<PAGE>
OPPENHEIMER CHAMPION HIGH YIELD FUND
SEMI-ANNUAL REPORT MARCH 31, 1994
[logo]
"WE NEED ADDITIONAL INCOME SO WE CAN DO ALL THE THINGS WE'VE PLANNED.
"WE'RE GLAD WE CHOSE THIS HIGHLY-RANKED BOND FUND-IT'S GIVEN US THE LEVEL OF
INVESTMENT INCOME WE NEED."
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FUND FACTS
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FIVE FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER CHAMPION HIGH YIELD FUND
1 The Fund seeks primarily high current income, and secondarily, capital
growth from a diversified investment portfolio of higher-yielding,
lower-rated corporate bonds.
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2 For the 6-month period ended 3/31/94, total return at net asset value
for Class A shares was 4.28%. For the 12-month period ended 3/31/94,
that figure was 10.53%.(1) Average annual total returns for Class A
shares for the 1- and 5-year periods ended 3/31/94 and from inception
of the Fund on 11/16/87 were 5.28%, 13.20%, and 13.78%,
respectively.(2)
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3 The Fund received ***** from Morningstar, Inc.(3)
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4 The Fund's top five bond holdings as of 3/31/94:(4)
ARGENTINA (REPUBLIC OF)
MESA CAPITAL CORP.
OPI INTERNATIONAL, INC.
CELLULAR, INC.
HORIZON CELLULAR TELEPHONE LP/HORIZON FINANCE CORP.
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5 "We are optimistic about the prospects for high yield bonds. We feel
the volatility in the market caused by the recent rise in interest
rates creates some attractive buying opportunities. And the
strengthening economy supports high yield bond issuers. They have
improved their balance sheets over the past year by refinancing or
issuing new debt at lower interest rates. Additionally, high yield
bonds are generally not as sensitive to interest rate changes as other
fixed income securities."
PORTFOLIO MANAGER RALPH STELLMACHER, MARCH 31, 1994
IN THIS REPORT:
ANSWERS TO THREE TIMELY QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
/ / HOW HAVE THE RECENT INCREASES IN INTEREST RATES AFFECTED THE HIGH YIELD
MARKET?
/ / WHAT TYPES OF HIGH YIELD BONDS HAVE THE FUND'S MANAGERS EMPHASIZED AS THE
ECONOMY HAS STRENGTHENED?
/ / WHAT IS THE OUTLOOK FOR THE HIGH YIELD MARKET?
GET THE FACTS ABOUT BONDS AND BOND MUTUAL FUNDS. CALL 1-800-525-7048 FOR YOUR
FREE COPY OF OPPENHEIMERFUNDS "FACTS ABOUT BOND FUNDS" BROCHURE.
1. Total returns at net asset value are based on the change in net asset value
per Class A share from 9/30/93 and 3/31/93 to 3/31/94. The return would have
been less if the sales charge was deducted.
2. Average annual total returns are for a hypothetical investment held until
3/31/94 after deducting the maximum initial sales charge on Class A shares of
4.75%. The Fund's maximum sales charge rate on Class A shares was higher during
a portion of the periods shown and actual investment results will be different
as a result of that change.
3. Source: Morningstar, Inc., 3/31/94, an independent mutual fund monitoring
service which ranks funds in specific investment categories monthly by a
quantitative system that uses investment performance and risk assessment
factors, and adjusts for fees and sales loads. One star is the lowest ranking,
five stars is the highest. Of 2,253 funds evaluated by Morningstar in that
period, 195 funds received Morningstar's 5-star ranking. Risk assessment
reflects Fund performance relative to three-month Treasury bill returns.
4. The Fund's portfolio is subject to change.
Certain Class C performance data is not yet available, as Class C shares were
first offered on 12/1/93.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
2 Oppenheimer Champion High Yield Fund
<PAGE>
We are pleased to report that Oppenheimer Champion High Yield Fund has provided
shareholders with high current income for the six months ended March 31, 1994.
The Fund's standardized yield for Class A shares was 6.35% for the 30-day period
ended March 31, 1994.5 In recognition of the Fund's outstanding performance, it
received a ***** ranking from Morningstar, Inc.(6)
In the six months since our last report, increases in interest rates
have caused price volatility in the bond markets. After reaching a low point in
October, long-term interest rates increased in February and March after the
Federal Reserve pushed up short-term interest rates as a pre-emptive strike
against inflation. We feel the market has overreacted to the threat of inflation
caused by a strengthening economy, and expect growth to be moderate in the
latter half of the year-and thus, inflation should remain low. Additionally, a
growing economy will improve companies' credit ratings which is positive for
high yield bond issuers.
In the fourth quarter of 1993, we shifted our investment strategy to
position the Fund for a stable or rising interest rate environment. At that
time, we felt there was limited opportunity for continued interest rate declines
that would cause price appreciation and we began shortening the average maturity
of the portfolio to make it less vulnerable to a rise in interest rates.
Additionally, we sought attractive lower-rated securities in cyclical
industries, which are less sensitive to interest rate increases and usually
perform well as the economy expands. This strategy helped minimize the impact of
rising rates on the securities in the Fund's portfolio.
Our approach to buying and selling securities for the Fund is
conservative.(7) The Fund's managers carefully analyze each company's financial
health and prospects to determine if its high yield bond is priced attractively.
One recent purchase of an economically sensitive issue was Tiphook, a shipping
container leasing firm. When securities have peaked in price, we take profits as
we did this past December by selling several specialty retailing holdings which
had appreciated in price.
We are optimistic that high yield bonds will perform well despite the
recent volatility in the market. Several key factors that support good
performance for the high yield market remain in place: moderate economic growth
and relatively low inflation and interest rates.
