As Filed with the Securities and Exchange

                        Commission on February 28, 2003




                                                     Registration No. 811-5473


                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
                                   FORM N-2

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
  ACT OF 1940                                                              /X/



      Amendment No. 18                                                     /X/



                     OPPENHEIMER MULTI-SECTOR INCOME TRUST

              (Exact Name of Registrant as Specified in Charter)

                              498 Seventh Avenue
                          New York, New York 10018

                   (Address of Principal Executive Offices)

                                 212-323-0250
- -
                        (Registrant's Telephone Number)

                             ROBERT G. ZACK, ESQ.
                            OppenheimerFunds, Inc.
                              498 Seventh Avenue
                           New York, New York 10018

                    (Name and Address of Agent for Service)







                                   FORM N-2

                     OPPENHEIMER MULTI-SECTOR INCOME TRUST

                             Cross Reference Sheet

Part A of
Form N-2
Item No.    Prospectus Heading

1    *
2    *
3    *
4    *
5    *
6    *
7    *
8    General Description of the Registrant
9    Management
10   Capital Stock, Long-Term Debt, and Other Securities
11   *
12   *
13   See Item 15 of the Statement of Additional Information


Part B of
Form N-2
Item No. Heading In Statement of Additional Information

14   Cover Page
15   Table of Contents
16   *
17   See Item 8 of the Prospectus
18   Management
19   Control Persons and Principal Holders of Securities
20   See Item 9 of the Prospectus
21   Brokerage Allocation and Other Practices
22   See Item 10 of the Prospectus
23   Financial Statements




* Not applicable or negative answer.






                                     C-8
                                     C-1
                     OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                    PART A

                     INFORMATION REQUIRED IN A PROSPECTUS


Item 1.     Outside Front Cover.

            Inapplicable.

Item 2.     Inside Front and Outside Back Cover Page.

            Inapplicable.

Item 3.     Fee Table and Synopsis

            Inapplicable.

Item 4.     Financial Highlights.

            Inapplicable.

Item 5.     Plan of Distribution.

            Inapplicable.

Item 6.     Selling Shareholders.

            Inapplicable.

Item 7.     Use of Proceeds.

            Inapplicable.

Item 8.     General Description of the Registrant.

      1.  Oppenheimer Multi-Sector Income Trust (the "Fund" or "Registrant")
is a closed-end diversified management investment company organized as a
Massachusetts business trust on February 22, 1988.


      2., 3., and 4.  The Fund's primary investment objective is high current
income consistent with preservation of capital.  Its secondary objective is
capital appreciation.  In seeking those objectives, under normal market
conditions, the Fund will allocate its assets among seven sectors of the
fixed-income securities market to take advantage of opportunities anticipated
by OppenheimerFunds, Inc., the Fund's investment advisor (the "Manager"),
which arise in particular sectors in various economic environments.  The
Manager's opinion as to such opportunities will be based on various factors
which may affect the levels of income which can be obtained from the
different sectors, such as (i) the effect of interest rate changes, on a
relative and absolute basis, on yields of securities in the particular
sectors, (ii) the effect of changes in tax laws and other legislation
affecting securities in the various sectors, (iii) changes in the relative
values of foreign currencies, and (iv) perceived strengths of the abilities
of issuers in the various sectors to repay their obligations.

      The sectors in which the Fund invests are not divided by industry but
instead differ by type of security and issuer and includes U.S. Government,
Corporate, International, Asset-Backed (including Mortgage-Backed),
Municipal, Convertible and Money Market sectors.  The Manager believes that
investing the Fund's assets in a portfolio comprised of three or more
sectors, as opposed to limiting investments to only one such sector, will
enhance the Fund's ability to achieve high current income consistent with
preservation of capital or seek capital appreciation.  The range of yields of
the securities in each sector will differ from securities in the others both
on an absolute and a relative basis.  It is not the intention of the Fund to
always allocate its assets to the sector with the highest range of yields as
this may not be consistent with preservation of capital.  The Manager will,
however, monitor changes in relative yields of securities in the various
sectors to help formulate its decisions on which sectors present attractive
investment opportunities at a particular time.


      Historically, the markets for the sectors identified below have tended
to behave somewhat independently and have at times moved in opposite
directions.  For example, U.S. government securities (defined below) have
generally been affected negatively by concerns about inflation that might
result from increased economic activity.  Corporate debt securities and
convertible securities, on the other hand, have generally benefited from
increased economic activity due to the resulting improvement in the credit
quality of corporate issuers which, in turn, has tended to cause a rise in
the prices of common stock underlying convertible securities.  The converse
has generally been true during periods of economic decline.  Similarly, U.S.
government securities can be negatively affected by a decline in the value of
the dollar against foreign currencies, while the non-dollar denominated
securities of foreign issuers held by U.S. investors have generally benefited
from such decline.  Investments in short-term money market securities tend to
decline less in value than long-term debt securities in periods of rising
interest rates but do not rise as much in periods of declining rates.  At
times the difference between yields on municipal securities and taxable
securities does not fully reflect the tax advantage of municipal securities.
At such times investments in municipal securities tend to fare better in
value than taxable investments because the yield differential generally can
be expected to increase again to reflect the tax advantage.


      The Manager believes that when financial markets exhibit this lack of
correlation, an active allocation of investments among these seven sectors
can permit greater preservation of capital over the long term than would be
obtained by investing permanently in any one sector.  To the extent that
active allocation of investments among market sectors by the Manager is
successful in preserving or increasing capital, the Fund's capacity to meet
its primary objective of high current income should be enhanced over the
longer term.  The Manager also will utilize certain other investment
techniques, including options and futures, intended to enhance income and
reduce market risk.

      The Fund can invest in securities in the Corporate, International,
Asset-Backed and Convertible Sectors which are in the lowest rating category
of each of Standard & Poor's Rating Service ("Standard & Poor's") or Moody's
Investors Service, Inc. ("Moody's"), or Fitch, Inc. ("Fitch") or another
nationally recognized rating organization, or which are unrated.  The
description and characteristics of the lowest rating category are discussed
in the description of the Corporate Sector.  In all other sectors, the Fund
will not invest in securities rated lower than those considered investment
grade, i.e. "Baa" by Moody's or "BBB" by Standard & Poor's, or Fitch.  See
"Investment Sectors in Which the Fund Invests" and Appendix A (Securities
Ratings) to the Statement of Additional Information.  Unrated securities will
be of comparable quality to those that are rated, in the opinion of the
Manager.  The seven sectors of the fixed-income securities market in which
the Fund can invest are:


- -     The U.S. Government Sector, consisting of debt obligations of the U.S.
      government and its agencies and instrumentalities ("U.S. government
      securities");

- -     The Corporate Sector, consisting of non-convertible debt obligations or
      preferred stock of U.S. corporate issuers and participation interests
      in senior, fully-secured loans made primarily to U.S. companies;

- -     The International Sector, consisting of debt obligations (which may be
      denominated in foreign currencies) of foreign governments and their
      agencies and instrumentalities, certain supranational entities and
      foreign and U.S. companies;

- -     The Asset-Backed Sector, consisting of undivided fractional interests
      in pools of consumer loans and participation interests in pools of
      residential mortgage loans;

- -     The Municipal Sector, consisting of debt obligations of states,
      territories or possessions of the United States and the District of
      Columbia or their political subdivisions, agencies, instrumentalities
      or authorities;

- -     The Convertible Sector, consisting of debt obligations and preferred
      stock of U.S. corporations which are convertible into common stock; and

- -     The Money Market Sector, consisting of U.S. dollar-denominated debt
      obligations having a maturity of 397 days or less and issued by the
      U.S. government or its agencies, certain domestic banks or
      corporations; or certain foreign governments, agencies or banks; and
      repurchase agreements.


      Current income, preservation of capital and, secondarily, possible
capital appreciation will be considerations in the allocation of assets among
the seven investment sectors described above. The Manager anticipates that at
all times Fund assets will be spread among three or more sectors.  Securities
in the first six sectors above have maturities in excess of 397 days.  All
securities denominated in foreign currencies will be considered as part of
the International Sector, regardless of maturity.  The Fund can also invest
in options and futures related to securities in each of the sectors.



INVESTMENT SECTORS IN WHICH THE FUND INVESTS


      The Fund's assets allocated to each of the sectors will be managed in
accordance with the investment policies described above.  The Fund's
portfolio might not always include all of the different types of investments
described below.  The allocation among the different types of investments the
Fund is permitted to invest in will vary over time based on the Manager's
evaluation of economic and market conditions.


The U.S. Government Sector


      Assets in this sector will be invested in U.S. government securities,
which are obligations issued by or guaranteed by the United States government
or its agencies or instrumentalities.  Certain of these obligations,
including U.S. Treasury notes and bonds, and Federal Housing Administration
debentures, are supported by the full faith and credit of the United States.
Certain other U.S. government securities, issued or guaranteed by federal
agencies or government-sponsored enterprises, are not supported by the full
faith and credit of the United States.  These latter securities include
obligations supported by the right of the issuer to borrow from the U.S.
Treasury, such as obligations of Federal Home Loan Banks, and obligations
supported by the credit of the instrumentality, such as Federal National
Mortgage Association bonds.  The Manager will adjust the average maturity of
the investments held in this sector from time to time, depending on its
assessment of relative yields of securities of different maturities and its
expectations of future changes in interest rates.  U.S. government securities
are considered among the most creditworthy of fixed-income investments.
Because of this, the yields available from U.S. government securities are
generally lower than the yields available from corporate debt securities.
Nevertheless, the values of U.S. government securities (like those of
fixed-income securities generally) will change as interest rates fluctuate.


      Zero Coupon Treasury Securities.  The Fund can invest in "zero coupon"
Treasury securities which are (a) U.S. Treasury notes and bonds which have
been stripped of their unmatured interest coupons and receipts or (b)
certificates representing interests in such stripped debt obligations and
coupons.  A zero coupon security pays no interest to its holder during its
life.  Accordingly, such securities usually trade at a deep discount from
their face or par value and will be subject to greater fluctuations of market
value in response to changing interest rates than debt obligations of
comparable maturities which make current distribution of interest.  Current
federal tax law requires that a holder of a zero coupon security accrue a
portion of the discount at which the security was purchased as income each
year even though the holder receives no interest payment in cash on the
security during the year.  The Fund will not invest more than 10% of its
total assets at the time of purchase in zero coupon Treasury securities.

The Corporate Sector

      Assets allocated to this sector will be invested in secured or
unsecured non-convertible preferred stock and corporate debt obligations,
such as bonds, debentures and notes.  The Fund can also acquire participation
interests, as described below.



      Ratings.  Certain corporate fixed-income securities in which the Fund
can invest may be unrated or in the lower rating categories of recognized
rating agencies, i.e., ratings below "Baa" by Moody's or below "BBB" by
Standard & Poor's.  Lower-rated securities, commonly called junk bonds, will
involve greater volatility of price and risk of principal and income
(including a greater possibility of default or bankruptcy of the issuer of
such securities) than securities in the higher rating categories.  The Fund's
investments in lower-rated securities can not exceed 75% of the Fund's total
assets, with no more than 50% of the Fund's total assets in lower-rated
foreign securities (see "The International Sector," below).


      The Fund's ability to increase its investments in high-yield securities
will enable it to seek higher investment return.  However, high-yield
securities, whether rated or unrated, could be subject to greater market
fluctuations and risks of loss of income and principal and could have less
liquidity than lower yielding, higher-rated fixed-income securities.
Principal risks of high-yield securities include (i) limited liquidity and
secondary market support, (ii) substantial market price volatility resulting
from changes in prevailing interest rates, (iii) subordination of the
holder's claims to the prior claims of banks and other senior lenders in
bankruptcy proceedings, (iv) the operation of mandatory sinking fund or
call/redemption provisions during periods of declining interest rates,
whereby the holder might receive redemption proceeds at times when only
lower-yielding portfolio securities are available for investment, (v) the
possibility that earnings of the issuer can be insufficient to meet its debt
service, and (vi) the issuer's low creditworthiness and potential for
insolvency during periods of rising interest rates and economic downturn.

The International Sector


      The assets allocated to this sector will be invested in debt
obligations (which may either be denominated in U.S. dollars or in non-U.S.
currencies), issued or guaranteed by foreign corporations, certain
supranational entities (described below), and foreign governments or their
agencies or instrumentalities, and in debt obligations issued by U.S.
corporations denominated in non-U.S. currencies.  All such securities are
referred to as "foreign securities."  The Fund's investments in foreign
lower-rated securities can not exceed 50% of the Fund's total assets.  The
Fund can invest in any country where the Manager believes there is a
potential to achieve the Fund's investment objectives.  The Fund may not
invest more than 15% of its total assets in foreign securities of any one
country.


