<PAGE> 1
REPORT TO SHAREHOLDERS:
Oppenheimer Multi-Government Trust paid an annualized dividend yield of 9.68%
for the 28-day period ended October 31, 1994.(1) During the past twelve months,
the Trust's total return at net asset value was 0.98%.(2) The Trust primarily
seeks high current income consistent with preservation of captial and has a
secondary objective of capital appreciation.
The managers' ability to shift assets strategically among major fixed income
sectors played an important role in the Trust's performance over the last year.
As of October 31, 1994, the Trust's portfolio was allocated as follows:(3)
INVESTMENT BREAKDOWN:
OPPENHEIMER MULTI-GOVERNMENT TRUST
[FIGURE 1]
* U.S. Government Obligations (Agency)/34.9%
* Foreign Government Obligations/36.1%
* U.S. Corporate Bonds & Notes/15.5%
* Foreign Corporate Bonds & Notes/1.7%
* Short-term Securities/4.9%
* Structured Notes/6.9%
Over the past year, the Federal Reserve and central banks worldwide moved
aggressively to raise short-term interest rates to fend off inflation. Your
managers sought to capture rising yields while seeking to limit the portfolio's
price volatility.
As U.S. interest rate began to rise, your managers shortened the maturities of
the bonds in the portfolio, with particular emphasis on reducing exposure to
long-term U.S. government bonds, adding to investments in mortgage-backed
securities issued by agencies or instrumentalities of the U.S. government.
Mortgage-backed securities offer significant yield advantages over Treasuries.
The managers have focused the Trust's holdings of foreign government bonds on
Latin America and other emerging markets. However, as interest rates rose
offshore and the dollar weakened against major currencies, more investments
were centered in Europe. The focus for the higher-yielding corporate bonds in
the portfolio was on those issued by larger industrial companies, notably in
the chemicals, mining, metals and forest products businesses. These companies'
earnings tend to rise in the middle to late stages of an economic expansion.
<PAGE> 2
Looking ahead, the Trust's allocations are subject to change and may, of
course, be adjusted should the economic expansion appear to be ending, but
signs are currently pointing to continued gradual growth -- and the Trust should
be well-positioned to provide attractive returns.
We appreciate the confidence you have placed in Oppenheimer Multi-Government
Trust and we look forward to continuing to help you reach your investment
goals.
Sincerely,
/s/ DONALD W. SPIRO
- -------------------
Donald W. Spiro
President -- Oppenheimer
Multi-Government Trust
November 21, 1994
(1) Dividend yield was calculated by annualizing the October dividend of $0.052
per share and dividing by the 10/31/94 closing price on The New York Stock
Exchange of $7.00 per share.
(2) Based on the change in net asset value per share from 10/31/93 to 10/31/94,
with all dividends reinvested. Your brokerage costs and taxes were not
considered. Past performance does not guarantee future results.
(3) Portfolio allocations are subject to change. Chart is based on total
investments at market value, rather than net assets.
<PAGE> 3
STATEMENT OF INVESTMENTS October 31, 1994
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Face Amount See Note 1
-------------- -----------
<S> <C> <C>
REPURCHASE AGREEMENTS -- 5.0%
Repurchase agreement with First Chicago Capital Markets, 4.75%,
dated 10/31/94, to be repurchased at $2,600,343 on 11/1/94,
collateralized by U.S. Treasury Nts., 4.75%-8.50%,
2/15/95-11/15/01, with a value of $2,654,126 (Cost $2,600,000).... $ 2,600,000 $ 2,600,000
-----------
U.S. GOVERNMENT OBLIGATIONS -- 35.5%
AGENCY: FULL FAITH AND CREDIT -- 22.0%
Government National Mortgage Assn.:
8%, 11/15/20...................................................... 473,458 459,827
8%, 3/15/23....................................................... 431,874 415,282
8%, 12/15/23...................................................... 471,368 453,259
8%, 2/15/24....................................................... 1,440,653 1,384,368
8%, 4/15/24....................................................... 894,595 859,644
8%, 5/15/24....................................................... 1,003,273 964,075
8%, 7/15/24....................................................... 40,516 38,934
8%, 8/1/24........................................................ 1,018,291 978,507
8%, 8/15/24....................................................... 1,045,007 1,004,179
8%, 9/15/24....................................................... 5,200,737 4,997,550
-----------
11,555,625
-----------
AGENCY: GOVERNMENT SPONSORED -- 13.4%
Federal Home Loan Mortgage Corp.:
Certificates of Participation, 6.65%, 4/15/21..................... 1,549,800 1,375,323
Mtg.-Backed Certificates, 11.50%, 1/1/18.......................... 188,571 205,219
Mtg.-Backed Certificates, 13%, 5/1/19............................. 781,766 872,366
Federal National Mortgage Assn.:
Interest-Only Stripped Mtg. Backed Security, Trust 221, Class 2,
7.50%, 5/25/23 (8).............................................. 8,538,169 3,289,864
