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
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Date of reporting period: July 1, 2003 - June 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED JUNE 30, 2004, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. The Fund performed well during the
period. Buoyed by cash flow and revenue growth in an expanding economy,
high-yield bonds were one of the highest-returning sectors of the bond market in
the twelve months ended June 30, 2004. Late in 2003, we increased the Fund's
investment in higher-yielding, shorter-maturity debentures, an area of the
market that experienced smaller price declines once yields began to rise in
April and May 2004.
During the latter months of the period, the rapid pace of economic
expansion fostered concerns about higher inflation and what was viewed as a
likely result: higher interest rates, which generally lead to lower bond prices.
Therefore, as bond investors anticipated an increase in rates by the Fed, bond
yields rose and prices fell. During this market environment, higher-quality,
lower-coupon and longer-maturity bonds lost the most ground as this sector of
the bond market is very sensitive to interest rate movements. However, the
high-yield sector, which is by and large more responsive to corporate profits
and creditworthiness than to interest rates, declined to a lesser degree. This
was especially true to the lowest echelon of the high-yield market (e.g. bonds
rated CCC). And the focus on credit fundamentals grew even more apparent in June
when it became clear that the Fed would continue on a "measured" pace of
interest rate hikes.
The Fund benefited from this investing environment due to its exposure to
higher-yielding, shorter maturity bonds and from our long-term emphasis on a few
sectors of the market. Maintaining our emphasis on wireless communications and
cable companies added to the Fund's performance. Furthermore, our recent
investments in economically sensitive industries (e.g., chemicals, metals, and
industrials), along with our avoidance of underperforming industries like
airlines benefited the Fund. Our investments in two companies that build and
operate towers for wireless communications antennas contributed to performance
primarily because of their success in de-leveraging their balance sheets.
Conversely, we were disappointed by results for Calpine Corporation, a
California-based electric power company, and a cellular service operator
servicing primarily suburban and rural markets. Calpine reported
weaker-than-anticipated operating fundamentals and earnings. In contrast, when
the cellular service operator cited lower cash flow and roaming revenue, the
market's reaction was decisively negative, and we viewed the sudden price drop
as a buying opportunity.
9 | OPPENHEIMER HIGH YIELD FUND
FUND PERFORMANCE DISCUSSION
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COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until June 30, 2004. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from the inception of the Class on November 1, 1995. In
the case of Class N shares, performance is measured from inception of the Class
on March 1, 2001. In the case of Class Y shares, performance is measured from
inception of the class on October 15, 1997. The Fund's performance reflects the
deduction of the maximum initial sales charge on Class A shares, the applicable
contingent deferred sales charge on Class B, Class C and Class N shares, and
reinvestments of all dividends and capital gains distributions. Past performance
cannot guarantee future results.
The Fund's performance is compared to the performance of the Merrill Lynch
High Yield Master Index, an unmanaged index of below investment grade securities
of U.S. corporate debt issuers and the Lehman Brothers Credit Index, an index of
non-convertible U.S. investment grade corporate bonds. Index performance
reflects the reinvestment of income but does not consider the effect of
transaction costs, and none of the data in the graphs shows the effect of taxes.
The Fund's performance reflects the effects of the Fund's business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the investments in the index.
10 | OPPENHEIMER HIGH YIELD FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer High Yield Fund (Class A)
Merrill Lynch High Yield Master Index
Lehman Brothers Credit Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Merrill Lynch High Lehman Brothers
Date In Fund Yield Master Index Credit Index
- -----------------------------------------------------------------------------
06/30/94 9,525 10,000 10,000
09/30/94 9,602 10,136 10,073
12/31/94 9,430 10,188 10,116
03/31/95 9,732 10,802 10,715
06/30/95 10,200 11,488 11,512
09/30/95 10,502 11,823 11,784
12/31/95 10,851 12,216 12,367
03/31/96 11,239 12,394 12,047
06/30/96 11,449 12,564 12,101
09/30/96 11,957 13,054 12,344
12/31/96 12,398 13,568 12,773
03/31/97 12,389 13,710 12,644
06/30/97 12,950 14,361 13,165
09/30/97 13,615 14,923 13,681
12/31/97 13,877 15,308 14,080
03/31/98 14,482 15,735 14,295
06/30/98 14,548 15,998 14,663
09/30/98 13,472 15,426 15,195
12/31/98 13,891 15,869 15,287
03/31/99 14,414 16,041 15,178
06/30/99 14,445 16,148 14,941
09/30/99 14,256 15,946 14,983
12/31/99 14,469 16,118 14,988
03/31/00 14,279 15,828 15,202
06/30/00 14,548 15,927 15,389
09/30/00 14,622 16,143 15,862
12/31/00 13,907 15,507 16,395
03/31/01 14,511 16,471 17,096
06/30/01 14,011 16,262 17,278
09/30/01 13,044 15,605 17,940
12/31/01 13,899 16,469 18,100
03/31/02 13,892 16,792 18,053
06/30/02 13,244 15,760 18,575
09/30/02 12,698 15,263 19,408
12/31/02 13,290 16,281 20,006
03/31/03 14,096 17,404 20,486
06/30/03 15,414 19,088 21,468
09/30/03 15,831 19,570 21,437
12/31/03 16,792 20,714 21,544
03/31/04 17,090 21,176 22,249
06/30/04 17,093 20,990 21,488
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
6/30/04
1-Year 5-Year 10-Year Inception Date
- ------ ------ ------- --------------
5.63% 2.42% 5.51% 7/28/78
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT www.oppenheimerfunds.com,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE
"10-YEAR" RETURN FOR CLASS B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 16 FOR FURTHER
INFORMATION.
11 | OPPENHEIMER HIGH YIELD FUND
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer High Yield Fund (Class B)
Merrill Lynch High Yield Master Index
Lehman Brothers Credit Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Merrill Lynch High Lehman Brothers
Date In Fund Yield Master Index Credit Index
- -----------------------------------------------------------------------------
06/30/94 10,000 10,000 10,000
09/30/94 10,061 10,136 10,073
12/31/94 9,861 10,188 10,116
03/31/95 10,158 10,802 10,715
06/30/95 10,621 11,488 11,512
09/30/95 10,907 11,823 11,784
12/31/95 11,251 12,216 12,367
03/31/96 11,634 12,394 12,047
06/30/96 11,831 12,564 12,101
09/30/96 12,327 13,054 12,344
12/31/96 12,760 13,568 12,773
03/31/97 12,727 13,710 12,644
06/30/97 13,272 14,361 13,165
09/30/97 13,923 14,923 13,681
12/31/97 14,165 15,308 14,080
03/31/98 14,750 15,735 14,295
06/30/98 14,799 15,998 14,663
09/30/98 13,668 15,426 15,195
12/31/98 14,069 15,869 15,287
03/31/99 14,565 16,041 15,178
06/30/99 14,579 16,148 14,941
09/30/99 14,360 15,946 14,983
12/31/99 14,537 16,118 14,988
03/31/00 14,316 15,828 15,202
06/30/00 14,579 15,927 15,389
09/30/00 14,654 16,143 15,862
12/31/00 13,937 15,507 16,395
03/31/01 14,542 16,471 17,096
06/30/01 14,041 16,262 17,278
09/30/01 13,072 15,605 17,940
12/31/01 13,929 16,469 18,100
03/31/02 13,922 16,792 18,053
06/30/02 13,273 15,760 18,575
09/30/02 12,726 15,263 19,408
12/31/02 13,319 16,281 20,006
03/31/03 14,126 17,404 20,486
06/30/03 15,448 19,088 21,468
09/30/03 15,866 19,570 21,437
12/31/03 16,829 20,714 21,544
03/31/04 17,128 21,176 22,249
06/30/04 17,131 20,990 21,488
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
6/30/04
1-Year 5-Year 10-Year Inception Date
- ------ ------ ------- --------------
4.86% 2.35% 5.53% 5/3/93
12 | OPPENHEIMER HIGH YIELD FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer High Yield Fund (Class C)
Merrill Lynch High Yield Master Index
Lehman Brothers Credit Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Merrill Lynch High Lehman Brothers
Date In Fund Yield Master Index Credit Index
- -----------------------------------------------------------------------------
11/01/95 10,000 10,000 10,000
12/31/95 10,218 10,260 10,359
03/31/96 10,561 10,409 10,092
06/30/96 10,736 10,552 10,137
09/30/96 11,182 10,964 10,340
12/31/96 11,580 11,395 10,700
03/31/97 11,549 11,514 10,592
06/30/97 12,048 12,061 11,028
09/30/97 12,627 12,533 11,460
12/31/97 12,854 12,856 11,795
03/31/98 13,390 13,214 11,975
06/30/98 13,424 13,436 12,283
09/30/98 12,405 12,955 12,729
12/31/98 12,766 13,327 12,806
03/31/99 13,222 13,471 12,715
06/30/99 13,224 13,562 12,516
09/30/99 13,026 13,392 12,551
12/31/99 13,196 13,537 12,555
03/31/00 12,996 13,293 12,735
06/30/00 13,217 13,376 12,892
09/30/00 13,260 13,557 13,287
12/31/00 12,585 13,023 13,734
03/31/01 13,108 13,833 14,321
06/30/01 12,632 13,657 14,473
09/30/01 11,736 13,106 15,028
12/31/01 12,483 13,832 15,163
03/31/02 12,468 14,102 15,123
06/30/02 11,864 13,236 15,560
09/30/02 11,353 12,818 16,258
12/31/02 11,845 13,673 16,759
03/31/03 12,542 14,617 17,161
06/30/03 13,692 16,030 17,984
09/30/03 14,036 16,436 17,958
12/31/03 14,862 17,396 18,047
03/31/04 15,082 17,785 18,638
06/30/04 15,056 17,628 18,000
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
6/30/04
1-Year 5-Year Since Inception Inception Date
- ------ ------ --------------- --------------
8.96% 2.63% 4.84% 11/1/95
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE
"10-YEAR" RETURN FOR CLASS B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 16 FOR FURTHER
INFORMATION.
13 | OPPENHEIMER HIGH YIELD FUND
FUND PERFORMANCE DISCUSSION
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CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer High Yield Fund (Class N)
Merrill Lynch High Yield Master Index
Lehman Brothers Credit Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Merrill Lynch High Lehman Brothers
Date In Fund Yield Master Index Credit Index
- -----------------------------------------------------------------------------
03/01/01 10,000 10,000 10,000
03/31/01 9,682 9,868 10,062
06/30/01 9,357 9,743 10,169
09/30/01 8,711 9,349 10,559
12/31/01 9,278 9,867 10,653
03/31/02 9,278 10,060 10,625
06/30/02 8,840 9,442 10,932
09/30/02 8,471 9,144 11,423
12/31/02 8,864 9,754 11,775
03/31/03 9,394 10,427 12,057
06/30/03 10,262 11,436 12,635
09/30/03 10,527 11,725 12,617
12/31/03 11,157 12,410 12,680
03/31/04 11,334 12,687 13,095
06/30/04 11,336 12,575 12,647
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
6/30/04
1-Year Since Inception Inception Date
- ------ --------------- --------------
9.47% 3.84% 3/1/01
14 | OPPENHEIMER HIGH YIELD FUND
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer High Yield Fund (Class Y)
Merrill Lynch High Yield Master Index
Lehman Brothers Credit Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Value of Investment Merrill Lynch High Lehman Brothers
Date In Fund Yield Master Index Credit Index
- ----------------------------------------------------------------------------
10/15/97 10,000 10,000 10,000
12/31/97 10,078 10,258 10,292
03/31/98 10,518 10,544 10,449
06/30/98 10,581 10,721 10,718
09/30/98 9,798 10,337 11,107
12/31/98 10,111 10,634 11,174
03/31/99 10,493 10,749 11,095
06/30/99 10,524 10,821 10,921
09/30/99 10,387 10,686 10,952
12/31/99 10,545 10,801 10,956
03/31/00 10,407 10,606 11,112
06/30/00 10,614 10,673 11,249
09/30/00 10,679 10,817 11,594
12/31/00 10,145 10,392 11,984
03/31/01 10,592 11,037 12,496
06/30/01 10,235 10,897 12,629
09/30/01 9,529 10,457 13,113
12/31/01 10,151 11,036 13,231
03/31/02 10,160 11,252 13,196
06/30/02 9,686 10,561 13,578
09/30/02 9,287 10,228 14,187
12/31/02 9,715 10,910 14,624
03/31/03 10,311 11,663 14,974
06/30/03 11,284 12,791 15,692
09/30/03 11,580 13,114 15,670
12/31/03 12,290 13,880 15,748
03/31/04 12,498 14,191 16,264
06/30/04 12,503 14,066 15,707
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES WITH SALES CHARGE OF THE FUND AT
6/30/04
1-Year 5-Year Since Inception Inception Date
- ------ ------ --------------- --------------
10.80% 3.51% 3.39% 10/15/97
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE
"10-YEAR" RETURN FOR CLASS B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 16 FOR FURTHER
INFORMATION.
15 | OPPENHEIMER HIGH YIELD FUND
NOTES
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TOTAL RETURNS AND THE ENDING ACCOUNT VALUES IN THE GRAPHS INCLUDE CHANGES IN
SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS IN A
HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN. THE FUND'S TOTAL RETURNS SHOWN DO
NOT REFLECT THE DEDUCTION OF INCOME TAXES ON AN INDIVIDUAL'S INVESTMENT. TAXES
MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON INCOME OR GAINS PAID BY THE FUND OR
ANY GAINS YOU MAY REALIZE IF YOU SELL YOUR SHARES.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 7/28/78. Class A
returns include the current maximum initial sales charge of 4.75%.
CLASS B shares of the Fund were first publicly offered on 5/3/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "since inception" return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 10/15/97. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
16 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS June 30,2004
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--0.0%
- ----------------------------------------------------------------------------------------------
Goldman Sachs Asset Management CBO Ltd., Sub. Collateralized
Bond Obligations, Series 1A, Cl. D, 12.54%, 6/13/11 1 (Cost
$2,052,673) $ 2,550,778 $ 357,109
- ----------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS--0.2%
- ----------------------------------------------------------------------------------------------
United Mexican States Bonds, Series M4C, 14.50%, 5/12/05 2
[MXN] (Cost $4,093,341) 39,735,700 3,628,222
- ----------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS--0.0%
- ----------------------------------------------------------------------------------------------
Telergy, Inc., Sr. Sec. Credit Facilities Term Loan
Participation Nts.,
Tranche A, 1/1/02 1,3,4 (Cost $3,864,760) 3,945,448 --
- ----------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--85.9%
- ----------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--23.9%
- ----------------------------------------------------------------------------------------------
AUTO COMPONENTS--2.0%
Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts.,
Series B, 2/15/10 1,500,000 1,530,000
- ----------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 10.75% Sr. Nts.,
12/31/11 1,697,000 1,713,970
- ----------------------------------------------------------------------------------------------
Dana Corp.:
9% Unsec. Nts., 8/15/11 1,770,000 2,079,750
10.125% Nts., 3/15/10 1,800,000 2,047,500
- ----------------------------------------------------------------------------------------------
Dura Operating Corp.:
8.625% Sr. Nts., Series B, 4/15/12 3,500,000 3,587,500
9% Sr. Sub. Nts., Series B, 5/1/09 [EUR] 400,000 467,194
9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 600,000 591,000
- ----------------------------------------------------------------------------------------------
Eagle-Picher, Inc., 9.75% Sr. Nts., 9/1/13 3,350,000 3,618,000
- ----------------------------------------------------------------------------------------------
Keystone Automotive Operations, Inc., 9.75% Sr. Sub.
Nts., 11/1/13 5 900,000 967,500
- ----------------------------------------------------------------------------------------------
Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 2,800,000 3,192,580
- ----------------------------------------------------------------------------------------------
Metaldyne Corp.:
10% Sr. Nts., 11/1/13 5 1,500,000 1,477,500
11% Sr. Sub. Nts., 6/15/12 2,150,000 1,838,250
- ----------------------------------------------------------------------------------------------
Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 4,250,000 5,025,625
- ----------------------------------------------------------------------------------------------
Tenneco Automotive, Inc., 10.25% Sr. Sec. Nts.,
Series B, 7/15/13 2,300,000 2,610,500
- ----------------------------------------------------------------------------------------------
United Components, Inc., 9.375% Sr. Sub. Nts.,
6/15/13 1,300,000 1,332,500
---------------
32,079,369
- ----------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--7.2%
American Casino & Entertainment, 7.85% Sr. Sec.
Nts., 2/1/12 5 1,750,000 1,785,000
- ----------------------------------------------------------------------------------------------
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 1 3,080,000 2,787,400
- ----------------------------------------------------------------------------------------------
Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 1,300,000 1,446,250
- ----------------------------------------------------------------------------------------------
Boca Resorts, Inc., 9.875% Sr. Sub. Nts., 4/15/09 4,800,000 5,076,000
- ----------------------------------------------------------------------------------------------
Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 3,000,000 3,210,000
- ----------------------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50%
Promissory Nts., 8/1/1995 1,3,4 22,500 --
- ----------------------------------------------------------------------------------------------
Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub.
