0000950123-11-079840.txt : 20110825 0000950123-11-079840.hdr.sgml : 20110825 20110824184757 ACCESSION NUMBER: 0000950123-11-079840 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20110630 FILED AS OF DATE: 20110825 DATE AS OF CHANGE: 20110824 EFFECTIVENESS DATE: 20110825 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER INTEGRITY FUNDS CENTRAL INDEX KEY: 0000701265 IRS NUMBER: 042509354 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03420 FILM NUMBER: 111055020 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: 3RD FL CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: MASSMUTUAL INTEGRITY FUNDS DATE OF NAME CHANGE: 19910329 FORMER COMPANY: FORMER CONFORMED NAME: MASSMUTUAL LIQUID ASSETS TRUST DATE OF NAME CHANGE: 19880403 0000701265 S000008824 Oppenheimer Core Bond Fund C000024033 A C000024034 B C000024035 C C000024036 N C000024037 Y N-CSRS 1 g59416nvcsrs.htm FORM N-CSRS nvcsrs
 
 
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 811-3420
Oppenheimer Integrity Funds
(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: December 31
Date of reporting period: 06/30/2011
 
 

 


 

Item 1. Reports to Stockholders.
(GRAPHIC)

 


 

FUND ALLOCATIONS
         
Corporate Bonds and Notes—Top Ten Industries        
 
 
Insurance
    3.6 %
Commercial Banks
    3.3  
Capital Markets
    3.1  
Oil, Gas & Consumable Fuels
    2.9  
Diversified Financial Services
    2.4  
Media
    2.0  
Electric Utilities
    1.9  
Diversified Telecommunication Services
    1.4  
Energy Equipment & Services
    0.9  
Real Estate Investment Trusts
    0.9  
Portfolio holdings and allocations are subject to change. Percentages are as of June 30, 2011, and are based on net assets.
Credit Allocation
         
Credit Rating Breakdown   NRSRO Only Total  
 
Treasury
    1.9 %
Agency
    42.1  
AAA
    24.3  
AA
    1.6  
A
    8.6  
BBB
    15.0  
BB
    3.1  
B
    0.7  
CCC
    2.7  
D
    0.0  
Unrated
    0.0  
 
     
Total
    100.0 %
The percentages above are based on the market value of the Fund’s securities as of June 30, 2011, and are subject to change. Except for securities labeled “Treasury,” “Agency” and “Unrated,” and except for certain securities issued or guaranteed by a foreign sovereign or supranational entity, all securities have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest S&P equivalent rating is used. Unrated securities issued or guaranteed by a foreign sovereign or supranational entity are assigned a credit rating equal to the highest NRSRO rating assigned to that foreign sovereign or supranational entity. Fund assets invested in Oppenheimer Institutional Money Market Fund are assigned that fund’s S&P rating, which is currently AAA. For the purposes of this Credit Allocation table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories, which include AAA, AA, A and BBB. Unrated securities do not necessarily indicate low credit quality, and may or may not be the equivalent of investment-grade. Please consult the Fund’s prospectus for further information. Additional information can be found in the Fund’s Statement of Additional Information.
8 | OPPENHEIMER CORE BOND FUND

 


 

NOTES
Total returns include changes in share price and reinvestment of dividends and capital gains distributions. 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 does not constitute a recommendation by OppenheimerFunds, Inc.
Class A shares of the Fund were first publicly offered on 4/15/88. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 4.75%.
Class B shares of the Fund were first publicly offered on 5/3/93. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Class B shares are subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 7/11/95. Unless otherwise noted, Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 4/27/98. Class Y shares are offered only to fee-based clients of dealers that have a special agreement with the Distributor, to certain institutional investors under a special agreement with the Distributor, and to present or former officers, directors, trustees or employees (and their 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. There is no sales charge for Class Y shares.
An explanation of the calculation of performance is in the Fund’s Statement of Additional Information.
9 | OPPENHEIMER CORE BOND 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 (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 June 30, 2011.
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.
10 | OPPENHEIMER CORE BOND FUND

 


 

                         
    Beginning   Ending   Expenses
    Account   Account   Paid During
    Value   Value   6 Months Ended
    January 1, 2011   June 30, 2011   June 30, 2011
 
Actual
                       
Class A
  $ 1,000.00     $ 1,032.90     $ 4.55  
Class B
    1,000.00       1,029.10       8.33  
Class C
    1,000.00       1,030.70       8.34  
Class N
    1,000.00       1,033.20       5.81  
Class Y
    1,000.00       1,036.50       2.53  
 
                       
Hypothetical
(5% return before expenses)
                       
Class A
    1,000.00       1,020.33       4.52  
Class B
    1,000.00       1,016.61       8.28  
Class C
    1,000.00       1,016.61       8.28  
Class N
    1,000.00       1,019.09       5.77  
Class Y
    1,000.00       1,022.32       2.51  
Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 30, 2011 are as follows:
         
Class   Expense Ratios
 
Class A
    0.90 %
Class B
    1.65  
Class C
    1.65  
Class N
    1.15  
Class Y
    0.50  
The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Fund’s Manager and Transfer Agent. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. 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.
11 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS June 30, 2011 / Unaudited
                 
    Principal        
    Amount     Value  
 
Asset-Backed Securities—10.8%
               
AESOP Funding II LLC, Automobile Receivables Nts., Series 2011-1A, Cl. A, 1.85%, 11/20/131
  $ 1,460,000     $ 1,466,852  
Ally Auto Receivables Trust 2010-4, Automobile Receivables Nts., Series 2010-4, Cl. A3, 0.91%, 11/17/14
    2,680,000       2,684,674  
Ally Master Owner Trust 2010-1, Asset-Backed Certificates, Series 2010-1, Cl. A, 1.937%, 1/15/151,2
    2,450,000       2,494,834  
Ally Master Owner Trust 2010-3, Asset-Backed Certificates, Series 2010-3, Cl. A, 2.88%, 4/15/151
    2,315,000       2,382,367  
AmeriCredit Automobile Receivables Trust 2009-1, Automobile Receivables-Backed Nts., Series 2009-1, Cl. A3, 3.04%, 10/15/13
    583,053       589,939  
AmeriCredit Automobile Receivables Trust 2010-3, Automobile Receivables-Backed Nts., Series 2010-3, Cl. A2, 0.77%, 12/9/13
    3,653,382       3,657,000  
AmeriCredit Automobile Receivables Trust 2010-4, Automobile Receivables-Backed Nts., Series 2010-4, Cl. D, 4.20%, 11/8/16
    4,645,000       4,818,449  
AmeriCredit Automobile Receivables Trust 2011-1, Automobile Receivables-Backed Nts., Series 2011-1, Cl. D, 4.26%, 2/8/17
    720,000       724,356  
AmeriCredit Automobile Receivables Trust 2011-2, Automobile Receivables-Backed Nts.:
               
Series 2011-2, Cl. A3, 1.61%, 10/8/15
    675,000       680,554  
Series 2011-2, Cl. D, 4%, 5/8/17
    1,440,000       1,434,364  
AmeriCredit Prime Automobile Receivables Trust 2010-1, Automobile Receivables Nts., Series 2010-1, Cl. A2, 0.97%, 1/15/13
    120,928       120,941  
AmeriCredit Prime Automobile Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 1.22%, 10/8/13
    697,928       699,669  
CarMax Auto Owner Trust 2010-3, Automobile Asset-Backed Nts., Series 2010-3, Cl. A3, 0.99%, 2/17/15
    1,425,000       1,424,446  
Carrington Mortgage Loan Trust, Asset-Backed Pass-Through Certificates, Series 2006-FRE1, Cl. A2, 0.296%, 7/25/362
    1,897,898       1,795,278  
Centre Point Funding LLC, Asset-Backed Nts., Series 2010-1A, Cl. 1, 5.43%, 7/20/151
    672,647       715,305  
Chase Funding Trust 2003-2, Mtg. Loan Asset-Backed Certificates, Series 2003-2, Cl. 2A2, 0.746%, 2/25/332
    533,596       497,202  
Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2003-C4, Cl. C4, 5%, 6/10/15
    460,000       490,409  
Citibank Omni Master Trust, Credit Card Receivables:
               
Series 2009-A12, Cl. A12, 3.35%, 8/15/161
    2,735,000       2,800,822  
Series 2009-A13, Cl. A13, 5.35%, 8/15/181
    2,520,000       2,757,415  
Series 2009-A17, Cl. A17, 4.90%, 11/15/181
    2,520,000       2,729,249  
Series 2009-A8, Cl. A8, 2.287%, 5/16/161,2
    4,080,000       4,130,013  
CNH Wholesale Master Note Trust 2011-1, Equipment Nts., Series 2011-1, Cl. 1A, 0.987%, 1/20/412
    1,945,000       1,954,073  
Countrywide Home Loans, Asset-Backed Certificates:
               
Series 2002-4, Cl. A1, 0.926%, 2/25/332
    21,468       20,572  
Series 2005-16, Cl. 2AF2, 5.382%, 5/1/36
    3,433,776       2,801,291  
Series 2005-17, Cl. 1AF2, 5.363%, 5/1/36
    557,791       476,819  
12 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
Asset-Backed Securities Continued
               
CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 0.306%, 6/25/472
  $ 3,020,000     $ 2,688,585  
DSC Floorplan Master Owner Trust, Automobile Receivable Nts., Series 2011-1, Cl. A, 3.91%, 3/15/16
    2,440,000       2,465,779  
DT Auto Owner Trust 2009-1, Automobile Receivable Nts., Series 2009-1, Cl. A1, 2.98%, 10/15/151
    2,476,144       2,500,040  
DT Auto Owner Trust 2011-1A, Automobile Receivable Nts., Series 2011-1A, Cl. C, 3.05%, 8/15/151
    3,420,000       3,436,994  
DT Auto Owner Trust 2011-2A, Automobile Receivable Nts., Series 2011-2A, Cl. C, 3.05%, 7/15/131
    850,000       851,730  
First Franklin Mortgage Loan Trust 2006-FF9, Mtg. Pass-Through Certificates, Series 2006-FF9, Cl. 2A2, 0.296%, 6/25/362
    98,122       97,784  
First Investors Auto Owner Trust 2011-1, Automobile Receivable Nts., Series 2011-1, Cl. A2, 1.47%, 3/16/15
    2,743,442       2,746,323  
Ford Credit Auto Lease Trust, Automobile Receivable Nts., Series 2010-B, Cl. A2, 0.75%, 10/15/121
    3,075,000       3,076,819  
Ford Credit Auto Owner Trust, Automobile Receivable Nts., Series 2010-A, Cl. A4, 2.15%, 6/15/15
    3,980,000       4,073,058  
Ford Credit Floorplan Master Owner Trust 2009-2, Asset-Backed Nts., Series 2009-2, Cl. A, 1.737%, 9/15/142
    2,730,000       2,767,768  
Ford Credit Floorplan Master Owner Trust 2010-1, Asset-Backed Nts., Series 2010-1, Cl. A, 1.837%, 12/15/141,2
    2,610,000       2,659,621  
Ford Credit Floorplan Master Owner Trust 2011-1, Asset-Backed Nts., Series 2011-1, Cl. A1, 2.12%, 2/15/16
    2,940,000       2,984,218  
GE Capital Credit Card Master Note Trust, Asset-Backed Nts., Series 2009-2, Cl. A, 3.69%, 7/15/15
    1,995,000       2,052,273  
GE Dealer Floorplan Master Note Trust, Asset-Backed Securities, Series 2009-2A, Cl. A, 1.736%, 10/20/141,2
    915,000       928,770  
GMAC Mortgage Servicer Advance Funding Ltd., Asset-Backed Nts., Series 2011-1A, Cl. A, 3.72%, 2/15/231
    2,715,000       2,742,027  
Hertz Vehicle Financing LLC, Automobile Receivable Nts., Series 2010-1A, Cl. A1, 2.60%, 2/25/151
    2,900,000       2,960,118  
HSBC Home Equity Loan Trust 2005-3, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2005-3, Cl. A1, 0.446%, 1/20/352
    837,051       788,391  
HSBC Home Equity Loan Trust 2006-4, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2006-4, Cl. A2V, 0.296%, 3/20/362
    124,282       124,072  
MBNA Credit Card Master Note Trust, Credit Card Receivables, Series 2003-C7, Cl. C7, 1.537%, 3/15/162
    2,900,000       2,934,528  
Navistar Financial Dealer Note Master Owner Trust, Asset-Backed Nts., Series 2010-1, Cl. A, 1.836%, 1/26/151,2
    4,540,000       4,569,053  
NC Finance Trust, Collateralized Mtg. Obligation Pass-Through Certificates, Series 1999-I, Cl. ECFD, 3.405%, 1/25/293,4
    1,750,658       148,806  
13 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
Asset-Backed Securities Continued
               
Nissan Auto Lease Trust 2010-B, Automobile Asset-Backed Nts., Series 2010-B, Cl. A3, 1.12%, 12/15/13
  $ 2,700,000     $ 2,713,630  
Nissan Master Owner Trust, Automobile Receivable Nts., Series 2010-AA, Cl. A, 1.337%, 1/15/151,2
    2,705,000       2,735,155  
Option One Mortgage Loan Trust 2007-5, Asset-Backed Certificates, Series 2007-5, Cl. 2A1, 0.276%, 5/25/372
    754,501       740,571  
Popular ABS Mortgage Pass-Through Trust 2005-6, Mtg. Pass-Through Certificates, Series 2005-6, Cl. A3, 5.68%, 1/1/36
    790,406       707,807  
Santander Drive Auto Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 0.95%, 8/15/13
    2,042,765       2,044,925  
Santander Drive Auto Receivables Trust 2010-3, Automobile Receivables Nts., Series 2010-3, Cl. C, 3.06%, 11/15/17
    2,950,000       2,954,579  
Santander Drive Auto Receivables Trust 2010-A, Automobile Receivables Nts., Series 2010-A, Cl. A2, 1.37%, 8/15/131
    2,640,930       2,648,497  
Santander Drive Auto Receivables Trust 2011-1, Automobile Receivables Nts., Series 2011-1, Cl. D, 4.01%, 2/15/17
    2,880,000       2,863,235  
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/174
    3,381,451       3,385,678  
Santander Drive Auto Receivables Trust 2011-S2A, Automobile Receivables Nts., Series 2011-S2A, Cl. D, 3.35%, 6/15/171
    2,405,000       2,402,836  
Volkswagen Auto Lease Trust 2010-A, Automobile Receivable Nts., Series 2010-A, Cl. A3, 0.99%, 11/20/13
    2,700,000       2,706,935  
Westlake Automobile Receivables Trust 2011-1, Automobile Receivables Nts., Series 2011-1, Cl. A3, 1.49%, 6/16/141
    1,285,000       1,286,320  
World Financial Network Credit Card Master Note Trust, Credit Card Receivables, Series 2009-A, Cl. A, 4.60%, 9/15/15
    2,755,000       2,793,673  
 
