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 811-09373
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Oppenheimer Senior Floating Rate Fund
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(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: July 31
Date of reporting period: 01/31/2008
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ITEM 1. REPORTS TO STOCKHOLDERS.
JANUARY 31, 2008
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Management
Oppenheimer Commentaries
Senior Floating Rate and
Fund Semiannual
Report
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MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
Listing of Top Holdings
SEMIANNUAL REPORT [GRAPHIC]
Listing of Investments
Financial Statements
[LOGO] OPPENHEIMERFUNDS(R)
The Right Way to Invest
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN CORPORATE LOAN INDUSTRIES
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Media 17.6%
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Health Care Providers & Services 8.8
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Electric Utilities 7.3
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Commercial Services & Supplies 6.6
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Hotels, Restaurants & Leisure 5.8
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Chemicals 5.5
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Aerospace & Defense 5.2
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Oil, Gas & Consumable Fuels 5.1
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Diversified Telecommunication Services 3.0
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Road & Rail 2.6
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2008, and are based on net assets.
TOP FIVE HOLDINGS BY ISSUERS
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Charter Communications Holdings LLC 1.9%
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Citadel Broadcasting Co. 1.2
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RailAmerica, Inc. 1.2
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Riverside Energy Center LLC/Rocky Mountain Power 1.1
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Solutia, Inc. 1.1
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2008, and are based on the total market value of investments. For
more current information on Fund holdings, please visit
www.oppenheimerfunds.com.
CREDIT ALLOCATION
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BBB 1.9%
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BB 41.5
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B 36.7
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CCC 3.0
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CC 0.2
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Not Rated 7.0
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Other Securities 9.7
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2008, and are dollar-weighted based on the total market value of
investments. Securities rated by any rating organization are included in the
equivalent S&P rating category. The allocation includes rated securities and
those not rated by a national rating organization but to which the ratings above
have been assigned by the Manager for internal purposes as being comparable, in
the Manager's judgment, to securities rated by a rating agency in the same
category.
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9 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
OPPENHEIMER SENIOR FLOATING RATE FUND IS A CONTINUOUSLY OFFERED CLOSED-END FUND
WHOSE SHARES ARE NOT LISTED ON ANY STOCK EXCHANGE OR NATIONAL QUOTATION SERVICE.
THE FUND'S SHARES ARE NOT REDEEMABLE FOR CASH DAILY BUT THE FUND SEEKS TO
PROVIDE A DEGREE OF LIQUIDITY TO SHAREHOLDER BY MAKING QUARTERLY OFFERS TO
REPURCHASE A PORTION OF THE FUND'S SHARES. HOWEVER, THERE CAN BE NO ASSURANCE
THAT THE FUND WILL BE ABLE TO REPURCHASE ALL SHARES TENDERED IN A PARTICULAR
REPURCHASE OFFER. SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF ANY
BANK, ARE NOT GUARANTEED BY ANY BANK, ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY, AND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED. SHARES OF THE FUND WILL FLUCTUATE AND THE FUND IS NOT
A MONEY MARKET FUND. THE FUND IS NOT INTENDED AS AN INVESTOR'S ONLY INVESTMENT,
BUT TO COMPLEMENT OTHER HOLDINGS.
10 | OPPENHEIMER SENIOR FLOATING RATE FUND
CLASS A shares of the Fund were first publicly offered on 9/8/99. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 3.50%.
CLASS B shares of the Fund were first publicly offered on 9/8/99. Class B total
returns are shown net of the applicable early withdrawal charge of 3% (one-year)
and 1% (five-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "since inception" return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.50% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 9/8/99. Class C shares
are shown net of the applicable 1% early withdrawal charge for the one-year
period. Class C shares are subject to an annual 0.50% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 11/28/05. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER SENIOR FLOATING RATE FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
early withdrawal charges on redemptions; and redemption fees (if applicable);
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended January 31, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in this
section for the class of shares you hold, together with the amount you invested,
to estimate the expense that you paid over the period. Simply divide your
account value by $1,000.00 (for example, an $8,600.00 account value divided by
$1,000.00 = 8.60), then multiply the result by the number in the first section
under the heading entitled "Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table
provides information about hypothetical account values and hypothetical expenses
based on the Fund's actual expense ratio for each class of shares, and an
assumed rate of return of 5% per year for each class before expenses, which is
not the actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
loads or early withdrawal charges, or a $12.00 fee imposed annually on accounts
valued at less than $500.00 (subject to exceptions described in the Statement of
Additional Information). Therefore, the
12 | OPPENHEIMER SENIOR FLOATING RATE FUND
"hypothetical" section of the table is useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
ACTUAL AUGUST 1, 2007 JANUARY 31, 2008 JANUARY 31, 2008
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Class A $ 1,000.00 $ 988.20 $ 5.28
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Class B 1,000.00 985.30 8.29
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Class C 1,000.00 986.80 7.89
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Class Y 1,000.00 988.40 3.72
HYPOTHETICAL
(5% return before expenses)
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Class A 1,000.00 1,019.91 5.36
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Class B 1,000.00 1,016.89 8.42
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Class C 1,000.00 1,017.29 8.01
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Class Y 1,000.00 1,021.48 3.78
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/365
(to reflect the one-half year period). Those annualized expense ratios,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended January 31, 2008 are as follows:
CLASS EXPENSE RATIOS
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Class A 1.05%
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Class B 1.65
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Class C 1.57
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Class Y 0.74
The expense ratios reflect reduction to voluntary waivers or reimbursements of
expenses by the Fund's Manager that can be terminated at any time, without
advance notice. The "Financial Highlights" tables in the Fund's financial
statements, included in this report, also show the gross expense ratios, without
such waivers or reimbursements and reduction to custodian expenses, if
applicable.
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13 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS January 31, 2008 / Unaudited
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PRINCIPAL
AMOUNT VALUE
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CORPORATE LOANS--106.0%
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CONSUMER DISCRETIONARY--31.1%
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AUTO COMPONENTS--2.3%
Delphi Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Debtor in Possesion, Tranche C, 7.375%, 7/1/08 1 $ 8,000,000 $ 7,900,000
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Goodyear Tire & Rubber Co. (The), Sr. Sec. Credit Facilities
2nd Lien Term Loan, 6.43%, 4/30/14 1 11,000,000 10,078,750
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.26%-9.65%, 6/21/11 1 11,731,832 9,766,749
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Mark IV Industries, Inc./Dayco Products LLC, Sr. Sec. Credit Facilites
2nd Lien Term Loan, 11.67%-13.65%, 12/23/11 1 3,500,000 2,310,000
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Tenneco Automotive, Inc., Sr. Sec. Credit Facilities Term Loan,
6.466%, 3/16/12 1,2 12,614,286 11,888,964
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TRW Automotive, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.688%, 2/9/14 1 14,915,025 14,470,677
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56,415,140
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AUTOMOBILES--1.5%
Ford Motor Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8%, 12/16/13 1 14,738,058 12,942,698
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General Motors Corp., Sr. Sec. Credit Facilities Term Loan, 7.056%, 11/17/13 1 25,642,658 23,530,344
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36,473,042
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BUILDING PRODUCTS--0.1%
Flag Luxury Properties LLC, Sr. Sec. Credit Facilities
1st Lien Term Loan, 7.521%, 2/6/11 1,2 3,952,411 3,596,694
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HOTELS, RESTAURANTS & LEISURE--5.8%
BLB Wembley plc, Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.78%-7.97%, 7/18/11 1,2 7,849,449 7,025,257
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BLB Wembley plc, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.72%, 7/25/13 1,2 8,000,000 6,760,000
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Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.199%, 5/4/13 1,2 4,788,741 4,621,135
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Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 2.25%-7.396%, 5/4/13 1 7,176,141 6,924,976
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CCM Merger, Inc./MotorCity Casino, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.843%-7.151%, 7/13/12 1 8,666,882 8,103,534
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Golden Nugget, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche 2L, 7.21%, 12/31/14 1 13,000,000 11,375,000
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Isle of Capri Casinos, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw:
Tranche A, 5.035%, 11/25/13 1 886,001 779,681
Tranche B, 6.58%, 7/26/08 1 1,175,428 1,034,377
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Isle of Capri Casinos, Inc., Sr. Sec. Credit Facilities Term Loan, 6.58%, 7/26/14 1 2,938,571 2,585,942
14 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
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HOTELS, RESTAURANTS & LEISURE Continued
Las Vegas Sands Corp., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B, 6.58%, 5/23/14 1 $ 4,383,412 $ 3,894,390
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Las Vegas Sands Corp., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 0.75%, 5/8/14 1 3,061,088 2,719,587
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OSI Restaurant Partners, Inc., Sr. Sec. Credit Facilities
Prefunded Revolving Credit Loan, 7.308%, 5/9/13 1 289,137 244,622
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OSI Restaurant Partners, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 5.563%, 5/9/14 1 6,796,199 5,749,870
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Quiznos Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7%-7.125%, 5/5/13 1 15,566,592 14,034,263
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Quiznos Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.58%, 11/5/13 1 12,000,000 10,400,004
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Sagittarius Restaurant, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.08%, 3/2/13 1,2 12,160,589 10,944,530
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Turtle Bay Resort, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 9/13/10 2,3 1,930,402 1,824,230
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Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.08%, 5/25/13 1 11,165,419 10,435,793
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Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 7.08%, 5/25/11 1 9,234,922 8,631,448
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Wimar OpCo LLC/Tropicana Entertainment Co., Sr. Sec. Credit
Facilities 1st Lien Term Loan, 9.59%, 1/3/12 1 12,159,256 12,055,391
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Yonkers Raceway, Sr. Sec. Credit Facilities Term Loan, 9.25%, 8/15/11 1,2 10,395,000 10,031,175
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140,175,205
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HOUSEHOLD DURABLES--0.8%
Sleep Innovations, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.22%-7.26%, 4/3/14 1,2 10,123,500 6,927,369
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Sleep Innovations, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.01%, 10/3/14 1 3,000,000 1,278,750
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Springs Window Fashions Division, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.625%, 12/30/12 1,2 13,745,712 11,649,491
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19,855,610
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MEDIA--17.6%
Advanstar Communications, Sr. Sec. Credit Facilities
1st Lien Term Loan, 7.093%, 5/15/14 1,2 19,900,000 16,417,500
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Alpha Media Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.08%, 8/31/14 1,2 14,962,500 13,989,938
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AMC Entertainment, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.035%, 1/26/13 1 11,340,634 10,481,989
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Charter Communications Operation LLC, Sr. Sec. Credit Facilities
1st Lien Term Loan, 7%, 3/5/14 1 45,000,000 39,396,645
15 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL
AMOUNT VALUE
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MEDIA Continued
Charter Communications Operation LLC, Sr. Sec. Credit Facilities
3rd Lien Term Loan, 7.343%, 9/1/14 1 $ 20,000,000 $ 15,433,340
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Cinram International, Inc., Sr. Sec. Credit Facilities Term Loan,
6.878%, 5/6/11 1,2 20,181,422 16,784,224
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Citadel Broadcasting Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.905%-6.455%, 6/12/14 1 41,750,000 35,852,812
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CSC Holdings, Inc. (Cablevision), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.896%, 3/29/13 1 28,315,334 26,118,376
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Discovery Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.83%, 4/30/14 1 7,942,519 7,565,249
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Hit Entertainment, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.60%, 8/5/12 1,2 10,695,254 9,679,204
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Live Nation, Inc./SFX Entertainment, Inc., Sr. Sec. Credit Facilities
Term Loan, 7.58%, 6/21/13 1,2 10,894,043 10,567,222
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Mediacom Communications Corp./MCC Iowa LLC, Sr. Sec.
