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.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: JUNE 30
-------
Date of reporting period: JULY 1, 2003 - DECEMBER 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS DECEMBER 31, 2003 / UNAUDITED
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PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
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ASSET-BACKED SECURITIES--0.0%
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Goldman Sachs Asset Management CBO Ltd., Sub.
Collateralized Bond Obligations, Series 1A,
Cl. D, 12.54%, 6/13/11 1
(Cost $2,040,633) $ 2,400,281 $ 192,022
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MORTGAGE-BACKED OBLIGATIONS--0.8%
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First Chicago/Lennar Trust 1, Commercial Mtg.
Pass-Through Certificates, Series 1997-CHL1,
Cl. E, 7.96%, 4/29/39 1,2 5,250,000 4,259,063
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Morgan Stanley Capital I, Inc., Commercial Mtg.
Pass-Through Certificates:
Series 1997-RR, Cl. D, 7.709%, 4/30/39 2,3 5,000,269 4,690,217
Series 1997-RR, Cl. F, 7.709%, 4/30/39 2,3 9,000,485 5,962,233
---------------
Total Mortgage-Backed Obligations (Cost $16,285,080) 14,911,513
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FOREIGN GOVERNMENT OBLIGATIONS--0.2%
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United Mexican States Bonds, Bonos de Desarrollo,
14.50%, 5/12/05 2 [MXN] (Cost $4,086,471) 39,735,700 3,913,673
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LOAN PARTICIPATIONS--0.0%
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Telergy, Inc., Sr. Sec. Credit Facilities Term Loan
Participation Nts., Tranche A, 11.111%, 1/1/02 1,4,5
(Cost $3,864,760) 3,945,448 --
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CORPORATE BONDS AND NOTES--79.0%
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CONSUMER DISCRETIONARY--22.6%
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AUTO COMPONENTS--2.1%
Collins & Aikman Floorcoverings, Inc., 9.75% Sr.
Sub. Nts., Series B, 2/15/10 1,500,000 1,612,500
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Collins & Aikman Products Co., 10.75% Sr.
Nts., 12/31/11 1,550,000 1,530,625
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Dana Corp.:
9% Unsec. Nts., 8/15/11 6,770,000 8,191,700
10.125% Nts., 3/15/10 1,800,000 2,106,000
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Dura Operating Corp.:
8.625% Sr. Nts., Series B, 4/15/12 3,500,000 3,745,000
9% Sr. Sub. Nts., Series B, 5/1/09 [EUR] 400,000 491,927
9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 600,000 603,000
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Eagle-Picher, Inc., 9.75% Sr. Nts., 9/1/13 3 3,350,000 3,634,750
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Keystone Automotive Operations, Inc.,
9.75% Sr. Sub. Nts., 11/1/13 3 900,000 972,000
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Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 2,800,000 3,307,500
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Metaldyne Corp.:
10% Sr. Nts., 11/1/13 3 1,500,000 1,522,500
11% Sr. Sub. Nts., 6/15/12 2,150,000 1,988,750
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Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 4,250,000 5,036,250
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Tenneco Automotive, Inc., 10.25% Sr. Sec. Nts.,
Series B, 7/15/13 2,300,000 2,627,750
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United Components, Inc., 9.375% Sr. Sub. Nts., 6/15/13 1,300,000 1,426,750
---------------
38,797,002
8 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
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AUTOMOBILES--0.5%
DirecTV Holdings LLC/DirecTV Financing Co., Inc.,
8.375% Sr. Unsec. Nts., 3/15/13 $ 8,550,000 $ 9,960,750
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HOTELS, RESTAURANTS & LEISURE--6.1%
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 1 3,080,000 1,124,200
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Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 1,300,000 1,433,250
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Boca Resorts, Inc., 9.875% Sr. Sub. Nts., 4/15/09 4,800,000 5,136,000
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Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 3,000,000 3,307,500
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Capital Gaming International, Inc., 11.50%
Promissory Nts., 8/1/1995 1,4,5 22,500 --
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Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub.
Nts., 4/1/09 2,500,000 2,656,250
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Dominos, Inc., 8.25% Sr. Sub. Nts., 7/1/11 3 2,650,000 2,852,063
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Gaylord Entertainment Co., 8% Sr. Nts., 11/15/13 3 1,900,000 2,014,000
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Herbst Gaming, Inc., 10.75% Sr. Sec. Nts., 9/1/08 1 700,000 791,000
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Hilton Hotels Corp.:
7.625% Nts., 12/1/12 900,000 1,015,875
7.625% Nts., 5/15/08 3,000,000 3,352,500
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Hollywood Park, Inc., 9.25% Sr. Unsec. Sub. Nts.,
Series B, 2/15/07 2,300,000 2,392,000
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Intrawest Corp., 7.50% Sr. Nts., 10/15/13 3 2,666,000 2,785,970
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Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts.,
3/15/12 2,200,000 2,458,500
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John Q. Hammons Hotels, Inc., 8.875% Sr. Nts.,
Series B, 5/15/12 3,150,000 3,488,625
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Jupiters Ltd., 8.50% Sr. Unsec. Nts., 3/1/06 1 5,200,000 5,694,000
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Mandalay Resort Group:
9.375% Sr. Sub. Nts., 2/15/10 3,500,000 4,095,000
10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07 3,000,000 3,480,000
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MGM Mirage, Inc.:
8.375% Sr. Unsec. Sub. Nts., 2/1/11 2,500,000 2,843,750
9.75% Sr. Unsec. Sub. Nts., 6/1/07 4,500,000 5,152,500
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Mohegan Tribal Gaming Authority:
6.375% Sr. Sub. Nts., 7/15/09 2,200,000 2,282,500
8% Sr. Sub. Nts., 4/1/12 1,300,000 1,413,750
8.375% Sr. Sub. Nts., 7/1/11 1 1,000,000 1,095,000
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Park Place Entertainment Corp.:
7.875% Sr. Sub. Nts., 3/15/10 3,700,000 4,116,250
9.375% Sr. Unsec. Sub. Nts., 2/15/07 2,400,000 2,724,000
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Penn National Gaming, Inc.:
8.875% Sr. Sub. Nts., 3/15/10 1 900,000 981,000
11.125% Sr. Unsec. Sub. Nts., 3/1/08 1 6,000,000 6,765,000
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Premier Parks, Inc., 9.75% Sr. Nts., 6/15/07 1,050,000 1,101,188
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Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 1,700,000 1,763,750
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River Rock Entertainment LLC, 9.75% Sr.
Nts., 11/1/11 3 2,100,000 2,268,000
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Royal Caribbean Cruises Ltd.:
8% Sr. Unsec. Nts., 5/15/10 650,000 711,750
8.75% Sr. Unsub. Nts., 2/2/11 2,600,000 2,951,000
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Six Flags, Inc.:
8.875% Sr. Nts., 2/1/10 1,600,000 1,650,000
9.75% Sr. Nts., 4/15/13 5,100,000 5,393,250
9 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
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PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
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HOTELS, RESTAURANTS & LEISURE Continued
Starwood Hotels & Resorts Worldwide, Inc., 7.875%
Sr. Nts., 5/1/12 $ 5,550,000 $ 6,271,500
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Station Casinos, Inc., 9.875% Sr. Unsec. Sub.
Nts., 7/1/10 1,200,000 1,326,000
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Sun International Hotels Ltd., 8.875% Sr. Unsec.
Sub. Nts., 8/15/11 3,200,000 3,512,000
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Trump Casino Holdings LLC/Trump Casino Funding, Inc.,
11.625% Sr. Sec. Nts., 3/15/10 3,200,000 3,080,000
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Universal City Development Partners Ltd., 11.75% Sr.
Nts., 4/1/10 3 2,700,000 3,172,500
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Vail Resorts, Inc., 8.75% Sr. Unsec. Sub. Nts.,
5/15/09 1,800,000 1,908,000
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Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11%
Sec. Nts., 6/15/10 3,300,000 3,844,500
---------------
114,403,921
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HOUSEHOLD DURABLES--2.0%
Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 3,300,000 3,654,750
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Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 2,800,000 3,031,000
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D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 800,000 956,000
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K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub.
Nts., 4/1/12 1,500,000 1,657,500
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KB Home:
8.625% Sr. Sub. Nts., 12/15/08 2,750,000 3,093,750
9.50% Sr. Unsec. Sub. Nts., 2/15/11 2,000,000 2,240,000
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Meritage Corp., 9.75% Sr. Unsec. Nts., 6/1/11 3,400,000 3,816,500
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Norcraft Cos. LP, 9% Sr. Sub. Nts., 11/1/11 3 1,500,000 1,627,500
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Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 2,300,000 2,357,500
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Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 1,200,000 1,344,000
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Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 1,750,000 1,940,313
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WCI Communities, Inc.:
9.125% Sr. Sub. Nts., 5/1/12 1,100,000 1,215,500
10.625% Sr. Unsec. Sub. Nts., 2/15/11 4,600,000 5,221,000
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William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 2,500,000 2,856,250
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Williams Scotsman, Inc., 9.875% Sr. Unsec. Nts., 6/1/07 2,600,000 2,645,500
---------------
37,657,063
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LEISURE EQUIPMENT & PRODUCTS--0.1%
Remington Arms Co., Inc., 10.50% Sr. Unsec.
Nts., 2/1/11 2,300,000 2,461,000
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MEDIA--9.4%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 4,5 2,000,000 1,860,000
8.375% Sr. Nts., Series B, 2/1/08 4,5 2,700,000 2,531,250
9.875% Sr. Nts., Series B, 3/1/07 4,5 2,200,000 2,068,000
10.25% Sr. Unsec. Nts., 11/1/06 4,5 1,600,000 1,496,000
10.25% Sr. Unsec. Sub. Nts., 6/15/11 4,5 200,000 190,000
10.875% Sr. Unsec. Nts., 10/1/10 4,5 1,500,000 1,410,000
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Allbritton Communications Co., 7.75% Sr. Unsec.
Sub. Nts., 12/15/12 2,300,000 2,397,750
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AMC Entertainment, Inc., 9.50% Sr. Unsec.
Sub. Nts., 2/1/11 10,000,000 10,550,000
10 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
MEDIA Continued
American Media Operations, Inc., 8.875%
Sr. Unsec. Sub. Nts., 1/15/11 $ 2,700,000 $ 2,943,000
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Block Communications, Inc., 9.25% Sr. Sub. Nts.,
4/15/09 1,100,000 1,188,000
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Callahan Nordrhein-Westfalen GmbH, 14.125%
Sr. Nts., 7/15/11 1,4,5 [EUR] 1,000,000 75,681
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CanWest Media, Inc., 7.625% Sr. Unsec. Sub. Nts.,
Cl. B, 4/15/13 900,000 990,000
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CBD Media LLC/CBD Finance, Inc., 8.625%
Sr. Sub. Nts., 6/1/11 3 700,000 773,500
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Charter Communications Holdings II, 10.25%
Sr. Unsec. Nts., 9/15/10 3 6,550,000 6,910,250
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Charter Communications Holdings LLC/Charter
Communications Holdings Capital Corp.:
0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11 6 13,800,000 11,868,000
0%/11.75% Sr. Unsec. Sub. Disc. Nts., 5/15/11 6 4,500,000 3,037,500
8.625% Sr. Unsec. Nts., 4/1/09 8,900,000 7,809,750
10% Sr. Nts., 4/1/09 1,000,000 895,000
10% Sr. Unsec. Sub. Nts., 5/15/11 1,000,000 875,000
10.75% Sr. Unsec. Nts., 10/1/09 1,700,000 1,568,250
11.125% Sr. Unsec. Nts., 1/15/11 1,200,000 1,107,000
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Cinemark USA, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/13 2,500,000 2,825,000
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Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 1,500,000 1,657,500
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CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts.,
Series B, 4/1/11 9,550,000 10,099,125
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Diva Systems Corp., 12.625% Sr. Unsec. Disc. Nts.,
Series B, 3/1/08 1,4,5 2,500,000 162,500
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EchoStar DBS Corp.:
9.125% Sr. Nts., 1/15/09 1,622,000 1,822,723
9.375% Sr. Unsec. Nts., 2/1/09 4,500,000 4,730,625
10.375% Sr. Unsec. Nts., 10/1/07 8,700,000 9,580,875
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Emmis Communications Corp.:
0%/12.50% Sr. Unsec. Disc. Nts., 3/15/11 6 7,505,000 6,989,031
8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 2,150,000 2,265,563
- -----------------------------------------------------------------------------------
Entercom Radio LLC/Entercom Capital, Inc., 7.625%
Sr. Unsec. Sub. Nts., 3/1/14 1,500,000 1,618,125
- -----------------------------------------------------------------------------------
Entravision Communications Corp., 8.125% Sr.
Sub. Nts., 3/15/09 1,400,000 1,505,000
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Granite Broadcasting Corp., 9.75% Sr. Sec.
Nts., 12/1/10 4,000,000 4,010,000
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Gray Television, Inc., 9.25% Sr. Sub. Nts., 12/15/11 1,750,000 1,960,000
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Hollinger International Publishing, Inc.,
9% Sr. Unsec. Nts., 12/15/10 2,700,000 2,882,250
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Houghton Mifflin Co., 8.25% Sr. Unsec. Nts., 2/1/11 1,900,000 2,042,500
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Insight Midwest LP/Insight Capital, Inc., 9.75%
Sr. Nts., 10/1/09 350,000 371,875
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Lamar Media Corp., 7.25% Sr. Unsec. Sub. Nts., 1/1/13 1,000,000 1,080,000
- -----------------------------------------------------------------------------------
Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 3 1,800,000 1,811,250
- -----------------------------------------------------------------------------------
LodgeNet Entertainment Corp., 9.50% Sr. Sub.