             
Total Asset-Backed Securities (Cost $123,977,036)
            121,927,491  
 
               
Mortgage-Backed Obligations—69.6%
               
Government Agency—56.4%
               
FHLMC/FNMA/FHLB/Sponsored—56.3%
               
Federal Home Loan Mortgage Corp.:
               
5%, 6/1/40
    5,170,197       5,523,272  
5.50%, 9/1/39
    7,759,998       8,391,984  
6%, 5/15/18-11/1/37
    2,292,611       2,527,917  
6.50%, 4/15/18-4/1/34
    2,543,169       2,794,169  
7%, 7/15/21-10/1/37
    9,410,934       10,914,338  
8%, 4/1/16
    195,980       216,528  
9%, 4/14/17-5/1/25
    64,566       73,899  
12.50%, 5/15/14
    190       193  
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
               
Series 151, Cl. F, 9%, 5/15/21
    16,490       19,020  
Series 1590, Cl. IA, 1.238%, 10/15/232
    2,552,708       2,572,737  
Series 2034, Cl. Z, 6.50%, 2/15/28
    17,779       20,681  
14 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
FHLMC/FNMA/FHLB/Sponsored Continued
               
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Continued
               
Series 2043, Cl. ZP, 6.50%, 4/15/28
  $ 2,461,459     $ 2,798,419  
Series 2046, Cl. G, 6.50%, 4/15/28
    1,684,971       1,799,937  
Series 2053, Cl. Z, 6.50%, 4/15/28
    18,282       21,004  
Series 2063, Cl. PG, 6.50%, 6/15/28
    1,271,175       1,443,073  
Series 2145, Cl. MZ, 6.50%, 4/15/29
    504,249       582,507  
Series 2148, Cl. ZA, 6%, 4/15/29
    847,550       915,926  
Series 2195, Cl. LH, 6.50%, 10/15/29
    1,167,196       1,351,621  
Series 2326, Cl. ZP, 6.50%, 6/15/31
    361,713       423,326  
Series 2341, Cl. FP, 1.087%, 7/15/312
    592,327       597,391  
Series 2399, Cl. PG, 6%, 1/15/17
    467,431       504,614  
Series 2423, Cl. MC, 7%, 3/15/32
    1,656,546       1,861,047  
Series 2453, Cl. BD, 6%, 5/15/17
    449,955       485,395  
Series 2461, Cl. PZ, 6.50%, 6/15/32
    2,923,157       3,314,268  
Series 2463, Cl. F, 1.187%, 6/15/322
    3,119,604       3,159,302  
Series 2500, Cl. FD, 0.687%, 3/15/322
    185,852       186,806  
Series 2526, Cl. FE, 0.587%, 6/15/292
    257,957       258,878  
Series 2551, Cl. FD, 0.587%, 1/15/332
    560,332       562,735  
Series 2638, Cl. KG, 4%, 11/1/27
    63,391       63,391  
Series 2676, Cl. KY, 5%, 9/15/23
    4,548,000       4,934,030  
Series 2686, Cl. CD, 4.50%, 2/1/17
    572,010       576,905  
Series 2907, Cl. GC, 5%, 6/1/27
    642,332       645,874  
Series 2929, Cl. PC, 5%, 1/1/28
    330,008       330,961  
Series 2952, Cl. GJ, 4.50%, 12/1/28
    142,352       142,870  
Series 3019, Cl. MD, 4.75%, 1/1/31
    1,724,872       1,758,041  
Series 3025, Cl. SJ, 24.064%, 8/15/352
    634,165       830,435  
Series 3094, Cl. HS, 23.698%, 6/15/342
    982,080       1,258,192  
Series 3242, Cl. QA, 5.50%, 3/1/30
    1,286,761       1,309,102  
Series 3848, Cl. WL, 4%, 4/1/40
    3,823,788       4,050,035  
Series R001, Cl. AE, 4.375%, 4/1/15
    604,467       610,717  
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security:
               
Series 183, Cl. IO, 17.866%, 4/1/275
    1,112,368       218,741  
Series 192, Cl. IO, 14.046%, 2/1/285
    136,695       27,850  
Series 206, Cl. IO, 0%, 12/1/295,6
    176,322       37,538  
Series 2129, Cl. S, 17.75%, 2/15/295
    1,424,922       264,072  
Series 2130, Cl. SC, 53.255%, 3/15/295
    382,740       72,929  
Series 2134, Cl. SB, 63.344%, 3/15/295
    386,408       73,824  
Series 2422, Cl. SJ, 67.656%, 1/15/325
    1,621,577       295,255  
Series 243, Cl. 6, 1.759%, 12/15/325
    1,031,259       202,814  
Series 2493, Cl. S, 68.709%, 9/15/295
    99,578       20,772  
Series 2527, Cl. SG, 43.414%, 2/15/325
    662,128       27,856  
Series 2531, Cl. ST, 24.986%, 2/15/305
    1,096,110       47,702  
Series 2601, Cl. GS, 12.368%, 11/15/175
    1,710,054       148,419  
Series 2796, Cl. SD, 68.79%, 7/15/265
    625,360       114,308  
Series 2802, Cl. AS, 70.682%, 4/15/335
    1,122,922       107,426  
Series 2920, Cl. S, 68.241%, 1/15/355
    2,376,480       383,274  
Series 3005, Cl. WI, 38.52%, 7/15/355
    5,384,773       955,151  
Series 3110, Cl. SL, 99.999%, 2/15/265
    988,460       140,415  
Series 3451, Cl. SB, 29.003%, 5/15/385
    10,818,254       1,418,495  
15 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
FHLMC/FNMA/FHLB/Sponsored Continued
               
Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 176, Cl. PO, 3.622%, 6/1/267
  $ 146,363     $ 126,887  
Federal National Mortgage Assn.:
               
4%, 7/1/268
    2,985,000       3,109,997  
4.50%, 7/1/26-7/1/418
    104,590,000       108,796,031  
5%, 8/1/418
    106,131,000       112,482,304  
5.50%, 12/25/18
    4,956       5,383  
5.50%, 7/1/26-7/1/418
    69,853,500       75,550,381  
6%, 5/25/20
    642,025       702,076  
6%, 7/1/418
    43,755,000       48,068,980  
6.50%, 6/25/17-11/25/31
    13,537,615       15,152,037  
7%, 9/25/14-4/1/34
    6,318,679       7,171,080  
7.50%, 1/1/33-8/25/33
    6,309,814       7,385,919  
8.50%, 7/1/32
    21,992       25,214  
Federal National Mortgage Assn., 15 yr., 3.50%, 6/1/268
    32,920,000       33,526,979  
Federal National Mortgage Assn., 30 yr., 4%, 8/1/418
    43,910,000       43,793,375  
Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
               
Trust 1992-34, Cl. G, 8%, 3/25/22
    4,760       4,916  
Trust 1993-104, Cl. ZB, 6.50%, 7/25/23
    441,700       494,131  
Trust 1993-87, Cl. Z, 6.50%, 6/25/23
    370,639       414,957  
Trust 1996-35, Cl. Z, 7%, 7/25/26
    118,215       134,572  
Trust 1998-58, Cl. PC, 6.50%, 10/25/28
    775,101       858,304  
Trust 1998-61, Cl. PL, 6%, 11/25/28
    1,058,024       1,181,865  
Trust 1999-54, Cl. LH, 6.50%, 11/25/29
    1,512,289       1,714,575  
Trust 1999-60, Cl. PG, 7.50%, 12/25/29
    5,839,057       7,106,384  
Trust 2001-51, Cl. OD, 6.50%, 10/25/31
    1,519,877       1,752,571  
Trust 2002-10, Cl. FB, 0.686%, 3/25/172
    147,299       148,158  
Trust 2002-16, Cl. PG, 6%, 4/25/17
    873,398       951,229  
Trust 2002-2, Cl. UC, 6%, 2/25/17
    516,409       557,868  
Trust 2002-56, Cl. FN, 1.186%, 7/25/322
    879,563       895,703  
Trust 2003-130, Cl. CS, 13.728%, 12/25/332
    4,562,089       5,402,813  
Trust 2003-21, Cl. FK, 0.586%, 3/25/332
    276,262       277,563  
Trust 2003-28, Cl. KG, 5.50%, 4/25/23
    1,492,000       1,655,524  
Trust 2004-101, Cl. BG, 5%, 1/25/20
    2,370,401       2,533,507  
Trust 2004-81, Cl. KC, 4.50%, 4/1/17
    698,025       702,539  
Trust 2004-9, Cl. AB, 4%, 7/1/17
    2,553,252       2,606,642  
Trust 2005-104, Cl. MC, 5.50%, 12/25/25
    5,073,000       5,628,680  
Trust 2005-109, Cl. AH, 5.50%, 12/25/25
    10,000,000       11,030,184  
Trust 2005-12, Cl. JC, 5%, 6/1/28
    1,682,183       1,704,737  
Trust 2005-22, Cl. EC, 5%, 10/1/28
    650,746       660,318  
Trust 2005-30, Cl. CU, 5%, 4/1/29
    553,069       564,185  
Trust 2005-31, Cl. PB, 5.50%, 4/25/35
    2,480,000       2,725,085  
Trust 2005-71, Cl. DB, 4.50%, 8/25/25
    1,260,000       1,359,435  
Trust 2006-50, Cl. SK, 23.519%, 6/25/362
    1,542,338       2,006,723  
Trust 2009-36, Cl. FA, 1.126%, 6/25/372
    4,230,333       4,272,345  
Trust 2009-37, Cl. HA, 4%, 4/1/19
    5,539,867       5,834,566  
Trust 2009-70, Cl. PA, 5%, 8/1/35
    5,280,846       5,618,590  
Trust 2011-15, Cl. DA, 4%, 3/1/41
    2,521,955       2,593,833  
Trust 2011-3, Cl. KA, 5%, 4/1/40
    3,715,266       4,037,842  
16 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
FHLMC/FNMA/FHLB/Sponsored Continued
               
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
               
Trust 2001-15, Cl. SA, 71.604%, 3/17/315
  $ 616,058     $ 138,711  
Trust 2001-61, Cl. SE, 47.674%, 11/18/315
    830,572       143,437  
Trust 2001-65, Cl. S, 52.683%, 11/25/315
    1,898,151       332,849  
Trust 2001-81, Cl. S, 41.315%, 1/25/325
    253,902       47,602  
Trust 2002-12, Cl. SB, 62.419%, 7/25/315
    405,590       75,437  
Trust 2002-2, Cl. SW, 65.258%, 2/25/325
    467,861       78,987  
Trust 2002-38, Cl. SO, 64.368%, 4/25/325
    198,679       30,423  
Trust 2002-41, Cl. S, 77.809%, 7/25/325
    1,999,213       394,012  
Trust 2002-47, Cl. NS, 41.482%, 4/25/325
    678,785       130,464  
Trust 2002-5, Cl. SD, 78.68%, 2/25/325
    376,466       70,138  
Trust 2002-51, Cl. S, 41.765%, 8/25/325
    623,255       120,395  
Trust 2002-52, Cl. SD, 49.857%, 9/25/325
    791,780       157,727  
Trust 2002-60, Cl. SM, 50.528%, 8/25/325
    2,766,032       370,656  
Trust 2002-60, Cl. SY, 15.628%, 4/25/325
    2,441,138       68,646  
Trust 2002-7, Cl. SK, 52.128%, 1/25/325
    1,663,715       343,371  
Trust 2002-75, Cl. SA, 52.025%, 11/25/325
    1,492,492       303,344  
Trust 2002-77, Cl. BS, 46.967%, 12/18/325
    2,983,861       561,410  
Trust 2002-77, Cl. IS, 57.474%, 12/18/325
    338,491       67,697  
Trust 2002-77, Cl. JS, 41.329%, 12/18/325
    2,777,592       506,689  
Trust 2002-77, Cl. SA, 43.003%, 12/18/325
    2,631,004       474,881  
Trust 2002-77, Cl. SH, 50.90%, 12/18/325
    357,084       71,477  
Trust 2002-84, Cl. SA, 54.831%, 12/25/325
    377,999       70,697  
Trust 2002-89, Cl. S, 76.093%, 1/25/335
    3,029,377       624,825  
Trust 2002-9, Cl. MS, 41.482%, 3/25/325
    21,315       4,161  
Trust 2002-90, Cl. SN, 52.875%, 8/25/325
    2,516,723       352,485  
Trust 2002-90, Cl. SY, 56.172%, 9/25/325
    1,201,638       174,176  
Trust 2003-14, Cl. OI, 17.699%, 3/25/335
    4,405,300       867,952  
Trust 2003-26, Cl. IK, 17.805%, 4/25/335
    1,650,423       338,652  
Trust 2003-33, Cl. SP, 52.473%, 5/25/335
    2,424,549       415,103  
Trust 2003-4, Cl. S, 48.734%, 2/25/335
    747,333       140,252  
Trust 2003-52, Cl. NS, 65.434%, 6/25/235
    11,425,420       1,678,055  
Trust 2003-89, Cl. XS, 92.927%, 11/25/325
    2,407,386       182,883  
Trust 2004-54, Cl. DS, 60.385%, 11/25/305
    166,650       25,002  
Trust 2004-56, Cl. SE, 25.06%, 10/25/335
    2,937,269       485,240  
Trust 2005-40, Cl. SA, 71.053%, 5/25/355
    1,477,114       248,890  
Trust 2005-6, Cl. SE, 86.325%, 2/25/355
    2,050,395       316,511  
Trust 2005-71, Cl. SA, 67.563%, 8/25/255
    2,629,063       378,545  
Trust 2005-93, Cl. SI, 23.446%, 10/25/355
    2,497,250       394,170  
Trust 2006-129, Cl. SM, 22.616%, 1/25/375
    8,446,535       1,369,126  
Trust 2006-53, Cl. US, 30.064%, 6/25/365
    247,986       41,181  
Trust 2008-55, Cl. SA, 26.50%, 7/25/385
    5,717,267       560,445  
Trust 2008-67, Cl. KS, 50.657%, 8/25/345
    7,343,157       715,508  
Trust 222, Cl. 2, 28.476%, 6/1/235
    1,118,892       211,639  
Trust 247, Cl. 2, 41.918%, 10/1/235
    106,124       20,752  
Trust 252, Cl. 2, 38.262%, 11/1/235
    1,069,553       201,764  
Trust 254, Cl. 2, 32.156%, 1/1/245
    1,919,190       362,151  
Trust 2682, Cl. TQ, 99.999%, 10/15/335
    2,611,897       478,655  
Trust 2981, Cl. BS, 99.999%, 5/15/355
    4,580,397       807,113  
17 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
FHLMC/FNMA/FHLB/Sponsored Continued
               