Thank you for the trust you have placed in Oppenheimer Champion High
Yield Fund. We look forward to continuing to help you meet your financial goals.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain, Chairman Jon S. Fossel, President
Oppenheimer Champion High Yield Fund Oppenheimer Champion High Yield Fund
April 25, 1994
5. Standardized yield for Class C shares for the 30-day period ended 3/31/94 was
5.93%. Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 3/31/94, divided by the
maximum offering price at the end of the period, compounded semi-annually and
then annualized.
6. See footnote 3, page 2.
7. Investors should be aware that the lower-rated bonds in which the Fund
invests may be subject to greater market fluctuation and risks of loss of income
and principal and have less liquidity than higher-rated fixed income securities.
3 Oppenheimer Champion High Yield Fund
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STATEMENT OF INVESTMENTS March 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
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<S> <C> <C>
REPURCHASE AGREEMENTS-19.7%.
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Repurchase agreement with J.P. Morgan Securities, Inc., 3.53%,
dated 3/31/94, to be repurchased at $29,011,374 on 4/4/94,
collateralized by U.S. Treasury Nts., 4.25%-8.875%, 5/15/95-10/15/96,
with a value of $29,697,764 (Cost $29,000,000) $ 29,000,000 $29,000,000
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GOVERNMENT OBLIGATIONS-6.6%
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Argentina (Republic of) Bonos de Consolidacion de Deudas:
Bonds, Series I, 4.25%, 4/1/01(4)(6) 1,410,875(1) 795,884
Past Due Interest Bonds, 4.1875%, 3/31/05(4) 2,250,000 1,583,435
----------------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Matador Bonds, 8%, 8/5/03(5) 500,000 447,500
----------------------------------------------------------------------------------------------------
Bariven SA Sr. Nts., Gtd. by Petroleos de Venezuela, 10.75%, 7/8/97 1,000,000 625,946
----------------------------------------------------------------------------------------------------
Bonos y Obligacion del Estado Gtd. Bonds, 12.25%, 3/25/00 60,000,000(1) 509,218
----------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Interest Due and
Unpaid Bonds, 8.75%, 1/1/01(4) 99,000 69,671
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Federal National Mortgage Assn. Stripped Mort.-Backed
Security Trust 240, Class 2, 7%, 9/25/23 3,316,058 1,218,125
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Italy (Republic of) Treasury Bonds, 11%, 6/1/03 800,000,000(1) 539,968
----------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 4.50%, 1/1/09(4)(5) 1,500,000 939,000
----------------------------------------------------------------------------------------------------
Polish People's Republic Loan Participation Agreement:
5.0625%, 2/3/24(2) 1,000,000(1) 315,000
7.9375%, 2/8/24(2) 1,000,000(1) 187,185
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Spain (Kingdom of) Bonds, 9%, 2/28/97 100,000,000(1) 748,602
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Venezuela (Republic of):
Bonds, Series DL, 6%, 3/31/07 250,000 136,094
Disc. Bonds, Series DL, 4.3125%, 12/18/07 1,000,000 492,500
Disc. Bonds, Series W-A, 4.1875%, 3/31/20(4) 1,000,000 530,000
Front-Loaded Interest Reduction Bonds, Series A, 6%, 3/31/07(4) 1,000,000 544,375
------------
Total Long-Term Government Obligations (Cost $11,168,277) 9,682,503
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MUNICIPAL BONDS AND NOTES-0.8%
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Port of Portland, Oregon Taxable Special Obligation
Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 500,000 528,236
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San Joaquin Hills, California Transportation Corridor Agency Toll Road
Capital Appreciation Revenue Bonds, Jr. Lien, 0%, 1/1/28 13,500,000 611,968
------------
Total Municipal Bonds and Notes (Cost $1,191,840) 1,140,204
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CORPORATE BONDS AND NOTES-66.6%
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BASIC MATERIALS-9.3%
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CHEMICALS-2.6% Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 1,000,000 1,025,000
----------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc.:
0%/10.25% Gtd. Sr. Sec. Disc. Nts., 7/15/01(3) 250,000 207,500
10.75% Gtd. Sr. Sub. Nts., 10/15/03 500,000 510,000
----------------------------------------------------------------------------------------------------
Rexene Corp., 9% Fst. Priority Nts., 11/15/99(7) 1,000,000 938,750
----------------------------------------------------------------------------------------------------
Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05(3) 1,750,000 1,071,875
------------
3,753,125
4 Oppenheimer Champion High Yield Fund
<PAGE>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
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METALS-2.3% Armco, Inc.:
13.50% Sr. Nts., 6/15/94 $ 131,000 $ 132,638
8.50% SF Debs., 9/1/01 275,000 265,719
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Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00 400,000 402,000
----------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp.:
9.875% Sr. Nts., 2/15/02 200,000 186,000
12.75% Sr. Sub. Nts., 2/1/03 1,170,000 1,193,400
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Stelco, Inc.:
9.75% Debs., 4/1/95 500,000(1) 358,944
10.25% Debs., 4/30/96 300,000(1) 216,451
10.40% Debs., 11/30/09 800,000(1) 577,927
------------
3,333,079
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PAPER AND FOREST Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02(2) 50,000 38,250
PRODUCTS-4.4% ----------------------------------------------------------------------------------------------------
Gaylord Container Corp., 0%/12.75% Sr. Sub. Disc. Debs., 5/15/05(3) 1,450,000 1,181,750
----------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 900,000 886,500
----------------------------------------------------------------------------------------------------
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 1,000,000 935,000
----------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc.:
9.25% Fst. Priority Sr. Sec. Nts., 2/1/02 525,000 504,000
9.875% Sr. Nts., 5/1/06 600,000 573,000
----------------------------------------------------------------------------------------------------
Riverwood International Corp., 11.25% Sr. Sub. Nts., 6/15/02 1,000,000 1,070,000
----------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 1,500,000 1,372,500
------------
6,561,000
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CONSUMER CYCLICALS-24.2%
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AUTOMOTIVE-2.3% Envirotest Systems Corp.:
9.125% Sr. Nts., 3/15/01 500,000 477,500
9.625% Sr. Sub. Nts., 4/1/03 1,000,000 960,000
----------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02 450,000 479,250
----------------------------------------------------------------------------------------------------
Penda Industries, Inc., 10.75% Sr. Nts., 3/1/04(5) 975,000 965,250
----------------------------------------------------------------------------------------------------
Sealed Power Technologies LP, 14.50% Sr. Sub. Debs., 5/15/99 500,000 532,500
------------
3,414,500
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CONSTRUCTION SUPPLIES Hillsborough Holdings Corp.,
AND DEVELOPMENT-2.3% 7.50% Loan Participation Agreement, 12/30/99(2)(5) 1,000,000 1,305,000
