UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5473
OPPENHEIMER MULTI-SECTOR INCOME TRUST
-------------------------------------
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(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
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Date of fiscal year end: OCTOBER 31
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Date of reporting period: NOVEMBER 1, 2004 - APRIL 30, 2005
---------------------------------
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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INVESTMENT BREAKDOWN
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
International 45.9%
Corporate 28.5
Asset-Backed 17.2
U.S. Government 5.3
Money Market 3.1
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on total investment.
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8 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS April 30, 2005 / Unaudited
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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U.S. GOVERNMENT SECTOR--5.6%
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U.S. GOVERNMENT OBLIGATIONS--5.6%
Fannie Mae Unsec. Nts., 3.69%, 10/5/07 1,2 $ 4,845,000 $ 4,405,999
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Federal Home Loan Mortgage Corp. Nts., 3.75%, 7/15/09 3 [EUR] 470,000 627,320
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Federal National Mortgage Assn. Unsec. Nts.:
1.80%, 5/27/05 3 550,000 549,506
3.75%, 5/17/07 4 480,000 478,039
4.25%, 7/15/07 4 505,000 508,794
7.25%, 5/15/30 4 270,000 358,801
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Resolution Funding Corp. STRIPS, 5.85%, 1/15/21 1 715,000 338,407
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Tennessee Valley Authority Bonds:
7.125%, 5/1/30 115,000 151,363
Series A, 6.79%, 5/23/12 6,927,000 7,920,837
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U.S. Treasury Bonds, 5.50%, 8/15/28 2,4 152,000 171,202
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Total U.S. Government Sector (Cost $15,470,243) 15,510,268
SHARES
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CORPORATE SECTOR--30.3%
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COMMON STOCKS--0.6%
Broadwing Corp. 5 369 1,358
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Cebridge Connections Holding LLC 5 793 --
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Covad Communications Group, Inc. 5 6,198 7,035
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Crunch Equity Holdings, Cl. A 5,6 120 156,133
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Dobson Communications Corp., Cl. A 5 34,718 69,436
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Equinix, Inc.5 3,873 135,478
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Globix Corp. 6,880 23,048
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ICO Global Communication Holdings Ltd. 5 24,061 72,183
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Leap Wireless International, Inc. 5 1,501 35,634
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Manitowoc Co., Inc. (The) 173 6,920
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MCI, Inc. 815 21,622
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NTL, Inc. 5 3,879 248,178
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Orbital Sciences Corp. 5 651 6,067
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Pioneer Cos., Inc. 5 5,655 122,148
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Polymer Group, Inc., Cl. A 5 8,013 178,289
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Prandium, Inc. 5,6 14,499 188
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Star Gas Partners LP 220 451
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Sterling Chemicals, Inc. 5,6 264 7,920
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TVMAX Holdings, Inc. 5,6 2,500 13,750
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UnitedGlobalCom, Inc., Cl. A 5 53,053 474,824
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WRC Media Corp. 5,6 676 14
9 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS Continued
XO Communications, Inc. 5 1,091 $ 2,182
----------------
1,582,858
PRINCIPAL
AMOUNT
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CORPORATE BONDS AND NOTES--28.7%
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CONSUMER DISCRETIONARY--8.8%
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AUTO COMPONENTS--0.8%
Accuride Corp., 8.50% Sr. Sub. Nts., 2/1/15 7 $ 70,000 66,150
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ArvinMeritor, Inc., 8.75% Sr. Unsec. Unsub. Nts., 3/1/12 300,000 281,250
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Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts., Series B, 2/15/10 200,000 211,000
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Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11 50,000 37,375
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Cooper Standard Automotive Group:
7% Sr. Nts., 12/15/12 7 30,000 25,950
8.375% Sr. Sub. Nts., 12/15/14 7 250,000 183,750
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Dura Operating Corp.:
8.625% Sr. Nts., Series B, 4/15/12 100,000 85,500
9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 300,000 212,250
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Eagle-Picher, Inc., 9.75% Sr. Nts., 9/1/13 5,8 200,000 125,000
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Goodyear Tire & Rubber Co. (The), 7.857% Nts., 8/15/11 275,000 248,875
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Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 200,000 213,000
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Tenneco Automotive, Inc.:
8.625% Sr. Sub. Nts., 11/15/14 7 200,000 183,500
10.25% Sr. Sec. Nts., Series B, 7/15/13 100,000 109,750
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United Components, Inc., 9.375% Sr. Sub. Nts., 6/15/13 100,000 92,500
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Visteon Corp., 7% Sr. Unsec. Nts., 3/10/14 75,000 52,688
----------------
2,128,538
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AUTOMOBILES--0.0%
Navistar International Corp., 6.25% Sr. Nts., 3/1/12 7 70,000 61,950
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HOTELS, RESTAURANTS & LEISURE--2.2%
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 400,000 394,000
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Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 250,000 268,750
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Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 200,000 216,500
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Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 5,6,8 5,500 --
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Carrols Corp., 9% Sr. Sub. Nts., 1/15/13 7 45,000 46,350
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Domino's, Inc., 8.25% Sr. Unsec. Sub. Nts., 7/1/11 145,000 152,250
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Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12 200,000 217,500
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John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B, 5/15/12 200,000 214,000
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La Quinta Properties, Inc., 7% Sr. Sec. Nts., 8/15/12 75,000 76,875
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Mandalay Resort Group, 10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07 500,000 551,250
10 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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HOTELS, RESTAURANTS & LEISURE Continued
MGM Mirage, Inc.:
5.875% Sr. Nts., 2/27/14 $ 200,000 $ 188,250
9.75% Sr. Unsec. Sub. Nts., 6/1/07 150,000 162,375
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Mohegan Tribal Gaming Authority:
6.125% Sr. Nts., 2/15/13 7 70,000 69,300
6.375% Sr. Sub. Nts., 7/15/09 150,000 150,375
6.875% Sr. Sub. Nts., 2/15/15 7 100,000 99,000
8% Sr. Sub. Nts., 4/1/12 100,000 106,750
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Penn National Gaming, Inc.:
6.75% Sr. Sub. Nts., 3/1/15 7 70,000 67,375
8.875% Sr. Sub. Nts., 3/15/10 300,000 319,875
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Pinnacle Entertainment, Inc., 8.25% Sr. Unsec. Sub. Nts., 3/15/12 325,000 320,125
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Six Flags, Inc.:
8.875% Sr. Unsec. Nts., 2/1/10 450,000 397,125
9.625% Sr. Nts., 6/1/14 9,000 7,650
9.75% Sr. Nts., 4/15/13 50,000 44,000
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Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr. Nts., 5/1/12 400,000 440,500
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Station Casinos, Inc., 6.50% Sr. Unsec. Sub. Nts., 2/1/14 500,000 501,250
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Universal City Development Partners Ltd., 11.75% Sr. Nts., 4/1/10 200,000 227,500
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Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 6.625% Nts., 12/1/14 7 750,000 705,000
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5,943,925
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HOUSEHOLD DURABLES--1.2%
Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 500,000 532,500
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Blount, Inc., 8.875% Sr. Sub. Nts., 8/1/12 125,000 129,375
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D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 2 500,000 587,948
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K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12 300,000 321,000
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KB Home:
8.625% Sr. Sub. Nts., 12/15/08 500,000 547,246
9.50% Sr. Unsec. Sub. Nts., 2/15/11 500,000 541,269
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Meritage Homes Corp., 6.25% Sr. Nts., 3/15/15 7 70,000 64,750
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Sealy Mattress Co., 8.25% Sr. Sub. Nts., 6/15/14 175,000 177,625
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Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 100,000 110,500
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WCI Communities, Inc., 9.125% Sr. Sub. Nts., 5/1/12 200,000 210,000
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William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 200,000 212,000
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3,434,213
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LEISURE EQUIPMENT & PRODUCTS--0.0%
Leslie's Poolmart, Inc., 7.75% Sr. Nts., 2/1/13 7 75,000 74,625
11 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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MEDIA--4.0%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 5,8 $ 250,000 $ 215,000
9.875% Sr. Nts., Series B, 3/1/07 5,8 300,000 261,750
10.25% Sr. Unsec. Nts., 11/1/06 5,8 100,000 86,000
10.25% Sr. Unsec. Sub. Nts., 6/15/11 5,8 200,000 181,000
10.875% Sr. Unsec. Nts., 10/1/10 5,8 100,000 88,000
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Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/12 150,000 143,625
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AMC Entertainment, Inc.:
8% Sr. Unsec. Sub. Nts., 3/1/14 100,000 91,000
9.50% Sr. Unsec. Sub. Nts., 2/1/11 360,000 358,200
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Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 200,000 211,500
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Charter Communications Holdings LLC/Charter Communications
Holdings Capital Corp.:
0%/11.75% Sr. Unsec. Sub. Disc. Nts., 5/15/11 9 175,000 112,438
8.375% Sr. Nts., Second Lien, 4/30/14 7 1,500,000 1,447,500
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Cinemark USA, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/13 100,000 106,250
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Cinemark, Inc., 0%/9.75% Sr. Unsec. Disc. Nts., 3/15/14 9 200,000 138,500
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CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B, 4/1/11 425,000 433,500
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Dex Media East LLC/Dex Media East Finance Co., 9.875% Sr. Unsec.
Nts., 11/15/09 100,000 110,000
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Dex Media West LLC/Dex Media West Finance Co.:
5.875% Sr. Nts., 11/15/11 300,000 291,000
8.50% Sr. Nts., 8/15/10 150,000 161,625
9.875% Sr. Sub. Nts., 8/15/13 293,000 326,695
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Dex Media, Inc., 8% Unsec. Nts., 11/15/13 150,000 155,250
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DirecTV Holdings LLC/DirecTV Financing Co., Inc., 8.375% Sr.
Unsec. Nts., 3/15/13 475,000 516,563
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EchoStar DBS Corp., 6.625% Sr. Nts., 10/1/14 7 575,000 560,625
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Entravision Communications Corp., 8.125% Sr. Sub. Nts., 3/15/09 100,000 103,500
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Granite Broadcasting Corp., 9.75% Sr. Sec. Nts., 12/1/10 9,000 8,258
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Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 150,000 144,375
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LodgeNet Entertainment Corp., 9.50% Sr. Sub. Debs., 6/15/13 100,000 108,000
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Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13 359,000 345,538
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MediaNews Group, Inc., 6.875% Sr. Unsec. Sub. Nts., 10/1/13 100,000 97,500
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News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 380,000 495,885
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PanAmSat Corp., 9% Sr. Unsec. Nts., 8/15/14 228,000 238,260
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PRIMEDIA, Inc.:
8% Sr. Nts., 5/15/13 300,000 303,000
8.875% Sr. Unsec. Nts., 5/15/11 9,000 9,360
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R.H. Donnelley Financial Corp. I, 10.875% Sr. Sub. Nts., 12/15/12 7 200,000 229,500
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Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 200,000 215,000
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Rainbow National Services LLC, 8.75% Sr. Nts., 9/1/12 7 300,000 322,500
12 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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MEDIA Continued
Sinclair Broadcast Group, Inc.:
8% Sr. Unsec. Sub. Nts., 3/15/12 $ 1,200,000 $ 1,197,000
8.75% Sr. Sub. Nts., 12/15/11 300,000 308,250
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Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub. Nts., 11/1/09 300,000 314,625
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Vertis, Inc., 9.75% Sr. Sec. Nts., 4/1/09 100,000 100,500
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WMG Holdings Corp.:
0%/9.50% Sr. Disc. Nts., 12/15/14 7,9 420,000 281,400
7.385% Sr. Nts., 12/15/11 7,10 60,000 62,100
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WRC Media, Inc./Weekly Reader Corp./CompassLearning, Inc.,
12.75% Sr. Sub. Nts., 11/15/09 300,000 291,000
----------------
11,171,572
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MULTILINE RETAIL--0.1%
Saks, Inc., 9.875% Nts., 10/1/11 200,000 216,000
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SPECIALTY RETAIL--0.1%
Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 200,000 198,000
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Boise Cascade LLC, 7.125% Sr. Sub. Nts., 10/15/14 7 150,000 143,250
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Finlay Fine Jewelry Corp., 8.375% Sr. Unsec. Nts., 6/1/12 50,000 44,250
----------------
385,500
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TEXTILES, APPAREL & LUXURY GOODS--0.4%
Invista, Inc., 9.25% Sr. Nts., 5/1/12 7 400,000 428,500
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Levi Strauss & Co.:
7.73% Sr. Nts., 4/1/12 7,10 145,000 134,125
12.25% Sr. Nts., 12/15/12 125,000 133,125
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Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 150,000 156,000
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Russell Corp., 9.25% Sr. Nts., 5/1/10 100,000 104,250
----------------
956,000
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CONSUMER STAPLES--1.0%
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BEVERAGES--0.0%
Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12 100,000 103,000
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FOOD & STAPLES RETAILING--0.2%
Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11 209,000 208,478
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Rite Aid Corp.:
8.125% Sr. Sec. Nts., 5/1/10 250,000 245,000
9.50% Sr. Sec. Nts., 2/15/11 100,000 102,000
----------------
555,478
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FOOD PRODUCTS--0.6%
Chiquita Brands International, Inc., 7.50% Sr. Unsec. Nts., 11/1/14 50,000 46,000
13 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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FOOD PRODUCTS Continued
Del Monte Corp.:
6.75% Sr. Sub. Nts., 2/15/15 7 $ 60,000 $ 57,900
8.625% Sr. Sub. Nts., 12/15/12 200,000 215,000
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Doane Pet Care Co., 10.75% Sr. Nts., 3/1/10 375,000 395,625
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Dole Food Co., Inc., 8.875% Sr. Unsec. Nts., 3/15/11 18,000 19,170
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Hines Nurseries, Inc., 10.25% Sr. Unsec. Sub. Nts., 10/1/11 100,000 105,500
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Pinnacle Foods Holding Corp., 8.25% Sr. Sub. Nts., 12/1/13 200,000 167,000
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Smithfield Foods, Inc.:
7.625% Sr. Unsec. Sub. Nts., 2/15/08 400,000 417,000
8% Sr. Nts., Series B, 10/15/09 300,000 322,500
----------------
1,745,695
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HOUSEHOLD PRODUCTS--0.2%
Church & Dwight Co., Inc., 6% Sr. Sub. Nts., 12/15/12 7 100,000 97,500
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Playtex Products, Inc., 8% Sr. Sec. Nts., 3/1/11 300,000 321,750
----------------
419,250
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ENERGY--2.0%
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ENERGY EQUIPMENT & SERVICES--0.1%
Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 100,000 105,000
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Universal Compression, Inc., 7.25% Sr. Unsec. Sub. Nts., 5/15/10 200,000 204,000
----------------
309,000
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OIL & GAS--1.9%
Chesapeake Energy Corp.:
6.375% Sr. Nts., 6/15/15 7 100,000 98,500
6.875% Sr. Unsec. Nts., 1/15/16 336,000 336,000
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Delta Petroleum Corp., 7% Sr. Nts., 4/1/15 7 60,000 57,000
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El Paso Corp., 7.875% Sr. Unsec. Nts., 6/15/12 959,000 942,218
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El Paso Production Holding Co., 7.75% Sr. Unsec. Nts., 6/1/13 775,000 784,688
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Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 200,000 210,000
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Frontier Oil Corp., 6.625% Sr. Unsec. Nts., 10/1/11 75,000 74,625
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Newfield Exploration Co., 6.625% Sr. Unsec. Sub. Nts., 9/1/14 200,000 199,000
- ----------------------------------------------------------------------------------------------------------------------
Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 500,000 570,000
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Range Resources Corp., 6.375% Sr. Sub. Nts., 3/15/15 7 70,000 67,900
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Stone Energy Corp., 6.75% Sr. Unsec. Sub. Nts., 12/15/14 160,000 152,800
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Tesoro Petroleum Corp.:
8% Sr. Sec. Nts., 4/15/08 100,000 105,250
9.625% Sr. Sub. Nts., 4/1/12 9,000 9,990
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Williams Cos., Inc. (The):
7.625% Nts., 7/15/19 800,000 862,000
8.75% Unsec. Nts., 3/15/32 500,000 577,500
14 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
OIL & GAS Continued
XTO Energy, Inc., 7.50% Sr. Nts., 4/15/12 $ 100,000 $ 115,451
----------------
5,162,922
- ----------------------------------------------------------------------------------------------------------------------
FINANCIALS--1.2%
- ----------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS--0.4%
American Color Graphics, Inc., 10% Sr. Sec. Nts., 6/15/10 100,000 64,500
- ----------------------------------------------------------------------------------------------------------------------
BCP Crystal US Holdings Corp., 9.625% Sr. Sub. Nts., 6/15/14 325,000 359,938
- ----------------------------------------------------------------------------------------------------------------------
Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 200,000 222,000
- ----------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 6 800,000 484,000
----------------
1,130,438
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS--0.1%
Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12 300,000 327,000
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.2%
Affinia Group, Inc., 9% Sr. Sub. Nts., 11/30/14 7 75,000 67,125
- ----------------------------------------------------------------------------------------------------------------------
AIG SunAmerica Global Financing II, 7.60% Sr. Sec. Nts., 6/15/05 7 80,000 80,376
- ----------------------------------------------------------------------------------------------------------------------
American Commercial Lines LLC/American Commercial Lines
Finance Corp., 9.50% Sr. Nts., 2/15/15 7 45,000 45,900
- ----------------------------------------------------------------------------------------------------------------------
Crystal US Holdings 3 LLC/Crystal US Sub 3 Corp., 0%/10.50% Sr.
