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 811-2849
Oppenheimer High Yield Fund
(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
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: June 30
Date of reporting period: July 1, 2002 - June 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended June 30, 2003, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
Management's Discussion of Fund Performance.
Oppenheimer High Yield Fund Class A shares (without sales charge) delivered a
total return of 16.38% for the twelve months ended June 30, 2003. This compares
to a one-year total return of 21.11% for the Merrill Lynch Master High Yield
Index and an average one-year total return of 19.16% for the Fund's Lipper peer
group of high-yield funds.
The Fund's monthly dividend distribution declined three times during this
period, from $0.0722 in July 2002 to $0.0616 on June 30, 2003. Defaults on
several of the Fund's holdings along with a falling interest environment, caused
a decline in cash flow from coupon payments, and thus, a reduction in the Fund's
current-income distributions.
Prior to October 2002, corporate bonds in general, and high-yield issues in
particular, were in the grip of a vicious bear market. The combination of a
stagnant economy, corporate accounting- and governance-based scandals and the
earliest misgivings about war in the Middle East led to a crescendo of selling
in the early fall. With the market in a freefall, we opted to trade some of the
lowest-rated bonds, which were suffering the most, for higher-rated (e.g.,
single-B) high-yield bonds and even some investment-grade bonds. As it turned
out, the lower-rated issues enjoyed the biggest rebound between July and
December. This, plus an overweight in telecommunications and cable TV
securities, led to an initial period of underperformance versus the peer group.
In the latter half of the period, market conditions turned around
dramatically once signs of economic resurgence in the U.S. emerged. The
industrial sectors that had been most critically wounded recovered the
fastest--areas such as telecommunications, technology and utilities. Since this
past January default rates, too, have improved, falling to roughly 6%.
With improved conditions and a rallying market, the Fund posted a stronger
second half. This rebound was largely due to the overweighting in
telecommunications and cable TV securities, which had hurt the Fund early in its
fiscal year. Within telecommunications, we chose to concentrate on wireless
carriers, because we believe there remains great capacity for growth. Some of
these holdings were the Fund's strongest performers in the second half of the
period as investor confidence improved. Among the Fund's top holdings was Crown
Castle International Corp., a wireless service company that builds and operates
towers for communications antennas. As a result of these overweightings, we
reduced our holdings in cyclical companies, such as manufacturers and autos.
Also adding to results were utilities investments initiated or augmented
after this past January. Following a prolonged period when utilities companies
had difficulty securing financing, lenders eased credit restrictions. The
outlook for the energy-generation industry brightened, triggering advances for
the Fund's holdings of Tennessee Gas Pipeline Co. and Dynegy Holdings, Inc.
Conversely, the Fund's underweighting in the technology sector hindered results.
Technology was one of the market's best-performing sectors during the
5 | OPPENHEIMER HIGH YIELD FUND
FUND PERFORMANCE DISCUSSION
second half of the period. However, we tended to stay away from certain tech
issues that we felt were too risky. This decision caused us to miss out on
capturing as much of the rally as our peers and led to some of the Fund's
relative underperformance.
During the period, the Fund had a change in portfolio management. On February
5, 2003, Art Steinmetz, along with Dimitrios Kourkoulakos (Fund co-portfolio
manager since June 2002), assumed responsibility for the Fund's day-to-day
management. They both also serve as officers and portfolio managers of other
Oppenheimer funds. The Fund's company-by-company approach is based on a
conservative philosophy in analyzing credits and monitoring corporate issues to
detect fundamental problems and potential risks, while at the same time
discovering opportunities for growth.
Finally, a return of capital was declared the end of this fiscal period that
will be realized by investors later this year. This return of capital was the
result of sales of securities purchased at a more favorable foreign currency
rate in 1997, that when sold created currency losses that were recognized in
this fiscal period.
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until June 30, 2003. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from the inception of the Class on November 1, 1995. In
the case of Class N shares, performance is measured from inception of the Class
on March 1, 2001. In the case of Class Y shares, performance is measured from
inception of the class on October 15, 1997. The Fund's performance reflects the
deduction of the maximum initial sales charge on Class A shares and the
applicable contingent deferred sales charge for Class B, Class C and Class N
shares. The graphs assume that all dividends and capital gains distributions
were reinvested in additional shares.
The Fund's performance is compared to the performance of the Merrill Lynch
High Yield Bond Master Index and Lehman Brothers Credit Index (formerly Lehman
Brothers Corporate Bond Index). The Merrill Lynch High Yield Bond Master Index
is an index of below investment grade (ratings are generally comparable to below
BBB of S&P's Credit Rating System) U.S. corporate issuers. It is widely
recognized as a measure of the U.S. corporate high yield bond market. The Lehman
Brothers Credit Index is an unmanaged index of publicly issued nonconvertible
investment grade corporate debt of U.S. issuers, widely recognized as a measure
of the U.S. fixed-rate corporate bond market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Funds performance, it
must be noted that the Funds investments are not limited to the investments in
the index.
6 | OPPENHEIMER HIGH YIELD FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer High Yield Fund (Class A)
Merrill Lynch High Yield Bond Master Index
Lehman Brothers Credit Index
[LINE CHART]
Oppenheimer Merrill Lynch Lehman
High Yield High Yield Bond Brothers
Fund (Class A) Master Index Credit Index
06/30/93 9,525 10,000 10,000
09/30/93 9,721 10,254 10,347
12/31/93 10,264 10,610 10,332
03/31/94 10,130 10,413 9,968
06/30/94 10,122 10,293 9,812
09/30/94 10,205 10,433 9,883
12/31/94 10,021 10,486 9,926
03/31/95 10,342 11,119 10,514
06/30/95 10,840 11,824 11,296
09/30/95 11,160 12,169 11,563
12/31/95 11,531 12,574 12,134
03/31/96 11,944 12,757 11,821
06/30/96 12,167 12,932 11,874
09/30/96 12,707 13,437 12,112
12/31/96 13,176 13,965 12,533
03/31/97 13,166 14,111 12,407
06/30/97 13,762 14,781 12,918
09/30/97 14,469 15,360 13,423
12/31/97 14,747 15,756 13,815
03/31/98 15,391 16,195 14,026
06/30/98 15,460 16,466 14,388
09/30/98 14,317 15,877 14,909
12/31/98 14,762 16,333 14,999
03/31/99 15,318 16,510 14,893
06/30/99 15,351 16,621 14,660
09/30/99 15,150 16,413 14,701
12/31/99 15,377 16,590 14,706
03/31/00 15,174 16,291 14,916
06/30/00 15,460 16,393 15,100
09/30/00 15,539 16,615 15,563
12/31/00 14,779 15,961 16,087
03/31/01 15,421 16,953 16,774
06/30/01 14,889 16,738 16,953
09/30/01 13,862 16,062 17,603
12/31/01 14,770 16,952 17,760
03/31/02 14,763 17,283 17,713
06/30/02 14,075 16,222 18,226
09/30/02 13,495 15,710 19,043
12/31/02 14,124 16,758 19,630
03/31/03 14,980 17,914 20,100
06/30/03 16,381 19,646 21,064
Average Annual Total Returns of Class A Shares of the Fund at 6/30/03*
1-Year 10.85% 5-Year 0.18% 10-Year 5.06%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer High Yield Fund (Class B)
Merrill Lynch High Yield Bond Master Index
Lehman Brothers Credit Index
[LINE CHART]
Oppenheimer Merrill Lynch Lehman
High Yield High Yield Bond Brothers
Fund (Class B) Master Index Credit Index
06/30/93 10,000 10,000 10,000
09/30/93 10,184 10,254 10,347
12/31/93 10,733 10,610 10,332
03/31/94 10,558 10,413 9,968
06/30/94 10,531 10,293 9,812
09/30/94 10,595 10,433 9,883
12/31/94 10,384 10,486 9,926
03/31/95 10,698 11,119 10,514
06/30/95 11,185 11,824 11,296
09/30/95 11,487 12,169 11,563
12/31/95 11,848 12,574 12,134
03/31/96 12,252 12,757 11,821
06/30/96 12,459 12,932 11,874
09/30/96 12,981 13,437 12,112
12/31/96 13,437 13,965 12,533
03/31/97 13,403 14,111 12,407
06/30/97 13,977 14,781 12,918
09/30/97 14,663 15,360 13,423
12/31/97 14,917 15,756 13,815
03/31/98 15,533 16,195 14,026
06/30/98 15,584 16,466 14,388
09/30/98 14,394 15,877 14,909
12/31/98 14,816 16,333 14,999
03/31/99 15,338 16,510 14,893
06/30/99 15,351 16,621 14,660
09/30/99 15,151 16,413 14,701
12/31/99 15,377 16,590 14,706
03/31/00 15,174 16,291 14,916
06/30/00 15,460 16,393 15,100
09/30/00 15,540 16,615 15,563
12/31/00 14,779 15,961 16,087
03/31/01 15,421 16,953 16,774
06/30/01 14,890 16,738 16,953
09/30/01 13,862 16,062 17,603
12/31/01 14,771 16,952 17,760
03/31/02 14,763 17,283 17,713
06/30/02 14,075 16,222 18,226
09/30/02 13,495 15,710 19,043
12/31/02 14,124 16,758 19,630
03/31/03 14,980 17,914 20,100
06/30/03 16,381 19,646 21,064
Average Annual Total Returns of Class B Shares of the Fund at 6/30/03*
1-Year 10.60% 5-Year 0.15% 10-Year 5.06%
*See Notes on page 10 for further details.
The performance information for the indices in the graphs begins on 6/30/93 for
Class A and Class B, 10/31/95 for Class C, 2/28/01 for Class N and 9/30/97 for
Class Y shares. Past performance cannot guarantee future results. Graphs are not
drawn to same scale.
7 | OPPENHEIMER HIGH YIELD FUND
FUND PERFORMANCE DISCUSSION
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Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer High Yield Fund (Class C)
Merrill Lynch High Yield Bond Master Index
Lehman Brothers Credit Index
[LINE CHART]
Oppenheimer Merrill Lynch Lehman
High Yield High Yield Bond Brothers
Fund (Class C) Master Index Credit Index
11/01/95 10,000 10,000 10,000
12/31/95 10,218 10,260 10,359
03/31/96 10,561 10,409 10,092
06/30/96 10,736 10,552 10,137
09/30/96 11,182 10,964 10,340
12/31/96 11,580 11,395 10,700
03/31/97 11,549 11,514 10,592
06/30/97 12,048 12,061 11,028
09/30/97 12,627 12,533 11,460
12/31/97 12,854 12,856 11,795
03/31/98 13,390 13,214 11,975
06/30/98 13,424 13,436 12,283
09/30/98 12,405 12,955 12,729
12/31/98 12,766 13,327 12,806
03/31/99 13,222 13,471 12,715
06/30/99 13,224 13,562 12,516
09/30/99 13,026 13,392 12,551
12/31/99 13,196 13,537 12,555
03/31/00 12,996 13,293 12,735
06/30/00 13,217 13,376 12,892
09/30/00 13,260 13,557 13,287
12/31/00 12,585 13,023 13,734
03/31/01 13,108 13,833 14,321
06/30/01 12,632 13,657 14,473
09/30/01 11,736 13,106 15,028
12/31/01 12,483 13,832 15,163
03/31/02 12,468 14,102 15,123
06/30/02 11,864 13,236 15,560
09/30/02 11,353 12,818 16,258
12/31/02 11,845 13,673 16,759
03/31/03 12,542 14,617 17,161
06/30/03 13,692 16,030 17,984
Average Annual Total Returns of Class C Shares of the Fund at 6/30/03*
1-Year 14.41% 5-Year 0.40% Since Inception 4.19%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer High Yield Fund (Class N)
Merrill Lynch High Yield Bond Master Index
Lehman Brothers Credit Index
[LINE CHART]
Oppenheimer Merrill Lynch Lehman
High Yield High Yield Bond Brothers
Fund (Class N) Master Index Credit Index
03/01/01 10,000 10,000 10,000
03/31/01 9,682 9,868 10,062
06/30/01 9,357 9,743 10,169
09/30/01 8,711 9,349 10,559
12/31/01 9,278 9,867 10,653
03/31/02 9,278 10,060 10,625
06/30/02 8,840 9,442 10,932
09/30/02 8,471 9,144 11,423
12/31/02 8,864 9,754 11,775
03/31/03 9,394 10,427 12,057
06/30/03 10,262 11,436 12,635
Average Annual Total Returns of Class N Shares of the Fund at 6/30/03*
1-Year 15.08% Since Inception 1.11%
*See Notes on page 10 for further details.
8 | OPPENHEIMER HIGH YIELD FUND
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer High Yield Fund (Class Y)
Merrill Lynch High Yield Bond Master Index
Lehman Brothers Credit Index
[LINE CHART]
Oppenheimer Merrill Lynch Lehman
High Yield High Yield Bond Brothers
Fund (Class Y) Master Index Credit Index
10/15/97 10,000 10,000 10,000
12/31/97 10,078 10,258 10,292
03/31/98 10,518 10,544 10,449
06/30/98 10,581 10,721 10,718
09/30/98 9,798 10,337 11,107
12/31/98 10,111 10,634 11,174
03/31/99 10,493 10,749 11,095
06/30/99 10,524 10,821 10,921
09/30/99 10,387 10,686 10,952
12/31/99 10,545 10,801 10,956
03/31/00 10,407 10,606 11,112
06/30/00 10,614 10,673 11,249
09/30/00 10,679 10,817 11,594
12/31/00 10,145 10,392 11,984
03/31/01 10,592 11,037 12,496
06/30/01 10,235 10,897 12,629
09/30/01 9,529 10,457 13,113
12/31/01 10,151 11,036 13,231
03/31/02 10,160 11,252 13,196
06/30/02 9,686 10,561 13,578
09/30/02 9,287 10,228 14,187
12/31/02 9,715 10,910 14,624
03/31/03 10,311 11,663 14,974
06/30/03 11,284 12,791 15,692
Average Annual Total Returns of Class Y Shares of the Fund at 6/30/03*
1-Year 16.51% 5-Year 1.29% Since Inception 2.14%
The performance information for the indices in the graphs begins on 6/30/93 for
Class A and Class B, 10/31/95 for Class C, 2/28/01 for Class N and 9/30/97 for
Class Y shares.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER HIGH YIELD FUND
NOTES
In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graph includes changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677). Read the prospectus
carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 7/28/78. The Fund's
maximum sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower. Class A returns include the current maximum
initial sales charge of 4.75%.
