<PAGE> 1
REPORT TO SHAREHOLDERS
Oppenheimer Multi-Government Trust produced an annualized dividend yield of
9.19% for the 28-day period ended April 30, 1994.(1) During the past six
months, the Trust's total return at net asset value was -1.15%.(2)
INVESTMENT BREAKDOWN:
OPPENHEIMER MULTI-GOVERNMENT TRUST
[INVESTMENT BREAKDOWN GRAPH]
* U.S. Government Obligations
Agency: Full Faith and Credit/4.9%
Agency: Government-Sponsored/14.3%
Treasury/36.9%
* Foreign Government Obligations
Agency: Full Faith and Credit/3.9%
Treasury/13.1%
* Corporate Bonds and Notes 20.3%
* Foreign Corporate Bonds and Notes 3.2%
* Preferred Stocks .4%
* Short-term Securities 3.0%
The Trust primarily seeks high current income consistent with preservation of
capital and has a secondary objective of capital appreciation. In keeping with
its flexible investment strategy, the Trust's managers seek high yields in
different economic environments by shifting assets among the various fixed
income sectors listed below. As of April 30, 1994, the Trust's portfolio was
allocated as indicated left.(3)
The U.S. economy strengthened considerably in the last six months, prompting
the Federal Reserve to raise interest rates several times as a pre-emptive
strike against inflation. Because bond prices generally fall when interest
rates rise, prices of U.S. government securities have correspondingly
declined.
Your Fund's managers expected the rise in domestic interest rates and
emphasized shorter-term investments in U.S. government securities. We remain
positioned for the possibility of further increases in U.S. rates. As part of
a defensive interest rate strategy, we have invested in high coupon
mortgage-backed securities. In a rising interest rate environment, these
mortgages provide high current yield and low sensitivity to interest rate
rises.
<PAGE> 2
In the European markets, however, we believe continued economic weakness and
the German central bank's recent decision to cut interest rates will cause bond
prices to rise. Accordingly, we have added European fixed income securities to
the portfolio. We have also added positions in select Latin American markets,
which offer attractive investment opportunities.
We believe corporate bonds will rise in price as the U.S. economic recovery
continues, helping corporate earnings increase and credit quality strengthen.
We are focused on industries that do well in the later stages of a recovery,
such as forest products and construction.
Thank you for your confidence in Oppenheimer Multi-Government Trust. We will
continue to monitor market conditions closely to seek out opportunitites for
the Trust.
Sincerely,
/s/ DONALD W. SPIRO
- - --------------------
Donald W. Spiro
President--Oppenheimer
Multi-Government Trust
May 20, 1994
1. Dividend yield was calculated by annualizing the 28-day April dividend of
$.052 per share and dividing that amount by the 4/29/94 closing price on The
New York Stock Exchange of $7.375 per share.
2. Based on the change in net asset value per share from 10/31/93 to 4/30/94,
with all dividends reinvested. Brokerage costs and taxes were not considered.
Past performance does not guarantee future results.
3. Portfolio allocation are subject to change.
<PAGE> 3
STATEMENT OF INVESTMENTS April 30, 1994 (Unaudited)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market Value
Face Amount See Note 1
------------ ------------
<S> <C> <C>
REPURCHASE AGREEMENTS -- 3.0%
Repurchase agreement with First Boston Corp., 3.55%, dated 4/29/94,
to be repurchased at $1,600,473 on 5/2/94, collateralized by U.S.