Nts., 4/1/09 1 2,500,000 2,637,500
17 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE Continued
Domino's, Inc., 8.25% Sr. Unsec. Sub. Nts., 7/1/11 $ 2,650,000 $ 2,822,250
- ----------------------------------------------------------------------------------------------
Gaylord Entertainment Co., 8% Sr. Nts., 11/15/13 5 1,000,000 1,018,750
- ----------------------------------------------------------------------------------------------
Hilton Hotels Corp.:
7.625% Nts., 5/15/08 1,650,000 1,786,125
7.625% Nts., 12/1/12 900,000 972,000
- ----------------------------------------------------------------------------------------------
Hollywood Park, Inc., 9.25% Sr. Unsec. Sub. Nts.,Series B,
2/15/07 2,300,000 2,369,000
- ----------------------------------------------------------------------------------------------
Intrawest Corp., 7.50% Sr. Unsec. Nts., 10/15/13 2,666,000 2,619,345
- ----------------------------------------------------------------------------------------------
Isle of Capri Casinos, Inc.:
7% Sr. Sub. Nts., 3/1/14 5 4,750,000 4,429,375
9% Sr. Sub. Nts., 3/15/12 2,200,000 2,381,500
- ----------------------------------------------------------------------------------------------
John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B,
5/15/12 3,150,000 3,433,500
- ----------------------------------------------------------------------------------------------
Mandalay Resort Group, 9.375% Sr. Sub. Nts., 2/15/10 3,500,000 3,832,500
- ----------------------------------------------------------------------------------------------
MGM Mirage, Inc.:
8.375% Sr. Unsec. Sub. Nts., 2/1/11 2,500,000 2,625,000
9.75% Sr. Unsec. Sub. Nts., 6/1/07 2,000,000 2,195,000
- ----------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority:
6.375% Sr. Sub. Nts., 7/15/09 2,200,000 2,216,500
8% Sr. Sub. Nts., 4/1/12 1,300,000 1,391,000
8.375% Sr. Sub. Nts., 7/1/11 1,000,000 1,085,000
- ----------------------------------------------------------------------------------------------
Park Place Entertainment Corp.:
7.875% Sr. Sub. Nts., 3/15/10 3,700,000 3,922,000
9.375% Sr. Unsec. Sub. Nts., 2/15/07 950,000 1,034,313
- ----------------------------------------------------------------------------------------------
Penn National Gaming, Inc.:
8.875% Sr. Sub. Nts., 3/15/10 900,000 982,125
11.125% Sr. Unsec. Sub. Nts., 3/1/08 6,000,000 6,630,000
- ----------------------------------------------------------------------------------------------
Pinnacle Entertainment, Inc., 8.25% Sr. Sub. Nts., 3/15/12 5 4,500,000 4,331,250
- ----------------------------------------------------------------------------------------------
Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 1,700,000 1,763,750
- ----------------------------------------------------------------------------------------------
River Rock Entertainment LLC, 9.75% Sr. Nts., 11/1/11 5 2,100,000 2,299,500
- ----------------------------------------------------------------------------------------------
Royal Caribbean Cruises Ltd., 8.75% Sr. Unsub. Nts., 2/2/11 2,600,000 2,892,500
- ----------------------------------------------------------------------------------------------
Six Flags, Inc.:
8.875% Sr. Nts., 2/1/10 1,600,000 1,592,000
9.625% Sr. Nts., 6/1/14 5 147,000 147,000
9.75% Sr. Nts., 4/15/13 5,100,000 5,151,000
- ----------------------------------------------------------------------------------------------
Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr. Nts.,
5/1/12 5,550,000 5,966,250
- ----------------------------------------------------------------------------------------------
Station Casinos, Inc.:
6.50% Sr. Unsec. Sub. Nts., 2/1/14 5,300,000 5,127,750
9.875% Sr. Unsec. Sub. Nts., 7/1/10 1 2,025,000 2,240,156
- ----------------------------------------------------------------------------------------------
Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub. Nts.,
8/15/11 3,200,000 3,432,000
- ----------------------------------------------------------------------------------------------
Trump Casino Holdings LLC/Trump Casino Funding, Inc.,
11.625% Sr. Sec. Nts., 3/15/10 5,347,000 5,507,410
- ----------------------------------------------------------------------------------------------
Universal City Development Partners Ltd., 11.75% Sr. Nts.,
4/1/10 2,700,000 3,138,750
- ----------------------------------------------------------------------------------------------
Vail Resorts, Inc., 6.75% Sr. Sub. Nts., 2/15/14 2,700,000 2,571,750
- ----------------------------------------------------------------------------------------------
Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11% Sec.
Nts., 6/15/10 3,300,000 3,828,000
---------------
114,676,499
18 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES--2.5%
Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 $ 3,300,000 $ 3,498,000
- ----------------------------------------------------------------------------------------------
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 2,800,000 3,013,500
- ----------------------------------------------------------------------------------------------
D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 800,000 931,000
- ----------------------------------------------------------------------------------------------
K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12 1,500,000 1,582,500
- ----------------------------------------------------------------------------------------------
KB Home:
8.625% Sr. Sub. Nts., 12/15/08 2,750,000 2,970,000
9.50% Sr. Unsec. Sub. Nts., 2/15/11 2,000,000 2,215,000
- ----------------------------------------------------------------------------------------------
Meritage Corp., 9.75% Sr. Unsec. Nts., 6/1/11 3,400,000 3,757,000
- ----------------------------------------------------------------------------------------------
Norcraft Cos. LP, 9% Sr. Sub. Nts., 11/1/11 5 1,500,000 1,590,000
- ----------------------------------------------------------------------------------------------
Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 1,000,000 870,000
- ----------------------------------------------------------------------------------------------
Sealy Mattress Co., 8.25% Sr. Sub. Nts., 6/15/14 5 2,100,000 2,121,000
- ----------------------------------------------------------------------------------------------
Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 1,200,000 1,296,000
- ----------------------------------------------------------------------------------------------
Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 1,750,000 1,907,500
- ----------------------------------------------------------------------------------------------
WCI Communities, Inc.:
9.125% Sr. Sub. Nts., 5/1/12 1,100,000 1,193,500
10.625% Sr. Unsec. Sub. Nts., 2/15/11 4,600,000 5,117,500
- ----------------------------------------------------------------------------------------------
William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 1 2,500,000 2,775,000
- ----------------------------------------------------------------------------------------------
Williams Scotsman, Inc., 9.875% Sr. Unsec. Nts., 6/1/07 4,100,000 4,089,750
---------------
38,927,250
- ----------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--0.2%
K2 Corp., 7.375% Sr. Nts., 7/1/14 5,6 1,500,000 1,533,750
- ----------------------------------------------------------------------------------------------
Remington Arms Co., Inc., 10.50% Sr. Unsec. Nts., 2/1/11 2,300,000 2,242,500
---------------
3,776,250
- ----------------------------------------------------------------------------------------------
MEDIA--10.0%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 3,4 2,000,000 1,950,000
8.375% Sr. Nts., Series B, 2/1/08 3,4 2,700,000 2,652,750
9.875% Sr. Nts., Series B, 3/1/07 3,4 2,200,000 2,189,000
10.25% Sr. Unsec. Nts., 11/1/06 3,4 1,600,000 1,592,000
10.875% Sr. Unsec. Nts., 10/1/10 3,4 1,500,000 1,522,500
- ----------------------------------------------------------------------------------------------
Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts.,
12/15/12 2,300,000 2,277,000
- ----------------------------------------------------------------------------------------------
AMC Entertainment, Inc.:
8% Sr. Sub. Nts., 3/1/14 5 1,500,000 1,440,000
9.50% Sr. Unsec. Sub. Nts., 2/1/11 7,199,000 7,522,955
- ----------------------------------------------------------------------------------------------
American Media Operations, Inc.:
8.875% Sr. Unsec. Sub. Nts., 1/15/11 3,450,000 3,355,125
10.25% Sr. Unsec. Sub. Nts., Series B, 5/1/09 450,000 469,125
- ----------------------------------------------------------------------------------------------
Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 1,100,000 1,160,500
- ----------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8% Sr. Nts., 4/15/12 5 4,500,000 4,455,000
- ----------------------------------------------------------------------------------------------
Callahan Nordrhein-Westfalen GmbH, 14.125% Sr. Nts.,
7/15/11 1,3,4 [EUR] 1,000,000 76,041
19 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
MEDIA Continued
CanWest Media, Inc., 7.625% Sr. Unsec. Sub. Nts., Series B,
4/15/13 $ 900,000 $ 929,250
- ----------------------------------------------------------------------------------------------
Carmike Cinemas, Inc., 7.50% Sr. Sub. Nts., 2/15/14 5 2,100,000 2,016,000
- ----------------------------------------------------------------------------------------------
CBD Media LLC/CBD Finance, Inc., 8.625% Sr. Sub. Nts.,
6/1/11 700,000 740,250
- ----------------------------------------------------------------------------------------------
Charter Communications Holdings II, 10.25% Sr. Unsec.
Nts., 9/15/10 5 4,550,000 4,606,875
- ----------------------------------------------------------------------------------------------
Charter Communications Holdings LLC/Charter
Communications Holdings Capital Corp.:
0%/11.75% Sr. Unsec. Sub. Disc. Nts., 5/15/11 7 10,000,000 6,525,000
8.375% Sr. Nts., Second Lien, 4/30/14 5 4,100,000 3,987,250
8.625% Sr. Unsec. Nts., 4/1/09 8,900,000 7,142,250
9.92% Sr. Unsec. Disc. Nts., 4/1/11 9,900,000 7,870,500
10% Sr. Nts., 4/1/09 1,000,000 840,000
10% Sr. Unsec. Sub. Nts., 5/15/11 1,147,000 914,733
10.75% Sr. Unsec. Nts., 10/1/09 1,700,000 1,436,500
11.125% Sr. Unsec. Nts., 1/15/11 1,200,000 1,014,000
- ----------------------------------------------------------------------------------------------
Cinemark USA, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/13 1,800,000 1,973,250
- ----------------------------------------------------------------------------------------------
Cinemark, Inc., 0%/9.75% Sr. Disc. Nts., 3/15/14 5,7 5,700,000 3,747,750
- ----------------------------------------------------------------------------------------------
Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 1,500,000 1,610,625
- ----------------------------------------------------------------------------------------------
CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B,
4/1/11 2,650,000 2,669,875
- ----------------------------------------------------------------------------------------------
Diva Systems Corp., 12.625% Sr. Unsec. Disc. Nts., Series B,
3/1/08 1,3,4 2,500,000 18,750
- ----------------------------------------------------------------------------------------------
Emmis Operating Co., 6.875% Sr. Sub. Nts., 5/15/12 5 2,700,000 2,659,500
- ----------------------------------------------------------------------------------------------
Entercom Radio LLC/Entercom Capital, Inc.,
7.625% Sr. Unsec. Sub. Nts., 3/1/14 1,500,000 1,558,125
- ----------------------------------------------------------------------------------------------
Entravision Communications Corp., 8.125% Sr. Sub. 1,400,000 1,450,750
Nts., 3/15/09
- ----------------------------------------------------------------------------------------------
Granite Broadcasting Corp., 9.75% Sr. Sec. Nts., 12/1/10 6,147,000 5,747,445
- ----------------------------------------------------------------------------------------------
Gray Television, Inc., 9.25% Sr. Sub. Nts., 12/15/11 1,750,000 1,927,188
- ----------------------------------------------------------------------------------------------
Hollinger International Publishing, Inc., 9% Sr.
Unsec. Nts., 12/15/10 3,600,000 4,176,000
- ----------------------------------------------------------------------------------------------
Houghton Mifflin Co.:
8.25% Sr. Unsec. Nts., 2/1/11 2,500,000 2,512,500
9.875% Sr. Sub. Nts., 2/1/13 147,000 147,735
- ----------------------------------------------------------------------------------------------
Insight Midwest LP/Insight Capital, Inc., 9.75% Sr. Nts.,
10/1/09 350,000 371,000
- ----------------------------------------------------------------------------------------------
Kabel Deutschland GmbH, 10.625% Sr. Nts., 7/1/14 5,6 2,700,000 2,787,750
- ----------------------------------------------------------------------------------------------
Lamar Media Corp., 7.25% Sr. Unsec. Sub. Nts., 1/1/13 1,000,000 1,022,500
- ----------------------------------------------------------------------------------------------
Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 1,800,000 1,746,000
- ----------------------------------------------------------------------------------------------
LodgeNet Entertainment Corp., 9.50% Sr. Sub. Debs., 6/15/13 1,350,000 1,481,625
- ----------------------------------------------------------------------------------------------
Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts.,
1/15/13 5,547,000 5,380,590
- ----------------------------------------------------------------------------------------------
MediaNews Group, Inc.:
6.375% Sr. Sub. Nts., 4/1/14 4,700,000 4,300,500
6.875% Sr. Unsec. Sub. Nts., 10/1/13 700,000 665,000
- ----------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 400,000 500,977
- ----------------------------------------------------------------------------------------------
PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 5,100,000 5,814,000
20 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
MEDIA Continued
PRIMEDIA, Inc.:
8% Sr. Nts., 5/15/13 5 $ 4,500,000 $ 4,252,500
8.875% Sr. Unsec. Nts., 5/15/11 147,000 146,265
- ----------------------------------------------------------------------------------------------
R.H. Donnelley Financial Corp. I:
8.875% Sr. Nts., 12/15/10 5 2,600,000 2,866,500
10.875% Sr. Sub. Nts., 12/15/12 5 3,900,000 4,543,500
- ----------------------------------------------------------------------------------------------
Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B,
7/1/11 1,950,000 2,137,688
- ----------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8% Sr. Unsec. Sub. Nts., 3/15/12 6,050,000 6,216,375
8.75% Sr. Sub. Nts., 12/15/11 1,250,000 1,343,750
- ----------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub.
Nts., 11/1/09 5,000,000 5,300,000
- ----------------------------------------------------------------------------------------------
Vertis, Inc.:
9.75% Sr. Sec. Nts., 4/1/09 2,050,000 2,214,000
10.875% Sr. Unsec. Nts., Series B, 6/15/09 2,400,000 2,592,000
- ----------------------------------------------------------------------------------------------
Von Hoffmann Corp., 10.25% Sr. Unsec. Nts., 3/15/09 1,100,000 1,137,125
- ----------------------------------------------------------------------------------------------
WRC Media, Inc./Weekly Reader Corp./CompassLearning, Inc.,
12.75% Sr. Sub. Nts., 11/15/09 4,000,000 3,665,000
---------------
159,368,742
- ----------------------------------------------------------------------------------------------
SPECIALTY RETAIL--1.3%
Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 1,400,000 1,435,000
- ----------------------------------------------------------------------------------------------
Atlantic Broadband Finance LLC, 9.375% Sr. Sub. Nts.,
1/15/14 5 1,950,000 1,852,500
- ----------------------------------------------------------------------------------------------
AutoNation, Inc., 9% Sr. Unsec. Nts., 8/1/08 3,000,000 3,405,000
- ----------------------------------------------------------------------------------------------
Building Materials Corp., 8% Sr. Nts., 12/1/08 1,350,000 1,360,125
- ----------------------------------------------------------------------------------------------
CSK Auto, Inc., 7% Sr. Sub. Nts., 1/15/14 5 2,800,000 2,681,000
- ----------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 9.125% Sr. Unsec. Sub.
Nts., 5/1/08 1,000,000 1,015,000
- ----------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 6/1/12 5 2,400,000 2,502,000
- ----------------------------------------------------------------------------------------------
Hollywood Entertainment Corp., 9.625% Sr. Sub. Nts., 3/15/11 1,350,000 1,559,250
- ----------------------------------------------------------------------------------------------
Just For Feet, Inc., 11% Sr. Sub. Nts., 5/1/09 1,3,4 700,000 --
- ----------------------------------------------------------------------------------------------
Petco Animal Supplies, Inc., 10.75% Sr. Sub. Nts., 11/1/11 3,500,000 3,937,500
- ----------------------------------------------------------------------------------------------
Rent-A-Center, Inc., 7.50% Sr. Unsec. Sub. Nts., Series B,
5/1/10 1,100,000 1,133,000
---------------
20,880,375
- ----------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.7%
Broder Bros. Co., 11.25% Sr. Unsec. Nts., 10/15/10 1,300,000 1,238,250
- ----------------------------------------------------------------------------------------------
Consoltex Group, Inc., 11% Sr. Sub. Nts., 1/31/09 1,8 4,705,338 471
- ----------------------------------------------------------------------------------------------
Invista, Inc., 9.25% Sr. Nts., 5/1/12 5 3,300,000 3,333,000
- ----------------------------------------------------------------------------------------------
Levi Strauss & Co.:
7% Unsec. Nts., 11/1/06 850,000 797,938
11.625% Sr. Unsec. Nts., 1/15/08 1,200,000 1,182,000
12.25% Sr. Nts., 12/15/12 1,400,000 1,386,000
21 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS Continued
Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 5 $ 1,250,000 $ 1,325,000
- ----------------------------------------------------------------------------------------------
Russell Corp., 9.25% Sr. Nts., 5/1/10 1,500,000 1,601,250
---------------
10,863,909
- ----------------------------------------------------------------------------------------------
CONSUMER STAPLES--3.8%
- ----------------------------------------------------------------------------------------------
BEVERAGES--0.1%
Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12 2,000,000 2,140,000
- ----------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.4%
Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr.