Disc. Nts., Series B, 10/1/14 7,9 190,000 124,450
- ----------------------------------------------------------------------------------------------------------------------
Universal City Florida:
7.493% Sr. Nts., 5/1/10 7,10 50,000 52,125
8.375% Sr. Nts., 5/1/10 7 50,000 51,000
----------------
420,976
- ----------------------------------------------------------------------------------------------------------------------
REAL ESTATE--0.5%
Felcor Lodging LP, 9% Sr. Nts., 6/1/11 294,000 316,050
- ----------------------------------------------------------------------------------------------------------------------
Host Marriott LP:
6.375% Sr. Nts., 3/15/15 7 165,000 157,781
9.50% Sr. Nts., 1/15/07 400,000 428,000
- ----------------------------------------------------------------------------------------------------------------------
MeriStar Hospitality Corp., 9.125% Sr. Unsec. Nts., 1/15/11 359,000 362,590
- ----------------------------------------------------------------------------------------------------------------------
Trustreet Properties, Inc., 7.50% Sr. Nts., 4/1/15 7 120,000 120,900
----------------
1,385,321
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE--2.6%
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.1%
Fisher Scientific International, Inc., 8.125% Sr. Sub. Nts., 5/1/12 174,000 193,826
- ----------------------------------------------------------------------------------------------------------------------
Inverness Medical Innovations, Inc., 8.75% Sr. Sub. Nts., 2/15/12 150,000 148,500
----------------
342,326
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--2.5%
Alderwoods Group, Inc., 7.75% Sr. Nts., 9/15/12 7 150,000 156,000
15 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
AmeriPath, Inc., 10.50% Sr. Unsec. Sub. Nts., 4/1/13 $ 100,000 $ 100,500
- ----------------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., 6.50% Sr. Unsec. Sub. Nts., 12/15/12 150,000 147,750
- ----------------------------------------------------------------------------------------------------------------------
Coventry Health Care, Inc., 6.125% Sr. Nts., 1/15/15 6 70,000 70,000
- ----------------------------------------------------------------------------------------------------------------------
DaVita, Inc.:
6.625% Sr. Nts., 3/15/13 7 145,000 144,275
7.25% Sr. Sub. Nts., 3/15/15 7 115,000 112,413
- ----------------------------------------------------------------------------------------------------------------------
Extendicare Health Services, Inc., 9.50% Sr. Unsec. Sub. Nts., 7/1/10 100,000 109,125
- ----------------------------------------------------------------------------------------------------------------------
Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08 900,000 938,250
- ----------------------------------------------------------------------------------------------------------------------
HCA, Inc.:
6.30% Sr. Unsec. Nts., 10/1/12 550,000 555,841
6.375% Nts., 1/15/15 600,000 605,165
- ----------------------------------------------------------------------------------------------------------------------
HealthSouth Corp.:
7.625% Nts., 6/1/12 800,000 772,000
10.75% Sr. Unsec. Sub. Nts., 10/1/08 9,000 9,270
- ----------------------------------------------------------------------------------------------------------------------
Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts., Series B, 8/15/12 200,000 203,000
- ----------------------------------------------------------------------------------------------------------------------
NDCHealth Corp., 10.50% Sr. Unsec. Sub. Nts., 12/1/12 600,000 636,000
- ----------------------------------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub. Nts., 6/1/09 259,000 288,785
- ----------------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp., 10% Sr. Sub. Nts., 10/1/13 150,000 162,750
- ----------------------------------------------------------------------------------------------------------------------
Rotech Healthcare, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/12 400,000 432,000
- ----------------------------------------------------------------------------------------------------------------------
Select Medical Corp., 7.625% Sr. Sub. Nts., 2/1/15 7 145,000 143,188
- ----------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.:
6.375% Sr. Nts., 12/1/11 387,000 361,845
7.375% Nts., 2/1/13 9,000 8,483
9.875% Sr. Nts., 7/1/14 250,000 258,125
- ----------------------------------------------------------------------------------------------------------------------
Triad Hospitals, Inc.:
7% Sr. Nts., 5/15/12 200,000 206,000
7% Sr. Sub. Nts., 11/15/13 200,000 200,500
- ----------------------------------------------------------------------------------------------------------------------
US Oncology, Inc.:
9% Sr. Unsec. Nts., 8/15/12 100,000 105,000
10.75% Sr. Unsec. Sub. Nts., 8/15/14 100,000 108,000
----------------
6,834,265
- ----------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--0.0%
Warner Chilcott Corp., 8.75% Sr. Sub. Nts., 2/1/15 7 70,000 68,950
- ----------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--2.2%
- ----------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--0.5%
Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts., 5/15/11 200,000 213,500
- ----------------------------------------------------------------------------------------------------------------------
BE Aerospace, Inc.:
8.50% Sr. Unsec. Nts., 10/1/10 100,000 108,000
8.875% Sr. Unsec. Sub. Nts., 5/1/11 209,000 211,613
- ----------------------------------------------------------------------------------------------------------------------
L-3 Communications Corp., 5.875% Sr. Sub. Nts., 1/15/15 208,000 199,160
- ----------------------------------------------------------------------------------------------------------------------
Rexnord Corp., 10.125% Sr. Unsec. Sub. Nts., 12/15/12 150,000 161,250
16 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
TD Funding Corp., 8.375% Sr. Sub. Nts., 7/15/11 $ 200,000 $ 205,000
- ----------------------------------------------------------------------------------------------------------------------
TRW Automotive, Inc.:
9.375% Sr. Nts., 2/15/13 134,000 139,360
11% Sr. Sub. Nts., 2/15/13 97,000 104,760
- ----------------------------------------------------------------------------------------------------------------------
Vought Aircraft Industries, Inc., 8% Sr. Nts., 7/15/11 100,000 95,500
----------------
1,438,143
- ----------------------------------------------------------------------------------------------------------------------
AIRLINES--0.2%
ATA Holdings Corp., 13% Sr. Unsec. Nts., 2/1/09 5,8 1,260,000 544,950
- ----------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--0.1%
Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 100,000 106,750
- ----------------------------------------------------------------------------------------------------------------------
Goodman Global Holding Co., Inc., 7.875% Sr. Sub. Nts., 12/15/12 7 60,000 53,100
- ----------------------------------------------------------------------------------------------------------------------
Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts., 7/1/10 156,000 167,700
----------------
327,550
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.5%
Allied Waste North America, Inc., 7.375% Sr. Sec. Nts., Series B, 4/15/14 500,000 440,000
- ----------------------------------------------------------------------------------------------------------------------
Cenveo Corp., 7.875% Sr. Sub. Nts., 12/1/13 200,000 188,500
- ----------------------------------------------------------------------------------------------------------------------
Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 200,000 204,000
- ----------------------------------------------------------------------------------------------------------------------
Corrections Corp. of America, 6.25% Sr. Nts., 3/15/13 7 145,000 140,650
- ----------------------------------------------------------------------------------------------------------------------
Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 300,000 321,000
- ----------------------------------------------------------------------------------------------------------------------
Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 100,000 107,750
----------------
1,401,900
- ----------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.0%
URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 64,000 72,640
- ----------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.2%
Belden & Blake Corp., 8.75% Sec. Nts., 7/15/12 50,000 45,500
- ----------------------------------------------------------------------------------------------------------------------
Tennessee Gas Pipeline Co., 7% Sr. Unsec. Debs., 10/15/28 400,000 396,588
----------------
442,088
- ----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.0%
Great Lakes Dredge & Dock Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/13 30,000 23,775
- ----------------------------------------------------------------------------------------------------------------------
MACHINERY--0.5%
AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 500,000 526,250
- ----------------------------------------------------------------------------------------------------------------------
Case New Holland, Inc., 9.25% Sr. Nts., 8/1/11 7 75,000 76,875
- ----------------------------------------------------------------------------------------------------------------------
Douglas Dynamics LLC, 7.75% Sr. Nts., 1/15/12 7 100,000 98,500
- ----------------------------------------------------------------------------------------------------------------------
Dresser-Rand Group, Inc., 7.375% Sr. Sub. Nts., 11/1/14 7 40,000 39,200
- ----------------------------------------------------------------------------------------------------------------------
Milacron Escrow Corp., 11.50% Sr. Sec. Nts., 5/15/11 300,000 322,500
- ----------------------------------------------------------------------------------------------------------------------
NMHG Holding Co., 10% Sr. Nts., 5/15/09 100,000 108,250
- ----------------------------------------------------------------------------------------------------------------------
Terex Corp., 9.25% Sr. Unsec. Sub. Nts., 7/15/11 200,000 218,000
17 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
MACHINERY Continued
Trinity Industries, Inc., 6.50% Sr. Nts., 3/15/14 $ 150,000 $ 144,750
----------------
1,534,325
- ----------------------------------------------------------------------------------------------------------------------
ROAD & RAIL--0.1%
Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 200,000 203,000
- ----------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.1%
United Rentals, Inc., 7% Sr. Sub. Nts., 2/15/14 300,000 271,500
- ----------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--1.1%
- ----------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--0.3%
Lucent Technologies, Inc., 6.45% Unsec. Debs., 3/15/29 300,000 254,625
- ----------------------------------------------------------------------------------------------------------------------
Orion Network Systems, Inc., 12.50% Sr. Unsub. Disc. Nts., 1/15/07 5,6,8 1,150,000 592,250
----------------
846,875
- ----------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.2%
Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 300,000 318,750
- ----------------------------------------------------------------------------------------------------------------------
LCE Acquisition Corp., 9% Sr. Sub. Nts., 8/1/14 7 175,000 168,875
- ----------------------------------------------------------------------------------------------------------------------
Sanmina-SCI Corp., 6.75% Sub. Nts., 3/1/13 7 100,000 90,000
----------------
577,625
- ----------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.0%
NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 5,6,8 160,138 --
- ----------------------------------------------------------------------------------------------------------------------
PSINet, Inc., 10.50% Sr. Unsec. Nts., 12/1/06 5,6,8 [EUR] 500,000 27,346
----------------
27,346
- ----------------------------------------------------------------------------------------------------------------------
IT SERVICES--0.2%
DynCorp International LLC, 9.50% Sr. Sub. Nts., 2/15/13 7 185,000 178,525
- ----------------------------------------------------------------------------------------------------------------------
Iron Mountain, Inc., 7.75% Sr. Sub. Nts., 1/15/15 250,000 240,000
- ----------------------------------------------------------------------------------------------------------------------
Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 50,000 52,375
----------------
470,900
- ----------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0.4%
Advanced Micro Devices, Inc., 7.75% Sr. Unsec. Nts., 11/1/12 275,000 264,000
- ----------------------------------------------------------------------------------------------------------------------
Amkor Technology, Inc., 9.25% Sr. Unsec. Sub. Nts., 2/15/08 300,000 267,750
- ----------------------------------------------------------------------------------------------------------------------
Freescale Semiconductor, Inc., 7.125% Sr. Unsec. Nts., 7/15/14 100,000 104,500
- ----------------------------------------------------------------------------------------------------------------------
Huntsman International LLC, 7.375% Sr. Sub. Nts., 1/1/15 7 500,000 501,250
----------------
1,137,500
- ----------------------------------------------------------------------------------------------------------------------
MATERIALS--4.1%
- ----------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.2%
AEP Industries, Inc., 7.875% Sr. Nts., 3/15/13 7 45,000 44,879
- ----------------------------------------------------------------------------------------------------------------------
Crompton Corp., 9.875% Sr. Nts., 8/1/12 125,000 143,750
18 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
CHEMICALS Continued
Equistar Chemicals LP/Equistar Funding Corp.:
8.75% Sr. Unsec. Nts., 2/15/09 $ 300,000 $ 321,000
10.125% Sr. Unsec. Nts., 9/1/08 9,000 9,945
10.625% Sr. Unsec. Nts., 5/1/11 200,000 224,000
- ----------------------------------------------------------------------------------------------------------------------
Huntsman International LLC, 9.875% Sr. Nts., 3/1/09 600,000 648,000
- ----------------------------------------------------------------------------------------------------------------------
Huntsman LLC:
11.625% Sr. Unsec. Nts., 10/15/10 6,000 6,960
12% Sr. Nts., 7/15/12 7 115,000 132,825
- ----------------------------------------------------------------------------------------------------------------------
IMC Global, Inc., 10.875% Sr. Unsec. Nts., 8/1/13 9,000 10,665
- ----------------------------------------------------------------------------------------------------------------------
Innophos, Inc., 8.875% Sr. Sub. Nts., 8/15/14 7 150,000 156,000
- ----------------------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 200,000 216,000
- ----------------------------------------------------------------------------------------------------------------------
KI Holdings, Inc., 0%/9.875% Sr. Disc. Nts., 11/15/14 7,9 100,000 59,500
- ----------------------------------------------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.50% Sec. Nts., 12/15/08 9,000 9,641
9.625% Sr. Sec. Nts., Series A, 5/1/07 100,000 106,750
9.875% Sec. Nts., Series B, 5/1/07 79,000 81,370
10.50% Sr. Sec. Nts., 6/1/13 125,000 144,688
- ----------------------------------------------------------------------------------------------------------------------
Millennium America, Inc., 9.25% Sr. Unsec. Sub. Nts., 6/15/08 50,000 53,500
- ----------------------------------------------------------------------------------------------------------------------
Pioneer Cos., Inc., 6.59% Sr. Sec. Nts., 12/31/06 10 14,145 14,286
- ----------------------------------------------------------------------------------------------------------------------
PolyOne Corp.:
8.875% Sr. Unsec. Nts., 5/1/12 400,000 423,000
10.625% Sr. Unsec. Nts., 5/15/10 9,000 9,968
- ----------------------------------------------------------------------------------------------------------------------
Rockwood Specialties Group, Inc., 7.50% Sr. Sub. Nts., 11/15/14 7 50,000 48,750
- ----------------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 10% Sr. Sec. Nts., 12/19/07 6,11 204,568 205,591
- ----------------------------------------------------------------------------------------------------------------------
Westlake Chemical Corp., 8.75% Sr. Nts., 7/15/11 129,000 140,933
----------------
3,212,001
- ----------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.1%
NTK Holdings, Inc., 0%/10.75% Sr. Disc. Nts., 3/1/14 7,9 230,000 116,150
- ----------------------------------------------------------------------------------------------------------------------
Texas Industries, Inc., 10.25% Sr. Unsec. Nts., 6/15/11 200,000 225,500
----------------
341,650
- ----------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--1.2%
Graham Packaging Co., Inc.:
8.50% Sr. Nts., 10/15/12 7 50,000 48,000
9.875% Sub. Nts., 10/15/14 7 100,000 96,000
- ----------------------------------------------------------------------------------------------------------------------
Graphic Packaging International Corp.:
8.50% Sr. Nts., 8/15/11 250,000 250,000
9.50% Sr. Sub. Nts., 8/15/13 200,000 200,000
- ----------------------------------------------------------------------------------------------------------------------
Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts., 10/1/12 450,000 443,250
- ----------------------------------------------------------------------------------------------------------------------
Owens-Brockway Glass Container, Inc.:
8.25% Sr. Unsec. Nts., 5/15/13 9,000 9,585
8.875% Sr. Sec. Nts., 2/15/09 900,000 963,000
19 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING Continued
Pliant Corp., 0%/11.125% Sr. Sec. Disc. Nts., 6/15/09 9 $ 200,000 $ 178,000
- ----------------------------------------------------------------------------------------------------------------------
Solo Cup Co., 8.50% Sr. Sub. Nts., 2/15/14 200,000 194,000
- ----------------------------------------------------------------------------------------------------------------------
Stone Container Corp.:
9.25% Sr. Unsec. Nts., 2/1/08 250,000 257,500
9.75% Sr. Unsec. Nts., 2/1/11 400,000 421,000
- ----------------------------------------------------------------------------------------------------------------------
TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 250,000 247,500
----------------
3,307,835
- ----------------------------------------------------------------------------------------------------------------------
METALS & MINING--1.3%
AK Steel Corp., 7.75% Sr. Unsec. Nts., 6/15/12 309,000 276,555
- ----------------------------------------------------------------------------------------------------------------------
Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 200,000 201,500
- ----------------------------------------------------------------------------------------------------------------------
California Steel Industries, Inc., 6.125% Sr. Nts., 3/15/14 200,000 183,000
- ----------------------------------------------------------------------------------------------------------------------
Century Aluminum Co., 7.50% Sr. Unsec. Nts., 8/15/14 250,000 246,250
- ----------------------------------------------------------------------------------------------------------------------
Foundation PA Coal Co., 7.25% Sr. Unsec. Nts., 8/1/14 100,000 103,250
- ----------------------------------------------------------------------------------------------------------------------
IMCO Recycling, Inc., 10.375% Sr. Sec. Nts., 10/15/10 200,000 218,500
- ----------------------------------------------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 400,000 426,000
- ----------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 10.875% Sr. Nts., Series B, 10/15/06 5,8 500,000 442,500
- ----------------------------------------------------------------------------------------------------------------------
Koppers Industry, Inc., 9.875% Sr. Sec. Nts., 10/15/13 250,000 268,750
- ----------------------------------------------------------------------------------------------------------------------
Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 200,000 215,500
- ----------------------------------------------------------------------------------------------------------------------
