UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5473
Oppenheimer Multi-Sector Income Trust
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: October 31
Date of reporting period: October 31, 2002 - April 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
April 30, 2003
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Oppenheimer Management
Multi-Sector Commentaries
Income Trust and
Semiannual
Report
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MANAGEMENT COMMENTARIES
Performance Update
Investment Strategy Discussion
SEMIANNUAL REPORT AND FINANCIAL STATEMENTS
Listing of Investments
Financials
"During a period in which some sectors of the bond market provided yields
hovering near historical lows, we are satisfied that our multi-sector approach
to fixed-income investing produced attractive total returns, including a
competitive income and positive price appreciation."
[LOGO]
OppenheimerFunds[R]
The Right Way to Invest
HIGHLIGHTS
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MANAGEMENT COMMENTARIES AND ADDITIONAL DISCLOSURES
1 Letter to Shareholders
2 An Interview with Your Fund's Managers
46 Trustees and Officers
47 Privacy Policy Notice
SEMIANNUAL REPORT AND FINANCIAL STATEMENTS
6 Statement of Investments
30 Statement of Assets and Liabilities
31 Statement of Operations
32 Statements of Changes in Net Assets
33 Financial Highlights
34 Notes to Financial Statements
45 Shareholder Meeting
Fund Objective
Oppenheimer Multi-Sector Income Trust is a closed-end diversified management
investment company with a primary investment objective of seeking high current
income consistent with the preservation of capital. The Fund's secondary
investment objective is capital appreciation.
Investment Breakdown 1
(As of 4/30/03)
[PIE CHART]
o Asset-Backed 39.4%
o Corporate 29.9
o International 22.3
o U.S. Government 6.1
o Money Market 1.9
o Convertible 0.4
1. Portfolio composition is subject to change. Chart is based on total market
value of investments.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency, and
involve investment risks, including the possible loss of the principal amount
invested.
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Not part of the semiannual report to Fund shareholders
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LETTER TO SHAREHOLDERS
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Dear Shareholder,
It is nearly impossible to reflect on the past six months without thinking about
the war with Iraq. We experienced a range of emotions in the days leading up to
the war and especially as the media brought the war into our homes, as never
before.
At OppenheimerFunds, we face the difficult task of looking beyond the war to
see its long-term impact, together with other factors, on the global economy,
the financial markets and, in the end, your investment with us. It's a
responsibility that we take very seriously and becomes our primary focus during
uncertain times like these.
It is our strong belief that investors can be well served by this
professional insight and by the guidance provided by a financial advisor. In
partnership with OppenheimerFunds, your financial advisor can help you navigate
through this volatile and sometimes unpredictable environment. We encourage you
to continue to work closely with your advisor to develop and implement an
investment plan that fits your goals and risk tolerance.
On our end, we continue to be the home to some of the most experienced and
talented investment professionals in the industry. They remain focused on proven
methods that drive informed, intelligent investment decisions. It is an approach
we are proud of and one that has served investors well in a variety of market
conditions.
We've found that in good times and bad, the fundamental principles of
investing remain key for financial success. These principles-- investing
according to your goals, diversifying your portfolio and benefiting from the
value of professional investment advice--are simple ideas that have proven
themselves over time, and, we believe, will prove themselves again.
We thank you for your continued confidence in OppenheimerFunds and encourage
you to visit our website, www.oppenheimerfunds.com, or speak with your advisor
for up to date information on your investments and the markets.
Sincerely,
/S/JOHN V. MURPHY
John V. Murphy
May 21, 2003
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict performance of the securities markets or any particular
fund. Specific information that applies to your Fund is contained in the pages
that follow.
[PHOTO OF JOHN V. MURPHY]
John V. Murphy
President
Oppenheimer
Multi-Sector Income Trust
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Not part of the semiannual report to Fund shareholders
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1 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
AN INTERVIEW WITH YOUR FUND'S MANAGERS
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Q
How did Oppenheimer Multi-Sector Income Trust perform during the six-month
period that ended April 30, 2003?
A. We are generally pleased with the Fund's performance. During a period in
which some sectors of the bond market provided yields hovering near historical
lows, we are satisfied that our multi-sector approach to fixed-income investing
produced attractive total returns, including a competitive income and positive
price appreciation.
Why have bonds generally performed well during the past six months while stocks
have continued to decline?
Interest-rate sensitive bonds, such as U.S. Treasury securities and most foreign
government bonds, gained value because interest rates have continued to decline
in a generally weak global economy. The U.S. Federal Reserve Board reduced key
short-term interest rates in November 2002 by a half point to just 1.25%, citing
corporate scandals and war fears. When bond yields fall, their prices generally
rise, producing capital appreciation.
Bonds that respond more to the perceived credit quality of their issuers,
such as high-yield corporate bonds, also generally gained value during the
reporting period. After falling to historically low levels earlier in 2002,
high-yield bond prices advanced during the reporting period as investors became
more comfortable with the financial condition of many issuers, especially those
that have reduced their borrowing costs and strengthened their balance sheets.
In many cases, corporations have used money previously reserved for stock
buy-backs to pay down their outstanding debt.
What influences drove the Fund's performance during the reporting period?
The Fund's high-yield corporate bonds provided the greatest contribution to its
performance. In our view, corporate bonds began the reporting period with
attractive valuations, and the Fund's relatively heavy exposure to this area
boosted its returns
[SIDEBAR]
Portfolio Management
Team
Art Steinmetz
Caleb Wong
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Not part of the semiannual report to Fund shareholders
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2 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
commensurately when those valuations began to improve. We focused particularly
on bonds from energy companies that we expected to benefit from rising oil and
gas prices. We also favored utilities that, in our view, were taking appropriate
steps toward reducing their debt loads, and industrial companies that appeared
poised to take advantage of greater economic growth.
We reduced the Fund's exposure to international bonds early in the reporting
period. We did so because we were concerned that escalating hostilities in the
Middle East might lead to greater volatility in international bond markets, as
often has been the case in the past. Although emerging-market bonds gained value
through much of the reporting period, our underweighted position in
international bonds began to benefit performance toward the end of the reporting
period, as the U.S. dollar strengthened when the United States quickly and
decisively deposed the Iraqi regime.
The Fund contained some investment-grade corporate bonds during the period.
Isn't that a departure from past practices?
Yes. Historically, we have employed a "barbell" strategy that balances
high-yield bonds with U.S. government securities. However, we added triple-B
rated bonds, the lowest investment-grade credit rating, during the reporting
period after their yields rose (and prices fell) to levels that we considered
compelling compared to historical norms. We have since closed out the position
in BBB-rated corporate debt and increased our exposure to high yield bonds. We
believe as the equity markets improve and interest rates stop declining, it is
less likely that high-grade corporate bonds can keep up with high yield, lower
grade corporates.
[SIDEBAR]
"In our view, corporate bonds began the reporting period with attractive
valuations, and the Fund's relatively heavy exposure to this area boosted its
returns commensurately when those valuations began to improve."
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Not part of the semiannual report to Fund shareholders
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3 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
AN INTERVIEW WITH YOUR FUND'S MANAGERS
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What contribution did U.S. government securities make to the Fund's performance?
U.S. Treasuries continued to benefit from falling interest rates and robust
demand from risk-averse investors. However, we generally maintained the Fund's
weighted average maturity for these securities at points that were shorter than
those of its peer group. We believed throughout the period that the risks of
higher interest rates outweighed the benefits of potentially lower rates to
shareholders, and thus, we positioned the Fund accordingly. This relatively
defensive posture prevented the Fund from participating fully in the U.S.
Treasury market's rally.
Similarly, while mortgage-backed securities from U.S. government agencies
have performed relatively well, we have been concerned about the effects of
potentially lower prepayment rates on their effective maturities. Therefore, we
have gradually reduced the Fund's exposure to these securities to an
underweighted position.
What contribution did your quantitative models make to the Fund's performance?
After providing a positive contribution during the previous
six-month period, our various quantitative models hurt Fund performance during
this reporting period. Our interest-rate model, which attempts to add value by
forecasting changes in short-term rates, was primarily responsible for the
models' overall negative returns, primarily because heightened market volatility
caused it to generate a number of false signals. On the other hand, our foreign
currency model provided generally positive results as it accurately suggested
weakness in the U.S. dollar and strength in the euro relative to most major
currencies. Our equity model, which has generally been bullish, produced mixed
results during the reporting period and made no significant contribution to the
Fund's performance.
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Not part of the semiannual report to Fund shareholders
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4 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
What is your outlook for the foreseeable future?
We have positioned the Fund to benefit from stronger economic growth, which we
believe is likely to occur now that the Iraq conflict is winding down.
Accordingly, we have continued to emphasize corporate bonds, which we expect to
continue to gain value as credit concerns subside. At the same time, we have
generally de-emphasized U.S. and foreign government bonds, because of concerns
that potentially higher interest rates could erode their value. Nonetheless,
even in today's low interest rate environment, we have continued to focus on
generating competitive levels of income. In our view, that focus is central to
what makes Oppenheimer Multi-Sector Income Trust part of The Right Way to
Invest.
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Not part of the semiannual report to Fund shareholders
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5 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS April 30, 2003 / Unaudited
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Principal Market Value
Amount See Note 1
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U.S. Government Sector--8.4%
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U.S. Government Obligations--8.4%
Federal Home Loan Mortgage Corp. Unsec. Nts.,
4.50%, 1/15/13 $ 5,000,000 $ 5,117,450
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Federal National Mortgage Assn. Unsec. Nts.:
4.25%, 7/15/07 5,945,000 6,301,860
7.25%, 5/15/30 2,000,000 2,579,834
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U.S. Treasury Bonds:
8.75%, 5/15/17 800,000 1,163,282
STRIPS, 5.99%, 11/15/18 1,2 300,000 139,478
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U.S. Treasury Nts.:
3%, 2/15/08 294,000 297,124
5.875%, 2/15/04 1,140,000 1,182,973
6.75%, 5/15/05 3 1,140,000 1,259,701
7%, 7/15/06 4 3,300,000 3,800,287
--------------
Total U.S. Government Sector (Cost $21,397,500) 21,841,989
Shares
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Corporate Sector--41.1%
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Common Stocks--0.1%
Capital Gaming International, Inc. 5,6 18 --
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Covad Communications Group, Inc. 5 6,198 4,463
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Equinix, Inc. 5 6,362 20,676
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Globix Corp. 5,6 6,880 13,416
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ICO Global Communication Holdings Ltd. 5 24,061 25,264
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Manitowoc Co., Inc. (The) 173 3,218
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NTL, Inc. 5 3,879 65,943
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Orbital Sciences Corp. 5 399 2,226
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Pioneer Cos., Inc. 5,6 5,655 21,206
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Polymer Group, Inc., Cl. A 5,6 6,878 51,585
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Prandium, Inc. 5 14,499 2,030
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Star Gas Partners LP 220 4,616
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Sterling Chemicals, Inc. 5 243 4,586
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TVMAX Holdings, Inc. 5,6 2,500 --
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WRC Media Corp. 5,6 676 7
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XO Communications, Inc. 5 1,091 6,480
--------------
225,716
Principal
Amount
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Corporate Bonds and Notes--40.3%
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Consumer Discretionary--13.5%
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Auto Components--1.2%
Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub.
Nts., Series B, 2/15/10 $ 200,000 202,750
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Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11 200,000 206,000
- -----------------------------------------------------------------------------------
Dana Corp., 9% Unsec. Nts., 8/15/11 600,000 654,000
6 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
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Auto Components Continued
Dura Operating Corp.:
8.625% Sr. Nts., Series B, 4/15/12 $ 400,000 $ 417,000
9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 600,000 576,000
- -----------------------------------------------------------------------------------
Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 700,000 791,000
- -----------------------------------------------------------------------------------
Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 200,000 219,250
--------------
3,066,000
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Automobiles--0.5%
Ford Motor Credit Co.:
7.25% Nts., 10/25/11 873,000 876,553
7.375% Nts., 10/28/09 373,000 381,579
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General Motors Acceptance Corp., 6.875% Unsec.
Unsub. Nts., 8/28/12 185,000 188,455
--------------
1,446,587
- -----------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--2.5%
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 6 400,000 142,000
- -----------------------------------------------------------------------------------
Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 250,000 265,625
- -----------------------------------------------------------------------------------
Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 200,000 216,500
- -----------------------------------------------------------------------------------
Buffets, Inc., 11.25% Sr. Sub. Nts., 7/15/10 200,000 197,000
- -----------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50% Promissory
Nts., 8/1/1995 5,6,7 5,500 --
- -----------------------------------------------------------------------------------
Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub.
Nts., 4/1/09 200,000 216,000
- -----------------------------------------------------------------------------------
Hilton Hotels Corp.:
7.625% Nts., 5/15/08 200,000 214,268
7.625% Nts., 12/1/12 200,000 213,437
- -----------------------------------------------------------------------------------
Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12 200,000 213,500
- -----------------------------------------------------------------------------------
John Q. Hammons Hotels, Inc., 8.875% Sr. Nts.,
Series B, 5/15/12 200,000 208,000
- -----------------------------------------------------------------------------------
Mandalay Resort Group, 10.25% Sr. Unsec. Sub. Nts.,
Series B, 8/1/07 500,000 555,000
- -----------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority:
8.375% Sr. Sub. Nts., 7/1/11 400,000 428,000
8.75% Sr. Unsec. Sub. Nts., 1/1/09 500,000 533,750
- -----------------------------------------------------------------------------------
Penn National Gaming, Inc., 8.875% Sr. Sub. Nts., 3/15/10 300,000 315,750
- -----------------------------------------------------------------------------------
Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 200,000 189,000
- -----------------------------------------------------------------------------------
Six Flags, Inc.:
8.875% Sr. Nts., 2/1/10 250,000 251,250
9.75% Sr. Nts., 4/15/13 8 600,000 628,500
- -----------------------------------------------------------------------------------
Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr.
Nts., 5/1/12 8 400,000 420,500
- -----------------------------------------------------------------------------------
Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub.
Nts., 8/15/11 500,000 532,500
- -----------------------------------------------------------------------------------
Universal City Development Partners, 11.75% Sr.