Interest-Only Stripped Mtg. Backed Security, Trust 240, Class 2,
7%, 9/25/23 (8)................................................. 3,237,275 1,236,740
Interest-Only Stripped Mtg. Backed Security, Trust 257, Class 2,
7%, 2/25/24 (8)................................................. 145,743 56,658
-----------
7,036,170
-----------
TREASURY -- 0.1%
U.S. Treasury Bonds, 12%, 8/15/20................................... 20,000 26,506
-----------
Total U.S. Government Obligations (Cost $18,499,951)................ 18,618,301
-----------
</TABLE>
3
<PAGE> 4
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Face Amount See Note 1
-------------- -----------
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS -- 36.7%
Argentina (Republic of):
Bonds, 8.375%, 12/20/03........................................... $ 1,000,000 $ 812,508
Par Bonds, 4.25%, 3/31/23 (5)..................................... 250,000 116,406
Past Due Interest Bonds, 5%, 3/31/05 (4)(7)....................... 200,000 144,813
Banco Nacional de Comercio Exterior SNC International Finance BV
Gtd. Matador Bonds, 12.65%, 6/21/98 (ESP) (1)..................... 35,000,000 275,876
Brazil (Federal Republic of):
Bonds, Banco do Nordeste, Sr. Unsec. Debs., 9%, 11/12/96.......... 100,000 95,375
Interest Due and Unpaid Bonds, 6.062%, 1/1/01 (4)................. 98,000 80,115
Nts., Banco Estado Minas Gerais:
10%, 1/15/96.................................................... 250,000 242,813
8.25%, Series B, 2/10/00........................................ 500,000 406,250
Par Bonds, 4%, 4/15/24............................................ 1,000,000 403,000
Canada (Government of) Debs., 10.50%, 7/1/00 (CAD) (1).............. 400,000 319,850
Denmark (Kingdom of) Bonds:
9%, 11/15/98 (DKK) (1)............................................ 6,500,000 1,115,859
6%, 12/10/99 (DKK) (1)............................................ 650,000 98,290
Ecuador (Republic of) Bonds, 0%, 12/29/49 (6)(9).................... 500,000 294,375
First Australia National Mortgage Acceptance Corp. Ltd. Bonds,
Series 22, 11.40%, 12/15/01 (AUD) (1)............................. 1,930,600 1,447,257
International Bank for Reconstruction and Development Bonds, 12.50%,
7/25/97 (NZD) (1)................................................. 1,100,000 731,949
International Finance Corp., Sr. Nts., 10.65%, 4/26/99 (ITL) (1).... 300,000,000 191,806
Morocco (Kingdom of) Loan Participation Agreement:
Tranche A, 5.934%, 1/1/09(4) (6).................................. 1,000,000 708,750
Tranche B, 5.938%, 1/1/04 (4) (6)................................. 100,000 75,438
New South Wales Treasury Corp., 7% Gtd. Exch. Bonds,
4/1/04 (AUD) (1).................................................. 2,790,000 1,618,971
New Zealand (Government of) Bonds, 10%, 7/15/97 (NZD) (1)........... 2,390,000 1,510,539
Oesterreich Kontrollbank Sr. Unsec. Unsub. Gtd. Nts.,
10%, 8/10/99 (ITL) (1)............................................ 300,000,000 187,430
Spain (Kingdom of):
Bonds, 11.45%, 8/30/98 (ESP) (1).................................. 177,000,000 1,430,774
Gtd. Bonds, Bonos y Obligacion del Estado, 12.25%,
3/25/00 (ESP) (1)............................................... 116,000,000 960,338
Nts., 9.25%, 12/20/04 (FRF) (1)................................... 250,000 50,539
Treasury Corp. of Victoria Gtd. Nts., 12.50%, 7/15/00 (AUD) (1)..... 790,000 634,958
</TABLE>
4
<PAGE> 5
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Face Amount See Note 1
-------------- -----------
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
United Kingdom Treasury Nts. (Gilt):
12%, 11/20/98 (GBP) (1)........................................... $ 658,000 $ 1,192,299
12.25%, 3/26/99 (GBP) (1)......................................... 625,000 1,147,153
United Mexican States:
Gtd. Petroleos Mexicanos, 7.60%, 6/15/00.......................... 100,000 89,330
Mexico UMS Combined Facility 3, Loan Participation Agreement,
5.25%, 3/20/00 (6).............................................. 100,000 88,000
Myra Old Money Loan Participation Agreement, 4.25%, 3/20/05 (6)... 600,000 490,875
Petacalco Topolobampo Trust, 8.125%:
Sr. Sec. Unsub. Nts., 12/15/03 (6).............................. 200,000 168,000
Sr. Sec. Unsub. Nts., 12/15/03.................................. 350,000 294,000
Treasury Bills:
0%, 1/19/95 (MXP) (1)........................................... 1,415,480 399,363
0%, 4/6/95 (MXP) (1)............................................ 1,091,760 299,220
0%, 5/4/95 (MXP) (1)............................................ 552,760 149,960
Venezuela (Republic of):
Debs., 6.75%, 9/20/95 (6)......................................... 700,000 667,625
Debs., 9%, 5/24/96................................................ 300,000 282,375
-----------
Total Foreign Government Obligations (Cost $19,117,245)............. 19,222,479
-----------
CORPORATE BONDS AND NOTES -- 17.5%
BASIC MATERIALS -- 3.6%
Chemicals -- 0.6%
Malette Inc., 12.25% Sr. Sec. Nts., 7/15/04......................... 100,000 103,000
Rexene Corp., 10% 2nd Priority Nts., 11/15/02 (7)................... 261,000 246,790
-----------
349,790
Metals -- 0.4%