      The percentage of the Fund's assets that will be allocated to this
sector will vary on the relative yields of foreign and U.S. securities, the
economies of foreign countries, the condition of such countries' financial
markets, the interest rate climate of such countries and the relationship of
such countries' currencies to the U.S. dollar.  These factors are judged on
the basis of fundamental economic criteria (e.g., relative inflation levels
and trends, growth rate forecasts, balance of payments status, and economic
policies) as well as technical and political data.  The Fund's portfolio of
foreign securities can include those of a number of foreign countries or,
depending upon market conditions, those of a single country.

      The obligations of foreign governmental entities, including
supranational entities, have various kinds of government support, and may or
may not be supported by the full faith and credit of a foreign government.
Supranational entities include international organizations designated or
supported by governmental entities to promote economic reconstruction or
development and international banking institutions and related government
agencies.  Examples include the International Bank for Reconstruction and
Development (the World Bank), the European Coal and Steel Community, the
Asian Development Bank and the Inter-American Development Bank.  The
governmental members, or "stockholders," usually make initial capital
contributions to the supranational entity and in many cases are committed to
make additional capital contributions if the supranational entity is unable
to repay its borrowings.  Each supranational entity's lending activities are
limited to a percentage of its total capital (including "callable capital"
contributed by members at the entity's call), reserves and net income.  There
can be no assurance that foreign governments will be willing or able to honor
their commitments.


      Investing in foreign securities involves considerations and possible
risks not typically associated with investing in securities in the U.S.  The
values of foreign securities investments will be affected by changes in
currency rates or exchange control regulations or currency blockage,
application of foreign tax laws, including withholding taxes, changes in
governmental administration or economic or monetary policy (in the U.S. or
abroad) or changed circumstances in dealings between nations.  Costs will be
incurred in connection with conversions between various currencies.  Foreign
brokerage commissions are generally higher than commissions in the U.S. and
foreign securities markets can be less liquid, more volatile and less subject
to governmental supervision than in the U.S.  Investments in foreign
countries could be affected by other factors not generally thought to be
present in the U.S., including expropriation or nationalization, confiscatory
taxation, lack of uniform accounting, auditing, and financial reporting
standards comparable to those applicable to U.S. issues, and potential
difficulties in enforcing contractual obligations, and could be subject to
extended settlement periods.  There could be less information publicly
available about foreign issuers than about U.S. issuers.


      Because the Fund can purchase securities denominated in foreign
currencies, a change in the value of any such currency against the U.S.
dollar will result in a change in the U.S. dollar value of the Fund's assets
and the Fund's income available for distribution.  Because a portion of the
Fund's investment income can be received or realized in foreign currencies,
the Fund will be required to compute and distribute its income in U.S.
dollars, and absorb the cost of currency fluctuations.  The Fund can engage
in foreign currency exchange transactions for hedging purposes to protect
against changes in future exchange rates.

      The values of foreign investments and the investment income derived
from them can also be affected unfavorably by changes in currency exchange
control regulations.  Although the Fund will invest only in securities
denominated in foreign currencies that at the time of investment do not have
government-imposed restrictions on conversion into U.S. dollars, there can be
no assurance against subsequent imposition of currency controls.  In
addition, the values of foreign fixed-income investments will fluctuate in
response to changes in U.S. and foreign interest rates.

      Special Risks of Emerging Market Countries.  Investments in emerging
market countries can involve further risks in addition to those identified
above for investments in foreign securities.  Securities issued by emerging
market countries and by companies located in those countries can be subject
to extended settlement periods, whereby the Fund might not receive principal
and/or income on a timely basis and its net asset value could be affected.
There can be a lack of liquidity for emerging market securities; interest
rates and foreign currency exchange rates could be more volatile; sovereign
limitations on foreign investments may be more likely to be imposed; there
can be significant balance of payment deficits; and their economies and
markets can respond in a more volatile manner to economic changes than those
of developed countries.

The Asset-Backed Sector

      Asset-Backed Securities.  The Fund can invest in securities that
represent undivided fractional interests in pools of consumer loans, similar
in structure to the mortgage-backed securities in which the Fund can invest
described below.  Payments of principal and interest are passed through to
holders of asset-backed securities and are typically supported by some form
of credit enhancement, such as a letter of credit, surety bond, limited
guarantee by another entity or having a priority to certain of the borrower's
other obligations.  The degree of credit enhancement varies and generally
applies, until exhausted, to only a fraction of the asset-backed security's
par value.  If the credit enhancement of any asset-backed security held by
the Fund has been exhausted, and if any required payments of principal and
interest are not made with respect to the underlying loans, the Fund can then
experience losses or delays in receiving payment and a decrease in the value
of the asset-backed security.

      The value of asset-backed securities is affected by changes in the
market's perception of the asset backing the security, the creditworthiness
of the servicing agent for the loan pool, the originator of the loans, or the
financial institution providing any credit enhancement, and is also affected
if any credit enhancement is exhausted.  The risks of investing in
asset-backed securities are ultimately dependent upon payment of the
underlying consumer loans by the individuals, and the Fund would generally
have no recourse to the entity that originated the loans in the event of
default by a borrower.  The underlying loans are subject to prepayments that
shorten the weighted average life of asset-backed securities and can lower
their return in the same manner as described below for prepayments of a pool
of mortgage loans underlying mortgage-backed securities.

      Private and U.S. Government Issued Mortgage-Backed Securities and CMOs.
The Fund can invest in securities that represent participation interests in
pools of residential mortgage loans, including collateralized mortgage
obligations (CMOs).  Some CMOs can be issued or guaranteed by agencies or
instrumentalities of the U.S. government (for example, Ginnie Maes, Freddie
Macs and Fannie Maes).  Other CMOs are issued by private issuers, such as
commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers.  CMOs issued
by such private issuers are not issued or guaranteed by the U.S. government
or its agencies and are, therefore, also subject to credit risks.  Credit
risk relates to the ability of the issuer or a debt security to make interest
or principal payments on the security as they become due.  Securities issued
or guaranteed by the U.S. government are subject to little, if any, credit
risk because they are backed by the "full faith and credit of the U.S.
government," which in general terms means that the U.S. Treasury stands
behind the obligation to pay interest and principal.

      The Fund's investments can include securities which represent
participation interests in pools of residential mortgage loans which may be
issued or guaranteed by private issuers or by agencies or instrumentalities
of the U.S. government.  Such securities differ from conventional debt
securities which provide for periodic payment of interest in fixed or
determinable amounts (usually semi-annually) with principal payments at
maturity or specified call dates.  Mortgage-backed securities provide monthly
payments which are, in effect, a "pass-through" of the monthly interest and
principal payments (including any prepayments) made by the individual
borrowers on the pooled mortgage loans.

      The yield on mortgage-backed securities is based on the average
expected life of the underlying pool of mortgage loans, which is computed on
the basis of the maturities of the underlying instruments.  The actual life
of any particular pool will be shortened by unscheduled or early payments of
principal and interest.  The occurrence of prepayments is affected by a wide
range of economic, demographic and social factors and, accordingly, it is not
possible to predict accurately the average life of a particular pool.  The
yield on such pools is usually computed by using the historical record of
prepayments for that pool, or in the case of newly-issued mortgages, the
prepayment history of similar pools.  The actual prepayment experience of a
pool of mortgage loans can cause the yield realized by the Fund to differ
from the yield calculated on the basis of the expected average life of the
pool.

      The price and yields to maturity of CMOs are, in part, determined by
assumptions about cash-flows from the rate of payments of underlying
mortgages.  However, changes in prevailing interest rates can cause the rate
of prepayments of underlying mortgages to change.  In general, prepayments on
fixed rate mortgage loans increase during periods of falling interest rates
and decrease during periods of rising interest rates.  Faster than expected
prepayments of underlying mortgages will reduce the market value and yield to
maturity of issued CMOs.  If prepayments of mortgages underlying a short-term
or intermediate-term CMO occur more slowly than anticipated because of rising
interest rates, the CMO effectively can become a longer-term security.  The
prices of long-term debt securities generally fluctuate more widely than
those of shorter-term securities in response to changes in interest rates
which, in turn, can result in greater fluctuations in the Fund's share
prices.

      Prepayments tend to increase during periods of falling interest rates,
while during periods of rising interest rates prepayments will most likely
decline.  When prevailing interest rates rise, the value of a pass-through
security can decrease as do other debt securities, but, when prevailing
interest rates decline, the value of pass-through securities is not likely to
rise on a comparable basis with other debt securities because of the
pre-payment feature of pass-through securities.  The Fund's reinvestment of
scheduled principal payments and unscheduled prepayments it receives can
occur at higher or lower rates than the original investment, thus affecting
the yield of the Fund.  Monthly interest payments received by the Fund have a
compounding effect which can increase the yield to shareholders more than
debt obligations that pay interest semi-annually.

      Because of those factors, mortgage-backed securities can be less
effective than Treasury bonds of similar maturity at maintaining yields
during periods of declining interest rates.  Accelerated prepayments
adversely affect yields for pass-through securities purchased at a premium
(i.e., a price in excess of principal amount) and can involve additional risk
of loss of principal because the premium may not have been fully amortized at
the time the obligation is repaid.  The opposite is true for pass-through
securities purchased at a discount.  The Fund can purchase mortgage-backed
securities at a premium or at a discount.

      Some mortgage-backed securities issued or guaranteed by U.S. government
agencies or instrumentalities are backed by the full faith and credit of the
U.S. Treasury (e.g., direct pass-through certificates of the Government
National Mortgage Association); some are supported by the right of the issuer
to borrow from the U.S. government (e.g., obligations of Federal Home Loan
Banks); and some are backed by only the credit of the issuer itself (e.g.,
obligations of the Federal National Mortgage Association).  Such guarantees
do not extend to the value or yield of the mortgage-backed securities
themselves or to the value of the Fund's shares.


o     Forward Rolls.  The Fund can enter into "forward roll" transactions
with respect to mortgage-related securities (also referred to as "mortgage
dollar rolls").  In this type of transaction, the Fund sells a
mortgage-related security to a buyer and simultaneously agrees to repurchase
a similar security (the same type of security, and having the same coupon and
maturity) at a later date at a set price.  The securities that are
repurchased will have the same interest rate as the securities that are sold,
but typically will be collateralized by different pools of mortgages (with
different prepayment histories) than the securities that have been sold.
Proceeds from the sale are invested in short-term instruments, such as
repurchase agreements.  The income from those investments, plus the fees from
the forward roll transaction, are expected to generate income to the Fund in
excess of the yield on the securities that have been sold.

      The Fund will only enter into "covered" rolls.  To assure its future
payment of the purchase price, the Fund will identify liquid assets in an
amount equal to the payment obligation under the roll.

      These transactions have risks. 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.  It is possible
that the market value of the securities the Fund sells may decline below the
price at which the Fund is obligated to repurchase securities.


      Interest Rate Risks.  Although U.S. government securities involve
little credit risk, their market values will fluctuate until they mature,
depending on prevailing interest rates.  When prevailing interest rates go
up, the market value of already issued debt securities tends to go down.
When interest rates go down, the market value of already issued debt
securities tends to go up. The magnitude of those fluctuations generally will
be greater when the average maturity of the Fund's portfolio securities is
longer.  Certain of the Fund's investments, such as I/Os, P/Os and
mortgage-backed securities such as CMOs, can be very sensitive to interest
rate changes and their values can be quite volatile.

      The Fund can invest in "stripped" mortgage-backed securities or CMOs.
Stripped mortgage-backed securities usually have two classes.  The classes
receive different proportions of the interest and principal distributions on
the pool of mortgage assets that act as collateral for the security.  In
certain cases, one class will receive all of the interest payments (and is
known as an "I/O"), while the other class will receive all of the principal
value on maturity (and is known as a "P/O").

      The yield to maturity on the class that receives only interest is
extremely sensitive to the rate of payment of the principal on the underlying
mortgages.  Principal prepayments increase that sensitivity.  Stripped
securities that pay "interest only" are therefore subject to greater price
volatility when interest rates change, and they have the additional risk that
if the underlying mortgages are prepaid, the Fund will lose the anticipated
cash flow from the interest on the prepaid mortgages.  That risk is increased
when general interest rates fall, and in times of rapidly falling interest
rates, the Fund might receive back less than its investment.

      The value of "principal only" 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.

