<PAGE> 1
OPPENHEIMER CHAMPION HIGH YIELD FUND
Semiannual Report March 31, 1995
"We need
our money
[PHOTO] to work
as hard
as it can."
[LOGO] OPPENHEIMERFUNDS
<PAGE> 2
NEWS
STANDARDIZED YIELD
For the 30 Days Ended 3/31/95:(1)
Class A
7.78%
Class C
7.37%
BEAT THE AVERAGE
Total Return for the Year
Ended 3/31/95:
Oppenheimer Champion
High Yield Fund
Class A (at NAV)(4)
4.28%
Class C (at NAV)(4)
3.37%
Lipper High Current Yield Average(2)
1.55%
THE FUND'S CLASS A SHARES
ARE RANKED *****
AMONG 680 TAXABLE BOND
FUNDS AS OF 3/31/95.(3)
This Fund is for people who want high income and the potential for growth.
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HOW YOUR FUND IS MANAGED
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Oppenheimer Champion High Yield Fund seeks high current income with a secondary
objective of capital growth. The Fund invests in high-yielding, lower-rated
corporate bonds. These types of securities often offer among the highest income
levels available from any type of fixed income investment.
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PERFORMANCE
- -------------------------------------------------------------------------------
Total returns at net asset value for the 6 months ended 3/31/95 for Class A and
C shares were 2.96% and 2.48%, respectively.(4)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 3/31/95 and since inception
of the Class on 11/16/87 were -0.68%, 12.96% and 12.44%, respectively. For Class
C shares, average annual total returns for the 1-year period ended 3/31/95 and
since inception of the Class on 12/1/93 were 2.42% and 2.70%, respectively.(5)
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OUTLOOK
- --------------------------------------------------------------------------------
"As we move into the later stages of the economic cycle, business cash flows
and earnings are likely to slow. While the high yield market remains `hot' at
this point, we're preparing ourselves for the future, working to move up the
quality curve, reducing our exposure to those companies that are sensitive to
the economic cycle, and identifying attractive opportunities for investors
seeking high yields but also concerned about fundamental values."
Ralph Stellmacher, Portfolio Manager
March 31, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
1. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 3/31/95, divided by the maximum offering price
at the end of the period, compounded semiannually and then annualized. Falling
net asset values will tend to artificially raise yields.
2. Source: Lipper Analytical Services. The Lipper total return average for the
year was for 112 high current yield funds. The average is shown for comparative
purposes only. Oppenheimer Champion High Yield Fund is characterized by Lipper
as a high current yield fund. Lipper performance does not take sales charges
into consideration.
3. Source: Morningstar Mutual Funds, 3/31/95. Morningstar, Inc., an independent
mutual fund monitoring service, produces proprietary monthly rankings of funds
in broad investment categories (equity, taxable bond, tax-exempt bond, or
"hybrid") based on risk-adjusted investment return, after considering sales
charges and expenses. Investment return measures a fund's (or class's) 3-, 5-
and 10-year (depending on the inception of the class or fund) average annual
total returns in excess of 90-day U.S. Treasury bill returns. Risk measures a
fund's (or class's) performance below 90-day U.S. Treasury bill returns. Risk
and returns are combined to produce star rankings, reflecting performance
relative to the average fund in a fund's category. Five stars is the highest
ranking (top 10%), and 1 star is the lowest (bottom 1%). The 5-star current
ranking is a weighted average of the 3- and 5-year rankings for the class, which
were both 5 stars, weighted 40%/60%. The Fund was ranked among 680 taxable bond
funds. Rankings are subject to change. The Fund's Class A and Class C shares
have the same portfolio.
4. Based on the change in net asset value per share for the periods shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
5. Class A returns show results of hypothetical investments on 4/1/94, 4/1/90
and 11/16/87 (inception of class), after deducting the current maximum initial
sales charge of 4.75%. Class C returns show results of hypothetical investments
on 4/1/94 and 12/1/93 (inception of class), with the 1% contingent deferred
sales charge deducted for the 1-year result. An explanation of the different
returns is in the Fund's prospectus.
2 Oppenheimer Champion High Yield Fund
<PAGE> 3
[PHOTO]
James C. Swain
Chairman
Oppenheimer Champion
High Yield Fund
[PHOTO]
Jon S. Fossel
President
Oppenheimer Champion
High Yield Fund
Dear OppenheimerFunds Shareholder,
1994 was marked by one of the greatest tests the bond markets faced in more than
six decades. As the U.S. Federal Reserve undertook the most aggressive moves in
its history to raise interest rates, bond prices and bond mutual funds declined
across the board. Changing interest rates are a fact of life and they affect the
short-term performance of all bond markets. That is why we believe the best
measure of any fixed income mutual fund is its performance over the long term.
And we believe the long-term outlook for the bond markets is very positive.
To see how greatly the U.S. bond market has improved since last fall, we
need look no further than the market's reaction to the Fed's most recent
short-term rate increase in February. While the markets had already anticipated
this move, unlike previous rate increases, long-term interest rates continued to
decline and bonds rallied further. Although the Fed could raise rates again, we
believe that this positive environment will prove more than momentary as a
result of several factors.
First, concerns about the effects of inflation on bond prices are fading
fast. By most indicators, economic growth is slowing to a pace that can be
sustained without reigniting inflation or causing a recession. Second, at
current prices, intermediate and long-term bonds are producing some of the best
inflation-adjusted returns in years. With the actual inflation rate running just
over 3 percent today, many fixed income investors are clearly being rewarded.
Attracted by the strong, real returns intermediate and long-term bonds offer,
investors are returning to bonds in a significant way. This rising demand is
providing solid support for bond prices. Third, as the Fed concludes its
tightening efforts--and recent reports suggest that point is near--long-term
interest rates will likely stay within their current range, and could decline
further. Of course, rates could rise later this year if future reports indicate
that the economy isn't slowing as quickly as it seems to be today; however, we
believe that over the longer term, the downward trend of rates will continue.
Two uncertainties affecting the fixed income markets are foreign investors'
attitudes toward U.S. debt and the weakness of the U.S. dollar abroad relative
to other major currencies. But investors' attitudes overseas and the dollar's
decline, in our view, should prove temporary. Both have been driven by the
government's moves to support the Mexican peso, a widening trade deficit, and
Congress's apparent inability to limit the Federal budget deficit.
We believe the trade deficit will narrow with increasing U.S. exports as
European economies come out of recession and emerging world markets stabilize.
Additionally, the need to support the peso has begun to decline as Mexico's
tough domestic economic policy has gained credibility. Finally, we are confident
that Congress will be able to get the budget deficit issue dealt with because
Americans are demanding it.
Of course, no one can predict the future with perfect clarity. The bond
markets are always subject to fluctuations and, as we saw in 1994, the shifts
can sometimes be sharp. Overall, however, we believe the outlook for the bond
markets today appears positive.