Credit Facilities Term Loan, Tranche D2, 5.07%-5.74%, 1/31/15 1 10,444,420 9,291,806
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Mediacom LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche A, 4.88%-5.88%, 9/30/12 1 10,000,000 9,131,250
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Merrill Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 9.771%, 11/15/13 1 12,750,000 11,347,500
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Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.108%, 4/8/12 1 23,642,147 21,127,474
Tranche B Add-On, 8.108%, 4/8/12 1 8,436,250 7,538,937
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Paxson Communications Corp., Sr. Sec. Credit Facilities
1st Lien Term Loan, 7.508%, 1/15/12 1 14,000,000 13,160,000
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Penton Media, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.521%-5.535%, 2/1/13 1 20,105,619 17,981,963
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Quebecor Media, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.258%, 1/17/13 1,2 15,166,293 14,142,568
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Quebecor World, Inc., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession, 5%, 7/17/09 1 7,500,000 7,443,750
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Reader's Digest Association, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.131%-7.463%, 3/2/14 1 17,552,120 15,394,666
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Regal Cinemas, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.33%, 10/27/13 1 20,093,880 18,654,193
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San Juan Cable & Construction, Sr. Sec. Credit Facilities
1st Lien Term Loan, Tranche B, 6.60%-7.15%, 10/31/12 1 16,048,198 14,523,619
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Sirius Satellite Radio, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.563%, 12/13/12 1 7,980,000 7,102,200
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Star Tribune Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.08%, 3/5/14 1 5,995,403 3,946,971
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Tribune Co., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.91%, 5/17/14 1 5,000,000 3,770,625
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Univision Communications, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, 5.494%-5.521%, 9/29/14 1 21,744,967 17,941,859
16 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
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MEDIA Continued
Univision Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 1%, 8/15/14 1 $ 755,034 $ 622,981
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Young Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan,
7.063%-7.438%, 11/3/12 1 19,832,318 18,096,990
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Zuffa LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.938%, 6/18/15 1,2 17,671,250 14,578,781
---------------
428,084,632
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MULTILINE RETAIL--1.1%
Dollarama Group LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.994%, 11/18/11 1 5,771,877 5,494,105
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General Growth Properties, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 1.25%-5.70%, 2/24/10 1 21,902,012 20,225,150
---------------
25,719,255
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SPECIALTY RETAIL--1.9%
BCBG Max Azria Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 10.809%-11.086%, 8/10/11 1,2 6,635,955 6,237,797
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Burlington Coat Factory Warehouse Corp., Sr. Sec. Credit Facilities
Term Loan, 7.32%, 5/28/13 1 13,922,626 12,017,927
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CSK Auto, Inc., Sr. Sec. Credit Facilities Term Loan, 9.625%, 6/30/12 1,2 1,960,237 1,695,605
- ----------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.78%-7.93%, 3/1/12 1,2 3,302,890 3,253,347
- ----------------------------------------------------------------------------------------------------------------------
Harbor Freight Tools, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 6.209%, 2/12/13 1 16,719,389 15,256,442
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J. Crew Operating Corp., Sr. Sec. Credit Facilities Term Loan,
5.081%-6.615%, 5/15/13 1,2 8,519,737 8,200,247
---------------
46,661,365
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CONSUMER STAPLES--5.0%
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BEVERAGES--0.9%
Constellation Brands, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.438%-6.688%, 6/5/13 1 22,752,618 22,063,941
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FOOD & STAPLES RETAILING--0.3%
Jetro Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.19%, 7/2/14 1,2 7,625,000 7,300,938
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FOOD PRODUCTS--2.3%
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 6.58%, 9/28/12 1 2,306,495 2,208,469
Tranche B2, 6.58%, 9/30/12 1 13,851,915 13,263,209
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B&G Foods, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.06%, 2/26/13 1 12,000,000 11,520,000
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Dole Food Co., Sr. Sec. Credit Facilities Prefunded Letter of Credit
Term Loan, 6.377%, 4/17/13 1 1,441,390 1,316,710
17 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS Continued
Dole Food Co., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6%-7.50%, 4/12/13 1 $ 5,452,829 $ 4,981,160
Tranche C, 6.313%-7.50%, 4/12/13 1 21,614,847 19,745,162
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Pinnacle Foods Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.479%-7.593%, 4/5/14 1 3,482,500 3,151,662
---------------
56,186,372
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HOUSEHOLD PRODUCTS--0.3%
PlayPower, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.58%, 6/30/12 1,2 2,931,759 2,770,512
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Yankee Candle Co., Sr. Sec. Credit Facilities Term Loan, 5.29%-6.86%, 2/6/14 1 3,453,605 3,129,830
---------------
5,900,342
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PERSONAL PRODUCTS--1.2%
American Safety Razor Co., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.69%, 1/30/14 1 6,000,000 5,940,000
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Cosmetic Essence, Inc., Sr. Sec. Credit Facilities Term Loan, 6.96%, 3/21/14 1,2 2,435,991 2,070,592
- ----------------------------------------------------------------------------------------------------------------------
Levlad Natural Products Group LLC, Sr. Sec. Credit Facilities
Term Loan, 5.494%-7.331%, 3/8/14 1,2 31,836,561 21,489,679
---------------
29,500,271
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ENERGY--6.7%
- ----------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.6%
Antero Resources Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.33%, 4/10/14 1,2 15,000,000 14,250,000
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Coldren Resource LP, Sr. Sec. Credit Facilities 1st Lien Term Loan,
9.058%, 7/14/11 1 2,607,538 2,516,274
- ----------------------------------------------------------------------------------------------------------------------
Global Geophysical Services, Sr. Sec. Credit Facilities Term Loan,
8.011%, 12/10/14 1 13,000,000 12,740,000
- ----------------------------------------------------------------------------------------------------------------------
Volnay Acquisition Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.271%, 1/12/14 1 8,155,179 7,992,075
---------------
37,498,349
- ----------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS--5.1%
Astoria Generating Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.91%-6.93%, 2/25/13 1 5,930,919 5,684,786
- ----------------------------------------------------------------------------------------------------------------------
ATP Oil & Gas Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.771%-8.50%, 4/14/10 1 31,103,765 29,825,588
- ----------------------------------------------------------------------------------------------------------------------
Bosque Power Co. LLC, Sr. Sec. Credit Facilities Term Loan, 9.319%, 12/10/14 1 7,000,000 6,807,500
- ----------------------------------------------------------------------------------------------------------------------
Broadway Gen Funding LLC, Sr. Sec. Credit Facilities
2nd Lien Term Loan, 8.58%, 4/2/15 1,2 12,102,176 11,950,899
- ----------------------------------------------------------------------------------------------------------------------
Coleto Creek Power LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.58%, 6/28/13 1 32,305,063 30,649,429
18 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS Continued
MEG Energy Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.83%, 4/3/13 1 $ 10,822,126 $ 10,305,370
- ----------------------------------------------------------------------------------------------------------------------
Pine Praire, Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
6.88%, 12/31/13 1,2 3,240,256 3,110,646
- ----------------------------------------------------------------------------------------------------------------------
Pine Praire, Sr. Sec. Credit Facilities Term Loan, 6.88%, 12/31/13 1,2 7,790,229 7,478,620
- ----------------------------------------------------------------------------------------------------------------------
Western Refining Corp., Sr. Sec. Credit Facilities Term Loan, 4.994%, 2/8/14 1 20,144,286
18,465,602
---------------
124,278,440
- ----------------------------------------------------------------------------------------------------------------------
FINANCIALS--2.1%
- ----------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS--0.5%
Nuveen Investments, Inc., Sr. Sec. Credit Facilities Term Loan,
6.285%-7.858%, 11/1/14 1 11,900,001 11,551,366
- ----------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--0.3%
Buckeye Check Cashing, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.03%-7.90%, 5/1/12 1,2 11,419,214 8,564,409
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.2%
Ameritrade Holding Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.77%, 12/31/12 1 5,112,227 4,906,460
- ----------------------------------------------------------------------------------------------------------------------
INSURANCE--0.6%
Swett & Crawford Group, Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.248%, 4/3/14 1,2 15,880,000 13,736,200
- ----------------------------------------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS--0.5%
Capital Auto Real Estate Services, Inc., Sr. Sec. Credit Facilities
Term Loan, 6.39%, 12/16/10 1 13,019,814 12,478,307
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE--12.3%
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.9%
Carestream Health, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.244%-6.83%, 4/30/13 1 12,784,768 11,346,482
- ----------------------------------------------------------------------------------------------------------------------
Carestream Health, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
8.494%-10.081%, 9/26/13 1,2 5,000,000 4,533,335
- ----------------------------------------------------------------------------------------------------------------------
CCS Medical Equipment & Uniforms, Sr. Sec. Credit Facilities
1st Lien Term Loan, 8.10%, 9/30/12 1 21,560,000 20,630,225
- ----------------------------------------------------------------------------------------------------------------------
dj Orthopedics, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.83%, 10/31/14 1 10,000,000 9,812,500
---------------
46,322,542
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--8.8%
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Series MMM, 7.28%, 8/22/11 1 3,756,324 3,177,850
- ----------------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Series NAMM, 7.28%, 7/27/11 1 883,841 747,730
- ----------------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Series NAMM, 7.28%, 8/22/11 1 490,491 414,955
19 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Series PHMC NAMM, 7.28%, 8/22/11 1 $ 85,511 $ 72,342
- ----------------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Series PHMC, 7.28%, 8/22/11 1 3,078,394 2,604,321
- ----------------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.072%-7.331%, 7/2/14 1 21,451,856 19,851,226
- ----------------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 0.75%, 7/2/14 1 1,078,886 998,385
- ----------------------------------------------------------------------------------------------------------------------
Concentra Operating Corp., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 10.33%, 12/20/14 1,2 6,000,000 5,400,000
- ----------------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.111%-8.50%, 8/10/12 1,2 6,896,128 6,637,523
- ----------------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
12.861%, 2/10/13 1 1,000,000 980,000
- ----------------------------------------------------------------------------------------------------------------------