Peabody Energy Corp., 6.875% Sr. Unsec. Nts., Series B, 3/15/13 200,000 208,000
- ----------------------------------------------------------------------------------------------------------------------
Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 200,000 215,000
- ----------------------------------------------------------------------------------------------------------------------
UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 6 100,000 105,000
- ----------------------------------------------------------------------------------------------------------------------
United States Steel Corp.:
9.75% Sr. Nts., 5/15/10 168,000 185,640
10.75% Sr. Nts., 8/1/08 260,000 293,800
----------------
3,589,245
- ----------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.3%
Buckeye Technologies, Inc., 8.50% Sr. Nts., 10/1/13 50,000 52,250
- ----------------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., 8.125% Sr. Unsec. Nts., 5/15/11 500,000 549,375
- ----------------------------------------------------------------------------------------------------------------------
Mercer International, Inc., 9.25% Sr. Nts., 2/15/13 100,000 92,500
- ----------------------------------------------------------------------------------------------------------------------
Tekni-Plex, Inc.:
8.75% Sr. Sec. Nts., 11/15/13 7 109,000 101,915
12.75% Sr. Unsec. Sub. Nts., Series B, 6/15/10 200,000 166,000
----------------
962,040
- ----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.1%
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--1.4%
American Tower Corp., 7.125% Sr. Unsec. Nts., 10/15/12 150,000 149,625
- ----------------------------------------------------------------------------------------------------------------------
Cincinnati Bell, Inc.:
7% Sr. Nts., 2/15/15 7 145,000 134,125
8.375% Sr. Sub. Nts., 1/15/14 7 50,000 47,875
20 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES Continued
Citizens Communications Co., 6.25% Sr. Nts., 1/15/13 7 $ 130,000 $ 121,875
- ----------------------------------------------------------------------------------------------------------------------
Crown Castle International Corp., 7.50% Sr. Nts., 12/1/13 200,000 214,000
- ----------------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc., 9.125% Sr. Unsec. Nts., 5/1/08 75,000 57,750
- ----------------------------------------------------------------------------------------------------------------------
MCI, Inc.:
6.908% Sr. Unsec. Nts., 5/1/07 10 333,000 338,828
7.688% Sr. Unsec. Nts., 5/1/09 10 350,000 362,250
- ----------------------------------------------------------------------------------------------------------------------
PanAmSat Holding Corp., 0%/10.375% Sr. Disc. Nts., 11/1/14 7,9 75,000 48,375
- ----------------------------------------------------------------------------------------------------------------------
PSINet, Inc., 11% Sr. Nts., 8/1/09 5,6,8 523,854 327
- ----------------------------------------------------------------------------------------------------------------------
Qwest Capital Funding, Inc., 7.90% Unsec. Nts., 8/15/10 34,000 31,450
- ----------------------------------------------------------------------------------------------------------------------
Qwest Corp., 9.125% Nts., 3/15/12 7 700,000 745,500
- ----------------------------------------------------------------------------------------------------------------------
Qwest Services Corp.:
14% Nts., 12/15/10 7,10 925,000 1,045,250
14.50% Nts., 12/15/14 7 400,000 466,000
- ----------------------------------------------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 5,6,8 200,000 --
- ----------------------------------------------------------------------------------------------------------------------
Time Warner Telecom Holdings, Inc., 9.25% Sr. Nts., 2/15/14 7 145,000 132,675
- ----------------------------------------------------------------------------------------------------------------------
Time Warner Telecom, Inc., 10.125% Sr. Unsec. Sub. Nts., 2/1/11 75,000 70,125
- ----------------------------------------------------------------------------------------------------------------------
Valor Telecom Enterprise, 7.75% Sr. Nts., 2/15/15 7 70,000 67,375
----------------
4,033,405
- ----------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--1.7%
Alamosa Delaware, Inc.:
11% Sr. Unsec. Nts., 7/31/10 9,000 10,091
12.50% Sr. Unsec. Nts., 2/1/11 200,000 227,000
- ----------------------------------------------------------------------------------------------------------------------
American Tower Corp., 7.50% Sr. Nts., 5/1/12 100,000 102,000
- ----------------------------------------------------------------------------------------------------------------------
American Tower Escrow Corp., 12.25% Sr. Sub. Disc. Nts., 8/1/08 1 400,000 304,000
- ----------------------------------------------------------------------------------------------------------------------
AT&T Corp., 2.05% Sr. Unsec. Nts., 11/15/11 10 285,000 326,681
- ----------------------------------------------------------------------------------------------------------------------
CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts., 10/1/07 5,6,8 554,000 --
- ----------------------------------------------------------------------------------------------------------------------
Centennial Cellular Operating Co. LLC/Centennial Communications
Corp., 10.125% Sr. Nts., 6/15/13 300,000 329,250
- ----------------------------------------------------------------------------------------------------------------------
Crown Castle International Corp., 10.75% Sr. Nts., 8/1/11 200,000 215,000
- ----------------------------------------------------------------------------------------------------------------------
Dobson Cellular Systems, Inc., 8.375% Sr. Sec. Nts., 11/1/11 7 50,000 50,750
- ----------------------------------------------------------------------------------------------------------------------
Dobson Communications Corp., 8.875% Sr. Nts., 10/1/13 152,000 124,640
- ----------------------------------------------------------------------------------------------------------------------
IWO Escrow Co., 6.891% Sr. Sec. Nts., 1/15/12 7,10 40,000 40,200
- ----------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 7.375% Sr. Nts., 8/1/15 1,140,000 1,219,800
- ----------------------------------------------------------------------------------------------------------------------
Nextel Partners, Inc., 8.125% Sr. Nts., 7/1/11 200,000 216,000
- ----------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp.:
9.625% Sr. Sub. Nts., Series B, 5/15/08 150,000 144,000
9.75% Sr. Sub. Nts., 1/15/10 9,000 8,190
9.875% Sr. Nts., 2/1/10 150,000 151,125
- ----------------------------------------------------------------------------------------------------------------------
SBA Communications Corp., 8.50% Sr. Nts., 12/1/12 7 200,000 209,500
21 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES Continued
SBA Telecommunications, Inc./SBA Communications Corp.,
0%/9.75% Sr. Disc. Nts., 12/15/11 9 $ 659,000 $ 576,625
- ----------------------------------------------------------------------------------------------------------------------
Triton PCS, Inc., 8.50% Sr. Unsec. Nts., 6/1/13 300,000 261,000
- ----------------------------------------------------------------------------------------------------------------------
Western Wireless Corp., 9.25% Sr. Unsec. Nts., 7/15/13 129,000 148,028
----------------
4,663,880
- ----------------------------------------------------------------------------------------------------------------------
UTILITIES--2.6%
- ----------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.1%
Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series B, 12/15/09 366,797 394,307
- ----------------------------------------------------------------------------------------------------------------------
Calpine Corp.:
7.625% Sr. Nts., 4/15/06 250,000 173,750
8.891% Sr. Sec. Nts., 7/15/07 7,10 147,375 108,321
- ----------------------------------------------------------------------------------------------------------------------
CenterPoint Energy, Inc., 7.25% Sr. Nts., Series B, 9/1/10 100,000 110,278
- ----------------------------------------------------------------------------------------------------------------------
CMS Energy Corp.:
7.50% Sr. Nts., 1/15/09 9,000 9,270
7.75% Sr. Nts., 8/1/10 100,000 103,250
9.875% Sr. Unsec. Nts., 10/15/07 900,000 975,375
- ----------------------------------------------------------------------------------------------------------------------
ESI Tractebel Acquisition Corp., 7.99% Sec. Bonds, Series B, 12/30/11 6 438,000 471,531
- ----------------------------------------------------------------------------------------------------------------------
FPL Energy National Wind Power:
5.608% Nts., 3/10/24 7 85,000 86,037
6.125% Nts., 3/25/19 7 50,000 48,582
- ----------------------------------------------------------------------------------------------------------------------
Midwest Generation LLC, 8.75% Sr. Sec. Nts., 5/1/34 800,000 876,000
- ----------------------------------------------------------------------------------------------------------------------
Mirant Americas Generation LLC, 8.30% Sr. Unsec. Nts., 5/1/11 5,8 600,000 652,500
- ----------------------------------------------------------------------------------------------------------------------
MSW Energy Holdings LLC/MSW Energy Finance Co., Inc.,
8.50% Sr. Sec. Nts., 9/1/10 100,000 103,500
- ----------------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., 8% Sr. Sec. Nts., 12/15/13 7 431,000 437,465
- ----------------------------------------------------------------------------------------------------------------------
Reliant Resources, Inc.:
9.25% Sr. Sec. Nts., 7/15/10 359,000 368,873
9.50% Sr. Sec. Nts., 7/15/13 200,000 208,500
- ----------------------------------------------------------------------------------------------------------------------
Teco Energy, Inc., 7.20% Unsec. Unsub. Nts., 5/1/11 300,000 318,750
- ----------------------------------------------------------------------------------------------------------------------
Texas Genco LLC, 6.875% Sr. Nts., 12/15/14 7 200,000 197,000
----------------
5,643,289
- ----------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.1%
AmeriGas Partners LP/AmeriGas Eagle Finance Corp., 8.875% Sr.
Unsec. Nts., Series B, 5/20/11 200,000 218,000
- ----------------------------------------------------------------------------------------------------------------------
SEMCO Energy, Inc., 7.125% Sr. Nts., 5/15/08 100,000 100,167
----------------
318,167
22 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.4%
Dynegy Holdings, Inc.:
6.875% Sr. Unsec. Unsub. Nts., 4/1/11 $ 75,000 $ 62,438
8.75% Sr. Nts., 2/15/12 9,000 8,033
10.125% Sr. Sec. Nts., 7/15/13 7 900,000 931,500
- ----------------------------------------------------------------------------------------------------------------------
Mirant Mid-Atlantic LLC, 8.625% Sec. Pass-Through Certificates,
Series A, 6/30/12 131,721 146,293
- ----------------------------------------------------------------------------------------------------------------------
NorthWestern Corp., 5.875% Sr. Sec. Nts., 11/1/14 7 30,000 30,634
----------------
1,178,898
----------------
79,747,471
SHARES
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--0.6%
Dobson Communications Corp., 6% Cv., Series F (converts into
Dobson Communications Corp., Cl. A common stock), Non-Vtg. 7 600 46,350
- ----------------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg. 5,6,11 249 25
- ----------------------------------------------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 5,6 4,000 21,000
- ----------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp.:
14.25% Cum. Jr. Exchangeable, Non-Vtg. 6,11 44 325,710
14.25% Cum. Jr. Exchangeable, Non-Vtg. 5,6,11 1 5,220
- ----------------------------------------------------------------------------------------------------------------------
Pennsylvania Real Estate Investment Trust, 11% 4,000 236,800
- ----------------------------------------------------------------------------------------------------------------------
PTV, Inc., 10% Cum., Series A, Non-Vtg. 3 11
- ----------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 5,6,11 115 103,213
- ----------------------------------------------------------------------------------------------------------------------
Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 6 5,750 817,938
----------------
1,556,267
PRINCIPAL
AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
STRUCTURED NOTES--0.4%
Arbor I Ltd. Catastrophe Linked Nts., 18.51%, 6/15/06 7,10 $ 250,000 258,257
- ----------------------------------------------------------------------------------------------------------------------
Swiss Re Capital Markets Corp./Fujiyama Ltd. Catastrophe Linked Nts.,
6.80%, 5/16/05 7,10 250,000 250,198
- ----------------------------------------------------------------------------------------------------------------------
Swiss Re Capital Markets Corp./Pioneer 2002 Ltd. Sec.
Catastrophe Linked Nts.:
Series 2003-II, Cl. A, 9.01%, 6/15/06 7,10 250,000 253,428
Series 2003-II, Cl. B, 8.01%, 6/15/06 7,10 250,000 255,437
Series 2003-II, Cl. C, 8.76%, 6/15/06 7,10 250,000 253,488
----------------
1,270,808
----------------
Total Corporate Sector (Cost $85,447,810) 84,157,404
23 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
UNITS SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
CONVERTIBLE SECTOR--0.0%
- ----------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
American Tower Corp. Wts., Exp. 8/1/08 5,7 400 $ 97,401
- ----------------------------------------------------------------------------------------------------------------------
COLO.com, Inc. Wts., Exp. 3/15/10 5,6 300 --
- ----------------------------------------------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07 5,6 600 --
- ----------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 5,6 800 --
- ----------------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05 5,6 700 7
- ----------------------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 5,6 4,125 --
- ----------------------------------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. Wts.:
Exp. 5/16/06 5,6 6,035 302
Exp. 5/16/06 5,6 9 --
- ----------------------------------------------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07 5,6 720 --
- ----------------------------------------------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08 5,6 400 --
- ----------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07 5,6 975 --
- ----------------------------------------------------------------------------------------------------------------------
Ntelos, Inc. Wts., Exp. 8/15/10 5,6 500 --
- ----------------------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc. Wts., Exp. 9/19/10 5 6,738 2,089
- ----------------------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 6/30/05 5,6 6,400 --
- ----------------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. Wts., Exp. 12/19/08 5,6 431 1,491
- ----------------------------------------------------------------------------------------------------------------------
Verado Holdings, Inc., Cl. B Wts., Exp. 4/15/08 5 500 336
- ----------------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Cl. A Wts., Exp. 1/16/10 5 2,188 766
- ----------------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Cl. B Wts., Exp. 1/16/10 5 1,641 361
- ----------------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Cl. C Wts., Exp. 1/16/10 5 1,641 218
----------------
Total Convertible Sector (Cost $45,816) 102,971
SHARES
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SECTOR--48.7%
- ----------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--0.4%
COLT Telecom Group plc, ADR 5 7,020 26,465
- ----------------------------------------------------------------------------------------------------------------------
Telewest Global, Inc. 5 44,358 822,397
- ----------------------------------------------------------------------------------------------------------------------
Telus Corp. 539 16,078
- ----------------------------------------------------------------------------------------------------------------------
Viatel Holding (Bermuda) Ltd. 5,6 877 241
- ----------------------------------------------------------------------------------------------------------------------
Western Forest Products, Inc. 4,5 31,882 175,461
----------------
1,040,642
PRINCIPAL
AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--6.5%
- ----------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--0.5%
- ----------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--0.4%
Intrawest Corp., 7.50% Sr. Unsec. Nts., 10/15/13 $ 333,000 333,000
- ----------------------------------------------------------------------------------------------------------------------
Royal Caribbean Cruises Ltd., 8.75% Sr. Unsub. Nts., 2/2/11 200,000 225,000
24 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE Continued
Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub. Nts., 8/15/11 $ 500,000 $ 537,500
----------------
1,095,500
- ----------------------------------------------------------------------------------------------------------------------
MEDIA--0.1%
Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 200,000 213,000
- ----------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--0.5%
- ----------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.1%
Jean Coutu Group (PJC), Inc. (The):
7.625% Sr. Unsec. Nts., 8/1/12 100,000 99,750
8.50% Sr. Sub. Nts., 8/1/14 250,000 236,875
----------------
336,625
- ----------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS--0.4%
Burns Philp Capital Property Ltd., 9.75% Sr. Unsec. Sub. Nts., 7/15/12 100,000 109,500
- ----------------------------------------------------------------------------------------------------------------------
United Biscuits Finance plc, 10.75% Sr. Sub. Nts., 4/15/11 6 [GBP] 500,000 965,518
----------------
1,075,018
- ----------------------------------------------------------------------------------------------------------------------
ENERGY--1.7%
- ----------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.4%
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 1,000,000 1,025,000
- ----------------------------------------------------------------------------------------------------------------------
OIL & GAS--1.3%
Gazprom International SA, 7.201% Sr. Unsec. Bonds, 2/1/20 1,520,000 1,585,900
- ----------------------------------------------------------------------------------------------------------------------
Nak Naftogaz Ukraine, 8.125% Bonds, 9/30/09 50,000 51,470
- ----------------------------------------------------------------------------------------------------------------------
Pemex Project Funding Master Trust:
7.375% Unsec. Unsub. Nts., 12/15/14 410,000 446,490
8.50% Unsub. Nts., 2/15/08 265,000 288,850
9.125% Unsec. Unsub. Nts., 10/13/10 410,000 476,625
- ----------------------------------------------------------------------------------------------------------------------
Tengizchevroil LLP, 6.124% Nts., 11/15/14 7 770,000 775,775
----------------
3,625,110
- ----------------------------------------------------------------------------------------------------------------------
FINANCIALS--0.7%
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS--0.6%
HSBC Bank plc:
9.75% Sr. Unsec. Nts., 7/8/09 1 710,000 424,580
11.60% Sr. Unsec. Nts., 1/12/10 1 930,000 481,275
12.28% Sr. Unsec. Nts., 3/9/09 1 710,000 397,600
- ----------------------------------------------------------------------------------------------------------------------
Inter-American Development Bank:
3.95% Nts., 1/25/12 6 [COP] 390,000,000 166,690
6.26% Nts., 12/8/09 6,10 [BRR] 320,000 126,874
- ----------------------------------------------------------------------------------------------------------------------
UBS Luxembourg SA, 6.23% Sub. Nts., 2/11/15 10 260,000 254,198
----------------
1,851,217
25 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.1%
Argentine Beverages Financial Trust, 7.375% Bonds, 3/22/12 6 $ 155,000 $ 155,000
- ----------------------------------------------------------------------------------------------------------------------
JSG Funding plc, 7.75% Sr. Sub. Nts., 4/1/15 7 110,000 91,850
----------------
246,850
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE--0.1%
- ----------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY--0.1%