Your portfolio manager discusses the outlook for your Fund on the following
pages. We appreciate your trust, and we'll continue to do our best to help you
meet your long-term investment objectives.
/s/ James C. Swain /s/ Jon S. Fossel
- ------------------ -----------------
James C. Swain Jon S. Fossel
April 24, 1995
3 Oppenheimer Champion High Yield Fund
<PAGE> 4
Q+A [PHOTO]
Q What's your outlook for the high yield market?
An interview with your Fund's manager.
THE FUND CONTINUED TO PERFORM WELL OVER THE PAST SIX MONTHS. WHAT'S BEHIND THOSE
RESULTS?
As the economic expansion and interest rates neared what we believed would be
their peak in late 1994, we began to extend the Fund's duration--a technical
measure of a bond portfolio's sensitivity to interest rate changes--and invest
in companies whose prospects appeared fundamentally more positive than their
credit ratings might suggest. As a result, we were able to deliver
above-average returns, while holding risk within careful limits.
[PHOTO]
Today, however, there's little doubt in our minds that the Fed's efforts to
control inflation are slowing the economy. For high yield issuers, that means
earnings and cash flows may come under more pressure, and we've been managing
the Fund more conservatively, focusing on issuers' financial strength and
orienting the portfolio toward higher quality. Of course, investors in high
yield bonds are subject to greater risk that the issuer will default in its
principal or interest payments, but by emphasizing portfolio quality within the
non-investment grade spectrum, we're reducing some of that risk.
WILL YOUR EMPHASIS ON QUALITY RESULT IN LOWER YIELDS?
The Fund's yield may be somewhat lower, but it's important to bear two points
in mind:
First, the level of income the Fund is producing is very attractive
compared to Treasury securities (which have no credit risk) and other fixed
income alternatives. Second, by emphasizing portfolio quality, we're reducing
risk for our shareholders. That's important to us. In today's markets
especially, earning marginally higher yields means taking on substantially more
risk, and that's something we don't want to do.
4 Oppenheimer Champion High Yield Fund
<PAGE> 5
FACING PAGE
Top left: Ralph Stellmacher,
Portfolio Manager
Top right: The trading desk
Bottom: Len Darling, Executive VP,
Director of Fixed Income Investing,
consults with Jon Fossel
THIS PAGE
Top and bottom: Ralph Stellmacher
A We believe
the outlook
for high yield
corporate
bonds remains
basically
positive.
WHAT KINDS OF INVESTMENTS ARE YOU MAKING?
One investment theme we're focusing on is synchronized global growth. That means
we've focused more attention on bonds positioned to benefit from rising
commodity prices worldwide. We've moved away from issuers in the auto sector and
other consumer durables companies in the U.S. and have sought opportunities in
high yield bonds issued by companies that derive a large percentage of their
earnings from Europe, where we believe growth opportunities are greater.
Some recent purchases include NL Industries, American Standard, and
Coleman, all companies that obtain significant cash flow from their European
operations. We've also increased our exposure in attractive healthcare issuers,
such as HealthSouth, Charter Medical and Abbey Healthcare, whose revenues and
earnings aren't tied to the economic cycle.
[PHOTO]
Where possible, we've also worked to upgrade our holdings within a given
company, moving out of junior securities to more senior securities when yield
for more senior paper was sufficiently high to justify the move. For example,
we've upgraded our holdings in Thrifty Payless and Finley Fine Jewelry without
sacrificing much in yield.(1)
ARE YOU STILL INVESTING IN EMERGING MARKETS?
We took some profits in emerging markets such as Morocco and Poland ahead of the
peso's collapse. Since that time, we've trimmed our emerging market positions
further. At March 31, our holdings in emerging markets made up about 0.9% of the
Fund's net assets, compared with 6.0% a year earlier.
[PHOTO]
WHAT'S YOUR OUTLOOK FOR THE HIGH YIELD MARKET AND THE FUND?
Looking ahead, we believe that the positive outlook for high yield corporate
bonds remains basically intact. Despite the anticipated slowdown in the U.S.
economy, we expect that several fundamental factors--including low inflation and
a steady, if slower, rate of growth--should help high yield issues remain among
the bond market's best performers.
We're taking a somewhat conservative view of the market at this point,
analyzing opportunities carefully and investing in those that promise to
provide the greatest value for our shareholders over time. / /
1. The Fund's portfolio is subject to change.
5 Oppenheimer Champion High Yield Fund
<PAGE> 6
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STATEMENT OF INVESTMENTS March 31, 1995 (Unaudited)
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<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
================================================================================================================
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS--0.6%
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Federal National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security, Trust 240, Cl. 2, 7%, 9/25/23(2) $ 3,161,937 $ 1,145,214
- ----------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,
Series 1994-C2, Cl. E, 8%, 4/25/25 518,260 433,962
-----------
Total Mortgage-Backed Obligations (Cost $1,470,080) 1,579,176
================================================================================================================
U.S. GOVERNMENT OBLIGATIONS--9.2%
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U.S. Treasury Bonds, 10.375%, 5/15/95 2,000,000 2,010,000
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
10.50%, 8/15/95 6,750,000 6,855,469
8.875%, 11/15/97(3) 4,500,000 4,710,937
9.25%, 1/15/96 9,575,000 9,775,471
-----------
Total U.S. Government Obligations (Cost $23,456,605) 23,351,877
================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--0.4%
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Banco Nacional de Comercio Exterior SNC International Finance BV Gtd.
