------------------------------------------------
Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 8,450,000 5,450,250
-----------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Sr. Unsec. Sub. Nts., 4/15/06 1,000,000 967,500
-----------------------------------------------------------------------------------------------------------
Dura Operating Corp.:
9% Sr. Sub. Nts., Series B, 5/1/09 4,500,000 3,937,500
9% Sr. Sub. Nts., Series B, 5/1/09[EUR] 2,500,000 2,300,640
-----------------------------------------------------------------------------------------------------------
Great Lakes Dredge & Dock Corp., 11.25% Sr. Unsec. Sub. Nts., 8/15/08 4,050,000 4,065,188
-----------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc.:
9.125% Sr. Sub. Nts., 7/15/07 500,000 450,000
11% Sr. Sub. Nts., 7/15/06 6,000,000 5,925,000
-----------------------------------------------------------------------------------------------------------
HDA Parts System, Inc., 12% Sr. Sub. Nts., 8/1/05(1) 2,000,000 1,350,000
-----------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc., Units (each unit consists of $1,000
principal amount of 11.65% first priority ship mtg. sr. sec. nts.,
7/15/05 and one warrant to purchase five shares of common stock)(1,2,12) 5,000,000 2,625,000
-----------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07(7) 5,800,000 2,349,000
-----------------------------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr. Unsec. Sub. Nts., Series D, 6/15/07 5,150,000 4,506,250
-----------------------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 10.50% Sec. Nts., 12/31/07(1) 1,562,500 976,563
-----------------------------------------------------------------------------------------------------------
Tenneco, Inc., 11.625% Sr. Unsec. Sub. Nts., Series B, 10/15/09 7,750,000 6,936,250
-----------------------------------------------------------------------------------------------------------
Trans World Airlines Lease, 14% Equipment Trust, 7/2/08(1) 1,861,376 1,544,942
-----------------------------------------------------------------------------------------------------------
Trans World Airlines, Inc., 11.50% Sr. Sec. Nts., 12/15/04 8,500,000 6,247,500
-----------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 13.375% Sr. Disc. Nts., Series B,
12/15/03 25,515,000 25,419,319
-----------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust Nts., Series 1993-A, 10.50%, 12/1/11(7) 3,434,301 1,828,766
--------------
91,468,362
-----------------------------------------------------------------------------------------------------------
Utility--0.2%
Azurix Corp., 10.75% Sr. Nts., 2/15/10(7) 3,000,000 2,902,500
-----------------------------------------------------------------------------------------------------------
Subic Power Corp. Sr. Sec. Nts., 9.50%, 12/28/08(1) 121,344 110,575
--------------
3,013,075
--------------
Total Corporate Bonds and Notes (Cost $1,560,814,610) 1,384,856,701
25 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
===========================================================================================================
Preferred Stocks--6.2%
AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg.(1,11) 82,600 $ 681,450
-----------------------------------------------------------------------------------------------------------
CGA Group Ltd., Series A(1,11,13) 196,699 4,917,475
-----------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp., 7% Cv., Non-Vtg.(4) 100,000 6,400,000
-----------------------------------------------------------------------------------------------------------
Clark USA, Inc., 11.50% Cum. Sr. Exchangeable, Non-Vtg.(11) 3,555 719,887
-----------------------------------------------------------------------------------------------------------
Concentric Network Corp., 13.50% Sr. Redeemable Exchangeable,
Series B, Non-Vtg.(11) 5,754 5,689,272
-----------------------------------------------------------------------------------------------------------
Doane Products Co., 14.25% Exchangeable, Non-Vtg.(1,4) 140,000 5,355,000
-----------------------------------------------------------------------------------------------------------
Dobson Communications Corp., 12.25% Sr. Exchangeable, Non-Vtg.(11) 5,975 5,780,812
-----------------------------------------------------------------------------------------------------------
Dobson Communications Corp., 13% Sr. Exchangeable, Non-Vtg.(11) 9,097 9,438,137
-----------------------------------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg.(11) 3,402 667,642
-----------------------------------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg.(1,4) 28,000 707,000
-----------------------------------------------------------------------------------------------------------
Earthwatch, Inc., 12% Cv. Sr., Series C, Non-Vtg.(1) 175,180 437,950
-----------------------------------------------------------------------------------------------------------
Fidelity Federal Bank, l2% Non-Cum. Exchangeable, Series A(1) 30 450
-----------------------------------------------------------------------------------------------------------