Nts., 4/1/10 8 200,000 216,500
- -----------------------------------------------------------------------------------
Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11%
Sec. Nts., 6/15/10 200,000 220,500
- -----------------------------------------------------------------------------------
Yum! Brands, Inc., 7.70% Sr. Nts., 7/1/12 300,000 335,250
--------------
6,512,830
- -----------------------------------------------------------------------------------
Household Durables--1.3%
Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 500,000 548,750
- -----------------------------------------------------------------------------------
D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 2 500,000 557,500
7 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Household Durables Continued
K. Hovnanian Enterprises, Inc., 8.875% Sr.
Sub. Nts., 4/1/12 $ 300,000 $ 318,000
- -----------------------------------------------------------------------------------
KB Home:
8.625% Sr. Sub. Nts., 12/15/08 500,000 542,500
9.50% Sr. Unsec. Sub. Nts., 2/15/11 500,000 553,750
- -----------------------------------------------------------------------------------
Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 400,000 414,000
- -----------------------------------------------------------------------------------
Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 100,000 106,750
- -----------------------------------------------------------------------------------
WCI Communities, Inc., 9.125% Sr. Sub. Nts., 5/1/12 200,000 203,000
- -----------------------------------------------------------------------------------
William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 200,000 206,000
--------------
3,450,250
- -----------------------------------------------------------------------------------
Internet & Catalog Retail--0.5%
Amazon.com, Inc., 0%/10% Sr. Unsec. Disc. Nts., 5/1/08 9 900,000 951,750
- -----------------------------------------------------------------------------------
USA Interactive, 7% Nts., 1/15/13 287,000 315,906
--------------
1,267,656
- -----------------------------------------------------------------------------------
Leisure Equipment & Products--0.1%
Remington Arms Co., Inc., 10.50% Sr. Nts., 2/1/11 8 150,000 162,750
- -----------------------------------------------------------------------------------
Media--5.5%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 5,7 250,000 123,750
9.875% Sr. Nts., Series B, 3/1/07 5,7 300,000 148,500
10.25% Sr. Unsec. Nts., 11/1/06 5,7 100,000 49,500
10.25% Sr. Unsec. Sub. Nts., 6/15/11 5,7 300,000 153,000
10.875% Sr. Unsec. Nts., 10/1/10 5,7 100,000 50,000
- -----------------------------------------------------------------------------------
Allbritton Communications Co., 7.75% Sr. Unsec. Sub.
Nts., 12/15/12 800,000 836,000
- -----------------------------------------------------------------------------------
AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 500,000 525,000
- -----------------------------------------------------------------------------------
AOL Time Warner, Inc., 6.875% Nts., 5/1/12 800,000 874,339
- -----------------------------------------------------------------------------------
Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 200,000 218,500
- -----------------------------------------------------------------------------------
Charter Communications Holdings LLC/Charter Communications
Holdings Capital Corp.:
8.625% Sr. Unsec. Nts., 4/1/09 1,500,000 993,750
10.75% Sr. Unsec. Nts., 10/1/09 800,000 536,000
11.125% Sr. Unsec. Nts., 1/15/11 400,000 266,000
- -----------------------------------------------------------------------------------
Cinemark USA, Inc., 9% Sr. Sub. Nts., 2/1/13 8 200,000 217,000
- -----------------------------------------------------------------------------------
Classic Cable, Inc., 10.50% Sr. Sub. Nts., 3/1/10 5,6,7 300,000 22,500
- -----------------------------------------------------------------------------------
Comcast Cable Communications, Inc.:
6.75% Sr. Unsub. Nts., 1/30/11 514,000 568,366
8.875% Unsub. Nts., 5/1/17 77,000 97,775
- -----------------------------------------------------------------------------------
Cox Communications, Inc., 7.125% Nts., 10/1/12 685,000 801,257
- -----------------------------------------------------------------------------------
CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts.,
Series B, 4/1/11 625,000 660,937
- -----------------------------------------------------------------------------------
EchoStar DBS Corp.:
9.375% Sr. Unsec. Nts., 2/1/09 150,000 162,563
10.375% Sr. Unsec. Nts., 10/1/07 750,000 843,750
- -----------------------------------------------------------------------------------
Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts.,
Series B, 3/15/09 600,000 636,000
- -----------------------------------------------------------------------------------
Entravision Communications Corp., 8.125% Sr. Sub.
Nts., 3/15/09 100,000 105,000
- -----------------------------------------------------------------------------------
Hollinger International Publishing, Inc., 9% Sr.
Nts., 12/15/10 8 400,000 430,000
8 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
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Media Continued
Houghton Mifflin Co.:
8.25% Sr. Nts., 2/1/11 8 $ 200,000 $ 213,500
9.875% Sr. Sub. Nts., 2/1/13 8 50,000 54,250
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Lamar Media Corp., 8.625% Sr. Sub. Nts., 9/15/07 200,000 210,000
- -----------------------------------------------------------------------------------
Mediacom LLC/Mediacom Capital Corp., 9.50% Sr.
Unsec. Nts., 1/15/13 600,000 648,000
- -----------------------------------------------------------------------------------
News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 380,000 468,550
- -----------------------------------------------------------------------------------
PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 400,000 435,000
- -----------------------------------------------------------------------------------
R.H. Donnelley Financial Corp. I, 10.875% Sr. Sub.
Nts., 12/15/12 8 200,000 232,500
- -----------------------------------------------------------------------------------
Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts.,
Series B, 7/1/11 200,000 221,000
- -----------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8% Sr. Sub. Nts., 3/15/12 1,000,000 1,060,000
8% Sr. Sub. Nts., 3/15/12 8 600,000 636,000
8.75% Sr. Sub. Nts., 12/15/11 300,000 327,000
- -----------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Unsec.
Sub. Nts., 11/1/09 300,000 318,750
- -----------------------------------------------------------------------------------
WRC Media, Inc./Weekly Reader Corp./Compass Learning Corp.,
12.75% Sr. Sub. Nts., 11/15/09 300,000 309,000
--------------
14,453,037
- -----------------------------------------------------------------------------------
Multiline Retail--0.3%
J. C. Penney Co., Inc., 8% Nts., 3/1/10 200,000 213,500
- -----------------------------------------------------------------------------------
Saks, Inc., 9.875% Nts., 10/1/11 400,000 450,000
--------------
663,500
- -----------------------------------------------------------------------------------
Specialty Retail--1.4%
Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 200,000 189,000
- -----------------------------------------------------------------------------------
CSK Auto, Inc., 12% Sr. Unsec. Nts., 6/15/06 500,000 550,625
- -----------------------------------------------------------------------------------
Finlay Enterprises, Inc., 9% Debs., 5/1/08 500,000 497,500
- -----------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 6 300,000 307,500
- -----------------------------------------------------------------------------------
Gap, Inc. (The), 6.90% Nts., 9/15/07 200,000 213,000
- -----------------------------------------------------------------------------------
Hollywood Entertainment Corp., 9.625% Sr. Sub.
Nts., 3/15/11 200,000 217,000
- -----------------------------------------------------------------------------------
United Rentals (North America), Inc.:
10.75% Sr. Nts., 4/15/08 8 400,000 434,000
10.75% Sr. Nts., 4/15/08 8 200,000 217,000
10.75% Sr. Unsec. Nts., 4/15/08 800,000 868,000
- -----------------------------------------------------------------------------------
United Rentals, Inc., 9.25% Sr. Unsec. Sub. Nts.,
Series B, 1/15/09 100,000 96,500
--------------
3,590,125
- -----------------------------------------------------------------------------------
Textiles & Apparel--0.2%
Consoltex Group, Inc., 11% Sr. Sub. Nts., 1/31/09 6,10 413,803 6,207
- -----------------------------------------------------------------------------------
Levi Strauss & Co.:
11.625% Sr. Unsec. Nts., 1/15/08 200,000 170,000
12.25% Sr. Nts., 12/15/12 8 250,000 208,750
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Russell Corp., 9.25% Sr. Nts., 5/1/10 100,000 109,000
--------------
493,957
9 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Consumer Staples--2.0%
- -----------------------------------------------------------------------------------
Beverages--0.2%
Constellation Brands, Inc., 8.125% Sr. Sub. Nts.,
1/15/12 $ 100,000 $ 106,625
- -----------------------------------------------------------------------------------
Packaged Ice, Inc., 9.75% Sr. Unsec. Nts.,
Series B, 2/1/05 300,000 289,500
--------------
396,125
- -----------------------------------------------------------------------------------
Food & Drug Retailing--0.8%
Delhaize America, Inc., 8.125% Unsub. Debs., 4/15/11 341,000 363,165
- -----------------------------------------------------------------------------------
Fleming Cos., Inc.:
10.125% Sr. Unsec. Nts., 4/1/08 7 500,000 73,750
10.625% Sr. Unsec. Sub. Nts., Series D, 7/31/07 7 200,000 2,000
- -----------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The), 9.125%
Sr. Nts., 12/15/11 200,000 173,000
- -----------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 775,000 775,969
- -----------------------------------------------------------------------------------
Pathmark Stores, Inc., 8.75% Sr. Sub. Nts., 2/1/12 200,000 202,000
- -----------------------------------------------------------------------------------
Rite Aid Corp.:
8.125% Sr. Sec. Nts., 5/1/10 8 250,000 257,500
9.50% Sr. Sec. Nts., 2/15/11 8 100,000 107,000
- -----------------------------------------------------------------------------------
Winn-Dixie Stores, Inc., 8.875% Sr. Nts., 4/1/08 200,000 216,000
--------------
2,170,384
- -----------------------------------------------------------------------------------
Food Products--0.5%
Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 200,000 89,000
- -----------------------------------------------------------------------------------
Burns Philp Capital Pty Ltd., 9.75% Sr. Sub.
Nts., 7/15/12 8 100,000 100,500
- -----------------------------------------------------------------------------------
Del Monte Corp., 8.625% Sr. Sub. Nts., 12/15/12 8 200,000 216,250
- -----------------------------------------------------------------------------------
Doane Pet Care Co., 10.75% Sr. Nts., 3/1/10 8 200,000 217,500
- -----------------------------------------------------------------------------------
Dole Food Co., Inc., 8.875% Sr. Nts., 3/15/11 8 50,000 54,625
- -----------------------------------------------------------------------------------
Smithfield Foods, Inc.:
7.625% Sr. Unsec. Sub. Nts., 2/15/08 400,000 394,000
8% Sr. Nts., Series B, 10/15/09 300,000 309,000
--------------
1,380,875
- -----------------------------------------------------------------------------------
Household Products--0.5%
AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 6 600,000 603,000
- -----------------------------------------------------------------------------------
Holmes Products Corp., 9.875% Sr. Unsec. Sub. Nts.,
Series B, 11/15/07 300,000 274,500
- -----------------------------------------------------------------------------------
Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05 500,000 475,000
- -----------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub.
Nts., 7/1/08 5,6,7 400,000 --
--------------
1,352,500
- -----------------------------------------------------------------------------------
Energy--2.4%
- -----------------------------------------------------------------------------------
Energy Equipment & Services--0.7%
Grant Geophysical, Inc., 9.75% Sr. Unsec. Nts.,
Series B, 2/15/08 5,6,7 380,000 96,900
- -----------------------------------------------------------------------------------
Hornbeck-Leevac Marine Services, Inc., 10.625% Sr.
Nts., 8/1/08 750,000 813,750
- -----------------------------------------------------------------------------------
Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 100,000 110,000
- -----------------------------------------------------------------------------------
Universal Compression Holdings, Inc., 9.875% Sr. Disc.
Nts., 2/15/08 700,000 738,500
--------------
1,759,150
10 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Oil & Gas--1.7%
Chesapeake Energy Corp.:
7.75% Sr. Unsec. Nts., 1/15/15 $ 200,000 $ 215,000
8.125% Sr. Unsec. Nts., 4/1/11 300,000 325,500
- -----------------------------------------------------------------------------------
El Paso Energy Partners LP:
8.50% Sr. Sub. Nts., 6/1/10 8 150,000 162,375
10.625% Sr. Sub. Nts., 12/1/12 8 200,000 231,000
- -----------------------------------------------------------------------------------
Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 200,000 209,000
- -----------------------------------------------------------------------------------
Frontier Escrow Corp., 8% Sr. Nts., 4/15/13 8 100,000 104,000
- -----------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 600,000 669,000
- -----------------------------------------------------------------------------------
Giant Industries, Inc., 11% Sr. Sub. Nts., 5/15/12 200,000 191,000
- -----------------------------------------------------------------------------------
Pemex Project Funding Master Trust, 8.50% Unsub.
Nts., 2/15/08 265,000 308,063
- -----------------------------------------------------------------------------------
Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12 200,000 227,529
- -----------------------------------------------------------------------------------
Pogo Producing Co., 8.75% Sr. Sub. Nts., Series B, 5/15/07 300,000 310,875
- -----------------------------------------------------------------------------------
Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 8 500,000 560,000
- -----------------------------------------------------------------------------------
Stone Energy Corp., 8.75% Sr. Sub. Nts., 9/15/07 535,000 555,731
- -----------------------------------------------------------------------------------
Tesoro Petroleum Corp., 8% Sr. Sec. Nts., 4/15/08 8 100,000 104,000
- -----------------------------------------------------------------------------------
Westport Resources Corp., 8.25% Sr. Unsec. Sub.
Nts., 11/1/11 200,000 219,000
- -----------------------------------------------------------------------------------
XTO Energy, Inc., 7.50% Sr. Nts., 4/15/12 100,000 110,500
--------------
4,502,573
- -----------------------------------------------------------------------------------
Financials--2.8%
- -----------------------------------------------------------------------------------
Banks--0.7%
Credit Suisse First Boston (USA), Inc., 6.125%
Nts., 11/15/11 596,000 648,293
- -----------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub.
Nts., Series B, 9/30/08 800,000 364,000
- -----------------------------------------------------------------------------------
Tokai Preferred Capital Co. LLC, 9.98% Non-Cum. Bonds,
Series A, 12/29/49 8,11 405,000 415,516
- -----------------------------------------------------------------------------------
Western Financial Bank, 9.625% Unsec. Sub.
Debs., 5/15/12 6 300,000 310,500
--------------
1,738,309
- -----------------------------------------------------------------------------------
Diversified Financials--1.3%
AmeriCredit Corp., 9.875% Sr. Nts., 4/15/06 300,000 270,000
- -----------------------------------------------------------------------------------
Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 6 200,000 219,000
- -----------------------------------------------------------------------------------
CIT Group, Inc., 7.75% Sr. Unsec. Unsub. Nts., 4/2/12 185,000 214,877
- -----------------------------------------------------------------------------------
Finova Group, Inc. (The), 7.50% Nts., 11/15/09 400,000 162,000
- -----------------------------------------------------------------------------------
Fuji JGB Investment LLC, 9.87% Non-Cum. Bonds,
Series A, 12/31/49 8,11 595,000 607,090
- -----------------------------------------------------------------------------------
Household Finance Corp., 7% Nts., 5/15/12 397,000 455,459
- -----------------------------------------------------------------------------------
IBJ Preferred Capital Co. (The) LLC, 8.79%
Bonds, 12/29/49 8,11 145,000 142,281
- -----------------------------------------------------------------------------------
J.P. Morgan Chase & Co., 6.75% Sub. Nts., 2/1/11 469,000 534,885
- -----------------------------------------------------------------------------------
LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07 250,000 275,000
- -----------------------------------------------------------------------------------
MBNA Corp., 6.125% Nts., 3/1/13 425,000 443,910
--------------
3,324,502
11 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Real Estate--0.8%
Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 $ 100,000 $ 75,000
- -----------------------------------------------------------------------------------
Corrections Corp. of America, 9.875% Sr. Nts., 5/1/09 100,000 109,500
- -----------------------------------------------------------------------------------
Felcor Lodging LP, 8.50% Sr. Nts., 6/1/11 285,000 278,588
- -----------------------------------------------------------------------------------
Host Marriott LP, 9.50% Sr. Nts., 1/15/07 400,000 422,500
- -----------------------------------------------------------------------------------
MeriStar Hospitality Corp., 9.125% Sr. Unsec. Nts., 1/15/11 700,000 661,500
- -----------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 9.75% Sr.