Class B shares of the Fund were first publicly offered on 5/3/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "since inception" return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 10/15/97. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS June 30, 2003
Principal Market Value
Amount See Note 1
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Asset-Backed Securities--0.0%
Goldman Sachs Asset Management CBO Ltd., Sub. Collateralized Bond
Obligations, Series 1A, Cl. D, 12.54%, 6/13/11 1 (Cost $2,032,136) $ 2,258,663 $ 135,520
- ------------------------------------------------------------------------------------------------------------------
Mortgage-Backed Obligations--1.1%
First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through Certificates,
Series 1997-CHL1, Cl. E, 9.939%, 4/29/39 1,2 5,250,000 4,607,694
- ------------------------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc., Interest-Only Stripped
Mtg.-Backed Security Pass-Through Certificates, Series 1997-C1, Cl. X,
8.494%, 7/15/27 3 59,429,304 3,430,616
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Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through Certificates:
Series 1997-RR, Cl. D, 7.642%, 4/30/39 2,4 5,000,269 4,776,058
Series 1997-RR, Cl. F, 7.642%, 4/30/39 2,4 9,000,485 6,322,350
------------
Total Mortgage-Backed Obligations (Cost $19,785,742) 19,136,718
- ------------------------------------------------------------------------------------------------------------------
Foreign Government Obligations--0.2%
United Mexican States Bonds, Bonos de Desarrollo, 14.50%, 5/12/05 2 [MXN]
(Cost $4,079,376) 39,735,700 4,353,764
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Loan Participations--0.0%
Telergy, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche A, 11.111%,
1/1/02 1,5,6 (Cost $3,864,760) 3,945,448 --
- ------------------------------------------------------------------------------------------------------------------
Corporate Bonds and Notes--79.2%
- ------------------------------------------------------------------------------------------------------------------
Consumer Discretionary--21.9%
- ------------------------------------------------------------------------------------------------------------------
Auto Components--1.5%
Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts., Series B, 2/15/10 1 1,500,000 1,575,000
- ------------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11 1,550,000 1,371,750
- ------------------------------------------------------------------------------------------------------------------
Dana Corp.:
9% Unsec. Nts., 8/15/11 5,970,000 6,492,375
10.125% Nts., 3/15/10 1,800,000 1,993,500
- ------------------------------------------------------------------------------------------------------------------
Dura Operating Corp.:
8.625% Sr. Nts., Series B, 4/15/12 3,500,000 3,605,000
9% Sr. Sub. Nts., Series B, 5/1/09 [EUR] 800,000 849,779
9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 600,000 555,000
- ------------------------------------------------------------------------------------------------------------------
Exide Corp., 10% Sr. Unsec. Nts., 4/15/05 1,5,6 3,200,000 80,000
- ------------------------------------------------------------------------------------------------------------------
Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 1,000,000 1,150,000
- ------------------------------------------------------------------------------------------------------------------
Metaldyne Corp., 11% Sr. Sub. Nts., 6/15/12 2,150,000 1,795,250
- ------------------------------------------------------------------------------------------------------------------
Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 3,450,000 3,881,250
- ------------------------------------------------------------------------------------------------------------------
Tenneco Automotive, Inc., 10.25% Sr. Sec. Nts., 7/15/13 4 1,700,000 1,729,750
- ------------------------------------------------------------------------------------------------------------------
United Components, Inc., 9.375% Sr. Sub. Nts., 6/15/13 4 1,300,000 1,355,250
------------
26,433,904
- ------------------------------------------------------------------------------------------------------------------
Automobiles--0.5%
DirecTV Holdings LLC, 8.375% Sr. Nts., 3/15/13 4 7,750,000 8,680,000
11 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--5.6%
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 1 $3,080,000 $1,093,400
- ----------------------------------------------------------------------------------------------------------
Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 1,300,000 1,413,750
- ----------------------------------------------------------------------------------------------------------
Boca Resorts, Inc., 9.875% Sr. Sub. Nts., 4/15/09 4,800,000 5,196,000
- ----------------------------------------------------------------------------------------------------------
Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 3,000,000 3,300,000
- ----------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 1,5,6 22,500 --
- ----------------------------------------------------------------------------------------------------------
Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09 2,500,000 2,687,500
- ----------------------------------------------------------------------------------------------------------
Dominos, Inc., 8.25% Sr. Sub. Nts., 7/1/11 4 2,650,000 2,749,375
- ----------------------------------------------------------------------------------------------------------
Family Restaurants, Inc., 10.875% Sr. Sub. Disc. Nts., 2/1/04 1,5,6 450,000 3,937
- ----------------------------------------------------------------------------------------------------------
Herbst Gaming, Inc., 10.75% Sr. Sec. Nts., 9/1/08 700,000 775,250
- ----------------------------------------------------------------------------------------------------------
Hilton Hotels Corp.:
7.625% Nts., 5/15/08 3,000,000 3,240,000
7.625% Nts., 12/1/12 900,000 990,000
- ----------------------------------------------------------------------------------------------------------
Hollywood Park, Inc., 9.25% Sr. Unsec. Sub. Nts., Series B, 2/15/07 2,300,000 2,277,000
- ----------------------------------------------------------------------------------------------------------
Intrawest Corp., 9.75% Sr. Nts., 8/15/08 3,200,000 3,356,000
- ----------------------------------------------------------------------------------------------------------
Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12 2,200,000 2,409,000
- ----------------------------------------------------------------------------------------------------------
John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B, 5/15/12 3,150,000 3,323,250
- ----------------------------------------------------------------------------------------------------------
Jupiters Ltd., 8.50% Sr. Unsec. Nts., 3/1/06 1 5,200,000 5,746,000
- ----------------------------------------------------------------------------------------------------------
Mandalay Resort Group:
9.375% Sr. Sub. Nts., 2/15/10 3,500,000 3,972,500
10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07 3,000,000 3,405,000
- ----------------------------------------------------------------------------------------------------------
MGM Mirage, Inc., 8.375% Sr. Unsec. Sub. Nts., 2/1/11 2,500,000 2,856,250
- ----------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority:
8% Sr. Sub. Nts., 4/1/12 1,300,000 1,410,500
8.375% Sr. Sub. Nts., 7/1/11 1,000,000 1,087,500
8.75% Sr. Unsec. Sub. Nts., 1/1/09 1,500,000 1,623,750
- ----------------------------------------------------------------------------------------------------------
Park Place Entertainment Corp., 7.875% Sr. Sub. Nts., 3/15/10 3,700,000 3,996,000
- ----------------------------------------------------------------------------------------------------------
Penn National Gaming, Inc.:
8.875% Sr. Sub. Nts., 3/15/10 900,000 958,500
11.125% Sr. Unsec. Sub. Nts., 3/1/08 6,000,000 6,675,000
- ----------------------------------------------------------------------------------------------------------
Premier Parks, Inc., 9.75% Sr. Nts., 6/15/07 1,050,000 1,044,750
- ----------------------------------------------------------------------------------------------------------
Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 1,700,000 1,640,500
- ----------------------------------------------------------------------------------------------------------
Royal Caribbean Cruises Ltd.:
8% Sr. Unsec. Nts., 5/15/10 650,000 679,250
8.75% Sr. Unsub. Nts., 2/2/11 2,600,000 2,769,000
- ----------------------------------------------------------------------------------------------------------
Six Flags, Inc.:
8.875% Sr. Nts., 2/1/10 1,600,000 1,544,000
9.75% Sr. Nts., 4/15/13 4 5,100,000 5,074,500
- ----------------------------------------------------------------------------------------------------------
Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr. Nts., 5/1/12 5,550,000 6,105,000
- ----------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.875% Sr. Unsec. Sub. Nts., 7/1/10 200,000 221,000
- ----------------------------------------------------------------------------------------------------------
Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub. Nts., 8/15/11 3,200,000 3,480,000
- ----------------------------------------------------------------------------------------------------------
Trump Casino Holdings LLC/Trump Casino Funding, Inc., 11.625% Nts.,
3/15/10 4 2,300,000 2,208,000
- ----------------------------------------------------------------------------------------------------------
Universal City Development Partners, 11.75% Sr. Nts., 4/1/10 1 2,700,000 2,976,750
- ----------------------------------------------------------------------------------------------------------
Vail Resorts, Inc., 8.75% Sr. Unsec. Sub. Nts., 5/15/09 1 1,800,000 1,890,000
12 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure Continued
Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11% Sec. Nts., 6/15/10 $ 3,300,000 $ 3,737,250
- ----------------------------------------------------------------------------------------------------------
Yum! Brands, Inc., 7.70% Sr. Nts., 7/1/12 200,000 229,000
-----------
98,144,462
- ----------------------------------------------------------------------------------------------------------
Household Durables--2.3%
Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 3,300,000 3,671,250
- ----------------------------------------------------------------------------------------------------------
D.R. Horton, Inc.:
9.375% Sr. Unsec. Sub. Nts., 3/15/11 1 2,000,000 2,210,000
9.75% Sr. Sub. Nts., 9/15/10 800,000 914,000
- ----------------------------------------------------------------------------------------------------------
Del Webb Corp., 10.25% Sr. Unsec. Sub. Debs., 2/15/10 6,500,000 7,117,500
- ----------------------------------------------------------------------------------------------------------
Interface, Inc., 10.375% Sr. Nts., 2/1/10 1,500,000 1,447,500
- ----------------------------------------------------------------------------------------------------------
K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12 1,500,000 1,646,250
- ----------------------------------------------------------------------------------------------------------
KB Home:
8.625% Sr. Sub. Nts., 12/15/08 2,750,000 3,135,000
9.50% Sr. Unsec. Sub. Nts., 2/15/11 2,000,000 2,272,500
- ----------------------------------------------------------------------------------------------------------
Meritage Corp., 9.75% Sr. Unsec. Nts., 6/1/11 1,000,000 1,110,000
- ----------------------------------------------------------------------------------------------------------
Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 2,300,000 2,323,000
- ----------------------------------------------------------------------------------------------------------
Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 1 1,200,000 1,353,000
- ----------------------------------------------------------------------------------------------------------
Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 1,750,000 1,968,750
- ----------------------------------------------------------------------------------------------------------
WCI Communities, Inc.:
9.125% Sr. Sub. Nts., 5/1/12 1,100,000 1,177,000
10.625% Sr. Unsec. Sub. Nts., 2/15/11 4,600,000 5,106,000
- ----------------------------------------------------------------------------------------------------------
William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 2,500,000 2,668,750
- ----------------------------------------------------------------------------------------------------------
Williams Scotsman, Inc., 9.875% Sr. Unsec. Nts., 6/1/07 2,600,000 2,561,000
-----------
40,681,500
- ----------------------------------------------------------------------------------------------------------
Leisure Equipment & Products--0.2%
Remington Arms Co., Inc., 10.50% Sr. Nts., 2/1/11 4 2,300,000 2,415,000
- ----------------------------------------------------------------------------------------------------------
Media--8.9%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 5,6 2,000,000 1,250,000
8.375% Sr. Nts., Series B, 2/1/08 5,6 2,700,000 1,687,500
9.875% Sr. Nts., Series B, 3/1/07 5,6 2,200,000 1,369,500
10.25% Sr. Unsec. Nts., 11/1/06 5,6 4,600,000 2,829,000
10.25% Sr. Unsec. Sub. Nts., 6/15/11 5,6 200,000 129,000
10.875% Sr. Unsec. Nts., 10/1/10 5,6 1,500,000 937,500
- ----------------------------------------------------------------------------------------------------------
Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/12 2,300,000 2,386,250
- ----------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 10,000,000 10,400,000
- ----------------------------------------------------------------------------------------------------------
American Media, Inc., 8.875% Sr. Sub. Nts., 1/15/11 4 2,700,000 2,936,250
- ----------------------------------------------------------------------------------------------------------
Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 1,100,000 1,204,500
- ----------------------------------------------------------------------------------------------------------
Callahan Nordrhein-Westfalen GmbH, 14.125% Sr. Nts., 7/15/11 1,5,6 [EUR] 1,000,000 51,676
- ----------------------------------------------------------------------------------------------------------
CanWest Media, Inc., 7.625% Sr. Nts., 4/15/13 4 900,000 960,750
- ----------------------------------------------------------------------------------------------------------
CBD Media, Inc./CBD Finance, 8.625% Sr. Sub. Nts., 6/1/11 4 700,000 724,500
13 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------
Media Continued
Charter Communications Holdings LLC/Charter Communications
Holdings Capital Corp.:
0%/11.75% Sr. Unsec. Sub. Disc. Nts., 5/15/11 7 $ 4,500,000 $ 2,295,000
0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11 7 14,000,000 9,275,000
8.625% Sr. Unsec. Nts., 4/1/09 12,600,000 9,135,000
10% Sr. Nts., 4/1/09 1,000,000 770,000
10% Sr. Unsec. Sub. Nts., 5/15/11 1,000,000 725,000
10.75% Sr. Unsec. Nts., 10/1/09 900,000 702,000
11.125% Sr. Unsec. Nts., 1/15/11 1,200,000 936,000
- -----------------------------------------------------------------------------------------------------------
Cinemark USA, Inc., 9% Sr. Sub. Nts., 2/1/13 2,500,000 2,725,000
- -----------------------------------------------------------------------------------------------------------
Classic Cable, Inc., 10.50% Sr. Sub. Nts., 3/1/10 1,5,6 2,500,000 --
- -----------------------------------------------------------------------------------------------------------
Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 1,500,000 1,620,000
- -----------------------------------------------------------------------------------------------------------
CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B, 4/1/11 14,150,000 14,362,250
- -----------------------------------------------------------------------------------------------------------
Diva Systems Corp., 12.625% Sr. Unsec. Disc. Nts., Series B, 3/1/08 1,5,6 2,500,000 153,125
- -----------------------------------------------------------------------------------------------------------
EchoStar DBS Corp.:
9.125% Sr. Nts., 1/15/09 2,500,000 2,806,250
9.375% Sr. Unsec. Nts., 2/1/09 4,500,000 4,820,625
10.375% Sr. Unsec. Nts., 10/1/07 3,600,000 4,005,000
- -----------------------------------------------------------------------------------------------------------
Emmis Communications Corp.:
0%/12.50% Sr. Unsec. Disc. Nts., 3/15/11 7 7,505,000 6,529,350
8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 1,150,000 1,210,375
- -----------------------------------------------------------------------------------------------------------
Entercom Radio LLC/Entercom Capital, Inc., 7.625% Sr. Unsec. Sub. Nts.,
3/1/14 1,500,000 1,642,500
- -----------------------------------------------------------------------------------------------------------
Entravision Communications Corp., 8.125% Sr. Sub. Nts., 3/15/09 1,400,000 1,463,000
- -----------------------------------------------------------------------------------------------------------
Gray Television, Inc., 9.25% Sr. Sub. Nts., 12/15/11 1,750,000 1,942,500
- -----------------------------------------------------------------------------------------------------------
Hollinger International Publishing, Inc., 9% Sr. Unsec. Nts., 12/15/10 2,700,000 2,902,500
- -----------------------------------------------------------------------------------------------------------
Houghton Mifflin Co., 8.25% Sr. Nts., 2/1/11 4 2,500,000 2,650,000
- -----------------------------------------------------------------------------------------------------------
Insight Midwest LP/Insight Capital, Inc., 9.75% Sr. Nts., 10/1/09 350,000 371,875
- -----------------------------------------------------------------------------------------------------------
Lamar Media Corp., 7.25% Sr. Unsec. Sub. Nts., 1/1/13 1,000,000 1,065,000
- -----------------------------------------------------------------------------------------------------------
Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 4 1,800,000 1,804,500
- -----------------------------------------------------------------------------------------------------------
LodgeNet Entertainment Corp., 9.50% Sr. Sub. Debs., 6/15/13 1,350,000 1,390,500
- -----------------------------------------------------------------------------------------------------------
Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13 850,000 903,125
- -----------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 400,000 512,690
- -----------------------------------------------------------------------------------------------------------
PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 5,100,000 5,546,250
- -----------------------------------------------------------------------------------------------------------
PRIMEDIA, Inc., 8% Sr. Nts., 5/15/13 4 4,500,000 4,635,000
- -----------------------------------------------------------------------------------------------------------
R.H. Donnelley Financial Corp. I:
8.875% Sr. Nts., 12/15/10 4 2,600,000 2,886,000
10.875% Sr. Sub. Nts., 12/15/12 4 3,900,000 4,563,000
- -----------------------------------------------------------------------------------------------------------
Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 1,450,000 1,602,250
- -----------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc., 9.375% Sr. Sub. Nts., Series B, 2/1/12 3,050,000 3,377,875
- -----------------------------------------------------------------------------------------------------------
Rogers Communications, Inc., 8.75% Sr. Nts., 7/15/07 [CAD] 3,030,000 2,302,465
- -----------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8% Sr. Sub. Nts., 3/15/12 3,250,000 3,485,625
8% Sr. Sub. Nts., 3/15/12 4 2,800,000 3,003,000
8.75% Sr. Sub. Nts., 12/15/11 1,250,000 1,378,125
- -----------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub. Nts., 11/1/09 5,000,000 5,337,500
14 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- -------------------------------------------------------------------------------------------------------------
Media Continued
United Pan-Europe Communications NV:
0%/13.375% Sr. Unsec. Disc. Nts., Series B, 11/1/09 5,6,7 $ 2,000,000 $ 295,000
0%/13.75% Sr. Unsec. Disc. Nts., Series B, 2/1/10 5,6,7 5,000,000 712,500
10.875% Sr. Unsec. Nts., Series B, 8/1/09 5,6 3,000,000 660,000
11.25% Sr. Nts., Series B, 11/1/09 1,5,6 [EUR] 1,500,000 333,739
- -------------------------------------------------------------------------------------------------------------
Vertis, Inc.:
9.75% Sr. Sec. Nts., 4/1/09 4 1,350,000 1,410,750
10.875% Sr. Unsec. Nts., Series B, 6/15/09 1,000,000 1,005,000
- -------------------------------------------------------------------------------------------------------------
Vivendi Universal SA, 9.25% Sr. Nts., 4/15/10 4 2,500,000 2,856,250
- -------------------------------------------------------------------------------------------------------------
WRC Media, Inc./Weekly Reader Corp./Compass Learning Corp.,
12.75% Sr. Sub. Nts., 11/15/09 4,000,000 4,185,000
------------
155,159,920
- -------------------------------------------------------------------------------------------------------------
Multiline Retail--0.5%
J. C. Penney Co., Inc.:
7.60% Nts., 4/1/07 2,400,000 2,532,000
8% Nts., 3/1/10 2,500,000 2,631,250