Kaiser Aluminum & Chemical Corp., 9.875% Sr. Nts., 2/15/02.......... 100,000 91,750
Republic Engineered Steels, Inc., 9.875% Fst. Mtg. Nts., 12/15/01... 100,000 92,250
-----------
184,000
Paper and Forest Products -- 2.6%
Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01................... 250,000 260,625
Rainy River Forest Products, 10.75% Sr. Sec. Nts., 10/15/01......... 100,000 100,250
Repap Wisconsin, Inc., 9.25% Fst. Priority Sr. Sec. Nts., 2/1/02.... 200,000 181,000
Riverwood International Corp., 11.25% Sr. Sub. Nts., 6/15/02........ 100,000 104,500
Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00............ 200,000 196,500
Stone Container Corp., 9.875% Sr. Nts., 2/1/01...................... 200,000 188,000
</TABLE>
5
<PAGE> 6
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Face Amount See Note 1
-------------- -----------
<S> <C> <C>
CORPORATE BONDS AND NOTES (CONTINUED)
BASIC MATERIALS (CONTINUED)
Paper and Forest Products (Continued)
Stone Container Corp., 10.75% Fst. Mtg. Nts., 10/1/02............... $ 100,000 $ 99,000
Stone Savannah River Pulp & Paper Corp., 14.125% Sr. Sub. Nts.,
12/15/00.......................................................... 200,000 214,500
-----------
1,344,375
CONSUMER CYCLICALS -- 4.7%
Automotive -- 0.9%
Envirotest Systems Corp.:
9.125% Sr. Nts., 3/15/01.......................................... 100,000 90,750
9.625% Sr. Sub. Nts., 4/1/03...................................... 100,000 89,875
JPS Automotive Products Corp., 11.125% Sr. Nts., 6/15/01............ 200,000 200,000
SPX Corp., 11.75% Sr. Sub. Nts., 6/1/02............................. 100,000 102,500
-----------
483,125
Construction Supplies and Development -- 1.2%
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03............................... 100,000 87,000
Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03..................... 200,000 197,000
USG Corp.:
10.25% Sr. Sec. Nts., 12/15/02.................................... 100,000 102,375
8.75% Debs., 3/1/17............................................... 300,000 261,750
-----------
648,125
Consumer Goods and Services -- 1.2%
Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98... 300,000 202,125
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series B, 10/1/03.... 200,000 187,000
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05............ 250,000 224,375
-----------
613,500
Entertainment -- 0.4%
Capital Gaming International, Inc., 11.50% Sr. Sec. Nts., Series B,
2/1/01............................................................ 150,000 100,500
Empress River Casino Finance Corp., 10.75% Gtd. Sr. Nts., 4/1/02.... 100,000 87,000
-----------
187,500
Retail -- 1.0%
Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts., Series B,
9/1/03............................................................ 200,000 191,000
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03............ 200,000 161,000
Finlay Enterprises, Inc., 0%/12% Sr. Disc. Debs., 5/1/05 (3)........ 100,000 58,250
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03................. 100,000 95,000
Pay 'N Pak Stores, Inc., 13.50% Sr. Sub. Debs., 6/1/98 (2).......... 300,000 3,000
-----------
508,250
</TABLE>
6
<PAGE> 7
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Face Amount See Note 1
-------------- -----------
<S> <C> <C>
CORPORATE BONDS AND NOTES (CONTINUED)
CONSUMER NON-CYCLICALS -- 1.8%
Food -- 0.3%
Royal Crown Corp., 9.75% Sr. Sec. Nts., 8/1/00...................... $ 200,000 $ 184,000
-----------
Food and Drug Distribution -- 0.9%
Di Giorgio Corp., 12% Sr. Nts., 2/15/03............................. 200,000 201,000
Grand Union Co., 12.25% Sr. Sub. Nts., 7/15/02...................... 250,000 176,250
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99........ 100,000 85,000
-----------
462,250
Healthcare -- 0.6%
American Medical International, Inc., 9.50% Sr. Sub. Nts., Series B,
4/15/06........................................................... 200,000 202,000
Healthtrust, Inc. - The Hospital Co., 10.75% Sub. Nts., 5/1/02...... 100,000 108,750
-----------
310,750
ENERGY -- 0.9%
Aftermarket Technology Corp., 12% Sr. Sub. Nts., 8/1/04 (5)(6)...... 150,000 152,250
Mesa Capital Corp., 0%/12.75% Sec. Disc. Nts., 6/30/98 (3).......... 150,000 129,000
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02............................. 200,000 207,000
-----------
488,250
FINANCIAL -- 2.6%
American Life Holding Co., 11.25% Sr. Sub. Nts., 9/15/04............ 200,000 201,000
Bayerische Landesanstalt, Sr. Unsec. Unsub. Nts., 10.625%,
5/12/00 (ITL) (1)(10)............................................. 150,000,000 94,323
Card Establishment Services, Inc., 10% Sr. Sub. Nts., Series B,
10/1/03........................................................... 200,000 186,000
General Electric Capital Corp., 10.375% Unsec. Unsub. Nts.,
6/14/00 (ITL) (1)................................................. 155,000,000 96,462
P.T. Polysindo Eka Perkasa, Promissory Note, 0%, 10/23/96 (IDR)
(1)............................................................... 1,000,000,000 325,187
Tiphook Financial Corp., 7.125% Gtd. Nts., 5/1/98................... 200,000 139,500