Global Crossing Ltd., 10.50% Sr. Exchangeable(11) 27,500 2,660,625
-----------------------------------------------------------------------------------------------------------
ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg.(11) 3,593 3,125,910
-----------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 13.50% Exchangeable, Series B(11) 3,517 3,402,698
-----------------------------------------------------------------------------------------------------------
International Utility Structures, Inc., 13%, Non-Vtg.(7,11) 157 113,433
-----------------------------------------------------------------------------------------------------------
International Utility Structures, Inc., 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)(1,11,12) 560 495,600
-----------------------------------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable, Non-Vtg.(11) 96,993 12,124
-----------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 11.125% Exchangeable, Series E, Non-Vtg.(11) 5,945 5,781,513
-----------------------------------------------------------------------------------------------------------
NEXTLINK Communications, Inc., 14% Cum., Non-Vtg.(11) 171,923 8,897,015
-----------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 13.25% Cum. Jr. Exchangeable, Non-Vtg.(11) 512 4,928,000
-----------------------------------------------------------------------------------------------------------
PRIMEDIA, Inc., 8.625% Exchangeable, Series H, Non-Vtg 101,200 8,728,500
-----------------------------------------------------------------------------------------------------------
PRIMEDIA, Inc., 9.20% Exchangeable, Series F, Non-Vtg 22,500 2,041,875
-----------------------------------------------------------------------------------------------------------
R&B Falcon Corp., 13.875% Cum., Non-Vtg.(11) 10,349 11,720,243
-----------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum. Sr., Series B, Non-Vtg.(11) 8,741 8,238,393
-----------------------------------------------------------------------------------------------------------
SF Holdings Group, Inc., 13.75% Cum. Nts., Series B, Non-Vtg.(11) 84 354,900
-----------------------------------------------------------------------------------------------------------
SF Holdings Group, Inc., 13.75% Exchangeable(7) 19 80,275
-----------------------------------------------------------------------------------------------------------
Star Gas Partners LP 5,999 92,235
-----------------------------------------------------------------------------------------------------------
World Access, Inc., Cv. Sr., Series D, Non-Vtg.(1,4) 789 686,430
-------------
Total Preferred Stocks (Cost $125,530,652) 102,154,844
26 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Market Value
Shares See Note 1
===========================================================================================================
Common Stocks--1.3%
Chesapeake Energy Corp.(1,4) 1,412,792 $ 9,537,006
-----------------------------------------------------------------------------------------------------------
ECM Fund, LPI(1,4) 1,350 1,182,937
-----------------------------------------------------------------------------------------------------------
Equitable Bag, Inc.(1,4) 39,357 39,357
-----------------------------------------------------------------------------------------------------------
Forcenergy, Inc.(1,4) 170,000 3,421,250
-----------------------------------------------------------------------------------------------------------
Globix Corp.(4) 50,000 1,465,625
-----------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc.(4) 70,000 2,082,500
-----------------------------------------------------------------------------------------------------------
Optel, Inc.(1,4) 7,425 74
-----------------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc.(1,4,13) 1,688,400 --
-----------------------------------------------------------------------------------------------------------
Resorts International, Inc.(4) 187,187 --
-----------------------------------------------------------------------------------------------------------
SBA Communications Corp.(4) 15,000 779,062
-----------------------------------------------------------------------------------------------------------
SF Holdings Group, Inc., Cl. C(1,4) 3,110 31
-----------------------------------------------------------------------------------------------------------
Siena Holdings, Inc.(4) 250,239 289,340
-----------------------------------------------------------------------------------------------------------
Tele1 Europe Holding AB, Sponsored ADR(4,7) 56,377 697,155
-----------------------------------------------------------------------------------------------------------
VoiceStream Wireless Corp.(4) 15,000 1,744,453
-----------------------------------------------------------------------------------------------------------
WRC Media Corp.(1,4) 9,471 95
-----------
Total Common Stocks (Cost $17,091,600) 21,238,885
Units
===========================================================================================================
Rights, Warrants and Certificates--0.6%