Nts., 12/15/11 947,000 809,685
- ----------------------------------------------------------------------------------------------
Ingles Markets, Inc., 8.875% Sr. Unsec. Sub. Nts., 12/1/11 1,147,000 1,184,278
- ----------------------------------------------------------------------------------------------
Rite Aid Corp.:
8.125% Sr. Sec. Nts., 5/1/10 2,650,000 2,802,375
9.50% Sr. Sec. Nts., 2/15/11 1,600,000 1,772,000
---------------
6,568,338
- ----------------------------------------------------------------------------------------------
FOOD PRODUCTS--2.3%
American Seafoods Group LLC, 10.125% Sr. Sub. Nts., 4/15/10 3,500,000 4,200,000
- ----------------------------------------------------------------------------------------------
Burns Philp Capital Property Ltd., 9.75% Sr. Unsec. Sub.
Nts., 7/15/12 1,450,000 1,508,000
- ----------------------------------------------------------------------------------------------
Del Monte Corp.:
8.625% Sr. Sub. Nts., 12/15/12 3,300,000 3,572,250
9.25% Sr. Unsec. Sub. Nts., 5/15/11 1,450,000 1,591,375
- ----------------------------------------------------------------------------------------------
Doane Pet Care Co.:
9.75% Sr. Unsec. Sub. Nts., 5/15/07 1,900,000 1,762,250
10.75% Sr. Nts., 3/1/10 4,100,000 4,346,000
- ----------------------------------------------------------------------------------------------
Dole Food Co., Inc.:
8.625% Sr. Nts., 5/1/09 2,500,000 2,631,250
8.875% Sr. Unsec. Nts., 3/15/11 1,300,000 1,381,250
- ----------------------------------------------------------------------------------------------
Hines Nurseries, Inc., 10.25% Sr. Unsec. Sub. Nts.,
10/1/11 1 1,700,000 1,861,500
- ----------------------------------------------------------------------------------------------
Pinnacle Foods Holding Corp.:
8.25% Sr. Sub. Nts., 12/1/13 5 2,200,000 2,134,000
8.25% Sr. Sub. Nts., 12/1/13 5 900,000 873,000
- ----------------------------------------------------------------------------------------------
Smithfield Foods, Inc.:
7.625% Sr. Unsec. Sub. Nts., 2/15/08 2,240,000 2,363,200
8% Sr. Nts., Series B, 10/15/09 400,000 433,000
- ----------------------------------------------------------------------------------------------
Swift & Co., 10.125% Sr. Nts., 10/1/09 2,500,000 2,681,250
- ----------------------------------------------------------------------------------------------
Tembec Industries, Inc.:
7.75% Sr. Nts., 3/15/12 2,800,000 2,716,000
8.50% Sr. Unsec. Nts., 2/1/11 147,000 149,205
- ----------------------------------------------------------------------------------------------
United Biscuits Finance plc, 10.625% Sr. Sub. Nts., 4/15/11
[EUR] 2,000,000 2,652,297
---------------
36,855,827
22 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--0.9%
AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 $ 4,200,000 $ 4,336,500
- ----------------------------------------------------------------------------------------------
Armkel LLC/Armkel Finance, Inc., 9.50% Sr. Sub. Nts.,
8/15/09 1,900,000 2,085,250
- ----------------------------------------------------------------------------------------------
Playtex Products, Inc.:
8% Sr. Sec. Nts., 3/1/11 5 2,500,000 2,615,625
9.375% Sr. Unsec. Sub. Nts., 6/1/11 3,500,000 3,421,250
- ----------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05 1,600,000 1,800,000
- ----------------------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts.,
7/1/08 1,3,4 1,200,000 --
---------------
14,258,625
- ----------------------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.1%
Elizabeth Arden, Inc., 7.75% Sr. Sub. Nts., 1/15/14 5 1,250,000 1,278,125
- ----------------------------------------------------------------------------------------------
ENERGY--9.2%
- ----------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.8%
BRL Universal Equipment Corp., 8.875% Sr. Sec. Nts., 2/15/08 3,000,000 3,228,750
- ----------------------------------------------------------------------------------------------
Dresser, Inc., 9.375% Sr. Sub. Nts., 4/15/11 1,200,000 1,290,000
- ----------------------------------------------------------------------------------------------
Grant Prideco Escrow Corp., 9% Sr. Unsec. Nts., 12/15/09 1,500,000 1,638,750
- ----------------------------------------------------------------------------------------------
Hanover Compress Co., 8.625% Sr. Nts., 12/15/10 2,500,000 2,600,000
- ----------------------------------------------------------------------------------------------
Hanover Equipment Trust 2001A, 8.50% Sr. Sec. Nts., Series
A, 9/1/08 1,500,000 1,593,750
- ----------------------------------------------------------------------------------------------
Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts.,
8/1/08 7,000,000 7,673,750
- ----------------------------------------------------------------------------------------------
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 7,250,000 7,213,750
- ----------------------------------------------------------------------------------------------
Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 1,500,000 1,582,500
- ----------------------------------------------------------------------------------------------
Universal Compression, Inc., 7.25% Sr. Unsec. Sub. Nts.,
5/15/10 2,500,000 2,593,750
---------------
29,415,000
- ----------------------------------------------------------------------------------------------
OIL & GAS--7.4%
ANR Pipeline Co., 8.875% Sr. Nts., 3/15/10 1,400,000 1,536,500
- ----------------------------------------------------------------------------------------------
Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07 5,850,000 6,010,875
- ----------------------------------------------------------------------------------------------
Chesapeake Energy Corp.:
6.875% Sr. Unsec. Nts., 1/15/16 784,000 768,320
8.375% Sr. Unsec. Nts., 11/1/08 1,100,000 1,193,500
9% Sr. Nts., 8/15/12 3,500,000 3,955,000
- ----------------------------------------------------------------------------------------------
El Paso Corp., 7.875% Sr. Unsec. Nts., 6/15/12 2,547,000 2,298,668
- ----------------------------------------------------------------------------------------------
El Paso Energy Corp., 7.625% Nts., 7/15/11 1,600,000 1,436,000
- ----------------------------------------------------------------------------------------------
El Paso Energy Partners LP, 8.50% Sr. Unsec. Sub. Nts.,
Series B, 6/1/11 2,851,000 3,100,463
- ----------------------------------------------------------------------------------------------
El Paso Production Holding Co., 7.75% Sr. Unsec. Nts.,
6/1/13 7,850,000 7,241,625
- ----------------------------------------------------------------------------------------------
EXCO Resources, Inc., 7.25% Sr. Nts., 1/15/11 1,850,000 1,887,000
- ----------------------------------------------------------------------------------------------
Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 2,000,000 2,050,000
- ----------------------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 6,000,000 6,585,000
- ----------------------------------------------------------------------------------------------
GulfTerra Energy Partners LP:
8.50% Sr. Unsec. Sub. Nts., Series B, 6/1/10 1,079,000 1,178,808
10.625% Sr. Sub. Nts., 12/1/12 1,239,000 1,480,605
23 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
OIL & GAS Continued
Newfield Exploration Co., 8.375% Sr. Sub. Nts., 8/15/12 $ 2,850,000 $ 3,106,500
- ----------------------------------------------------------------------------------------------
Paramount Resources Ltd., 7.875% Sr. Nts., 11/1/10 2,300,000 2,208,000
- ----------------------------------------------------------------------------------------------
Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12 1,000,000 1,134,122
- ----------------------------------------------------------------------------------------------
Plains Exploration & Production Co., 7.125% Sr. Nts.,
6/15/14 5 1,700,000 1,738,250
- ----------------------------------------------------------------------------------------------
Premcor Refining Group, Inc.:
6.75% Sr. Nts., 5/1/14 3,000,000 2,985,000
9.50% Sr. Nts., 2/1/13 2,000,000 2,315,000
- ----------------------------------------------------------------------------------------------
Range Resources Corp., 7.375% Sr. Sub. Nts., 7/15/13 5 1,500,000 1,500,000
- ----------------------------------------------------------------------------------------------
Southern Natural Gas Co.:
7.35% Nts., 2/15/31 2,800,000 2,520,000
8% Sr. Unsub. Nts., 3/1/32 4,800,000 4,536,000
8.875% Sr. Nts., 3/15/10 1,800,000 1,975,500
- ----------------------------------------------------------------------------------------------
Stone Energy Corp., 8.25% Sr. Unsec. Sub. Nts., 12/15/11 3,500,000 3,666,250
- ----------------------------------------------------------------------------------------------
Teekay Shipping Corp., 8.875% Sr. Nts., 7/15/11 3,175,000 3,528,219
- ----------------------------------------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 11,550,000 11,319,000
- ----------------------------------------------------------------------------------------------
Tesoro Petroleum Corp.:
8% Sr. Sec. Nts., 4/15/08 2,300,000 2,472,500
9.625% Sr. Sub. Nts., 4/1/12 1,597,000 1,800,618
- ----------------------------------------------------------------------------------------------
Transcontinental Gas Pipe Line Corp.:
6.125% Nts., 1/15/05 1,000,000 1,020,000
8.875% Sr. Unsub. Nts., Series B, 7/15/12 1,200,000 1,362,000
- ----------------------------------------------------------------------------------------------
Westport Resources Corp., 8.25% Sr. Unsec. Sub. Nts.,
11/1/11 5,500,000 6,249,375
- ----------------------------------------------------------------------------------------------
Whiting Petroleum Corp., 7.25% Sr. Sub. Nts., 5/1/12 3,300,000 3,283,500
- ----------------------------------------------------------------------------------------------
Williams Cos., Inc. (The):
7.125% Nts., 9/1/11 7,400,000 7,548,000
8.625% Sr. Nts., 6/1/10 8,450,000 9,337,250
- ----------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.50% Nts., 12/1/08 1 800,000 841,000
---------------
117,168,448
- ----------------------------------------------------------------------------------------------
FINANCIALS--2.2%
- ----------------------------------------------------------------------------------------------
CAPITAL MARKETS--1.0%
American Color Graphics, Inc., 10% Sr. Sec. Nts., 6/15/10 1,350,000 1,211,625
- ----------------------------------------------------------------------------------------------
BCP Caylux Holdings Luxembourg SCA, 9.625% Sr. Sub. Nts.,
6/15/14 5 5,875,000 6,117,344
- ----------------------------------------------------------------------------------------------
Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 6,100,000 6,801,500
- ----------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts.,
Series B, 9/30/08 3,700,000 2,423,500
---------------
16,553,969
- ----------------------------------------------------------------------------------------------
COMMERCIAL BANKS--0.2%
ABN Amro Bank NV (NY Branch), 4% Sec. Nts., 11/5/17 1,2 2,069,459 1,614,178
- ----------------------------------------------------------------------------------------------
Bank Plus Corp., 12% Sr. Nts., 7/18/07 78,000 84,045
- ----------------------------------------------------------------------------------------------
Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12 1,700,000 1,878,500
---------------
3,576,723
24 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.1%
Global Cash Access LLC/Global Cash Finance Corp.,
8.75% Sr. Sub. Nts., 3/15/12 5 $ 1,200,000 $ 1,254,000
- ----------------------------------------------------------------------------------------------
Noteco Ltd.:
7.02% Nts., Series B, 6/30/25 2 [GBP] 197,000 298,312
7.538% Nts., Series A1, 6/30/15 2 [GBP] 233,000 416,207
---------------
1,968,519
- ----------------------------------------------------------------------------------------------
INSURANCE--0.1%
Texas Gas Transmission Corp., 7.25% Debs., 7/15/27 1,000,000 1,084,493
- ----------------------------------------------------------------------------------------------
REAL ESTATE--0.8%
Felcor Lodging LP:
9% Sr. Nts., 6/1/11 2,552,000 2,647,700
10% Sr. Unsec. Nts., 9/15/08 369,000 391,140
- ----------------------------------------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr. Nts., Series B, 8/1/08 2,932,000 3,019,960
- ----------------------------------------------------------------------------------------------
MeriStar Hospitality Corp.:
9.125% Sr. Unsec. Nts., 1/15/11 2,797,000 2,838,955
10.50% Sr. Unsec. Nts., 6/15/09 2,700,000 2,889,000
---------------
11,786,755
- ----------------------------------------------------------------------------------------------
HEALTH CARE--5.6%
- ----------------------------------------------------------------------------------------------
BIOTECHNOLOGY--0.2%
Polypore, Inc., 8.75% Sr. Sub. Nts., 5/15/12 5 3,500,000 3,666,250
- ----------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.7%
Dade Behring Holdings, Inc., 11.91% Sr. Unsec. Sub. Nts.,
10/3/10 820,429 943,493
- ----------------------------------------------------------------------------------------------
Fisher Scientific International, Inc., 8.125% Sr. Sub.
Nts., 5/1/12 1,736,000 1,866,200
- ----------------------------------------------------------------------------------------------
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) 9,10 2,800,000 2,170,000
- ----------------------------------------------------------------------------------------------
Inverness Medical Innovations, Inc., 8.75% Sr. Sub. Nts.,
2/15/12 5 1,100,000 1,130,250
- ----------------------------------------------------------------------------------------------
Sybron Dental Specialties, Inc., 8.125% Sr. Sub. Nts.,
6/15/12 1 2,200,000 2,365,000
- ----------------------------------------------------------------------------------------------
Universal Hospital Services, Inc., 10.125% Sr. Unsec. Nts.,
11/1/11 1 2,150,000 2,193,000
- ----------------------------------------------------------------------------------------------
Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub. Nts.,
8/1/11 500,000 543,750
---------------
11,211,693
- ----------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--4.4%
Alderwoods Group, Inc., 12.25% Sr. Nts., 1/2/09 3,200,000 3,552,000
- ----------------------------------------------------------------------------------------------
Alliance Imaging, Inc., 10.375% Sr. Unsec. Sub. Nts.,
4/15/11 947,000 996,718
- ----------------------------------------------------------------------------------------------
AmeriPath, Inc., 10.50% Sr. Unsec. Sub. Nts., 4/1/13 2,000,000 2,030,000
- ----------------------------------------------------------------------------------------------
Beverly Enterprises, Inc., 7.875% Sr. Sub. Nts., 6/15/14 5 2,300,000 2,274,125
- ----------------------------------------------------------------------------------------------
Extendicare Health Services, Inc.:
6.875% Sr. Sub. Nts., 5/1/14 5 1,300,000 1,228,500
9.50% Sr. Unsec. Sub. Nts., 7/1/10 1,900,000 2,118,500
- ----------------------------------------------------------------------------------------------
Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08 2,800,000 2,961,000
25 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Genesis HealthCare Corp., 8% Sr. Sub. Nts., 10/15/13 5 $ 1,300,000 $ 1,332,500
- ----------------------------------------------------------------------------------------------
HCA, Inc.:
7.875% Sr. Nts., 2/1/11 1,000,000 1,098,192
8.75% Sr. Nts., 9/1/10 2,000,000 2,286,490
- ----------------------------------------------------------------------------------------------
HealthSouth Corp.:
7.625% Nts., 6/1/12 2,000,000 1,895,000
10.75% Sr. Unsec. Sub. Nts., 10/1/08 147,000 152,145
- ----------------------------------------------------------------------------------------------
InSight Health Services Corp., 9.875% Sr. Sub. Nts., 11/1/11 2,000,000 2,150,000
- ----------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 9.375% Sr. Unsec. Nts.,
Series A, 11/15/08 4,435,654 4,779,417
- ----------------------------------------------------------------------------------------------
Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts., Series B,
8/15/12 3,200,000 3,648,000
- ----------------------------------------------------------------------------------------------
National Nephrology Assn., 9% Sr. Sub. Nts., 11/1/11 5 650,000 747,500
- ----------------------------------------------------------------------------------------------
NDCHealth Corp., 10.50% Sr. Unsec. Sub. Nts., 12/1/12 4,100,000 4,540,750
- ----------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub.