      Stripped securities are generally purchased and sold by institutional
investors through investment banking firms.  At present, established trading
markets have not yet developed for these securities.  Therefore, some
stripped securities could be deemed "illiquid."  If the Fund holds illiquid
stripped securities, the amount it can hold will be subject to the Fund's
investment limitations set forth under "Direct Placements and Other Illiquid
Securities."

      The Fund can also enter into "forward roll" transactions with banks or
other buyers that provide for future delivery of the mortgage-backed
securities in which the Fund can invest.  The Fund would be required to
deposit liquid assets of any type, including equity and debt securities of
any grade to its custodian bank in an amount equal to its purchase payment
obligation under the roll.

      GNMA Certificates.  Certificates of the Government National Mortgage
Association ("GNMA Certificates") are mortgage-backed securities which
evidence an undivided interest in a pool or pools of mortgages.  The GNMA
Certificates that the Fund can purchase are of the "modified pass-through"
type, which entitle the holder to receive timely payment of all interest and
principal payments due on the mortgage pool, net of fees paid to the "issuer"
and GNMA, regardless of whether the mortgagor actually makes the payment.

      The National Housing Act authorizes GNMA to guarantee the timely
payment of principal and interest on securities backed by a pool of mortgages
insured by the Federal Housing Administration ("FHA") or guaranteed by the
Veterans Administration ("VA").  The GNMA guarantee is backed by the full
faith and credit of the U.S. government.  GNMA is also empowered to borrow
without limitation from the U.S. Treasury if necessary to make any payments
required under its guarantee.

      The average life of a GNMA Certificate is likely to be substantially
shorter than the original maturity of the mortgages underlying the
securities.  Prepayments of principal by mortgagors and mortgage foreclosures
will usually result in the return of the greater part of principal investment
long before the maturity of the mortgages in the pool.  Foreclosures impose
no risk to principal investment because of the GNMA guarantee, except to the
extent that the Fund has purchased the certificates at a premium in the
secondary market.

      FHLMC Securities.  The Federal Home Loan Mortgage Corporation ("FHLMC")
was created to promote development of a nationwide secondary market for
conventional residential mortgages.  FHLMC issues two types of mortgage
pass-through securities ("FHLMC Certificates"): mortgage participation
certificates ("PCS") and guaranteed mortgage certificates ("GMCs").  PCS
resemble GNMA Certificates in that each PC represents a pro rata share of all
interest and principal payments made and owed on the underlying pool.  FHLMC
guarantees timely monthly payment of interest on PCS and the ultimate payment
of principal.

      GMCs also represent a pro rata interest in a pool of mortgages.
However, these instruments pay interest semi-annually and return principal
once a year in guaranteed minimum payments.  The expected average life of
these securities is approximately 10 years.  The FHLMC guarantee is not
backed by the full faith and credit of the United States.

      FNMA Securities.  The Federal National Mortgage Association ("FNMA")
was established to create a secondary market in mortgages insured by the
FHA.  FNMA issues guaranteed mortgage pass-through certificates ("FNMA
Certificates").  FNMA Certificates resemble GNMA Certificates in that each
FNMA Certificate represents a pro rata share of all interest and principal
payments made and owed on the underlying pool.  FNMA guarantees timely
payment of interest and principal on FNMA Certificates.  The FNMA guarantee
is not backed by the full faith and credit of the United States.

The Municipal Sector


      The assets of this sector will be invested in obligations issued by or
on behalf of states, territories or possessions of the United States and the
District of Columbia or their political subdivisions, agencies,
instrumentalities or authorities (municipal bonds).  At the time of purchase,
all securities in this sector will be rated within the four highest grades
assigned by Moody's, Standard & Poor's, Fitch ("Baa" or better by Moody's or
"BBB" or better by Standard & Poor's), or another nationally recognized
rating organization, or unrated securities which are of comparable quality in
the opinion of the Manager.  Any income earned on municipal bonds which the
Fund distributes to shareholders would be treated as taxable income to such
shareholders.


      The Fund does not expect to invest in municipal bonds for tax-exempt
income to distribute to shareholders, but to take advantage of yield
differentials with other debt securities, which can be reflected in bond
prices, and thus reflect potential for capital appreciation.  Because
municipal bonds are generally exempt from federal taxation they normally
yield much less than taxable fixed-income securities.  At times, however, the
yield differential narrows from its normal range.  This can occur, for
example, when the demand for U.S. government securities substantially
increases in times of economic stress or when investors seeking safety are
willing to pay more for such securities thereby reducing the yield.  It also
can occur when investors perceive a threat to the continuation of the
tax-exempt status of municipal bonds through possible Congressional or State
action.  When this happens, investors are not willing to pay as much for
municipal bonds, thereby reducing prices and increasing their yield compared
to taxable obligations.  If such situations occur, investments in the
Municipal Sector can be more attractive than other sectors even though such
investments continue to offer lower yields than taxable securities because if
the yield differential returns to normal ranges, the value of municipal bonds
relative to taxable fixed-income securities will have increased, i.e.
depreciated less or appreciated more.  Such an investment would help the Fund
achieve its objective of capital preservation or capital appreciation.  It
would also help achieve its objective of high income because the Fund's net
asset value per share would be higher than it otherwise would have been,
thereby permitting it to earn additional income on those assets.

      Municipal bonds include debt obligations issued to obtain funds for
various public purposes, including the construction of a wide range of public
facilities such as airports, highways, bridges, schools, hospitals, housing,
mass transportation, streets, and water and sewer works.  Other public
purposes for which municipal bonds can be issued include the refunding of
outstanding obligations, obtaining funds for general operating expenses and
obtaining funds to lend to other public institutions and facilities.

      The two principal classifications of municipal bonds are (1) "general
obligation" and (2) "revenue" (or "special tax") bonds.  General obligation
bonds are secured by the issuer's pledge of its full faith, credit and
unlimited taxing power for the payment of principal and interest.  Revenue or
special tax bonds are payable only from the revenues derived from a
particular facility or class of facilities or project or, in a few cases,
from the proceeds of a special excise or other tax but are not supported by
the issuer's power to levy general taxes.  There are variations in the
security of municipal bonds, both within a particular classification and
between classifications, depending on numerous factors.  The yields of
municipal bonds depend on, among other things, general money market
conditions, general conditions of the Municipal Bond market, size of a
particular offering, the maturity of the obligation and rating of the issue,
and are generally lower than those of taxable investments.

The Convertible Sector

      Assets allocated to this sector will be invested in securities (bonds,
debentures, corporate notes, preferred stocks and units with warrants
attached) which are convertible into common stock.  Common stock received
upon conversion can be retained in the Fund's portfolio to permit orderly
disposition or to establish a holding period to avoid possible adverse
federal income tax consequences to the Fund or shareholders.

      Convertible securities can provide a potential for current income
through interest and dividend payments and at the same time provide an
opportunity for capital appreciation by virtue of their convertibility into
common stock.  The rating requirements to which the Fund is subject when
investing in corporate fixed-income securities and foreign securities (see
above) also apply  to the Fund's investments in domestic and foreign
convertible securities, respectively.

      Convertible securities rank senior to common stock in a corporation's
capital structure and, therefore, can entail less risk than the corporation's
common stock.  The value of a convertible security is a function of its
"investment value" (its value without considering its conversion privilege)
and its "conversion value" (the security's worth if it were to be exchanged
pursuant to its conversion privilege for the underlying security at the
market value of the underlying security).

      To the extent that a convertible security's investment value is greater
than its conversion value, its price will be primarily a reflection of such
investment value and its price will be likely to increase when interest rates
fall and decrease when interest rates rise as with other fixed-income
securities (the credit standing of the issuer and other factors may also have
an effect on the convertible security's value).  If the conversion value
exceeds the investment value, the price of the convertible security will rise
above its investment value and, in addition, will sell at some premium over
its conversion value, which represents the price investors are willing to pay
for the privilege of purchasing a fixed-income security with a possibility of
capital appreciation due to the conversion privilege.  At such times the
price of the convertible security will tend to fluctuate directly with the
price of the underlying equity security.  Convertible securities can be
purchased by the Fund at varying price levels above their investment values
and/or their conversion values in keeping with the Fund's objectives.

The Money Market Sector

      Assets in this sector will be invested in the following U.S.
dollar-denominated debt obligations maturing in 397 days or less:

      (1)   U.S. government securities: Obligations issued or guaranteed by
            the U.S. government or its agencies or instrumentalities.

      (2)   Bank Obligations: Certificates of deposit, bankers' acceptances,
            loan participation agreements, time deposits, and letters of
            credit if they are payable in the United States or London,
            England, and are issued or guaranteed by a domestic or foreign
            bank having total assets in excess of $1 billion.

      (3)   Commercial Paper: Obligations rated "A-1," "A-2" or "A-3" by
            Standard & Poor's or Prime-1, Prime-2 or Prime-3 by Moody's or if
            not rated, issued by a corporation having an existing debt
            security rated "A" or better by Standard & Poor's or "A" or
            better by Moody's.


(4)   Corporate Obligations: Corporate debt obligations (including master
            demand notes but not including commercial paper) if they are
            issued by domestic corporations and are rated "A" or better by
            Standard & Poor's or "A" or better by Moody's or unrated
            securities which are of comparable quality in the opinion of the
            Manager.


      (5)   Other Obligations: Obligations of the type listed in (1) through
            (4) above, but not satisfying the standards set forth therein, if
            they are (a) subject to repurchase agreements or (b) guaranteed
            as to principal and interest by a domestic or foreign bank having
            total assets in excess of $1 billion, by a corporation whose
            commercial paper can be purchased by the Fund, or by a foreign
            government having an existing debt security rated "AA" or "Aa" or
            better.

      (6)   Board-Approved Instruments: Other short-term investments of a
            type which the Board determines presents minimal credit risks and
            which are of "high quality" as determined by any major rating
            service or, in the case of an instrument that is not rated, of
            comparable quality as determined by the Board.

      Bank time deposits can be non-negotiable until expiration and can
impose penalties for early withdrawal.  Master demand notes are corporate
obligations which permit the investment of fluctuating amounts by the Fund at
varying rates of interest pursuant to direct arrangements between the Fund,
as lender, and the borrower.  They permit daily changes in the amounts
borrowed.  The Fund has the right to increase the amount under the note at
any time up to the full amount provided by the note agreement, or to decrease
the amount, and the borrower can prepay up to the full amount of the note
without penalty.  These notes may or may not be backed by bank letters of
credit.  Because these notes are direct lending arrangements between the
lender and borrower, it is not generally contemplated that they will be
traded, and there is no secondary market for them, although they are
redeemable (and thus immediately repayable by the borrower) at principal
amount, plus accrued interest, at any time.


      The Fund has no limitation on the type of issuer from whom these notes
will be purchased; however, in connection with such purchase and on an
ongoing basis, subject to policies established by the Board of Trustees, the
Manager will consider the earning power, cash flow and other liquidity ratios
of the issuer, and its ability to pay principal and interest on demand,
including a situation in which all holders of such notes made demand
simultaneously.  Investments in bank time deposits and master demand notes
are subject to the investment limitation on securities that are not readily
marketable set forth under "Special Investment Techniques -- Direct
Placements and Other Illiquid Securities."


      Because the Fund can invest in U.S. dollar-denominated securities of
foreign banks and foreign branches of U.S. banks, the Fund can be subject to
additional investment risks which can include future political and economic
developments of the country in which the bank is located, possible imposition
of withholding taxes on interest income payable on the securities, possible
seizure or nationalization of foreign deposits, the possible establishment of
exchange control regulations or the adoption of other governmental
restrictions that might affect the payment of principal and interest on such
securities.  Additionally, not all of the U.S. federal and state banking laws
and regulations applicable to domestic banks relating to maintenance of
reserves, loan limits and promotion of financial soundness apply to foreign
branches of domestic banks, and none of them apply to foreign banks.

SPECIAL INVESTMENT TECHNIQUES

      In conjunction with the investments in the seven sectors described
above, the Fund can use the following special investment techniques, however,
the Fund's portfolio might not always include all of the different types of
investment described below.

Direct Placements and Other Illiquid Securities


      The Fund can invest up to 20% of its assets in securities purchased in
direct placements which are subject to statutory or contractual restrictions
and delays on resale (restricted securities). This policy does not limit the
acquisition of restricted securities eligible for resale pursuant to Rule
144A under the Securities Act of 1933 that are determined to be liquid by the
Board of Trustees or the Manager under Board-approved guidelines.  Such
guidelines take into account trading activity for such securities and the
availability of reliable pricing information, among other factors.  If there
is a lack of trading interest in particular Rule 144A securities, the Fund's
holdings of those securities can be illiquid. Restricted securities may
generally be resold only in privately-negotiated transactions with a limited
number of purchasers or in a public offering registered under the Securities
Act of 1933 and are, therefore, unlike securities which are traded in the
open market and can be expected to be sold immediately if the market demand
is adequate.  If restricted securities are substantially comparable to
registered securities of the same issuer which are readily marketable, the
Fund can not purchase them unless they are offered at a discount from the
market price of the registered securities.  Generally, no restricted
securities will be purchased unless the issuer has agreed to register the
securities at its expense within a specific time period.  Adverse conditions
in the public securities market at certain times can preclude a public
offering of an issuer's unregistered securities.  There can be undesirable
delays in selling restricted securities at prices representing fair value.

