-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Nov24bC1sxlPDKMSslf+5ulxVNA9KQGQ6mJdIMdUbXv1raFiXL4Bf7hUYbrwNlz/ PaJzYEgCmzoKK/vjPGaiow== 0000950123-10-089939.txt : 20100929 0000950123-10-089939.hdr.sgml : 20100929 20100929115412 ACCESSION NUMBER: 0000950123-10-089939 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20100730 FILED AS OF DATE: 20100929 DATE AS OF CHANGE: 20100929 EFFECTIVENESS DATE: 20100929 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER SENIOR FLOATING RATE FUND CENTRAL INDEX KEY: 0001087774 IRS NUMBER: 911986511 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-09373 FILM NUMBER: 101095516 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 0001087774 S000029418 Oppenheimer Senior Floating Rate Fund C000090347 A C000090348 B C000090349 C C000090350 Y N-CSR 1 g06551nvcsr.htm FORM N-CSR nvcsr
 
 
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
Oppenheimer Senior Floating Rate Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)
Registrant’s telephone number, including area code: (303) 768-3200
Date of fiscal year end: July 31
Date of reporting period: 07/30/2010
 
 

 


 

Item 1. Reports to Stockholders.
(GRAPHIC)
July 30, 2010 Oppenheimer            Management Senior Floating Rate            Commentary and Fund Annual Report MANAGEMENT COMMENTARY An Interview with Your Fund’s Portfolio Managers ANNUAL REPORT Listing of Top Holdings Fund Performance Discussion Listing of Investments Financial Statements

 


 

TOP HOLDINGS AND ALLOCATIONS
                         
Credit Allocation   NRSRO-Rated     Manager-Rated     Total  
 
AAA
    4.7 %     %     4.7 %
BBB
    2.2             2.2  
BB
    27.8       0.6       28.4  
B
    42.8       4.9       47.7  
CCC
    8.6       2.2       10.8  
C
    0.2       0.7       0.9  
D
    3.3       1.0       4.3  
 
    89.6       9.4       99.0  
Not Rated
                    1.0  
 
                     
Total
                    100.0 %
Percentages are as of July 30, 2010, are subject to change and are dollar-weighted based on the market value of the Fund’s securities and derivatives. The Fund’s investment adviser, OppenheimerFunds, Inc. (“OFI”), determines the “Credit Allocation” of the Fund’s securities and derivatives using ratings by “Nationally Recognized Statistical Rating Organizations” (“NRSROs”), such as Standard & Poor’s Corporation (“S&P”). If two or more NRSROs have assigned a rating to a security, the highest rating is used. For securities rated only by an NRSRO other than S&P, OFI converts that rating to the equivalent S&P credit rating. OFI may use its own credit analysis to assign ratings to securities not rated by an NRSRO using rating denominations similar to those of S&P. Securities issued or guaranteed by the U.S. Government or an agency or instrumentality thereof are assigned a credit rating equal to the sovereign credit rating assigned to the U.S. by S&P. A similar process is used for securities issued or guaranteed by a foreign sovereign or supranational entity. Fund assets invested in Oppenheimer Institutional Money Market Fund are assigned the Fund’s S&P rating, which is currently AAA. More information about securities ratings is contained in the Fund’s Statement of Additional Information.
7 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

TOP HOLDINGS AND ALLOCATIONS
         
Top Ten Corporate Loan Industries        
 
Media
    17.2 %
Commercial Services & Supplies
    7.8  
Health Care Providers & Services
    7.8  
Electric Utilities
    5.2  
Aerospace & Defense
    5.1  
Hotels, Restaurants & Leisure
    5.0  
Chemicals
    4.5  
IT Services
    2.9  
Containers & Packaging
    2.7  
Energy Equipment & Services
    2.6  
Portfolio holdings and allocations are subject to change. Percentages are as of July 30, 2010, and are based on net assets.
8 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FUND PERFORMANCE DISCUSSION
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of the Fund’s performance during its fiscal year ended July 30, 2010, followed by a graphical comparison of the Fund’s performance to an appropriate broad-based market index.1
Management’s Discussion of Fund Performance. For the 12-month period ended July 30, 2010, Oppenheimer Senior Floating Rate Fund’s Class A shares (without sales charge) returned 18.64%, outperforming its benchmark, the Credit Suisse First Boston (CSFB) Leveraged Loan Index, which returned 14.62%.
     The Fund benefited throughout the reporting period from the bank loan market’s robust rebound from depressed levels in the wake of the 2008 recession and financial crisis. As their confidence returned, investors turned to riskier assets that they perceived to be attractively valued relative to normalized economic and market conditions.
     The Fund also benefited from our security selection process, which focuses on fundamental research to help find loans priced at levels that, in our judgment, did not reflect their true creditworthiness and intrinsic values. During the reporting period, we found a number of opportunities in the top-performing aerospace-and-defense sector. We also established overweight exposure to broadcasting companies, which rebounded amid improved advertising revenues. An overweight position in transportation companies helped bolster the Fund’s relative performance when commercial shipping volumes increased during the economic recovery. The Fund also benefited from underweight exposure to some of the market’s lagging industry groups, including lodging, cable and services.
     Strong results in these market segments were offset to a degree by mild weakness in other areas. We were late to rallies in the chemicals, building products and housing areas, causing their returns to trail their respective components in the benchmark.
     As of the reporting period’s end, we remain optimistic regarding market conditions. In a slow-growth recovery, we believe that investors are likely to favor loans of companies with sound underlying business fundamentals. Moreover, we believe that investors seeking current income in today’s low interest-rate climate may increasingly turn to bank loans that offer highly competitive yields. Such an environment may be particularly well suited to the research-intensive investment process that helps make Oppenheimer Senior Floating Rate Fund part of The Right Way to Invest.
Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each class of shares of the Fund held until July 30, 2010. In the case of Class A, Class B, and Class C shares, performance
 
1.   The Fund’s return has been calculated through July 30, 2010, the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes to Financial Statements. The Index’s return is calculated through July 31, 2010.
9 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FUND PERFORMANCE DISCUSSION
is measured over a ten-fiscal-year period. In the case of Class Y shares, performance is measured from inception of the Class on November 28, 2005. The Fund’s performance reflects the deduction of the maximum initial sales charge on Class A shares, the applicable contingent deferred sales charge on Class B and Class C shares, and reinvestments of all dividends and capital gains distributions.
     The Fund’s performance is compared to the performance of the Credit Suisse First Boston (CSFB) Leveraged Loan Index, a representative index of tradable, senior secured, U.S. dollar-denominated, non-investment-grade loans. The Index cannot be purchased directly by investors. Index performance reflects the reinvestment of dividends but does not consider the effect of capital gains or transaction costs, and none of the data in the graphs that follow shows the effect of taxes. The Fund’s performance reflects the effects of Fund business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the securities in the Index.
10 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
1
(PERFORMANCE GRAPH)
The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, visit us at www.oppenheimerfunds.com, or call us at 1.800.525.7048. Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 3.50%; for Class B shares, the contingent deferred sales charge of 3% (1-year) and 1% (5-year); and for Class C shares, the 1% contingent deferred sales charge for the 1-year period. There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Fund returns do not consider capital gains or income taxes. See page 15 for further performance information.
 
1.   The Fund’s returns have been calculated through July 30, 2010, the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes to Financial Statements. The Index’s return is calculated through July 31, 2010.
11 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FUND PERFORMANCE DISCUSSION
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
1
(PERFORMANCE GRAPH)
12 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
1
(PERFORMANCE GRAPH)
The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, visit us at www.oppenheimerfunds.com, or call us at 1.800.525.7048. Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 3.50%; for Class B shares, the contingent deferred sales charge of 3% (1-year) and 1% (5-year); and for Class C shares, the 1% contingent deferred sales charge for the 1-year period. There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Fund returns do not consider capital gains or income taxes. See page 15 for further performance information.
 
1.   The Fund’s returns have been calculated through July 30, 2010, the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes to Financial Statements. The Index’s return is calculated through July 31, 2010.
13 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FUND PERFORMANCE DISCUSSION
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
1
(PERFORMANCE GRAPH)
The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, visit us at www.oppenheimerfunds.com, or call us at 1.800.525.7048. Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 3.50%; for Class B shares, the contingent deferred sales charge of 3% (1-year) and 1% (5-year); and for Class C shares, the 1% contingent deferred sales charge for the 1-year period. There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Fund returns do not consider capital gains or income taxes. See page 15 for further performance information.
 
1.   The Fund’s returns have been calculated through July 30, 2010, the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes to Financial Statements. The Index’s return is calculated through July 31, 2010.
14 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES
Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns shown do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Investors should consider the Fund’s investment objectives, risks, expenses and other charges carefully before investing. The Fund’s prospectus and, if available, the Fund’s summary prospectus contain 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 oppenheimerfunds.com. Read the prospectus and, if available, the summary prospectus carefully before investing.
The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings or industry sectors does not constitute a recommendation by OppenheimerFunds, Inc. Effective 6/1/10, the Fund’s investment objective changed to the following: the Fund seeks as high a level of current income as is consistent with investing primarily in senior floating rate loans and other debt securities. Effective 7/1/10, the Fund converted from a closed-end investment company to an open-end investment company. Accordingly, shareholders have the ability to redeem their shares on a daily basis at net asset value, less applicable sales charges.
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.
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. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 3% (1-year) and 1% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Class B shares are subject to an annual 0.50% asset-based sales charge (the Board of Trustees can increase the fee to 0.75%).
Class C shares of the Fund were first publicly offered on 9/8/99. Unless otherwise noted, 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 (the Board of Trustees can increase the fee to 0.75%).
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 a special agreement with the Distributor, and to present or former officers, directors, trustees or employees (and their
15 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES
eligible family members) of the Fund, the Manager, its affiliates, its parent company and the subsidiaries of its parent company, and retirement plans established for the benefit of such individuals.
An explanation of the calculation of performance is in the Fund’s Statement of Additional Information.
16 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FUND EXPENSES
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, contingent deferred sales 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 July 30, 2010.
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 or contingent deferred sales charges (loads), 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 “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.
17 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FUND EXPENSES Continued
                         
    Beginning     Ending     Expenses  
    Account     Account     Paid During  
    Value     Value     6 Months Ended  
    February 1, 2010     July 30, 2010     July 30, 2010  
 
Actual
                       
Class A
  $ 1,000.00     $ 1,044.40     $ 6.42  
Class B
    1,000.00       1,042.40       9.71  
Class C
    1,000.00       1,041.90       8.85  
Class Y
    1,000.00       1,047.30       4.86  
 
                       
Hypothetical
(5% return before expenses)
                       
Class A
    1,000.00       1,018.39       6.34  
Class B
    1,000.00       1,015.19       9.59  
Class C
    1,000.00       1,016.03       8.74  
Class Y
    1,000.00       1,019.92       4.79  
Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 180/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended July 30, 2010 are as follows:
         
Class   Expense Ratios
 
Class A
    1.27 %
Class B
    1.92  
Class C
    1.75  
Class Y
    0.96  
The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein. 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.
18 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS July 30, 2010*
                 
    Principal        
    Amount     Value  
 
Corporate Loans—92.5%
               
Consumer Discretionary—28.2%
               
Auto Components—0.9%
               
Dana Corp., Sr. Sec. Credit Facilities Term Loan, 3.75%-4.79%, 1/30/151
  $ 17,288,036     $ 16,956,677  
Automobiles—2.3%
               
Chrysler LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B1, 8/3/132
    55,167,889       620,639  
Ford Motor Co., Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.35%, 12/16/131
    41,566,871       40,467,096  
 
             
 
            41,087,735  
 
               
Hotels, Restaurants & Leisure—5.0%
               
24 Hour Fitness Worldwide, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.75%, 4/22/161
    8,860,000       8,268,596  
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 5.50%, 4/15/151
    7,500,000       7,488,233  
BLB Wembley plc, Sr. Sec. Credit Facilities 1st Lien Term Loan, 7/18/112
    7,875,682       5,696,740  
BLB Wembley plc, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 7/25/132,3
    8,000,000       240,000  
CCM Merger, Inc./MotorCity Casino, Sr. Sec. Credit Facilities Term Loan, Tranche B, 8.50%, 7/13/121
    7,422,999       7,334,851  
Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.587%, 5/4/131
    2,389,799       2,155,300  
Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 4.598%, 5/4/131
    3,164,551       2,854,030  
Golden Nugget, Inc., Sr. Sec Credit Facilities 1st Lien Term Loan, Tranche B, 3.135%, 6/30/141,4
    3,726,721       3,036,115  
Golden Nugget, Inc., Sr. Sec Credit Facilities 1st Lien Term Loan, Delayed Draw, 3.135%-3.214%, 6/8/141,4
    1,907,139       1,553,723  
Golden Nugget, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, Tranche 2L, 3.57%, 12/31/141
    7,000,000       3,430,000  
Harrah’s Operating Co., Inc., Sr. Sec. Credit Facilities Term Loan:
               
Tranche B1, 3.498%, 1/28/151
    4,554,229       3,908,731  
Tranche B2, 3.498%, 1/28/151
    4,890,018       4,210,613  
Tranche B3, 3.498%-3.533%, 1/28/151
    2,559,670       2,188,358  
Isle of Capri Casinos, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw:
               
