<PAGE>
Oppenheimer Strategic Income Fund
Semi-Annual Report March 31, 1994
Oppenheimer Funds.
"We're looking for high income
from our investments, but
we know how quickly market
conditions change.
"That's why we chose this
Fund--it adapts as the
economy changes."
<PAGE>
Fund Facts
Six Facts Every Shareholder Should Know About
Oppenheimer Strategic Income Fund
1 The Fund's objective is to seek a high level of current income,
principally by investing in bonds.
2 Standardized yield for Class A shares was 7.13% for the 30-day period
ended 3/31/94. For Class B shares, that figure was 6.67%.(1)
3 The Fund's total returns at net asset value for Class A shares for the
6- and 12-month periods ended 3/31/94, were 1.01% and 8.49%,
respectively. For Class B shares, total returns at net asset value were
0.41% and 7.59%, respectively.(2)
4 The Fund's managers have the ability to move assets quickly and
decisively among a broad variety of investments and global financial
markets to pursue high investment returns while managing investment
risk.
5 Average annual total returns for Class A shares for the 1-year period
ended 3/31/94 and since inception of the Fund on 10/16/89 were
3.34% and 10.89%, respectively. For Class B shares average annual total
returns for the 1-year period ended 3/31/94 and since inception of the
Class on 11/30/92 were 2.59% and 8.38%, respectively.(3)
6 "The Fund's diversified investment strategy is well-suited to the
current economic environment, as interest rates have risen in the
United States, but are expected to fall in Europe. Given the
possibility of further increases in U.S. rates, we are emphasizing
shorter-term investments in U.S. government securities. In Europe, we
are emphasizing longer-term, higher-yielding investments, which should
increase in value as rates fall. And we believe that the
higher-yielding corporate bond sector will perform well as
the U.S. economic recovery helps companies increase earnings and
strengthen credit quality."
Portfolio Managers David Negri and Art Steinmetz, March 31, 1994
In this report:
Answers to three
questions you should ask your Fund's managers.
How has the Fund responded to the
recent rise in U.S. interest rates?
Where can the
Fund seek investment opportunities given the recent volatility in U.S.
government securities?
Are corporate bonds a good investment
in today's economic environment?
Get the facts about bonds and bond mutual funds. Call 1-800-525-7048 to receive
your free copy of OppenheimerFunds Facts About Bond Funds' brochure.
(1). Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 3/31/94, divided by the
maximum offering price at the end of the period, compounded semi-annually and
then annualized. Falling net asset values will tend to artificially raise
yields.
(2). Based on the change in net asset value per share from 9/30/93 and 3/31/93
to 3/31/94, respectively, without considering sales charges.
(3). Average annual total returns are based on a hypothetical investment held
until 3/31/94, after deducting the maximum initial sales charge of 4.75% for
Class A shares and the contingent deferred sales charge of 5% (1 year) and 4%
(since inception) for Class B shares.
(4). Source: Morningstar, Inc., an independent monitor of mutual funds, 3/31/94.
Morningstar ranks funds by a quantitative system that uses investment
performance and risk assessment factors and adjusts returns for fees and sales
loads. 1 star is the lowest ranking and 5 stars is the highest. Of the 2,253
funds evaluated by Morningstar for the period ended 3/31/94, 576 funds received
the 4-star ranking (above average) and 195 received a 5-star ranking (superior).
Risk assessment reflects Fund performance relative to 3-month Treasury bill
returns.
(5). The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
<PAGE>
Report to Shareholders
Oppenheimer Strategic Income Fund continued to provide shareholders competitive
yields during the six months ended March 31, 1994. Standardized yield for the
30 days ended March 31, 1994, was 7.13% for Class A shares and 6.67% for
Class B shares.(6) This performance helped your Fund earn a **** ranking from
Morningstar, Inc.(7)
In seeking high current income for shareholders, your Fund's managers have the
flexibility to shift assets strategically among three sectors: U.S. government
securities; higher-yielding, lower-rated corporate bonds; and foreign fixed
income securities. Because these sectors historically have reacted differently
to economic events, declines in one market may be offset by stronger
performance in another.
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 fall when interest rates rise,
prices of U.S. government securities have correspondingly declined.
Your Fund's managers had already positioned the Fund for a possible interest
rate increase and reduced the Fund's exposure to long-term U.S. government
bonds from a peak of roughly 25% of the portfolio to under 10% when U.S.
interest rates began to rise. This helped to reduce the impact of rising rates
on the securities in the Fund's portfolio. We do not plan to add to these
positions as long as there are more compelling yield opportunities elsewhere.
For example, in the European markets, 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 are adding to the Fund's position in
European securities. We are also maintaining our positions in select Latin
American markets, which offer attractive investment opportunities.
In addition, we are maintaining our sizable position in corporate bonds, which
we believe will outperform U.S. government securities as the U.S. economic
recovery continues and corporate earnings increase.9 In particular, we are
focusing on industries that do well in the later stages of a recovery, such as
transportation, forest products, metals and mining, and chemicals.
Thank you for your trust in Oppenheimer Strategic Income Fund.
We look forward to helping you seek your financial goals in the years ahead.
use style sheets
The Fund's Portfolio Allocation(8)
(as of March 31, 1994)
Lower-rated, 36.4%
higher-yielding
corporate bonds
Foreign fixed income 32.1%
securities
U.S. government 25.9%
securities
Mortgage-backed 4.6%
securities
Money market 1.0%
instruments
"The Fund earned **** from Morningstar, Inc."
James C. Swain,Chairman /s/Jon S. Fossel, President
Oppenheimer Strategic Funds Trust Oppenheimer Strategic Funds Trust
April 25, 1994
(6). See footnote 1, page 2.
(7). See footnote 4, page 2.
(8). See footnote 5, page 2.
(9). Investors should be aware that the lower-rated bonds in which the Fund
invests may be subject to greater market fluctuation and risks of loss of
income and principal and have less liquidity than higher-rated fixed income
securities. In addition, the risks of investing in foreign securities, such as
currency exchange fluctuation, political developments and difficulties in
trading in foreign markets, can increase the possibility of share price
fluctuation.
3 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Investments March 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements--1.0%
- - ----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 3.55%, dated
3/31/94, to be repurchased at $45,117,789 on 4/4/94, collateralized by U.S.
Treasury Nts., 4.125%--9.50%, 5/15/94--10/31/96, with a value of $28,831,512
and U.S. Treasury Bills, 0%, 5/19/94, with a value of $17,198,907
(Cost $45,100,000) $45,100,000 $45,100,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Short-Term Government Obligations--0.1%
- - ----------------------------------------------------------------------------------------------------------------------------------
United Mexican States Treasury Bills, 0%, 4/7/94 (Cost $5,113,239) 15,913,130(1) 4,721,231
- - ----------------------------------------------------------------------------------------------------------------------------------
Long-Term Government Obligations--51.2%
- - ----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas:
Series I, 3.1875%, 4/1/01(4)(6) 56,152,825 38,591,478
Series I, 4.25%, 4/1/01(4)(6) 66,649,735 37,597,582
4.60%, 4/1/07(4)(6) 4,987,200 2,585,543
Bonds, Bonos de Credito, Series III, 12%, 9/26/94 8,028,400(1) 13,633,137
Bonds, Bonos del Tesoro, Series X, 3.375%, 4/1/00(4) 45,729,067 38,428,284
New Money Bonds, 5%, 10/25/99(4) 2,879,070 2,663,140
Par Bonds, 4%, 3/31/23(7) 113,362,280 70,878,339
Past Due Interest Bonds, 4.1875%, 3/31/05(4)(6) 127,500,000 89,728,125
- - ----------------------------------------------------------------------------------------------------------------------------------
Bariven SA Sr. Nts., Gtd. by Petroleos de Venzuela, 10.75%, 7/8/97 2,200,000 1,377,081
- - ----------------------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of):
Bonds, Banco do Brasil SA, 10.50%, 4/14/98 5,000,000 5,221,875
Bonds, Banco Nacional de Desenvolvimento Economico e Social:
9.25%, 5/14/95(5) 1,900,000 1,900,000
10.375%, 4/27/98(5) 10,000,000 10,200,000
CD, Banco Nacion de Desolvimiento, 9.25%, 5/14/95(5) 19,940,000 20,089,550
Interest Due and Unpaid Bonds, 8.75%, 1/1/01(4) 50,886,000 35,811,023
Nts., Banco Estado Minas Gerais, 10%, 1/15/96 8,690,000 8,592,238
- - ----------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989--1990 Integrated Loan Facility Bonds:
4.188%, 7/1/01(4)(6) 3,000,000 2,711,832
4.315%, 7/15/01(4)(6) 13,131,048 11,795,687
4.44%, 10/26/03(4)(6) 5,993,082 5,255,496
4.50%, 10/26/03(4)(6) 2,174,620 1,906,598
- - ----------------------------------------------------------------------------------------------------------------------------------
European Investment Bank:
12.75% Debs., 2/15/00 17,300,000,000(1) 12,664,116
12.20% Sr. Unsub. Nts., 2/18/03 18,500,000,000(1) 13,692,067
- - ----------------------------------------------------------------------------------------------------------------------------------
First Australia National Mortgage Acceptance Corp. Ltd. Bonds,
Series 17, 15%, 7/15/02 3,740,000(1) 3,075,616
- - ----------------------------------------------------------------------------------------------------------------------------------
Indonesia (Republic of ) CD, Bank Negara, 0%, 4/24/95 56,500,000,000(1) 22,406,738
- - ----------------------------------------------------------------------------------------------------------------------------------
