SECURITIES AND EXCHANGE COMMISSION
INVESTMENT COMPANIES
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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Top Ten Common Stock Industries | ||||
Pharmaceuticals | 8.9 | % | ||
Oil, Gas & Consumable Fuels | 8.7 | |||
Insurance | 7.7 | |||
Diversified Telecommunication Services | 5.1 | |||
Commercial Banks | 4.9 | |||
Diversified Financial Services | 4.7 | |||
Electric Utilities | 3.7 | |||
Food & Staples Retailing | 3.4 | |||
Multiline Retail | 2.7 | |||
Software | 2.6 |
Top Ten Common Stock Holdings | ||||
JPMorgan Chase & Co. | 3.3 | % | ||
MetLife, Inc. | 2.8 | |||
Pfizer, Inc. | 2.7 | |||
Microsoft Corp. | 2.6 | |||
Wells Fargo & Co. | 2.4 | |||
Merck & Co., Inc. | 2.3 | |||
Chevron Corp. | 2.2 | |||
AT&T, Inc. | 2.1 | |||
Everest Re Group Ltd. | 1.8 | |||
Exxon Mobil Corp. | 1.6 |
8 | OPPENHEIMER EQUITY INCOME FUND, INC.
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9 | OPPENHEIMER EQUITY INCOME FUND, INC.
10 | OPPENHEIMER EQUITY INCOME FUND, INC.
11 | OPPENHEIMER EQUITY INCOME FUND, INC.
Beginning | Ending | Expenses | ||||||||||
Account | Account | Paid During | ||||||||||
Value | Value | 6 Months Ended | ||||||||||
November 1, 2010 | April 29, 2011 | April 29, 20111,2 | ||||||||||
Actual | ||||||||||||
Class A | $ | 1,000.00 | $ | 1,174.30 | $ | 5.97 | ||||||
Class B | 1,000.00 | 1,168.40 | 10.96 | |||||||||
Class C | 1,000.00 | 1,169.30 | 10.05 | |||||||||
Class N | 1,000.00 | 1,171.70 | 8.17 | |||||||||
Class Y | 1,000.00 | 1,035.20 | 1.16 | |||||||||
Hypothetical (5% return before expenses) | ||||||||||||
Class A | 1,000.00 | 1,019.18 | 5.54 | |||||||||
Class B | 1,000.00 | 1,014.60 | 10.18 | |||||||||
Class C | 1,000.00 | 1,015.44 | 9.34 | |||||||||
Class N | 1,000.00 | 1,017.16 | 7.59 | |||||||||
Class Y | 1,000.00 | 1,021.30 | 3.39 |
1. | Actual expenses paid for Classes A, B, C, and N are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 180/365 (to reflect the one-half year period). Actual expenses paid for Class Y are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 61/365 to reflect the period from February 28, 2011 (inception of offering) to April 29, 2011. | |
2. | Hypothetical expenses paid for all classes are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 180/365 (to reflect the one-half year period). |
Class | Expense Ratios | |||
Class A | 1.11 | % | ||
Class B | 2.04 | |||
Class C | 1.87 | |||
Class N | 1.52 | |||
Class Y | 0.68 |
12 | OPPENHEIMER EQUITY INCOME FUND, INC.
Shares | Value | |||||||
Common Stocks—79.5% | ||||||||
Consumer Discretionary—8.8% | ||||||||
Auto Components—0.6% | ||||||||
Lear Corp. | 262,900 | $ | 13,444,706 | |||||
Automobiles—0.1% | ||||||||
Ford Motor Co.1 | 73,840 | 1,142,305 | ||||||
Hotels, Restaurants & Leisure—0.6% | ||||||||
Wyndham | ||||||||
Worldwide Corp.2 | 372,500 | 12,892,225 | ||||||
Household Durables—0.6% | ||||||||
MDC Holdings, Inc.2 | 480,000 | 14,011,200 | ||||||
Leisure Equipment & Products—0.2% | ||||||||
Mattel, Inc.2 | 150,000 | 4,008,000 | ||||||
Media—2.1% | ||||||||
Cinemark Holdings, Inc.2 | 665,000 | 13,519,450 | ||||||
Comcast Corp., Cl. A Special, Non-Vtg. | 742,500 | 18,228,375 | ||||||
Time Warner Cable, Inc. | 217,500 | 16,993,275 | ||||||
48,741,100 | ||||||||
Multiline Retail—2.7% | ||||||||
Kohl’s Corp.2 | 630,000 | 33,207,300 | ||||||
Target Corp. | 565,000 | 27,741,500 | ||||||
60,948,800 | ||||||||
Specialty Retail—1.9% | ||||||||
Foot Locker, Inc. | 1,450,000 | 31,204,000 | ||||||
Lowe’s Cos., Inc.2 | 480,000 | 12,600,000 | ||||||
OfficeMax, Inc.1 | 5,700 | 56,772 | ||||||
43,860,772 | ||||||||
Consumer Staples—7.7% | ||||||||
Beverages—0.4% | ||||||||
PepsiCo, Inc.2 | 120,750 | 8,318,468 | ||||||
Food & Staples Retailing—3.4% | ||||||||
CVS Caremark Corp. | 500,000 | 18,120,000 | ||||||
Kroger Co. (The) | 1,000,000 | 24,310,000 | ||||||
Wal-Mart Stores, Inc. | 206,750 | 11,367,115 | ||||||
Walgreen Co.2 | 560,000 | 23,923,200 | ||||||
77,720,315 | ||||||||
Food Products—1.3% | ||||||||
Archer-Daniels-Midland Co. | 350,000 | 12,957,000 | ||||||
Kraft Foods, Inc., Cl. A | 505,000 | 16,957,900 | ||||||
29,914,900 | ||||||||
Household Products—0.4% | ||||||||
Procter & Gamble Co. (The) | 129,000 | 8,372,100 | ||||||
Tobacco—2.2% | ||||||||
Lorillard, Inc.2 | 260,000 | 27,690,000 | ||||||
Philip Morris International, Inc.2 | 300,000 | 20,832,000 | ||||||
48,522,000 | ||||||||
Energy—10.8% | ||||||||
Energy Equipment & Services—2.1% | ||||||||
Ensco plc, Sponsored ADR2 | 367,500 | 21,910,350 | ||||||
Halliburton Co.2 | 487,500 | 24,609,000 | ||||||
46,519,350 | ||||||||
Oil, Gas & Consumable Fuels—8.7% | ||||||||
Chevron Corp.2 | 457,500 | 50,068,800 | ||||||
CONSOL Energy, Inc.2 | 475,000 | 25,692,750 | ||||||
Exxon Mobil Corp.2 | 405,000 | 35,640,000 | ||||||
Kinder Morgan Management LLC1 | 1 | 37 | ||||||
Kinder Morgan, Inc. | 700,000 | 20,006,000 | ||||||
Marathon Oil Corp.2 | 415,000 | 22,426,600 | ||||||
Royal Dutch Shell plc, ADR | 392,500 | 30,410,900 | ||||||
Targa Resources Corp. | 337,500 | 11,819,250 | ||||||
196,064,337 | ||||||||
Financials—21.5% | ||||||||
Capital Markets—2.2% | ||||||||
Goldman Sachs Group, Inc. (The) | 165,000 | 24,916,650 | ||||||
Morgan Stanley | 925,000 | 24,188,750 | ||||||
49,105,400 |
13 | OPPENHEIMER EQUITY INCOME FUND, INC.