Tranche A, 5%, 11/25/131
    973,947       923,058  
Tranche B, 5%, 11/25/131
    1,107,373       1,049,513  
Isle of Capri Casinos, Inc., Sr. Sec. Credit Facilities Term Loan, 5%, 11/25/131
    2,768,432       2,623,782  
Las Vegas Sands Corp., Sr. Sec. Credit Facilities Term Loan, Delayed Draw, Tranche B, 2.07%, 5/23/141
    7,016,392       6,529,630  
Las Vegas Sands Corp., Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 2.07%, 5/8/141
    3,282,442       3,054,723  
MGM Mirage, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche E, 7%, 2/21/141
    9,965,680       8,612,012  
19 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Hotels, Restaurants & Leisure Continued
               
Michael Foods, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.25%, 6/14/161
  $ 5,000,000     $ 5,019,375  
Turtle Bay Holding Co. LLC, Sr. Sec. Credit Facilities Term Loan:
               
Tranche A, 10.20%, 2/5/131,4
    319,224       304,859  
Tranche B, 2.438%, 3/1/151,4
    662,126       496,595  
Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan:
               
Tranche B Add-On, 5.04%, 5/25/131
    1,000,371       977,706  
Tranche B, 5.04%, 5/25/131
    1,397,781       1,366,112  
Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 5.04%, 5/25/111
    6,149,840       6,010,509  
 
             
 
            89,333,164  
 
               
Household Durables—0.9%
               
Phillips-Van Heusen Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 4.75%, 3/15/161
    6,231,447       6,268,723  
Sleep Innovations, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 3/5/152,3,4
    4,146,760       3,462,545  
Spectrum Brands Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 8%, 6/4/161
    2,563,000       2,593,436  
Springs Window Fashions Division, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.313%, 12/30/121
    3,950,488       3,760,371  
 
             
 
            16,085,075  
 
               
Media—17.2%
               
Advanstar Communications, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.783%, 5/15/141
    6,552,802       4,859,997  
Affinion Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5%, 10/8/161
    3,482,500       3,338,847  
Alpha Media Group, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.90%, 5/15/131,4,5
    17,970,635       10,333,115  
American Media Operations, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 9.863%, 1/30/131
    12,684,136       12,192,626  
Autotrader.com, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6%, 5/4/161
    1,500,000       1,503,732  
Cedar Fair LP, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 3.75%, 4/1/161
    3,900,000       3,873,188  
Cengage Learning Holdings II LP, Sr. Sec. Credit Facilities Incremental Term Loan, 7.50%, 7/3/141
    3,944,521       3,954,383  
Cequel Communications LLC, Sr. Sec. Credit Facilities Term Loan, 2.25%-2.348%, 11/5/131
    7,000,000       6,722,191  
Charter Communications Operation LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.32%, 3/5/141
    4,628,133       4,401,646  
Charter Communications Operation LLC, Sr. Sec. Credit Facilities 3rd Lien Term Loan, 3.038%, 9/1/141
    8,515,938       7,815,502  
20 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Principal        
    Amount     Value  
 
Media Continued
               
Charter Communications, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche T2 Add-On, 7.151%, 3/6/141
  $ 10,826,741     $ 11,026,732  
Cinram International, Inc., Sr. Sec. Credit Facilities Term Loan, 2.347%-3.472%, 5/6/111
    17,764,790       14,759,575  
Citadel Broadcasting Co., Sr. Sec. Credit Facilities 1st Lien Exit Term Loan, 11%, 6/3/151
    5,000,000       5,250,780  
Clear Channel Communications, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 3.966%, 1/29/161
    13,922,126       11,132,731  
Dex Media West LLC, Sr. Sec. Credit Facilities 1st Lien Exit Term Loan, 7.50%, 10/24/141
    2,758,973       2,474,698  
Entercom Communications Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche A, 1.45%-3.329%, 6/30/121
    10,968,154       10,337,487  
FoxCo Acquisition Sub LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.50%, 7/14/151
    17,053,369       16,413,868  
Gray Television, Inc., Sr. Sec. Credit Facilities Term Loan, 4.60%, 12/31/141
    15,068,571       14,187,059  
Hit Entertainment, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 2.25%-5.597%, 8/5/121
    13,169,047       12,359,150  
Media General, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche A, 4.341%-4.538%, 3/29/131
    15,576,980       14,103,662  
Mediacom Communications Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche E, 4.50%, 10/20/171
    5,000,000       4,841,665  
Mediacom Communications Corp./MCC Georgia LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche FA, 4.50%, 10/20/171
    10,000,000       9,597,500  
Merrill Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 12.206%-14.41%, 11/15/131,4
    26,715,722       22,174,050  
Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities Term Loan:
               
Tranche B Add-On, 4/8/122
    8,266,250       3,624,751  
Tranche B, 4/8/122
    20,191,731       8,854,074  
Penton Media, Inc., Sr. Sec. Credit Facilities Exit Term Loan, Tranche B, 4.712%, 8/1/141,4
    24,587,263       17,497,944  
Philadelphia Newspapers, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6/29/132
    2,444,102       751,561  
Sinclair Broadcast Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.658%, 10/16/151
    2,393,939       2,416,861  
Six Flags, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6%, 6/30/161
    9,505,000       9,447,922  
Star Tribune Co., Sr. Sec. Credit Facilities 1st Lien Term Loan:
               
Tranche A, 8%, 9/28/141
    1,611,645       1,466,597  
Tranche B, 8%, 9/28/141,4
    1,074,430       977,731  
Univision Communications, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.566%, 9/29/141
    7,537,951       6,600,939  
Wide Open West Finance LLC, Sr. Sec. Credit Facilities 1st Lien Incremental Term Loan, 6.833%-8.63%, 6/18/141
    6,606,687       6,524,105  
21 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Media Continued
               
Wide Open West Finance LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 2.846%-4.685%, 6/30/141
  $ 559,615     $ 516,945  
Young Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan, 11/3/122,3
    39,999,313       38,399,341  
Zuffa LLC, Sr. Sec. Credit Facilities Incremental Term Loan, Tranche B, 7.50%, 6/18/151
    4,999,700       5,049,697  
 
             
 
            309,782,652  
 
               
Multiline Retail—0.7%
               
General Growth Properties, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche A, 2/24/102,3
    12,402,011       12,911,374  
Specialty Retail—1.2%
               
Burlington Coat Factory Warehouse Corp., Sr. Sec. Credit Facilities Term Loan, 2.66%-2.76%, 5/28/131
    6,600,915       6,258,017  
Claire’s Stores, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 2.75%-3.225%, 5/29/141
    10,583,364       8,951,209  
Pilot Travel Centers LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5.25%, 11/12/151
    5,806,076       5,822,147  
 
             
 
            21,031,373  
 
               
Consumer Staples—2.8%
               
Food & Staples Retailing—0.5%
               
Rite Aid Corp., Sr. Sec. Credit Facilities Term Loan:
               
Tranche 2, 2.07%-2.10%, 6/4/141
    2,719,517       2,391,815  
Tranche 4, 9.50%, 6/4/151
    6,477,260       6,617,331  
 
             
 
            9,009,146  
 
               
Food Products—1.6%
               
Dole Food Co., Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan:
               
Tranche B1, 5%-5.50%, 2/1/171
    2,933,823       2,942,458  
Tranche C1, 5%-5.50%, 2/1/171
    7,286,884       7,308,330  
Dole Food Co., Inc., Sr. Sec. Credit Facilities Prefunded Letter of Credit Term Loan, 8%, 4/12/131
    925,299       928,022  
Pierre Foods, Inc., Sr. Sec. Credit Facilities Term Loan, 7%, 2/17/161
    5,332,499       5,336,942  
Pinnacle Foods Finance LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.848%, 4/2/141
    13,092,823       12,359,992  
 
             
 
            28,875,744  
 
               
Personal Products—0.7%
               
Levlad LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 9.978%, 3/5/151,4
    6,641,789       6,625,185  
Revlon, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6%, 8/15/151
    5,610,938       5,516,253  
 
             
 
            12,141,438  
22 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Principal        
    Amount     Value  
 
Energy—4.4%
               
Energy Equipment & Services—2.6%
               
AL Gulf Coast Terminals LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.75%, 6/2/161
  $ 6,250,000     $ 6,093,750  
Precision Drilling Trust, Sr. Sec. Credit Facilities Term Loan, Tranche B1, 7.151%, 9/23/141
    7,817,590       7,837,134  
Sheridan Production Co. LLC, Sr. Sec. Credit Facilities Term Loan:
               
Tranche I-A, 7.50%, 4/20/171
    1,953,315       1,894,716  
Tranche I-M, 7.50%, 4/20/171
    1,193,096       1,157,303  
Sheridan Production Co. LLC, Sr. Sec. Credit Facilities Term Loan, 7.50%, 4/20/171
    14,741,089       14,298,856  
Trident Exploration Corp., Sr. Sec. Credit Facilities 1st Lien Exit Term Loan, 12.50%, 5/17/141
    15,855,000       15,775,725  
 
             
 
            47,057,484  
 
               
Oil, Gas & Consumable Fuels—1.8%
               
Atlas Pipeline, Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.75%, 7/27/141
    10,250,510       10,229,159  
MEG Energy Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche D, 6%, 4/3/161
    6,729,150       6,689,899  
Venoco, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 4.375%, 5/7/141
    9,043,435       8,197,494  
Western Refining, Inc., Sr. Sec. Credit Facilities Term Loan, 10.603%, 2/8/141
    7,791,726       7,311,234  
 
             
 
            32,427,786  
 
               
Financials—4.0%
               
Capital Markets—0.7%
               
Nuveen Investments, Inc., Sr. Sec. Credit Facilities Term Loan, 3.481%-3.533%, 11/1/141
    13,858,257       12,242,911  
Consumer Finance—1.2%
               
American General Financial Services Co., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.25%, 4/16/151
    11,000,000       10,877,966  
CIT Group, Inc., Sr. Sec. Credit Facilities 1st Lien Incremental Term Loan, 13%, 1/18/121
    3,101,480       3,176,045  
CIT Group, Inc., Sr. Sec. Credit Facilities Expansion Term Loan, Tranche 2A, 9.50%, 1/18/121
    8,101,482       8,296,256  
 
             
 
            22,350,267  
 
               
Insurance—0.9%
               
ILFC Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B2, 7%, 3/5/161
    3,807,692       3,820,383  
International Lease Finance Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B1, 6.75%, 2/23/151
    5,192,308       5,237,740  
23 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Insurance Continued
               
Swett & Crawford Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.566%, 4/3/141
  $ 8,372,958     $ 6,782,096  
 
             
 
            15,840,219  
 
               
Real Estate Management & Development—0.8%
               
Realogy Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, Delayed Draw, Tranche B, 13.50%, 10/15/17
    13,155,000       14,010,075  
Thrifts & Mortgage Finance—0.4%
               
Green Tree Credit Solutions, Sr. Sec. Credit Facilities Term Loan, 8%, 12/10/151
    7,350,400       7,129,888  
Health Care—9.4%
               
Health Care Equipment & Supplies—1.4%
               
Carestream Health, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.316%, 4/30/131
    1,783,062       1,695,519  
Carestream Health, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 5.566%, 9/26/131
    8,000,000       7,451,432  
Caris Diagnostics, Sr. Sec. Credit Facilities Term Loan, 7.25%, 2/1/151
    7,462,500       7,313,250  
dj Orthopedics, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.316%, 10/31/141
    8,783,128       8,376,907  
 
             
 
            24,837,108  
 
               
Health Care Providers & Services—7.8%
               
Alliance HealthCare Services, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 5.50%, 6/1/161
    1,725,000       1,702,003  
Ardent Health Services LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.50%, 7/19/151
    9,975,000       9,731,859  
Aveta, Inc./MMM Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 8%, 3/16/151
    3,140,000       3,075,238  
Aveta, Inc./NAMM Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 8%, 3/16/151
    3,140,000       3,075,238  
Community Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.788%, 7/2/141
    11,309,788       10,732,254  
Community Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 2.788%, 7/2/141
    580,258       550,627  
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 5.50%, 8/10/121
    6,734,124       6,296,406  
HCA, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B2, 3.783%, 3/31/171
    3,675,729       3,584,696  
HCA, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.783%, 11/18/131
    6,741,137       6,521,268  
HEALTHSOUTH Corp., Extended Sr. Sec. Credit Facilities Term Loan, 4.29%, 3/15/141
    4,047,183       4,005,986  
HEALTHSOUTH Corp., Sr. Sec. Credit Facilities Term Loan, 2.79%, 3/10/131
    4,917,340       4,782,113  
24 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Principal        
    Amount     Value  
 
Health Care Providers & Services Continued
               
Health Management Associates, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.283%, 2/28/141
  $ 5,682,629     $ 5,357,299  
Healthways, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.04%, 11/15/131
    8,492,000       8,003,710  
Inventive Health Inc., Sr. Sec Credit Facilities 1st Lien Term Loan, 4.75%, 7/31/161
    6,400,000       6,400,000  
Manor Care, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.816%, 10/18/141
    10,363,060       9,806,046  
MultiPlan, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche D, 6%, 4/12/131
    769,048       767,766  
MultiPlan, Inc., Sr. Sec. Credit Facilities Term Loan:
               
Tranche B, 3.625%, 4/15/131
    2,829,550       2,814,519  
Tranche C, 3.625%, 4/12/131
    5,621,521       5,591,660  
Quintiles Transnational Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 2.32%-2.54%, 3/31/131
    8,350,674       8,024,480  
Quintiles Transnational Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 4.32%, 3/31/141
    1,000,000       982,500  
RehabCare Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6%, 11/3/151
    6,653,889       6,613,134  
Rural/Metro Operating Corp., Sr. Sec. Credit Facilities Term Loan, 7%, 11/20/141
    2,985,000       2,988,731  
SouthernCare, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 13.746%, 12/10/101,4
    8,789,065       4,921,876  
Universal Health Services, Inc., Sr. Sec Credit Facilities 1st Lien Term Loan, Tranche B, 4%, 5/16/161
    11,165,000       11,099,875  
Vanguard Health Systems, Inc., Sr. Sec Credit Facilities 1st Lien Term Loan, Tranche B, 5%, 1/15/161
    7,481,250       7,419,530  
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan:
               