International Bank for Reconstruction and Development Bonds,
12.50%, 7/25/97 8,000,000 5,401,510
- - ----------------------------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds:
12%, 10/1/95 19,000,000,000(1) 12,293,284
12.50%, 1/1/98 13,500,000,000(1) 9,231,969
11.50%, 3/1/98 16,000,000,000(1) 10,648,159
12%, 5/1/02 33,500,000,000(1) 23,544,163
11.50%, 3/1/03 15,000,000,000(1) 10,385,499
11%, 6/1/03 7,050,000,000(1) 4,758,464
Buoni Pollennali del Tes, 12.50%, 3/19/98 4,740,000,000(1) 3,259,127
</TABLE>
4 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
Long-Term Government
Obligations
(continued)
Jamaica (Government of) 1990 Refinancing Agreement Nts., Tranche B,
4.125%, 11/15/04(4)(5) $5,000,000 $3,575,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Landeskredietbank Baden Sr. Unsec. Unsub. Nts., 11.625%, 6/24/99 5,000,000,000(1) 3,427,019
- - ----------------------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreements, Tranche A,
4.50%, 1/1/09(4)(5) 48,950,000 30,642,700
- - ----------------------------------------------------------------------------------------------------------------------------------
Polish People's Republic Loan Participation Agreements:
5.0625%, 2/3/24(2) 20,750,000 6,536,250
7.9375%, 2/8/24(2) 21,000,000(1) 4,658,008
7.9375%, 2/8/24(2) 23,000,000(1) 4,305,251
- - ----------------------------------------------------------------------------------------------------------------------------------
Quebec, Canada (Province of) Sr. Nts., 9.50%, 10/2/02 20,000,000(1) 14,397,005
- - ----------------------------------------------------------------------------------------------------------------------------------
South Africa (Republic of) Loan Participation Agreements:
ESKOM 5.153%, 2/15/00(4) 29,550,000 25,310,816
ESKOM 4.776%, 9/15/99(4) 8,578,951 7,467,025
ESKOM 4.929%, 4/15/98(4) 3,113,793 2,889,081
ESKOM 4.961%, 12/23/97(4) 7,380,078 6,729,237
ESKOM 4.651%, 1/15/98(4) 10,000,000 9,003,650
- - ----------------------------------------------------------------------------------------------------------------------------------
South Australia Government Finance Authority Bonds, 10%, 1/15/03 30,800,000 23,442,025
- - ----------------------------------------------------------------------------------------------------------------------------------
Spain (Kingdom of):
Bonds, 11.45%, 8/30/98 3,900,000,000(1) 31,516,208
Bonds, 10.25%, 11/30/98 1,500,000,000(1) 11,710,585
Bonds, 11.30%, 1/15/02 4,300,000,000(1) 35,380,433
Bonds, 8%, 5/30/04 4,467,000,000(1) 30,266,683
Gtd. Bonds, Bonos y Obligacion del Estado:
11%, 6/15/97 3,000,000,000(1) 23,621,729
12.25%, 3/25/00 3,392,000,000(1) 28,787,801
- - ----------------------------------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria:
Bonds, 10.50%, 5/27/03 3,200,000(1) 2,488,419
Gtd. Bonds, 8.25%, 10/15/03 57,350,000(1) 39,438,095
- - ----------------------------------------------------------------------------------------------------------------------------------
United Mexican States:
1990 Combined Multi-Year Restructuring Agreement,
Restructured Sov. Loan, 4.28%, 12/23/06(4) 26,277,514 21,063,241
Banco Nacional de Comercio Exterior SNC International Finance BV
Gtd. Matador Bonds:
13%, 1/29/97 1,250,000,000(1) 9,746,883
8%, 5/6/98 13,000,000(1) 7,864,757
12.65%, 6/21/98 2,900,000,000(1) 22,689,466
12.25%, 12/3/98 19,500,000(1) 31,862,769
Bankpesca Restructured Sov. Loan, 4.312%, 10/26/06(4) 5,391,612 4,291,249
Banobras Myra Loan Participation Agreement,
Tranche 2, 4.312%, 11/16/06(4) 3,289,155 2,622,608
Myra Old Money Loan Participation Agreements, 4.25%, 3/20/05(4) 4,207,409 3,326,277
New New Money Loan Participation Agreements,
Tranche A, 4.125%, 3/25/05(4) 3,863,055 3,057,609
Nts., Nacional Financiera SNC, 13.60%, 4/2/98 1,395,000,000(1) 11,240,311
- - ----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
8.125%, 8/15/19 100,000 109,719
7.875%, 2/15/21 197,500,000 211,571,875
8.125%, 8/15/21 100,000,000 110,250,000
7.125%, 2/15/23 100,000,000 98,906,189
6.25%, 8/15/23 48,000,000 43,004,971
</TABLE>
5 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
Long-Term Government
Obligations (continued)
U.S. Treasury Nts.:
10.50%, 2/15/95 $190,000,000 $199,737,500
11.25%, 2/15/95 115,000,000 121,648,490
10.375%, 5/15/95(9) 25,000,000 26,554,672
5.125%, 11/15/95 150,000 150,328
11.25%, 5/15/19 28,000,000 30,012,500
8.875%, 11/15/19 145,000,000 158,820,224
9.50%, 11/15/19 85,000,000 90,896,875
8.50%, 11/15/20 50,000,000 55,265,595
- - ----------------------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of):
Bonds, Banco Venezuela TCI, 0%, 12/13/98(5) 11,862,050 9,133,779
Bonds, Series DL, 6%, 3/31/07(4) 91,000,000 49,538,125
Disc. Bonds, Series DL, 4.3125%, 12/18/07(4) 42,000,000 20,685,000
Disc. Bonds, Series W-A, 4.1875%, 3/31/20(4) 4,750,000 2,517,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Front-Loaded Interest Reduction Bonds:
Series A, 6%, 3/31/07(4) 70,500,000 38,378,438
6.86%, 3/31/07(4) 20,000,000(1) 7,310,855
-------------
Total Long-Term Government Obligations (Cost $2,422,946,777) 2,268,178,545
- - ----------------------------------------------------------------------------------------------------------------------------------
Mortgage/Asset-Backed Obligations--4.6%
- - ----------------------------------------------------------------------------------------------------------------------------------
Chase Mortgage Finance Corp.:
Nts., 6.75%, 4/25/24(5) 853,603 661,409
Nts., 6.75%, 2/25/25(5) 714,565 552,672
Sub. Mtg. Pass-Through Certificates,
Series 1994-1:
0%, Cl. B-8, 3/25/25(5) 2,201,860 1,760,112
0%, Cl. B-9, 3/25/25(5) 2,201,860 1,755,983
0%, Cl. B-10, 3/25/25(5) 1,100,930 873,175
- - ----------------------------------------------------------------------------------------------------------------------------------
Citicorp Mortgage Securities, Inc., 7% Sub. Bonds, Series 1993-5:
Cl. B3, 4/25/23 1,673,194 1,299,602
Cl. B4, 4/25/23 1,613,439 225,377
- - ----------------------------------------------------------------------------------------------------------------------------------
CMC Security Corp. III, 0% Collateralized Mtg. Oblig., Series 1994-E,
Cl. E-B3, 3/25/24(5) 4,983,179 3,738,941
- - ----------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. Interest-Only Stripped Mtg.-Backed
Security, Trust 240, Class 2:
7%, 9/25/23 299,702,092 110,092,941
7%, 2/25/24 154,437,157 57,165,879
- - ----------------------------------------------------------------------------------------------------------------------------------
Prudential Agricultural Credit, Inc. Farmer Mac Agricultural Real Estate
Trust Sr. Sub. Mtg. Pass-Through Certificates:
9.18%, Series 1992-2, C1. B2, 1/15/03(4)(5) 5,928,578 4,632,628
9.47%, Series 1992-2, Cl. B3, 4/15/09(4)(5) 5,846,713 4,510,191
- - ----------------------------------------------------------------------------------------------------------------------------------
Residential Funding Corp., 7.785% Mtg. Pass-Through Certificates,
Series 1993-6, Cl. B5, 6/15/23(5) 4,134,695 3,351,688
- - ----------------------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp. Commercial Mtg. Pass-Through Certificates:
8.25%, Series 1992-CHF, Cl. C, 12/25/20 1,834,021 1,855,227
10.6323%, Series 1992-16, Cl. B3, 5/24/24(4) 2,822,000 2,991,320
8.75%, Series 1993-C1, Cl. B, 5/25/24 7,572,000 7,837,020
8.50%, Series 1993-C2, Cl. E, 3/25/25 204,510 208,089
-----------
Total Mortgage/Asset-Backed Obligations (Cost $191,344,084) 203,512,254
</TABLE>
6 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds and Notes--42.0%
- - ----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--4.6%
- - ----------------------------------------------------------------------------------------------------------------------------------
Chemicals--1.3% Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 $15,500,000 $15,887,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc.:
0%/10.25% Gtd. Sr. Sec. Disc. Nts., 7/15/01(3) 17,250,000 14,317,500
10.75% Gtd. Sr. Sub. Nts., 10/15/03 1,000,000 1,020,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% Fst. Mtg. Bonds, 6/1/03 3,500,000 4,071,819
- - ----------------------------------------------------------------------------------------------------------------------------------
Rexene Corp., 9% Fst. Priority Nts., 11/15/99(7) 2,735,000 2,567,481
- - ----------------------------------------------------------------------------------------------------------------------------------
Sherritt, Inc., 11% Debs., 3/31/04 10,000,000 7,142,718
- - ----------------------------------------------------------------------------------------------------------------------------------
Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05(3) 19,446,000 11,910,675
------------
56,917,693
- - ----------------------------------------------------------------------------------------------------------------------------------
Metals--1.4% Armco, Inc., 13.50% Sr. Nts., 6/15/94 5,868,000 5,941,350
- - ----------------------------------------------------------------------------------------------------------------------------------
Haynes International, Inc., 11.25% Sr. Sec. Nts., 6/15/98(5) 3,000,000 3,007,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Horsehead Industries, Inc.:
13.50% Extd. Nts., 6/1/97(4) 4,566,000 4,520,340
14% Sub. Nts., 6/1/99 5,050,000 4,974,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00 2,000,000 2,010,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp.:
9.875% Sr. Nts., 2/15/02 3,075,000 2,859,750
12.75% Sr. Sub. Nts., 2/1/03 17,500,000 17,850,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Stelco, Inc.:
10.875% Debs., 9/15/94 4,500,000(1) 3,250,841
9.75% Debs., 4/1/95 16,680,000(1) 11,974,377
10.25% Debs., 4/30/96 4,300,000(1) 3,102,471
10.40% Debs., 11/30/09 2,000,000(1) 1,444,818
------------
60,935,697
- - ----------------------------------------------------------------------------------------------------------------------------------
Paper and Forest
Products--1.9%
Domtar, Inc.:
10.35% Debs., 9/1/06 3,350,000 2,289,829
10% Debs., 4/15/11 700,000 433,308
10.85% Debs., 8/5/17 7,000,000 4,759,401