Adelphia Business Solutions, Inc. Wts., Exp. 4/15/01(1) 1,090 299,886
-----------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/15/00(1) 125,000 --
-----------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc. Wts., Exp. 10/1/07(7) 3,407 2,129
-----------------------------------------------------------------------------------------------------------
CGA Group Ltd. Wts., Exp. 6/16/07(1,13) 130,000 39,000
-----------------------------------------------------------------------------------------------------------
Charles River Laboratories, Inc. Wts., Exp. 10/1/09(1) 3,000 30,000
-----------------------------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08(1) 8,200 184,500
-----------------------------------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 4,000 --
-----------------------------------------------------------------------------------------------------------
Diva Systems Corp. Wts., Exp. 3/1/08(1) 7,500 195,000
-----------------------------------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05(1) 2,575 26,365
-----------------------------------------------------------------------------------------------------------
Equinix, Inc. Wts., Exp. 12/1/07 5,250 525,000
-----------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 11/1/02 163,894 491,682
-----------------------------------------------------------------------------------------------------------
Golden State Bancorp, Inc. Wts., Exp. 1/1/01 107,699 121,161
-----------------------------------------------------------------------------------------------------------
Gothic Energy Corp. Wts.:
Exp. 1/23/03 80,080 --
Exp. 1/23/03(1) 57,200 572
Exp. 9/1/04(1) 168,000 --
Exp. 5/1/05(1) 118,003 --
-----------------------------------------------------------------------------------------------------------
HF Holdings, Inc. Wts., Exp. 9/27/00(1) 1,445 145
-----------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 50,820 716,781
-----------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/31/02 6,000 --
27 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
===========================================================================================================
Rights, Warrants and Certificates Continued
Insilco Corp. Wts., Exp. 8/15/07(1) 7,055 $ --
-----------------------------------------------------------------------------------------------------------
KMC Telecom Holdings, Inc. Wts., Exp. 4/15/08(1) 12,340 37,798
-----------------------------------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08(1) 2,800 280
-----------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07(1) 3,910 46,431
-----------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05(1) 6,400 1,600
-----------------------------------------------------------------------------------------------------------
NEXTLINK Communications, Inc. Wts., Exp. 12/15/07(1) 3,330 1,565,516
-----------------------------------------------------------------------------------------------------------
PLD Telekom, Inc. Wts., Exp. 3/31/03(1) 630 32
-----------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 11/1/03(1) 182,000 318,500
-----------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 6/30/05(1) 49,120 4,912
-----------------------------------------------------------------------------------------------------------
R&B Falcon Corp. Wts., Exp. 5/1/09(7) 9,000 4,491,000
-----------------------------------------------------------------------------------------------------------
Republic Technologies International LLC Wts., Exp. 7/15/09(1) 1,200 12
-----------------------------------------------------------------------------------------------------------
Rocky Mountain Internet, Inc. Wts., Exp. 7/3/03(1) 24,520 70,497
-----------------------------------------------------------------------------------------------------------
WAM!NET, Inc. Wts., Exp. 3/1/05(1) 30,480 354,330
--------------
Total Rights, Warrants and Certificates (Cost $1,851,725) 9,523,129
Principal
Amount
===========================================================================================================
Repurchase Agreements--3.1%
Repurchase agreement with Banc One Capital Markets, Inc., 6.55%,
dated 6/30/00, to be repurchased at $51,564,130 on 7/3/00, collateralized
by U.S. Treasury Nts., 5%-7.50%, 8/31/00-5/15/08, with a value of $38,876,603
and U.S. Treasury Bonds, 5.25%-12%, 8/15/03-11/15/28, with a value of
$13,733,347 (Cost $51,536,000) $51,536,000 51,536,000
-----------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,840,300,165) 99.3% 1,643,251,160
-----------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.7 11,664,700
---------------------------
Net Assets 100.0% $1,654,915,860
===========================
</TABLE>
28 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
Footnotes to Statement of Investments
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP Argentine Peso EUR Euro
CAD Canadian Dollar GBP British Pound Sterling
DEM German Mark IDR Indonesian Rupiah
1. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
2. Represents the current interest rate for a variable or increasing rate
security.