Treasury Nts., 4.625%-7.875%, 12/31/94-1/15/98, with a value of
$1,634,720 (Cost $1,600,000)..................................... $ 1,600,000 $ 1,600,000
------------
GOVERNMENT OBLIGATIONS -- 73.4%
AGENCY: FULL FAITH AND CREDIT -- 8.8%
Brazil (Federal Republic of):
Nts., Banco Estado Minas Gerais, 10%, 1/15/96.................... 250,000 241,875
Sr. Debs., Banco Do Nordeste, 9%, 11/12/96....................... 100,000 93,250
First Australia National Mortgage Acceptance Corp. Ltd. Bonds,
Series 22, 7.761%, 12/15/01...................................... 2,129,050 (1) 1,639,285
Government National Mortgage Assn., 7.50%, 2/15/24................. 2,710,899 2,632,066
United Mexican States, Gtd. Petroleos Mexicanos, 7.60%, 6/15/00.... 100,000 91,500
------------
4,697,976
AGENCY: GOVERNMENT SPONSORED -- 14.4%
Federal Home Loan Mortgage Corp. Mtg.-Backed Certificates:
11.50%, 1/1/18................................................... 210,198 232,652
13%, 5/1/19...................................................... 971,594 1,101,507
Federal National Mortgage Assn.:
Mtg.-Backed Certificates:
7%, 7/1/23....................................................... 4,901,027 4,641,469
Interest-Only Stripped Mtg.-Backed Security, Trust 240, Class 2,
7%, 9/25/23.................................................... 4,809,408 1,689,305
------------
7,664,933
TREASURY -- 50.2%
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas, Series I, 3.50%,
4/1/07 (4)(6).................................................. 141,450 82,733
Past Due Interest Bonds, 5%, 3/31/05 (4)(6)...................... 1,125,000 820,546
Brazil (Federal Republic of) Interest Due and Unpaid Bonds, 4.313%,
1/1/01 (4)....................................................... 99,000 72,084
Italy (Republic of) Treasury Bonds:
12.50%, 1/1/98................................................... 250,000,000 (1) 171,668
Buoni Pollennali del Tes:
12.50%, 3/19/98 (9).............................................. 100,000,000 (1) 69,013
12%, 1/17/99 (9)................................................. 100,000,000 (1) 68,730
</TABLE>
3
<PAGE> 4
STATEMENT OF INVESTMENTS April 30, 1994 (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market Value
Face Amount See Note 1
------------ ------------
<S> <C> <C>
GOVERNMENT OBLIGATIONS (CONTINUED)
TREASURY (CONTINUED)
Morocco (Kingdom of) Loan Participation Agreement, Tranche A,
4.446%, 1/1/09 (4)(5)............................................ $ 750,000 $ 501,469
Polish People's Republic Loan Participation Agreement:
5.063%, 2/3/24 (2)............................................... 250,000 80,313
7.938%, 2/8/24 (2)............................................... 250,000 (1) 54,396
Spain (Kingdom of):
Bonds, 11.45%, 8/30/98........................................... 60,000,000 (1) 484,356
Gtd. Bonds, Bonos y Obligacion del Estado, 12.25%, 3/25/00....... 255,000,000 (1) 2,156,922
United Kingdom Treasury Nts. (Gilt):
12%, 11/20/98 (9)................................................ 150,000 (1) 263,694
12.25%, 3/26/99 (9).............................................. 225,000 (1) 399,806
United Mexican States, 1990 Combined Multi-Year Restructured
Agreement, Restructured Sovereign Loan, 4.28%, 12/23/06 (4)...... 500,000 397,848
U.S. Treasury Bonds:
12.75%, 11/15/10................................................. 1,050,000 1,495,594
8.125%, 8/15/19.................................................. 2,500,000 2,696,092
12%, 8/15/20..................................................... 1,020,000 1,433,100
U.S. Treasury Coupon Strip, 0%, 5/15/09............................ 1,940,000 629,782
U.S. Treasury Nts.:
13.125%, 5/15/94................................................. 5,875,000 5,898,864
11.25%, 2/15/95.................................................. 1,500,000 1,572,655
11.25%, 5/15/19.................................................. 5,700,000 6,056,250
Venezuela (Republic of):
Debs., 6.75%, 9/20/95............................................ 100,000 95,500
Disc. Bonds, Series DL, 4.313%, 12/18/07......................... 250,000 121,250
Front-Loaded Interest Reduction Bonds:
Series A, 6%, 3/31/07 (4)........................................ 1,000,000 531,875
Series B, 7%, 3/31/07 (4)........................................ 1,250,000 664,844
------------
26,819,384
------------
Total Government Obligations (Cost $41,172,806).................... 39,182,293
</TABLE>
4
<PAGE> 5
STATEMENT OF INVESTMENTS April 30, 1994 (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market Value
Face Amount See Note 1
------------ ------------
<S> <C> <C>
CORPORATE BONDS AND NOTES -- 23.5%
BASIC MATERIALS -- 3.1%
Chemicals -- 0.5%
Rexene Corp.:
9% Fst. Priority Nts., 11/15/99 (8).............................. $ 50,000 $ 48,000
10% 2nd Priority Nts., 11/15/02 (6).............................. 250,000 213,542
------------
261,542
Metals -- 0.4%
Kaiser Aluminum & Chemical Corp.:
9.875% Sr. Nts., 2/15/02......................................... 175,000 163,625