Shares | Value | |||||||
Commercial Banks—4.9% | ||||||||
CIT Group, Inc.1 | 790,000 | $ | 33,543,400 | |||||
U.S. Bancorp2 | 880,000 | 22,721,600 | ||||||
Wells Fargo & Co. | 1,825,000 | 53,125,750 | ||||||
109,390,750 | ||||||||
Diversified Financial Services—4.7% | ||||||||
JPMorgan Chase & Co.2 | 1,607,500 | 73,350,225 | ||||||
KKR Financial Holdings LLC | 3,175,000 | 32,067,500 | ||||||
105,417,725 | ||||||||
Insurance—7.7% | ||||||||
Assured Guaranty Ltd. | 1,100,000 | 18,700,000 | ||||||
Everest Re Group Ltd.2 | 440,000 | 40,092,800 | ||||||
Genworth Financial, Inc., Cl. A | 642,500 | 7,832,075 | ||||||
MetLife, Inc. | 1,362,500 | 63,751,375 | ||||||
Old Republic International Corp. | 1,365,000 | 17,294,550 | ||||||
XL Group plc | 1,000,000 | 24,420,000 | ||||||
172,090,800 | ||||||||
Real Estate Investment Trusts—2.0% | ||||||||
Apollo Commercial Real Estate Finance, Inc.2,3 | 1,025,000 | 16,748,500 | ||||||
Cypress Sharpridge Investments, Inc. | 970,000 | 11,979,500 | ||||||
Starwood Property Trust, Inc. | 765,000 | 17,434,350 | ||||||
46,162,350 | ||||||||
Thrifts & Mortgage Finance—0.0% | ||||||||
PMI Group, Inc. (The)1 | 100,000 | 216,000 | ||||||
Health Care—9.6% | ||||||||
Biotechnology—0.3% | ||||||||
PDL BioPharma, Inc. | 1,210,000 | 7,768,200 | ||||||
Health Care Equipment & Supplies—0.1% | ||||||||
Medtronic, Inc. | 25,000 | 1,043,750 | ||||||
Health Care Providers & Services—0.3% | ||||||||
UnitedHealth Group, Inc.2 | 115,000 | 5,661,450 | ||||||
Pharmaceuticals—8.9% | ||||||||
Abbott Laboratories2 | 455,000 | 23,678,200 | ||||||
GlaxoSmithKline plc, ADR | 525,000 | 22,921,500 | ||||||
Johnson & Johnson2 | 138,750 | 9,118,650 | ||||||
Merck & Co., Inc. | 1,450,000 | 52,127,500 | ||||||
Pfizer, Inc. | 2,850,000 | 59,736,000 | ||||||
Teva Pharmaceutical Industries Ltd., Sponsored ADR | 725,000 | 33,154,250 | ||||||
200,736,100 | ||||||||
Industrials—4.5% | ||||||||
Aerospace & Defense—1.7% | ||||||||
General Dynamics Corp. | 310,000 | 22,574,200 | ||||||
Lockheed Martin Corp.2 | 185,000 | 14,661,250 | ||||||
37,235,450 | ||||||||
Industrial Conglomerates—1.0% | ||||||||
General Electric Co. | 230,000 | 4,703,500 | ||||||
Tyco International Ltd.2 | 382,500 | 18,643,050 | ||||||
23,346,550 | ||||||||
Machinery—0.0% | ||||||||
Ingersoll-Rand plc | 12,500 | 631,250 | ||||||
Marine—1.0% | ||||||||
Box Ships, Inc.1,3 | 1,250,000 | 14,137,500 | ||||||
Costamare, Inc. | 485,000 | 8,371,100 | ||||||
22,508,600 | ||||||||
Road & Rail—0.2% | ||||||||
Norfolk Southern Corp.2 | 60,000 | 4,480,800 | ||||||
Trading Companies & Distributors—0.6% | ||||||||
Aircastle Ltd.2 | 1,000,000 | 12,460,000 | ||||||
Information Technology—5.8% | ||||||||
Communications Equipment—1.0% | ||||||||
QUALCOMM, Inc.2 | 405,000 | 23,020,200 |
14 | OPPENHEIMER EQUITY INCOME FUND, INC.
Shares | Value | |||||||
Electronic Equipment & Instruments—0.5% | ||||||||
Corning, Inc. | 475,000 | $ | 9,946,500 | |||||
Office Electronics—0.3% | ||||||||
Xerox Corp. | 725,000 | 7,315,250 | ||||||
Semiconductors & Semiconductor Equipment—1.4% | ||||||||
Intel Corp. | 1,175,000 | 27,248,250 | ||||||
Intersil Corp., Cl. A2 | 200,000 | 2,954,000 | ||||||
30,202,250 | ||||||||
Software—2.6% | ||||||||
Microsoft Corp. | 2,275,000 | 59,195,500 | ||||||
Materials—1.4% | ||||||||
Chemicals—0.3% | ||||||||
LyondellBasell Industries NV, Cl. A1 | 132,500 | 5,896,250 | ||||||
Metals & Mining—0.2% | ||||||||
Xstrata plc, Unsponsored ADR | 950,000 | 4,854,500 | ||||||
Paper & Forest Products—0.9% | ||||||||
International Paper Co. | 685,000 | 21,152,800 | ||||||
Telecommunication Services—5.1% | ||||||||
Diversified Telecommunication Services—5.1% | ||||||||
AT&T, Inc.2 | 1,523,900 | 47,423,768 | ||||||
CenturyLink, Inc.2 | 850,000 | 34,663,000 | ||||||
Consolidated Communications Holdings, Inc.2 | 790,000 | 14,528,100 | ||||||
Frontier Communications Corp.2 | 2,325,000 | 19,227,750 | ||||||
115,842,618 | ||||||||
Utilities—4.3% | ||||||||
Electric Utilities—3.7% | ||||||||
American Electric Power Co., Inc. | 450,000 | 16,416,000 | ||||||
Edison International, Inc. | 530,000 | 20,813,100 | ||||||
Entergy Corp.2 | 310,000 | 21,613,200 | ||||||
FirstEnergy Corp.2 | 540,000 | 21,578,400 | ||||||
PPL Corp. | 132,970 | 3,647,367 | ||||||
84,068,067 | ||||||||
Multi-Utilities—0.6% | ||||||||
National Grid plc, Sponsored ADR | 262,750 | 13,486,957 | ||||||
Total Common Stocks (Cost $1,547,518,297) | 1,787,716,645 | |||||||
Preferred Stocks—5.9% | ||||||||
Apache Corp., 6% Cv., Series D, Non-Vtg. | 150,000 | 10,557,000 | ||||||
Citigroup, Inc., 7.50% Cv. | 300,000 | 39,012,000 | ||||||
General Motors Co., 4.75% Cv., Series B, Non-Vtg. | 1,175,000 | 58,526,750 | ||||||
Hartford Financial Services Group, Inc. (The), 7.25% Cv., Series F, Non-Vtg. | 365,000 | 9,818,500 | ||||||
PPL Corp., 8.75% Cv.1 | 100,000 | 5,339,000 | ||||||
Synovus Financial Corp., 8.25% Cv. | 395,000 | 9,357,550 | ||||||
Total Preferred Stocks (Cost $127,921,770) | 132,610,800 | |||||||
Principal | ||||||||
Amount | ||||||||
Convertible Corporate Bonds and Notes—9.0% | ||||||||
AMR Corp., 6.25% Cv. Sr. Unsec. Nts., 10/15/14 | $ | 22,750,000 | 22,693,125 | |||||
CNO Financial Group, Inc.: | ||||||||
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/164 | 4,907,000 | 8,170,155 | ||||||
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 | 13,816,000 | 23,159,761 | ||||||
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 | 608,000 | 1,019,190 | ||||||
Continental Airlines, Inc., 4.50% Cv. Sr. Unsec. Unsub. Nts., 1/15/15 | 20,000,000 | 28,375,000 | ||||||
General Cable Corp., 4.50% Cv. Unsec. Sub. Nts., 11/15/295 | 18,250,000 | 28,105,000 | ||||||
MGIC Investment Corp., 9% Cv. Jr. Unsec. Sub. Bonds, 4/1/634 | 29,750,000 | 30,568,125 |
15 | OPPENHEIMER EQUITY INCOME FUND, INC.