Toyota Motor Credit Corp., Unsec. Unsub. Nts., 8.375%,
5/17/99 (ITL) (1)................................................. 150,000,000 88,002
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (6).... 250,000 219,375
-----------
1,349,849
INDUSTRIAL -- 1.7%
Containers -- 0.4%
Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04........... 200,000 195,000
-----------
General Industrial -- 1.0%
American Standard, Inc., 9.875% Sr. Sub. Nts., 6/1/01............... 200,000 198,500
</TABLE>
7
<PAGE> 8
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Face Amount See Note 1
-------------- -----------
<S> <C> <C>
CORPORATE BONDS AND NOTES (CONTINUED)
INDUSTRIAL (CONTINUED)
Imo Industries, Inc., 12.25% Sr. Sub. Debs., 8/15/97................ $ 200,000 $ 202,250
Moran Energy, Inc., 8.75% Cv. Sub. Debs., 1/15/08................... 200,000 135,750
-----------
536,500
Transportation -- 0.3%
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc.
Nts., Series B, 12/15/03 (3)...................................... 300,000 164,250
-----------
TECHNOLOGY -- 2.2%
Aerospace/Defense -- 0.1%
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98....................... 100,000 82,500
-----------
Cable Television -- 0.2%
International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts.,
10/15/03 (3)...................................................... 200,000 110,500
-----------
Communications -- 1.5%
Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (3)........... 300,000 202,500
GS Technologies Operating Co., Inc., 12% Sr. Gtd. Nts., 9/1/04...... 100,000 102,250
Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr.
Sub. Disc. Nts., 10/1/00 (3)...................................... 250,000 181,250
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (3)..... 250,000 148,750
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts.,
8/1/03 (3)........................................................ 200,000 135,000
-----------
769,750
Technology -- 0.4%
Bell & Howell Holdings Co., 0%/10.75% Sr. Disc. Debs., Series B,
3/1/05 (3)........................................................ 400,000 202,000
-----------
Total Corporate Bonds and Notes (Cost $9,688,560)................... 9,174,264
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
--------------
<S> <C> <C>
PREFERRED STOCKS -- 0.0%
Finlay Enterprises, Inc., Cl. A (Cost $5,365)....................... 500 7,500
-----------
</TABLE>
8
<PAGE> 9
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Market
Value
Units See Note 1
-------------- -----------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES -- 0.0%
Capital Gaming International, Inc. Wts., Exp. 2/99.................. 3,538 $ 10,611
Eye Care Centers of America, Inc. Wts., Exp. 10/03.................. 200 1,000
Terex Corp. Rts., Exp. 7/96 (6)..................................... 30 39
-----------
Total Rights, Warrants and Certificates (Cost $18,162).............. 11,650
-----------
</TABLE>
<TABLE>
<CAPTION>
Date/Price Face Amount
----------------- --------------
<S> <C> <C> <C>
PUT OPTIONS PURCHASED -- 0.0%
European OTC Deutsche Mark /U.S. Dollar Put..... Nov. 2/1.60DEM $ 1,343,058 89
European OTC Deutsche Mark /U.S. Dollar Put..... Nov. 8/1.60DEM 2,686,116 178
-----------
Total Put Options Purchased (Cost $58,788)...... 267
-----------
STRUCTURED INSTRUMENTS -- 6.9%
Argentina Local Market Securities Trust, Series 1994-II, 11.30%,
4/1/00 (6)......................................................... 1,913,043 1,910,652
Bayerische Landesbank, N.Y. Branch, Mexican Peso Linked Confidence
Nts., Girozentrale Branch, 35.50%, 12/30/94 (6).................... 250,000 245,000
Citibank:
10.50% CD, 7/14/95................................................. 250,000 250,046
16% CD, 12/12/94 (CLP) (1)(10)..................................... 165,660,019 403,176
16% CD, 8/17/95 (CLP) (1)(10)...................................... 41,501,570 101,005
16.75% CD, 12/19/94 (CLP) (1)(10).................................. 211,826,664 515,535
Morgan Guaranty Trust Co. of New York (Singapore Branch) CD, 12.15%,
2/3/95............................................................. 528,312,500 224,905
-----------
Total Structured Instruments (Cost
$3,655,557)................................... 3,650,319
-----------
Total Investments, at Value (Cost
$53,643,628).................................. 101.6% 53,284,780
Liabilities in Excess of Other Assets........... (1.6) (845,462)
-------------- -----------
Net Assets...................................... 100.0% $52,439,318
============== ===========
</TABLE>
(1) Face amount is reported in foreign currency. Currency abbreviations are as
follows:
<TABLE>
<S> <C> <C>
ARA -- Argentine Austral
AUD -- Australian Dollar
CAD -- Canadian Dollar
CLP -- Chilean Peso
DEM -- German Deutsche Mark
DKK -- Danish Krone
ESP -- Spanish Peseta
FRF -- French Franc
IDR -- Indonesian Rupiah
ITL -- Italian Lira
MXP -- Mexican Peso
NZD -- New Zealand Dollar
</TABLE>
9
<PAGE> 10
STATEMENT OF INVESTMENTS October 31, 1994 (Continued)
Oppenheimer Multi-Government Trust
(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) Represents the current interest rate for an increasing rate security.