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued
               
Trust 301, Cl. 2, 6.48%, 4/1/295
  $ 620,491     $ 140,803  
Trust 303, Cl. IO, 9.587%, 11/1/295
    88,483       21,622  
Trust 319, Cl. 2, 9.224%, 2/1/325
    513,573       119,173  
Trust 320, Cl. 2, 15.895%, 4/1/325
    7,337,231       1,673,307  
Trust 321, Cl. 2, 9.029%, 4/1/325
    1,393,287       331,035  
Trust 324, Cl. 2, 5.209%, 7/1/325
    668,528       163,997  
Trust 331, Cl. 9, 10.317%, 2/1/335
    4,136,997       874,611  
Trust 334, Cl. 14, 19.98%, 2/1/335
    3,661,395       883,204  
Trust 334, Cl. 15, 8.144%, 2/1/335
    2,609,848       550,804  
Trust 334, Cl. 17, 22.032%, 2/1/335
    142,422       33,304  
Trust 339, Cl. 12, 1.685%, 7/1/335
    3,689,540       660,607  
Trust 339, Cl. 7, 25.806%, 7/1/335
    4,251,984       709,571  
Trust 343, Cl. 13, 9.424%, 9/1/335
    3,810,146       671,505  
Trust 343, Cl. 18, 17.289%, 5/1/345
    2,624,860       513,967  
Trust 345, Cl. 9, 49.761%, 1/1/345
    2,789,768       585,148  
Trust 351, Cl. 10, 0.718%, 4/1/345
    1,632,850       275,367  
Trust 351, Cl. 8, 6.703%, 4/1/345
    2,585,672       435,083  
Trust 356, Cl. 10, 19.822%, 6/1/355
    2,129,710       358,760  
Trust 356, Cl. 12, 22.327%, 2/1/355
    1,068,053       178,502  
Trust 362, Cl. 13, 1.269%, 8/1/355
    2,538,198       433,439  
Trust 364, Cl. 16, 13.625%, 9/1/355
    3,757,730       710,845  
Trust 365, Cl. 16, 4.366%, 3/1/365
    2,864,154       508,219  
Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security, Trust 1993-184, Cl. M, 3.914%, 9/25/237
    353,013       309,695  
 
             
 
            634,812,222  
 
               
GNMA/Guaranteed—0.1%
               
Government National Mortgage Assn.:
               
2.625%, 8/8/25-7/1/272
    14,451       14,988  
8.50%, 8/1/17-12/15/17
    100,052       113,455  
10.50%, 12/29/17
    7,356       8,361  
11%, 11/8/19
    14,494       16,199  
12%, 5/29/14
    120       121  
Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
               
Series 2001-21, Cl. SB, 88.303%, 1/16/275
    772,288       144,592  
Series 2002-15, Cl. SM, 78.324%, 2/16/325
    867,458       168,784  
Series 2002-41, Cl. GS, 65.864%, 6/16/325
    654,981       159,456  
Series 2002-76, Cl. SY, 78.597%, 12/16/265
    406,137       81,018  
Series 2004-11, Cl. SM, 75.843%, 1/17/305
    163,810       36,999  
Series 2007-17, Cl. AI, 21.74%, 4/16/375
    4,374,186       766,078  
 
             
 
            1,510,051  
 
               
Non-Agency—13.2%
               
Commercial—8.2%
               
Asset Securitization Corp., Commercial Interest-Only Stripped Mtg.-Backed Security, Series 1997-D4, Cl. PS1, 0.046%, 4/14/295
    7,549,705       203,313  
18 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
Commercial Continued
               
Banc of America Commercial Mortgage Trust 2007-1, Commercial Mtg. Pass-Through Certificates, Series 2007-1, Cl. A4, 5.451%, 1/1/49
  $ 5,399,000     $ 5,846,422  
Bear Stearns ARM Trust 2007-4, Mtg. Pass-Through Certificates, Series 2007-4, Cl. 22A1, 5.762%, 6/1/472
    3,262,080       2,611,357  
Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed Pass-Through Certificates, Series 1997-CTL1, 0%, 6/22/241,5,6
    1,484,332       69,265  
CFCRE Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2011-C1, Cl. A1, 1.871%, 4/1/441
    891,586       894,269  
CHL Mortgage Pass-Through Trust 2007-J3, Mtg. Pass-Through Certificates, Series 2007-J3, Cl. A9, 6%, 7/1/37
    1,328,726       1,099,920  
Citigroup, Inc./Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates:
               
Series 2007-CD4, Cl. A2B, 5.205%, 12/11/49
    1,010,000       1,031,770  
Series 2007-CD4, Cl. A4, 5.322%, 12/1/49
    3,310,000       3,516,807  
Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Series 2010-C1, Cl. A1, 3.156%, 7/1/461
    3,560,102       3,589,018  
Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security, Series 2010-C1, Cl. XPA, 4.843%, 9/1/201,5
    28,595,544       2,375,752  
First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35
    2,292,075       2,239,211  
First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37
    1,879,740       1,304,805  
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2005-GG5, Commercial Mtg. Pass-Through Certificates, Series 2005-GG5, Cl. AM, 5.277%, 4/1/37
    635,000       614,999  
GS Mortgage Securities Corp. II, Commercial Mtg. Obligations, Series 2011-GC3, Cl. A1, 2.331%, 3/1/44
    2,360,990       2,401,208  
GSR Mortgage Loan Trust 2005-AR4, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 6A1, 5.25%, 7/1/35
    2,633,962       2,630,925  
Impac CMB Trust Series 2005-4, Collateralized Asset-Backed Bonds, Series 2005-4, Cl. 1A1A, 0.726%, 5/25/352
    3,360,702       2,549,731  
IndyMac Index Mortgage Loan Trust 2005-AR23, Mtg. Pass-Through Certificates, Series 2005-AR23, Cl. 6A1, 5.181%, 11/1/352
    4,242,414       3,142,594  
JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates:
               
Series 2007-LDP10, Cl. A3S, 5.317%, 1/1/49
    3,980,000       4,146,455  
Series 2007-LDPX, Cl. A2S2, 5.187%, 1/1/494
    285,000       286,890  
Series 2007-LDPX, Cl. A3, 5.42%, 1/15/49
    945,000       1,014,557  
Series 2010-C2, Cl. A2, 3.616%, 11/1/431
    4,290,000       4,197,712  
Series 2011-C3, Cl. A1, 1.875%, 2/1/461
    2,642,633       2,663,798  
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Commercial Mtg. Pass-Through Certificates, Series 2006-LDP7, 5.87%, 4/1/452
    1,035,000       1,074,228  
19 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
Commercial Continued
               
JPMorgan Chase Commercial Mortgage Securities Trust 2007-CB19, Commercial Mtg. Pass-Through Certificates, Series 2007-CB19, Cl. AM, 5.932%, 2/1/492
  $ 685,000     $ 665,646  
JPMorgan Mortgage Trust 2007-S3, Mtg. Pass-Through Certificates, Series 2007-S3, Cl. 1A90, 7%, 8/1/37
    3,665,073       2,916,154  
LB-UBS Commercial Mortgage Trust 2006-C3, Commercial Mtg. Pass-Through Certificates, Series 2006-C3, Cl. AM, 5.712%, 3/11/39
    150,000       149,687  
LB-UBS Commercial Mortgage Trust 2007-C1, Commercial Mtg. Pass-Through Certificates, Series 2007-C1, Cl. A2, 5.318%, 2/11/40
    2,750,000       2,782,403  
Lehman Brothers Commercial Conduit Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 1998-C1, Cl. IO, 0%, 2/18/305,6
    2,239,704       45,282  
Lehman Structured Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 2002-GE1, Cl. A, 2.514%, 7/1/241
    98,268       75,318  
Mastr Alternative Loan Trust 2004-6, Mtg. Pass-Through Certificates, Series 2004-6, Cl. 10A1, 6%, 7/25/34
    1,276,806       1,307,987  
ML-CFC Commercial Mortgage Trust 2006-3, Commercial Mtg. Pass-Through Certificates, Series 2006-3, Cl. AM, 5.456%, 7/12/46
    6,010,000       5,978,472  
Morgan Stanley Capital I Trust 2007-IQ16, Commercial Mtg. Pass-Through Certificates, Series 2007-IQ16, Cl. AM, 6.313%, 12/1/492
    1,570,000       1,555,708  
Salomon Brothers Mortgage Securities VII, Inc., Interest-Only Commercial Mtg. Pass-Through Certificates, Series 1999-C1, Cl. X, 0%, 5/18/325,6
    29,227,093       90,350  
Structured Adjustable Rate Mortgage Loan Trust, Mtg. Pass-Through Certificates, Series 2007-6, Cl. 3A1, 5.244%, 7/1/372
    3,660,572       2,439,068  
Wachovia Bank Commercial Mortgage Trust 2006-C27, Commercial Mtg. Pass-Through Certificates, Series 2006-C27, Cl. AM, 5.795%, 7/15/45
    4,370,000       4,430,183  
Wachovia Bank Commercial Mortgage Trust 2006-C28, Commercial Mtg. Pass-Through Certificates, Series 2006-C28, Cl. A4, 5.572%, 10/1/48
    5,215,000       5,645,969  
Wachovia Bank Commercial Mortgage Trust 2006-C29, Commercial Mtg. Pass-Through Certificates, Series 2006-C29, Cl. A2, 5.275%, 11/15/48
    2,143,471       2,165,029  
Wachovia Bank Commercial Mortgage Trust 2007-C34, Commercial Mtg. Pass-Through Certificates, Series 2007-C34, Cl. A3, 5.678%, 5/1/46
    2,965,000       3,204,757  
WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust, Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A4, 2.665%, 12/1/352
    2,206,354       1,899,602  
Wells Fargo Commercial Mortgage Trust 2010-C1, Commercial Mtg. Pass-Through Certificates, Series 2010-C1, Cl. A1, 3.349%, 11/1/431
    2,253,209       2,263,731  
Wells Fargo Mortgage-Backed Securities 2007-AR8 Trust, Mtg. Pass-Through Certificates, Series 2007-AR8, Cl. A1, 6.088%, 11/1/372
    3,072,618       2,506,779  
WFRBS Commercial Mortgage Trust 2011-C3, Interest-Only Commercial Mtg. Pass-Through Certificates, Series 2011-C3, Cl. XA, 6.192%, 3/1/445
    28,935,000       2,747,338  
 
             
 
            92,374,469  
20 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
Multifamily—1.2%
               
Bear Stearns ARM Trust 2005-10, Mtg. Pass-Through Certificates, Series 2005-10, Cl. A3, 2.827%, 10/1/352
  $ 2,095,000     $ 1,823,566  
Citigroup Mortgage Loan Trust, Inc. 2006-AR3, Mtg. Pass-Through Certificates, Series 2006-AR3, Cl. 1A2A, 5.688%, 6/1/362
    2,748,411       2,410,107  
GE Capital Commercial Mortgage Corp., Commercial Mtg. Pass-Through Certificates, Series 2001-3, Cl. A2, 6.07%, 6/1/38
    2,770,810       2,786,444  
JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through Certificates, Series 2007-A3, Cl. 3A2M, 5.557%, 5/1/372
    647,705       562,931  
Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A3, 2.756%, 3/1/362
    4,775,785       4,101,795  
Wells Fargo Mortgage-Backed Securities 2006-AR6 Trust, Mtg. Pass-Through Certificates, Series 2006-AR6, Cl. 3A1, 2.819%, 3/25/362
    2,694,323       2,281,260  
 
             
 
            13,966,103  
 
               
Other—0.4%
               
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A4, 5.444%, 3/1/39
    3,565,000       3,829,155  
Salomon Brothers Mortgage Securities VI, Inc., Interest-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. B, 50.921%, 10/23/175
    720       81  
Salomon Brothers Mortgage Securities VI, Inc., Principal-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. A, 1.033%, 10/23/177
    1,066       1,047  
 
             
 