Gentiva Health Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.42%-7.18%, 3/31/13 1,2 4,393,855 4,152,193
- ----------------------------------------------------------------------------------------------------------------------
HCA, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.08%, 11/18/13 1 8,855,327 8,204,318
- ----------------------------------------------------------------------------------------------------------------------
Health Management Associates, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.021%-6.58%, 2/28/14 1 9,907,587 8,742,207
- ----------------------------------------------------------------------------------------------------------------------
HealthCare Partners, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.581%, 10/31/13 1,2 9,327,033 8,627,506
- ----------------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Credit Facilities Term Loan,
5.78%-6.92%, 3/10/13 1 10,290,141 9,647,007
- ----------------------------------------------------------------------------------------------------------------------
Healthways, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.33%, 11/15/13 1,2 8,712,000 8,450,640
- ----------------------------------------------------------------------------------------------------------------------
HVHC, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.08%-8.115%, 8/1/13 1,2 12,173,007 11,838,249
- ----------------------------------------------------------------------------------------------------------------------
Manor Care, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.035%, 10/18/14 1 5,000,000 4,675,000
- ----------------------------------------------------------------------------------------------------------------------
Matria Healthcare, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B Add-On, 6.83%, 1/19/12 1,2 2,639,423 2,573,438
Tranche B, 6.83%-7%, 1/19/12 1,2 6,924,953 6,751,830
- ----------------------------------------------------------------------------------------------------------------------
MultiPlan, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche C, 7.345%, 4/12/13 1 9,218,340 8,826,561
Tranche B, 7.345%, 4/15/13 1 7,668,503 7,342,592
- ----------------------------------------------------------------------------------------------------------------------
Prospect Medical Group, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.271%, 8/1/14 1,2 7,789,474 7,807,000
- ----------------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.83%, 3/31/13 1 10,605,777 10,214,689
- ----------------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
7.06%, 2/18/12 1,2 1,647,059 1,632,647
- ----------------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
6.10%, 3/4/11 1,2 957,650 949,271
20 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Rural/Metro Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.061%-7.125%, 3/4/11 1,2 $ 6,176,881 $ 6,122,834
- ----------------------------------------------------------------------------------------------------------------------
SouthernCare, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.838%-7.923%, 12/10/10 1,2 12,728,288 12,028,232
- ----------------------------------------------------------------------------------------------------------------------
Surgical Care Affiliates, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.08%, 12/30/14 1,2 4,975,000 4,353,125
- ----------------------------------------------------------------------------------------------------------------------
Triumph HealthCare LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.285%-7.371%, 7/28/13 1,2 10,368,849 9,876,328
- ----------------------------------------------------------------------------------------------------------------------
Vanguard Health Systems, Inc., Sr. Sec. Credit Facilities Acquisition
Term Loan, Tranche B, 5.521%, 9/23/11 1 14,565,639 13,527,837
- ----------------------------------------------------------------------------------------------------------------------
Viant Health Payment Solutions, Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7.08%, 6/20/14 1,2 7,960,000 7,213,750
- ----------------------------------------------------------------------------------------------------------------------
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan:
Tranche C, 5.271%-6.83%, 1/4/12 1,2 1,747,854 1,669,200
Tranche B, 5.271%-6.878%, 1/4/12 1 8,465,456 8,084,511
---------------
214,195,297
- ----------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--1.6%
Royalty Pharma, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.511%, 4/16/13 1 12,890,076 12,801,456
- ----------------------------------------------------------------------------------------------------------------------
Stiefel Laboratories, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.693%, 12/28/13 1 6,164,780 5,918,188
- ----------------------------------------------------------------------------------------------------------------------
Stiefel Laboratories, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 6.693%, 12/28/13 1 4,715,270 4,526,660
- ----------------------------------------------------------------------------------------------------------------------
Talecris Biotherapeutics, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.38%, 12/6/13 1 14,840,050 14,747,300
---------------
37,993,604
- ----------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--20.6%
- ----------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--5.2%
AM General LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.505%-8.543%, 9/30/13 1,2 26,129,033 24,397,984
- ----------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, 7.396%, 2/21/13 1,2 16,941,923 16,348,956
- ----------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 11.646%, 2/21/14 1,2 9,000,000 8,460,000
- ----------------------------------------------------------------------------------------------------------------------
Delta Air Lines, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.243%-6.84%, 4/30/12 1 2,800,000 2,584,168
- ----------------------------------------------------------------------------------------------------------------------
DynCorp International LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 6.875%, 2/11/11 1 17,485,367 16,494,524
- ----------------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Prefunded Letter of Credit
Term Loan, 5.53%, 3/21/13 1,2 6,867,370 6,455,328
- ----------------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.34%, 3/21/13 1,2 4,099,820 3,853,831
21 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, 11.125%, 12/30/12 1 $ 21,567,406 $ 19,151,856
- ----------------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 16.625%, 6/30/13 1,2 8,000,000 5,870,000
- ----------------------------------------------------------------------------------------------------------------------
United Air Lines, Inc., Sr. Sec. Credit Facilities Term Loan,
6%-7.125%, 2/3/14 1 12,888,376 11,643,848
- ----------------------------------------------------------------------------------------------------------------------
US Airways Group, Inc., Sr. Sec. Credit Facilities Term Loan,
5.785%, 3/21/14 1 12,000,000 10,590,000
---------------
125,850,495
- ----------------------------------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--1.1%
Evergreen International Aviation, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, 6.771%-8.853%, 10/31/11 1,2 25,983,845 24,684,652
- ----------------------------------------------------------------------------------------------------------------------
Evergreen International Aviation, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 12.271%, 4/30/13 1,2 3,000,000 2,820,000
---------------
27,504,652
- ----------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--1.1%
Champion OpCo., Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.523%, 5/11/13 1 7,093,750 5,426,719
- ----------------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.968%-7.08%, 10/20/11 1,2 4,649,558 4,231,098
- ----------------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.718%, 4/20/12 1,2 1,000,000 900,000
- ----------------------------------------------------------------------------------------------------------------------
PGT Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.93%-8.52%, 2/14/12 1,2 7,855,578 6,480,852
- ----------------------------------------------------------------------------------------------------------------------
United Subcontractors, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.566%-7.681%, 12/27/12 1,2 11,796,217 9,879,331
---------------
26,918,000
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--6.6%
Allied Security Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.83%, 7/17/12 1 14,795,455 13,981,705
- ----------------------------------------------------------------------------------------------------------------------
Asurion Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.878%, 7/2/14 1 23,500,000 21,443,750
- ----------------------------------------------------------------------------------------------------------------------
First Data Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B-2, 7.96%, 9/24/14 1 6,409,000 5,797,472
- ----------------------------------------------------------------------------------------------------------------------
Metavante Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.66%, 11/1/14 1 8,000,000 7,626,664
- ----------------------------------------------------------------------------------------------------------------------
NES Rentals Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.625%, 6/22/13 1 12,942,841 11,799,561
- ----------------------------------------------------------------------------------------------------------------------
New Holdings I LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.744%-7.646%, 5/18/14 1,2 19,941,654 17,548,656
22 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
Norwood Promotional Products, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 9.50%, 8/16/09 1,2 $ 25,855,276 $ 25,725,999
- ----------------------------------------------------------------------------------------------------------------------
Rental Service Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
8.15%, 11/15/12 1 21,196,376 18,299,532
- ----------------------------------------------------------------------------------------------------------------------
Sabre Holdings Corp., Sr. Sec. Credit Facilities Term Loan,
5.244%, 9/30/14 1 7,379,768 6,070,782
- ----------------------------------------------------------------------------------------------------------------------
West Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B3, 5.619%-6.093%, 10/24/13 1 26,663,225 24,673,480
- ----------------------------------------------------------------------------------------------------------------------
Workflow Management, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.751%, 10/17/10 1 8,011,375 6,809,668
---------------
159,777,269
- ----------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.3%
Freescale Semiconductor, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.381%, 11/29/13 1 7,778,904 6,626,654
- ----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--2.4%
Amsted Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.26%-7.14%, 4/6/13 1 4,683,074 4,536,729
- ----------------------------------------------------------------------------------------------------------------------
Hillman Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.375%, 3/31/11 1,2 17,721,278 17,012,427
- ----------------------------------------------------------------------------------------------------------------------
Precision Partners, Inc., Sr. Sec. Credit Facilities Term Loan,
8.33%, 10/1/13 1 26,243,104 23,881,225
- ----------------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Term Loan,
5.494%-5.516%, 8/10/13 1,2 13,639,844 13,418,196
---------------
58,848,577
- ----------------------------------------------------------------------------------------------------------------------
IT SERVICES--0.4%
Apptis, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.53%-8.607%, 12/20/12 1,2 11,303,352 10,173,017
- ----------------------------------------------------------------------------------------------------------------------
MACHINERY--0.9%
BOC Edwards, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.081%, 5/31/14 1 12,438,747 10,386,354
- ----------------------------------------------------------------------------------------------------------------------
Veyance Technologies, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.75%, 7/2/14 1 11,346,563 10,268,639
- ----------------------------------------------------------------------------------------------------------------------
Veyance Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 5.78%, 7/2/14 1 1,625,000 1,470,625
---------------
22,125,618
- ----------------------------------------------------------------------------------------------------------------------
ROAD & RAIL--2.6%
RailAmerica, Inc., Sr. Sec. Credit Facilities Term Loan, 7.12%, 8/14/08 1,2 35,000,000 34,300,000