Nts., 6/1/09 2,207,000 2,527,015
- ----------------------------------------------------------------------------------------------
Quintiles Transnational Corp., 10% Sr. Sub. Nts., 10/1/13 1,900,000 1,890,500
- ----------------------------------------------------------------------------------------------
Rotech Healthcare, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/12 2,400,000 2,574,000
- ----------------------------------------------------------------------------------------------
Stewart Enterprises, Inc., 10.75% Sr. Unsec. Sub. Nts.,
7/1/08 5,400,000 6,027,750
- ----------------------------------------------------------------------------------------------
Tenet Healthcare Corp.:
6.375% Sr. Nts., 12/1/11 3,350,000 2,948,000
7.375% Nts., 2/1/13 147,000 133,770
9.875% Sr. Nts., 7/1/14 5 2,125,000 2,172,813
- ----------------------------------------------------------------------------------------------
Triad Hospitals, Inc.:
7% Sr. Nts., 5/15/12 3,200,000 3,240,000
7% Sr. Sub. Nts., 11/15/13 5,110,000 4,880,050
- ----------------------------------------------------------------------------------------------
US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 1,000,000 1,185,000
- ----------------------------------------------------------------------------------------------
Vicar Operating, Inc., 9.875% Sr. Sub. Nts., 12/1/09 4,000,000 4,420,000
---------------
69,789,735
- ----------------------------------------------------------------------------------------------
PHARMACEUTICALS--0.3%
aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 1,400,000 1,176,000
- ----------------------------------------------------------------------------------------------
Valeant Pharmaceuticals International, Inc., 7% Sr. Nts.,
12/15/11 5 2,900,000 2,842,000
---------------
4,018,000
- ----------------------------------------------------------------------------------------------
INDUSTRIALS--10.2%
- ----------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.3%
Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts.,
5/15/11 2,400,000 2,604,000
- ----------------------------------------------------------------------------------------------
Argo-Tech Corp., 9.25% Sr. Nts., 6/1/11 5 1,800,000 1,863,000
- ----------------------------------------------------------------------------------------------
BE Aerospace, Inc.:
8% Sr. Unsec. Sub. Nts., Series B, 3/1/08 2,900,000 2,711,500
8.50% Sr. Unsec. Nts., 10/1/10 1,100,000 1,163,250
8.875% Sr. Unsec. Sub. Nts., 5/1/11 147,000 137,445
9.50% Sr. Unsec. Sub. Nts., 11/1/08 1,000,000 970,000
- ----------------------------------------------------------------------------------------------
K&F Industries, Inc., 9.625% Sr. Unsec. Sub. Nts., 12/15/10 700,000 770,875
26 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
L-3 Communications Holdings, Inc., 7.625% Sr. Sub. Nts.,
6/15/12 $ 1,200,000 $ 1,272,000
- ----------------------------------------------------------------------------------------------
Rexnord Corp., 10.125% Sr. Unsec. Sub. Nts., 12/15/12 1,900,000 2,099,500
- ----------------------------------------------------------------------------------------------
TD Funding Corp., 8.375% Sr. Sub. Nts., 7/15/11 2,800,000 2,856,000
- ----------------------------------------------------------------------------------------------
TRW Automotive, Inc.:
9.375% Sr. Nts., 2/15/13 1,517,000 1,718,003
11% Sr. Sub. Nts., 2/15/13 1,299,000 1,539,315
- ----------------------------------------------------------------------------------------------
Vought Aircraft Industries, Inc., 8% Sr. Nts., 7/15/11 5 1,050,000 1,002,750
---------------
20,707,638
- ----------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.2%
Atlas Air, Inc., 9.375% Sr. Unsec. Nts., 11/15/06 3,4 3,650,000 1,733,750
- ----------------------------------------------------------------------------------------------
Park-Ohio Industries, Inc., 9.25% Sr. Sub. Nts., 12/1/07 1 2,000,000 2,045,000
---------------
3,778,750
- ----------------------------------------------------------------------------------------------
AIRLINES--0.4%
ATA Holdings Corp.:
0%/12.125% Sr. Unsec. Nts., 6/15/10 5,7 2,000,000 1,290,000
13% Sr. Unsec. Nts., 2/1/09 6,720,000 4,737,600
---------------
6,027,600
- ----------------------------------------------------------------------------------------------
BUILDING PRODUCTS--0.4%
Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 1,500,000 1,672,500
- ----------------------------------------------------------------------------------------------
Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts., 7/1/10 1,944,000 2,089,800
- ----------------------------------------------------------------------------------------------
Nortek, Inc., 9.875% Sr. Unsec. Sub. Nts., 6/15/11 1 1,000,000 1,145,000
- ----------------------------------------------------------------------------------------------
North America Energy Partners, Inc., 8.75% Sr. Unsec. Nts.,
12/1/11 5 1,300,000 1,293,500
---------------
6,200,800
- ----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--3.5%
Allied Waste North America, Inc.:
7.375% Sr. Unsec. Nts., 4/15/14 5 6,400,000 6,256,000
7.875% Sr. Nts., 4/15/13 2,200,000 2,310,000
8.50% Sr. Sub. Nts., 12/1/08 2,200,000 2,417,250
8.875% Sr. Nts., Series B, 4/1/08 1,700,000 1,870,000
9.25% Sr. Sec. Debs., Series B, 9/1/12 2,000,000 2,250,000
- ----------------------------------------------------------------------------------------------
American Pad & Paper Co., 13% Sr. Sub. Nts., Series B,
11/15/05 1,3,4 2,500,000 --
- ----------------------------------------------------------------------------------------------
Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 1,3,4 6,500,000 1,153,750
- ----------------------------------------------------------------------------------------------
Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09 2,500,000 2,751,490
- ----------------------------------------------------------------------------------------------
Coinmach Corp., 9% Sr. Nts., 2/1/10 2,250,000 2,266,875
- ----------------------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 1 2,400,000 2,256,000
- ----------------------------------------------------------------------------------------------
Corrections Corp. of America:
7.50% Sr. Nts., 5/1/11 1,350,000 1,370,250
9.875% Sr. Nts., 5/1/09 1,500,000 1,672,500
27 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
Hydrochem Industrial Services, Inc., 10.375% Sr. Sub.
Nts., 8/1/07 1 $ 3,500,000 $ 3,543,750
- ----------------------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub.
Nts., 2/15/09 2,303,000 2,349,060
- ----------------------------------------------------------------------------------------------
Mail-Well I Corp.:
7.875% Sr. Sub. Nts., 12/1/13 5 3,500,000 3,202,500
9.625% Sr. Nts., 3/15/12 4,150,000 4,482,000
- ----------------------------------------------------------------------------------------------
Protection One, Inc./Protection One Alarm Monitoring, Inc.,
7.375% Sr. Unsec. Nts., 8/15/05 1,500,000 1,432,500
- ----------------------------------------------------------------------------------------------
Stericycle, Inc., 12.375% Sr. Unsec. Sub. Nts., Series B,
11/15/09 2,584,000 2,829,480
- ----------------------------------------------------------------------------------------------
Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 1,700,000 1,785,000
- ----------------------------------------------------------------------------------------------
United Rentals, Inc., 7% Sr. Sub. Nts., 2/15/14 7,600,000 6,802,000
- ----------------------------------------------------------------------------------------------
Videotron Ltee, 6.875% Sr. Unsec. Nts., 1/15/14 1,100,000 1,075,250
- ----------------------------------------------------------------------------------------------
Waste Services, Inc., 9.50% Sr. Sub. Nts., 4/15/14 5 1,350,000 1,390,500
---------------
55,466,155
- ----------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.2%
Integrated Electrical Services, Inc.:
9.375% Sr. Sub. Nts., Series B, 2/1/09 499,000 517,713
9.375% Sr. Sub. Nts., Series C, 2/1/09 500,000 518,750
- ----------------------------------------------------------------------------------------------
URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 1,428,000 1,645,770
---------------
2,682,233
- ----------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.3%
Dayton Superior Corp., 13% Sr. Unsec. Sub. Nts., 6/15/09 1,050,000 918,750
- ----------------------------------------------------------------------------------------------
General Cable Corp., 9.50% Sr. Nts., 11/15/10 2,200,000 2,376,000
- ----------------------------------------------------------------------------------------------
Riverside Forest Products Ltd., 7.875% Sr. Nts., 3/1/14 5 1,200,000 1,230,000
---------------
4,524,750
- ----------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.7%
Great Lakes Dredge & Dock Co., 7.75% Sr. Unsec. Sub. Nts.,
12/15/13 2,100,000 1,785,000
- ----------------------------------------------------------------------------------------------
Norse CBO Ltd., 9.342% Sub. Bonds, Series 1A, Cl. C2,
8/13/10 1 11,000,000 9,570,000
---------------
11,355,000
- ----------------------------------------------------------------------------------------------
MACHINERY--1.8%
Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 1,455,000 1,753,275
- ----------------------------------------------------------------------------------------------
AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 6,000,000 6,570,000
- ----------------------------------------------------------------------------------------------
Manitowoc Co., Inc. (The):
7.125% Sr. Nts., 11/1/13 600,000 603,000
10.50% Sr. Sub. Nts., 8/1/12 3,350,000 3,852,500
- ----------------------------------------------------------------------------------------------
Milacron Escrow Corp., 11.50% Sr. Sec. Nts., 5/15/11 5 2,400,000 2,400,000
- ----------------------------------------------------------------------------------------------
Navistar International Corp., 7.50% Sr. Nts., 6/15/11 2,800,000 2,884,000
- ----------------------------------------------------------------------------------------------
NMHG Holding Co., 10% Sr. Nts., 5/15/09 1,600,000 1,768,000
- ----------------------------------------------------------------------------------------------
SPX Corp., 7.50% Sr. Nts., 1/1/13 3,000,000 3,090,000
28 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
MACHINERY Continued
Terex Corp.:
9.25% Sr. Unsec. Sub. Nts., 7/15/11 $ 3,900,000 $ 4,270,500
10.375% Sr. Unsec. Sub. Nts., Series B, 4/1/11 500,000 560,000
- ----------------------------------------------------------------------------------------------
Trinity Industries, Inc., 6.50% Sr. Nts., 3/15/14 5 1,450,000 1,334,000
---------------
29,085,275
- ----------------------------------------------------------------------------------------------
MARINE--0.7%
CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 5,000,000 5,737,500
- ----------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc., 12% Sr. Sec. Nts.,
7/15/05 1,3,4 5,000,000 1,281,500
- ----------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority Ship
Mtg. Nts., 6/30/07 1,3,4 5,800,000 3,416,780
- ----------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 3.75% Sec. Nts.,
12/31/07 5 2,330,544 1,016,583
---------------
11,452,363
- ----------------------------------------------------------------------------------------------
ROAD & RAIL--0.5%
Kansas City Southern Railway Co. (The), 7.50% Sr. Nts.,
6/15/09 2,000,000 2,010,000
- ----------------------------------------------------------------------------------------------
Stena AB:
7.50% Sr. Unsec. Nts., 11/1/13 3,093,000 3,073,669
9.625% Sr. Nts., 12/1/12 2,000,000 2,230,000
---------------
7,313,669
- ----------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE--0.2%
Horizon Lines LLC, 9% Nts., 11/1/12 5,6 2,300,000 2,348,875
- ----------------------------------------------------------------------------------------------
Worldspan LP/Worldspan Financial Corp., 9.625% Sr. Nts.,
6/15/11 1,250,000 1,281,250
---------------
3,630,125
- ----------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--1.8%
- ----------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--0.1%
Orion Network Systems, Inc., 12.50% Sr. Unsub. Disc. Nts.,
1/15/07 1,3,4 5,310,000 1,938,150
- ----------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.1%
Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 1,700,000 1,785,000
- ----------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.5%
Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 3,000,000 3,300,000
- ----------------------------------------------------------------------------------------------
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 1,3,4 7,500,000 --
- ----------------------------------------------------------------------------------------------
Sensus Metering System, Inc., 8.625% Sr. Sub. Nts.,
12/15/13 5 4,200,000 4,053,000
---------------
7,353,000
- ----------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.1%
Exodus Communications, Inc., 10.75% Sr. Nts., 12/15/09 1,3,4
[EUR] 4,232,751 231,740
- ----------------------------------------------------------------------------------------------
Globix Corp., 11% Sr. Nts., 4/26/08 500,368 452,833
- ----------------------------------------------------------------------------------------------
NorthPoint Communications Group, Inc., 12.875% Nts.,
2/15/10 1,3 1,040,900 104
29 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES Continued
PSINet, Inc.:
10.50% Sr. Unsec. Nts., 12/1/06 1,3,4 [EUR] 1,000,000 $ 47,906
11% Sr. Nts., 8/1/09 1,3,4 2,118,662 116,526
- ----------------------------------------------------------------------------------------------
Verado Holdings, Inc., 13% Sr. Disc. Nts., 4/15/08 1,3,4 5,000,000 500
---------------
849,609
- ----------------------------------------------------------------------------------------------
IT SERVICES--0.3%
Iron Mountain, Inc.:
7.75% Sr. Sub. Nts., 1/15/15 1,200,000 1,197,000
8.625% Sr. Unsec. Sub. Nts., 4/1/13 2,400,000 2,556,000
- ----------------------------------------------------------------------------------------------
Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 5 1,400,000 1,421,000
---------------
5,174,000
- ----------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0.7%
AMI Semiconductor, Inc., 10.75% Sr. Unsec. Sub. Nts.,
2/1/13 1 2,597,000 3,044,983
- ----------------------------------------------------------------------------------------------
Amkor Technology, Inc.:
7.75% Sr. Nts., 5/15/13 2,350,000 2,238,375
9.25% Sr. Unsec. Sub. Nts., 2/15/08 3,500,000 3,675,000
- ----------------------------------------------------------------------------------------------
ChipPAC International Co. Ltd., 12.75% Sr. Unsec. Sub. Nts.,
Series B, 8/1/09 2,500,000 2,681,250
---------------
11,639,608
- ----------------------------------------------------------------------------------------------
MATERIALS--12.2%
- ----------------------------------------------------------------------------------------------
CHEMICALS--4.0%
Avecia Group plc, 11% Sr. Unsec. Nts., 7/1/09 1,750,000 1,338,750
- ----------------------------------------------------------------------------------------------
ClimaChem, Inc., 10.75% Sr. Unsec. Nts., Series B,
12/1/07 2,000,000 820,000
- ----------------------------------------------------------------------------------------------
Compass Minerals Group, Inc., 10% Sr. Sub. Nts., 8/15/11 3,200,000 3,568,000
- ----------------------------------------------------------------------------------------------
Equistar Chemicals LP/Equistar Funding Corp.:
10.125% Sr. Unsec. Nts., 9/1/08 147,000 161,700
10.625% Sr. Unsec. Nts., 5/1/11 5,800,000 6,467,000
- ----------------------------------------------------------------------------------------------
Huntsman Co. LLC:
11.50% Sr. Nts., 7/15/12 5 3,425,000 3,484,938
11.625% Sr. Unsec. Nts., 10/15/10 147,000 163,170
- ----------------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc:
10.125% Sr. Unsec. Sub. Nts., 7/1/09 9,150,000 9,378,750
13.09% Sr. Unsec. Disc. Nts., 12/31/09 10 4,000,000 1,980,000
- ----------------------------------------------------------------------------------------------
Huntsman International LLC, 9.875% Sr. Nts., 3/1/09 6,100,000 6,618,500
- ----------------------------------------------------------------------------------------------
IMC Global, Inc.:
7.625% Bonds, 11/1/05 1 24,000 24,600
10.875% Sr. Unsec. Nts., 8/1/13 147,000 176,033
- ----------------------------------------------------------------------------------------------
ISP Chemco, Inc., 10.25% Sr. Unsec. Sub. Nts., 7/1/11 2,700,000 3,017,250
- ----------------------------------------------------------------------------------------------
ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 1,800,000 1,989,000
- ----------------------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.50% Sec. Nts., 12/15/08 147,000 153,983
30 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
CHEMICALS Continued
Lyondell Chemical Co.: Continued
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 4,620,000
9.875% Sec. Nts., Series B, 5/1/07 1,350,000 1,417,500
- ----------------------------------------------------------------------------------------------
PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 989,550 945,020
- ----------------------------------------------------------------------------------------------
Pioneer Cos., Inc., 5.086% Sr. Sec. Nts., 12/31/06 2 313,358 297,690
- ----------------------------------------------------------------------------------------------
PolyOne Corp.:
8.875% Sr. Unsec. Nts., 5/1/12 5,000,000 4,950,000
10.625% Sr. Unsec. Nts., 5/15/10 1,597,000 1,700,805
- ----------------------------------------------------------------------------------------------
Resolution Performance Products LLC:
8% Sr. Sec. Nts., 12/15/09 1,650,000 1,720,125
13.50% Sr. Unsec. Sub. Nts., 11/15/10 1,350,000 1,265,625
- ----------------------------------------------------------------------------------------------
Rockwood Specialties, Inc., 10.625% Sr. Unsec. Sub. Nts.,
5/15/11 950,000 1,016,500
- ----------------------------------------------------------------------------------------------
Royster-Clark, Inc., 10.25% First Mtg. Nts., 4/1/09 1,500,000 1,507,500
- ----------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
10% Sr. Sec. Nts., 12/19/07 2,045,678 1,943,394
11.25% Sr. Sub. Nts., 8/15/06 1,3,4 3,000,000 --
- ----------------------------------------------------------------------------------------------
Westlake Chemical Corp., 8.75% Sr. Nts., 7/15/11 1 1,300,000 1,417,000
---------------
62,877,833
- ----------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.2%
Formica Corp., 10.875% Sr. Unsec. Sub. Nts., Series B,
3/1/09 1,3,4 3,500,000 682,500
- ----------------------------------------------------------------------------------------------
Texas Industries, Inc., 10.25% Sr. Unsec. Nts., 6/15/11 2,600,000 2,912,000
---------------
3,594,500
- ----------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--2.9%
Crown Euro Holdings SA:
9.50% Sr. Sec. Nts., 3/1/11 2,800,000 3,066,000
10.875% Sr. Sec. Nts., 3/1/13 1,400,000 1,603,000
- ----------------------------------------------------------------------------------------------
Graphic Packaging International Corp.:
8.50% Sr. Nts., 8/15/11 3,300,000 3,547,500
9.50% Sr. Sub. Nts., 8/15/13 2,100,000 2,289,000
- ----------------------------------------------------------------------------------------------
Jefferson Smurfit Corp.:
7.50% Sr. Unsec. Unsub. Nts., 6/1/13 650,000 646,750
8.25% Sr. Unsec. Nts., 10/1/12 2,500,000 2,612,500
- ----------------------------------------------------------------------------------------------
MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 2,500,000 2,750,000
- ----------------------------------------------------------------------------------------------
Owens-Brockway Glass Container, Inc.:
7.75% Sr. Sec. Nts., 5/15/11 700,000 731,500
8.25% Sr. Unsec. Nts., 5/15/13 1,347,000 1,397,513
8.75% Sr. Sec. Nts., 11/15/12 5,400,000 5,886,000
8.875% Sr. Sec. Nts., 2/15/09 3,000,000 3,255,000
- ----------------------------------------------------------------------------------------------
Pliant Corp., 0%/11.125% Sr. Sec. Disc. Nts., 6/15/09 5,7 1,650,000 1,398,375
- ----------------------------------------------------------------------------------------------
Solo Cup Co., 8.50% Sr. Sub. Nts., 2/15/14 5 5,050,000 4,721,750
31 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING Continued
Stone Container Corp.:
8.375% Sr. Nts., 7/1/12 $ 2,500,000 $ 2,625,000
9.25% Sr. Unsec. Nts., 2/1/08 1,000,000 1,097,500
9.75% Sr. Unsec. Nts., 2/1/11 4,000,000 4,420,000
- ----------------------------------------------------------------------------------------------
TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 4,200,000 4,473,000
---------------
46,520,388
- ----------------------------------------------------------------------------------------------
METALS & MINING--3.4%
AK Steel Corp.:
7.75% Sr. Unsec. Nts., 6/15/12 147,000 133,403
7.875% Sr. Unsec. Nts., 2/15/09 900,000 846,000
- ----------------------------------------------------------------------------------------------
Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 5 2,650,000 2,663,250
- ----------------------------------------------------------------------------------------------
California Steel Industries, Inc., 6.125% Sr. Nts., 3/15/14 2,000,000 1,875,000
- ----------------------------------------------------------------------------------------------
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 2,200,000 2,387,000
- ----------------------------------------------------------------------------------------------
International Utility Structures, Inc., 13% Unsec. Sub.