Sec. Nts., Series B, 4/1/08 700,000 707,000
--------------
2,254,088
- -----------------------------------------------------------------------------------
Health Care--2.6%
- -----------------------------------------------------------------------------------
Health Care Equipment & Supplies--0.2%
Fisher Scientific International, Inc., 8.125% Sr.
Sub. Nts., 5/1/12 200,000 216,000
- -----------------------------------------------------------------------------------
Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub.
Nts., 8/1/11 400,000 406,000
--------------
622,000
- -----------------------------------------------------------------------------------
Health Care Providers & Services--2.3%
AmeriPath, Inc., 10.50% Sr. Sub. Nts., 4/1/13 8 100,000 106,500
- -----------------------------------------------------------------------------------
AmerisourceBergen Corp., 7.25% Sr. Nts., 11/15/12 8 200,000 213,000
- -----------------------------------------------------------------------------------
Extendicare Health Services, Inc., 9.50% Sr. Unsec. Sub.
Nts., 7/1/10 100,000 99,500
- -----------------------------------------------------------------------------------
Fresenius Medical Care Capital Trust II, 7.875%
Nts., 2/1/08 900,000 942,750
- -----------------------------------------------------------------------------------
Healthsouth Corp., 7.625% Nts., 6/1/12 7 800,000 514,000
- -----------------------------------------------------------------------------------
Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts.,
Series B, 8/15/12 200,000 186,000
- -----------------------------------------------------------------------------------
NDCHealth Corp., 10.50% Sr. Sub. Nts., 12/1/12 8 600,000 639,000
- -----------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub.
Nts., 6/1/09 400,000 445,000
- -----------------------------------------------------------------------------------
Rotech Healthcare, Inc., 9.50% Sr. Unsec.
Sub. Nts., 4/1/12 400,000 408,000
- -----------------------------------------------------------------------------------
Tenet Healthcare Corp., 6.375% Sr. Nts., 12/1/11 637,000 608,335
- -----------------------------------------------------------------------------------
Triad Hospitals, Inc., 8.75% Sr. Unsec. Nts.,
Series B, 5/1/09 1,500,000 1,638,750
- -----------------------------------------------------------------------------------
US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 200,000 216,000
--------------
6,016,835
- -----------------------------------------------------------------------------------
Pharmaceuticals--0.1%
aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 100,000 107,500
- -----------------------------------------------------------------------------------
Industrials--5.1%
Aerospace & Defense--0.5%
Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub.
Nts., 5/15/11 200,000 219,000
- -----------------------------------------------------------------------------------
BE Aerospace, Inc., 8.875% Sr. Unsec. Sub. Nts., 5/1/11 200,000 140,000
- -----------------------------------------------------------------------------------
Boeing Capital Corp., 5.80% Nts., 1/15/13 185,000 190,502
- -----------------------------------------------------------------------------------
K&F Industries, Inc., 9.625% Sr. Unsec. Sub.
Nts., 12/15/10 125,000 135,625
- -----------------------------------------------------------------------------------
Rexnord Corp., 10.125% Sr. Sub. Nts., 12/15/12 8 150,000 162,000
- -----------------------------------------------------------------------------------
TransDigm, Inc., 10.375% Sr. Sub. Nts., 12/1/08 100,000 107,000
- -----------------------------------------------------------------------------------
TRW Automotive, Inc.:
9.375% Sr. Nts., 2/15/13 8 150,000 164,625
11% Sr. Sub. Nts., 2/15/13 8 150,000 165,000
--------------
1,283,752
12 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Air Freight & Couriers--0.0%
Atlas Air, Inc.:
9.25% Sr. Nts., 4/15/08 7 $ 200,000 $ 43,000
9.375% Sr. Unsec. Nts., 11/15/06 7 300,000 64,500
--------------
107,500
- -----------------------------------------------------------------------------------
Airlines--0.4%
America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05 6 1,000,000 385,000
- -----------------------------------------------------------------------------------
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 1,450,000 514,750
--------------
899,750
- -----------------------------------------------------------------------------------
Building Products--0.3%
Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 100,000 109,500
- -----------------------------------------------------------------------------------
Nortek, Inc.:
9.125% Sr. Unsec. Nts., Series B, 9/1/07 300,000 312,750
9.25% Sr. Nts., Series B, 3/15/07 300,000 310,875
9.875% Sr. Unsec. Sub. Nts., 6/15/11 100,000 104,500
--------------
837,625
- -----------------------------------------------------------------------------------
Commercial Services & Supplies--2.0%
Allied Waste North America, Inc.:
7.875% Sr. Nts., 4/15/13 200,000 209,000
7.875% Sr. Unsec. Nts., Series B, 1/1/09 600,000 622,500
8.50% Sr. Sub. Nts., 12/1/08 500,000 542,500
8.875% Sr. Nts., Series B, 4/1/08 500,000 542,500
9.25% Sr. Nts., 9/1/12 8 650,000 715,000
- -----------------------------------------------------------------------------------
Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 5,7 400,000 96,000
- -----------------------------------------------------------------------------------
Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09 300,000 273,750
- -----------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts.,
Series B, 12/1/07 6 200,000 90,500
- -----------------------------------------------------------------------------------
Hydrochem Industrial Services, Inc., 10.375% Sr. Sub.
Nts., 8/1/07 6 600,000 453,750
- -----------------------------------------------------------------------------------
Iron Mountain, Inc., 7.75% Sr. Sub. Nts., 1/15/15 500,000 540,000
- -----------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub.
Nts., 2/15/09 250,000 247,500
- -----------------------------------------------------------------------------------
Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 300,000 306,000
- -----------------------------------------------------------------------------------
Moore North American Finance, Inc., 7.875% Sr.
Nts., 1/15/11 8 100,000 107,000
- -----------------------------------------------------------------------------------
Protection One, Inc./Protection One Alarm Monitoring, Inc.,
7.375% Sr. Unsec. Nts., 8/15/05 6 400,000 332,000
- -----------------------------------------------------------------------------------
Safety-Kleen Corp., 9.25% Sr. Unsec. Nts., 5/15/09 5,6,7 50,000 2,938
- -----------------------------------------------------------------------------------
Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 100,000 108,000
- -----------------------------------------------------------------------------------
Waste Management, Inc., 6.375% Sr. Nts., 11/15/12 111,000 123,210
--------------
5,312,148
- -----------------------------------------------------------------------------------
Construction & Engineering--0.0%
URS Corp., 11.50% Sr. Nts., 9/15/09 8 100,000 100,500
- -----------------------------------------------------------------------------------
Industrial Conglomerates--0.3%
Great Lakes Dredge & Dock Corp., 10.25% Sr. Unsec.
Sub. Nts., 8/15/08 610,000 647,362
- -----------------------------------------------------------------------------------
Machinery--1.1%
Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 215,000 252,625
- -----------------------------------------------------------------------------------
AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 500,000 547,500
13 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Machinery Continued
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 6 $ 400,000 $ 288,000
- -----------------------------------------------------------------------------------
Eagle-Picher Industries, Inc., 9.375% Sr. Unsec. Sub.
Nts., 3/1/08 350,000 311,500
- -----------------------------------------------------------------------------------
NMHG Holding Co., 10% Sr. Nts., 5/15/09 6 100,000 107,500
- -----------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., 9.625% Sr. Sub.
Nts., Series B, 6/15/07 500,000 422,500
- -----------------------------------------------------------------------------------
SPX Corp., 7.50% Sr. Nts., 1/1/13 400,000 438,000
- -----------------------------------------------------------------------------------
Terex Corp.:
8.875% Sr. Unsec. Sub. Nts., 4/1/08 300,000 313,500
9.25% Sr. Unsec. Sub. Nts., 7/15/11 200,000 215,000
--------------
2,896,125
- -----------------------------------------------------------------------------------
Marine--0.4%
CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 300,000 326,250
- -----------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority
Ship Mtg. Nts., 6/30/07 6,7 750,000 238,125
- -----------------------------------------------------------------------------------
Sea Containers Ltd., 7.875% Sr. Nts., 2/15/08 500,000 348,125
--------------
912,500
- -----------------------------------------------------------------------------------
Road & Rail--0.1%
Kansas City Southern Railway Co. (The), 7.50%
Sr. Nts., 6/15/09 200,000 208,000
- -----------------------------------------------------------------------------------
Information Technology--1.0%
- -----------------------------------------------------------------------------------
Communications Equipment--0.1%
Orion Network Systems, Inc., 12.50% Sr. Disc.
Nts., 1/15/07 1,150,000 338,100
- -----------------------------------------------------------------------------------
Computers & Peripherals--0.2%
Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 400,000 431,500
- -----------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.2%
ChipPAC International Co. Ltd., 12.75% Sr. Unsec.
Sub. Nts., Series B, 8/1/09 6 200,000 225,000
- -----------------------------------------------------------------------------------
Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 6 300,000 325,500
- -----------------------------------------------------------------------------------
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 5,6,7 800,000 20,000
--------------
570,500
- -----------------------------------------------------------------------------------
Internet Software & Services--0.0%
Globix Corp., 11% Sr. Nts., 4/26/08 6 59,016 42,196
- -----------------------------------------------------------------------------------
PSINet, Inc.:
10.50% Sr. Unsec. Nts., 12/1/06 5,6,7 [EUR] 500,000 20,228
11% Sr. Nts., 8/1/09 5,7 551,568 33,094
--------------
95,518
- -----------------------------------------------------------------------------------
Semiconductor Equipment & Products--0.5%
AMI Semiconductor, Inc., 10.75% Sr. Sub. Nts., 2/1/13 8 300,000 327,000
- -----------------------------------------------------------------------------------
Amkor Technology, Inc., 9.25% Sr. Unsec. Sub.
Nts., 2/15/08 300,000 321,750
- -----------------------------------------------------------------------------------
Fairchild Semiconductor Corp., 10.375% Sr. Unsec.
Nts., 10/1/07 500,000 530,000
--------------
1,178,750
- -----------------------------------------------------------------------------------
Materials--4.4%
- -----------------------------------------------------------------------------------
Chemicals--1.0%
Equistar Chemicals LP, 8.75% Sr. Unsec. Nts., 2/15/09 200,000 198,265
- -----------------------------------------------------------------------------------
Equistar Chemicals LP/Equistar Funding Corp., 10.625%
Sr. Nts., 5/1/11 8 200,000 212,500
14 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Chemicals Continued
Huntsman Corp./ICI Chemical Co. plc, Zero Coupon
Sr. Unsec. Disc. Nts., 13.08%, 12/31/09 1 $ 300,000 $ 118,500
- -----------------------------------------------------------------------------------
Huntsman International LLC, 9.875% Sr. Nts., 3/1/09 200,000 218,000
- -----------------------------------------------------------------------------------
ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 200,000 206,000
- -----------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.50% Sec. Nts., 12/15/08 200,000 205,000
9.625% Sr. Sec. Nts., Series A, 5/1/07 100,000 103,500
9.875% Sec. Nts., Series B, 5/1/07 400,000 414,000
- -----------------------------------------------------------------------------------
OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11 200,000 172,000
- -----------------------------------------------------------------------------------
Pioneer Cos., Inc., 4.79% Sr. Sec. Nts., 12/31/06 6,11 29,145 23,170
- -----------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
10% Sr. Sec. Nts., 12/19/07 6 191,746 172,572
11.25% Sr. Sub. Nts., 8/15/06 5,7 200,000 --
- -----------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 6 468,000 470,340
--------------
2,513,847
- -----------------------------------------------------------------------------------
Containers & Packaging--1.8%
Ball Corp.:
6.875% Sr. Unsec. Nts., 12/15/12 8 150,000 158,625
7.75% Sr. Unsec. Nts., 8/1/06 300,000 321,750
8.25% Sr. Unsec. Sub. Nts., 8/1/08 400,000 422,000
- -----------------------------------------------------------------------------------
Graphic Packaging Corp., 8.625% Sub. Nts., 2/15/12 200,000 211,000
- -----------------------------------------------------------------------------------
Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts., 10/1/12 450,000 491,625
- -----------------------------------------------------------------------------------
Owens-Brockway Glass Container, Inc.:
8.75% Sr. Sec. Nts., 11/15/12 500,000 536,250
8.875% Sr. Sec. Nts., 2/15/09 900,000 969,750
- -----------------------------------------------------------------------------------
Packaging Corp. of America, 9.625% Sr. Unsec.
Sub. Nts., 4/1/09 300,000 327,000
- -----------------------------------------------------------------------------------
Riverwood International Corp., 10.875% Sr.
Sub. Nts., 4/1/08 400,000 415,000
- -----------------------------------------------------------------------------------
Stone Container Corp.:
9.25% Sr. Unsec. Nts., 2/1/08 250,000 278,750
9.75% Sr. Unsec. Nts., 2/1/11 400,000 451,000
- -----------------------------------------------------------------------------------
TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 250,000 258,750
--------------
4,841,500
- -----------------------------------------------------------------------------------
Metals & Mining--1.3%
Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08 400,000 416,000
- -----------------------------------------------------------------------------------
Great Lakes Carbon Corp., 7.94% Sr. Sub. Nts.,
Series B, 5/15/08 223,000 183,975
- -----------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 6 400,000 422,000
- -----------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp.:
10.875% Sr. Nts., Series B, 10/15/06 5,6,7 500,000 317,500
12.75% Sr. Sub. Nts., 2/1/04 5,6,7 500,000 20,000
- -----------------------------------------------------------------------------------
Metallurg, Inc., 11% Sr. Nts., 12/1/07 200,000 119,000
- -----------------------------------------------------------------------------------
National Steel Corp., 9.875% First Mtg. Bonds,
Series D, 3/1/09 5,7 242,640 163,782
- -----------------------------------------------------------------------------------
Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 200,000 191,000
- -----------------------------------------------------------------------------------
P&L Coal Holdings Corp., 9.625% Sr. Sub. Nts.,
Series B, 5/15/08 484,000 508,805
- -----------------------------------------------------------------------------------
Peabody Energy Corp., 6.875% Sr. Nts., 3/15/13 8 200,000 209,000
15 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Metals & Mining Continued
Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 $ 200,000 $ 218,000
- -----------------------------------------------------------------------------------
UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 100,000 94,000
- -----------------------------------------------------------------------------------
United States Steel LLC, 10.75% Sr. Nts., 8/1/08 400,000 436,000
--------------
3,299,062
- -----------------------------------------------------------------------------------
Paper & Forest Products--0.3%
Georgia-Pacific Corp.:
8.125% Sr. Unsec. Nts., 5/15/11 500,000 497,500
9.375% Sr. Nts., 2/1/13 8 400,000 442,000
--------------
939,500
- -----------------------------------------------------------------------------------
Telecommunication Services--4.4%
- -----------------------------------------------------------------------------------
Diversified Telecommunication Services--1.2%
American Tower Escrow Corp., Units (each unit
consists of $1,000 zero coupon sr. sub. disc. nts.,
8/1/08 and one warrant to purchase 14.0953
shares of common stock at $0.01 per share) 8,12 400,000 282,000
- -----------------------------------------------------------------------------------
COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 5,6,7 258,544 3,878
- -----------------------------------------------------------------------------------
Concentric Network Corp., Escrow Shares, 12/15/07 5,7 495,000 --
- -----------------------------------------------------------------------------------
Deutsche Telekom International Finance BV, 8.50% Unsub.