Debs., 6/15/13 1 1,350,000 1,485,000
- -----------------------------------------------------------------------------------
Mediacom LLC/Mediacom Capital Corp., 9.50%
Sr. Unsec. Nts., 1/15/13 3,650,000 3,887,250
- -----------------------------------------------------------------------------------
News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 400,000 514,108
11 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
MEDIA Continued
PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 $ 5,100,000 $ 5,686,500
- -----------------------------------------------------------------------------------
PRIMEDIA, Inc., 8% Sr. Nts., 5/15/13 3 4,500,000 4,612,500
- -----------------------------------------------------------------------------------
R.H. Donnelley Financial Corp. I:
8.875% Sr. Nts., 12/15/10 3 2,600,000 2,938,000
10.875% Sr. Sub. Nts., 12/15/12 3 3,900,000 4,645,875
- -----------------------------------------------------------------------------------
Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts.,
Series B, 7/1/11 1,450,000 1,605,875
- -----------------------------------------------------------------------------------
Regal Cinemas, Inc., 9.375% Sr. Sub. Nts.,
Series B, 2/1/12 3,050,000 3,461,750
- -----------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8% Sr. Unsec. Sub. Nts., 3/15/12 6,050,000 6,564,250
8.75% Sr. Sub. Nts., 12/15/11 1,250,000 1,393,750
- -----------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Unsec.
Sub. Nts., 11/1/09 5,000,000 5,362,500
- -----------------------------------------------------------------------------------
Vertis, Inc.:
9.75% Sr. Sec. Nts., 4/1/09 2,050,000 2,237,063
10.875% Sr. Unsec. Nts., Series B, 6/15/09 1,000,000 1,067,500
- -----------------------------------------------------------------------------------
Videotron Ltee, 6.875% Sr. Nts., 1/15/14 3 1,100,000 1,141,250
- -----------------------------------------------------------------------------------
Vivendi Universal SA, 9.25% Sr. Nts., 4/15/10 3 2,500,000 2,975,000
- -----------------------------------------------------------------------------------
Von Hoffmann Corp., 10.25% Sr. Unsec. Nts., 3/15/09 3 1,100,000 1,177,000
- -----------------------------------------------------------------------------------
WRC Media, Inc./Weekly Reader Corp./
CompassLearning Inc., 12.75% Sr.
Sub. Nts., 11/15/09 4,000,000 3,840,000
---------------
174,553,044
- -----------------------------------------------------------------------------------
MULTILINE RETAIL--0.3%
J.C. Penney Co., Inc.:
7.60% Nts., 4/1/07 2,400,000 2,661,000
8% Nts., 3/1/10 500,000 575,625
- -----------------------------------------------------------------------------------
Saks, Inc., 9.875% Nts., 10/1/11 1,900,000 2,270,500
---------------
5,507,125
- -----------------------------------------------------------------------------------
SPECIALTY RETAIL--1.7%
Asbury Automotive Group, Inc., 9% Sr.
Sub. Nts., 6/15/12 1,400,000 1,487,500
- -----------------------------------------------------------------------------------
AutoNation, Inc., 9% Sr. Unsec. Nts., 8/1/08 3,000,000 3,457,500
- -----------------------------------------------------------------------------------
Building Materials Corp., 8% Sr. Nts., 12/1/08 1,350,000 1,336,500
- -----------------------------------------------------------------------------------
CSK Auto, Inc., 12% Sr. Unsec. Nts., 6/15/06 7,000,000 8,067,500
- -----------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 9.125% Sr. Unsec.
Sub. Nts., 5/1/08 1 1,000,000 1,005,000
- -----------------------------------------------------------------------------------
Finlay Enterprises, Inc., 9% Debs., 5/1/08 3,985,000 4,099,569
- -----------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 2,100,000 2,184,000
- -----------------------------------------------------------------------------------
Gap, Inc. (The), 10.55% Unsub. Nts., 12/15/08 800,000 990,000
- -----------------------------------------------------------------------------------
Hollywood Entertainment Corp., 9.625% Sr. Sub.
Nts., 3/15/11 1 2,800,000 3,024,000
- -----------------------------------------------------------------------------------
Just For Feet, Inc., 11% Sr. Sub. Nts., 5/1/09 1,4,5 700,000 --
- -----------------------------------------------------------------------------------
Petco Animal Supplies, Inc., 10.75% Sr. Sub.
Nts., 11/1/11 1 3,500,000 4,112,500
- -----------------------------------------------------------------------------------
Rent-A-Center, Inc., 7.50% Sr. Sub. Nts.,
Cl. B, 5/1/10 1,100,000 1,166,000
- -----------------------------------------------------------------------------------
United Auto Group, Inc., 9.625% Sr. Unsec. Sub.
Nts., 3/15/12 150,000 168,750
---------------
31,098,819
12 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.4%
Broder Bros. Co., 11.25% Sr. Nts., 10/15/10 3 $ 2,100,000 $ 2,079,000
- -----------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Sr. Sub. Nts., 1/31/09 1,7 4,460,036 446
- -----------------------------------------------------------------------------------
Galey & Lord, Inc., 9.125% Sr. Unsec. Sub.
Nts., 3/1/08 1,4,5 2,900,000 36,250
- -----------------------------------------------------------------------------------
Levi Strauss & Co.:
7% Unsec. Nts., 11/1/06 850,000 550,375
11.625% Sr. Unsec. Nts., 1/15/08 1,200,000 789,000
12.25% Sr. Nts., 12/15/12 1,400,000 917,000
- -----------------------------------------------------------------------------------
Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 3 1,250,000 1,373,438
- -----------------------------------------------------------------------------------
Russell Corp., 9.25% Sr. Nts., 5/1/10 1,500,000 1,561,875
---------------
7,307,384
- -----------------------------------------------------------------------------------
CONSUMER STAPLES--3.6%
- -----------------------------------------------------------------------------------
BEVERAGES--0.1%
Constellation Brands, Inc., 8.125% Sr. Sub.
Nts., 1/15/12 2,000,000 2,200,000
- -----------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.6%
Delhaize America, Inc., 8.125% Unsub. Debs., 4/15/11 2,100,000 2,425,500
- -----------------------------------------------------------------------------------
Fleming Cos., Inc.:
10.125% Sr. Unsec. Nts., 4/1/08 4,5 2,100,000 472,500
10.625% Sr. Unsec. Sub. Nts., Series D, 7/31/07 1,4,5 400,000 3,000
- -----------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The), 9.125%
Sr. Nts., 12/15/11 800,000 736,000
- -----------------------------------------------------------------------------------
Ingles Markets, Inc., 8.875% Sr. Unsec. Sub.
Nts., 12/1/11 1,000,000 1,010,000
- -----------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 1,600,000 1,664,000
- -----------------------------------------------------------------------------------
Rite Aid Corp.:
8.125% Sr. Sec. Nts., 5/1/10 2,650,000 2,862,000
9.50% Sr. Sec. Nts., 2/15/11 1,600,000 1,812,000
---------------
10,985,000
- -----------------------------------------------------------------------------------
FOOD PRODUCTS--2.1%
American Seafoods Group LLC, 10.125% Sr. Sub.
Nts., 4/15/10 1 3,500,000 4,178,125
- -----------------------------------------------------------------------------------
Aurora Foods, Inc., 8.75% Sr. Sub. Nts.,
Series B, 7/1/08 4,5 1,600,000 1,256,000
- -----------------------------------------------------------------------------------
Burns Philp Capital Pty Ltd., 9.75% Sr. Sub.
Nts., 7/15/12 3 1,450,000 1,558,750
- -----------------------------------------------------------------------------------
Del Monte Corp.:
8.625% Sr. Sub. Nts., 12/15/12 3,300,000 3,630,000
9.25% Sr. Unsec. Sub. Nts., 5/15/11 1,450,000 1,609,500
- -----------------------------------------------------------------------------------
Doane Pet Care Co.:
9.75% Sr. Unsec. Sub. Nts., 5/15/07 1,900,000 1,710,000
10.75% Sr. Nts., 3/1/10 1 4,100,000 4,264,000
- -----------------------------------------------------------------------------------
Dole Food Co., Inc.:
8.625% Sr. Nts., 5/1/09 2,500,000 2,756,250
8.875% Sr. Unsec. Nts., 3/15/11 1,300,000 1,433,250
- -----------------------------------------------------------------------------------
Hines Nurseries, Inc., 10.25% Sr. Nts., 10/1/11 3 1,700,000 1,861,500
- -----------------------------------------------------------------------------------
Michael Foods, Inc., 8% Sr. Sub. Nts., 11/15/13 3 1,600,000 1,676,000
- -----------------------------------------------------------------------------------
New World Pasta Co., 9.25% Sr. Nts., 2/15/09 1 500,000 132,500
- -----------------------------------------------------------------------------------
Pinnacle Foods Holding Corp., 8.25% Sr. Sub.
Nts., 12/1/13 3 2,200,000 2,288,000
13 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
FOOD PRODUCTS Continued
Smithfield Foods, Inc.:
7.625% Sr. Unsec. Sub. Nts., 2/15/08 $2,240,000 $ 2,273,600
8% Sr. Nts., Series B, 10/15/09 400,000 424,000
- -----------------------------------------------------------------------------------
Swift & Co., 10.125% Sr. Nts., 10/1/09 2,500,000 2,662,500
- -----------------------------------------------------------------------------------
Tembec Industries, Inc., 7.75% Sr. Nts., 3/15/12 2,800,000 2,800,000
- -----------------------------------------------------------------------------------
United Biscuits Finance plc, 10.625% Sr. Sub.
Nts., 4/15/11 1 [EUR] 2,000,000 2,863,266
---------------
39,377,241
- -----------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--0.6%
AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 1 4,200,000 4,389,000
- -----------------------------------------------------------------------------------
Armkel LLC/Armkel Finance, Inc., 9.50% Sr. Sub.
Nts., 8/15/09 1,900,000 2,094,750
- -----------------------------------------------------------------------------------
Holmes Products Corp., 9.875% Sr. Sub. Nts.,
Series C, 11/15/07 1 500,000 518,750
- -----------------------------------------------------------------------------------
Playtex Products, Inc., 9.375% Sr. Unsec. Sub.
Nts., 6/1/11 2,300,000 2,334,500
- -----------------------------------------------------------------------------------
Revlon Consumer Products Corp., 12% Sr. Sec.
Nts., 12/1/05 1,600,000 1,608,000
- -----------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub.
Nts., 7/1/08 1,4,5 1,200,000 --
---------------
10,945,000
- -----------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.2%
French Fragrances, Inc., 10.375% Sr. Unsec. Nts.,
Series B, 5/15/07 2,769,000 2,878,597
- -----------------------------------------------------------------------------------
ENERGY--4.8%
- -----------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.6%
BRL Universal Equipment Corp., 8.875% Sr. Sec.
Nts., 2/15/08 1 3,000,000 3,232,500
- -----------------------------------------------------------------------------------
Dresser, Inc., 9.375% Sr. Sub. Nts., 4/15/11 1,200,000 1,311,000
- -----------------------------------------------------------------------------------
Grant Prideco Escrow Corp., 9% Sr.
Unsec. Nts., 12/15/09 1,500,000 1,661,250
- -----------------------------------------------------------------------------------
Hanover Compress Co., 8.625% Sr. Nts., 12/15/10 2,500,000 2,612,500
- -----------------------------------------------------------------------------------
Hanover Equipment Trust 2001A, 8.50% Sr. Sec. Nts.,
Series A, 9/1/08 1,500,000 1,597,500
- -----------------------------------------------------------------------------------
Hornbeck-Leevac Marine Services, Inc., 10.625% Sr.
Nts., 8/1/08 7,000,000 7,770,000
- -----------------------------------------------------------------------------------
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 7,250,000 6,851,250
- -----------------------------------------------------------------------------------
Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 1,500,000 1,601,250
- -----------------------------------------------------------------------------------
Universal Compression, Inc., 7.25% Sr. Unsec. Sub.
Nts., 5/15/10 2,500,000 2,612,500
---------------
29,249,750
- -----------------------------------------------------------------------------------
OIL & GAS--3.2%
Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07 4,000,000 3,960,000
- -----------------------------------------------------------------------------------
Chesapeake Energy Corp.:
8.125% Sr. Unsec. Nts., 4/1/11 700,000 780,500
8.375% Sr. Unsec. Nts., 11/1/08 1,100,000 1,215,500
9% Sr. Nts., 8/15/12 3,500,000 4,042,500
- -----------------------------------------------------------------------------------
El Paso Energy Partners LP, 8.50% Sr. Unsec. Sub.