----------------------------------------------------------------------------------------------------
Trizec Corp. Ltd.:
10% Debs., 10/1/96(2) 1,400,000(1) 891,122
10.25% Sr. Debs., 6/22/99(2) 500,000(1) 313,737
----------------------------------------------------------------------------------------------------
USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 850,000 858,500
------------
3,368,359
5 Oppenheimer Champion High Yield Fund
<PAGE>
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STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
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CONSUMER GOODS AND Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98 $ 650,000 $ 412,750
SERVICES-4.4% ----------------------------------------------------------------------------------------------------
Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01 1,100,000 1,108,250
----------------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series A, 10/1/03(5) 1,000,000 1,005,000
----------------------------------------------------------------------------------------------------
Genesco, Inc., 10.375% Sr. Nts., 2/1/03 500,000 437,500
----------------------------------------------------------------------------------------------------
Insilco Corp., 10.375% Sr. Sec. Nts., 7/1/97 495,000 492,525
----------------------------------------------------------------------------------------------------
Interco, Inc., 9% Sec. Nts., Series B, 6/1/04 698,000 680,550
----------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts., 11/1/03(5) 1,000,000 955,000
----------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., Series B, 3/15/98 1,500,000 690,000
----------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 650,000 718,250
------------
6,499,825
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ENTERTAINMENT-5.5% Arizona Charlie's, Inc., 12% Fst. Mort. Nts., Series A, 11/15/00(5) 275,000 276,375
----------------------------------------------------------------------------------------------------
Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 600,000 615,000
----------------------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 600,000 591,000
----------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., Units(5) 750,000 893,128
----------------------------------------------------------------------------------------------------
Capital Queen & Casino, Inc., 12% Fst. Mort. Nts., Series A, 11/15/00(5) 200,000 180,000
----------------------------------------------------------------------------------------------------
Casino America, Inc., Units 500,000 517,500
----------------------------------------------------------------------------------------------------
Empress River Casino Finance Corp., 10.75% Gtd. Sr. Nts., 4/1/02 215,000 215,000
----------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units(4)(5) 250,000 245,875
----------------------------------------------------------------------------------------------------
Marvel (Parent) Holdings, Inc., 0% Sr. Sec. Disc. Nts., 4/15/98 1,250,000 778,125
----------------------------------------------------------------------------------------------------
Marvel Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 4/15/98 310,000 192,975
----------------------------------------------------------------------------------------------------
Resorts International, Inc., 0% Sec. Fst. Mort.
Non-Recourse Pass-Through Nts., 6/30/00 1,010,000 893,850
----------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 1,200,000 1,194,000
----------------------------------------------------------------------------------------------------
Treasure Bay Gaming & Resorts, Inc., Units(5) 655,000 661,550
----------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 7% Sub. Nts., 11/15/05(6)(7) 860 747
----------------------------------------------------------------------------------------------------
United Gaming, Inc., 7.50% Cv. Sub. Debs., 9/15/03 750,000 761,250
------------
8,016,375
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MEDIA-4.1% Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series B, 10/1/03 1,000,000 1,007,500
----------------------------------------------------------------------------------------------------
Argyle Television Operations, 9.875% Sr. Sub. Nts., 12/30/03 500,000 470,000
----------------------------------------------------------------------------------------------------
General Media, Inc., 10.625% Sr. Sec. Nts., 12/31/00(5) 500,000 497,500
----------------------------------------------------------------------------------------------------
News America Holdings, Inc., 10.125% Gtd. Sr. Debs., 10/15/12 700,000 789,543
----------------------------------------------------------------------------------------------------
SCI Television, Inc.:
7.50% Fst. Sec. Loan Nts., 6/30/98 357,000 342,720
11% Sr. Sec. Nts., 6/30/05 550,000 550,000
----------------------------------------------------------------------------------------------------
SFX Broadcasting, Inc., 11.375% Sr. Sub. Nts., Class A, 10/1/00 750,000 761,250
----------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 12/15/03 1,000,000 1,005,000
----------------------------------------------------------------------------------------------------
Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 1/15/01 500,000 547,500
------------
5,971,013
6 Oppenheimer Champion High Yield Fund
<PAGE>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- - -----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE DEVELOPMENT-1.9% Hees International Corp., 10% Sr. Nts., 8/23/99 $1,000,000(1) $ 660,023
----------------------------------------------------------------------------------------------------
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 1,250,000 1,278,125
----------------------------------------------------------------------------------------------------
Olympia & York First Canadian Place Ltd., 11% Debs., Series 3, 11/4/49(2) 1,250,000(1) 594,473
----------------------------------------------------------------------------------------------------
UDC Homes, Inc., 11.75% Sr. Nts., 4/30/03 300,000 309,000
------------
2,841,621
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-----------------------------------------------------------------------------------------------------
RETAIL-3.7% Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts., Series B, 9/1/03 500,000 512,500
----------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 1,050,000 1,081,500
----------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Units(5) 1,000,000 1,021,250
----------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., 0%/12% Sr. Disc. Debs., 5/1/05(3) 1,000,000 630,000
----------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 425,000 427,125
----------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc.,
11.50% Sr. Sec. Disc. Nts., 8/15/03 1,000,000 502,500
----------------------------------------------------------------------------------------------------
Musicland Group, Inc. (The), 9% Sr. Sub. Nts., 6/15/03 750,000 720,000
----------------------------------------------------------------------------------------------------
Zale Delaware, Inc., 11% Gtd. 2nd Priority Sr. Sec. Nts., 7/30/00 500,000 507,500
------------
5,402,375
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CONSUMER NON-CYCLICALS-7.3%
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FOOD-1.9% ARA Group, Inc. (The), 12.50% Sub. Debs., 7/15/01 450,000 480,938
----------------------------------------------------------------------------------------------------