- ----------------------------------------------------------------------------------------------------------------------
Swift Transportation Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.188%, 5/10/14 1 9,162,791 7,109,757
23 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
ROAD & RAIL Continued
Swift Transportation Co., Sr. Sec. Credit Facilities Letter of Credit,
7.37%, 5/8/14 1,2 $ 4,500,000 $ 3,434,999
- ----------------------------------------------------------------------------------------------------------------------
U.S. Xpress Enterprises, Inc., Sr. Sec. Credit Facilities Term Loan,
7.926%-7.959%, 10/12/14 1 20,658,750 16,733,587
---------------
61,578,343
- ----------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--5.1%
- ----------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.7%
Dealer Computer Services, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.843%, 10/26/12 1 12,964,375 11,927,225
- ----------------------------------------------------------------------------------------------------------------------
Dealer Computer Services, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.343%, 11/1/13 1,2 6,000,000 5,760,000
---------------
17,687,225
- ----------------------------------------------------------------------------------------------------------------------
IT SERVICES--1.5%
Apptis, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.53%,
12/20/12 1 1,076,923 969,231
- ----------------------------------------------------------------------------------------------------------------------
Caritor, Inc., Sr. Sec. Credit Facilities Term Loan, 7.08%, 5/17/13 1 32,427,000 29,528,837
- ----------------------------------------------------------------------------------------------------------------------
SafeNet, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.127%,
4/12/14 1,2 6,716,250 5,943,881
---------------
36,441,949
- ----------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.0%
Flextronics International Ltd., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche A1, 7.455%, 10/1/14 1 5,343,750 5,200,137
- ----------------------------------------------------------------------------------------------------------------------
Flextronics International Ltd., Sr. Sec. Credit Facilities Term Loan,
7.394%-7.395%, 10/1/14 1 18,596,250 18,119,721
---------------
23,319,858
- ----------------------------------------------------------------------------------------------------------------------
SOFTWARE--1.9%
Kronos, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.08%, 5/9/14 1 4,585,039 4,092,147
- ----------------------------------------------------------------------------------------------------------------------
Nuance Communications, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 7.35%, 3/31/13 1 1,994,975 1,888,992
Tranche B, 7.35%, 3/31/13 1 23,720,695 22,460,533
- ----------------------------------------------------------------------------------------------------------------------
Verint Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.381%,
5/9/14 1,2 21,115,385 18,898,269
---------------
47,339,941
- ----------------------------------------------------------------------------------------------------------------------
MATERIALS--10.7%
- ----------------------------------------------------------------------------------------------------------------------
CHEMICALS--5.5%
Brenntag AG, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 5.794%-7.387%, 12/31/13 1 12,054,546 11,170,550
- ----------------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 7.794%, 6/30/15 1,2 3,000,000 2,805,000
- ----------------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities Acquisition Term Loan,
5.794%, 12/31/13 1 2,945,455 2,729,456
24 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
CHEMICALS Continued
Cristal Inorganic Chemicals, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.08%, 5/15/14 1 $ 12,000,000 $ 10,740,000
- ----------------------------------------------------------------------------------------------------------------------
Hexion Specialty Chemicals, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche C-1, 7%, 5/5/13 1 11,453,318 10,786,804
Tranche C-5, 7.125%, 5/3/13 1 1,492,500 1,405,645
Tranche C-2, 7.125%, 5/5/13 1 2,411,682 2,271,336
Tranche C-4, 7.188%, 5/5/13 1 8,887,500 8,370,301
- ----------------------------------------------------------------------------------------------------------------------
Huntsman International LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.035%, 8/16/12 1 10,550,487 10,022,962
- ----------------------------------------------------------------------------------------------------------------------
Ineos Group Ltd., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.357%, 12/16/13 1 7,421,633 6,880,469
Tranche C, 7.857%, 12/14/14 1 7,419,598 6,878,583
- ----------------------------------------------------------------------------------------------------------------------
ISP Chemco, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B Add-On, 6.438%-6.938%, 6/4/14 1 5,949,330 5,551,470
- ----------------------------------------------------------------------------------------------------------------------
Lucite International Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 5.50%, 7/19/13 1,2 3,228,053 2,969,809
- ----------------------------------------------------------------------------------------------------------------------
Lucite International Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
5.50%, 7/7/13 1 7,639,389 7,028,238
- ----------------------------------------------------------------------------------------------------------------------
Solutia, Inc., Sr. Sec. Credit Facilities Term Loan, Debtor in Possession,
Tranche B, 8.06%, 3/31/08 1,2 31,189,553 30,819,177
- ----------------------------------------------------------------------------------------------------------------------
Univar USA OPCO, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.887%, 10/10/14 1 2,200,000 2,139,500
- ----------------------------------------------------------------------------------------------------------------------
Wellman, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 8.911%, 2/10/09 1 12,500,000 10,000,000
---------------
132,569,300
- ----------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--2.2%
Berry Plastics Group, Inc., Sr. Sec. Credit Facilities Term Loan, 7.16%, 4/3/15 1 10,900,088 9,449,700
- ----------------------------------------------------------------------------------------------------------------------
Consolidated Container Co., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 8.751%-10.581%, 9/28/14 1 5,000,000 2,958,335
- ----------------------------------------------------------------------------------------------------------------------
Consolidated Container Co., Sr. Sec. Credit Facilities Property,
Plant & Equipment Term Loan, 5.501%-5.531%, 3/23/14 1 8,932,500 7,346,981
- ----------------------------------------------------------------------------------------------------------------------
Graham Packaging Co. LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.813%-7.75%, 10/18/11 1 19,850,001 18,457,740
- ----------------------------------------------------------------------------------------------------------------------
Tegrant Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.60%, 3/7/14 1,2
19,353,750 16,160,381
---------------
54,373,137
- ----------------------------------------------------------------------------------------------------------------------
METALS & MINING--1.3%
Aleris International, Inc., Sr. Sec. Credit Facilities Term Loan, 6%, 12/19/13 1 21,839,736 18,327,186
- ----------------------------------------------------------------------------------------------------------------------
Murray Energy Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.906%, 1/28/10 1,2 13,548,357 12,938,681
---------------
31,265,867
25 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--1.7%
Boise Cascade LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche E, 4.781%, 4/30/14 1 $ 14,417,881 $ 14,219,635
- ----------------------------------------------------------------------------------------------------------------------
Boise Cascade LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 4.781%, 4/30/14 1 2,961,212 2,920,495
- ----------------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche A, 4.994%-6.896%, 12/20/10 1 1,700,000 1,612,165
- ----------------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 6.58%-6.896%, 12/20/12 1 1,588,426 1,470,287
Tranche B2, 6.58%-6.896%, 12/22/12 1 10,870,330 10,061,849
- ----------------------------------------------------------------------------------------------------------------------
NewPage Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.688%, 11/5/14 1 12,600,000 12,271,001
---------------
42,555,432
- ----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.4%
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.1%
West Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B3, 7.428%, 10/24/13 1 1,421,790 1,315,689
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.0%
Cincinnati Bell, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.771%-7.064%, 8/31/12 1 3,255,476 3,117,116
- ----------------------------------------------------------------------------------------------------------------------
IPC Systems, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B1, 7.093%, 5/31/14 1 30,631,212 25,557,918
- ----------------------------------------------------------------------------------------------------------------------
ITC DeltaCom Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.83%, 7/12/13 1,2 22,500,000 21,453,750
- ----------------------------------------------------------------------------------------------------------------------
Time Warner Telecom, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.28%, 1/7/13 1 16,594,975 15,815,011
- ----------------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
11.081%, 7/15/09 1,2 8,591,285 8,591,285
---------------
74,535,080
- ----------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--1.3%
Crown Castle Operating Co., Sr. Sec. Credit Facilities Term Loan,
6.33%, 3/2/14 1 12,053,520 11,183,943
- ----------------------------------------------------------------------------------------------------------------------
Intelsat Holding Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.131%, 2/1/14 1 1,000,000 979,583
- ----------------------------------------------------------------------------------------------------------------------
MetroPCS Wireless, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.125%-7.188%, 11/4/13 1 7,996,027 7,486,280
- ----------------------------------------------------------------------------------------------------------------------
Telesat Canada, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.25%-8.09%, 10/23/14 1 10,897,638 10,339,134
- ----------------------------------------------------------------------------------------------------------------------
Telesat Canada, Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
Tranche B, 1.50%-8%, 10/23/14 1 1,337,473 1,268,927
---------------
31,257,867
26 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
UTILITIES--8.0%
- ----------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--7.3%
Ashmore Energy International, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.83%, 3/30/14 1 $ 29,947,477 $ 27,701,416
- ----------------------------------------------------------------------------------------------------------------------
Boston Generating LLC, Sr. Sec. Credit Facilities1st Lien Term Loan,
7.08%, 12/19/13 1 25,895,913 22,998,808
- ----------------------------------------------------------------------------------------------------------------------
Calpine Construction Finance Co. LP, Sr. Sec. Credit Facilities
1st Lien Term Loan, 10.83%, 8/26/09 1,2 18,371,427 18,555,141
- ----------------------------------------------------------------------------------------------------------------------
Guadalupe Power Plant, Inc., Sr. Sec. Credit Facilities Term Loan,
6.75%, 12/31/09 1,2 7,163,736 7,002,552
- ----------------------------------------------------------------------------------------------------------------------
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities
2nd Lien Term Loan, 8.33%, 8/16/13 1 13,000,000 11,212,500
- ----------------------------------------------------------------------------------------------------------------------
Liberty Electric Power LLC, Sr. Sec. Credit Facilities Term Loan,
7.865%, 10/30/14 1 20,947,500 20,528,550
- ----------------------------------------------------------------------------------------------------------------------
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC,
Sr. Sec. Credit Facilities Term Loan, 7.494%-9.21%, 6/24/11 1,2 33,123,606 32,668,156
- ----------------------------------------------------------------------------------------------------------------------
Texas Competitive Electric Holdings Company LLC, Sr. Sec.