12.75% Sr. Sub. Nts., 2/1/03..................................... 85,000 86,275
------------
249,900
Paper and Forest Products -- 2.2%
Gaylord Container Corp.:
11.50% Sr. Nts., 5/15/01......................................... 250,000 255,000
0%/12.75% Sr. Sub. Disc. Debs., 5/15/05 (3)...................... 250,000 206,250
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03........................ 300,000 296,250
Stone Consolidated, Inc., 10.25% Sr. Sec. Nts., 12/15/00........... 200,000 194,000
Stone Container Corp., 9.875% Sr. Nts., 2/01/01.................... 250,000 236,250
------------
1,187,750
CONSUMER CYCLICALS -- 8.4%
Automotive -- 0.5%
Envirotest Systems Corp., 9.625% Sr. Sub. Nts., 4/1/03............. 300,000 284,250
------------
Construction Supplies and Development -- 1.7%
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03.............................. 250,000 248,125
Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03 (2)................ 200,000 199,000
USG Corp.:
10.25% Sr. Sec. Nts., 12/15/02................................... 250,000 250,313
8.75% Debs., 3/1/17.............................................. 250,000 226,250
------------
923,688
Consumer Goods and Services -- 2.3%
Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B,
5/27/98.......................................................... 400,000 253,000
Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01....... 500,000 503,750
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series A, 10/1/03
(5).............................................................. 250,000 251,250
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05........... 250,000 229,375
------------
1,237,375
</TABLE>
5
<PAGE> 6
STATEMENT OF INVESTMENTS April 30, 1994 (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market Value
Face Amount See Note 1
------------ ------------
<S> <C> <C>
CORPORATE BONDS AND NOTES (CONTINUED)
Entertainment -- 1.6%
Capital Gaming International, Inc., Units (5)...................... $ 200,000 $ 232,478
Empress River Casino Finance Corp., 10.75% Gtd. Sr. Nts., 4/1/02... 150,000 149,250
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03................ 250,000 235,000
Treasure Bay Gaming & Resorts, Inc., Units (5)..................... 215,000 213,925
------------
830,653
Real Estate Development -- 0.2%
Casino Magic Finance Corp., 11.50% Fst. Mtg. Nts., 10/15/01........ 100,000 94,500
------------
Retail -- 2.1%
Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts.,
Series B, 9/1/03................................................. 250,000 242,500
Eye Care Centers of America, Inc., Units (5)....................... 300,000 295,500
Finlay Enterprises, Inc., 0%/12% Sr. Disc. Debs., 5/1/05 (3)....... 200,000 121,000
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03................ 200,000 201,000
Musicland Group, Inc. (The), 9% Sr. Sub. Nts., 6/15/03............. 250,000 237,500
Pay 'N Pak Stores, Inc., 13.50% Sr. Sub. Debs., 6/1/98 (2)......... 300,000 3,000
------------
1,100,500
CONSUMER NON-CYCLICALS -- 1.4%
Food -- 0.5%
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00..................... 250,000 241,250
------------
Food and Drug Distribution -- 0.9%
Di Giorgio Corp., 12% Sr. Nts., 2/15/03............................ 250,000 251,250
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99....... 250,000 233,750
------------
485,000
Energy -- 1.0%
Mesa Capital Corp., 0%/12.75% Disc. Nts., 6/30/96 (3).............. 282,000 248,160
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02............................ 300,000 310,500
------------
558,660
Financial -- 4.2%
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03
(5).............................................................. 300,000 294,000
Citibank:
17.35% CD, 7/28/94 (7)........................................... 408,400,000 (1) 958,122
16.75% CD, 12/19/94 (7).......................................... 211,826,664 (1) 496,954
</TABLE>
6
<PAGE> 7
STATEMENT OF INVESTMENTS April 30, 1994 (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market Value
Face Amount See Note 1
------------ ------------
<S> <C> <C>
CORPORATE BONDS AND NOTES (CONTINUED)
Financial (Continued)
Morgan Guaranty Trust Co. of New York (Singapore Branch),
12.15% CD, 2/3/95 (7)............................................ $528,312,500(1) $ 244,986
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (5)... 250,000 220,000
------------
2,214,062
INDUSTRIAL -- 2.4%
Containers -- 0.4%
Terex Corp., Units (5)............................................. 200,000 189,000
------------
General Industrial -- 1.6%
American Standard, Inc., 9.875% Sr. Sub. Nts., 6/1/01.............. 250,000 237,188
Imo Industries, Inc., 12.25% Sr. Sub. Debs., 8/15/97............... 300,000 299,250
Moran Energy, Inc., 8.75% Cv. Sub. Debs., 1/15/08.................. 200,000 153,944
Mosler, Inc., 11% Sr. Nts., Series A, 4/15/03...................... 200,000 179,000
------------
869,382
Transportation -- 0.4%
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc.