- -------------------------------------------------------------------------------------------------------------
Saks, Inc.:
8.25% Sr. Unsec. Nts., 11/15/08 1,500,000 1,593,750
9.875% Nts., 10/1/11 1 1,900,000 2,147,000
------------
8,904,000
- -------------------------------------------------------------------------------------------------------------
Specialty Retail--2.0%
Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 2,900,000 2,813,000
- -------------------------------------------------------------------------------------------------------------
AutoNation, Inc., 9% Sr. Unsec. Nts., 8/1/08 3,000,000 3,345,000
- -------------------------------------------------------------------------------------------------------------
Building Materials Corp., 8% Sr. Nts., 12/1/08 1,350,000 1,255,500
- -------------------------------------------------------------------------------------------------------------
CSK Auto, Inc., 12% Sr. Unsec. Nts., 6/15/06 7,000,000 7,805,000
- -------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 9.125% Sr. Unsec. Sub. Nts., 5/1/08 1 1,000,000 935,000
- -------------------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., 9% Debs., 5/1/08 3,985,000 4,044,775
- -------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 1 2,100,000 2,184,000
- -------------------------------------------------------------------------------------------------------------
Gap, Inc. (The):
6.90% Nts., 9/15/07 2,900,000 3,139,250
10.55% Unsub. Nts., 12/15/08 800,000 976,000
- -------------------------------------------------------------------------------------------------------------
Hollywood Entertainment Corp., 9.625% Sr. Sub. Nts., 3/15/11 2,800,000 3,076,500
- -------------------------------------------------------------------------------------------------------------
Just For Feet, Inc., 11% Sr. Sub. Nts., 5/1/09 1,5,6 700,000 --
- -------------------------------------------------------------------------------------------------------------
Petco Animal Supplies, Inc., 10.75% Sr. Sub. Nts., 11/1/11 1 3,500,000 4,007,500
- -------------------------------------------------------------------------------------------------------------
Rent-A-Center, Inc., 7.50% Sr. Sub. Nts., 5/1/10 4 1,100,000 1,160,500
- -------------------------------------------------------------------------------------------------------------
United Auto Group, Inc., 9.625% Sr. Unsec. Sub. Nts., 3/15/12 150,000 161,250
------------
34,903,275
- -------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.4%
Consoltex Group, Inc., 11% Sr. Sub. Nts., 1/31/09 1,8 4,227,524 423
- -------------------------------------------------------------------------------------------------------------
Galey & Lord, Inc., 9.125% Sr. Unsec. Sub. Nts., 3/1/08 1,5,6 2,900,000 32,625
- -------------------------------------------------------------------------------------------------------------
Levi Strauss & Co.:
11.625% Sr. Unsec. Nts., 1/15/08 1,900,000 1,638,750
12.25% Sr. Nts., 12/15/12 2,100,000 1,758,750
15 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods Continued
Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 4 $ 1,250,000 $ 1,318,750
- ----------------------------------------------------------------------------------------------------------
Phillips/Van Heusen Corp., 8.125% Sr. Nts., 5/1/13 1 900,000 928,125
- ----------------------------------------------------------------------------------------------------------
Russell Corp., 9.25% Sr. Nts., 5/1/10 1 1,500,000 1,642,500
-----------
7,319,923
- ----------------------------------------------------------------------------------------------------------
Consumer Staples--3.5%
- ----------------------------------------------------------------------------------------------------------
Beverages--0.4%
Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12 2,000,000 2,170,000
- ----------------------------------------------------------------------------------------------------------
Packaged Ice, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/1/05 5,500,000 5,582,500
-----------
7,752,500
- ----------------------------------------------------------------------------------------------------------
Food & Staples Retailing--0.6%
Delhaize America, Inc., 8.125% Unsub. Debs., 4/15/11 2,100,000 2,310,000
- ----------------------------------------------------------------------------------------------------------
Fleming Cos., Inc.:
10.125% Sr. Unsec. Nts., 4/1/08 5 2,100,000 325,500
10.625% Sr. Unsec. Sub. Nts., Series D, 7/31/07 1,5 400,000 2,500
- ----------------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11 800,000 752,000
- ----------------------------------------------------------------------------------------------------------
Ingles Markets, Inc., 8.875% Sr. Unsec. Sub. Nts., 12/1/11 1,000,000 1,011,250
- ----------------------------------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 1,600,000 1,656,000
- ----------------------------------------------------------------------------------------------------------
Rite Aid Corp.:
8.125% Sr. Sec. Nts., 5/1/10 4 2,650,000 2,756,000
9.50% Sr. Sec. Nts., 2/15/11 4 1,600,000 1,728,000
-----------
10,541,250
- ----------------------------------------------------------------------------------------------------------
Food Products--1.6%
American Seafood Group LLC, 10.125% Sr. Sub. Nts., 4/15/10 1 3,500,000 3,990,000
- ----------------------------------------------------------------------------------------------------------
Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 5 1,600,000 572,000
- ----------------------------------------------------------------------------------------------------------
Burns Philp Capital Pty Ltd., 9.75% Sr. Sub. Nts., 7/15/12 4 1,450,000 1,421,000
- ----------------------------------------------------------------------------------------------------------
Del Monte Corp.:
8.625% Sr. Sub. Nts., 12/15/12 4 3,300,000 3,514,500
9.25% Sr. Unsec. Sub. Nts., 5/15/11 1,450,000 1,558,750
- ----------------------------------------------------------------------------------------------------------
Doane Pet Care Co., 10.75% Sr. Nts., 3/1/10 2,600,000 2,847,000
- ----------------------------------------------------------------------------------------------------------
Dole Food Co., Inc.:
8.625% Sr. Nts., 5/1/09 2,500,000 2,656,250
8.875% Sr. Nts., 3/15/11 4 1,300,000 1,384,500
- ----------------------------------------------------------------------------------------------------------
Michael Foods, Inc., 11.75% Sr. Unsec. Sub. Nts., 4/1/11 1 1,600,000 1,848,000
- ----------------------------------------------------------------------------------------------------------
New World Pasta Co., 9.25% Sr. Nts., 2/15/09 500,000 160,000
- ----------------------------------------------------------------------------------------------------------
Smithfield Foods, Inc.:
7.625% Sr. Unsec. Sub. Nts., 2/15/08 2,240,000 2,312,800
8% Sr. Nts., Series B, 10/15/09 400,000 435,000
- ----------------------------------------------------------------------------------------------------------
Swift & Co., 10.125% Sr. Nts., 10/1/09 4 2,500,000 2,612,500
- ----------------------------------------------------------------------------------------------------------
United Biscuits Finance plc, 10.625% Sr. Sub. Nts., 4/15/11 [EUR] 2,000,000 2,606,754
-----------
27,919,054
16 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------
Household Products--0.7%
AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 1 $ 4,200,000 $ 4,326,000
- -----------------------------------------------------------------------------------------------------------
Armkel LLC/Armkel Finance, Inc., 9.50% Sr. Sub. Nts., 8/15/09 1,900,000 2,128,000
- -----------------------------------------------------------------------------------------------------------
Holmes Products Corp., 9.875% Sr. Sub. Nts., Series C, 11/15/07 1 500,000 448,750
- -----------------------------------------------------------------------------------------------------------
Playtex Products, Inc., 9.375% Sr. Unsec. Sub. Nts., 6/1/11 3,800,000 3,819,000
- -----------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05 1,600,000 1,564,000
- -----------------------------------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08 1,5,6 1,200,000 --
-----------
12,285,750
- -----------------------------------------------------------------------------------------------------------
Personal Products--0.2%
French Fragrances, Inc., 10.375% Gtd. Sr. Unsec. Nts., Series D, 5/15/07 2,900,000 2,994,250
- -----------------------------------------------------------------------------------------------------------
Energy--5.6%
- -----------------------------------------------------------------------------------------------------------
Energy Equipment & Services--1.6%
BRL Universal Equipment Corp., 8.875% Sr. Sec. Nts., 2/15/08 3,000,000 3,270,000
- -----------------------------------------------------------------------------------------------------------
Dresser, Inc., 9.375% Sr. Sub. Nts., 4/15/11 1,200,000 1,242,000
- -----------------------------------------------------------------------------------------------------------
Grant Geophysical, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/15/08 1,5 4,015,000 1,023,825
- -----------------------------------------------------------------------------------------------------------
Grant Prideco Escrow Corp., 9% Sr. Unsec. Nts., 12/15/09 1,500,000 1,672,500
- -----------------------------------------------------------------------------------------------------------
Hanover Equipment Trust 2001A, 8.50% Sr. Sec. Nts., Series A, 9/1/08 1,500,000 1,582,500
- -----------------------------------------------------------------------------------------------------------
Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts., 8/1/08 7,000,000 7,752,500
- -----------------------------------------------------------------------------------------------------------
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 7,250,000 6,062,813
- -----------------------------------------------------------------------------------------------------------
Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 1,500,000 1,689,375
- -----------------------------------------------------------------------------------------------------------
Universal Compression, Inc., 7.25% Sr. Nts., 5/15/10 4 2,500,000 2,600,000
-----------
26,895,513
- -----------------------------------------------------------------------------------------------------------
Oil & Gas--4.0%
Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07 4,000,000 3,800,000
- -----------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp.:
7.75% Sr. Unsec. Nts., 1/15/15 1,300,000 1,394,250
8.125% Sr. Unsec. Nts., 4/1/11 700,000 757,750
8.375% Sr. Unsec. Nts., 11/1/08 1,100,000 1,196,250
9% Sr. Nts., 8/15/12 3,500,000 3,920,000
- -----------------------------------------------------------------------------------------------------------
El Paso Energy Partners LP:
8.50% Sr. Sub. Nts., 6/1/10 4 1,500,000 1,612,500
8.50% Sr. Unsec. Sub. Nts., Series B, 6/1/11 4,250,000 4,568,750
10.625% Sr. Sub. Nts., 12/1/12 1,850,000 2,146,000
- -----------------------------------------------------------------------------------------------------------
Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 2,000,000 2,090,000
- -----------------------------------------------------------------------------------------------------------
Frontier Escrow Corp., 8% Sr. Nts., 4/15/13 4 1,200,000 1,260,000
- -----------------------------------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 6,000,000 6,630,000
- -----------------------------------------------------------------------------------------------------------
Leviathan Gas Pipeline Partners LP/Leviathan Finance Corp.,
10.375% Sr. Unsec. Sub. Nts., Series B, 6/1/09 1 3,750,000 4,021,875
- -----------------------------------------------------------------------------------------------------------
Newfield Exploration Co., 8.375% Sr. Sub. Nts., 8/15/12 2,850,000 3,224,062
- -----------------------------------------------------------------------------------------------------------
Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12 1,000,000 1,147,488
- -----------------------------------------------------------------------------------------------------------
Pogo Producing Co., 8.75% Sr. Sub. Nts., Series B, 5/15/07 1 4,000,000 4,140,000
- -----------------------------------------------------------------------------------------------------------
Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 3,200,000 3,552,000
17 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ---------------------------------------------------------------------------------------------------------------
Oil & Gas Continued
Stone Energy Corp.:
8.25% Sr. Unsec. Sub. Nts., 12/15/11 $ 3,500,000 $ 3,710,000
8.75% Sr. Sub. Nts., 9/15/07 2,510,000 2,616,675
- ---------------------------------------------------------------------------------------------------------------
Teekay Shipping Corp., 8.875% Sr. Nts., 7/15/11 3,175,000 3,496,469
- ---------------------------------------------------------------------------------------------------------------
Tesoro Petroleum Corp.:
8% Sr. Sec. Nts., 4/15/08 4 2,300,000 2,369,000
9.625% Sr. Sub. Nts., 4/1/12 7,050,000 6,486,000
- ---------------------------------------------------------------------------------------------------------------
Westport Resources Corp., 8.25% Sr. Unsec. Sub. Nts., 11/1/11 5,500,000 6,050,000
-----------
70,189,069
- ---------------------------------------------------------------------------------------------------------------
Financials--2.7%
- ---------------------------------------------------------------------------------------------------------------
Capital Markets--0.1%
Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 3,700,000 1,757,500
- ---------------------------------------------------------------------------------------------------------------
Commercial Banks--0.2%
ABN Amro Bank NV (NY Branch), 4% Sec. Nts., 11/5/17 2 2,069,459 1,138,887
- ---------------------------------------------------------------------------------------------------------------
Bank Plus Corp., 12% Sr. Nts., 7/18/07 1 78,000 83,948
- ---------------------------------------------------------------------------------------------------------------
Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12 1,700,000 1,844,500
-----------
3,067,335
- ---------------------------------------------------------------------------------------------------------------
Diversified Financial Services--0.4%
AmeriCredit Corp., 9.875% Sr. Nts., 4/15/06 500,000 492,500
- ---------------------------------------------------------------------------------------------------------------
Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 2,500,000 2,762,500
- ---------------------------------------------------------------------------------------------------------------
Finova Group, Inc. (The), 7.50% Nts., 11/15/09 2,300,000 1,012,000
- ---------------------------------------------------------------------------------------------------------------
LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07 2,500,000 2,862,500
-----------
7,129,500
- ---------------------------------------------------------------------------------------------------------------
Insurance--0.1%
Conseco, Inc., 10.75% Sr. Unsec. Nts., 6/15/09 1,5,6 1,000,000 545,000
- ---------------------------------------------------------------------------------------------------------------
Texas Gas Transmission Corp., 7.25% Debs., 7/15/27 1 1,000,000 1,144,700
-----------
1,689,700
- ---------------------------------------------------------------------------------------------------------------
Real Estate--1.9%
Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 2,250,000 2,047,500
- ---------------------------------------------------------------------------------------------------------------
CB Richard Ellis Services, Inc., 11.25% Sr. Unsec. Sub. Nts., 6/15/11 1 400,000 431,000
- ---------------------------------------------------------------------------------------------------------------
Corrections Corp. of America:
7.50% Sr. Nts., 5/1/11 1,350,000 1,417,500
9.875% Sr. Nts., 5/1/09 1,500,000 1,681,875
- ---------------------------------------------------------------------------------------------------------------
Felcor Lodging LP:
9% Sr. Nts., 6/1/11 2,405,000 2,435,062
10% Sr. Unsec. Nts., 9/15/08 800,000 830,000
- ---------------------------------------------------------------------------------------------------------------
Felcor Suites LP, 7.375% Sr. Nts., 10/1/04 1,200,000 1,221,000
- ---------------------------------------------------------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr. Nts., Series B, 8/1/08 5,500,000 5,610,000
- ---------------------------------------------------------------------------------------------------------------
Host Marriott LP, 9.50% Sr. Nts., 1/15/07 4,800,000 5,184,000
- ---------------------------------------------------------------------------------------------------------------
iStar Financial, Inc., 8.75% Sr. Unsec. Nts., 8/15/08 200,000 219,000
18 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------
Real Estate Continued
MeriStar Hospitality Corp.:
8.75% Sr. Unsec. Sub. Nts., 8/15/07 $ 1,200,000 $ 1,086,000
9.125% Sr. Unsec. Nts., 1/15/11 2,650,000 2,610,250
- ------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 9.75% Sr. Sec. Nts., Series B, 4/1/08 9,100,000 9,145,500
------------
33,918,687
- ------------------------------------------------------------------------------------------------------------------
Health Care--4.7%
- ------------------------------------------------------------------------------------------------------------------
Health Care Equipment & Supplies--0.5%
Alaris Medical, Inc., 7.25% Sr. Sub. Nts., 7/1/11 700,000 712,250
- ------------------------------------------------------------------------------------------------------------------
Dade Behring Holdings, Inc., 11.91% Sr. Unsec. Sub. Nts., 10/3/10 900,000 1,021,500
- ------------------------------------------------------------------------------------------------------------------
Fisher Scientific International, Inc., 8.125% Sr. Sub. Nts., 5/1/12 2,000,000 2,150,000
- ------------------------------------------------------------------------------------------------------------------
HMP Equity Holdings Corp., Units (each unit consists of $1,000 zero
coupon sr. sec. disc. nts., 15.43%, 5/15/08 and one warrant to purchase
2.8094 shares of Huntsman Corp. common stock) 9,10 2,800,000 1,428,000
- ------------------------------------------------------------------------------------------------------------------
Kinetic Concepts, Inc., 9.625% Sr. Unsec. Sub. Nts., Series B, 11/1/07 1 1,000,000 1,045,000
- ------------------------------------------------------------------------------------------------------------------
Sybron Dental Specialties, Inc., 8.125% Sr. Sub. Nts., 6/15/12 2,200,000 2,332,000
- ------------------------------------------------------------------------------------------------------------------
Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub. Nts., 8/1/11 500,000 500,000
------------
9,188,750
- ------------------------------------------------------------------------------------------------------------------
Health Care Providers & Services--4.1%
AdvancePCS, Inc., 8.50% Sr. Unsec. Nts., 4/1/08 2,500,000 2,700,000
- ------------------------------------------------------------------------------------------------------------------
Alderwoods Group, Inc., 12.25% Sr. Nts., 1/2/09 3,200,000 3,360,000
- ------------------------------------------------------------------------------------------------------------------
Alliance Imaging, Inc., 10.375% Sr. Unsec. Sub. Nts., 4/15/11 1,500,000 1,575,000
- ------------------------------------------------------------------------------------------------------------------
AmeriPath, Inc., 10.50% Sr. Sub. Nts., 4/1/13 4 2,000,000 2,155,000
- ------------------------------------------------------------------------------------------------------------------
Beverly Enterprises, Inc., 9.625% Sr. Unsec. Nts., 4/15/09 2,300,000 2,219,500
- ------------------------------------------------------------------------------------------------------------------
Extendicare Health Services, Inc., 9.50% Sr. Unsec. Sub. Nts., 7/1/10 1,900,000 2,004,500
- ------------------------------------------------------------------------------------------------------------------
Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08 2,800,000 2,954,000
- ------------------------------------------------------------------------------------------------------------------
Hanger Orthopedic Group, Inc., 10.375% Sr. Nts., 2/15/09 1,250,000 1,387,500
- ------------------------------------------------------------------------------------------------------------------
HCA, Inc.:
6.95% Sr. Nts., 5/1/12 5,000,000 5,337,190
7.875% Sr. Nts., 2/1/11 1,000,000 1,121,530
- ------------------------------------------------------------------------------------------------------------------
HCA-Healthcare Co. (The), 8.75% Sr. Nts., 9/1/10 2,000,000 2,332,928
- ------------------------------------------------------------------------------------------------------------------
Healthsouth Corp., 7.625% Nts., 6/1/12 5,6 6,000,000 4,680,000
- ------------------------------------------------------------------------------------------------------------------