      The Fund can invest up to an additional 10% of its assets in securities
which, although not restricted, are not readily marketable.  Such securities
can include bank time deposits, master demand notes described in the Money
Market Sector and certain puts and calls which are traded in the
over-the-counter markets.  The Manager monitors holdings of illiquid
securities on an ongoing basis to determine whether to sell any holdings to
maintain adequate liquidity. Illiquid securities include repurchase
agreements maturing in more than seven days, or certain participation
interests other than those with puts exercisable within seven days.


Repurchase Agreements


      Any of the securities permissible for purchase for one of its sectors
can be acquired by the Fund subject to repurchase agreements with commercial
banks with total assets in excess of $1 billion or securities dealers with a
net worth in excess of $50 million.  In a repurchase transaction, at the time
the Fund acquires a security, it simultaneously resells it to the vendor and
must deliver that security to the vendor on a specific future date.  The
repurchase price exceeds the purchase price by an amount that reflects an
agreed-upon interest rate effective for the period during which the
repurchase agreement is in effect.  The majority of these transactions run
from day to day, and delivery pursuant to the resale typically will occur
within one to five days of the purchase.  The Fund will not enter into a
repurchase transaction of more than seven days.  Repurchase agreements are
considered "loans" under the Investment Company Act of 1940 (the "Investment
Company Act"), collateralized by the underlying security.  The Fund's
repurchase agreements will require that at all times while the repurchase
agreement is in effect, the collateral's value must equal or exceed the
repurchase price to collateralize the loan fully.  The Manager will monitor
the collateral daily and, in the event its value declines below the
repurchase price, will immediately demand additional collateral be
deposited.  If such demand is not met within one day, the existing collateral
will be sold.  Additionally, the Manager will consider the creditworthiness
of the vendor.  If the vendor fails to pay the agreed-upon resale price on
the delivery date, the Fund's risks in such event can include any decline in
value of the collateral to an amount which is less than 100% of the
repurchase price, any costs of disposing of such collateral, and loss from
any delay in foreclosing on the collateral.  There is no limit on the amount
of the Fund's assets that can be subject to repurchase agreements.

      Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund, along with other affiliated entities managed by the
Manager, may transfer uninvested cash balances into one or more joint
repurchase accounts. These balances are invested in one or more repurchase
agreements, secured by U.S. government securities. Securities that are
pledged as collateral for repurchase agreements are held by a custodian bank
until the agreements mature. Each joint repurchase arrangement requires that
the market value of the collateral be sufficient to cover payments of
interest and principal; however, in the event of default by the other party
to the agreement, retention or sale of the collateral may be subject to legal
proceedings.


When-Issued and Delayed-Delivery Transactions


      The Fund can purchase asset-backed securities, municipal bonds and
other debt securities on a "when-issued" basis, and can purchase or sell such
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.  Although
the Fund will enter into such transactions for the purpose of acquiring
securities for its portfolio for delivery pursuant to option contracts it has
entered into, the Fund can dispose of a commitment prior to settlement.  The
Fund does not intend to make such purchases for speculative purposes.  When
such transactions are negotiated, the price (which is generally expressed in
yield terms) is fixed at the time the commitment is made, but delivery and
payment for the securities take place at a later date.  During the period
between commitment by the Fund and settlement, no payment is made for the
securities purchased, and no interest accrues to the Fund from the
transaction until the Fund receives the security at settlement of the trade.
Such securities are subject to market fluctuations; the value at delivery can
be less than the purchase price.  The Fund will identify to its custodian,
liquid assets on its records as segregated of any type, including equity and
debt securities of any grade at least equal to the value of purchase
commitments until payment is made.  Such securities can bear interest at a
lower rate than longer term securities.  The commitment to purchase a
security for which payment will be made on a future date can be deemed a
separate security and involve a risk of loss if the value of the security
declines prior to the settlement date, which risk is in addition to the risk
of decline of the Fund's other assets.


Hedging


      The Fund can purchase and sell futures contracts; enter into forward
contracts; purchase and sell call and put options on securities, futures,
indices and foreign currencies; and enter into interest rate swap
agreements.  These are referred to as "Hedging Instruments." The Fund is not
obligated to use hedging instruments even though it is permitted to use them
in the Manager's discretion, as described below.


      Hedging Instruments can be used to attempt to protect against possible
declines in the market value of the Fund's portfolio from downward trends in
securities markets, to protect the Fund's unrealized gains in the value of
its securities which have appreciated, to facilitate selling securities for
investment reasons, to establish a position in the securities markets as a
temporary substitute for purchasing particular securities, or to reduce the
risk of adverse currency fluctuations.

      The Fund's strategy of hedging with futures and options on futures will
be incidental to the Fund's activities in the underlying cash market.
Covered calls and puts can also be written on securities to attempt to
increase the Fund's income. The Fund will not use futures and options on
futures for speculation.  The hedging instruments the Fund can use are
described below.  As of the date of this Registration Statement, the Fund
does not intend to enter into futures, forward contracts and options on
futures if after any such purchase, the sum of margin deposits on futures and
premiums paid on futures options would exceed 5% of the value of the Fund's
total assets.


      Futures.  The Fund can buy and sell futures contracts that relate to
(1) stock indices (referred to as stock index futures), (2) other securities
indices (together with stock index futures, referred to as financial
futures), (3) an individual stock ("single stock futures"), (4) interest
rates (referred to as interest rate futures), (5) foreign currencies
(referred to as forward contracts), or (6) commodities (referred to as
commodity futures.) An interest rate future obligates the seller to deliver
and the purchaser to take a specific type of debt security at a specific
future date for a fixed price.  That obligation can be satisfied by actual
delivery of the debt security or by entering into an offsetting contract.  A
bond index assigns relative values to the bonds included in that index and is
used as a basis for trading long-term bond index futures contracts.  Bond
index futures reflect the price movements of bonds included in the index.
They differ from interest rate futures in that settlement is made in cash
rather than by delivery; or settlement can be made by entering into an
offsetting CONTRACT. contract. A single stock future obligates the seller to
deliver (and the purchaser to take) cash or a specified equity security to
settle the futures transaction. Either party could also enter into an
offsetting contract to close out the position.   Single stock futures trade
on a very limited number of exchanges, with contracts typically not fungible
among the exchanges.


      Put and Call Options. The Fund can buy and sell exchange-traded and
over-the-counter put and call options, including index options, securities
options, currency options, commodities options, and options on the other
types of futures described in "futures," above.  A call or put can be
purchased only if, after the purchase, the value of all call and put options
held by the Fund will not exceed 5% of the Fund's total assets.

      If the Fund sells (that is, writes) a call option, it must be
"covered."  That means the Fund must own the security subject to the call
while the call is outstanding, or, for other types of written calls, the Fund
must segregate liquid assets to enable it to satisfy its obligations if the
call is exercised.  Up to 25% of the Fund's total assets can be subject to
calls.

      The Fund can buy puts whether or not it holds the underlying investment
in the portfolio. If the Fund writes a put, the put must be covered by
segregated liquid assets.  The Fund will not write puts if more than 50% of
the Fund's net assets would have to be segregated to cover put options.


      Buying a put on an investment the Fund does not own (such as an index
or future) permits the Fund to resell the put or to buy the underlying
investment and sell it at the exercise price. The resale price will vary
inversely to the price of the underlying investment. If the market price of
the underlying investment is above the exercise price and, as a result, the
put is not exercised, the put will become worthless on its expiration date.


      Foreign Currency Options.  The Fund can purchase and write puts and
calls on foreign currencies that are traded on a securities or commodities
exchange or quoted by major recognized dealers in such options, for the
purpose of protecting against declines in the dollar value of foreign
securities and against increases in the dollar cost of foreign securities to
be acquired.  If a rise is anticipated in the dollar value of a foreign
currency in which securities to be acquired are denominated, the increased
cost of such securities can be partially offset by purchasing calls or
writing puts on that foreign currency.  If a decline in the dollar value of a
foreign currency is anticipated, the decline in value of portfolio securities
denominated in that currency can be partially offset by writing calls or
purchasing puts on that foreign currency.  However, in the event of currency
rate fluctuations adverse to the Fund's position, it would either lose the
premium it paid and incur transaction costs, or purchase or sell the foreign
currency at a disadvantageous price.


      Forward Contracts.  The Fund can enter into foreign currency exchange
contracts ("forward contracts"), which obligate the seller to deliver and the
purchaser to take a specific foreign currency at a specific future date for a
fixed price.  The Fund can enter into a forward contract in order to "lock
in" the U.S. dollar price of a security denominated in a foreign currency, or
to protect against a possible loss resulting from an adverse change in the
relationship between the U.S. dollar and a foreign currency.  There is a risk
that use of forward contracts can reduce the gain that would otherwise result
from a change in the relationship between the U.S. dollar and a foreign
currency.  Forward contracts include standardized foreign currency futures
contracts which are traded on exchanges and are subject to procedures and
regulations applicable to other futures.  The Fund can also enter into a
forward contract to sell a foreign currency denominated in a currency other
than that in which the underlying security is denominated.  This is done in
the expectation that there is a greater correlation between the foreign
currency of the forward contract and the foreign currency of the underlying
investment than between the U.S. dollar and the currency of the underlying
investment.  This technique is referred to as "cross hedging."  The success
of cross hedging is dependent on many factors, including the ability of the
Manager to correctly identify and monitor the correlation between foreign
currencies and the U.S. dollar.  To the extent that the correlation is not
identical, the Fund can experience losses or gains on both the underlying
security and the cross currency hedge.

      The Fund will not speculate in foreign currency exchange contracts.
There is no limitation as to the percentage of the Fund's assets that can be
committed to foreign currency exchange contracts.  The Fund does not enter
into such forward contracts or maintain a net exposure in such contracts to
the extent that the Fund would be obligated to deliver an amount of foreign
currency in excess of the value of the Fund's assets denominated in that
currency or enter into a cross hedge unless it is denominated in a currency
or currencies that the Manager believes will have price movements that tend
to correlate closely with the currency in which the investment being hedged
is denominated.

      There are certain risks in writing calls.  If a call written by the
Fund is exercised, the Fund foregoes any profit from any increase in the
market price above the call price of the underlying investment on which the
call was written.  In addition, the Fund could experience capital losses that
might cause previously distributed short-term capital gains to be
re-characterized as non-taxable return of capital to shareholders.  In
writing puts, there is the risk that the Fund could be required to buy the
underlying security at a disadvantageous price.  The principal risks relating
to the use of futures are: (a) possible imperfect correlation between the
prices of the futures and the market value of the securities in the Fund's
portfolio; (b) possible lack of a liquid secondary market for closing out a
futures position; (c) the need for additional skills and techniques beyond
those required for normal portfolio management; and (d) losses on futures
resulting from interest rate movements not anticipated by the Manager.


      Interest Rate Swaps and Total Return Swaps.  In an interest rate swap,
the Fund and another party exchange their right to receive or their
obligation to pay interest on a security. For example, they might swap the
right to receive fixed rate payments for floating rate payments. The Fund
enters into swaps only on securities it owns.  The Fund can not enter into
swaps with respect to more than 25% of its total assets.  Also, the Fund will
identify on its books liquid assets of any type, including equity and debt
securities of any grade, to cover any amounts it could owe under swaps that
exceed the amounts it is entitled to receive, and it will adjust that amount
daily, as needed.

      In addition, the Fund may invest in total return swaps with appropriate
counterparties.  In a total return swap, one party pays a rate of interest in
exchange for the total rate of return on another investment.  For example, if
the Fund wished to invest in a particular security, it could instead enter
into a total return swap and receive the total return of that security, less
the "funding cost," which would be a floating interest rate payment to the
counterparty.

      Under a swap agreement, the Fund typically will pay a fee determined by
multiplying the face value of the swap agreement by an agreed-upon interest
rate.  If the underlying asset value declines over the term of the swap, the
Fund would be required to pay the dollar value of that decline to the
counterparty in addition to its fee payments.