Nts., Series B, 6/1/11 2,851,000 3,221,630
- -----------------------------------------------------------------------------------
Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 2,000,000 2,125,000
- -----------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 6,000,000 6,810,000
- -----------------------------------------------------------------------------------
GulfTerra Energy Partners LP:
8.50% Sr. Unsec. Sub. Nts., Series B, 6/1/10 1,275,000 1,453,500
10.625% Sr. Sub. Nts., 12/1/12 1,239,000 1,542,555
14 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
OIL & GAS Continued
Leviathan Gas Pipeline Partners LP/Leviathan
Finance Corp., 10.375% Sr. Unsec. Sub. Nts.,
Series B, 6/1/09 1 $ 3,750,000 $ 4,087,500
- -----------------------------------------------------------------------------------
Newfield Exploration Co., 8.375% Sr. Sub.
Nts., 8/15/12 2,850,000 3,206,250
- -----------------------------------------------------------------------------------
Paramount Resources Ltd., 7.875% Sr. Nts., 11/1/10 2,300,000 2,300,000
- -----------------------------------------------------------------------------------
Pioneer Natural Resources Co., 7.50% Sr.
Nts., 4/15/12 1,000,000 1,151,148
- -----------------------------------------------------------------------------------
Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 1 3,200,000 3,664,000
- -----------------------------------------------------------------------------------
Stone Energy Corp., 8.25% Sr. Unsec.
Sub. Nts., 12/15/11 3,500,000 3,832,500
- -----------------------------------------------------------------------------------
Teekay Shipping Corp., 8.875% Sr. Nts., 7/15/11 3,175,000 3,619,500
- -----------------------------------------------------------------------------------
Tesoro Petroleum Corp.:
8% Sr. Sec. Nts., 4/15/08 2,300,000 2,455,250
9.625% Sr. Sub. Nts., 4/1/12 2,350,000 2,585,000
- -----------------------------------------------------------------------------------
Tom Brown, Inc., Units (each unit consists of $512
principal amount of 7.25% sr. sub. nts., due 2013
and $488 principal amount of Tom Brown Resources
Funding Corp., 7.25% sr. sub. nts., due 2013) 8 1,250,000 1,328,125
- -----------------------------------------------------------------------------------
Westport Resources Corp., 8.25% Sr. Unsec. Sub.
Nts., 11/1/11 5,500,000 6,077,500
---------------
59,457,958
- -----------------------------------------------------------------------------------
FINANCIALS--3.3%
- -----------------------------------------------------------------------------------
CAPITAL MARKETS--0.5%
American Color Graphics, Inc., 10% Sr. Sec.
Nts., 6/15/10 3 1,350,000 1,390,500
- -----------------------------------------------------------------------------------
Berry Plastics Corp.:
10.75% Sr. Sub. Nts., 7/15/12 3 3,600,000 4,162,500
10.75% Sr. Sub. Nts., 7/15/12 2,500,000 2,890,625
- -----------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc., 12% Sr. Unsec.
Sub. Nts., Series B, 9/30/08 3,700,000 1,905,500
---------------
10,349,125
- -----------------------------------------------------------------------------------
COMMERCIAL BANKS--0.2%
ABN Amro Bank NV (NY Branch), 4% Sec. Nts.,
11/5/17 1,2 2,069,459 1,479,663
- -----------------------------------------------------------------------------------
Bank Plus Corp., 12% Sr. Nts., 7/18/07 1 78,000 83,850
- -----------------------------------------------------------------------------------
Western Financial Bank, 9.625% Unsec. Sub.
Debs., 5/15/12 1,700,000 1,904,000
---------------
3,467,513
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.4%
Bombardier Recreational, Inc., 8.375% Sr. Sub.
Nts., 12/15/13 3 2,100,000 2,205,000
- -----------------------------------------------------------------------------------
Couche-Tard US LP/Couche-Tard Finance Corp., 7.50%
Sr. Sub. Nts., 12/15/13 3 1,250,000 1,315,625
- -----------------------------------------------------------------------------------
Finova Group, Inc. (The), 7.50% Nts., 11/15/09 2,300,000 1,391,500
- -----------------------------------------------------------------------------------
LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07 2,500,000 2,537,500
---------------
7,449,625
- -----------------------------------------------------------------------------------
INSURANCE--0.1%
Conseco, Inc., Escrow Shares, 6/15/09 5,9 1,000,000 --
- -----------------------------------------------------------------------------------
Texas Gas Transmission Corp., 7.25% Debs., 7/15/27 1 1,000,000 1,101,964
---------------
1,101,964
15 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
REAL ESTATE--1.9%
Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 1 $ 550,000 $ 559,625
- -----------------------------------------------------------------------------------
Corrections Corp. of America:
7.50% Sr. Nts., 5/1/11 1,350,000 1,424,250
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 2,621,450
10% Sr. Unsec. Nts., 9/15/08 800,000 868,000
- -----------------------------------------------------------------------------------
Felcor Suites LP, 7.375% Sr. Nts., 10/1/04 1,200,000 1,234,500
- -----------------------------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr. Nts.,
Series B, 8/1/08 5,500,000 5,747,500
- -----------------------------------------------------------------------------------
Host Marriott LP, 9.50% Sr. Nts., 1/15/07 4,800,000 5,364,000
- -----------------------------------------------------------------------------------
MeriStar Hospitality Corp.:
8.75% Sr. Unsec. Sub. Nts., 8/15/07 200,000 203,500
9.125% Sr. Unsec. Nts., 1/15/11 2,650,000 2,822,250
10.50% Sr. Unsec. Nts., 6/15/09 2,700,000 2,943,000
- -----------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 9.75%
Sr. Sec. Nts., Series B, 4/1/08 9,100,000 9,543,625
---------------
35,013,575
- -----------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.2%
WMC Finance Co., 11.75% Sr. Nts., 12/15/08 3 4,200,000 4,210,500
- -----------------------------------------------------------------------------------
HEALTH CARE--4.7%
- -----------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.5%
Dade Behring Holdings, Inc., 11.91% Sr. Unsec.
Sub. Nts., 10/3/10 1 900,000 1,039,500
- -----------------------------------------------------------------------------------
Fisher Scientific International, Inc., 8.125% Sr.
Sub. Nts., 5/1/12 1,736,000 1,870,540
- -----------------------------------------------------------------------------------
HMP Equity Holdings Corp., Units (each unit consists
of $1,000 principal amount of 15.43% sr. sec. disc.
nts., 5/15/08 and one warrant to purchase 2.8094
shares of Huntsman Corp. common stock) 8,10 2,800,000 1,722,000
- -----------------------------------------------------------------------------------
Sybron Dental Specialties, Inc., 8.125% Sr. Sub.
Nts., 6/15/12 2,200,000 2,403,500
- -----------------------------------------------------------------------------------
Universal Hospital Services, Inc., 10.125% Sr.
Nts., 11/1/11 3 2,150,000 2,268,250
- -----------------------------------------------------------------------------------
Vanguard Health Systems, Inc., 9.75% Sr. Unsec.
Sub. Nts., 8/1/11 500,000 545,000
---------------
9,848,790
- -----------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--3.9%
AdvancePCS, Inc., 8.50% Sr. Unsec. Nts., 4/1/08 2,500,000 2,725,000
- -----------------------------------------------------------------------------------
Alderwoods Group, Inc., 12.25% Sr. Nts., 1/2/09 3,200,000 3,616,000
- -----------------------------------------------------------------------------------
Alliance Imaging, Inc., 10.375% Sr. Unsec. Sub.
Nts., 4/15/11 800,000 852,000
- -----------------------------------------------------------------------------------
AmeriPath, Inc., 10.50% Sr. Unsec. Sub. Nts., 4/1/13 2,000,000 2,140,000
- -----------------------------------------------------------------------------------
Beverly Enterprises, Inc., 9.625% Sr. Unsec.
Nts., 4/15/09 2,300,000 2,547,250
- -----------------------------------------------------------------------------------
Extendicare Health Services, Inc., 9.50% Sr. Unsec.
Sub. Nts., 7/1/10 1 1,900,000 2,118,500
- -----------------------------------------------------------------------------------
Fresenius Medical Care Capital Trust II, 7.875%
Nts., 2/1/08 1 2,800,000 3,003,000
- -----------------------------------------------------------------------------------
Genesis Healthcare Corp., 8% Sr. Sub. Nts.,
10/15/13 3 1,300,000 1,361,750
- -----------------------------------------------------------------------------------
Hanger Orthopedic Group, Inc., 10.375% Sr.
Nts., 2/15/09 1 1,250,000 1,425,000
- -----------------------------------------------------------------------------------
HCA, Inc.:
6.95% Sr. Nts., 5/1/12 5,000,000 5,369,575
7.875% Sr. Nts., 2/1/11 1,000,000 1,142,085
8.75% Sr. Nts., 9/1/10 2,000,000 2,384,560
16 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Healthsouth Corp., 7.625% Nts., 6/1/12 $ 2,000,000 $ 1,880,000
- -----------------------------------------------------------------------------------
InSight Health Services Corp., 9.875% Sr. Sub.
Nts., 11/1/11 2,000,000 2,130,000
- -----------------------------------------------------------------------------------
Magellan Health Services, Inc.:
9% Sr. Sub. Nts., 2/15/08 4,5 2,150,000 1,601,750
9.375% Sr. Nts., 11/15/07 3 4,750,000 5,011,250
- -----------------------------------------------------------------------------------
Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts.,
Series B, 8/15/12 3,200,000 3,512,000
- -----------------------------------------------------------------------------------
National Nephrology Assn., 9% Sr. Sub. Nts., 11/1/11 3 650,000 684,125
- -----------------------------------------------------------------------------------
NDCHealth Corp., 10.50% Sr. Unsec. Sub. Nts., 12/1/12 4,100,000 4,633,000
- -----------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., 10.75%
Sr. Unsec. Unsub. Nts., 6/1/09 2,207,000 2,615,295
- -----------------------------------------------------------------------------------
Quintiles Transnational Corp., 10% Sr. Sub.
Nts., 10/1/13 3 1,900,000 2,061,500
- -----------------------------------------------------------------------------------
Rotech Healthcare, Inc., 9.50% Sr. Unsec.
Sub. Nts., 4/1/12 2,400,000 2,520,000
- -----------------------------------------------------------------------------------
Stewart Enterprises, Inc., 10.75% Sr. Unsec. Sub.
Nts., 7/1/08 1 5,400,000 6,129,000
- -----------------------------------------------------------------------------------
Tenet Healthcare Corp., 6.375% Sr. Nts., 12/1/11 1,000,000 965,000
- -----------------------------------------------------------------------------------
Triad Hospitals, Inc.:
7% Sr. Sub. Nts., 11/15/13 3 1,610,000 1,630,125
8.75% Sr. Unsec. Nts., Series B, 5/1/09 3,600,000 3,919,500
- -----------------------------------------------------------------------------------
US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 1,000,000 1,102,500
- -----------------------------------------------------------------------------------
Vicar Operating, Inc., 9.875% Sr. Sub. Nts.,
12/1/09 1 4,000,000 4,460,000
---------------
73,539,765
- -----------------------------------------------------------------------------------
PHARMACEUTICALS--0.3%
aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 1,400,000 1,596,000
- -----------------------------------------------------------------------------------
Valeant Pharmaceuticals International, Inc., 7% Sr.
Nts., 12/15/11 3 2,900,000 3,001,500
---------------
4,597,500
- -----------------------------------------------------------------------------------
INDUSTRIALS--8.7%
- -----------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.0%
Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub.
Nts., 5/15/11 2,400,000 2,652,000
- -----------------------------------------------------------------------------------
American Plumbing & Mechanical, Inc.,
11.625% Sr. Sub. Nts., Series B, 10/15/08 1,4,5 4,700,000 1,180,875
- -----------------------------------------------------------------------------------
BE Aerospace, Inc.:
8.50% Sr. Nts., 10/1/10 3 1,100,000 1,185,250
9.50% Sr. Unsec. Sub. Nts., 11/1/08 1,000,000 977,500
- -----------------------------------------------------------------------------------
K&F Industries, Inc., 9.625% Sr. Unsec. Sub.
Nts., 12/15/10 700,000 788,375
- -----------------------------------------------------------------------------------
L-3 Communications Corp., 7.625% Sr. Sub. Nts.,
6/15/12 1,200,000 1,306,500
- -----------------------------------------------------------------------------------
Rexnord Corp., 10.125% Sr. Unsec. Sub. Nts.,
12/15/12 1,900,000 2,090,000
- -----------------------------------------------------------------------------------
TransDigm, Inc., 8.375% Sr. Sub. Nts., 7/15/11 2,800,000 2,992,500
- -----------------------------------------------------------------------------------
TRW Automotive, Inc.:
9.375% Sr. Nts., 2/15/13 1,700,000 1,950,750
11% Sr. Sub. Nts., 2/15/13 2,000,000 2,365,000
- -----------------------------------------------------------------------------------
Vought Aircraft Industries, Inc., 8% Sr.
Nts., 7/15/11 3 1,050,000 1,077,563
---------------
18,566,313
17 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.2%
Atlas Air, Inc., 9.375% Sr. Unsec. Nts.,
11/15/06 4,5 $ 3,650,000 $ 1,368,750
- -----------------------------------------------------------------------------------
Park-Ohio Industries, Inc., 9.25% Sr. Sub. Nts.,
12/1/07 2,000,000 2,000,000
---------------
3,368,750
- -----------------------------------------------------------------------------------
AIRLINES--0.3%
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 6,400,000 5,552,000
- -----------------------------------------------------------------------------------
BUILDING PRODUCTS--0.5%
Associated Materials, Inc., 9.75% Sr. Sub.