Nts., 2/1/08 1,3,4 814,000 --
- ----------------------------------------------------------------------------------------------
IPSCO, Inc., 8.75% Sr. Nts., 6/1/13 850,000 952,000
- ----------------------------------------------------------------------------------------------
Ispat Inland ULC, 9.75% Sr. Sec. Nts., 4/1/14 5 5,500,000 5,692,500
- ----------------------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 1 2,500,000 2,750,000
- ----------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 10.875% Sr. Nts., Series
B, 10/15/06 3,4 2,000,000 2,105,000
- ----------------------------------------------------------------------------------------------
Koppers Industry, Inc., 9.875% Sr. Sec. Nts., 10/15/13 2,800,000 3,080,000
- ----------------------------------------------------------------------------------------------
Massey Energy Co., 6.625% Sr. Nts., 11/15/10 1,750,000 1,750,000
- ----------------------------------------------------------------------------------------------
Metallurg, Inc., 11% Sr. Nts., 12/1/07 6,320,000 3,191,600
- ----------------------------------------------------------------------------------------------
Northwest Pipeline Corp., 8.125% Sr. Nts., 3/1/10 850,000 920,125
- ----------------------------------------------------------------------------------------------
Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 5,750,000 6,123,750
- ----------------------------------------------------------------------------------------------
Peabody Energy Corp., 6.875% Sr. Unsec. Nts., Series B,
3/15/13 2,500,000 2,543,750
- ----------------------------------------------------------------------------------------------
Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 1,500,000 1,665,000
- ----------------------------------------------------------------------------------------------
UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 700,000 782,250
- ----------------------------------------------------------------------------------------------
United States Steel Corp., 9.75% Sr. Nts., 5/15/10 1,514,000 1,684,325
- ----------------------------------------------------------------------------------------------
United States Steel LLC, 10.75% Sr. Nts., 8/1/08 1,493,000 1,713,218
- ----------------------------------------------------------------------------------------------
WHX Corp., 10.50% Sr. Unsec. Nts., 4/15/05 5,000,000 4,475,000
---------------
53,448,371
- ----------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--1.7%
Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 1,250,000 1,324,290
- ----------------------------------------------------------------------------------------------
Appleton Papers, Inc., 8.125% Sr. Nts., 6/15/11 5 2,250,000 2,289,375
- ----------------------------------------------------------------------------------------------
Buckeye Technologies, Inc., 8.50% Sr. Nts., 10/1/13 1,000,000 1,015,000
- ----------------------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 1,3,4 11,000,000 4,097,500
- ----------------------------------------------------------------------------------------------
Georgia-Pacific Corp.:
8.125% Sr. Unsec. Nts., 5/15/11 3,500,000 3,885,000
9.375% Sr. Unsec. Nts., 2/1/13 5,400,000 6,210,000
32 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS Continued
Inland Fiber Group LLC, 9.625% Sr. Unsec. Nts., 11/15/07 3 $ 4,000,000 $ 2,020,000
- ----------------------------------------------------------------------------------------------
Norske Skog Canada Ltd., 7.375% Sr. Nts., 3/1/14 5 1,500,000 1,458,750
- ----------------------------------------------------------------------------------------------
Tekni-Plex, Inc., 8.75% Sr. Sec. Nts., 11/15/13 5 4,947,000 4,749,120
---------------
27,049,035
- ----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--10.3%
- ----------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--4.2%
360networks, Inc., 13% Sr. Unsec. Nts., 5/1/08 1,3,4 [EUR] 1,000,000 --
- ----------------------------------------------------------------------------------------------
COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 1,3,4 1,665,849 167
- ----------------------------------------------------------------------------------------------
Crown Castle International Corp.:
7.50% Sr. Nts., 12/1/13 3,950,000 3,950,000
7.50% Sr. Nts., Series B, 12/1/13 500,000 500,000
- ----------------------------------------------------------------------------------------------
Dex Media East LLC/Dex Media East Finance Co.,
9.875% Sr. Unsec. Nts., 11/15/09 3,000,000 3,382,500
- ----------------------------------------------------------------------------------------------
Dex Media West LLC/Dex Media West Finance Co.:
8.50% Sr. Nts., 8/15/10 2,100,000 2,299,500
9.875% Sr. Sub. Nts., 8/15/13 3,600,000 3,969,000
- ----------------------------------------------------------------------------------------------
Dex Media, Inc., 8% Nts., 11/15/13 5 10,725,000 10,349,625
- ----------------------------------------------------------------------------------------------
IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09 550,000 596,750
- ----------------------------------------------------------------------------------------------
Level 3 Communications, Inc.:
9.125% Sr. Unsec. Nts., 5/1/08 147,000 117,233
10.50% Sr. Disc. Nts., 12/1/08 650,000 518,375
- ----------------------------------------------------------------------------------------------
MCI, Inc.:
5.908% Sr. Unsec. Nts., 5/1/07 743,000 722,568
6.688% Sr. Unsec. Nts., 5/1/09 743,000 689,133
7.735% Sr. Unsec. Nts., 5/1/14 637,000 571,708
- ----------------------------------------------------------------------------------------------
Pratama Datakom Asia BV, 12.75% Gtd. Nts., 7/15/05 1,3,4 4,000,000 100,000
- ----------------------------------------------------------------------------------------------
Qwest Capital Funding, Inc., 7.90% Unsec. Nts., 8/15/10 147,000 130,830
- ----------------------------------------------------------------------------------------------
Qwest Corp., 8.875% Nts., 3/15/12 5 4,400,000 4,774,000
- ----------------------------------------------------------------------------------------------
Qwest Services Corp., 13.50% Nts., 12/15/10 5 15,900,000 18,563,250
- ----------------------------------------------------------------------------------------------
Telewest Communications plc:
0%/9.875% Sr. Disc. Nts., 4/15/09 3,4 [GBP] 4,000,000 3,082,949
9.25% Sr. Disc. Nts., 4/15/09 3,4 7,300,000 3,540,500
11.25% Sr. Nts., 11/1/08 3,4 3,700,000 2,183,000
- ----------------------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 1,3,4 2,300,000 --
- ----------------------------------------------------------------------------------------------
Time Warner Telecom LLC/Time Warner Telecom, Inc.,
9.75% Sr. Nts., 7/15/08 5,800,000 5,452,000
- ----------------------------------------------------------------------------------------------
Time Warner Telecom, Inc., 10.125% Sr. Unsec. Sub. Nts.,
2/1/11 2,700,000 2,470,500
---------------
67,963,588
33 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--6.1%
Alamosa Delaware, Inc.:
8.50% Sr. Nts., 1/31/12 5 $ 2,750,000 $ 2,708,750
11% Sr. Unsec. Nts., 7/31/10 147,000 160,965
12.50% Sr. Unsec. Nts., 2/1/11 2,200,000 2,453,000
- ----------------------------------------------------------------------------------------------
American Cellular Corp., 10% Sr. Nts., Series B, 8/1/11 7,150,000 6,202,625
- ----------------------------------------------------------------------------------------------
American Tower Corp., 7.50% Sr. Nts., 5/1/12 5 5,350,000 5,202,875
- ----------------------------------------------------------------------------------------------
American Tower Escrow Corp., 12.25% Sr. Sub. Disc. Nts.,
8/1/08 10 4,300,000 3,160,500
- ----------------------------------------------------------------------------------------------
CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts.,
10/1/07 1,3,4 9,220,000 --
- ----------------------------------------------------------------------------------------------
Centennial Cellular Operating Co./Centennial
Communications Corp., 10.125% Sr. Nts., 6/15/13 7,350,000 7,625,625
- ----------------------------------------------------------------------------------------------
Crown Castle International Corp., 10.75% Sr. Nts., 8/1/11 2,000,000 2,250,000
- ----------------------------------------------------------------------------------------------
Dobson Communications Corp.:
8.875% Sr. Nts., 10/1/13 6,347,000 4,855,455
10.875% Sr. Unsec. Nts., 7/1/10 5,700,000 4,930,500
- ----------------------------------------------------------------------------------------------
IPCS, Inc., 0%/14% Sr. Unsec. Disc. Nts., 7/15/10 3,4,7 1,350,000 735,750
- ----------------------------------------------------------------------------------------------
Leap Wireless International, Inc.:
0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 1,3,4,7 4,500,000 652,500
12.50% Sr. Nts., 4/15/10 1,3,4 2,900,000 514,750
- ----------------------------------------------------------------------------------------------
Nextel Communications, Inc.:
7.375% Sr. Nts., 8/1/15 3,460,000 3,511,900
9.50% Sr. Unsec. Nts., 2/1/11 7,250,000 8,156,250
- ----------------------------------------------------------------------------------------------
Nextel Partners, Inc., 8.125% Sr. Nts., 7/1/11 2,150,000 2,203,750
- ----------------------------------------------------------------------------------------------
Rural Cellular Corp.:
8.25% Sr. Sec. Nts., 3/15/12 5 2,100,000 2,157,750
9.625% Sr. Sub. Nts., Series B, 5/15/08 3,000,000 2,850,000
9.75% Sr. Sub. Nts., 1/15/10 3,447,000 3,145,388
9.875% Sr. Nts., 2/1/10 3,900,000 3,890,250
- ----------------------------------------------------------------------------------------------
SBA Communications Corp., 10.25% Sr. Unsec. Nts., 2/1/09 6,900,000 7,107,000
- ----------------------------------------------------------------------------------------------
SBA Telecommunications, Inc./SBA Communications Corp.,
0%/9.75% Sr. Disc. Nts., 12/15/11 5,7 5,047,000 3,760,015
- ----------------------------------------------------------------------------------------------
Triton PCS, Inc.:
8.50% Sr. Unsec. Nts., 6/1/13 2,600,000 2,470,000
8.75% Sr. Unsec. Sub. Nts., 11/15/11 497,000 412,510
9.375% Sr. Unsec. Sub. Nts., 2/1/11 1,800,000 1,548,000
- ----------------------------------------------------------------------------------------------
UbiquiTel Operating Co., 9.875% Sr. Nts., 3/1/11 5 4,200,000 4,221,000
- ----------------------------------------------------------------------------------------------
US Unwired, Inc.:
0%/13.375% Sr. Unsec. Sub. Disc. Nts., Series B, 11/1/09 7 5,850,000 5,908,500
10% Sr. Sec. Nts., 6/15/12 1,625,000 1,649,375
- ----------------------------------------------------------------------------------------------
Western Wireless Corp., 9.25% Sr. Unsec. Nts., 7/15/13 2,197,000 2,273,895
---------------
96,718,878
34 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
UTILITIES--6.7%
- ----------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--4.3%
AES Corp. (The):
5.22% Nts., 1/1/15 [GBP] 268,000 $ 486,018
6.22% Nts., 1/1/20 [GBP] 50,000 90,675
8.375% Sr. Unsec. Unsub. Nts., 3/1/11 [GBP] 2,500,000 4,290,060
8.75% Sr. Sec. Nts., 5/15/13 5 2,700,000 2,905,875
10% Sec. Nts., 7/15/05 5 1,716,488 1,763,692
- ----------------------------------------------------------------------------------------------
Allegheny Energy Supply Co. LLC, 8.25% Bonds, 4/15/12 5 147,000 146,081
- ----------------------------------------------------------------------------------------------
Allegheny Energy, Inc., 7.75% Nts., 8/1/05 1,350,000 1,404,000
- ----------------------------------------------------------------------------------------------
Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series
B, 12/15/09 795,637 871,223
- ----------------------------------------------------------------------------------------------
Calpine Corp.:
7.625% Sr. Nts., 4/15/06 10,850,000 9,602,250
8.75% Sr. Nts., 7/15/07 2,800,000 2,002,000
8.75% Sr. Sec. Nts., 7/15/13 5 1,700,000 1,402,500
9.875% Sr. Sec. Nts., 12/1/11 5 2,900,000 2,479,500
- ----------------------------------------------------------------------------------------------
CMS Energy Corp.:
7.50% Sr. Nts., 1/15/09 1,147,000 1,147,000
7.75% Sr. Nts., 8/1/10 5 1,400,000 1,400,000
9.875% Sr. Unsec. Nts., 10/15/07 4,000,000 4,330,000
- ----------------------------------------------------------------------------------------------
CMS Energy X-TRAS Pass-Through Trust I, 7% Sr. Unsec.
