OPPENHEIMER U.S. GOVERNMENT TRUST
Supplement Dated April 26, 1996 to the
Prospectus dated November 1, 1995
The Prospectus is amended as follows:
1. The first and second sentences of the third paragraph under the
heading "Mortgage-Backed Securities" on page 10 are deleted and replaced
with the following:
As a matter of fundamental policy, the Fund will invest at least 80% of
its total assets in U.S. Government Securities, under normal market
conditions. The Fund expects that any investments in debt securities
other than U.S. Government Securities will be limited to debt securities
rated within the four highest rating categories of Moody's Investors
Service, Inc., Standard & Poor's Corporation, Fitch Investors Service,
Inc. Duff & Phelps, Inc. or another nationally recognized rating agency,
or, if unrated, judged by the Manager to be of comparable quality to debt
securities rated within such grades, although it is not a fundamental
policy that it do so.
2. The following is added to the Prospectus as Appendix A:
APPENDIX A
SPECIAL SALES CHARGE ARRANGEMENTS FOR SHAREHOLDERS OF THE FUND WHO WERE
SHAREHOLDERS OF THE FORMER CONNECTICUT MUTUAL FUNDS
Certain of the sales charge rates and waivers for Class A and Class
B shares of the Fund described elsewhere in this Prospectus are modified
as described below for those shareholders of Connecticut Mutual Liquid
Account, Connecticut Mutual Government Securities Account, Connecticut
Mutual Income Account, Connecticut Mutual Growth Account, Connecticut
Mutual Total Return Account, CMIA LifeSpan Diversified Income Account,
CMIA LifeSpan Capital Appreciation Account and CMIA LifeSpan Balanced
Account (the "Former Connecticut Mutual Funds") on March 1, 1996, when
OppenheimerFunds, Inc. became the investment adviser to the Former
Connecticut Mutual Funds.
PRIOR CLASS A CDSC and CLASS A SALES CHARGE WAIVERS
Class A Contingent Deferred Sales Charge. Certain shareholders of
the Fund who were shareholders of the Former Connecticut Mutual Funds are
entitled to continue to make additional purchases of the Fund's Class A
shares at net asset value without Class A initial sales charge, but
subject to the Class A contingent deferred sales charge that was in effect
prior to March 18, 1996 (the "prior Class A CDSC"). Under the prior Class
A CDSC, if any of those shares are redeemed within one year of purchase,
they will be assessed a 1% contingent deferred sales charge on an amount
equal to the current market value or the original purchase price of the
shares sold, whichever is smaller (in such redemptions, any shares not
subject to the prior Class A CDSC will be redeemed first).
Those shareholders who are eligible for the prior Class A CDSC are:
(1) persons whose purchases of Class A shares of the Former Connecticut
Mutual Funds were $500,000 prior to March 18, 1996, as a result of direct
purchases or purchases pursuant to the Funds' policies on Combined
Purchases or Rights of Accumulation, who held those shares in the Former
Connecticut Mutual Funds on April 25, 1996, and (2) persons whose intended
purchases under a Statement of Intention entered into prior to March 18,
1996, with the Former Connecticut Mutual Funds' general distributor to
purchase shares valued at $500,000 or more over a 13-month period
entitling those persons to purchase shares at net asset value without
being subject to Class A initial sales charge.
Any of the Class A shares of the Former Connecticut Mutual Funds that
were purchased at net asset value prior to March 18, 1996, remain subject
to the prior Class A CDSC, or if any additional shares of the Fund are
purchased by those shareholders at net asset value pursuant to this
arrangement they will be subject to the prior Class A CDSC.