Nts., 6/15/10 185,000 223,359
- -----------------------------------------------------------------------------------
Dex Media East LLC, 9.875% Sr. Nts., 11/15/09 8 100,000 115,000
- -----------------------------------------------------------------------------------
DirecTV Holdings LLC, 8.375% Sr. Nts., 3/15/13 8 400,000 450,000
- -----------------------------------------------------------------------------------
Focal Communications Corp., 11.875% Sr. Unsec. Nts.,
Series B, 1/15/10 5,6,7 75,000 4,875
- -----------------------------------------------------------------------------------
Intermedia Communications, Inc., 0%/12.25% Sr. Disc. Nts.,
Series B, 3/1/09 5,6,7,9 100,000 32,500
- -----------------------------------------------------------------------------------
IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09 250,000 261,250
- -----------------------------------------------------------------------------------
Level 3 Communications, Inc., 0%/10.50% Sr. Disc.
Nts., 12/1/08 9 400,000 290,000
- -----------------------------------------------------------------------------------
Metromedia Fiber Network, Inc., 10% Sr. Unsec. Nts.,
Series B, 11/15/08 5,6,7 200,000 7,750
- -----------------------------------------------------------------------------------
Nextlink Communications, Inc.:
Escrow Shares, 11/15/08 5,7 200,000 --
Escrow Shares, 3/15/08 5,7 250,000 --
Escrow Shares, 6/1/09 5,7 200,000 --
- -----------------------------------------------------------------------------------
NorthPoint Communications Group, Inc., 12.875%
Nts., 2/15/10 5,6,7 200,000 30,000
- -----------------------------------------------------------------------------------
Qwest Corp., 8.875% Nts., 3/15/12 8 200,000 220,000
- -----------------------------------------------------------------------------------
Sprint Capital Corp., 8.75% Nts., 3/15/32 596,000 655,600
- -----------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 5,6,7 200,000 --
- -----------------------------------------------------------------------------------
Verizon Global Funding Corp., 7.375% Sr. Nts., 9/1/12 555,000 659,597
- -----------------------------------------------------------------------------------
Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 5,6,7 195,000 --
--------------
3,235,809
- -----------------------------------------------------------------------------------
Wireless Telecommunication Services--3.2%
Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts., 2/1/11 200,000 133,000
- -----------------------------------------------------------------------------------
American Cellular Corp., 9.50% Sr. Sub. Nts., 10/15/09 6,7 600,000 159,000
- -----------------------------------------------------------------------------------
AT&T Wireless Services, Inc., 7.50% Sr. Unsec.
Nts., 5/1/07 596,000 673,188
- -----------------------------------------------------------------------------------
CellNet Data Systems, Inc., 14% Sr. Unsec. Disc.
Nts., 10/1/07 5,6,7 554,000 --
- -----------------------------------------------------------------------------------
16 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Wireless Telecommunication Services Continued
Crown Castle International Corp.:
0%/10.375% Sr. Disc. Nts., 5/15/11 9 $ 550,000 $ 492,250
10.625% Sr. Unsec. Disc. Nts., 11/15/07 800,000 830,000
10.75% Sr. Nts., 8/1/11 200,000 207,000
- -----------------------------------------------------------------------------------
Leap Wireless International, Inc.:
0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 5,6,7,9 200,000 23,000
12.50% Sr. Nts., 4/15/10 5,6,7 400,000 58,000
- -----------------------------------------------------------------------------------
Nextel Communications, Inc., 9.375% Sr. Unsec.
Nts., 11/15/09 2,000,000 2,170,000
- -----------------------------------------------------------------------------------
Omnipoint Corp., 11.50% Sr. Nts., 9/15/09 8 200,000 225,000
- -----------------------------------------------------------------------------------
Orbcomm Global LP, Escrow Shares, 8/15/04 5,7 175,000 --
- -----------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts.,
Series B, 5/15/08 600,000 525,000
- -----------------------------------------------------------------------------------
SBA Communications Corp., 12% Sr. Unsec. Disc.
Nts., 3/1/08 800,000 724,000
- -----------------------------------------------------------------------------------
TeleCorp PCS, Inc.:
0%/11.625% Sr. Unsec. Sub. Disc. Nts., 4/15/09 9 122,000 125,660
10.625% Sr. Unsec. Sub. Nts., 7/15/10 2 505,000 603,475
- -----------------------------------------------------------------------------------
Tritel PCS, Inc.:
0%/12.75% Sr. Unsec. Sub. Disc. Nts., 5/15/09 2,9 763,000 785,890
10.375% Sr. Sub. Nts., 1/15/11 342,000 410,400
- -----------------------------------------------------------------------------------
Triton PCS, Inc., 8.75% Sr. Unsec. Sub. Nts., 11/15/11 100,000 93,500
- -----------------------------------------------------------------------------------
US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub. Disc. Nts.,
Series B, 11/1/09 9 500,000 97,500
--------------
8,335,863
- -----------------------------------------------------------------------------------
Utilities--2.1%
- -----------------------------------------------------------------------------------
Electric Utilities--1.8%
AES Corp. (The), 8.75% Sr. Unsec. Unsub. Nts., 6/15/08 250,000 242,500
- -----------------------------------------------------------------------------------
Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts.,
Series B, 12/15/09 464,074 484,957
- -----------------------------------------------------------------------------------
Calpine Corp., 8.50% Sr. Unsec. Nts., 2/15/11 1,400,000 1,029,000
- -----------------------------------------------------------------------------------
CMS Energy Corp., 9.875% Sr. Unsec. Nts., 10/15/07 900,000 940,500
- -----------------------------------------------------------------------------------
Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08 200,000 185,000
- -----------------------------------------------------------------------------------
ESI Tractebel Acquisition Corp., 7.99% Sec. Bonds,
Series B, 12/30/11 478,000 470,132
- -----------------------------------------------------------------------------------
FirstEnergy Corp., 7.375% Sr. Unsub. Nts.,
Series C, 11/15/31 611,000 675,870
- -----------------------------------------------------------------------------------
Mirant Americas Generation LLC, 8.30% Sr. Unsec.
Nts., 5/1/11 600,000 441,000
- -----------------------------------------------------------------------------------
Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07 275,000 304,906
--------------
4,773,865
- -----------------------------------------------------------------------------------
Gas Utilities--0.2%
AmeriGas Partners LP/AmeriGas Eagle Finance Corp.,
8.875% Sr. Unsec. Nts., Series B, 5/20/11 200,000 217,000
- -----------------------------------------------------------------------------------
NiSource Finance Corp., 7.875% Sr. Unsec. Nts., 11/15/10 232,000 281,052
- -----------------------------------------------------------------------------------
Williams Cos., Inc. (The), 7.125% Nts., 9/1/11 100,000 95,000
--------------
593,052
- -----------------------------------------------------------------------------------
Multi-Utilities--0.1%
Consumers Energy Co., 7.375% Nts., 9/15/23 200,000 210,000
--------------
105,293,661
17 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Preferred Stocks--0.6%
Crown American Realty Trust, 11% Cum., Series A, Non-Vtg. 4,000 $ 229,000
- -----------------------------------------------------------------------------------
Dobson Communications Corp., 12.25% Sr. Exchangeable,
Non-Vtg. 10 1 872
- -----------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable,
Non-Vtg. 5,6,10 249 25
- -----------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable,
Series B, Non-Vtg. 5,6 4,000 129,000
- -----------------------------------------------------------------------------------
Global Crossing Holdings Ltd., 10.50% Sr. Exchangeable,
Non-Vtg. 5,6,10 4,210 --
- -----------------------------------------------------------------------------------
Intermedia Communications, Inc., 13.50% Exchangeable,
Series B 5,10 3 247
- -----------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable
Exchangeable, Non-Vtg. 5,6,10,13 3,031 --
- -----------------------------------------------------------------------------------
NTL Europe, Inc., 10% Nts., Series A, Non-Vtg. 5,6 4 --
- -----------------------------------------------------------------------------------
Paxson Communications Corp., 13.25% Cum. Jr. Exchangeable,
Non-Vtg. 10 34 313,650
- -----------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 10 115 48,588
- -----------------------------------------------------------------------------------
Sovereign Real Estate Investment Trust, 12% Non-Cum.,
Series A 6 5,750 806,438
--------------
1,527,820
Principal
Amount
- -----------------------------------------------------------------------------------
Structured Notes--0.1%
Swiss Re Capital Markets Corp./Fujiyama Ltd.,
Catastrophe Linked Nts., 5.405%, 5/16/05 8,11 $ 250,000 250,570
--------------
Total Corporate Sector (Cost $114,194,304) 107,297,767
Units
- -----------------------------------------------------------------------------------
Convertible Sector--0.5%
- -----------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.5%
Chesapeake Energy Corp. Wts., Exp. 9/1/04 5 1,936 --
- -----------------------------------------------------------------------------------
COLO.com, Inc. Wts., Exp. 3/15/10 5,6 300 3
- -----------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07 5,6 600 6
- -----------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 5,6 800 --
- -----------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05 5,6 700 7
- -----------------------------------------------------------------------------------
Equinix, Inc. Wts., Exp. 12/1/07 5,6 400 4
- -----------------------------------------------------------------------------------
Horizon PCS, Inc. Wts., Exp. 10/1/10 5,6 1,000 50
- -----------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 5,6 4,125 41
- -----------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. Wts.:
Exp. 5/16/06 5,6 6,035 6
Exp. 5/16/06 5,6 9 --
- -----------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07 5,6 720 7
- -----------------------------------------------------------------------------------
KMC Telecom Holdings, Inc. Wts., Exp. 4/15/08 5,6 920 9
- -----------------------------------------------------------------------------------
Leap Wireless International, Inc. Wts., Exp. 4/15/10 5,6 400 4
- -----------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08 5,6 400 --
- -----------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07 5,6 975 10
- -----------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 5,6 700 7
- -----------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc. All Country Asia Free
(except for Japan) Provisional Index Wts., Exp. 6/5/03 5 91,275 767,970
18 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Market Value
Units See Note 1
- -----------------------------------------------------------------------------------
Rights, Warrants and Certificates Continued
Morgan Stanley Capital I, Inc. All Country Asia Free
(except for Japan) Wts.,
Exp. 3/4/05 5 58,900 $ 565,210
- -----------------------------------------------------------------------------------
Ntelos, Inc. Wts., Exp. 8/15/10 5,6 500 187
- -----------------------------------------------------------------------------------
Pathmark Stores, Inc. Wts., Exp. 9/19/10 5 6,738 7,412
- -----------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 6/30/05 5,6 6,400 --
- -----------------------------------------------------------------------------------
Republic Technologies International LLC Wts.,
Exp. 7/15/09 5,6 200 2
- -----------------------------------------------------------------------------------
Sterling Chemicals, Inc. Wts., Exp. 12/31/07 5 395 --
- -----------------------------------------------------------------------------------
Verado Holdings, Inc., Cl. B Wts., Exp. 4/15/08 5,6 500 8
--------------
Total Convertible Sector (Cost $1,584,810) 1,340,943
Shares
- -----------------------------------------------------------------------------------
International Sector--30.6%
- -----------------------------------------------------------------------------------
Common Stocks--0.0%
COLT Telecom Group plc, ADR 5 7,020 20,632
- -----------------------------------------------------------------------------------
Viatel Holding Ltd. (Bermuda) 5,6 763 877
--------------
21,509
Principal
Amount
- -----------------------------------------------------------------------------------
Corporate Bonds and Notes--4.9%
- -----------------------------------------------------------------------------------
Consumer Discretionary--0.8%
- -----------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--0.3%
Intrawest Corp., 9.75% Sr. Nts., 8/15/08 $ 600,000 630,000
- -----------------------------------------------------------------------------------
Royal Caribbean Cruises Ltd., 8.75% Sr. Unsub.
Nts., 2/2/11 200,000 204,000
--------------
834,000
- -----------------------------------------------------------------------------------
Media--0.5%
British Sky Broadcasting Group plc, 8.20% Sr. Unsec.
Nts., 7/15/09 596,000 680,448
- -----------------------------------------------------------------------------------
Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 200,000 216,000
- -----------------------------------------------------------------------------------
United Pan-Europe Communications NV, 0%/13.75%
Sr. Unsec. Disc. Nts., Series B, 2/1/10 5,7,9 1,000,000 101,250
- -----------------------------------------------------------------------------------
Vivendi Universal SA, 9.25% Sr. Nts., 4/15/10 8 300,000 338,250
--------------
1,335,948
- -----------------------------------------------------------------------------------
Consumer Staples--0.3%
- -----------------------------------------------------------------------------------
Food Products--0.3%
United Biscuits Finance plc, 10.75% Sr. Sub. Nts.,
4/15/11 6 [GBP] 500,000 907,007
- -----------------------------------------------------------------------------------
Energy--1.4%
- -----------------------------------------------------------------------------------
Energy Equipment & Services--0.6%
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 1,200,000 1,086,000
- -----------------------------------------------------------------------------------
Petroliam Nasional Berhad, 7.125% Unsub. Nts.,
10/18/06 8 560,000 631,503
--------------
1,717,503
- -----------------------------------------------------------------------------------
Oil & Gas--0.8%
Petroleos Mexicanos, 9.375% Sr. Unsec. Bonds, 12/2/08 300,000 360,750
19 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Oil & Gas Continued
Petroliam Nasional Berhad, 7.625% Unsec. Unsub.
Bonds, 10/15/26 $ 325,000 $ 347,512
- -----------------------------------------------------------------------------------
Petronas Capital Ltd.:
7.875% Nts., 5/22/22 960,000 1,065,330
7.875% Nts., 5/22/22 8 210,000 231,985
--------------
2,005,577
- -----------------------------------------------------------------------------------
Financials--0.3%
- -----------------------------------------------------------------------------------
Banks--0.3%
Chohung Bank, 11.875% Sub. Nts., 4/1/10 11 175,000 201,837
- -----------------------------------------------------------------------------------
Hanvit Bank, 12.75% Unsec. Sub. Nts., 3/1/10 11 465,000 529,836
--------------
731,673
- -----------------------------------------------------------------------------------
Industrials--0.6%
- -----------------------------------------------------------------------------------
Industrial Conglomerates--0.5%
Tyco International Group SA, 6.375% Nts., 10/15/11 1,300,000 1,287,000
- -----------------------------------------------------------------------------------
Marine--0.0%
Pacific & Atlantic Holdings, Inc., 10.50% Sec. Nts.,
12/31/07 8 157,785 60,353
- -----------------------------------------------------------------------------------
Road & Rail--0.1%
Stena AB, 9.625% Sr. Nts., 12/1/12 150,000 165,750
- -----------------------------------------------------------------------------------
Information Technology--0.3%
- -----------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.3%
Flextronics International Ltd., 9.875% Sr. Unsec. Sub.