3. 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.
4. Non-income-producing security.
5. Issuer is in default.
6. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
7. Represents a security 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 $165,600,628 or 10.01% of the Fund's net
assets as of June 30, 2000.
8. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
9. Securities with an aggregate market value of $9,685,900 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements.
10. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
11. Interest or dividend is paid in kind.
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, principal amount disclosed represents total
underlying principal.
13. 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 June 30, 2000. The
aggregate fair value of securities of affiliated companies held by the Fund as
of June 30, 2000 amounts to $4,956,475. Transactions during the period in which
the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares/ Shares/
Principal Gross Gross Principal Dividend
June 30, 1999 Additions Reductions June 30, 2000 Income
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Stocks and Warrants
CGA Group Ltd., Series A 160,595 36,104 -- 196,699 $739,184
CGA Group Ltd. Wts., Exp. 6/16/07 130,000 -- -- 130,000 --
Pope, Evans & Robbins, Inc. 1,688,400 -- -- 1,688,400 --
Bonds and Notes
Pope, Evans & Robbins, Inc., 7% Sr. Nts., 5/15/1998 $5,955,189 -- -- 5,955,189 --
--------
$739,184
========
</TABLE>
14. When-issued security to be delivered and settled after June 30, 2000.
See accompanying Notes to Financial Statements.
29 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES June 30, 2000
<TABLE>
================================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,829,605,760) $1,638,294,685
Affiliated companies (cost $10,694,405) 4,956,475
------------------------------------------------------------------------------------------------
Cash 1,162,768
------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 60,194
------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 32,742,591
Shares of beneficial interest sold 4,902,572
Investments sold 997,292
Closed foreign currency contracts 331,651
Other 3,683
--------------
Total assets 1,683,451,911
================================================================================================
Liabilities
Unrealized depreciation on foreign currency contracts 459,483
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $1,903,875 purchased on a when-issued basis) 18,373,153
Dividends 4,792,372
Shares of beneficial interest redeemed 3,066,820
Distribution and service plan fees 945,823
Transfer and shareholder servicing agent fees 522,231
Trustees' compensation 10,136
Daily variation on futures contracts 7,031
Other 359,002
--------------
Total liabilities 28,536,051
================================================================================================
Net Assets $1,654,915,860
==============
================================================================================================
Composition of Net Assets
Paid-in capital $2,029,483,324
------------------------------------------------------------------------------------------------
Undistributed net investment income 2,467,208
------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (179,596,449)
------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets and
liabilities denominated in foreign currencies (197,438,223)
--------------
Net Assets $1,654,915,860
==============
</TABLE>
30 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
========================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redempton price per share (based on net assets of
$1,065,219,732 and 89,626,036 shares of beneficial interest outstanding) $11.89
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $12.48
----------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $453,375,419
and 38,531,199 shares of beneficial interest outstanding) $11.77
----------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $82,203,856
and 6,928,190 shares of beneficial interest outstanding) $11.87
----------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $54,116,853 and 4,579,778 shares of beneficial interest outstanding) $11.82
</TABLE>
See accompanying Notes to Financial Statements.