Tranche A, 5.50%, 10/30/141
    2,672,881       2,673,884  
Tranche B1, 5.75%, 4/30/151
    1,259,428       1,260,430  
Tranche B2, 5.75%, 4/30/151
    2,097,176       2,098,843  
 
             
 
            140,881,971  
 
               
Pharmaceuticals—0.2%
               
PTS Acquisition Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.566%, 4/10/141
    4,689,567       4,244,059  
Industrials—22.0%
               
Aerospace & Defense—5.1%
               
AM General LLC, Sr. Sec. Credit Facilities Letter of Credit Term Loan, 3.316%, 9/28/121
    182,290       164,289  
AM General LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.344%-3.539%, 9/30/131
    10,564,687       9,521,424  
25 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Aerospace & Defense Continued
               
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.288%, 2/21/131
  $ 6,207,882     $ 5,959,567  
Delta Air Lines, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 8.75%, 9/16/131
    4,714,375       4,762,499  
Dyncorp International LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.25%, 4/11/161
    7,100,000       7,139,050  
Hawker Beechcraft, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche A, 10.50%, 3/26/141
    11,910,000       11,869,065  
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 9.21%, 12/30/121,4
    18,723,841       18,349,364  
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 12.50%, 6/30/131
    8,838,686       7,778,044  
Triumph Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.563%, 6/1/161
    5,777,000       5,807,693  
United Air Lines, Inc., Sr. Sec. Credit Facilities Term Loan, 2.375%, 2/3/141
    22,692,607       20,189,341  
 
             
 
            91,540,336  
 
               
Air Freight & Logistics—1.1%
               
Evergreen International Aviation, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 10.416%, 10/31/111,4
    21,392,655       20,282,911  
Building Products—1.2%
               
Atrium Cos., Inc., Sr. Sec. Credit Facilities 1st Lien Exit Term Loan, 7%, 1/21/161
    15,400,000       15,015,000  
Champion Opco LLC, Sr. Sec. Credit Facilities Term Loan, 7.397%, 5/11/131
    1,103,318       1,053,668  
Flag Luxury Properties LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 2/6/112
    3,640,440       928,312  
Summit Materials LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.75%, 7/7/141
    4,334,138       4,236,619  
United Subcontractors, Inc., Sr. Sec. Credit Facilities Term Loan, 6/30/152
    930,225       818,598  
 
             
 
            22,052,197  
 
               
Commercial Services & Supplies—7.8%
               
Allied Security Holdings LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.658%, 1/29/151
    7,834,753       7,864,134  
Asurion Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 3.343%-3.421%, 7/3/141
    3,939,889       3,781,196  
Booz Allen & Hamilton, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche C, 6%, 7/31/151
    4,776,000       4,780,776  
Bright Horizons LP, Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.397%, 5/21/151
    8,322,613       8,345,650  
Ceridian Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 3.325%, 11/9/141
    5,000,000       4,523,150  
26 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Principal        
    Amount     Value  
 
Commercial Services & Supplies Continued
               
Fidelity National Information Services, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5.25%, 7/18/161
  $ 10,435,000     $ 10,252,388  
First Data Corp., Sr. Sec. Credit Facilities Term Loan:
               
Tranche B-1, 3.066%-3.079%, 9/24/141
    1,994,871       1,740,941  
Tranche B-2, 3.066%-3.079%, 9/24/141
    14,227,068       12,399,787  
Tranche B-3, 3.066%-3.079%, 9/24/141
    2,401,390       2,094,714  
Infogroup, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.25%, 5/18/161
    3,735,000       3,689,870  
Interactive Data Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5%, 11/3/161
    10,400,000       10,395,663  
Language Line Holdings LLC, Sr. Sec. Credit Facilities Term Loan, 5.50%, 10/29/151
    5,358,000       5,288,791  
NES Rentals Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 10%, 6/22/131
    1,828,851       1,636,822  
New Customer Service, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6%, 3/5/161
    10,842,857       10,666,660  
Rental Service Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 3.50%-4.04%, 11/15/121
    7,000,000       6,647,816  
Sedgwick CMS Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5.50%, 6/30/161
    5,137,125       5,122,140  
TransUnion LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.75%, 6/15/171
    7,540,000       7,619,170  
Travelport LLC, Sr. Sec. Credit Facilities Term Loan, Tranche C, 10.50%, 8/23/131
    990,000       995,775  
Travelport LLC, Sr. Sec. Credit Facilities Term Loan, Delayed Draw, Tranche T1, 2.816%-3.033%, 8/23/131
    5,938,775       5,598,947  
U.S. Investigations Services, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.539%, 2/21/151
    12,232,729       10,810,674  
West Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B4, 4.196%-4.311%, 7/15/161
    6,845,743       6,653,208  
Workflow Management, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 7.925%, 10/17/101,4
    11,735,597       9,975,257  
 
             
 
            140,883,529  
 
               
Construction & Engineering—0.2%
               
Custom Building Products, Sr. Sec. Credit Facilities Term Loan, 5.75%, 3/19/151
    4,027,119       4,024,602  
Electrical Equipment—1.4%
               
Freescale Semiconductor Holdings, Inc., Extended Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.596%, 12/1/161
    19,688,319       18,140,600  
Reynolds & Reynolds Co. (The), Sr. Sec. Credit Facilities 1st Lien Term Loan, 5.25%, 4/1/171
    7,149,725       7,089,403  
 
             
 
            25,230,003  
27 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Industrial Conglomerates—1.4%
               
Hillman Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5.50%, 4/26/161
  $ 5,250,000     $ 5,274,612  
Precision Partners, Inc., Sr. Sec. Credit Facilities Term Loan, 8.63%, 10/1/131
    25,027,181       19,771,473  
 
             
 
            25,046,085  
 
               
Machinery—1.6%
               
BOC Edwards, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.316%, 5/31/141
    3,626,604       3,236,744  
Bucyrus International, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche C, 4.50%, 12/21/161
    5,052,550       5,065,183  
Manitowoc Co., Inc. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B, 8%, 8/21/141
    7,323,967       7,339,223  
Veyance Technologies, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.84%, 7/2/141
    14,021,345       11,988,250  
Veyance Technologies, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 2.84%, 7/2/141
    1,714,970       1,466,300  
 
             
 
            29,095,700  
 
               
Marine—0.1%
               
Tenneco Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 5.071%, 5/13/161
    1,300,000       1,298,375  
Road & Rail—2.1%
               
Swift Transportation Co., Sr. Sec. Credit Facilities 1st Lien Term Loan, 8.25%, 5/10/141
    18,239,325       17,800,451  
U.S. Xpress Enterprises, Inc., Sr. Sec. Credit Facilities Term Loan, 6.50%, 10/12/141
    20,582,153       18,729,760  
 
             
 
            36,530,211  
 
               
Information Technology—4.2%
               
IT Services—2.9%
               
Apptis, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.57%-3.79%, 12/20/121
    9,809,786       9,589,066  
Caritor, Inc., Sr. Sec. Credit Facilities Term Loan, 2.79%, 5/17/131
    15,491,899       14,213,817  
Datatel, Inc., Sr. Sec Credit Facilities 1st Lien Term Loan, 6.50%, 12/9/151
    2,679,286       2,692,683  
Datatel, Inc., Sr. Sec Credit Facilities 2nd Lien Term Loan, 10.25%, 12/15/161
    3,535,000       3,623,375  
Dupont Fabros Technology LP, Sr. Sec. Credit Facilities 1st Lien Term Loan, 5.75%, 12/2/141
    10,000,000       9,931,250  
Vertafore, Inc., Sr. Sec Credit Facilities 1st Lien Term Loan:
               
Tranche A, 5%, 7/31/161
    12,645,455       12,609,542  
Tranche B, 5%, 7/31/161
    354,545       353,902  
 
             
 
            53,013,635  
28 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Principal        
    Amount     Value  
 
Office Electronics—0.5%
               
CDW Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 4.341%, 10/10/141
  $ 9,216,726     $ 8,332,906  
Software—0.8%
               
Allen Systems Group, Inc., Sr. Sec. Credit Facilities Term Loan, 8.384%, 10/19/131
    4,680,000       4,677,075  
Verint Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.58%, 5/9/141
    10,020,534       9,575,873  
 
             
 
            14,252,948  
Materials—8.3%
               
Chemicals—4.5%
               
Chemtura Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Debtor in Possession, Tranche A, 6%, 3/22/111
    7,644,000       7,639,223  
Hexion Specialty Chemicals, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan:
               
Tranche C1-B, 4.313%, 5/5/151
    2,698,900       2,539,214  
Tranche C2-B, 4.313%, 5/5/151
    1,124,046       1,057,539  
Tranche C5-B, 4.313%, 5/5/151
    3,777,564       3,532,023  
Hexion Specialty Chemicals, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche C4-B, 4.125%, 5/5/151
    5,223,034       4,909,652  
Huntsman International LLC, Sr. Sec. Credit Facilities Term Loan:
               
Tranche B, 2.151%, 4/19/141
    782,838       736,479  
Tranche B, 2.231%, 4/19/141
    1,755,984       1,651,997  
Ineos US Finance LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan:
               
Tranche B2, 7.501%, 12/16/131
    4,697,772       4,631,218  
Tranche C2, 8.001%, 12/16/141
    4,921,537       4,851,813  
Lyondell Chemical Co., Sr. Sec. Credit Facilities 1st Lien Exit Term Loan, 5.50%, 3/14/161
    3,500,000       3,530,352  
Momentive Performance Materials, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 2.625%, 12/4/131
    14,564,295       13,515,666  
Nalco Co., Sr. Sec. Credit Facilities Term Loan, 6.411%, 5/5/161
    3,960,000       3,986,401  
PQ Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 3.57%-3.73%, 7/30/141
    2,984,772       2,735,331  
PQ Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 6.82%, 7/30/151
    13,110,000       12,028,425  
Solutia, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 4.75%, 3/2/171
    3,591,000       3,602,541  
Styron Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 7.50%, 5/21/161
    5,750,000       5,800,313  
Univar USA OPCO, Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.316%, 10/10/141
    3,544,247       3,410,232  
 
             
 
            80,158,419  
29 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Construction Materials—0.1%
               
CB Richard Ellis Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B1A, 6%, 12/20/151
  $ 2,408,702     $ 2,410,208  
Containers & Packaging—2.7%
               
Anchor Glass Container Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6%, 2/18/161
    5,667,693       5,625,185  
Anchor Glass Container Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 10%, 8/2/161
    8,000,000       7,870,000  
BWAY Holding Co., Sr. Sec. Credit Facilities 1st Lien Term Loan:
               
Tranche B, 5.50%-5.918%, 3/28/171
    3,062,857       3,066,686  
Tranche C, 5.50%-5.918%, 3/28/171
    287,143       287,502  
Consolidated Container Co., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 5.813%, 9/28/141
    14,000,000       12,145,000  
Graham Packaging Co. LP, Sr. Sec. Credit Facilities Term Loan, Tranche C, 6.75%, 4/5/141
    5,898,954       5,957,024  
Multi-Packaging Solutions, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.904%, 4/26/161
    3,960,000       3,935,250  
Reynolds Packaging Group, Sr. Sec. Credit Facilities Term Loan, Tranche 1S, 6.25%, 5/5/161
    9,937,500       9,930,047  
 
             
 
            48,816,694  
 
               
Metals & Mining—0.0%
               
Aleris International, Inc., Sr. Sec. Credit Facilities Term Loan, 12/19/132,3
    1,890,661       25,524  
Paper & Forest Products—1.0%
               
Abitibi-Consolidated Co. of Canada/Abitibi-Consolidated, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 3/31/092
    11,544,068       11,293,943  
Smurfit-Stone Container Enterprises, Sr. Sec. Credit Facilities 1st Lien Exit Term Loan,
Tranche B, 6.75%, 1/2/161
    6,000,000       6,036,408  
 
             
 
            17,330,351  
 
               
Telecommunication Services—3.5%
               
Diversified Telecommunication Services—2.3%
               
IPC Systems, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B1, 2.566%-2.783%, 5/31/141
    26,293,207       23,515,987  
Level 3 Communications, Inc., Sr. Sec. Credit Facilities Term Loan, 2.555%-2.739%, 3/16/141
    3,338,881       3,002,212  
Telcordia Technologies, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.75%, 4/9/161
    4,508,700       4,491,792  
U.S. Telepacific Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 9.25%, 7/15/151
    9,975,000       10,024,875  
 
             
 
            41,034,866  
 
               
Wireless Telecommunication Services—1.2%
               
Cincinnati Bell, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.50%, 5/12/171
    10,374,000       10,207,278  
30 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Principal        
    Amount     Value  
Wireless Telecommunication Services Continued
               
Intelsat Jackson Holdings Ltd., Sr. Sec. Credit Facilities Term Loan, 3.533%, 2/1/141
  $ 12,056,576     $ 11,293,998  
 
             
 