Principal | ||||||||
Amount | Value | |||||||
Convertible Corporate Bonds and Notes Continued | ||||||||
Navistar International Corp., 3% Cv. Sr. Sub. Nts., 10/15/14 | $ | 9,750,000 | $ | 14,880,938 | ||||
PMI Group, Inc. (The), 4.50% Cv. Sr. Nts., 4/15/20 | 21,250,000 | 15,007,813 | ||||||
Radian Group, Inc., 3% Cv. Sr. Unsec. Unsub. Nts., 11/15/17 | 10,500,000 | 8,675,625 | ||||||
Rite Aid Corp., 8.50% Cv. Sr. Unsec. Unsub. Nts., 5/15/15 | 21,704,000 | 22,327,990 | ||||||
Total Convertible Corporate Bonds and Notes (Cost $183,605,440) | 202,982,722 | |||||||
Structured Securities—5.6% | ||||||||
Barclays Bank plc: | ||||||||
Allegheny Technologies, Inc. Yield Enhanced Equity Linked Debt Securities | 132,956 | 8,708,618 | ||||||
Celanese Corp. Yield Enhanced Equity Linked Debt Securities | 236,263 | 10,731,065 | ||||||
Lear Corp. Yield Enhanced Equity Linked Debt Securities | 499,951 | 25,280,022 | ||||||
Citigroup Funding, Inc., Ford Motor Co. Premium Equity Redemption Quarterly-pay Securities | 677,049 | 10,441,314 | ||||||
Credit Suisse AG, Sprint Nextel Corp. Equity Linked Nts. | 2,285,000 | 11,333,600 | ||||||
Deutsche Bank AG, London: | ||||||||
Ford Motor Co. Equity Linked Nts.6 | 628,200 | 9,690,927 | ||||||
Lear Corp. Equity Linked Nts.6 | 102,000 | 10,510,080 | ||||||
Goldman Sachs Group, Inc. (The): | ||||||||
Apple, Inc. Equity Linked Nts.6 | 29,650 | 10,272,792 | ||||||
OfficeMax, Inc. Equity Linked Nts.6 | 740,750 | 7,971,211 | ||||||
Morgan Stanley: | ||||||||
Ford Motor Co. Performance Equity Linked Redemption Quarterly-pay Securities4 | 684,000 | 10,584,900 | ||||||
Kohls Corp. Equity Linked Nts.4 | 194,750 | 10,314,934 | ||||||
Total Structured Securities (Cost $122,242,171) | 125,839,463 | |||||||
Shares | ||||||||
Investment Company—0.8% | ||||||||
Oppenheimer Institutional Money Market Fund, Cl. E, 0.19%3,7 (Cost $17,107,435) | 17,107,435 | 17,107,435 | ||||||
Total Investments, at Value (Cost $1,998,395,113) | 100.8 | % | 2,266,257,065 | |||||
Liabilities Excess of Other Assets | (0.8 | ) | (18,089,929 | ) | ||||
Net Assets | 100.0 | % | $ | 2,248,167,136 | ||||
Footnotes to Statement of Investments | ||
* | April 29, 2011 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
1. | Non-income producing security. | |
2. | All or a portion of the security position is held in collateralized accounts to cover potential obligations with respect to outstanding written options. See Note 5 of the accompanying Notes. |
16 | OPPENHEIMER EQUITY INCOME FUND, INC.
3. | Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended April 29, 2011, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows: |
Shares | Gross | Gross | Shares | |||||||||||||
October 29, 2010a | Additions | Reductions | April 29, 2011 | |||||||||||||
Apollo Commercial Real Estate Finance, Inc. | 700,000 | 325,000 | — | 1,025,000 | ||||||||||||
Box Ships, Inc. | — | 1,250,000 | — | 1,250,000 | ||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E | 53,169,685 | 326,361,075 | 362,423,325 | 17,107,435 |
Value | Income | |||||||
Apollo Commercial Real Estate Finance, Inc. | $ | 16,748,500 | $ | 541,570 | ||||
Box Ships, Inc. | 14,137,500 | — | ||||||
Oppenheimer Institutional Money Market Fund, Cl. E | 17,107,435 | 76,790 | ||||||
$ | 47,993,435 | $ | 618,360 | |||||
a. | October 29, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes. |
4. | Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Directors. These securities amount to $59,638,114 or 2.65% of the Fund’s net assets as of April 29, 2011. | |
5. | Represents the current interest rate for a variable or increasing rate security. | |
6. | Restricted security. The aggregate value of restricted securities as of April 29, 2011 was $38,445,010, which represents 1.71% of the Fund’s net assets. See Note 6 of the accompanying Notes. Information concerning restricted securities is as follows: |
Unrealized | ||||||||||||||||
Acquisition | Appreciation | |||||||||||||||
Security | Date | Cost | Value | (Depreciation) | ||||||||||||
Deutsche Bank AG, London, Ford Motor Co. Equity Linked Nts. | 4/26/11 | $ | 10,000,944 | $ | 9,690,927 | $ | (310,017 | ) | ||||||||
Deutsche Bank AG, London, Lear Corp. Equity Linked Nts. | 12/20/10 | 10,001,100 | 10,510,080 | 508,980 | ||||||||||||
Goldman Sachs Group, Inc. (The), Apple, Inc. Equity Linked Nts. | 4/8/11 | 10,003,317 | 10,272,792 | 269,475 | ||||||||||||
Goldman Sachs Group, Inc. (The), OfficeMax, Inc. Equity Linked Nts. | 3/1/11 | 10,000,125 | 7,971,211 | (2,028,914 | ) | |||||||||||
$ | 40,005,486 | $ | 38,445,010 | $ | (1,560,476 | ) | ||||||||||
7. | Rate shown is the 7-day yield as of April 29, 2011. |
17 | OPPENHEIMER EQUITY INCOME FUND, INC.
