OPPENHEIMER STRATEGIC DIVERSIFIED INCOME FUND
Supplement dated April 25, 1994 to the
Statement of Additional Information dated February 1, 1994
The Statement of Additional Information is hereby amended as follows:
The third paragraph in the section captioned "Investment Management
Services" is deleted in its entirety and is replaced with the following:
The Agreement contains no expense limitation. However,
independently of the Agreement, the Manager has voluntarily agreed
to reimburse the Fund if aggregate expenses (with specified
exceptions) exceed the most stringent state regulatory limitation on
Fund expenses applicable to the Fund. At present, this limitation,
imposed by California, limits such expenses to 2.5% of the first $30
million of average annual net assets, 2.0% of the next $70 million,
and 1.5% of average annual net assets in excess of $100 million. In
addition, independently of the Agreement, the Manager has voluntarily
agreed to assume any expenses of the Fund in a fiscal year to the
extent required to enable the Fund to accrue income, net of expenses,
to allow the Fund to pay dividends at the annualized rate of $.375
per share (pro rated for the Fund's first fiscal period, which will
be eight months). Effective May 15, 1994, the Manager has
voluntarily agreed to assume any expenses of the Fund in a fiscal
year to the extent required to enable the Fund to accrue income, net
of expenses, to allow the Fund to pay dividends at the annualized
rate of $.3525 per share. The Fund may not necessarily pay all of
its accrued income as dividends each month. The payment of the
management fee at the end of the month will be reduced so that there
will not be any accrued but unpaid liability under these expense
limitations. The Manager reserves the right to terminate or amend
either of these undertakings at any time. Any assumption of the
Fund's expenses under either undertaking would lower the Fund's
overall expense ratio and increase its total return during any period
in which expenses are limited.
April 25, 1994 PA387