InSight Health Services Corp., 9.875% Sr. Sub. Nts., 11/1/11 2,000,000 2,110,000
- ------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc.:
9% Sr. Sub. Nts., 2/15/08 5 2,150,000 935,250
9.375% Sr. Nts., 11/15/07 4 4,750,000 4,773,750
- ------------------------------------------------------------------------------------------------------------------
Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts., Series B, 8/15/12 3,200,000 3,344,000
- ------------------------------------------------------------------------------------------------------------------
NDCHealth Corp., 10.50% Sr. Sub. Nts., 12/1/12 4 4,100,000 4,417,750
- ------------------------------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub. Nts., 6/1/09 3,400,000 3,918,500
- ------------------------------------------------------------------------------------------------------------------
Rotech Healthcare, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/12 2,400,000 2,478,000
- ------------------------------------------------------------------------------------------------------------------
Select Medical Corp., 9.50% Sr. Unsec. Sub. Nts., 6/15/09 1,000,000 1,091,250
- ------------------------------------------------------------------------------------------------------------------
Stewart Enterprises, Inc., 10.75% Sr. Unsec. Sub. Nts., 7/1/08 5,400,000 6,048,000
- ------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 6.375% Sr. Nts., 12/1/11 1,000,000 930,000
19 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Principal Market Value
Amount See Note 1
- ---------------------------------------------------------------------------------------------------------
Health Care Providers & Services Continued
Triad Hospitals, Inc., 8.75% Sr. Unsec. Nts., Series B, 5/1/09 $ 3,600,000 $ 3,847,500
- ---------------------------------------------------------------------------------------------------------
US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 1,000,000 1,075,000
- ---------------------------------------------------------------------------------------------------------
Vicar Operating, Inc., 9.875% Sr. Sub. Nts., 12/1/09 1 4,000,000 4,400,000
------------
71,196,148
- ---------------------------------------------------------------------------------------------------------
Pharmaceuticals--0.1%
aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 1,400,000 1,547,000
- ---------------------------------------------------------------------------------------------------------
Industrials--9.9%
- ---------------------------------------------------------------------------------------------------------
Aerospace & Defense--1.0%
Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts., 5/15/11 2,400,000 2,676,000
- ---------------------------------------------------------------------------------------------------------
American Plumbing & Mechanical, Inc., 11.625% Sr. Sub. Nts., Series B,
10/15/08 4,700,000 1,574,500
- ---------------------------------------------------------------------------------------------------------
BE Aerospace, Inc., 9.50% Sr. Unsec. Sub. Nts., 11/1/08 1,000,000 810,000
- ---------------------------------------------------------------------------------------------------------
K&F Industries, Inc., 9.625% Sr. Unsec. Sub. Nts., 12/15/10 700,000 780,500
- ---------------------------------------------------------------------------------------------------------
L-3 Communications Corp., 7.625% Sr. Sub. Nts., 6/15/12 1,200,000 1,326,000
- ---------------------------------------------------------------------------------------------------------
Rexnord Corp., 10.125% Sr. Sub. Nts., 12/15/12 4 1,900,000 2,099,500
- ---------------------------------------------------------------------------------------------------------
TransDigm, Inc., 10.375% Sr. Sub. Nts., 12/1/08 2,000,000 2,177,860
- ---------------------------------------------------------------------------------------------------------
TRW Automotive, Inc.:
9.375% Sr. Nts., 2/15/13 4 1,700,000 1,853,000
11% Sr. Sub. Nts., 2/15/13 4 2,000,000 2,190,000
- ---------------------------------------------------------------------------------------------------------
Vought Aircraft Industries, Inc., 8% Sr. Nts., 7/15/11 4 1,650,000 1,666,500
------------
17,153,860
- ---------------------------------------------------------------------------------------------------------
Air Freight & Logistics--0.0%
Atlas Air, Inc., 9.375% Sr. Unsec. Nts., 11/15/06 5 3,650,000 789,312
- ---------------------------------------------------------------------------------------------------------
Airlines--0.3%
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 6,400,000 4,640,000
- ---------------------------------------------------------------------------------------------------------
Building Products--0.5%
Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 1,500,000 1,644,375
- ---------------------------------------------------------------------------------------------------------
Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts., 7/1/10 4,11 2,800,000 2,891,000
- ---------------------------------------------------------------------------------------------------------
Nortek, Inc.:
9.125% Sr. Unsec. Nts., Series B, 9/1/07 1 300,000 315,000
9.25% Sr. Nts., Series B, 3/15/07 1 2,200,000 2,277,000
9.875% Sr. Unsec. Sub. Nts., 6/15/11 1 1,000,000 1,057,500
------------
8,184,875
- ---------------------------------------------------------------------------------------------------------
Commercial Services & Supplies--3.6%
Allied Waste North America, Inc.:
7.875% Sr. Nts., 4/15/13 2,500,000 2,628,125
7.875% Sr. Unsec. Nts., Series B, 1/1/09 1,900,000 1,997,375
8.50% Sr. Sub. Nts., 12/1/08 5,200,000 5,616,000
8.875% Sr. Nts., Series B, 4/1/08 4,200,000 4,578,000
9.25% Sr. Nts., 9/1/12 4 9,850,000 10,908,875
10% Sr. Unsec. Sub. Nts., Series B, 8/1/09 1,300,000 1,387,750
- ---------------------------------------------------------------------------------------------------------
American Color Graphics, Inc., 10% Sr. Sec. Nts., 6/15/10 4,11 1,350,000 1,350,000
- ---------------------------------------------------------------------------------------------------------
American Pad & Paper Co., 13% Sr. Sub. Nts., Series B, 11/15/05 1,5,6 2,500,000 28,125
20 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- ---------------------------------------------------------------------------------------------------------
Commercial Services & Supplies Continued
Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 1,5,6 $6,500,000 $ 1,535,625
- ---------------------------------------------------------------------------------------------------------
Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09 2,500,000 2,700,000
- ---------------------------------------------------------------------------------------------------------
Coinmach Corp., 9% Sr. Nts., 2/1/10 2,250,000 2,418,750
- ---------------------------------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 1 2,400,000 1,164,000
- ---------------------------------------------------------------------------------------------------------
Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 1 3,500,000 2,476,250
- ---------------------------------------------------------------------------------------------------------
IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts., Series B, 4/1/09 1,5,6 3,850,000 --
- ---------------------------------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09 3,000,000 3,037,500
- ---------------------------------------------------------------------------------------------------------
Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 4,150,000 4,388,625
- ---------------------------------------------------------------------------------------------------------
Moore North American Finance, Inc., 7.875% Sr. Nts., 1/15/11 4 1,300,000 1,361,750
- ---------------------------------------------------------------------------------------------------------
Park-Ohio Industries, Inc., 9.25% Sr. Sub. Nts., 12/1/07 2,000,000 1,710,000
- ---------------------------------------------------------------------------------------------------------
Protection One, Inc./Protection One Alarm Monitoring, Inc., 7.375% Sr.
Unsec. Nts., 8/15/05 1,500,000 1,237,500
- ---------------------------------------------------------------------------------------------------------
Stericycle, Inc., 12.375% Sr. Unsec. Sub. Nts., Series B, 11/15/09 2,584,000 2,984,520
- ---------------------------------------------------------------------------------------------------------
Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 1,700,000 1,827,500
- ---------------------------------------------------------------------------------------------------------
United Rentals (North America), Inc.:
9.25% Sr. Unsec. Sub. Nts., Series B, 1/15/09 200,000 198,000
10.75% Sr. Nts., 4/15/08 4 1,700,000 1,865,750
10.75% Sr. Nts., 4/15/08 4 2,000,000 2,195,000
10.75% Sr. Unsec. Nts., 4/15/08 2,550,000 2,798,625
------------
62,393,645
- ---------------------------------------------------------------------------------------------------------
Construction & Engineering--0.1%
Integrated Electrical Services, Inc.:
9.375% Sr. Sub. Nts., Series B, 2/1/09 1 1,100,000 1,122,000
9.375% Sr. Sub. Nts., Series C, 2/1/09 500,000 510,000
- ---------------------------------------------------------------------------------------------------------
URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 1 1,000,000 1,070,000
------------
2,702,000
- ---------------------------------------------------------------------------------------------------------
Electrical Equipment--0.1%
Dayton Superior Corp., 13% Sr. Unsec. Sub. Nts., 6/15/09 1 1,250,000 1,068,750
- ---------------------------------------------------------------------------------------------------------
Industrial Conglomerates--1.5%
Great Lakes Dredge & Dock Corp., 11.25% Sr. Unsec. Sub. Nts., 8/15/08 8,550,000 9,105,750
- ---------------------------------------------------------------------------------------------------------
Norse CBO Ltd., 9.342% Sub. Bonds, Series 1A, Cl. C2, 8/13/10 1 11,000,000 4,235,000
- ---------------------------------------------------------------------------------------------------------
Tyco International Group SA:
6.375% Nts., 10/15/11 11,850,000 12,561,000
6.75% Sr. Unsub. Nts., 2/15/11 300,000 319,500
------------
26,221,250
- ---------------------------------------------------------------------------------------------------------
Machinery--1.9%
Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 1,455,000 1,709,625
- ---------------------------------------------------------------------------------------------------------
AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 6,000,000 6,510,000
- ---------------------------------------------------------------------------------------------------------
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 2,800,000 2,394,000
- ---------------------------------------------------------------------------------------------------------
Eagle-Picher Industries, Inc., 9.375% Sr. Unsec. Sub. Nts., 3/1/08 2,800,000 2,632,000
- ---------------------------------------------------------------------------------------------------------
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 1,5,6 7,500,000 140,625
- ---------------------------------------------------------------------------------------------------------
Manitowoc Co., Inc. (The), 10.50% Sr. Sub. Nts., 8/1/12 3,350,000 3,735,250
21 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------
Machinery Continued
NMHG Holding Co., 10% Sr. Nts., 5/15/09 $ 1,600,000 $ 1,768,000
- -----------------------------------------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07 5,480,000 4,685,400
- -----------------------------------------------------------------------------------------------------------------
SPX Corp., 7.50% Sr. Nts., 1/1/13 3,000,000 3,262,500
- -----------------------------------------------------------------------------------------------------------------
Terex Corp.:
8.875% Sr. Unsec. Sub. Nts., 4/1/08 1,400,000 1,463,000
9.25% Sr. Unsec. Sub. Nts., 7/15/11 3,900,000 4,212,000
10.375% Sr. Unsec. Sub. Nts., Series B, 4/1/11 500,000 555,000
------------
33,067,400
- -----------------------------------------------------------------------------------------------------------------
Marine--0.6%
CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 5,000,000 5,606,250
- -----------------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc., 12% Sr. Sec. Nts., 7/15/05 1,5,6 5,000,000 2,250,000
- -----------------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07 1,5 5,800,000 1,885,000
- -----------------------------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 10.50% Sec. Nts., 12/31/07 4 2,103,859 746,870
------------
10,488,120
- -----------------------------------------------------------------------------------------------------------------
Road & Rail--0.2%
Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 2,000,000 2,082,500
- -----------------------------------------------------------------------------------------------------------------
Stena AB, 9.625% Sr. Nts., 12/1/12 2,000,000 2,207,500
------------
4,290,000
- -----------------------------------------------------------------------------------------------------------------
Transportation Infrastructure--0.1%
Worldspan LP/Worldspan Financial Corp., 9.625% Sr. Nts., 6/15/11 4 1,250,000 1,293,750
- -----------------------------------------------------------------------------------------------------------------
Information Technology--2.0%
- -----------------------------------------------------------------------------------------------------------------
Communications Equipment--0.1%
Orion Network Systems, Inc., 12.50% Sr. Disc. Nts., 1/15/07 5 5,310,000 1,839,915
- -----------------------------------------------------------------------------------------------------------------
Computers & Peripherals--0.2%
Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 2,900,000 3,153,750
- -----------------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.4%
Communications & Power Industries, Inc., 12% Sr. Sub. Nts., Series B, 8/1/05 1 350,000 354,375
- -----------------------------------------------------------------------------------------------------------------
Flextronics International Ltd., 9.875% Sr. Unsec. Sub. Nts., 7/1/10 2,100,000 2,310,000
- -----------------------------------------------------------------------------------------------------------------
Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 1 3,000,000 3,255,000
- -----------------------------------------------------------------------------------------------------------------
Xerox Capital plc (Europe), 5.875% Nts., 5/15/04 800,000 808,000
------------
6,727,375
- -----------------------------------------------------------------------------------------------------------------
Internet Software & Services--0.1%
Exodus Communications, Inc., 10.75% Sr. Nts., 12/15/09 1,5,6 [EUR] 4,331,508 223,834
- -----------------------------------------------------------------------------------------------------------------
FirstWorld Communications, Inc., 0%/13% Sr. Disc. Nts., 4/15/08 1,5,6,7 5,000,000 500
- -----------------------------------------------------------------------------------------------------------------
Globix Corp., 11% Sr. Nts., 4/26/08 1 765,517 577,965
- -----------------------------------------------------------------------------------------------------------------
PSINet, Inc.:
10.50% Sr. Unsec. Nts., 12/1/06 1,5,6 [EUR] 1,000,000 57,418
11% Sr. Nts., 8/1/09 5,6 2,160,313 148,522
- -----------------------------------------------------------------------------------------------------------------
Ziff Davis Media, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 8/12/09 1,5 566,864 286,266
------------
1,294,505
22 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------------------------
IT Services--0.3%
Iron Mountain, Inc.:
7.75% Sr. Sub. Nts., 1/15/15 $ 1,200,000 $ 1,275,000
8.625% Sr. Unsec. Sub. Nts., 4/1/13 2,400,000 2,580,000
- ----------------------------------------------------------------------------------------------------------------
Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 4 1,400,000 1,491,000
------------
5,346,000
- ----------------------------------------------------------------------------------------------------------------
Office Electronics--0.0%
Xerox Corp., 7.15% Nts., 8/1/04 900,000 918,000
- ----------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--0.9%
AMI Semiconductor, Inc., 10.75% Sr. Sub. Nts., 2/1/13 4 4,000,000 4,540,000
- ----------------------------------------------------------------------------------------------------------------
Amkor Technology, Inc.:
7.75% Sr. Nts., 5/15/13 4 3,350,000 3,199,250
9.25% Sr. Unsec. Sub. Nts., 2/15/08 3,500,000 3,657,500
- ----------------------------------------------------------------------------------------------------------------
ChipPAC International Co. Ltd., 12.75% Sr. Unsec. Sub. Nts., Series B, 8/1/09 2,500,000 2,825,000
- ----------------------------------------------------------------------------------------------------------------
Fairchild Semiconductor Corp., 10.375% Sr. Unsec. Nts., 10/1/07 1,475,000 1,558,898
------------
15,780,648
- ----------------------------------------------------------------------------------------------------------------
Materials--10.8%
- ----------------------------------------------------------------------------------------------------------------
Chemicals--3.6%
Applied Extrusion Technologies, Inc., 10.75% Sr. Nts., Series B, 7/1/11 1,700,000 1,258,000
- ----------------------------------------------------------------------------------------------------------------
Avecia Group plc, 11% Sr. Unsec. Nts., 7/1/09 950,000 864,500
- ----------------------------------------------------------------------------------------------------------------
ClimaChem, Inc., 10.75% Sr. Unsec. Nts., Series B, 12/1/07 1 2,000,000 810,000
- ----------------------------------------------------------------------------------------------------------------
Compass Minerals Group, Inc., 10% Sr. Sub. Nts., 8/15/11 3,200,000 3,600,000
- ----------------------------------------------------------------------------------------------------------------
Equistar Chemicals LP/Equistar Funding Corp.:
8.75% Sr. Unsec. Nts., 2/15/09 1,000,000 975,000
10.625% Sr. Nts., 5/1/11 4 2,000,000 2,060,000
- ----------------------------------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc:
Zero Coupon Sr. Unsec. Disc. Nts., 13.09%, 12/31/09 10 4,000,000 1,580,000
10.125% Sr. Unsec. Sub. Nts., 7/1/09 7,850,000 7,575,250
- ----------------------------------------------------------------------------------------------------------------
Huntsman International LLC:
9.875% Sr. Nts., 3/1/09 5,500,000 5,747,500
9.875% Sr. Nts., 3/1/09 4 600,000 627,000
- ----------------------------------------------------------------------------------------------------------------
IMC Global, Inc., 7.625% Bonds, 11/1/05 1,400,000 1,491,000
- ----------------------------------------------------------------------------------------------------------------
ISP Chemco, Inc., 10.25% Sr. Unsec. Sub. Nts., 7/1/11 2,700,000 3,064,500
- ----------------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 1,800,000 1,921,500
- ----------------------------------------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.50% Sec. Nts., 12/15/08 600,000 573,000
9.50% Sr. Sec. Debs., 12/15/08 4 700,000 668,500
9.625% Sr. Sec. Nts., Series A, 5/1/07 6,900,000 6,796,500
9.875% Sec. Nts., Series B, 5/1/07 7,100,000 6,993,500
10.875% Sr. Sub. Nts., 5/1/09 3,600,000 3,366,000
- ----------------------------------------------------------------------------------------------------------------
Millennium America, Inc., 9.25% Sr. Nts., 6/15/08 4 1,100,000 1,188,000
- ----------------------------------------------------------------------------------------------------------------
Noveon, Inc., 11% Sr. Unsec. Sub. Nts., Series B, 2/28/11 1 3,500,000 3,990,000
- ----------------------------------------------------------------------------------------------------------------
OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11 100,000 98,000
- ----------------------------------------------------------------------------------------------------------------
PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 989,550 863,382
- ----------------------------------------------------------------------------------------------------------------
Pioneer Cos., Inc., 4.60% Sr. Sec. Nts., 12/31/06 2 313,358 267,921
23 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- -------------------------------------------------------------------------------------------------------------
Chemicals Continued
Resolution Performance Products LLC/RPP Capital Corp.,
9.50% Sr. Sec. Nts., 4/15/10 4 $ 700,000 $ 731,500
- -------------------------------------------------------------------------------------------------------------
Royster-Clark, Inc., 10.25% First Mtg. Nts., 4/1/09 1 1,500,000 1,335,000
- -------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
10% Sr. Sec. Nts., 12/19/07 1 1,917,458 1,780,839
11.25% Sr. Sub. Nts., 8/15/06 5,6 3,000,000 --
11.75% Sr. Unsec. Sub. Nts., 8/15/06 5,6 3,000,000 --
- -------------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 1 2,526,000 2,541,788
------------
62,768,180
- -------------------------------------------------------------------------------------------------------------
