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 - -------------------------------------------------------------------------------- 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 - ------------------------------------------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------------------------------------------ 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)