            3,830,283  
 
               
Residential—3.4%
               
Banc of America Funding 2007-C Trust, Mtg. Pass-Through Certificates, Series 2007-C, Cl. 1A4, 5.58%, 5/1/362
    945,000       865,330  
CHL Mortgage Pass-Through Trust 2005-29, Mtg. Pass-Through Certificates, Series 2005-29, Cl. A1, 5.75%, 12/1/35
    1,127,602       992,940  
CHL Mortgage Pass-Through Trust 2005-HYB7, Mtg. Pass-Through Certificates, Series 2005-HYB7, Cl. 6A1, 5.383%, 11/1/352
    2,932,272       2,177,612  
CHL Mortgage Pass-Through Trust 2006-6, Mtg. Pass-Through Certificates, Series 2006-6, Cl. A3, 6%, 4/1/36
    2,270,781       2,161,582  
Countrywide Alternative Loan Trust 2005-21CB, Mtg. Pass-Through Certificates, Series 2005-21CB, Cl. A7, 5.50%, 6/1/35
    4,390,639       3,891,950  
Countrywide Alternative Loan Trust 2005-29CB, Mtg. Pass-Through Certificates, Series 2005-29CB, Cl. A4, 5%, 7/1/35
    2,807,107       2,148,961  
Countrywide Alternative Loan Trust 2007-19, Mtg. Pass-Through Certificates, Series 2007-19, Cl. 1A34, 6%, 8/1/37
    2,445,932       1,899,093  
GSR Mortgage Loan Trust 2006-5F, Mtg. Pass-Through Certificates, Series 2006-5F, Cl. 2A1, 6%, 6/1/36
    2,866,447       2,756,143  
JPMorgan Alternative Loan Trust 2006-S4, Mtg. Pass-Through Certificates, Series 2006-S4, Cl. A6, 5.71%, 12/1/36
    3,226,506       2,855,506  
Merrill Lynch Mortgage Loans, Inc., Mtg. Pass-Through Certificates, Series 2005-A1, Cl. 2A1, 2.794%, 12/25/342
    1,356,860       1,304,226  
21 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
Residential Continued
               
RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33
  $ 452,960     $ 463,064  
RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36
    357,034       216,228  
RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A28, 5.75%, 4/25/37
    1,851,117       1,153,528  
Residential Asset Securitization Trust 2005-A15, Mtg. Pass-Through Certificates, Series 2005-A15, Cl. 1A4, 5.75%, 2/1/36
    767,484       629,538  
Thornburg Mortgage Securities Trust 2006-6, Mtg. Pass-Through Certificates, Series 2006-6, Cl. A2, 0.336%, 11/25/462
    2,830,167       2,790,309  
WaMu Mortgage Pass-Through Certificates 2007-HY2 Trust, Mtg. Pass-Through Certificates, Series 2007-HY2, Cl. 1A1, 3.406%, 12/1/362
    548,852       413,247  
WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 3A1, 5.684%, 5/1/372
    2,465,023       2,161,635  
WaMu Mortgage Pass-Through Certificates 2007-HY6 Trust, Mtg. Pass-Through Certificates, Series 2007-HY6, Cl. 2A1, 5.477%, 6/25/372
    1,148,502       956,420  
Wells Fargo Alternative Loan 2007-PA5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-PA5, Cl. 1A1, 6.25%, 11/1/37
    2,326,439       1,983,531  
Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg. Pass-Through Certificates, Series 2004-R, Cl. 2A1, 2.874%, 9/1/342
    689,749       686,531  
Wells Fargo Mortgage-Backed Securities 2005-AR16 Trust, Mtg. Pass-Through Certificates, Series 2005-AR16, Cl. 2A1, 2.756%, 10/1/352
    3,959,866       3,582,784  
Wells Fargo Mortgage-Backed Securities 2006-AR14 Trust, Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 1A2, 5.693%, 10/1/362
    2,605,454       2,304,934  
 
             
 
            38,395,092  
 
             
Total Mortgage-Backed Obligations (Cost $764,969,838)
            784,888,220  
 
               
U.S. Government Obligations—3.9%
               
Federal Home Loan Mortgage Corp. Nts.:
               
1.75%, 9/10/15
    980,000       984,669  
2.50%, 5/27/16
    1,325,000       1,359,830  
5%, 2/16/17
    1,510,000       1,725,115  
5.25%, 4/18/16
    2,650,000       3,054,080  
5.50%, 7/18/16
    1,510,000       1,756,634  
Federal National Mortgage Assn. Nts.:
               
2.375%, 4/11/16
    2,525,000       2,579,300  
4.875%, 12/15/16
    2,145,000       2,435,463  
5%, 3/15/16
    1,655,000       1,887,261  
U.S. Treasury Bonds:
               
7.50%, 11/15/169
    7,700,000       9,929,389  
STRIPS, 3.862%, 2/15/1310
    1,520,000       1,511,328  
U.S. Treasury Nts., 5.125%, 5/15/16
    14,830,000       17,225,979  
 
             
Total U.S. Government Obligations (Cost $43,349,686)
            44,449,048  
22 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
Corporate Bonds and Notes—33.6%
               
Consumer Discretionary—4.5%
               
Diversified Consumer Services—0.3%
               
Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15
  $ 2,880,000     $ 3,103,200  
Hotels, Restaurants & Leisure—0.7%
               
Hyatt Hotels Corp., 5.75% Sr. Unsec. Unsub. Nts., 8/15/151
    4,300,000       4,523,372  
Marriott International, Inc., 6.20% Sr. Unsec. Unsub. Nts., 6/15/16
    3,081,000       3,464,618  
 
             
 
            7,987,990  
 
               
Household Durables—0.8%
               
Fortune Brands, Inc., 6.375% Sr. Unsec. Unsub. Nts., 6/15/14
    2,172,000       2,415,577  
Newell Rubbermaid, Inc., 5.50% Sr. Unsec. Nts., 4/15/13
    2,660,000       2,847,937  
Whirlpool Corp.:
               
5.50% Sr. Unsec. Unsub. Nts., 3/1/13
    971,000       1,029,592  
8% Sr. Unsec. Nts., 5/1/12
    2,270,000       2,398,725  
 
             
 
            8,691,831  
 
               
Leisure Equipment & Products—0.2%
               
Mattel, Inc., 5.625% Sr. Unsec. Nts., 3/15/13
    2,640,000       2,824,388  
Media—2.0%
               
Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22
    1,751,000       2,438,886  
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 6.375% Sr. Unsec. Nts., 3/1/41
    2,198,000       2,354,843  
Historic TW, Inc., 9.125% Debs., 1/15/13
    922,000       1,025,659  
Interpublic Group of Cos., Inc. (The):
               
6.25% Sr. Unsec. Nts., 11/15/14
    984,000       1,094,700  
10% Sr. Unsec. Nts., 7/15/17
    3,281,000       3,896,188  
Lamar Media Corp., 9.75% Sr. Unsec. Nts., 4/1/14
    2,615,000       3,033,400  
Time Warner Entertainment Co. LP, 8.375% Sr. Nts., 7/15/33
    1,542,000       1,976,432  
Viacom, Inc., 7.875% Sr. Unsec. Debs., 7/30/30
    1,585,000       1,896,613  
Virgin Media Secured Finance plc:
               
5.25% Sr. Sec. Nts., 1/15/211
    1,398,000       1,490,541  
6.50% Sr. Sec. Nts., 1/15/18
    3,389,000       3,732,136  
 
             
 
            22,939,398  
 
               
Multiline Retail—0.2%
               
Family Dollar Stores, Inc., 5% Sr. Unsec. Nts., 2/1/21
    2,789,000       2,738,396  
Specialty Retail—0.3%
               
Rent-A-Center, Inc., 6.625% Sr. Unsec. Nts., 11/15/20
    2,829,000       2,829,000  
23 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
Consumer Staples—1.9%
               
Food & Staples Retailing—0.2%
               
Real Time Data Co., 11% Nts., 5/31/093,4,11
  $ 476,601     $  
Wal-Mart Stores, Inc., 5.625% Sr. Unsec. Nts., 4/15/41
    1,686,000       1,745,809  
 
             
 
            1,745,809  
 
               
Food Products—0.8%
               
Bunge Ltd. Finance Corp.:
               
5.35% Sr. Unsec. Unsub. Nts., 4/15/14
    980,000       1,056,926  
8.50% Sr. Unsec. Nts., 6/15/19
    1,455,000       1,775,526  
Kraft Foods, Inc., 6% Sr. Unsec. Nts., 2/11/13
    2,601,000       2,805,231  
TreeHouse Foods, Inc., 7.75% Sr. Unsec. Nts., 3/1/18
    2,810,000       2,992,650  
 
             
 
            8,630,333  
 
               
Household Products—0.2%
               
Energizer Holdings, Inc., 4.70% Sr. Nts., 5/19/211
    2,866,000       2,834,210  
Tobacco—0.7%
               
Altria Group, Inc., 10.20% Sr. Unsec. Nts., 2/6/39
    2,075,000       2,984,786  
Lorillard Tobacco Co., 8.125% Sr. Unsec. Nts., 5/1/40
    1,602,000       1,767,326  
Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13
    2,591,000       2,865,252  
 
             
 
            7,617,364  
 
               
Energy—3.8%
               
Energy Equipment & Services—0.9%
               
Ensco plc, 4.70% Sr. Unsec. Nts., 3/15/21
    3,832,000       3,875,815  
Rowan Cos., Inc., 5% Sr. Unsec. Nts., 9/1/17
    2,415,000       2,585,528  
Weatherford International Ltd., 6.50% Sr. Unsec. Bonds, 8/1/36
    1,841,000       1,904,966  
Weatherford International Ltd. Bermuda, 5.125% Sr. Unsec. Unsub. Nts., 9/15/20
    1,943,000       1,986,160  
 
             
 
            10,352,469  
 
               
Oil, Gas & Consumable Fuels—2.9%
               
Anadarko Petroleum Corp., 6.20% Sr. Unsec. Nts., 3/15/40
    1,718,000       1,747,048  
Cloud Peak Energy Resources LLC, 8.25% Sr. Unsec. Unsub. Nts., 12/15/17
    2,710,000       2,913,250  
El Paso Pipeline Partners LP, 6.50% Sr. Unsec. Nts., 4/1/20
    3,969,000       4,460,235  
Gulf South Pipeline Co. LP, 5.75% Sr. Unsec. Nts., 8/15/121
    2,685,000       2,793,023  
Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13
    4,797,000       5,136,867  
Kinder Morgan Energy Partners LP, 6.50% Sr. Unsec. Unsub. Nts., 9/1/39
    1,377,000       1,434,552  
Nexen, Inc., 6.40% Sr. Unsec. Unsub. Bonds, 5/15/37
    2,876,000       2,877,875  
Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19
    2,498,000       2,722,820  
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/141
    1,530,000       1,681,164  
Rockies Express Pipeline LLC, 3.90% Sr. Unsec. Unsub. Nts., 4/15/151
    4,653,000       4,723,456  
Woodside Finance Ltd., 4.60% Sr. Unsec. Nts., 5/10/211
    1,952,000       1,918,238  
 
             
 
            32,408,528  
24 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
Financials—13.9%
               
Capital Markets—3.1%
               
Blackstone Holdings Finance Co. LLC, 6.625% Sr. Unsec. Nts., 8/15/191
  $ 4,750,000     $ 5,114,444  
Credit Suisse Guernsey Ltd., 5.86% Jr. Sub. Perpetual Nts.12
    3,998,000       3,840,079  
Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34
    3,075,000       2,916,373  
Macquarie Bank Ltd., 6.625% Unsec. Sub. Nts., 4/7/211
    3,794,000       3,821,370  
Morgan Stanley:
               
5.50% Sr. Unsec. Unsub. Nts., 7/24/201
    1,205,000       1,221,072  
5.55% Sr. Unsec. Unsub. Nts., Series F, 4/27/17
    6,830,000       7,245,141  
Nomura Holdings, Inc., 4.125% Sr. Unsec. Unsub. Nts., 1/19/16
    2,649,000       2,684,197  
TD Ameritrade Holding Corp., 2.95% Sr. Unsec. Unsub. Nts., 12/1/12
    2,870,000       2,936,062  
UBS AG Stamford CT, 2.25% Sr. Unsec. Nts., 8/12/13
    1,120,000       1,139,626  
UBS Preferred Funding Trust V, 6.243% Jr. Sub. Perpetual Nts.12
    3,854,000       3,815,460  
 
             
 
            34,733,824  
 
               
Commercial Banks—3.3%
               
ANZ National International Ltd., 2.375% Sr. Unsec. Nts., 12/21/121
    3,088,000       3,136,071  
BNP Paribas SA, 5.186% Sub. Perpetual Nts.1,12
    3,080,000       2,850,540  
Fifth Third Cap Trust IV, 6.50% Jr. Unsec. Sub. Nts., 4/15/37
    5,147,000       5,095,530  
HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/352
    7,580,000       7,201,000  
Huntington Bancshares, Inc., 7% Sub. Nts., 12/15/20
    2,881,000       3,252,001  
Lloyds TSB Bank plc, 6.50% Unsec. Sub. Nts., 9/14/201
    3,137,000       2,962,275  
Standard Chartered plc, 6.409% Cv. Jr. Unsec. Sub. Bonds, 1/29/491
    4,100,000       3,907,562  
Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K12
    4,254,000       4,615,590  
Zions Bancorp., 7.75% Sr. Unsec. Nts., 9/23/14
    3,687,000       4,044,248  
 
             
 
            37,064,817  
 
               
Consumer Finance—0.6%
               
American Express Bank FSB, 5.50% Sr. Unsec. Nts., 4/16/13
    2,690,000       2,878,488  
SLM Corp., 6.25% Sr. Nts., 1/25/16
    3,807,000       3,951,940  
 
             
 
            6,830,428  
 
               
Diversified Financial Services—2.4%
               
Bank of America Corp., 5.875% Sr. Unsec. Unsub. Nts., 1/5/21
    910,000       956,135  
Citigroup, Inc., 3.953% Sr. Unsec. Nts., 6/15/16
    6,250,000       6,402,175  
Glen Meadow Pass-Through Trust, 6.505% Bonds, 2/12/671,2
    3,210,000       2,848,875  
ING Groep NV, 5.775% Jr. Unsec. Sub. Perpetual Bonds12
    3,220,000       2,978,500  
JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 112
    8,365,000       9,015,337  
Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38
    4,365,000       4,853,221  
 