Construction Materials--0.2%
Formica Corp., 10.875% Sr. Unsec. Sub. Nts., Series B, 3/1/09 5,6 3,500,000 892,500
- -------------------------------------------------------------------------------------------------------------
Texas Industries, Inc., 10.25% Sr. Nts., 6/15/11 4 2,600,000 2,730,000
------------
3,622,500
- -------------------------------------------------------------------------------------------------------------
Containers & Packaging--3.1%
Ball Corp., 8.25% Sr. Unsec. Sub. Nts., 8/1/08 400,000 422,000
- -------------------------------------------------------------------------------------------------------------
Crown Euro Holdings SA:
9.50% Sr. Sec. Nts., 3/1/11 4 2,800,000 3,038,000
10.875% Sr. Sec. Nts., 3/1/13 4 1,400,000 1,533,000
- -------------------------------------------------------------------------------------------------------------
Graphic Packaging Corp., 8.625% Sub. Nts., 2/15/12 2,500,000 2,562,500
- -------------------------------------------------------------------------------------------------------------
Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts., 10/1/12 2,200,000 2,370,500
- -------------------------------------------------------------------------------------------------------------
MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 2,500,000 2,775,000
- -------------------------------------------------------------------------------------------------------------
Owens-Brockway Glass Container, Inc.:
7.75% Sr. Sec. Nts., 5/15/11 4 2,700,000 2,868,750
8.25% Sr. Unsec. Nts., 5/15/13 4 1,200,000 1,260,000
8.75% Sr. Sec. Nts., 11/15/12 5,400,000 5,886,000
8.875% Sr. Sec. Nts., 2/15/09 6,000,000 6,540,000
- -------------------------------------------------------------------------------------------------------------
Riverwood International Corp.:
10.625% Sr. Unsec. Nts., 8/1/07 4,500,000 4,691,250
10.875% Sr. Sub. Nts., 4/1/08 3,900,000 4,017,000
- -------------------------------------------------------------------------------------------------------------
Stone Container Corp.:
8.375% Sr. Nts., 7/1/12 3,950,000 4,256,125
9.25% Sr. Unsec. Nts., 2/1/08 3,000,000 3,285,000
9.75% Sr. Unsec. Nts., 2/1/11 4,000,000 4,400,000
- -------------------------------------------------------------------------------------------------------------
TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 4,200,000 4,326,000
------------
54,231,125
- -------------------------------------------------------------------------------------------------------------
Metals & Mining--2.6%
AK Steel Corp.:
7.75% Sr. Unsec. Nts., 6/15/12 5,800,000 4,843,000
7.875% Sr. Unsec. Nts., 2/15/09 900,000 769,500
- -------------------------------------------------------------------------------------------------------------
Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 4 2,650,000 2,729,500
- -------------------------------------------------------------------------------------------------------------
Better Minerals & Aggregates Co., 13% Sr. Unsec. Sub. Nts., 9/15/09 700,000 469,000
- -------------------------------------------------------------------------------------------------------------
California Steel Industries Corp., 8.50% Sr. Unsec. Nts., Series B, 4/1/09 2,300,000 2,346,000
- -------------------------------------------------------------------------------------------------------------
Centaur Mining & Exploration Ltd., 11% Sr. Nts., 12/1/07 1,5 4,740,789 71,112
24 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- ---------------------------------------------------------------------------------------------------------
Metals & Mining Continued
Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08 $ 4,660,000 $ 4,776,500
- ---------------------------------------------------------------------------------------------------------
Great Lakes Carbon Corp., 10.25% Sr. Sub. Nts., Series B, 5/15/08 1,873,000 1,601,415
- ---------------------------------------------------------------------------------------------------------
International Utility Structures, Inc., 13% Unsec. Sub. Nts., 2/1/08 1 814,000 40,700
- ---------------------------------------------------------------------------------------------------------
IPSCO, Inc., 8.75% Sr. Nts., 6/1/13 4 850,000 871,250
- ---------------------------------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 1 2,500,000 2,662,500
- ---------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp.:
10.875% Sr. Nts., Series B, 10/15/06 1,5,6 2,000,000 1,570,000
12.75% Sr. Sub. Nts., 2/1/04 1,5,6 7,850,000 490,625
- ---------------------------------------------------------------------------------------------------------
Metallurg, Inc., 11% Sr. Nts., 12/1/07 6,320,000 3,444,400
- ---------------------------------------------------------------------------------------------------------
National Steel Corp., 9.875% First Mtg. Bonds, Series D, 3/1/09 5,6 3,428,307 205,699
- ---------------------------------------------------------------------------------------------------------
Northwest Pipeline Corp., 8.125% Sr. Nts., 3/1/10 850,000 918,000
- ---------------------------------------------------------------------------------------------------------
Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 2,950,000 2,669,750
- ---------------------------------------------------------------------------------------------------------
Peabody Energy Corp., 6.875% Sr. Nts., 3/15/13 4 2,500,000 2,631,250
- ---------------------------------------------------------------------------------------------------------
Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 1,500,000 1,578,750
- ---------------------------------------------------------------------------------------------------------
UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 700,000 689,500
- ---------------------------------------------------------------------------------------------------------
United States Steel Corp.:
9.75% Sr. Nts., 5/15/10 2,800,000 2,856,000
10.75% Sr. Nts., 8/1/08 2,300,000 2,426,500
- ---------------------------------------------------------------------------------------------------------
WHX Corp., 10.50% Sr. Unsec. Nts., 4/15/05 5,000,000 4,325,000
------------
44,985,951
- ---------------------------------------------------------------------------------------------------------
Paper & Forest Products--1.3%
Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 1,250,000 1,402,461
- ---------------------------------------------------------------------------------------------------------
Ainsworth Lumber Co. Ltd.:
12.50% Sr. Nts., 7/15/07 8 1,600,000 1,816,000
13.875% Sr. Sec. Nts., 7/15/07 1 300,000 342,000
- ---------------------------------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 1,5 11,000,000 2,420,000
- ---------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp.:
8.125% Sr. Unsec. Nts., 5/15/11 5,600,000 5,782,000
9.375% Sr. Nts., 2/1/13 4 5,000,000 5,537,500
- ---------------------------------------------------------------------------------------------------------
Louisiana-Pacific Corp., 10.875% Sr. Sub. Nts., 11/15/08 1 1,000,000 1,145,000
- ---------------------------------------------------------------------------------------------------------
Tembec Industries, Inc., 7.75% Sr. Nts., 3/15/12 2,800,000 2,730,000
- ---------------------------------------------------------------------------------------------------------
U.S. Timberlands Co. LP, 9.625% Sr. Nts., 11/15/07 4,000,000 2,330,000
------------
23,504,961
- ---------------------------------------------------------------------------------------------------------
Telecommunication Services--9.2%
- ---------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services--3.5%
360networks, Inc.:
13% Sr. Unsec. Nts., 5/1/08 1,5,6 3,500,000 350
13% Sr. Unsec. Nts., 5/1/08 1,5,6 [EUR] 1,000,000 115
- ---------------------------------------------------------------------------------------------------------
Adelphia Business Solutions, Inc., 12% Sr. Sub. Nts., 11/1/07 1,5,6 1,600,000 24,000
- ---------------------------------------------------------------------------------------------------------
American Tower Corp., 9.375% Sr. Nts., 2/1/09 3,100,000 3,131,000
- ---------------------------------------------------------------------------------------------------------
COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 1,5,6 1,723,624 17,236
- ---------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 11.20% Sr. Unsec. Disc. Debs., 11/15/07 5,570,000 5,465,562
- ---------------------------------------------------------------------------------------------------------
Concentric Network Corp., Escrow Shares, 12/15/07 5,6 3,065,000 --
25 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- --------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services Continued
Dex Media East LLC/Dex Media East Finance Co., 9.875% Sr. Unsec. Nts.,
11/15/09 $ 3,000,000 $ 3,360,000
- --------------------------------------------------------------------------------------------------------------------
Diamond Holdings plc, 9.125% Sr. Nts., 2/1/08 1,400,000 1,303,750
- --------------------------------------------------------------------------------------------------------------------
Focal Communications Corp.:
11.875% Sr. Unsec. Nts., Series B, 1/15/10 1,5 75,000 4,500
12.125% Sr. Unsec. Disc. Nts., 2/15/08 1,5,6 2,200,000 132,000
- --------------------------------------------------------------------------------------------------------------------
ICG Services, Inc., Escrow Shares, 2/15/08 1,485,000 --
- --------------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 0%/12.25% Sr. Disc. Nts., Series B, 3/1/09 5,6,7 3,000,000 960,000
- --------------------------------------------------------------------------------------------------------------------
IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09 550,000 585,750
- --------------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc.:
0%/10.50% Sr. Disc. Nts., 12/1/08 7 1,850,000 1,604,875
9.125% Sr. Unsec. Nts., 5/1/08 4,900,000 4,410,000
- --------------------------------------------------------------------------------------------------------------------
Metromedia Fiber Network, Inc.:
10% Sr. Nts., 12/15/09 5,6 [EUR] 2,000,000 230
10% Sr. Unsec. Nts., Series B, 11/15/08 5,6 4,300,000 274,125
- --------------------------------------------------------------------------------------------------------------------
Nextlink Communications, Inc.:
Escrow Shares, 10/1/07 5,6 5,000,000 --
Escrow Shares, 4/15/08 5,6 2,250,000 --
Escrow Shares, 11/15/08 5,6 5,500,000 --
Escrow Shares, 6/1/09 5,6 2,000,000 --
- --------------------------------------------------------------------------------------------------------------------
NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 5,6 1,300,000 227,500
- --------------------------------------------------------------------------------------------------------------------
Pratama Datakom Asia BV, 12.75% Gtd. Nts., 7/15/05 1,5,6 4,000,000 130,000
- --------------------------------------------------------------------------------------------------------------------
Qwest Capital Funding, Inc.:
5.875% Nts., 8/3/04 5,700,000 5,486,250
7.75% Nts., 8/15/06 2,400,000 2,244,000
- --------------------------------------------------------------------------------------------------------------------
Qwest Communications International, Inc., 7.50% Sr. Unsec. Nts., Series B,
11/1/08 3,100,000 2,883,000
- --------------------------------------------------------------------------------------------------------------------
Qwest Corp., 8.875% Nts., 3/15/12 4 9,400,000 10,551,500
- --------------------------------------------------------------------------------------------------------------------
Qwest Services Corp., 13.50% Nts., 12/15/10 4 3,200,000 3,632,000
- --------------------------------------------------------------------------------------------------------------------
Sprint Capital Corp., 8.375% Nts., 3/15/12 1,800,000 2,159,314
- --------------------------------------------------------------------------------------------------------------------
Telewest Communications plc:
0%/9.25% Sr. Disc. Nts., 4/15/09 5,6,7 7,300,000 2,317,750
0%/9.875% Sr. Disc. Nts., 4/15/09 1,5,7 [GBP] 4,000,000 2,029,685
11.25% Sr. Nts., 11/1/08 5,6 3,700,000 1,359,750
- --------------------------------------------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 1,5,6 2,300,000 --
- --------------------------------------------------------------------------------------------------------------------
Time Warner Telecom LLC/Time Warner Telecom, Inc., 9.75% Sr. Nts., 7/15/08 5,100,000 4,947,000
- --------------------------------------------------------------------------------------------------------------------
Time Warner Telecom, Inc., 10.125% Sr. Unsec. Sub. Nts., 2/1/11 800,000 776,000
- --------------------------------------------------------------------------------------------------------------------
Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 1,5,6 2,925,000 --
------------
60,017,242
- --------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services--5.7%
Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts., 2/1/11 3,800,000 3,135,000
- --------------------------------------------------------------------------------------------------------------------
American Cellular Corp., 9.50% Sr. Sub. Nts., 10/15/09 5 2,800,000 1,414,000
- --------------------------------------------------------------------------------------------------------------------
American Tower Escrow Corp., Zero Coupon Sr. Sub. Disc. Nts.,
12.25%, 8/1/08 10 4,300,000 2,795,000
- --------------------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc., 14% Sr. Unsec. Disc. Nts., 10/1/07 1,5,6 9,220,000 --
26 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services Continued
Centennial Cellular Operating Co./Centennial Communications Corp.,
10.125% Sr. Nts., 6/15/13 4 $ 3,600,000 $ 3,582,000
- ------------------------------------------------------------------------------------------------------------------
Crown Castle International Corp.:
0%/10.375% Sr. Disc. Nts., 5/15/11 7 4,150,000 3,984,000
10.625% Sr. Unsec. Disc. Nts., 11/15/07 8,790,000 9,295,425
10.75% Sr. Nts., 8/1/11 3,600,000 3,942,000
- ------------------------------------------------------------------------------------------------------------------
CTI Holdings SA, 0%/11.50% Sr. Deferred Coupon Nts., 4/15/08 1,5,6,7 4,650,000 534,750
- ------------------------------------------------------------------------------------------------------------------
Dobson Communications Corp., 10.875% Sr. Unsec. Nts., 7/1/10 3,700,000 4,014,500
- ------------------------------------------------------------------------------------------------------------------
IPCS, Inc., 0%/14% Sr. Unsec. Disc. Nts., 7/15/10 1,5,6,7 1,350,000 74,250
- ------------------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc.:
0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 1,5,6,7 4,500,000 427,500
12.50% Sr. Nts., 4/15/10 1,5 2,900,000 391,500
- ------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc.:
9.375% Sr. Unsec. Nts., 11/15/09 11,200,000 12,082,000
9.95% Sr. Disc. Nts., 2/15/08 5,600,000 5,880,000
- ------------------------------------------------------------------------------------------------------------------
Nextel Partners, Inc.:
8.125% Sr. Nts., 7/1/11 4 3,300,000 3,308,250
11% Sr. Unsec. Nts., 3/15/10 900,000 976,500
12.50% Sr. Nts., 11/15/09 4,500,000 5,085,000
- ------------------------------------------------------------------------------------------------------------------
Omnipoint Corp., 11.50% Sr. Nts., 9/15/09 4 8,865,000 10,405,294
- ------------------------------------------------------------------------------------------------------------------
Orbcomm Global LP, Escrow Shares, 8/15/04 5,6 3,775,000 --
- ------------------------------------------------------------------------------------------------------------------
Rogers Wireless Communications, Inc., 8.80% Sr. Sub. Nts., 10/1/07 5,000,000 5,131,250
- ------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp.:
9.625% Sr. Sub. Nts., Series B, 5/15/08 3,000,000 2,670,000
9.75% Sr. Sub. Nts., 1/15/10 2,900,000 2,581,000
- ------------------------------------------------------------------------------------------------------------------
SBA Communications Corp.:
10.25% Sr. Unsec. Nts., 2/1/09 200,000 185,000
12% Sr. Unsec. Disc. Nts., 3/1/08 8,720,000 8,959,800
- ------------------------------------------------------------------------------------------------------------------
SpectraSite, Inc., 8.25% Sr. Nts., 5/15/10 4 1,200,000 1,254,000
- ------------------------------------------------------------------------------------------------------------------
Triton PCS, Inc.:
8.50% Sr. Nts., 6/1/13 4 2,600,000 2,808,000
8.75% Sr. Unsec. Sub. Nts., 11/15/11 350,000 350,875
9.375% Sr. Unsec. Sub. Nts., 2/1/11 2,400,000 2,466,000
- ------------------------------------------------------------------------------------------------------------------
US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub. Disc. Nts., Series B, 11/1/09 7 5,850,000 2,427,750
-------------
100,160,644
- ------------------------------------------------------------------------------------------------------------------
Utilities--8.9%
- ------------------------------------------------------------------------------------------------------------------
Electric Utilities--3.8%
AES Corp. (The):
8.375% Sr. Unsec. Unsub. Nts., 3/1/11 1 [GBP] 2,500,000 3,723,151
8.75% Sr. Sec. Nts., 5/15/13 4 6,900,000 7,210,500
8.75% Sr. Unsec. Unsub. Nts., 6/15/08 1,115,000 1,109,425
8.875% Sr. Unsec. Nts., 2/15/11 773,000 759,473
9.375% Sr. Unsec. Nts., 9/15/10 1,028,000 1,038,280
9.50% Sr. Unsec. Nts., 6/1/09 299,000 303,485
10% Sec. Nts., 7/15/05 4 2,900,000 3,023,250
10.25% Sr. Unsec. Sub. Nts., 7/15/06 2,450,000 2,437,750
- ------------------------------------------------------------------------------------------------------------------
AES Drax Holdings Ltd., 10.41% Sr. Sec. Sub. Nts., Series B, 12/31/20 1 1,300,000 845,000
27 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- -------------------------------------------------------------------------------------------------------------
Electric Utilities Continued
Allegheny Energy, Inc., 7.75% Nts., 8/1/05 $ 1,350,000 $ 1,356,750
- -------------------------------------------------------------------------------------------------------------
Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series B, 12/15/09 891,584 953,995
- -------------------------------------------------------------------------------------------------------------
Calpine Corp.:
7.625% Sr. Nts., 4/15/06 500,000 436,250
8.25% Sr. Unsec. Nts., 8/15/05 2,500,000 2,337,500
8.50% Sr. Unsec. Nts., 2/15/11 13,850,000 10,456,750
8.625% Sr. Nts., 8/15/10 600,000 453,000
8.75% Sr. Nts., 7/15/07 1,400,000 1,151,500
- -------------------------------------------------------------------------------------------------------------
CMS Energy Corp.:
7.50% Sr. Nts., 1/15/09 1,000,000 993,750
9.875% Sr. Unsec. Nts., 10/15/07 6,000,000 6,427,500
- -------------------------------------------------------------------------------------------------------------
CMS Energy X-TRAS Pass-Through Trust I, 7% Sr. Unsec. Pass-Through
Certificates, 1/15/05 1,300,000 1,285,375
- -------------------------------------------------------------------------------------------------------------
CMS Panhandle Holding Co., 6.125% Sr. Nts., 3/15/04 2,900,000 2,976,125
- -------------------------------------------------------------------------------------------------------------
Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08 275,000 261,250
- -------------------------------------------------------------------------------------------------------------
FirstEnergy Corp., 7.375% Sr. Unsub. Nts., Series C, 11/15/31 1,508,000 1,695,435
- -------------------------------------------------------------------------------------------------------------
Messer Griesheim Holding AG, 10.375% Sr. Nts., 6/1/11 [EUR] 2,500,000 3,244,089
- -------------------------------------------------------------------------------------------------------------
Mirant Americas Generation LLC, 8.30% Sr. Unsec. Nts., 5/1/11 5 1,300,000 812,500
- -------------------------------------------------------------------------------------------------------------
MSW Energy Holdings LLC/MSW Energy Finance Co., Inc., 8.50% Sr. Sec
Nts., 9/1/10 4 1,300,000 1,342,250
- -------------------------------------------------------------------------------------------------------------
Panhandle Eastern Pipe Line Co., 8.25% Sr. Nts., Series B, 4/1/10 900,000 1,075,500
- -------------------------------------------------------------------------------------------------------------
PG&E Corp., 6.875% Sr. Sec. Nts., 7/15/08 4 2,800,000 2,912,000
- -------------------------------------------------------------------------------------------------------------
Reliant Resources, Inc.:
9.25% Sr. Sec. Nts., 7/15/10 4 2,200,000 2,213,750
9.50% Sr. Sec. Nts., 7/15/13 4 2,200,000 2,222,000
- -------------------------------------------------------------------------------------------------------------
Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07 750,000 843,750
------------
65,901,333
- -------------------------------------------------------------------------------------------------------------
Gas Utilities--2.8%
AmeriGas Partners LP/AmeriGas Eagle Finance Corp., 8.875% Sr. Unsec. Nts.