      Swap agreements entail both interest rate risk and credit risk.  There
is a risk that, based on movements of interest rates in the future, the
payments made by the Fund under a swap agreement will be greater than the
payments it receives.  Credit risk arises from the possibility that the
counterparty will default.  If the counterparty defaults, the Fund's loss
will consist of the net amount of contractual interest payments that the Fund
has not yet received.  The Manager will monitor the creditworthiness of
counterparties to the Fund's interest rate swap transactions on an ongoing
basis.


      Derivative Investments. The Fund can invest in a number of different
kinds of "derivative investments."  In general, a "derivative investment" is
a specially designed investment whose performance is linked to the
performance of another investment or security, such as an option, future,
index, currency or commodity.  The Fund can not purchase or sell physical
commodities or commodity contracts; however this does not prevent the Fund
from buying or selling options and futures contracts or from investing in
securities or other instruments backed by physical commodities.  In the
broadest sense, derivative investments include exchange-traded options and
futures contracts.  The risks of investing in derivative investments include
not only the ability of the company issuing the instrument to pay the amount
due on the maturity of the instrument, but also the risk that the underlying
investment or security might not perform the way the Manager expected it to
perform.  The performance of derivative investments can also be influenced by
interest rate changes in the U.S. and abroad.  All of this can mean that the
Fund will realize less principal and/or income than expected.  Certain
derivative investments held by the Fund can trade in the over-the-counter
market and can be illiquid.  Derivative investments used by the Fund are used
in some cases for hedging purposes and in other cases for "non-hedging"
investment purposes to seek income or total return.  In the broadest sense,
exchange-traded options and futures contracts (discussed in "Hedging," above)
can be considered "derivative investments."


      The Fund can invest in different types of derivatives, generally known
as "Structured Investments."  "Index-linked" or "commodity -linked" notes are
debt securities of companies that call for interest payments and/or payment
on the maturity of the note in different terms than the typical note where
the borrower agrees to make fixed interest payments and to pay a fixed sum on
the maturity of the note.  Principal and/or interest payments on an
index-linked note depend on the performance of one or more market indices,
such as the S&P 500 Index or a weighted index of commodity futures, such as
crude oil, gasoline and natural gas.  Further examples of derivative
investments the Fund can invest in include "debt exchangeable for common
stock" of an issuer or "equity-linked debt securities" of an issuer. At
maturity, the principal amount of the security is exchanged for common stock
of the issuer or is payable in an amount based on the issuer's common stock
price at the time of maturity.  In either case there is a risk that the
amount payable at maturity will be less than the principal amount of the
debt.


      The Fund can also invest in currency-indexed securities.  Typically
these are short-term or intermediate-term debt securities having a value at
maturity, and/or interest rates determined by reference to one or more
specified foreign currencies.  Certain currency-indexed securities purchased
by the Fund can have a payout factor tied to a multiple of the movement of
the U.S. dollar (or the foreign currency in which the security is
denominated) against the movement in the U.S. dollar, the foreign currency,
another currency, or an index.  Such securities can be subject to increased
principal risk and increased volatility than comparable securities without a
payout factor in excess of one, but the Manager believes the increased yield
justifies the increased risk.

      Participation Interests.  The Fund can acquire interests in loans that
are made to U.S. companies, foreign companies and foreign governments (the
"borrower").  They can be interests in, or assignments of, the loan and are
acquired from banks or brokers that have made the loan or have become members
of the lending syndicate.  The Fund will not invest, at the time of
investment, more than 5% of its net assets in participation interests of the
same borrower.  The Manager has set certain creditworthiness standards for
borrowers, and monitors their creditworthiness.  The value of loan
participation interests depends primarily upon the creditworthiness of the
borrower, and its ability to pay interest and principal.  Borrowers can have
difficulty making payments.  If a borrower fails to make scheduled interest
or principal payments, the Fund could experience a decline in the net asset
value of its shares.  Some borrowers can have senior securities rated as low
as "C" by Moody's or "D" by Standard & Poor's, but can be deemed acceptable
credit risks.  Participation interests are subject to the Fund's limitations
on investments in illiquid securities.

o     Credit Derivatives. The Fund may enter into credit default swaps, both
directly ("unfunded swaps") and indirectly in the form of a swap embedded
within a structured note ("funded swaps"), to protect against the risk that a
security will default.  Unfunded and funded credit default swaps may be on a
single security, or on a basket of securities.  The Fund pays a fee to enter
into the swap and receives a fixed payment during the life of the swap.  The
Fund may take a short position in the credit default swap (also known as
"buying credit protection"), or may take a long position in the credit
default swap note (also known as "selling credit protection").

      The Fund would take a short position in a credit default swap (the
"unfunded swap") against a long portfolio position to decrease exposure to
specific high yield issuers.  If the short credit default swap is against a
corporate issue, the Fund must own that corporate issue. However, if the
short credit default swap is against sovereign debt, the Fund may own either:
(i) the reference obligation, (ii) any sovereign debt of that foreign
country, or (iii) sovereign debt of any country that the Manager determines
is closely correlated as an inexact bona fide hedge.

      If the Fund takes a short position in the credit default swap, if there
is a credit event (including bankruptcy, failure to timely pay interest or
principal, or a restructuring), the Fund will deliver the defaulted bonds and
the swap counterparty will pay the par amount of the bonds.  An associated
risk is adverse pricing when purchasing bonds to satisfy the delivery
obligation.  If the swap is on a basket of securities, the notional amount of
the swap is reduced by the par amount of the defaulted bond, and the fixed
payments are then made on the reduced notional amount.

      Taking a long position in the credit default swap note (i.e.,
purchasing the "funded swap") would increase the Fund's exposure to specific
high yield corporate issuers.  The goal would be to increase liquidity in
that market sector via the swap note and its associated increase in the
number of trading instruments, the number and type of market participants,
and market capitalization.

      If the Fund takes a long position in the credit default swap note, if
there is a credit event the Fund will pay the par amount of the bonds and the
swap counterparty will deliver the bonds.  If the swap is on a basket of
securities, the notional amount of the swap is reduced by the par amount of
the defaulted bond, and the fixed payments are then made on the reduced
notional amount.

      The Fund will invest no more than 25% of its total assets in "unfunded"
credit default swaps.  The Fund will limit its investments in "funded" credit
default swap notes to no more than 10% of its total assets.

      Other risks of credit default swaps include the cost of paying for
credit protection if there are no credit events, pricing transparency when
assessing the cost of a credit default swap, counterparty risk, and the need
to fund the delivery obligation (either cash or the defaulted bonds,
depending on whether the Fund is long or short the swap, respectively).


Loans of Portfolio Securities

      To attempt to increase its income, the Fund can lend its portfolio
securities if, after any loan, the value of the securities loaned does not
exceed 25% of the total value of its assets.  Under applicable regulatory
requirements (which are subject to change), the loan collateral must, on each
business day, be at least equal to the value of the loaned securities and
must consist of cash, bank letters of credit or U.S. government securities.
To be acceptable as collateral, letters of credit must obligate a bank to pay
amounts demanded by the Fund if the demand meets the terms of the letter.
Such terms and the issuing bank must be satisfactory to the Fund.  The Fund
receives an amount equal to the dividends or interest on loaned securities
and also receives one or more of (a) negotiated loan fees, (b) interest on
securities used as collateral, or (c) interest on short-term debt securities
purchased with such loan collateral; either type of interest may be shared
with the borrower.  The Fund can also pay reasonable finder's, custodian and
administrative fees.

      The terms of the Fund's loans must meet certain tests under the
Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or the
"Code"), and permit the Fund to reacquire loaned securities on five days'
notice or in time to vote on any important matter.  The Fund will make such
loans only to banks and securities dealers with whom it can enter into
repurchase transactions.  If the borrower fails to return this loaned
security the Fund's risks include: (1) any costs in disposing of the
collateral; (2) loss from a decline in value of the collateral to an amount
less than 100% of the securities loaned; (3) being unable to exercise its
voting or consent rights with respect to the security; and (4) any loss
arising from the Fund being unable to timely settle a sale of such securities.

Borrowing

      From time to time, the Fund can increase its ownership of securities by
borrowing up to 10% of the value of its net assets from banks and investing
the borrowed funds (on which the Fund will pay interest).  After any such
borrowing, the Fund's total assets, less its liabilities other than
borrowings, must remain equal to at least 300% of all borrowings, as set
forth in the Investment Company Act.  Interest on borrowed money is an
expense the Fund would not otherwise incur, so that it can have substantially
reduced net investment income during periods of substantial borrowings.  The
Fund's ability to borrow money from banks subject to the 300% asset coverage
requirement is a fundamental policy.

      The Fund can also borrow to finance repurchases and/or tenders of its
shares and can also borrow for temporary purposes in an amount not exceeding
5% of the value of the Fund's total assets.  Any investment gains made with
the proceeds obtained from borrowings in excess of interest paid on the
borrowings will cause the net income per share or the net asset value per
share of the Fund's shares to be greater than would otherwise be the case.
On the other hand, if the investment performance of the securities purchased
fails to cover their cost (including any interest paid on the money borrowed)
to the Fund, then the net income per share or net asset value per share of
the Fund's shares will be less than would otherwise have been the case.  This
speculative factor is known as "leverage."


      Although such borrowings would therefore involve additional risk to the
Fund, the Fund will only borrow if such additional risk of loss of principal
is considered by the Manager to be appropriate in relation to the Fund's
primary investment objective of high current income consistent with
preservation of capital.  The Manager will make this determination by
examining both the market for securities in which the Fund invests and
interest rates in general to ascertain that the climate is sufficiently
stable to warrant borrowing.

Investment in Other Investment Companies.

      The Fund can also invest in the securities of other investment
companies, which can include open-end funds, closed-end funds and unit
investment trusts, subject to the limits set forth in the Investment Company
Act that apply to those types of investments.  For example, the Fund can
invest in Exchange-Traded Funds, which are typically open-end funds or unit
investment trusts, listed on a stock exchange.  The Fund might do so as a way
of gaining exposure to the segments of the equity or fixed-income markets
represented by the Exchange-Traded Funds' portfolio, at times when the Fund
may not be able to buy those portfolio securities directly.

      Investing in another investment company may involve the payment of
substantial premiums above the value of such investment company's portfolio
securities and is subject to limitations under the Investment Company Act.
The Fund does not intend to invest in other investment companies unless the
Manager believes that the potential benefits of the investment justify the
payment of any premiums or sales charges.  As a shareholder of an investment
company, the Fund would be subject to its ratable share of that investment
company's expenses, including its advisory and administration expenses.  The
Fund does not anticipate investing a substantial amount of its net assets in
shares of other investment companies.


Portfolio Turnover


      Because the Fund will actively use trading to benefit from short-term
yield disparities among different issues of fixed-income securities or
otherwise to achieve its investment objective and policies, the Fund can be
subject to a greater degree of portfolio turnover than might be expected from
investment companies which invest substantially all of their assets on a
long-term basis.  The Fund cannot accurately predict its portfolio turnover
rate, but it is anticipated that its annual turnover rate generally will not
exceed 300% (excluding turnover of securities having a maturity of one year
or less).

      The Manager will monitor the Fund's tax status under the Internal
Revenue Code during periods in which the Fund's annual turnover rate exceeds
100%.  Higher portfolio turnover results in increased Fund expenses,
including brokerage commissions, dealer mark-ups and other transaction costs
on the sale of securities and on the reinvestment in other securities.  To
the extent that increased portfolio turnover results in sales of securities
held less than three months, the Fund's ability to qualify as a "regulated
investment company" under the Internal Revenue Code can be affected.


Defensive Strategies


      There can be times when, in the Manager's judgment, conditions in the
securities markets would make pursuing the Fund's primary investment strategy
inconsistent with the best interests of its shareholders.  At such times, the
Fund may employ alternative strategies primarily seeking to reduce
fluctuations in the value of the Fund's assets.  In implementing these
defensive strategies, the Fund can invest all or any portion of its assets in
nonconvertible high-grade debt securities, or U.S. government and agency
obligations.  The Fund can also hold a portion of its assets in cash or cash
equivalents.  It is impossible to predict when, or for how long, alternative
strategies will be utilized.


Effects of Interest Rate Changes


      During periods of falling interest rates, the values of outstanding
long term fixed-income securities generally rise.  Conversely, during periods
of rising interest rates, the values of such securities generally decline.
The magnitude of these fluctuations will generally be greater for securities
with longer maturities.  If the Manager's expectation of changes in interest
rates or its evaluation of the normal yield relationships in the fixed-income
markets proves to be incorrect, the Fund's income, net asset value and
potential capital gain can be decreased or its potential capital loss can be
increased.