31 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended June 30, 2000
<TABLE>
=======================================================================================
<S> <C>
Investment Income
Interest $ 185,687,781
---------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies 11,586,032
Affiliated companies 739,184
-------------
Total income 198,012,997
=======================================================================================
Expenses
Management fees 10,743,241
---------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,662,868
Class B 5,108,269
Class C 873,017
---------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,555,785
Class B 700,314
Class C 119,885
Class Y 112,722
---------------------------------------------------------------------------------------
Custodian fees and expenses 124,917
---------------------------------------------------------------------------------------
Trustees' compensation 26,701
---------------------------------------------------------------------------------------
Other 652,241
-------------
Total expenses 22,679,960
Less expenses paid indirectly (29,175)
-------------
Net expenses 22,650,785
=======================================================================================
Net Investment Income 175,362,212
=======================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (61,930,019)
Closing of futures contracts (44,021)
Foreign currency transactions 353,915
-------------
Net realized loss (61,620,125)
---------------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments (104,782,248)
Translation of assets and liabilities denominated in foreign currencies (5,583,427)
-------------
Net change (110,365,675)
-------------
Net realized and unrealized loss (171,985,800)
=======================================================================================
Net Increase in Net Assets Resulting from Operations $ 3,376,412
=============
</TABLE>
See accompanying Notes to Financial Statements.
32 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended June 30, 2000 1999
====================================================================================================
<S> <C> <C>
Operations
Net investment income $ 175,362,212 $ 169,801,337
----------------------------------------------------------------------------------------------------
Net realized loss (61,620,125) (51,853,796)
----------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (110,365,675) (129,580,700)
---------------------------------
Net increase (decrease) in net assets resulting from operations 3,376,412 (11,633,159)
====================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (112,851,471) (111,798,886)
Class B (47,430,405) (46,977,882)
Class C (8,040,053) (6,828,204)
Class Y (5,632,221) (3,328,108)
====================================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (34,915,560) 70,287,073
Class B (77,591,865) 105,348,488
Class C (3,112,912) 35,072,177
Class Y 6,317,066 43,279,495
====================================================================================================
Net Assets
Total increase (decrease) (279,881,009) 73,420,994
----------------------------------------------------------------------------------------------------
Beginning of period 1,934,796,869 1,861,375,875
---------------------------------
End of period (including undistributed net investment
income of $2,467,208 and $563,117, respectively) $1,654,915,860 $1,934,796,869
=================================
</TABLE>
See accompanying Notes to Financial Statements.
33 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A Year Ended June 30, 2000 1999 1998 1997 1996
===================================================================================================================
<S> <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
-------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 1.26 1.26 1.24 1.27 1.29
Net realized and unrealized gain (loss) (1.18) (1.39) .43 .43 .27
--------------------------------------------------------------
Total income (loss) from
investment operations .08 (.13) 1.67 1.70 1.56
-------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (1.25) (1.25) (1.21) (1.23) (1.27)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.25) (1.25) (1.21) (1.23) (1.27)
-------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.89 $13.06 $14.44 $13.98 $13.51
==============================================================
===================================================================================================================
Total Return, at Net Asset Value(1) 0.71% (0.71)% 12.34% 13.10% 12.25%
===================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,065 $1,208 $1,257 $1,167 $1,084
-------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,126 $1,199 $1,227 $1,128 $1,092
-------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 10.12% 9.40% 8.64% 9.22% 9.59%
Expenses 1.02% 0.99% 1.00%(3) 1.00%(3) 1.03%(3)
-------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 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.
See accompanying Notes to Financial Statements.
34 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Class B Year Ended June 30, 2000 1999 1998 1997 1996
===================================================================================================================
<S> <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
-------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 1.15 1.14 1.11 1.15 1.18
Net realized and unrealized gain (loss) (1.18) (1.38) .44 .43 .27
--------------------------------------------------------------
Total income (loss) from
investment operations (.03) (.24) 1.55 1.58 1.45
-------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (1.15) (1.14) (1.10) (1.13) (1.17)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.15) (1.14) (1.10) (1.13) (1.17)
-------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.77 $12.95 $14.33 $13.88 $13.43
==============================================================
===================================================================================================================
Total Return, at Net Asset Value(1) (0.13)% (1.48)% 11.50% 12.18% 11.40%
===================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $453 $580 $528 $397 $280
-------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $510 $545 $464 $335 $236
-------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 9.35% 8.61% 7.86% 8.41% 8.75%
Expenses 1.79% 1.78% 1.79%(3) 1.80%(3) 1.84%(3)
-------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 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.
See accompanying Notes to Financial Statements.
