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000 B000000 10/31/97
000 C000000 0000829801
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001 A000000 OPPENHEIMER MULTI-SECTOR INCOME TRUST
001 B000000 811-5473
001 C000000 2123230200
002 A000000 TWO WORLD TRADE CENTER
002 B000000 NEW YORK
002 C000000 NY
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002 D020000 0203
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018 000000 Y
019 A000000 N
019 B000000 0
020 A000001 FIRST BOSTON CORP. (THE)
020 B000001 13-5659485
020 C000001 43
020 A000002 PAINEWEBBER, INC.
020 B000002 13-2638166
020 C000002 26
020 A000003 DUETSCHE BANK CAPITAL CORP.
020 B000003 FOREIGN
020 C000003 12
020 A000004 GOLDMAN, SACHS & CO.
020 B000004 13-5108880
020 C000004 6
020 A000005 BEAR, STEARNS & CO., INC.
020 B000005 13-3299429
020 C000005 4
<PAGE> PAGE 2
020 A000006 BARCLAYS DE ZOETE WEDD SECURITIES, INC.
020 B000006 13-3551367
020 C000006 1
020 A000007 MERRILL LYNCH, PIERCE, FENNER, & SMITH, INC.
020 B000007 13-5674085
020 C000007 1
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 93
022 A000001 ZION FIRST NATIONAL BANK
022 B000001 87-0189025
022 C000001 1228300
022 D000001 0
022 A000002 MORGAN GUARANTY TRUST CO.
022 B000002 13-5123346
022 C000002 934000
022 D000002 0
022 A000003 GOLDMAN, SACHS & CO.
022 B000003 13-5108880
022 C000003 712340
022 D000003 56460
022 A000004 PAINEWEBBER, INC.
022 B000004 13-2638166
022 C000004 670041
022 D000004 0
022 A000005 LEHMAN BROTHERS, INC.
022 B000005 13-2518466
022 C000005 323111
022 D000005 285502
022 A000006 SALOMON BROTHERS, INC.
022 B000006 13-3082694
022 C000006 167764
022 D000006 208421
022 A000007 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000007 13-5674085
022 C000007 122693
022 D000007 93755
022 A000008 FIRST CHICAGO CAPITAL MARKET
022 B000008 36-3595942
022 C000008 129323
022 D000008 0
022 A000009 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
022 B000009 13-2741729
022 C000009 64604
022 D000009 46198
022 A000010 BEAR STERNS & CO., INC.
022 B000010 13-3299429
022 C000010 46245
022 D000010 62419
023 C000000 4784363
<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
077 A000000 Y
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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-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 330,527,644
<INVESTMENTS-AT-VALUE> 334,275,509
<RECEIVABLES> 54,875,494
<ASSETS-OTHER> 9,878
<OTHER-ITEMS-ASSETS> 448,990
<TOTAL-ASSETS> 389,609,871
<PAYABLE-FOR-SECURITIES> 79,794,979
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 842,746
<TOTAL-LIABILITIES> 80,637,725
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 313,979,371
<SHARES-COMMON-STOCK> 29,116,068
<SHARES-COMMON-PRIOR> 29,116,068
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 249,479
<ACCUMULATED-NET-GAINS> (8,495,256)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,737,510
<NET-ASSETS> 308,972,146
<DIVIDEND-INCOME> 131,377
<INTEREST-INCOME> 28,938,776
<OTHER-INCOME> 0
<EXPENSES-NET> 3,063,169
<NET-INVESTMENT-INCOME> 26,006,984
<REALIZED-GAINS-CURRENT> 6,185,833
<APPREC-INCREASE-CURRENT> (3,663,440)
<NET-CHANGE-FROM-OPS> 28,529,377
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 25,738,551
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,790,826
<ACCUMULATED-NII-PRIOR> 556,961
<ACCUMULATED-GAINS-PRIOR> (17,508,519)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,997,563
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,063,169
<AVERAGE-NET-ASSETS> 308,712,000
<PER-SHARE-NAV-BEGIN> 10.52
<PER-SHARE-NII> 0.89
<PER-SHARE-GAIN-APPREC> 0.08
<PER-SHARE-DIVIDEND> 0.88
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.61
<EXPENSE-RATIO> 0.99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
SHAREHOLDER MEETING (Unaudited)
On May 5, 1997, an annual shareholder meeting was held at which the three
Trustees identified below were elected, the selection of KPMG Peat Marwick LLP
as the independent certified public accountants and auditors of the Trust for
the fiscal year beginning November 1, 1996 was ratified (Proposal No. 1) and the
Investment Advisory Agreement between the Trust and OppenheimerFunds, Inc. was
approved (Proposal No. 2) as described in the Trust's proxy statement for
that meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
Withheld/
Nominee/Proposal For Against Abstain Broker Non-Votes Total
- ---------------- ----- ------- --------- ---------------- -----
Trustees
<S> <C> <C> <C> <C> <C>
Leon Levy 23,915,196 21,626 4,798,621 23,936,822
Bridget A. Macaskill 23,916,012 20,810 4,798,621 23,936,822
Clayton K. Yeutter 23,914,886 21,936 4,798,621 23,936,822
Proposal No. 1 23,839,950 42,542 54,330 4,798,621 23,936,822
Proposal No. 2 23,733,503 72,351 130,968 4,798,621 23,936,822
</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, 1997, 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 re quirements of Form
N-SAR, 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 state ments 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 ef fectiveness 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 rela tion to the financial statements being audited may
occur and not be detected within a timely pe riod 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, 1997.
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, 1997
<PAGE>
The Trust 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 period ended
October 31, 1997, amounts have been reclassified to reflect a decrease in
undistributed net investment income of $1,074,873, a decrease in accumulated net
realized loss on investments of $2,827,430, and a decrease in paid-in capital of
$1,752,557.