Flagstar Corp., 10.75% Sr. Nts., 9/15/01 700,000 694,750
----------------------------------------------------------------------------------------------------
Heileman Acquisition Corp., 9.625% Sr. Sub. Nts., 1/31/04 800,000 748,000
----------------------------------------------------------------------------------------------------
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00 900,000 886,500
------------
2,810,188
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FOOD AND DRUG Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05(6) 1,263,000 1,286,681
DISTRIBUTION-3.3% ----------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 700,000 731,500
----------------------------------------------------------------------------------------------------
Duane Reade, 12% Sr. Nts., Series B, 9/15/02 500,000 537,500
----------------------------------------------------------------------------------------------------
Grand Union Co., 11.25% Sr. Nts., 7/15/00 500,000 498,750
----------------------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 1,100,000 1,083,500
----------------------------------------------------------------------------------------------------
Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 700,000 717,500
------------
4,855,431
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HEALTHCARE-2.1% Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02 365,000 348,575
----------------------------------------------------------------------------------------------------
Epic Healthcare Group, Inc., 10.875% Sr. Sub. Nts., 6/1/03 1,050,000 1,218,000
----------------------------------------------------------------------------------------------------
Epic Holdings, Inc., 0%/12% Sr. Def. Cpn. Nts., 3/15/02(3) 1,100,000 880,000
----------------------------------------------------------------------------------------------------
Healthtrust, Inc.-The Hospital Co., 10.75% Sub. Nts., 5/1/02 600,000 633,000
------------
3,079,575
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ENERGY-4.5%
- - -----------------------------------------------------------------------------------------------------------------------------------
Bridge Oil (USA), Inc., 9.50% Sr. Nts., 8/15/00 1,000,000 995,000
----------------------------------------------------------------------------------------------------
Maxus Energy Corp.:
9.875% Nts., 10/15/02 100,000 95,500
11.50% Debs., 11/15/15 500,000 522,500
----------------------------------------------------------------------------------------------------
Mesa Capital Corp.:
0%/12.75% Disc. Nts., 6/30/96(3) 2,000 1,685
0%/12.75% Sec. Disc. Nts., 6/30/98(3) 1,698,000 1,515,465
7 Oppenheimer Champion High Yield Fund
<PAGE>
----------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- - -----------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED) OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 $1,225,000 $1,427,125
----------------------------------------------------------------------------------------------------
Presidio Oil Co.:
11.50% Sr. Sec. Nts., Series B, 9/15/00 450,000 451,125
14.36% Sr. Sub. Gas Indexed Nts., 7/15/02(4) 600,000 610,500
----------------------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 1,000,000 1,035,000
------------
6,653,900
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FINANCIAL-2.5%
- - -----------------------------------------------------------------------------------------------------------------------------------
Acme Holdings, Inc., 11.75% Sr. Nts., 6/1/00 400,000 350,000
----------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(5) 1,000,000 1,025,000
----------------------------------------------------------------------------------------------------
ECM Fund L.P.I., 14% Sub. Nts., 6/10/02(5) 833,853 935,167
----------------------------------------------------------------------------------------------------
Life Partners Group, Inc., 12.75% Sr. Sub. Nts., 7/15/02 700,000 801,500
----------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03 600,000 546,750
------------
3,658,417
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INDUSTRIAL-6.3%
- - -----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS-2.1% Envirodyne Industries, Inc.:
0%/14.50% Sr. Disc. Nts., 8/1/97(2)(3) 1,000,000 895,000
10.25% Sr. Nts., 12/1/01 400,000 396,000
----------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 11% Sr. Debs., 12/1/03 695,000 762,763
----------------------------------------------------------------------------------------------------
Sea Containers Ltd.:
9.50% Sr. Nts., 7/1/03 250,000 243,750
12.50% Sr. Sub. Debs., Series A, 12/1/04 500,000 556,250
12.50% Sr. Sub. Debs., Series B, 12/1/04 100,000 113,250
----------------------------------------------------------------------------------------------------
Terex Corp., Units(5) 100,000 95,000
------------
3,062,013
- - -----------------------------------------------------------------------------------------------------------------------------------
GENERAL INDUSTRIAL-2.7% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 500,000 472,500
----------------------------------------------------------------------------------------------------
Imo Industries, Inc.:
12.25% Sr. Sub. Debs., 8/15/97 1,100,000 1,091,750
12% Sr. Sub. Debs., 11/1/01 250,000 253,750
----------------------------------------------------------------------------------------------------
Mosler, Inc., 11% Sr. Nts., Series B, 4/15/03 1,250,000 1,156,250
----------------------------------------------------------------------------------------------------
Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 735,000 834,225
-----------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02(2)(5) 225,000 112,500
------------
3,920,975
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TRANSPORTATION-1.5% Greyhound Lines, Inc., 10% Sr. Nts., 7/31/01 395,000 386,113
----------------------------------------------------------------------------------------------------
Southern Pacific Transportation Co., 10.50% Sr. Sec. Nts., Series B, 7/1/99 400,000 431,000
----------------------------------------------------------------------------------------------------
Tiphook Financial Corp.:
8% Gtd. Nts., 3/15/00 90,000 68,850
10.75% Sr. Nts., 11/1/02 297,000 245,025
----------------------------------------------------------------------------------------------------
Transportacion Maritima Mexicana SA:
8.50% Nts., 10/15/00 500,000 467,500
9.25% Nts., 5/15/03 276,000 260,820
----------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr. Disc. Nts., Series A, 12/15/03(3) 750,000 408,750
------------
2,268,058
8 Oppenheimer Champion High Yield Fund
<PAGE>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- - -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY-10.9%
- - -----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-1.1% GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 $1,230,000 $ 1,008,600
----------------------------------------------------------------------------------------------------
GPA Holland BV, 8.94% Medium-Term Nts., Series C, 2/16/99 700,000 560,000
------------
1,568,600
- - -----------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION-3.9% Cablevision Systems Corp.:
14% Sr. Sub. Reset Debs., 11/15/03(4) 500,000 508,750
10.75% Sr. Sub. Debs., 4/1/04 200,000 207,000
9.875% Sr. Sub. Debs., 2/15/13 450,000 456,750
----------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 11% Sr. Sub. Debs., 6/1/07 1,000,000 1,085,000
----------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., 11/1/03(4)(5) 750,000 712,500