Nts., 7/1/10 600,000 675,000
- -----------------------------------------------------------------------------------
Materials--0.5%
- -----------------------------------------------------------------------------------
Chemicals--0.0%
PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 87,434 73,007
- -----------------------------------------------------------------------------------
Containers & Packaging--0.2%
Crown Euro Holdings SA:
9.50% Sr. Sec. Nts., 3/1/11 8 300,000 321,000
10.875% Sr. Sec. Nts., 3/1/13 8 100,000 108,250
- -----------------------------------------------------------------------------------
MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 8 200,000 218,000
--------------
647,250
- -----------------------------------------------------------------------------------
Paper & Forest Products--0.3%
Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 225,000 255,038
- -----------------------------------------------------------------------------------
Ainsworth Lumber Co. Ltd., 13.875% Sr. Sec. Nts.,
7/15/07 6 250,000 280,000
- -----------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 5,6,7 750,000 153,750
--------------
688,788
- -----------------------------------------------------------------------------------
Telecommunication Services--0.7%
- -----------------------------------------------------------------------------------
Diversified Telecommunication Services--0.7%
360networks, Inc., 13% Sr. Unsec. Nts., 5/1/08 5,6,7 [EUR] 600,000 67
- -----------------------------------------------------------------------------------
France Telecom SA, 9.25% Sr. Unsec. Nts., 3/1/11 630,000 771,805
- -----------------------------------------------------------------------------------
Telewest Communications plc:
0%/9.25% Sr. Disc. Nts., 4/15/09 5,6,7,9 100,000 20,500
0%/9.875% Sr. Disc. Nts., 4/15/09 5,6,7,9 [GBP] 200,000 57,537
11.25% Sr. Nts., 11/1/08 5,7 700,000 164,500
20 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Diversified Telecommunication Services Continued
Telus Corp., 7.50% Nts., 6/1/07 $ 596,000 $ 664,540
--------------
1,678,949
- -----------------------------------------------------------------------------------
Wireless Telecommunication Services--0.0%
Microcell Telecommunications, Inc., 0%/12% Sr. Unsec.
Disc. Nts., 6/1/09 5,6,7,9 300,000 13,500
- -----------------------------------------------------------------------------------
Utilities--0.0%
- -----------------------------------------------------------------------------------
Electric Utilities--0.0%
AES Drax Holdings Ltd., 10.41% Sr. Sec. Sub. Nts.,
Series B, 12/31/20 6 100,000 62,500
--------------
12,883,805
- -----------------------------------------------------------------------------------
Foreign Government Obligations--22.4%
- -----------------------------------------------------------------------------------
Argentina--0.2%
Argentina (Republic of) Bonds:
11.75%, 6/15/15 5,7 55,000 16,500
Series PR12, 2%, 1/3/16 6 [ARP] 20,000 3,898
- -----------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 6.017%, 3/31/23 7 235,000 111,772
- -----------------------------------------------------------------------------------
Argentina (Republic of) Unsec. Unsub. Bonds, Series 2018,
3.063%, 6/19/18 5,7 5,306 1,475
- -----------------------------------------------------------------------------------
Argentina (Republic of) Unsub. Bonds, Series 2031, 2.79%,
6/19/31 5,7 981,560 267,475
- -----------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, Bonos de Consolidacion
de Deudas, Series PBA1, 3.257%, 4/1/07 5,6,7 [ARP] 75,660 29,439
- -----------------------------------------------------------------------------------
JPMorgan Chase Bank, Argentina (Republic of) Treasury
Bills, 2/28/04 6 [ARP] 25,000 8,323
--------------
438,882
- -----------------------------------------------------------------------------------
Austria--0.8%
Austria (Republic of) Bonds, Series 98-1, 5%,
1/15/08 [EUR] 690,000 825,483
- -----------------------------------------------------------------------------------
Austria (Republic of) Nts.:
Series 98-3, 3.90%, 10/20/05 [EUR] 110,000 126,600
5.50%, 10/20/07 [EUR] 543,000 664,048
- -----------------------------------------------------------------------------------
Austria (Republic of) Sr. Unsec. Unsub. Nts., Series 1,
5%, 7/15/12 [EUR] 377,000 451,271
--------------
2,067,402
- -----------------------------------------------------------------------------------
Belgium--1.5%
Belgium (Kingdom of) Bonds:
5%, 9/28/11 [EUR] 360,000 429,642
Series 19, 6.50%, 3/31/05 [EUR] 730,000 874,396
Series 26, 6.25%, 3/28/07 [EUR] 1,985,000 2,466,471
--------------
3,770,509
- -----------------------------------------------------------------------------------
Brazil--1.5%
Brazil (Federal Republic of) Bonds, 8.875%, 4/15/24 1,154,000 868,385
- -----------------------------------------------------------------------------------
Brazil (Federal Republic of) Debt Capitalization Bonds,
Series 20 yr., 8%, 4/15/14 363,266 321,037
- -----------------------------------------------------------------------------------
Brazil (Federal Republic of) Debt Conversion Bonds,
Series 18 yr., 2.188%, 4/15/12 11 755,000 561,531
- -----------------------------------------------------------------------------------
Brazil (Federal Republic of) Disc. Bonds, 2.563%,
4/15/24 11 930,000 671,925
21 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Brazil Continued
Brazil (Federal Republic of) Unsec. Unsub. Bonds,
11%, 8/17/39 $ 1,595,000 $ 1,395,625
--------------
3,818,503
- -----------------------------------------------------------------------------------
Bulgaria--0.2%
Bulgaria (Republic of) Interest Arrears Debs.,
Series PDI, 2.188%, 7/28/11 11 635,520 600,566
- -----------------------------------------------------------------------------------
Canada--0.4%
Canada (Government of) Bonds:
5.50%, 6/1/10 [CAD] 663,000 484,860
6%, 6/1/11 [CAD] 660,000 496,628
--------------
981,488
- -----------------------------------------------------------------------------------
Chile--0.2%
Chile (Republic of) Nts., 7.125%, 1/11/12 505,000 574,740
- -----------------------------------------------------------------------------------
Colombia--0.3%
Colombia (Republic of) Unsec. Unsub. Bonds, 8.375%,
2/15/27 910,000 841,750
- -----------------------------------------------------------------------------------
Denmark--0.2%
Denmark (Kingdom of) Nts., 4%, 8/15/08 [DKK] 3,560,000 545,774
- -----------------------------------------------------------------------------------
Dominican Republic--0.1%
Dominican (Republic of) Unsec. Unsub. Bonds,
9.50%, 9/27/06 193,000 204,580
- -----------------------------------------------------------------------------------
Ecuador--0.6%
Ecuador (Republic of) Unsec. Bonds, 6%, 8/15/30 11 2,482,000 1,551,250
- -----------------------------------------------------------------------------------
El Salvador--0.2%
El Salvador (Republic of) Bonds:
7.75%, 1/24/23 8 200,000 213,000
7.75%, 1/24/23 8 70,000 74,550
8.25%, 4/10/32 170,000 171,912
- -----------------------------------------------------------------------------------
El Salvador (Republic of) Unsec. Nts., 8.50%, 7/25/11 8 120,000 132,600
--------------
592,062
- -----------------------------------------------------------------------------------
France--0.7%
France (Government of) Obligations Assimilables du
Tresor Bonds, 5%, 4/25/12 [EUR] 840,000 1,001,842
- -----------------------------------------------------------------------------------
France (Government of) Treasury Nts.:
3.50%, 1/12/05 [EUR] 655,000 744,211
3.75%, 1/12/07 [EUR] 165,000 189,056
--------------
1,935,109
- -----------------------------------------------------------------------------------
Germany--2.9%
Germany (Republic of) Bonds:
5.375%, 1/4/10 [EUR] 765,000 935,785
Series 01, 5%, 7/4/11 [EUR] 2,105,000 2,513,623
Series 139, 4%, 2/16/07 [EUR] 1,905,000 2,195,074
Series 140, 4.50%, 8/17/07 [EUR] 1,685,000 1,975,423
--------------
7,619,905
- -----------------------------------------------------------------------------------
Great Britain--0.4%
United Kingdom Treasury Nts., 7.50%, 12/7/06 [GBP] 605,000 1,085,682
22 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Greece--0.6%
Greece (Republic of) Bonds:
3.50%, 4/18/08 [EUR] 740,000 $ 831,080
5.35%, 5/18/11 [EUR] 650,000 789,340
--------------
1,620,420
- -----------------------------------------------------------------------------------
Guatemala--0.1%
Guatemala (Republic of) Nts.:
8.50%, 8/3/07 6 15,000 16,275
10.25%, 11/8/11 115,000 131,388
10.25%, 11/8/11 8 170,000 194,225
--------------
341,888
- -----------------------------------------------------------------------------------
Hungary--0.7%
Hungary (Government of) Bonds:
Series 05/I, 8.50%, 10/12/05 [HUF] 280,000,000 1,330,131
Series 13/D, 6.75%, 2/12/13 [HUF] 102,000,000 481,739
--------------
1,811,870
- -----------------------------------------------------------------------------------
Italy--0.8%
Italy (Republic of) Treasury Bonds, Buoni del Tesoro
Poliennali:
5%, 10/15/07 [EUR] 975,000 1,168,701
5.25%, 8/1/11 [EUR] 730,000 886,535
--------------
2,055,236
- -----------------------------------------------------------------------------------
Ivory Coast--0.0%
Ivory Coast (Government of) Past Due Interest Bonds,
1.90%, 3/29/18 6 [FRF] 3,857,000 111,555
- -----------------------------------------------------------------------------------
Japan--1.4%
Japan (Government of) Bonds:
2 yr., Series 189, 0.10%, 10/20/03 [JPY] 36,000,000 301,982
2 yr., Series 197, 0.10%, 6/21/04 [JPY] 162,000,000 1,359,586
4 yr., Series 58, 0.80%, 12/22/03 [JPY] 72,000,000 606,730
6 yr., Series 27, 1%, 9/20/04 [JPY] 136,450,000 1,159,436
10 yr., Series 172, 4.20%, 9/20/04 [JPY] 23,950,000 210,501
--------------
3,638,235
- -----------------------------------------------------------------------------------
Mexico--1.4%
United Mexican States Bonds:
11.375%, 9/15/16 45,000 64,462
Series M5C, 10.50%, 8/24/06 [MXN] 1,460,000 153,083
- -----------------------------------------------------------------------------------
United Mexican States Collateralized Fixed Rate Par
Bonds, Series MI10, 9%, 12/20/12 6,721,000 657,301
- -----------------------------------------------------------------------------------
United Mexican States Nts.:
7.50%, 1/14/12 535,000 604,684
8.125%, 12/30/19 1,145,000 1,294,995
8.375%, 1/14/11 520,000 621,400
Series A, 9.875%, 2/1/10 280,000 357,420
--------------
3,753,345
- -----------------------------------------------------------------------------------
New Zealand--0.6%
New Zealand (Government of) Bonds, Series 205,
6.50%, 2/15/05 [NZD] 2,925,000 1,673,065
23 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Nigeria--0.1%
Nigeria (Federal Republic of) Promissory Nts.,
Series RC, 5.092%, 1/5/10 $ 168,188 $ 135,050
- -----------------------------------------------------------------------------------
Norway--0.5%
Norway (Kingdom of) Treasury Bills, Zero Coupon,
Series NS76, 4.87%, 6/18/03 1 [NOK] 9,885,000 1,404,394
- -----------------------------------------------------------------------------------
Philippines--0.8%
Philippines (Republic of) Bonds, 9.375%, 1/18/17 500,000 535,000
- -----------------------------------------------------------------------------------
Philippines (Republic of) Nts., 10.625%, 3/16/25 370,000 400,525
Philippines (Republic of) Unsec. Bonds:
8.875%, 4/15/08 240,000 257,700
9.875%, 1/15/19 945,000 985,163
--------------
2,178,388
- -----------------------------------------------------------------------------------
Portugal--0.5%
Portugal (Republic of) Obrig Do Tes Medio Prazo
Unsec. Bonds, 5.375%, 6/23/08 [EUR] 660,000 807,601
- -----------------------------------------------------------------------------------
Portugal (Republic of) Obrig Do Tes Medio Prazo
Unsec. Unsub. Bonds, 5.85%, 5/20/10 [EUR] 335,000 421,226
--------------
1,228,827
- -----------------------------------------------------------------------------------
Russia--1.5%
Deutsche Bank AG, OAO Gazprom Loan Participation Nts.,
9.10%, 12/17/03 930,000 944,880
- -----------------------------------------------------------------------------------
Ministry Finance of Russia Debs., Series VI, 3%, 5/14/06 30,000 28,866
- -----------------------------------------------------------------------------------
Russia (Government of), 0%/7.50% Unsec. Unsub. Bonds,
3/31/30 8,9 1,010,000 915,312
- -----------------------------------------------------------------------------------
Russian Federation Unsub. Nts., 5%, 3/31/30 11 2,224,750 2,012,704
--------------
3,901,762
- -----------------------------------------------------------------------------------
South Africa--0.4%
South Africa (Republic of) Unsec. Nts.:
7.375%, 4/25/12 205,000 231,394
8.50%, 6/23/17 610,000 730,475
--------------
961,869
- -----------------------------------------------------------------------------------
Sweden--0.2%
Sweden (Kingdom of) Debs., Series 1040, 6.50%,
5/5/08 [SEK] 2,850,000 385,113
- -----------------------------------------------------------------------------------
The Netherlands--1.3%
The Netherlands (Government of) Bonds:
4%, 7/15/05 [EUR] 140,000 160,912
5%, 7/15/11 [EUR] 1,378,000 1,649,188
Series 1, 5.75%, 2/15/07 [EUR] 1,195,000 1,460,981
--------------
3,271,081
- -----------------------------------------------------------------------------------
Trinidad & Tobago--0.1%
Trinidad & Tobago (Republic of) Nts., 9.875%, 10/1/09 6 230,000 289,225
- -----------------------------------------------------------------------------------
Turkey--1.0%
Turkey (Republic of) Bonds, 11.75%, 6/15/10 1,055,000 1,068,187
- -----------------------------------------------------------------------------------
Turkey (Republic of) Nts., 10.50%, 1/13/08 380,000 384,750
- -----------------------------------------------------------------------------------
Turkey (Republic of) Sr. Unsec. Unsub. Nts.,
11.875%, 1/15/30 240,000 244,800
- -----------------------------------------------------------------------------------
24 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Turkey Continued
Turkey (Republic of) Sr. Unsub. Bonds, 12.375%,
6/15/09 $ 765,000 $ 806,119
--------------
2,503,856
- -----------------------------------------------------------------------------------
Ukraine--0.2%
Ukraine (Republic of) Sr. Unsec. Nts., 11%, 3/15/07 567,469 633,437
--------------
58,526,818
- -----------------------------------------------------------------------------------
Loan Participations--0.7%
Algeria (Republic of) Loan Participation Nts.,
2.188%, 3/4/10 6,11 334,833 315,790
- -----------------------------------------------------------------------------------
Deutsche Bank AG, Indonesian Rupiah Loan Participation Nts.:
2.636%, 12/14/13 525,000 320,250
2.636%, 5/21/04 6 835,000 668,000
2.636%, 3/25/05 440,000 330,000
- -----------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 2.188%, 1/1/09 6,11 263,077 248,936
--------------
1,882,976
Date Strike Contracts
- -----------------------------------------------------------------------------------
Options Purchased--0.0%
Venezuela (Republic of) Debs.,
Series DL, 2.312%, 12/18/07 Put 5,6 6/10/03 73.375% 324 5,505
Shares
- -----------------------------------------------------------------------------------
Preferred Stocks--0.0%
Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv.,
Series A 5,6,10 8,102 16,204
Units
- -----------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
Mexico Value Rts., Exp. 6/30/03 5,6 28,538 12
- -----------------------------------------------------------------------------------
Microcell Telecommunications, Inc. Wts.,
Exp. 6/1/06 5,8 2,800 669
- -----------------------------------------------------------------------------------
Telus Corp. Wts., Exp. 9/15/05 5,6 539 270
--------------
951
Principal
Amount
- -----------------------------------------------------------------------------------
Structured Notes--2.6%
Citigroup Global Capital Markets Holdings, Inc.,
Zero Coupon Brazilian Real Linked Nts., 23.18%,
5/20/04 1 [BRR] 290,307 78,408
- -----------------------------------------------------------------------------------
Credit Suisse First Boston Corp. (Nassau Branch),
U.S. Dollar/Philippine Peso Linked Nts., 12.50%,
3/5/12 11 [PHP] 32,130,000 552,593
- -----------------------------------------------------------------------------------
Credit Suisse First Boston International, U.S.