            21,501,276  
Utilities—5.7%
               
Electric Utilities—5.2%
               
BRSP LLC, Sr. Sec. Credit Facilities Term Loan, 7.50%, 6/24/141
    7,093,845       7,058,376  
Bosque Power Co. LLC, Sr. Sec. Credit Facilities Term Loan, 1/16/152
    12,374,048       8,476,223  
Calpine Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7%, 4/21/171
    15,000,000       15,147,660  
Coleto Creek Power LP, Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.066%-3.283%, 6/28/131
    13,740,439       12,311,433  
Kelson Energy, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 3.783%, 3/8/131
    12,303,954       11,799,492  
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 2.283%, 8/16/121
    6,491,604       5,647,695  
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 4.033%, 8/16/131
    11,000,000       8,483,750  
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities Letter of Credit Term Loan, 2.066%, 8/16/121
    971,581       845,275  
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 2.283%, 8/16/121
    503,100       437,697  
MACH Gen LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 5.367%, 2/15/151,4
    13,135,661       8,879,707  
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC, Sr. Sec. Credit Facilities Term Loan, 4.725%, 6/24/111
    357,364       355,131  
Rocky Mountain Energy Center LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.725%, 6/24/111
    120,056       119,306  
Rocky Mountain Energy Center LLC, Sr. Sec. Credit Facilities Letter of Credit Term Loan, 4.725%, 6/24/111
    38,018       37,780  
Texas Competitive Electric Holdings Co. LLC, Sr. Sec. Credit Facilities Term Loan:
               
Tranche B1, 3.845%-4.033%, 10/10/141
    3,652,797       2,843,313  
Tranche B3, 3.845%-4.033%, 10/10/141
    11,659,618       9,043,491  
Texas Competitive Electric Holdings Co. LLC, Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 3.845%-4.033%, 10/10/141
    3,225,625       2,497,538  
 
             
 
            93,983,867  
Multi-Utilities—0.3%
               
Great Point Power, Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 5.50%, 2/4/171
    4,478,775       4,461,980  
Water Utilities—0.2%
               
Entegra TC LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, Tranche B, 3.033%, 4/19/141
    4,014,467       3,807,051  
 
             
 
Total Corporate Loans (Cost $1,721,298,270)
            1,663,349,820  
31 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
                 
    Principal        
    Amount     Value  
 
Loan Participations—0.3%
               
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC, Sr. Sec. Credit Facilities Term Loan, 4.725%, 6/24/111
  $ 2,994,742     $ 2,976,025  
Rocky Mountain Energy Corp., Sr. Sec. Credit Facilities Letter of Credit Term Loan, 4.725%, 6/24/111
    623,484       619,587  
Rocky Mountain Energy Corp., Sr. Sec. Credit Facilities Term Loan, 4.725%, 6/24/111
    1,074,457       1,067,742  
 
             
 
Total Loan Participations (Cost $4,680,669)
            4,663,354  
 
               
Corporate Bonds and Notes—3.2%
               
Aleris International, Inc., 6% Bonds, 7/1/20
    98,792       98,792  
Berry Plastics Corp., 5.276% Sr. Sec. Nts., 2/15/151
    8,470,000       8,258,250  
Berry Plastics Holding Corp., 4.412% Sr. Sec. Nts., 9/15/141
    715,000       630,988  
Cognis GmbH, 2.537% Sr. Sec. Bonds, 9/15/131,6
    1,450,000       1,442,750  
LightPoint CLO Ltd. VII, 4.436% Collateralized Loan Obligations Sub. Deferrable Nts., Series 2007-7A, Cl. D, 5/15/211,7
    4,500,000       2,115,000  
Lyondell Chemical Co., 11% Sr. Sec. Nts., 5/1/18
    6,485,120       7,012,036  
NXP BV/NXP Funding LLC, 3.276% Sr. Sec. Nts., 10/15/131
    19,930,000       18,908,588  
Reader’s Digest Association, Inc., 9.50% Sr. Sec. Nts., 2/15/171,6
    9,010,000       9,100,100  
Verso Paper Holdings LLC, 4.094% Sr. Sec. Nts., Series B, 8/1/141
    8,177,500       7,083,759  
Wellman, Inc., 5% Cv. Nts., 1/30/192,4
    3,549,310       2,029,054  
Western Refining, Inc., 10.75% Sr. Sec. Nts., 6/15/141,6
    1,635,769       1,496,729  
 
             
 
Total Corporate Bonds and Notes (Cost $72,378,155)
            58,176,046  
                 
    Shares          
 
Preferred Stocks—0.0%
               
Alpha Media Group, Inc., Preferred3,5 (Cost $—)
    1,145        
 
               
Common Stocks—0.4%
               
Aleris International, Inc.3
    114,329       4,344,502  
Alpha Media Group, Inc.3,5
    8,587        
Champion Opco LLC3
    183,994       121,436  
Levlad LLC 3
    40,755       713,204  
Sleep Innovations, Inc., Cl. 23
    28,602        
Sleep Innovations, Inc., Cl. 43
    4,275        
Star Tribune Holdings Corp.3
    39,111       703,998  
Turtle Bay Holding Co. LLC3
    324,258       486,386  
United Subcontractors, Inc.3
    39,690       962,473  
Wellman, Inc.3
    3,371        
 
             
 
Total Common Stocks (Cost $12,180,632)
            7,331,999  
32 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                 
    Units     Value  
 
Rights, Warrants and Certificates—0.6%
               
Champion Opco LLC Wts., Strike Price $0.000001, Exp. 1/27/203
    67,016     $  
ION Media Networks, Inc. Wts., Strike Price $0.01, Exp. 12/18/163
    35,695       10,708,500  
 
             
 
Total Rights, Warrants and Certificates (Cost $9,637,650)
            10,708,500  
                 
    Shares          
 
Investment Company—4.7%
               
Oppenheimer Institutional Money Market Fund, Cl. E, 0.30%5,8 (Cost $85,152,058)
    85,152,058       85,152,058  
 
               
Total Investments, at Value (Cost $1,905,327,434)
    101.7 %     1,829,381,777  
Liabilities in Excess of Other Assets
    (1.7 )     (30,113,207 )
     
 
               
Net Assets
    100.0 %   $ 1,799,268,570  
     
Footnotes to Statement of Investments
 
*   July 30, 2010 represents the last business day of the Fund’s fiscal year. See Note 1 of the accompanying Notes.
 
1.   Represents the current interest rate for a variable or increasing rate security.
 
2.   Issue is in default. See Note 1 of accompanying Notes.
 
3.   Non-income producing security.
 
4.   Interest or dividend is paid-in-kind, when applicable.
 
5.   Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 30, 2010, 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:
                                 
    Principal                     Principal  
    Amount/Shares     Gross     Gross     Amount/Shares  
    July 31, 2009     Additions     Reductions     July 30, 2010  
 
Alpha Media Group, Inc.
          8,587 a           8,587  
Alpha Media Group, Inc., Preferred
          1,145 a           1,145  
Alpha Media Group, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.90%, 5/15/13
          17,970,635             17,970,635  
Oppenheimer Institutional Money Market Fund, Cl. E
    125,564,811       1,184,624,297       1,225,037,050       85,152,058  
                 
    Value     Income  
 
Alpha Media Group, Inc.
  $     $  
Alpha Media Group, Inc., Preferred
           
Alpha Media Group, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.90%, 5/15/13
    10,333,115       1,055,910  
Oppenheimer Institutional Money Market Fund, Cl. E
    85,152,058       190,609  
     
 
  $ 95,485,173     $ 1,246,519  
     
 
a.   All or a portion is the result of a corporate action.
 
6.   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 $12,039,579 or 0.67% of the Fund’s net assets as of July 30, 2010.
33 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF INVESTMENTS Continued
Footnotes to Statement of Investments Continued
 
7.   Restricted security. The aggregate value of restricted securities as of July 30, 2010 was $2,115,000, which represents 0.12% of the Fund’s net assets. See Note 6 of accompanying Notes. Information concerning restricted securities is as follows:
                                 
    Acquisition                     Unrealized  
Security   Date     Cost     Value     Depreciation  
 
LightPoint CLO Ltd. VII, 4.436% Collateralized Loan Obligations Sub. Deferrable Nts., Series 2007-7A, Cl. D, 5/15/21
    6/19/07     $ 4,160,170     $ 2,115,000     $ 2,045,170  
 
8.   Rate shown is the 7-day yield as of July 30, 2010.
Valuation Inputs
Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1) Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
2) Level 2—inputs other than unadjusted quoted prices that are observable for the asset (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)
3) Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset).
The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of July 30, 2010 based on valuation input level:
                                 
            Level 2—              
    Level 1—     Other     Level 3—        
    Unadjusted     Significant     Significant        
    Quoted     Observable     Unobservable        
    Prices     Inputs     Inputs     Value  
 
Assets Table
                               
Investments, at Value:
                               
Corporate Loans
  $     $ 1,663,044,961     $ 304,859     $ 1,663,349,820  
Loan Participations
          4,663,354             4,663,354  
Corporate Bonds and Notes
          56,048,200       2,127,846       58,176,046  
Preferred Stocks
                       
Common Stocks
          7,210,563       121,436       7,331,999  
Rights, Warrants and Certificates
          10,708,500             10,708,500  
Investment Company
    85,152,058                   85,152,058  
     
Total Assets
  $ 85,152,058     $ 1,741,675,578     $ 2,554,141     $ 1,829,381,777  
     
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract’s value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.
See the accompanying Notes for further discussion of the methods used in determining value of the Fund’s investments, and a summary of changes to the valuation methodologies, if any, during the reporting period.
See accompanying Notes to Financial Statements.
34 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF ASSETS AND LIABILITIES July 30, 2010
         
July 30, 20101        
 
Assets
       
Investments, at value—see accompanying statement of investments:
       
Unaffiliated companies (cost $1,812,702,545)
  $ 1,733,896,604  
Affiliated companies (cost $92,624,889)
    95,485,173  
 
     
 
    1,829,381,777  
Cash
    2,832,719  
Receivables and other assets:
       
Investments sold
    27,464,659  
Shares of beneficial interest sold
    21,963,213  
Interest, dividends and principal paydowns
    7,493,928  
Other
    465,911  
 
     
Total assets
    1,889,602,207  
 
       
Liabilities
       
Payables and other liabilities:
       
Investments purchased
    78,458,119  
Shares of beneficial interest redeemed
    7,780,428  
Dividends
    2,870,624  
Distribution and service plan fees
    230,263  
Transfer and shareholder servicing agent fees
    164,467  
Shareholder communications
    133,209  
Trustees’ compensation
    21,995  
Other
    674,532  
 
     
Total liabilities
    90,333,637  
 
       
Net Assets
  $ 1,799,268,570  
 
     
 
       
Composition of Net Assets
       
Par value of shares of beneficial interest
  $ 223,608  
Additional paid-in capital
    2,403,017,017  
Accumulated net investment loss
    (5,984,737 )
Accumulated net realized loss on investments
    (522,041,661 )
Net unrealized depreciation on investments
    (75,945,657 )
 
     
Net Assets
  $ 1,799,268,570  
 
     
35 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF ASSETS AND LIABILITIES Continued
         
Net Asset Value Per Share
       
Class A Shares:
       
Net asset value and redemption price per share (based on net assets of $838,425,325 and 104,249,306 shares of beneficial interest outstanding)
  $ 8.04  
Maximum offering price per share (net asset value plus sales charge of 3.50% of offering price)
  $ 8.33  
Class B Shares:
       
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $87,675,504 and 10,897,067 shares of beneficial interest outstanding)
  $ 8.05  
Class C Shares:
       
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $831,165,389 and 103,228,162 shares of beneficial interest outstanding)
  $ 8.05  
Class Y Shares:
       
Net asset value, redemption price and offering price per share (based on net assets of $42,002,352 and 5,233,835 shares of beneficial interest outstanding)
  $ 8.03  
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
36 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF OPERATIONS July 30, 2010
         
For the Year Ended July 30, 20101        
 
Investment Income
       
Interest:
       
Unaffiliated companies
  $ 116,514,952  
Affiliated companies
    1,055,910  
Dividends from affiliated companies
    190,609  
Other income
    2,530,890  
 
     
Total investment income
    120,292,361  
 
       
Expenses
       
Management fees
    9,963,087  
Distribution and service plan fees:
       
Class A
    1,667,560  
Class B
    722,705  
Class C
    5,526,187  
Transfer and shareholder servicing agent fees:
       
Class A
    745,708  
Class B
    219,890  
Class C
    719,190  
Class Y
    12,480  
Shareholder communications:
       
Class A
    208,237  
Class B
    56,246  
Class C
    194,349  
Class Y
    4,627  
Borrowing fees
    4,407,432  
Custodian fees and expenses
    398,717  
Interest expense on borrowings
    47,408  
Trustees’ compensation
    39,783  
Other
    935,497  
 
     
Total expenses
    25,869,103  
Less waivers and reimbursements of expenses
    (77,423 )
 
     
Net expenses
    25,791,680  
 
       
Net Investment Income
    94,500,681  
37 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENT OF OPERATIONS Continued
         
 
Realized and Unrealized Gain (Loss)
       
Net realized loss on:
       
Investments from unaffiliated companies
  $ (95,698,055 )
Swap contracts
    (4,645,342 )
 
     
 
       
Net realized loss
    (100,343,397 )
Net change in unrealized appreciation/depreciation on investments
    252,686,900  
 
       
Net Increase in Net Assets Resulting from Operations
  $ 246,844,184  
 
     
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
38 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

STATEMENTS OF CHANGES IN NET ASSETS
                 
Year Ended July 31,   20101     2009  
 
Operations
               
Net investment income
  $ 94,500,681     $ 99,049,682  
Net realized loss
    (100,343,397 )     (160,024,172 )
Net change in unrealized appreciation/depreciation
    252,686,900       (109,660,670 )
     
Net increase (decrease) in net assets resulting from operations
    246,844,184       (170,635,160 )
 
               
Dividends and/or Distributions to Shareholders
               
Dividends from net investment income:
               
