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015 A000001 THE BANK OF NEW YORK
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015 C020001 NY
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020 A000001 GREENWICH SECURITIES, INC.
020 B000001 13-2697091
020 C000001 9226
020 A000002 PAINEWEBBER, INC.
020 B000002 13-2638166
020 C000002 3758
020 A000003 ZION FIRST NATIONAL BANK
020 B000003 87-0189025
020 C000003 332
020 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
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020 C000004 245
020 A000005 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
020 B000005 13-2741729
020 C000005 204
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020 C000006 196
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020 C000007 173
020 A000008 MORGAN STANLEY & CO., INC.
<PAGE> PAGE 2
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020 A000009 GOLDMAN, SACHS & CO.
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020 A000010 FIRST CHICAGO CAPITAL MARKET
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022 B000010 FOREIGN
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<PAGE> PAGE 3
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<PAGE> PAGE 5
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SIGNATURE GEORGE C. BOWEN
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 829801
<NAME> Oppenheimer Multi-Sector Income Trust
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Oct-31-1996
<PERIOD-START> Nov-01-1995
<PERIOD-END> Oct-31-1996
<INVESTMENTS-AT-COST> 304,725,289
<INVESTMENTS-AT-VALUE> 312,038,897
<RECEIVABLES> 18,068,734
<ASSETS-OTHER> 21,129
<OTHER-ITEMS-ASSETS> 102,689
<TOTAL-ASSETS> 330,231,449
<PAYABLE-FOR-SECURITIES> 23,385,124
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 665,005
<TOTAL-LIABILITIES> 24,050,129
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 315,731,928
<SHARES-COMMON-STOCK> 29,116,068
<SHARES-COMMON-PRIOR> 29,116,068
<ACCUMULATED-NII-CURRENT> 556,961
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (17,508,519)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,400,950
<NET-ASSETS> 306,181,320
<DIVIDEND-INCOME> 183,032
<INTEREST-INCOME> 29,402,390
<OTHER-INCOME> 0
<EXPENSES-NET> 3,113,925
<NET-INVESTMENT-INCOME> 26,471,497
<REALIZED-GAINS-CURRENT> 7,876,133
<APPREC-INCREASE-CURRENT> 3,026,272
<NET-CHANGE-FROM-OPS> 37,373,902
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 26,320,905
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 11,052,997
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (24,865,208)
<OVERDISTRIB-NII-PRIOR> 113,075
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,939,377
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,113,925
<AVERAGE-NET-ASSETS> 298,496,000
<PER-SHARE-NAV-BEGIN> 10.14
<PER-SHARE-NII> 0.91
<PER-SHARE-GAIN-APPREC> 0.37
<PER-SHARE-DIVIDEND> 0.90
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.52
<EXPENSE-RATIO> 1.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<PAGE>
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER MULTI-SECTOR INCOME TRUST:
In planning and performing our audit of the financial statements of Oppenheimer
Multi-Sector Income Trust for the year ended October 31, 1996, we considered its
internal control structure, including procedures 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
NSAR, not to provide assurance on the internal control structure.
The management of Oppenheimer Multi-Sector Income Trust is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the structure 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 internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities 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 internal control structure, including procedures for safeguarding
securities, that we considered to be material weaknesses as defined above as of
October 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission and should not be used for any other purpose.
/S/KPMG PEAT MARWICK LLP
KPMG PEAT MARWICK LLP
Denver, Colorado
November 21, 1996
<PAGE>
SHAREHOLDER MEETING (Unaudited)
On May 21, 1996, an annual shareholder meeting was held at which the five
Trustees identified below were elected and the selection of KPMG Peat Marwick
LLP as the independent auditors of the Trust for the fiscal year beginning
November 1, 1995 was ratified (Proposal No. 1). The following is a report of
the votes cast:
<TABLE>
<CAPTION>
WITHHELD/ BROKER
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN NON VOTES TOTAL
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Bridget A. Macaskill 22,816,761 375,783 1,943,021 25,135,565
Elizabeth Moynihan 22,178,992 413,552 -- 1,943,021 25,135,565
Sidney M. Robbins 22,754,739 437,805 -- 1,943,021 25,135,565
Donald W. Spiro 22,809,389 383,155 -- 1,943,021 25,135,565
Pauline Trigere 22,773,588 418,956 -- 1,943,021 25,135,565
Proposal No. 1 22,794,873 115,279 4,263,094 1,943,021 25,135,565
</TABLE>
<PAGE>
During the year ended October 31, 1996, the Fund adjusted 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 October 31, 1996, amounts have
been reclassified to reflect an increase in undistributed net investment income
of $459,398. Accumulated net realized loss on investments was increased by the
same amount. In addition, to properly reflect foreign currency gain in the
components of capital, $60,046 of foreign exchange gain determined according to
U.S. Federal income tax rules has been reclassified from accumulated net
realized loss to undistributed net investment income.