Dollar/South African Rand Linked Nts., Series FBi 43,
1.196%, 5/23/22 11 540,000 527,040
- -----------------------------------------------------------------------------------
Deutsche Bank AG:
Mexican Peso Linked Nts., 1.09%, 4/9/12 11 722,940 748,677
Indonesian Rupiah Linked Nts., 14%, 6/22/09 549,138 611,740
Deposit Linked Nts. to Basket Emerging Market
Currencies, 0.98%, 9/24/03 1,140,000 1,193,238
Indonesian Rupiah Linked Nts., 14%, 6/22/09 255,000 280,092
Turkey Treasury Bill Linked Nts., 55.96%, 4/28/04 1 475,198 310,884
Brazilian Real Linked Nts., 4.30%, 4/15/04 285,000 312,958
25 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Structured Notes Continued
JPMorgan Chase Bank, South African Rand Certificate
of Deposit, 1.086%, 6/20/03 [ZAR] 4,824,366 $ 758,030
- -----------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.:
Chilean Peso Unsec. Linked Nts., 0.78%, 6/20/03 [CLP] 210,843,000 298,011
Mexican Nuevo Peso Index Linked Nts., 0.85%,
5/6/03 [MXN] 7,327,121 709,931
- -----------------------------------------------------------------------------------
Standard Chartered Bank, South African Rand Linked
Nts., 13.287%, 7/24/03 [ZAR] 2,151,893 295,816
--------------
6,677,418
--------------
Total International Sector (Cost $77,462,847) 80,015,186
- -----------------------------------------------------------------------------------
Asset-Backed Sector--54.0%
- -----------------------------------------------------------------------------------
Asset-Backed Securities--4.1%
- -----------------------------------------------------------------------------------
Auto Loan--1.1%
BMW Vehicle Owner Trust, Automobile Loan Certificates,
Series 2003-A, Cl. A2, 1.45%, 11/25/05 550,000 550,000
- -----------------------------------------------------------------------------------
Ford Credit Auto Owner Trust, Automobile Installment
Sales, Series 2003-A, Cl. A2A, 1.62%, 8/15/05 450,000 451,056
- -----------------------------------------------------------------------------------
Honda Auto Receivables Owner Trust, Automobile
Receivables Obligations, Series 2003-1, Cl. A2, 1.46%,
9/19/05 490,000 490,681
- -----------------------------------------------------------------------------------
Nissan Auto Receivables Owner Trust, Auto Receivable
Nts., Series 2003-A, Cl. A2, 1.45%, 5/16/05 6 700,000 700,741
- -----------------------------------------------------------------------------------
Toyota Auto Receivables Owner Trust, Automobile
Mortgage-Backed Obligations, Series 2003-A, Cl. A2,
1.28%, 8/15/05 770,000 769,883
--------------
2,962,361
- -----------------------------------------------------------------------------------
Credit Card--0.4%
Consumer Credit Reference Index Securities Program,
Credit Card Asset-Backed Certificates, Series 2002-B,
Cl. FX, 10.421%, 3/22/07 6 1,000,000 1,043,280
- -----------------------------------------------------------------------------------
Home Equity Loan--1.8%
Centex Home Equity Co. LLC, Home Equity Loan
Asset-Backed Certificates, Series 2003-A, Cl. AF1,
1.836%, 10/25/17 177,928 177,771
- -----------------------------------------------------------------------------------
CitiFinancial Mortgage Securities, Inc., Home Equity
Collateralized Mtg. Obligations, Series 2003-1,
Cl. AF1, 1.94%, 1/25/33 6 461,063 461,160
- -----------------------------------------------------------------------------------
Conseco Finance Securitizations Corp., Home Equity
Loan Pass-Through Certificates, Series 2001-D,
Cl. M2, 3.06%, 11/15/32 6,11 2,400,000 2,326,985
- -----------------------------------------------------------------------------------
Principal Residential Mortgage Capital Resources Trust,
Real Estate Mtg. Investment Conduit Participation
Certificates, Series 2000-1, Cl. B, 2.97%,
6/20/05 6,11 1,000,000 986,875
- -----------------------------------------------------------------------------------
Residential Funding Mortgage Securities II, Inc.,
Home Equity Loan Pass-Through Certificates,
Series 2003-HS1, Cl. AI2, 1.422%, 1/25/33 6,11 667,026 666,934
--------------
4,619,725
- -----------------------------------------------------------------------------------
Manufactured Housing--0.8%
Lehman ABS Manufactured Housing Contract, Commercial
Mtg. Pass-Through Certificates, Series 2001-B, Cl. A4,
5.27%, 9/15/18 2,000,000 2,103,481
--------------
10,728,847
26 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Government Agency--45.1%
- -----------------------------------------------------------------------------------
FHLMC/FNMA/Sponsored--44.9%
FHLMC Structured Pass-Through Securities,
Collateralized Mtg. Obligations:
Series H002, Cl. A2, 1.861%, 12/15/06 $ 579,893 $ 579,078
Series H003, Cl. A2, 1.88%, 1/15/07 730,000 733,728
Series H006, Cl. A1, 1.724%, 4/15/08 6 410,000 410,000
- -----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 12%, 5/1/10-6/1/15 259,811 302,710
- -----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg.
Investment Conduit Multiclass Pass-Through Certificates:
Series 2054, Cl. TE, 6.25%, 4/15/24 9,744 9,745
Series 2430, Cl. ND, 6.50%, 1/15/31 5,000,000 5,253,198
- -----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only
Stripped Mtg.-Backed Security, Series 208, Cl. IO,
(45.045)%, 6/1/30 14 1,212,431 138,293
- -----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Multiclass Mtg.
Participation Certificates, Series 1331, Cl. Z,
8%, 4/15/07 215,305 216,811
- -----------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 5/25/33 15 80,182,000 83,464,491
6.50%, 5/25/33 15 4,104,000 4,288,680
6.50%, 1/1/29 2 4,296,673 4,494,842
7%, 9/1/29-12/1/29 754,078 797,603
7%, 5/25/33-6/25/33 15 14,340,000 15,153,976
7.50%, 6/1/10-9/1/29 857,741 916,138
8.50%, 7/1/32 133,294 143,820
11%, 7/1/16 117,936 136,273
13%, 6/1/15 252,887 301,385
--------------
117,340,771
- -----------------------------------------------------------------------------------
GNMA/Guaranteed--0.2%
Government National Mortgage Assn.:
5.75%, 7/20/27 45,717 46,698
7%, 1/15/28-3/15/28 203,047 215,802
11%, 10/20/19 86,576 100,705
12%, 11/20/13-9/20/15 86,593 102,319
--------------
465,524
--------------
117,806,295
- -----------------------------------------------------------------------------------
Private--4.8%
- -----------------------------------------------------------------------------------
Commercial--4.1%
Asset Securitization Corp., Commercial Mtg.
Pass-Through Certificates:
Series 1996-D2, Cl. A3, 7.041%, 2/14/29 11 3,000,000 3,206,664
Series 1995-MD4, Cl. A5, 7.384%, 8/13/29 1,500,000 1,548,006
Series 1997-D4, Cl. B2, 7.525%, 4/14/29 2,000,000 1,663,750
- -----------------------------------------------------------------------------------
Capital Lease Funding Securitization LP, Interest-Only
Corporate-Backed Pass-Through Certificates,
Series 1997-CTL1, 10.959%, 6/22/24 6,14 9,459,504 313,346
- -----------------------------------------------------------------------------------
Commercial Mortgage Acceptance Corp., Interest-Only
Stripped Mtg.-Backed Security, Series 1996-C1,
Cl. X-2, 55.668%, 12/25/20 6,14 2,638,580 412
- -----------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc.,
Interest-Only Stripped Mtg.-Backed Security
Pass-Through Certificates, Series 1997-C1, Cl. X,
8.538%, 7/15/27 14 2,809,442 158,251
27 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Commercial Continued
GMAC Commercial Mortgage Securities, Inc., Mtg.
Pass-Through Certificates, Series 1998-C1, Cl. F,
7.081%, 5/15/30 11 $2,000,000 $ 1,858,431
- -----------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Commercial Mtg.
Pass-Through Certificates, Series 1996-MC2, Cl. F,
5.75%, 12/21/26 1,600,000 1,536,125
- -----------------------------------------------------------------------------------
Prudential Mortgage Capital Co. II LLC, Commercial Mtg.
Pass-Through Certificates, Series PRU-HTG 2000-C1,
Cl. A2, 7.306%, 10/6/15 380,000 447,497
--------------
10,732,482
- -----------------------------------------------------------------------------------
Residential--0.7%
Lehman Structured Securities Corp., Collateralized Mtg.
Obligations, Series 2001-GE4, Cl. A, 8.307%, 10/25/30 11 541,153 552,145
- -----------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII, Inc.,
Commercial Mtg. Pass-Through Certificates, Series 1996-B,
Cl. 1, 6.837%, 4/25/26 6,11 544,620 452,034
- -----------------------------------------------------------------------------------
Washington Mutual Mortgage Securities Corp.,
Collateralized Mtg. Obligations, Pass-Through
Certificates, Series 2002-AR19, Cl. A1, 1.77%,
1/25/33 11 572,877 573,101
- -----------------------------------------------------------------------------------
Wells Fargo Mortgage-Backed Securities Trust,
Collateralized Mtg. Obligations, Series 2003-A, Cl. A1,
1.79%, 2/25/33 6 282,874 285,407
--------------
1,862,687
--------------
12,595,169
--------------
Total Asset-Backed Sector (Cost $139,316,908) 141,130,311
- -----------------------------------------------------------------------------------
Money Market Sector--2.6%
- -----------------------------------------------------------------------------------
Joint Repurchase Agreements--2.6%
Undivided interest of 4.11% in joint repurchase agreement
(Market Value $167,415,000) with Banc One Capital Markets,
Inc., 1.26%, dated 4/30/03, to be repurchased at $6,875,241
on 5/1/03, collateralized by U.S. Treasury Bonds, 2.125%,
8/31/04, with a value of $170,866,412 (Cost $6,875,000) 6,875,000 6,875,000
- -----------------------------------------------------------------------------------
Total Investments, at Value (Cost $360,831,369) 137.2% 358,501,196
- -----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (37.2) (97,248,022)
--------------------------
Net Assets 100.0% $261,253,174
==========================
28 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Footnotes to Statement of Investments
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP Argentine Peso
BRR Brazilian Real
CAD Canadian Dollar
CLP Chilean Peso
DKK Danish Krone
EUR Euro
FRF French Franc
GBP British Pound Sterling
HUF Hungarian Forint
JPY Japanese Yen
MXN Mexican Nuevo Peso
NOK Norwegian Krone
NZD New Zealand Dollar
PHP Philippines Peso
SEK Swedish Krona
ZAR South African Rand
1. Zero coupon bond reflects effective yield on the date of purchase.
2. Securities with an aggregate market value of $4,633,433 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements.
3. A sufficient amount of liquid assets has been designated to cover outstanding
written options, as follows:
Contracts Expiration Exercise Premium Market Value
Calls Subject to Call Dates Price Received See Note 1
- -------------------------------------------------------------------------------------------------
Euro 2,755,000 5/7/03 1.062EUR $33,509 $152,316
Mexican Nuevo Peso 585,000 6/13/03 10.700MXN 6,494 995
- -------------------------------------------------------------------------------------------------
40,003 153,311
----------------------
Contracts
Puts Subject to Put
- -------------------------------------------------------------------------------------------------
Mexican Nuevo Peso 585,000 6/13/03 11.000MXN 13,747 23,663
Principal (000s)
Subject to Put
- -------------------------------------------------------------------------------------------------
Venezuela (Republic of)
Bonds, 9.25%, 9/15/27 $325 6/10/03 64.250% 13,163 3,575
----------------------
26,910 27,238
----------------------
$66,913 $180,549
======================
4. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
5. Non-income producing security.
6. Identifies issues considered to be illiquid or restricted--See Note 10 of
Notes to Financial Statements.
7. Issuer is in default.
8. 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
Trustees. These securities amount to $16,054,904 or 6.15% of the Fund's net
assets as of April 30, 2003.
9. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
10. Interest or dividend is paid-in-kind.
11. Represents the current interest rate for a variable or increasing rate
security.
12. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units, which
represent debt securities, principal amount disclosed represents total
underlying principal.
13. The issuer has filed bankruptcy. This security is valued under guidelines
established by the Board of Trustees and is considered illiquid.
14. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows. These securities amount to $610,302 or 0.23% of the Fund's net assets as
of April 30, 2003.
