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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 9
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SIGNATURE GEORGE C. BOWEN
TITLE TREASURER
Return of Capital
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 year ended
October 31, 1998, amounts have been reclassified to reflect a decrease in
additional paid-in capital of $1,547,363, a decrease in overdistributed net
investment income of $1,498,385, and a decrease in accumulated net realized loss
on investments of $48,978.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 829801
<NAME> Oppenheimer Multi-Sector Income Trust
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 304,074,746
<INVESTMENTS-AT-VALUE> 287,959,167
<RECEIVABLES> 10,610,424
<ASSETS-OTHER> 16,905
<OTHER-ITEMS-ASSETS> 20,506
<TOTAL-ASSETS> 298,607,002
<PAYABLE-FOR-SECURITIES> 11,565,530
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,134,535
<TOTAL-LIABILITIES> 12,700,065
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 312,432,008
<SHARES-COMMON-STOCK> 29,116,068
<SHARES-COMMON-PRIOR> 29,116,068
<ACCUMULATED-NII-CURRENT> 169,342
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (10,400,329)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (16,294,084)
<NET-ASSETS> 285,906,937
<DIVIDEND-INCOME> 494,062
<INTEREST-INCOME> 25,603,479
<OTHER-INCOME> 0
<EXPENSES-NET> 3,068,147
<NET-INVESTMENT-INCOME> 23,029,394
<REALIZED-GAINS-CURRENT> (1,954,051)
<APPREC-INCREASE-CURRENT> (20,031,594)
<NET-CHANGE-FROM-OPS> 1,043,749
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 22,561,595
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 1,547,363
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (23,065,209)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (8,495,256)
<OVERDISTRIB-NII-PRIOR> 249,479
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,980,152
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,068,147
<AVERAGE-NET-ASSETS> 304,773,000
<PER-SHARE-NAV-BEGIN> 10.61
<PER-SHARE-NII> 0.79
<PER-SHARE-GAIN-APPREC> (0.75)
<PER-SHARE-DIVIDEND> 0.78
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</TABLE>
Auditor Letter
The Board of Directors 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, 1998, we considered its
internal controls, 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 N-SAR, not
to provide assurance on internal controls.
The management of Oppenheimer Multi-Sector Income Trust is responsible for
establishing and maintaining internal controls. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control policies and procedures.
Two of the objectives of internal controls 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 controls, errors may occur and
may not be detected. Also, projection of any evaluation of internal controls to
future periods is subject to the risk that they may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal controls would not necessarily disclose all
matters in internal controls 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 specific
internal control elements does not reduce to a relatively low level the risk
that errors 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 internal controls, including procedures for
safeguarding securities, that we considered to be material weaknesses as defined
above as of October 31, 1998.
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.
KPMG Peat Marwick LLP
Denver, Colorado
November 20, 1998