Level 2— | ||||||||||||||||
Level 1— | Other | Level 3— | ||||||||||||||
Unadjusted | Significant | Significant | ||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||
Prices | Inputs | Inputs | Value | |||||||||||||
Assets Table | ||||||||||||||||
Investments, at Value: | ||||||||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 199,049,108 | $ | — | $ | — | $ | 199,049,108 | ||||||||
Consumer Staples | 172,847,783 | — | — | 172,847,783 | ||||||||||||
Energy | 242,583,687 | — | — | 242,583,687 | ||||||||||||
Financials | 482,383,025 | — | — | 482,383,025 | ||||||||||||
Health Care | 215,209,500 | — | — | 215,209,500 | ||||||||||||
Industrials | 100,662,650 | — | — | 100,662,650 | ||||||||||||
Information Technology | 129,679,700 | — | — | 129,679,700 | ||||||||||||
Materials | 31,903,550 | — | — | 31,903,550 | ||||||||||||
Telecommunication Services | 115,842,618 | — | — | 115,842,618 | ||||||||||||
Utilities | 97,555,024 | — | — | 97,555,024 | ||||||||||||
Preferred Stocks | 19,914,550 | 112,696,250 | — | 132,610,800 | ||||||||||||
Convertible Corporate Bonds and Notes | — | 202,982,722 | — | 202,982,722 | ||||||||||||
Structured Securities | — | 125,839,463 | — | 125,839,463 | ||||||||||||
Investment Company | 17,107,435 | — | — | 17,107,435 | ||||||||||||
Total Assets | $ | 1,824,738,630 | $ | 441,518,435 | $ | — | $ | 2,266,257,065 | ||||||||
Liabilities Table | ||||||||||||||||
Other Financial Instruments: | ||||||||||||||||
Appreciated options written, at value | $ | (1,784,497 | ) | $ | — | $ | — | $ | (1,784,497 | ) | ||||||
Depreciated options written, at value | (14,495,951 | ) | — | — | (14,495,951 | ) | ||||||||||
Total Liabilities | $ | (16,280,448 | ) | $ | — | $ | — | $ | (16,280,448 | ) | ||||||
Unrealized | ||||||||||||||||||||||||||||
Number of | Exercise | Expiration | Premiums | Appreciation/ | ||||||||||||||||||||||||
Description | Type | Contracts | Price | Date | Received | Value | (Depreciation) | |||||||||||||||||||||
Abbott Laboratories | Call | 300 | $ | 52.50 | 5/23/11 | $ | 14,395 | $ | (14,100 | ) | $ | 295 | ||||||||||||||||
Apple, Inc. | Put | 450 | 335.00 | 5/23/11 | 383,617 | (111,150 | ) | 272,467 | ||||||||||||||||||||
Bank of America Corp. | Put | 14,500 | 14.00 | 5/23/11 | 1,242,891 | (2,450,500 | ) | (1,207,609 | ) | |||||||||||||||||||
Chevron Corp. | Call | 450 | 110.00 | 5/23/11 | 42,073 | (64,800 | ) | (22,727 | ) | |||||||||||||||||||
Chevron Corp. | Call | 75 | 105.00 | 5/23/11 | 20,753 | (36,375 | ) | (15,622 | ) | |||||||||||||||||||
Cinemark Holdings, Inc. | Call | 1,250 | 20.00 | 5/23/11 | 73,605 | (81,250 | ) | (7,645 | ) | |||||||||||||||||||
Cisco Systems, Inc. | Put | 8,250 | 19.00 | 5/23/11 | 1,385,426 | (1,452,000 | ) | (66,574 | ) | |||||||||||||||||||
CONSOL Energy, Inc. | Call | 75 | 50.00 | 5/23/11 | 10,574 | (37,500 | ) | (26,926 | ) | |||||||||||||||||||
Ensco plc, Sponsored ADR | Call | 125 | 60.00 | 5/23/11 | 8,873 | (18,125 | ) | (9,252 | ) |
18 | OPPENHEIMER EQUITY INCOME FUND, INC.
Unrealized | ||||||||||||||||||||||||||||
Number of | Exercise | Expiration | Premiums | Appreciation/ | ||||||||||||||||||||||||
Description | Type | Contracts | Price | Date | Received | Value | (Depreciation) | |||||||||||||||||||||
Ensco plc, Sponsored ADR | Put | 750 | $ | 55.00 | 5/23/11 | $ | 58,088 | $ | (24,750 | ) | $ | 33,338 | ||||||||||||||||
Exxon Mobil Corp. | Call | 25 | 87.50 | 5/23/11 | 2,125 | (3,575 | ) | (1,450 | ) | |||||||||||||||||||
FirstEnergy Corp. | Call | 50 | 40.00 | 6/20/11 | 1,699 | (2,750 | ) | (1,051 | ) | |||||||||||||||||||
Ford Motor Co. | Put | 5,475 | 16.00 | 5/23/11 | 771,076 | (405,150 | ) | 365,926 | ||||||||||||||||||||
Ford Motor Co. | Put | 5,000 | 16.00 | 6/20/11 | 329,921 | (455,000 | ) | (125,079 | ) | |||||||||||||||||||
Frontier Communications Corp. | Call | 250 | 8.00 | 5/23/11 | 5,996 | (8,750 | ) | (2,754 | ) | |||||||||||||||||||
Genworth Financial, Inc., Cl. A | Put | 2,500 | 13.00 | 5/23/11 | 209,935 | (240,000 | ) | (30,065 | ) | |||||||||||||||||||
Halliburton Co. | Call | 2,750 | 48.00 | 6/20/11 | 918,442 | (1,012,000 | ) | (93,558 | ) | |||||||||||||||||||
Halliburton Co. | Call | 650 | 50.00 | 5/23/11 | 100,626 | (111,800 | ) | (11,174 | ) | |||||||||||||||||||
Halliburton Co. | Call | 350 | 49.00 | 6/20/11 | 101,493 | (108,500 | ) | (7,007 | ) | |||||||||||||||||||
Intersil Corp., Cl. A | Call | 2,000 | 14.00 | 5/23/11 | 141,803 | (190,000 | ) | (48,197 | ) | |||||||||||||||||||
Johnson & Johnson | Call | 325 | 65.00 | 5/23/11 | 19,495 | (39,650 | ) | (20,155 | ) | |||||||||||||||||||
JPMorgan Chase & Co. | Call | 250 | 47.00 | 5/23/11 | 21,496 | (8,500 | ) | 12,996 | ||||||||||||||||||||
JPMorgan Chase & Co. | Put | 500 | 45.00 | 5/23/11 | 55,944 | (29,000 | ) | 26,944 | ||||||||||||||||||||
KKR Financial Holdings LLC | Put | 500 | 10.00 | 5/23/11 | 28,512 | (20,000 | ) | 8,512 | ||||||||||||||||||||
Lockheed Martin Corp. | Call | 1,000 | 75.00 | 6/20/11 | 725,112 | (467,000 | ) | 258,112 | ||||||||||||||||||||
Lorillard, Inc. | Call | 525 | 85.00 | 5/23/11 | 562,241 | (1,128,750 | ) | (566,509 | ) | |||||||||||||||||||
Lorillard, Inc. | Call | 500 | 100.00 | 5/23/11 | 84,196 | (350,000 | ) | (265,804 | ) | |||||||||||||||||||
Lorillard, Inc. | Call | 375 | 105.00 | 5/23/11 | 47,607 | (108,750 | ) | (61,143 | ) | |||||||||||||||||||
Lorillard, Inc. | Call | 200 | 90.00 | 5/23/11 | 161,394 | (333,000 | ) | (171,606 | ) | |||||||||||||||||||
Lowe’s Cos., Inc. | Call | 2,000 | 28.00 | 5/23/11 | 73,890 | (24,000 | ) | 49,890 | ||||||||||||||||||||
Marathon Oil Corp. | Call | 3,050 | 50.00 | 5/23/11 | 777,003 | (1,296,250 | ) | (519,247 | ) | |||||||||||||||||||
Marathon Oil Corp. | Call | 750 | 48.00 | 5/23/11 | 332,633 | (453,750 | ) | (121,117 | ) | |||||||||||||||||||
Marathon Oil Corp. | Call | 350 | 52.50 | 5/23/11 | 44,794 | (78,750 | ) | (33,956 | ) | |||||||||||||||||||
Marathon Oil Corp. | Put | 1,250 | 50.00 | 5/23/11 | 80,980 | (40,000 | ) | 40,980 | ||||||||||||||||||||