Class A
    (38,562,883 )     (54,943,286 )
Class B
    (5,009,574 )     (8,689,380 )
Class C
    (39,452,163 )     (58,465,786 )
Class Y
    (1,052,484 )     (650,186 )
     
 
    (84,077,104 )     (122,748,638 )
 
               
Beneficial Interest Transactions
               
Net increase (decrease) in net assets resulting from beneficial interest transactions:
               
Class A
    193,246,333       (152,677,258 )
Class B
    (22,635,694 )     (28,919,233 )
Class C
    80,408,938       (163,188,110 )
Class Y
    32,223,978       3,565,150  
     
 
    283,243,555       (341,219,451 )
 
               
Net Assets
               
Total increase (decrease)
    446,010,635       (634,603,249 )
Beginning of period
    1,353,257,935       1,987,861,184  
     
End of period (including accumulated net investment loss of $5,984,737 and $645,009, respectively)
  $ 1,799,268,570     $ 1,353,257,935  
     
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
39 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FINANCIAL HIGHLIGHTS
                                         
Class A Year Ended July 31,   20101     2009     2008     2007     2006  
 
Per Share Operating Data
                                       
Net asset value, beginning of period
  $ 7.18     $ 8.27     $ 9.11     $ 9.54     $ 9.54  
 
Income (loss) from investment operations:
                                       
Net investment income2
    .50       .48       .62       .69       .66  
Net realized and unrealized gain (loss)
    .82       (.99 )     (.85 )     (.42 )     3
     
Total from investment operations
    1.32       (.51 )     (.23 )     .27       .66  
 
Dividends and/or distributions to shareholders:
                                       
Dividends from net investment income
    (.46 )     (.58 )     (.61 )     (.70 )     (.66 )
 
 
                                       
Net asset value, end of period
  $ 8.04     $ 7.18     $ 8.27     $ 9.11     $ 9.54  
     
 
                                       
Total Return, at Net Asset Value4
    18.64 %     (4.89 )%     (2.68 )%     2.75 %     7.10 %
 
                                       
Ratios/Supplemental Data
                                       
Net assets, end of period (in thousands)
  $ 838,425     $ 575,490     $ 855,905     $ 1,460,069     $ 1,513,036  
 
Average net assets (in thousands)
  $ 666,512     $ 624,278     $ 1,179,865     $ 1,687,143     $ 1,292,028  
 
Ratios to average net assets:5
                                       
Net investment income
    6.47 %     7.15 %     7.11 %     7.26 %     6.88 %
Expenses excluding interest and fees from borrowings
    1.14 %     1.12 %     1.02 %     0.99 %     1.02 %
Interest and fees from borrowings
    0.29 %     0.68 %     0.14 %     0.08 %     0.09 %
     
Total expenses
    1.43 %6     1.80 %6     1.16 %6     1.07 %6     1.11 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    1.42 %     1.75 %     1.05 %     0.97 %     0.97 %
 
Portfolio turnover rate
    67 %     51 %     50 %     105 %     104 %
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
 
2.   Per share amounts calculated based on the average shares outstanding during the period.
 
3.   Less than $0.005.
 
4.   Assumes an initial 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.
 
5.   Annualized for periods less than one full year.
 
6.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Year Ended July 30, 2010
    1.44 %
Year Ended July 31, 2009
    1.81 %
Year Ended July 31, 2008
    1.17 %
Year Ended July 31, 2007
    1.07 %
See accompanying Notes to Financial Statements.
40 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                                         
Class B Year Ended July 31,   20101     2009     2008     2007     2006  
 
Per Share Operating Data
                                       
Net asset value, beginning of period
  $ 7.18     $ 8.27     $ 9.12     $ 9.54     $ 9.54  
 
Income (loss) from investment operations:
                                       
Net investment income2
    .46       .44       .57       .64       .60  
Net realized and unrealized gain (loss)
    .82       (.99 )     (.87 )     (.42 )     3  
     
Total from investment operations
    1.28       (.55 )     (.30 )     .22       .60  
 
Dividends and/or distributions to shareholders:
                                       
Dividends from net investment income
    (.41 )     (.54 )     (.55 )     (.64 )     (.60 )
 
 
                                       
Net asset value, end of period
  $ 8.05     $ 7.18     $ 8.27     $ 9.12     $ 9.54  
     
 
                                       
Total Return, at Net Asset Value4
    18.04 %     (5.49 )%     (3.37 )%     2.27 %     6.49 %
 
                                       
Ratios/Supplemental Data
                                       
Net assets, end of period (in thousands)
  $ 87,676     $ 98,997     $ 149,858     $ 247,726     $ 318,312  
 
Average net assets (in thousands)
  $ 96,622     $ 106,162     $ 201,066     $ 295,655     $ 334,997  
 
Ratios to average net assets:5
                                       
Net investment income
    5.86 %     6.53 %     6.48 %     6.71 %     6.27 %
Expenses excluding interest and fees from borrowings
    1.80 %     1.76 %     1.62 %     1.57 %     1.59 %
Interest and fees from borrowings
    0.29 %     0.68 %     0.14 %     0.08 %     0.09 %
     
Total expenses
    2.09 %6     2.44 %6     1.76 %6     1.65 %6     1.68 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    2.08 %     2.39 %     1.65 %     1.55 %     1.54 %
 
Portfolio turnover rate
    67 %     51 %     50 %     105 %     104 %
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
 
2.   Per share amounts calculated based on the average shares outstanding during the period.
 
3.   Less than $0.005.
 
4.   Assumes an initial 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.
 
5.   Annualized for periods less than one full year.
 
6.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Year Ended July 30, 2010
    2.10 %
Year Ended July 31, 2009
    2.45 %
Year Ended July 31, 2008
    1.77 %
Year Ended July 31, 2007
    1.65 %
See accompanying Notes to Financial Statements.
41 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

FINANCIAL HIGHLIGHTS Continued
                                         
Class C Year Ended July 31,   20101     2009     2008     2007     2006  
 
Per Share Operating Data
                                       
Net asset value, beginning of period
  $ 7.19     $ 8.27     $ 9.12     $ 9.55     $ 9.55  
 
Income (loss) from investment operations:
                                       
Net investment income2
    .47       .45       .58       .64       .61  
Net realized and unrealized gain (loss)
    .81       (.98 )     (.87 )     (.42 )     3  
     
Total from investment operations
    1.28       (.53 )     (.29 )     .22       .61  
 
Dividends and/or distributions to shareholders:
                                       
Dividends from net investment income
    (.42 )     (.55 )     (.56 )     (.65 )     (.61 )
 
 
                                       
Net asset value, end of period
  $ 8.05     $ 7.19     $ 8.27     $ 9.12     $ 9.55  
     
 
                                       
Total Return, at Net Asset Value4
    18.06 %     (5.22 )%     (3.28 )%     2.24 %     6.56 %
 
                                       
Ratios/Supplemental Data
                                       
Net assets, end of period (in thousands)
  $ 831,166     $ 670,264     $ 976,602     $ 1,672,484     $ 1,686,272  
 
Average net assets (in thousands)
  $ 740,664     $ 705,289     $ 1,365,398     $ 1,843,725     $ 1,542,199  
 
Ratios to average net assets:5
                                       
Net investment income
    6.01 %     6.66 %     6.60 %     6.76 %     6.36 %
Expenses excluding interest and fees from borrowings
    1.62 %     1.60 %     1.54 %     1.50 %     1.52 %
Interest and fees from borrowings
    0.29 %     0.68 %     0.14 %     0.08 %     0.09 %
     
Total expenses
    1.91 %6     2.28 %6     1.68 %6     1.58 %6     1.61 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    1.90 %     2.23 %     1.57 %     1.48 %     1.47 %
 
Portfolio turnover rate
    67 %     51 %     50 %     105 %     104 %
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
 
2.   Per share amounts calculated based on the average shares outstanding during the period.
 
3.   Less than $0.005.
 
4.   Assumes an initial 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.
 
5.   Annualized for periods less than one full year.
 
6.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Year Ended July 30, 2010
    1.92 %
Year Ended July 31, 2009
    2.29 %
Year Ended July 31, 2008
    1.69 %
Year Ended July 31, 2007
    1.58 %
See accompanying Notes to Financial Statements.
42 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

                                         
Class Y Year Ended July 31,   20101     2009     2008     2007     20062  
 
Per Share Operating Data
                                       
Net asset value, beginning of period
  $ 7.16     $ 8.25     $ 9.11     $ 9.54     $ 9.54  
 
Income (loss) from investment operations:
                                       
Net investment income3
    .52       .47       .69       .69       .47  
Net realized and unrealized gain (loss)
    .83       (.96 )     (.93 )     (.39 )     4  
     
Total from investment operations
    1.35       (.49 )     (.24 )     .30       .47  
 
Dividends and/or distributions to shareholders:
                                       
Dividends from net investment income
    (.48 )     (.60 )     (.62 )     (.73 )     (.47 )
 
 
                                       
Net asset value, end of period
  $ 8.03     $ 7.16     $ 8.25     $ 9.11     $ 9.54  
     
 
                                       
Total Return, at Net Asset Value5
    19.18 %     (4.66 )%     (2.78 )%     3.14 %     5.04 %
 
                                       
Ratios/Supplemental Data
                                       
Net assets, end of period (in thousands)
  $ 42,002     $ 8,507     $ 5,496     $ 58,955     $ 1  
 
Average net assets (in thousands)
  $ 17,679     $ 7,054     $ 21,397     $ 11,372     $ 1  
 
Ratios to average net assets:6
                                       
Net investment income
    6.67 %     7.34 %     7.69 %     7.34 %     7.33 %
Expenses excluding interest and fees from borrowings
    0.76 %     0.94 %     0.73 %     0.74 %     0.87 %
Interest and fees from borrowings
    0.29 %     0.68 %     0.14 %     0.08 %     0.09 %
     
Total expenses
    1.05 %7     1.62 %7     0.87 %7     0.82 %7     0.96 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    1.04 %     1.57 %     0.76 %     0.72 %     0.85 %
 
Portfolio turnover rate
    67 %     51 %     50 %     105 %     104 %
 
1.   July 30, 2010 represents the last business day of the Fund’s 2010 fiscal year. See Note 1 of the accompanying Notes.
 
2.   For the period from November 28, 2005 (inception of offering) to July 31, 2006.
 
3.   Per share amounts calculated based on the average shares outstanding during the period.
 
4.   Less than $0.005.
 
5.   Assumes an initial 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.
 
6.   Annualized for periods less than one full year.
 
7.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Year Ended July 30, 2010
    1.06 %
Year Ended July 31, 2009
    1.63 %
Year Ended July 31, 2008
    0.88 %
Year Ended July 31, 2007
    0.82 %
See accompanying Notes to Financial Statements.
43 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies
Oppenheimer Senior Floating Rate Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund converted from a closed-end to an open-end fund on July 1, 2010. The Fund seeks as high a level of current income 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 a contingent deferred sales charge (“CDSC”). Class Y shares are sold to certain institutional investors without either a front-end sales charge or a CDSC, however, the institutional investor may impose charges on those accounts. Prior to July 1, 2010, share classes could be subject to an early withdrawal charge (“EWC”). 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.
Fiscal Year End. Since July 30, 2010 represents the last day during the Fund’s 2010 fiscal year on which the New York Stock Exchange was open for trading, the Fund’s financial statements have been presented through that date to maintain consistency with the Fund’s net asset value calculations used for shareholder transactions.
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.
     Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Unadjusted quoted prices in active markets for identical securities are classified as “Level 1,” inputs other than unadjusted quoted prices for an asset that are observable are classified as “Level 2” and significant unobservable inputs, including the Manager’s judgment about the assumptions that a market participant would use in pricing an asset or liability, are classified as “Level 3.” The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund’s investments under these levels of classification is included following the Statement of Investments.
44 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

     Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by portfolio pricing services approved by the Board of Trustees or dealers.
     Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund’s assets are valued. Securities whose principal exchange is NASDAQ® are valued based on the official closing prices 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 current day’s closing “bid” and “asked” prices, and if not, at the current day’s closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded.
     Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.
     U.S. domestic and international debt instruments (including corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and “money market-type” debt instruments with a remaining maturity in excess of sixty days are valued at the mean between the “bid” and “asked” prices utilizing price quotations obtained from independent pricing services or broker-dealers. Such prices are typically determined based upon information obtained from market participants including reported trade data, broker-dealer price quotations and inputs such as benchmark yields and issuer spreads from identical or similar securities.
     “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.
     In the absence of a readily available unadjusted quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund’s assets are valued but after the close of the securities’ respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as
45 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES TO FINANCIAL STATEMENTS Continued
1. Significant Accounting Policies Continued
unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
     There have been no significant changes to the fair valuation methodologies of the Fund during the period.
Securities on a When-Issued or Delayed Delivery Basis. The Fund purchases and sells interests in Senior Loans and other portfolio securities on a “when issued” basis, and may purchase or sell securities on a “delayed delivery” basis. “When-issued” or “delayed delivery” refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund’s net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose the security at a price and yield it considers advantageous. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase.
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, some 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.
46 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

     As of July 30, 2010, securities with an aggregate market value of $1,668,013,174 representing 92.71% of the Fund’s net assets were comprised of Senior Loans.
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. Information concerning securities in default as of July 30, 2010 is as follows:
         
Cost
  $ 168,512,557  
Market Value
  $ 98,132,679  
Market Value as a % of Net Assets
    5.45 %
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. When applicable, the Fund’s investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. 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.
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The 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.
The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund
47 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES TO FINANCIAL STATEMENTS Continued
1. Significant Accounting Policies Continued
may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.
                                 