----------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts., 10/15/03(3) 1,160,000 701,800
----------------------------------------------------------------------------------------------------
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 1,005,000
----------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,000,000 1,135,000
------------
5,811,800
- - -----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS-4.4% Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03(3) 2,250,000 1,417,500
----------------------------------------------------------------------------------------------------
Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 457,500
----------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(3) 2,000,000 1,390,000
----------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/9.75% Sr. Disc. Nts., 8/15/04(3) 1,125,000 669,375
----------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
9.75% Sr. Sec. Nts., 8/1/00 500,000 505,000
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(3) 2,200,000 1,353,000
----------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 10.875% Sr. Debs., 4/15/04 600,000 621,000
------------
6,413,375
- - -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY-1.5% Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05(3) 1,600,000 856,000
----------------------------------------------------------------------------------------------------
Businessland, Inc., 5.50% Sub. Debs., 3/1/07 805,000 322,000
----------------------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01(4)(5) 1,200,000 1,110,000
------------
2,288,000
- - -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES-1.6%
- - -----------------------------------------------------------------------------------------------------------------------------------
California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04(3) 1,205,000 858,563
----------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.30% Lease Obligation Bonds, Series 1986A,
1/15/14 1,000,000 1,006,418
----------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08(5) 500,000 482,500
------------
2,347,481
------------
Total Corporate Bonds and Notes (Cost $97,437,014) 97,899,085
9 Oppenheimer Champion High Yield Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- - -----------------------------------------------------------------------------------------------------------------------------------
DERIVATIVE SECURITIES-1.3%
- - -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., S & P 500 Index-Linked Nts.:
3.10%, 5/2/94(5) $325,000 $ 804,570
3.40%, 5/12/94(5) 325,000 675,025
3.7875%, 7/5/94(5) 110,000 164,219
3.7875%, 7/5/94(5) 215,000 248,777
------------
Total Derivative Securities (Cost $1,385,300) 1,892,591
SHARES
- - -----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS-1.3%
- - -----------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I.(2)(5) 75 75,000
----------------------------------------------------------------------------------------------------
Insilco Corp.(2) 12,769 197,920
----------------------------------------------------------------------------------------------------
Leaseway Transportation Corp.(2) 62,610 720,015
----------------------------------------------------------------------------------------------------
Marriott International, Inc. 601 16,903
----------------------------------------------------------------------------------------------------
Petrolane, Inc., Cl. B 35,910 426,431
----------------------------------------------------------------------------------------------------
SCI Television, Inc.(2) 3,640 43,680
----------------------------------------------------------------------------------------------------
Zale Corp.(2) 47,775 412,059
------------
Total Common Stocks (Cost $2,057,053) 1,892,008
- - -----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS-2.3%
- - -----------------------------------------------------------------------------------------------------------------------------------
Algoma Finance Corp., 5.50% Exch., Series A 7,500 116,634
----------------------------------------------------------------------------------------------------
Collins & Aikman Holdings Corp., $15.50 Exch.(6) 34,480 702,530
----------------------------------------------------------------------------------------------------
Dell Computer Corp., $7.00 Cv., Series A(5) 4,000 468,000
----------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., Cl. A(2) 3,500 52,500
----------------------------------------------------------------------------------------------------
Glendale Federal Bank, $6.375 Non-Cum. Cv., Series E 17,100 361,238
----------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exch., Series B(6) 6,145 608,377
----------------------------------------------------------------------------------------------------
Navistar International Corp., $6.00 Cv., Series G 15,000 776,250
----------------------------------------------------------------------------------------------------
Trizec Ltd., Sr. Cl. B, Series 3(2) 25,000 27,124
----------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 6,000 253,500
------------
Total Preferred Stocks (Cost $3,410,659) 3,366,153
UNITS
- - -----------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES-0.4%
- - -----------------------------------------------------------------------------------------------------------------------------------
Amerigas, Inc. Rts. 1,640 19,680
----------------------------------------------------------------------------------------------------
Ames Department Stores, Inc.:
Excess Cash Flow Payment Ctfs. 6,200 62
Litigation Trust Units 19,829 198
----------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00(5) 12,500 37,500
----------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Wts., Exp. 2/99(5) 1,875 5,014
----------------------------------------------------------------------------------------------------
Casino America, Inc. Wts., Exp. 11/96 1,631 -
----------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 11,219 37,864
----------------------------------------------------------------------------------------------------
General Media, Inc. Wts., Exp. 12/00(5) 500 7,500
----------------------------------------------------------------------------------------------------
Hollywood Casino Corp. Wts., Exp. 4/98 1,904 388,416
----------------------------------------------------------------------------------------------------
Interco, Inc. Wts., Series 1, Exp. 8/99 8,655 45,439
----------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 11/03(5) 28,000 89,880
----------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97(5) 1,733 35
10 Oppenheimer Champion High Yield Fund
<PAGE>
MARKET
VALUE
UNITS SEE NOTE 1
- - -----------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND Southland Corp. Wts., Exp. 3/96 300 $ 600
CERTIFICATES (CONTINUED) ----------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Wts., Exp. 1/98(5) 2,250 23
----------------------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 4,750 8,075
------------
Total Rights, Warrants and Certificates (Cost $221,178) 640,286
- - -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE (COST $145,871,321) 99.0% 145,512,830
- - -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.0 1,414,895
----- ------------
NET ASSETS 100.0% $146,927,725
----- ------------
----- ------------
<FN>
1. Face amount is reported in foreign currency.
2. Non-income producing security.
3. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date.