(6) Restricted or illiquid security. See Note 6 of Notes to Financial
Statements.
(7) Interest or dividend is paid in kind.
(8) Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities
typically decline in price as interest rates decline. Most other
fixed-income securities increase in price when interest rates decline. The
principal amount of the underlying pool represents the notional amount on
which the current interest is calculated. The price of these securities is
typically more sensitive to changes in prepayment rates than traditional
mortgage-backed securities (for example, GNMA pass-throughs).
(9) When-issued security to be delivered and settled after October 31, 1994.
(10) Indexed instrument for which the principal amount due at maturity is
affected by the relative value of a foreign currency.
See accompanying Notes to Financial Statements.
10
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES October 31, 1994
Oppenheimer Multi-Government Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $53,643,628) -- see accompanying statement................... $53,284,780
Receivables:
Interest............................................................................... 1,136,933
Investments sold....................................................................... 345,972
Other.................................................................................... 24,069
-----------
Total assets......................................................................... 54,791,754
-----------
LIABILITIES:
Bank overdraft........................................................................... 37,471
Payables and other liabilities:
Investments purchased.................................................................. 2,130,583
Dividends.............................................................................. 65,490
Management and administrative fees -- Note 5........................................... 16,375
Other.................................................................................. 102,517
-----------
Total liabilities.................................................................... 2,352,436
-----------
NET ASSETS............................................................................... $52,439,318
===========
COMPOSITION OF NET ASSETS:
Par value of shares of beneficial interest............................................... $ 66,155
Additional paid-in capital............................................................... 59,784,052
Overdistributed net investment income.................................................... (33,177)
Accumulated net realized loss from investment, written option and foreign currency
transactions........................................................................... (7,029,770)
Net unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies...................................................... (347,942)
-----------
NET ASSETS -- Applicable to 6,615,505 shares of beneficial interest outstanding.......... $52,439,318
===========
NET ASSET VALUE PER SHARE................................................................ $7.93
=====
</TABLE>
See accompanying Notes to Financial Statements.
11
<PAGE> 12
STATEMENT OF OPERATIONS For the Year Ended October 31, 1994
Oppenheimer Multi-Government Trust
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest (net of withholding taxes of $37,975)........................................... $ 5,502,463
Dividends................................................................................ 11,460
-----------
Total income.................................................................... 5,513,923
-----------
EXPENSES:
Management fees -- Note 5................................................................ 353,510
Administrative fees -- Note 5............................................................ 108,772
Shareholder reports...................................................................... 92,185
Transfer agent and accounting services fees -- Note 5.................................... 40,471
Legal and auditing fees.................................................................. 20,439
Registration and filing fees............................................................. 18,401
Custodian fees and expenses.............................................................. 15,983
Trustees' fees and expenses.............................................................. 10,859
Other.................................................................................... 15,760
-----------
Total expenses.................................................................. 676,380
-----------
NET INVESTMENT INCOME.................................................................... 4,837,543
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized loss from:
Investments............................................................................ (4,145,836)
Closing of option contracts written -- Note 4.......................................... (21,563)
Foreign currency transactions.......................................................... (323,484)
-----------
Net realized loss............................................................... (4,490,883)
-----------
Net change in unrealized appreciation or depreciation on:
Investments and options written........................................................ (1,149,772)
Translation of assets and liabilities denominated in foreign currencies................ 1,287,340
-----------
Net change...................................................................... 137,568
-----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY
TRANSACTIONS........................................................................... (4,353,315)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 484,228
===========
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE> 13
STATEMENTS OF CHANGES IN NET ASSETS
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------
1994 1993
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income....................................................... $ 4,837,543 $ 5,356,694
Net realized loss on investments, options written and foreign currency
transactions.............................................................. (4,490,883) (871,780)
Net change in unrealized appreciation or depreciation on investments,
options written and translation of assets and liabilities denominated in