Pass-Through Certificates, 1/15/05 1,300,000 1,313,000
- ----------------------------------------------------------------------------------------------
Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08 275,000 294,938
- ----------------------------------------------------------------------------------------------
Midwest Generation LLC, 8.75% Sr. Sec. Nts., 5/1/34 5 8,100,000 8,221,500
- ----------------------------------------------------------------------------------------------
Mirant Americas Generation LLC, 8.30% Sr. Unsec. Nts.,
5/1/11 3,4 1,300,000 981,500
- ----------------------------------------------------------------------------------------------
MSW Energy Holdings LLC/MSW Energy Finance Co., Inc.:
7.375% Sr. Sec. Nts., 9/1/10 5 3,350,000 3,350,000
8.50% Sr. Sec. Nts., 9/1/10 1,300,000 1,381,250
- ----------------------------------------------------------------------------------------------
NRG Energy, Inc., 8% Sr. Sec. Nts., 12/15/13 5 7,600,000 7,714,000
- ----------------------------------------------------------------------------------------------
Reliant Resources, Inc.:
9.25% Sr. Sec. Nts., 7/15/10 4,997,000 5,359,283
9.50% Sr. Sec. Nts., 7/15/13 4,750,000 5,141,875
- ----------------------------------------------------------------------------------------------
Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07 503,000 575,480
---------------
68,653,700
- ----------------------------------------------------------------------------------------------
GAS UTILITIES--0.2%
AmeriGas Partners LP/AmeriGas Eagle Finance Corp.,
8.875% Sr. Unsec. Nts., Series B, 5/20/11 750,000 802,500
- ----------------------------------------------------------------------------------------------
SEMCO Energy, Inc.:
7.125% Sr. Nts., 5/15/08 1,100,000 1,133,000
7.75% Sr. Nts., 5/15/13 1,100,000 1,138,500
---------------
3,074,000
35 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--2.1%
AES Red Oak LLC, 8.54% Sr. Sec. Bonds, Series A, 11/30/19 $ 3,352,781 $ 3,495,274
- ----------------------------------------------------------------------------------------------
Aquila, Inc., 7% Sr. Unsec. Nts., 7/15/04 850,000 848,938
- ----------------------------------------------------------------------------------------------
Calpine Canada Energy Finance ULC, 8.50% Sr. Unsec. Nts.,
5/1/08 4,647,000 3,090,255
- ----------------------------------------------------------------------------------------------
Consumers Energy Co.:
6.25% Nts., 9/15/06 1,100,000 1,156,252
6.375% Sr. Sec. Nts., 2/1/08 800,000 849,356
7.375% Nts., 9/15/23 1,600,000 1,631,418
- ----------------------------------------------------------------------------------------------
Dynegy Holdings, Inc.:
6.875% Sr. Unsec. Unsub. Nts., 4/1/11 9,150,000 7,926,188
8.75% Sr. Nts., 2/15/12 4,647,000 4,437,885
10.125% Sr. Sec. Nts., 7/15/13 5 6,200,000 6,742,500
- ----------------------------------------------------------------------------------------------
Mirant Mid-Atlantic LLC, 8.625% Sec. Pass-Through
Certificates, Series A, 6/30/12 2,428,739 2,503,119
---------------
32,681,185
- ----------------------------------------------------------------------------------------------
WATER UTILITIES--0.1%
National Waterworks, Inc., 10.50% Sr. Unsec. Sub. Nts.,
Series B, 12/1/12 1,400,000 1,561,000
---------------
Total Corporate Bonds and Notes (Cost $1,377,750,897) 1,367,019,097
SHARES
- ----------------------------------------------------------------------------------------------
PREFERRED STOCKS--1.7%
- ----------------------------------------------------------------------------------------------
AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg. 1,4,8 110,146 1,101
- ----------------------------------------------------------------------------------------------
Doane Pet Care Co., 14.25% Jr. Sub. Debs., Non-Vtg. 1,4 140,000 6,755,000
- ----------------------------------------------------------------------------------------------
Dobson Communications Corp., 6% Cv., Series F (converts into
Dobson Communications Corp., Cl. A common stock), Non-Vtg. 2,800 273,123
- ----------------------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable,
Non-Vtg. 1,4,8 3,738 374
- ----------------------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable,
Series B, Non-Vtg. 1,4 28,000 2,457,000
- ----------------------------------------------------------------------------------------------
Focal Communications Corp., Cv., Series A 1,4 11,480 115,948
- ----------------------------------------------------------------------------------------------
ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg. 1,4,8 1 --
- ----------------------------------------------------------------------------------------------
McLeodUSA, Inc., 2.50% Cv., Series A 4 6,516 16,948
- ----------------------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable
Exchangeable, Non-Vtg. 1,4,8 96,993 --
- ----------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series
A 1,4,8 124,999 249,998
- ----------------------------------------------------------------------------------------------
Paxson Communications Corp.:
14.25% Cum. 4,8 1 8,059
14.25% Cum. Jr. Exchangeable, Non-Vtg. 8 864 7,592,381
- ----------------------------------------------------------------------------------------------
PTV, Inc., 10% Cum., Series A, Non-Vtg. 197 1,507
- ----------------------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 4,8 6,236 5,285,010
- ----------------------------------------------------------------------------------------------
Sovereign Real Estate Investment Trust, 12% Non-Cum.,
Series A 1 26,250 3,839,063
- ----------------------------------------------------------------------------------------------
Ziff Davis Holdings, Inc., 10%, Series E-1 1,4 168 4,116
---------------
Total Preferred Stocks (Cost $38,243,305) 26,599,628
36 | OPPENHEIMER HIGH YIELD FUND
VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------
COMMON STOCKS--0.9%
- ----------------------------------------------------------------------------------------------
AboveNet, Inc. 4 5,710 $ 165,590
- ----------------------------------------------------------------------------------------------
AES Drax Group Ltd. 4 50,000 35,091
- ----------------------------------------------------------------------------------------------
Aurora Foods, Inc., Equity Trust Interests 1,4 963 1,249,063
- ----------------------------------------------------------------------------------------------
Classic Cable, Inc. 4 6,613 --
- ----------------------------------------------------------------------------------------------
Conseco, Inc. 4 46,622 927,778
- ----------------------------------------------------------------------------------------------
Covad Communications Group,Inc. 4 132,227 317,345
- ----------------------------------------------------------------------------------------------
Dobson Communications Corp., Cl. A 4 180,219 587,514
- ----------------------------------------------------------------------------------------------
Equinix, Inc. 4 277 9,401
- ----------------------------------------------------------------------------------------------
Globix Corp. 4 80,275 232,798
- ----------------------------------------------------------------------------------------------
Horizon Natural Resources Co. 1,4 93,333 --
- ----------------------------------------------------------------------------------------------
ICG Communications, Inc. 4 3,590 1,616
- ----------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. 1,4 168,429 87,583
- ----------------------------------------------------------------------------------------------
Magellan Health Services, Inc. 4 70,584 2,361,035
- ----------------------------------------------------------------------------------------------
Manitowoc Co., Inc. (The) 3,772 127,682
- ----------------------------------------------------------------------------------------------
MCI, Inc. 4 24,441 352,684
- ----------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. A 4 194 4,679
- ----------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. B 4 46,547 1,121,363
- ----------------------------------------------------------------------------------------------
Orbital Sciences Corp. 4 14,063 194,210
- ----------------------------------------------------------------------------------------------
Pioneer Cos., Inc. 4 63,991 454,976
- ----------------------------------------------------------------------------------------------
Polymer Group, Inc., Cl. A 4 8,124 106,424
- ----------------------------------------------------------------------------------------------
Pope, Evans & Robbins, Inc. 1,4 1,688,400 --
- ----------------------------------------------------------------------------------------------
Prandium, Inc. 4,11 459,132 25,252
- ----------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. 4 3,987 97,682
- ----------------------------------------------------------------------------------------------
TVMAX Holdings, Inc. 1,4 30,000 132,750
- ----------------------------------------------------------------------------------------------
UnitedGlobalCom, Inc., Cl. A 4 739,372 5,367,841
- ----------------------------------------------------------------------------------------------
Viatel Holding Ltd. (Bermuda) 1,4 13,172 16,136
- ----------------------------------------------------------------------------------------------
WRC Media Corp. 1,4 9,471 189
- ----------------------------------------------------------------------------------------------
XO Communications, Inc. 4 16,729 69,425
---------------
Total Common Stocks (Cost $34,280,150) 14,046,107
UNITS
- ----------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- ----------------------------------------------------------------------------------------------
AboveNet, Inc. Wts.:
Exp. 9/8/08 1,4 2,403 29,085
Exp. 9/8/10 1,4 2,828 32,299
- ----------------------------------------------------------------------------------------------
American Tower Corp. Wts., Exp. 8/1/08 1,4 4,300 819,150
- ----------------------------------------------------------------------------------------------
Chesapeake Energy Corp. Wts.:
Exp. 5/1/05 1,4 22,514 65,029
Exp. 9/1/04 4 32,054 2,355
37 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
UNITS SEE NOTE 1
- ----------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES Continued
- ----------------------------------------------------------------------------------------------
Citigroup, Inc. Wts., Exp. 12/31/50 4 107,699 $ 93,698
- ----------------------------------------------------------------------------------------------
COLO.com, Inc. Wts., Exp. 3/15/10 1,4 2,000 20
- ----------------------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07 1,4 3,330 --
- ----------------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08 1,4 8,200 82
- ----------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 1,4 4,000 --
- ----------------------------------------------------------------------------------------------
Diva Systems Corp. Wts., Exp. 3/1/08 1,4 7,500 --
- ----------------------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05 1,4 2,575 26
- ----------------------------------------------------------------------------------------------
Focal Communications Corp. Wts.:
Exp. 6/19/06 1,4 4,502 16,207
Exp. 6/19/08 4 22,510 --
- ----------------------------------------------------------------------------------------------
HF Holdings, Inc. Wts., Exp. 9/27/09 1,4 1,445 195
- ----------------------------------------------------------------------------------------------
Horizon PCS, Inc. Wts., Exp. 10/1/10 1,4 6,300 --
- ----------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 1,4 50,820 508
- ----------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. Wts.:
Exp. 5/16/06 1,4 42,243 422
Exp. 5/16/06 1,4 63 --
- ----------------------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07 1,4 7,055 --
- ----------------------------------------------------------------------------------------------
IPCS, Inc. Wts., Exp. 6/15/10 1,4 3,750 38
- ----------------------------------------------------------------------------------------------
Leap Wireless International, Inc. Wts., Exp. 4/15/10 1,4 3,500 --
- ----------------------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08 1,4 2,800 --
- ----------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07 1,4 3,910 39
- ----------------------------------------------------------------------------------------------
McLeodUSA, Inc. Wts., Exp. 4/16/07 4 14,440 2,022
- ----------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. A Wts., Exp.
5/1/05 4 8,619 79,778
- ----------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Cl. B Wts., Exp.
5/1/08 4 14,365 126,963
- ----------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 1,4 6,400 64
- ----------------------------------------------------------------------------------------------
Ntelos, Inc. Wts., Exp. 8/15/10 1,4 5,000 50
- ----------------------------------------------------------------------------------------------
Pathmark Stores, Inc. Wts., Exp. 9/19/10 4 100,000 85,000
- ----------------------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 6/30/05 1,4 49,120 --
- ----------------------------------------------------------------------------------------------
Republic Technologies International LLC Wts., Exp.
7/15/09 1,4 1,200 1
- ----------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. Wts., Exp. 12/19/08 1,4 6,474 9,387
- ----------------------------------------------------------------------------------------------
Telergy, Inc. Wts., Exp. 9/25/10 1,4 8,078 --
- ----------------------------------------------------------------------------------------------
XO Communications, Inc., Cl. A Wts., Exp. 1/16/10 4 33,465 50,198
- ----------------------------------------------------------------------------------------------
XO Communications, Inc., Cl. B Wts., Exp. 1/16/10 4 25,098 26,353
- ----------------------------------------------------------------------------------------------
XO Communications, Inc., Cl. C Wts., Exp. 1/16/10 4 25,098 17,945
- ----------------------------------------------------------------------------------------------
Ziff Davis Holdings, Inc. Wts., Exp. 8/12/12 1,4 30,800 15,400
---------------
Total Rights, Warrants and Certificates (Cost $1,697,265) 1,472,314
38 | OPPENHEIMER HIGH YIELD FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------
STRUCTURED NOTES--3.3%
- ----------------------------------------------------------------------------------------------
JPMorgan Chase Bank, TRAC-X NA High Yield T3 Credit
Linked Nts., 8%, 3/25/09 5 $ 53,700,000 $ 52,189,688
- ----------------------------------------------------------------------------------------------
Parametric RE Ltd. Catastrophe Linked Nts.,
5.85%,11/19/07 2,5 1,000,000 1,038,510
---------------
Total Structured Notes (Cost $54,700,000) 53,228,198
- ----------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--6.7%
- ----------------------------------------------------------------------------------------------
Undivided interest of 35.39% in joint repurchase
agreement (Principal Amount/Value $300,576,000, with a
maturity value of $300,586,019) with DB Alex Brown LLC,
1.20%, dated 6/30/04, to be repurchased at $106,383,546 on
7/1/04, collateralized by U.S. Treasury Nts., 4.875%,
2/15/12, with a value of $306,953,645 (Cost $106,380,000) 106,380,000 106,380,000
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,623,062,391) 98.8% 1,572,730,675
- ----------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.2 19,535,896
-------------------------------
NET ASSETS 100.0% $ 1,592,266,571
===============================
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 8 of Notes to Financial
Statements.
2. Represents the current interest rate for a variable or increasing rate
security.
3. Issue is in default. See Note 1 of Notes to Financial Statements.
4. Non-income producing security.
5. 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 $301,311,909 or 18.92% of the Fund's net
assets as of June 30, 2004.
6. When-issued security or forward commitment to be delivered and settled after
June 30, 2004. See Note 1 of Notes to Financial Statements.
7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
8. Interest or dividend is paid-in-kind.
9. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units, which
represent debt securities, principal amount disclosed represents total
underlying principal.