Mattel, Inc. | Call | 1,250 | 27.00 | 5/23/11 | 89,655 | (48,750 | ) | 40,905 | ||||||||||||||||||||
MDC Holdings, Inc. | Put | 500 | 27.00 | 5/23/11 | 63,492 | (12,500 | ) | 50,992 | ||||||||||||||||||||
Microsoft Corp. | Put | 2,409 | 27.00 | 5/23/11 | 382,242 | (320,397 | ) | 61,845 | ||||||||||||||||||||
Norfolk Southern Corp. | Call | 300 | 72.50 | 5/23/11 | 5,696 | (73,500 | ) | (67,804 | ) | |||||||||||||||||||
OfficeMax, Inc. | Put | 7,443 | 15.00 | 5/23/11 | 1,832,255 | (3,587,526 | ) | (1,755,271 | ) | |||||||||||||||||||
OfficeMax, Inc. | Put | 2,500 | 10.00 | 6/20/11 | 159,961 | (167,500 | ) | (7,539 | ) | |||||||||||||||||||
PepsiCo, Inc. | Call | 200 | 70.00 | 5/23/11 | 15,397 | (7,200 | ) | 8,197 | ||||||||||||||||||||
Philip Morris International, Inc. | Call | 2,000 | 67.50 | 5/23/11 | 148,448 | (460,000 | ) | (311,552 | ) | |||||||||||||||||||
QUALCOMM, Inc. | Call | 175 | 52.50 | 5/23/11 | 40,061 | (82,600 | ) | (42,539 | ) | |||||||||||||||||||
Tyco International Ltd. | Call | 3,000 | 50.00 | 5/23/11 | 718,198 | (195,000 | ) | 523,198 | ||||||||||||||||||||
Tyco International Ltd. | Call | 825 | 55.00 | 5/23/11 | 132,893 | (12,375 | ) | 120,518 | ||||||||||||||||||||
Tyco International Ltd. | Put | 875 | 85.00 | 5/23/11 | 272,732 | (44,625 | ) | 228,107 | ||||||||||||||||||||
Walgreen Co. | Call | 225 | 42.00 | 5/23/11 | 16,871 | (24,750 | ) | (7,879 | ) | |||||||||||||||||||
Wyndham Worldwide Corp. | Call | 150 | 35.00 | 5/23/11 | 3,598 | (9,750 | ) | (6,152 | ) | |||||||||||||||||||
Wyndham Worldwide Corp. | Call | 100 | 32.00 | 5/23/11 | 12,898 | (28,500 | ) | (15,602 | ) | |||||||||||||||||||
$ | 12,733,105 | $ | (16,280,448 | ) | $ | (3,547,343 | ) | |||||||||||||||||||||
19 | OPPENHEIMER EQUITY INCOME FUND, INC.
Assets | ||||
Investments, at value—see accompanying statement of investments: | ||||
Unaffiliated companies (cost $1,949,164,000) | $ | 2,218,263,630 | ||
Affiliated companies (cost $49,231,113) | 47,993,435 | |||
2,266,257,065 | ||||
Cash | 22,329 | |||
Receivables and other assets: | ||||
Investments sold | 21,465,254 | |||
Shares of capital stock sold | 20,992,557 | |||
Interest and dividends | 4,898,725 | |||
Other | 247,677 | |||
Total assets | 2,313,883,607 | |||
Liabilities | ||||
Appreciated options written, at value (premiums received $3,887,719) | 1,784,497 | |||
Depreciated options written, at value (premiums received $8,845,386) | 14,495,951 | |||
Payables and other liabilities: | ||||
Investments purchased | 45,292,343 | |||
Shares of capital stock redeemed | 3,181,252 | |||
Distribution and service plan fees | 437,116 | |||
Transfer and shareholder servicing agent fees | 284,357 | |||
Directors’ compensation | 97,092 | |||
Shareholder communications | 64,000 | |||
Other | 79,863 | |||
Total liabilities | 65,716,471 | |||
Net Assets | $ | 2,248,167,136 | ||
Composition of Net Assets | ||||
Par value of shares of capital stock | $ | 8,736 | ||
Additional paid-in capital | 1,969,843,758 | |||
Accumulated net investment loss | (673,561 | ) | ||
Accumulated net realized gain on investments | 14,673,594 | |||
Net unrealized appreciation on investments | 264,314,609 | |||
Net Assets | $ | 2,248,167,136 | ||
20 | OPPENHEIMER EQUITY INCOME FUND, INC.
Net Asset Value Per Share | ||||
Class A Shares: | ||||
Net asset value and redemption price per share (based on net assets of $1,711,403,994 and 64,503,700 shares of capital stock outstanding) | $ | 26.53 | ||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $ | 28.15 | ||
Class B Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $103,918,859 and 4,565,417 shares of capital stock outstanding) | $ | 22.76 | ||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $305,948,479 and 13,415,928 shares of capital stock outstanding) | $ | 22.80 | ||
Class N Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $80,488,896 and 3,127,249 shares of capital stock outstanding) | $ | 25.74 | ||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $46,406,908 and 1,748,634 shares of capital stock outstanding) | $ | 26.54 |
1. | April 29, 2011 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. |
21 | OPPENHEIMER EQUITY INCOME FUND, INC.
Investment Income | ||||
Dividends: | ||||
Unaffiliated companies (net of foreign withholding taxes of $106,494) | $ | 20,910,666 | ||
Affiliated companies | 618,360 | |||
Interest | 4,370,272 | |||
Total investment income | 25,899,298 | |||
Expenses | ||||
Management fees | 5,428,485 | |||
Distribution and service plan fees: | ||||
Class A | 1,634,074 | |||
Class B | 410,802 | |||
Class C | 1,053,343 | |||
Class N | 153,478 | |||
Transfer and shareholder servicing agent fees: | ||||
Class A | 1,183,696 | |||
Class B | 146,651 | |||
Class C | 209,096 | |||
Class N | 120,540 | |||
Class Y | 32 | |||
Shareholder communications: | ||||
Class A | 77,805 | |||
Class B | 14,663 | |||
Class C | 14,785 | |||
Class N | 3,081 | |||
Custodian fees and expenses | 60,070 | |||
Directors’ compensation | 12,530 | |||
Administration service fees | 750 | |||
Other | 107,226 | |||
Total expenses | 10,631,107 | |||
Less waivers and reimbursements of expenses | (55,848 | ) | ||
Net expenses | 10,575,259 | |||
Net Investment Income | 15,324,039 |
22 | OPPENHEIMER EQUITY INCOME FUND, INC.
Realized and Unrealized Gain (Loss) | ||||
Net realized gain on: | ||||
Investments from unaffiliated companies (including premiums on options exercised) | $ | 48,884,032 | ||
Closing and expiration of option contracts written | 8,829,502 | |||
Net realized gain | 57,713,534 | |||
Net change in unrealized appreciation/depreciation on: | ||||
Investments | 187,891,095 | |||
Option contracts written | (3,451,050 | ) | ||
Net change in unrealized appreciation/depreciation | 184,440,045 | |||
Net Increase in Net Assets Resulting from Operations | $ | 257,477,618 | ||
1. | April 29, 2011 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. |
23 | OPPENHEIMER EQUITY INCOME FUND, INC.