                            Net Unrealized  
                            Depreciation  
                            Based on Cost of  
                            Securities and  
Undistributed     Undistributed     Accumulated     Other Investments  
Net Investment     Long-Term     Loss     for Federal Income  
Income     Gain     Carryforward1,2,3,4,5     Tax Purposes  
 
$   6,588,500     $     $ 516,189,012     $ 81,767,271  
 
1.   As of July 30, 2010, the Fund had $479,833,062 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of July 30, 2010, details of the capital loss carryforwards were as follows:
         
Expiring        
 
2011
  $ 26,003,298  
2014
    4,679,034  
2015
    6,897,861  
2016
    50,471,975  
2017
    186,215,370  
2018
    205,565,524  
 
     
Total
  $ 479,833,062  
 
     
2.   As of July 30, 2010, the Fund had $36,355,950 of post-October losses available to offset future realized capital gains, if any. Such losses, if unutilized, will expire in 2019.
 
3.   During the fiscal year ended July 30, 2010, the Fund did not utilize any capital loss carryforward.
 
4.   During the fiscal year ended July 31, 2009, the Fund did not utilize any capital loss carryforward.
 
5.   During the fiscal year ended July 30, 2010, $10,765,372 of unused capital loss carryforward expired.
Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.
Accordingly, the following amounts have been reclassified for July 30, 2010. Net assets of the Fund were unaffected by the reclassifications.
                         
            Reduction to     Reduction to  
            Accumulated     Accumulated Net  
Reduction to     Net Investment     Realized Loss  
Paid-in Capital     Income     on Investments  
 
$   10,836,871     $ 15,763,305     $ 26,600,176  
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The tax character of distributions paid during the years ended July 30, 2010 and July 31, 2009 was as follows:
                 
    Year Ended     Year Ended  
    July 30, 2010     July 31, 2009  
 
Distributions paid from:
               
Ordinary income
  $ 84,077,104     $ 122,748,638  
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of July 30, 2010 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.
         
Federal tax cost of securities
  $ 1,911,149,048  
 
     
Gross unrealized appreciation
  $ 52,490,323  
Gross unrealized depreciation
    (134,257,594 )
 
     
Net unrealized depreciation
  $ (81,767,271 )
 
     
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 with 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. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
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NOTES TO FINANCIAL STATEMENTS Continued
1. Significant Accounting Policies Continued
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.
2. Shares of Beneficial Interest
Prior to July 1, 2010, each quarter the Fund made a “Repurchase Offer” to repurchase a portion of the Fund’s outstanding shares from shareholders. The Repurchase Offers were designed to provide some liquidity for Fund investors who sought to sell some or all of their shares. The Fund adopted the following fundamental policies concerning periodic repurchase offers:
    The Fund would 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).
 
    Repurchase offers were made at periodic intervals of three months between repurchase request deadlines. The deadlines were at the time on a regular business day (normally the last regular business day) in the months of January, April, July and October and determined by the Fund’s Board of Trustees.
 
    The repurchase pricing date for a particular Repurchase Offer was not more than 14 days after the repurchase request deadline for the repurchase offer. If that day was not a regular business day, then the repurchase pricing date was the following business day.
Prior to July 1, 2010, each quarter, the Fund’s Board determined the number of shares that the Fund would offer to repurchase in a particular Repurchase Offer. The Repurchase Offer amount was 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 tendered more than the Repurchase Offer amount for a particular Repurchase Offer, the Fund repurchased up to an additional 2% of the shares outstanding on the repurchase request deadline.
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For the year ended July 30, 2010, the Fund extended three 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)  
 
April 30, 2010
    25       50,006,642       10,427,620  
January 31, 2010
    25       45,278,511       9,871,252  
October 31, 2009
    25       45,013,125       13,996,133  
The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
                                 
    Year Ended July 30, 2010   Year Ended July 31, 2009
    Shares     Amount     Shares     Amount  
 
Class A
                               
Sold
    41,565,099     $ 330,484,383       9,559,637     $ 64,056,950  
Dividends and/or distributions reinvested
    2,661,399       20,884,028       4,741,412       30,167,213  
Repurchased
    (16,612,683 )     (129,843,105 )     (37,678,824 )     (246,901,421 )
Redeemed
    (3,541,168 )     (28,278,973 )            
     
Net increase (decrease)
    24,072,647     $ 193,246,333       (23,377,775 )   $ (152,677,258 )
     
 
                               
Class B
                               
Sold
    1,816,960     $ 14,414,569       859,925     $ 5,624,400  
Dividends and/or distributions reinvested
    438,957       3,432,664       940,294       5,977,025  
Repurchased
    (4,401,482 )     (34,536,735 )     (6,140,028 )     (40,520,658 )
Redeemed
    (744,961 )     (5,946,192 )            
     
Net decrease
    (2,890,526 )   $ (22,635,694 )     (4,339,809 )   $ (28,919,233 )
     
 
                               
Class C
                               
Sold
    22,775,455     $ 181,704,679       4,977,378     $ 32,700,236  
Dividends and/or distributions reinvested
    2,702,567       21,203,247       5,339,319       33,977,948  
Repurchased
    (12,576,371 )     (98,877,807 )     (35,077,955 )     (229,866,294 )
Redeemed
    (2,954,172 )     (23,621,181 )            
     
Net increase (decrease)
    9,947,479     $ 80,408,938       (24,761,258 )   $ (163,188,110 )
     
 
                               
Class Y
                               
Sold
    5,121,897     $ 40,919,426       1,172,532     $ 7,672,891  
Dividends and/or distributions reinvested
    33,772       269,334       22,009       138,014  
Repurchased
    (704,469 )     (5,734,967 )     (672,821 )     (4,245,755 )
Redeemed
    (405,011 )     (3,229,815 )            
     
Net increase
    4,046,189     $ 32,223,978       521,720     $ 3,565,150  
     
51 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES TO FINANCIAL STATEMENTS Continued
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the year ended July 30, 2010, were as follows:
                 
    Purchases     Sales  
 
Investment securities
  $ 1,193,929,291     $ 974,886,585  
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  
Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the year ended July 30, 2010, the Fund paid $1,686,553 to OFS for services to the Fund.
     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 daily 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.
52 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

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 daily net assets. The Board of Trustees has currently set that fee at an annual rate of 0.50% of the daily net assets of those classes, 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. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations. The Distributor determines its uncompensated expenses under the Plans at calendar quarter ends. The Distributor’s aggregate uncompensated expenses under the Plans at June 30, 2010 were as follows:
         
Class B
  $ 6,677,835  
Class C
    45,159,988  
Sales Charges. Front-end sales charges, EWC and CDSC do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the EWC or CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
                                 
    Class A     Class A Early     Class B Early     Class C Early  
    Front-End     Withdrawal     Withdrawal     Withdrawal  
    Sales Charges     Charges     Charges     Charges  
    Retained by     Retained by     Retained by     Retained by  
Year Ended   Distributor     Distributor1     Distributor1     Distributor1  
 
July 30, 2010
  $ 306,863     $ 1,504     $ 67,574     $ 15,354  
 
1.   Prior to July 1, 2010, shares could be subject to an early withdrawal fee.
                         
    Class A     Class B     Class C  
    Contingent     Contingent     Contingent  
    Deferred Sales     Deferred Sales     Deferred Sales  
    Charges Retained     Charges Retained     Charges Retained  
Year Ended   by Distributor2     by Distributor2     by Distributor2  
 
July 30, 2010
  $ 896     $ 10,554     $ 5,377  
 
2.   Effective July 1, 2010, shares could be subject to contingent deferred sales charge.
Waivers and Reimbursements of Expenses. 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 year ended July 30, 2010, the Manager waived fees and/or reimbursed the Fund $77,423 for IMMF management fees.
53 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

NOTES TO FINANCIAL STATEMENTS Continued
4. Fees and Other Transactions with Affiliates Continued
     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.
     Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.
5. Risk Exposures and the Use of Derivative Instruments
The Fund’s investment objectives not only permit the Fund to purchase investment securities, they also allow the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity and debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors.
Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:
Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.
Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already
54 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instrument’s price over a defined time period. Large increases or decreases in a financial instrument’s price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.
The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.
Risks of Investing in Derivatives. The Fund’s use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.
     Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund’s performance.
     Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.
Counterparty Credit Risk. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund’s derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that the Manager believes to be credit-worthy at the time of the transaction. To reduce this risk the Fund has entered into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) master agreements, which allow the Fund to net unrealized appreciation and depreciation for certain positions in swaps, over-the-counter options, swaptions, and forward currency exchange contracts for each individual counterparty.
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NOTES TO FINANCIAL STATEMENTS Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
Credit Related Contingent Features. The Fund has several credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease in the Fund’s net assets and or a percentage decrease in the Fund’s Net Asset Value or NAV. The contingent features are established within the Fund’s ISDA master agreements which govern certain positions in swaps, over-the-counter options and swaptions, and forward currency exchange contracts for each individual counterparty.
The effect of derivative instruments on the Statement of Operations is as follows:
         
Amount of Realized Gain or (Loss) Recognized on Derivatives  
Derivatives Not      
Accounted for as   Swap  
Hedging Instruments   Contracts  
 
Credit contracts
  $ (4,645,342 )
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 values of swap contracts are aggregated by positive and negative values and disclosed separately on the Statement of Assets and Liabilities by contracts in unrealized appreciation and depreciation positions. Upfront payments paid or received, if any, affect the value of the respective swap. Therefore, to determine the unrealized appreciation (depreciation) on swaps, upfront payments paid should be subtracted from, while upfront payments received should be added to, the value of contracts reported as an asset on the Statement of Assets and Liabilities. Conversely, upfront payments paid should be added to, while upfront payments received should be subtracted from the value of contracts reported as a liability. 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.
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     Swap contract agreements are exposed to the market risk factor of the specific underlying reference asset. Swap contracts are typically more attractively priced compared to similar investments in related cash securities because they isolate the risk to one market risk factor and eliminate the other market risk factors. Investments in cash securities (for instance bonds) have exposure to multiple risk factors (credit and interest rate risk). Because swaps require little or no initial cash investment, they can expose the Fund to substantial risk in the isolated market risk factor.
Credit Default Swap Contracts. A credit default swap is a bilateral contract that enables an investor to buy or sell protection on a debt security against a defined-issuer credit event, such as the issuer’s failure to make timely payments of interest or principal on the debt security, bankruptcy or restructuring. The Fund may enter into credit default swaps either by buying or selling protection on a single security or a basket of securities (the “reference asset”).
     The buyer of protection pays a periodic fee to the seller of protection based on the notional amount of debt securities underlying the swap contract. The seller of protection agrees to compensate the buyer of protection for future potential losses as a result of a credit event on the reference asset. The contract effectively transfers the credit event risk of the reference asset from the buyer of protection to the seller of protection.
     The ongoing value of the contract will fluctuate throughout the term of the contract based primarily on the credit risk of the reference asset. If the credit quality of the reference asset improves relative to the credit quality at contract initiation, the buyer of protection may have an unrealized loss greater than the anticipated periodic fee owed. This unrealized loss would be the result of current credit protection being cheaper than the cost of credit protection at contract initiation. If the buyer elects to terminate the contract prior to its maturity, and there has been no credit event, this unrealized loss will become realized. If the contract is held to maturity, and there has been no credit event, the realized loss will be equal to the periodic fee paid over the life of the contract.
     If there is a credit event, the buyer of protection can exercise its rights under the contract and receive a payment from the seller of protection equal to the notional amount of the reference asset less the market value of the reference asset. Upon exercise of the contract the difference between the value of the underlying reference asset and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations.
     The Fund has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual securities and, or, indexes.
     Additional associated risks to the Fund include counterparty credit risk and liquidity risk.
     As of July 30, 2010, the Fund had no such credit default swaps outstanding.
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NOTES TO FINANCIAL STATEMENTS Continued
6. Restricted Securities
As of July 30, 2010, investments in securities included issues that are restricted. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. Securities that are restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments.
7. Borrowings
The Fund can borrow money from banks in an amount up to one third its total assets (including the amount borrowed) less all liabilities and indebtedness other than borrowings. The Fund may borrow if necessary to obtain short-term credit to allow it to repurchase shares during Repurchase Offers, to manage cash flows, and to fund additional purchase commitments under Senior Loans. The Fund may also borrow to acquire additional investments (a technique known as “leverage”). 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. 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 $2.25 billion, collectively. To secure the loan, the Fund pledges investment securities in accordance with the terms of the Agreement. Securities held in collateralized accounts to cover these borrowings are noted in the Statement of Investments. Interest is charged to the Fund, based on its borrowings, at current commercial paper issuance rates. 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 the total facility size. Total fees and interest that are included in expenses on the Fund’s Statement of Operations related to its participation in the borrowing facility during the year ended July 30, 2010 date equal 0.29% of the Fund’s average net assets on an annualized basis. The Fund has the right to prepay such loans and terminate its participation in the conduit loan facility at any time upon prior notification.
Details of the borrowings for the year ended July 30, 2010 are as follows:
         