Credit Facilities Term Loan, Tranche B2, 8.396%, 10/10/14 1 20,947,500 19,316,926
- ----------------------------------------------------------------------------------------------------------------------
TPF Generation Holdings LLC, Sr. Sec. Credit Facilities
1st Lien Term Loan, 6.83%, 12/15/13 1 12,275,337 11,063,147
- ----------------------------------------------------------------------------------------------------------------------
USPF Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
6.293%-6.963%, 4/11/14 1,2 6,965,000 6,407,800
---------------
177,454,996
- ----------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES--0.7%
Calpine Corp., Sr. Sec. Credit Facilities Term Loan, Debtor in Possession,
Tranche B, 7.08%, 3/29/09 1 19,308,017 17,280,679
---------------
Total Corporate Loans (Cost $2,805,611,143) 2,576,257,426
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--1.0%
- ----------------------------------------------------------------------------------------------------------------------
Cognis GmbH, 6.991% Sr. Sec. Bonds, 9/15/13 1,2 7,750,000 6,471,250
- ----------------------------------------------------------------------------------------------------------------------
LightPoint CLO Ltd. VII, 8.869% Nts., Series 2007-1A, 5/15/21 1,2 4,500,000 3,042,000
- ----------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 10.508% Sr. Sec. Nts., 1/15/13 1,4 5,000,000 4,337,500
- ----------------------------------------------------------------------------------------------------------------------
XM Satellite Radio, Inc., 9.411% Sr. Unsec. Nts., 5/1/13 1 12,000,000 10,320,000
---------------
Total Corporate Bonds and Notes (Cost $28,780,349) 24,170,750
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANY--11.5%
- ----------------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional Money Market Fund, Cl. E, 4.54% 5,6
(Cost $280,000,000) 280,000,000 280,000,000
27 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $3,114,391,492) 118.5% $ 2,880,428,176
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (18.5) (450,094,308)
------------------------
NET ASSETS 100.0% $ 2,430,333,868
========================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Represents the current interest rate for a variable or increasing rate
security.
2. Illiquid security. The aggregate value of illiquid securities as of January
31, 2008 was $830,637,332, which represents 34.18% of the Fund's net assets. See
Note 6 of accompanying Notes.
3. Issue is in default. See Note 1 of accompanying Notes.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $4,337,500 or 0.18% of the Fund's net
assets as of January 31, 2008.
5. Rate shown is the 7-day yield as of January 31, 2008.
6. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended January 31, 2008, by virtue of the Fund owning at
least 5% of the voting securities of the issuer or as a result of the Fund and
the issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES
SHARES GROSS GROSS JANUARY 31,
JULY 31, 2007 ADDITIONS REDUCTIONS 2008
- ---------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional Money Market Fund, Cl. E -- 786,200,000 506,200,000 280,000,000
DIVIDEND
VALUE INCOME
- ---------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional Money Market Fund, Cl. E $ 280,000,000 $ 2,861,360
- --------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACTS AS OF JANUARY 31, 2008 ARE AS FOLLOWS:
- --------------------------------------------------------------------------------
PAY/
BUY/SELL NOTIONAL RECEIVE PREMIUM
REFERENCE CREDIT AMOUNT FIXED TERMINATION PAID/
SWAP COUNTERPARTY ENTITY PROTECTION (000S) RATE DATE (RECEIVED) VALUE
- --------------------------------------------------------------------------------------------------------------------
Credit Suisse
International LCDX.NA.9 Index Buy $ 50,000 2.25% 12/20/12 $ 2,712,500 $ 3,190,380
- --------------------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank
NA, Thru NY Branch:
LCDX.NA.9 Index Buy 100,000 2.25 12/20/12 4,962,500 6,380,760
LCDX.NA.9 Index Buy 50,000 2.25 12/20/12 2,712,500 3,190,380
- --------------------------------------------------------------------------------------------------------------------
Morgan Stanley
Capital Services, Inc. LCDX.NA.9 Index Buy 100,000 2.25 12/20/12 4,968,750 6,380,760
-------------------------
$15,356,250 $19,142,280
=========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2008
- -------------------------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $2,834,391,492) $ 2,600,428,176
Affiliated companies (cost $280,000,000) 280,000,000
----------------
2,880,428,176
- -------------------------------------------------------------------------------------------------------------
Cash 3,048,327
- -------------------------------------------------------------------------------------------------------------
Swaps, at value (premiums paid $15,356,250) 19,142,280
- -------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 121,797,927
Interest, dividends and principal paydowns 26,620,491
Other 37,351
----------------
Total assets 3,051,074,552
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 572,134,634
Investments purchased 46,696,464
Dividends 493,976
Distribution and service plan fees 448,787
Transfer and shareholder servicing agent fees 195,082
Trustees' compensation 8,268
Other 763,473
----------------
Total liabilities 620,740,684
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 2,430,333,868
================
- -------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 279,987
- -------------------------------------------------------------------------------------------------------------
Additional paid-in capital 2,801,522,787
- -------------------------------------------------------------------------------------------------------------
Accumulated net investment income 330,474
- -------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (141,622,094)
- -------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (230,177,286)
----------------
NET ASSETS $ 2,430,333,868
================
29 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,034,679,736 and 119,257,389 shares of beneficial interest outstanding) $ 8.67
Maximum offering price per share (net asset value plus sales charge of
3.50% of offering price) $ 8.98
- -------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable early withdrawal charge)
and offering price per share (based on net assets of $188,665,271 and
21,742,092 shares of beneficial interest outstanding) $ 8.68
- -------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable early withdrawal charge)
and offering price per share (based on net assets of $1,203,657,386 and 138,602,588 shares
of beneficial interest outstanding) $ 8.69
- -------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $3,331,475 and 384,643 shares of beneficial interest outstanding) $ 8.66
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2008
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME
- ----------------------------------------------------------------------------------------
Interest $138,484,722
- ----------------------------------------------------------------------------------------
Dividends from affiliated companies 2,861,360
- ----------------------------------------------------------------------------------------
Other income 324,151
-------------
Total investment income 141,670,233
- ----------------------------------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------------------------------
Management fees 10,382,117
- ----------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,507,561
Class B 881,178
Class C 6,134,839
- ----------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 641,665
Class B 177,272
Class C 673,548
Class Y 5,197
- ----------------------------------------------------------------------------------------
Shareholder communications:
Class A 46,209
Class B 9,946
Class C 40,298
Class Y 333
- ----------------------------------------------------------------------------------------
Interest expense 2,334,679
- ----------------------------------------------------------------------------------------
Custodian fees and expenses 409,227
- ----------------------------------------------------------------------------------------
Trustees' compensation 30,583
- ----------------------------------------------------------------------------------------
Administration service fees 750
- ----------------------------------------------------------------------------------------
Other 707,148
-------------
Total expenses 23,982,550
Less waivers and reimbursements of expenses (1,715,889)
-------------
Net expenses 22,266,661
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME 119,403,572
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ----------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments (80,198,814)
Increase from payment by affiliate 68,855
-------------
Net realized loss (80,129,959)
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (70,848,220)
Swap contracts 3,786,030
Unfunded loan commitments 34,353
-------------
Net change in unrealized depreciation (67,027,837)
- ----------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(27,754,224)
=============
31 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2008 JULY 31,
(UNAUDITED) 2007
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 119,403,572 $ 267,868,348
- --------------------------------------------------------------------------------------------------------------------
Net realized loss (80,129,959) (12,294,267)
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (67,027,837) (171,245,030)
-----------------------------------
Net increase (decrease) in net assets resulting from operations (27,754,224) 84,329,051
- --------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (52,600,769) (123,304,579)
Class B (8,067,271) (19,957,641)
Class C (56,824,629) (125,485,560)
Class Y (1,500,378) (839,665)
-----------------------------------
(118,993,047) (269,587,445)
- --------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (363,648,445) 28,838,106
Class B (48,415,403) (58,025,689)
Class C (394,767,184) 74,276,311
Class Y (55,321,877) 61,782,257
-----------------------------------
(862,152,909) 106,870,985
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Total decrease (1,008,900,180) (78,387,409)
- --------------------------------------------------------------------------------------------------------------------
Beginning of period 3,439,234,048 3,517,621,457
-----------------------------------
End of period (including accumulated net investment income
(loss) of $330,474 and $(80,051), respectively) $ 2,430,333,868 $ 3,439,234,048
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF CASH FLOWS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2008
- --------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- --------------------------------------------------------------------------------------------------
Net decrease in net assets from operations $ (27,754,224)
- --------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (625,495,422)
Proceeds from disposition of investment securities 1,912,759,706
Short-term investment securities, net (303,024,698)
Premium amortization 660,335
Discount accretion (1,130,948)
Net realized loss on investments 80,129,959
Net change in unrealized depreciation on investments 70,848,220
Net change in unrealized appreciation on unfunded loan commitments (34,353)
Net change in unrealized appreciation on swaps (3,786,030)
Decrease in interest receivable 5,333,592
Decrease in receivable for securities sold 47,556,099
Increase in other assets (18,759)
Decrease in payable for securities purchased (98,357,649)
Decrease in payable for accrued expenses (909,540)
-----------------
Net cash used in operating activities 1,056,776,288
- --------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- --------------------------------------------------------------------------------------------------
Proceeds from bank borrowings 893,800,000
Payments on bank borrowings (1,004,100,000)
Proceeds from shares sold 187,482,559
Payment on shares redeemed (1,128,257,989)
Cash distributions paid (47,788,578)
-----------------
Net cash provided by financing activities (1,098,864,008)
- --------------------------------------------------------------------------------------------------
Net decrease in cash (42,087,720)
- --------------------------------------------------------------------------------------------------
Cash, beginning balance 45,136,047
-----------------
Cash, ending balance $ 3,048,327
=================
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $71,432,666.