Titan Petrochemicals Group Ltd., 8.50% Sr. Unsec. Nts., 3/18/12 7 262,000 238,420
- ----------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--0.5%
- ----------------------------------------------------------------------------------------------------------------------
MARINE--0.4%
CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 300,000 338,250
- ----------------------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07 5,6,8 750,000 641,250
----------------
979,500
- ----------------------------------------------------------------------------------------------------------------------
ROAD & RAIL--0.1%
Stena AB:
7.50% Sr. Unsec. Nts., 11/1/13 232,000 222,720
9.625% Sr. Nts., 12/1/12 150,000 163,125
----------------
385,845
- ----------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--0.3%
- ----------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.2%
Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 400,000 422,000
- ----------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.1%
Flextronics International Ltd., 6.25% Sr. Sub. Nts., 11/15/14 400,000 372,000
- ----------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0.0%
MagnaChip Semiconductor Ltd., 8% Sr. Sub. Nts., 12/15/14 7 30,000 26,100
- ----------------------------------------------------------------------------------------------------------------------
MATERIALS--1.6%
- ----------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.2%
PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 87,434 92,680
- ----------------------------------------------------------------------------------------------------------------------
Rhodia SA:
8% Sr. Nts., 6/1/10 [EUR] 120,000 149,017
10.25% Sr. Unsec. Nts., 6/1/10 275,000 292,875
----------------
534,572
- ----------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--0.2%
Crown Euro Holdings SA:
9.50% Sr. Sec. Nts., 3/1/11 300,000 325,500
10.875% Sr. Sec. Nts., 3/1/13 100,000 114,750
- ----------------------------------------------------------------------------------------------------------------------
MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 200,000 199,000
----------------
639,250
26 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
METALS & MINING--1.0%
Alrosa Finance SA:
8.875% Nts., 11/17/14 $ 220,000 $ 232,001
8.875% Nts., 11/17/14 7 2,030,000 2,141,650
- ----------------------------------------------------------------------------------------------------------------------
Ispat Inland ULC, 9.75% Sr. Sec. Nts., 4/1/14 162,000 185,895
- ----------------------------------------------------------------------------------------------------------------------
Novelis, Inc., 7.25% Sr. Nts., 2/15/15 7 220,000 213,950
----------------
2,773,496
- ----------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.2%
Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 225,000 217,688
- ----------------------------------------------------------------------------------------------------------------------
JSG Holding plc, 11.50% Sr. Nts., 10/1/15 7,11 [EUR] 50,974 65,268
- ----------------------------------------------------------------------------------------------------------------------
Tembec Industries, Inc., 8.50% Sr. Unsec. Nts., 2/1/11 9,000 6,930
- ----------------------------------------------------------------------------------------------------------------------
Western Forest Products, Inc., 15% Sec. Nts., 7/28/09 6,11 156,000 170,820
----------------
460,706
- ----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--0.5%
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--0.3%
Intelsat Bermuda Ltd., 8.625% Sr. Nts., 1/15/15 7 150,000 153,000
- ----------------------------------------------------------------------------------------------------------------------
Telus Corp., 7.50% Nts., 6/1/07 596,000 633,166
----------------
786,166
- ----------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.2%
Rogers Wireless, Inc.:
7.50% Sec. Nts., 3/15/15 350,000 360,938
8% Sr. Sub. Nts., 12/15/12 250,000 257,500
----------------
618,438
- ----------------------------------------------------------------------------------------------------------------------
UTILITIES--0.1%
- ----------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.1%
CITGO Trustees Cayman Ltd., 8.50% Nts., 12/21/14 6 210,000 205,800
- ----------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.0%
Calpine Canada Energy Finance ULC, 8.50% Sr. Unsec. Nts., 5/1/08 375,000 189,375
----------------
18,099,988
- ----------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS--31.6%
- ----------------------------------------------------------------------------------------------------------------------
ARGENTINA--1.1%
Argentina (Republic of) Bonds:
2.352%, 5/3/05 10 24,000 23,958
3.01%, 8/3/12 10 2,705,000 2,253,606
Series PRE8, 2%, 1/3/10 5,6,8 [ARP] 810,000 455,291
Series PR12, 2%, 1/3/16 5,6,8 [ARP] 551,273 259,641
- ----------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Unsec. Unsub. Bonds, 5.83%, 12/31/33 [ARP] 432,645 135,722
27 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
ARGENTINA CONTINUED
Buenos Aires (Province of) Bonds, Bonos de Consolidacion de
Deudas, Series PBA1, 4/1/07 5,6,8 [ARP] 40,219 $ 15,630
----------------
3,143,848
- ----------------------------------------------------------------------------------------------------------------------
AUSTRALIA--1.0%
Queensland Treasury Corp. Unsec. Nts., Series 09G, 6%, 7/14/09 [AUD] 3,360,000 2,672,635
- ----------------------------------------------------------------------------------------------------------------------
AUSTRIA--0.9%
Austria (Republic of) Bonds, 6.25%, 7/15/27 [EUR] 1,465,000 2,525,984
- ----------------------------------------------------------------------------------------------------------------------
BELGIUM--1.3%
Belgium (Kingdom of) Bonds:
Series 26, 6.25%, 3/28/07 [EUR] 2,135,000 2,948,541
Series 28, 5.75%, 3/28/08 [EUR] 550,000 772,388
----------------
3,720,929
- ----------------------------------------------------------------------------------------------------------------------
BRAZIL--1.0%
Brazil (Federal Republic of) Bonds:
8.75%, 2/4/25 665,000 641,725
10.50%, 7/14/14 270,000 303,750
Series 15 yr., 4.313%, 4/15/09 10 4,706 4,636
- ----------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Debt Capitalization Bonds,
Series 20 yr., 8%, 4/15/14 1,503,020 1,498,323
- ----------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Unsec. Unsub. Bonds, 11%, 8/17/40 231,000 262,012
----------------
2,710,446
- ----------------------------------------------------------------------------------------------------------------------
BULGARIA--0.3%
Bulgaria (Republic of) Bonds:
8.25%, 1/15/15 305,000 377,819
8.25%, 1/15/15 7 305,000 377,819
----------------
755,638
- ----------------------------------------------------------------------------------------------------------------------
CANADA--0.2%
Canada (Government of) Bonds, 5%, 6/1/14 [CAD] 750,000 634,383
- ----------------------------------------------------------------------------------------------------------------------
COLOMBIA--0.7%
Colombia (Republic of) Bonds, 12%, 10/22/15 [COP] 1,330,000,000 547,524
- ----------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) Nts., 11.75%, 3/1/10 [COP] 1,238,960,000 536,624
- ----------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsec. Unsub. Bonds, 8.375%, 2/15/27 315,000 294,525
- ----------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsec. Unsub. Nts., 11.375%, 1/31/08 [EUR] 460,000 685,924
----------------
2,064,597
- ----------------------------------------------------------------------------------------------------------------------
DOMINICAN REPUBLIC--0.1%
Dominican Republic Bonds, Series REGS, 9.04%, 1/23/13 305,000 282,888
- ----------------------------------------------------------------------------------------------------------------------
ECUADOR--0.1%
Ecuador (Republic of) Unsec. Bonds, 8%, 8/15/30 10 435,000 352,568
28 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
EL SALVADOR--0.1%
El Salvador (Republic of) Bonds, 7.625%, 9/21/34 7 $ 210,000 $ 222,600
- ----------------------------------------------------------------------------------------------------------------------
FINLAND--0.1%
Finland (Republic of) Sr. Unsec. Unsub. Bonds, 2.75%, 7/4/06 [EUR] 115,000 149,061
- ----------------------------------------------------------------------------------------------------------------------
FRANCE--1.3%
France (Government of) Obligations Assimilables du Tresor Bonds:
5.50%, 10/25/07 [EUR] 465,000 642,667
5.75%, 10/25/32 [EUR] 1,070,000 1,784,827
- ----------------------------------------------------------------------------------------------------------------------
France (Government of) Treasury Nts.:
5 yr., 4.75%, 7/12/07 [EUR] 50,000 67,693
5 yr., 5%, 1/12/06 [EUR] 920,000 1,207,641
----------------
3,702,828
- ----------------------------------------------------------------------------------------------------------------------
GERMANY--2.1%
Germany (Republic of) Bonds:
2%, 6/17/05 [EUR] 950,000 1,222,265
Series 140, 4.50%, 8/17/07 [EUR] 730,000 984,353
Series 143, 3.50%, 10/10/08 [EUR] 2,735,000 3,629,702
----------------
5,836,320
- ----------------------------------------------------------------------------------------------------------------------
GREECE--0.6%
Greece (Republic of) Bonds, 3.50%, 4/18/08 [EUR] 930,000 1,229,427
- ----------------------------------------------------------------------------------------------------------------------
Greece (Republic of) Sr. Unsub. Bonds, 4.65%, 4/19/07 [EUR] 265,000 356,048
----------------
1,585,475
- ----------------------------------------------------------------------------------------------------------------------
GUATEMALA--0.1%
Guatemala (Republic of) Nts.:
10.25%, 11/8/11 7 170,000 200,600
10.25%, 11/8/11 55,000 64,900
----------------
265,500
- ----------------------------------------------------------------------------------------------------------------------
HUNGARY--0.1%
Hungary (Government of) Bonds, Series 05/I, 8.50%, 10/12/05 [HUF] 68,320,000 348,907
- ----------------------------------------------------------------------------------------------------------------------
ISRAEL--0.5%
Israel (State of) Aid Bonds, United States Gtd., 5.50%, 12/4/23 560,000 607,528
- ----------------------------------------------------------------------------------------------------------------------
Israel (State of) Bonds, Series 2682, 7.50%, 3/31/14 [ILS] 3,070,000 752,926
----------------
1,360,454
- ----------------------------------------------------------------------------------------------------------------------
ITALY--1.9%
Italy (Republic of) Treasury Bonds:
Buoni del Tesoro Poliennali, 4.50%, 3/1/07 [EUR] 460,000 615,749
Buoni del Tesoro Poliennali, 4.75%, 7/1/05 [EUR] 290,000 374,788
Buoni del Tesoro Poliennali, 5%, 10/15/07 [EUR] 2,345,000 3,203,255
Buoni del Tesoro Poliennali, 5.25%, 12/15/05 [EUR] 860,000 1,128,052
----------------
5,321,844
29 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
IVORY COAST--0.0%
Ivory Coast (Government of) Past Due Interest Bonds, 3/29/18 5,6,8 [FRF] 3,857,000 $ 128,633
- ----------------------------------------------------------------------------------------------------------------------
JAPAN--1.7%
Japan (Government of) Bonds, 5 yr., Series 14, 0.40%, 6/20/06 [JPY] 495,000,000 4,741,755
- ----------------------------------------------------------------------------------------------------------------------
MALAYSIA--0.2%
Johor Corp. Malaysia (State of) Bonds, Series P3, 1%, 7/31/12 10,12 [MYR] 1,620,000 428,447
- ----------------------------------------------------------------------------------------------------------------------
MEXICO--1.0%
United Mexican States Bonds:
7.50%, 4/8/33 470,000 509,950
8.30%, 8/15/31 230,000 269,963
11.375%, 9/15/16 45,000 65,363
Series MI10, 8%, 12/19/13 [MXN] 6,128,000 473,002
Series MI10, 9.50%, 12/18/14 10 [MXN] 3,911,300 329,980
Series M20, 8%, 12/7/23 [MXN] 8,845,000 608,744
- ----------------------------------------------------------------------------------------------------------------------
United Mexican States Treasury Bills, Series BI, 10.32%, 10/13/05 1 [MXN] 2,650,000 229,148
- ----------------------------------------------------------------------------------------------------------------------
United Mexican States Unsec. Unsub. Nts., Series 6 BR, 6.75%, 6/6/06 [JPY] 40,000,000 407,783
----------------
2,893,933
- ----------------------------------------------------------------------------------------------------------------------
NEW ZEALAND--0.2%
New Zealand (Government of) Bonds, 7%, 7/15/09 [NZD] 770,000 620,492
- ----------------------------------------------------------------------------------------------------------------------
NIGERIA--0.1%
Central Bank of Nigeria Gtd. Bonds, Series WW, 6.25%, 11/15/20 140,000 133,000
- ----------------------------------------------------------------------------------------------------------------------
Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 124,194 100,527
----------------
233,527
- ----------------------------------------------------------------------------------------------------------------------
NORWAY--1.5%
Norway (Kingdom of) Bonds:
5.50%, 5/15/09 [NOK] 1,460,000 251,840
6%, 5/16/11 [NOK] 19,030,000 3,430,241
6.50%, 5/15/13 [NOK] 2,920,000 554,556
----------------
4,236,637
- ----------------------------------------------------------------------------------------------------------------------
PANAMA--0.6%
Panama (Republic of) Bonds:
7.25%, 3/15/15 445,000 463,913
8.125%, 4/28/34 285,000 303,525
9.375%, 1/16/23 785,000 926,300
----------------
1,693,738
- ----------------------------------------------------------------------------------------------------------------------
PERU--0.7%
Peru (Republic of) Bonds:
8.375%, 5/3/16 130,000 139,750
Series 2, 9%, 1/31/12 [PEN] 410,000 129,341
Series 8-1, 12.25%, 8/10/11 [PEN] 458,000 168,119
- ----------------------------------------------------------------------------------------------------------------------
Peru (Republic of) Past Due Interest Bonds, Series 20 yr., 5%, 3/7/17 10 1,190,000 1,130,500
30 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
PERU CONTINUED
Peru (Republic of) Unsec. Unsub. Bonds, 8.75%, 11/21/33 $ 310,000 $ 328,600
----------------
1,896,310
- ----------------------------------------------------------------------------------------------------------------------
PHILIPPINES--0.7%
Philippines (Republic of) Bonds:
8.375%, 2/15/11 263,000 268,172
9.50%, 2/2/30 1,210,000 1,188,825
10.625%, 3/16/25 270,000 292,613
Series 5-56, 12.375%, 10/28/09 [PHP] 3,740,000 71,708
Series 5-57, 11.50%, 1/27/10 [PHP] 12,700,000 239,093
----------------
2,060,411
- ----------------------------------------------------------------------------------------------------------------------
POLAND--0.8%
Poland (Republic of) Bonds:
Series DS0509, 6%, 5/24/09 [PLZ] 5,015,000 1,527,797
Series DS1013, 5%, 10/24/13 [PLZ] 1,580,000 455,804
Series WS0922, 5.75%, 9/23/22 [PLZ] 360,000 110,043
----------------
2,093,644
- ----------------------------------------------------------------------------------------------------------------------
PORTUGAL--0.6%
Portugal (Republic of) Obrig Do Tes Medio Prazo Nts.:
3.25%, 7/15/08 [EUR] 640,000 840,387
4.875%, 8/17/07 [EUR] 265,000 359,970
- ----------------------------------------------------------------------------------------------------------------------
Portugal (Republic of) Obrig Do Tes Medio Prazo Unsec. Unsub. Nts.,
5.85%, 5/20/10 [EUR] 235,000 344,625
----------------
1,544,982
- ----------------------------------------------------------------------------------------------------------------------
RUSSIA--1.7%
Aries Vermoegensverwaltungs GmbH Unsub. Nts.:
Series B, 7.75%, 10/25/09 6 [EUR] 270,000 400,653
Series C, 9.60%, 10/25/14 2,420,000 3,068,391
- ----------------------------------------------------------------------------------------------------------------------
Ministry Finance of Russia Debs., Series V, 3%, 5/14/08 770,000 717,222
- ----------------------------------------------------------------------------------------------------------------------
Russian Federation Unsec. Unsub. Bonds, 5%, 3/31/30 7,10 120,000 128,026
- ----------------------------------------------------------------------------------------------------------------------
Russian Federation Unsub. Nts., 5%, 3/31/30 10 430,750 456,504
----------------
4,770,796
- ----------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA--0.6%
South Africa (Republic of) Bonds:
Series R157, 13.50%, 9/15/15 [ZAR] 2,580,000 572,119
Series R186, 10.50%, 12/21/26 [ZAR] 3,785,000 796,274
Series R203, 8.25%, 9/15/17 [ZAR] 1,070,000 174,047
Series R204, 8%, 12/21/18 [ZAR] 1,100,000 175,450
----------------
1,717,890
31 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
SPAIN--2.0%
Spain (Kingdom of) Bonds:
Bonos y Obligacion del Estado, 5.35%, 10/31/11 [EUR] 1,470,000 $ 2,147,361
Bonos y Obligacion del Estado, 5.75%, 7/30/32 [EUR] 840,000 1,398,189
- ----------------------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Treasury Bills, 2.02%, 6/17/05 1 [EUR] 1,470,000 1,886,934
----------------
5,432,484
- ----------------------------------------------------------------------------------------------------------------------
SWEDEN--2.1%
Sweden (Kingdom of) Bonds:
Series 1043, 5%, 1/28/09 [SEK] 3,800,000 575,881
Series 1045, 5.25%, 3/15/11 [SEK] 33,000,000 5,177,464
----------------
5,753,345
- ----------------------------------------------------------------------------------------------------------------------
THE NETHERLANDS--0.2%
Netherlands (Kingdom of the) Bonds, 5.50%, 1/15/28 [EUR] 425,000 672,866
- ----------------------------------------------------------------------------------------------------------------------
TURKEY--0.7%
Turkey (Republic of) Nts., 7.25%, 3/15/15 1,075,000 1,048,125
- ----------------------------------------------------------------------------------------------------------------------
Turkey (Republic of) Sr. Unsec. Unsub. Nts., 11.875%, 1/15/30 630,000 828,450
----------------
1,876,575
- ----------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM--2.5%
United Kingdom Treasury Nts., 4%, 3/7/09 [GBP] 3,635,000 6,813,901
- ----------------------------------------------------------------------------------------------------------------------
VENEZUELA--0.2%
Venezuela (Republic of) Nts., 7%, 3/16/15 [EUR] 490,000 597,769
----------------
87,865,040
- ----------------------------------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS--0.8%
Algeria (Republic of) Loan Participation Nts., 4.003%, 3/4/10 6,10 239,167 236,177
- ----------------------------------------------------------------------------------------------------------------------
Deutsche Bank AG:
Indonesia (Republic of) Rupiah Loan Participation Nts., 3.813%, 1/25/06 10 965,000 959,789
OAO Gazprom Loan Participation Nts., 8.27%, 8/4/05 6,10 960,000 989,856
----------------
2,185,822
SHARES
- ----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--0.0%
Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series A 5,6,11 10,093 19,456
UNITS
- ----------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
Venezuela (Republic of) Oil Linked Payment Obligation Wts., Exp. 4/15/20 5,6 3,000 63,000
32 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
STRUCTURED NOTES--9.4%
Aon Capital Markets/Helix 04 Ltd. Catastrophe Linked Nts.,
8.493%, 6/30/09 10 $ 250,000 $ 251,738
- ----------------------------------------------------------------------------------------------------------------------
Citigroup Global Markets Holdings, Inc.:
Brazil (Federal Republic of) Unsec. Credit Linked Nts., 10%, 1/5/10 [BRR] 935,000 302,791
Brazil (Federal Republic of) Unsec. Credit Linked Nts., 10%, 1/5/10 [BRR] 1,490,000 482,522
Brazil (Federal Republic of) Unsec. Credit Linked Nts., 18%, 1/3/08 [BRR] 646,702 165,002
Brazil (Federal Republic of) Unsec. Credit Linked Nts., 18.41%, 10/4/05 [BRR] 710,000 259,936
Brazil (Federal Republic of) Unsec. Credit Linked Nts., 19.85%, 1/2/09 [BRR] 737,516 162,116
Brazil (Federal Republic of) Unsec. Credit Linked Nts., 20.40%, 1/5/10 [BRR] 801,405 152,576
Colombia (Republic of) Credit Linked Nts., Series II, 15%, 4/27/12 [COP] 182,969,362 88,799
Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 3/15/07 [COP] 1,476,565,000 709,135
Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 742,500,000 360,369
Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 430,000,000 208,698
Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 303,000,000 147,052
Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 352,000,000 170,832
Dominican Republic Credit Linked Nts., 15.93%, 5/2/06 12 [DOP] 6,190,000 189,994
Dominican Republic Credit Linked Nts., 16.50%, 4/24/06 1 [DOP] 2,090,000 64,410
Dominican Republic Credit Linked Nts., 19.50%, 3/31/06 1 [DOP] 5,390,000 168,109
Dominican Republic Credit Linked Nts., 22.97%, 3/10/06 [DOP] 7,026,050 221,711
Dominican Republic Unsec. Credit Linked Nts., 23.60%, 3/3/06 [DOP] 14,221,700 450,504
Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 8%, 10/28/05 [EGP] 1,300,000 213,220
Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 8.407%, 2/9/06 [EGP] 1,849,000 294,279
Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 8.90%, 12/29/05 [EGP] 450,000 73,233
Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 8.90%, 1/12/06 [EGP] 1,480,000 240,065
Ukraine (Republic of) Unsec. Credit Linked Nts., 8.483%, 5/25/05 [UAH] 1,675,002 349,002
Ukraine Hryvnia Unsec. Credit Linked Nts., 7.50%, 5/6/05 6 [UAH] 1,387,000 276,708
Ukraine Hryvnia Unsec. Credit Linked Nts., 11.94%, 1/4/10 12 [UAH] 280,000 65,988
- ----------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp. (Cayman), Turkey (Republic of)
Credit Linked Nts., Series EMG 7, 15%, 2/10/10 [TRY] 987,000 696,894
- ----------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston International:
Lukoil Credit Linked Nts., Series Fbi 105, 7.25%, 11/17/09 [RUR] 9,640,000 357,406
Moscow (City of) Credit Linked Nts., Series Fbi 98, 11%, 4/23/09 [RUR] 9,495,000 371,515
Moscow (City of) Credit Linked Nts., Series Fbi 101, 10%, 12/31/10 [RUR] 9,100,000 373,486
OAO Gazprom Credit Linked Nts., 8.11%, 1/21/07 [RUR] 9,855,000 368,042
South African Rand Interest Bearing Linked Nts., Series FBi 43,
2.425%, 5/23/22 540,000 533,142
Ukraine (Republic of) Credit Linked Nts., Series EMG 13, 11.94%,
12/30/09 [UAH] 685,000 160,123
- ----------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston, Inc. (Nassau Branch):
Turkey (Republic of) Credit Linked Nts., 20%, 10/18/07 120,000 120,331
Turkey (Republic of) Credit Linked Nts.,
Series EM 868, 27.50%, 8/25/05 790,000 755,659
Turkey (Republic of) Credit Linked Nts.,
Series EM 872, 22.88%, 10/20/05 10 140,000 146,270
Turkey (Republic of) Credit Linked Nts.,
Series EM 880, 20%, 10/18/07 415,000 460,683
Turkey (Republic of) Credit Linked Nts.,
Series EMG 4, 18.70%, 7/6/06 [TRY] 612,771 361,541
33 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
STRUCTURED NOTES Continued
Credit Suisse First Boston, Inc.: Continued
Turkey (Republic of) Credit Linked Nts.,
Series EMG 19, 18%, 7/5/06 [TRY] 440,000 $ 259,605
Turkey (Republic of) Credit Linked Nts.,
Series NAS 316, 18.641%, 2/23/06 206,000 180,526
Ukraine (Republic of) Credit Linked Nts.,
Series EMG 11, 11.94%, 12/30/09 [UAH] 207,000 48,387
Ukraine (Republic of) Credit Linked Nts.,
Series NPC 12, 11.94%, 12/30/09 [UAH] 1,330,000 310,895
- ----------------------------------------------------------------------------------------------------------------------
Deutsche Bank AG:
Botswana (Republic of) Credit Linked Nts., 10.75%, 6/1/05 6 [BWP] 340,000 75,004
Brazil Real Credit Linked Nts., 9.638%, 3/3/10 [BRR] 1,449,280 304,357
European Investment Bank, Russian Federation Credit Linked Nts.,
6.242%, 1/19/10 240,000 182,424
Indonesia (Republic of) Credit Linked Nts., 9.50%, 6/22/15 270,000 254,637
Indonesia (Republic of) Credit Linked Nts., 14.25%, 6/22/13 6 320,000 382,880
Indonesia (Republic of) Credit Linked Nts., Series II, 14.25%, 6/22/13 6 319,000 381,684
Indonesia (Republic of) Credit Linked Nts., Series III, 14.25%, 6/22/13 267,733 320,343
Moscow (City of) Credit Linked Nts., 10%, 3/30/10 [RUR] 8,263,000 310,991
Moscow (City of) Credit Linked Nts., 10%, 5/27/05 [RUR] 5,140,000 189,082
Moscow (City of) Credit Linked Nts., 15%, 9/2/05 [RUR] 15,165,000 578,951
Nigeria (Federal Republic of) Credit Linked Nts., 11%, 6/2/05 [NGN] 35,440,000 264,412
Nigeria (Federal Republic of) Credit Linked Nts., 11%, 6/16/05 [NGN] 28,000,000 208,102
Nigeria (Federal Republic of) Credit Linked Nts., 11.64%, 6/2/05 [NGN] 22,594,000 168,570
Nigeria (Federal Republic of) Credit Linked Nts., 13%, 8/17/05 [NGN] 20,448,000 145,553
OAO Gazprom I Credit Nts., 7.339%, 10/20/07 310,000 328,050
OAO Gazprom II Credit Nts., 7.089%, 4/20/07 310,000 324,594
Philippines (Republic of) Credit Linked Nts., 12%, 1/20/09 6 [PHP] 7,520,000 142,837
Philippines (Republic of) Credit Linked Nts., 12.375%, 11/1/09 6 [PHP] 14,960,000 294,866
Philippines (Republic of) Credit Linked Nts., 12.375%, 3/1/15 6 [PHP] 2,570,000 49,029
Romania (The State of) Credit Linked Nts., 6%, 5/12/05 [ROL] 4,900,000,000 173,662
Romania (The State of) Credit Linked Nts., 11.49%, 12/7/06 [ROL] 2,628,800,000 100,824
Russian Federation Credit Linked Nts., 8.40%, 12/2/09 [RUR] 6,685,000 249,935
Ukraine (Republic of) Credit Linked Nts., 7.69%, 8/5/11 1,540,000 1,672,081
Ukraine (Republic of) Credit Linked Nts., 10.208%, 7/1/09 6 [UAH] 1,387,000 329,975
Ukraine (Republic of) Credit Linked Nts., 11.70%, 5/31/06 [UAH] 588,000 128,146
Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 [UAH] 92,000 21,594
Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 [UAH] 325,000 76,282
Videocon International Ltd. Credit Linked Nts, 5.343%, 12/29/09 6 650,000 643,110
- ----------------------------------------------------------------------------------------------------------------------
Foundation RE Ltd. Catastrophe Linked Nts., 6.91%, 11/24/08 6,10 250,000 250,369
- ----------------------------------------------------------------------------------------------------------------------
ING Bank NV, Ukraine (Republic of) Credit Linked Nts., Series 725,
11.89%, 12/30/09 6 [UAH] 1,563,000 372,494
- ----------------------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank:
Brazil (Federal Republic of) Credit Linked Nts., 21.696%, 1/2/15 1 [BRR] 1,154,400 121,177
Brazil (Federal Republic of) Credit Linked Nts., 33.16%, 1/2/15 1 [BRR] 3,577,390 375,516
Brazil (Federal Republic of) Credit Linked Nts., Series II, 13.79%,
1/2/15 1,12 [BRR] 2,425,000 254,551
34 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
STRUCTURED NOTES Continued
Lehman Brothers International:
Romania (The State of) Treasury Bills Total Return Linked Nts., 7.90%,
2/8/10 [ROL] 2,636,000,000 $ 97,614
Romania (The State of) Treasury Bills Total Return Linked Nts., 14.80%,
5/23/05 [ROL] 448,000,000 18,164
Romania (The State of) Treasury Bills Total Return Linked Nts., 15%,
5/9/05 [ROL] 610,000,000 24,853
Turkey (Republic of) Treasury Bills Total Return Linked Nts., 20%, 10/17/07 440,000 485,760
Turkey (Republic of) Treasury Bills Total Return Linked Nts., 22.42%, 5/26/05 495,199 522,683
Turkey (Republic of) Treasury Bills Total Return Linked Nts.,
24.204%, 8/25/05 480,000 431,904
- ----------------------------------------------------------------------------------------------------------------------
Lehman Brothers Special Financing, Inc.:
Romania (The State of) Treasure Bills Total Return Linked Nts., 6.50%,
3/8/10 [ROL] 6,965,000,000 242,282
Romania (The State of) Treasury Bills Total Return Linked Nts., 6.75%,
3/10/08 [ROL] 8,100,000,000 282,926
Romania (The State of) Treasury Bills Total Return Linked Nts., 7.25%,
4/18/10 [ROL] 640,000,000 22,780
Romania (The State of) Treasury Bills Total Return Linked Nts., 7.50%,
3/5/07 [ROL] 1,060,000,000 37,735
Romania (The State of) Treasury Bills Total Return Linked Nts., 7.75%,
4/18/08 [ROL] 640,000,000 22,784
Romania (The State of) Treasury Bills Total Return Linked Nts., 7.75%,
4/18/08 [ROL] 1,540,000,000 54,823
Romania (The State of) Treasury Bills Total Return Linked Nts., 7.90%,
2/11/08 [ROL] 6,007,000,000 217,454
- ----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital Services, Inc., Venezuela (Republic of)
Credit Linked Nts., 7.382%, 5/20/10 12 850,000 854,250
- ----------------------------------------------------------------------------------------------------------------------
Swiss Re Capital Markets Corp./Redwood Capital V Catastrophe
Linked Nts., 7.28%, 1/9/07 6,10 250,000 250,750
- ----------------------------------------------------------------------------------------------------------------------
UBS AG:
OAO Gazprom III Credit Nts., 5.928%, 7/5/06 770,000 803,356
Israel (State of) Credit Linked Nts., 7.50%, 4/5/14 [ILS] 1,742,800 428,856
----------------
26,048,350
----------------
Total International Sector (Cost $129,745,623) 135,322,298
- ----------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECTOR--18.2%
- ----------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--2.8%
- ----------------------------------------------------------------------------------------------------------------------
AUTO LOAN--1.6%
Aesop Funding II LLC, Automobile Asset-Backed Certificates,
Series 2005-1A, Cl. A2, 3.05%, 4/20/08 6,10 60,000 59,904
- ----------------------------------------------------------------------------------------------------------------------
Bank One Auto Securitization Trust, Automobile Receivable
Certificates, Series 2003-1, Cl. A2, 1.29%, 8/21/06 23,773 23,762
35 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
AUTO LOAN CONTINUED
BMW Vehicle Owner Trust, Automobile Loan Certificates:
Series 2004-A, Cl. A2, 1.88%, 10/25/06 $ 144,927 $ 144,559
Series 2005-A, Cl. A2, 3.65%, 12/26/07 250,000 249,885
- ----------------------------------------------------------------------------------------------------------------------
Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through
Certificates, Series 2002-A, Cl. A4, 4.24%, 9/15/08 44,856 45,043
- ----------------------------------------------------------------------------------------------------------------------
DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates:
Series 2001-D, Cl. A4, 3.78%, 2/6/07 42,162 42,226
Series 2003-B, Cl. A2, 1.61%, 7/10/06 99,379 99,345
Series 2004-B, Cl. A2, 2.48%, 2/8/07 6 84,121 83,942
Series 2004-C, Cl. A2, 2.62%, 6/8/07 360,000 358,731
Series 2005-A, Cl. A2, 3.17%, 9/8/07 6 300,000 299,305
- ----------------------------------------------------------------------------------------------------------------------
Ford Credit Auto Owner Trust, Automobile Loan Pass-Through Certificates:
Series 2004-A, Cl. A2, 2.13%, 10/15/06 306,723 305,718
Series 2005-A, Cl. A3, 3.48%, 11/17/08 180,000 178,882
Series 2005-B, Cl. A2, 3.77%, 9/15/07 220,000 220,183
- ----------------------------------------------------------------------------------------------------------------------
Harley-Davidson Motorcycle Trust, Motorcycle Receivable Nts.,
Series 2003-3, Cl. A1, 1.50%, 1/15/08 144,523 144,011
- ----------------------------------------------------------------------------------------------------------------------
Honda Auto Receivables Owner Trust, Automobile Receivable Obligations:
Series 2003-3, Cl. A2, 1.52%, 4/21/06 28,459 28,446
Series 2003-4, Cl. A2, 1.58%, 7/17/06 124,791 124,625
Series 2005-1, Cl. A2, 3.21%, 5/21/07 6 120,000 119,763
- ----------------------------------------------------------------------------------------------------------------------
Household Automotive Trust, Automobile Loan Certificates,
Series 2003-2, Cl. A2, 1.56%, 12/18/06 21,362 21,356
- ----------------------------------------------------------------------------------------------------------------------
M&I Auto Loan Trust, Automobile Loan Certificates:
Series 2002-1, Cl. A3, 2.49%, 10/22/07 59,749 59,714
Series 2003-1, Cl. A2, 1.60%, 7/20/06 707 707
- ----------------------------------------------------------------------------------------------------------------------
National City Auto Receivables Trust, Automobile Receivable
Obligations, Series 2004-A, Cl. A2, 1.50%, 2/15/07 94,270 94,029
- ----------------------------------------------------------------------------------------------------------------------
Nissan Auto Lease Trust, Automobile Lease Obligations,
Series 2004-A, Cl. A2, 2.55%, 1/15/07 170,000 169,324
- ----------------------------------------------------------------------------------------------------------------------
Nissan Auto Receivables Owner Trust, Automobile Receivable Nts.:
Series 2002-A, Cl. A4, 4.28%, 10/16/06 26,393 26,439
Series 2004-A, Cl. A2, 1.40%, 7/17/06 107,785 107,455
- ----------------------------------------------------------------------------------------------------------------------
USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts.:
Series 2002-1, Cl. A3, 2.41%, 10/16/06 15,653 15,654
Series 2004-1, Cl. A2, 1.43%, 9/15/06 207,852 207,449
Series 2004-2, Cl. A2, 2.41%, 2/15/07 202,783 202,246
Series 2004-3, Cl. A2, 2.79%, 6/15/07 170,000 169,423
- ----------------------------------------------------------------------------------------------------------------------
Volkswagen Auto Lease Trust, Automobile Lease Asset-Backed
Securities, Series 2004-A, Cl. A2, 2.47%, 1/22/07 230,000 229,039
- ----------------------------------------------------------------------------------------------------------------------
Volkswagen Auto Loan Enhanced Trust, Automobile Loan Receivable
Certificates, Series 2003-2, Cl. A2, 1.55%, 6/20/06 52,163 52,112
- ----------------------------------------------------------------------------------------------------------------------
Wachovia Auto Owner Trust, Automobile Receivable Nts.,
Series 2004-B, Cl. A2, 2.40%, 5/21/07 170,000 169,413
- ----------------------------------------------------------------------------------------------------------------------
36 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
AUTO LOAN CONTINUED
WFS Financial Owner Trust, Automobile Receivable Obligations,
Series 2002-2, Cl. A4, 4.50%, 2/20/10 $ 90,000 $ 90,564
- ----------------------------------------------------------------------------------------------------------------------
Whole Auto Loan Trust, Automobile Loan Receivable Certificates:
Series 2002-1, Cl. A3, 2.60%, 8/15/06 127,032 126,939
Series 2003-1, Cl. A2A, 1.40%, 4/15/06 34,027 34,020
Series 2004-1, Cl. A2A, 2.59%, 5/15/07 220,000 219,016
----------------
4,523,229
- ----------------------------------------------------------------------------------------------------------------------
CREDIT CARD--0.5%
Citibank Credit Card Issuance Trust, Credit Card Receivable Nts.:
Series 2001-A6, Cl. A6, 5.65%, 6/16/08 230,000 234,800
Series 2002-A3, Cl. A3, 4.40%, 5/15/07 220,000 220,255
- ----------------------------------------------------------------------------------------------------------------------
Consumer Credit Reference Index Securities Program, Credit Card
Asset-Backed Certificates, Series 2002-B, Cl. FX, 10.421%, 3/22/07 6 1,000,000 1,034,639
----------------
1,489,694
- ----------------------------------------------------------------------------------------------------------------------
EQUIPMENT--0.1%
CIT Equipment Collateral, Equipment Receivable-Backed Nts.,
Series 2004-DFS, Cl. A2, 2.66%, 11/20/06 6 190,000 188,897
- ----------------------------------------------------------------------------------------------------------------------
HOME EQUITY LOAN--0.4%
Centex Home Equity Co. LLC, Home Equity Loan Asset-Backed Certificates:
Series 2004-A, Cl. AF1, 2.03%, 6/25/19 15,529 15,504
Series 2004-D, Cl. AF1, 2.98%, 4/25/20 6 95,149 94,646
Series 2005-B, Cl. AF1, 4.02%, 3/26/35 6 78,251 78,236
- ----------------------------------------------------------------------------------------------------------------------
Chase Funding Mortgage Loan Asset-Backed Certificates,
Home Equity Mtg. Obligations:
Series 2002-4, Cl. 1A3, 3.44%, 4/25/23 3,718 3,713
Series 2003-4, Cl. 1A2, 2.138%, 7/25/18 93,405 93,185
Series 2003-5, Cl. 1A2, 2.451%, 11/25/18 50,000 49,747
Series 2004-1, Cl. 1A2, 2.427%, 6/25/19 120,000 119,285
- ----------------------------------------------------------------------------------------------------------------------
CIT Group Home Equity Loan Trust, Home Equity Loan Asset-Backed
Certificates, Series 2003-1, Cl. A2, 2.35%, 4/20/27 45,770 45,654
- ----------------------------------------------------------------------------------------------------------------------
CitiFinancial Mortgage Securities, Inc., Home Equity Collateralized
Mtg. Obligations, Series 2003-3, Cl. AF1, 3.14%, 8/25/33 10 36,634 36,656
- ----------------------------------------------------------------------------------------------------------------------
Equity One ABS, Inc., Home Equity Mtg. Pass-Through Certificates,
Series 2004-3, Cl. AF2, 3.80%, 7/25/34 40,000 39,705
- ----------------------------------------------------------------------------------------------------------------------
Option One Mortgage Loan Trust, Home Equity Mtg. Obligations,
Series 2004-3, Cl. A2, 3.17%, 11/25/34 6,10 65,728 65,776
- ----------------------------------------------------------------------------------------------------------------------
Popular ABS Mortgage Pass-Through Trust, Home Equity Pass-Through
Certificates, Series 2005-2, Cl. A F2, 4.415%, 4/25/35 6 70,000 70,000
- ----------------------------------------------------------------------------------------------------------------------
Wells Fargo Home Equity Trust, Collateralized Mtg. Obligations,
Series 2004-2, Cl. AI1B, 2.94%, 9/25/18 282,937 280,971
----------------
993,078
37 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
MANUFACTURED HOUSING--0.1%
Popular ABS Mortgage Pass-Through Trust, Home Equity
Pass-Through Certificates:
Series 2004-5, Cl. A F2, 3.735%, 11/10/34 6 $ 70,000 $ 69,410
Series 2005-1, Cl. A F2, 3.914%, 5/25/35 50,000 49,646
----------------
119,056
- ----------------------------------------------------------------------------------------------------------------------
RESIDENTIAL--0.1%
Countrywide Alternative Loan Trust, Collateralized Mtg. Obligations,
Series 2005-J1, Cl. 3A1, 6.50%, 8/25/32 304,989 309,871
----------------
7,623,825
- ----------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--12.1%
- ----------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED--12.0%
Fannie Mae Whole Loan, Collateralized Mtg. Obligations Pass-Through
Certificates, Trust 2004-W9, Cl. 2A2, 7%, 2/25/44 208,146 220,245
- ----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
6%, 9/1/34 572,363 588,025
6%, 10/1/34 2 1,009,948 1,037,583
6.50%, 4/1/18 12 118,011 122,947
7%, 3/1/31-10/1/31 354,654 374,692
7%, 5/1/35 12 45,000 47,489
12%, 5/1/10-6/1/15 81,015 89,273
- ----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment
Conduit Multiclass Pass-Through Certificates:
Series 1669, Cl. G, 6.50%, 2/15/23 40,121 40,294
Series 2055, Cl. ZM, 6.50%, 5/15/28 132,294 137,415
Series 2080, Cl. Z, 6.50%, 8/15/28 89,166 92,470
Series 2387, Cl. PD, 6%, 4/15/30 152,207 154,623
Series 2430, Cl. ND, 6.50%, 1/15/31 703,817 706,271
Series 2466, Cl. PD, 6.50%, 4/15/30 2,153 2,152
Series 2498, Cl. PC, 5.50%, 10/15/14 18,031 18,138
Series 2500, Cl. FD, 3.454%, 3/15/32 10 69,653 69,880
Series 2526, Cl. FE, 3.354%, 6/15/29 10 101,974 102,780
Series 2551, Cl. FD, 3.354%, 1/15/33 10 80,429 81,058
Series 2583, Cl. KA, 5.50%, 3/15/22 283,027 285,677
- ----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 177, Cl. B, 5.81%, 7/1/26 13 225,853 45,172
Series 192, Cl. IO, 10.921%, 2/1/28 13 39,220 7,378
Series 200, Cl. IO, 10.315%, 1/1/29 13 47,728 9,454
Series 205, Cl. IO, 6.274%, 9/1/29 13 266,443 51,768
Series 208, Cl. IO, (23.065)%, 6/1/30 13 232,810 43,710
Series 2074, Cl. S, 8.809%, 7/17/28 13 50,058 6,506
Series 2079, Cl. S, 8.006%, 7/17/28 13 79,646 10,650
Series 2526, Cl. SE, 19.166%, 6/15/29 13 132,728 10,858
Series 2819, Cl. S, 14.315%, 6/15/34 13 1,220,666 112,711
Series 2920, Cl. S, 30.158%, 1/15/35 13 836,650 50,627
38 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED CONTINUED
Federal National Mortgage Assn.:
5%, 2/1/18-3/1/34 $ 1,132,655 $ 1,134,003
5%, 5/1/20-5/1/35 12 5,504,000 5,492,259
5.50%, 3/1/33-1/1/34 1,811,982 1,832,502
5.50%, 5/1/20-5/12/35 12 6,708,000 6,810,209
6%, 10/1/22-3/1/23 529,984 544,060
6%, 5/1/20-5/1/31 12 3,741,000 3,856,989
6.50%, 10/1/30 52,743 55,035
6.50%, 5/14/31 12 4,054,000 4,216,160
6.50%, 1/1/29 2 1,250,384 1,304,719
7%, 5/1/20 300,000 315,750
7%, 5/1/31 12 690,000 728,597
7.50%, 6/1/10-9/1/29 213,932 228,527
8.50%, 7/1/32 17,600 19,158
11%, 7/1/16 57,789 65,172
13%, 6/1/15 137,791 155,894
- ----------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates:
Trust 1996-35, Cl. Z, 7%, 7/25/26 346,516 363,608
Trust 1998-63, Cl. PG, 6%, 3/25/27 36,210 36,278
Trust 2001-50, Cl. NE, 6%, 8/25/30 84,992 86,039
Trust 2001-70, Cl. LR, 6%, 9/25/30 85,724 87,224
Trust 2001-72, Cl. NH, 6%, 4/25/30 63,923 64,831
Trust 2001-74, Cl. PD, 6%, 5/25/30 24,875 25,144