Series B, 5/20/11 3,750,000 4,106,250
- -------------------------------------------------------------------------------------------------------------
ANR Pipeline, Inc., 8.875% Sr. Nts., 3/15/10 4 1,400,000 1,536,500
- -------------------------------------------------------------------------------------------------------------
El Paso Corp., 7.875% Nts., 6/15/12 4 5,500,000 5,121,875
- -------------------------------------------------------------------------------------------------------------
El Paso Energy Corp., 7.625% Nts., 7/15/11 3,500,000 3,202,500
- -------------------------------------------------------------------------------------------------------------
SEMCO Energy, Inc.:
7.125% Sr. Nts., 5/15/08 4 1,100,000 1,155,000
7.75% Sr. Nts., 5/15/13 4 1,100,000 1,177,000
- -------------------------------------------------------------------------------------------------------------
Southern Natural Gas Co.:
7.35% Nts., 2/15/31 2,800,000 2,863,000
8% Sr. Unsub. Nts., 3/1/32 4,800,000 5,214,000
8.875% Sr. Nts., 3/15/10 4 1,800,000 1,971,000
- -------------------------------------------------------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 11,550,000 11,925,375
- -------------------------------------------------------------------------------------------------------------
Williams Cos., Inc. (The), 7.125% Nts., 9/1/11 11,900,000 11,662,000
------------
49,934,500
28 | OPPENHEIMER HIGH YIELD FUND
Principal Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------------
Multi-Utilities & Unregulated Power--2.2%
AES Red Oak LLC, 8.54% Sr. Sec. Bonds, Series A, 11/30/19 $ 3,447,625 $ 3,611,387
- ----------------------------------------------------------------------------------------------------------------------
Aquila, Inc., 7% Sr. Unsec. Nts., 7/15/04 850,000 808,562
- ----------------------------------------------------------------------------------------------------------------------
Consumers Energy Co.:
6.25% Nts., 9/15/06 1,100,000 1,222,163
6.375% Sr. Sec. Nts., 2/1/08 800,000 894,508
7.375% Nts., 9/15/23 1,600,000 1,671,706
- ----------------------------------------------------------------------------------------------------------------------
Dynegy Holdings, Inc.:
6.875% Sr. Unsec. Unsub. Nts., 4/1/11 13,750,000 11,618,750
8.125% Sr. Unsec. Unsub. Nts., 3/15/05 900,000 879,750
8.75% Sr. Nts., 2/15/12 3,200,000 2,992,000
- ----------------------------------------------------------------------------------------------------------------------
El Paso Production Holding Co., 7.75% Sr. Nts., 6/1/13 4 4,100,000 4,110,250
- ----------------------------------------------------------------------------------------------------------------------
Mirant Mid-Atlantic LLC, 8.625% Sec. Pass-Through Certificates, Series A,
6/30/12 2,639,972 2,539,896
- ----------------------------------------------------------------------------------------------------------------------
Transcontinental Gas Pipe Line Corp.:
6.125% Nts., 1/15/05 1,000,000 1,005,000
8.875% Sr. Unsub. Nts., Series B, 7/15/12 1,200,000 1,362,000
- ----------------------------------------------------------------------------------------------------------------------
Williams Cos., Inc. (The):
8.625% Sr. Nts., 6/1/10 2,600,000 2,730,000
9.25% Sr. Unsec. Unsub. Nts., 3/15/04 2,200,000 2,266,000
- ----------------------------------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.50% Nts., 12/1/08 800,000 784,000
---------------
38,495,972
- ----------------------------------------------------------------------------------------------------------------------
Water Utilities--0.1%
National Waterworks, Inc., 10.50% Sr. Unsec. Sub. Nts., Series B, 12/1/12 1 1,400,000 1,555,750
---------------
Total Corporate Bonds and Notes (Cost $1,425,147,777) 1,383,245,303
Shares
- ----------------------------------------------------------------------------------------------------------------------
Preferred Stocks--1.3%
AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg. 1,8 110,146 1,101
- ----------------------------------------------------------------------------------------------------------------------
Digital Globe, Inc., 8.50% Cv., Series C, Non-Vtg. 1 244,655 244,655
- ----------------------------------------------------------------------------------------------------------------------
Doane Pet Care Co., 14.25% Jr. Sub. Debs., Non-Vtg. 1,6 140,000 5,635,000
- ----------------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg. 1,6,8 3,738 374
- ----------------------------------------------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 1,6 28,000 1,239,000
- ----------------------------------------------------------------------------------------------------------------------
Global Crossing Holdings Ltd., 10.50% Sr. Exchangeable, Non-Vtg. 1,6,8 28,943 --
- ----------------------------------------------------------------------------------------------------------------------
ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg. 1,6,8 1 --
- ----------------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 13.50% Exchangeable, Series B 1,6,8 2 65
- ----------------------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., 2.50% Cv., Series A 6 6,516 47,176
- ----------------------------------------------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable, Non-Vtg. 1,8 96,993 --
- ----------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 13% Cum., Series D, Non-Vtg. 8 1 106
- ----------------------------------------------------------------------------------------------------------------------
NTL Europe, Inc., 10% Nts., Series A, Non-Vtg. 1,6 209 418
- ----------------------------------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series A 1,8 111,929 223,858
- ----------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 13.25% Cum. Jr. Exchangeable, Non-Vtg. 8 753 7,435,875
- ----------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 8 7,236 4,576,770
- ----------------------------------------------------------------------------------------------------------------------
Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 1 26,250 3,812,813
29 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Market Value
Units See Note 1
- ---------------------------------------------------------------------------------------------------
Preferred Stocks Continued
Ziff Davis Holdings, Inc., 10% Nts., Series E-1 1,6 168 $ 420
-------------
Total Preferred Stocks (Cost $44,430,378) 23,217,631
- ---------------------------------------------------------------------------------------------------
Common Stocks--0.8%
Adelphia Business Solutions, Inc. 6 6,605 139
- ---------------------------------------------------------------------------------------------------
Charles River Laboratories International, Inc. 6 22,800 733,704
- ---------------------------------------------------------------------------------------------------
Chesapeake Energy Corp. 400,000 4,040,000
- ---------------------------------------------------------------------------------------------------
Covad Communications Group, Inc. 6 132,227 133,549
- ---------------------------------------------------------------------------------------------------
Equinix, Inc. 6 86,263 677,164
- ---------------------------------------------------------------------------------------------------
Globix Corp. 1,6 80,275 220,756
- ---------------------------------------------------------------------------------------------------
ICG Communications, Inc. 6 2,979 24,428
- ---------------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. 1,6 168,429 143,165
- ---------------------------------------------------------------------------------------------------
Manitowoc Co., Inc. (The) 3,772 84,116
- ---------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc. 6 23,343 199,715
- ---------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. A 6 194 1,678
- ---------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. B 6 23,204 181,448
- ---------------------------------------------------------------------------------------------------
NTL, Inc. 6 173,408 5,916,681
- ---------------------------------------------------------------------------------------------------
Orbital Sciences Corp. 6 8,618 62,911
- ---------------------------------------------------------------------------------------------------
Pioneer Cos., Inc. 6 63,991 233,567
- ---------------------------------------------------------------------------------------------------
Polymer Group, Inc., Cl. A 1,6 6,989 46,302
- ---------------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc. 1,6 1,688,400 --
- ---------------------------------------------------------------------------------------------------
Prandium, Inc. 6,12 459,132 257,114
- ---------------------------------------------------------------------------------------------------
Siena Holdings, Inc. 1,6 250,240 315,302
- ---------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. 6 3,761 63,937
- ---------------------------------------------------------------------------------------------------
TVMAX Holdings, Inc. 1,6 30,000 63,750
- ---------------------------------------------------------------------------------------------------
Viatel Holding Ltd. (Bermuda) 1,6 11,456 5,728
- ---------------------------------------------------------------------------------------------------
WRC Media Corp. 1,6 9,471 189
- ---------------------------------------------------------------------------------------------------
XO Communications, Inc. 6 16,729 121,285
-------------
Total Common Stocks (Cost $26,975,529) 13,526,628
Units
- ---------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.1%
American Tower Corp. Wts., Exp. 8/1/08 1,6 4,300 442,900
- ---------------------------------------------------------------------------------------------------
Chesapeake Energy Corp. Wts.:
Exp. 5/1/05 6 22,514 --
Exp. 9/1/04 6 32,054 7,227
- ---------------------------------------------------------------------------------------------------
Citigroup, Inc. Wts., Exp. 12/31/50 (Litigation Wts.) 6 107,699 109,853
- ---------------------------------------------------------------------------------------------------
COLO.com, Inc. Wts., Exp. 3/15/10 1,6 2,000 20
- ---------------------------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07 1,6 3,330 33
- ---------------------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08 1,6 8,200 82
- ---------------------------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 1,6 4,000 --
- ---------------------------------------------------------------------------------------------------
Diva Systems Corp. Wts., Exp. 3/1/08 1,6 7,500 75
30 | OPPENHEIMER HIGH YIELD FUND
Market Value
Units See Note 1
- -------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates Continued
e.spire Communications, Inc. Wts., Exp. 11/1/05 1,6 2,575 $ 26
- -------------------------------------------------------------------------------------------------------
HF Holdings, Inc. Wts., Exp. 9/27/09 1,6 1,445 325
- -------------------------------------------------------------------------------------------------------
Horizon PCS, Inc. Wts., Exp. 10/1/10 1,6 6,300 315
- -------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 1,6 50,820 508
- -------------------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. Wts.:
Exp. 5/16/06 1,6 42,243 211
Exp. 5/16/06 1,6 63 --
- -------------------------------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07 1,6 7,055 --
- -------------------------------------------------------------------------------------------------------
Internet Commerce & Communications, Inc. Wts., Exp. 7/3/03 1,6 24,520 --
- -------------------------------------------------------------------------------------------------------
IPCS, Inc. Wts., Exp. 6/15/10 1,6 3,750 37
- -------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc. Wts., Exp. 4/15/10 1,6 3,500 --
- -------------------------------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08 1,6 2,800 --
- -------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07 1,6 3,910 39
- -------------------------------------------------------------------------------------------------------
McLeodUSA, Inc. Wts., Exp. 4/16/07 1,6 14,440 6,065
- -------------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc.:
Cl. A Wts., Exp. 5/1/05 6 8,619 2,918
Cl. B Wts., Exp. 5/1/08 6 14,365 8,458
- -------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 1,6 6,400 64
- -------------------------------------------------------------------------------------------------------
Ntelos, Inc. Wts., Exp. 8/15/10 1,6 5,000 7,500
- -------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc. Wts., Exp. 9/19/10 6 100,000 138,000
- -------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts.:
Exp. 11/1/03 1,6 182,000 --
Exp. 6/30/05 1,6 49,120 --
- -------------------------------------------------------------------------------------------------------
Republic Technologies International LLC Wts., Exp. 7/15/09 1,6 1,200 12
- -------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. Wts., Exp. 12/19/08 6 6,106 --
- -------------------------------------------------------------------------------------------------------
Telergy, Inc. Wts., Exp. 9/25/10 1,6 8,078 --
- -------------------------------------------------------------------------------------------------------
XO Communications, Inc.:
Cl. A Wts., Exp. 1/16/10 6 33,465 110,435
Cl. B Wts., Exp. 1/16/10 6 25,098 40,157
Cl. C Wts., Exp. 1/16/10 6 25,098 13,804
- -------------------------------------------------------------------------------------------------------
Ziff Davis Holdings, Inc. Wts., Exp. 8/12/12 1,6 30,800 308
-------------
Total Rights, Warrants and Certificates (Cost $2,259,118) 889,372
Principal
Amount
- -------------------------------------------------------------------------------------------------------
Structured Notes--11.2%
Bear Stearns Cos., Inc. (The), High Yield Index Linked Nts.:
5%, 6/30/03 $ 10,000,000 10,962,000
5%, 9/30/03 10,000,000 10,950,000
5%, 3/31/04 10,000,000 10,930,000
- -------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank:
High Beta High Yield Index Nts., 10%, 6/20/08 8,500,000 8,606,250
High Yield Index-B Nts., 9%, 6/20/08 146,200,000 153,144,500
- -------------------------------------------------------------------------------------------------------
Parametric RE Ltd. Nts., 5.54%, 11/19/07 2,4 1,000,000 1,021,690
-------------
Total Structured Notes (Cost $191,682,053) 195,614,440
31 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------------------------------
Joint Repurchase Agreements--6.5%
Undivided interest of 17.18% in joint repurchase agreement (Principal
Amount/Market Value $657,477,000, with a maturity value of $657,496,907) with
PaineWebber, Inc., 1.09%, dated 6/30/03, to be repurchased at $112,963,420
on 7/1/03, collateralized by Federal Home Loan Mortgage Corp., 5%,
5/1/18--5/5/18, with a value of $671,305,296 (Cost $112,960,000) $ 112,960,000 $ 112,960,000
- ----------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,833,216,869) 100.4% 1,753,079,376
- ----------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.4) (6,937,005)
------------------------------------
Net Assets 100.0% $ 1,746,142,371
====================================
Footnotes to Statement of Investments
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
CAD Canadian Dollar
EUR Euro
GBP British Pound Sterling
MXN Mexican Nuevo Peso
1. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
2. Represents the current interest rate for a variable or increasing rate
security.