Nts., 4/15/12 1,500,000 1,650,000
- -----------------------------------------------------------------------------------
Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts.,
7/1/10 3 1,944,000 2,148,120
- -----------------------------------------------------------------------------------
Nortek, Inc.:
9.125% Sr. Unsec. Nts., Series B, 9/1/07 300,000 311,625
9.25% Sr. Nts., Series B, 3/15/07 2,200,000 2,271,500
9.875% Sr. Unsec. Sub. Nts., 6/15/11 1,000,000 1,107,500
- -----------------------------------------------------------------------------------
North America Energy Partners, Inc., 8.75% Sr.
Unsec. Nts., 12/1/11 3 1,300,000 1,371,500
---------------
8,860,245
- -----------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--3.0%
Allied Waste North America, Inc.:
7.875% Sr. Nts., 4/15/13 2,500,000 2,718,750
7.875% Sr. Unsec. Nts., Series B, 1/1/09 1,900,000 1,990,250
8.50% Sr. Sub. Nts., 12/1/08 2,200,000 2,458,500
8.875% Sr. Nts., Series B, 4/1/08 4,700,000 5,287,500
9.25% Sr. Sec. Debs., Series B, 9/1/12 8,650,000 9,861,000
10% Sr. Unsec. Sub. Nts., Series B, 8/1/09 1,300,000 1,410,500
- -----------------------------------------------------------------------------------
American Pad & Paper Co., 13% Sr. Sub. Nts.,
Series B, 11/15/05 1,4,5 2,500,000 16,313
- -----------------------------------------------------------------------------------
Budget Group, Inc., 9.125% Sr. Unsec. Nts.,
4/1/06 4,5 6,500,000 1,202,500
- -----------------------------------------------------------------------------------
Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts.,
11/1/09 2,500,000 2,812,500
- -----------------------------------------------------------------------------------
Coinmach Corp., 9% Sr. Nts., 2/1/10 2,250,000 2,452,500
- -----------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts.,
Series B,12/1/07 1 2,400,000 1,572,000
- -----------------------------------------------------------------------------------
Hydrochem Industrial Services, Inc., 10.375% Sr.
Sub. Nts., 8/1/07 1 3,500,000 3,351,250
- -----------------------------------------------------------------------------------
IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts.,
Series B, 4/1/09 1,4,5 3,850,000 --
- -----------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub.
Nts., 2/15/09 1 3,000,000 3,060,000
- -----------------------------------------------------------------------------------
Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 4,150,000 4,627,250
- -----------------------------------------------------------------------------------
Moore North American Finance, Inc., 7.875% Sr. Nts.,
1/15/11 3 1,300,000 1,478,750
- -----------------------------------------------------------------------------------
Protection One, Inc./Protection One Alarm
Monitoring, Inc., 7.375% Sr. Unsec. Nts.,
8/15/05 1 1,500,000 1,387,500
- -----------------------------------------------------------------------------------
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 1,853,000
- -----------------------------------------------------------------------------------
United Rentals North America, Inc.:
9% Sr. Unsec. Sub. Nts., Series B, 4/1/09 1,000,000 1,063,750
9.25% Sr. Unsec. Sub. Nts., Series B, 1/15/09 200,000 211,000
10.75% Sr. Unsec. Nts., Series B, 4/15/08 3,050,000 3,446,500
10.75% Sr. Unsec. Nts., Series B, 4/15/08 1,700,000 1,921,000
---------------
57,166,833
18 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.2%
Integrated Electrical Services, Inc.:
9.375% Sr. Sub. Nts., Series B, 2/1/09 1 $ 1,100,000 $ 1,160,500
9.375% Sr. Sub. Nts., Series C, 2/1/09 500,000 527,500
- -----------------------------------------------------------------------------------
URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 1 2,200,000 2,499,750
---------------
4,187,750
- -----------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.2%
Dayton Superior Corp., 13% Sr. Unsec. Sub.
Nts., 6/15/09 1 1,050,000 918,750
- -----------------------------------------------------------------------------------
General Cable Corp., 9.50% Sr. Nts., 11/15/10 3 2,200,000 2,365,000
---------------
3,283,750
- -----------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.7%
Great Lakes Dredge & Dock Co., 7.75% Sr. Sub.
Nts., 12/15/13 3 2,100,000 2,170,875
- -----------------------------------------------------------------------------------
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 5,850,000 6,281,438
6.75% Sr. Unsub. Nts., 2/15/11 300,000 329,250
---------------
13,016,563
- -----------------------------------------------------------------------------------
MACHINERY--1.5%
Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 1,455,000 1,898,775
- -----------------------------------------------------------------------------------
AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 6,000,000 6,600,000
- -----------------------------------------------------------------------------------
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 1,4,5 7,500,000 68,438
- -----------------------------------------------------------------------------------
Manitowoc Co., Inc. (The):
7.125% Sr. Nts., 11/1/13 600,000 623,250
10.50% Sr. Sub. Nts., 8/1/12 3,350,000 3,831,563
- -----------------------------------------------------------------------------------
NMHG Holding Co., 10% Sr. Nts., 5/15/09 1 1,600,000 1,776,000
- -----------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., 9.625% Sr.
Sub. Nts., Series B, 6/15/07 5,480,000 5,130,650
- -----------------------------------------------------------------------------------
SPX Corp., 7.50% Sr. Nts., 1/1/13 3,000,000 3,277,500
- -----------------------------------------------------------------------------------
Terex Corp.:
9.25% Sr. Unsec. Sub. Nts., 7/15/11 3,900,000 4,309,500
10.375% Sr. Unsec. Sub. Nts., Series B, 4/1/11 1 500,000 562,500
---------------
28,078,176
- -----------------------------------------------------------------------------------
MARINE--0.6%
CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 5,000,000 5,825,000
- -----------------------------------------------------------------------------------
Millenium Seacarriers, Inc., 12% Sr. Sec. Nts.,
7/15/05 1,4,5 5,000,000 1,923,500
- -----------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50%
First Priority Ship Mtg. Nts., 6/30/07 1,4,5 5,800,000 2,465,000
- -----------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 3.75% Sec.
Nts., 12/31/07 3 2,214,295 672,592
--------------
10,886,092
19 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
ROAD & RAIL--0.4%
Kansas City Southern Railway Co. (The), 7.50% Sr.
Nts., 6/15/09 $ 2,000,000 $ 2,060,000
- -----------------------------------------------------------------------------------
Stena AB:
7.50% Sr. Nts., 11/1/13 3,093,000 3,201,255
9.625% Sr. Nts., 12/1/12 2,000,000 2,265,000
---------------
7,526,255
- -----------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE--0.1%
Worldspan LP/Worldspan Financial Corp., 9.625% Sr.
Nts., 6/15/11 3 1,250,000 1,293,750
- -----------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--1.7%
- -----------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--0.1%
Orion Network Systems, Inc., 12.50% Sr. Disc. Nts.,
1/15/07 1,4,5 5,310,000 2,801,025
- -----------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.1%
Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 1,700,000 1,840,250
- -----------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.4%
Communications & Power Industries, Inc., 12%
Sr. Sub. Nts., Series B, 8/1/05 1 350,000 359,625
- -----------------------------------------------------------------------------------
Ingram Micro, Inc., 9.875% Sr. Unsec. Sub.
Nts., 8/15/08 1 3,000,000 3,330,000
- -----------------------------------------------------------------------------------
Sensus Metering Systems, Inc., 8.625% Sr. Sub.
Nts., 12/15/13 3 4,200,000 4,331,250
---------------
8,020,875
- -----------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.1%
Exodus Communications, Inc., 10.75% Sr. Nts.,
12/15/09 1,4,5 [EUR] 4,232,751 240,254
- -----------------------------------------------------------------------------------
Globix Corp., 11% Sr. Nts., 4/26/08 1 765,517 677,483
- -----------------------------------------------------------------------------------
NorthPoint Communications Group, Inc., 12.875%
Nts., 2/15/10 1,4 1,040,900 104
- -----------------------------------------------------------------------------------
PSINet, Inc.:
10.50% Sr. Unsec. Nts., 12/1/06 1,4,5 [EUR] 1,000,000 52,031
11% Sr. Nts., 8/1/09 1,4,5 2,118,662 121,823
- -----------------------------------------------------------------------------------
Verado Holdings, Inc., 0%/13% Sr. Disc.
Nts., 4/15/08 1,4,5,6 5,000,000 500
---------------
1,092,195
- -----------------------------------------------------------------------------------
IT SERVICES--0.3%
Iron Mountain, Inc.:
7.75% Sr. Sub. Nts., 1/15/15 1,200,000 1,263,000
8.625% Sr. Unsec. Sub. Nts., 4/1/13 2,400,000 2,604,000
- -----------------------------------------------------------------------------------
Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 3 1,400,000 1,596,000
---------------
5,463,000
- -----------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0.7%
AMI Semiconductor, Inc., 10.75% Sr. Unsec. Sub.
Nts., 2/1/13 2,597,000 3,109,908
- -----------------------------------------------------------------------------------
Amkor Technology, Inc.:
7.75% Sr. Nts., 5/15/13 2,350,000 2,532,125
9.25% Sr. Unsec. Sub. Nts., 2/15/08 3,500,000 3,990,000
- -----------------------------------------------------------------------------------
ChipPAC International Co. Ltd., 12.75%
Sr. Unsec. Sub. Nts., Series B, 8/1/09 2,500,000 2,775,000
---------------
12,407,033
20 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
MATERIALS--10.6%
- -----------------------------------------------------------------------------------
CHEMICALS--3.7%
Applied Extrusion Technologies, Inc., 10.75% Sr.
Nts., Series B, 7/1/11 $ 1,700,000 $ 1,419,500
- -----------------------------------------------------------------------------------
Avecia Group plc, 11% Sr. Unsec. Nts., 7/1/09 1,750,000 1,583,750
- -----------------------------------------------------------------------------------
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 1,050,000
10.625% Sr. Nts., 5/1/11 3 3,800,000 4,218,000
10.625% Sr. Unsec. Nts., 5/1/11 2,000,000 2,220,000
- -----------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc:
10.125% Sr. Unsec. Sub. Nts., 7/1/09 7,850,000 8,124,750
13.09% Sr. Unsec. Disc. Nts., 12/31/09 10 4,000,000 1,950,000
- -----------------------------------------------------------------------------------
Huntsman International LLC:
9.875% Sr. Nts., 3/1/09 5,500,000 6,050,000
9.875% Sr. Nts., 3/1/09 3 600,000 660,000
- -----------------------------------------------------------------------------------
IMC Global, Inc., 7.625% Bonds, 11/1/05 1 24,000 24,720
- -----------------------------------------------------------------------------------
ISP Chemco, Inc., 10.25% Sr. Unsec. Sub. Nts.,
7/1/11 1 2,700,000 3,051,000
- -----------------------------------------------------------------------------------
ISP Holdings, Inc., 10.625% Sr. Sec. Nts.,
12/15/09 1 1,800,000 1,989,000
- -----------------------------------------------------------------------------------
Koppers Industry, Inc., 9.875% Sr. Sec. Nts.,
10/15/13 3 2,800,000 3,101,000
- -----------------------------------------------------------------------------------
Kraton Polymers LLC/Capital Corp., 8.125% Sr. Sub.
Nts., 1/15/14 3 1,450,000 1,515,250
- -----------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.50% Sec. Nts., 12/15/08 600,000 630,000
9.50% Sr. Sec. Nts., 12/15//08 700,000 735,000
9.625% Sr. Sec. Nts., Series A, 5/1/07 4,400,000 4,686,000
9.875% Sec. Nts., Series B, 5/1/07 1,350,000 1,431,000
- -----------------------------------------------------------------------------------
Millennium America, Inc., 9.25% Sr. Nts., 6/15/08 3 1,100,000 1,204,500
- -----------------------------------------------------------------------------------
Noveon, Inc., 11% Sr. Unsec. Sub. Nts.,
Series B, 2/28/11 1 3,500,000 4,077,500
- -----------------------------------------------------------------------------------
OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11 100,000 104,500
- -----------------------------------------------------------------------------------
PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 989,550 900,491
- -----------------------------------------------------------------------------------
Pioneer Cos., Inc., 4.64% Sr. Sec. Nts.,
12/31/06 1,2 313,358 285,156
- -----------------------------------------------------------------------------------
Polyone Corp., 8.875% Sr. Unsec. Nts., 5/1/12 4,900,000 4,532,500
- -----------------------------------------------------------------------------------
Resolution Performance Products LLC, 8% Sec.
Nts., 12/15/09 3 1,650,000 1,716,000
- -----------------------------------------------------------------------------------
Rockwood Specialties Corp., 10.625% Sr. Sub.