- - ----------------------------------------------------------------------------------------------------------------------------------
Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02(2) 1,830,000 1,399,950
- - ----------------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 8,450,000 8,576,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 17,220,000 16,961,700
- - ----------------------------------------------------------------------------------------------------------------------------------
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 25,100,000 23,468,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.75% Sr. Nts., 6/15/00 6,000,000 6,360,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Scotia Pacific Holding Co., 7.95% Timber Collateralized Nts., 7/20/15 2,682,596 2,562,220
- - ----------------------------------------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 17,750,000 16,241,250
------------
83,052,908
- - ----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--13.2%
- - ----------------------------------------------------------------------------------------------------------------------------------
Automotive--0.7% Envirotest Systems Corp., 9.625% Sr. Sub. Nts., 4/1/03 11,940,000 11,462,400
- - ----------------------------------------------------------------------------------------------------------------------------------
New City Communications, Inc., 11.375% Sr. Sub. Nts., 11/1/03 14,675,000 15,335,375
- - ----------------------------------------------------------------------------------------------------------------------------------
Penda Industries, Inc., 10.75% Sr. Nts., 3/1/04(5) 4,985,000 4,935,150
- - ----------------------------------------------------------------------------------------------------------------------------------
Sealed Power Technologies LP, 14.50% Sr. Sub. Debs., 5/15/99 1,200,000 1,278,000
------------
33,010,925
</TABLE>
7 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Construction Supplies and
Development--0.9%
Baldwin Co., 10.375% Nts., 8/1/03 $9,000,000 $8,550,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Hovnanian K. Enterprises, Inc., 11.25% Gtd. Sub. Nts., 4/15/02 6,900,000 7,176,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Trizec Corp. Ltd:
6.125% Debs., 10/21/93(2) 2,000,000(1) 1,242,136
11.125%, Sr. Debs., 6/18/96(2) 8,500,000(1) 5,348,901
10.25% Sr. Debs., 6/22/99(2) 500,000(1) 313,737
- - ----------------------------------------------------------------------------------------------------------------------------------
USG Corp.:
10.25% Sr. Sec. Nts., 12/15/02 10,967,000 11,076,670
8.75% Debs., 3/1/17 6,250,000 6,031,250
- - ----------------------------------------------------------------------------------------------------------------------------------
39,738,694
- - ----------------------------------------------------------------------------------------------------------------------------------
Consumer Goods and
Services--3.4%
Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 10,886,000 10,831,570
- - ----------------------------------------------------------------------------------------------------------------------------------
Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98 13,450,000 8,540,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01 16,520,000 16,643,900
- - ----------------------------------------------------------------------------------------------------------------------------------
Dr. Pepper Bottling Co. of Texas, 10.25% Sr. Nts., 2/15/00 3,000,000 3,135,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Dr. Pepper/Seven-Up Cos., Inc., 0%/11.50% Sr. Sub. Disc. Nts., 11/1/02(3) 4,118,000 3,201,745
- - ----------------------------------------------------------------------------------------------------------------------------------
Empresas La Moderna SA, 10.25% Gtd. Nts., 11/12/97(5) 8,600,000 8,944,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 19,500,000 20,767,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Insilco Corp., 10.375% Sr. Sec. Nts., 7/1/97 7,505,000 7,467,475
- - ----------------------------------------------------------------------------------------------------------------------------------
Interco, Inc., 9% Sec. Nts.:
Series B, 6/1/04(5) 10,000,000 9,812,500
Series B, 6/1/04 7,826,000 7,630,350
- - ----------------------------------------------------------------------------------------------------------------------------------
MacAndrews & Forbes Group, Inc., 12.25% Sub. Nts., 7/1/96 1,250,000 1,287,500
- - ----------------------------------------------------------------------------------------------------------------------------------
MacAndrews & Forbes Holdings, Inc., 13% Sub. Debs., 3/1/99 4,915,000 4,951,863
- - ----------------------------------------------------------------------------------------------------------------------------------
Mary Kay Corp.:
12.75% Gtd. Sr. Nts., Series B, 12/6/00(5) 1,000,000 1,045,000
10.25% Sr. Nts., 12/31/00(5) 9,875,000 9,924,375
- - ----------------------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts., 11/1/03(5) 6,500,000 6,207,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 9.375% Sr. Nts., Series B, 4/1/01 5,600,000 5,012,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., Series B, 3/15/98 19,950,000 9,177,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 12,275,000 13,563,875
------------
148,143,903
- - ----------------------------------------------------------------------------------------------------------------------------------
Entertainment--2.6% Arizona Charlie's, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00(5) 5,775,000 5,803,875
- - ----------------------------------------------------------------------------------------------------------------------------------
Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 9,000,000 9,225,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 7,250,000 7,141,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Aztar Mortgage Funding, Inc., 13.50% Gtd. Fst. Mtg. Nts., 9/15/96 2,250,000 2,317,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., Units(5) 2,500,000 2,977,092
- - ----------------------------------------------------------------------------------------------------------------------------------
Capital Queen & Casino, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00(5) 4,200,000 3,780,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Casino America, Inc.:
Units 5,000,000 5,175,000
Units 4,500,000 4,612,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 12,800,000 14,016,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Kloster Cruise Ltd., 13% Sr. Sec. Nts., 5/1/03(5) 14,200,000 15,336,000
- - ----------------------------------------------------------------------------------------------------------------------------------
MGM Grand Hotel Financial Corp.:
11.75% Fst. Mtg. Nts., Series A, 5/1/99 5,000,000 5,587,500
12% Fst. Mtg. Nts., 5/1/02 3,500,000 3,920,000
</TABLE>
8 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Entertainment (continued) Maritime Group Ltd., Units(4)(5) $2,750,000 $2,704,625
- - ----------------------------------------------------------------------------------------------------------------------------------
Marvel (Parent) Holdings, Inc., 0% Sr. Sec. Disc. Nts., 4/15/98 9,500,000 5,913,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Marvel Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 4/15/98 11,000,000 6,847,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 12,850,000 12,785,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Treasure Bay Gaming & Resorts, Inc., Units(5) 5,550,000 5,605,500
- - ----------------------------------------------------------------------------------------------------------------------------------
United Gaming, Inc., 7.50% Cv. Sub. Debs., 9/15/03 2,000,000 2,030,000
- - ----------------------------------------------------------------------------------------------------------------------------------
115,778,842
------------
Hotels/Lodging--0.5% Dal-Tile International, Inc., 0% Sr. Sec. Nts., 7/15/98 21,500,000 12,900,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Embassy Suites, Inc., 10.875% Gtd. Sr. Sub. Nts., 4/15/02 5,250,000 5,696,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Host Marriott Corp., 11% Sr. Nts., Series L, 5/1/07 4,753,000 4,800,530
- - ----------------------------------------------------------------------------------------------------------------------------------
23,396,780
------------
Media--2.8% Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series B, 10/1/03 8,250,000 8,311,875
- - ----------------------------------------------------------------------------------------------------------------------------------
Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 2,500,000 2,400,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Argyle Television Operations, 9.875% Sr. Sub. Nts., 12/30/03 10,595,000 9,959,300
- - ----------------------------------------------------------------------------------------------------------------------------------
GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10(5) 840,753 947,949
- - ----------------------------------------------------------------------------------------------------------------------------------
General Media, Inc., 10.625% Sr. Sec. Nts., 12/31/00(5) 4,000,000 3,980,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Infinity Broadcasting Corp., 10.375% Sr. Sub. Nts. 3/15/02 4,000,000 4,060,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 12,000,000 12,180,000
- - ----------------------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc.:
12% Sr. Nts., 12/15/01 2,500,000 2,950,055
8.625% Sr. Nts., 2/1/03 10,400,000 10,750,416
8.50% Sr. Nts., 2/15/05 6,000,000 6,157,019
10.125% Gtd. Sr. Debs., 10/15/12 3,300,000 3,722,129
- - ----------------------------------------------------------------------------------------------------------------------------------
SCI Television, Inc.:
11% Sr. Sec. Nts., 6/30/05 17,000,000 17,000,000
Bank Participation Interest Agreements:
Series 1, 9/30/94(2) 7,500,000 7,293,750
Series 3, 9/30/94(2) 6,000,000 5,835,000