Cash paid for interest on bank borrowings--$2,720,911.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS A (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.11 $ 9.54 $ 9.54 $ 9.56 $ 9.24 $ 9.03
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 1 .69 1 .66 1 .53 1 .49 .55
Net realized and unrealized gain (loss) (.44) (.42) -- (.02) .30 .14
-------------------------------------------------------------------------------
Total from investment operations (.10) .27 .66 .51 .79 .69
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.34) (.70) (.66) (.53) (.47) (.48)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.67 $ 9.11 $ 9.54 $ 9.54 $ 9.56 $ 9.24
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (1.18)% 2.75% 7.10% 5.45% 8.78% 7.91%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,034,680 $1,460,069 $1,513,036 $1,038,746 $ 376,001 $ 44,028
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,395,334 $1,687,143 $1,292,028 $ 776,029 $ 146,224 $ 35,298
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 7.50% 7.26% 6.88% 5.63% 5.56% 6.23%
Total expenses 1.15% 4 1.07% 4 1.11% 1.09% 1.19% 1.39%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.05% 0.97% 0.97% 0.89% 0.99% 1.19%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 20% 105% 104% 114% 155% 121% 5
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and repurchase at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods less than one full year. Returns do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.15%
Year Ended July 31, 2007 1.07%
5. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER SENIOR FLOATING RATE FUND
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS B (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.12 $ 9.54 $ 9.54 $ 9.56 $ 9.24 $ 9.04
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 1 .64 1 .60 1 .48 1 .46 .52
Net realized and unrealized gain (loss) (.45) (.42) -- (.02) .28 .11
-------------------------------------------------------------------------------
Total from investment operations (.13) .22 .60 .46 .74 .63
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.31) (.64) (.60) (.48) (.42) (.43)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.68 $ 9.12 $ 9.54 $ 9.54 $ 9.56 $ 9.24
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (1.47)% 2.27% 6.49% 4.86% 8.18% 7.21%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 188,665 $ 247,726 $ 318,312 $ 344,337 $ 277,043 $157,057
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 232,881 $ 295,655 $ 334,997 $ 327,996 $ 201,260 $163,238
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.90% 6.71% 6.27% 5.06% 5.04% 5.70%
Total expenses 1.75% 4 1.65% 4 1.68% 1.66% 1.76% 1.93%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.65% 1.55% 1.54% 1.46% 1.56% 1.73%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 20% 105% 104% 114% 155% 121% 5
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and repurchase at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods less than one full year. Returns do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.75%
Year Ended July 31, 2007 1.65%
5. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS C (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.12 $ 9.55 $ 9.55 $ 9.57 $ 9.25 $ 9.04
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 1 .64 1 .61 1 .48 1 .45 .52
Net realized and unrealized gain (loss) (.43) (.42) -- (.02) .29 .12
--------------------------------------------------------------------------------
Total from investment operations (.11) .22 .61 .46 .74 .64
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.32) (.65) (.61) (.48) (.42) (.43)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.69 $ 9.12 $ 9.55 $ 9.55 $ 9.57 $ 9.25
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (1.32)% 2.24% 6.56% 4.92% 8.21% 7.35%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,203,657 $1,672,484 $1,686,272 $1,350,656 $ 615,744 $ 207,433
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,621,794 $1,843,725 $1,542,199 $1,065,783 $ 346,347 $ 210,987
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.98% 6.76% 6.36% 5.11% 5.05% 5.73%
Total expenses 1.67% 4 1.58% 4 1.61% 1.60% 1.71% 1.91%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.57% 1.48% 1.47% 1.40% 1.51% 1.71%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 20% 105% 104% 114% 155% 121% 5
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and repurchase at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods less than one full year. Returns do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.67%
Year Ended July 31, 2007 1.58%
5. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER SENIOR FLOATING RATE FUND
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS Y (UNAUDITED) 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.11 $ 9.54 $ 9.54
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .36 .69 .47
Net realized and unrealized gain (loss) (.46) (.39) --
------------------------------------
Total from investment operations (.10) .30 .47
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.35) (.73) (.47)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.66 $ 9.11 $ 9.54
====================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (1.16)% 3.14% 5.04%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 3,332 $ 58,955 $ 1
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 38,406 $ 11,372 $ 1
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 7.77% 7.34% 7.33%
Total expenses 0.84% 5 0.82% 5 0.96%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 0.74% 0.72% 0.85%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 20% 105% 104%
1. For the period from November 28, 2005 (inception of offering) to July 31,
2006.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and repurchase at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods less than one full year. Returns do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares.
4. Annualized for periods less than one full year.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 0.84%
Year Ended July 31, 2007 0.82%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Senior Floating Rate Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a closed-end management
investment company. The Fund seeks as high a level of current income and
preservation of capital as is consistent with investing primarily in senior
floating rate loans and other debt securities. The Fund's investment adviser is
OppenheimerFunds, Inc. (the "Manager").
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B and Class C shares are sold without an initial
sales charge but may be subject to an early withdrawal charge ("EWC"). Class Y
shares are sold to certain institutional investors without either a front-end
sales charge or a EWC, however, the institutional investor may impose charges on
those accounts. All classes of shares have identical rights and voting
privileges with respect to the Fund in general and exclusive voting rights on
matters that affect that class alone. Earnings, net assets and net asset value
per share may differ due to each class having its own expenses, such as transfer
and shareholder servicing agent fees and shareholder communications, directly
attributable to that class. Class A, B and C shares have separate distribution
and/or service plans. No such plan has been adopted for Class Y shares. Class B
shares will automatically convert to Class A shares 72 months after the end of
the month in which you purchase them.
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 trading. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities traded on a registered U.S.
securities exchange 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 whose principal exchange is NASDAQ(R) are valued based on the closing
price reported by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, as identified by the portfolio pricing service,
prior to the time when the Fund's assets are valued. In the absence of a sale,
the security is valued at the official closing price on the principal exchange.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities, collateralized
mortgage obligations and other asset-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities for which market
quotations are not readily available are valued at their fair value. Securities
whose values have been materially affected by what the Manager identifies as a
significant event occurring before the Fund's assets
38 | OPPENHEIMER SENIOR FLOATING RATE FUND
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. Shares of a
registered investment company that are not traded on an exchange are valued at
the acquired investment company's net asset value per share. "Money market-type"
debt instruments with remaining maturities of sixty days or less are valued at
cost adjusted by the amortization of discount or premium to maturity (amortized
cost), which approximates market value.
- --------------------------------------------------------------------------------
SENIOR LOANS. Under normal market conditions, the Fund will invest at least 80%
of its net assets (plus borrowings for investment purposes) in floating rate
Senior Loans made to U.S. and foreign borrowers that are corporations,
partnerships or other business entities. The Fund will do so either as an
original lender or as a purchaser of a loan assignment or a participation
interest in a loan. While most of these loans will be collateralized, the Fund
can also under normal market conditions invest up to 10% of its net assets (plus
borrowings for investment purposes) in uncollateralized floating rate Senior
Loans. Senior Loans are often issued in connection with recapitalizations,
acquisitions, leveraged buyouts, and refinancing of borrowers. The Senior Loans
pay interest at rates that float above (or are adjusted periodically based on) a
benchmark that reflects current interest rates. Senior Loans generally are not
listed on any national securities exchange or automated quotation system and no
active trading market exists for many Senior Loans. As a result, many Senior
Loans are illiquid, meaning the Fund may not be able to value them accurately or
to sell them quickly at a fair price. To the extent that a secondary market does
exist for certain Senior Loans, the market may be subject to irregular trading
activity, wide bid/ask spreads and extended trade settlement periods.
As of January 31, 2008, securities with an aggregate market value of
$2,576,257,426, representing 106.00% of the Fund's net assets were comprised of
Senior Loans, of which $821,124,082 representing 33.79% of the Fund's net
assets, were illiquid.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. Senior loans are subject to credit risk. Credit risk
relates to the ability of the borrower under a senior loan to make interest and
principal payments as they become due. The Fund's investments in senior loans
are subject to risk of default. As of January 31, 2008, securities with an
aggregate market value of $1,824,230, representing 0.08% of the Fund's net
assets, were in default.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee. The Manager will waive fees and/or
reimburse Fund expenses in an amount equal to the indirect management fees
incurred through the Fund's investment in IMMF.