Nts., Series A, 12/15/03 (3)..................................... 400,000 218,000
------------
TECHNOLOGY -- 3.0%
Aerospace/Defense -- 0.4%
Delta Airlines, Inc., 3.23% Cv. Sub. Nts., 6/15/03................. 150,000 106,313
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98...................... 150,000 125,250
------------
231,563
Cable Television -- 0.5%
International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts.,
10/15/03 (3)..................................................... 410,000 248,050
------------
Communications -- 1.2%
Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (3).......... 300,000 184,500
Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr.
Sub. Disc. Nts., 10/1/00 (3)..................................... 250,000 168,750
Nextel Communications, Inc., 0%/9.75 Sr. Disc. Nts., 8/15/04 (3)... 300,000 177,750
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts.,
8/1/03 (3)....................................................... 200,000 126,000
------------
657,000
</TABLE>
7
<PAGE> 8
STATEMENT OF INVESTMENTS April 30, 1994 (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market Value
Face Amount See Note 1
------------ ------------
<S> <C> <C>
CORPORATE BONDS AND NOTES (CONTINUED)
Technology -- 0.9%
Bell & Howell Holdings Co., 10.75% Sr. Sub. Nts., Series B,
10/1/02.......................................................... $ 900,000 $ 481,500
------------
Total Corporate Bonds and Notes (Cost $13,006,937)................. 12,563,625
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
------------
<S> <C> <C>
PREFERRED STOCKS -- 0.4%
AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A (5).......... 5,000 223,750
Collins & Aikman Holdings Corp., $15.50 Exch. (6).................. 387 9,095
Finlay Enterprises, Inc., Cl. A (2)................................ 500 7,000
------------
Total Preferred Stocks (Cost $225,706)............................. 239,845
</TABLE>
<TABLE>
<CAPTION>
Units
------------
<S> <C> <C>
WARRANTS -- 0.0%
Capital Gaming International, Inc., Wts., Exp. 2/99 (5) (Cost
$0).............................................................. 500 1,195
------------
Total Investments, at Value (Cost $56,005,449)..................... 100.3% 53,586,958
Liabilities in Excess of Other Assets.............................. (.3) (177,837)
------------ ------------
Net Assets......................................................... 100.0% $53,409,121
============ ============
</TABLE>
(1) Face amount is reported in foreign currency.
(2) Non-income producing security.
(3) Represents a zero coupon bond that converts to a fixed rate of interest at a
designated future date.
(4) Represents the current interest rate for a variable rate security.
(5) Restricted security -- See Note 6 of Notes to Financial Statements.
(6) Interest or dividend is paid in kind.
(7) Indexed instrument for which the principal amount due at maturity is
affected by the relative value of a foreign security.
(8) Represents the current interest rate for an increasing rate security.