             
 
            27,054,243  
25 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
Insurance—3.6%
               
CNA Financial Corp.:
               
5.75% Sr. Unsec. Unsub. Nts., 8/15/21
  $ 2,178,000     $ 2,251,734  
5.875% Sr. Unsec. Unsub. Bonds, 8/15/20
    2,810,000       2,924,951  
Hartford Financial Services Group, Inc. (The), 5.25% Sr. Unsec. Nts., 10/15/11
    2,570,000       2,601,310  
International Lease Finance Corp., 5.75% Sr. Unsec. Unsub. Nts., 5/15/16
    2,689,000       2,649,453  
Irish Life & Permanent Group Holdings plc, 3.60% Sr. Unsec. Unsub. Nts., 1/14/131
    3,700,000       3,147,194  
Liberty Mutual Group, Inc., 5% Sr. Nts., 6/1/211
    4,065,000       3,853,957  
Lincoln National Corp., 6.05% Jr. Unsec. Sub. Bonds, 4/20/67
    5,710,000       5,552,975  
Prudential Financial, Inc., 3.625% Sr. Unsec. Unsub. Nts., 9/17/12
    3,039,000       3,120,412  
Reinsurance Group of America, Inc., 5% Sr. Unsec. Nts., 6/1/21
    4,003,000       3,965,192  
Swiss Re Capital I LP, 6.854% Perpetual Bonds1,12
    5,448,000       5,263,073  
Willis Group Holdings plc, 4.125% Sr. Unsec. Unsub. Nts., 3/15/16
    2,819,000       2,875,775  
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/372,4
    2,774,000       2,774,000  
 
             
 
            40,980,026  
 
               
Real Estate Investment Trusts—0.9%
               
AvalonBay Communities, Inc., 6.625% Sr. Unsec. Unsub. Nts., 9/15/11
    1,154,000       1,167,151  
Brandywine Operating Partnership LP, 5.75% Sr. Unsec. Unsub. Nts., 4/1/12
    1,402,000       1,448,908  
CommonWealth REIT, 6.95% Sr. Unsec. Nts., 4/1/12
    642,000       663,167  
Mack-Cali Realty LP, 5.25% Sr. Unsec. Unsub. Nts., 1/15/12
    1,005,000       1,026,252  
Simon Property Group LP, 5% Sr. Unsec. Unsub. Nts., 3/1/12
    2,825,000       2,873,531  
WCI Finance LLC/WEA Finance LLC, 5.40% Sr. Unsec. Unsub. Nts., 10/1/121
    2,718,000       2,856,564  
 
             
 
            10,035,573  
 
               
Health Care—0.7%
               
Biotechnology—0.1%
               
Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40
    1,783,000       1,752,673  
Health Care Providers & Services—0.3%
               
McKesson Corp., 6% Sr. Unsec. Unsub. Nts., 3/1/41
    1,440,000       1,543,699  
Quest Diagnostics, Inc., 5.75% Sr. Unsec. Nts., 1/30/40
    1,742,000       1,731,276  
 
             
 
            3,274,975  
 
               
Pharmaceuticals—0.3%
               
Mylan, Inc., 6% Sr. Nts., 11/15/181
    3,035,000       3,099,494  
Industrials—1.7%
               
Aerospace & Defense—0.5%
               
Alliant Techsystems, Inc., 6.75% Sr. Sub. Nts., 4/1/16
    2,880,000       2,952,000  
BE Aerospace, Inc., 8.50% Sr. Unsec. Nts., 7/1/18
    2,560,000       2,800,000  
 
             
 
               
 
            5,752,000  
26 | OPPENHEIMER CORE BOND FUND

 


 

                 
    Principal        
    Amount     Value  
 
Commercial Services & Supplies—0.4%
               
Corrections Corp. of America, 7.75% Sr. Nts., 6/1/17
  $ 2,797,000     $ 3,059,219  
Republic Services, Inc., 6.75% Sr. Unsec. Unsub. Nts., 8/15/11
    1,640,000       1,649,553  
 
             
 
            4,708,772  
 
               
Industrial Conglomerates—0.8%
               
General Electric Capital Corp.:
               
4.25% Sr. Unsec. Nts., Series A, 6/15/12
    2,385,000       2,469,555  
5.25% Sr. Unsec. Nts., 10/19/12
    578,000       609,457  
6.375% Unsec. Sub. Bonds, 11/15/67
    5,013,000       5,157,124  
 
             
 
            8,236,136  
 
               
Information Technology—1.8%
               
Communications Equipment—0.6%
               
Harris Corp., 6.15% Sr. Unsec. Nts., 12/15/40
    3,126,000       3,297,280  
Juniper Networks, Inc., 5.95% Sr. Unsec. Unsub. Nts., 3/15/41
    1,100,000       1,136,771  
Motorola, Inc., 8% Sr. Unsec. Nts., 11/1/11
    2,675,000       2,734,329  
 
             
 
            7,168,380  
 
               
Electronic Equipment & Instruments—0.5%
               
Arrow Electronics, Inc., 3.375% Sr. Unsec. Unsub. Nts., 11/1/15
    5,350,000       5,423,183  
Office Electronics—0.2%
               
Xerox Corp., 5.65% Sr. Unsec. Nts., 5/15/13
    2,655,000       2,859,177  
Semiconductors & Semiconductor Equipment—0.2%
               
KLA-Tencor Corp., 6.90% Sr. Unsec. Nts., 5/1/18
    1,870,000       2,114,250  
Software—0.3%
               
Symantec Corp., 4.20% Sr. Unsec. Unsub. Nts., 9/15/20
    3,163,000       3,045,415  
Materials—1.8%
               
Chemicals—0.8%
               
Agrium, Inc., 6.125% Sr. Unsec. Nts., 1/15/41
    1,219,000       1,275,710  
Airgas, Inc., 3.25% Sr. Nts., 10/1/15
    2,506,000       2,550,286  
Ashland, Inc., 9.125% Sr. Unsec. Nts., 6/1/17
    2,657,000       3,002,410  
Potash Corp. of Saskatchewan, Inc., 5.625% Sr. Unsec. Unsub. Nts., 12/1/40
    1,735,000       1,747,617  
 
             
 
            8,576,023  
 
               
Containers & Packaging—0.2%
               
Sealed Air Corp., 7.875% Sr. Nts., 6/15/17
    2,637,000       2,854,260  
Metals & Mining—0.8%
               
Freeport-McMoRan Copper & Gold, Inc., 8.375% Sr. Nts., 4/1/17
    4,209,000       4,603,602  
Vale Inco Ltd., 5.70% Sr. Unsec. Unsub. Nts., 10/15/15
    173,000       190,477  
Xstrata Canada Corp.:
               
5.375% Sr. Unsec. Unsub. Nts., 6/1/15
    1,485,000       1,616,623  
6% Sr. Unsec. Unsub. Nts., 10/15/15
    1,775,000       1,979,292  
27 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
                 
    Principal        
    Amount     Value  
 
Metals & Mining Continued
               
Xstrata Canada Corp.: Continued
               
7.25% Sr. Unsec. Unsub. Nts., 7/15/12
  $ 640,000     $ 676,748  
Xstrata Finance Canada Ltd., 5.80% Sr. Unsec. Unsub. Bonds, 11/15/161
    52,000       58,272  
 
             
 
            9,125,014  
 
               
Telecommunication Services—1.6%
               
Diversified Telecommunication Services—1.4%
               
AT&T, Inc., 6.30% Sr. Unsec. Bonds, 1/15/38
    3,873,000       4,114,977  
British Telecommunications plc, 9.875% Bonds, 12/15/30
    1,796,000       2,473,455  
CenturyLink, Inc., 7.60% Sr. Unsec. Unsub. Nts., Series P, 9/15/39
    971,000       936,625  
Frontier Communications Corp., 8.25% Sr. Unsec. Nts., 4/15/17
    2,881,000       3,147,493  
Qwest Corp., 7.625% Sr. Unsec. Unsub. Nts., 6/15/15
    2,675,000       3,036,125  
Verizon Communications, Inc., 6.40% Sr. Unsec. Nts., 2/15/38
    1,690,000       1,837,667  
 
             
 
            15,546,342  
 
               
Wireless Telecommunication Services—0.2%
               
American Tower Corp., 7% Sr. Unsec. Nts., 10/15/17
    1,975,000       2,235,696  
Utilities—1.9%
               
Electric Utilities—1.9%
               
Allegheny Energy Supply Co. LLC, 8.25% Bonds, 4/15/121
    2,563,000       2,702,307  
FirstEnergy Solutions Corp., 6.80% Sr. Unsec. Nts., 8/15/39
    1,751,000       1,826,633  
Great Plains Energy, Inc., 2.75% Sr. Unsec. Unsub. Nts., 8/15/13
    2,763,000       2,826,850  
Northeast Utilities Co., 7.25% Sr. Unsec. Nts., 4/1/12
    2,860,000       2,981,370  
Oncor Electric Delivery Co., 7% Debs., 9/1/22
    2,389,000       2,851,866  
PPL WEM Holdings plc, 3.90% Sr. Unsec. Nts., 5/1/161
    4,050,000       4,158,585  
Texas-New Mexico Power Co., 9.50% Sec. Nts., 4/1/191
    3,010,000       3,871,555  
 
             
 
            21,219,166  
 
             
Total Corporate Bonds and Notes (Cost $365,890,580)
            378,392,783  
 
               
 
  Shares          
Common Stocks—0.0%
               
Chesapeake Energy Corp. (Cost $9)
    181       5,375  
Investment Company—19.4%
               
Oppenheimer Institutional Money Market Fund, Cl. E, 0.15%13,14
(Cost $218,608,633)
    218,608,633       218,608,633  
Total Investments, at Value (Cost $1,516,795,782)
    137.3 %     1,548,271,550  
Liabilities in Excess of Other Assets
    (37.3 )     (420,552,899 )
     
 
               
Net Assets
    100.0 %   $ 1,127,718,651  
     
28 | OPPENHEIMER CORE BOND FUND

 


 

Footnotes to Statement of Investments
 
1.   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 $143,240,914 or 12.70% of the Fund’s net assets as of June 30, 2011.
 
2.   Represents the current interest rate for a variable or increasing rate security.
 
3.   This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and/or principal payments. The rate shown is the original contractual interest rate. See Note 1 of the accompanying Notes.
 
4.   Restricted security. The aggregate value of restricted securities as of June 30, 2011 was $6,595,374, which represents 0.58% of the Fund’s net assets. See Note 6 of the accompanying Notes. Information concerning restricted securities is as follows:
                                 
                            Unrealized  
    Acquisition                     Appreciation  
Security   Dates     Cost     Value     (Depreciation)  
 
JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 2007-LDPX, Cl. A2S2, 5.187%, 1/1/49
    7/14/10     $ 281,438     $ 286,890     $ 5,452  
NC Finance Trust, Collateralized Mtg. Obligation Pass-Through Certificates, Series 1999-I, Cl. ECFD, 3.405%, 1/25/29
    8/10/10       1,703,335       148,806       (1,554,529 )
Real Time Data Co., 11% Nts., 5/31/09
    6/30/99-5/31/01       365,810             (365,810 )
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17
    2/4/11-4/14/11       3,386,419       3,385,678       (741 )
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37
    2/24/11       2,800,497       2,774,000       (26,497 )
             
 
          $ 8,537,499     $ 6,595,374     $ (1,942,125 )
             
 
5.   Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $38,232,308 or 3.39% of the Fund’s net assets as of June 30, 2011.
 
6.   The current amortization rate of the security’s cost basis exceeds the future interest payments currently estimated to be received. Both the amortization rate and interest payments are contingent on future mortgage pre-payment speeds and are therefore subject to change.
 
7.   Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $437,629 or 0.04% of the Fund’s net assets as of June 30, 2011.
 
8.   When-issued security or delayed delivery to be delivered and settled after June 30, 2011. See Note 1 of the accompanying Notes.
 
9.   All or a portion of the security position is held in collateralized accounts to cover initial margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $6,060,796. See Note 5 of the accompanying Notes.
 