39 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
INVESTMENTS WITH OFF-BALANCE SHEET RISK. The Fund enters into financial
instrument transactions (such as swaps, futures, options and other derivatives)
that may have off-balance sheet market risk. Off-balance sheet market risk
exists when the maximum potential loss on a particular financial instrument is
greater than the value of such financial instrument, as reflected in the Fund's
Statement of Assets and Liabilities.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders. Therefore, no federal income or excise tax provision is
required. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
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 January 31, 2008, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $140,594,785 expiring by
2016. 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. During the
six months ended January 31, 2008, it is estimated that the Fund will not
utilize any capital loss carryforward to offset realized capital gains. During
the fiscal year ended July 31, 2007, the Fund did not utilize any capital loss
carryforward to offset capital gains realized in that fiscal year.
As of July 31, 2007, the Fund had available for federal income tax purposes
post-October losses of $12,119,261 and unused capital loss carryforwards as
follows:
EXPIRING
------------------------
2010 $ 10,765,372
2011 26,003,298
2014 4,679,034
2015 6,897,861
------------
Total $ 48,345,565
============
40 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation
deferral 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 compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, 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 is recognized on an accrual basis. Market discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
41 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
Each quarter the Fund intends to make a "Repurchase Offer" to repurchase a
portion of the Fund's outstanding shares from shareholders. The Repurchase
Offers are designed to provide some liquidity for Fund investors who wish to
sell some or all of their shares. The Fund has adopted the following fundamental
policies concerning periodic repurchase offers:
o The Fund will make periodic Repurchase Offers, pursuant to Rule
23c-3 under the Investment Company Act of 1940 (as that rule may be
amended from time to time).
o Repurchase offers shall be made at periodic intervals of three
months between repurchase request deadlines. The deadlines will be
at the time on a regular business day (normally the last regular
business day) in the months of January, April, July and October to
be determined by the Fund's Board of Trustees.
o The repurchase pricing date for a particular Repurchase Offer shall
be not more than 14 days after the repurchase request deadline for
the repurchase offer. If that day is not a regular business day,
then the repurchase pricing date will be the following business day.
Each quarter, the Fund's Board will determine the number of shares that
the Fund will offer to repurchase in a particular Repurchase Offer. The
Repurchase Offer amount will be at least 5% but not more than 25% of the total
number of shares of all classes of the Fund (in the aggregate) outstanding on
the repurchase request deadline. If shareholders tender more than the Repurchase
Offer amount for a particular Repurchase Offer, the Fund may repurchase up to an
additional 2% of the shares outstanding on the repurchase request deadline.
For the six months ended January 31, 2008, the Fund extended two Repurchase
Offers:
PERCENTAGE OF AMOUNT OF
REPURCHASE OUTSTANDING SHARES SHARES THE NUMBER OF
REQUEST THE FUND OFFERED FUND OFFERED SHARES TENDERED
DEADLINES TO REPURCHASE TO REPURCHASE (ALL CLASSES)
-----------------------------------------------------------------------
January 31, 2008 25% $ 86,538,321 66,544,763
October 31, 2007 25 98,444,087 82,201,966
The Fund is authorized to issue an unlimited number of shares of each class and
at the date of this report has registered 903,615,584 shares, par value $0.001
each. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JANUARY 31, 2008 YEAR ENDED JULY 31, 2007
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS A
Sold 10,881,631 $ 99,323,074 82,069,921 $ 782,226,772
Dividends and/or
distributions reinvested 3,323,645 29,987,802 7,445,864 70,687,055
Repurchased (55,158,474) (492,959,321) (87,923,093) (824,075,721)
------------------------------------------------------------
Net increase (decrease) (40,953,198) $ (363,648,445) 1,592,692 $ 28,838,106
============================================================
42 | OPPENHEIMER SENIOR FLOATING RATE FUND
SIX MONTHS ENDED JANUARY 31, 2008 YEAR ENDED JULY 31, 2007
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS B
Sold 832,797 $ 7,571,936 6,315,690 $ 60,203,397
Dividends and/or
distributions reinvested 616,707 5,563,862 1,456,164 13,837,604
Repurchased (6,878,582) (61,551,201) (13,957,612) (132,066,690)
------------------------------------------------------------
Net decrease (5,429,078) $ (48,415,403) (6,185,758) $ (58,025,689)
============================================================
- --------------------------------------------------------------------------------------------
CLASS C
Sold 8,358,700 $ 76,163,379 60,821,455 $ 580,101,497
Dividends and/or
distributions reinvested 3,834,284 34,631,766 8,354,307 79,413,683
Repurchased (56,886,794) (505,562,329) (62,454,187) (585,238,869)
------------------------------------------------------------
Net increase (decrease) (44,693,810) $ (394,767,184) 6,721,575 $ 74,276,311
============================================================
- --------------------------------------------------------------------------------------------
CLASS Y
Sold 488,110 $ 4,424,170 6,679,603 $ 63,649,783
Dividends and/or
distributions reinvested 137,297 1,249,236 77,270 719,087
Repurchased (6,713,830) (60,995,283) (283,912) (2,586,613)
------------------------------------------------------------
Net increase (decrease) (6,088,423) $ (55,321,877) 6,472,961 $ 61,782,257
============================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
January 31, 2008, were as follows:
PURCHASES SALES
-------------------------------------------------------
Investment securities $ 625,495,422 $ 1,912,759,706
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the
Manager a management fee based on the daily net assets of the Fund at an annual
rate as shown in the following table:
FEE SCHEDULE
---------------------------------
Up to $200 million 0.75%
Next $200 million 0.72
Next $200 million 0.69
Next $200 million 0.66
Over $800 million 0.60
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year
for preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended January 31, 2008, the
Fund paid $1,566,461 to OFS for services to the Fund.
43 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
Additionally, Class Y shares are subject to minimum fees of $10,000
annually for assets of $10 million or more. The Class Y shares are subject to
the minimum fees in the event that the per account fee does not equal or exceed
the applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the "Distributor")
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund reimburses the Distributor for a portion of its
costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically at an annual rate of up to 0.25% of the
average annual net assets of Class A shares of the Fund. The Distributor
currently uses all of those fees to pay dealers, brokers, banks and other
financial institutions periodically for providing personal service and
maintenance of accounts of their customers that hold Class A shares. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent periods. Fees incurred by the
Fund under the Plan are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans (the "Plans") for Class B and Class C
shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the
Distributor for its services in connection with the distribution of those shares
and servicing accounts. Under the Plans, the Fund pays the Distributor an annual
asset-based sales charge of 0.75% on Class B and Class C shares. The Board of
Trustees has currently set that fee at 0.50% of average annual net assets of the
respective class per year under each plan but may increase it up to 0.75% in the
future. The Distributor also receives a service fee of 0.25% per year under each
plan. If either the Class B or Class C plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the Plans at December 31,
2007 for Class B and Class C shares were $7,443,031 and $39,405,804,
respectively. Fees incurred by the Fund under the Plans are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and early withdrawal charges ("EWC") do
not represent expenses of the Fund. They are deducted from the proceeds of sales
of Fund shares prior to investment or from redemption proceeds prior to
remittance, as applicable. The sales charges retained by the Distributor from
the sale of shares and the EWC
44 | OPPENHEIMER SENIOR FLOATING RATE FUND
retained by the Distributor on the redemption of shares is shown in the
following table for the period indicated.
CLASS A CLASS B CLASS C
CLASS A EARLY EARLY EARLY
FRONT-END WITHDRAWAL WITHDRAWAL WITHDRAWAL
SALES CHARGES CHARGES CHARGES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
January 31, 2008 $ 121,545 $ 74,185 $ 202,191 $ 241,989
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective January 1, 2006, the Manager
reduced its voluntary waiver of management fees from 0.20% of average annual net
assets to 0.10% of average annual net assets. As a result of this agreement, the
Fund was reimbursed $1,659,791 for the six months ended January 31, 2008. The
Manager may amend or terminate this voluntary waiver at any time.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the six months ended January 31, 2008, the Manager waived $56,098
for IMMF management fees.
During the six months ended January 31, 2008, the Manager voluntarily
reimbursed the Fund $68,855 for certain transactions. The payment increased the
Fund's total return by less than 0.01%.
- --------------------------------------------------------------------------------
5. SWAP CONTRACTS
The Fund may enter into swap contract agreements with a counterparty to exchange
a series of cash flows based on either specified reference rates, or the
occurrence of a credit event, over a specified period. Such contracts may
include interest rate, equity, debt, index, total return, credit and currency
swaps.
Swaps are marked to market daily using primarily quotations from pricing
services, counterparties and brokers. Swap contracts are reported on a schedule
following the Statement of Investments. The value of the contracts is separately
disclosed on the Statement of Assets and Liabilities. The unrealized
appreciation (depreciation) related to the change in the valuation of the
notional amount of the swap is combined with the accrued interest due to (owed
by) the Fund at termination or settlement. The net change in this amount during
the period is included on the Statement of Operations. The Fund also records any
periodic payments received from (paid to) the counterparty, including at
termination, under such contracts as realized gain (loss) on the Statement of
Operations.
Risks of entering into swap contracts include credit, market and liquidity
risk. Credit risk arises from the possibility that the counterparty will
default. If the counterparty defaults, the Fund's loss will consist of the net
amount of contractual payments that the Fund has not yet received. Market risk
is the risk that the value of the contract will depreciate due to
45 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. SWAP CONTRACTS Continued
unfavorable changes in the reference asset. If there is an illiquid market for
the agreement, the Fund may be unable to close the contract prior to contract
termination.
- --------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract
that enables an investor to buy or sell protection against a defined-issuer
credit event. The Fund may enter into credit default swaps on a single security,
or a basket of securities.
In a credit default swap contract, the purchaser of the contract will pay
a periodic interest fee, similar to an insurance premium, on the notional amount
of the swap contract to the counterparty (the seller of the contract). If there
is a credit event (for example, bankruptcy or a failure to timely pay interest
or principal), the purchaser will exercise the contract and will receive a
payment from the seller of the contract equal to the notional value of the
credit default swap contract less the value of the underlying security. In the
event that the credit default swap is exercised due to a credit event, the
difference between the value of the underlying security and the notional amount
is recorded as realized gain (loss) and is included on the Statement of
Operations.