- - ----------------------------------------------------------------------------------------------------------------------------------
SFX Broadcasting, Inc., 11.375% Sr. Sub. Nts., Class A, 10/1/00 3,750,000 3,806,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 12/15/03 17,550,000 17,637,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 1/15/01 5,500,000 6,022,500
- - ----------------------------------------------------------------------------------------------------------------------------------
123,013,993
- - ----------------------------------------------------------------------------------------------------------------------------------
Real Estate Development--0.8% Casino Magic Finance Corp.,
11.50% First Mtg. Nts., 10/15/01 4,410,000 4,432,050
- - ----------------------------------------------------------------------------------------------------------------------------------
Noranda Forest, Inc., 11% Debs., 7/15/98 2,000,000 1,556,932
- - ----------------------------------------------------------------------------------------------------------------------------------
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 9,900,000 10,122,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Olympia & York First Canadian Place Ltd., 11% Debs., Series 3, 11/4/49(2) 5,150,000 2,449,229
- - ----------------------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust 11.625% Sr. Nts., 4/1/02(5) 15,000,000 14,793,750
- - ----------------------------------------------------------------------------------------------------------------------------------
UDC Homes, Inc., 11.75% Sr. Nts., 4/30/03 2,900,000 2,987,000
------------
36,341,711
------------
Retail--1.5% AnnTaylor, Inc., 13.75% Sub. Nts., 7/15/99 500,000 533,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 19,950,000 20,548,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Units(5) 7,000,000 7,148,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., 0%/12% Sr. Disc. Debs., 5/1/05(3) 750,000 472,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 12,175,000 12,235,875
</TABLE>
9 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Retail (continued) Parisian, Inc., 9.875% Sr. Sub. Nts., 7/15/03 $11,500,000 $10,695,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Sears Canada, Inc.:
11.75% Debs., 12/5/95 2,400,000(1) 1,841,845
11.70% Debs., 7/10/00 10,150,000(1) 8,084,748
- - ----------------------------------------------------------------------------------------------------------------------------------
Southland Corp., 4.50% 2nd Priority Sr. Sub. Debs., Series A, 6/15/04 4,850,000 3,079,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Zale Delaware, Inc., 11% Gtd. 2nd Priority Sr. Sec. Nts., 7/30/00 2,000,000 2,030,000
------------
66,670,718
------------
Consumer Non-Cyclicals--4.8%
- - ----------------------------------------------------------------------------------------------------------------------------------
Food--3.1% American Restaurant Group, Inc.:
12% Gtd. Sr. Sec. Nts., 9/15/98 5,785,000 5,640,375
12% Gtd. Sr. Sec. Nts., 9/15/98(5) 3,000,000 2,820,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Family Restaurant, Inc.:
9.75% Sr. Nts., 2/1/02 8,500,000 7,905,000
10.875% Sr. Sub. Disc. Nts., 2/1/04 19,200,000 12,960,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 11,100,000 11,377,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Flagstar Corp.:
10.75% Sr. Nts., 9/15/01 5,000,000 4,962,500
11.25% Sr. Sub. Debs., 11/1/04 1,000,000 975,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Food 4 Less Supermarkets, Inc., 13.75% Sr. Sub Nts., 6/15/01 1,500,000 1,627,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Foodmaker, Inc., 14.25% Sr. Sub. Nts., 5/15/98 15,000,000 15,937,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Heileman Acquisition Corp., 9.625% Sr. Sub. Nts., 1/31/04 7,700,000 7,199,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Pulsar International, 8% Nts., 12/14/94 40,000,000 40,000,000
- - ----------------------------------------------------------------------------------------------------------------------------------
RJR Nabisco, Inc., 8.625% Medium-Term Nts., 12/1/02 20,000,000 18,457,458
- - ----------------------------------------------------------------------------------------------------------------------------------
Specialty Foods, 10.75% Sr. Nts., 8/15/01 6,100,000 6,191,500
------------
136,053,833
------------
Food and Drug
Distribution--1.1%
Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05(6) 15,002,000 15,283,288
- - ----------------------------------------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 9,180,000 9,593,100
- - ----------------------------------------------------------------------------------------------------------------------------------
Duane Reade, 12% Sr. Nts., Series B, 9/15/02 3,000,000 3,225,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Grand Union Co., 11.25% Sr. Nts., 7/15/00 12,850,000 12,817,875
- - ----------------------------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 7,800,000 7,683,000
------------
48,602,263
------------
Healthcare--0.6% Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02 2,000,000 1,910,000
- - ----------------------------------------------------------------------------------------------------------------------------------
American Medical International, Inc.:
11.25% Nts., 2/6/95 1,060,000 1,601,216
13.50% Sr. Sub. Nts., 8/15/01 1,200,000 1,356,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Epic Holdings, Inc., 0%/12% Sr. Def. Cpn. Nts., 3/15/02(3) 9,950,000 7,960,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Mediq/PRN Life Support Services, Inc., 11.125% Sr. Sec. Nts., 7/1/99 3,000,000 3,082,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 6,290,000 6,824,650
- - ----------------------------------------------------------------------------------------------------------------------------------
Quorum Health Group, Inc., 11.875% Sr. Sub. Nts., 12/15/02 3,750,000 4,143,750
------------
26,878,116
------------
Energy--2.1%
- - ----------------------------------------------------------------------------------------------------------------------------------
Global Marine, Inc., 12.75% Sr. Sec. Nts., 12/15/99 2,600,000 2,788,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Gulf Canada Resources Ltd., 9.25% Sr. Sub. Debs., 1/15/04 10,500,000 9,765,000
- - ----------------------------------------------------------------------------------------------------------------------------------
HS Resources, Inc., 9.875% Sr. Sub. Nts., 12/1/03 3,750,000 3,750,000
</TABLE>
10 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Energy (continued) Maxus Energy Corp.:
9.875% Nts., 10/15/02 $4,550,000 $4,345,250
8.50% Debs., 4/1/08 5,000,000 4,600,000
11.50% Debs., 11/15/15 3,500,000 3,657,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Mesa Capital Corp.:
0%/12.75% Disc. Nts., 6/30/96(3) 1,000 843
0%/12.75% Sec. Disc. Nts., 6/30/98(3) 21,049,000 18,786,233
- - ----------------------------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 13,000,000 15,145,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc., 9.375% Sub. Debs., 2/1/06 1,700,000 1,615,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Presidio Oil Co.:
11.50% Sr. Sec. Nts., Series A, 9/15/00 6,564,500 6,580,911
14.36% Sr. Sub. Gas Indexed Nts., Series A, 7/15/02(4) 5,250,000 5,341,875
- - ----------------------------------------------------------------------------------------------------------------------------------
Rowan Cos., Inc., 11.875% Sr. Nts., 12/1/01 7,500,000 7,837,500
- - ----------------------------------------------------------------------------------------------------------------------------------
TGX Corp., 12.675% Sr. Sub. Exch. Nts., 4/1/94(2) 6,920,000 2,802,600
- - ----------------------------------------------------------------------------------------------------------------------------------
Triton Energy Corp., 0% Sr. Sub. Disc. Nts., 11/1/97 3,500,000 2,450,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Wainoco Oil Corp., 12% Sr. Nts., 8/1/02 4,675,000 4,838,625
------------
94,304,837
------------
Financial--5.4%
- - ----------------------------------------------------------------------------------------------------------------------------------
Acadia Partners LP, 13% Sub. Nts., 10/1/97(5) 25,000,000 25,625,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Bancario San Paolo, 14.28% CD, 10/18/94 6,500,000,000(1) 2,731,668
- - ----------------------------------------------------------------------------------------------------------------------------------
Banco Bamerindus do Brazil CD:
0%, 5/6/94 11,200,000(1) 8,050,192
0%, 5/20/94 11,000,000(1) 7,625,677
13.50%, 6/3/94 15,000,000,000(1) 9,135,388
- - ----------------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank, 10.75% Sr. Unsub. Nts., 3/1/03 12,500,000,000(1) 8,548,119
- - ----------------------------------------------------------------------------------------------------------------------------------
Bayerische Vereinsbank International SA, 10.80% Sr. Debs., 6/16/03 14,930,000,000(1) 10,163,465
- - ----------------------------------------------------------------------------------------------------------------------------------
Blue Bell Funding, Inc., 11.85% Extd. Sec. Nts., 5/1/99(4) 7,000,000 7,385,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(5) 16,075,000 16,476,875
- - ----------------------------------------------------------------------------------------------------------------------------------
Citibank, 16%--18.20% CD, 5/27/94--1/4/95 16,345,230,150(1) 38,320,896
- - ----------------------------------------------------------------------------------------------------------------------------------
Commermex, 13.375% CD, 6/6/94 36,500,000,000(1) 22,205,413
- - ----------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I., 14% Sub. Nts., 6/10/02(5) 1,740,852 1,952,366
- - ----------------------------------------------------------------------------------------------------------------------------------
Epic Properties, Inc., 11.50% Gtd. Fst. Priority Mtg. Nts., Cl. B-2, 7/15/01 1,171,764 1,435,412
- - ----------------------------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Services, Inc.