4. Represents the current interest rate for a variable rate security.
5. Restricted security-See Note 5 of Notes to Financial Statements.
6. Interest or dividend is paid in kind.
7. Represents the current interest rate for an increasing rate security.
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Champion High Yield Fund
<PAGE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES March 31, 1994 (Unaudited)
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (cost $145,871,321)-see accompanying statement $145,512,830
-------------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 2,891,703
Investments sold 2,394,488
Shares of beneficial interest sold 1,207,926
-------------------------------------------------------------------------------------------------------
Other 6,642
------------
Total assets 152,013,589
- - -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Bank overdraft 85,997
-------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,470,284
Shares of beneficial interest redeemed 1,102,404
Dividends 186,820
Distribution and service plan fees-Note 4 84,466
Other 155,893
------------
Total liabilities 5,085,864
- - -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $146,927,725
------------
------------
- - -----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $145,985,799
NET ASSETS -------------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment and foreign currency transactions 1,300,482
-------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies (358,556)
------------
Net assets $146,927,725
------------
------------
- - -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $134,473,882 and 10,605,264 shares of beneficial interest outstanding) $12.68
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $13.31
-------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $12,453,843 and 981,852 shares of beneficial interest outstanding) $12.68
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Champion High Yield Fund
<PAGE>
- - --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $6,110,963
-------------------------------------------------------------------------------------------------------
Dividends 303,482
------------
Total income 6,414,445
- - -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees-Note 4 445,959
-------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A-Note 4 149,114
Class C-Note 4 17,155
-------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees-Note 4 155,637
-------------------------------------------------------------------------------------------------------
Shareholder reports 28,834
-------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 15,219
Class C 215
-------------------------------------------------------------------------------------------------------
Custodian fees and expenses 13,650
-------------------------------------------------------------------------------------------------------
Legal and auditing fees 7,524
-------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 792
-------------------------------------------------------------------------------------------------------
Other 29,418
------------
Total expenses 863,517
- - -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,550,928
- - -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) from:
GAIN (LOSS) ON INVESTMENTS Investments 1,879,919
AND FOREIGN CURENCY Foreign currency transactions (140,970)
------------
TRANSACTIONS Net realized gain 1,738,949
-------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (3,191,608)
Translation of assets and liabilities denominated in foreign currencies (125,478)
------------
Net change (3,317,086)
------------
Net realized and unrealized loss on investments and foreign currency transactions (1,578,137)
- - -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,972,791
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Champion High Yield Fund
<PAGE>
- - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31,1994 SEPTEMBER 30,
(UNAUDITED) 1993
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 5,550,928 $ 6,982,465
-----------------------------------------------------------------------------------------------------------
Net realized gain on investments and foreign currency transactions 1,738,949 1,926,265
-----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments
and translation of assets and liabilities denominated in foreign currencies (3,317,086) 1,827,231
------------ ------------
Net increase in net assets resulting from operations 3,972,791 10,735,961
- - ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.590 and $1.22 per share, respectively) (5,439,906) (6,982,465)
SHAREHOLDERS Class C ($.300 per share) (111,022) --
-----------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments and
foreign currency transactions:
Class A ($.189 per share) (1,772,820) --
Class C ($.189 per share) (26,217) --
- - ------------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions-Note 2 32,921,331 53,586,890
-----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class C
beneficial interest transactions-Note 2 12,918,536 --
- - ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 42,462,693 57,340,386
-----------------------------------------------------------------------------------------------------------
Beginning of period 104,465,032 47,124,646
------------ ------------
End of period $146,927,725 $104,465,032
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Champion High Yield Fund
<PAGE>
- - --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS C
------------------------------------------------------------------------ --------------
SIX MONTHS SIX MONTHS
ENDED ENDED
MARCH 31, YEAR ENDED MARCH 31,
1994 SEPTEMBER 30, 1994 (1)
(UNAUDITED) 1993 1992 1991 1990 1989 (UNAUDITED)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.90 $12.26 $11.49 $10.46 $11.53 $12.10 $13.13
- - ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .59 1.22 1.41 1.45 1.43 1.42(2) .30
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions (.03) .64 .77 1.04 (1.08) (.43) (.26)
----------- ----------- ------- -------- --------- --------- ----------
Total income from
investment operations .56 1.86 2.18 2.49 .35 .99 .04
- - ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.59) (1.22) (1.41) (1.46) (1.42) (1.42) (.30)
Distributions from net realized gain
on investments and foreign currency
transactions (.19) -- -- -- -- (.14) (.19)
----------- ----------- ------- -------- --------- --------- ----------
Total dividends and distributions
to shareholders (.78) (1.22) (1.41) (1.46) (1.42) (1.56) (.49)
- - ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.68 $12.90 $12.26 $11.49 $10.46 $11.53 $12.68
----------- ----------- ------- -------- --------- --------- ----------
----------- ----------- ------- -------- --------- --------- ----------
- - ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 4.28% 15.92% 19.94% 25.62% 3.13% 8.53% .39%
- - ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $134,474 $104,465 $47,125 $16,044 $13,910 $20,642 $12,454
- - ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $121,295 $73,334 $28,270 $14,057 $17,163 $21,349 $5,278
- - ------------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 10,605 8,096 3,844 1,397 1,330 1,790 982
- - ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 8.99%(4) 9.52% 11.60% 13.49% 12.92% 11.87% 6.49%(4)
Expenses 1.37%(4) 1.24% 1.35% 1.49% 1.40% 1.19%(2) 1.92%(4)
- - ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 70.3% 116.2% 121.5% 114.8% 67.8% 98.5% 70.3%
<FN>
1. For the period from December 1, 1993 (inception of offering) to March 31, 1994.
2. Net investment income would have been $1.41 per share absent the voluntary expense reimbursement, resulting in an expense ratio
of 1.25%.
3. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, 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.
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of
portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year
or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the
six months ended March 31, 1994 were $98,204,003 and $78,560,909, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Champion High Yield Fund
<PAGE>
- - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- - --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Champion High Yield Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment advisor is Oppenheimer
Management Corporation (the Manager). The Fund offers both Class A and Class C
shares. Class A shares are sold with a front-end sales charge. Class C shares
may be subject to a contingent deferred sales charge. Both classes of shares
have identical rights to earnings, assets and voting privileges, except that
each class has its own distribution and/or service plan, expenses directly
attributable to a particular class and exclusive voting rights with respect to
matters affecting a single class. The following is a summary of significant
accounting policies consistently followed by the Fund.
- - --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at 4:00 p.m. (New York
time) on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the day
or, in the absence of sales, at values based on the closing bid or asked price
or the last sale price on the prior trading day. Long-term debt securities are
valued by a portfolio pricing service approved by the Board of Trustees.
Long-term debt securities which cannot be valued by the approved portfolio
pricing service are valued by averaging the mean between the bid and asked
prices obtained from two active market makers in such securities. Short-term
debt securities having a remaining maturity of 60 days or less are valued at
cost (or last determined market value) adjusted for amortization to maturity of
any premium or discount. Securities for which market quotes are not readily
available are valued under procedures established by the Board of Trustees to
determine fair value in good faith. Forward foreign currency exchange contracts
are valued at the forward rate on a daily basis.
- - --------------------------------------------------------------------------------
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. At March 31, 1994, securities with an
aggregate market value of $4,652,267, representing 3.06% of the Fund's total
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 securities and investment income are translated at
the rates of exchange prevailing on the respective dates of such transactions.
The Fund generally enters into forward currency exchange contracts as a
hedge, upon the purchase or sale of a security denominated in a foreign
currency. In addition, the Fund may enter into such contracts as a hedge against
changes in foreign currency exchange rates on portfolio positions. A forward
exchange contract is a commitment to purchase or sell a foreign currency at a
future date, at a negotiated rate. Risks may arise from the potential inability
of the counterparty to meet the terms of the contract and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
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 results 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. If the seller of the agreement defaults and the value of
the collateral declines, or if the seller enters an insolvency proceeding,
realization of the value of the collateral by the Fund may be delayed or
limited.
- - --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and 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 INCOME 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 tax provision is required.
16 Oppenheimer Champion High Yield Fund
<PAGE>
- - --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately
for Class A and Class C shares from net investment income each day the New York
Stock Exchange is open for business and pay such dividends monthly.
Distributions from net realized gains on investments, if any, will be declared
at least once each year.
- - --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax requirements.
Realized gains and losses on investments and 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 on the ex-date.
- - --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 31, 1994(1) YEAR ENDED SEPTEMBER 30, 1993
---------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- - ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 4,523,596 $59,343,046 6,506,627 $82,210,524
Dividends and distributions reinvested 356,017 4,655,164 345,523 4,361,170
Redeemed (2,370,739) (31,076,879) (2,599,817) (32,984,804)
---------- ----------- ---------- -----------
Net increase 2,508,874 $32,921,331 4,252,333 $53,586,890
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
- - ------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 1,039,267 $13,664,693 -- $ --
Dividends and distributions reinvested 8,062 104,311 -- --
Redeemed (65,477) (850,468) -- --
---------- ----------- ---------- -----------
Net increase 981,852 $12,918,536 -- $ --
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
<FN>
1. For the six months ended March 31, 1994 for Class A shares and for the period from December 1, 1993 (inception
of offering) to March 31, 1994 for Class C shares.
</TABLE>
- - --------------------------------------------------------------------------------
3. UNREALIZED GAINS LOSSES ON INVESTMENTS
At March 31, 1994, net unrealized depreciation of investments of $358,491 was
composed of gross appreciation of $3,742,963, and gross depreciation of
$4,101,454.
- - --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .70% on the
first $250 million of net assets, .65% on the next $250 million, .60% on the
next $500 million and .55% on net assets in excess of $1 billion. The Manager
has agreed to reimburse the Fund if aggregate expenses (with specified
exceptions) exceed the most stringent applicable regulatory limit on Fund
expenses.
For the six months ended March 31, 1994, commissions (sales charges paid
by investors) on sales of Class A shares totaled $1,216,721, of which $160,793
was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. During the
six months ended March 31, 1994, OFDI received contingent deferred sales charges
of $3,033 upon redemption of Class C shares, as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OSS's total costs of providing such services are allocated
ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net
assets annually to reimburse OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other institutions. In
addition, Class C shares are subject to an asset-based sales charge of .75% of
net assets annually, to reimburse OFDI for sales commissions paid from its own
resources at the time of sale and associated financing costs. In the event of
termination or discontinuance of the Class C plan, the Board of Trustees may
allow the Fund
17 Oppenheimer Champion High Yield Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- - --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
to continue payment of the asset-based sales charge to OFDI for distribution
expenses incurred on Class C shares sold prior to termination or discontinuance
of the plan. During the six months ended March 31, 1994, OFDI paid $10,005 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses and retained $17,155 as reimbursement for Class C sales
commissions and service fee advances, as well as financing costs.