Matador Bonds, 8%, 8/5/03 500,000 236,875
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Ecuador (Republic of) Bonds, 7.25%, 2/28/25(4) 1,500,000 667,500
-----------
Total Foreign Government Obligations (Cost $1,185,390) 904,375
================================================================================================================
MUNICIPAL BONDS AND NOTES--0.3%
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San Joaquin Hills, California Transportation Corridor Agency
Toll Road Capital Appreciation Revenue Bonds, Jr. Lien, Zero Coupon,
1/1/28 (Cost $755,503) 13,500,000 880,821
================================================================================================================
CORPORATE BONDS AND NOTES--61.3%
- ----------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY --11.5%
- ----------------------------------------------------------------------------------------------------------------
CHEMICALS--3.8%
Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 2,000,000 2,090,000
- ----------------------------------------------------------------------------------------------------------------
Georgia Gulf Corp., 15% Sr. Sub. Nts., 4/15/00 2,000,000 2,000,000
- ----------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05(5) 1,000,000 655,000
- ----------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 1,600,000 1,644,000
- ----------------------------------------------------------------------------------------------------------------
OSI Specialties Holding Co., 0%/11.50% Sr. Sec. Disc. Debs., Series B, 4/15/04(5) 3,000,000 1,995,000
- ----------------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 12.25% Sr. Nts., 7/15/02(6) 750,000 727,500
- ----------------------------------------------------------------------------------------------------------------
UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05(6) 600,000 632,250
-----------
9,743,750
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CONTAINERS--0.9%
Owens-Illinois, Inc., 11% Sr. Debs., 12/1/03 2,145,000 2,300,513
- ----------------------------------------------------------------------------------------------------------------
METALS/MINING--0.8%
Kaiser Aluminum & Chemical Corp., 9.875% Sr. Nts., 2/15/02 2,020,000 1,898,800
- ----------------------------------------------------------------------------------------------------------------
PAPER--5.3%
Domtar, Inc.:
11.25% Debs., 9/15/17 190,000 199,856
11.75% Sr. Nts., 3/15/99 400,000 430,000
12% Nts., 4/15/01 190,000 209,950
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Gaylord Container Corp., 0%/12.75% Sr. Sub. Disc. Debs., 5/15/05(5) 1,550,000 1,476,375
- ----------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 1,400,000 1,477,000
- ----------------------------------------------------------------------------------------------------------------
Malette, Inc., 12.25% Sr. Sec. Nts., 7/15/04 600,000 627,000
- ----------------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.25% Fst. Priority Sr. Sec. Nts., 2/1/02 2,220,000 2,097,900
</TABLE>
6 Oppenheimer Champion High Yield Fund
<PAGE> 7
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
================================================================================================================
<S> <C> <C>
PAPER (CONTINUED)
Riverwood International Corp.:
10.375% Sr. Sub. Nts., 6/30/04 $ 900,000 $ 924,750
10.75% Sr. Nts., 6/15/00 400,000 419,000
11.25% Sr. Sub. Nts., 6/15/02 1,100,000 1,163,250
- ----------------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., 12/15/04(6) 1,560,000 1,661,400
- ----------------------------------------------------------------------------------------------------------------
Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00 400,000 406,500
- ----------------------------------------------------------------------------------------------------------------
Stone Container Corp., 10.75% Fst. Mtg. Nts., 10/1/02 390,000 404,625
- ----------------------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 1,945,000 1,896,375
-----------
13,393,981
- ----------------------------------------------------------------------------------------------------------------
STEEL--0.7%
Acme Metals, Inc., 12.50% Sr. Sec. Nts., 8/1/02 600,000 603,000
- ----------------------------------------------------------------------------------------------------------------
AK Steel Corp., 10.75% Gtd. Sr. Nts., 4/1/04 1,000,000 1,010,000
- ----------------------------------------------------------------------------------------------------------------
Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01 275,000 247,156
-----------
1,860,156
- ----------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--18.0%
- ----------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--1.9%
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 2,400,000 2,628,000
- ----------------------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc., 0%/11.50%
Sr. Sec. Disc. Nts., 8/15/03(5) 1,840,000 818,800
- ----------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 1,550,000 1,511,250
-----------
4,958,050
- ----------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO--2.4%
Consolidated Cigar Corp., 10.50% Sr. Sub. Nts., 3/1/03 2,000,000 1,900,000
- ----------------------------------------------------------------------------------------------------------------
Curtice-Burns Foods, Inc., 12.25% Sr. Sub. Nts., 2/1/05 1,000,000 1,048,750
- ----------------------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 700,000 598,500
- ----------------------------------------------------------------------------------------------------------------
Heileman Acquisition Corp., 9.625% Sr. Sub. Nts., 1/31/04 800,000 552,000
- ----------------------------------------------------------------------------------------------------------------
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00 2,100,000 1,974,000
-----------
6,073,250
- ----------------------------------------------------------------------------------------------------------------
HEALTHCARE--4.9%
Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02 1,000,000 1,035,000
- ----------------------------------------------------------------------------------------------------------------
AmeriSource Corp., 11.25% Sr. Debs., 7/15/05(7) 590,186 614,716
- ----------------------------------------------------------------------------------------------------------------
Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02 750,000 755,625
- ----------------------------------------------------------------------------------------------------------------
Charter Medical Corp., 11.25% Sr. Sub. Nts., 4/15/04 1,670,000 1,761,850
- ----------------------------------------------------------------------------------------------------------------
Healthsouth Rehabilitation Corp., 9.50% Sr. Sub. Nts., 4/1/01 2,300,000 2,305,750
- ----------------------------------------------------------------------------------------------------------------
Healthtrust, Inc.--The Hospital Co., 10.25% Sub. Nts., 4/15/04 600,000 666,000
- ----------------------------------------------------------------------------------------------------------------
Healthtrust, Inc.--The Hospital Co., 10.75% Sub. Nts., 5/1/02 1,500,000 1,638,750
- ----------------------------------------------------------------------------------------------------------------
National Medical Enterprises, Inc., 10.125% Sr. Sub. Nts., 3/1/05 2,250,000 2,323,125
- ----------------------------------------------------------------------------------------------------------------
Surgical Health Corp., 11.50% Sr. Sub. Nts., 7/15/04 450,000 486,000
- ----------------------------------------------------------------------------------------------------------------
Total Renal Care, Inc., Units(5) 1,000,000 875,000
-----------
12,461,816
- ----------------------------------------------------------------------------------------------------------------
HOTEL/GAMING--5.4%
Arizona Charlie's, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00(8) 275,000 224,125
- ----------------------------------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 400,000 390,000
- ----------------------------------------------------------------------------------------------------------------
Aztar Corp., 13.75% Sr. Sub. Nts., 10/1/04 1,870,000 2,024,275
- ----------------------------------------------------------------------------------------------------------------
Bally's Park Place Funding, Inc., 9.25% Gtd. Fst. Mtg. Nts., 3/15/04 2,200,000 1,952,500
- ----------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Promissory Nts. 7,500 0
- ----------------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00(8) 100,000 91,500
</TABLE>
7 Oppenheimer Champion High Yield Fund
<PAGE> 8
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- ----------------------------------------------------------------------------------------------------------------
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
================================================================================================================
<S> <C> <C>
HOTEL/GAMING (CONTINUED)
Casino America, Inc., Zero Coupon Fst. Mtg. Nts., 11/15/01 $ 450,000 $ 438,750
- ----------------------------------------------------------------------------------------------------------------
Empress River Casino Finance Corp., 10.75% Gtd. Sr. Nts., 4/1/02 2,000,000 1,950,000
- ----------------------------------------------------------------------------------------------------------------
GB Property Funding Corp., 10.875% Fst. Mtg. Nts., 1/15/04 1,070,000 917,525
- ----------------------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units(6)(9) 276,577 174,244