Average Daily Loan Balance
  $ 18,698,630  
Average Daily Interest Rate
    0.247 %
Fees Paid
  $ 3,469,686  
Interest Paid
  $ 47,408  
As of July 30, 2010, the Fund had no such borrowings outstanding.
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8. Pending Litigation
Since 2009, a number of lawsuits have been filed in federal courts against the Manager, the Distributor, and certain mutual funds (“Defendant Funds”) advised by the Manager and distributed by the Distributor (but not including the Fund). The lawsuits naming the Defendant Funds also name as defendants certain officers, trustees and former trustees of the respective Defendant Funds. The plaintiffs seek class action status on behalf of purchasers of shares of the respective Defendant Fund during a particular time period. The lawsuits raise claims under federal securities laws alleging that, among other things, the disclosure documents of the respective Defendant Fund contained misrepresentations and omissions, that such Defendant Fund’s investment policies were not followed, and that such Defendant Fund and the other defendants violated federal securities laws and regulations. The plaintiffs seek unspecified damages, equitable relief and an award of attorneys’ fees and litigation expenses.
     In 2009, what are claimed to be derivative lawsuits were filed in state court against the Manager and a subsidiary (but not against the Fund), on behalf of the New Mexico Education Plan Trust. These lawsuits allege breach of contract, breach of fiduciary duty, negligence and violation of state securities laws, and seek compensatory damages, equitable relief and an award of attorneys’ fees and litigation expenses.
     The Distributor and another subsidiary of the Manager have been named as defendants in a putative class action filed in federal court in 2010. The plaintiff, a participant in the State of Texas’ college savings plan, asserts claims on behalf of all persons who invested in qualified 529 plans managed by these subsidiaries of the Manager and which held investments in a certain mutual fund managed by the Manager and distributed by the Distributor. Plaintiff alleges causes of action for “improper investments,” “breach of fiduciary duty,” and “punitive damages” arising from that fund’s investments in 2008 and 2009.
     Other lawsuits have been filed since 2008 in various state and federal courts, against the Manager and certain of its affiliates. Those lawsuits were filed by investors who made investments through an affiliate of the Manager, and relate to the alleged investment fraud perpetrated by Bernard Madoff and his firm (“Madoff ”). Those suits allege a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and an award of attorneys’ fees and litigation expenses. None of the suits have named the Distributor, any of the Oppenheimer mutual funds or any of their independent Trustees or Directors as defendants. None of the Oppenheimer funds invested in any funds or accounts managed by Madoff.
     The Manager believes that the lawsuits described above are without legal merit and is defending against them vigorously. The Defendant Funds’ Boards of Trustees have also engaged counsel to defend the suits brought against those Funds and the present and former Independent Trustees named in those suits. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant
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NOTES TO FINANCIAL STATEMENTS Continued
8. Pending Litigation Continued
Funds may bear in defending the suits might not be reimbursed by insurance, the Manager believes that these suits should not impair the ability of the Manager or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer funds.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders of Oppenheimer Senior Floating Rate Fund:
We have audited the accompanying statement of assets and liabilities of Oppenheimer Senior Floating Rate Fund, including the statement of investments, as of July 30, 2010, and the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the years in the two-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The accompanying financial highlights of Oppenheimer Senior Floating Rate Fund for the years ended prior to August 1, 2008 were audited by other auditors whose report dated September 12, 2008 expressed an unqualified opinion on those financial highlights.
     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 30, 2010, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
     In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Senior Floating Rate Fund as of July 30, 2010, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the years in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Denver, Colorado
September 17, 2010
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FEDERAL INCOME TAX INFORMATION Unaudited
In early 2010, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2009. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service.
     None of the dividends paid by the Fund during the fiscal year ended July 30, 2010 are eligible for the corporate dividend-received deduction.
     Dividends, if any, paid by the Fund during the fiscal year ended July 30, 2010 which are not designated as capital gain distributions, may be eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. In early 2010, shareholders of record received information regarding the percentage of distributions that are eligible for lower individual income tax rates. The amount will be the maximum amount allowed.
     Recent tax legislation allows a regulated investment company to designate distributions not designated as capital gain distributions, as either interest related dividends or short-term capital gain dividends, both of which are exempt from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal year ended July 30, 2010, the maximum amount allowable but not less than $88,762,157 or 100% of the ordinary distributions paid by the Fund qualifies as an interest related dividend.
     The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance.
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REPORT OF SHAREHOLDER MEETING Unaudited
On May 21, 2010 a special meeting of shareholders was scheduled to vote on the following proposals. The meeting was adjourned until June 4, 2010 and then further adjourned to June 9, 2010 to allow shareholders time to consider their voting decision. On June 9, 2010, the meeting was reconvened and the two proposals below were approved.
The following is a report of the results from the meeting:
Proposal 1: The election of ten Trustees
                         
Nominee   For     Withheld     Total  
 
Trustees
                       
William L. Armstrong
    133,771,532       5,516,946       139,288,478  
George C. Bowen
    133,815,758       5,472,720       139,288,478  
Edward L. Cameron
    133,812,950       5,475,528       139,288,478  
Jon S. Fossel
    134,056,244       5,232,234       139,288,478  
Sam Freedman
    134,217,406       5,071,072       139,288,478  
Richard F. Grabish
    134,494,021       4,794,457       139,288,478  
Beverly L. Hamilton
    134,085,700       5,202,778       139,288,478  
Robert J. Malone
    134,081,794       5,206,684       139,288,478  
F. William Marshall, Jr.
    134,057,424       5,231,054       139,288,478  
William F. Glavin, Jr.
    134,054,600       5,233,878       139,288,478  
Proposal 2: To approve the conversion of the Fund from a closed-end investment company to an open-end investment company, including in connection therewith the elimination of certain fundamental investment policies regarding quarterly repurchases.
                                 
For   Against     Abstain     Broker Non-Votes     Total  
 
94,125,555
    4,546,695       4,002,206       36,614,022       139,288,478  
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PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file 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 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.
Householding—Delivery of Shareholder Documents
This is to inform you about OppenheimerFunds’ “householding” policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the fund’s prospectus (or, if available, the fund’s summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
     Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at
1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
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TRUSTEES AND OFFICERS Unaudited
     
Name, Position(s) Held with the   Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age   Held; Number of Portfolios in the Fund Complex Currently Overseen
 
   
INDEPENDENT
TRUSTEES
  The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.
 
   
William L. Armstrong,
Chairman of the Board of
Trustees (since 2003), Trustee
(since 1999)
Age: 73
  President, Colorado Christian University (since 2006); Chairman, Cherry Creek Mortgage Company (since 1991), Chairman, Centennial State Mortgage Company (since 1994), Chairman, The El Paso Mortgage Company (since 1993); Chairman, Ambassador Media Corporation (since 1984); Chairman, Broadway Ventures (since 1984); Director of Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992), former Director of Campus Crusade for Christ (non- profit) (1991-2008); former Director, The Lynde and Harry Bradley Foundation, Inc. (non-profit organization) (2002-2006); former Chairman of: Transland Financial Services, Inc. (private mortgage banking company) (1997-2003), Great Frontier Insurance (1995-2000), Frontier Real Estate, Inc. (residential real estate brokerage) (1994-2000) and Frontier Title (title insurance agency) (1995-2000); former Director of the following: UNUMProvident (insurance company) (1991- 2004), Storage Technology Corporation (computer equipment company) (1991-2003) and International Family Entertainment (television channel) (1992- 1997); U.S. Senator (January 1979-January 1991). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Armstrong has served on the Boards of certain Oppenheimer funds since 1999, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
George C. Bowen,
Trustee (since 1999)
Age: 73
  Assistant Secretary and Director of Centennial Asset Management Corporation (December 1991-April 1999); President, Treasurer and Director of Centennial Capital Corporation (June 1989-April 1999); Chief Executive Officer and Director of MultiSource Services, Inc. (March 1996-April 1999); Mr. Bowen held several positions with the Manager and with subsidiary or affiliated companies of the Manager (September 1987-April 1999). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Bowen has served on the Boards of certain Oppenheimer funds since 1998, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
Edward L. Cameron,
Trustee (since 1999)
Age: 71
  Member of The Life Guard of Mount Vernon (George Washington historical site) (June 2000 – June 2006); Partner of PricewaterhouseCoopers LLP (accounting firm) (July 1974-June 1999); Chairman of Price Waterhouse LLP Global Investment Management Industry Services Group (accounting firm) (July 1994-June 1998). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Cameron has served on the Boards of certain Oppenheimer funds since 1999, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
Jon S. Fossel,
Trustee (since 1999)
Age: 68
  Chairman of the Board (since 2006) and Director (since June 2002) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (since November 2004); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of the Manager; President, Chief Executive Officer and Director of the following: Oppenheimer
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TRUSTEES AND OFFICERS Unaudited / Continued
     
Name, Position(s) Held with the   Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age   Held; Number of Portfolios in the Fund Complex Currently Overseen
 
   
Jon S. Fossel,
Continued
  Acquisition Corp. (“OAC”) (parent holding company of the Manager), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
Sam Freedman,
Trustee (since 1999)
Age: 69
  Director of Colorado UpLIFT (charitable organization) (since September 1984). Mr. Freedman held several positions with the Manager and with subsidiary or affiliated companies of the Manager (until October 1994). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Freedman has served on the Boards of certain Oppenheimer funds since 1996, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
Richard F. Grabish,
Trustee (since 2008)
Age: 61
  Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 14 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
Beverly L. Hamilton,
Trustee (since 2005)
Age: 63
  Trustee of Monterey Institute for International Studies (educational organization) (since February 2000); Board Member of Middlebury College (educational organization) (since December 2005); Chairman (since 2010) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005); Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991- April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 38 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
Robert J. Malone,
Trustee (since 2005)
Age: 65
  Board of Directors of Opera Colorado Foundation (non-profit organization) (since March 2008); Director of Jones Knowledge, Inc. (since 2006); Director of Jones International University (educational organization) (since August 2005); Chairman, Chief Executive Officer and Director of Steele Street Bank & Trust (commercial banking) (since August 2003); Director of Colorado UpLIFT
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Name, Position(s) Held with the   Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age   Held; Number of Portfolios in the Fund Complex Currently Overseen
 
   
Robert J. Malone,
Continued
  (charitable organization) (since 1986); Trustee of the Gallagher Family Foundation (non-profit organization) (since 2000); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of Jones Knowledge, Inc. (2001-July 2004); and Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
F. William Marshall, Jr.,
Trustee (since 2000)
Age: 68
  Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (since 1996) and MML Series Investment Fund (investment company) (since 1996); President and Treasurer of the SIS Funds (private charitable fund) (since January 1999); Former Trustee of WPI (1985- 2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS & Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
INTERESTED TRUSTEE
AND OFFICER
  The address of Mr. Glavin is Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008. Mr. Glavin serves as a Trustee for an indefinite term, or until his resignation, retirement, death or removal and as an Officer for an indefinite term, or until his resignation, retirement, death or removal. Mr. Glavin is an interested Trustee due to his positions with OppenheimerFunds, Inc. and its affiliates.
 
   
William F. Glavin, Jr.,
Trustee, President and
Principal Executive Officer
(since 2009)
Age: 51
  Chairman of the Manager (since December 2009); Chief Executive Officer and Director of the Manager (since January 2009); President of the Manager (since May 2009); Director of Oppenheimer Acquisition Corp. (“OAC”) (the Manager’s parent holding company) (since June 2009); Executive Vice President (March 2006-February 2009) and Chief Operating Officer (July 2007-February 2009) of Massachusetts Mutual Life Insurance Company (OAC’s parent company); Director (May 2004-March 2006) and Chief Operating Officer and Chief Compliance Officer (May 2004-January 2005), President (January 2005-March 2006) and Chief Executive Officer (June 2005-March 2006) of Babson Capital Management LLC; Director (March 2005-March 2006), President (May 2003- March 2006) and Chief Compliance Officer (July 2005-March 2006) of Babson Capital Securities, Inc. (a broker-dealer); President (May 2003-March 2006) of Babson Investment Company, Inc.; Director (May 2004-August 2006) of Babson Capital Europe Limited; Director (May 2004-October 2006) of Babson Capital Guernsey Limited; Director (May 2004-March 2006) of Babson Capital Management LLC; Non-Executive Director (March 2005-March 2007) of Baring Asset Management Limited; Director (February 2005-June 2006) Baring Pension Trustees Limited; Director and Treasurer (December 2003-November 2006) of Charter Oak Capital Management, Inc.; Director (May 2006-September 2006) of C.M. Benefit Insurance Company; Director (May 2008-June 2009) and Executive
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TRUSTEES AND OFFICERS Unaudited / Continued
     
Name, Position(s) Held with the   Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age   Held; Number of Portfolios in the Fund Complex Currently Overseen
 
   
William F. Glavin, Jr.,
Continued
  Vice President (June 2007-July 2009) of C.M. Life Insurance Company; President (March 2006-May 2007) of MassMutual Assignment Company; Director (January 2005-December 2006), Deputy Chairman (March 2005-December 2006) and President (February 2005-March 2005) of MassMutual Holdings (Bermuda) Limited; Director (May 2008-June 2009) and Executive Vice President (June 2007- July 2009) of MML Bay State Life Insurance Company; Chief Executive Officer and President (April 2007-January 2009) of MML Distributors, LLC; and Chairman (March 2006-December 2008) and Chief Executive Officer (May 2007- December 2008) of MML Investors Services, Inc. Oversees 65 portfolios as a Trustee/Director and 96 portfolios as an Officer in the OppenheimerFunds complex. Mr. Glavin has served on the Boards of certain Oppenheimer funds since 2009, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
 
   
OTHER OFFICERS OF
THE FUND
  The addresses of the Officers in the chart below are as follows: for Messrs. Keffer and Zack, Two World Financial Center, 225 Liberty Street, New York, New York 10281-1008, for Messrs. Welsh, Vandehey, Wixted and Ms. Hui, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.
 