Nts., 5/15/11 3 950,000 1,064,000
- -----------------------------------------------------------------------------------
Royster-Clark, Inc., 10.25% First Mtg. Nts., 4/1/09 1,500,000 1,327,500
- -----------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
10% Sr. Sec. Nts., 12/19/07 1 2,045,678 1,979,193
11.25% Sr. Sub. Nts., 8/15/06 1,4,5 3,000,000 --
- -----------------------------------------------------------------------------------
Westlake Chemical Corp., 8.75% Sr. Nts., 7/15/11 3 2,800,000 3,080,000
---------------
69,120,310
- -----------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.2%
Formica Corp., 10.875% Sr. Unsec. Sub. Nts.,
Series B, 3/1/09 1,4,5 3,500,000 630,000
- -----------------------------------------------------------------------------------
Texas Industries, Inc., 10.25% Sr. Unsec. Nts.,
6/15/11 2,600,000 2,951,000
---------------
3,581,000
21 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
CONTAINERS & PACKAGING--2.6%
Crown Euro Holdings SA:
9.50% Sr. Sec. Nts., 3/1/11 $2,800,000 $ 3,185,000
10.875% Sr. Sec. Nts., 3/1/13 1,400,000 1,653,750
- -----------------------------------------------------------------------------------
Graphic Packaging International Corp.:
8.50% Sr. Nts., 8/15/11 3 3,300,000 3,630,000
9.50% Sr. Sub. Nts., 8/15/13 3 2,100,000 2,331,000
- -----------------------------------------------------------------------------------
Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts.,
10/1/12 2,500,000 2,725,000
- -----------------------------------------------------------------------------------
MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 2,500,000 2,812,500
- -----------------------------------------------------------------------------------
Owens-Brockway Glass Container, Inc.:
7.75% Sr. Sec. Nts., 5/15/11 2,700,000 2,912,625
8.25% Sr. Unsec. Nts., 5/15/13 1,200,000 1,294,500
8.75% Sr. Sec. Nts., 11/15/12 5,400,000 6,041,250
8.875% Sr. Sec. Nts., 2/15/09 6,000,000 6,607,500
- -----------------------------------------------------------------------------------
Stone Container Corp.:
8.375% Sr. Nts., 7/1/12 2,500,000 2,725,000
9.25% Sr. Unsec. Nts., 2/1/08 3,000,000 3,330,000
9.75% Sr. Unsec. Nts., 2/1/11 4,000,000 4,440,000
- -----------------------------------------------------------------------------------
TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 4,200,000 4,399,500
---------------
48,087,625
- -----------------------------------------------------------------------------------
METALS & MINING--2.3%
AK Steel Corp., 7.875% Sr. Unsec. Nts., 2/15/09 900,000 794,250
- -----------------------------------------------------------------------------------
Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 3 2,650,000 2,736,125
- -----------------------------------------------------------------------------------
Better Minerals & Aggregates Co., 13% Sr.
Unsec. Sub. Nts., 9/15/09 1 700,000 388,500
- -----------------------------------------------------------------------------------
California Steel Industries Corp., 8.50%
Sr. Unsec. Nts., Series B, 4/1/09 2,300,000 2,423,625
- -----------------------------------------------------------------------------------
Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08 5,460,000 6,115,200
- -----------------------------------------------------------------------------------
IMCO Recycling, Inc., 10.375% Sr. Sec. Nts.,
10/15/10 3 2,200,000 2,271,500
- -----------------------------------------------------------------------------------
International Utility Structures, Inc., 13% Unsec.
Sub. Nts., 2/1/08 1,4,5 814,000 8,140
- -----------------------------------------------------------------------------------
IPSCO, Inc., 8.75% Sr. Nts., 6/1/13 850,000 943,500
- -----------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts.,
6/1/12 2,500,000 2,787,500
- -----------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 10.875% Sr. Nts.,
Series B, 10/15/06 1,4,5 2,000,000 1,810,000
- -----------------------------------------------------------------------------------
Massey Energy Co., 6.625% Sr. Nts., 11/15/10 3 1,750,000 1,802,500
- -----------------------------------------------------------------------------------
Metallurg, Inc., 11% Sr. Nts., 12/1/07 6,320,000 3,570,800
- -----------------------------------------------------------------------------------
Northwest Pipeline Corp., 8.125% Sr. Nts., 3/1/10 850,000 947,750
- -----------------------------------------------------------------------------------
Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 3,750,000 3,309,375
- -----------------------------------------------------------------------------------
Peabody Energy Corp., 6.875% Sr. Unsec. Nts.,
Series B, 3/15/13 2,500,000 2,650,000
- -----------------------------------------------------------------------------------
Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 1,500,000 1,672,500
- -----------------------------------------------------------------------------------
UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 700,000 808,500
- -----------------------------------------------------------------------------------
United States Steel Corp.:
9.75% Sr. Nts., 5/15/10 1,800,000 2,034,000
10.75% Sr. Nts., 8/1/08 2,300,000 2,702,500
- -----------------------------------------------------------------------------------
WHX Corp., 10.50% Sr. Unsec. Nts., 4/15/05 1 5,000,000 4,425,000
---------------
44,201,265
22 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--1.8%
Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 $ 1,250,000 $ 1,394,125
- -----------------------------------------------------------------------------------
Ainsworth Lumber Co. Ltd.:
12.50% Sr. Nts., 7/15/07 1,7 1,600,000 1,888,000
13.875% Sr. Sec. Nts., 7/15/07 300,000 346,500
- -----------------------------------------------------------------------------------
Boise Cascade Co.:
6.50% Sr. Nts., 11/1/10 1,500,000 1,566,890
7% Sr. Nts., 11/1/13 2,400,000 2,498,650
- -----------------------------------------------------------------------------------
Buckeye Technologies, Inc., 8.50% Sr. Nts., 10/1/13 1,000,000 1,075,000
- -----------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts.,
3/15/04 1,4,5 11,000,000 1,925,000
- -----------------------------------------------------------------------------------
Georgia-Pacific Corp.:
8.125% Sr. Unsec. Nts., 5/15/11 9,600,000 10,608,000
9.375% Sr. Unsec. Nts., 2/1/13 5,400,000 6,237,000
- -----------------------------------------------------------------------------------
Inland Fiber Group LLC, 9.625% Sr. Unsec.
Nts., 11/15/07 4 4,000,000 2,100,000
- -----------------------------------------------------------------------------------
Louisiana-Pacific Corp., 10.875% Sr. Sub. Nts.,
11/15/08 1 1,000,000 1,195,000
- -----------------------------------------------------------------------------------
Tekni-Plex, Inc., 8.75% Sr. Sec. Nts., 11/15/13 3 2,500,000 2,618,750
---------------
33,452,915
- -----------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--9.8%
- -----------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--4.9%
360networks, Inc.:
13% Sr. Unsec. Nts., 5/1/08 1,4,5 3,500,000 350
13% Sr. Unsec. Nts., 5/1/08 1,4,5 [EUR] 1,000,000 126
- -----------------------------------------------------------------------------------
Adelphia Business Solutions, Inc., 12% Sr. Sub.
Nts., 11/1/07 1,4,5 1,600,000 12,000
- -----------------------------------------------------------------------------------
American Tower Corp., 9.375% Sr. Nts., 2/1/09 4,800,000 5,136,000
- -----------------------------------------------------------------------------------
COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 1,4,5 1,682,019 12,615
- -----------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 11.20%
Sr. Unsec. Disc. Debs., 11/15/07 5,570,000 5,653,550
- -----------------------------------------------------------------------------------
Concentric Network Corp., Escrow Shares,
12/15/07 1,9 3,065,000 --
- -----------------------------------------------------------------------------------
Crown Castle International Corp.,
7.50% Sr. Nts., 12/1/13 3 3,050,000 3,080,500
- -----------------------------------------------------------------------------------
Dex Media East LLC/Dex Media East Finance Co.,
9.875% Sr. Unsec. Nts., 11/15/09 3,000,000 3,450,000
- -----------------------------------------------------------------------------------
Dex Media West LLC/Dex Media West Finance Co.:
8.50% Sr. Nts., 8/15/10 3 2,100,000 2,349,375
9.875% Sr. Sub. Nts., 8/15/13 3 3,600,000 4,203,000
- -----------------------------------------------------------------------------------
Dex Media, Inc., 8% Nts., 11/15/13 3 4,100,000 4,325,500
- -----------------------------------------------------------------------------------
Diamond Holdings plc, 9.125% Sr. Nts., 2/1/08 1,400,000 1,454,250
- -----------------------------------------------------------------------------------
Focal Communications Corp.:
11.875% Sr. Unsec. Nts., Series B, 1/15/10 1,4,5 75,000 6,000
12.125% Sr. Unsec. Disc. Nts., 2/15/08 1,4,5 2,200,000 176,000
- -----------------------------------------------------------------------------------
ICG Services, Inc., Escrow Shares, 2/15/08 1,9 1,485,000 --
- -----------------------------------------------------------------------------------
Intermedia Communications, Inc., 0%/12.25% Sr.
Disc. Nts., Series B, 3/1/09 4,5,6 3,000,000 1,125,000
- -----------------------------------------------------------------------------------
IPC Acquisition Corp., 11.50% Sr. Sub. Nts.,
12/15/09 550,000 602,250
- -----------------------------------------------------------------------------------
Level 3 Communications, Inc.:
0%/10.50% Sr. Disc. Nts., 12/1/08 6 1,850,000 1,752,875
9.125% Sr. Unsec. Nts., 5/1/08 2,700,000 2,470,500
23 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES Continued
MCI Communications Corp., 7.75% Sr.
Unsec. Debs., 3/23/25 4,5 $ 2,000,000 $ 1,620,000
- -----------------------------------------------------------------------------------
Metromedia Fiber Network, Inc.:
10% Sr. Nts., 12/15/09 4,5 [EUR] 2,000,000 151,362
10% Sr. Unsec. Nts., Series B, 11/15/08 1,4,5 4,300,000 279,500
- -----------------------------------------------------------------------------------
Nextlink Communications, Inc.:
Escrow Shares, 10/1/07 1,9 5,000,000 --
Escrow Shares, 4/15/08 1,9 2,250,000 --
Escrow Shares, 11/15/08 1,9 5,500,000 --
Escrow Shares, 6/1/09 1,9 2,000,000 --
- -----------------------------------------------------------------------------------
Pratama Datakom Asia BV, 12.75% Gtd. Nts.,
7/15/05 1,4,5 4,000,000 160,000
- -----------------------------------------------------------------------------------
Qwest Capital Funding, Inc., 5.875% Nts., 8/3/04 3,700,000 3,727,750
- -----------------------------------------------------------------------------------
Qwest Corp., 8.875% Nts., 3/15/12 3 5,400,000 6,223,500
- -----------------------------------------------------------------------------------
Qwest Services Corp., 13.50% Nts., 12/15/10 3 15,100,000 18,422,000
- -----------------------------------------------------------------------------------
Sprint Capital Corp., 8.375% Nts., 3/15/12 3,500,000 4,095,553
- -----------------------------------------------------------------------------------
Telewest Communications plc:
0%/9.25% Sr. Disc. Nts., 4/15/09 4,5,6 7,300,000 3,832,500
0%/9.875% Sr. Disc. Nts., 4/15/09 4,5,6 [GBP] 4,000,000 3,651,909
11.25% Sr. Nts., 11/1/08 4,5 3,700,000 2,395,750
- -----------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 1,4,5 2,300,000 --
- -----------------------------------------------------------------------------------
Time Warner Telecom LLC/Time Warner Telecom,
Inc., 9.75% Sr. Nts., 7/15/08 7,800,000 8,073,000
- -----------------------------------------------------------------------------------
Time Warner Telecom, Inc., 10.125% Sr. Unsec. Sub.
Nts., 2/1/11 2,700,000 2,889,000
- -----------------------------------------------------------------------------------
Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 1,4,5 2,925,000 --
---------------
91,331,715
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--4.9%
Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts.,
2/1/11 3,800,000 3,895,000
- -----------------------------------------------------------------------------------
American Tower Escrow Corp., 12.25% Sr. Sub. Disc.
Nts., 8/1/08 10 4,300,000 2,988,500
- -----------------------------------------------------------------------------------
CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts.,
10/1/07 1,4,5 9,220,000 --
- -----------------------------------------------------------------------------------
Centennial Cellular Operating Co./Centennial
Communications Corp., 10.125% Sr. Nts., 6/15/13 3,700,000 4,079,250
- -----------------------------------------------------------------------------------
Crown Castle International Corp., 10.75% Sr.
Nts., 8/1/11 3,600,000 4,068,000
- -----------------------------------------------------------------------------------
CTI Holdings SA, 0%/11.50% Sr. Deferred Coupon Nts.,
4/15/08 1,4,5,6 4,650,000 581,250
- -----------------------------------------------------------------------------------
Dobson Communications Corp.:
8.875% Sr. Nts., 10/1/13 3 6,200,000 6,308,500
10.875% Sr. Unsec. Nts., 7/1/10 4,600,000 5,037,000
- -----------------------------------------------------------------------------------
IPCS, Inc., 0%/14% Sr. Unsec. Disc. Nts.,
7/15/10 1,4,5,6 1,350,000 189,000
- -----------------------------------------------------------------------------------
Leap Wireless International, Inc.:
0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 1,4,5,6 4,500,000 562,500
12.50% Sr. Nts., 4/15/10 1,4,5 2,900,000 420,500
- -----------------------------------------------------------------------------------
Nextel Communications, Inc.:
7.375% Sr. Nts., 8/1/15 3,460,000 3,736,800
9.375% Sr. Unsec. Nts., 11/15/09 6,700,000 7,336,500
9.50% Sr. Unsec. Nts., 2/1/11 9,250,000 10,498,750
- -----------------------------------------------------------------------------------
Nextel Partners, Inc.:
11% Sr. Unsec. Nts., 3/15/10 900,000 999,000
12.50% Sr. Nts., 11/15/09 3,760,000 4,380,400
24 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES Continued
Orbcomm Global LP, Escrow Shares, 8/15/04 1,9 $ 3,775,000 $ --
- -----------------------------------------------------------------------------------
Rogers Wireless Communications, Inc., 8.80% Sr.