10. Zero coupon bond reflects effective yield on the date of purchase.
11. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended June 30, 2004. The
aggregate value of securities of affiliated companies held by the Fund as of
June 30, 2004 amounts to $25,252. Transactions during the period in which the
issuer was an affiliate are as follows:
SHARES SHARES
JUNE 30, GROSS GROSS JUNE 30, UNREALIZED
2003 ADDITIONS REDUCTIONS 2004 DEPRECIATION
- ---------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Prandium, Inc. 459,132 -- -- 459,132 $ 5,374,748
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF ASSETS AND LIABILITIES June 30, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $1,617,662,391) $ 1,572,705,423
Affiliated companies (cost $5,400,000) 25,252
----------------
1,572,730,675
- ------------------------------------------------------------------------------------
Unrealized appreciation on swap contracts 2,572,348
- ------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 30,294,977
Investments sold 11,004,792
Shares of beneficial interest sold 1,346,825
Other 23,953
----------------
Total assets 1,617,973,570
- ------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------
Bank overdraft 88,534
- ------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $6,500,000 purchased on a
when-issued basis or forward commitment) 16,361,094
Shares of beneficial interest redeemed 4,629,171
Dividends 3,204,206
Distribution and service plan fees 972,055
Transfer and shareholder servicing agent fees 220,125
Shareholder communications 133,927
Trustees' compensation 29,181
Other 68,706
----------------
Total liabilities 25,706,999
- ------------------------------------------------------------------------------------
NET ASSETS $ 1,592,266,571
================
- ------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 169,841
- ------------------------------------------------------------------------------------
Additional paid-in capital 2,216,886,582
- ------------------------------------------------------------------------------------
Accumulated net investment loss (2,518,220)
- ------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (574,512,631)
- ------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of
assets and liabilities denominated in foreign currencies (47,759,001)
----------------
NET ASSETS $ 1,592,266,571
================
40 | OPPENHEIMER HIGH YIELD FUND
- -------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $1,073,707,863 and 114,130,869 shares of beneficial interest
outstanding) $ 9.41
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $ 9.88
- -------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $303,184,141 and 32,727,752 shares of beneficial interest
outstanding) $ 9.26
- -------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $149,505,003 and 15,933,793 shares of beneficial interest
outstanding) $ 9.38
- -------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $8,893,625 and 943,572 shares of beneficial interest
outstanding) $ 9.43
- -------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $56,975,939 and 6,105,170 shares of beneficial
interest outstanding) $ 9.33
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER HIGH YIELD FUND
STATEMENT OF OPERATIONS For the Year Ended June 30, 2004
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------
Interest $ 150,708,466
- ------------------------------------------------------------------------------
Dividends 1,438,711
- ------------------------------------------------------------------------------
Portfolio lending fees 178,988
--------------
Total investment income 152,326,165
- ------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------
Management fees 10,492,559
- ------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,751,432
Class B 3,478,551
Class C 1,665,241
Class N 52,558
- ------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,684,946
Class B 547,619
Class C 257,669
Class N 25,145
Class Y 290,355
- ------------------------------------------------------------------------------
Shareholder communications:
Class A 209,604
Class B 84,389
Class C 32,483
Class N 1,927
- ------------------------------------------------------------------------------
Trustees' compensation 52,930
- ------------------------------------------------------------------------------
Custodian fees and expenses 33,602
- ------------------------------------------------------------------------------
Other 81,897
--------------
Total expenses 21,742,907
Less reduction to custodian expenses (11,887)
Less payments and waivers of expenses (111,898)
--------------
Net expenses 21,619,122
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 130,707,043
42 | OPPENHEIMER HIGH YIELD FUND
- -------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- -------------------------------------------------------------------------------
Net realized gain on:
Investments $ 6,762,520
Closing of futures contracts 42,711
Foreign currency transactions 587,286
Swap contracts 160,284
-------------
Net realized gain 7,552,801
- ------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 29,692,263
Translation of assets and liabilities denominated in foreign
currencies 106,137
Swap contracts 2,572,348
-------------
Net change in unrealized appreciation (depreciation) 32,370,748
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 170,630,592
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43 | OPPENHEIMER HIGH YIELD FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 2004 2003
- -----------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------
Net investment income $ 130,707,043 $ 132,671,921
- -----------------------------------------------------------------------------------------
Net realized gain (loss) 7,552,801 (163,255,101)
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 32,370,748 268,800,841
----------------------------------
Net increase in net assets resulting from operations 170,630,592 238,217,661
- -----------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (86,840,525) (75,259,993)
Class B (23,983,742) (24,005,931)
Class C (11,359,611) (8,842,615)
Class N (757,025) (354,824)
Class Y (4,327,419) (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 (106,090,589) 215,493,585
Class B (78,231,133) 13,616,121
Class C (14,771,121) 44,034,511
Class N 565,563 5,191,070
Class Y 1,289,210 12,011,100
- -----------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------
Total increase (decrease) (153,875,800) 400,873,817
- -----------------------------------------------------------------------------------------
Beginning of period 1,746,142,371 1,345,268,554
----------------------------------
End of period (including accumulated net investment
loss of $2,518,220 and $8,198,469, respectively) $ 1,592,266,571 $ 1,746,142,371
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
44 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JUNE 30, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.15 $ 8.62 $ 10.20 $ 11.89 $ 13.06
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .73 .84 .92 1.18 1.26
Net realized and unrealized gain (loss) .24 .47 (1.44) (1.59) (1.18)
---------------- ----------------------------------------------------------------
Total from investment operations .97 1.31 (.52) (.41) .08
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.71) (.69) (1.01) (1.28) (1.25)
Tax return of capital distribution -- (.09) (.05) -- --
---------------- ----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.71) (.78) (1.06) (1.28) (1.25)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.41 $ 9.15 $ 8.62 $ 10.20 $ 11.89
=================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.90% 16.38% (5.47)% (3.69)% 0.71%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,073,708 $ 1,150,055 $ 858,834 $ 962,017 $ 1,065,220
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,146,751 $ 934,227 $ 948,097 $ 1,038,442 $ 1,125,834
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.80% 9.54% 9.68% 10.66% 10.12%
Total expenses 1.03% 3,4 1.07% 3 1.10% 3 1.00% 3 1.02% 3
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 68% 47% 33% 24%
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
45 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED JUNE 30, 2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.03 $ 8.51 $ 10.09 $ 11.77 $ 12.95
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 63 .74 .84 1.10 1.15
Net realized and unrealized gain
(loss) .24 .49 (1.43) (1.58) (1.18)
-------------------------------------------------------------------------
Total from investment operations .87 1.23 (.59) (.48) (.03)
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.64) (.62) (.94) (1.20) (1.15)
Tax return of capital distribution -- (.09) (.05) -- --
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.64) (.71) (.99) (1.20) (1.15)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.26 $ 9.03 $ 8.51 $ 10.09 $ 11.77
=========================================================================
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 9.86% 15.60% (6.23)% (4.37)% (0.13)%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 303,184 $ 372,947 $ 338,654 $ 386,309 $ 453,375
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 347,319 $ 321,200 $ 366,869 $ 414,648 $ 509,815
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.03% 8.81% 8.93% 9.91% 9.35%
Total expenses 1.80% 3,4 1.84% 3 1.86% 3 1.76% 3 1.79% 3
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 68% 47% 33% 24%
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46 | OPPENHEIMER HIGH YIELD FUND
CLASS C YEAR ENDED JUNE 30, 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.13 $ 8.60 $ 10.18 $ 11.87 $ 13.04
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .66 .78 .86 1.11 1.16
Net realized and unrealized gain
(loss) .23 .46 (1.45) (1.60) (1.18)
---------------------------------------------------------------------
Total from investment operations .89 1.24 (.59) (.49) (.02)
- ------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.64) (.62) (.94) (1.20) (1.15)
Tax return of capital distribution -- (.09) (.05) -- --
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.64) (.71) (.99) (1.20) (1.15)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.38 $ 9.13 $ 8.60 $ 10.18 $ 11.87
=====================================================================
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 9.96% 15.55% (6.08)% (4.43)% (0.06)%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 149,505 $ 160,713 $ 106,884 $ 90,603 $ 82,204
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 166,367 $ 120,997 $ 104,882 $ 83,776 $ 87,141
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.03% 8.78% 8.75% 9.90% 9.35%
Total expenses 1.79% 3,4 1.83% 3 1.86% 3 1.76% 3 1.79% 3
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 68% 47% 33% 24%
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
47 | OPPENHEIMER HIGH YIELD FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS N YEAR ENDED JUNE 30, 2004 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 .70 .80 .96 .41
Net realized and unrealized gain
(loss) .24 .49 (1.48) (1.13)
-------------------------------------------------------
Total from investment operations .94 1.29 (.52) (.72)
- -------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.68) (.66) (1.00) (.41)
Tax return of capital distribution -- (.09) (.05) --
-------------------------------------------------------
Total dividends and/or distributions
to shareholders (.68) (.75) (1.05) (.41)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.43 $ 9.17 $ 8.63 $ 10.20
=======================================================
- -------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 10.47% 16.08% (5.53)% (6.43)%
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 8,894 $ 8,324 $ 2,396 $ 146
- -------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 10,501 $ 4,827 $ 799 $ 46
- -------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 7.41% 9.14% 8.41% 11.47%
Total expenses 1.38% 4,5 1.41% 4 1.35% 4 1.04% 4
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 68% 47% 33%
1. For the period from March 1, 2001 (inception of offering) to June 30, 2001.
2. Assumes an investment on the business day before the first day of the fiscal
period, 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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
48 | OPPENHEIMER HIGH YIELD FUND
CLASS Y YEAR ENDED JUNE 30, 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.09 $ 8.56 $ 10.14 $ 11.82 $ 13.02
- ----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .73 .86 .90 1.20 1.27
Net realized and unrealized gain (loss) .23 .45 (1.41) (1.59) (1.18)
--------------------------------------------------------
Total from investment operations .96 1.31 (.51) (.39) .09
- ----------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.72) (.69) (1.02) (1.29) (1.29)
Tax return of capital distribution -- (.09) (.05) -- --
--------------------------------------------------------
Total dividends and/or distributions
to shareholders (.72) (.78) (1.07) (1.29) (1.29)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.33 $ 9.09 $ 8.56 $ 10.14 $ 11.82
========================================================
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.80% 16.51% (5.37)% (3.57)% 0.85%
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 56,976 $ 54,102 $ 38,500 $ 60,244 $ 54,117
- ----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 56,276 $ 43,178 $ 44,583 $ 56,669 $ 54,022
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.85% 9.63% 9.88% 10.72% 10.30%
Total expenses 1.14% 1.34% 1.01% 0.94% 0.86%
Expenses after payments and waivers
and reduction to custodian expenses 0.98% 0.98% 0.98% N/A 3 N/A 3
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 68% 47% 33% 24%
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
49 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer High Yield Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's primary investment objective is to seek a high level of current
income by investing in a diversified portfolio of high-yield, lower-rated
fixed-income securities the Fund's investment Manager, OppenheimerFunds, Inc.
(the Manager), believes do not involve undue risk.
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights and voting privileges 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 due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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 may be valued primarily using dealer-supplied valuations or a
portfolio pricing service authorized by the Board of Trustees. Securities
(including restricted securities) for which market quotations are not readily
available are valued at their fair value. Foreign and domestic 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 exchanges will be fair valued. Fair value is
determined in good faith using consistently applied procedures under the
supervision of the Board
50 | OPPENHEIMER HIGH YIELD FUND
of Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
STRUCTURED NOTES. The Fund invests in structured notes whose market values,
interest rates and/or redemption prices are linked to the performance of
underlying foreign currencies, interest rate spreads, stock market indices,
prices of individual securities, commodities or other financial instruments or
the occurrence of other specific events. The structured notes are often
leveraged, increasing the volatility of each note's market value relative to the
change in the underlying linked financial element or event. Fluctuations in
value of these securities are recorded as unrealized gains and losses in the
accompanying financial statements. The Fund records a realized gain or loss when
a structured note is sold or matures. As of June 30, 2004, the market value of
these securities comprised 3.3% of the Fund's net assets and resulted in
unrealized cumulative losses of $1,471,802.
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of June 30, 2004, the Fund had purchased $6,500,000
(principal amount) of securities on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of June 30, 2004, securities with an aggregate
market value of $40,617,863, representing 2.55% of the Fund's net assets, were
in default.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are
maintained in U.S. dollars. Prices of securities denominated in foreign
currencies are translated into U.S. dollars at the close of The New York Stock
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. Foreign exchange rates may be
51 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
valued primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
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. 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.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
52 | OPPENHEIMER HIGH YIELD FUND
NET UNREALIZED
DEPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
--------------------------------------------------------------------------
$ -- $ -- $ 564,993,016 $ 56,709,627
1. As of June 30, 2004, the Fund had $564,993,016 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of June 30, 2004, details
of the capital loss carryforwards were as follows:
EXPIRING
------------------------
2007 $ 30,649,297
2008 35,734,504
2009 57,513,604
2010 101,344,550
2011 284,056,063
2012 55,694,998
-------------
Total $ 564,993,016
=============
2. During the fiscal year ended June 30, 2004, the Fund did not utilize any
capital loss carryforward.
3. During the fiscal year ended June 30, 2003, the Fund did not utilize any
capital loss carryforward.
4. During the fiscal year ended June 30, 2004, $25,763,959 of unused capital
loss carryforward expired.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for June 30, 2004. Net assets of the
Fund were unaffected by the reclassifications.
REDUCTION TO
REDUCTION TO ACCUMULATED NET
REDUCTION TO PAID-IN ACCUMULATED NET REALIZED LOSS
CAPITAL INVESTMENT LOSS ON INVESTMENTS
--------------------------------------------------------
$ 26,251,186 $ 2,241,528 $ 24,009,658
The tax character of distributions paid during the years ended June 30, 2004 and
June 30, 2003 was as follows:
YEAR ENDED YEAR ENDED
JUNE 30, 2004 JUNE 30, 2003
--------------------------------------------------------
Distributions paid from:
Ordinary income $ 127,268,322 $ 111,966,603
Return of capital -- 15,723,628
-----------------------------
Total $ 127,268,322 $ 127,690,231
=============================
53 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of June 30, 2004 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 1,632,013,017
================
Gross unrealized appreciation $ 87,923,184
Gross unrealized depreciation (144,632,811)
----------------
Net unrealized depreciation $ (56,709,627)
================
- --------------------------------------------------------------------------------
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. For purposes of determining the amount owed to the
Trustee under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or in other Oppenheimer funds
selected by the Trustee. The Fund does purchase shares of the funds selected for
deferral by the Trustee in amounts equal to his or her deemed investment,
resulting in a Fund asset equal to the deferred compensation liability. Such
assets are included as a component of "Other" within the asset section of the
Statement of Assets and Liabilities. 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.
- --------------------------------------------------------------------------------
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 U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that
54 | OPPENHEIMER HIGH YIELD FUND
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:
YEAR ENDED JUNE 30, 2004 YEAR ENDED JUNE 30, 2003
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------
CLASS A
Sold 65,440,622 $ 609,447,561 87,336,667 $ 736,289,514
Dividends and/or
distributions reinvested 6,284,592 59,173,057 6,545,577 55,293,487
Redeemed (83,219,779) (774,711,207) (67,886,608) (576,089,416)
------------------------------------------------------------
Net increase (decrease) (11,494,565) $ (106,090,589) 25,995,636 $ 215,493,585
============================================================
- ---------------------------------------------------------------------------------------
CLASS B
Sold 10,475,101 $ 96,503,159 15,654,941 $ 130,451,578
Dividends and/or
distributions reinvested 1,439,766 13,343,552 1,761,918 14,661,070
Redeemed (20,508,450) (188,077,844) (15,888,264) (131,496,527)
------------------------------------------------------------
Net increase (decrease) (8,593,583) $ (78,231,133) 1,528,595 $ 13,616,121
============================================================
- ---------------------------------------------------------------------------------------
CLASS C
Sold 8,189,437 $ 76,360,660 9,967,771 $ 84,476,514
Dividends and/or
distributions reinvested 805,948 7,573,293 746,825 6,304,053
Redeemed (10,659,737) (98,705,074) (5,541,975) (46,746,056)
------------------------------------------------------------
Net increase (decrease) (1,664,352) $ (14,771,121) 5,172,621 $ 44,034,511
============================================================
- ---------------------------------------------------------------------------------------
CLASS N
Sold 1,242,698 $ 11,666,882 779,085 $ 6,484,742
Dividends and/or
distributions reinvested 73,083 691,810 45,571 390,759
Redeemed (1,279,807) (11,793,129) (194,820) (1,684,431)
------------------------------------------------------------
Net increase 35,974 $ 565,563 629,836 $ 5,191,070
============================================================
- ---------------------------------------------------------------------------------------
CLASS Y
Sold 3,378,069 $ 31,354,635 4,098,729 $ 34,534,730
Dividends and/or
distributions reinvested 463,551 4,327,419 474,376 3,979,861
Redeemed (3,690,109) (34,392,844) (3,119,654) (26,503,491)
------------------------------------------------------------
Net increase 151,511 $ 1,289,210 1,453,451 $ 12,011,100
============================================================
55 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS 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 year ended June 30, 2004, were $843,452,975
and $1,002,543,228, 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.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for
preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
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 year ended June 30, 2004, the Fund paid
$2,704,040 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $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.
- --------------------------------------------------------------------------------
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 all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
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 those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% per year on
Class B shares and on Class C shares and 0.25% per year on Class N shares. The
Distributor also receives a service fee of up to 0.25% per
56 | OPPENHEIMER HIGH YIELD FUND
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 June 30, 2004 for Class B, Class C and Class N shares were
$14,476,913, $3,525,683 and $162,918, 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
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ---------------------------------------------------------------------------------------------
June 30, 2004 $ 568,298 $ 220,234 $ 983,091 $ 24,734 $ 12,196
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. During the year ended June 30, 2004, OFS waived $13,981,
$4,334 $1,377, $240 and $91,966 for Class A, Class B, Class C, Class N and Class
Y shares, respectively. This undertaking may be amended or withdrawn at any
time.
- --------------------------------------------------------------------------------
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
57 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS Continued
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 June 30, 2004, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a negotiated price on a stipulated future
date. Futures contracts are traded on a commodity exchange. The Fund may buy and
sell futures contracts that relate to broadly based securities indices
(financial futures) or debt securities (interest rate futures) in order to gain
exposure to or protection from changes in market value of stocks 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 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 in the Statement of Operations as the closing and expiration of futures
contracts. The net change in unrealized appreciation and depreciation is
reported on the Statement of Operations.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of June 30, 2004, the Fund had no outstanding futures contracts.
- --------------------------------------------------------------------------------
7. INTEREST RATE SWAP CONTRACTS
The Fund may enter into an interest rate swap transaction to maintain a total
return or yield spread on a particular investment, or portion of its portfolio,
or for other non-speculative purposes. Interest rate swaps involve the exchange
of commitments to pay or receive interest, e.g., an exchange of floating rate
payments for fixed rate payments.
58 | OPPENHEIMER HIGH YIELD FUND
The coupon payments are based on an agreed upon principal amount and a specified
index. Because the principal amount is not exchanged, it represents neither an
asset nor a liability to either counterparty, and is referred to as notional.
The Fund records an increase or decrease to unrealized gain (loss), in the
amount due to or owed by the Fund at termination or settlement.
Interest rate swaps are subject to credit risk (if the counterparty fails
to meet its obligations) and interest rate risk. The Fund could be obligated to
pay more under its swap agreements than it receives under them, as a result of
interest rate changes.
As of June 30, 2004, the Fund had entered into the following interest rate swap
agreements:
FIXED FLOATING RATE
RATE PAID BY RECEIVED BY
THE FUND AT THE FUND AT
SWAP NOTIONAL JUNE 30, JUNE 30, FLOATING TERMINATION UNREALIZED
COUNTERPARTY AMOUNT 2004 2004 RATE INDEX DATES APPRECIATION
- ------------------------------------------------------------------------------------------------------
Three-Month
Deutsche Bank LIBOR
AG $ 36,000,000 3.19% 1.4275% rate 3/9/09 $ 1,472,623
Three-Month
Deutsche Bank LIBOR
AG 20,000,000 4.23 1.4275 rate 3/9/14 1,099,725
-----------
$ 2,572,348
===========
Index abbreviation is as follows:
LIBOR London-Interbank Offered Rate
- --------------------------------------------------------------------------------
8. ILLIQUID SECURITIES
As of June 30, 2004, 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 June 30,
2004 was $75,694,134, which represents 4.75% of the Fund's net assets.