      Although changes in the value of the Fund's portfolio securities
subsequent to their acquisition are reflected in the net asset value of the
Fund's shares, such changes will not affect the income received by the Fund
from such securities.  The dividends paid by the Fund will increase or
decrease in relation to the income received by the Fund from its investments,
which will in any case be reduced by the Fund's expenses before being
distributed to the Fund's shareholders.


INVESTMENT RESTRICTIONS


      The Fund has adopted the following investment restrictions, which
together with its investment objectives, are fundamental policies changeable
only with the approval of the holders of a "majority" of the Fund's
outstanding voting securities, defined in the Investment Company Act as the
affirmative vote of the lesser of (a) more than 50% of the outstanding shares
of the Fund, or (b) 67% or more of the shares present or represented by proxy
at a meeting if more than 50% of the Fund's outstanding shares are
represented at the meeting in person or by proxy.  A policy is not a
fundamental policy unless this Prospectus or the Statement of Additional
Information says that it is.  The Fund's Board of Trustees can change
non-fundamental policies, unless otherwise stated, without shareholder
approval.  Unless it is specifically stated that a percentage restriction
applies on an ongoing basis, it applies only at the time the Fund makes an
investment, and the Fund need not sell securities to meet the percentage
limits if the value of the investment increases in proportion to the size of
the Fund.  Under these restrictions, the Fund will not do any of the
following:


o     As to 75% of its total assets, the Fund will not invest in securities
       of any one issuer (other than the United States government, its
       agencies or instrumentalities) if after any such investment either (a)
       more than 5% of the Fund's total assets would be invested in the
       securities of that issuer, or (b) the Fund would then own more than
       10% of the voting securities of that issuer;

o     The Fund will not concentrate investments to the extent of 25% or more
       of its total assets in securities of issuers in the same industry;
       provided that this limitation shall not apply with respect to
       investments in U.S. government securities;

o     The Fund will not make loans except through (a) the purchase of debt
       securities in accordance with its investment objectives and policies;
       (b) the lending of portfolio securities as described above; or (c) the
       acquisition of securities subject to repurchase agreements;

o     The Fund will not borrow money, except in conformity with the
       restrictions stated above under "Borrowing";

o     The Fund will not pledge, hypothecate, mortgage or otherwise encumber
       its assets, except to secure permitted borrowings or for the escrow
       arrangements contemplated in connection with the use of Hedging
       Instruments;

o     The Fund will not participate on a joint or joint and several basis in
       any securities trading account;

o     The Fund will not invest in companies for the purpose of exercising
       control or management thereof;

o     The Fund will not make short sales of securities or maintain a short
       position, unless at all times when a short position is open it owns an
       equal amount of such securities or by virtue of ownership of other
       securities has the right, without payment of any further
       consideration, to obtain an equal amount of the securities sold short
       ("short sales against the box").  Because changes in federal income
       tax laws would not enable the Fund to defer realization of gain or
       loss for federal income tax purposes, short sales against the box
       therefore would not be used by the Fund;

o     The Fund will not invest in (a) real estate, except that it can
       purchase and sell securities of companies which deal in real estate or
       interests therein; (b) commodities or commodity contracts (except that
       the Fund can purchase and sell hedging instruments whether or not they
       are considered to be a commodity or commodity contract); or (c)
       interests in oil, gas or other mineral exploration or development
       programs;

o     The Fund will not act as an underwriter of securities, except insofar
       as the Fund might be deemed to be an underwriter for purposes of the
       Securities Act of 1933 in the resale of any securities held for its
       own portfolio;

o     The Fund will not purchase securities on margin, except that the Fund
       can make margin deposits in connection with any of the Hedging
       Instruments it can use; or

o     The Fund will not issue "senior securities," but this does not prohibit
       certain investment activities for which assets of the Fund are
       designated as segregated, or margin, collateral, or escrow
       arrangements are established, to cover the related obligations.
       Examples of those activities include borrowing money, reverse
       repurchase agreements, delayed-delivery agreements and when-issued
       arrangements for portfolio securities transactions and contracts to
       buy or sell derivatives, hedging instruments or options or futures.

5.    The shares of beneficial interest of the Fund, $.01 par value per share
         (the "shares"), are listed and traded on The New York Stock Exchange
         (the "NYSE").  The following table sets forth for the shares for the
         periods indicated: (a) the per share high sales price on the NYSE,
         the net asset value per share as of the last day of the week
         immediately preceding such day and the premium or discount
         (expressed as a percentage of net asset value) represented by the
         difference between such high sales price and the corresponding net
         asset value and (b) the per share low sales price on the NYSE, the
         net asset value per share as of the last day of the week immediately
         preceding such day and the premium or discount (expressed as a
         percentage of net asset value) represented by the difference between
         such low sales price and the corresponding net asset value.

               Market Price High;(1)              Market Price Low;(1)
               NAV and Premium/                   NAV and Premium/
Ended          Discount That Day(2)               Discount That Day(2)
- --------       ----------------------------       ----------------------------


1/31/01        Market: $8.74                      Market: $7.60
               NAV: $9.06                         NAV: $8.61
               Premium//Discount: -3.53%          Premium//Discount: -11.73%

4/30/01        Market: $8.63                      Market: $8.63
               NAV: $8.59                         NAV: $8.59
               Premium//Discount: 0.45%           Premium//Discount: 0.45%

7/31/01        Market: $8.93                      Market: $8.90
               NAV: $8.42                         NAV: $8.42
               Premium//Discount: 6.00%           Premium//Discount: 5.64 %

10/31/01       Market: $8.08                      Market: $8.01
               NAV: $8.37                         NAV: $8.37
               Premium//Discount: -3.41%          Premium//Discount: -4.25%

1/31/02        Market: $8.91                      Market: $8.88
               NAV: $8.42                         NAV: $8.42
               Premium//Discount: 5.79%           Premium//Discount: 5.43%


4/30/02        Market: $8.15                      Market: $8.09
               NAV: $8.47                         NAV: $8.47
               Premium//Discount: -3.72%          Premium//Discount: -4.49%

7/31/02        Market: $7.80                      Market: $7.66
               NAV: $8.16                         NAV: $8.16
               Premium//Discount: -4.41%          Premium//Discount: -6.13%

10/31/02       Market: $7.40                      Market: $7.33
               NAV: $8.17                         NAV: $8.17
               Premium//Discount: -9.42%          Premium//Discount: -10.28%

1/31/03        Market: $7.92                      Market: $7.86
               NAV: $8.52                         NAV: $8.52
               Premium//Discount: -7.04%          Premium//Discount: -7.75%

- ---------------
1.  As reported by the NYSE.
2.  The Fund's computation of net asset value (NAV) is as of the close of
trading on the last day of the week immediately preceding the day for which
the high and low market price is reported and the premium or discount
(expressed as a percentage of net asset value) is calculated based on the
difference between the high or low market price and the corresponding net
asset value for that day, divided by the net asset value.

      The Board of Trustees of the Fund has determined that it could be in
the interests of Fund shareholders for the Fund to take action to attempt to
reduce or eliminate a market value discount from net asset value.  To that
end, the Fund could, from time to time, either repurchase shares in the open
market or, subject to conditions imposed from time to time by the Board, make
a tender offer for a portion of the Fund's shares at their net asset value
per share.  Subject to the Fund's fundamental policy with respect to
borrowings, the Fund could incur debt to finance repurchases and/or tenders.
Interest on any such borrowings will reduce the Fund's net income.  In
addition, the acquisition of shares by the Fund will decrease the total
assets of the Fund and therefore will have the effect of increasing the
Fund's expense ratio.  If the Fund must liquidate portfolio securities to
purchase shares tendered, the Fund could be required to sell portfolio
securities for other than investment purposes and could realize gains and
losses.


      In addition to open-market share purchases and tender offers, the Board
could also seek shareholder approval to convert the Fund to an open-end
investment company if the Fund's shares trade at a substantial discount.  If
the Fund's shares have traded on the NYSE at an average discount from net
asset value of more than 10%, determined on the basis of the discount as of
the end of the last trading day in each week during the period of 12 calendar
weeks ending October 31 in such year, the Trustees will consider recommending
to shareholders a proposal to convert the Fund to an open-end company.  If
during a year in which the Fund's shares trade at the average discount
stated, and for the period described, in the preceding sentence the Fund also
receives written requests from the holders of 10% or more of the Fund's
outstanding shares that a proposal to convert to an open end company be
submitted to the Fund's shareholders, within six months the Trustees will
submit a proposal to the Fund's shareholders, to the extent consistent with
the Investment Company Act, to amend the Fund's Declaration of Trust to
convert the Fund from a closed-end to an open-end investment company.  If the
Fund converted to an open-end investment company, it would be able
continuously to issue and offer its shares for sale, and each share of the
Fund could be tendered to the Fund for redemption at the option of the
shareholder, at a redemption price equal to the current net asset value per
share.  To meet such redemption request, the Fund could be required to
liquidate portfolio securities.  Its shares would no longer be listed on the
NYSE.  The Fund cannot predict whether any repurchase of shares made while
the Fund is a closed-end investment company would decrease the discount from
net asset value at which the shares trade.  To the extent that any such
repurchase decreased the discount from net asset value to an amount below 10%
during the measurement period described above, the Fund would not be required
to submit to shareholders a proposal to convert the Fund to an open-end
investment company.


Item 9.  Management


            1(a).  The Fund is governed by a Board of Trustees, which is
responsible under Massachusetts law for protecting the interests of
shareholders.  The Trustees meet periodically throughout the year to oversee
the Fund's activities, review its performance, and review the actions of the
Manager.  The Fund is required to hold annual shareholder meetings for the
election of trustees and the ratification of its independent auditors.  The
Fund can also hold shareholder meetings from time to time for other important
matters, and shareholders have the right to call a meeting to remove a
Trustee or to take other action described in the Fund's Declaration of Trust.

            1(b).  The Manager, a Colorado corporation with its principal
offices at 498 Seventh Ave., New York, New York 10018, acts as investment
advisor for the Fund under an investment advisory agreement (the "Advisory
Agreement") under which it provides ongoing investment advice and conducts
the investment operations of the Fund, including purchases and sales of its
portfolio securities, under the general supervision and control of the
Trustees of the Fund.  The Manager also acts as accounting agent for the
Fund. The Manager is wholly-owned by Oppenheimer Acquistion Corp., a holding
company controlled by Massachusetts Mutual Life Insurance Company.

      The Manager has operated as an investment advisor since January 1960.
The Manager and its subsidiaries and affiliates managed more than $120
billion in assets as of December 31, 2002, including other Oppenheimer funds
with more than 6.3 million shareholder accounts.  The Manager is located at
498 Seventh Avenue, New York, New York 10018.

            The Manager provides office space and investment advisory
services for the Fund and pays all compensation of those Trustees and
officers of the Fund who are affiliated persons of the Manager.  Under the
Advisory Agreement, the Fund pays the Manager an advisory fee computed and
paid weekly at an annual rate of 0.65 of 1% of the net assets of the Fund at
the end of that week.  During the fiscal years ended October 31,   2000, 2001
and 2002 the Fund paid management fees to the   Manager of $1,761,032,
$1,634,705 and $1,583,420, respectively.  The Fund incurred approximately
$45,364 in expenses for the fiscal year ended October 31, 2002 for services
provided by Shareholder Financial Services, Inc., a subsidiary of the Manager
that acts as transfer agent, shareholder servicing agent and dividend paying
agent for the Fund.

      Under the Advisory Agreement, the Fund pays certain of its other costs
not paid by the Manager, including:
(a)   brokerage and commission expenses,
(b)   federal, state, local and foreign taxes, including issue and transfer

          taxes, incurred by or levied on the Fund,
(c)   interest charges on borrowings,

(d)   the organizational and offering expenses of the Fund, whether or not
          advanced by the Manager,

(e)   fees and expenses of registering the shares of the Fund under the
          appropriate federal securities laws and of qualifying shares of the
          Fund under applicable state securities laws,
(f)   fees and expenses of listing and maintaining the listings of the Fund's
          shares on any national securities exchange,
(g)   expenses of printing and distributing reports to shareholders,
(h)   costs of shareholder meetings and proxy solicitation,
(i)   charges and expenses of the Fund's custodian bank and Registrar,
          Transfer and Dividend Disbursing Agent,

(j)   compensation of the Fund's Trustees who are not interested persons of
          the Manager,

(k)   legal and auditing expenses,
(l)   the cost of certificates representing the Fund's shares,
(m)   costs of stationery and supplies, and
(n)   insurance premiums.


      The Manager has advanced certain of the Fund's organizational and
offering expenses, which were repaid by the Fund.  There is no expense
limitation provision.