Trust 2002-77, Cl. WF, 3.37%, 12/18/32 10 126,642 127,475
Trust 2002-94, Cl. MA, 4.50%, 8/25/09 98,067 98,072
Trust 2003-10, Cl. HP, 5%, 2/25/18 320,000 323,008
Trust 2003-81, Cl. PA, 5%, 2/25/12 29,452 29,451
Trust 2004-101, Cl. BG, 5%, 1/25/20 208,000 210,406
- ----------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates,
Interest-Only Stripped Mtg.-Backed Security:
Trust 319, Cl. 2, 5.259%, 2/1/32 13 84,763 16,681
Trust 2002-28, Cl. SA, 15.242%, 4/25/32 13 70,850 6,739
Trust 2002-38, Cl. SO, 16.272%, 4/25/32 13 205,952 14,577
Trust 2002-39, Cl. SD, 8.647%, 3/18/32 13 109,291 10,370
Trust 2002-48, Cl. S, 14.582%, 7/25/32 13 114,076 11,498
Trust 2002-53, Cl. SK, 8.832%, 4/25/32 13 68,206 7,292
Trust 2002-56, Cl. SN, 16.703%, 7/25/32 13 157,137 15,778
Trust 2002-77, Cl. IS, 14.451%, 12/18/32 13 350,881 36,960
- ----------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security:
Trust 221, Cl. 2, 3.34%, 5/1/23 13 84,447 17,067
Trust 240, Cl. 2, 11.733%, 9/1/23 13 124,156 24,530
Trust 247, Cl. 2, 6.999%, 10/1/23 13 393,553 89,563
Trust 301, Cl. 2, 3.315%, 4/1/29 13 173,374 34,006
Trust 321, Cl. 2, 4.57%, 3/1/32 13 371,367 74,639
Trust 324, Cl. 2, (1.25)%, 6/1/32 13 540,778 109,120
39 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED CONTINUED
Federal National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security: Continued
Trust 329, Cl. 2, 8.72%, 1/1/33 13 $ 426,992 $ 89,207
Trust 333, Cl. 2, 10.17%, 3/1/33 13 133,111 28,155
Trust 2001-63, Cl. SD, 18.962%, 12/18/31 13 109,126 11,049
Trust 2001-68, Cl. SC, 18.206%, 11/25/31 13 79,254 8,400
Trust 2001-81, Cl. S, 17.012%, 1/25/32 13 94,667 9,605
Trust 2002-9, Cl. MS, 14.101%, 3/25/32 13 129,475 13,711
Trust 2002-77, Cl. SH, 22.494%, 12/18/32 13 116,706 11,743
Trust 2005-40, Cl. SA, 27.355%, 5/25/35 13 1,200,000 70,515
Trust 2005-40, Cl. SB, 32.727%, 5/25/35 13 500,000 32,826
----------------
33,474,447
- ----------------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED--0.1%
Government National Mortgage Assn.:
3.75%, 7/20/27 10 18,064 18,343
7%, 1/15/28-3/15/28 51,101 54,253
11%, 10/20/19 45,060 50,031
12%, 11/20/13-9/20/15 59,464 67,674
- ----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security:
Series 1998-6, Cl. SA, 6.757%, 3/16/28 13 96,823 11,672
Series 1998-19, Cl. SB, 7.79%, 7/16/28 13 160,300 21,003
----------------
222,976
----------------
33,697,423
- ----------------------------------------------------------------------------------------------------------------------
NON-AGENCY--3.3%
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL--3.3%
Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates,
Series 1995-MD4, Cl. A5, 7.384%, 8/13/29 1,500,000 1,601,940
- ----------------------------------------------------------------------------------------------------------------------
Bank of America Mortgage Securities, Inc., Collateralized Mtg. Obligations
Pass-Through Certificates:
Series 2004-E, Cl. 2A9, 3.712%, 6/25/34 141,337 141,382
Series 2004-G, Cl. 2A1, 2.469%, 8/25/34 10 53,147 53,091
Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 305,308 310,641
Series 2004-8, Cl. 5A1, 6.50%, 5/25/32 233,311 240,310
- ----------------------------------------------------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mtg.
Obligations, Series 2005-PWR7, Cl. A2, 4.945%, 2/11/41 90,000 91,308
- ----------------------------------------------------------------------------------------------------------------------
Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed
Pass-Through Certificates, Series 1997-CTL1, 8.197%, 6/22/24 13 7,297,036 291,888
- ----------------------------------------------------------------------------------------------------------------------
Countrywide Alternative Loan Trust, Collateralized Mtg. Obligations,
Series 2004-J9, Cl. 1A1, 3.20%, 10/25/34 10 187,064 187,267
- ----------------------------------------------------------------------------------------------------------------------
First Union National Bank/Lehman Brothers/Bank of America Commercial
Mtg. Trust, Pass-Through Certificates, Series 1998-C2, Cl. A2, 6.56%, 11/18/35 140,000 147,760
- ----------------------------------------------------------------------------------------------------------------------
GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations,
Series 2005-C1, Cl. A3, 4.578%, 6/10/48 70,000 69,737
40 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL CONTINUED
GMAC Commercial Mortgage Securities, Inc., Commercial Mtg.
Pass-Through Certificates, Series 1997-C1, Cl. A3, 6.869%, 7/15/29 $ 102,111 $ 106,994
- ----------------------------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc., Mtg. Pass-Through
Certificates, Series 1998-C1, Cl. F, 7.176%, 5/15/30 10 2,000,000 2,091,680
- ----------------------------------------------------------------------------------------------------------------------
Greenwich Capital Commercial Funding Corp., Commercial Mtg.
Pass-Through Certificates, Series 2005-G G3, Cl. A2, 4.305%, 8/10/42 160,000 159,060
- ----------------------------------------------------------------------------------------------------------------------
GSR Mortgage Loan Trust, Collateralized Mtg. Obligations, Series 04-12,
Cl. 3A1, 4.504%, 12/25/34 6,10 257,203 256,758
- ----------------------------------------------------------------------------------------------------------------------
Mastr Alternative Loan Trust, Pass-Through Collateralized Mtg.
Obligations, Series 2004-6, Cl. 10A1, 6%, 7/25/34 344,271 353,776
- ----------------------------------------------------------------------------------------------------------------------
Mastr Asset Securitization Trust, Pass-Through Collateralized Mtg.
Obligations, Series 2004-9, Cl. A3, 4.70%, 8/25/34 10 1,116,261 1,117,642
- ----------------------------------------------------------------------------------------------------------------------
Nomura Asset Securities Corp., Commercial Mtg. Pass-Through
Certificates, Series 1998-D6, Cl. A1B, 6.59%, 3/15/30 160,000 169,949
- ----------------------------------------------------------------------------------------------------------------------
Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through
Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 380,000 431,019
- ----------------------------------------------------------------------------------------------------------------------
Wachovia Bank Commercial Mortgage Trust, Commercial Mtg. Obligations:
Series 2005-C16, Cl. A2, 4.38%, 10/15/41 240,000 239,032
Series 2005-C17, Cl. A2, 4.763%, 3/15/42 250,000 252,837
- ----------------------------------------------------------------------------------------------------------------------
Washington Mutual Mortgage Securities Corp., Collateralized Mtg.
Pass-Through Certificates, Series 2005-AR5, Cl. A1, 4.852%, 4/25/35 300,000 301,247
- ----------------------------------------------------------------------------------------------------------------------
Wells Fargo Mortgage-Backed Securities Trust, Collateralized Mtg. Obligations:
Series 2004-DD, Cl. 2 A1, 4.544%, 1/25/35 10 367,669 369,197
Series 2004-N, Cl. A10, 3.803%, 8/25/34 6 259,582 260,064
----------------
9,244,579
----------------
Total Asset-Backed Sector (Cost $49,950,841) 50,565,827
- ----------------------------------------------------------------------------------------------------------------------
MONEY MARKET SECTOR--3.2%
- ----------------------------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--3.2%
Undivided interest of 1.37% in joint repurchase agreement (Principal Amount/
Value $637,532,000, with a maturity value of $637,685,008) with UBS Warburg
LLC, 2.88%, dated 4/29/05, to be repurchased at $8,745,098 on 5/2/05,
collateralized by Federal National Mortgage Assn., 4.50%, 3/1/20, with a value
of $651,336,230 (Cost $8,743,000) 8,743,000 8,743,000
- ----------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (excluding Investments Purchased with
Cash Collateral from Securities Loaned) (Cost $289,403,333) 294,401,768
41 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--0.1%
- ----------------------------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENT--0.1%
Undivided interest of 0.01% in joint repurchase agreement (Principal Amount/
Value $3,500,000,000, with a maturity value of $3,501,158,889) with Nomura
Securities, 2.98%, dated 4/29/05, to be repurchased at $390,284 on 5/2/05,
collateralized by U.S. Agency Mortgages, 0%-7%, 1/15/08-3/15/46,
with a value of $3,633,391,066 14 (Cost $390,155) $ 390,155 $ 390,155
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $289,793,488) 106.1% 294,791,923
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (6.1) (17,073,111)
-----------------------------------
NET ASSETS 100.0% $ 277,718,812
===================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP Argentine Peso MXN Mexican Nuevo Peso
AUD Australian Dollar MYR Malaysian Ringgit
BRR Brazilian Real NGN Nigeria Naira
BWP Botswana Pula NOK Norwegian Krone
CAD Canadian Dollar NZD New Zealand Dollar
COP Colombian Peso PEN Peruvian New Sol
DOP Dominican Republic Peso PHP Philippines Peso
EGP Egyptian Pounds PLZ Polish Zloty
EUR Euro ROL Romanian Leu
FRF French Franc RUR Russian Ruble
GBP British Pound Sterling SEK Swedish Krona
HUF Hungarian Forint TRY New Turkish Lira
ILS Israeli Shekel UAH Ukraine Hryvnia
JPY Japanese Yen ZAR South African Rand
1. Zero coupon bond reflects effective yield on the date of purchase.
2. All or a portion of the security is held in collateralized accounts to cover
initial margin requirements on open futures sales contracts. The aggregate
market value of such securities is $1,148,668. See Note 6 of Notes to Financial
Statements.
3. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
4. Partial or fully-loaned security--See Note 13 of Notes to Financial
Statements.
5. Non-income producing security.
6. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of April 30, 2005 was $14,540,532, which represents
5.24% of the Fund's net assets, of which $188 is considered restricted. In
addition, the Fund held restricted currency with a value of $46,088, which
represents 0.02% of the Fund's net assets. See Note 12 of Notes to Financial
Statements.
7. 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 $20,110,133 or 7.24% of the Fund's net
assets as of April 30, 2005.
8. Issue is in default. See Note 1 of Notes to Financial Statements.
9. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
10. Represents the current interest rate for a variable or increasing rate
security.
11. Interest or dividend is paid-in-kind.
42 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
12. When-issued security or forward commitment to be delivered and settled after
April 30, 2005. See Note 1 of Notes to Financial Statements.
13. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows. These securities amount to $1,417,428 or 0.51% of the Fund's net assets
as of April 30, 2005.
14. The security has been segregated to satisfy the forward commitment to return
the cash collateral received in securities lending transactions upon the
borrower's return of the securities loaned. See Note 13 of Notes to Financial
Statements.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
April 30, 2005
- ----------------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------------
Investments, at value (including securities loaned of $1,268,219)
(cost $289,793,488)--see accompanying statement of investments $ 294,791,923
- ----------------------------------------------------------------------------------------------------------------
Cash--foreign currencies (cost $44,569) 45,327
- ----------------------------------------------------------------------------------------------------------------
Collateral for securities loaned 901,449
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 1,308,547
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation on swap contracts 460,646
- ----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 4,148,796
Investments sold 336,641
Other 35,680
---------------
Total assets 302,029,009
- ----------------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
Swaptions written, at value (premiums received $39,175) 78,913
- ----------------------------------------------------------------------------------------------------------------
Return of collateral for securities loaned 1,291,604
- ----------------------------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 503,904
- ----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $22,128,449 purchased on a when-issued basis
or forward commitment) 22,211,704
Trustees' compensation 54,211
Closed foreign currency contracts 50,276
Shareholder communications 36,554
Management and administrative fees 31,883
Futures margins 19,927
Other 31,221
---------------
Total liabilities 24,310,197
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS $ 277,718,812
===============
- ----------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 292,299
- ----------------------------------------------------------------------------------------------------------------
Additional paid-in capital 299,460,018
- ----------------------------------------------------------------------------------------------------------------
Accumulated net investment income 4,023,558
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (32,548,886)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 6,491,823
---------------
NET ASSETS--applicable to 29,229,920 shares of beneficial interest outstanding $ 277,718,812
===============
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE $ 9.50
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
44 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2005
- ----------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ----------------------------------------------------------------------------------------------------------------
Interest $ 8,029,121
- ----------------------------------------------------------------------------------------------------------------
Fee income 197,794
- ----------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $1,486) 72,174
- ----------------------------------------------------------------------------------------------------------------
Portfolio lending fees 3,695
---------------
Total investment income 8,302,784
- ----------------------------------------------------------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------------------------------------------------------
Management fees 906,024
- ----------------------------------------------------------------------------------------------------------------
Shareholder communications 25,468
- ----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 17,450
- ----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 14,949
- ----------------------------------------------------------------------------------------------------------------
Trustees' compensation 4,794
- ----------------------------------------------------------------------------------------------------------------
Other 40,392
---------------
Total expenses 1,009,077
Less reduction to custodian expenses (5,480)
---------------
Net expenses 1,003,597
- ----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 7,299,187
- ----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments 2,176,898
Closing of futures contracts 462,950
Closing and expiration of option contracts written 1,012
Closing and expiration of swaption contracts written (45,286)
Foreign currency transactions 2,502,680
Swap contracts (1,174,730)
---------------
Net realized gain 3,923,524
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (3,561,344)
Translation of assets and liabilities denominated in foreign currencies (146,170)
Futures contracts (151,658)
Option contracts written 1,458
Swaption contracts written (7,493)
Swap contracts 569,640
---------------
Net change in unrealized appreciation (3,295,567)
- ----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,927,144
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
45 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCTOBER 31,
(UNAUDITED) 2004
- ----------------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
Net investment income $ 7,299,187 $ 13,624,533
- ----------------------------------------------------------------------------------------------------------------
Net realized gain 3,923,524 6,806,746
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (3,295,567) 6,578,620
---------------------------------
Net increase in net assets resulting from operations 7,927,144 27,009,899
- ----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------
Dividends from net investment income (12,203,492) (17,362,572)
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
Total increase (decrease) (4,276,348) 9,647,327
- ----------------------------------------------------------------------------------------------------------------
Beginning of period 281,995,160 272,347,833
---------------------------------
End of period (including accumulated net investment income
of $4,023,558 and $8,927,863, respectively) $ 277,718,812 $ 281,995,160
=================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.65 $ 9.32 $ 8.17 $ 8.37 $ 8.85 $ 9.45
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .25 1 .47 .63 .65 .78 .86
Net realized and unrealized gain (loss) .02 .45 1.00 (.18) (.44) (.62)
-----------------------------------------------------------------------------
Total from investment operations .27 .92 1.63 .47 .34 .24
- ----------------------------------------------------------------------------------------------------------------------------
Dividend and/or distributions
to shareholders:
Dividends from net investment income (.42) (.59) (.48) (.67) (.79) (.68)
Tax return of capital distribution -- -- -- -- (.03) (.16)
-----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.42) (.59) (.48) (.67) (.82) (.84)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.50 $ 9.65 $ 9.32 $ 8.17 $ 8.37 $ 8.85
=============================================================================
Market value, end of period $ 9.32 $ 8.50 $ 8.34 $ 7.36 $ 8.08 $ 7.88
=============================================================================
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT MARKET VALUE 2 20.81% 8.53% 20.44% (1.35)% 12.79% 6.93%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $277,719 $281,995 $272,348 $238,770 $244,166 $257,629
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $280,864 $274,432 $256,904 $243,498 $251,362 $269,849
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.24% 4.96% 7.13% 7.82% 8.99% 9.27%
Expenses 0.72% 4 0.74% 4 0.69% 4 0.82% 4 0.75% 4 0.84% 4
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% 5 79% 5 93% 70% 133% 104%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes a purchase at the current market price on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and a sale at the current market
price on the last business day of the period. Total return does not reflect
sales charges or brokerage commissions. 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. The portfolio turnover rate excludes purchases and sales of To Be Announced
(TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS
- ----------------------------------------------------------------
April 30, 2005 $138,694,682 $140,957,135
October 31, 2004 369,582,610 378,110,185
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
47 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Multi-Sector Income Trust (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a closed-end management
investment company. The Fund's investment objective is to seek high current
income consistent with preservation of capital. The secondary objective is
capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager). The following is a summary of significant accounting policies
consistently followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Futures contracts traded on a
commodities or futures exchange will be valued at the final settlement price or
official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time
when the Fund's assets are valued. 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 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 Statement of Operations. The Fund records a realized gain or loss
when a structured note is sold or matures. As of April 30, 2005, the market
value of these securities comprised 9.8% of the Fund's net assets and resulted
in unrealized cumulative gains of $770,950.