- ----------------------------------------------------------------------------------------------------------------
MGM Grand Hotel Finance Corp., 12% Fst. Mtg. Nts., 5/1/02 2,095,000 2,314,975
- ----------------------------------------------------------------------------------------------------------------
Resorts International, Inc., Zero Coupon Sec. Fst. Mtg. Non-Recourse
Pass-Through Nts., 6/30/00 1,010,000 863,550
- ----------------------------------------------------------------------------------------------------------------
Showboat, Inc., 9.25% Fst. Mtg. Bonds, 5/1/08 950,000 836,000
- ----------------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 1,690,000 1,495,650
- ----------------------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 7% Sub. Nts., 11/15/05(7)(10) 37 28
-----------
13,673,122
- ----------------------------------------------------------------------------------------------------------------
LEISURE--0.9%
Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., Series B, 5/27/98 3,100,000 2,193,250
- ----------------------------------------------------------------------------------------------------------------
RESTAURANTS--0.8%
Aramark Corp., 12% Sub. Debs., 4/15/00 2,000,000 2,100,000
- ----------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL--1.7%
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series B, 10/1/03 1,200,000 1,062,000
- ----------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, 13% Sr. Nts., 6/15/01 350,000 323,750
- ----------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, Zero Coupon Promissory Nts., 10/23/96 IDR 3,000,000,000 928,284
- ----------------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05 2,200,000 2,026,750
-----------
4,340,784
- ----------------------------------------------------------------------------------------------------------------
ENERGY--5.8%
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., 8/1/01 2,000,000 2,060,000
- ----------------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 500,000 427,500
- ----------------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 9.875% Nts., 10/15/02 1,100,000 968,000
- ----------------------------------------------------------------------------------------------------------------
Mesa Capital Corp., 0%/12.75% Sec. Disc. Nts., 6/30/98(5) 708,000 683,220
- ----------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 1,225,000 1,353,625
- ----------------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc., 12.25% Sub. Debs., 2/1/05 2,035,000 2,126,575
- ----------------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc., 9.375% Sub. Debs., 2/1/06 270,000 236,250
- ----------------------------------------------------------------------------------------------------------------
Presidio Oil Co., 13.30% Sr. Sub. Gas Indexed Nts., Series B, 7/15/02(4) 50,000 23,250
- ----------------------------------------------------------------------------------------------------------------
Santa Fe Energy Resources, Inc., 11% Sr. Sub. Debs., 5/15/04 2,220,000 2,297,700
- ----------------------------------------------------------------------------------------------------------------
Triton Energy Corp., Zero Coupon Sr. Sub. Disc. Nts., 11/1/97 3,200,000 2,528,000
- ----------------------------------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 1,900,000 1,928,500
- ----------------------------------------------------------------------------------------------------------------
14,632,620
- ----------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--3.3%
- ----------------------------------------------------------------------------------------------------------------
Diversified Financial--1.5%
Acme Holdings, Inc., 11.75% Sr. Nts., 6/1/00(9) 400,000 166,000
- ----------------------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., Series B, 10/1/03 2,000,000 2,222,500
- ----------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02(8) 619,619 681,581
- ----------------------------------------------------------------------------------------------------------------
GPA Holland BV, 8.94% Medium-Term Nts., Series C, 2/16/99 700,000 525,875
- ----------------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Nts., 10/31/03 600,000 249,000
-----------
3,844,956
</TABLE>
8 Oppenheimer Champion High Yield Fund
<PAGE> 9
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
================================================================================================================
<S> <C> <C>
INSURANCE--1.8%
American Life Holding Co., 11.25% Sr. Sub. Nts., 9/15/04 $2,220,000 $2,253,300
- ----------------------------------------------------------------------------------------------------------------
Life Partners Group, Inc., 12.75% Sr. Sub. Nts., 7/15/02 2,000,000 2,190,000
-----------
4,443,300
- ----------------------------------------------------------------------------------------------------------------
HOUSING RELATED--2.8%
- ----------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--2.6%
American Standard, Inc., 0%/10.50% Sr. Sub. Disc. Debs., 6/1/05(5) 1,475,000 1,014,062
- ----------------------------------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 1,000,000 1,045,000
- ----------------------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 800,000 752,000
- ----------------------------------------------------------------------------------------------------------------
Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 735,000 812,175
- ----------------------------------------------------------------------------------------------------------------
Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03 1,100,000 1,089,000
- ----------------------------------------------------------------------------------------------------------------
USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 1,750,000 1,774,063
- ----------------------------------------------------------------------------------------------------------------
Walter Industries, Inc., 17% Sub. Nts., 1/1/96(9) 350,000 222,250
-----------
6,708,550
- ----------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/REAL ESTATE--0.2%
Olympia & York First Canadian Place Ltd., 11% Debs., Series 3, 11/4/49(11) CAD 1,250,000 552,486
- ----------------------------------------------------------------------------------------------------------------
MANUFACTURING--3.6%
- ----------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS--1.0%
Berg Electronics Holdings Corp., 11.375% Sr. Sub. Debs., 5/1/03 1,000,000 1,032,500
- ----------------------------------------------------------------------------------------------------------------
Businessland, Inc., 5.50% Sub. Debs., 3/1/07 805,000 161,000
- ----------------------------------------------------------------------------------------------------------------
Tracor, Inc., 10.875% Sr. Sub. Nts., 8/15/01 1,470,000 1,447,950
-----------
2,641,450
- ----------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--1.8%
Aftermarket Technology Corp., 12% Sr. Sub. Nts., 8/1/04 1,500,000 1,582,500
- ----------------------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02 450,000 443,250
- ----------------------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp., 9.50% Sr. Sec. Nts., 6/1/00 200,000 195,000
- ----------------------------------------------------------------------------------------------------------------
JPS Automotive Products Corp., 11.125% Sr. Nts., 6/15/01 450,000 441,000
- ----------------------------------------------------------------------------------------------------------------
Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 975,000 879,938
- ----------------------------------------------------------------------------------------------------------------
SPX Corp., 11.75% Sr. Sub. Nts., 6/1/02 950,000 992,750
-----------
4,534,438
- ----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--0.8%
Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 600,000 597,000
- ----------------------------------------------------------------------------------------------------------------
Imo Industries, Inc., 12% Sr. Sub. Debs., 11/1/01 500,000 513,750
- ----------------------------------------------------------------------------------------------------------------
Imo Industries, Inc., 12.25% Sr. Sub. Debs., 8/15/97 872,000 880,720
-----------
1,991,470
- ----------------------------------------------------------------------------------------------------------------
MEDIA--6.8%
- ----------------------------------------------------------------------------------------------------------------
BROADCASTING--0.7%
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 1,005,000
- ----------------------------------------------------------------------------------------------------------------
Sinclair Broadcasting Group, Inc., 10% Sr. Sub. Nts., 12/15/03 250,000 241,250
- ----------------------------------------------------------------------------------------------------------------
Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 1/15/01 500,000 532,500
-----------
1,778,750
- ----------------------------------------------------------------------------------------------------------------
CABLE TELEVISION--4.1%
Cablevision Systems Corp.:
10.75% Sr. Sub. Debs., 4/1/04 200,000 208,500
9.875% Sr. Sub. Debs., 2/15/13 600,000 579,000
9.875% Sr. Sub. Debs., 4/1/23 400,000 378,500
- ----------------------------------------------------------------------------------------------------------------
Century Communications Corp., 9.50% Sr. Nts., 3/1/05 1,500,000 1,455,000
- ----------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 11% Sr. Sub. Debs., 6/1/07 270,000 288,913
- ----------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 2,060,000 1,987,900
</TABLE>