foreign currencies........................................................ 137,568 935,797
----------- -----------
Net increase in net assets resulting from operations.................... 484,228 5,420,711
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income ($.688 and $.751 per share,
respectively)............................................................. (4,554,861) (4,929,126)
Dividends in excess of net investment income ($.003 per share).............. (16,464) --
Tax return of capital distribution ($.08 per share)......................... -- (527,213)
BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued to shareholders in reinvestment of dividends --
Note 2.................................................................... -- 893,881
----------- -----------
Total increase (decrease) in net assets................................. (4,087,097) 858,253
NET ASSETS:
Beginning of year........................................................... 56,526,415 55,668,162
----------- -----------
End of year (including overdistributed net investment income of $(33,177)
and $(27,770), respectively).............................................. $52,439,318 $56,526,415
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
13
<PAGE> 14
FINANCIAL HIGHLIGHTS
Oppenheimer Multi-Government Trust
<TABLE>
<CAPTION>
Year Ended October 31,
----------------------------------------------------------------
1994 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 (loss) from investment operations:
Net investment income.................. .69 .82 .89 .97 .96 .82
Net realized and unrealized gain (loss)
on investments, options written and
foreign currency transactions........ (.61) -- (.39) .33 (.43) (.09)
------- ------- ------- ------- ------- -------
Total income from investment
operations......................... .08 .82 .50 1.30 .53 .73
------- ------- ------- ------- ------- -------
Dividends and distributions to
shareholders:
Dividends from net investment income... (.69) (.75) (.92) (.99) (.94) (.80)
Dividends in excess of net investment
income............................... --(2) -- -- -- -- --
Distributions from net realized gain on
investments, options written and
foreign currency transactions........ -- -- -- -- (.05) (.04)
Tax return of capital distribution..... -- (.08) -- -- -- --
------- ------- ------- ------- ------- -------
Total dividends and distributions to
shareholders....................... (.69) (.83) (.92) (.99) (.99) (.84)
Offering costs........................... -- -- -- -- -- (.07)
------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 7.93 $ 8.54 $ 8.55 $ 8.97 $ 8.66 $ 9.12
======= ======= ======= ======= ======= =======
Market value, end of period.............. $ 7.00 $ 8.00 $ 8.63 $ 9.50 $ 7.75 $ 9.00
TOTAL RETURN, AT MARKET VALUE(3)......... (4.84)% 2.22% .70% 37.18% (3.27)% .47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)............................. $52,439 $56,526 $55,668 $57,208 $54,676 $57,418
Average net assets (in thousands)........ $54,380 $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.................. 8.90% 9.59% 10.13% 11.06% 10.83% 9.85%(4)
Expenses............................... 1.24% 1.22% 1.32% 1.21% 1.22% 1.34%(4)
Portfolio turnover rate(5)............... 315.5% 112.5% 98.4% 59.9% 95.3% 98.7%
</TABLE>
(1) For the period from November 23, 1988 (commencement of operations) to
October 31, 1989.
(2) Less than $.004 per share.
(3) 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.
Total return does not reflect sales charges or brokerage commissions.
(4) Annualized.
(5) 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 year ended October 31, 1994 were $164,049,536
and $161,034,684, respectively.
See accompanying Notes to Financial Statements.
14
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
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
using dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or under consistently applied procedures established by the Board of
Trustees to determine fair value in good faith. 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. Forward foreign currency contracts are valued at the closing price on
the London foreign exchange market on a daily basis. Options are valued based
upon the last sale 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 October 31, 1994, securities with an
aggregate market value of $3,000, representing .01% 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.
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Continued)
Oppenheimer Multi-Government Trust
Call Options Written -- The Trust may write covered call options. When an option
is written, the Trust receives a premium and becomes 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 October 31, 1994, the Trust had
available for federal income tax purposes an unused capital loss carryover of
approximately $6,966,000, $1,293,000 of which will expire in 1998, $1,042,000 in
1999, $435,000 in 2001, and $4,196,000 in 2002.
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 $34,946 at October 31, 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.
Change in Accounting Classification of Distributions to
Shareholders -- Effective November 1, 1992, the Trust adopted Statement of
Position 93-2: Determination, Disclosure, and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. As a result, the Trust changed the classification of distributions to
shareholders to better disclose the differences between financial statement
amounts and distributions determined in accordance with income tax regulations.
During the year ended October 31, 1994, in accordance with Statement of Position
93-2, undistributed net investment income was decreased by $271,625, paid-in
capital was decreased by $16,464 and undistributed capital loss was decreased by
$288,089.
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. Dividends in kind are recognized as income
on the ex-dividend date, at the current market value of the underlying security.
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.
16
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (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>
Year Ended Year Ended
October 31, 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 October 31, 1994, net unrealized depreciation on investments and options
written of $358,848 was composed of gross appreciation of $905,883, and gross
depreciation of $1,264,731.