   
Margaret Hui,
Vice President and Portfolio
Manager (since 1999)
Age: 51
  Vice President of the Manager (since February 2005); Assistant Vice President of the Manager (October 1999-February 2005); Vice President-Syndications of Sanwa Bank California (January 1998-September 1999). A portfolio manager and officer of 2 portfolios in the OppenheimerFunds complex.
 
   
Joseph Welsh,
Vice President and Portfolio
Manager (since 1999)
Age: 45
  Head of the Manager’s High Yield Corporate Debt Team (since April 2009); Senior Vice President of the Manager (since May 2009); Vice President of the Manager (December 2000-April 2009); Assistant Vice President of the Manager (December 1996-November 2000); a high yield bond analyst of the Manager (January 1995-December 1996); a CFA. A portfolio manager and officer of 6 portfolios in the OppenheimerFunds complex.
 
   
Thomas W. Keffer,
Vice President and Chief
Business Officer (since 2009)
Age: 55
  Senior Vice President of the Manager (since March 1997); Director of Investment Brand Management (since November 1997); Senior Vice President of OppenheimerFunds Distributor, Inc. (since December 1997). An officer of 96 portfolios in the OppenheimerFunds complex.
 
   
Mark S. Vandehey,
Vice President and Chief
Compliance Officer
(since 2004)
Age: 59
  Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset Management and Shareholder Services, Inc. (since March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder Services, Inc. (since June 1983); Former Vice President and Director of Internal Audit of the Manager (1997- February 2004). An officer of 96 portfolios in the OppenheimerFunds complex.
 
   
Brian W. Wixted,
Treasurer and Principal
Financial & Accounting
Officer (since 1999)
Age: 50
  Senior Vice President of the Manager (since March 1999); Treasurer of the Manager and the following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer Partnership Holdings, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since June 2003); Treasurer and Chief Financial
  68 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

     
Name, Position(s) Held with the   Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age   Held; Number of Portfolios in the Fund Complex Currently Overseen
 
   
Brian W. Wixted,
Continued
  Officer of OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant Treasurer of the following: OAC (March 1999-June 2008), Centennial Asset Management Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program (April 2000-June 2003). An officer of 96 portfolios in the OppenheimerFunds complex.
 
   
Robert G. Zack,
Vice President and Secretary
(since 2001)
Age: 61
  Executive Vice President (since January 2004) and General Counsel (since March 2002) of the Manager; General Counsel and Director of the Distributor (since December 2001); General Counsel of Centennial Asset Management Corporation (since December 2001); Senior Vice President and General Counsel of HarbourView Asset Management Corporation (since December 2001); Secretary and General Counsel of OAC (since November 2001); Assistant Secretary (since September 1997) and Director (since November 2001) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since December 2002); Director of Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice President, General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since December 2001); Senior Vice President, General Counsel and Director of OFI Private Investments, Inc. and OFI Trust Company (since November 2001); Vice President of OppenheimerFunds Legacy Program (since June 2003); Senior Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since November 2001); Director of OppenheimerFunds International Distributor Limited (since December 2003); Senior Vice President (May 1985-December 2003). An officer of 96 portfolios in the OppenheimerFunds complex.
The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge upon request, by calling 1.800.525.7048.
69 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

OPPENHEIMER SENIOR FLOATING RATE FUND
     
Manager
  OppenheimerFunds, Inc.
 
   
Distributor
  OppenheimerFunds Distributor, Inc.
 
   
Transfer and Shareholder Servicing Agent
  OppenheimerFunds Services
 
   
Independent
Registered Public
Accounting Firm
  KPMG LLP
 
   
Counsel
  K&L Gates LLP
©2010 OppenheimerFunds, Inc. All rights reserved.
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PRIVACY POLICY NOTICE
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
  Applications or other forms
 
  When you create a user ID and password for online account access
 
  When you enroll in eDocs Direct, our electronic document delivery service
 
  Your transactions with us, our affiliates or others
 
  A software program on our website, often referred to as a “cookie,” which indicates which parts of our site you’ve visited
 
  When you set up challenge questions to reset your password online
If you visit www.oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to “opt in” or “opt out” of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or “opt out” of such disclosure.
71 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

PRIVACY POLICY NOTICE
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.
As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
  All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds’ server. It transmits information in an encrypted and scrambled format.
  Encryption is achieved through an electronic scrambling technology that uses a “key” to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.
  You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7) tax sheltered custodial accounts. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security number—whether or not you remain a shareholder of our funds. This notice was last updated January 16, 2004. In the event it is updated or changed, we will post an updated notice on our website at www.oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the
Contact Us section of our website at www.oppenheimerfunds.com or call us at 1.800.525.7048.
72 | OPPENHEIMER SENIOR FLOATING RATE FUND

 


 

Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the registrant has determined that George C. Bowen, the Chairman of the Board’s Audit Committee, is the audit committee financial expert and that Mr. Bowen is “independent” for purposes of this Item 3.
Item 4. Principal Accountant Fees and Services.
(a)   Audit Fees
The principal accountant for the audit of the registrant’s annual financial statements billed $50,200 in fiscal 2010 and $50,200 in fiscal 2009.
(b)   Audit-Related Fees
The principal accountant for the audit of the registrant’s annual financial statements billed $4,395 in fiscal 2010 and $2,632 in fiscal 2009.
The principal accountant for the audit of the registrant’s annual financial statements billed $285,900 in fiscal 2010 and $271,540 in fiscal 2009 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
Such services include: internal control reviews, additional consents on registration statement, agreed upon procedures for the CP conduit and professional services for the capital accumulation plan, FIN 45 and FAS 157.
(c)   Tax Fees
The principal accountant for the audit of the registrant’s annual financial statements billed $8,574 in fiscal 2010 and $7,426 in fiscal 2009.
The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in the last two fiscal years to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d)   All Other Fees
The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years to the registrant’s investment adviser or any entity

 


 

controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
(e)   (1) During its regularly scheduled periodic meetings, the registrant’s audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant.
 
    The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting.
 
    Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit.
 
(2) 100%
 
(f)   Not applicable as less than 50%.
 
(g)   The principal accountant for the audit of the registrant’s annual financial statements billed $298,869 in fiscal 2010 and $281,598 in fiscal 2009 to the registrant and the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934.
 
(h)   The registrant’s audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. No such services were rendered.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.

 


 

a) Not applicable.
b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable. The Fund invests exclusively in non-voting securities.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not Applicable
Item 10. Submission of Matters to a Vote of Security Holders.
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:
    the name, address, and business, educational, and/or other pertinent background of the person being recommended;
 
    a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940;
 
    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
 
    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 07/30/2010, 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)     Exhibit attached hereto.
  (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/ William F. Glavin, Jr.
 
William F. Glavin, Jr.
   
 
  Principal Executive Officer    
Date: 09/13/2010
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/ William F. Glavin, Jr.
 
William F. Glavin, Jr.
   
 
  Principal Executive Officer    
Date: 09/13/2010
         
By:
  /s/ Brian W. Wixted
 
Brian W. Wixted
   
 
  Principal Financial Officer    
Date: 09/13/2010

 

EX-99.CODE ETH 2 g06551exv99wcodeeth.htm EX-99.CODE ETH exv99wcodeeth
CODE OF ETHICS
FOR PRINCIPAL EXECUTIVE AND FINANCIAL OFFICERS
OF THE OPPENHEIMER FUNDS
AND OPPENHEIMERFUNDS, INC.
          This Code of Ethics for Principal Executive and Financial Officers (referred to in this document as the “Code”) has been adopted by each of the investment companies for which OppenheimerFunds, Inc. or one of its subsidiaries or affiliates (referred to collectively in this document as “OFI”) acts as investment adviser (individually, a “Fund” and collectively, the “Funds”), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406.
          This Code applies to OFI’s and each Fund’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (“Covered Officers”). A listing of positions currently within the ambit of Covered Officers is attached as Exhibit A.1
1.   Purpose of the Code
          This Code sets forth standards and procedures that are reasonably designed to deter wrongdoing and promote:
    honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
 
    full, fair, accurate, timely, and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission (“SEC”) and in other public communications made by the Fund;
 
    compliance with applicable governmental laws, rules and regulations;
 
    the prompt internal reporting of violations of this Code to the Code Administrator identified below; and
 
    accountability for adherence to this Code.
          In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of
 
1   The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by OFI and the Funds under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code.

 


 

their positions; (3) the duty to assure that a Fund’s financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds’ business and affairs in an honest and ethical manner. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
          It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFI’s fiduciary duties to each Fund, the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds.
2. Prohibitions
          The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders.
          No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders.
          No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations.
          No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund:
  (i)   employ any device, scheme or artifice to defraud a Fund or its shareholders;
 
  (ii)   intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public;
 
  (iii)   engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders;
 
  (iv)   engage in any manipulative practice with respect to any Fund;

 


 

  (v)   use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders;
 
  (vi)   intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund;
 
  (vii)   intentionally mislead or omit to provide material information to the Fund’s independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters;
 
  (viii)   fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws;
 
  (ix)   retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or
 
  (x)   fails to acknowledge or certify compliance with this Code if requested to do so.
3.   Reports of Conflicts of Interests
          If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officer’s reasonable belief, the appearance of one, he or she must immediately report the matter to the Code’s Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the OFI’s Chief Executive Officer.
          Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Fund’s Board of Trustees/Directors.

 


 

4. Waivers
          Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI or to the Fund.
          In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver:
  (i)   is prohibited by this Code;
 
  (ii)   is consistent with honest and ethical conduct; and
 
  (iii)   will result in a conflict of interest between the Covered Officer’s personal and professional obligations to a Fund.
          In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Fund’s Board of Trustees/Directors.
5. Reporting Requirements
          (a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code.
          (b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto.
          (c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser.
          (d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; (iv) interpretations issued under the Code by the Code Administrator; and (v) any other significant information arising under the Code including any proposed amendments.
          (e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code.

 


 

          (f) Any changes to or waivers of this Code, including “implicit” waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules.2
6.   Annual Review
          At least annually, the Board of Trustees/Directors of each Fund shall review the Code and consider whether any amendments are necessary or desirable.
7. Sanctions
          Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI.
8. Administration and Construction
          (a) The administration of this Code of Ethics shall be the responsibility of OFI’s General Counsel or his designee as the “Code Administrator” of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds.
          (b) The duties of such Code Administrator will include:
  (i)   Continuous maintenance of a current list of the names of all Covered Officers;
 
  (ii)   Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder;
 
  (iii)   Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder;
 
  (iv)   Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations;
 
  (v)   Conducting such inspections or investigations as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI and to the Trustees/Directors of the affected Fund(s) or any committee appointed by them to deal with such information; and Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code.
          (c) In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator shall be protected from any liability
 
2   An “implicit waiver” is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, and an executive officer of the Fund or OFI.

 


 

hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment.
9. Required Records
          The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred):
  (a)   A copy of any Code which has been in effect during the period;
 
  (b)   A record of any violation of any such Code and of any action taken as a result of such violation, during the period;
 
  (c)   A copy of each annual report pursuant to the Code made by a Covered Officer during the period;
 
  (d)   A copy of each report made by the Code Administrator pursuant to this Code during the period;
 
  (e)   A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports;
 
  (f)   A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and
 
  (g)   A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision.
10. Amendments and Modifications
          Other than non-substantive or administrative changes, this Code may not be amended or modified unless approved or ratified by the Board of Trustees/Directors of each Fund.
11. Confidentiality.
          This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process.
 
Dated as of: June 25, 2003, as revised August 30, 2006 and further revised as of March 5, 2010.

 


 

Exhibit A
Positions Covered by this Code of Ethics for Principal Executive and Financial Officers*
Each Oppenheimer fund
President (Principal Executive Officer)
Treasurer (Principal Financial Officer)
OFI
President and Chief Executive Officer (Principal Executive Officer)
Chief Financial Officer and Treasurer (Principal Financial Officer)
 
*   There are no other positions with the Funds or OFI who perform similar functions to those listed above.

 

EX-99.CERT 3 g06551exv99wcert.htm EX-99.CERT exv99wcert
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, William F. Glavin, Jr., certify that:
1.   I have reviewed this report on Form N-CSR of Oppenheimer Senior Floating Rate Fund;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
 
4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
  (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  (c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
  (d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 


 

5.   The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of Trustees (or persons performing the equivalent functions):
  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: 09/13/2010
     
/s/ William F. Glavin, Jr.
 
William F. Glavin, Jr.
   
Principal Executive Officer
   

 


 

Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Brian W. Wixted, certify that:
1.   I have reviewed this report on Form N-CSR of Oppenheimer Senior Floating Rate Fund;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
 
4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
  (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  (c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
  (d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 


 

5.   The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of Trustees (or persons performing the equivalent functions):
  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: 09/13/2010
     
/s/ Brian W. Wixted
 
Brian W. Wixted
   
Principal Financial Officer
   

 

EX-99.906CERT 4 g06551exv99w906cert.htm EX-99.906CERT exv99w906cert
EX-99.906CERT
Section 906 Certifications
CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
William F. Glavin, Jr., Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer Senior Floating Rate Fund (the “Registrant”), each certify to the best of his knowledge that:
1.   The Registrant’s periodic report on Form N-CSR for the period ended 07/30/2010 (the “Form N-CSR”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and
 
2.   The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission.
         
Principal Executive Officer
  Principal Financial Officer    
 
       
Oppenheimer Senior Floating
Rate Fund
  Oppenheimer Senior Floating
Rate Fund
   
 
       
/s/ William F. Glavin, Jr.
 
William F. Glavin, Jr.
  /s/ Brian W. Wixted
 
Brian W. Wixted
   
 
       
Date: 09/13/2010
  Date: 09/13/2010    

 

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