10.   Zero coupon bond reflects effective yield on the date of purchase.
 
11.   Interest or dividend is paid-in-kind, when applicable.
29 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments Continued
 
12.   This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security.
 
13.   Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 30, 2011, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
                                 
    Shares     Gross     Gross     Shares  
    December 31, 2010     Additions     Reductions     June 30, 2011  
 
Oppenheimer Institutional Money Market Fund, Cl. E
    150,910,167       292,730,350       225,031,884       218,608,633  
                 
    Value     Income  
 
Oppenheimer Institutional Money Market Fund, Cl. E
  $ 218,608,633     $ 157,730  
 
14.   Rate shown is the 7-day yield as of June 30, 2011.
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 or liability (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 or liability).
The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 30, 2011 based on valuation input level:
                                 
                    Level 3—        
    Level 1—     Level 2—     Significant        
    Unadjusted     Other Significant     Unobservable        
    Quoted Prices     Observable Inputs     Inputs     Value  
 
Assets Table
                               
Investments, at Value:
                               
Asset-Backed Securities
  $     $ 121,927,491     $     $ 121,927,491  
Mortgage-Backed Obligations
          784,888,220             784,888,220  
U.S. Government Obligations
          44,449,048             44,449,048  
Corporate Bonds and Notes
          378,392,783             378,392,783  
Common Stocks
    5,375                   5,375  
Investment Company
    218,608,633                   218,608,633  
     
Total Investments, at Value
    218,614,008       1,329,657,542             1,548,271,550  
Other Financial Instruments:
                               
Swaps
          24,318             24,318  
Futures margins
    415,743                   415,743  
     
Total Assets
  $ 219,029,751     $ 1,329,681,860     $     $ 1,548,711,611  
     
 
                               
Liabilities Table
                               
Other Financial Instruments:
                               
Futures margins
  $ (501,766 )   $     $     $ (501,766 )
     
Total Liabilities
  $ (501,766 )   $     $     $ (501,766 )
     
30 | OPPENHEIMER CORE BOND FUND

 


 

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.
Futures Contracts as of June 30, 2011 are as follows:
                                         
                                    Unrealized  
            Number of     Expiration             Appreciation  
Contract Description   Buy/Sell     Contracts     Date     Value     (Depreciation)  
 
U.S. Treasury Long Bonds
  Buy     926       9/21/11     $ 113,926,938     $ (1,598,990 )
U.S. Treasury Nts., 2 yr.
  Sell     500       9/30/11       109,671,875       (2,205 )
U.S. Treasury Nts., 5 yr.
  Sell     302       9/30/11       35,996,985       (23,323 )
U.S. Treasury Nts., 10 yr.
  Sell     588       9/21/11       71,928,938       391,040  
U.S. Treasury Ultra Bonds
  Buy     35       9/21/11       4,418,750       (74,859 )
 
                                     
 
                                  $ (1,308,337 )
 
                                     
Credit Default Swap Contracts as of June 30, 2011 are as follows:
                                                         
                    Pay/             Upfront                
    Buy/Sell     Notional     Receive             Payment             Unrealized  
Reference Entity/   Credit     Amount     Fixed     Termination     Received/             Appreciation  
Swap Counterparty   Protection     (000’s)     Rate     Date     (Paid)     Value     (Depreciation)  
 
CDX North America Investment Grade Index, Volume H, Series 7
                                                       
Morgan Stanley Capital Services, Inc.
  Sell   $ 17,000       0.75 %     12/20/11     $ 64,344     $ 24,318     $ 88,662  
The table that follows shows the undiscounted maximum potential payment by the Fund related to selling credit protection in credit default swaps:
                         
    Total Maximum                
Type of Reference   Potential Payments                
Asset on which   for Selling Credit             Reference  
the Fund Sold   Protection     Amount     Asset Rating  
Protection   (Undiscounted)     Recoverable*     Range**  
 
Investment Grade Corporate Debt Indexes
  $ 17,000,000     $     BBB
 
*   The Fund has no amounts recoverable from related purchased protection. In addition, the Fund has no recourse provisions under the credit derivatives and holds no collateral which can offset or reduce potential payments under a triggering event.
 
**   The period end reference asset security ratings, as rated by any rating organization, are included in the equivalent Standard & Poor’s rating category. The reference asset rating represents the likelihood of a potential credit event on the reference asset which would result in a related payment by the Fund.
See accompanying Notes to Financial Statements.
31 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF ASSETS AND LIABILITIES Unaudited
June 30, 2011
         
Assets
       
Investments, at value—see accompanying statement of investments:
       
Unaffiliated companies (cost $1,298,187,149)
  $ 1,329,662,917  
Affiliated companies (cost $218,608,633)
    218,608,633  
 
     
 
    1,548,271,550  
 
Cash
    88,053  
 
Appreciated swaps, at value (upfront payments received $64,344)
    24,318  
 
Receivables and other assets:
       
Investments sold (including $246,483,814 sold on a when-issued or delayed delivery basis)
    253,225,799  
Interest, dividends and principal paydowns
    7,618,930  
Shares of beneficial interest sold
    535,146  
Futures margins
    415,743  
Other
    63,292  
 
     
Total assets
    1,810,242,831  
 
       
Liabilities
       
Payables and other liabilities:
       
Investments purchased (including $674,006,479 purchased on a when-issued or delayed delivery basis)
    679,656,605  
Shares of beneficial interest redeemed
    1,514,168  
Futures margins
    501,766  
Distribution and service plan fees
    349,420  
Dividends
    222,535  
Transfer and shareholder servicing agent fees
    136,223  
Shareholder communications
    88,761  
Trustees’ compensation
    32,113  
Other
    22,589  
 
     
Total liabilities
    682,524,180  
 
       
Net Assets
  $ 1,127,718,651  
 
     
 
       
Composition of Net Assets
       
Par value of shares of beneficial interest
  $ 172,931  
 
Additional paid-in capital
    1,628,502,822  
 
Accumulated net investment loss
    (20,651 )
 
Accumulated net realized loss on investments
    (531,192,544 )
Net unrealized appreciation on investments
    30,256,093  
 
     
 
 
Net Assets
  $ 1,127,718,651  
 
     
32 | OPPENHEIMER CORE BOND FUND

 


 

         
Net Asset Value Per Share
       
Class A Shares:
       
Net asset value and redemption price per share (based on net assets of $382,333,770 and 58,596,669 shares of beneficial interest outstanding)
  $ 6.52  
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price)
  $ 6.85  
 
Class B Shares:
       
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $27,748,981 and 4,254,173 shares of beneficial interest outstanding)
  $ 6.52  
 
Class C Shares:
       
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $99,862,702 and 15,290,099 shares of beneficial interest outstanding)
  $ 6.53  
 
Class N Shares:
       
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $38,210,517 and 5,858,497 shares of beneficial interest outstanding)
  $ 6.52  
 
Class Y Shares:
       
Net asset value, redemption price and offering price per share (based on net assets of $579,562,681 and 88,931,169 shares of beneficial interest outstanding)
  $ 6.52  
 
See accompanying Notes to Financial Statements.
33 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended June 30, 2011
         
Investment Income
       
Interest
  $ 24,523,609  
 
Fee income on when-issued securities
    6,812,679  
 
Dividends:
       
Unaffiliated companies
    31  
Affiliated companies
    157,730  
 
     
Total investment income
    31,494,049  
 
       
Expenses
       
Management fees
    2,719,374  
 
Distribution and service plan fees:
       
Class A
    497,924  
Class B
    142,499  
Class C
    513,741  
Class N
    97,506  
 
Transfer and shareholder servicing agent fees:
       
Class A
    512,125  
Class B
    88,696  
Class C
    143,263  
Class N
    66,681  
Class Y
    4,793  
 
Shareholder communications:
       
Class A
    61,782  
Class B
    12,909  
Class C
    15,369  
Class N
    3,043  
Class Y
    2,252  
 
Trustees’ compensation
    29,582  
 
Custodian fees and expenses
    8,119  
 
Administration service fees
    750  
 
Other
    199,090  
 
     
Total expenses
    5,119,498  
Less waivers and reimbursements of expenses
    (621,454 )
 
     
Net expenses
    4,498,044  
 
       
Net Investment Income
    26,996,005  
34 | OPPENHEIMER CORE BOND FUND

 


 

         
Realized and Unrealized Gain (Loss)
       
Net realized gain (loss) on:
       
Investments from unaffiliated companies
  $ 15,904,591  
Closing and expiration of futures contracts
    (2,478,557 )
Swap contracts
    114  
 
     
Net realized gain
    13,426,148  
 
Net change in unrealized appreciation/depreciation on:
       
Investments
    (1,327,513 )
Futures contracts
    (496,313 )
Swap contracts
    127,461  
 
     
Net change in unrealized appreciation/depreciation
    (1,696,365 )
 
       
Net Increase in Net Assets Resulting from Operations
  $ 38,725,788  
 
     
See accompanying Notes to Financial Statements.
35 | OPPENHEIMER CORE BOND FUND

 


 

STATEMENTS OF CHANGES IN NET ASSETS
                 
    Six Months     Year  
    Ended     Ended  
    June 30, 2011     December 31,  
    (Unaudited)     2010  
 
Operations
               
Net investment income
  $ 26,996,005     $ 55,858,213  
 
Net realized gain
    13,426,148       47,855,702  
 
Net change in unrealized appreciation/depreciation
    (1,696,365 )     13,234,578  
     
Net increase in net assets resulting from operations
    38,725,788       116,948,493  
 
               
Dividends and/or Distributions to Shareholders
               
Dividends from net investment income:
               
Class A
    (9,403,561 )     (20,731,274 )
Class B
    (559,337 )     (1,425,955 )
Class C
    (2,021,197 )     (4,570,624 )
Class N
    (862,657 )     (1,974,622 )
Class Y
    (14,147,691 )     (29,157,396 )
     
 
    (26,994,443 )     (57,859,871 )
 
               
Beneficial Interest Transactions
               
Net increase (decrease) in net assets resulting from beneficial interest transactions:
               
Class A
    (39,878,749 )     25,688,664  
Class B
    (3,195,782 )     (4,186,339 )
Class C
    (8,746,977 )     5,102,999  
Class N
    (3,092,048 )     (1,360,109 )
Class Y
    38,391,129       (30,304,762 )
     
 
    (16,522,427 )     (5,059,547 )
 
               
Net Assets
               
Total increase (decrease)
    (4,791,082 )     54,029,075  
 
Beginning of period
    1,132,509,733       1,078,480,658  
     
 
End of period (including accumulated net investment loss of $20,651 and $22,213, respectively)
  $ 1,127,718,651     $ 1,132,509,733  
     
See accompanying Notes to Financial Statements.
36 | OPPENHEIMER CORE BOND FUND

 


 

FINANCIAL HIGHLIGHTS
                                                 
    Six Months                        
    Ended                        
    June 30, 2011                     Year Ended December 31,  
Class A   (Unaudited)     2010     2009     2008     2007     2006  
 
Per Share Operating Data
                                               
Net asset value, beginning of period
  $ 6.46     $ 6.12     $ 6.12     $ 10.18     $ 10.23     $ 10.24  
 
Income (loss) from investment operations:
                                               
Net investment income1
    .15       .31       .41       .56       .50       .47  
Net realized and unrealized gain (loss)
    .06       .35       2     (4.06 )     (.05 )     .01  
     
Total from investment operations
    .21       .66       .41       (3.50 )     .45       .48  
 
Dividends and/or distributions to shareholders:
                                               
Dividends from net investment income
    (.15 )     (.32 )     (.17 )           (.39 )     (.49 )
Tax return of capital distribution
                (.24 )     (.56 )     (.11 )      
     
Total dividends and/or distributions to shareholders
    (.15 )     (.32 )     (.41 )     (.56 )     (.50 )     (.49 )
 
 
Net asset value, end of period
  $ 6.52     $ 6.46     $ 6.12     $ 6.12     $ 10.18     $ 10.23  
     
 
                                               
Total Return, at Net Asset Value3
    3.29 %     10.96 %     7.29 %     (35.83 )%     4.49 %     4.84 %
 
                                               
Ratios/Supplemental Data
                                               
Net assets, end of period (in thousands)
  $ 382,334     $ 418,034     $ 370,941     $ 465,375     $ 954,825     $ 670,012  
 
Average net assets (in thousands)
  $ 405,151     $ 417,031     $ 367,832     $ 786,186     $ 779,234     $ 566,159  
 
Ratios to average net assets:4
                                               
Net investment income
    4.68 %     4.79 %     7.11 %     6.20 %     4.89 %     4.66 %
Total expenses5
    1.06 %     1.12 %     1.17 %     0.92 %     0.88 %     0.96 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    0.90 %     0.88 %     0.82 %     0.90 %     0.87 %     0.90 %
 
Portfolio turnover rate6
    49 %     98 %     115 %     52 %     89 %     107 %
 
1.   Per share amounts calculated based on the average shares outstanding during the period.
 
2.   Less than $0.005 per share.
 
3.   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 redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
 
4.   Annualized for periods less than one full year.
 
5.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Six Months Ended June 30, 2011
    1.08 %
Year Ended December 31, 2010
    1.13 %
Year Ended December 31, 2009
    1.19 %
Year Ended December 31, 2008
    0.92 %
Year Ended December 31, 2007
    0.89 %
Year Ended December 31, 2006
    0.96 %
37 | OPPENHEIMER CORE BOND FUND

 


 

FINANCIAL HIGHLIGHTS Continued
 
6.   The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
                 
    Purchase Transactions     Sale Transactions  
 
Six Months Ended June 30, 2011
  $ 3,030,188,073     $ 3,019,685,851  
Year Ended December 31, 2010
  $ 4,655,979,130     $ 4,612,714,845  
Year Ended December 31, 2009
  $ 5,894,681,002     $ 6,157,656,958  
Year Ended December 31, 2008
  $ 5,977,684,487     $ 5,630,250,536  
Year Ended December 31, 2007
  $ 2,990,658,315     $ 2,928,450,309  
Year Ended December 31, 2006
  $ 2,924,444,249     $ 2,991,206,014  
See accompanying Notes to Financial Statements.
38 | OPPENHEIMER CORE BOND FUND

 


 

                                                 
    Six Months                        
    Ended                        
    June 30, 2011                     Year Ended December 31,  
Class B   (Unaudited)     2010     2009     2008     2007     2006  
 
Per Share Operating Data
                                               
Net asset value, beginning of period
  $ 6.46     $ 6.12     $ 6.12     $ 10.17     $ 10.23     $ 10.23  
 
Income (loss) from investment operations:
                                               
Net investment income1
    .13       .26       .37       .49       .42       .40  
Net realized and unrealized gain (loss)
    .06       .35       (.01 )     (4.04 )     (.06 )     .01  
     
Total from investment operations
    .19       .61       .36       (3.55 )     .36       .41  
 
Dividends and/or distributions to shareholders:
                                               
Dividends from net investment income
    (.13 )     (.27 )     (.15 )           (.31 )     (.41 )
Tax return of capital distribution
                (.21 )     (.50 )     (.11 )      
     
Total dividends and/or distributions to shareholders
    (.13 )     (.27 )     (.36 )     (.50 )     (.42 )     (.41 )
 
 
Net asset value, end of period
  $ 6.52     $ 6.46     $ 6.12     $ 6.12     $ 10.17     $ 10.23  
     
 
                                               
Total Return, at Net Asset Value2
    2.91 %     10.14 %     6.49 %     (36.24 )%     3.60 %     4.17 %
 
                                               
Ratios/Supplemental Data
                                               
Net assets, end of period (in thousands)
  $ 27,749     $ 30,636     $ 33,005     $ 42,617     $ 99,282     $ 116,230  
 
Average net assets (in thousands)
  $ 28,720     $ 33,579     $ 33,018     $ 76,116     $ 106,727     $ 118,240  
 