Six Months | Year | |||||||
Ended | Ended | |||||||
April 29, 20111 | October 29, | |||||||
(Unaudited) | 20101 | |||||||
Operations | ||||||||
Net investment income | $ | 15,324,039 | $ | 12,714,035 | ||||
Net realized gain | 57,713,534 | 51,372,235 | ||||||
Net change in unrealized appreciation/depreciation | 184,440,045 | 64,349,144 | ||||||
Net increase in net assets resulting from operations | 257,477,618 | 128,435,414 | ||||||
Dividends and/or Distributions to Shareholders | ||||||||
Dividends from net investment income: | ||||||||
Class A | (15,438,949 | ) | (10,709,289 | ) | ||||
Class B | (800,186 | ) | (654,555 | ) | ||||
Class C | (2,163,160 | ) | (1,141,112 | ) | ||||
Class N | (613,948 | ) | (386,028 | ) | ||||
Class Y | (1,219 | ) | — | |||||
(19,017,462 | ) | (12,890,984 | ) | |||||
Capital Stock Transactions | ||||||||
Net increase in net assets resulting from capital stock transactions: | ||||||||
Class A | 604,838,128 | 504,250,084 | ||||||
Class B | 26,380,429 | 26,530,986 | ||||||
Class C | 147,879,570 | 71,440,051 | ||||||
Class N | 31,277,953 | 23,518,699 | ||||||
Class Y | 45,550,835 | — | ||||||
855,926,915 | 625,739,820 | |||||||
Net Assets | ||||||||
Total increase | 1,094,387,071 | 741,284,250 | ||||||
Beginning of period | 1,153,780,065 | 412,495,815 | ||||||
End of period (including accumulated net investment income (loss) of $(673,561) and $3,019,862, respectively) | $ | 2,248,167,136 | $ | 1,153,780,065 | ||||
1. | April 29, 2011 and October 29, 2010 represent the last business day of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes. |
24 | OPPENHEIMER EQUITY INCOME FUND, INC.
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 29, 20111 | Year Ended October 31, | |||||||||||||||||||||||
Class A | (Unaudited) | 20101 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 22.87 | $ | 19.23 | $ | 15.65 | $ | 29.86 | $ | 29.15 | $ | 27.34 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | .25 | .40 | .70 | .63 | .20 | .09 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.71 | 3.65 | 3.62 | (10.24 | ) | 2.67 | 4.61 | |||||||||||||||||
Total from investment operations | 3.96 | 4.05 | 4.32 | (9.61 | ) | 2.87 | 4.70 | |||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (.30 | ) | (.41 | ) | (.74 | ) | (.62 | ) | (.03 | ) | — | |||||||||||||
Distributions from net realized gain | — | — | — | (3.98 | ) | (2.13 | ) | (2.89 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | (.30 | ) | (.41 | ) | (.74 | ) | (4.60 | ) | (2.16 | ) | (2.89 | ) | ||||||||||||
Net asset value, end of period | $ | 26.53 | $ | 22.87 | $ | 19.23 | $ | 15.65 | $ | 29.86 | $ | 29.15 | ||||||||||||
Total Return, at Net Asset Value3 | 17.43 | % | 21.25 | % | 28.82 | % | (37.27 | )% | 10.43 | % | 18.43 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,711,404 | $ | 918,456 | $ | 323,033 | $ | 199,650 | $ | 362,740 | $ | 382,512 | ||||||||||||
Average net assets (in thousands) | $ | 1,330,544 | $ | 593,104 | $ | 225,561 | $ | 292,638 | $ | 370,916 | $ | 369,074 | ||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||||||
Net investment income | 1.99 | % | 1.86 | % | 4.29 | % | 2.85 | % | 0.68 | % | 0.32 | % | ||||||||||||
Total expenses | 1.11 | %5 | 1.21 | %5 | 1.36 | %5 | 1.25 | %5 | 1.28 | %5 | 1.29 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.11 | % | 1.21 | % | 1.36 | % | 1.25 | % | 1.28 | % | 1.28 | % | ||||||||||||
Portfolio turnover rate | 18 | % | 60 | % | 105 | % | 78 | % | 124 | % | 56 | % |
1. | April 29, 2011 and October 29, 2010 represent the last business day of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Assumes an 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. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
4. | Annualized for periods less than one full year. | |
5. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended April 29, 2011 | 1.11 | % | ||
Year Ended October 29, 2010 | 1.21 | % | ||
Year Ended October 31, 2009 | 1.36 | % | ||
Year Ended October 31, 2008 | 1.25 | % | ||
Year Ended October 31, 2007 | 1.28 | % |
25 | OPPENHEIMER EQUITY INCOME FUND, INC.
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 29, 20111 | Year Ended October 31, | |||||||||||||||||||||||
Class B | (Unaudited) | 20101 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.68 | $ | 16.61 | $ | 13.63 | $ | 26.48 | $ | 26.27 | $ | 25.11 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | .11 | .18 | .50 | .38 | (.05 | ) | (.14 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) | 3.18 | 3.15 | 3.11 | (8.95 | ) | 2.39 | 4.19 | |||||||||||||||||
Total from investment operations | 3.29 | 3.33 | 3.61 | (8.57 | ) | 2.34 | 4.05 | |||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (.21 | ) | (.26 | ) | (.63 | ) | (.30 | ) | — | — | ||||||||||||||
Distributions from net realized gain | — | — | — | (3.98 | ) | (2.13 | ) | (2.89 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | (.21 | ) | (.26 | ) | (.63 | ) | (4.28 | ) | (2.13 | ) | (2.89 | ) | ||||||||||||
Net asset value, end of period | $ | 22.76 | $ | 19.68 | $ | 16.61 | $ | 13.63 | $ | 26.48 | $ | 26.27 | ||||||||||||
Total Return, at Net Asset Value3 | 16.84 | % | 20.22 | % | 27.69 | % | (37.81 | )% | 9.46 | % | 17.37 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 103,919 | $ | 65,791 | $ | 31,723 | $ | 24,862 | $ | 60,106 | $ | 76,583 | ||||||||||||
Average net assets (in thousands) | $ | 83,061 | $ | 48,363 | $ | 24,503 | $ | 42,007 | $ | 72,568 | $ | 76,606 | ||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||||||
Net investment income (loss) | 1.06 | % | 0.96 | % | 3.57 | % | 1.94 | % | (0.21 | )% | (0.58 | )% | ||||||||||||
Total expenses | 2.06 | %5 | 2.25 | %5 | 2.48 | %5 | 2.14 | %5 | 2.16 | %5 | 2.19 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 2.04 | % | 2.13 | % | 2.22 | % | 2.14 | % | 2.16 | % | 2.19 | % | ||||||||||||
Portfolio turnover rate | 18 | % | 60 | % | 105 | % | 78 | % | 124 | % | 56 | % |
1. | April 29, 2011 and October 29, 2010 represent the last business day of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Assumes an 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. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
4. | Annualized for periods less than one full year. | |
5. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended April 29, 2011 | 2.06 | % | ||
Year Ended October 29, 2010 | 2.25 | % | ||
Year Ended October 31, 2009 | 2.48 | % | ||
Year Ended October 31, 2008 | 2.14 | % | ||
Year Ended October 31, 2007 | 2.16 | % |
26 | OPPENHEIMER EQUITY INCOME FUND, INC.