35 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class C Year Ended June 30, 2000 1999 1998 1997 1996(1)
===================================================================================================================
<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 1.16 1.15 1.22 1.14 .77
Net realized and unrealized gain (loss) (1.18) (1.39) .33 .45 .19
--------------------------------------------------------------
Total income (loss) from
investment operations (.02) (.24) 1.55 1.59 .96
-------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (1.15) (1.14) (1.10) (1.12) (.76)
-------------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.15) (1.14) (1.10) (1.12) (.76)
--------------------------------------------------------------
Net asset value, end of period $11.87 $13.04 $14.42 $13.97 $13.50
==============================================================
===================================================================================================================
Total Return, at Net Asset Value(2) (0.06)% (1.49)% 11.42% 12.23% 7.36%
===================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $82 $94 $66 $30 $8
-------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $87 $80 $48 $18 $3
-------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 9.35% 8.60% 7.87% 8.40% 8.41%
Expenses 1.79% 1.78% 1.78%(4) 1.82%(4) 1.90%(4)
-------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 43% 117% 126% 105%
</TABLE>
1. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
36 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
<TABLE>
<CAPTION>
Class Y Year Ended June 30, 2000 1999 1998(1)
====================================================================================
<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 1.27 1.28 .90
Net realized and unrealized gain (loss) (1.18) (1.39) (.08)
--------------------------------
Total income (loss) from
investment operations .09 (.11) .82
------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (1.29) (1.29) (.88)
--------------------------------
Total dividends and/or distributions
to shareholders (1.29) (1.29) (.88)
------------------------------------------------------------------------------------
Net asset value, end of period $11.82 $13.02 $14.42
================================
====================================================================================
Total Return, at Net Asset Value(2) 0.85% (0.54)% 5.81%
====================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $54 $53 $11
------------------------------------------------------------------------------------
Average net assets (in millions) $54 $34 $6
------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 10.30% 9.73% 9.14%
Expenses 0.86% 0.76% 0.81%(4)
------------------------------------------------------------------------------------
Portfolio turnover rate 24% 43% 117%
</TABLE>
1. For the period from October 15, 1997 (inception of offering) to June 30,
1998.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
37 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Significant Accounting Policies
Oppenheimer High Yield Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's primary 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.
(the Manager), believes do not involve undue risk.
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 a
front-end sales charge. Class B and Class C shares are sold without a front-end
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 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. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value.)
--------------------------------------------------------------------------------
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 are leveraged, which increases the notes' volatility
relative to the principal of the security. Fluctuations in value of these
securities are recorded as unrealized gains and losses in the accompanying
financial statements. As of June 30, 2000, the market value of these securities
comprised 1.08% of the Fund's net assets and resulted in realized and unrealized
losses in the current period of $6,024,890. The Fund also hedges a portion of
the foreign currency exposure generated by these securities, as discussed in
Note 5.
38 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
--------------------------------------------------------------------------------
Securities Purchased on a When-Issued Basis. Delivery and payment for securities
that have been purchased by the Fund on a when-issued basis can take place a
month or more after the trade date. Normally the settlement date occurs within
six months after the trade date; however, the Fund may, from time to time,
purchase securities whose settlement date extends beyond six months and possibly
as long as two years or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
segregated assets with a market value equal to or greater than the amount of its
purchase commitments. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of the Fund's net asset value to
the extent the Fund makes such purchases while remaining substantially fully
invested. As of June 30, 2000, the Fund had entered into outstanding net
when-issued or forward commitments of $1,903,875.
In connection with its ability to purchase securities on a when-issued basis,
the Fund may enter into mortgage dollar-rolls in which the Fund sells securities
for delivery in the current month and simultaneously contracts with the same
counterparty to repurchase similar (same type, coupon and maturity) but not
identical securities on a specified future date. The Fund records each
dollar-roll as a sale and a new purchase transaction.
--------------------------------------------------------------------------------
Security Credit Risk. The Fund invests in high yield securities, which may be
subject to a greater degree of credit risk, greater market fluctuations and risk
of loss of income and principal, and may be more sensitive to economic
conditions than lower yielding, higher rated fixed income securities. The Fund
may acquire securities in default, and is not obligated to dispose of securities
whose issuers subsequently default. As of June 30, 2000, securities with an
aggregate market value of $10,146,108, representing 0.61% 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.