Ratios to average net assets:3
                                               
Net investment income
    3.93 %     4.09 %     6.35 %     5.43 %     4.13 %     3.92 %
Total expenses4
    2.24 %     2.32 %     2.43 %     1.87 %     1.79 %     1.86 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    1.65 %     1.63 %     1.57 %     1.65 %     1.64 %     1.65 %
 
Portfolio turnover rate5
    49 %     98 %     115 %     52 %     89 %     107 %
 
1.   Per share amounts calculated based on the average shares outstanding during the period.
 
2.   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 redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
 
3.   Annualized for periods less than one full year.
 
4.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Six Months Ended June 30, 2011
    2.26 %
Year Ended December 31, 2010
    2.33 %
Year Ended December 31, 2009
    2.45 %
Year Ended December 31, 2008
    1.87 %
Year Ended December 31, 2007
    1.80 %
Year Ended December 31, 2006
    1.86 %
39 | OPPENHEIMER CORE BOND FUND

 


 

FINANCIAL HIGHLIGHTS Continued
 
5.   The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
                 
    Purchase Transactions     Sale Transactions  
 
Six Months Ended June 30, 2011
  $ 3,030,188,073     $ 3,019,685,851  
Year Ended December 31, 2010
  $ 4,655,979,130     $ 4,612,714,845  
Year Ended December 31, 2009
  $ 5,894,681,002     $ 6,157,656,958  
Year Ended December 31, 2008
  $ 5,977,684,487     $ 5,630,250,536  
Year Ended December 31, 2007
  $ 2,990,658,315     $ 2,928,450,309  
Year Ended December 31, 2006
  $ 2,924,444,249     $ 2,991,206,014  
See accompanying Notes to Financial Statements.
40 | OPPENHEIMER CORE BOND FUND

 


 

                                                 
    Six Months                
    Ended                
    June 30, 2011             Year Ended December 31,  
Class C   (Unaudited)     2010     2009     2008     2007     2006  
 
Per Share Operating Data
                                               
Net asset value, beginning of period
  $ 6.46     $ 6.13     $ 6.13     $ 10.18     $ 10.24     $ 10.24  
 
Income (loss) from investment operations:
                                               
Net investment income1
    .13       .26       .37       .50       .42       .40  
Net realized and unrealized gain (loss)
    .07       .34       (.01 )     (4.05 )     (.06 )     .01  
     
Total from investment operations
    .20       .60       .36       (3.55 )     .36       .41  
 
Dividends and/or distributions to shareholders:
                                               
Dividends from net investment income
    (.13 )     (.27 )     (.15 )           (.31 )     (.41 )
Tax return of capital distribution
                (.21 )     (.50 )     (.11 )      
     
Total dividends and/or distributions to shareholders
    (.13 )     (.27 )     (.36 )     (.50 )     (.42 )     (.41 )
 
 
Net asset value, end of period
  $ 6.53     $ 6.46     $ 6.13     $ 6.13     $ 10.18     $ 10.24  
     
 
                                               
Total Return, at Net Asset Value2
    3.07 %     9.95 %     6.49 %     (36.20 )%     3.60 %     4.16 %
 
                                               
Ratios/Supplemental Data
                                               
Net assets, end of period (in thousands)
  $ 99,863     $ 107,517     $ 96,829     $ 108,673     $ 194,071     $ 149,440  
 
Average net assets (in thousands)
  $ 103,556     $ 108,324     $ 94,555     $ 169,737     $ 172,144     $ 126,593  
 
Ratios to average net assets:3
                                               
Net investment income
    3.94 %     4.04 %     6.31 %     5.49 %     4.12 %     3.92 %
Total expenses4
    1.83 %     1.89 %     1.97 %     1.68 %     1.66 %     1.76 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    1.65 %     1.63 %     1.56 %     1.65 %     1.64 %     1.65 %
 
Portfolio turnover rate5
    49 %     98 %     115 %     52 %     89 %     107 %
 
1.   Per share amounts calculated based on the average shares outstanding during the period.
 
2.   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 redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
 
3.   Annualized for periods less than one full year.
 
4.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Six Months Ended June 30, 2011
    1.85 %
Year Ended December 31, 2010
    1.90 %
Year Ended December 31, 2009
    1.99 %
Year Ended December 31, 2008
    1.68 %
Year Ended December 31, 2007
    1.67 %
Year Ended December 31, 2006
    1.76 %
41 | OPPENHEIMER CORE BOND FUND

 


 

FINANCIAL HIGHLIGHTS Continued
5.   The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
                 
    Purchase Transactions     Sale Transactions  
 
Six Months Ended June 30, 2011
  $ 3,030,188,073     $ 3,019,685,851  
Year Ended December 31, 2010
  $ 4,655,979,130     $ 4,612,714,845  
Year Ended December 31, 2009
  $ 5,894,681,002     $ 6,157,656,958  
Year Ended December 31, 2008
  $ 5,977,684,487     $ 5,630,250,536  
Year Ended December 31, 2007
  $ 2,990,658,315     $ 2,928,450,309  
Year Ended December 31, 2006
  $ 2,924,444,249     $ 2,991,206,014  
See accompanying Notes to Financial Statements.
42 | OPPENHEIMER CORE BOND FUND

 


 

                                                 
    Six Months                        
    Ended                        
    June 30, 2011                     Year Ended December 31,  
Class N   (Unaudited)     2010     2009     2008     2007     2006  
 
Per Share Operating Data
                                               
Net asset value, beginning of period
  $ 6.45     $ 6.12     $ 6.12     $ 10.17     $ 10.23     $ 10.23  
 
Income (loss) from investment operations:
                                               
Net investment income1
    .14       .29       .40       .54       .47       .45  
Net realized and unrealized gain (loss)
    .07       .34       (.01 )     (4.05 )     (.06 )     .01  
     
Total from investment operations
    .21       .63       .39       (3.51 )     .41       .46  
 
Dividends and/or distributions to shareholders:
                                               
Dividends from net investment income
    (.14 )     (.30 )     (.16 )           (.36 )     (.46 )
Tax return of capital distribution
                (.23 )     (.54 )     (.11 )      
     
Total dividends and/or distributions to shareholders
    (.14 )     (.30 )     (.39 )     (.54 )     (.47 )     (.46 )
 
 
Net asset value, end of period
  $ 6.52     $ 6.45     $ 6.12     $ 6.12     $ 10.17     $ 10.23  
     
 
                                               
Total Return, at Net Asset Value2
    3.32 %     10.51 %     7.02 %     (35.92 )%     4.11 %     4.68 %
 
                                               
Ratios/Supplemental Data
                                               
Net assets, end of period (in thousands)
  $ 38,210     $ 40,884     $ 40,051     $ 54,092     $ 84,017     $ 58,232  
 
Average net assets (in thousands)
  $ 39,310     $ 41,730     $ 42,761     $ 83,422     $ 70,555     $ 46,672  
 
Ratios to average net assets:3
                                               
Net investment income
    4.43 %     4.56 %     6.88 %     6.01 %     4.62 %     4.42 %
Total expenses4
    1.38 %     1.47 %     1.56 %     1.28 %     1.26 %     1.35 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    1.15 %     1.13 %     1.07 %     1.15 %     1.14 %     1.15 %
 
Portfolio turnover rate5
    49 %     98 %     115 %     52 %     89 %     107 %
 
1.   Per share amounts calculated based on the average shares outstanding during the period.
 
2.   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 redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
 
3.   Annualized for periods less than one full year.
 
4.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Six Months Ended June 30, 2011
    1.40 %
Year Ended December 31, 2010
    1.48 %
Year Ended December 31, 2009
    1.58 %
Year Ended December 31, 2008
    1.28 %
Year Ended December 31, 2007
    1.27 %
Year Ended December 31, 2006
    1.35 %
43 | OPPENHEIMER CORE BOND FUND

 


 

FINANCIAL HIGHLIGHTS Continued
5.   The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
                 
    Purchase Transactions     Sale Transactions  
 
Six Months Ended June 30, 2011
  $ 3,030,188,073     $ 3,019,685,851  
Year Ended December 31, 2010
  $ 4,655,979,130     $ 4,612,714,845  
Year Ended December 31, 2009
  $ 5,894,681,002     $ 6,157,656,958  
Year Ended December 31, 2008
  $ 5,977,684,487     $ 5,630,250,536  
Year Ended December 31, 2007
  $ 2,990,658,315     $ 2,928,450,309  
Year Ended December 31, 2006
  $ 2,924,444,249     $ 2,991,206,014  
See accompanying Notes to Financial Statements.
44 | OPPENHEIMER CORE BOND FUND

 


 

                                                 
    Six Months                        
    Ended                        
    June 30, 2011                     Year Ended December 31,  
Class Y   (Unaudited)     2010     2009     2008     2007     2006  
 
Per Share Operating Data
                                               
Net asset value, beginning of period
  $ 6.45     $ 6.11     $ 6.12     $ 10.16     $ 10.22     $ 10.22  
 
Income (loss) from investment operations:
                                               
Net investment income1
    .16       .33       .43       .60       .53       .51  
Net realized and unrealized gain (loss)
    .07       .35       (.02 )     (4.04 )     (.05 )     .01  
     
Total from investment operations
    .23       .68       .41       (3.44 )     .48       .52  
 
Dividends and/or distributions to shareholders:
                                               
Dividends from net investment income
    (.16 )     (.34 )     (.17 )           (.43 )     (.52 )
Tax return of capital distribution
                (.25 )     (.60 )     (.11 )      
     
Total dividends and/or distributions to shareholders
    (.16 )     (.34 )     (.42 )     (.60 )     (.54 )     (.52 )
 
 
Net asset value, end of period
  $ 6.52     $ 6.45     $ 6.11     $ 6.12     $ 10.16     $ 10.22  
     
 
                                               
Total Return, at Net Asset Value2
    3.65 %     11.38 %     7.44 %     (35.45 )%     4.80 %     5.29 %
 
                                               
Ratios/Supplemental Data
                                               
Net assets, end of period (in thousands)
  $ 579,563     $ 535,439     $ 537,655     $ 803,777     $ 824,678     $ 435,311  
 
Average net assets (in thousands)
  $ 561,454     $ 540,778     $ 598,909     $ 1,006,642     $ 617,403     $ 309,558  
 
Ratios to average net assets:3
                                               
Net investment income
    5.08 %     5.22 %     7.51 %     6.78 %     5.28 %     5.03 %
Total expenses4
    0.53 %     0.57 %     0.62 %     0.51 %     0.48 %     0.55 %
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses
    0.50 %     0.50 %     0.51 %     0.51 %     0.47 %     0.55 %
 
Portfolio turnover rate5
    49 %     98 %     115 %     52 %     89 %     107 %
 
1.   Per share amounts calculated based on the average shares outstanding during the period.
 
2.   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 redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
 
3.   Annualized for periods less than one full year.
 
4.   Total expenses including indirect expenses from affiliated fund were as follows:
         
Six Months Ended June 30, 2011
    0.55 %
Year Ended December 31, 2010
    0.58 %
Year Ended December 31, 2009
    0.64 %
Year Ended December 31, 2008
    0.51 %
Year Ended December 31, 2007
    0.49 %
Year Ended December 31, 2006
    0.55 %
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FINANCIAL HIGHLIGHTS Continued
5.   The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
                 
    Purchase Transactions     Sale Transactions  
Six Months Ended June 30, 2011
  $ 3,030,188,073     $ 3,019,685,851  
Year Ended December 31, 2010
  $ 4,655,979,130     $ 4,612,714,845  
Year Ended December 31, 2009
  $ 5,894,681,002     $ 6,157,656,958  
Year Ended December 31, 2008
  $ 5,977,684,487     $ 5,630,250,536  
Year Ended December 31, 2007
  $ 2,990,658,315     $ 2,928,450,309  
Year Ended December 31, 2006
  $ 2,924,444,249     $ 2,991,206,014  
See accompanying Notes to Financial Statements.
46 | OPPENHEIMER CORE BOND FUND

 


 

NOTES TO FINANCIAL STATEMENTS Unaudited
1. Significant Accounting Policies
Oppenheimer Core Bond Fund (the “Fund”), is a separate fund of Oppenheimer Integrity Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek total return by investing mainly in debt instruments. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”). As of June 30, 2011, approximately 51% of the shares of the Fund were owned by the Manager, other funds advised or sub-advised by the Manager or an affiliate of the Manager.
     The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (“CDSC”). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. 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, C and N shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
     The following is a summary of significant accounting policies consistently followed by the Fund.
Securities Valuation. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.
     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,” observable market inputs other than unadjusted quoted prices 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.
     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,
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
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.
     Swap contracts are valued utilizing price quotations obtained from broker-dealer counterparties or independent pricing services. Values are determined based on relevant market information on the underlying reference assets which may include credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures and forward currency rates.
     “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 current price quotation obtained from an independent pricing service or broker-dealer, 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
48 | OPPENHEIMER CORE BOND FUND

 


 

such as 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 may purchase 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 of 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.
As of June 30, 2011, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
         
    When-Issued or Delayed Delivery  
    Basis Transactions  
 
Purchased securities
  $ 674,006,479  
Sold securities
    246,483,814  
The Fund may enter into “forward roll” transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price.
     Forward roll transactions may be deemed to entail embedded leverage since the Fund purchases mortgage-related securities with extended settlement dates rather than paying for the securities under a normal settlement cycle. This embedded leverage increases the Fund’s market value of investments relative to its net assets which can incrementally increase the volatility of the Fund’s performance. Forward roll transactions can be replicated over multiple settlement periods.
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
     Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; and counterparty credit risk.
Credit Risk. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities that have missed an interest payment, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently miss an interest payment. Information concerning securities not accruing interest as of June 30, 2011 is as follows:
         
Cost
  $ 2,069,145  
Market Value
  $ 148,806  
Market Value as a % of Net Assets
    0.01 %
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.
During the fiscal year ended December 31, 2010, the Fund utilized $49,115,672 of capital loss carryforward to offset capital gains realized in that fiscal year. As of
50 | OPPENHEIMER CORE BOND FUND