9 Oppenheimer Champion High Yield Fund
<PAGE> 10
- -------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
================================================================================================================
CABLE TELEVISION (CONTINUED)
<S> <C> <C>
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., Series B, 11/1/03(4) $ 750,000 $ 661,875
- ----------------------------------------------------------------------------------------------------------------
Rogers Cablesystems, Inc., 10% Sr. Nts., 3/15/05(6) 1,000,000 1,003,750
- ----------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 2,050,000 1,969,068
- ----------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.15% Debs., 2/1/23 300,000 285,634
- ----------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,575,000 1,677,375
----------
10,495,515
- ----------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA--1.3%
Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03 1,300,000 1,313,000
- ----------------------------------------------------------------------------------------------------------------
Echostar Communications Corp., Units(5) 1,290,000 586,950
- ----------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 10.125% Gtd. Sr. Debs., 10/15/12 700,000 757,751
- ----------------------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 10.875% Sr. Debs., 4/15/04 600,000 606,000
----------
3,263,701
- ----------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM--0.4%
Imax Corp., 7% Sr. Nts., 3/1/01(10) 1,200,000 1,044,000
- ----------------------------------------------------------------------------------------------------------------
PUBLISHING/PRINTING--0.3%
Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05(5) 1,550,000 840,875
- ----------------------------------------------------------------------------------------------------------------
OTHER--1.1%
- ----------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL--0.7%
EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 1,050,000 918,750
- ----------------------------------------------------------------------------------------------------------------
Envirotest Systems Corp., 9.125% Sr. Nts., 3/15/01 700,000 528,500
- ----------------------------------------------------------------------------------------------------------------
Envirotest Systems Corp., 9.625% Sr. Sub. Nts., 4/1/03 500,000 327,500
----------
1,774,750
- ----------------------------------------------------------------------------------------------------------------
SERVICES--0.4%
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts., Series B, 11/1/03 1,000,000 935,000
- ----------------------------------------------------------------------------------------------------------------
RETAIL--4.3%
- ----------------------------------------------------------------------------------------------------------------
DRUG STORES--1.3%
Duane Reade, 12% Sr. Nts., Series B, 9/15/02 500,000 372,500
- ----------------------------------------------------------------------------------------------------------------
Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 700,000 712,250
- ----------------------------------------------------------------------------------------------------------------
Thrifty Payless, Inc., 11.75% Sr. Nts., 4/15/03 2,000,000 2,105,000
----------
3,189,750
- ----------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING--1.9%
Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts., Series B, 9/1/03 500,000 490,000
- ----------------------------------------------------------------------------------------------------------------
Caldor Corp., 15% Sr. Sub. Nts., 6/1/00 2,000,000 2,150,000
- ----------------------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 600,000 576,000
- ----------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03 1,000,000 780,000
- ----------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 305,000 285,175
- ----------------------------------------------------------------------------------------------------------------
Zale Delaware, Inc., 11% Gtd. 2nd Priority Sr. Sec. Nts., 7/30/00 500,000 501,250
----------
4,782,425
- ----------------------------------------------------------------------------------------------------------------
SUPERMARKETS--1.1%
Grand Union Co., 11.25% Sr. Nts., 7/15/00(9) 415,000 434,194
- ----------------------------------------------------------------------------------------------------------------
Grand Union Co., 12.25% Sr. Sub. Nts., 7/15/02(9) 100,000 33,500
- ----------------------------------------------------------------------------------------------------------------
Penn Traffic Co., 9.625% Sr. Sub. Nts., 4/15/05 2,410,000 2,238,288
- ----------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 255,000 219,300
-----------
2,925,282
</TABLE>
10 Oppenheimer Champion High Yield Fund
<PAGE> 11
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
================================================================================================================
<S> <C> <C>
TRANSPORTATION--1.6%
- ----------------------------------------------------------------------------------------------------------------
RAILROADS--0.5%
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc. Nts.,
Series B, 12/15/03(5) $2,500,000 $ 1,312,500
- ----------------------------------------------------------------------------------------------------------------
SHIPPING--1.1%
Gearbulk Holdings Ltd., 11.25% Sr. Nts., 12/1/04 600,000 631,500
- ----------------------------------------------------------------------------------------------------------------
Sea Containers Ltd.:
12.50% Sr. Sub. Debs., Series A, 12/1/04 250,000 265,000
12.50% Sr. Sub. Debs., Series B, 12/1/04 100,000 104,750
9.50% Sr. Sub. Debs., 7/1/03 250,000 235,000
- ----------------------------------------------------------------------------------------------------------------
Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 1,700,000 1,640,500
------------
2,876,750
- ----------------------------------------------------------------------------------------------------------------
UTILITIES--2.5%
- ----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.5%
First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 750,000 730,206
- ----------------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.30% Lease Obligation Bonds, Series 1986A, 1/15/14 600,000 600,302
------------
1,330,508
- ----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.0%
Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03(5) 2,250,000 1,563,750
- ----------------------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(5) 2,000,000 1,520,000
- ----------------------------------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04(5) 100,000 64,250
- ----------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(5) 2,100,000 1,380,750
- ----------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 9.75% Sr. Sec. Nts., 8/1/00 500,000 493,750
- ----------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01(5) 150,000 111,000
------------
5,133,500
------------
Total Corporate Bonds and Notes (Cost $157,455,434) 156,030,048
</TABLE>
<TABLE>
<CAPTION>
SHARES
================================================================================================================
<S> <C> <C>
COMMON STOCKS--0.5%
- ----------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I.(8) 75 75,000
- ----------------------------------------------------------------------------------------------------------------
Equitable Bag, Inc.(12) 2,261 6,783
- ----------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(12) 10,120 223,905
- ----------------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., Cl. A(12) 2,334 25,674
- ----------------------------------------------------------------------------------------------------------------
Hollywood Casino Corp.(12) 18,254 102,678
- ----------------------------------------------------------------------------------------------------------------
Jewel Recovery LP 1,985 0
- ----------------------------------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc.(12) 7,528 144,914
- ----------------------------------------------------------------------------------------------------------------
New World Communications Group, Inc., Cl. A(12) 3,640 62,790
- ----------------------------------------------------------------------------------------------------------------
Petrolane, Inc., Cl. B 34,270 522,618
- ----------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc.(8)(12) 9,500 38,000
- ----------------------------------------------------------------------------------------------------------------
Zale Corp.(12) 1,985 23,324
---------
Total Common Stocks (Cost $932,452) 1,225,686
</TABLE>
11 Oppenheimer Champion High Yield Fund
<PAGE> 12
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- ----------------------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
================================================================================================================
<S> <C> <C>
PREFERRED STOCKS--0.8%
- ----------------------------------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 2,600 $265,200
- ----------------------------------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 9,700 977,275
- ----------------------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exch., Series B(7) 6,892 668,589
-----------
Total Preferred Stocks (Cost $1,927,011) 1,911,064
</TABLE>
<TABLE>
<CAPTION>
UNITS
================================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- ----------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Excess Cash Flow Payment Certificates,
Series AG-7A 6,200 62