15. When-issued security to be delivered and settled after April 30, 2003.
See accompanying Notes to Financial Statements
29 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
April 30, 2003
- --------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------
Investments, at value (cost $360,831,369)--see accompanying statement $358,501,196
- --------------------------------------------------------------------------------------
Cash 99,666
- --------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 235,189
- --------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 4,516,408
Investments sold 4,152,425
Swap contract 822
Other 38,564
-------------
Total assets 367,544,270
- --------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------
Bank overdraft-foreign currency (cost $6,610) 6,726
- --------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 227,840
- --------------------------------------------------------------------------------------
Options written, at value (premiums received $66,913)--see
accompanying statement 180,549
- --------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $102,368,012 purchased on a
when-issued basis) 105,030,527
Closed foreign currency contracts 369,175
Daily variation on futures contracts 277,775
Trustees' compensation 58,407
Shareholder reports 55,277
Management and administrative fees 15,973
Other 68,847
-------------
Total liabilities 106,291,096
- --------------------------------------------------------------------------------------
Net Assets $261,253,174
=============
- --------------------------------------------------------------------------------------
Composition of Net Assets
- --------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 292,299
- --------------------------------------------------------------------------------------
Additional paid-in capital 307,442,919
- --------------------------------------------------------------------------------------
Undistributed net investment income 2,776,659
- --------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (46,387,359)
- --------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets
and liabilities denominated in foreign currencies (2,871,344)
-------------
Net Assets--applicable to 29,229,920 shares of beneficial
interest outstanding $261,253,174
=============
- --------------------------------------------------------------------------------------
Net Asset Value Per Share $8.94
See accompanying Notes to Financial Statements.
30 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2003
- -----------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $3,686) $10,533,329
- -----------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $1,630) 74,194
- -----------------------------------------------------------------------------------
Other income 93,717
------------
Total investment income 10,701,240
- -----------------------------------------------------------------------------------
Expenses
Management fees 804,087
- -----------------------------------------------------------------------------------
Shareholder reports 49,913
- -----------------------------------------------------------------------------------
Custodian fees and expenses 21,472
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 14,225
- -----------------------------------------------------------------------------------
Trustees' compensation 7,450
- -----------------------------------------------------------------------------------
Other 19,270
------------
Total expenses 916,417
Less reduction to custodian expenses (2,057)
------------
Net expenses 914,360
- -----------------------------------------------------------------------------------
Net Investment Income 9,786,880
- -----------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (including premiums on options exercised) (4,773,101)
Closing of futures contracts (1,777,814)
Closing and expiration of option contracts written 43,585
Foreign currency transactions 2,013,209
------------
Net realized loss (4,494,121)
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 22,836,081
Translation of assets and liabilities denominated in foreign currencies 1,369,417
------------
Net change 24,205,498
------------
Net realized and unrealized gain 19,711,377
- -----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $29,498,257
============
See accompanying Notes to Financial Statements.
31 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months Year
Ended Ended
April 30, 2003 October 31,
(Unaudited) 2002
- --------------------------------------------------------------------------------------
Operations
Net investment income $ 9,786,880 $ 19,044,945
- --------------------------------------------------------------------------------------
Net realized loss (4,494,121) (5,222,651)
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 24,205,498 (105,724)
------------------------------
Net increase in net assets resulting from operations 29,498,257 13,716,570
- --------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income (7,015,181) (19,468,363)
- --------------------------------------------------------------------------------------
Beneficial Interest Transactions
Proceeds from shares issued to shareholders
in reinvestment of dividends -- 355,582
- --------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 22,483,076 (5,396,211)
- --------------------------------------------------------------------------------------
Beginning of period 238,770,098 244,166,309
------------------------------
End of period [including undistributed net investment
income of $2,776,659 and $4,960, respectively] $261,253,174 $238,770,098
==============================
See accompanying Notes to Financial Statements.
32 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
(Unaudited) 2002 2001 2000 1999 1998
- -------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.17 $8.37 $8.85 $9.45 $9.82 $10.61
- -------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .33 .65 .78 .86 .87 .79
Net realized and unrealized gain (loss) .68 (.18) (.44) (.62) (.43) (.75)
----------------------------------------------------------
Total from investment operations 1.01 .47 .34 .24 .44 .04
- -------------------------------------------------------------------------------------------------------
Dividend and/or distributions to shareholders:
Dividends from net investment income (.24) (.67) (.79) (.68) (.81) (.78)
Tax return of capital distribution -- -- (.03) (.16) -- (.05)
----------------------------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.67) (.82) (.84) (.81) (.83)
- -------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.94 $8.17 $8.37 $8.85 $9.45 $9.82
==========================================================
Market value, end of period $8.15 $7.36 $8.08 $7.88 $8.06 $9.38
==========================================================
- -------------------------------------------------------------------------------------------------------
Total Return, at Market Value 1 12.53% (1.35)% 12.79% 6.93% (6.64)% 0.17%
- -------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $261,253 $238,770 $244,166 $257,629 $275,181 $285,907
- -------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $248,404 $243,498 $251,362 $269,849 $285,213 $304,773
- -------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.95% 7.82% 8.99% 9.27% 8.86% 7.56%
Expenses 0.74% 0.82% 0.75% 0.84% 1.03% 1.01% 3
- -------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% 70% 133% 104% 159% 402%
<FN>
1. Assumes a purchase at the current market price on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and a sale at the current market
price on the last business day of the period. Total return does not reflect
sales charges or brokerage commissions.
2. Annualized for periods of less than one full year.
3. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
</FN>
See accompanying Notes to Financial Statements.
33 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Multi-Sector Income Trust (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a closed-end management
investment company. The Fund's investment objective is to seek high current
income consistent with preservation of capital. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
Structured Notes. The Fund invests in foreign currency-linked structured notes
whose market values and redemption prices are linked to foreign currency
exchange rates. The Fund also invests in "index-linked" notes whose principal
and/or interest payments depend on the performance of an underlying index. The
structured notes are leveraged, which increases the volatility of each note's
market value relative to the change in the underlying foreign currency exchange
rate or underlying index. Fluctuations in value of these securities are recorded
as unrealized gains and losses in the accompanying financial statements. The
Fund records a realized gain or loss when a structured note is sold or matures.
As of April 30, 2003, the market value of these securities comprised 2.7% of the
Fund's net assets and resulted in unrealized gains in the current period of
$322,631. The Fund also hedges a portion of the foreign currency exposure
generated by these securities, as discussed in Note 5.
- --------------------------------------------------------------------------------
Securities on a When-Issued Basis. Delivery and payment for securities that have
been purchased by the Fund on a when-issued basis can take place a month or more
after the trade date. Normally the settlement date occurs within six months
after the trade date; however, the Fund may, from time to time, purchase
securities whose settlement date extends six months or more beyond trade date.
During this period, such securities do not earn interest, are subject to market
fluctuation and may increase or decrease in value prior to their delivery. The
Fund maintains segregated assets with a market value equal to or greater than
the amount of its purchase commitments. The purchase of securities on a
when-issued basis may increase the volatility of the Fund's net asset value to
the extent the Fund makes such purchases while remaining substantially fully
34 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
invested. As of April 30, 2003, the Fund had entered into when-issued purchase
commitments of $102,368,012.
In connection with its ability to purchase securities on a when-issued basis,
the Fund may enter into forward roll transactions with respect to
mortgage-related securities. Forward roll transactions require the sale of
securities for delivery in the current month, and a simultaneous agreement with
the same counterparty to repurchase similar (same type, coupon and maturity) but
not identical securities on a specified future date. The forward roll may not
extend for a period of greater than one year. The Fund generally records the
incremental difference between the forward purchase and sell of each forward
roll as interest income.
Risks to the Fund of entering into forward roll transactions include the
potential inability of the counterparty to meet the terms of the agreement; the
potential of the Fund to receive inferior securities to what was sold to the
counterparty at redelivery; counterparty credit risk; and the potential pay down
speed variance between the mortgage-related pools.
- --------------------------------------------------------------------------------
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. As of April 30, 2003, securities with an
aggregate market value of $3,509,835, representing 1.34% of the Fund's net
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 foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
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 Statement of Operations.
- --------------------------------------------------------------------------------
Joint Repurchase Agreements. The Fund, along with other affiliated funds of the
Manager, may transfer uninvested cash balances into one or more joint repurchase
agreement accounts. These balances are invested in one or more repurchase
agreements, secured by U.S. government securities. Securities pledged as
collateral for repurchase agreements are held by a custodian bank until the
agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal; however,
in the event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
35 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Federal 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 capital loss carryforwards, if any, to shareholders.
Therefore, no federal income or excise tax provision is required.
As of April 30, 2003, the Fund had available for federal income tax purposes
an estimated unused capital loss carryforward of $44,662,884. This estimated
capital loss carryforward represents the carryforward as of the end of the last
fiscal year, increased for losses deferred under tax accounting rules for the
current fiscal year and is increased or decreased by capital losses or gains
realized in the first six months of the current fiscal year. During the six
months ended April 30, 2003, the Fund did not use carryforward to offset capital
gains realized. During the year ended October 31, 2002, the Fund did not use
carryforward to offset capital gains realized.
As of October 31, 2002, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
Expiring
----------------------
2003 $ 7,982,990
2006 1,509,541
2007 11,561,894
2008 5,440,197
2009 4,239,210
2010 9,434,931
-----------
Total $40,168,763
===========
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
April 30, 2003, the Fund's projected benefit obligations were increased by
$2,717 and payments of $12,435 were made to retired trustees, resulting in an
accumulated liability of $57,507 as of April 30, 2003.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
Under the plan, the compensation deferred is invested by the Fund in the fund(s)
selected by the trustee. Deferral of trustees' fees under the plan will not
affect the net assets of the Fund, and will not materially affect the Fund's
assets, liabilities or net investment income per share.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-distribution date. The Board of Trustees, in an effort to
maintain a stable net asset value per share in the event of an additional
distribution, may declare, effective on the ex-distribution date of an
additional distribution, a reverse split of the shares of the
36 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Fund in an amount that will cause the total number of shares held by each
shareholder, including shares acquired on reinvestment of that distribution, to
remain the same as before that distribution was paid. Also, in an effort to
maintain a stable net asset value per share, the Fund may distribute return of
capital dividends.
- --------------------------------------------------------------------------------
Investment Income. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
Six Months Ended April 30, 2003 Year Ended October 31, 2002
Shares Amount Shares Amount
-------------------------------------------------------------
Net increase from
dividends reinvested -- $-- 42,436 $355,582
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended April 30, 2003, were
$135,256,546 and $132,504,985, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for an annual fee of
0.65% on the Fund's average annual net assets.
- --------------------------------------------------------------------------------
Transfer Agent Fees. Shareholder Financial Services, Inc. (SFSI), a wholly-owned
subsidiary of the Manager, is the transfer agent and registrar for the Fund.
Fees paid to SFSI are based on the number of accounts and the number of
shareholder transactions, plus out-of-pocket costs and expenses.
37 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. Risks to the Fund include the potential
inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities as a receivable or payable and in the Statement of
Operations with the change in unrealized appreciation or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Such realized gains and losses are reported with
all other foreign currency gains and losses in the Statement of Operations.
As of April 30, 2003, the Fund had outstanding foreign currency contracts as
follows:
Expiration Contract Valuation
Amount as of Unrealized Unrealized
Contract Description Dates (000s) April 30, 2003 Appreciation Depreciation
- ------------------------------------------------------------------------------------------------------
Contracts to Purchase
Australian Dollar [AUD] 5/30/03-
6/5/03 2,690AUD $1,677,201 $ 27,795 $ --
Brazilian Real [BRR] 4/19/04-
4/23/04 4,174BRR 1,208,004 68,004 --
British Pound Sterling [GBP] 8/18/03 400GBP 634,851 11,651 --
Canadian Dollar [CAD] 6/5/03 1,225CAD 852,074 11,173 --
Euro [EUR] 5/27/03-
7/16/03 39,600EUR 4,413,501 102,712 --
Mexican Nuevo Peso [MXN] 6/13/03 3,066MXN 295,823 823 --
New Zealand Dollar [NZD] 5/30/03 1,140NZD 635,277 4,857 --
Norwegian Krone [NOK] 5/30/03 4,265NOK 607,481 7,030 --
-------------------------
234,045 --
-------------------------
Contracts to Sell
Brazilian Real [BRR] 5/12/03-
5/23/03 4,665BRR 1,595,086 -- 100,269
British Pound Sterling [GBP] 8/18/03-
9/8/03 1,390GBP 2,204,913 -- 19,835
Euro [EUR] 5/6/03-
10/8/03 2,935EUR 3,270,608 1,144 78,038
Japanese Yen [JPY] 5/30/03-
6/09/03 319,000JPY 2,678,616 -- 13,958
Philippines Peso [PHP] 7/28/03 31,527PHP 588,946 -- 13,946
Swiss Franc [CHF] 5/30/03 845CHF 623,575 -- 1,794
-------------------------
1,144 227,840
-------------------------
Total Unrealized Appreciation and Depreciation $235,189 $227,840
=========================
38 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
- --------------------------------------------------------------------------------
6. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices "financial futures" or debt securities "interest rate
futures" in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to market changes as it may
be more efficient or cost effective than actually buying fixed income
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (initial margin) in an amount equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin. Realized gains
and losses are reported on the Statement of Operations as closing and expiration
of futures contracts.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of April 30, 2003, the Fund had outstanding futures contracts as follows:
Unrealized
Expiration Number of Valuation as of Appreciation
Contract Description Dates Contracts April 30, 2003 (Depreciation)
- ----------------------------------------------------------------------------------------------
Contracts to Purchase
DAX Index 6/20/03 4 $ 327,323 $ 18,952
Euro-Bundesobligation 6/6/03 35 4,399,551 26,081
FTSE 100 Index 6/20/03 1 62,540 770
Japan (Government of) Bonds, 10 yr. 6/10/03 7 842,571 4,883
NASDAQ 100 Index 6/19/03 10 1,108,000 81,200
United Kingdom Long Gilt 6/26/03 2 383,836 2,664
----------
134,550
----------
Contracts to Sell
Japan (Government of) Bonds, 10 yr. 6/11/03 1 1,204,092 (1,521)
U.S. Long Bonds 6/19/03 29 3,306,906 (68,250)
U.S. Treasury Nts., 2 yr. 6/26/03 294 63,476,438 (296,935)
U.S. Treasury Nts., 5 yr. 6/19/03 217 24,683,750 (124,467)
U.S. Treasury Nts., 10 yr. 6/19/03 79 9,094,875 (106,906)
----------
(598,079)
----------
$(463,529)
==========
39 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. 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.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities.
Realized gains and losses are reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. The Fund also has the additional risk of not being able to enter into
a closing transaction if a liquid secondary market does not exist.