Mtg. Pass-Through Certificates:
6.50%, Series 1994-11, Cl. B3, 4/25/24(5) 3,183,000 2,349,451
6.50%, Series 1994-10, Cl. B3, 5/25/24 4,786,000 3,613,430
6%, Series 1994-7, Cl. B3, 2/25/09 1,624,573 1,287,220
- - ----------------------------------------------------------------------------------------------------------------------------------
Grupo Mexicano de Desarrollo SA, 8.25% Gtd. Nts., 2/17/01(5) 14,700,000(1) 13,377,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Life Partners Group, Inc., 12.75% Sr. Sub. Nts., 7/15/02 2,500,000 2,862,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Morgan Guaranty Trust Co. of New York
(Singapore Branch) 12.15% CD, 2/3/95(8) 14,898,412,500(1) 6,913,649
- - ----------------------------------------------------------------------------------------------------------------------------------
Nacolah Holding Corp., 9.50% Sr. Nts., 12/1/03 6,000,000 5,835,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Navistar Financial Corp., 9.50% Medium-Term Nts., 6/1/96 6,075,000 6,226,145
- - ----------------------------------------------------------------------------------------------------------------------------------
Pioneer Finance, 13.50% Fst. Mtg. Bonds, 12/1/98 18,205,000 18,933,200
- - ----------------------------------------------------------------------------------------------------------------------------------
Reliance Group Holdings, Inc., 9.75% Sr. Sub. Debs., 11/15/03 6,500,000 6,142,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(5) 13,700,000 13,015,000
------------
240,210,566
</TABLE>
11 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Industrial--3.0%
- - ----------------------------------------------------------------------------------------------------------------------------------
Containers--0.8% Calmar, Inc., 12% Sr. Sec. Nts., 12/15/97 $7,000,000 $7,105,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Calmar Spraying Systems, Inc., 14% Sr. Sub. Disc. Nts., 2/15/99 3,850,000 3,773,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 2,100,000 2,110,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Sea Containers Ltd.:
9.50% Sr. Nts., 7/1/03 4,750,000 4,631,250
12.50% Sr. Sub. Debs., Series A, 12/1/04 5,600,000 6,230,000
12.50% Sr. Sub. Debs., Series B, 12/1/04 1,500,000 1,698,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Stone Container Corp.:
10.75% Sr. Sub. Nts., 6/15/97 1,300,000 1,280,500
12.625% Sr. Nts., 7/15/98 500,000 537,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Terex Corp., Units(5) 2,530,000 2,403,500
------------
29,770,000
- - ----------------------------------------------------------------------------------------------------------------------------------
General Industrial--1.3% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 10,250,000 9,686,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Imo Industries, Inc., 12.25% Sr. Sub. Debs., 8/15/97 3,850,000 3,821,124
- - ----------------------------------------------------------------------------------------------------------------------------------
Mosler, Inc., 11% Sr. Nts., Series A, 4/15/03 12,350,000 11,423,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02(5) 11,800,000 11,682,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Rexnord Corp., 10.75% Sr. Nts., 7/1/02 1,000,000 1,200,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Snyder General Corp., 14.25% Sr. Sub. Debs., 11/15/00 12,070,000 12,673,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 3,450,000 3,915,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02(2)(5) 5,500,000 2,750,000
------------
57,152,374
- - ----------------------------------------------------------------------------------------------------------------------------------
Transportation--0.9% Chrysler Corp., 13% Debs., 3/1/97 500,000 532,058
- - ----------------------------------------------------------------------------------------------------------------------------------
Chrysler Financial Corp., 13.25% Sr. Nts., 10/15/99 4,500,000 5,717,790
- - ----------------------------------------------------------------------------------------------------------------------------------
Tiphook Financial Corp.:
8% Gtd. Nts., 3/15/00 4,583,000 3,505,994
10.75% Sr. Nts., 11/1/02 2,236,000 1,844,700
- - ----------------------------------------------------------------------------------------------------------------------------------
Transportacion Maritima Mexicana SA:
8.50% Nts., 10/15/00 5,400,000 5,049,000
9.25% Nts., 5/15/03 12,000,000 11,340,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc. Nts.,
Series A, 12/15/03(3) 19,266,000 10,499,970
- - ----------------------------------------------------------------------------------------------------------------------------------
Trism, Inc., 10.75% Sr. Sub. Nts., 12/15/00 1,250,000 1,206,250
------------
39,695,762
- - ----------------------------------------------------------------------------------------------------------------------------------
Technology--6.8%
- - ----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.0% GPA Delaware, Inc.:
4.845% Medium-Term Nts., Series A, 6/15/94 4,000,000 3,910,000
8.50% Medium-Term Nts., 2/10/97(5) 10,500,000 9,240,000
8.75% Gtd. Nts., 12/15/98 4,900,000 4,018,000
9.75% Medium-Term Nts., Series C, 12/10/01 2,000,000 1,605,000
- - ----------------------------------------------------------------------------------------------------------------------------------
GPA Holland BV:
8.625% Medium-Term Nts., Series C, 1/15/99 9,000,000 7,053,750
8.94% Medium-Term Nts., Series C, 2/16/99 2,000,000 1,600,000
9.50% Medium-Term Nts., Series A, 12/15/01 1,500,000 1,203,750
</TABLE>
12 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense
(continued)
GPA Investment BV, 6.40% Nts., 11/19/98 $2,000,000 $1,530,000
- - ----------------------------------------------------------------------------------------------------------------------------------
GPA Netherlands BV, 8.50% Medium-Term Nts., 3/3/97(5) 6,500,000 5,720,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Sequa Corp., 8.75% Sr. Nts., 12/15/01 9,000,000 8,685,000
------------
44,565,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Cable Television--2.1% Adelphia Communications Corp.:
10.25% Sr. Nts., Series A, 7/15/00 4,500,000 4,477,500
12.50% Sr. Nts., 5/15/02 6,740,000 7,161,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp.:
14% Sr. Sub. Reset Debs., 11/15/03(4) 7,900,000 8,038,250
10.75% Sr. Sub. Debs., 4/1/04 4,150,000 4,295,250
9.875% Sr. Sub. Debs., 2/15/13 6,400,000 6,496,000
9.875% Debs., 4/1/23 2,500,000 2,537,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Comcast Corp., 10.25% Sr. Sub. Debs., 10/15/01 1,000,000 1,040,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Continental Broadcasting Ltd./Continental Broadcasting Capital Corp.,
10.625% Sr. Sub. Nts., 7/1/03 6,500,000 6,532,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc.:
11% Sr. Sub. Debs., 6/1/07 1,000,000 1,085,000
9.50% Sr. Debs., 8/1/13 8,200,000 7,995,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., 11/1/03(4)(5) 17,500,000 16,625,000
- - ----------------------------------------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts., 10/15/03(3) 10,750,000 6,503,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 2,000,000 2,010,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 9.625% Sr. Sec. 2nd Priority Nts., 8/1/02 2,900,000 2,958,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc.:
7.45% Nts., 2/1/98 800,000 807,000
7.95% Nts., 2/1/00 3,020,000 3,004,900
- - ----------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc./Time Warner Entertainment LP, 10.15% Sr. Nts., 5/1/12 1,000,000 1,155,000
- - ----------------------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 8,000,000 9,080,000
------------
91,801,900
- - ----------------------------------------------------------------------------------------------------------------------------------
Communications--2.1% Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03(3) 26,626,000 16,774,380
- - ----------------------------------------------------------------------------------------------------------------------------------
Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 14,000,000 12,810,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(3) 18,000,000 12,510,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/9.75% Sr. Disc. Nts., 8/15/04(3) 16,255,000 9,671,725
- - ----------------------------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
9.75% Sr. Sec. Nts., 8/1/00 3,600,000 3,636,000
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(3) 32,700,000 20,110,499
- - ----------------------------------------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 10.875% Sr. Debs., 4/15/04 2,200,000 2,277,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Telecommunications Corp. of Venezuela:
9% Nts., 9/4/02 6,372,000 4,534,959
9.25% Nts., 9/18/03 4,900,000 3,547,275
- - ----------------------------------------------------------------------------------------------------------------------------------
USA Mobile Communications, Inc. II, 9.50% Sr. Nts., 2/1/04 10,000,000 9,350,000
------------
95,221,838
</TABLE>
13 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Technology--1.6% Bell & Howell Holdings Co.:
10.75% Sr. Sub. Nts., Series B, 10/1/02 $2,000,000 $2,090,000
0%/11.50% Sr. Disc. Debs., Series B, 3/1/05(3) 29,150,000 15,595,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Berg Electronics Holdings Corp., 11.875% Sr. Sub. Debs., 5/1/03 2,100,000 2,173,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Computervision Corp., 10.875% Sr. Nts., 8/15/97 4,650,000 4,487,250
- - ----------------------------------------------------------------------------------------------------------------------------------
Dell Computer Corp., 11% Sr. Nts., 8/15/00 9,500,000 9,880,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01(4)(5) 13,200,000 12,210,000
- - ----------------------------------------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc.,
0%/11.50% Sr. Sec. Disc. Nts., 8/15/03(3) 24,000,000 12,060,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Unisys Corp.:
9.75% Sr. Nts., 9/15/96 2,000,000 2,080,000
15% Credit Sensitive Nts., 7/1/97 4,200,000 4,767,000
8.875% Nts., 7/15/97 1,000,000 1,002,500
9.75% Sr. Nts., 9/15/16 3,900,000 3,978,000
------------
70,323,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Utilities--2.1%
- - ----------------------------------------------------------------------------------------------------------------------------------
Beaver Valley Funding Corp., 9% Debs., 6/1/17 15,300,000 13,651,806
- - ----------------------------------------------------------------------------------------------------------------------------------
California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04(3) 17,575,000 12,522,188
- - ----------------------------------------------------------------------------------------------------------------------------------
Coastal Corp., 11.75% Sr. Debs., 6/15/06 2,500,000 2,812,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Del Norte Funding Corp.:
9.95% Debs., 1/2/98(2) 5,000,000 4,203,689
11.25% Debs., 1/2/14(2) 3,350,000 2,819,916
- - ----------------------------------------------------------------------------------------------------------------------------------
El Paso Electric Co.:
9.20% Debs., 7/2/97(2) 1,500,000 1,260,994
10.375% Lease Obligation Debs., 1/15/94(2) 9,750,000 8,207,530
- - ----------------------------------------------------------------------------------------------------------------------------------
El Paso Funding Corp.:
9.375% Debs., 1/1/96(2) 5,000,000 4,202,605
10.75% Debs., 4/1/13(2) 3,000,000 2,535,000
- - ----------------------------------------------------------------------------------------------------------------------------------
First PV Funding Corp., Lease Obligation Bonds:
10.30%, Series 1986A, 1/15/14 16,450,000 16,555,576
10.15%, Series 1986B, 1/15/16 20,700,000 20,875,203
- - ----------------------------------------------------------------------------------------------------------------------------------
Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02 125,000 132,468
- - ----------------------------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08(5) 9,500,000 9,167,500
------------
98,946,975
- - ----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds and Notes (Cost $1,883,104,132) 1,860,529,328
- - ----------------------------------------------------------------------------------------------------------------------------------
Derivative Securities--0.2%
- - ----------------------------------------------------------------------------------------------------------------------------------
Bankers Trust New York Co., 3% S&P 500 Equity-Linked Bank Nts., 5/9/94(5) 2,500,000 5,951,750
- - ----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 3.10% S&P 500 Index-Linked Nts., 5/2/94(5) 1,250,000 3,094,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Total Derivative Securities (Cost $5,235,000) 9,046,250
</TABLE>
14 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Market Value
Shares See Note 1
------ ------------
<S> <C> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Common Stocks--0.1%
- - ----------------------------------------------------------------------------------------------------------------------------------
Berg Electronics Holdings Corp.(2) 159,220 $254,752
- - ----------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I.(5) 525 525,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Ladish, Inc. 806,000 806,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $1,683,772) 1,585,752
- - ----------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks--0.5%
- - ----------------------------------------------------------------------------------------------------------------------------------
Berg Electronics Holdings Corp.(2)(5)(6) 71,149 1,849,874
- - ----------------------------------------------------------------------------------------------------------------------------------
Collins & Aikman Holdings Corp., $15.50 Exch.(6) 63,370 1,291,164
- - ----------------------------------------------------------------------------------------------------------------------------------
Dell Computer Corp., $7.00 Cv., Series A(5) 40,000 4,680,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Glendale Federal Bank, $6.375 Non-Cum. Cv., Series E 141,500 2,989,188
- - ----------------------------------------------------------------------------------------------------------------------------------
Harvard Industries, Inc., $14.25 Exch.(6) 29,730 743,250
- - ----------------------------------------------------------------------------------------------------------------------------------
K-III Communications Corp.:
Sr. Exch., Series A 80,000 2,180,000
$11.625 Exch., Series B(6) 48,995 4,850,537
- - ----------------------------------------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 143,800 6,075,550
- - ----------------------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (Cost $24,577,832) 24,659,563
- - ----------------------------------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.1%
- - ----------------------------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc.:
Excess Cash Flow Payment Ctfs. 37,200 372
Litigation Trust Units 118,975 1,190
- - ----------------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00(5) 262,500 787,500
- - ----------------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Wts., Exp. 2/99(5) 6,250 16,713
- - ----------------------------------------------------------------------------------------------------------------------------------
General Media, Inc. Wts., Exp. 12/00(5) 4,000 60,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Hollywood Casino Corp. Wts., Exp. 4/98 13,333 2,719,997
- - ----------------------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 11/03(5) 182,000 584,220
- - ----------------------------------------------------------------------------------------------------------------------------------
Santa Fe Hotel, Inc. Wts., Exp. 12/96 100 70,000
- - ----------------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. Wts., Exp. 1/98(5) 55,000 550
- - ----------------------------------------------------------------------------------------------------------------------------------
Total Rights, Warrants and Certificates (Cost $1,311,894) 4,240,542
- - ----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $4,580,416,730) 99.8% 4,421,573,465
- - ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities .2 9,183,271
------------ ------------
Net Assets 100.0% $4,430,756,736
------------ ------------
------------ ------------
<FN>
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. Represents the current interest rate for an increasing rate security.