3. 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 $3,430,616 or 0.20% of the Fund's net
assets as of June 30, 2003.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $237,508,637 or 13.60% of the Fund's net
assets as of June 30, 2003.
5. Issuer is in default. See Note 1 of Notes to Financial Statements.
6. Non-income producing security.
7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
8. Interest or dividend is paid-in-kind.
9. 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.
10. Zero coupon bond reflects effective yield on the date of purchase.
11. When-issued security to be delivered and settled after June 30, 2003. See
Note 1 of Notes to Financial Statements.
12. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended June 30, 2003.
The aggregate fair value of securities of affiliated companies held by the Fund
as of June 30, 2003 amounts to $257,114. Transactions during the period in
which the issuer was an affiliate are as follows:
Shares Gross Gross Shares Unrealized
June 30, 2002 Additions Reductions June 30, 2003 Depreciation
- ----------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Prandium, Inc. -- 459,132* -- 459,132 $5,142,886
*Result of a reorganization of Family Restaurants, Inc.
See accompanying Notes to Financial Statements.
32 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF ASSETS AND LIABILITIES June 30, 2003
- ----------------------------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,827,816,869) $ 1,752,822,262
Affiliated companies (cost $5,400,000) 257,114
------------------
1,753,079,376
- ----------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 30,984,377
Shares of beneficial interest sold 3,483,599
Investments sold (including $1,377,000 sold on a when-issued basis) 1,912,313
Other 5,275
------------------
Total assets 1,789,464,940
- ----------------------------------------------------------------------------------------------
Liabilities
Bank overdraft 9,038,144
- ----------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $5,500,000 purchased on a when-issued basis) 16,902,324
Shares of beneficial interest redeemed 12,110,648
Dividends 3,772,600
Distribution and service plan fees 984,719
Transfer and shareholder servicing agent fees 230,327
Shareholder reports 177,643
Trustees' compensation 4,838
Other 101,326
------------------
Total liabilities 43,322,569
- ----------------------------------------------------------------------------------------------
Net Assets $1,746,142,371
==================
- ----------------------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 191,406
- ----------------------------------------------------------------------------------------------
Additional paid-in capital 2,440,354,273
- ----------------------------------------------------------------------------------------------
Overdistributed net investment income (8,198,469)
- ----------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (606,075,090)
- ----------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets
and liabilities denominated in foreign currencies (80,129,749)
------------------
Net Assets $1,746,142,371
==================
33 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- ---------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,150,055,200 and 125,625,434 shares of beneficial interest outstanding) $9.15
Maximum offering price per share (net asset value plus sales charge of 4.75% of
offering price) $9.61
- ---------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $372,947,364
and 41,321,335 shares of beneficial interest outstanding) $9.03
- ---------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $160,713,170
and 17,598,145 shares of beneficial interest outstanding) $9.13
- ---------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $8,324,284
and 907,598 shares of beneficial interest outstanding) $9.17
- ---------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $54,102,353 and 5,953,659 shares of beneficial interest outstanding) $9.09
See accompanying Notes to Financial Statements.
34 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF OPERATIONS For the Year Ended June 30, 2003
- -----------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $264) $ 149,500,433
- ------------------------------------------------------------------------------------------------------------
Dividends 1,779,283
--------------
Total investment income 151,279,716
- ------------------------------------------------------------------------------------------------------------
Expenses
Management fees 8,956,614
- ------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,236,804
Class B 3,211,081
Class C 1,208,519
Class N 24,053
- ------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,515,662
Class B 558,140
Class C 197,909
Class N 11,578
Class Y 290,409
- ------------------------------------------------------------------------------------------------------------
Shareholder reports 290,642
- ------------------------------------------------------------------------------------------------------------
Trustees' compensation 45,172
- ------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 43,403
- ------------------------------------------------------------------------------------------------------------
Other 181,607
--------------
Total expenses 18,771,593
Less reduction to custodian expenses (9,512)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class Y (154,286)
--------------
Net expenses 18,607,795
- ------------------------------------------------------------------------------------------------------------
Net Investment Income 132,671,921
- ------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (165,770,147)
Closing of futures contracts 304,710
Foreign currency transactions 2,210,336
--------------
Net realized loss (163,255,101)
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 263,552,154
Translation of assets and liabilities denominated in foreign currencies 5,333,609
Futures contracts (84,922)
--------------
Net change in unrealized appreciation 268,800,841
- ------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 238,217,661
==============
See accompanying Notes to Financial Statements.
35 | OPPENHEIMER HIGH YIELD FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30, 2003 2002
- ------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 132,671,921 $ 138,204,319
- ------------------------------------------------------------------------------------------------------------------------
Net realized loss (163,255,101) (239,628,214)
- ------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 268,800,841 16,166,281
-----------------------------------------
Net increase (decrease) in net assets resulting from operations 238,217,661 (85,257,614)
- ------------------------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (75,259,993) (101,394,648)
Class B (24,005,931) (36,957,099)
Class C (8,842,615) (10,335,220)
Class N (354,824) (76,799)
Class Y (3,503,240) (4,883,736)
- ------------------------------------------------------------------------------------------------------------------------
Tax return of capital distribution:
Class A (10,312,510) (4,577,105)
Class B (3,545,582) (1,771,144)
Class C (1,335,631) (506,445)
Class N (53,283) (3,537)
Class Y (476,622) (215,027)
- ------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 215,493,585 54,738,010
Class B 13,616,121 14,521,674
Class C 44,034,511 34,190,823
Class N 5,191,070 2,454,211
Class Y 12,011,100 (13,978,113)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 400,873,817 (154,051,769)
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 1,345,268,554 1,499,320,323
-----------------------------------------
End of period [including overdistributed net investment
income of $8,198,469 and $24,147,884, respectively] $1,746,142,371 $1,345,268,554
=========================================
See accompanying Notes to Financial Statements.
36 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended June 30, 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.62 $10.20 $ 11.89 $ 13.06 $ 14.44
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .84 .92 1.18 1.26 1.26
Net realized and unrealized gain (loss) .47 (1.44) (1.59) (1.18) (1.39)
----------------------------------------------------------------
Total from investment operations 1.31 (.52) (.41) .08 (.13)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.69) (1.01) (1.28) (1.25) (1.25)
Tax return of capital distribution (.09) (.05) -- -- --
----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.78) (1.06) (1.28) (1.25) (1.25)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.15 $8.62 $10.20 $11.89 $13.06
================================================================
- -----------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 16.38% (5.47)% (3.69)% 0.71% (0.71)%
- -----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,150,055 $858,834 $ 962,017 $1,065,220 $1,027,730
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 934,227 $948,097 $1,038,442 $1,125,834 $1,198,756
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 9.54% 9.68% 10.66% 10.12% 9.40%
Expenses, gross 1.07% 1.10% 1.00% 1.02% 0.99%
Expenses, net 1.07% 3 1.10% 3 1.00% 3 1.02% 3 0.99% 3
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 68% 47% 33% 24% 43%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one year.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
37 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS Continued
Class B Year Ended June 30, 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.51 $10.09 $11.77 $12.95 $14.33
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .74 .84 1.10 1.15 1.14
Net realized and unrealized gain (loss) .49 (1.43) (1.58) (1.18) (1.38)
------------------------------------------------------------------------
Total from investment operations 1.23 (.59) (.48) (.03) (.24)
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.62) (.94) (1.20) (1.15) (1.14)
Tax return of capital distribution (.09) (.05) -- -- --
------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.71) (.99) (1.20) (1.15) (1.14)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.03 $8.51 $10.09 $11.77 $12.95
========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 15.60% (6.23)% (4.37)% (0.13)% (1.48)%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $372,947 $338,654 $386,309 $453,375 $580,468
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $321,200 $366,869 $414,648 $509,815 $544,925
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 8.81% 8.93% 9.91% 9.35% 8.61%
Expenses, gross 1.84% 1.86% 1.76% 1.79% 1.78%
Expenses, net 1.84% 3 1.86% 3 1.76% 3 1.79% 3 1.78% 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 68% 47% 33% 24% 43%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one year.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
38 | OPPENHEIMER HIGH YIELD FUND
Class C Year Ended June 30, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.60 $ 10.18 $ 11.87 $ 13.04 $ 14.42
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .78 .86 1.11 1.16 1.15
Net realized and unrealized gain (loss) .46 (1.45) (1.60) (1.18) (1.39)
--------------------------------------------------------------------------
Total from investment operations 1.24 (.59) (.49) (.02) (.24)
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.62) (.94) (1.20) (1.15) (1.14)
Tax return of capital distribution (.09) (.05) -- -- --
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.71) (.99) (1.20) (1.15) (1.14)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.13 $ 8.60 $ 10.18 $ 11.87 $ 13.04
==========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 15.55% (6.08)% (4.43)% (0.06)% (1.49)%
- -------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 160,713 $ 106,884 $ 90,603 $ 82,204 $ 93,607
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 120,997 $ 104,882 $ 83,776 $ 87,141 $ 79,889
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 8.78% 8.75% 9.90% 9.35% 8.60%
Expenses, gross 1.83% 1.86% 1.76% 1.79% 1.78%
Expenese, net 1.83% 3 1.86% 3 1.76% 3 1.79% 3 1.78% 3
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 68% 47% 33% 24% 43%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one year.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
39 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS Continued
Class N Year Ended June 30, 2003 2002 2001 1
- ---------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.63 $10.20 $ 11.33
- ---------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .80 .96 .41
Net realized and unrealized gain (loss) .49 (1.48) (1.13)
----------------------------
Total from investment operations 1.29 (.52) (.72)
- ---------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.66) (1.00) (.41)
Tax return of capital distribution (.09) (.05) --
----------------------------
Total dividends and/or distributions to shareholders (.75) (1.05) (.41)
- ---------------------------------------------------------------------------------------
Net asset value, end of period $9.17 $8.63 $10.20
============================
- ---------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 16.08% (5.53)% (6.43)%
- ---------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $8,324 $2,396 $146
- ---------------------------------------------------------------------------------------
Average net assets (in thousands) $4,827 $ 799 $ 46
- ---------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 9.14% 8.41% 11.47%
Expenses, gross 1.41% 1.35% 1.04%
Expenses, net 1.41% 4 1.35% 4 1.04% 4
- ---------------------------------------------------------------------------------------
Portfolio turnover rate 68% 47% 33%
1. For the period from March 1, 2001 (inception of offering) to June 30, 2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
40 | OPPENHEIMER HIGH YIELD FUND
Class Y Year Ended June 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.56 $ 10.14 $ 11.82 $ 13.02 $ 14.42
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .86 .90 1.20 1.27 1.28
Net realized and unrealized gain (loss) .45 (1.41) (1.59) (1.18) (1.39)
---------------------------------------------------------------------
Total from investment operations 1.31 (.51) (.39) .09 (.11)
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.69) (1.02) (1.29) (1.29) (1.29)
Tax return of capital distribution (.09) (.05) -- -- --
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.78) (1.07) (1.29) (1.29) (1.29)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.09 $ 8.56 $ 10.14 $ 11.82 $ 13.02
=====================================================================
- --------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 16.51% (5.37)% (3.57)% 0.85% (0.54)%
- --------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 54,102 $ 38,500 $ 60,244 $ 54,117 $ 52,993
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 43,178 $ 44,583 $ 56,669 $ 54,022 $ 34,043
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 9.63% 9.88% 10.72% 10.30% 9.73%
Expenses, gross 1.34% 1.01% 0.94% 0.86% 0.76%
Expenses, net 0.98% 3,4 0.98% 3,4 0.94% 3 0.86% 3 0.76% 3
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 68% 47% 33% 24% 43%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
41 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer High Yield Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's primary investment objective is to seek a high level of current
income by investing in a diversified portfolio of high-yield, lower-rated
fixed-income securities the Fund's investment Manager, OppenheimerFunds, Inc.
(the Manager), believes do not involve undue risk.
The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class
A shares are sold at their offering price, which is normally net asset value
plus a front-end sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights and voting privileges. Earnings, net assets and net asset value per
share may differ by minor amounts due to each class having its own expenses
directly attributable to that class. Classes A, B, C and N have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. Class B shares will automatically convert to Class A shares six years
after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
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. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ 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 using 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 index-linked structured notes whose
principal and/or interest 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 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 June 30, 2003,
- --------------------------------------------------------------------------------
42 | OPPENHEIMER HIGH YIELD FUND
the market value of these securities comprised 11.2% of the Fund's net assets,
and resulted in unrealized gains in the current period of $3,932,387.
- --------------------------------------------------------------------------------
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
invested. As of June 30, 2003, the Fund had entered into when-issued purchase
commitments of $5,500,000. Additionally, the Fund had when-issued sale
commitments of $1,377,000.
- --------------------------------------------------------------------------------
Security Credit Risk. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and 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 June 30, 2003, securities with an aggregate
market value of $44,575,996, representing 2.55% of the Fund's net assets, were
in default.
- --------------------------------------------------------------------------------
Foreign Currency Translation. The Fund's accounting records 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. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint
trading accounts on a daily basis. Secured by U.S. government securities, these
balances are invested in one or more repurchase agreements. 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. In the
event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
43 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company 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.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of investment for federal income
tax purposes.
Net Unrealized
Depreciation
Undistributed Undistributed Accumulated Based on Cost of
Net Investment Long-Term Loss Securities for Federal
Income Gains Carryforward 1,2 Income Tax Purposes
- ----------------------------------------------------------------------------
$-- $-- $592,483,525 $93,721,305
1. Accumulated losses noted above primarily represent net capital loss
carryforwards as of June 30, 2003 that may be available to offset future
realized capital gains and thereby reduce future taxable gain distributions.
These carryforwards expire between 2004 and 2011. During the fiscal year the
Fund did not utilize any capital loss carryforwards. During the fiscal year
$14,430,060 of unused capital loss carryforwards expired.
2. As of June 30, 2003, the Fund had approximately $57,354,000 of post-October
losses available to offset future capital gains, if any. Such losses, if
unutilized, will expire in 2012. Additionally, the Fund had approximately
$67,000 of post-October foreign currency losses which were deferred.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
To To Net
Ordinary Capital Gain Tax Return Investment
Income (Loss) (Loss) of Capital Loss
- --------------------------------------------------------------------------------
$10,967,725 $19,185,963 $15,723,628 $--
44 | OPPENHEIMER HIGH YIELD FUND
The tax character of distributions paid during the years ended June 30, 2003
and June 30, 2002 were as follows:
Year Ended Year Ended
June 30, 2003 June 30, 2002
-------------------------------------------------------
Distributions paid from:
Ordinary income $111,966,603 $153,647,502
Return of capital 15,723,628 7,073,258
--------------------------------
Total $127,690,231 $160,720,760
================================
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes as
of June 30, 2003 are noted below. The primary difference between book and tax
appreciation or depreciation of investments, if applicable, is attributable to
the tax deferral of losses or tax realization of financial statement unrealized
gain or loss.
Federal Tax Cost $1,846,808,425
==============
Gross unrealized appreciation $ 120,725,078
Gross unrealized depreciation (214,446,383)
--------------
Net unrealized depreciation $ (93,721,305)
==============
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are
declared daily and paid monthly. Capital gain distributions, if any, are
declared and paid annually.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
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.
45 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- ------------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Year Ended June 30, 2003 Year Ended June 30, 2002
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------
Class A
Sold 87,336,667 $ 736,289,514 42,526,196 $ 406,250,339
Dividends and/or
distributions reinvested 6,545,577 55,293,487 6,951,479 65,557,494
Redeemed (67,886,608) (576,089,416) (44,134,903) (417,069,823)
----------------------------------------------------------------
Net increase 25,995,636 $ 215,493,585 5,342,772 $ 54,738,010
================================================================
- -------------------------------------------------------------------------------------------
Class B
Sold 15,654,941 $ 130,451,578 15,236,234 $ 143,002,651
Dividends and/or
distributions reinvested 1,761,918 14,661,070 2,013,383 18,759,803
Redeemed (15,888,264) (131,496,527) (15,749,942) (147,240,780)
----------------------------------------------------------------
Net increase 1,528,595 $ 13,616,121 1,499,675 $ 14,521,674
================================================================
- -------------------------------------------------------------------------------------------
Class C
Sold 9,967,771 $ 84,476,514 7,010,586 $ 66,575,193
Dividends and/or
distributions reinvested 746,825 6,304,053 654,757 6,145,793
Redeemed (5,541,975) (46,746,056) (4,136,144) (38,530,163)
----------------------------------------------------------------
Net increase 5,172,621 $ 44,034,511 3,529,199 $ 34,190,823
================================================================
- -------------------------------------------------------------------------------------------
Class N
Sold 779,085 $ 6,484,742 280,479 $ 2,616,742
Dividends and/or
distributions reinvested 45,571 390,759 8,704 77,683
Redeemed (194,820) (1,684,431) (25,777) (240,214)
----------------------------------------------------------------
Net increase 629,836 $ 5,191,070 263,406 $ 2,454,211
================================================================
- -------------------------------------------------------------------------------------------
Class Y
Sold 4,098,729 $ 34,534,730 2,239,510 $ 21,062,673
Dividends and/or
distributions reinvested 474,376 3,979,861 528,642 4,975,877
Redeemed (3,119,654) (26,503,491) (4,211,682) (40,016,663)
----------------------------------------------------------------
Net increase (decrease) 1,453,451 $ 12,011,100 (1,443,530) $ (13,978,113)
================================================================
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended June 30, 2003, were
$1,173,834,386 and $892,597,812, respectively.