- ----------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc., Litigation Trust 19,829 198
- ----------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00(8) 12,500 25,000
- ----------------------------------------------------------------------------------------------------------------
Casino America, Inc. Wts., Exp. 11/96 1,631 408
- ----------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc. Wts., Exp. 10/03 1,000 5,000
- ----------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts., Cl. C, Exp. 12/99 6,741 37,075
- ----------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. Wts., Cl. D, Exp. 12/01 6,741 37,918
- ----------------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 2,088 21,924
- ----------------------------------------------------------------------------------------------------------------
Interco, Inc. Wts., Series 1, Exp. 8/99 8,655 35,702
- ----------------------------------------------------------------------------------------------------------------
OSI Specialties Corp. Wts., Exp. 4/99 3,000 6,000
- ----------------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 11/03 28,000 126,000
- ----------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97(8) 1,733 35
- ----------------------------------------------------------------------------------------------------------------
Southland Corp. Wts., Exp. 3/96 300 600
- ----------------------------------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 7/96(6) 300 225
- ----------------------------------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 4,750 238
-----------
Total Rights, Warrants and Certificates (Cost $233,868) 296,385
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENTS--26.4%
- ----------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 6.25%,
dated 3/31/95, to be repurchased at $59,030,729 on 4/3/95, collateralized
by U.S. Treasury Nts., 4.75%--8.875%, 5/15/96--10/31/99 with a value of
$51,482,140 and U.S. Treasury Bonds, 8.125%--12.50%, 8/14/14--8/15/19, with
a value of $8,761,980 59,000,000 59,000,000
- ----------------------------------------------------------------------------------------------------------------
Repurchase agreement with Morgan Guaranty Trust Co., 6.05%,
dated 3/31/95, to be repurchased at $8,104,084 on 4/3/95, collateralized
by U.S. Treasury Nts., 5.125%, 11/30/98, with a value of $8,282,560 8,100,000 8,100,000
-----------
Total Repurchase Agreements (Cost $67,100,000) 67,100,000
</TABLE>
12 Oppenheimer Champion High Yield Fund
<PAGE> 13
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
================================================================================================================
<S> <C> <C>
TOTAL INVESTMENTS, AT VALUE (COST $254,516,343) 99.6% $253,279,432
- ----------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.4 1,118,721
----- ------------
NET ASSETS 100.0% $254,398,153
===== ============
</TABLE>
1. Face amount is reported in local currency. Foreign currency abbreviations are
as follows:
CAD--Canadian Dollar IDR--Indonesian Rupiah
2. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed-income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs).
3. Securities with an aggregate market value of $157,031 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts, as follows:
<TABLE>
<CAPTION>
TYPE OF CONTRACT NUMBER OF CONTRACTS FACE AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Nts., 6/95 20 $2,000,000
</TABLE>
The market value of the open contracts was $2,078,125 at March 31, 1995, with a
net unrealized gain of $13,750.
4. Represents the current interest rate for a variable rate security.
5. Represents a zero coupon bond that converts to a fixed rate of interest at a
designated future date.
6. Represents a security sold under Rule 144A, which is exempt from registration
under the Securities Act of 1933, as amended. This security has been determined
to be liquid under guidelines established by the Board of Trustees. These
securities amount to $4,199,369 or 1.65% of the Fund's net assets, at March 31,
1995.
7. Interest or dividend is paid in kind.
8. Identifies issues considered to be illiquid--See Note 7 of Notes to Financial
Statements.
9. Non-income producing--issuer is in default of interest payment.
10. Represents the current interest rate for an increasing rate security.
11. Partial interest payment received.
12. Non-income producing security.
See accompanying Notes to Financial Statements.
13 Oppenheimer Champion High Yield Fund
<PAGE> 14
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES March 31, 1995 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value (including repurchase agreements of $67,100,000)
(cost $254,516,343)--see accompanying statement $253,279,432
- ----------------------------------------------------------------------------------------------------------------
Receivables:
Interest 4,638,533
Shares of beneficial interest sold 2,457,232
Investments sold 82,460
Receivable for daily variation on futures contracts 5,000
- ----------------------------------------------------------------------------------------------------------------
Other 24,157
-----------
Total assets 260,486,814
================================================================================================================
LIABILITIES
Bank overdraft 167,697
- ----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 4,515,125
Shares of beneficial interest redeemed 1,007,327
Dividends 239,941
Distribution and service plan fees--Note 6 136,852
Trustees' fees 1,914
Other 19,805
------------
Total liabilities 6,088,661
================================================================================================================
NET ASSETS $254,398,153
============
================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $260,386,593
- ----------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (201,354)
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment
and foreign currency transactions (4,563,925)
Net unrealized depreciation on investments and translation
of assets and liabilities denominated in foreign currencies (1,223,161)
------------
Net assets $254,398,153
============
================================================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $211,839,550 and 17,405,161 shares of beneficial interest outstanding) $12.17
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $12.78
- ----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $42,558,603 and 3,499,463 shares of beneficial interest outstanding) $12.16
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer Champion High Yield Fund
<PAGE> 15
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1995 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $6,629) $9,879,424
- ----------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $546) 41,921
----------
Total income 9,921,345
================================================================================================================
EXPENSES
Management fees--Note 6 739,717
- ----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 6 212,059
Class C--Note 6 164,812
- ----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 6 62,251
- ----------------------------------------------------------------------------------------------------------------
Shareholder reports 51,537
- ----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 16,427
- ----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 2,185
Class C 5,498
- ----------------------------------------------------------------------------------------------------------------
Legal and auditing fees 5,074
- ----------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 1,904
- ----------------------------------------------------------------------------------------------------------------
Other 1,912
----------
Total expenses 1,263,376
================================================================================================================
NET INVESTMENT INCOME 8,657,969
================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN
CURRENCY TRANSACTIONS
Net realized loss from:
Investments (3,685,674)
Closing of options written (44,972)
Foreign currency transactions (11,546)
----------
Net realized loss (3,742,192)
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments and options written 1,710,294
Translation of assets and liabilities denominated in foreign currencies (51,459)
----------
Net change 1,658,835
----------
Net realized and unrealized loss on investments, options written
and foreign currency transactions (2,083,357)
================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $6,574,612
==========
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Champion High Yield Fund
<PAGE> 16
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN ASSETS
- ----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994
================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 8,657,969 $ 12,321,861
- ----------------------------------------------------------------------------------------------------------------
Net realized loss on investments, options written and
foreign currency transactions (3,742,192) (587,272)
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments, options written and translation of assets
and liabilities denominated in foreign currencies 1,658,835 (5,840,526)
------------ ------------
Net increase in net assets resulting from operations 6,574,612 5,894,063
================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A ($.497 and $1.102 per share, respectively) (7,393,218) (11,428,985)
Class C ($.450 and $.765 per share, respectively) (1,233,476) (828,957)
- ----------------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.006 per share) -- (59,802)
Class C ($.004 per share) -- (4,337)