39 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
1. Significant Accounting Policies Continued
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.
--------------------------------------------------------------------------------
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, 2000, the
Fund had available for federal income tax purposes an unused capital loss
carryover as follows:
<TABLE>
<CAPTION>
Expiring
-------------------------------------
<S> <C>
2001 $21,167,867
2003 14,430,060
2004 25,763,959
2007 30,649,297
2008 35,734,504
</TABLE>
--------------------------------------------------------------------------------
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 Dividends and 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 dividends and distributions made during the
fiscal 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 dividends and 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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended June 30, 2000, amounts have been reclassified to reflect a decrease
in paid-in capital of $42,206,495, an increase in undistributed net investment
income of $495,969, and a decrease in accumulated net realized loss on
investments of $41,710,526. Net assets of the Fund were unaffected by the
reclassifications.
40 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
--------------------------------------------------------------------------------
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 accreted 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.
41 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS 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>
Year Ended June 30, 2000 Year Ended June 30, 1999
Shares Amount Shares Amount
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 35,234,977 $ 436,531,845 32,012,691 $ 425,721,467
Dividends and/or distributions
reinvested 5,658,146 69,577,059 5,234,985 69,582,895
Redeemed (43,710,834) (541,024,464) (31,832,727) (425,017,289)
--------------------------------------------------------------
Net increase (decrease) (2,817,711) $ (34,915,560) 5,414,949 $ 70,287,073
==============================================================
-------------------------------------------------------------------------------------------------
Class B
Sold 13,593,526 $ 167,147,993 21,331,218 $ 282,008,116
Dividends and/or distributions
reinvested 1,891,136 23,058,610 1,810,370 23,848,743
Redeemed (21,786,396) (267,798,468) (15,125,912) (200,508,371)
--------------------------------------------------------------
Net increase (decrease) (6,301,734) $ (77,591,865) 8,015,676 $ 105,348,488
==============================================================
-------------------------------------------------------------------------------------------------
Class C
Sold 4,409,452 $ 54,511,030 5,602,995 $ 74,516,748
Dividends and/or distributions
reinvested 366,460 4,504,351 325,453 4,315,117
Redeemed (5,023,774) (62,128,293) (3,294,631) (43,759,688)
--------------------------------------------------------------
Net increase (decrease) (247,862) $ (3,112,912) 2,633,817 $ 35,072,177
==============================================================
-------------------------------------------------------------------------------------------------
Class Y
Sold 1,340,236 $ 16,526,660 3,704,375 $ 48,757,945
Dividends and/or distributions
reinvested 471,867 5,769,681 244,820 3,235,007
Redeemed (1,301,466) (15,979,275) (660,742) (8,713,457)
--------------------------------------------------------------
Net increase 510,637 $ 6,317,066 3,288,453 $ 43,279,495
==============================================================
</TABLE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended June 30, 2000, were $409,578,518
and $479,151,504, respectively.
As of June 30, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $1,846,111,162 was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 36,322,721
Gross unrealized depreciation (239,183,894)
-------------
Net unrealized depreciation $(202,861,173)
=============
</TABLE>
42 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
================================================================================
4. 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 year ended June 30, 2000 was an annualized
rate of 0.60%, before any waiver by the Manager if applicable.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer 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
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
June 30, 2000 $1,624,414 $460,832 $132,464 $2,915,095 $230,485
</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
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
June 30, 2000 $24,884 $1,975,625 $47,176
</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.