- --------------------------------------------------------------------------------
9. 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.
59 | OPPENHEIMER HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. SECURITIES LENDING Continued
The Fund retains a portion of the interest earned from the collateral. The Fund
also continues to receive interest or dividends paid on the securities loaned.
As of June 30, 2004, the Fund had no securities on loan.
60 | OPPENHEIMER HIGH YIELD FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER HIGH YIELD FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer High Yield Fund, including the statement of investments, as of June
30, 2004, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for the periods indicated. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of June 30, 2004, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer High Yield Fund as of June 30, 2004, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
August 13, 2004
61 | OPPENHEIMER HIGH YIELD FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Dividends, if any, paid by the Fund during the fiscal year ended June 30,
2004 which are not designated as capital gain distributions should be multiplied
by 0.85% to arrive at the amount eligible for the corporate dividend-received
deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal
year ended June 30, 2004 which are not designated as capital gain distributions
are eligible for lower individual income tax rates to the extent that the Fund
has received qualified dividend income as stipulated by recent tax legislation.
$1,077,817 of the Fund's fiscal year taxable income may be eligible for the
lower individual income tax rates. In early 2005, shareholders of record will
receive information regarding the percentage of distributions that are eligible
for lower individual income tax rates.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (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 is 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
62 | OPPENHEIMER HIGH YIELD FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS;
FUND, LENGTH OF SERVICE, AGE OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE;
NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY
OVERSEEN BY TRUSTEE
THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS
INDEPENDENT 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924.
TRUSTEES EACH TRUSTEE SERVES FOR AN INDEFINITE TERM,
UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH
OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage
Vice Chairman (since 2003) banking companies: Cherry Creek Mortgage Company
and Trustee (since 1999) (since 1991), Centennial State Mortgage Company
Age: 67 (since 1994), The El Paso Mortgage Company (since
1993), Transland Financial Services, Inc. (since
1997); Chairman of the following private
companies: Great Frontier Insurance (insurance
agency) (since 1995), Ambassador Media
Corporation and Broadway Ventures (since 1984); a
director of the following public companies:
Helmerich & Payne, Inc. (oil and gas
drilling/production company) (since 1992) and
UNUMProvident (insurance company) (since 1991).
Mr. Armstrong is also a Director/Trustee of
Campus Crusade for Christ and the Bradley
Foundation. Formerly a director of the following:
Storage Technology Corporation (a publicly held
computer equipment company) (1991-February 2003),
and International Family Entertainment
(television channel) (1992-1997), Frontier Real
Estate, Inc. (residential real estate brokerage)
(1994-1999), and Frontier Title (title insurance
agency) (1995-June 1999); a U.S. Senator (January
1979-January 1991). Oversees 38 portfolios in the
OppenheimerFunds complex.
ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards
Trustee (since 1990) Capital, Inc. (General Partner of private equity
Age: 73 funds) (until February 2001); Chairman, President
and Chief Executive Officer of A.G. Edwards
Capital, Inc. (until March 2000); Vice Chairman
and Director of A.G. Edwards, Inc. and Vice
Chairman of A.G. Edwards & Sons, Inc. (its
brokerage company subsidiary) (until March 1999);
Chairman of A.G. Edwards Trust Company and A.G.E.
Asset Management (investment advisor) (until
March 1999); and a Director (until March 2000) of
A.G. Edwards & Sons and A.G. Edwards Trust
Company. Oversees 38 portfolios in the
OppenheimerFunds complex.
GEORGE C. BOWEN, Formerly Assistant Secretary and a director
Trustee (since 1998) (December 1991-April 1999) of Centennial Asset
Age: 67 Management Corporation; President, Treasurer and
a director (June 1989-April 1999) of Centennial
Capital Corporation; Chief Executive Officer and
a director of MultiSource Services, Inc. (March
1996-April 1999). Until April 1999 Mr. Bowen held
several positions in subsidiary or affiliated
companies of the Manager. Oversees 38 portfolios
in the OppenheimerFunds complex.
EDWARD L. CAMERON, A member of The Life Guard of Mount Vernon,
Trustee (since 2000) George Washington's home (since June 2000).
Age: 65 Formerly Director (March 2001-May 2002) of
Genetic ID, Inc. and its subsidiaries (a
privately held biotech company); a partner (July
1974-June 1999) with PricewaterhouseCoopers LLP
(an accounting firm); and Chairman (July 1994-
June 1998) of Price Waterhouse LLP Global
Investment Management Industry Services Group.
Oversees 38 portfolios in the OppenheimerFunds
complex.
JON S. FOSSEL, Director (since February 1998) of Rocky Mountain
Trustee (since 1990) Elk Foundation (a not-for-profit foundation); a
Age: 62 director (since 1997) of Putnam Lovell Finance
(finance company); a director (since June 2002)
of UNUMProvident (an insurance company). Formerly
a director (October 1999-October 2003) of P.R.
Pharmaceuticals (a privately held company);
Chairman and a director (until October 1996) and
President and Chief Executive Officer (until
October 1995) of the Manager; President, Chief
Executive Officer and a director (until October
1995) of Oppenheimer Acquisition Corp.,
Shareholders Services Inc. and Shareholder
Financial Services, Inc. Oversees 38 portfolios
in the OppenheimerFunds complex.
63 | OPPENHEIMER HIGH YIELD FUND
TRUSTEES AND OFFICERS Unaudited/Continued
- --------------------------------------------------------------------------------
SAM FREEDMAN, Director of Colorado Uplift (a non-profit
Trustee (since 1996) charity) (since September 1984). Formerly (until
Age: 63 October 1994) Mr. Freedman held several positions
in subsidiary or affiliated companies of the
Manager. Oversees 38 portfolios in the
OppenheimerFunds complex.
BEVERLY L. HAMILTON, Trustee of Monterey International Studies (an
Trustee (since 2002) educational organization) (since February 2000);
Age: 57 a director of The California Endowment (a
philanthropic organization) (since April 2002)
and of Community Hospital of Monterey Peninsula
(educational organization) (since February 2002);
a director of America Funds Emerging Markets
Growth Fund (since October 1991) (an investment
company); an advisor to Credit Suisse First
Boston's Sprout venture capital unit. Mrs.
Hamilton also is a member of the investment
committees of the Rockefeller Foundation and of
the University of Michigan. Formerly, Trustee of
MassMutual Institutional Funds (open-end
investment company) (1996-May 2004); a director
of MML Series Investment Fund (April 1989-May
2004) and MML Services (April 1987-May 2004)
(investment companies); member of the investment
committee (2000-2003) of Hartford Hospital; an
advisor (2000-2003) to Unilever (Holland)'s
pension fund; and President (February 1991-April
2000) of ARCO Investment Management Company.
Oversees 37 portfolios in the OppenheimerFunds
complex.
ROBERT J. MALONE, Director of Steele Street State Bank (a
Trustee (since 2002) commercial banking entity) (since August 2003),
Age: 59 Jones Knowledge, Inc. (a privately held company)
(since 2001), U.S. Exploration, Inc. (oil and gas
exploration) (since 1997) and Colorado UpLIFT (a
non-profit organization) (since 1986); a trustee
(since 2000) of the Gallagher Family Foundation
(non-profit organization). Formerly, Chairman of
U.S. Bank-Colorado (a subsidiary of U.S. Bancorp
and formerly Colorado National Bank,) (July
1996-April 1, 1999) and a director of Commercial
Assets, Inc. (a REIT) (1993-2000). Oversees 37
portfolios in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Institutional Funds (since
Trustee (since 2000) 1996) and MML Series Investment Fund (since 1987)
Age: 62 (both open-end investment companies) and the
Springfield Library and Museum Association (since
1995) (museums) and the Community Music School of
Springfield (music school) (since 1996); Trustee
(since 1987), Chairman of the Board (since 2003)
and Chairman of the investment committee (since
1994) for the Worcester Polytech Institute
(private university); and President and Treasurer
(since January 1999) of the SIS Fund (a private
not for profit charitable fund). Formerly, member
of the investment committee of the Community
Foundation of Western Massachusetts (1998 -
2003); Chairman (January 1999-July 1999) of SIS &
Family Bank, F.S.B. (formerly SIS Bank)
(commercial bank); and Executive Vice President
(January 1999-July 1999) of Peoples Heritage
Financial Group, Inc. (commercial bank). Oversees
38 portfolios in the OppenheimerFunds complex.
64 | OPPENHEIMER HIGH YIELD FUND
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS;
AND OFFICER OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE;
NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY
OVERSEEN BY TRUSTEE
THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS
TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY
SERVES FOR AN INDEFINITE TERM, UNTIL HIS
RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director
President and Trustee (since June 2001) and President (since September
(since 2001) 2000) of the Manager; President and a director or
Age: 55 trustee of other Oppenheimer funds; President and
a director (since July 2001) of Oppenheimer
Acquisition Corp. (the Manager's parent holding
company) and of Oppenheimer Partnership Holdings,
Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of
OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Chairman and a director (since
July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and
a director (since July 2001) of OppenheimerFunds
Legacy Program (a charitable trust program
established by the Manager); a director of the
following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management,
Inc., Centennial Asset Management Corporation,
Trinity Investment Management Corporation and
Tremont Capital Management, Inc. (since November
2001), HarbourView Asset Management Corporation
and OFI Private Investments, Inc. (since July
2001); President (since November 1, 2001) and a
director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; Executive Vice President
(since February 1997) of Massachusetts Mutual
Life Insurance Company (the Manager's parent
company); a director (since June 1995) of DLB
Acquisition Corporation (a holding company that
owns the shares of Babson Capital Management
LLC); a member of the Investment Company
Institute's Board of Governors (elected to serve
from October 3, 2003 through September 30, 2006).
Formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and
trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual
Institutional Funds (open-end investment
companies); a director (September 1999-August
2000) of C.M. Life Insurance Company; President,
Chief Executive Officer and director (September
1999-August 2000) of MML Bay State Life Insurance
Company; a director (June 1989-June 1998) of
Emerald Isle Bancorp and Hibernia Savings Bank (a
wholly-owned subsidiary of Emerald Isle Bancorp).
Oversees 73 portfolios as Trustee/Director and 10
portfolios as Officer in the OppenheimerFunds
complex.
- --------------------------------------------------------------------------------
OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS
AS FOLLOWS: FOR MR. KOURKOULAKOS AND ZACK, TWO
WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH
FLOOR, NEW YORK, NY 10281-1008, FOR MR. WIXTED
AND MR. VANDEHEY, 6803 S. TUCSON WAY, CENTENNIAL,
CO 80112-3924. EACH OFFICER SERVES FOR AN ANNUAL
TERM OR UNTIL HIS OR HER EARLIER RESIGNATION,
DEATH OR REMOVAL.
DIMITRIOS KOURKOULAKOS, Vice President of the Manager since December
Vice President (since 2002) 2001; an officer of 3 portfolios in the
Age: 37 OppenheimerFunds complex; formerly a High Yield
Analyst (1998 - 2001) and a Securities Analyst
(1995 - 1998) of the Manager.
65 | OPPENHEIMER HIGH YIELD FUND
TRUSTEES AND OFFICERS Unaudited/Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer of HarbourView
Age: 44 Asset Management Corporation, Shareholder
Financial Services, Inc., Shareholder Services,
Inc., Oppenheimer Real Asset Management
Corporation, and Oppenheimer Partnership
Holdings, Inc. (since March 1999), of OFI Private
Investments, Inc. (since March 2000), of
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (since May 2000), of OFI
Institutional Asset Management, Inc. (since
November 2000), and of OppenheimerFunds Legacy
Program (a Colorado non-profit corporation)
(since June 2003); Treasurer and Chief Financial
Officer (since May 2000) of OFI Trust Company (a
trust company subsidiary of the Manager);
Assistant Treasurer (since March 1999) of
Oppenheimer Acquisition Corp. Formerly Assistant
Treasurer of Centennial Asset Management
Corporation (March 1999-October 2003) and
OppenheimerFunds Legacy Program (April 2000-June
2003); Principal and Chief Operating Officer
(March 1995-March 1999) at Bankers Trust
Company-Mutual Fund Services Division. An officer
of 83 portfolios in the OppenheimerFunds
complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and
Vice President & Secretary General Counsel (since February 2002) of the
(since 2001) Manager; General Counsel and a director (since
Age: 56 November 2001) of the Distributor; General
Counsel (since November 2001) of Centennial Asset
Management Corporation; Senior Vice President and
General Counsel (since November 2001) of
HarbourView Asset Management Corporation;
Secretary and General Counsel (since November
2001) of Oppenheimer Acquisition Corp.; Assistant
Secretary and a director (since October 1997) of
OppenheimerFunds International Ltd. and
OppenheimerFunds plc; Vice President and a
director (since November 2001) of Oppenheimer
Partnership Holdings, Inc.; a director (since
November 2001) of Oppenheimer Real Asset
Management, Inc.; Senior Vice President, General
Counsel and a director (since November 2001) of
Shareholder Financial Services, Inc., Shareholder
Services, Inc., OFI Private Investments, Inc. and
OFI Trust Company; Vice President (since November
2001) of OppenheimerFunds Legacy Program; Senior
Vice President and General Counsel (since
November 2001) of OFI Institutional Asset
Management, Inc.; a director (since June 2003) of
OppenheimerFunds (Asia) Limited. Formerly Senior
Vice President (May 1985-December 2003), Acting
General Counsel (November 2001-February 2002) and
Associate General Counsel (May 1981-October 2001)
of the Manager; Assistant Secretary of
Shareholder Services, Inc. (May 1985 November
2001), Shareholder Financial Services, Inc.
(November 1989-November 2001); and
OppenheimerFunds International Ltd. (October
1997-November 2001). An officer of 83 portfolios
in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance
Vice President (since 2004) Officer (since March 2004) of the Manager; Vice
Age: 53 President (since June 1983) of OppenheimerFunds
Distributor, Inc., Centennial Asset Management
Corporation and Shareholder Services, Inc.
Formerly (until February 2004) Vice President and
Director of Internal Audit of OppenheimerFunds,
Inc. An officer of 83 portfolios in the
OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
66 | 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 registrant 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
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $38,000 in fiscal 2004 and $37,000 in
fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $5,525 in fiscal 2004 and $51,734 in
fiscal 2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: due diligence related to
mergers and acquisitions, accounting consultations and audits in
connection with acquisitions, internal control reviews and
consultation concerning financial accounting and reporting
standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $0 in fiscal 2004 and $7,370 in fiscal
2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice includes assistance with tax audits and appeals, tax advice
related to mergers and acquisitions and requests for rulings or
technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $0 in fiscal 2004 and $3,500 in fiscal
2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include services provided to the registrant's
Board of Trustees with respect to the annual renewal of the
registrant's investment advisory agreement.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next
regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more
than five percent of the total amount of fees paid by the
registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized
by the registrant at the time of engagement as non-audit services
and 3) such services are promptly brought to the attention of the
audit committee of the registrant and approved prior to the
completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $5,525 in fiscal 2004 and $62,604 in
fiscal 2003 to the registrant and the registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant related to non-audit fees. Those billings did not
include any prohibited non-audit services as defined by the
Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal account's independence. No such services
were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Board is responsible for approving nominees for election as
trustees. To assist in this task, the Board has designated the Audit Committee
as the nominating committee for the Board. It reviews and recommends nominees to
the Board. The Committee is comprised entirely of disinterested trustees as
defined in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the Committee in
nominating candidates for election as independent Trustees of the Registrant.
The Registrant's Board has adopted a written charter for the Committee. A
current copy of the Audit Committee charter is available to shareholders on the
OppenheimerFunds website at www.oppenheimerfunds.com.
Under the current policy, if the Board determines that a vacancy exists or is
likely to exist on the Board, the Audit Committee of the Board will consider
candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors. The
Committee may, upon Board approval, retain an executive search firm to assist in
screening potential candidates. Upon Board approval, the Audit Committee may
also use the services of legal, financial, or other external counsel that it
deems necessary or desirable in the screening process. Shareholders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO
80112, to the attention of the Board of Trustees of the named Registrant, c/o
the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for trustees
includes a number of factors. In screening candidates for board membership,
whether the candidate is suggested by Board members, shareholders or others, the
Committee considers the candidate's professional experience, soundness of
judgment, integrity, ability to make independent, analytical inquiries,
collegiality, willingness and ability to devote the time required to perform
Board activities adequately, ability to represent the interests of all
shareholders of the Registrant, and diversity relative to the board's
composition. Candidates are expected to provide a mix of attributes, experience,
perspective and skills necessary to effectively advance the interests of
shareholders.
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 June 30, 2004,
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)