<PAGE> PAGE 1
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000 C000000 850134
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011 C04AA01 0203
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<PAGE> PAGE 2
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012 C04AA01 3924
013 A00AA01 DELOITTE & TOUCHE LLP
013 B01AA01 DENVER
013 B02AA01 CO
013 B03AA01 80202
015 A00AA01 THE BANK OF NEW YORK
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015 C02AA01 NY
015 C03AA01 10015
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020 A000001 PAINEWEBBER, INC.
020 B000001 13-2638166
020 C000001 273
020 A000002 R.J. OBRIEN SECURITIES (RJO SECURITIES INC.
020 B000002 36-3233364
020 C000002 202
020 A000003 AUTRANET, INC.
020 B000003 13-2961507
020 C000003 127
020 A000004 GOLDMAN, SACHS & CO.
020 B000004 13-5108880
020 C000004 125
020 A000005 CAPITAL INSTITUTIONAL SERVICES, INC.
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020 C000005 121
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020 C000008 45
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020 C000009 7
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020 B000010 13-2650272
020 C000010 2
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022 A000001 LEHMAN BROTHERS, INC.
022 B000001 13-2518466
022 C000001 5557079
022 D000001 4275711
<PAGE> PAGE 3
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022 B000002 13-3082694
022 C000002 3776638
022 D000002 3663502
022 A000003 GREENWICH SECURITIES, INC.
022 B000003 13-2697091
022 C000003 1847526
022 D000003 1948360
022 A000004 GOLDMAN, SACHS & CO.
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022 C000004 2142033
022 D000004 1484688
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022 C000005 1678602
022 D000005 1348965
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022 B000006 13-3299429
022 C000006 970626
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022 C000007 1831900
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022 B000008 13-2655998
022 C000008 859871
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022 A000009 CAPITAL INSTITUTIONAL SERVICES, INC.
022 B000009 75-1565705
022 C000009 399293
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SIGNATURE GEORGE BOWEN
TITLE TREASURER
Return of Capital
The Fund adjusts the classification of distributions to shareholders to reflect
the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, during the year ended
September 30, 1998, amounts have been reclassified to reflect a decrease in
undistributed net investment income of $19,735,915, a decrease in accumulated
net realized loss on investments of $19,735,991, and a decrease in paid-in
capital of $76.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<CIK> 850134
<NAME> OPPENHEIMER STRATEGIC INCOME FUND-A
<SERIES>
<NUMBER> 1
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<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,140,329,263
<INVESTMENTS-AT-VALUE> 8,711,705,231
<RECEIVABLES> 392,384,717
<ASSETS-OTHER> 532,201
<OTHER-ITEMS-ASSETS> 7,802,504
<TOTAL-ASSETS> 9,112,424,653
<PAYABLE-FOR-SECURITIES> 412,376,633
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,267,579,090
<SHARES-COMMON-STOCK> 859,824,418
<SHARES-COMMON-PRIOR> 801,890,287
<ACCUMULATED-NII-CURRENT> 8,969,641
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (200,068,457)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (427,466,469)
<NET-ASSETS> 3,950,818,199
<DIVIDEND-INCOME> 22,017,069
<INTEREST-INCOME> 776,441,575
<OTHER-INCOME> 0
<EXPENSES-NET> 111,143,954
<NET-INVESTMENT-INCOME> 687,314,690
<REALIZED-GAINS-CURRENT> (48,281,873)
<APPREC-INCREASE-CURRENT> (616,167,861)
<NET-CHANGE-FROM-OPS> 22,864,956
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 340,411,302
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 226,516,643
<NUMBER-OF-SHARES-REDEEMED> 216,278,686
<SHARES-REINVESTED> 47,696,173
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 850134
<NAME> OPPENHEIMER STRATEGIC INCOME FUND-B
<SERIES>
<NUMBER> 1
<NAME> OPPENHEIMER STRATEGIC FUND
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<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,140,329,263
<INVESTMENTS-AT-VALUE> 8,711,705,231
<RECEIVABLES> 392,384,717
<ASSETS-OTHER> 532,201
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<PAYABLE-FOR-SECURITIES> 412,376,633
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<NET-CHANGE-FROM-OPS> 22,864,956
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<OVERDIST-NET-GAINS-PRIOR> 0
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<AVERAGE-NET-ASSETS> 3,871,397,084
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 850134
<NAME> OPPENHEIMER STRATEGIC INCOME FUND-C
<SERIES>
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<NAME> OPPENHEIMER STRATEGIC FUND
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<ASSETS-OTHER> 532,201
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<TOTAL-ASSETS> 9,112,424,653
<PAYABLE-FOR-SECURITIES> 412,376,633
<SENIOR-LONG-TERM-DEBT> 0
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,267,579,090
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<DIVIDEND-INCOME> 22,017,069
<INTEREST-INCOME> 776,441,575
<OTHER-INCOME> 0
<EXPENSES-NET> 111,143,954
<NET-INVESTMENT-INCOME> 687,314,690
<REALIZED-GAINS-CURRENT> (48,281,873)
<APPREC-INCREASE-CURRENT> (616,167,861)
<NET-CHANGE-FROM-OPS> 22,864,956
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 41,285,457
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 80,636,266
<NUMBER-OF-SHARES-REDEEMED> 29,095,369
<SHARES-REINVESTED> 5,966,978
<NET-CHANGE-IN-ASSETS> 762,123,295
<ACCUMULATED-NII-PRIOR> 16,158,180
<ACCUMULATED-GAINS-PRIOR> (171,522,575)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 44,320,889
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</TABLE>
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<NAME> OPPENHEIMER STRATEGIC INCOME FUND-Y
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<AVG-DEBT-OUTSTANDING> 0
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Independant Auditors Report
October 28, 1998
To the Board of Trustees of
Oppenheimer Strategic Income Fund:
In planning and performing our audit of the financial statements of Oppenheimer
Strategic Income Fund (the "Fund") for the year ended September 30, 1998 (on
which we have issued our report dated October 28, 1998), we considered its
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, and not to provide assurance on the Fund's internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, error or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the Fund's internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving the
Fund's internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
September 30, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees of Oppenheimer Strategic Income Fund, and the Securities and
Exchange Commission.
Yours truly,