4. CALL OPTION ACTIVITY
Call option activity for the year ended October 31, 1994 was as follows:
<TABLE>
<CAPTION>
Number Amount
of Options of Premiums
---------- -----------
<S> <C> <C>
Options outstanding at October
31, 1993........................ -- $ --
Options written.................. 3,397,955 88,075
Options closed................... (3,397,955) (88,075)
---------- ----------
Options outstanding at October
31, 1994........................ -- --
========== ==========
</TABLE>
The cost of cancelling options in closing purchase transactions was $109,638,
resulting in a net short-term loss of $21,563.
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 average annual 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 average annual
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.
17
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (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, excluding securities eligible for resale
pursuant to Rule 144A of the Act amount to $1,608,063, or 3.1% of the
Trust's net assets, at October 31, 1994. Illiquid and/or restricted
securities, including those restricted securities that are transferable
under Rule 144A of the Act are listed below.
<TABLE>
<CAPTION>
Valuation
Per Unit
as
of
Cost October
Per 31,
Security Acquisition Date Unit 1994
----------------------------------------------------- ---------------- ------- -------
<S> <C> <C> <C>
Aftermarket Technology Corp., 12% Sr. Sub. Nts.,
8/1/04(1)........................................... 7/22/94 $100.33 $101.50
Argentina Local Market Securities Trust, Series
1994-II, 11.30%, 4/1/00(1).......................... 8/24/94 $100.00 $ 99.88
Bayerische Landesbank, N.Y. Branch, Mexican Peso
Linked Confidence Nts., Girozentrale Branch, 35.50%,
12/30/94............................................ 9/26/94 $100.00 $ 98.00
Ecuador (Republic of) Bonds, 0%, 12/29/49(1)......... 10/7/94 $ 60.50 $ 58.88
Morocco (Kingdom of) Loan Participation Agreement:
Tranche A, 5.934%, 1/1/09........................... 9/15/94 $ 72.69 $ 70.88
Tranche B, 5.938%, 1/1/04........................... 5/25/94 $ 80.00 $ 75.44
Terex Corp. Rts., Exp. 7/96(1)....................... 6/3/94 $ 1.49 $ 1.25
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A,
12/1/11(1).......................................... 11/8/93 $100.00 $ 87.75
United Mexican States:
Mexico UMS Combined Facility 3, Loan Participation
Agreement, 5.25%, 3/20/00 ........................ 10/25/94 $ 89.00 $ 88.00
Myra Old Money Loan Participation Agreement, 4.25%,
3/20/05........................................... 10/12/94 $ 82.88 $ 81.81
Petacalco Topolobampo Trust, 8.125% Sr. Sec. Unsub.
Nts., 12/15/03(1)................................. 8/22/94 $ 88.85 $ 84.00
Venezuela (Republic of) Debs., 6.75%, 9/20/95(1)..... 4/6/94-5/19/94 $ 94.86 $ 95.38
</TABLE>
(1) Transferable under Rule 144A of the Act.
18
<PAGE> 19
INDEPENDENT AUDITORS' REPORT
Oppenheimer Multi-Government Trust
The Board of Trustees and Shareholders of
Oppenheimer Multi-Government Trust:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Multi-Government Trust as of October 31, 1994, and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the years in the five-year period then
ended and the period from November 23, 1988 (commencement of operations) to
October 31, 1989. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1994, by correspondence with the custodian and brokers; and where
confirmations were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Oppenheimer Multi-Government Trust as of October 31, 1994, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended and the period from
November 23, 1988 (commencement of operations) to October 31, 1989, in
conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
November 21, 1994
19
<PAGE> 20
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
Oppenheimer Multi-Government Trust
In early 1995, shareholders will receive information regarding all dividends and
distributions paid to them by the Trust during calendar year 1994. Regulations
of the U.S. Treasury Department require the Trust to report this information to
the Internal Revenue Service.
None of the dividends paid by the Trust during the fiscal year ended October 31,
1994 are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Trust to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
20
<PAGE> 21
GENERAL INFORMATION CONCERNING THE TRUST
Oppenheimer Multi-Government Trust (the Trust) is a closed-end diversified
management investment company with a primary investment objective of seeking
high current income consistent with preservation of capital. The Trust's
secondary investment objective is capital appreciation. In seeking its
objectives, as a matter of fundamental policy, the Trust will invest at least
65% of its total assets in debt instruments issued or guaranteed by the U.S.
Government, its agencies or instrumentalities or by foreign governments, their
political subdivisions, agencies or instrumentalities, including supranational
entities.
The Trust may also invest in certain other securities, including fixed-income
securities of domestic and foreign corporations and participation interests, and
may invest in a number of different kinds of "derivative investments." The Trust
may engage in certain special investment techniques, including repurchase
transactions, when-issued and delayed delivery transactions and hedging. The
investment advisor to the Trust is Oppenheimer Management Corporation (the
Manager).