Sub. Nts., 10/1/07 5,000,000 5,162,500
- -----------------------------------------------------------------------------------
Rural Cellular Corp.:
9.625% Sr. Sub. Nts., Series B, 5/15/08 3,000,000 2,940,000
9.75% Sr. Sub. Nts., 1/15/10 2,900,000 2,849,250
9.875% Sr. Nts., 2/1/10 3,900,000 4,173,000
- -----------------------------------------------------------------------------------
SBA Communications Corp.:
10.25% Sr. Unsec. Nts., 2/1/09 2,900,000 2,863,750
12% Sr. Unsec. Disc. Nts., 3/1/08 1 1,602,000 1,750,185
- -----------------------------------------------------------------------------------
SBA Telecommunications, Inc./SBA Communications
Corp., 0%/9.75% Sr. Disc. Nts., 12/15/11 3,6 4,300,000 3,053,000
- -----------------------------------------------------------------------------------
SpectraSite, Inc., 8.25% Sr. Nts., 5/15/10 1 1,200,000 1,287,000
- -----------------------------------------------------------------------------------
Triton PCS, Inc.:
8.50% Sr. Unsec. Nts., 6/1/13 2,600,000 2,808,000
8.75% Sr. Unsec. Sub. Nts., 11/15/11 350,000 346,500
9.375% Sr. Unsec. Sub. Nts., 2/1/11 1,800,000 1,845,000
- -----------------------------------------------------------------------------------
US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub.
Disc. Nts., Series B, 11/1/09 6 5,850,000 4,270,500
- -----------------------------------------------------------------------------------
Western Wireless Corp., 9.25% Sr. Unsec. Nts.,
7/15/13 2,400,000 2,544,000
---------------
90,973,635
- -----------------------------------------------------------------------------------
UTILITIES--9.2%
- -----------------------------------------------------------------------------------
ELECTRIC UTILITIES--4.3%
AES Corp. (The):
8.375% Sr. Unsec. Unsub. Nts., 3/1/11 [GBP] 2,500,000 4,374,682
8.75% Sr. Sec. Nts., 5/15/13 3 6,200,000 6,959,500
8.75% Sr. Unsec. Unsub. Nts., 6/15/08 1,115,000 1,201,413
8.875% Sr. Unsec. Nts., 2/15/11 773,000 846,435
9.375% Sr. Unsec. Nts., 9/15/10 1,028,000 1,144,935
9.50% Sr. Unsec. Nts., 6/1/09 299,000 333,011
10% Sec. Nts., 7/15/05 3 2,820,608 2,884,072
- -----------------------------------------------------------------------------------
AES Drax Holdings Ltd., 10.41% Sr. Sec. Sub. Nts.,
Series B, 12/31/20 1,4,5 1,300,000 1,131,000
- -----------------------------------------------------------------------------------
Allegheny Energy, Inc., 7.75% Nts., 8/1/05 1,350,000 1,368,563
- -----------------------------------------------------------------------------------
Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts.,
Series B, 12/15/09 837,000 912,330
- -----------------------------------------------------------------------------------
Calpine Corp.:
7.625% Sr. Nts., 4/15/06 2,650,000 2,358,500
8.25% Sr. Unsec. Nts., 8/15/05 2,500,000 2,431,250
8.50% Sr. Sec. Nts., 7/15/10 3 7,200,000 7,056,000
8.625% Sr. Nts., 8/15/10 600,000 471,000
8.75% Sr. Nts., 7/15/07 2,800,000 2,310,000
8.75% Sr. Sec. Nts., 7/15/13 3 5,250,000 5,145,000
9.875% Sr. Sec. Nts., 12/1/11 3 2,900,000 2,994,250
- -----------------------------------------------------------------------------------
CMS Energy Corp.:
7.50% Sr. Nts., 1/15/09 1,000,000 1,035,000
7.75% Sr. Nts., 8/1/10 3 1,400,000 1,478,750
9.875% Sr. Unsec. Nts., 10/15/07 4,000,000 4,480,000
25 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
ELECTRIC UTILITIES Continued
CMS Energy X-TRAS Pass-Through Trust I, 7% Sr. Unsec.
Pass-Through Certificates, 1/15/05 $ 1,300,000 $ 1,339,000
- -----------------------------------------------------------------------------------
Edison Mission Energy, 10% Sr. Unsec. Nts.,
8/15/08 275,000 286,688
- -----------------------------------------------------------------------------------
Messer Griesheim Holding AG, 10.375% Sr. Nts.,
6/1/11 [EUR] 2,500,000 3,646,092
- -----------------------------------------------------------------------------------
Mirant Americas Generation LLC, 8.30% Sr. Unsec.
Nts., 5/1/11 4,5 1,300,000 1,105,000
- -----------------------------------------------------------------------------------
MSW Energy Holdings LLC/MSW Energy Finance Co., Inc.:
7.375% Sr. Sec. Nts., 9/1/10 3 3,350,000 3,517,500
8.50% Sr. Sec. Nts., 9/1/10 3 1,300,000 1,423,500
- -----------------------------------------------------------------------------------
NRG Energy, Inc., 8% Sr. Sec. Nts., 12/15/13 3 6,200,000 6,548,750
- -----------------------------------------------------------------------------------
PG&E Corp., 6.875% Sr. Sec. Nts., 7/15/08 3 2,800,000 3,045,000
- -----------------------------------------------------------------------------------
Reliant Resources, Inc.:
9.25% Sr. Sec. Nts., 7/15/10 3 3,700,000 3,940,500
9.50% Sr. Sec. Nts., 7/15/13 3 2,900,000 3,117,500
- -----------------------------------------------------------------------------------
Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07 750,000 855,938
---------------
79,741,159
- -----------------------------------------------------------------------------------
GAS UTILITIES--2.4%
AmeriGas Partners LP/AmeriGas Eagle Finance Corp.,
8.875% Sr. Unsec. Nts., Series B, 5/20/11 11 750,000 828,750
- -----------------------------------------------------------------------------------
ANR Pipeline Co., 8.875% Sr. Nts., 3/15/10 1,400,000 1,582,000
- -----------------------------------------------------------------------------------
El Paso Corp., 7.875% Sr. Unsec. Nts., 6/15/12 4,000,000 3,800,000
- -----------------------------------------------------------------------------------
El Paso Energy Corp., 7.625% Nts., 7/15/11 3,500,000 3,259,375
- -----------------------------------------------------------------------------------
SEMCO Energy, Inc.:
7.125% Sr. Nts., 5/15/08 1,100,000 1,150,875
7.75% Sr. Nts., 5/15/13 1,100,000 1,161,875
- -----------------------------------------------------------------------------------
Southern Natural Gas Co.:
7.35% Nts., 2/15/31 2,800,000 2,779,000
8% Sr. Unsub. Nts., 3/1/32 4,800,000 4,980,000
8.875% Sr. Nts., 3/15/10 1,800,000 2,034,000
- -----------------------------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 11,550,000 11,983,125
- -----------------------------------------------------------------------------------
Williams Cos., Inc. (The), 7.125% Nts., 9/1/11 10,400,000 11,050,000
---------------
44,609,000
- -----------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--2.4%
AES Red Oak LLC, 8.54% Sr. Sec. Bonds, Series A,
11/30/19 3,365,031 3,651,059
- -----------------------------------------------------------------------------------
Aquila, Inc., 7% Sr. Unsec. Nts., 7/15/04 850,000 854,250
- -----------------------------------------------------------------------------------
Consumers Energy Co.:
6.25% Nts., 9/15/06 1,100,000 1,188,475
6.375% Sr. Sec. Nts., 2/1/08 800,000 871,278
7.375% Nts., 9/15/23 1,600,000 1,640,424
- -----------------------------------------------------------------------------------
Dynegy Holdings, Inc.:
6.875% Sr. Unsec. Unsub. Nts., 4/1/11 10,750,000 9,957,188
8.75% Sr. Nts., 2/15/12 3,200,000 3,244,000
10.125% Sr. Sec. Nts., 7/15/13 3 7,500,000 8,662,500
- -----------------------------------------------------------------------------------
El Paso Production Holding Co., 7.75% Sr.
Nts., 6/1/13 3 4,100,000 4,059,000
26 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER Continued
Mirant Mid-Atlantic LLC, 8.625% Sec. Pass-Through
Certificates, Series A, 6/30/12 1 $ 2,639,972 $ 2,654,822
- -----------------------------------------------------------------------------------
Transcontinental Gas Pipe Line Corp.:
6.125% Nts., 1/15/05 1,000,000 1,021,250
8.875% Sr. Unsub. Nts., Series B, 7/15/12 1,200,000 1,425,000
- -----------------------------------------------------------------------------------
Williams Cos., Inc. (The):
8.625% Sr. Nts., 6/1/10 5,200,000 5,863,000
9.25% Sr. Unsec. Unsub. Nts., 3/15/04 200,000 203,500
- -----------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.50% Nts.,
12/1/08 800,000 831,000
---------------
46,126,746
- -----------------------------------------------------------------------------------
WATER UTILITIES--0.1%
National Waterworks, Inc., 10.50% Sr. Unsec.