 


 

December 31, 2010, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows:
         
Expiring        
 
2016
  $ 79,226,443  
2017
    466,197,242  
 
     
Total
  $ 545,423,685  
 
     
As of June 30, 2011, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $531,997,537 expiring by 2017. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2011, it is estimated that the Fund will utilize $13,426,148 of capital loss carryforward to offset realized capital gains.
     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.
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 30, 2011 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
  $ 1,517,120,722  
Federal tax cost of other investments
    (98,008,117 )
 
     
Total federal tax cost
  $ 1,419,112,605  
 
     
 
       
Gross unrealized appreciation
  $ 43,938,886  
Gross unrealized depreciation
    (14,007,733 )
 
     
Net unrealized appreciation
  $ 29,931,153  
 
     
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22, 2010. The Act makes changes to a number of tax rules impacting the Fund. Although the Act provides a number of benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of a fund’s prior year capital loss carryovers will expire unused. In general, the provisions of the Act will be effective for the Fund’s fiscal year ending 2012. Specific information regarding the impact of the Act on the Fund will be contained within the “Federal Taxes” section of the financial statement notes for the fiscal year ending 2012.
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
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. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.
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.
Custodian Fees. “Custodian fees and expenses” in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
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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
The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
                                 
    Six Months Ended June 30, 2011     Year Ended December 31, 2010  
    Shares     Amount     Shares     Amount  
 
Class A
                               
Sold
    8,128,903     $ 53,028,503       25,109,912     $ 159,625,201  
Dividends and/or distributions reinvested
    1,260,781       8,235,456       2,732,815       17,454,256  
Redeemed
    (15,535,521 )     (101,142,708 )     (23,690,768 )     (151,390,793 )
     
Net increase (decrease)
    (6,145,837 )   $ (39,878,749 )     4,151,959     $ 25,688,664  
     
 
                               
Class B
                               
Sold
    508,590     $ 3,317,208       1,772,233     $ 11,220,090  
Dividends and/or distributions reinvested
    79,543       519,270       204,793       1,306,444  
Redeemed
    (1,079,961 )     (7,032,260 )     (2,623,896 )     (16,712,873 )
     
Net decrease
    (491,828 )   $ (3,195,782 )     (646,870 )   $ (4,186,339 )
     
 
                               
Class C
                               
Sold
    2,159,284     $ 14,075,449       5,873,538     $ 37,314,577  
Dividends and/or distributions reinvested
    270,154       1,765,436       608,082       3,886,117  
Redeemed
    (3,773,644 )     (24,587,862 )     (5,648,259 )     (36,097,695 )
     
Net increase (decrease)
    (1,344,206 )   $ (8,746,977 )     833,361     $ 5,102,999  
     
 
                               
Class N
                               
Sold
    567,262     $ 3,696,496       2,238,381     $ 14,207,034  
Dividends and/or distributions reinvested
    102,535       669,086       235,462       1,502,136  
Redeemed
    (1,145,400 )     (7,457,630 )     (2,684,764 )     (17,069,279 )
     
Net decrease
    (475,603 )   $ (3,092,048 )     (210,921 )   $ (1,360,109 )
     
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. Shares of Beneficial Interest Continued
                                 
    Six Months Ended June 30, 2011     Year Ended December 31, 2010  
    Shares     Amount     Shares     Amount  
 
Class Y
                               
Sold
    10,722,325     $ 69,655,427       15,991,791     $ 101,924,863  
Dividends and/or distributions reinvested
    2,163,045       14,112,983       4,571,534       29,113,984  
Redeemed
    (6,978,664 )     (45,377,281 )     (25,470,878 )     (161,343,609 )
     
Net increase (decrease)
    5,906,706     $ 38,391,129       (4,907,553 )   $ (30,304,762 )
     
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 30, 2011, were as follows:
                 
    Purchases     Sales  
 
Investment securities
  $ 403,746,894     $ 462,969,270  
U.S. government and government agency obligations
    7,818,665       8,187,482  
To Be Announced (TBA) mortgage-related securities
    3,030,188,073       3,019,685,851  
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 $1 billion
    0.50 %
Over $1 billion
    0.35  
Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.
Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended June 30, 2011, the Fund paid $802,760 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.
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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.
Distribution and Service Plans for Class B, Class C and Class N Shares. The Fund has adopted Distribution and Service Plans (the “Plans”) for Class B, Class C and Class N 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 and 0.25% on Class N shares daily net assets. The Distributor also receives a service fee of 0.25% per year under each plan. If either the Class B, Class C or Class N plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. 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, 2011 were as follows:
         
Class B
  $ 1,532,282  
Class C
    3,741,866  
Class N
    1,711,621  
Sales Charges. Front-end sales charges and contingent deferred sales charges (“CDSC”) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
                                         
            Class A     Class B     Class C     Class N  
    Class A     Contingent     Contingent     Contingent     Contingent  
    Front-End     Deferred     Deferred     Deferred     Deferred  
    Sales Charges     Sales Charges     Sales Charges     Sales Charges     Sales Charges  
    Retained by     Retained by     Retained by     Retained by     Retained by  
Six Months Ended   Distributor     Distributor     Distributor     Distributor     Distributor  
 
June 30, 2011
  $ 80,920     $     $ 29,370     $ 9,763     $ 502  
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
4. Fees and Other Transactions with Affiliates Continued
Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the “total annual operating expenses” for all share classes so that “Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses” as a percentage of average annual net assets, will not exceed the following annual rates: 0.90% for Class A shares; 1.65% for Class B and Class C shares; 1.15% for Class N shares and 0.65% for Class Y shares. During the six months ended June 30, 2011, the Manager waived fees and/or reimbursed the Fund $256,313, $40,025, $79,050 and $38,977 for Class A, Class B, Class C and Class N, respectively.
     OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class.
During the six months ended June 30, 2011, OFS waived transfer and shareholder servicing agent fees as follows:
         
Class B
  $ 39,432  
Class N
    357  
The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF. During the six months ended June 30, 2011, the Manager waived fees and/or reimbursed the Fund $85,403 for IMMF management fees.
     The Manager has voluntarily agreed to reimburse the Fund for a portion of the legal costs and fees incurred in connection with the pending litigation matters discussed in the “Pending Litigation” note which appears later in this report. During the six months ended June 30, 2011, the Manager reimbursed the Fund $81,897 for legal costs and fees.
     Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus.
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.
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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 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.
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
     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 creditworthy at the time of the transaction. As of June 30, 2011, the maximum amount of loss that the Fund would incur if the counterparties to its derivative transactions failed to perform would be $24,318, which represents gross payments to be received by the Fund on these derivative contracts were they to be unwound as of period end. To reduce this risk the Fund has entered into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. 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. The amount of loss that the Fund would incur taking into account these master netting arrangements would be $24,318 as of June 30, 2011. In addition, the Fund may require that certain counterparties post cash and/or securities in collateral accounts to cover their net payment obligations for those derivative contracts subject to International Swap and Derivatives Association, Inc. master agreements. If the counterparty fails to perform under these contracts and agreements, the cash and/or securities will be made available to the Fund.
     As of June 30, 2011 the Fund has not required certain counterparties to post collateral.
Credit Related Contingent Features. The Fund’s agreements with derivative counterparties have 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 International Swap and Derivatives Association, Inc. master agreements which govern certain positions
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in swaps, over-the-counter options and swaptions, and forward currency exchange contracts for each individual counterparty.
Valuations of derivative instruments as of June 30, 2011 are as follows:
                                 
    Asset Derivatives     Liability Derivatives  
Derivatives Not Accounted   Statement of Assets and             Statement of Assets and        
for as Hedging Instruments   Liabilities Location     Value     Liabilities Location     Value  
 
Credit contracts
  Appreciated swaps, at value   $ 24,318                  
Interest rate contracts
  Futures margins     415,743 *   Futures margins   $ 501,766 *
 
                           
Total
          $ 440,061             $ 501,766  
 
                           
 
*   Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.
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   Closing and expiration              
for as Hedging Instruments   of futures contracts     Swap contracts     Total  
 
Credit contracts
  $     $ 114     $ 114  
Interest rate contracts
    (2,478,557 )           (2,478,557 )
     
Total
  $ (2,478,557 )   $ 114     $ (2,478,443 )
     
Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
                         
Derivatives Not Accounted                  
for as Hedging Instruments   Futures contracts     Swap contracts     Total  
 
Credit contracts
  $     $ 127,461     $ 127,461  
Interest rate contracts
    (496,313 )           (496,313 )
     
Total
  $ (496,313 )   $ 127,461     $ (368,852 )
     
Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts.
     Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund’s assets are valued.
     Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses.
     Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.
     The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.
     The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.
     During the six months ended June 30, 2011 the Fund had an ending monthly average market value of $92,476,540 and $240,070,448 on futures contracts purchased and sold, respectively.
     Additional associated risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities.
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 sold credit protection through credit default swaps to increase exposure to the credit risk of individual securities and/or, indexes that are either unavailable or considered to be less attractive in the bond market.
     For the six months ended June 30, 2011, the Fund had ending monthly average notional amounts of $17,000,000 on credit default swaps to sell protection.
     Additional associated risks to the Fund include counterparty credit risk and liquidity risk.
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NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Restricted Securities
As of June 30, 2011, 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. Pending Litigation
Since 2009, a number of lawsuits have been filed in federal and state courts against the Manager, the Distributor and certain Oppenheimer mutual funds — including the Fund — advised by the Manager and distributed by the Distributor (the “Defendant Funds”). Several of these lawsuits also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raise claims under federal and state securities laws and state common law and allege, among other things, that the disclosure documents of the respective Defendant Fund contained misrepresentations and omissions and that the respective Defendant Fund’s investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief and an award of attorneys’ fees and litigation expenses. On June 1, 2011, the U.S. District Court for the District of Colorado gave preliminary approval to stipulations and agreements of settlement in certain purported class action lawsuits involving the Fund and Oppenheimer Champion Income Fund. Those settlements are subject to the final approval of the court. Final approval of the settlements also requires that a sufficient number of class members approve the settlement to induce the settling defendants to proceed with it. These settlements do not resolve any of the other outstanding lawsuits relating to the Fund or other Defendant Funds.
     In 2009, what are claimed to be derivative lawsuits were filed in New Mexico 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.
     Other lawsuits have been filed since 2008 in various state and federal courts against the Manager and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the “Ponzi” scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (“BLMIS”). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of the Manager and assert 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 awards 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 mutual funds invested in
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any funds or accounts managed by Mr. Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of certain purported class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 8, 2011, the court issued a ruling approving the settlement as fair, reasonable and adequate. The court’s approval of the settlement is subject to potential appeal by claimants. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. This settlement is subject to the final approval of the court. The aforementioned settlements do not resolve any of the other outstanding lawsuits relating to these matters.
     On April 16, 2010, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark IV Funding Limited (“AAArdvark IV”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege breach of contract against the defendants and seek compensatory damages, costs and disbursements, including attorney fees. On July 15, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark I Funding Limited (“AAArdvark I”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees.
     The Manager believes the lawsuits described above are without legal merit and, with the exception of actions it has agreed to settle, is defending against them vigorously. The Defendant Funds’ Boards of Trustees have also engaged counsel to represent the 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 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 mutual funds.
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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 (“portfolio proxies”) relating to securities 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 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 Fund’s 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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OPPENHEIMER CORE BOND FUND
A Series of Oppenheimer Integrity Funds
     
Trustees and Officers
  William L. Armstrong, Chairman of the Board of Trustees and Trustee
 
  George C. Bowen, Trustee
 
  Edward L. Cameron, Trustee
 
  Jon S. Fossel, Trustee
 
  Sam Freedman, Trustee
 
  Richard F. Grabish, Trustee
 
  Beverly L. Hamilton, Trustee
 
  Robert J. Malone, Trustee
 
  F. William Marshall, Jr., Trustee
 
  William F. Glavin, Jr., Trustee, President and Principal Executive Officer
 
  Krishna Memani, Vice President and Portfolio Manager
 
  Peter A. Strzalkowski, Vice President and Portfolio Manager
 
  Arthur S. Gabinet, Secretary
 
  Christina M. Nasta, Vice President and Chief Business Officer
 
  Mark S. Vandehey, Vice President and Chief Compliance Officer
 
  Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
 
  Robert G. Zack, Vice President
 
   
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
 
  The financial statements included herein have been taken from the records of
 
  the Fund without examination of those records by the independent registered
 
  public accounting firm.
©2011 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 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.
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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 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 oppenheimerfunds.com or call us at 1.800.525.7048.
67 | OPPENHEIMER CORE BOND FUND

 


 

Item 2. Code of Ethics.
Not applicable to semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable to semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable to semiannual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
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 06/30/2011, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.
There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)   (1) Not applicable to semiannual reports.
 
    (2) Exhibits attached hereto.
 
    (3) Not applicable.
 
(b)   Exhibit attached hereto.

 


 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Integrity Funds
         
By:
  /s/ William F. Glavin, Jr.
 
   
 
  William F. Glavin, Jr.    
 
  Principal Executive Officer    
 
       
Date: 08/10/2011    
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: 08/10/2011    
 
       
By:
  /s/ Brian W. Wixted
 
   
 
  Brian W. Wixted    
 
  Principal Financial Officer    
 
       
Date: 08/10/2011    

 

EX-99.CERT 2 g59416exv99wcert.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 Integrity Funds;
 
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: 08/10/2011
     
/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 Integrity Funds;
 
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: 08/10/2011
     
/s/ Brian W. Wixted
 
   
Brian W. Wixted
   
Principal Financial Officer
   

 

EX-99.906CERT 3 g59416exv99w906cert.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 Integrity Funds (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 06/30/2011 (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 Integrity Funds
  Oppenheimer Integrity Funds    
 
       
/s/ William F. Glavin, Jr.
 
  /s/ Brian W. Wixted
 
   
William F. Glavin, Jr.
  Brian W. Wixted    
 
       
Date: 08/10/2011
  Date: 08/10/2011    

 

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