- ----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments,
options written and foreign currency transactions:
Class A ($.002 per share) (26,483) --
Class C ($.002 per share) (4,572) --
- ----------------------------------------------------------------------------------------------------------------
Distributions in excess of net realized gain on investments,
options written and foreign currency transactions:
Class A ($.189 per share) -- (1,773,705)
Class C ($.189 per share) -- (25,332)
================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from Class A beneficial
interest transactions--Note 2 53,110,963 63,236,754
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class C beneficial
interest transactions--Note 2 15,121,819 28,773,777
================================================================================================================
NET ASSETS
Total increase 66,149,645 83,783,476
- ----------------------------------------------------------------------------------------------------------------
Beginning of period 188,248,508 104,465,032
------------ ------------
End of period (including overdistributed net investment income
of $201,354 and $232,629, respectively) $254,398,153 $188,248,508
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Champion High Yield Fund
<PAGE> 17
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS ENDED
MARCH 31, 1995 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1994 1993 1992 1991 1990
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 12.32 $ 12.90 $ 12.26 $ 11.49 $ 10.46 $ 11.53
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .50 1.10 1.22 1.41 1.45 1.43
Net realized and unrealized gain
(loss) on investments, options written
and foreign currency transactions (.15) (.38) .64 .77 1.04 (1.08)
-------- ------ ------ ------ ------ ------
Total income from investment
operations .35 .72 1.86 2.18 2.49 .35
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.50) (1.10) (1.22) (1.41) (1.46) (1.42)
Dividends in excess of net
investment income -- (.01) -- -- -- --
Distributions from net realized gain
on investments, options written
and foreign currency transactions --(2) -- -- -- -- --
Distributions in excess of net realized
gain on investments, options written
and foreign currency transactions -- (.19) -- -- -- --
-------- ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.50) (1.30) (1.22) (1.41) (1.46) (1.42)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.17 $ 12.32 $ 12.90 $ 12.26 $ 11.49 $ 10.46
======== ======== ======= ======= ======= =======
=================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 2.96% 5.61% 15.92% 19.94% 25.62% 3.13%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $211,840 $160,505 $104,465 $47,125 $16,044 $13,910
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $179,227 $135,431 $ 73,334 $28,270 $14,057 $17,163
- ---------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 17,405 13,026 8,096 3,844 1,397 1,330
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 8.32%(4) 8.49% 9.52% 11.60% 13.49% 12.92%
Expenses 1.07%(4) 1.22% 1.24% 1.35% 1.49% 1.40%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 43.0% 108.0% 116.2% 121.5% 114.8% 67.8%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
--------------------------
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, 1995 SEPT. 30,
(UNAUDITED) 1994(1)
==========================================================================
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 12.32 $ 13.13
- --------------------------------------------------------------------------
Income from investment operations:
Net investment income .45 .75
Net realized and unrealized gain
(loss) on investments, options written
and foreign currency transactions (.16) (.60)
------ ------
Total income from investment
operations .29 .15
- --------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.45) (.77)
Dividends in excess of net
investment income -- --(2)
Distributions from net realized gain
on investments, options written
and foreign currency transactions --(2) --
Distributions in excess of net realized
gain on investments, options written
and foreign currency transactions -- (.19)
------ ------
Total dividends and distributions
to shareholders (.45) (.96)
- --------------------------------------------------------------------------
Net asset value, end of period $ 12.16 $ 12.32
======= =======
==========================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 2.48% 1.11%
==========================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $42,559 $27,743
- --------------------------------------------------------------------------
Average net assets (in thousands) $33,041 $13,693
- --------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 3,499 2,251
- --------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 7.42%(4) 7.24%(4)
Expenses 1.84%(4) 1.94%(4)
- --------------------------------------------------------------------------
Portfolio turnover rate(5) 43.0% 108.0%
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to September 30,
1994.
2. Less than $.005 per share.
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. Total returns are not annualized for
periods of less than one full year.
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 calculatio n. Purchases
and sales of investment securities (excluding short-term securities) for the six
months ended March 31, 1995 were $98,005,720 and $61,346,038, respectively.
See accompanying Notes to Financial Statements.
17 Oppenheimer Champion High Yield Fund
<PAGE> 18
- --------------------------------------------------------------------------------
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 the close of the New
York Stock Exchange 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 and
short-term "non-money market" debt securities are valued by a portfolio
pricing service approved by the Board of Trustees. Such securities which cannot
be valued by the approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or under consistently applied procedures established by the Board of
Trustees to determine fair value in good faith. Short-term "money market type"
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. Forward contracts are valued based on the closing
prices of the forward currency contract rates in the London foreign exchange
markets on a daily basis as provided by a reliable bank or dealer. Options are
valued based upon the last sale price on the principal exchange on which the
option is traded or, in the absence of any transactions that day, the value is
based upon the last sale price on the prior trading date if it is within the
spread between the closing bid and asked prices. If the last sale price is
outside the spread, the closing bid or asked price closest to the last reported
sale price is used.
- --------------------------------------------------------------------------------
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, 1995, securities with an
aggregate market value of $1,582,674, representing .62% of the Fund's net
assets, were in default.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of securities and investment income are translated at
the rates of exchange prevailing on the respective dates of such transactions.
The effect of changes in foreign currency exchange rates on
investments is separately identified from the fluctuations arising from changes
in market values of securities held and reported with all other foreign currency
gains and losses in the Fund's 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. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If the
seller of the agreement defaults and the value of the collateral declines, or if
the seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
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 TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
18 Oppenheimer Champion High Yield Fund
<PAGE> 19
================================================================================
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.
================================================================================
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund. Effective October 1,
1993, the Fund adopted Statement of Position 93-2: Determination, Disclosure,
and Financial Statement Presentation of Income, Capital Gain, and Return of
Capital Distributions by Investment Companies. As a result, the Fund changed the
classification of distributions to shareholders to better disclose the
differences between financial statement amounts and distributions determined in
accordance with income tax regulations.
================================================================================
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, 1995 YEAR ENDED SEPTEMBER 30, 1994(1)
------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 7,057,544 $ 85,589,259 10,281,508 $ 131,255,862
Dividends and distributions reinvested 404,417 4,904,681 665,353 8,503,155
Redeemed (3,082,696) (37,382,977) (6,017,355) (76,522,263)
---------- ------------ ----------- -------------
Net increase 4,379,265 $ 53,110,963 4,929,506 $ 63,236,754
========== ============ =========== =============
-------------
Class C:
Sold 1,496,234 $ 18,127,180 2,447,647 $ 31,251,062
Dividends and distributions reinvested 66,421 804,792 45,942 574,950
Redeemed (314,611) (3,810,153) (242,170) (3,052,235)
---------- ------------ ----------- -------------
Net increase 1,248,044 $ 15,121,819 2,251,419 $ 28,773,777
========== ============ =========== =============
</TABLE>
1. For the year ended September 30, 1994 for Class A shares and for the period
from December 1, 1993 (inception of offering) to September 30, 1994 for Class C
shares.