(9) Securities with an aggregate market value of $801,243 have been segregated
to cover outstanding forward foreign currency exchange contracts. See Note 7
of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
8
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES April 30, 1994 (Unaudited)
Oppenheimer Multi-Government Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $56,005,449) -- see accompanying statement................... $53,586,958
Cash..................................................................................... 330,281
Receivables:
Investments sold....................................................................... 1,806,907
Interest............................................................................... 1,599,043
Other.................................................................................... 19,858
-----------
Total assets......................................................................... 57,343,047
-----------
LIABILITIES:
Unrealized depreciation on forward foreign currency exchange contracts -- Note 7......... 55,799
Payables and other liabilities:
Investments purchased.................................................................. 3,376,096
Dividends.............................................................................. 344,007
Management and administrative fees -- Note 5........................................... 14,572
Other.................................................................................. 143,452
-----------
Total liabilities.................................................................... 3,933,926
-----------
NET ASSETS............................................................................... $53,409,121
===========
COMPOSITION OF NET ASSETS:
Par value of shares of beneficial interest............................................... $ 66,155
Additional paid-in capital............................................................... 59,800,516
Undistributed net investment income...................................................... 64,599
Accumulated net realized loss from investment, written option and foreign currency
transactions........................................................................... (4,049,588)
Net unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies...................................................... (2,472,561)
-----------
NET ASSETS -- Applicable to 6,615,505 shares of beneficial interest outstanding.......... $53,409,121
===========
NET ASSET VALUE PER SHARE................................................................ $ 8.07
===========
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE> 10
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1994 (Unaudited)
Oppenheimer Multi-Government Trust
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................................................................. $ 2,905,428
Dividends................................................................................ 9,959
-----------
Total income.................................................................... 2,915,387
-----------
EXPENSES:
Management fees -- Note 5................................................................ 179,551
Administrative fees -- Note 5............................................................ 55,346
Transfer agent and accounting services fees -- Note 5.................................... 22,682
Custodian fees and expenses.............................................................. 12,460
Legal and auditing fees.................................................................. 11,077
Registration and filing fees............................................................. 10,249
Trustees' fees and expenses.............................................................. 9,377
Shareholder reports...................................................................... 8,710
Other.................................................................................... 6,291
-----------
Total expenses.................................................................. 315,743
-----------
NET INVESTMENT INCOME.................................................................... 2,599,644
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Investments............................................................................ (1,136,248)
Closing of options written -- Note 4................................................... 44,250
Foreign currency transactions.......................................................... (130,614)
-----------
Net realized loss............................................................... (1,222,612)
-----------
Net change in unrealized appreciation or depreciation on:
Investments............................................................................ (2,846,463)
Translation of assets and liabilities denominated in foreign currencies................ 859,412
-----------
Net change...................................................................... (1,987,051)
-----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY
TRANSACTIONS........................................................................... (3,209,663)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ (610,019)
============
</TABLE>
See accompanying Notes to Financial Statements.
10
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1994 Year Ended
(Unaudited) October 31, 1993
-------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income................................................... $ 2,599,644 $ 5,356,694
Net realized loss on investments, options written and foreign currency
transactions.......................................................... (1,222,612) (871,780)
Net change in unrealized appreciation or depreciation on investments,
options written and translation of assets and liabilities denominated
in foreign currencies................................................. (1,987,051) 935,797
-------------- ----------------
Net increase (decrease) in net assets resulting from operations..... (610,019) 5,420,711
-------------- ----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ($.379 and $.751 per share, respectively).... (2,507,275) (4,929,126)
Tax return of capital distribution ($.08 per share)..................... -- (527,213)
-------------- ----------------
Total dividends and distributions to shareholders................... (2,507,275) (5,456,339)
BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued to shareholders in reinvestment of
dividends............................................................. -- 893,881
-------------- ----------------
Total increase (decrease) in net assets............................. (3,117,294) 858,253
NET ASSETS:
Beginning of period..................................................... 56,526,415 55,668,162
-------------- ----------------
End of period (including undistributed (distributions in excess of) net
investment income of $64,599 and $(27,770), respectively)............. $ 53,409,121 $ 56,526,415
============= ================
</TABLE>
See accompanying Notes to Financial Statements.