The Portfolio Managers of the Trust are Thomas Reedy, David Rosenberg and Ashwin
Vasan, who also serve as Vice Presidents of the Trust and of the Manager, and
are officers of certain mutual funds managed by the Manager
("OppenheimerFunds"). Messrs. Reedy, Rosenberg and Vasan have been the persons
principally responsible for the day-to-day management of the Trust's portfolio
since August 1993, June 1994 and August 1993, respectively. During the past five
years, Mr. Reedy served as a securities analyst for the Manager, and, prior to
joining the Manager, Mr. Rosenberg served as an officer and portfolio manager
for Delaware Investment Advisors and one of its mutual funds and Mr. Vasan
served as a securities analyst for Citibank, N.A.
Dividend Reinvestment and Cash Purchase Plan -- Pursuant to the Trust's Dividend
Reinvestment and Cash Purchase Plan (the Plan), as to shares of the Trust
(Shares) not registered in nominee name, all dividends and capital gains
distributions (Distributions) declared by the Trust will be automatically
reinvested in additional full and fractional Shares unless a shareholder elects
to receive cash. If Shares are registered in nominee name, the shareholder
should consult the nominee if the shareholder desires to participate in the
Plan. Shareholders that participate in the Plan (Participants) may, at their
option, make additional cash investments in Shares, semi-annually in amounts of
at least $100, through payment to Shareholder Financial Services, Inc., the
agent for the Plan (the Agent), accompanied by a service fee of $0.75.
Depending upon the circumstances hereinafter described, Plan Shares will be
acquired by the Agent for the Participant's account through receipt of newly
issued Shares or the purchase of outstanding Shares on the open market. If the
market price of Shares on the relevant date (normally the payment date) equals
or exceeds their net asset value, the Agent will ask the Trust for payment of
the Distribution in additional Shares at the greater of the Trust's net asset
value determined as of the date of purchase or 95% of the then-current market
price. If the market price is lower than net asset value, the Distribution will
be paid in cash, which the Agent will use to buy Shares on The New York Stock
Exchange (the NYSE), or otherwise on the open market to the extent available. If
the market price exceeds the net asset value before the Agent has completed its
purchases, the average purchase price per Share paid by the Agent may exceed the
net asset value, resulting in fewer Shares being acquired
21
<PAGE> 22
than if the Distribution had been paid in Shares issued by the Trust.
Participants may elect to withdraw from the Plan at any time and thereby receive
cash in lieu of Shares by sending appropriate written instructions to the Agent.
Elections received by the Agent will be effective only if received more than ten
days prior to the record date for any Distribution; otherwise, such termination
will be effective shortly after the investment of such Distribution with respect
to any subsequent Distribution. Upon withdrawal from or termination of the Plan,
all Shares acquired under the Plan will remain in the Participant's account
unless otherwise requested. For full Shares, the Participant may either: (1)
receive without charge a share certificate for such Shares; or (2) request the
Agent (after receipt by the Agent of signature guaranteed instructions by all
registered owners) to sell the Shares acquired under the Plan and remit the
proceeds less any brokerage commissions and a $2.50 service fee. Fractional
Shares may either remain in the Participant's account or be reduced to cash by
the Agent at the current market price with the proceeds remitted to the
Participant.
Shareholders who have previously withdrawn from the Plan may rejoin at any time
by sending written instructions signed by all registered owners to the Agent.
There is no direct charge for participation in the Plan; all fees of the Agent
are paid by the Trust. There are no brokerage charges for Shares issued directly
by the Trust. However, each Participant will pay a pro rata share of brokerage
commissions incurred with respect to open market purchases of Shares to be
issued under the Plan. Participants will receive tax information annually for
their personal records and to assist in federal income tax return preparation.
The automatic reinvestment of Distributions does not relieve Participants of any
income tax that may be payable to Distributions.
The Plan may be terminated or amended at any time upon 30 days' prior written
notice to Participants which, with respect to a Plan termination, must precede
the record date of any Distribution by the Trust. Additional information
concerning the Plan may be obtained by shareholders holding Shares registered
directly in their names by writing the Agent, Shareholder Financial Services,
Inc., P.O. Box 173673, Denver, CO 80217-3673 or by calling 1-800-647-7374.
Shareholders holding Shares in nominee name should contact their brokerage firm
or other nominee for more information.
Shareholder Information -- The Shares are traded on the NYSE. 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 NYSE trading symbol is OGT. Weekly net asset value (NAV) and market
price information about the 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."
22
<PAGE> 23
(This Page Intentionally Left Blank)
<PAGE> 24
OPPENHEIMER MULTI-GOVERNMENT TRUST
Officers and Trustees
Leon Levy, Chairman of the Board
of Trustees
Leo Cherne, 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
David Rosenberg, 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 LLP
Legal Counsel
Gordon Altman Butowsky Weitzen Shalov
& Wein
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.
RA675.1294.R(LOGO) Printed on recycled paper
1994 ANNUAL REPORT
- -------------------------------------------------------------
OPPENHEIMER
MULTI-GOVERNMENT
TRUST
OCTOBER 31, 1994
[LOGO] OppenheimerFunds