Sub. Nts., Series B, 12/1/12 1 1,400,000 1,571,500
---------------
Total Corporate Bonds and Notes (Cost $1,447,498,859) 1,472,625,736
SHARES
- -----------------------------------------------------------------------------------
PREFERRED STOCKS--1.4%
- -----------------------------------------------------------------------------------
AmeriKing, Inc., 13% Cum. Sr. Exchangeable,
Non-Vtg. 1,5,7 110,146 1,101
- -----------------------------------------------------------------------------------
Doane Pet Care Co., 14.25% Jr. Sub. Debs., Non-Vtg. 1,5 140,000 6,475,000
- -----------------------------------------------------------------------------------
Dobson Communications Corp., 6% Cv., Series F (converts
into Dobson Communications Corp., Cl. A common stock),
Non-Vtg. 2,800 504,000
- -----------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable,
Non-Vtg. 1,5,7 3,738 374
- -----------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable,
Series B, Non-Vtg. 1,5 28,000 2,051,000
- -----------------------------------------------------------------------------------
ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg. 1,5,7 1 --
- -----------------------------------------------------------------------------------
Intermedia Communications, Inc., 13.50% Exchangeable,
Series B 1,5,7 2 95
- -----------------------------------------------------------------------------------
McLeodUSA, Inc., 2.50% Cv., Series A 5 6,516 49,652
- -----------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable
Exchangeable, Non-Vtg. 1,5,7 96,993 --
- -----------------------------------------------------------------------------------
NTL Europe, Inc., 10% Cum., Series A, Non-Vtg. 197 1,620
- -----------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv.,
Series A 1,5,7 116,126 232,252
- -----------------------------------------------------------------------------------
Paxson Communications Corp.:
14.25% Cum. 5,7 1 12,796
14.25% Cum. Jr. Exchangeable, Non-Vtg. 7 806 7,435,350
- -----------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 7 6,236 4,879,670
- -----------------------------------------------------------------------------------
Sovereign Real Estate Investment Trust, 12% Non-Cum.,
Series A 1,5 26,250 3,930,938
- -----------------------------------------------------------------------------------
Ziff Davis Holdings, Inc., 10%, Series E-1 1,5 168 4,200
---------------
Total Preferred Stocks (Cost $37,595,196) 25,578,048
- -----------------------------------------------------------------------------------
COMMON STOCKS--1.6%
- -----------------------------------------------------------------------------------
Adelphia Business Solutions, Inc. 5 6,605 53
- -----------------------------------------------------------------------------------
Charles River Laboratories International, Inc. 5 22,800 782,724
- -----------------------------------------------------------------------------------
Chesapeake Energy Corp. 400,000 5,432,000
- -----------------------------------------------------------------------------------
Classic Cable, Inc. 5 6,613 --
27 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------
COMMON STOCKS Continued
- -----------------------------------------------------------------------------------
Conseco, Inc. 5 46,622 $ 1,016,360
- -----------------------------------------------------------------------------------
Covad Communications Group, Inc. 5 132,227 476,017
- -----------------------------------------------------------------------------------
Dobson Communications Corp., Cl. A 5 180,219 947,231
- -----------------------------------------------------------------------------------
Equinix, Inc. 5 86,277 2,433,011
- -----------------------------------------------------------------------------------
Globix Corp. 5 80,275 321,100
- -----------------------------------------------------------------------------------
Horizon Natural Resources Co. 1,5 93,333 --
- -----------------------------------------------------------------------------------
ICG Communications, Inc. 5 3,590 23,694
- -----------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. 1,5 168,429 85,899
- -----------------------------------------------------------------------------------
Manitowoc Co., Inc. (The) 3,772 117,686
- -----------------------------------------------------------------------------------
Microcell Telecommunications, Inc. 5 23,343 311,421
- -----------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. A 5 194 2,714
- -----------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. B 5 23,204 310,464
- -----------------------------------------------------------------------------------
NTL, Inc. 5 173,408 12,095,208
- -----------------------------------------------------------------------------------
Orbital Sciences Corp. 5 14,063 169,037
- -----------------------------------------------------------------------------------
Pioneer Cos., Inc. 5 63,991 521,527
- -----------------------------------------------------------------------------------
Polymer Group, Inc., Cl. A 5 6,989 52,418
- -----------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc. 1,5 1,688,400 --
- -----------------------------------------------------------------------------------
Prandium, Inc. 5,12 459,132 18,365
- -----------------------------------------------------------------------------------
Sterling Chemicals, Inc. 5 3,818 100,223
- -----------------------------------------------------------------------------------
TVMAX Holdings, Inc. 1,5 30,000 75,000
- -----------------------------------------------------------------------------------
UnitedGlobalCom, Inc., Cl. A 5 577,634 4,898,336
- -----------------------------------------------------------------------------------
Viatel Holding Ltd. (Bermuda) 1,5 11,456 25,203
- -----------------------------------------------------------------------------------
WRC Media Corp. 1,5 9,471 189
- -----------------------------------------------------------------------------------
XO Communications, Inc. 5 16,729 96,192
---------------
Total Common Stocks (Cost $35,284,362) 30,312,072
UNITS
- -----------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- -----------------------------------------------------------------------------------
American Tower Corp. Wts., Exp. 8/1/08 1,5 4,300 539,650
- -----------------------------------------------------------------------------------
Chesapeake Energy Corp. Wts.:
Exp. 5/1/05 1,5 22,514 225
Exp. 9/1/04 5 32,054 3,576
- -----------------------------------------------------------------------------------
Citigroup, Inc. Litigation Wts., Exp. 12/31/50 5 107,699 114,161
- -----------------------------------------------------------------------------------
COLO.com, Inc. Wts., Exp. 3/15/10 1,5 2,000 20
- -----------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07 1,5 3,330 --
- -----------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08 1,5 8,200 82
- -----------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 1,5 4,000 --
- -----------------------------------------------------------------------------------
Diva Systems Corp. Wts., Exp. 3/1/08 1,5 7,500 75
- -----------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05 1,5 2,575 26
- -----------------------------------------------------------------------------------
HF Holdings, Inc. Wts., Exp. 9/27/09 1,5 1,445 195
- -----------------------------------------------------------------------------------
Horizon PCS, Inc. Wts., Exp. 10/1/10 1,5 6,300 --
- -----------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 1,5 50,820 508
28 | OPPENHEIMER HIGH YIELD FUND
MARKET VALUE
UNITS SEE NOTE 1
- -----------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES Continued
- -----------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. Wts.:
Exp. 5/16/06 1,5 42,243 $ 211
Exp. 5/16/06 1,5 63 --
- -----------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07 1,5 7,055 --
- -----------------------------------------------------------------------------------
IPCS, Inc. Wts., Exp. 6/15/10 1,5 3,750 38
- -----------------------------------------------------------------------------------
Leap Wireless International, Inc. Wts., Exp. 4/15/10 1,5 3,500 --
- -----------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08 1,5 2,800 --
- -----------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07 1,5 3,910 39
- -----------------------------------------------------------------------------------
McLeodUSA, Inc. Wts., Exp. 4/16/07 5 14,440 7,364
- -----------------------------------------------------------------------------------
Microcell Telecommunications, Inc.:
Cl. A Wts., Exp. 5/1/05 5 8,619 13,139
Cl. B Wts., Exp. 5/1/08 5 14,365 30,570
- -----------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 1,5 6,400 64
- -----------------------------------------------------------------------------------
Ntelos, Inc. Wts., Exp. 8/15/10 1,5 5,000 2,500
- -----------------------------------------------------------------------------------
Pathmark Stores, Inc. Wts., Exp. 9/19/10 5 100,000 94,000
- -----------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 6/30/05 1,5 49,120 --
- -----------------------------------------------------------------------------------
Republic Technologies International LLC Wts.,
Exp. 7/15/09 1,5 1,200 --
- -----------------------------------------------------------------------------------
Sterling Chemicals, Inc. Wts., Exp. 12/19/08 1,5 6,199 --
- -----------------------------------------------------------------------------------
Telergy, Inc. Wts., Exp. 9/25/10 1,5 8,078 --
- -----------------------------------------------------------------------------------
XO Communications, Inc.:
Cl. A Wts., Exp. 1/16/10 5 33,465 65,257
Cl. B Wts., Exp. 1/16/10 5 25,098 42,667
Cl. C Wts., Exp. 1/16/10 5 25,098 27,608
- -----------------------------------------------------------------------------------
Ziff Davis Holdings, Inc. Wts., Exp. 8/12/12 1,5 30,800 307
---------------
Total Rights, Warrants and Certificates (Cost $1,680,612) 942,282
PRINCIPAL
AMOUNT
- -----------------------------------------------------------------------------------
STRUCTURED NOTES--11.0%
- -----------------------------------------------------------------------------------
Bear Stearns Cos., Inc. (The), High Yield Index
Linked Nts.:
5%, 3/09/04 $ 10,000,000 10,563,000
5%, 3/31/04 10,000,000 11,500,000
5%, 5/11/04 10,000,000 10,552,000
8.65%, 5/31/04 10,000,000 10,223,000
- -----------------------------------------------------------------------------------
JPMorgan Chase Bank, TRAC-X NA High Yield T3 Credit
Default Swap Bonds, 8%, 3/25/09 3 153,700,000 161,192,875
- -----------------------------------------------------------------------------------
Parametric RE Ltd., Catastrophe Linked Nts.,
5.52%, 11/19/07 2,3 1,000,000 1,028,220
---------------
Total Structured Notes (Cost $194,700,000) 205,059,095
29 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--4.0%
- -------------------------------------------------------------------------------------
Undivided interest of 4.70% in joint repurchase
agreement (Principal Amount/Market Value
$1,603,898,000, with a maturity value of
$1,603,979,086) with PaineWebber, Inc., 0.91%,
dated 12/31/03, to be repurchased at $75,431,813
on 1/2/04, collateralized by Federal Home Loan
Mortgage Corp., 5%--5.50%, 9/1/33--11/1/33, with
a value of $405,980,626 and Federal National
Mortgage Assn., 4.50%, 10/1/33, with a value of
$1,234,398,060 (Cost $75,428,000) $ 75,428,000 $ 75,428,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,818,463,973) 98.1% 1,828,962,441
- -------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.9 35,259,652
-------------------------------
NET ASSETS 100.0% $1,864,222,093
-------------------------------
<FN>
FOOTNOTES TO STATEMENT OF INVESTMENTS
PRINCIPAL AMOUNT IS REPORTED IN U.S. DOLLARS, EXCEPT FOR THOSE DENOTED IN THE
FOLLOWING CURRENCIES:
EUR Euro
GBP British Pound Sterling
MXN Mexican Nuevo Peso
1. Identifies issues considered to be illiquid. See Note 7 of Notes to Financial
Statements.
2. Represents the current interest rate for a variable or increasing rate
security.
3. 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 $421,283,248 or 22.60% of the Fund's net
assets as of December 31, 2003.
4. Issue is in default. See Note 1 of Notes to Financial Statements.
5. Non-income producing security.
6. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
7. Interest or dividend is paid-in-kind.
8. 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.
9. Received as the result of issuer reorganization. Currently has minimal market
value.
10. Zero coupon bond reflects effective yield on the date of purchase.
11. Securities with an aggregate market value of $44,200 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 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 December 31, 2003.
The aggregate fair value of securities of affiliated companies held by the Fund
as of December 31, 2003 amounts to $18,365. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES UNREALIZED
JUNE 30, 2003 ADDITIONS REDUCTIONS DECEMBER 31, 2003 DEPRECIATION
- -----------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Prandium, Inc. 459,132 -- -- 459,132 $5,381,635
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF ASSETS AND LIABILITIES UNAUDITED
- --------------------------------------------------------------------------------
DECEMBER 31, 2003
- -----------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------
Investments, at value (including securities loaned of
approximately $6,727,000)--see accompanying statement:
Unaffiliated companies (cost $1,813,063,973) $1,828,944,076
Affiliated companies (cost $5,400,000) 18,365
---------------
1,828,962,441
- -----------------------------------------------------------------------------------
Cash 3,503,955
- -----------------------------------------------------------------------------------
Collateral for securities loaned 6,807,504
- -----------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 32,683,104
Shares of beneficial interest sold 5,177,403
Futures margins 2,125
Other 9,883
---------------
Total assets 1,877,146,415
- -----------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------
Return of collateral for securities loaned 6,807,504
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 3,932,617
Distribution and service plan fees 1,055,786
Investments purchased 735,111
Transfer and shareholder servicing agent fees 243,403
Shareholder reports 92,625
Trustees' compensation 10,183
Other 47,093
---------------
Total liabilities 12,924,322
- -----------------------------------------------------------------------------------
NET ASSETS $1,864,222,093
===============
- -----------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 194,774
- -----------------------------------------------------------------------------------
Additional paid-in capital 2,477,328,320
- -----------------------------------------------------------------------------------
Accumulated net investment loss (5,169,613)
- -----------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (618,651,720)
- -----------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities denominated in foreign
currencies 10,520,332
---------------
NET ASSETS $1,864,222,093
===============
31 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF ASSETS AND LIABILITIES UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $1,246,971,933 and 129,839,900 shares of beneficial interest
outstanding) $ 9.60
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $10.08
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $367,899,347 and 38,879,421 shares of beneficial interest
outstanding) $ 9.46
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $179,848,869 and 18,773,958 shares of beneficial interest
outstanding) $ 9.58
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $12,319,604 and 1,280,437 shares of beneficial interest
outstanding) $ 9.62
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $57,182,340 and 6,000,057 shares of beneficial
interest outstanding) $ 9.53
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF OPERATIONS UNAUDITED
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003
- -----------------------------------------------------------------------------------
INVESTMENT INCOME
- -----------------------------------------------------------------------------------
Interest $ 76,296,113
- -----------------------------------------------------------------------------------
Dividends 719,475
- -----------------------------------------------------------------------------------
Portfolio lending fees 157,119
-------------
Total investment income 77,172,707
- -----------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------
Management fees 5,255,213
- -----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,369,769
Class B 1,784,463
Class C 814,008
Class N 22,108
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 869,718
Class B 302,110
Class C 134,484
Class N 10,831
Class Y 139,874
- -----------------------------------------------------------------------------------
Shareholder reports:
Class A 59,261
Class B 18,045
Class C 8,331
Class N 1,123
Class Y 410
- -----------------------------------------------------------------------------------
Custodian fees and expenses 31,035
- -----------------------------------------------------------------------------------
Trustees' compensation 29,649
- -----------------------------------------------------------------------------------
Other 19,933
-------------
Total expenses 10,870,365
Less reduction to custodian expenses (5,905)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class A (14,004)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class B (4,340)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class C (1,378)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class N (240)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class Y (41,704)
-------------
Net expenses 10,802,794
- -----------------------------------------------------------------------------------
NET INVESTMENT INCOME 66,369,913
- -----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -----------------------------------------------------------------------------------
Net realized loss on:
Investments (12,438,916)
Closing of futures contracts (18,388)
Foreign currency transactions (119,326)
-------------
Net realized loss (12,576,630)
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 88,429,909
Translation of assets and liabilities denominated in
foreign currencies 2,209,744
Futures contracts 10,428
-------------
Net change in unrealized appreciation (depreciation) 90,650,081
- -----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $144,443,364
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER HIGH YIELD FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
(UNAUDITED) 2003
- -------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------
Net investment income $ 66,369,913 $ 132,671,921
- -------------------------------------------------------------------------------------
Net realized loss (12,576,630) (163,255,101)
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 90,650,081 268,800,841
-------------------------------
Net increase in net assets resulting from operations 144,443,364 238,217,661
- -------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------
Dividends from net investment income:
Class A (43,144,693) (75,259,993)
Class B (12,219,902) (24,005,931)
Class C (5,519,846) (8,842,615)