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At March 31, 1995, net unrealized depreciation on investments and options
written of $1,236,911 was composed of gross appreciation of $3,602,641, and
gross depreciation of $4,839,552.
================================================================================
4. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write covered call options on
portfolio securities in order to produce incremental earnings or protect against
changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call
options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Fund receives a premium and becomes obligated to
sell or purchase the underlying security at a fixed price, upon exercise of the
option.
Options are valued daily based upon the last sale price on the
principal exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
19 Oppenheimer Champion High Yield Fund
<PAGE> 20
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
4. OPTION ACTIVITY (CONTINUED)
In this report, securities designated to cover outstanding call options are
noted in the Statement of Investments. Shares subject to call, expiration date,
exercise price, premium received and market value are detailed in a footnote to
the Statement of Invest ments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Gains and losses are reported in the
Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid secondary market does
not exist.
Written call option activity for the six months ended March 31, 1995 was as
follows:
<TABLE>
<CAPTION>
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
- -----------------------------------------------------------------------
<S> <C> <C>
Options outstanding at September 30, 1994 2,321,848 $ 29,435
Options closed (2,321,848) (29,435)
--------- --------
Options outstanding at March 31, 1995 -- $ --
========= ========
</TABLE>
The cost of canceling options in closing purchase transactions was $15,537,
resulting in a net short-term loss of $44,972.
================================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or
protect against changes in interest rates. The Fund may also buy or write put or
call options on these futures contracts.
The Fund generally sells futures contracts to hedge against
increases in interest rates and the resulting negative effect on the value of
fixed rate portfolio securities. The Fund may also purchase futures contracts to
gain exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities in an amount (initial margin) equal to a
certain percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Fund each day. The variation margin paym ents are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized gain or loss when the contract
is closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable or
payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options)
include the possibility that there may be an illiquid market and that a change
in the value of the contract or option may not correlate with changes in the
value of the underlying securities.
At March 31, 1995, the Fund had outstanding futures contracts to sell debt
securities as follows:
<TABLE>
<CAPTION>
NUMBER OF VALUATION AS OF UNREALIZED
SECURITY EXPIRATION DATE FUTURES CONTRACTS MARCH 31, 1995 APPRECIATION
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Nts. 6/95 20 $2,078,125 $13,750
</TABLE>
================================================================================
6. 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 state regulatory limit on Fund expenses.
20 Oppenheimer Champion High Yield Fund
<PAGE> 21
================================================================================
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
For the six months ended March 31, 1995, commissions (sales charges paid by
investors) on sales of Class A shares totaled $1,084,104, of which $276,341 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class C shares
totaled $163,808 of which $3,767 was paid to an affiliated broker/dealer. During
the six months ended March 31, 1995, OFDI received contingent deferred sales
charges of $14,765 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 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, 1995, OFDI
paid $6,926 and $1,010, respectively, to an affiliated broker/dealer as
reimbursement for Class A and Class C personal service and maintenance expenses
and retained $161,247 as reimbursement for Class C sales commissions and
service fee advances, as well as financing costs.
================================================================================
7. ILLIQUID SECURITIES
At March 31, 1995, investments in securities included issues that are illiquid
or restricted. The securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by
the Board of Trustees as reflecting fair value. The Fund intends to invest no
more than 10% of its net assets (determined at the time of purchase) in illiquid
or restricted securities. The aggregate value of these securities subject to
this limitation at March 31, 1995 was $1,135,241 which represents .45% of the
Fund's net assets. Information concerning these securities is as follows:
<TABLE>
<CAPTION>
VALUATION PER
UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT MARCH 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Charlie's, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00 11/18/93 $ 100.00 $ 81.50
- ----------------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/18/93 $ 2.00 $ 2.00
- ----------------------------------------------------------------------------------------------------------------------------------
Capitol Queen & Casino, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00 11/18/93 $ 89.94 $ 91.50
- ----------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I.:
Common Stock 4/14/92 $1,000.00 $1,000.00
14% Sub. Nts., 6/10/02 4/14/92--7/28/92 $ 100.50 $ 110.00
- ----------------------------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc. Wts., Exp. 8/97 10/25/93 $ -- $ .02
- ----------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Common Stock 5/2/94 $ 9.50 $ 4.00
</TABLE>
Pursuant to guidelines adopted by the Board of Trustees, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
21 Oppenheimer Champion High Yield Fund
<PAGE> 22
- --------------------------------------------------------------------------------
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
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR
Oppenheimer Management Corporation
================================================================================
DISTRIBUTOR
Oppenheimer Funds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
Oppenheimer Shareholder Services
================================================================================
CUSTODIAN OF PORTFOLIO SECURITIES
The Bank of New York
================================================================================
INDEPENDENT AUDITORS
Deloitte & Touche LLP
================================================================================
LEGAL COUNSEL
Myer, Swanson, Adams & Wolf, 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.
22 Oppenheimer Champion High Yield Fund
<PAGE> 23
- -------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------
===============================================================================
OppenheimerFunds offers over 35 funds designed to fit virtually every investment
goal. Whether you're investing for retirement, your children's education or
tax-free income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing
that you are investing with a respected financial institution with over 30 years
of experience in helping people just like you reach their financial goals. And
you're investing with a leader in global, growth stock and flexible fixed income
investments--with over 2.4 million shareholder accounts and more than $30
billion under Oppenheimer's management and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange shares of eligible
funds of the same class. And you can exchange shares easily by mail or by
telephone.(1) For more information on OppenheimerFunds, please contact your
financial advisor or call us at 1-800-525-7048 for a prospectus. You may also
write us at the address shown on the back cover. As always, please read the
prospectus carefully before you invest.
===============================================================================
STOCK FUNDS
Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Time Fund Value Stock Fund
Target Fund Gold & Special Minerals Fund
Growth Fund(3)
===============================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth &Income Fund
===============================================================================
BOND FUNDS
High Yield Fund Strategic Short-Term Income Fund
ChampionHigh Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Limited-Term Government Fund
Strategic Investment Grade Bond Fund
===============================================================================
TAX-EXEMPT FUNDS
New York Tax-Exempt Fund(4) New Jersey Tax-Exempt Fund(4)
California Tax-Exempt Fund(4) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(4) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Bond Fund
===============================================================================
MONEY MARKET FUNDS
Money Market Fund Cash Reserves
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Available only to residents of certain states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
23 Oppenheimer Champion High Yield Fund
<PAGE> 24
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0190.001.0595 May 31, 1995
"How may I help you?"
As an OppenheimerFunds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get auto-mated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
[PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- -------------------------------------------------------------------------------
---------------
[LOGO] Oppenheimer Funds Distributor, Inc. Bulk Rate
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---------------