48 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
- --------------------------------------------------------------------------------
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 April 30, 2005, the Fund had purchased $22,128,449
of securities issued on a when-issued basis or forward commitment.
In connection with its ability to purchase or sell securities on a
when-issued basis, the Fund may enter into forward roll transactions with
respect to mortgage-related securities. Forward roll transactions require the
sale of securities for delivery in the current month, and a simultaneous
agreement with the same counterparty to repurchase similar (same type, coupon
and maturity) but not identical securities on a specified future date. The Fund
records the incremental difference between the forward purchase and sale of each
forward roll as realized gain (loss) on investments or as fee income in the case
of such transactions that have an associated fee in lieu of a difference in the
forward purchase and sale price.
Risks of entering into forward roll transactions include the potential
inability of the counterparty to meet the terms of the agreement; the potential
of the Fund to receive inferior securities at redelivery as compared to the
securities sold to the counterparty; counterparty credit risk; and the potential
pay down speed variance between the mortgage-related pools.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, 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 April 30, 2005, securities with an aggregate
market value of $4,717,068, representing 1.70% of the Fund's net assets, were in
default.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of The New
York Stock Exchange (the Exchange),
49 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
normally 4:00 P.M. Eastern time, on each day the Exchange is open for business.
Foreign exchange rates may be 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.
- --------------------------------------------------------------------------------
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.
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.
As of April 30, 2005, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $31,515,124 expiring by 2013.
This estimated capital loss carryforward represents carryforward as of the end
of the last fiscal year, increased for losses deferred under tax accounting
rules to the current fiscal year and is increased or decreased by capital losses
or gains realized in the first six months of the current fiscal year. As of
April 30, 2005, it is estimated that the Fund will utilize $3,923,524 of capital
loss
50 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
carryforward to offset realized capital gains. During the year ended October 31,
2004, the Fund utilized $1,319,511 of capital loss carryforward to offset
capital gains realized in that fiscal year.
As of October 31, 2004, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
---------------------------------
2006 $ 190,030
2007 11,561,894
2008 5,440,197
2009 4,239,210
2010 9,434,931
2011 4,572,386
------------
Total $ 35,438,648
============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
April 30, 2005, the Fund's projected benefit obligations were increased by $674
and payments of $6,894 were made to retired trustees, resulting in an
accumulated liability of $44,454 as of April 30, 2005.
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 purchases 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.
51 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
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 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 Trust has authorized an unlimited number of $.01 par value shares of
beneficial interest. There were no transactions in shares of beneficial interest
for the six months ended April 30, 2005 and the year ended October 31, 2004.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than U.S. government obligations and short-term obligations, for the six months
ended April 30, 2005, were $98,811,013 and $89,661,423, respectively. There were
purchases of $8,079,038 and sales of $12,945,476 of U.S. government and
government agency obligations for the six months ended April 30, 2005. In
addition, there were purchases of $138,694,682 and sales of $140,957,135 of To
Be Announced (TBA) mortgage-related securities for the six months ended April
30, 2005.
- --------------------------------------------------------------------------------
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 0.65% on the Fund's average annual net assets.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. Shareholder Financial Services, Inc. (SFSI), a wholly-owned
subsidiary of the Manager, is the transfer agent and registrar for the Fund.
Fees paid to SFSI are based on the number of accounts, plus out-of-pocket costs
and expenses.
52 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation or
depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of April 30, 2005, the Fund had outstanding foreign currency contracts as
follows:
VALUATION
CONTRACT AS OF
EXPIRATION AMOUNT APRIL 30, UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES (000s) 2005 APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------------
CONTRACT TO PURCHASE
Argentine Peso (ARP) 2/2/06 1,430ARP $ 474,578 $ -- $ 505
Brazilian Real (BRR) 5/5/05-1/5/10 18,721BRR 7,419,663 621,301 --
Chilean Peso (CLP) 5/26/05 368,000CLP 631,327 -- 7,839
Czech Koruna (CZK) 5/23/05 8,050CZK 339,533 -- 7,604
Dominican Republic Peso (DOP) 5/5/05 5,331DOP 194,224 5,500 --
Euro (EUR) 9/9/05 2,810EUR 3,631,348 -- 60,402
Hungary Forints (HUF) 7/11/05 72,000HUF 363,417 -- 10,415
Indian Rupee (INR) 11/9/05-12/20/05 14,800INR 338,177 9,871 --
Japanese Yen (JPY) 5/16/05-7/22/05 2,625,000JPY 25,111,680 180,911 86,929
Malaysian Ringgit (MYR) 5/3/05 256MYR 67,237 -- 18
Polish Zloty (PLZ) 5/25/05 1,950PLZ 584,471 -- 21,495
Russian Ruble (RUR) 10/27/05 9,910RUR 356,027 16,527 --
Slovakian Koruna (SKK) 6/21/05 7,760SKK 254,110 -- 18,314
South African Rand (ZAR) 7/11/05 1,880ZAR 306,303 2,994 --
South Korean Won (KRW) 6/28/05-7/11/05 4,161,000KRW 4,183,985 87,903 --
Swedish Krone (SEK) 6/7/05 6,630SEK 929,271 -- 11,622
Swiss Franc (CHF) 6/6/05 1,120CHF 939,309 -- 4,461
Thailand Baht (THB) 8/31/05 13,500THB 342,577 -- 9,168
Turkish Lira (TRY) 12/18/07-12/10/09 1,440TRY 1,473,260 33,247 429
Ukraine Hryvnia (UAH) 5/10/05 330UAH 65,868 44 --
--------------------------
958,298 239,201
--------------------------
53 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS Continued
VALUATION
CONTRACT AS OF
EXPIRATION AMOUNT APRIL 30, UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES (000s) 2005 APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------------
CONTRACTS TO SELL
Australian Dollar (AUD) 6/3/05-6/6/05 4,610AUD $ 3,591,469 $ 3,978 $ 5,620
British Pound Sterling (GBP) 5/9/05-7/6/05 3,500GBP 6,669,499 -- 211,503
Euro (EUR) 5/24/05-7/11/05 17,940EUR 23,110,556 329,622 --
Japanese Yen (JPY) 6/29/05 47,000JPY 450,623 -- 4,716
New Zealand Dollar (NZD) 6/7/05 1,320NZD 960,831 -- 13,124
Turkish Lira (TRY) 6/21/05-2/8/06 3,761TRY 2,583,819 16,649 29,740
--------------------------
350,249 264,703
--------------------------
Total unrealized appreciation and depreciation $1,308,547 $ 503,904
==========================
- --------------------------------------------------------------------------------
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 in the Statement of Operations.
54 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of April 30, 2005, the Fund had outstanding futures contracts as follows:
UNREALIZED
EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION
CONTRACT DESCRIPTION DATES CONTRACTS APRIL 30, 2005 (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Amsterdam Exchanges Index 5/20/05 5 $ 446,795 $ (3,660)
Euro-Bundesobligation, 10 yr. 6/8/05 10 1,553,102 18,225
NASDAQ 100 Index 6/17/05 60 1,710,600 (63,019)
Standard & Poor's ASX 200 Index 6/16/05 6 467,019 (7,772)
Standard & Poor's/MIB Index 6/17/05 2 393,056 (3,781)
United Kingdom Long Gilt 6/28/05 1 212,557 2,054
U.S. Long Bonds 6/21/05 148 16,996,875 498,170
U.S. Treasury Nts., 2 yr. 6/30/05 106 22,016,531 (8,388)
-----------
431,829
-----------
CONTRACTS TO SELL
DAX Index 6/17/05 10 1,353,769 34,165
FTSE 100 Index 6/17/05 2 182,938 5,690
Japan (Government of) Bonds, 10 yr. 6/8/05 8 1,072,313 (3,297)
Japan (Government of) Bonds, 10 yr. 6/9/05 3 4,020,315 (83,262)
Nikkei 225 Index 6/9/05 3 164,025 1,916
Nikkei 225 Index 6/9/05 5 523,128 6,211
Standard & Poor's 500 Index 6/16/05 2 579,250 (5,236)
U.S. Treasury Nts., 2 yr. 6/30/05 23 4,777,172 (12,197)
U.S. Treasury Nts., 5 yr. 6/21/05 116 12,580,563 (73,608)
U.S. Treasury Nts., 10 yr. 6/21/05 9 1,002,797 (17,718)
-----------
(147,336)
-----------
$ 284,493
===========
- --------------------------------------------------------------------------------
7. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
55 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. OPTION ACTIVITY Continued
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Contracts subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized gains and losses are reported
in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid secondary market does
not exist.
Written option activity for the six months ended April 30, 2005 was as follows:
CALL OPTIONS PUT OPTIONS
------------------------ ------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
- --------------------------------------------------------------------------------------
Options outstanding as of
October 31, 2004 450 $ 1,335 -- $ --
Options written 830 1,565 800,000 1,850
Options closed or expired (1,280) (2,900) (800,000) (1,850)
----------------------------------------------------
Options outstanding as of
April 30, 2005 -- $ -- -- $ --
====================================================
- --------------------------------------------------------------------------------
8. 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. 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.
56 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
As of April 30, 2005, the Fund Had entered into the following interest rate swap
agreements:
RATE RATE
PAID BY RECEIVED BY
THE FUND AT THE FUND AT UNREALIZED
SWAP NOTIONAL APRIL 30, APRIL 30, FLOATING TERMINATION APPRECIATION
COUNTERPARTY AMOUNT 2005 2005 RATE INDEX DATES (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------
Citigroup Global
Markets Holdings:
Three-Month
447,000,000KRW 3.63% 4.34% KWCDC 2/17/10 $ 6,657
Six-Month
736,000PLZ 5.90 5.55 WIBO 3/24/10 (219)
Six-Month
460,000PLZ 5.90 5.52 WIBO 3/24/10 (316)
- ---------------------------------------------------------------------------------------------------------------
Deutsche
Bank AG:
466,000,000KRW 3.55 4.1728 KWCDC 3/4/10 4,638
Three-Month
1,070,000CAD 3.0475 2.58714 CDOR 1/28/07 (120)
186,000,000KRW 3.55 4.28 KWCDC 3/4/10 2,180
372,000,000KRW 3.55 4.27 KWCDC 3/4/10 4,191
Three-Month
2,520,000EUR 2.134 3.83 EURIBOR 3/8/15 92,132
Three-Month
3,450,000 4.816 2.95875 LIBOR BBA 3/8/15 (67,952)
Six-Month
450,000EUR 3.604 2.16 EURIBOR 4/25/15 65
Six-Month
2,030,000EUR 2.16 2.47 EURIBOR 4/25/07 (85)
372,000,000KRW 3.55 4.27 KWCDC 3/4/10 4,176
466,000,000KRW 3.55 4.31 KWCDC 3/4/10 6,091
- ---------------------------------------------------------------------------------------------------------------
Deutsche
Bank AG, 5 yr.:
90-Day
20,340,000TWD 2.59 1.190 CPTW 8/19/09 (452)
Three-Month
1,820,000 3.1025 2.94 LIBOR flat 3/4/08 43,860
28,440,000INR 4.88 4.9716 IRS 1/15/09 30,680
- ---------------------------------------------------------------------------------------------------------------
Deutsche Three-Month
Bank AG, 10 yr. 4,000,000 2.79 5.32 LIBOR BBA 5/12/14 303,115
- ---------------------------------------------------------------------------------------------------------------
Goldman Sachs
Capital Markets LP:
842,000BRR 19.20 18.16 BZDI 1/2/08 3,370
2,930,000MXN 9.98 10.22 MXN TIIE 1/30/15 (17,919)
178,797BRR 18.70 16.25 BZDI 1/4/10 (1,543)
138,111BRR 18.70 16.15 BZDI 1/4/10 (1,697)
539,880BRR 18.25 17.72 BZDI 1/2/07 (2,923)
206,076BRR 18.69 16.28 BZDI 1/4/10 (1,828)
57 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
8. INTEREST RATE SWAP CONTRACTS Continued
RATE RATE
PAID BY RECEIVED BY
THE FUND AT THE FUND AT UNREALIZED
SWAP NOTIONAL APRIL 30, APRIL 30, FLOATING TERMINATION APPRECIATION
COUNTERPARTY AMOUNT 2005 2005 RATE INDEX DATES (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------
Goldman Sachs
Group, Inc. (The):
7,620,000MXN 9.91 9.84 MXN TIIE 12/31/09 $ (24,524)
942,040BRR 18.25 17.17 BZDI 1/2/08 (5,954)
1,013,000BRR 18.63 18.00 BZDI 1/2/07 (2,274)
1,300,000MXN 9.82 10.85 MXN TIIE 3/5/15 (3,477)
3,810,000MXN 9.945 9.74 MXN TIIE 1/5/10 (13,584)
- ---------------------------------------------------------------------------------------------------------------
JPMorgan
Chase Bank:
Six-Month
100,600,000HUF 8.88 7.00 LIBOR flat 7/14/08 5,874
5,010,000MXN 10.14 10.88 MXN TIIE 11/16/14 (9,390)
Three-Month
4,300,000 3.052 2.97 LIBOR flat 3/10/08 118,828
Three-Month
8,500,000 2.55 4.38 LIBOR 9/27/14 (121,200)
Three-Month
9,000,000 4.24 3.16063 LIBOR 7/23/09 (103,248)
Three-Month
710,000 2.73 4.94 LIBOR BBA 4/30/14 33,195
Three-Month
27,000,000 2.77 4.0725 LIBOR BBA 5/6/09 224,097
- ---------------------------------------------------------------------------------------------------------------
Morgan Stanley
Capital Services,
Inc. (The):
554,466BRR 18.68 16.88 BZDI 1/2/08 (5,180)
Three-Month
11,000,000 2.32 2.77 LIBOR flat 11/10/05 76,616
Three-Month
8,500,000 3.82 2.77 LIBOR flat 11/10/08 59,681
---------------
$ 635,561
===============
Notional amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
BRR Brazilian Real
CAD Canadian Dollar
EUR Euro
HUF Hungary Forints
INR Indian Rupee
KRW South Korean Won
MXN Mexican Nuevo Peso
PLZ Polish Zloty
TWD New Taiwan Dollar
58 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Index abbreviations are as follows:
BZDI Brazil Cetip Interbank Deposit Rate
CDOR Canada Bankers Acceptances Rate
CPTW Bloomberg Taiwan Secondary Commercial Papers
EURIBOR Euro Interbank Offered Rate
IRS India Swap Composites
KWCDC South Korean Won-3 Months
LIBOR London-Interbank Offered Rate
LIBOR BBA London-Interbank Offered Rate British Bankers Association
MXN TIIE Mexican Peso-Interbank Equilibrium Interest Rate
WIBO Poland Warsaw Interbank Offer Bid Rate
- --------------------------------------------------------------------------------
9. CREDIT SWAP CONTRACTS
The Fund may enter into a credit default swap contract to seek to maintain a
total return on a particular investment or portion of its portfolio, or for
other non-speculative purposes. Credit default swap contracts are subject to
credit risks (for example if the counterparty fails to meet its obligations).
As a purchaser of a credit default swap contract, the Fund pays a periodic
interest fee on the notional amount to the counterparty. This interest fee is
accrued daily as a component of unrealized appreciation (depreciation) and is
recorded as realized loss upon payment. Upon occurrence of a specific credit
event with respect to the underlying referenced debt obligation, the Fund is
obligated to deliver that security to the counterparty in exchange for receipt
of the notional amount from the counterparty. The difference between the value
of the security delivered and the notional amount received is recorded as
realized gain. Information regarding such credit swaps as of April 30, 2005 is
as follows:
NOTIONAL
AMOUNT
RECEIVED BY ANNUAL
THE FUND INTEREST UNREALIZED
UPON CREDIT RATE PAID APPRECIATION
COUNTERPARTY REFERENCED DEBT OBLIGATION EVENT BY THE FUND (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------
Deutsche Bank:
Peru Government
8.75% International Bond $ 520,000 2.95% $ (746)
United Mexican States 11.375% Bond 630,000 2.08 (22,193)
- ----------------------------------------------------------------------------------------------------------------
JPMorgan Chase
New York, NY:
Kingdom of Jordan 6% Step-up Bond 175,000 2.00 (1,851)
Russian Federation
2.50% Step-up Bond 330,000 2.40 (17,352)
- ----------------------------------------------------------------------------------------------------------------
Lehman Brothers
Special Financing,
Inc.:
Brazil 12.25% Global Bond 1,240,000 6.15 (119,655)
Republic of Turkey 11.875% Bond 210,000 3.15 502
59 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. CREDIT SWAP CONTRACTS Continued
NOTIONAL
AMOUNT
RECEIVED BY ANNUAL
THE FUND INTEREST UNREALIZED
UPON CREDIT RATE PAID APPRECIATION
COUNTERPARTY REFERENCED DEBT OBLIGATION EVENT BY THE FUND (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------
Morgan Stanley
Capital Services, Inc.:
Republic of Hungry 4.50% Bond $ 900,000 0.55% $ (18,585)
Turkey Government 11.875%
International Bond 630,000 3.22 40,624
- ----------------------------------------------------------------------------------------------------------------
UBS AG,
London Branch:
Federal Republic of Brazil 12.25% Bond 420,000 4.50 (11,245)
Russian Federation 5% Step-up Bond 560,000 2.26 (29,225)
-----------
$ (179,726)
===========
As a seller of a credit default swap contract, the Fund receives a periodic
interest fee on the notional amount from the counterparty. This interest fee is
accrued daily as a component of unrealized appreciation (depreciation) and is
recorded as realized gain upon receipt. Upon occurrence of a specific credit
event with respect to the underlying referenced debt obligation, the Fund
receives that security from the counterparty in exchange for payment of the
notional amount to the counterparty. The difference between the value of the
security received and the notional amount paid is recorded as realized loss.
