IMPORTANT NOTICE
Your Clients who own shares of Oppenheimer Mortage Income Fund will
soon be asked to approve the Fund's reorganization into Oppenheimer
U.S. Government Trust. The attached letter outlining the expected
benefits of this proposed reorganization is going to all Oppenheimer
Mortgage Income Fund shareholders.
As explained in this letter, Oppenheimer U.S. Government Trust has a
stronger performance history than Oppenheimer Mortgage Income Fund. In
addition, Oppenheimer Management Corporation believes, and the Board of
Trustees of Oppenheimer Mortgage Income Fund agrees, that combining
these two funds offers the potential for economies of scale that could
lead to lower expenses for Oppenheimer Mortgage Income Fund
shareholders.
Oppenheimer Mortgage Income Fund offers Class A and B shares;
Oppenheimer U.S. Government Trust currently offers Class A and C
shares. When this reorganization takes place, Oppenheimer U.S.
Government Trust will offer Class A, B, and C shares.
Before the proposed reorganization can occur, shareholders of
Oppenheimer U.S. Government Trust must approve a change in that Fund's
fundamental investment policies such that, under normal market
conditions, it will invest at least 80% of its total assets in debt
instruments issued or guaranteed by the U.S. government or its agencies
or instrumentalities. The balance will be invested in investment-grade
securities or the equivalent when acquired.
Proxy statements will be mailed to Oppenheimer Mortgage Income Fund
shareholders in late May and June. We urge you to encourage your
clients to vote in favor of this pending reorganization, and to return
their proxy ballots as soon as possible.
Oppenheimer Mortgage Income Fund currently offers NAV transfer
privileges for shareholders who are trasferring assets from another
mutual fund (except other OppenheimerFunds). Oppenheimer U.S.
Government Trust added NAV transfer privileges as of April 21, 1995.
This privilege requires the following:
- - Proceeds must be from shares of a non-Oppenheimer mutual fund on
which an initial sales charge or contingent deferred sales charge was
paid.
- - Redemption must have occurred within 12 months of transfer of
proceeds to an OppenheimerFund.
- - Transfers from UITs, variable annuity or variable life products, or
closed-end funds are excluded.
Fourteen OppenheimerFunds, in addition to Oppenheimer Mortgage Income
Fund and Oppenheimer U.S. Government Trust, now offer NAV transfers.
If you have and questions or would like copies of the proxy statements,
please contact your regional sales representative at 1-800-225-2750.
Financial institutions please call 1-800-225-2770. Brokerage firms in
New York state, New Jersey, and Delaware, please call 1-800-848-3487.
(OppenheimerFunds Logo)
For broker/dealser information only. This material has been prepared
by Oppenheimer Funds Distributor, Inc. For dealer information only.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor,Inc.,
Two World Trade Center, New Your, NY 10048-0203.