Class A Sales Charge Waivers. Additional Class A shares of the Fund may
be purchased without a sales charge by a person who was in one (or more)
of the categories below and acquired Class A shares of the Former
Connecticut Mutual Funds prior to March 18, 1996, and still held those
Class A shares on April 25, 1996:
(1) any purchaser, provided the total initial amount invested in any
one or more of the Former Connecticut Mutual Funds totaled $500,000 or
more, including investments made pursuant to the Combined Purchases,
Statement of Intention and Rights of Accumulation features available at
the time of the initial purchase and such investment was held in one or
more of the Former Connecticut Mutual Funds on April 25, 1996; (2) any
participant in a qualified plan, provided that the total initial amount
invested by the plan in any one or more of the Former Connecticut Mutual
Funds totaled $500,000 or more; (3) Directors of any one or more of the
Former Connecticut Mutual Funds and members of their immediate families;
(4) employee benefit plans sponsored by Connecticut Mutual Financial
Services, L.L.C. ("CMFS"), the distributor for the Former Connecticut
Mutual Funds, and its affiliated companies; (5) one or more members of a
group of at least 1,000 persons (and persons who are retirees from such
group) engaged in a common business, profession, civic or charitable
endeavor or other activity, and the spouses and minor dependent children
of such persons, pursuant to a marketing program between CMFS and such
group; and (6) an institution acting as a fiduciary on behalf of an
individual or individuals, if such institution was directly compensated
by the individual(s) for recommending the purchase of the shares of any
one or more of the Former Connecticut Mutual Funds, provided the
institution had an agreement with CMFS. Purchases of Class A shares of
the Former Connecticut Mutual Funds made pursuant to (1) and (2) above may
be subject to the Class A CDSC of the Former Connecticut Mutual Funds
described above.
Additionally, Class A shares of the Fund may be purchased without a
sales charge by any holder of a variable annuity contract issued in New
York State by Connecticut Mutual Life Insurance Company through the
Panorama Separate Account which is beyond the applicable surrender charge
period and which was used to fund a qualified plan, if that holder
exchanges the variable annuity contract proceeds to buy Class A shares of
the Fund.
CLASS A AND CLASS B CONTINGENT DEFERRED SALES CHARGE WAIVERS
In addition to the waivers set forth in "How to Buy Shares," above,
the contingent deferred sales charge will be waived for redemptions of
Class A and Class B shares of the Fund and exchanges of Class A or Class
B shares of the Fund into Class A or Class B shares of a Former
Connecticut Mutual Fund provided that the Class A or Class B shares of the
Fund to be redeemed or exchanged were (i) acquired prior to March 18, 1996
or (ii) were acquired by exchange from an Oppenheimer fund that was a
Former Connecticut Mutual Fund and the shares of such Former Connecticut
Mutual Fund were purchased prior to March 18, 1996:
(1) by the estate of a deceased shareholder; (2) upon the disability
of a shareholder, as defined in Section 72(m)(7) of the Internal Revenue
Code, (3) for retirement distributions (or loans) to participants or
beneficiaries from retirement plans qualified under Sections 401(a) or
403(b)(7) of the Code, or from IRAs, deferred compensation plans created
under Section 457 of the Code, or other employee benefit plans; (4) as
tax-free returns of excess contributions to such retirement or employee
benefit plans; (5) in whole or in part, in connection with shares sold to
any state, county, or city, or any instrumentality, department, authority,
or agency thereof, that is prohibited by applicable investment laws from
paying a sales charge or commission in connection with the purchase of
shares of any registered investment management company; (6) in connection
with the redemption of shares of the Fund due to a combination with
another investment company by virtue of a merger, acquisition or similar
reorganization transaction; (7) in connection with the Fund's right to
involuntarily redeem or liquidate the Fund; (8) in connecting with
automatic redemptions of Class A shares and Class B shares in certain
retirement plan accounts pursuant to an Automatic Withdrawal Plan but
limited to no more than 12% of the original value annually; and (9) as
involuntary redemptions of shares by operation of law; or under procedures
set forth in the Fund's Articles of Incorporation, or as adopted by the
Board of Trustees of the Fund.
April 26, 1996 PS0220.006
