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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE GEORGE BOWEN
TITLE TREASURER
Return of Capital
The Fund adjusts the classification of distributions to shareholders to reflect
the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, during the year ended
September 30, 1998, amounts have been reclassified to reflect a decrease in
paid-in capital of $3,644,139, an increase in undistributed net investment
income of $478,678, and an increase in accumulated net realized gain on
investments of $3,165,461.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 820120
<NAME> OPPENHEIMER CHAMPION INCOME FUND-- A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,276,065,816
<INVESTMENTS-AT-VALUE> 1,197,599,216
<RECEIVABLES> 28,582,985
<ASSETS-OTHER> 4,420
<OTHER-ITEMS-ASSETS> 507,714
<TOTAL-ASSETS> 1,226,694,335
<PAYABLE-FOR-SECURITIES> 32,099,071
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,230,538
<TOTAL-LIABILITIES> 41,329,609
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,256,524,564
<SHARES-COMMON-STOCK> 46,997,413
<SHARES-COMMON-PRIOR> 37,214,869
<ACCUMULATED-NII-CURRENT> 654,557
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,004,267
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (78,818,662)
<NET-ASSETS> 572,353,689
<DIVIDEND-INCOME> 5,567,892
<INTEREST-INCOME> 96,447,261
<OTHER-INCOME> 0
<EXPENSES-NET> 15,729,236
<NET-INVESTMENT-INCOME> 86,285,917
<REALIZED-GAINS-CURRENT> 6,948,507
<APPREC-INCREASE-CURRENT> (115,693,863)
<NET-CHANGE-FROM-OPS> (22,459,439)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 44,685,298
<DISTRIBUTIONS-OF-GAINS> 8,099,904
<DISTRIBUTIONS-OTHER> 1,752,073
<NUMBER-OF-SHARES-SOLD> 19,832,167
<NUMBER-OF-SHARES-REDEEMED> 12,908,673
<SHARES-REINVESTED> 2,859,050
<NET-CHANGE-IN-ASSETS> 263,623,921
<ACCUMULATED-NII-PRIOR> 175,879
<ACCUMULATED-GAINS-PRIOR> 12,115,500
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 13.49
<PER-SHARE-NII> 1.09
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<EXPENSE-RATIO> 1.06
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 820120
<NAME> OPPENHEIMER CHAMPION INCOME FUND-- B
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,276,065,816
<INVESTMENTS-AT-VALUE> 1,197,599,216
<RECEIVABLES> 28,582,985
<ASSETS-OTHER> 4,420
<OTHER-ITEMS-ASSETS> 507,714
<TOTAL-ASSETS> 1,226,694,335
<PAYABLE-FOR-SECURITIES> 32,099,071
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,230,538
<TOTAL-LIABILITIES> 41,329,609
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,256,524,564
<SHARES-COMMON-STOCK> 31,937,543
<SHARES-COMMON-PRIOR> 17,691,067
<ACCUMULATED-NII-CURRENT> 654,557
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,004,267
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (78,818,662)
<NET-ASSETS> 388,572,385
<DIVIDEND-INCOME> 5,567,892
<INTEREST-INCOME> 96,447,261
<OTHER-INCOME> 0
<EXPENSES-NET> 15,729,236
<NET-INVESTMENT-INCOME> 86,285,917
<REALIZED-GAINS-CURRENT> 6,948,507
<APPREC-INCREASE-CURRENT> (115,693,863)
<NET-CHANGE-FROM-OPS> (22,459,439)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 23,050,424
<DISTRIBUTIONS-OF-GAINS> 4,232,404
<DISTRIBUTIONS-OTHER> 1,189,487
<NUMBER-OF-SHARES-SOLD> 17,351,158
<NUMBER-OF-SHARES-REDEEMED> 4,464,160
<SHARES-REINVESTED> 1,359,478
<NET-CHANGE-IN-ASSETS> 263,623,921
<ACCUMULATED-NII-PRIOR> 175,879
<ACCUMULATED-GAINS-PRIOR> 12,115,500
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,943,309
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 15,729,236
<AVERAGE-NET-ASSETS> 326,804,291
<PER-SHARE-NAV-BEGIN> 13.48
<PER-SHARE-NII> 0.99
<PER-SHARE-GAIN-APPREC> (1.11)
<PER-SHARE-DIVIDEND> 0.95
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<PER-SHARE-NAV-END> 12.17
<EXPENSE-RATIO> 1.81
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 820120
<NAME> OPPENHEIMER CHAMPION INCOME FUND-- C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,276,065,816
<INVESTMENTS-AT-VALUE> 1,197,599,216
<RECEIVABLES> 28,582,985
<ASSETS-OTHER> 4,420
<OTHER-ITEMS-ASSETS> 507,714
<TOTAL-ASSETS> 1,226,694,335
<PAYABLE-FOR-SECURITIES> 32,099,071
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,230,538
<TOTAL-LIABILITIES> 41,329,609
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,256,524,564
<SHARES-COMMON-STOCK> 18,448,505
<SHARES-COMMON-PRIOR> 13,427,703
<ACCUMULATED-NII-CURRENT> 654,557
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,004,267
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (78,818,662)
<NET-ASSETS> 224,438,652
<DIVIDEND-INCOME> 5,567,892
<INTEREST-INCOME> 96,447,261
<OTHER-INCOME> 0
<EXPENSES-NET> 15,729,236
<NET-INVESTMENT-INCOME> 86,285,917
<REALIZED-GAINS-CURRENT> 6,948,507
<APPREC-INCREASE-CURRENT> (115,693,863)
<NET-CHANGE-FROM-OPS> (22,459,439)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 14,921,590
<DISTRIBUTIONS-OF-GAINS> 2,892,893
<DISTRIBUTIONS-OTHER> 687,045
<NUMBER-OF-SHARES-SOLD> 8,603,599
<NUMBER-OF-SHARES-REDEEMED> 4,608,529
<SHARES-REINVESTED> 1,025,732
<NET-CHANGE-IN-ASSETS> 263,623,921
<ACCUMULATED-NII-PRIOR> 175,879
<ACCUMULATED-GAINS-PRIOR> 12,115,500
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,943,309
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 15,729,236
<AVERAGE-NET-ASSETS> 210,337,697
<PER-SHARE-NAV-BEGIN> 13.48
<PER-SHARE-NII> 0.99
<PER-SHARE-GAIN-APPREC> (1.11)
<PER-SHARE-DIVIDEND> 0.95
<PER-SHARE-DISTRIBUTIONS> 0.20
<RETURNS-OF-CAPITAL> 0.04
<PER-SHARE-NAV-END> 12.17
<EXPENSE-RATIO> 1.81
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
Independant Auditors Report
October 28, 1998
To the Board of Trustees of
Oppenheimer Champion Income Fund:
In planning and performing our audit of the financial statements of Oppenheimer
Champion Income Fund (the "Fund") for the year ended September 30, 1998 (on
which we have issued our report dated October 28, 1998), we considered its
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, and not to provide assurance on the Fund's internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, error or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the Fund's internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving the
Fund's internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
September 30, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees of Oppenheimer Champion Income Fund, and the Securities and
Exchange Commission.
Yours truly,