         Each year, the Board of Trustees, including a majority of the
Independent Trustees, is required to approve the renewal of the investment
advisory agreement. The Investment Company Act requires that the Board
request and evaluate and the Manager provide such information as may be
reasonably necessary to evaluate the terms of the investment advisory
agreement.  The Board employs an independent consultant to prepare a report
that provides such information as the Board requests for this purpose.

      The Board reviewed the foregoing information in arriving at its
decision to renew the investment advisory agreement.  Among other factors,
the Board considered:

o     The nature, cost, and quality of the services provided to the Fund and
         its shareholders;
o     The profitability of the Fund to the Manager;

o     The investment performance of the Fund in comparison to regular market
         indices;

o     Economies of scale that may be available to the Fund from the Manager;
o     Fees paid by other mutual funds for similar services;
o     The value and quality of any other benefits or services received by the

         Fund from its relationship with the Manager; and
o     The direct and indirect benefits the Manager received from its

         relationship with the Fund.  These included services provided by the
         Transfer Agent, and brokerage and soft dollar arrangements
         permissible under Section 28(e) of the Securities Exchange Act.


      The Board considered that the Manager must be able to pay and retain
high quality personnel at competitive rates to provide services to the Fund.
The Board also considered that maintaining the financial viability of the
Manager is important so that the Manager will be able to continue to provide
quality services to the Fund and its shareholders in adverse times.  The
Board also considered the investment performance of other mutual funds
advised by the Manager. The Board is aware that there are alternatives to the
use of the Manager.

      These matters were also considered by the Independent Trustees, meeting
separately from the full Board with experienced Counsel to the Fund who
assisted the Board in its deliberations.  The Fund's Counsel is independent
of the Manager within the meaning and intent of the SEC Rules regarding the
independence of counsel.

      After careful deliberation, the Board of Trustees concluded that it was
in the best interest of shareholders to continue the investment advisory
agreement for another year. In arriving at a decision, the Board did not
single out any one factor or group of factors as being more important than
other factors, but considered all factors together.  The Board judged the
terms and conditions of the investment advisory agreement, including the
investment advisory fee, in light of all of the surrounding circumstances.

            1(c).  The Portfolio managers of the Fund are Arthur Steinmetz
and Caleb Wong.  Mr. Steinmetz is a Vice President of the Fund and a Senior
Vice President of the Manager and Mr. Wong is a Vice President of both the
Fund and the Manager.  Messrs. Steinmetz and Wong have been the persons
principally responsible for the day-to-day management of the Trust's
portfolio since February 1, 1999.  Prior to February 1999, Mr. Steinmetz
served as a portfolio manager and officer of other Oppenheimer funds.  Mr.
Wong worked on fixed-income quantitative research and risk management for the
Manager since July 1996, prior to which we was enrolled in the Ph.D. program
for Economics as the University of Chicago. Other members of the Manager's
fixed-income portfolio department, particularly portfolio analysts, traders
and other portfolio managers provide the Fund's portfolio managers with
support in managing the Fund's portfolio.


            1(d). Inapplicable.


            1(e).   The  JPMorgan Chase Bank, 4 Chase MetroTech Center,
Brooklyn, New York, 11245 acts as the custodian bank for the Fund's assets
held in the United States.  The Manager and its affiliates have banking
relationships with the custodian bank.  The Manager has represented to the
Fund that its banking relationships with the custodian bank have been and
will continue to be unrelated to and unaffected by the relationship between
the Fund and the custodian bank.  It will be the practice of the Fund to deal
with the custodian bank in a manner uninfluenced by any banking relationship
the custodian bank may have with the Manager and its affiliates.  Rules
adopted under the Investment Company Act permit the Fund to maintain its
securities and cash in the custody of certain eligible banks and securities
depositories.  Pursuant to those Rules, the Fund's portfolio of securities
and cash, when invested in foreign securities, will be held in foreign banks
and securities depositories approved by the Trustees of the Fund in
accordance with the rules of the Securities and Exchange Commission.

      Shareholder Financial Services, Inc. ("SFSI"), a subsidiary of the
Manager, acts as primary transfer agent, shareholder servicing agent and
dividend paying agent for the Fund.  SFSI is paid an agreed upon fee for each
account plus out-of-pocket costs and expenses.  United Missouri Trust Company
of New York acts as co-transfer agent and co-registrar with SFSI to provide
such services as SFSI may request. KPMG LLP are the independent auditors of
the Fund. They audit the Fund's financial statements and perform other
related audit services.  They also act as auditors for certain other funds
advised by the Manager and its affiliates.


      1(f).   See 1(b) above.

      1(g).   Inapplicable.

      2.      Inapplicable.


      3.      None as of February 25, 2003.


Item 10.  Capital Stock, Long-Term Debt, and Other Securities.

      1.  The Fund is authorized to issue an unlimited number of shares of
beneficial interest, $.01 par value.  The Fund's shares have no preemptive,
conversion, exchange or redemption rights.  Each share has equal voting,
dividend, distribution and liquidation rights.  All shares outstanding are,
and, when issued, those offered hereby will be, fully paid and
nonassessable.  Shareholders are entitled to one vote per share.  All voting
rights for the election of Trustees are noncumulative, which means that the
holders of more than 50% of the shares can elect 100% of the Trustees then
nominated for election if they choose to do so and, in such event, the
holders of the remaining shares will not be able to elect any Trustees.
Under the rules of the NYSE applicable to listed companies, the Fund is
required to hold an annual meeting of shareholders in each year.

      Under Massachusetts law, under certain circumstances shareholders could
be held personally liable for the obligations of the Fund.  However, the
Declaration of Trust disclaims shareholder liability for actions or
obligations of the Fund and requires that notice of such disclaimer be given
in each agreement, obligation or instrument entered into or executed by the
Fund.  The Declaration of Trust provides for indemnification by the Fund for
all losses and expenses of any shareholder held personally liable for
obligations of the Fund.  Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is limited to circumstances in which
the Fund would be unable to meet its obligations.  The likelihood of such
circumstances is remote.

      Pursuant to the Trust's Dividend Reinvestment and Cash Purchase Plan
(the "Plan"), all dividends and capital gains distributions ("Distributions")
declared by the Trust will be automatically reinvested in additional full and
fractional shares of the Trust ("shares") unless (i) a shareholder elects to
receive cash or (ii) shares are held in nominee name, in which event the
nominee should be consulted as to participation in the Plan.  Shareholders
that participate in the Plan ("Participants") may, at their option, make
additional cash investments in shares, semi-annually in amounts of at least
$100, through payment to Shareholder Financial Services, Inc., the agent for
the Plan (the "Agent"), and a service fee of $0.75.

      Depending upon the circumstances hereinafter described, Plan shares
will be acquired by the Agent for the Participant's account through receipt
of newly issued shares or the purchase of outstanding shares on the open
market.  If the market price of shares on the relevant date (normally the
payment date) equals or exceeds their net asset value, the Agent will ask the
Trust for payment of the Distribution in additional shares at the greater of
the Trust's net asset value determined as of the date of purchase or 95% of
the then-current market price.  If the market price is lower than net asset
value, the Distribution will be paid in cash, which the Agent will use to buy
shares on The New York Stock Exchange (the "NYSE"), or otherwise on the open
market to the extent available.  If the market price exceeds the net asset
value before the Agent has completed its purchases, the average purchase
price per share paid by the Agent may exceed the net asset value, resulting
in fewer shares being acquired than if the Distribution had been paid in
shares issued by the Trust.

      Participants may elect to withdraw from the Plan at any time and
thereby receive cash in lieu of shares by sending appropriate written
instructions to the Agent.  Elections received by the Agent will be effective
only if received more than ten days prior to the record date for any
Distribution; otherwise, such termination will be effective shortly after the
investment of such Distribution with respect to any subsequent Distribution.
Upon withdrawal from or termination of the Plan, all shares acquired under
the Plan will remain in the Participant's account unless otherwise
requested.  For full shares, the Participant may either: (1) receive without
charge a share certificate for such shares; or (2) request the Agent (after
receipt by the Agent of signature guaranteed instructions by all registered
owners) to sell the shares acquired under the Plan and remit the proceeds
less any brokerage commissions and a $2.50 service fee.  Fractional shares
may either remain in the Participant's account or be reduced to cash by the
Agent at the current market price with the proceeds remitted to the
Participant.  Shareholders who have previously withdrawn from the Plan may
rejoin at any time by sending written instructions signed by all registered
owners to the Agent.

      There is no direct charge for participation in the Plan; all fees of
the Agent are paid by the Trust.  There are no brokerage charges for shares
issued directly by the Trust.  However, each Participant will pay a pro rata
share of brokerage commissions incurred with respect to open market purchases
of shares to be issued under the Plan.  Participants will receive tax
information annually for their personal records and to assist in federal
income tax return preparation.  The automatic reinvestment of Distributions
does not relieve Participants of any income tax that may be payable on
Distributions.

      The Plan may be terminated or amended at any time upon 30 days' prior
written notice to Participants which, with respect to a Plan termination,
must precede the record date of any Distribution by the Trust.  Additional
information concerning the Plan may be obtained by shareholders holding
shares registered directly in their names by writing the Agent, Shareholder
Financial Services, Inc., P.O. Box 173673, Denver, CO, 80217-3673 or by
calling 1.800.647.7374.  Shareholders holding shares in nominee name should
contact their brokerage firm or other nominee for more information.


      The Fund presently has provisions in its Declaration of Trust and
By-Laws (together, the "Charter Documents") which could have the effect of
limiting (i) the ability of other entities or persons to acquire control of
the Fund, (ii) the Fund's freedom to engage in certain transactions or (iii)
the ability of the Fund's Trustees or shareholders to amend the Charter
Documents or effect changes in the Fund's management.  Those provisions of
the Charter Documents may be regarded as "anti-takeover" provisions.
Specifically, under the Fund's Declaration of Trust, the affirmative vote of
the holders of not less than two thirds (66-2/3%) of the Fund's shares
outstanding and entitled to vote is required to authorize the consolidation
of the Fund with another entity, a merger of the Fund with or into another
entity (except for certain mergers in which the Fund is the successor), a
sale or transfer of all or substantially all of the Fund's assets, the
dissolution of the Fund, the conversion of the Fund to an open-end company,
and any amendment of the Fund's Declaration of Trust that would affect any of
the other provisions requiring a two-thirds vote.  However, a "majority"
shareholder vote, as defined in the Charter Documents, shall be sufficient to
approve any of the foregoing transactions that have been recommended by
two-thirds of the Trustees.  Notwithstanding the foregoing, if a corporation,
person or entity is directly, or indirectly through its affiliates, the
beneficial owner of more than 5% of the outstanding shares of the Fund, the
affirmative vote of 80% (which is higher than that required under the
Investment Company Act) of the outstanding shares of the Fund is required
generally to authorize any of the following transactions or to amend the
provisions of the Declaration of Trust relating to transactions involving:
(i) a merger or consolidation of the Fund with or into any such corporation
or entity, (ii) the issuance of any securities of the Fund to any such
corporation, person or entity for cash; (iii) the sale, lease or exchange of
all or any substantial part of the assets of the Fund to any such
corporation, entity or person (except assets having an aggregate market value
of less than $1,000,000); or (iv) the sale, lease or exchange to the Fund, in
exchange for securities of the Fund, of any assets of any such corporation,
entity or person (except assets having an aggregate fair market value of less
than $1,000,000).  If two-thirds of the Board of Trustees has approved a
memorandum of understanding with such beneficial owner, however, a majority
shareholder vote will be sufficient to approve the foregoing transactions.
Reference is made to the Charter Documents of the Fund, on file with the
Securities and Exchange Commission, for the full text of these provisions.


      2.  Inapplicable.

      3.  Inapplicable.


      4.  The Fund qualified for treatment as, and elected to be, a regulated
investment company ("RIC") under Subchapter M of the Internal Revenue Code
for its taxable year ended October 31, 2002, and intends to continue to
qualify as a RIC for each subsequent taxable year.  However, the Fund
reserves the right not to qualify under Subchapter M as a RIC in any year or
years.


      For each taxable year that the Fund qualifies for treatment as a RIC,
the Fund (but not its shareholders) will not be required to pay federal
income tax.  Shareholders will normally have to pay federal income taxes, and
any state income taxes, on the dividends and distributions they receive from
the Fund.  Such dividends and distributions derived from net investment
income or short-term capital gains are taxable to the shareholder as ordinary
dividend income regardless of whether the shareholder receives such
distributions in additional shares or in cash.  Since the Fund's income is
expected to be derived primarily from interest rather than dividends, only a
small portion, if any, of such dividends and distributions is expected to be
eligible for the federal dividends-received deduction available to
corporations.  The Fund does not anticipate that any portion of its dividends
or distributions will qualify for pass-through treatment as "exempt-interest
dividends" since less than 50% of its assets is permitted to be invested in
municipal obligations.