46 | OPPENHEIMER HIGH YIELD FUND
- --------------------------------------------------------------------------------
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 a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million, 0.60% of the next $200 million and 0.50% of average annual
net assets over $1 billion.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a $22.50 per account fee.
Additionally, Class Y shares are subject to minimum fees of $5,000 for
assets of less than $10 million and $10,000 for assets of $10 million or more.
The Class Y shares are subject to the minimum fees in the event that the per
account fee does not equal or exceed the applicable minimum fees. OFS may
voluntarily waive the minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average annual net assets for all
classes. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- -----------------------------------------------------------------------------------------------------------------------------
June 30, 2003 $2,298,314 $365,916 $871,461 $1,777,505 $340,624 $31,482
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B, Class C and Class N shares from its
own resources at the time of sale.
Class A Class B Class C Class N
Contingent Contingent Contingent Contingent
Deferred Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor Distributor
- --------------------------------------------------------------------------------
June 30, 2003 $76,355 $1,319,090 $32,756 $5,858
47 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A Shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. For the year ended June 30, 2003, expense under the
Class A Plan totaled $2,236,804, all of which were paid by the Distributor to
recipients, which included $925 retained by the Distributor and $71,456 which
was paid to an affiliate of the Manager. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be
recovered in subsequent years.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
Distribution fees paid to the Distributor for the year ended June 30, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- -------------------------------------------------------------------------------------
Class B Plan $3,211,081 $2,535,307 $15,822,557 4.24%
Class C Plan 1,208,519 336,830 3,125,542 1.94
Class N Plan 24,053 22,307 107,631 1.29
- --------------------------------------------------------------------------------
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 to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. 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 prevailing foreign currency exchange rates.
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.
48 | OPPENHEIMER HIGH YIELD FUND
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gain or loss. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of June 30, 2003, the Fund had no outstanding foreign currency contracts.
- --------------------------------------------------------------------------------
6. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a negotiated price on a stipulated future
date. 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 protection from 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 as a 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 has expired.
Cash held by the broker to cover initial margin requirements on open futures
contracts is noted in the Statement of Assets and Liabilities. 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. The net
change in unrealized appreciation and depreciation is reported on the Statement
of Operations.
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 June 30, 2003, the Fund had no outstanding futures contracts.
49 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
7. Illiquid or Restricted Securities
As of June 30, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are 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 June 30, 2003 was
$128,418,612, which represents 7.35% of the Fund's net assets, of which zero is
considered restricted. Information concerning restricted securities is as
follows:
Unrealized
Acquisition Valuation as of Appreciation
Security Dates Cost June 30, 2003 (Depreciation)
- ----------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Internet Commerce &
Communications, Inc. Wts.,
Exp. 7/3/03 9/29/98 $-- $-- $--
- --------------------------------------------------------------------------------
8. 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 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 year
ended or at June 30, 2003.
50 | OPPENHEIMER HIGH YIELD FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Oppenheimer High Yield Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer High Yield Fund, including the statement of investments, as of June
30, 2003, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for the periods indicated. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of June 30, 2003, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer High Yield Fund as of June 30, 2003, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte & Touche LLP
Denver, Colorado
July 22, 2003
51 | OPPENHEIMER HIGH YIELD FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
Dividends paid by the Fund during the fiscal year ended June 30, 2003 which
are not designated as capital gain distributions should be multiplied by 1.57%
to arrive at the amount eligible for the corporate dividend-received deduction.
A portion of the dividends paid by the Fund during the fiscal year ended
June 30, 2003 which are not designated as capital gain distributions are
eligible for lower individual income tax rates to the extent that the Fund has
received qualified dividend income as stipulated by recent tax legislation.
$611,849 of the Fund's fiscal year taxable income is eligible for the lower
individual income tax rates. In early 2004, shareholders of record will receive
specific information regarding the amount of distributions paid to them that
are eligible for lower individual income tax rates.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
- --------------------------------------------------------------------------------
52 | OPPENHEIMER HIGH YIELD FUND
TRUSTEES AND OFFICERS Unaudited
Name, Position(s) Held with Fund, Length of Service, Age
- --------------------------------------------------------
Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships
Held by Trustee; Number of Portfolios in Fund Complex Currently Overseen by
Trustee
INDEPENDENT TRUSTEES
The address of each Trustee in the chart below is 6803 S. Tucson Way,
Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his
or her resignation, retirement, death or removal.
James C. Swain,
Chairman and Trustee
(since 1978)
Age: 69
Formerly, Chief Executive Officer (until August 27, 2002) of the Board II Funds,
Vice Chairman (until January 2, 2002) of OppenheimerFunds, Inc. (the Manager)
and President and a director (until 1997) of Centennial Asset Management
Corporation (a wholly-owned investment advisory subsidiary of the Manager).
Oversees 42 portfolios in the OppenheimerFunds complex.
William L. Armstrong,
Vice Chairman (since 2003) and Trustee (since 1999)
Age: 66
Chairman of the following private mortgage banking companies: Cherry Creek
Mortgage Company (since 1991), Centennial State Mortgage Company (since 1994),
The El Paso Mortgage Company (since 1993), Transland Financial Services, Inc.
(since 1997); Chairman of the following private companies: Great Frontier
Insurance (insurance agency) (since 1995), Ambassador Media Corporation and
Broadway Ventures (since 1984); a director of the following public companies:
Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992)
and UNUMProvident (insurance company) (since 1991). Mr. Armstrong is also a
Director/Trustee of Campus Crusade for Christ and the Bradley Foundation.
Formerly a director of the following: Storage Technology Corporation (a
publicly-held computer equipment company) (1991-February 2003), International
Family Entertainment (television channel) (1992-1997) and Natec Resources, Inc.
(air pollution control equipment and services company) (1991-1995), Frontier
Real Estate, Inc. (residential real estate brokerage) (1994-1999), and Frontier
Title (title insurance agency) (1995-June 1999); a U.S. Senator (January
1979-January 1991). Oversees 42 portfolios in the OppenheimerFunds complex.
Robert G. Avis,
Trustee (since 1993)
Age: 72
Formerly, Director and President of A.G. Edwards Capital, Inc. (General Partner
of private equity funds) (until February 2001); Chairman, President and Chief
Executive Officer of A.G. Edwards Capital, Inc. (until March 2000); Vice
Chairman and Director of A.G. Edwards, Inc. and Vice Chairman of A.G. Edwards &
Sons, Inc. (its brokerage company subsidiary) (until March 1999); Chairman of
A.G. Edwards Trust Company and A.G.E. Asset Management (investment advisor)
(until March 1999); and a Director (until March 2000) of A.G. Edwards & Sons and
A.G. Edwards Trust Company. Oversees 42 portfolios in the OppenheimerFunds
complex.
George C. Bowen,
Trustee (since 1997)
Age: 66
Formerly (until April 1999): Senior Vice President (from September 1987) and
Treasurer (from March 1985) of the Manager; Vice President (from June 1983) and
Treasurer (since March 1985) of OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Senior Vice President (since February 1992), Treasurer (since
July 1991) Assistant Secretary and a director (since December 1991) of
Centennial Asset Management Corporation; Vice President (since October 1989) and
Treasurer (since April 1986) of HarbourView Asset Management Corporation (an
investment advisory subsidiary of the Manager); President, Treasurer and a
director (June 1989-January 1990) of Centennial Capital Corporation (an
investment advisory subsidiary of the Manager); Vice President and Treasurer
(since August 1978) and Secretary (since April 1981) of Shareholder Services,
Inc. (a transfer agent subsidiary of the Manager); Vice President, Treasurer and
Secretary (since November 1989) of Shareholder Financial Services, Inc. (a
transfer agent subsidiary of the Manager); Assistant Treasurer (since March
1998) of Oppenheimer Acquisition Corp. (the Manager's parent corporation);
Treasurer (since November 1989) of Oppenheimer
53 | OPPENHEIMER HIGH YIELD FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
George C. Bowen,
Continued
Partnership Holdings, Inc. (a holding company subsidiary of the Manager); Vice
President and Treasurer (since July 1996) of Oppenheimer Real Asset Management,
Inc. (an investment advisory subsidiary of the Manager); Chief Executive Officer
and director (since March 1996) of MultiSource Services, Inc. (a broker-dealer
subsidiary of the Manager); Treasurer (since October 1997) of OppenheimerFunds
International Ltd. and Oppenheimer Millennium Funds plc (offshore fund
management subsidiaries of the Manager). Oversees 42 portfolios in the
OppenheimerFunds complex.
Edward L. Cameron,
Trustee (since 1999)
Age: 64
A member of The Life Guard of Mount Vernon, George Washington's home (since June
2000). Formerly (March 2001 - May 2002) Director of Genetic ID, Inc. and its
subsidiaries (a privately held biotech company); a partner with
PricewaterhouseCoopers LLP (from 1974-1999) (an accounting firm) and Chairman
(from 1994-1998), Price Waterhouse LLP Global Investment Management Industry
Services Group. Oversees 42 portfolios in the OppenheimerFunds complex.
Jon S. Fossel,
Trustee (since 1990)
Age: 61
Chairman and Director (since 1998) of Rocky Mountain Elk Foundation (a
not-for-profit foundation); and a director (since October 1999) of P.R.
Pharmaceuticals (a privately held company) and UNUMProvident (an insurance
company) (since June 1, 2002). Formerly Chairman and a director (until October
1996) and President and Chief Executive Officer (until October 1995) of the
Manager; President, Chief Executive Officer and a director of Oppenheimer
Acquisition Corp., Shareholders Services Inc. and Shareholder Financials
Services, Inc. (until October 1995). Oversees 42 portfolios in the
OppenheimerFunds complex.
Sam Freedman,
Trustee (since 1996)
Age: 62
Director of Colorado Uplift (a non-profit charity) (since September 1984).
Formerly (until October 1994) Mr. Freedman held several positions in subsidiary
or affiliated companies of the Manager. Oversees 42 portfolios in the
OppenheimerFunds complex.
Beverly L. Hamilton,
Trustee (since 2002)
Age: 56
Trustee (since 1996) of MassMutual Institutional Funds and of MML Series
Investment Fund (open-end investment companies); Director of MML Services (since
April 1987) and America Funds Emerging Markets Growth Fund (since October 1991)
(both are investment companies), The California Endowment (a philanthropy
organization) (since April 2002), and Community Hospital of Monterey Peninsula,
(since February 2002); a trustee (since February 2000) of Monterey International
Studies (an educational organization), and an advisor to Unilever (Holland)'s
pension fund and to Credit Suisse First Boston's Sprout venture capital unit.
Mrs. Hamilton also is a member of the investment committees of the Rockefeller
Foundation, the University of Michigan and Hartford Hospital. Formerly,
President (February 1991-April 2000) ARCO Investment Management Company.
Oversees 43 portfolios in the OppenheimerFunds complex.
Robert J. Malone,
Trustee (since 2002)
Age: 58
Director (since 2001) of Jones Knowledge, Inc. (a privately held company), U.S.
Exploration, Inc., (since 1997), Colorado UpLIFT (a non-profit organization)
(since 1986) and a trustee of the Gallagher Family Foundation (non-profit
organization) (since 2000). Formerly, Chairman of U.S. Bank (a subsidiary of
U.S. Bancorp and formerly Colorado National Bank,) (July 1996-April 1, 1999) and
a director of Commercial Assets, Inc. (a REIT) (1993-2000). Oversees 43
portfolios in the OppenheimerFunds complex.
54 | OPPENHEIMER HIGH YIELD FUND
F. William Marshall, Jr.,
Trustee (since 2000)
Age: 61
Trustee (since 1996) of MassMutual Institutional Funds and of MML Series
Investment Fund (open-end investment companies); Trustee (since 1987), Chairman
of the Board (since 2003) and Chairman of the investment committee (since 1994)
for the Worcester Polytech Institute; President and Treasurer (since January
1999) of the SIS Fund (a private not for profit charitable fund); Trustee (since
1995) of the Springfield Library and Museum Association; Trustee (since 1996) of
the Community Music School of Springfield. Formerly, member of the investment
committee of the Community Foundation of Western Massachusetts (1998 - 2003);
Chairman (January 1999-July 1999) of SIS & Family Bank, F.S.B. (formerly SIS
Bank); President, Chief Executive Officer and Director (May 1993-December 1998)
of SIS Bankcorp, Inc. and SIS Bank (formerly Springfield Institution for
Savings) and Executive Vice President (January 1999-July 1999) of Peoples
Heritage Financial Group, Inc. Oversees 42 portfolios in the OppenheimerFunds
complex.
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE AND OFFICER
The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New York, NY
10018. Mr. Murphy serves for an indefinite term, until his resignation, death or
removal.
John V. Murphy,
President and Trustee
(since 2001)
Age: 53
Chairman, Chief Executive Officer and director (since June 2001) and President
(since September 2000) of the Manager; President and a director or trustee of
other Oppenheimer funds; President and a director (since July 2001) of
Oppenheimer Acquisition Corp. and of Oppenheimer Partnership Holdings, Inc.; a
director (since November 2001) of OppenheimerFunds Distributor, Inc.; Chairman
and a director (since July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc.; President and a director (since July 2001)
of OppenheimerFunds Legacy Program (a charitable trust program established by
the Manager); a director of the following investment advisory subsidiaries of
OppenheimerFunds, Inc.: OFI Institutional Asset Management, Inc. and Centennial
Asset Management Corporation (since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and a director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; a director (since November 2001) of Trinity Investment
Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of
the Manager); Executive Vice President (since February 1997) of Massachusetts
Mutual Life Insurance Company (the Manager's parent company); a director (since
June 1995) of DLB Acquisition Corporation (a holding company that owns shares of
David L. Babson & Company, Inc.); formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and trustee (November 1999-November
2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end
investment companies); a director (September 1999-August 2000) of C.M. Life
Insurance Company; President, Chief Executive Officer and director (September
1999-August 2000) of MML Bay State Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a
wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 74 portfolios in the
OppenheimerFunds complex.
55 | OPPENHEIMER HIGH YIELD FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
OFFICERS
The address of the Officers in the chart below is as follows: for Messrs.
Kourkoulakos, Steinmetz and Zack, 498 Seventh Avenue, New York, NY 10018, for
Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves
for an annual term or until his or her earlier resignation, death or removal.
Dimitrios Kourkoulakos,
Vice President (since 2002)
Age: 36
Vice President of the Manager (since December 2001); an officer of 3 portfolios
in the OppenheimerFunds complex; formerly a High Yield Analyst (1998 - 2001) and
a Securities Analyst (1995 - 1998) of the Manager.
Arthur P. Steinmetz,
Vice President (since 2003)
Age: 44
Senior Vice President of the Manager (since March 1993) and of HarbourView Asset
Management Corporation (since March 2000); an officer of 6 portfolios in the
OppenheimerFunds complex.
Brian W. Wixted,
Treasurer (since 1999)
Age: 43
Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer
(since March 1999) of HarbourView Asset Management Corporation, Shareholder
Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder
Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and
Oppenheimer Millennium Funds plc (since May 2000) and OFI Institutional Asset
Management, Inc. (since November 2000); Treasurer and Chief Financial Officer
(since May 2000) of Oppenheimer Trust Company (a trust company subsidiary of the
Manager); Assistant Treasurer (since March 1999) of Oppenheimer Acquisition
Corp. and OppenheimerFunds Legacy Program (since April 2000); formerly Principal
and Chief Operating Officer (March 1995-March 1999), Bankers Trust
Company-Mutual Fund Services Division. An officer of 90 portfolios in the
OppenheimerFunds complex.
Robert G. Zack,
Vice President and Secretary (since 2001)
Age: 54
Senior Vice President (since May 1985) and General Counsel (since February 2002)
of the Manager; General Counsel and a director (since November 2001) of
OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of Oppenheimer Partnership
Holdings, Inc.; Senior Vice President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc., Shareholder Financial Services,
Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI
Institutional Asset Management, Inc.; General Counsel (since November 2001) of
Centennial Asset Management Corporation; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director
(since November 2001) of OppenheimerFunds International Ltd.; Vice President
(since November 2001) of OppenheimerFunds Legacy Program; Secretary (since
November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel
(November 2001-February 2002) and Associate General Counsel (May 1981-October
2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001); OppenheimerFunds International Ltd. And Oppenheimer
Millennium Funds plc (October 1997-November 2001). An officer of 90 portfolios
in the OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustee's and is available without charge upon request.
56 | OPPENHEIMER HIGH YIELD FUND
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 June 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)