Class N (319,255) (354,824)
Class Y (2,137,361) (3,503,240)
- -------------------------------------------------------------------------------------
Tax return of capital distribution:
Class A -- (10,312,510)
Class B -- (3,545,582)
Class C -- (1,335,631)
Class N -- (53,283)
Class Y -- (476,622)
- -------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 42,253,036 215,493,585
Class B (20,970,033) 13,616,121
Class C 11,717,268 44,034,511
Class N 3,610,929 5,191,070
Class Y 366,215 12,011,100
- -------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------
Total increase 118,079,722 400,873,817
- -------------------------------------------------------------------------------------
Beginning of period 1,746,142,371 1,345,268,554
-------------------------------
End of period (including accumulated net investment
loss of $5,169,613 and $8,198,469, respectively) $1,864,222,093 $1,746,142,371
===============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $9.15 $8.62 $10.20 $11.89 $13.06 $14.44
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .37 .84 .92 1.18 1.26 1.26
Net realized and unrealized gain (loss) .43 .47 (1.44) (1.59) (1.18) (1.39)
--------------------------------------------------------------------
Total from investment operations .80 1.31 (.52) (.41) .08 (.13)
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.35) (.69) (1.01) (1.28) (1.25) (1.25)
Tax return of capital distribution -- (.09) (.05) -- -- --
--------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (.35) (.78) (1.06) (1.28) (1.25) (1.25)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.60 $9.15 $8.62 $10.20 $11.89 $13.06
====================================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.94% 16.38% (5.47)% (3.69)% 0.71% (0.71)%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,246,972 $1,150,055 $858,834 $ 962,017 $1,065,220 $1,027,730
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,137,687 $ 934,227 $948,097 $1,038,442 $1,125,834 $1,198,756
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.90% 9.54% 9.68% 10.66% 10.12% 9.40%
Total expenses 1.02% 3,4 1.07% 3 1.10% 3 1.00% 3 1.02% 3 0.99% 3
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 68% 47% 33% 24% 43%
<FN>
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%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS CONTINUED
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $9.03 $8.51 $10.09 $11.77 $12.95 $14.33
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 .74 .84 1.10 1.15 1.14
Net realized and unrealized gain (loss) .43 .49 (1.43) (1.58) (1.18) (1.38)
-----------------------------------------------------------------
Total from investment operations .75 1.23 (.59) (.48) (.03) (.24)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distribution to shareholders:
Dividends from net investment income (.32) (.62) (.94) (1.20) (1.15) (1.14)
Tax return of capital distribution -- (.09) (.05) -- -- --
-----------------------------------------------------------------
Total dividends and/or
distributions to shareholders (.32) (.71) (.99) (1.20) (1.15) (1.14)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.46 $9.03 $ 8.51 $10.09 $11.77 $12.95
=================================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.42% 15.60% (6.23)% (4.37)% (0.13)% (1.48)%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $367,899 $372,947 $338,654 $386,309 $453,375 $580,468
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $353,965 $321,200 $366,869 $414,648 $509,815 $544,925
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.13% 8.81% 8.93% 9.91% 9.35% 8.61%
Total expenses 1.80% 3,4 1.84% 3 1.86% 3 1.76% 3 1.79% 3 1.78% 3
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 68% 47% 33% 24% 43%
<FN>
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%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER HIGH YIELD FUND
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $9.13 $8.60 $10.18 $11.87 $13.04 $14.42
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .33 .78 .86 1.11 1.16 1.15
Net realized and unrealized gain (loss) .43 .46 (1.45) (1.60) (1.18) (1.39)
-------------------------------------------------------------
Total from investment operations .76 1.24 (.59) (.49) (.02) (.24)
- ------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.31) (.62) (.94) (1.20) (1.15) (1.14)
Tax return of capital distribution -- (.09) (.05) -- -- --
-------------------------------------------------------------
Total dividends and/or
distributions to shareholders (.31) (.71) (.99) (1.20) (1.15) (1.14)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.58 $9.13 $8.60 $10.18 $11.87 $13.04
=============================================================
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.54% 15.55% (6.08)% (4.43)% (0.06)% (1.49)%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $179,849 $160,713 $106,884 $90,603 $82,204 $93,607
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $161,583 $120,997 $104,882 $83,776 $87,141 $79,889
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.13% 8.78% 8.75% 9.90% 9.35% 8.60%
Total expenses 1.80% 3,4 1.83% 3 1.86% 3 1.76% 3 1.79% 3 1.78% 3
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 68% 47% 33% 24% 43%
<FN>
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%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS CONTINUED
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS N (UNAUDITED) 2003 2002 2001 1
- ------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------
Net asset value, beginning of period $9.17 $8.63 $10.20 $11.33
- ------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 .80 .96 .41
Net realized and unrealized gain (loss) .46 .49 (1.48) (1.13)
-------------------------------------
Total from investment operations .78 1.29 (.52) (.72)
- ------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.33) (.66) (1.00) (.41)
Tax return of capital distribution -- (.09) (.05) --
-------------------------------------
Total dividends and/or distributions
to shareholders (.33) (.75) (1.05) (.41)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $9.62 $9.17 $8.63 $10.20
=====================================
- ------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.73% 16.08% (5.53)% (6.43)%
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $12,320 $8,324 $2,396 $146
- ------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 8,793 $4,827 $ 799 $ 46
- ------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 7.56% 9.14% 8.41% 11.47%
Total expenses 1.39% 4,5 1.41% 4 1.35% 4 1.04% 4
- ------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 68% 47% 33%
<FN>
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, 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%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER HIGH YIELD FUND
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS Y (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $9.09 $8.56 $10.14 $11.82 $13.02 $14.42
- ------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .37 .86 .90 1.20 1.27 1.28
Net realized and unrealized gain (loss) .42 .45 (1.41) (1.59) (1.18) (1.39)
----------------------------------------------------
Total from investment operations .79 1.31 (.51) (.39) .09 (.11)
- ------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.35) (.69) (1.02) (1.29) (1.29) (1.29)
Tax return of capital distribution -- (.09) (.05) -- -- --
----------------------------------------------------
Total dividends and/or
distributions to shareholders (.35) (.78) (1.07) (1.29) (1.29) (1.29)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $9.53 $9.09 $ 8.56 $10.14 $11.82 $13.02
====================================================
- ------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.92% 16.51% (5.37)% (3.57)% 0.85% (0.54)%
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $57,182 $54,102 $38,500 $60,244 $54,117 $52,993
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $55,573 $43,178 $44,583 $56,669 $54,022 $34,043
- ------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.95% 9.63% 9.88% 10.72% 10.30% 9.73%
Total expenses 1.12% 1.34% 1.01% 0.94% 0.86% 0.76%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.97% 0.98% 0.98% N/A 3 N/A 3 N/A 3
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 68% 47% 33% 24% 43%
<FN>
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%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. 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 Fund assesses a 2% fee on the
proceeds of fund shares that are redeemed (either by selling or exchanging to
another Oppenheimer fund) within 30 days of their purchase. The fee, which is
retained by the Fund, is accounted for as an addition to paid-in-capital.
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. Securities whose values have been
materially affected by what the Manager identifies as a significant event
occurring before the Fund's assets are valued but after the close of their
respective foreign exchanges will be fair valued. 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).
40 | OPPENHEIMER HIGH YIELD FUND
- --------------------------------------------------------------------------------
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 December 31, 2003, the market
value of these securities comprised 11% of the Fund's net assets, and resulted
in unrealized gains of $10,359,095.
- --------------------------------------------------------------------------------
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 December 31, 2003, securities with an
aggregate market value of $48,489,546, representing 2.60% 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.
- --------------------------------------------------------------------------------
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.
41 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
As of December 31, 2003, the Fund had available for federal income tax
purposes an estimated unused capital loss carryforward of $604,992,792 expiring
by 2012. This estimated capital loss carryforward represents carryforward as of
the end of the last fiscal year, increased for losses deferred under tax
accounting rules to the current fiscal year and is increased or decreased by
capital losses or gains realized in the first six months of the current fiscal
year.
As of June 30, 2003, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
----------------------
2004 $ 25,763,959
2007 30,649,297
2008 35,734,504
2009 57,513,604
2010 101,344,550
2011 284,056,063
------------
Total $535,061,977
============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a deferred
compensation plan for independent trustees that enables trustees to elect to
defer receipt of all or a portion of the annual compensation they are entitled
to receive from the Fund. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of the Fund or are
invested in other Oppenheimer funds selected by the Trustee. Deferral of
trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net investment
income per share. Amounts will be deferred until distributed in accordance to
the Plan.
- --------------------------------------------------------------------------------
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, if applicable,
represents earnings on cash balances maintained by the Fund.
42 | OPPENHEIMER HIGH YIELD 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.
- --------------------------------------------------------------------------------
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:
SIX MONTHS ENDED DECEMBER 31, 2003 YEAR ENDED JUNE 30, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
CLASS A
Sold 41,909,408 $384,615,267 87,336,667 $ 736,289,514
Dividends and/or
distributions reinvested 3,171,249 29,484,423 6,545,577 55,293,487
Redeemed (40,866,191) (371,846,654) (67,886,608) (576,089,416)
---------------------------------------------------------
Net increase 4,214,466 $ 42,253,036 25,995,636 $ 215,493,585
=========================================================
- ------------------------------------------------------------------------------------
CLASS B
Sold 7,182,948 $ 65,417,698 15,654,941 $ 130,451,578
Dividends and/or
distributions reinvested 738,742 6,760,483 1,761,918 14,661,070
Redeemed (10,363,604) (93,148,214) (15,888,264) (131,496,527)
---------------------------------------------------------
Net increase (decrease) (2,441,914) $(20,970,033) 1,528,595 $ 13,616,121
=========================================================
- ------------------------------------------------------------------------------------
CLASS C
Sold 5,661,997 $ 52,216,388 9,967,771 $ 84,476,514
Dividends and/or
distributions reinvested 392,463 3,640,806 746,825 6,304,053
Redeemed (4,878,647) (44,139,926) (5,541,975) (46,746,056)
---------------------------------------------------------
Net increase 1,175,813 $ 11,717,268 5,172,621 $ 44,034,511
=========================================================
- ------------------------------------------------------------------------------------
CLASS N
Sold 888,226 $ 8,268,986 779,085 $ 6,484,742
Dividends and/or
distributions reinvested 31,932 298,152 45,571 390,759
Redeemed (547,319) (4,956,209) (194,820) (1,684,431)
---------------------------------------------------------
Net increase 372,839 $ 3,610,929 629,836 $ 5,191,070
=========================================================
- ------------------------------------------------------------------------------------
CLASS Y
Sold 1,877,358 $ 17,226,409 4,098,729 $ 34,534,730
Dividends and/or
distributions reinvested 231,811 2,137,360 474,376 3,979,861
Redeemed (2,062,771) (18,997,554) (3,119,654) (26,503,491)
---------------------------------------------------------
Net increase 46,398 $ 366,215 1,453,451 $ 12,011,100
=========================================================
43 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended December 31, 2003, were
$502,126,534 and $473,797,902, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for 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 per account fee. For the six months ended December 31, 2003,
the Fund paid $1,382,275 to OFS for services to the Fund.
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 Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
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. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
customers who hold Class A shares. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
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 to compensate the Distributor for its services in connection with the
distribution of these shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-
44 | OPPENHEIMER HIGH YIELD FUND
based sales charge of 0.75% per year on Class B shares and on Class C shares
and 0.25% per year on Class N shares. The Distributor also receives a service
fee of 0.25% per year under each plan. If either the Class B, Class C or Class
N plan is terminated by the Fund or by the shareholders of a class, the Board
of Trustees and its independent trustees must determine whether the Distributor
shall be entitled to payment from the Fund of all or a portion of the service
fee and/or asset-based sales charge in respect to shares sold prior to the
effective date of such termination. The Distributor's aggregate uncompensated
expenses under the plan at December 31, 2003 for Class B, Class C and Class N
shares was $15,310,230, $3,457,587 and $145,048, respectively. Fees incurred by
the Fund under the plans are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of fund shares prior to investment or from redemption
proceeds prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
SIX MONTHS ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------------------
December 31, 2003 $294,847 $193,881 $499,182 $10,641 $11,287
- --------------------------------------------------------------------------------
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.
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 gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of December 31, 2003, the Fund had no outstanding foreign currency
contracts.
45 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 December 31, 2003, the Fund had outstanding futures contracts as follows:
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION DATE CONTRACTS DECEMBER 31, 2003 APPRECIATION
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CONTRACTS TO PURCHASE
U.S. Treasury Nts., 5 yr. 3/22/04 17 $1,897,625 $10,428
46 | OPPENHEIMER HIGH YIELD FUND
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7. ILLIQUID SECURITIES
As of December 31, 2003, investments in securities included issues that are
illiquid. A security may 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 securities. The
aggregate value of illiquid securities subject to this limitation as of
December 31, 2003 was $162,001,374, which represents 8.69% of the Fund's net
assets.
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8. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income. In return, the Fund receives collateral in the form of US
Treasury obligations or cash, against the loaned securities and maintains
collateral in an amount not less than 100% of the market value of the loaned
securities during the period of the loan. The market value of the loaned
securities is determined at the close of business of the funds and any
additional required collateral is delivered to the Fund on the next business
day. If the borrower defaults on its obligation to return the securities loaned
because of insolvency or other reasons, the Fund could experience delays and
cost in recovering the securities loaned or in gaining access to the
collateral. Cash collateral is invested in cash equivalents. As of December 31,
2003, the Fund had on loan securities valued at approximately $6,727,000. Cash
of $6,807,504 was received as collateral for the loans, and has been invested
in approved instruments.
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9. 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 (the SEC) 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. The
SEC's order requires the Fund's Board of Trustees to adopt operating policies
and procedures to administer interfund borrowing and lending. 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 six
months ended or at December 31, 2003.
47 | OPPENHEIMER HIGH YIELD FUND
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES UNAUDITED
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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.
48 | OPPENHEIMER HIGH YIELD FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Trust has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a
member of the Board's Audit Committee, possess the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit
committee financial experts," and has designated Messrs. Cameron and Bowen as
the Audit Committee's financial experts. Messrs. Cameron and Bowen are
"independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
Item 9. Submission of Matters to a Vote of Security Holders
Not applicable for fiscal periods ending December 31, 2003.
ITEM 10. 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 December 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to provide reasonable
assurances 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 over financial reporting that occurred during the registrant's
last fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)