- - --------------------------------------------------------------------------------
5. RESTRICTED SECURITIES
The Fund owns securities purchased in private placement transactions, without
registration under the Securities Act of 1933 (the Act). The securities are
valued under methods approved by the Board of Trustees as reflecting fair value.
The Fund intends to invest no more than 10% of its net assets (determined at the
time of purchase) in restricted and illiquid securities, excluding securities
eligible for resale pursuant to Rule 144A of the Act that are determined to be
liquid by the Board of Trustees or by the Manager under Board-approved
guidelines. Restricted and illiquid securities amount to $6,651,333, or 4.53% of
the Fund's net assets, at March 31, 1994.
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT MARCH 31, 1994
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Charlie's, Inc., 12% Fst. Mort. Nts., Series A, 11/15/00 11/18/93 $ 100.00 $ 100.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Matador Bonds, 8%, 8/5/03(1) 11/12/93 $ 97.82 $ 89.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/18/93 $ 2.00 $ 3.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., Units 1/10/94 $ 113.34 $ 119.08
- - ---------------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Wts., Exp. 2/99 2/4/94-2/18/94 $ -- $ 2.67
- - ---------------------------------------------------------------------------------------------------------------------------------
Capital Queen & Casino, Inc.,
12% Fst. Mort. Nts., Series A, 11/15/00 11/18/93 $ 87.50 $ 90.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(1) 10/6/93 $ 100.00 $ 102.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Consoltex Group, Inc.,
11% Gtd. Sr. Sub. Nts., Series A, 10/1/03(1) 9/23/93-10/5/93 $ 100.25 $ 100.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Dell Computer Corp., $7.00 Cv., Series A Preferred Stock(1) 11/24/93 $ 114.00 $ 117.00
- - ---------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I. Common Stock 4/14/92 $1,000.00 $1,000.00
- - ---------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I., 14% Sub. Nts., 6/10/02 4/15/92-7/29/92 $ 100.50 $ 112.15
- - ---------------------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Units(1) 9/28/93-10/5/93 $ 100.45 $ 102.13
- - ---------------------------------------------------------------------------------------------------------------------------------
General Media, Inc., 10.625% Sr. Sec. Nts., 12/31/00(1) 12/14/93 $ 99.39 $ 99.50
- - ---------------------------------------------------------------------------------------------------------------------------------
General Media, Inc. Wts., Exp. 12/00(1) 12/14/93 $ .01 $ 15.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp.,
9% Sr. Sec. Nts., 11/1/03(1) 10/20/93-11/12/93 $ 96.17 $ 95.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Hillsborough Holdings Corp.,
7.50% Loan Participation Agreement, 12/30/99 1/6/94 $ 128.50 $ 130.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01(1) 3/7/94 $ 92.75 $ 92.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. S&P 500 Index-Linked Nts.:
3.10%, 5/2/94 2/1/94 $ 139.20 $ 247.56
3.40%, 5/12/94 2/10/94 $ 146.40 $ 207.70
3.7875%, 7/5/94 3/31/94 $ 142.00 $ 115.71
3.7875%, 7/5/94 3/30/94 $ 138.00 $ 149.29
- - ---------------------------------------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units(1) 2/16/94 $ 100.00 $ 98.35
- - ---------------------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation
Agreement, Tranche A, 4.50%, 1/1/09 2/28/94-3/7/94 $ 75.18 $ 62.60
- - ---------------------------------------------------------------------------------------------------------------------------------
Penda Industries, Inc. 10.75% Sr. Nts., 3/1/04(1) 3/11/94 $ 100.00 $ 99.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc.,
12% Sr. Sub. Nts., 11/1/03(1) 11/4/93 $ 91.10 $ 95.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 11/03(1) 11/4/93 $ 3.18 $ 3.21
- - ---------------------------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97 7/29/92 $ -- $ .02
- - ---------------------------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08(1) 12/20/93 $ 99.93 $ 96.50
- - ---------------------------------------------------------------------------------------------------------------------------------
Terex Corp., Units(1) 3/23/94 $ 94.00 $ 95.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Treasure Bay Gaming & Resorts, Inc., Units(1) 11/10/93 $ 98.56 $ 101.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02 1/13/92 $ 100.00 $ 50.00
- - ---------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Wts., Exp. 1/98 1/13/92 $ -- $ .01
<FN>
1. Transferable under Rule 144A of the Act.
</TABLE>
18 Oppenheimer Champion High Yield Fund
<PAGE>
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OPPENHEIMER CHAMPION HIGH YIELD FUND
- - --------------------------------------------------------------------------------
OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
Ralph W. Stellmacher, Vice President
George C. Bowen, Vice President, Secretary and
Treasurer
Lynn M. Coluccy, Assistant Treasurer
Robert G. Zack, Assistant Secretary
- - --------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- - --------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- - --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- - --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- - --------------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche
- - --------------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson & Adams, P.C.
The financial statements included herein have been
taken from the records of the Fund without examination
by the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Champion High Yield Fund. This report must
be preceded or accompanied by a Prospectus of
Oppenheimer Champion High Yield Fund. For material
information concerning the Fund, see the Prospectus.
19 Oppenheimer Champion High Yield Fund
<PAGE>
57701 Back Cover E -- Champion High Yield Fund
- - --------------------------------------------------------------------------------
"How may I help you?"
- - --------------------------------------------------------------------------------
"Just as OppenheimerFunds offers over 35 different mutual funds designed to help
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1993 AWARD OF EXCELLENCE LOGO
B&W PHOTO
Barbara Hennigar
Chief Executive Officer
Oppenheimer Shareholder Services
General Information
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<PAGE>
Get automated information or make automated transactions. 24 hours a day, 7 days
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RS190.0594.N
Oppenheimer Funds Distributor, Inc.
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Denver, CO 80217-5270
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PAID
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Denver, CO
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