11
<PAGE> 12
FINANCIAL HIGHLIGHTS
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended October 31,
1994 ---------------------------------------------------
(Unaudited) 1993 1992 1991 1990 1989(1)
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of
period.............................. $ 8.54 $ 8.55 $ 8.97 $ 8.66 $ 9.12 $ 9.30
----------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income............... .39 .82 .89 .97 .96 .82
Net realized and unrealized gain
(loss) on investments, options
written and foreign
currency transactions............. (.48) -- (.39) .33 (.43) (.09)
----------- ------- ------- ------- ------- -------
Total income from investment
operations...................... (.09) .82 .50 1.30 .53 .73
----------- ------- ------- ------- ------- -------
Dividends and distributions to
shareholders:
Dividends from net investment
income............................ (.38) (.75) (.92) (.99) (.94) (.80)
Tax return of capital
distribution...................... -- (.08) -- -- -- --
Distributions from net realized gain
on investments, options written
and foreign currency
transactions...................... -- -- -- -- (.05) (.04)
----------- ------- ------- ------- ------- -------
Total dividends and distributions
to
shareholders.................... (.38) (.83) (.92) (.99) (.99) (.84)
Offering costs........................ -- -- -- -- -- (.07)
----------- ------- ------- ------- ------- -------
Net asset value, end of period........ $ 8.07 $ 8.54 $ 8.55 $ 8.97 $ 8.66 $ 9.12
============= ======== ======== ======== ======== ========
Market value, end of period........... $ 7.38 $ 8.00 $ 8.63 $ 9.50 $ 7.75 $ 9.00
TOTAL RETURN, AT MARKET VALUE(2)...... (3.56)% 2.22% .70% 37.18% (3.27)% .47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).......................... $53,409 $56,526 $55,668 $57,208 $54,676 $57,418
Average net assets (in thousands)..... $55,752 $55,877 $56,970 $55,604 $56,175 $57,012
Number of shares outstanding at end of
period (in thousands)............... 6,616 6,616 6,511 6,378 6,310 6,298
Ratios to average net assets:
Net investment income............... 9.40%(3) 9.59% 10.13% 11.06% 10.83% 9.85%(3)
Expenses............................ 1.14%(3) 1.22% 1.32% 1.21% 1.22% 1.34%(3)
Portfolio turnover rate(4)............ 85.1% 112.5% 98.4% 59.9% 95.3% 98.7%
</TABLE>
(1) For the period from November 30, 1988 (commencement of operations) to
October 31, 1989.
(2) Assumes a hypothetical purchase at the current market price 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
a sale at the current market price on the last business day of the period.
(3) Annualized.
(4) 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
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the six months ended April 30, 1994 were
$50,064,710 and $43,214,241, respectively.
See accompanying Notes to Financial Statements.
12
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Oppenheimer Multi-Government Trust
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Multi-Government Trust (the Trust) is registered under the
Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Trust's investment advisor is Oppenheimer
Management Corporation (the Manager). The following is a summary of significant
accounting policies consistently followed by the Trust.
Investment Valuation -- Portfolio securities are valued at 4:00 p.m. (New York
time) on the last day of each week on which day the New York Stock Exchange is
open. 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 debt securities are valued by a portfolio
pricing service approved by the Board of Trustees. Long-term debt securities
which cannot be valued by the approved portfolio pricing service are valued by
averaging the mean between the bid and asked prices obtained from two active
market makers in such securities. Short-term 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. Securities for
which market quotes are not readily available are valued under procedures
established by the Board of Trustees to determine fair value in good faith.
Forward foreign currency contracts are valued at the forward rate on a daily
basis. A call option is valued based upon the last sales 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 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 Trust 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 Trust
may acquire securities in default, and is not obligated to dispose of securities
whose issuers subsequently default. At April 30, 1994, securities with an
aggregate market value of $336,709, representing .59% of the Trust's total
assets, were in default.
Foreign Currency Translation -- The accounting records of the Trust 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 Trust generally enters into forward foreign currency exchange contracts as a
hedge, upon the purchase or sale of a security denominated in a foreign
currency. In addition, the Trust may enter into such contracts as a hedge
against changes in foreign currency exchange rates on portfolio positions. A
forward exchange contract is a commitment to purchase or sell a foreign currency
at a future date, at a negotiated rate. Risks may arise from the potential
inability of the counterparty to meet the terms of the contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar.
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 Trust's results of operations.
Call Options Written -- The Trust may write covered call options. When an option
is written, the Trust receives a premium and becomes
13
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
obligated to sell the underlying security at a fixed price, upon exercise of the
option. In writing an option, the Trust bears the market risk of an unfavorable
change in the price of the security underlying the written option. Exercise of
an option written by the Trust could result in the Trust selling a security at a
price different from the current market value. All securities covering call
options written are held in escrow by the custodian bank.
Repurchase Agreements -- The Trust 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. 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 Trust may be delayed or
limited.
Federal Income Taxes -- The Trust 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 tax provision is required. At April 30, 1994, the Trust had
available for federal income tax purposes an unused capital loss carryover of
approximately $2,769,000, $1,293,000 of which will expire in 1998, $1,042,000 in
1999 and $434,000 in 2001.
