OPPENHEIMER MORTGAGE INCOME FUND
Supplement Dated January 3, 1995, to the Prospectus
Dated January 20, 1994
The Prospectus is amended as follows:
1. The section entitled "Alternative Sales Arrangements" is amended by
revising the first sentence of the fifth paragraph on page 11 to read as
follows: "Net asset value per share is determined for each class of shares
as of the close of The New York Stock Exchange on each day the Exchange
is open (a "regular business day") by dividing the value of the Fund's net
assets attributable to a class by the number of shares of that class that
are outstanding."
2. The section entitled "Alternative Sales Arrangements" is amended by
revising the first two sentences of the first full paragraph on page 12
to read as follows: "In most cases, to enable you to receive that day's
offering price, the Distributor must receive your order by the time of day
The New York Stock Exchange closes, which is normally 4:00 P.M., New York
time, but may be earlier on some days (all references to time in this
Prospectus mean 'New York time'). If you buy shares through a dealer, the
dealer must receive your order by the close of The New York Stock Exchange
on a regular business day and transmit it to the Distributor so that it
is received before the Distributor's close of business that day, which is
normally 5:00 P.M."
3. The second sentence of the first paragraph of the section "Class A
Shares" on page 12 is revised to read as follows: "The offering price is
determined as of the close of The New York Stock Exchange on each regular
business day."
4. The first paragraph of the section entitled AccountLink beginning on
page 18 is revised by replacing the text after the eighth sentence with
the following: "Dividends will begin to accrue on shares purchased by the
proceeds of ACH transfers on the business day the Fund receives Federal
Funds for the purchase through the ACH system before the close of The New
York Stock Exchange. The Exchange normally closes at 4:00 P.M., but may
close earlier on certain days. If Federal Funds are received on a
business day after the close of the Exchange, the shares will be purchased
and dividends will begin to accrue on the next regular business day. The
proceeds of ACH transfers are normally received by the Fund 3 days after
the transfers are initiated. The Distributor and the Fund are not
responsible for any delays in purchasing shares resulting from delays in
ACH transmissions."
5. The first paragraph of the section entitled "Telephone Redemptions"
on page 20 is amended by revising the sixth sentence to read as follows:
"To receive the redemption price on a regular business day, your call must
be received by the Transfer Agent by the close of The New York Stock
Exchange that day, which is normally 4:00 P.M. but may be earlier on some
days."
6. The second sentence of the section entitled "Repurchase" starting on
page 22 is amended to read as follows: "The repurchase price per share
will be the net asset value next computed after the Distributor receives
the order placed by the dealer or broker, except that if the Distributor
receives a repurchase order from a dealer or broker after the close of The
New York Stock Exchange on a regular business day, it will be processed
at that day's net asset value if the order was received by the dealer or
broker from its customer prior to the time the Exchange closes (normally,
that is 4:00 P.M., but may be earlier on some days) and the order was
transmitted to and received by the Distributor prior to its close of
business that day (normally 5:00 P.M.)."
7. The section entitled "How To Exchange Shares" on page 24 is amended
by revising the fourth sentence in the first paragraph to read as follows:
"Shares are normally redeemed from one fund and purchased from the other
fund in the exchange transaction on the same regular business day on which
the Transfer Agent receives an exchange request that is in proper form by
the close of The New York Stock Exchange that day, which is normally 4:00
P.M. but may be earlier on some days."
January 3, 1995
OPPENHEIMER MORTGAGE INCOME FUND
Supplement dated January 3, 1995 to the
Statement of Additional Information dated January 20, 1994
The Statement of Additional Information is amended by revising the
first sentence of the section entitled "Determination of Net Asset Value
Per Share" under "Purchase, Redemption and Pricing of Shares" starting on
page 14 to read as follows, and a new second sentence is added to that
section as follows: "The net asset values per share of Class A and Class
B shares of the Fund are determined as of the close of business of The New
York Stock Exchange on each day that the Exchange is open, by dividing the
Fund's net assets attributable to a class by the number of shares of that
class that are outstanding. The Exchange normally closes at 4:00 P.M.,
New York time, but may close earlier on some days (for example, in case
of weather emergencies or one days falling before a holiday)."
January 3, 1995