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 29, 20111 | Year Ended October 31, | |||||||||||||||||||||||
Class C | (Unaudited) | 20101 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.72 | $ | 16.65 | $ | 13.66 | $ | 26.54 | $ | 26.31 | $ | 25.14 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | .13 | .19 | .50 | .39 | (.04 | ) | (.14 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) | 3.19 | 3.16 | 3.13 | (8.99 | ) | 2.40 | 4.20 | |||||||||||||||||
Total from investment operations | 3.32 | 3.35 | 3.63 | (8.60 | ) | 2.36 | 4.06 | |||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (.24 | ) | (.28 | ) | (.64 | ) | (.30 | ) | — | — | ||||||||||||||
Distributions from net realized gain | — | — | — | (3.98 | ) | (2.13 | ) | (2.89 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | (.24 | ) | (.28 | ) | (.64 | ) | (4.28 | ) | (2.13 | ) | (2.89 | ) | ||||||||||||
Net asset value, end of period | $ | 22.80 | $ | 19.72 | $ | 16.65 | $ | 13.66 | $ | 26.54 | $ | 26.31 | ||||||||||||
Total Return, at Net Asset Value3 | 16.93 | % | 20.30 | % | 27.77 | % | (37.83 | )% | 9.53 | % | 17.39 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 305,948 | $ | 128,951 | $ | 44,774 | $ | 29,599 | $ | 56,130 | $ | 54,971 | ||||||||||||
Average net assets (in thousands) | $ | 213,387 | $ | 80,931 | $ | 32,357 | $ | 43,817 | $ | 56,496 | $ | 51,822 | ||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||||||
Net investment income (loss) | 1.19 | % | 1.02 | % | 3.53 | % | 1.98 | % | (0.17 | )% | (0.57 | )% | ||||||||||||
Total expenses | 1.87 | % 5 | 2.05 | %5 | 2.28 | %5 | 2.12 | %5 | 2.13 | %5 | 2.17 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.87 | % | 2.05 | % | 2.17 | % | 2.11 | % | 2.13 | % | 2.17 | % | ||||||||||||
Portfolio turnover rate | 18 | % | 60 | % | 105 | % | 78 | % | 124 | % | 56 | % |
1. | April 29, 2011 and October 29, 2010 represent the last business day of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes. |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Assumes an 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. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
4. | Annualized for periods less than one full year. | |
5. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended April 29, 2011 | 1.87 | % | ||
Year Ended October 29, 2010 | 2.05 | % | ||
Year Ended October 31, 2009 | 2.28 | % | ||
Year Ended October 31, 2008 | 2.12 | % | ||
Year Ended October 31, 2007 | 2.13 | % |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
April 29, 20111 | Year Ended October 31, | |||||||||||||||||||||||
Class N | (Unaudited) | 20101 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 22.21 | $ | 18.70 | $ | 15.24 | $ | 29.09 | $ | 28.52 | $ | 26.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | .19 | .30 | .64 | .54 | .08 | (.03 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) | 3.60 | 3.55 | 3.51 | (9.97 | ) | 2.62 | 4.53 | |||||||||||||||||
Total from investment operations | 3.79 | 3.85 | 4.15 | (9.43 | ) | 2.70 | 4.50 | |||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (.26 | ) | (.34 | ) | (.69 | ) | (.44 | ) | — | — | ||||||||||||||
Distributions from net realized gain | — | — | — | (3.98 | ) | (2.13 | ) | (2.89 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | (.26 | ) | (.34 | ) | (.69 | ) | (4.42 | ) | (2.13 | ) | (2.89 | ) | ||||||||||||
Net asset value, end of period | $ | 25.74 | $ | 22.21 | $ | 18.70 | $ | 15.24 | $ | 29.09 | $ | 28.52 | ||||||||||||
Total Return, at Net Asset Value3 | 17.17 | % | 20.77 | % | 28.40 | % | (37.48 | )% | 10.02 | % | 17.93 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 80,489 | $ | 40,582 | $ | 12,966 | $ | 10,023 | $ | 19,340 | $ | 19,013 | ||||||||||||
Average net assets (in thousands) | $ | 62,123 | $ | 25,675 | $ | 9,706 | $ | 15,221 | $ | 19,387 | $ | 17,985 | ||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||||||
Net investment income (loss) | 1.56 | % | 1.48 | % | 4.08 | % | 2.47 | % | 0.29 | % | (0.12 | )% | ||||||||||||
Total expenses | 1.57 | %5 | 1.83 | %5 | 2.36 | %5 | 1.87 | %5 | 1.91 | %5 | 1.90 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.52 | % | 1.58 | % | 1.67 | % | 1.63 | % | 1.67 | % | 1.72 | % | ||||||||||||
Portfolio turnover rate | 18 | % | 60 | % | 105 | % | 78 | % | 124 | % | 56 | % |
1. | April 29, 2011 and October 29, 2010 represent the last business day of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes. |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Assumes an 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. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
4. | Annualized for periods less than one full year. | |
5. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended April 29, 2011 | 1.57 | % | ||
Year Ended October 29, 2010 | 1.83 | % | ||
Year Ended October 31, 2009 | 2.36 | % | ||
Year Ended October 31, 2008 | 1.87 | % | ||
Year Ended October 31, 2007 | 1.91 | % |
Period Ended | ||||
April 29, 20111,2 | ||||
Class Y | (Unaudited) | |||
Per Share Operating Data | ||||
Net asset value, beginning of period | $ | 25.76 | ||
Income (loss) from investment operations: | ||||
Net investment income3 | .05 | |||
Net realized and unrealized gain | .85 | |||
Total from investment operations | .90 | |||
Dividends and/or distributions to shareholders: | ||||
Dividends from net investment income | (.12 | ) | ||
Distributions from net realized gain | — | |||
Total dividends and/or distributions to shareholders | (.12 | ) | ||
Net asset value, end of period | $ | 26.54 | ||
Total Return, at Net Asset Value4 | 3.52 | % | ||
Ratios/Supplemental Data | ||||
Net assets, end of period (in thousands) | $ | 46,407 | ||
Average net assets (in thousands) | $ | 18,053 | ||
Ratios to average net assets:5 | ||||
Net investment income | 1.27 | % | ||
Total expenses | 0.68 | % | ||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.68 | % | ||
Portfolio turnover rate | 18 | % |
1. | For the period from February 28, 2011 (inception of offering) to April 29, 2011. | |
2. | April 29, 2011 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
3. | Per share amounts calculated based on the average shares outstanding during the period. | |
4. | Assumes an 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. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
5. | Annualized for periods less than one full year. | |
6. | Total expenses including indirect expenses from affiliated fund were as follows: |
Period Ended April 29, 2011 | 0.68 | % |
securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
Expiring | ||||
2017 | $ | 37,436,900 |
Federal tax cost of securities | $ | 1,998,395,113 | ||
Federal tax cost of other investments | (12,733,105 | ) | ||
Total federal tax cost | $ | 1,985,662,008 | ||
Gross unrealized appreciation | $ | 290,140,859 | ||
Gross unrealized depreciation | (25,826,250 | ) | ||
Net unrealized appreciation | $ | 264,314,609 | ||
to each director during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the “Freeze Date”) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent directors as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the six months ended April 29, 2011, the Fund’s projected benefit obligations, payments to retired directors and accumulated liability were as follows:
Projected Benefit Obligations Increased | $ | 3,667 | ||
Payments Made to Retired Directors | 7,058 | |||