Trustees' Fees and Expenses -- The Trust has adopted a nonfunded retirement plan
for the Trust's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. The accumulated liability
for the Trust's projected benefit obligations was $29,540 at April 30, 1994. No
payments have been made under the plan.
Distributions to Shareholders -- The Trust intends to declare and pay dividends
from net investment income every 28 days. Distributions from net realized gains
on investments, if any, will be made at least once each year.
Taxable income and net realized capital gains available for distribution to
shareholders, as determined under the provisions of the Internal Revenue Code,
may differ from amounts determined for financial statement purposes. Differences
result primarily from foreign currency transactions, deferred trustee
compensation and bad debt expense. To the extent that those differences which
are permanent in nature result in overdistributions to shareholders, amounts are
reclassified between undistributed net investment income and accumulated net
realized capital gains, and paid-in capital.
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. 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.
14
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
2. SHARES OF BENEFICIAL INTEREST
The Trust has authorized an unlimited number of $.01 par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1994 October 31, 1993
----------------- ------------------
Shares Amount Shares Amount
------ -------- ------- --------
<S> <C> <C> <C> <C>
Net increase from
dividends
reinvested......... -- -- 104,816 $893,881
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At April 30, 1994, net unrealized depreciation of investments of $2,418,491 was
composed of gross appreciation of $573,393, and gross depreciation of
$2,991,884.
4. CALL OPTION ACTIVITY
Call option activity for the six months ended April 30, 1994 was as follows:
<TABLE>
<CAPTION>
Number Amount
of Options of Premiums
---------- -----------
<S> <C> <C>
Options written................ 96 $ 45,000
Optons closed.................. (96) (45,000)
-- ---------
Options outstanding at April
30, 1994...................... -- --
== =========
</TABLE>
The cost of cancelling options in closing purchase transactions was $750,
resulting in a net short-term gain of $44,250.
5. MANAGEMENT AND ADMINISTRATIVE FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Trust which provides for an annual fee of .65% on
the Trust's net assets.
Mitchell Hutchins Asset Management Inc. serves as the Trust's Administrator. The
Trust pays the Administrator an annual fee of .20% of the Trust's net assets.
The Manager acts as the accounting agent for the Trust at an annual fee of
$18,000, plus out-of-pocket costs and expenses reasonably incurred.
Shareholder Financial Services, Inc. (SFSI), a wholly-owned subsidiary of the
Manager, is the transfer agent and registrar for the Trust. Fees paid to SFSI
are based on the number of accounts and the number of shareholder transactions,
plus out-of-pocket costs and expenses.
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer Multi-Government Trust
6. RESTRICTED SECURITIES
The Trust owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The
securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The Trust intends to invest no more than 10% of
its net assets (determined at the time of purchase) in restricted and
illiquid securities, excluding securities eligible for resale pursuant to
Rule 144A of the Act that are determined to be liquid by the Board of
Trustees or by the Manager under Board-approved guidelines. Restricted
and illiquid securities amount to $735,142, or 1.38% of the Trust's net
assets, at April 30, 1994.
<TABLE>
<CAPTION>
Valuation Per Unit as
Security Acquisition Date Cost Per Unit of April 30, 1994
--------------------------------------------------- ---------------- ------------- ---------------------
<S> <C> <C> <C>
AMR Corp., $3.00 Cum. Cv. Depositary Shares,
Series A(1)....................................... 4/21/94 $ 42.38 $ 44.75
Capital Gaming International, Inc., Units.......... 1/21/94 $113.34 $116.24
Capital Gaming International, Inc., Wts., Exp.
2/99.............................................. 2/4/94-2/18/94 $ -- $ 2.39
Card Establishment Services, Inc., 10% Sr. Sub.
Nts.,10/1/03(1)................................... 10/5/93 $100.00 $ 98.00
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts.,
Series A, 10/1/03(1).............................. 9/23/93 $100.00 $100.50
Eye Care Centers of America, Inc., Units(1)........ 9/28/93 $100.00 $ 98.50
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 4.4456%, 1/1/09........................ 2/23/94-4/21/94 $ 71.42 $ 66.86
Terex Corp., Units(1).............................. 3/23/94-4/5/94 $ 93.38 $ 94.50
Treasure Bay Gaming & Resorts, Inc., Units(1)...... 11/10/93 $100.00 $ 99.50
Tribasa Toll Road Trust, 10.50% Nts., Series
1993-A, 12/1/11(1)................................ 11/8/93 $100.00 $ 88.00
</TABLE>
(1) Transferable under Rule 144A of the Act.
7. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
At April 30, 1994, the Trust had outstanding forward currency exchange
contracts to purchase and sell foreign currencies as follows:
<TABLE>
<CAPTION>
Valuation as of Unrealized
Contracts to Purchase Expiration Date Contract Amount April 30, 1994 Depreciation
----------------------------------------- --------------- --------------- --------------- ------------
<S> <C> <C> <C> <C>
German Deutsche Mark..................... 5/9/94 $ 844,671 $ 844,543 $ (128)
=============== ===============
Contracts to Sell
-------------
German Deutsche Mark..................... 5/9/94 $ 1,633,415 $ 1,689,086 (55,671)
=============== =============== ------------
$(55,799)
============
</TABLE>
16
<PAGE> 17
GENERAL INFORMATION CONCERNING THE TRUST
THE TRUST
Oppenheimer Multi-Government Trust is a closed-end investment company whose
shares trade on the New York Stock Exchange. The Trust seeks to provide high
current income consistent with preservation of capital through investment
primarily in U.S. government securities or foreign government securities. The
Trust employs a flexible investment strategy that can be continually adjusted to
perform in various investment climates. The Trust has a secondary objective of
capital appreciation, which it may pursue by taking advantage of changes in
interest rates. The investment advisor of the Trust is Oppenheimer Management
Corporation.
SHAREHOLDER INFORMATION
Daily market prices for the Trust's shares are published in the New York Stock
Exchange Composite Transaction section of newspapers under the designation
"OppenGvt". The Trust's New York Stock Exchange trading symbol is OGT. Weekly
net asset value (NAV) and market price information about Oppenheimer Multi-
Government Trust is published each Monday in The Wall Street Journal and The New
York Times and each Saturday in Barron's, and other newspapers in a table called
"Closed-End Bond Funds".
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
A Dividend Reinvestment and Cash Purchase Plan is available to Trust
shareholders, which provides automatic reinvestment of dividends and capital
gains distributions in additional Trust shares. The Plan also allows optional
cash investments in Trust shares through the Plan Agent. For a brochure
describing the Plan, call the Plan Agent, Shareholder Financial Services, Inc.,
at 1-800-647-7374. Or contact them in writing at P.O. Box 173673, Denver, CO
80217-3673. The Plan is described in the Trust's Annual Report sent to
shareholders.
If you wish to participate in the Plan and your shares are held in your name,
simply complete and mail the enrollment form in the brochure. If your shares are
held in the name of your brokerage firm, bank or other nominee, you should ask
them whether or how you can participate in the Plan.
17
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<PAGE> 19
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<PAGE> 20
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OPPENHEIMER MULTI-GOVERNMENT TRUST
Officers and Trustees
Leon Levy, Chairman of the Board
of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Thomas P. Reedy, Vice President
Ashwin K. Vasan, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
Investment Advisor
Oppenheimer Management Corporation
Administrator
Mitchell Hutchins Asset Management Inc.
Transfer Agent and Registrar
Shareholder Financial Services, Inc.
Custodian of Portfolio Securities
The Bank of New York
Independent Auditors
KPMG Peat Marwick
Legal Counsel
Gordon Altman Butowsky Weitzen Shalov
& Wein
The financial statements included herein have been
taken from the records of the Trust without examination
by the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Multi-Government Trust. It does not offer
for sale or solicit orders to buy any securities.
Notice is hereby given in accordance with Section 23(c)
of the Investment Company Act of 1940 that periodically
the Trust may purchase its shares of beneficial
interest in the open market at prevailing market
prices.
RS675.0694.R(LOGO) Printed on recycled paper
1994 SEMI-ANNUAL REPORT
- - -------------------------------------------------------------
OPPENHEIMER
MULTI-GOVERNMENT
TRUST
APRIL 30, 1994
[LOGO]
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<PAGE> 21
EDGAR APPENDIX
A pie chart representing the Investment Breakdown as of April 30, 1994 of The
Oppenheimer Multi-Government Trust appears on page 1 of the printed version of
this document.