8. Indexed instrument for which the principal amount due at maturity is affected
by the relative value of a foreign currency.
9. Liquid assets have been segregated to cover outstanding put options written,
as follows:
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Market
Face Amount Expiration Exercise Premium Value
Subject to Put Date Price Received See Note 1
- - ----------------------------------------------------------------------------------------------------------------------------------
Japanese Government Bond,
Series 22, 5.30%, 3/20/13 $9,538,035 4/94 $102.225 $139,079 $19,171
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1994 (Unaudited)
<S> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Assets Investments, at value (cost $4,580,416,730)--see accompanying statement $4,421,573,465
- - ----------------------------------------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 102,380,470
Investments sold 63,084,902
Shares of beneficial interest sold 45,589,921
- - ----------------------------------------------------------------------------------------------------------------------------------
Other 8,465,890
- - ----------------------------------------------------------------------------------------------------------------------------------
Total assets 4,641,094,648
- - ----------------------------------------------------------------------------------------------------------------------------------
Liabilities Options written, at value (premiums received $139,079)--see accompanying statement--Note 4 19,171
- - ----------------------------------------------------------------------------------------------------------------------------------
Bank overdraft 23,810,183
- - ----------------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 124,167,501
Shares of beneficial interest redeemed 37,550,576
Dividends and distributions 8,337,095
Distribution and service plan fees--Note 5 2,726,993
Other 13,726,393
- - ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 210,337,912
- - ----------------------------------------------------------------------------------------------------------------------------------
Net Assets $4,430,756,736
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
Composition of
Net Assets
Paid-in capital $4,583,186,533
- - ----------------------------------------------------------------------------------------------------------------------------------
Distributions in excess of net investment income (295,167)
- - ----------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment, written option and foreign currency transactions 6,204,387
- - ----------------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments, options written and translation of assets and liabilities
denominated in foreign currencies (158,339,017)
- - ----------------------------------------------------------------------------------------------------------------------------------
Net assets $4,430,756,736
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value
Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of $3,116,045,066 and
632,611,665 shares of beneficial interest outstanding) $4.93
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $5.18
- - ----------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets of $1,314,711,670
and 266,489,386 shares of beneficial interest outstanding) $4.93
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended March 31, 1994 (Unaudited)
<S> <C>
- - ----------------------------------------------------------------------------------------------------------------------------------
Investment Income Interest $184,910,828
- - ----------------------------------------------------------------------------------------------------------------------------------
Dividends 2,322,748
------------
Total income 187,233,576
- - ----------------------------------------------------------------------------------------------------------------------------------
Expenses Management fees--Note 5 10,997,728
- - ----------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 3,783,330
Class B--Note 5 5,025,514
- - ----------------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 2,216,410
- - ----------------------------------------------------------------------------------------------------------------------------------
Shareholder reports 580,685
- - ----------------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 309,400
- - ----------------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 142,890
Class B 224,662
- - ----------------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 38,465
- - ----------------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 9,100
- - ----------------------------------------------------------------------------------------------------------------------------------
Other 121,940
- - ----------------------------------------------------------------------------------------------------------------------------------
Total expenses 23,450,124
- - ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 163,783,452
- - ----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments,
Options Written and
Foreign Currency
Transactions
Net realized gain (loss) from:
Investments and options written (including premiums on options exercised) 61,658,382
Expiration of option contracts written--Note 4 6,350,000
Foreign currency transactions (28,871,572)
- - ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain 39,136,810
- - ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments and options written (244,332,439)
Translation of assets and liabilities denominated in foreign currencies 37,807,483
- - ----------------------------------------------------------------------------------------------------------------------------------
Net change (206,524,956)
- - ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, options written and foreign
currency transactions (167,388,146)
- - ----------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting From Operations $(3,604,694)
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
Six Months Ended Year Ended
March 31, 1994 September 30,
(Unaudited) 1993
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations Net investment income $163,783,452 $225,207,116
- - ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments, options written and foreign currency transactions 39,136,810 63,690,435
- - ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments, options written
and translation of assets and liabilities denominated in foreign currencies (206,524,956) 32,124,174
- - ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (3,604,694) 321,021,725
- - ----------------------------------------------------------------------------------------------------------------------------------
Dividends and
Distributions to
Shareholders
Dividends from net investment income:
Class A ($.2375 and $.4960 per share, respectively) (128,849,138) (210,522,530)
Class B ($.2168 and $.3637 per share, respectively) (38,094,843) (18,595,592)
- - ----------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments, options written and
foreign currency transactions:
Class A ($.1037 and $.0124 per share, respectively) (66,206,326) (7,998,180)
Class B ($.1037 and $.0124 per share, respectively) (20,491,575) (36,330)
- - ----------------------------------------------------------------------------------------------------------------------------------
Beneficial Interest
Transactions
Net increase in net assets resulting from Class A beneficial interest
transactions--Note 2 543,602,724 945,622,259
- - ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B beneficial interest
transactions--Note 2 695,659,005 683,558,019
- - ----------------------------------------------------------------------------------------------------------------------------------
Net Assets Total increase 982,015,153 1,713,049,371
- - ----------------------------------------------------------------------------------------------------------------------------------
Beginning of period 3,448,741,583 1,735,692,212
- - ----------------------------------------------------------------------------------------------------------------------------------
End of period (including (distributions in excess of) undistributed net
investment income of $(295,167) and $2,865,362, respectively) $4,430,756,736 $3,448,741,583
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer Strategic Income Fund
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
Class A Class B
-------------------------------------------------------------- ------------------------------
Six Months Ended Six Months Ended Period Ended
March 31, Year Ended September 30, March 31, September 30,
1994 (Unaudited) 1993 1992 1991 1990(2) 1994 (Unaudited) 1993(1)
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $5.21 $5.07 $5.01 $4.87 $5.00 $5.22 $4.89
- - ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .23 .48 .46(5) .56(5) .59 .21 .36
Net realized and unrealized gain (loss)
on investments, options written
and foreign currency transactions (.17) .17 .14 .21 (.10) (.18) .34
--------- --------- --------- --------- --------- -------- --------
Total income from investment
operations .06 .65 .60 .77 .49 .03 .70
- - ----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.24) (.50) (.46) (.57) (.57) (.22) (.36)
Distributions from net realized gain
on investments, options written and
foreign currency transactions (.10) (.01) (.08) (.06) (.05) (.10) (.01)
- - ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.34) (.51) (.54) (.63) (.62) (.32) (.37)
- - -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $4.93 $5.21 $5.07 $5.01 $4.87 $4.93 $5.22
--------- --------- -------- --------- --------- --------- ---------
--------- --------- -------- --------- --------- --------- ---------
- - -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(3) 1.01% 13.58% 12.56% 16.97% 10.20% .41% 14.58%
- - -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $3,116,045 $2,753,674 $1,735,692 $560,203 $177,346 $1,314,712 $695,068
- - -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,972,205 $2,107,141 $1,083,977 $311,352 $92,713 $934,141 $276,461
- - -----------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 632,612 528,587 342,034 111,739 36,418 266,489 133,235
- - -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 8.53%(4) 9.78% 9.39% 11.82% 12.79%(4) 8.01%(4) 8.13%(4)
Expenses .99(4) 1.09% 1.16%(5) 1.27%(5) 1.36%(4) 1.88%(4) 1.80%(4)
- - -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 75.1% 148.6% 208.2% 194.7% 424.6% 75.1% 148.6%
<FN>
1. For the period from November 30, 1992 (inception of offering) to
September 30, 1993.
2. For the period from October 16, 1989 (commencement of operations) to
September 30, 1990.
3. Assumes a hypothetical initial investment 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 redemption at
the net asset value calculated on the last business day of the fiscal period.
Sales charges are not reflected in the total returns.
4. Annualized.
5. Includes $.0002 and $.0020 per share of federal excise tax expense for 1992
and 1991, respectively. The expense ratio, exclusive of federal excise tax
expense, was 1.16% and 1.23%, respectively.
6. 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 March 31, 1994 were $4,193,077,677 and
$2,641,605,810, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Strategic Income Fund
<PAGE>
- - --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- - --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Strategic Income Fund (the Fund) is a separate series of
Oppenheimer Strategic Funds Trust, a diversified, open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment advisor is Oppenheimer Management Corporation (the Manager).