43 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
4. 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 year ended June 30, 2000, payments under
the Class A plan totaled $2,662,868, all of which were paid by the Distributor
to recipients, and included $59,832 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 year ended June 30, 2000,
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 $5,108,269 $4,195,258 $15,564,674 3.43%
Class C Plan 873,017 381,475 1,548,674 1.88
</TABLE>
44 | 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 June 30, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Contract Valuation as of Unrealized Unrealized
Contract Description Expiration Date Amount (000s) June 30, 2000 Appreciation Depreciation
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contracts to Sell
British Pound Sterling (GBP) 9/5/00 22,145 GBP $33,567,750 $ - $398,166
Canadian Dollar (CAD) 11/1/00 7,485 CAD 5,068,006 - 61,317
Euro (EUR) 10/6/00 13,500 EUR 13,019,544 60,194 -
-----------------------
Total Unrealized Appreciation and Depreciation $60,194 $459,483
=======================
</TABLE>
45 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
6. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to
broadly-based securities indices "financial futures" or debt securities
"interest rate futures" in order to gain exposure to or to seek to protect
against changes in market value of stock and bonds or 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 decreases in market value of 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 recognizes a realized gain or loss when the contract is closed
or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
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.
As of June 30, 2000, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Unrealized
Expiration Number of Valuation as of Appreciation
Contract Description Date Contracts June 30, 2000 (Depreciation)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase
U.S. Long Bond Futures 9/20/00 100,000 $4,867,188 $ --
U.S. Treasury Nts., 10 yr. 9/20/00 100,000 4,924,219 50,391
--------
50,391
--------
Contracts to Sell
U.S. Treasury Nts., 2 yr. 9/28/00 200,000 9,918,750 (51,562)
---------
$ (1,171)
=========
</TABLE>
46 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
================================================================================
7. Illiquid or Restricted Securities
As of June 30, 2000, 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 June 30, 2000 was $152,128,660,
which represents 9.19% of the Fund's net assets, of which $24,229,831 is
considered restricted. Information concerning restricted securities is as
follows:
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Dates Cost Per Unit June 30, 2000
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bonds
TAG Heuer International SA, 12% Sr.
Sub. Nts., 12/15/05 12/8/95-5/14/96 100-105.25% 107.64%
----------------------------------------------------------------------------------------------------
Trans World Airlines Lease, 14%
Equipment Trust, 7/2/08 3/19/98 101.00 83.00
Stocks and Warrants
Becker Gaming, Inc. Wts., Exp. 11/15/00 11/18/93 $ 2.00 $ --
----------------------------------------------------------------------------------------------------
CGA Group Ltd., Series A 6/17/97-6/28/00 25.00 25.00
----------------------------------------------------------------------------------------------------
CGA Group Ltd. Wts., Exp. 6/16/07 6/17/97 -- 0.30
----------------------------------------------------------------------------------------------------
Chesapeake Energy Corp. 6/27/00 5.83 6.75
----------------------------------------------------------------------------------------------------
ECM Fund, LPI 4/14/92 1,000.00 876.25
----------------------------------------------------------------------------------------------------
Forcenergy, Inc. 4/18/00 15.25 20.13
----------------------------------------------------------------------------------------------------
World Access, Inc., Cv. Sr., Series D, Non-Vtg. 2/14/00 1,381.50 870.00
</TABLE>
================================================================================
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 year ended June 30, 2000.
47 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer High Yield Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer High Yield Fund, including the statement of investments, as of June
30, 2000, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 2000, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Oppenheimer High Yield Fund as of June 30, 2000, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
July 24, 2000
48 | OPPENHEIMER HIGH YIELD FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Dividends paid by the Fund during the fiscal year ended June 30, 2000 which
are not designated as capital gain distributions should be multiplied by 7% to
arrive at the net amount eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
49 | 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 L. 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 J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder Servicing
Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors Deloitte & Touche LLP
================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of
Oppenheimer High Yield Fund. This report must be
preceded or accompanied by a Prospectus of Oppenheimer
High Yield Fund. For other 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.
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.
50 | 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
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Money Market(4)
Money Market Fund Cash Reserves
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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 OOppenheimer Equity Income Fund.O
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.
51 | OPPENHEIMER HIGH YIELD FUND
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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(1)
www.oppenheimerfunds.com
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General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
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Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
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PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
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Mon-Fri 9am-6:30pm ET
1.800.843.4461
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OppenheimerFunds Market Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
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Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
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Ticker Symbols Class A: OPPHX Class B: OHYBX Class C: OHYCX Class Y: OHYYX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
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RA0280.001.0600 August 29, 2000