Risks of credit default swaps include, but are not limited to, the cost of
paying for credit protection if there are no credit events, pricing transparency
when assessing the cost of a credit default swap, and the need to fund the
delivery obligation (either cash or defaulted securities).
- --------------------------------------------------------------------------------
6. ILLIQUID SECURITIES
As of January 31, 2008, investments in securities included issues that are
illiquid. Investments may be illiquid because they do not have an active trading
market, making it difficult to value them or dispose of them promptly at an
acceptable price. Securities that are illiquid are marked with an applicable
footnote on the Statement of Investments.
- --------------------------------------------------------------------------------
7. LOAN COMMITMENTS
Pursuant to the terms of certain credit agreements, the Fund can have unfunded
loan commitments. As of January 31, 2008, the Fund did not have any unfunded
loan commitments. The Fund generally will maintain with its custodian, liquid
investments having an aggregate value at least equal to the amount of unfunded
loan commitments.
- --------------------------------------------------------------------------------
8. BORROWINGS
The Fund can borrow money from banks in amounts up to one third of its total
assets (including the amount borrowed) less all liabilities and indebtedness
other than borrowings to purchase portfolio securities, to meet redemption
obligations or for temporary and emergency purposes. The purchase of securities
with borrowed funds creates leverage in the Fund. The use of leverage will
subject the Fund to greater costs than funds that do not borrow for leverage,
and may also make the Fund's share price more sensitive to interest changes. The
interest on borrowed money is an expense that might reduce the Fund's yield.
46 | OPPENHEIMER SENIOR FLOATING RATE FUND
Expenses incurred by the Fund with respect to interest on borrowings and
commitment fees are disclosed separately or as other expenses on the Statement
of Operations.
The Fund entered into a Revolving Credit and Security Agreement (the
"Agreement") with a conduit lender and a bank which enables it to participate
with certain other Oppenheimer funds in a committed, secured borrowing facility
that permits borrowings of up to $1,250,000,000, collectively. To secure the
loan, the Fund pledges investment securities in accordance with the terms of the
Agreement. Interest is charged to the Fund, based on its borrowings, at current
commercial paper issuance rates (4.6038% as of January 31, 2008). The Fund pays
additional fees annually to its lender on its outstanding borrowings to manage
and administer the facility and is allocated its pro-rata share of an annual
commitment fee on the amount of the unused portion of total facility size. The
Fund has the right to prepay such loans and terminate its participation in the
conduit loan facility at any time upon prior notice.
For the six months ended January 31, 2008, the Fund had borrowings outstanding
at an interest rate of 4.6038%. Details of the borrowings for the six months
ended January 31, 2008, are listed in the following table.
Average Daily Loan Balance $87,604,348
Average Daily Interest Rate 5.206%
Fees Paid $ 332,600
Interest Paid $ 2,720,911
As of January 31, 2008, the Fund had no borrowings outstanding.
- --------------------------------------------------------------------------------
9. RECENT ACCOUNTING PRONOUNCEMENT
In September 2006, Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE
MEASUREMENTS. This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and expands
disclosures about fair value measurements. SFAS No. 157 applies to fair value
measurements already required or permitted by existing standards. SFAS No. 157
is effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. As of January
31, 2008, the Manager does not believe the adoption of SFAS No. 157 will
materially impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements on changes in net assets for the
period.
47 | OPPENHEIMER SENIOR FLOATING RATE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the Fund's
investment advisory agreement (the "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 Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information, that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services, (v) whether economies of scale
are realized as the Fund grows and whether fee levels reflect these economies of
scale for Fund investors and (vi) other benefits to the Manager from its
relationship with the Fund. Outlined below is a summary of the principal
information considered by the Board as well as the Board's conclusions.
The Board was aware that there are alternatives to retaining the Manager.
NATURE, QUALITY, AND EXTENT OF SERVICES. The Board considered information
about the nature and extent of the services provided to the Fund and information
regarding the Manager's key personnel who provide such services. The Manager's
duties include providing the Fund with 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; securities trading
services; oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing and supervising
all administrative and clerical personnel who are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining
records with respect to the Fund's operations; preparing and filing reports
required by the Securities and Exchange Commission; preparing periodic reports
regarding the operations of the Fund for its shareholders; preparing proxy
materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Fund's shares.
The Manager also provides the Fund with office space, facilities and equipment.
48 | OPPENHEIMER SENIOR FLOATING RATE FUND
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
took account of the fact 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 has received regarding the experience and professional qualifications of
the Manager's key personnel and the size and functions of its staff providing
investment management services to the Fund. In its evaluation of the quality of
the portfolio management services provided, the Board considered the experience
of Arthur Zimmer, Joesph Welsh, and Margaret Hui. Messrs. Zimmer and Welsh have
been portfolio managers of the Fund since September 1999, and Ms. Hui has been a
portfolio manager of the Fund since October 1999. The Board members also
considered the totality of their experiences with the Manager as directors or
trustees of the Fund and other funds advised by the Manager. In light of the
foregoing, the Board concluded that the Fund benefits from the services provided
under the Agreement as a result of the Manager's experience, reputation,
personnel, operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the investment performance of the Fund and the
Manager at each Board meeting, including comparative performance information.
The Board also 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 loan
participation funds. The Board noted that the Fund's one-year performance was
better than its peer group median and its three-year and five-year performance
was equal to its peer group median.
COSTS OF SERVICES AND PROFITS REALIZED BY THE MANAGER. The Board
considered information regarding the Manager's costs in serving as the Fund's
investment adviser, including the costs associated with the personnel and
systems necessary to manage the Fund, and information regarding the Manager's
profitability from its relationship with the Fund. The Board reviewed the fees
paid to the Manager and the other expenses borne by the Fund. The Board also
considered the comparability of the fees charged and the services provided to
the Fund to the fees and services for other clients or accounts advised by the
Manager. The independent consultant provided comparative data in regard to the
fees and expenses of the Fund, other nonleveraged closed-end loan participation
funds. The Board noted that the Manager has agreed to voluntarily waive fees its
management fee by 0.10% of average annual net assets. This waiver may
49 | OPPENHEIMER SENIOR FLOATING RATE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
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be withdrawn or amended at any time. The Board noted that the Fund's contractual
and actual management fees are lower than its peer group median.
ECONOMIES OF SCALE. The Board reviewed whether the Manager may realize
economies of scale in managing and supporting the Fund. The Board noted that the
Fund currently has management fee breakpoints, which are intended to share with
Fund shareholders economies of scale that may exist as the Fund's assets grow.
OTHER BENEFITS TO THE MANAGER. In addition to considering the profits
realized by the Manager, 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. The Board also considered that the Manager must be able to pay and
retain experienced professional personnel at competitive rates to provide
quality 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.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and to the independent Trustees. Fund counsel and the independent
Trustees' counsel are both independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
decided to continue the Agreement for another year. In arriving at this
decision, the Board considered all of the above information, and considered the
terms and conditions of the Agreement, including the management fee, in light of
all of the surrounding circumstances.
50 | OPPENHEIMER SENIOR FLOATING RATE FUND
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 the 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.
51 | OPPENHEIMER SENIOR FLOATING RATE FUND
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. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to semiannual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to semiannual reports.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
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Total Number of Shares
Purchased as Part of Maximum Number of Shares that
Total Number of Average Price Publicly Announced May Yet Be Purchased Under the
Period Shares Purchased Paid per Share Plans or Programs Plans or Programs
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October 1, 2007 Class A - 18,655,145 Class A - $9.18 Class A - 18,655,145 0
through October Class B - 35,411,312 Class B - $9.19 Class B - 35,411,312
31, 2007 1 Class C - 26,450,074 Class C - $9.19 Class C - 26,450,074
Class Y - 1,685,435 Class Y - $9.18 Class Y - 1,685,435
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January 2. 2008 Class A - 27,467,087 Class A - $8.67 Class A - 27,467,087 0
through January Class B - 3,110,784 Class B - $8.68 Class B - 3,311,784
31, 2008 2 Class C - 34,704,847 Class C - $8.69 Class C - 34,704,847
Class Y - 1,262,045 Class Y - $8.66 Class Y - 1,262,045
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Total Class A - 46,122,232 -- Class A - 46,122,232 0
Class B - 38,522,096 Class B - 38,723,096
Class C - 61,154,921 Class C - 61,154,921
Class Y - 2,947,480 Class Y - 2,947,480
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ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by executive
search firms which the Committee may engage from time to time and may also
consider shareholder recommendations. The Committee may consider the advice
and recommendation of the Funds' investment manager and its affiliates in
making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met by
a trustee nominee. In evaluating trustee nominees, the Committee considers,
among other things, an individual's background, skills, and experience;
whether the individual is an "interested person" as defined in the
Investment Company Act of 1940; and whether the individual would be deemed
an "audit committee financial expert" within the meaning of applicable SEC
rules. The Committee also considers whether the individual's background,
skills, and experience will complement the background, skills, and
experience of other nominees and will contribute to the Board. There are no
differences in the manner in which the Committee evaluates nominees for
trustees based on whether the nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates to
present to the Board and, in such cases where required, to shareholders.
Recommendations for trustee nominees should, at a minimum, be accompanied
by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person" as
defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in a
proxy statement concerning the person if he or she was nominated; and
o the name and address of the person submitting the recommendation and,
if that person is a shareholder, the period for which that person held
Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under the
Investment Company Act of 1940. In addition, certain other relationships
with Massachusetts Mutual Life Insurance Company or its subsidiaries, with
registered broker-dealers, or with the Funds' outside legal counsel may
cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving as
a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the 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 01/31/2008, the registrant's principal executive officer and
principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
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 Senior Floating Rate Fund
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 03/11/2008
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: 03/11/2008
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 03/11/2008