Accumulated Liability as of April 29, 2011 | 72,285 |
Six Months Ended April 29, 2011 | Year Ended October 29, 2010 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A | ||||||||||||||||
Sold | 30,676,009 | $ | 765,142,779 | 29,741,863 | $ | 639,295,438 | ||||||||||
Dividends and/or distributions reinvested | 539,771 | 13,264,017 | 446,674 | 9,411,874 | ||||||||||||
Redeemed | (6,864,577 | ) | (173,568,668 | ) | (6,836,264 | ) | (144,457,228 | ) | ||||||||
Net increase | 24,351,203 | $ | 604,838,128 | 23,352,273 | $ | 504,250,084 | ||||||||||
Class B | ||||||||||||||||
Sold | 1,826,579 | $ | 39,310,373 | 2,220,371 | $ | 40,890,157 | ||||||||||
Dividends and/or distributions reinvested | 35,101 | 738,055 | 34,359 | 622,248 | ||||||||||||
Redeemed | (640,145 | ) | (13,667,999 | ) | (820,555 | ) | (14,981,419 | ) | ||||||||
Net increase | 1,221,535 | $ | 26,380,429 | 1,434,175 | $ | 26,530,986 | ||||||||||
Six Months Ended April 29, 2011 | Year Ended October 29, 2010 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class C | ||||||||||||||||
Sold | 7,608,955 | $ | 163,792,726 | 4,740,041 | $ | 87,718,337 | ||||||||||
Dividends and/or distributions reinvested | 84,441 | 1,785,536 | 55,448 | 1,008,558 | ||||||||||||
Redeemed | (817,487 | ) | (17,698,692 | ) | (944,388 | ) | (17,286,844 | ) | ||||||||
Net increase | 6,875,909 | $ | 147,879,570 | 3,851,101 | $ | 71,440,051 | ||||||||||
Class N | ||||||||||||||||
Sold | 1,672,962 | $ | 40,375,674 | 1,540,368 | $ | 31,929,751 | ||||||||||
Dividends and/or distributions reinvested | 22,135 | 527,681 | 16,809 | 344,628 | ||||||||||||
Redeemed | (395,233 | ) | (9,625,402 | ) | (423,372 | ) | (8,755,680 | ) | ||||||||
Net increase | 1,299,864 | $ | 31,277,953 | 1,133,805 | $ | 23,518,699 | ||||||||||
Class Y | ||||||||||||||||
Sold | 1,780,197 | $ | 46,374,188 | — | $ | — | ||||||||||
Dividends and/or distributions reinvested | 48 | 1,214 | — | — | ||||||||||||
Redeemed | (31,611 | ) | (824,567 | ) | — | — | ||||||||||
Net increase | 1,748,634 | $ | 45,550,835 | — | $ | — | ||||||||||
Purchases | Sales | |||||||
Investment securities | $ | 1,090,545,404 | $ | 284,663,244 |
Fee Schedule | ||||
Up to $400 million | 0.70 | % | ||
Next $400 million | 0.68 | |||
Next $400 million | 0.65 | |||
Next $400 million | 0.60 | |||
Next $400 million | 0.55 | |||
Over $2.0 billion | 0.50 |
Class B | $ | 934,239 | ||
Class C | 2,743,037 | |||
Class N | 714,923 |
Class A | Class B | Class C | Class N | ||||||||||||||||||
Class A | Contingent | Contingent | Contingent | Contingent | |||||||||||||||||
Front-End | Deferred | Deferred | Deferred | Deferred | |||||||||||||||||
Sales Charges | Sales Charges | Sales Charges | Sales Charges | Sales Charges | |||||||||||||||||
Six Months | Retained by | Retained by | Retained by | Retained by | Retained by | ||||||||||||||||
Ended | Distributor | Distributor | Distributor | Distributor | Distributor | ||||||||||||||||
April 29, 2011 | $954,788 | $507 | $75,720 | $30,530 | $778 |
Class B | $ | 5,658 | ||
Class N | 13,403 |
Liability Derivatives | ||||||||
Derivatives not Accounted for as Hedging | Statement of Assets and Liabilities | |||||||
Instruments | Location | Value | ||||||
Equity contracts | Appreciated options written, at value | $ | 1,784,497 | |||||
Equity contracts | Depreciated options written, at value | 14,495,951 | ||||||
Total | $ | 16,280,448 | ||||||
Investments from | Closing and | |||||||||||
unaffiliated companies | expiration of | |||||||||||
Derivatives Not Accounted | (including premiums on | option contracts | ||||||||||
for as Hedging Instruments | options exercised)* | written | Total | |||||||||
Equity contracts | $ | 4,896,825 | $ | 8,829,502 | $ | 13,726,327 |
* | Includes purchased option contracts, purchased swaption contracts and written option contracts exercised, if any. |
Derivatives Not Accounted for as Hedging Instruments | Option contracts written | |||
Equity contracts | $ | (3,451,050 | ) |
Call Options | Put Options | |||||||||||||||
Number of | Amount of | Number of | Amount of | |||||||||||||
Contracts | Premiums | Contracts | Premiums | |||||||||||||
Options outstanding as of October 29, 2010 | 40,055 | $ | 2,848,012 | 25,925 | $ | 3,559,055 | ||||||||||
Options written | 159,591 | 22,822,669 | 312,418 | 27,430,394 | ||||||||||||
Options closed or expired | (158,070 | ) | (18,182,034 | ) | (258,416 | ) | (20,848,166 | ) | ||||||||
Options exercised | (15,676 | ) | (2,012,614 | ) | (27,025 | ) | (2,884,211 | ) | ||||||||
Options outstanding as of April 29, 2011 | 25,900 | $ | 5,476,033 | 52,902 | $ | 7,257,072 | ||||||||||
Directors and Officers | Brian F. Wruble, Chairman of the Board of Directors and Director | |
David K. Downes, Director | ||
Matthew P. Fink, Director | ||
Phillip A. Griffiths, Director | ||
Mary F. Miller, Director | ||
Joel W. Motley, Director | ||
Mary Ann Tynan, Director | ||
Joseph M. Wikler, Director | ||
Peter I. Wold, Director | ||
William F. Glavin, Jr., Director, President and Principal Executive Officer | ||
Michael S. Levine, Vice President and Portfolio Manager | ||
Arthur S. Gabinet, Secretary | ||
Thomas W. Keffer, Vice President and Chief Business Officer | ||
Mark S. Vandehey, Vice President and Chief Compliance Officer | ||
Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer | ||
Robert G. Zack, Vice President | ||
Manager | OppenheimerFunds, Inc. | |
Distributor | OppenheimerFunds Distributor, Inc. | |
Transfer and Shareholder Servicing Agent | OppenheimerFunds Services | |
Independent Registered Public Accounting Firm | KPMG llp | |
Legal Counsel | Kramer Levin Naftalis & Frankel LLP | |
The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm. |
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1. | The Fund’s Governance Committee (the “Committee”) will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds’ investment manager and its affiliates in making the selection. |
2. | The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as defined in the Investment Company Act of 1940; and whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder. |
3. | The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following: |
• | the name, address, and business, educational, and/or other pertinent background of the person being recommended; | ||
• | a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940; | ||
• | any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and | ||
• | the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares. |
The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation. |
4. | Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds’ investment adviser) would be deemed an “interested person” under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its |
subsidiaries, with registered broker-dealers, or with the Funds’ outside legal counsel may cause a person to be deemed an “interested person.” |
5. | Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company. |
(a) | (1) Not applicable to semiannual reports. |
(2) | Exhibits attached hereto. | ||
(3) | Not applicable. |
(b) | Exhibit attached hereto. |
By: | /s/ William F. Glavin, Jr. | |||
Principal Executive Officer | ||||
Date: | 06/10/2011 |
By: | /s/ William F. Glavin, Jr. | |||
Principal Executive Officer | ||||
Date: | 06/10/2011 | |||
By: | /s/ Brian W. Wixted | |||
Principal Financial Officer | ||||
Date: | 06/10/2011 |