Information regarding such credit swaps as of April 30, 2005 is as follows:
NOTIONAL
AMOUNT ANNUAL
PAID BY INTEREST
THE FUND RATE UNREALIZED
UPON CREDIT RECEIVED BY APPRECIATION
COUNTERPARTY REFERENCED DEBT OBLIGATION EVENT THE FUND (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------
Lehman Brothers
Special Financing,
Inc. Republic of Turkey 11.875% Bond $ 460,000 1.87% $ 3,424
- ----------------------------------------------------------------------------------------------------------------
UBS AG,
London Branch Federal Republic of Brazil
12.25% Bond 1,305,000 3.80 (9,195)
-----------
$ (5,771)
===========
- --------------------------------------------------------------------------------
10. TOTAL RETURN SWAP CONTRACTS
The Fund may enter into a total return swap transaction to maintain a total
return on a particular investment, or portion of its portfolio, or for other
non-speculative purposes. Because the principal amount is not exchanged, it
represents neither an asset nor a liability to either counterparty, and is
referred to as notional. The Fund records an increase or decrease to unrealized
gain (loss), in the amount due to or owed by the Fund at
60 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
termination or settlement. Total return swaps are subject to risks (if the
counterparty fails to meet its obligations).
As of April 30, 2005, the Fund had entered into the following total return swap
agreements:
PAID BY RECEIVED BY
SWAP NOTIONAL THE FUND AT THE FUND AT TERMINATION UNREALIZED
COUNTERPARTY AMOUNT APRIL 30, 2005 APRIL 30, 2005 DATES APPRECIATION
- ------------------------------------------------------------------------------------------------------------
Goldman Sachs
Group, Inc. (The):
Six-Month
$ 300,000 LIBOR BBA 5.10% 1/14/15 $ 4,186
Six-Month
300,000 LIBOR BBA 5.08 1/20/15 6,396
-----------
$ 10,582
===========
Index abbreviations are as follows:
LIBOR BBA London-Interbank Offered Rate British Bankers Association
- --------------------------------------------------------------------------------
11. SWAPTION TRANSACTIONS
The Fund may enter into a swaption transaction, whereby a contract that grants
the holder, in return for payment of the purchase price (the "premium") of the
option, the right, but not the obligation, to enter into an interest rate swap
at a preset rate within a specified period of time, with the writer of the
contract. The writer receives premiums and bears the risk of unfavorable changes
in the preset rate on the underlying interest rate swap. Swaption contracts
written by the Fund do not give rise to counterparty credit risk as they
obligate the Fund, not its counterparty, to perform. Swaptions written are
reported as a liability in the Statement of Assets and Liabilities.
Written swaption activity for the six months ended April 30, 2005 was as
follows:
CALL SWAPTIONS PUT SWAPTIONS
--------------------------- -------------------------
NOTIONAL AMOUNT OF NOTIONAL AMOUNT OF
AMOUNT PREMIUMS AMOUNT PREMIUMS
- -----------------------------------------------------------------------------------------------
Swaptions outstanding as of
October 31, 2004 3,115,000 $ 30,823 3,940,000 $ 18,387
Swaptions written 9,740,000 67,703 3,940,000 13,608
Swaptions closed or expired (6,320,000) (59,351) (7,880,000) (31,995)
--------------------------------------------------------
Swaptions outstanding as of
April 30, 2005 6,535,000 $ 39,175 -- $ --
========================================================
61 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
11. SWAPTION TRANSACTIONS Continued
As of April 30, 2005, the Fund had entered into the following swaption
contracts:
CALL NOTIONAL EXPIRATION EXERCISE PREMIUM VALUE
SWAPTIONS AMOUNT DATES PRICE RECEIVED SEE NOTE 1
- -------------------------------------------------------------------------------------------------------
British Pound Sterling 3,205,000GBP 6/29/05 5.12GBP $ 28,530 $ 75,102
Deutsche Bank AG 3,330,000AUD 5/3/05 5.755AUD 10,645 3,811
-------------------------
$ 39,175 $ 78,913
=========================
Notional amount and exercise price are denoted in the following currencies:
AUD Australian Dollar
GBP British Pound Sterling
- --------------------------------------------------------------------------------
12. ILLIQUID OR RESTRICTED SECURITIES AND CURRENCY
As of April 30, 2005, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund will not invest more than 10% of
its net assets (determined at the time of purchase and reviewed periodically) in
illiquid or restricted securities. Certain restricted securities, eligible for
resale to qualified institutional investors, are not subject to that limitation.
Securities that are illiquid or restricted are marked with the applicable
footnote on the Statement of Investments. Information concerning restricted
securities and currency is as follows:
UNREALIZED
ACQUISITION VALUATION AS OF APPRECIATION
SECURITY DATES COST APRIL 30, 2005 (DEPRECIATION)
- --------------------------------------------------------------------------------------
Prandium, Inc. 9/25/02 $171,000 $ 188 $ (170,812)
CURRENCY
Argentine Peso (ARP) 11/9/04-4/8/05 45,328 46,088 760
- --------------------------------------------------------------------------------
13. 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. 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 April 30, 2005,
62 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
the Fund had on loan securities valued at $1,268,219. Collateral of $1,291,604
was received for the loans, of which $390,155 was received in cash and
subsequently invested in approved instruments.
- --------------------------------------------------------------------------------
14. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS ("OppenheimerFund Services") and the
Distributor ("OppenheimerFunds Distributor, Inc."), as well as 51 of the
Oppenheimer funds (as "Nominal Defendants") excluding the Fund, 30 present and
former Directors or Trustees and 8 present and former officers of the funds.
This complaint, initially filed in the U.S. District Court for the Southern
District of New York on January 10, 2005 and amended on March 4, 2005,
consolidates into a single action and amends six individual previously-filed
putative derivative and class action complaints. Like those prior complaints,
the complaint alleges that the Manager charged excessive fees for distribution
and other costs, improperly used assets of the funds in the form of directed
brokerage commissions and 12b-1 fees to pay brokers to promote sales of the
funds, and failed to properly disclose the use of assets of the funds to make
those payments in violation of the Investment Company Act of 1940 and the
Investment Advisers Act of 1940. Also, like those prior complaints, the
complaint further alleges that by permitting and/or participating in those
actions, the Directors/Trustees and the Officers breached their fiduciary duties
to shareholders of the funds under the Investment Company Act of 1940 and at
common law. The complaint seeks unspecified compensatory and punitive damages,
rescission of the funds' investment advisory agreements, an accounting of all
fees paid, and an award of attorneys' fees and litigation expenses.
The defendants believe that the allegations contained in the Complaints
are without merit and that they have meritorious defenses against the claims
asserted. The defendants intend to defend these lawsuits vigorously and to
contest any claimed liability. The defendants believe that it is premature to
render any opinion as to the likelihood of an outcome unfavorable to them and
that no estimate can yet be made with any degree of certainty as to the amount
or range of any potential loss.
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15. PROPOSAL TO REORGANIZE WITH AND INTO OPPENHEIMER STRATEGIC INCOME FUND
On February 16, 2005, the Board of Trustees of the Fund approved a proposal to
reorganize the Fund with and into Oppenheimer Strategic Income Fund ("Strategic
Income Fund"), an open-end fund. A Special Meeting of the Shareholders of the
Fund is scheduled for July 12, 2005 to approve an Agreement and Plan of
Reorganization between the Fund and Strategic Income Fund, and the transactions
contemplated thereby, including (a) the transfer of substantially all the assets
of the Fund to Strategic Income Fund in exchange for Class A shares of Strategic
Income Fund, (b) the distribution of these Class A shares of Strategic Income
Fund to the shareholders of the Fund in complete liquidation of the Fund and (c)
the cancellation of the outstanding shares of the Fund.
63 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
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- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (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 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 voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
64 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
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- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the advisory
agreement. The Investment Company Act of 1940, as amended, requires that the
Board request and evaluate, and that the Manager provide, such information as
may be reasonably necessary to evaluate the terms of the advisory agreement. The
Board employs an independent consultant to prepare a report that provides
information, including comparative information, that the Board requests for this
purpose. In addition, the Board receives information throughout the year
regarding Fund services, fees, expenses and performance.
NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's
advisory agreement for the current year, the Board evaluated the nature and
extent of the services provided by the Manager and its affiliates. The Manager
provides the Fund with office space, facilities and equipment; administrative,
accounting, clerical, legal and compliance personnel; securities trading
services; oversight of third party service providers and the services of the
portfolio managers and the Manager's investment team, who provide research,
analysis and other advisory services in regard to the Fund's investments.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board noted that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services and information the
Board received regarding the experience and professional qualifications of the
Manager's personnel and the size and functions of its staff. The Board members
also considered their experiences as directors or trustees of the Fund and other
funds advised by the Manager. The Board received and reviewed information
regarding the quality of services provided by affiliates of the Manager, which
it also reviews at other times during the year in connection with the renewal of
the Fund's service agreements. The Board noted that the relatively low
redemption rate for funds advised by the Manager provided an indication of
shareholder satisfaction with the overall level of services provided by the
Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Arthur Steinmetz and Caleb Wong and the Manager's International
Fixed Income investment team and analysts. Messrs. Steinmetz and Wong have been
primarily responsible for the day-to-day management of the Fund's portfolio
since February 1, 1999. Mr. Steinmetz has had over 22 years of experience
managing fixed income and global/international investments. Mr. Steinmetz has
been a Senior Vice President of the Manager since March
65 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
1993 and of HarbourView Asset Management Corporation since March 2000 and is an
officer of four portfolios and portfolio manager of seven other accounts in the
OppenheimerFunds complex. Mr. Wong has been a Vice President of the Manager
since June 1999, and has worked in fixed-income quantitative research and risk
management for the Manager since July 1996. He is an officer of two portfolios
in the OppenheimerFunds complex.
The Board reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other nonleveraged closed-end general
bond funds (including both funds advised by the Manager and funds advised by
other investment advisers). The Board also receives and reviews comparative
performance information regarding the Fund and other funds at each Board
meeting. The Board noted that the Fund's one-, three-, and five-year performance
was better than its peer group average. However its ten-year performance was
slightly below its peer group average.
MANAGEMENT FEES AND EXPENSES. The Board also reviewed information,
including comparative information, regarding the fees paid to the Manager and
its affiliates and the other expenses borne by the Fund. The independent
consultant provided comparative data in regard to the fees and expenses of the
Fund, other nonleveraged closed-end general bond funds and other funds with
comparable assets levels and distribution features. The Board noted that the
Fund's contractual management fee and total expenses are lower than its peer
group average. However the Fund's contractual management fee is slightly higher
than the average actual management fees of its peer group. In addition, the
Board evaluated the comparability of the fees charged and the services provided
to the Fund to the fees charged and services provided to other types of entities
advised by the Manager.
PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed
information regarding the cost of services provided by the Manager and its
affiliates and the Manager's profitability. The Board considered that the
Manager must be able to pay and retain experienced professional personnel at
competitive rates to provide services to the Fund and that maintaining the
financial viability of the Manager is important in order for the Manager to
continue to provide significant services to the Fund and its shareholders. In
addition the Board considered information that was provided regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates.
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund and the current
level of
66 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Fund assets in relation to the Fund's management fee. The Board noted that the
fund has recently experienced modest asset growth.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund. Fund counsel is independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules. The Board was aware that
there are alternatives to retaining the Manager.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the advisory
agreement for another year. In arriving at this decision, the Board did not
single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
67 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
GENERAL INFORMATION CONCERNING THE FUND Unaudited
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- --------------------------------------------------------------------------------
Oppenheimer Multi-Sector Income Trust (the Fund) is a closed-end diversified
management investment company with a primary investment objective of seeking
high current income consistent with preservation of capital. The Fund's
secondary investment objective is capital appreciation. In seeking its
objectives under normal market conditions, the Fund may invest any percentage of
its assets in at least three of the following seven fixed income sectors: U.S.
Government, Corporate, International, Asset-Backed, Municipal, Convertible and
Money Market. Current income, preservation of capital and, secondarily, possible
capital appreciation may be considerations in the allocation of assets among
such sectors. The Fund can invest in a number of different kinds of "derivative
investments" and can also engage in certain special investment techniques,
including repurchase transactions, when-issued and delayed delivery transactions
and hedging. Although, the Fund is not required to invest in any of these types
of securities at all times. The investment advisor to the Fund is
OppenheimerFunds, Inc. (the Manager).
The Portfolio Managers of the Fund are Arthur Steinmetz and Caleb Wong.
Mr. Steinmetz is a Vice President of the Fund and a Senior Vice President of the
Advisor and Mr. Wong is Vice President of the Advisor and the Fund. Messrs.
Steinmetz and Wong have been the persons principally responsible for the
day-to-day management of the Fund's portfolio since February 1, 1999. Prior to
February 1999, Mr. Steinmetz served as a portfolio manager and officer of other
Oppenheimer funds. Mr. Wong worked on fixed-income quantitative research and
risk management for the Advisor since July 1996, prior to which he was enrolled
in the Ph.D. program for Economics as the University of Chicago. Other members
of the Advisor's fixed-income portfolio department, particularly portfolio
analysts, traders and other portfolio managers provide the Fund's Portfolio
Managers with support in managing the Fund's portfolio.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN--Pursuant to the Fund's
Dividend Reinvestment and Cash Purchase Plan (the Plan), as to shares of the
Fund (Shares) not registered in nominee name, all dividends and capital gains
distributions (Distributions) declared by the Fund will be automatically
reinvested in additional full and fractional Shares unless a shareholder elects
to receive cash. If Shares are registered in nominee name, the shareholder
should consult the nominee if the shareholder desires to participate in the
Plan. Shareholders that participate in the Plan (Participants) may, at their
option, make additional cash investments in Shares, semi-annually in amounts of
at least $100, through payment to Shareholder Financial Services, Inc., the
agent for the Plan (the Agent), accompanied by a service fee of $0.75.
Depending upon the circumstances hereinafter described, Plan Shares will
be acquired by the Agent for the Participant's account through receipt of newly
issued Shares or the
68 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
purchase of outstanding Shares on the open market. If the market price of Shares
on the relevant date (normally the payment date) equals or exceeds their net
asset value, the Agent will ask the Fund for payment of the Distribution in
additional Shares at the greater of the Fund's net asset value determined as of
the date of purchase or 95% of the then-current market price. If the market
price is lower than net asset value, the Distribution will be paid in cash,
which the Agent will use to buy Shares on The New York Stock Exchange (the
NYSE), or otherwise on the open market to the extent available. If the market
price exceeds the net asset value before the Agent has completed its purchases,
the average purchase price per Share paid by the Agent may exceed the net asset
value, resulting in fewer Shares being acquired than if the Distribution had
been paid in Shares issued by the Fund.
Participants may elect to withdraw from the Plan at any time and thereby
receive cash in lieu of Shares by sending appropriate written instructions to
the Agent. Elections received by the Agent will be effective only if received
more than ten days prior to the record date for any Distribution; otherwise,
such termination will be effective shortly after the investment of such
Distribution with respect to any subsequent Distribution. Upon withdrawal from
or termination of the Plan, all Shares acquired under the Plan will remain in
the Participant's account unless otherwise requested. For full Shares, the
Participant may either: (1) receive without charge a share certificate for such
Shares; or (2) request the Agent (after receipt by the Agent of signature
guaranteed instructions by all registered owners) to sell the Shares acquired
under the Plan and remit the proceeds less any brokerage commissions and a $2.50
service fee.
Fractional Shares may either remain in the Participant's account or be
redeemed at the current market price with the proceeds remitted to the
Participant. Shareholders who have previously withdrawn from the Plan may rejoin
at any time by sending written instructions signed by all registered owners to
the Agent.
There is no direct charge for participation in the Plan; all fees of the
Agent are paid by the Fund. There are no brokerage charges for Shares issued
directly by the Fund. However, each Participant will pay a pro rata share of
brokerage commissions incurred with respect to open market purchases of Shares
to be issued under the Plan. Participants will receive tax information annually
for their personal records and to assist in federal income tax return
preparation. The automatic reinvestment of Distributions does not relieve
Participants of any income tax that may be payable on Distributions.
The Plan may be terminated or amended at any time upon 30 days' prior
written notice to Participants which, with respect to a Plan termination, must
precede the record date of any Distribution by the Fund. Additional information
concerning the Plan may be
69 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
GENERAL INFORMATION CONCERNING THE FUND Unaudited / Continued
- --------------------------------------------------------------------------------
obtained by shareholders holding Shares registered directly in their names by
writing the Agent, Shareholder Financial Services, Inc., P.O. Box 173673,
Denver, CO 80217-3673 or by calling 1-800-647-7374. Shareholders holding Shares
in nominee name should contact their brokerage firm or other nominee for more
information.
SHAREHOLDER INFORMATION--The Shares are traded on the NYSE. Daily market
prices for the Fund's shares are published in the New York Stock Exchange
Composite Transaction section of newspapers under the designation "OppenMlti."
The Fund's NYSE trading symbol is OMS. Weekly net asset value (NAV) and market
price information about the Fund is generally published each Monday in The Wall
Street Journal and each Sunday in The New York Times and each Saturday in
Barron's, and other newspapers in a table called "Closed-End Bond Funds."
70 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable to semiannual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on
February 18, 2004, the Board adopted (1) a policy that, should the Board
determine that a vacancy exists or is likely to exist on the Board, the
Governance Committee of the Board, which is comprised entirely of independent
trustees, shall consider any candidates for Board membership recommended by the
registrant's security holders and (2) a policy that security holders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the
Chair of the Governance Committee. Prior to February 18, 2004, the Board did not
have a formalized policy with respect to consideration of security holder
nominees or a procedure by which security holders may make their submissions. In
addition to security holder nominees, the Governance Committee may also consider
nominees recommended by independent Board members or recommended by any other
Board members and is authorized under its Charter, upon Board approval, to
retain an executive search firm to assist in screening potential candidates.
Upon Board approval, the Governance Committee may also obtain legal, financial,
or other external counsel that may be necessary or desirable in the screening
process.
ITEM 11. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(c)) as of April 30, 2005,
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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
(C) EXHIBITS ATTACHED HERETO. (ATTACH PORTFOLIO PROXY VOTING POLICIES AND
PROCEDURES AS REQUIRED BY ITEM 7)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Multi-Sector Income Trust
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: June 15, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: June 15, 2005
By: /S/ BRIAN W. WIXTED
----------------------------
Brian W. Wixted
Chief Financial Officer
Date: June 15, 2005