Written option activity for the six months ended April 30, 2003 was as follows:
Call Options Put Options
------------------------------- ---------------------------------
Principal (000s)/ Principal (000s)/
Number of Amount of Number of Amount of
Contracts Premiums Contracts Premiums
- -----------------------------------------------------------------------------------------
Options outstanding as of
October 31, 2002 -- $ -- -- $ --
Options written 3,931,745 65,307 1,746,010 79,080
Options closed or expired (590,000) (6,549) (1,160,685) (52,170)
Options exercised (1,745) (18,755) -- --
------------------------------------------------------------
Options outstanding as of
April 30, 2003 3,340,000 $40,003 585,325 $ 26,910
============================================================
- --------------------------------------------------------------------------------
8. Interest Rate Swap Contracts
The Fund may enter into an interest rate swap transaction to seek to maintain a
total return or yield spread on a particular investment or portion of its
portfolio, or for other non-speculative purposes. Interest rate swaps involve
the exchange of commitments to pay or receive interest, e.g., an exchange of
floating rate payments for fixed rate
40 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
payments. The coupon payments are based on an agreed upon principal amount and a
specified index. Because the principal amount is not exchanged, it represents
neither an asset nor a liability to either counterparty, and is referred to as a
notional principal amount. The Fund records an increase or decrease to interest
income, in the amount due to or owed by the Fund at termination or settlement.
Interest rate swaps are subject to credit risk (if the counterparty fails to
meet its obligations) and interest rate risk. The Fund could be obligated to pay
more under its swap agreements than it receives under them, as a result of
interest rate changes.
As of April 30, 2003, the Fund had entered into the following interest rate swap
agreements:
Floating Rate
Rate Paid by Received by Unrealized
Notional the Fund at the Fund at Floating Termination Appreciation
Swap Counterparty Principal April 30, 2003 April 30, 2003 Rate Index Date (Depreciation)
- ----------------------------------------------------------------------------------------------------------------
Three-Month
LIBOR BBA
Deutsche Bank $1,820,000 3.1025% 1.33063% flat 3/4/08 $ 7,368
Three-Month
USD LIBOR
JPMorgan Chase Bank 6,140,000 3.052 1.31750 BBA Rate 3/10/08 43,824
Three-Month
LIBOR BBA
JPMorgan Chase Bank 2,580,000 3.230 1.34000 flat 2/24/08 (3,684)
-------
$47,508
=======
- --------------------------------------------------------------------------------
9. Credit Swap Transactions
The Fund may enter into a credit swap transaction to seek to maintain a total
return on a particular investment or portion of its portfolio, or for other
non-speculative purposes. Because the principal amount is not exchanged, it
represents neither an asset nor a liability to either counterparty, and is
referred to as a notional principal amount. The Fund records an increase or
decrease to interest income, in the amount due to or owed by the Fund at
termination or settlement. Credit swaps are subject to credit risks (if the
counterparty fails to meet its obligations).
During the six months ended April 30, 2003, the Fund entered into a transaction
to hedge credit risk. The Fund pays an annual 2% interest fee on the notional
amount in exchange for the counterparty paying in a potential credit event.
Information regarding the credit swap is as follows:
Unrealized
Expiration Notional Valuation as of Appreciation
Contract Description Date Amount April 30, 2003 (Depreciation)
- -----------------------------------------------------------------------------------
Deutsche Bank AG, Venezuela
(Republic of) Credit Nts. 4/9/06 $175,000 $(28,690) $(28,690)
Deutsche Bank AG, Venezuela
(Republic of) Credit Nts. 4/10/06 280,000 (18,377) (18,377)
JPMorgan Chase Bank, Jordan
(Kingdom of) Credit Nts. 6/6/06 175,000 381 381
---------
$(46,686)
=========
41 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
10. Illiquid or Restricted Securities
As of April 30, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may also be
considered illiquid if it lacks a readily available market or if its valuation
has not changed for a certain period of time. The Fund intends to invest no more
than 10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of April 30, 2003 was $17,854,575,
which represents 6.83% of the Fund's net assets, of which $6,726 is considered
restricted. Information concerning restricted securities is as follows:
Acquisition Valuation as of Unrealized
Security Date Cost April 30, 2003 Depreciation
- --------------------------------------------------------------------------------
Currency
Argentine Peso (overdraft) 1/15/02 $6,610 $6,726 $116
- --------------------------------------------------------------------------------
11. Borrowing and Lending Arrangements
Interfund Borrowing and Lending Arrangements. The Fund entered into an
"interfund borrowing and lending arrangement" with other funds in the
Oppenheimer funds complex, to allow funds to borrow for liquidity purposes. The
arrangement was initiated pursuant to exemptive relief granted by the Securities
and Exchange Commission to allow these affiliated funds to lend money to, and
borrow money from, each other, in an attempt to reduce borrowing costs below
those of bank loan facilities. Under the arrangement the Fund may lend money to
other Oppenheimer funds and may borrow from other Oppenheimer funds at a rate
set by the Fund's Board of Trustees, based upon a recommendation by the
investment manager. The Fund's borrowings, if any, are subject to asset coverage
requirements under the Investment Company Act and the provisions of the SEC
order and other applicable regulations. If the Fund borrows money, there is a
risk that the loan could be called on one day's notice, in which case the Fund
might have to borrow from a bank at higher rates if a loan were not available
from another Oppenheimer fund. If the Fund lends money to another fund, it will
be subject to the risk that the other fund might not repay the loan in a timely
manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the period
ended or at April 30, 2003.
42 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
GENERAL INFORMATION CONCERNING THE FUND
Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Oppenheimer Multi-Sector Income Trust (the Fund) is a closed-end diversified
management investment company with a primary investment objective of seeking
high current income consistent with preservation of capital. The Fund's
secondary investment objective is capital appreciation. In seeking its
objectives under normal market conditions, the Fund may invest any percentage of
its assets in at least three of the following seven fixed income sectors: U.S.
Government, Corporate, International, Asset-Backed, Municipal, Convertible and
Money Market. Current income, preservation of capital and, secondarily, possible
capital appreciation may be considerations in the allocation of assets among
such sectors. The Fund can invest in a number of different kinds of "derivative
investments" and can also engage in certain special investment techniques,
including repurchase transactions, when-issued and delayed delivery transactions
and hedging. Although, the Fund is not required to invest in any of these types
of securities at all times. The investment advisor to the Fund is
OppenheimerFunds, Inc. (the Manager).
The Portfolio Managers of the Fund are Arthur Steinmetz and Caleb Wong. Mr.
Steinmetz is a Vice President of the Fund and a Senior Vice President of the
Advisor and Mr. Wong is Vice President of the Advisor and the Fund. Messrs.
Steinmetz and Wong have been the persons principally responsible for the
day-to-day management of the Fund's portfolio since February 1, 1999. Prior to
February 1999, Mr. Steinmetz served as a portfolio manager and officer of other
Oppenheimer funds. Mr. Wong worked on fixed-income quantitative research and
risk management for the Advisor since July 1996, prior to which he was enrolled
in the Ph.D. program for Economics as the University of Chicago. Other members
of the Advisor's fixed-income portfolio department, particularly portfolio
analysts, traders and other portfolio managers provide the Fund's Portfolio
Managers with support in managing the Fund's portfolio.
Dividend Reinvestment and Cash Purchase Plan--Pursuant to the Fund's Dividend
Reinvestment and Cash Purchase Plan (the Plan), as to shares of the Fund
(Shares) not registered in nominee name, all dividends and capital gains
distributions (Distributions) declared by the Fund will be automatically
reinvested in additional full and fractional Shares unless a shareholder elects
to receive cash. If Shares are registered in nominee name, the shareholder
should consult the nominee if the shareholder desires to participate in the
Plan. Shareholders that participate in the Plan (Participants) may, at their
option, make additional cash investments in Shares, semi-annually in amounts of
at least $100, through payment to Shareholder Financial Services, Inc., the
agent for the Plan (the Agent), accompanied by a service fee of $0.75.
Depending upon the circumstances hereinafter described, Plan Shares will be
acquired by the Agent for the Participant's account through receipt of newly
issued Shares or the purchase of outstanding Shares on the open market. If the
market price of Shares on the relevant date (normally the payment date) equals
or exceeds their net asset value, the Agent will ask the Fund for payment of the
Distribution in additional Shares at the greater of the Fund's net asset value
determined as of the date of purchase or 95% of the then-current market price.
If the market price is lower than net asset value, the Distribution will be paid
in cash, which the Agent will use to buy Shares on The New
43 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
GENERAL INFORMATION CONCERNING THE FUND
Unaudited / Continued
- --------------------------------------------------------------------------------
York Stock Exchange (the NYSE), or otherwise on the open market to the extent
available. If the market price exceeds the net asset value before the Agent has
completed its purchases, the average purchase price per Share paid by the Agent
may exceed the net asset value, resulting in fewer Shares being acquired than if
the Distribution had been paid in Shares issued by the Fund.
Participants may elect to withdraw from the Plan at any time and thereby
receive cash in lieu of Shares by sending appropriate written instructions to
the Agent. Elections received by the Agent will be effective only if received
more than ten days prior to the record date for any Distribution; otherwise,
such termination will be effective shortly after the investment of such
Distribution with respect to any subsequent Distribution. Upon withdrawal from
or termination of the Plan, all Shares acquired under the Plan will remain in
the Participant's account unless otherwise requested. For full Shares, the
Participant may either: (1) receive without charge a share certificate for such
Shares; or (2) request the Agent (after receipt by the Agent of signature
guaranteed instructions by all registered owners) to sell the Shares acquired
under the Plan and remit the proceeds less any brokerage commissions and a $2.50
service fee.
Fractional Shares may either remain in the Participant's account or be
redeemed at the current market price with the proceeds remitted to the
Participant. Shareholders who have previously withdrawn from the Plan may rejoin
at any time by sending written instructions signed by all registered owners to
the Agent.
There is no direct charge for participation in the Plan; all fees of the
Agent are paid by the Fund. There are no brokerage charges for Shares issued
directly by the Fund. However, each Participant will pay a pro rata share of
brokerage commissions incurred with respect to open market purchases of Shares
to be issued under the Plan. Participants will receive tax information annually
for their personal records and to assist in federal income tax return
preparation. The automatic reinvestment of Distributions does not relieve
Participants of any income tax that may be payable on Distributions.
The Plan may be terminated or amended at any time upon 30 days' prior written
notice to Participants which, with respect to a Plan termination, must precede
the record date of any Distribution by the Fund. Additional information
concerning the Plan may be obtained by shareholders holding Shares registered
directly in their names by writing the Agent, Shareholder Financial Services,
Inc., P.O. Box 173673, Denver, CO 80217-3673 or by calling 1-800-647-7374.
Shareholders holding Shares in nominee name should contact their brokerage firm
or other nominee for more information.
Shareholder Information--The Shares are traded on the NYSE. Daily market prices
for the Fund's shares are published in the New York Stock Exchange Composite
Transaction section of newspapers under the designation "OppenMlti." The Fund's
NYSE trading symbol is OMS.Weekly net asset value (NAV) and market price
information about the Fund is generally published each Monday in The Wall Street
Journal and each Sunday in The New York Times and each Saturday in Barron's, and
other newspapers in a table called "Closed-End Bond Funds."
44 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
On May 1, 2003, a special shareholder meeting was held at which the three
Trustees identified below were elected and the selection of KPMG LLP as the
independent certified public accountants and auditors of the Fund for the fiscal
year beginning November 1, 2002 was ratified (Proposal No. 1) as described in
the Fund's proxy statement for that meeting. The following is a report of the
votes cast:
Nominee For Withheld Total
- -----------------------------------------------------------------------------------
Trustees
Joel W. Motley 25,346,620.264 716,477.447 26,063,097.711
John V. Murphy 25,300,301.833 762,795.878 26,063,097.711
Clayton K. Yeutter 25,322,748.219 740,349.492 26,063,097.711
For Against Abstain Total
- -----------------------------------------------------------------------------------
Proposal No. 1 25,383,416.691 452,759.365 226,921.655 26,063,097.711
45 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
OPPENHEIMER MULTI-SECTOR INCOME TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Trustees and Officers Clayton K. Yeutter, Chairman and Trustee
Donald W. Spiro, Vice Chairman and Trustee
John V. Murphy, President and Trustee
Robert G. Galli, Trustee
Phillip A. Griffiths, Trustee
Joel W. Motley, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Arthur Steinmetz, Vice President
Caleb Wong, Vice President
Robert G. Zack, Secretary
Brian W. Wixted, Treasurer
- --------------------------------------------------------------------------------
Investment Advisor OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
Transfer Agent Shareholder Financial Services, Inc.
and Registrar
- --------------------------------------------------------------------------------
Independent Auditors KPMG LLP
- --------------------------------------------------------------------------------
Legal Counsel Mayer Brown Rowe & Maw
For more information about Oppenheimer Multi-Sector Income Trust, please refer
to the Prospectus. To obtain a copy, call your financial advisor.
The financial statements included herein have been taken from the records of the
Fund without examination of those records by the independent auditors.
(C)Copyright 2003 OppenheimerFunds, Inc. All rights reserved.
- ------------------------------------------------------
Not part of the semiannual report to Fund shareholders
- ------------------------------------------------------
46 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRIVACY POLICY NOTICE
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you are entitled to know how we protect your
personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the
following sources:
o Applications or other forms
o Your transactions with us, our affiliates or others
Protection of Information
We do not disclose any nonpublic personal information (such as names on a
customer list) about current or former customers to anyone, except as permitted
by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations,
account statements and other documents reporting activity in your fund accounts.
We may also use details about you and your investments to help us, our financial
service affiliates or firms that jointly market their financial products and
services with ours, to better serve your investment needs or suggest financial
services or educational material that may be of interest to you.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties
(except as permitted by law), unless we first offer you a reasonable opportunity
to refuse or "opt out" of such disclosure.
Emails
As a security measure, we do not include personal or account information in
nonsecure emails, and we advise you not to send such information to us in
nonsecure emails.
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your
personal account information. Our employees and agents have access to that
information only so that they may offer you products or provide services to you,
for example, when responding to your account questions.
- --------------------------------------------------------------------------------
This joint notice describes the privacy policies of Oppenheimer funds,
OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual
Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7)
tax-sheltered custodial accounts. It applies to the Oppenheimer fund accounts
you presently have, or may open in the future, using your Social Security
number--whether or not you remain a shareholder of our funds. If you have any
questions about these privacy policies, write to us at P.O. Box 5270, Denver CO
80217-5270, email us by clicking on the Contact Us section of our website at
www.oppenheimerfunds.com or call us at 1.800.CALL OPP (1.800.225.5677).
- ------------------------------------------------------
Not part of the semiannual report to Fund shareholders
- ------------------------------------------------------
47 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
This page intentionally left blank.
[LOGO]
OppenheimerFunds[R]
Distributor, Inc.
RS0680.001.0403 June 27, 2003
ITEM 2. CODE OF ETHICS - NOT REQUIRED
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. RESERVED
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of April 30, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)