The Fund offers both Class A and Class B shares. Class A shares are sold with a
front-end sales charge. Class B shares may be subject to a contingent deferred
sales charge. Both classes of shares have identical rights to earnings, assets
and voting privileges, except that each class has its own distribution and/or
service plan, expenses directly attributable to a particular class and exclusive
voting rights with respect to matters affecting a single class. Class B shares
will automatically convert to Class A shares six years after the date of
purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
- - --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New York
time) on each trading day. 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. An 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. Forward foreign
currency exchange contracts are valued at the forward rate on a daily basis.
- - --------------------------------------------------------------------------------
Security Credit Risk. The Fund 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 Fund
may acquire securities in default, and is not obligated to dispose of securities
whose issuers subsequently default. At March 31, 1994, securities with an
aggregate market value of $56,963,254, representing 1.23% of the Fund's total
assets, were in default.
- - --------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund 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 Fund generally enters into forward currency exchange contracts as a
hedge, upon the purchase or sale of a security denominated in a foreign
currency. In addition, the Fund 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 Fund's results of operations.
- - --------------------------------------------------------------------------------
Repurchase Agreements. The Fund 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 Fund may be delayed or
limited.
20 Oppenheimer Strategic Income Fund
<PAGE>
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
1. Significant Accounting Policies (continued)
Options Written. The Fund may write covered call and put options. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
In writing an option, the Fund 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 Fund could result in the Fund selling or purchasing 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 and the Fund maintains
liquid assets sufficient to cover written put options in the event of exercise
by the holder.
- - --------------------------------------------------------------------------------
Allocation of Income, Expenses and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- - --------------------------------------------------------------------------------
Federal Income Taxes. The Fund 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.
- - --------------------------------------------------------------------------------
Organization Costs. The Manager advanced $13,675 for organization and start-up
costs of the Fund. Such expenses are being amortized over a five-year period
from the date operations commenced. In the event that all or part of the
Manager's initial investment in shares of the Fund is withdrawn during the
amortization period, the redemption proceeds will be reduced to reimburse the
Fund for any unamortized expenses, in the same ratio as the number of shares
redeemed bears to the number of initial shares outstanding at the time of such
redemption.
- - --------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends separately
for Class A and Class B shares from net investment income each day the New York
Stock Exchange is open for business and pay such dividends monthly.
Distributions from net realized gains on investments, if any, will be declared
at least once each year.
- - --------------------------------------------------------------------------------
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 options written 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.
- - --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended March 31, 1994 Year Ended September 30, 1993(1)
-------------------------------- --------------------------------
Shares Amount Shares Amount
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 145,770,553 $759,560,865 249,430,763 $1,264,793,607
Dividends and distributions reinvested 25,771,984 133,832,819 29,150,165 147,612,098
Redeemed (67,517,973) (349,790,960) (92,028,210) (466,783,446)
------------ ------------ ----------- ---------------
Net increase 104,024,564 $543,602,724 186,552,718 $945,622,259
------------ ------------ ----------- ---------------
------------ ------------ ----------- ---------------
Class B:
Sold 135,055,344 $704,827,257 133,631,433 $685,673,857
Dividends and distributions reinvested 6,379,311 33,152,415 1,974,080 10,213,941
Redeemed (8,179,806) (42,320,667) (2,370,976) (12,329,779)
------------ ------------ ----------- ---------------
Net increase 133,254,849 $695,659,005 133,234,537 $683,558,019
------------ ------------ ----------- ---------------
------------ ------------ ----------- ---------------
<FN>
1. For the year ended September 30, 1993 for Class A shares and for the period
from November 30, 1992 (inception of offering) to September 30, 1993 for
Class B shares.
</TABLE>
21 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- - --------------------------------------------------------------------------------
3. Unrealized Gains And Losses on Investments and Options Written
At March 31, 1994, net unrealized depreciation of investments and options
written of $158,723,357 was composed of gross appreciation of $59,054,994, and
gross depreciation of $217,778,351.
- - --------------------------------------------------------------------------------
4. Option Activity
Option activity for the six months ended March 31, 1994 was as follows:
<TABLE>
<CAPTION>
Put Options Call Options
------------ -------------
Number Amount Number Amount
of Options of Premiums of Options of Premiums
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at September 30, 1993 -- $-- 30,000 $3,914,062
- - ------------------------------------------------------------------------------------------------------------
Options written 954 139,079 49,750 8,256,250
- - ------------------------------------------------------------------------------------------------------------
Options expired prior to exercise -- -- (39,750) (6,350,000)
- - ------------------------------------------------------------------------------------------------------------
Options exercised -- -- (40,000) (5,820,312)
------------ ------------ ------------ --------------
Options outstanding at March 31, 1994 954 $139,079 -- $--
------------ ------------ ------------ --------------
------------ ------------ ------------ --------------
</TABLE>
5. Management Fees And Other Transactions With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .75% on the
first $200 million of net assets with a reduction of .03% on each $200 million
thereafter to $800 million, .60% on the next $200 million and .50% on net assets
in excess of $1 billion. The Manager has agreed to reimburse the Fund if
aggregate expenses (with specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
For the six months ended March 31, 1994, commissions (sales charges paid by
investors) on sales of Class A shares totaled $19,264,542, of which $5,232,235
was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. During the
six months ended March 31, 1994, OFDI received contingent deferred sales charges
of $897,597 upon redemption of Class B shares, as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OSS's total costs of providing such services are allocated
ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net
assets annually to reimburse OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other financial
institutions. In addition, Class B shares are subject to an asset-based sales
charge of .75% of net assets annually, to reimburse OFDI for sales commissions
paid from its own resources at the time of sale and associated financing costs.
In the event of termination or discontinuance of the Class B plan, the Board of
Trustees may allow the Fund to continue payment of the asset-based sales charge
to OFDI for distribution expenses incurred on Class B shares sold prior to
termination or discontinuance of the plan. During the six months ended March 31,
1994, OFDI paid $226,317 and $2,284, respectively, to an affiliated
broker/dealer as reimbursement for Class A and Class B personal service and
maintenance expenses and retained $4,979,906 as reimbursement for Class B sales
commissions and service fee advances, as well as financing costs.
22 Oppenheimer Strategic Income Fund
<PAGE>
- - --------------------------------------------------------------------------------
6. Restricted Securities
The Fund 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 Fund 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
$100,915,519, or 2.28% of the Fund's net assets, at March 31, 1994.
<TABLE>
<CAPTION>
Valuation Per Unit
Security Acquisition Date Cost Per Unit as of March 31, 1994
<S> <C> <C> <C>
Acadia Partners LP, 13% Sub. Nts., 10/1/97(1) 3/12/93 $100.00 $102.50
- - -------------------------------------------------------------------------------------------------------------------------------
American Restaurant Group, Inc., 12% Gtd. Sr. Sec. Nts., 9/15/98(1) 12/3/93 $99.01 $94.00
- - -------------------------------------------------------------------------------------------------------------------------------
Arizona Charlie's, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00 11/18/93--12/9/93 $100.00 $100.50
- - -------------------------------------------------------------------------------------------------------------------------------
Bankers Trust New York Co., 3% S&P 500
Equity-Linked Bank Nts., 5/9/94 2/1/94 $139.80 $238.07
- - -------------------------------------------------------------------------------------------------------------------------------
Becker Gaming, Inc. Wts., Exp. 11/00 11/18/93--12/9/93 $2.10 $3.00
- - -------------------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of):
Bonds, Banco Nacional de Desenvolvimento Economico e Social:
9.25%, 5/14/95(1) 3/8/94 $100.38 $100.00
10.375%, 4/27/98(1) 3/31/93 $99.75 $102.00
CD, Banco Nacion de Desolvimiento, 9.25%, 5/14/95 9/2/92-3/8/94 $98.77 $100.75
- - -------------------------------------------------------------------------------------------------------------------------------
Berg Electronics Holdings Corp., Preferred Stock(1) 4/28/93 $25.41 $26.00
- - -------------------------------------------------------------------------------------------------------------------------------
CMC Security Corp. III, 0% Collateralized Mtg. Oblig.,
Series 1994-E, Cl. E-B3, 3/25/24(1) 3/21/94 $75.88 $75.03
- - -------------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc.:
Units 1/10/94--1/21/94 $113.34 $119.08
Wts., Exp. 2/99 2/4/94--2/18/94 $0.00 $2.67
- - -------------------------------------------------------------------------------------------------------------------------------
Capital Queen & Casino, Inc., 12% Fst. Mtg. Nts., Series A, 11/15/00 11/18/93--12/17/93 $87.70 $90.00
- - -------------------------------------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(1) 10/5/93--1/18/94 $103.16 $102.50
- - -------------------------------------------------------------------------------------------------------------------------------
Chase Mortgage Finance Corp.:
Nts., 6.75%, 4/25/24(1) 3/22/94 $78.41 $77.48
Nts., 6.75%, 2/25/25(1) 3/21/94 $78.55 $77.34
Sub. Mtg. Pass-Through Certificates, Series 1994-1:
0%, Cl. B-8, 3/25/25(1) 3/22/94 $81.12 $79.93
0%, Cl. B-9, 3/25/25(1) 3/22/94 $80.89 $79.75
0%, Cl. B-10, 3/25/25(1) 3/22/94 $80.41 $79.31
- - ------------------------------------------------------------------------------------------------------------------------------
Dell Computer Corp., $7.00 Cv., Series A Preferred Stock(1) 1/24/94--2/2/94 $106.25 $117.00
- - ------------------------------------------------------------------------------------------------------------------------------
ECM Fund L.P.I.:
14% Sub. Nts., 6/10/02 4/14/92 $100.00 $112.15
Common Stock 4/14/92 $1,000.00 $1,000.00
- - ------------------------------------------------------------------------------------------------------------------------------
Empresas La Moderna SA, 10.25% Gtd. Nts., 11/12/97(1) 12/9/92 $98.05 $104.00
- - ------------------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Units(1) 9/28/93 $100.00 $102.13
- - ------------------------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Services, Inc., 6.50% Mtg. Pass-Through
Certificates, Series 1994-11, Cl. B3, 4/25/24(1) 3/11/94 $76.00 $73.81
- - ------------------------------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.50% Medium-Term Nts., 2/10/97(1) 6/30/93 $69.50 $88.00
- - ------------------------------------------------------------------------------------------------------------------------------
GPA Netherlands BV, 8.50% Medium-Term Nts., 3/3/97(1) 7/28/93 $72.75 $88.00
- - ------------------------------------------------------------------------------------------------------------------------------
GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10(1) 1/29/93 $102.40 $112.75
- - ------------------------------------------------------------------------------------------------------------------------------
General Media, Inc.:
Wts., Exp. 12/00(1) 12/15/93 $10.00 $15.00
10.625% Sr. Sec. Nts., 12/31/00(1) 12/14/93 $99.39 $99.50
- - ------------------------------------------------------------------------------------------------------------------------------
Grupo Mexicano de Desarrollo SA, 8.25% Gtd. Nts., 2/17/01(1) 2/8/94 $100.00 $91.00
- - ------------------------------------------------------------------------------------------------------------------------------
Haynes International, Inc., 11.25% Sr. Sec. Nts., 6/15/98(1) 6/30/93 $100.00 $100.25
- - ------------------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., 11/1/03(1) 10/20/93 $95.01 $95.00
- - ------------------------------------------------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01(1) 2/22/94 $92.39 $92.50
- - ------------------------------------------------------------------------------------------------------------------------------
Interco, Inc., 9% Sec. Nts., Series B, 6/1/04 10/14/92 $91.50 $98.13
</TABLE>
23 Oppenheimer Strategic Income Fund
<PAGE>
- - --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- - --------------------------------------------------------------------------------
6. Restricted Securities (continued)
<TABLE>
<CAPTION>
Valuation Per Unit
Security Acquisition Date Cost Per Unit as of March 31, 1994
- - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Jamaica (Government of) 1990 Refinancing Agreement Nts.,
Tranche B, 4.125%, 11/15/04 9/23/93 $ 68.28 $ 71.50
- - ----------------------------------------------------------------------------------------------------------------------
Kloster Cruise Ltd., 13% Sr. Sec. Nts., 5/1/03(1) 5/6/93--5/28/93 $102.75 $108.00
- - ----------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 3.10% S&P 500
Index-Linked Nts., 5/2/94 2/1/94 $139.20 $247.56
- - ----------------------------------------------------------------------------------------------------------------------
Maritime Group Ltd., Units(1) 2/16/94 $100.00 $ 98.35
- - ----------------------------------------------------------------------------------------------------------------------
Mary Kay Corp.:
12.75% Gtd. Sr. Nts., Series B, 12/6/00 12/11/92 $106.50 $104.50
10.25% Sr. Nts., 12/31/00 6/30/93--10/11/93 $101.03 $100.50
- - ----------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreements,
Tranche A, 4.50%, 1/1/09 2/23/94--3/4/94 $ 76.09 $ 62.60
- - ----------------------------------------------------------------------------------------------------------------------
Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02(1) 12/3/93--12/13/93 $100.80 $ 99.00
- - ----------------------------------------------------------------------------------------------------------------------
Penda Industries, Inc., 10.75% Sr. Nts., 3/1/04(1) 3/11/94 $100.00 $ 99.00
- - ----------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc.:
12% Sr. Sub. Nts., 11/1/03(1) 11/4/93 $ 91.10 $ 95.50
Wts., Exp. 11/03(1) 10/27/93 $ 3.18 $ 3.21
- - ----------------------------------------------------------------------------------------------------------------------
Prudential Agricultural Credit, Inc. Farmer Mac Agricultural
Real Estate Trust Sr. Sub. Mtg. Pass-Through Certificates:
9.18%, Series 1992-2, Cl. B2, 1/15/03 8/18/92 $ 74.47 $ 78.14
9.47%, Series 1992-2, Cl. B3, 4/15/09 8/18/92 $ 70.74 $ 77.14
- - ----------------------------------------------------------------------------------------------------------------------
Residential Funding Corp., 7.785% Mtg. Pass-Through Certificates,
Series 1993-6, Cl. B5, 6/15/23(1) 6/10/93 $ 82.11 $ 81.06
- - ----------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust,
11.625% Sr. Nts., 4/1/02(1) 3/24/94--3/31/94 $ 99.94 $ 98.63
- - ----------------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts.,
Series A, 12/28/08(1) 12/20/93--12/22/93 $100.43 $ 96.50
- - ----------------------------------------------------------------------------------------------------------------------
Terex Corp., Units(1) 3/23/94--3/30/94 $ 93.68 $ 95.00
- - ----------------------------------------------------------------------------------------------------------------------
Treasure Bay Gaming & Resorts, Inc., Units(1) 11/10/93--2/10/94 $101.17 $101.00
- - ----------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc.:
13.50% Sr. Nts., 1/15/02 1/13/92--1/23/92 $100.00 $ 50.00
Wts., Exp. 1/98 1/13/92--1/23/92 $ 0.00 $ 0.01
- - ----------------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts.
Series 1993-A, 12/1/11(1) 11/8/93--11/15/93 $100.00 $ 95.00
- - ----------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Bonds, Banco Venezuela
TCI, 0%, 12/13/98 7/13/93--7/15/93 $ 73.13 $ 77.00
</TABLE>
24 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
Oppenheimer Strategic Income Fund
A Series of Oppenheimer Strategic Funds Trust
- - -------------------------------------------------------------------------------
Officers and Trustees
James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
David P. Negri, Vice President
Arthur P. Steinmetz, Vice President
George C. Bowen, Vice President, Secretary, and Treasurer
Lynn M. Coluccy, Assistant Treasurer
Robert G. Zack, Assistant Secretary
- - -------------------------------------------------------------------------------
Investment Advisor Oppenheimer Management Corporation
- - -------------------------------------------------------------------------------
Distributor Oppenheimer Funds Distributor, Inc.
- - -------------------------------------------------------------------------------
Transfer and Shareholder
Servicing Agent
Oppenheimer Shareholder Services
- - -------------------------------------------------------------------------------
Custodian of Portfolio Securities The Bank of New York
- - -------------------------------------------------------------------------------
Independent Auditors Deloitte & Touche
- - -------------------------------------------------------------------------------
Legal Counsel Myer, Swanson & Adams, P.C.
The financial statements included herein have been taken from the records
of the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Strategic Income Fund.
This report must be preceded or accompanied by a Prospectus of Oppenheimer
Strategic Income Fund. For material information concerning the Fund,
see the Prospectus.
25 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
The Family of OppenheimerFunds
- - --------------------------------------------------------------------------------
OppenheimerFunds offers over 35 funds designed to fit virtually every investment
goal. Whether you're investing for retirement, your children's education, or
tax-free income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing that
you are investing with a respected financial institution with over 30 years of
experience in helping people just like you reach their financial goals. And
you're investing with a leader in global, growth stock, and flexible fixed
income investments--with over 1.8 million shareholder accounts and more
than 26 billion under Oppenheimer's management and that of our affiliates.
As an OppenheimerFunds shareholder, you can easily exchange shares of
eligible funds of the same class by mail or by telephone for a small
administrative fee.(1) For more information on OppenheimerFunds, please
contact your financial advisor or call us at 1-800-525-7048 for a prospectus.
You may also write us at the address shown on the back cover. As always, please
read the prospectus carefully before you invest.
- - -------------------------------------------------------------------------------
Specialty Stock Funds
Global Bio-Tech Fund
Global Environment Fund
Gold & Special Minerals Fund
- - -----------------------------------------------------------------------------
Stock Funds
Discovery Fund
Time Fund
Target Fund
Special Fund
Global Fund
Oppenheimer Fund
Value Stock Fund
- - -------------------------------------------------------------------------------
Stock and Bond Funds
Main Street Income & Growth Fund
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Equity Income Fund
Asset Allocation Fund
- - -------------------------------------------------------------------------------
Bond Funds
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Strategic Investment Grade Bond Fund
Strategic Short-Term Income Fund
Investment Grade Bond Fund
Mortgage Income Fund
U.S. Government Trust
Limited-Term Government(2)
- - -------------------------------------------------------------------------------
Tax-Exempt Funds
New York Tax-Exempt Fund(3)
California Tax-Exempt Fund(3)
Pennsylvania Tax-Exempt Fund(3)
Florida Tax-Exempt Fund(3)
New Jersey Tax-Exempt Fund(3)
Tax-Free Bond Fund
Insured Tax-Exempt Bond Fund
Intermediate Tax-Exempt Bond Fund
- - -------------------------------------------------------------------------------
Money Market Funds
Money Market Fund
Cash Reserves
Tax-Exempt Cash Reserves
1. The fee is waived for PhoneLink exchanges between existing accounts. Exchange
privileges are subject to change or termination.
2. Formerly Government Securities Fund.
3. Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1994 Oppenheimer Management Corporation. All rights reserved.
26 Oppenheimer Strategic Income Fund
<PAGE>
- - -------------------------------------------------------------------------------
``How may I help you?''
- - -------------------------------------------------------------------------------
``Just as OppenheimerFunds offers over 35 different mutual funds designed to
help meet virtually every investment need, Oppenheimer Shareholder Services
offers a variety of services to satisfy your individual needs. Whenever you
require help, we're only a toll-free phone call away.
``For personalized assistance and account information, call our General
Information number to speak with our knowledgeable Customer Service
Representatives and get the help you need.
``When you want to make account transactions, it's easy for you to
redeem shares, exchange shares, or conduct AccountLink transactions,
simply by calling our Telephone Transactions number.
``And for added convenience, OppenheimerFunds' PhoneLink, an
automated voice response system, is available 24 hours a day, 7 days
a week. PhoneLink gives you access to a variety of fund, account, and
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to the left.
``When you invest in OppenheimerFunds, you know you'll receive a high
level of customer service. The International Customer Service Association
knows it, too, as it awarded Oppenheimer Shareholder Services a 1993 Award
of Excellence for consistently demonstrating superior customer service.
``Whatever your needs, we're ready to assist you.''
1993 AWARD OF EXCELLENCE LOGO
B&W PHOTO
Barbara Hennigar
Chief Executive Officer
Oppenheimer Shareholder Services
General Information
1-800-525-7048
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