      Long-term or short-term capital gains may be generated by the sale of
portfolio securities and by transactions in options and futures contracts.
Distributions of long-term capital gains, if any, are taxable to shareholders
as long-term capital gains regardless of how long a shareholder has held the
Fund's shares and regardless of whether the distribution is received in
additional shares or in cash.  For federal income tax purposes, if a capital
gain distribution is received with respect to shares held for six months or
less, any loss on a subsequent sale or exchange of such shares will be
treated as long-term capital loss to the extent of such long-term capital
gain distribution.  Capital gains distributions are not eligible for the
dividends-received deduction.

      Any dividend or capital gains distribution received by a shareholder
from an investment company will have the effect of reducing the net asset
value of the shareholder's stock in that company by the exact amount of the
dividend or capital gains distribution.  Furthermore, capital gains
distributions and dividends are subject to federal income taxes.  If prior
distributions made by the Fund must be re-characterized as a non-taxable
return of capital at the end of the fiscal year as a result of the effect of
the Fund's investment policies, they will be identified as such in notices
sent to shareholders.

      The tax treatment of listed put and call options written or purchased
by the Fund on debt securities and of future contracts entered into by the
Fund will be governed by Section 1256 of the Internal Revenue Code.   Absent
a tax election to the contrary, each such position held by the Fund will be
marked-to-market (i.e., treated as if it were closed out) on the last
business day of each taxable year of the Fund, and all gain or loss
associated with transactions in such positions will be treated as 60%
long-term capital gain or loss and 40% short-term capital gain or loss.
Positions of the Fund which consist of at least one debt security and at
least one option or futures contract which substantially diminishes the
Fund's risk of loss with respect of such debt security could be treated as
"mixed straddles" which are subject to the straddle rules of Section 1092 of
the Code, the operation of which may cause deferral of losses, adjustments in
the holding periods of debt securities and conversion of short-term capital
losses into long-term capital losses.  Certain tax elections exist for mixed
straddles which reduce or eliminate the operation of the straddle rules.  The
Fund will monitor its transactions in options and futures contracts and may
make certain tax elections in order to mitigate the effect of these rules and
prevent disqualification of the Fund as a regulated investment company under
Subchapter M of the Code.  Such tax election may result in an increase in
distribution of ordinary income (relative to long-term capital gains) to
shareholders.


      The Internal Revenue Code requires that a holder (such as the Fund) of
a zero coupon security accrue a portion of the discount at which the security
was purchased as income each year even though the Fund receives no interest
payment in cash on the security during the year.  As an investment company,
the Fund must pay out substantially all of its net investment income each
year.  Accordingly, the Fund may be required to pay out as an income
distribution each year an amount which is greater than the total amount of
cash interest the Fund actually received.  Such distributions will be made
from the cash assets of the Fund or by liquidation of portfolio securities,
if necessary.  If a distribution of cash necessitates the liquidation of
portfolio securities, the Manager will select which securities to sell.  The
Fund may realize a gain or loss from such sales.  In the event the Fund
realizes net capital gains from such transactions, its shareholders may
receive a larger capital gain distribution than they would in the absence of
such transactions.


      It is the Fund's present policy, which may be changed by the Board of
Trustees, to pay monthly dividends to shareholders from net investment income
of the Fund.  The Fund intends to distribute all of its net investment income
on an annual basis.  The Fund will distribute all of its net realized
long-term and short-term capital gains, if any, at least once per year.  The
Fund may, but is not required to, make such distributions on a more frequent
basis to the extent permitted by applicable law and regulations.


      Under the Internal Revenue Code, by December 31 each year, the Fund
must distribute a specified minimum percentage (currently 98%) of its taxable
investment income earned from January 1 through December 31 of that year and
98% of its capital gains realized in the period from November 1 of the prior
year through October 31 of that year, or else the Fund must pay an excise tax
on amounts not distributed.  While it is presently anticipated that the Fund
will meet those requirements, the Fund's Board and the Manager might
determine in a particular year it would be in the best interests of the Fund
not to make such distributions at the mandated level and to pay the excise
tax which would reduce the amount available for distributions to
shareholders.  If the Fund pays a dividend in January which was declared in
the previous December to shareholders of record on a date in December, then
such dividend or distribution will be treated for tax purposes as being paid
in December and will be taxable to shareholders as if received in December.


      Under the Fund's Dividend Reinvestment Plan (the "Plan"), all of the
Fund's dividends and distributions to shareholders will be reinvested in full
and fractional shares.  With respect to distributions made in shares issued
by the Fund pursuant to the Plan, the amount of the distribution for tax
purposes is the fair market value of the shares issued on the reinvestment
date.  In the case of shares purchased on the open market, a participating
shareholder's tax basis in each share is its cost.  In the case of shares
issued by the Fund, the shareholder's tax basis in each share received is its
fair market value on the reinvestment date.

      Distributions of investment company taxable income to shareholders who
are nonresident alien individuals or foreign corporations will generally be
subject to a 30% United States withholding tax under provisions of the
Internal Revenue Code applicable to foreign individuals and entities, unless
a reduced rate of withholding or a withholding exemption is provided under an
applicable treaty.

            Under Section 988 of the Code, foreign currency gain or loss with
respect to foreign currency-denominated debt instruments and other foreign
currency-denominated positions held or entered into by the Fund will be
ordinary income or loss.  In addition, foreign currency gain or loss realized
with respect to certain foreign currency "hedging" transactions will be
treated as ordinary income or loss.


5.  The following information is provided as of February 25, 2003:


(1)                      (2)              (3)                  (4)
                                                               Amount
                                          Amount Held          Outstanding
                                          by Registrant        Exclusive of
                         Amount           or for its           Amount Shown
Title of Class           Authorized       Account              Under (3)
- --------------           ----------       -------------        ------------

Shares of                Unlimited        None                 29,229,920
Beneficial
Interest, $.01
par value


Item 11.  Defaults and Arrears on Senior Securities.

      Inapplicable.

Item 12.  Legal Proceedings.

      Inapplicable.

Item 13.  Table of Contents of the Statement of Additional Information.

      Reference is made to Item 15 of the Statement of Additional Information.






Oppenheimer Multi-Sector Income Trust


6803 South Tucson Way, Centennial, Colorado 80112

1.800.647.7374


Statement of Additional Information dated February 28, 2003

      This Statement of Additional Information is not a Prospectus.  This
document contains additional information about the Fund and supplements
information in the Prospectus dated February 28, 2003.  It should be read
together with the Prospectus, and the Registration Statement on Form N-2, of
which the Prospectus and this Statement of Additional Information are a part,
can be inspected and copied at public reference facilities maintained by the
Securities and Exchange Commission (the "SEC") in Washington, D.C. and
certain of its regional offices, and copies of such materials can be obtained
at prescribed rates from the Public Reference Branch, Office of Consumer
Affairs and Information Services, SEC, Washington, D.C., 20549.


TABLE OF CONTENTS

                                                                        Page

Investment Objectives and Policies......................................*
Management..............................................................
Control Persons and Principal Holders of Securities.....................
Investment Advisory and Other Services..................................
Brokerage Allocation and Other Practices................................
Tax Status .............................................................
Financial Statements....................................................


- -----------------
*See Prospectus







                                    PART B

         INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION

Item 14.  Cover Page.

            Reference is made to the preceding page.

Item 15.  Table of Contents.

            Reference  is made to the  preceding  page and to Items 16 through
23 of the Statement of Additional Information set forth below.

Item 16.  General Information and History.

            Inapplicable.

Item 17.  Investment Objectives and Policies.

            Reference is made to Item 8 of the Prospectus.

Item 18.   Management.


1., 2., 3., 5., 6., 7., 8., and 10.   The Board of Trustees does not have an
executive or investment committee. The Fund is governed by a Board of
Trustees, which is responsible for protecting the interests of shareholders
under Massachusetts law. The Trustees meet periodically throughout the year
to oversee the Fund's activities, review its performance, and review the
actions of the Manager. The Fund holds annual meetings of its shareholders
and may hold shareholder meetings from time to time on important matters, and
shareholders have the right to call a meeting to remove a Trustee or to take
other action described in the Fund's Declaration of Trust.

      The Board of Trustees has an Audit Committee, a Study Committee and a
Proxy Committee. The Audit Committee is comprised solely of Independent
Trustees. The members of the Audit Committee are Kenneth Randall (Chairman),
Benjamin Lipstein and Edward Regan.  The Audit Committee held five meetings
during the Fund's fiscal year ended October 31, 2002. The Audit Committee
provides the Board with recommendations regarding the selection of the Fund's
independent auditor. The Audit Committee also reviews the scope and results
of audits and the audit fees charged, reviews reports from the Fund's
independent auditor concerning the Fund's internal accounting procedures, and
controls and reviews reports of the Manager's internal auditor, among other
duties as set forth in the Committee's charter.

      The members of the Study Committee are Robert Galli (Chairman),
Elizabeth Moynihan and Joel Motley.  The Study Committee held eight meetings
during the Fund's fiscal year ended October 31, 2002. The Study Committee
evaluates and reports to the Board on the Fund's contractual arrangements,
including the Investment Advisory Agreement, transfer and shareholder service
agreements and custodian agreements as well as the policies and procedures
adopted by the Fund to comply with the Investment Company Act and other
applicable law, among other duties as set forth in the Committee's charter.

      The members of the Proxy Committee are Edward Regan (Chairman), Russell
Reynolds and Clayton Yeutter.  The Proxy Committee held one meeting during
the Fund's fiscal year ended October 31, 2002.  The Proxy Committee provides
the Board with recommendations for proxy voting and monitors proxy voting by
the Fund.

      Except Mr. Murphy, each of the Trustees is an "Independent Trustee," as
defined in the Investment Company Act.  Mr. Murphy is an "Interested
Trustee," because he is affiliated with the Manager by virtue of his
positions as an officer and director of the Manager, and as a shareholder of
its parent company.

      The Fund's Trustees and officers and their positions held with the Fund
and length of service in such position(s) and their principal occupations and
business affiliations during the past five years are listed in the chart
below. The information for the Trustees also includes the dollar range of
shares of the Fund as well as the aggregate dollar range of shares
beneficially owned in any of the Oppenheimer funds overseen by the Trustees.
All of the Trustees are also trustees or directors of the following publicly
offered Oppenheimer funds (referred to as "Board I Funds"):

Oppenheimer     AMT-Free    New    York
Municipals                              Oppenheimer Growth Fund
Oppenheimer California Municipal Fund   Oppenheimer International Growth Fund

                                        Oppenheimer  International  Small Company
Oppenheimer Capital Appreciation Fund   Fund

Oppenheimer Capital Preservation Fund   Oppenheimer Money Market Fund, Inc.
Oppenheimer Developing Markets Fund     Oppenheimer Multiple Strategies Fund
Oppenheimer Discovery Fund              Oppenheimer Multi-Sector Income Trust
Oppenheimer Emerging Growth Fund        Oppenheimer Multi-State Municipal Trust
Oppenheimer Emerging Technologies Fund  Oppenheimer Municipal Bond Fund
Oppenheimer Enterprise Fund             Oppenheimer Series Fund, Inc.
Oppenheimer Europe Fund                 Oppenheimer Trinity Core Fund
                                        Oppenheimer  Trinity  Large  Cap  Growth
Oppenheimer Global Fund                 Fund
Oppenheimer Global Growth & Income Fund Oppenheimer Trinity Value Fund
Oppenheimer  Gold  &  Special  Minerals
Fund                                    Oppenheimer U.S. Government Trust

                  -------------------------------------------------------------------

      In  addition  to being a  trustee
or director  of the Board I Funds,  Mr.
Galli is also a director  or trustee of
10    other     portfolios    in    the
OppenheimerFunds complex.


     Messrs. Murphy, Masterson,  Molleur,  Steinmetz, Wong, Vottiero, Wixted and
Zack, and Mses.  Bechtolt,  Feld and Ives and respectively hold the same offices
with one or more of the other Board I Funds as with the Fund. As of February 25,
2003,  the  Trustees and  officers of the Fund,  as a group,  owned of record or
beneficially  less than 1% of each  class of shares of the Fund.  The  foregoing
statement does not reflect  ownership of shares of the Fund held of record by an
employee  benefit  plan for  employees  of the  Manager,  other  than the shares
beneficially  owned under the plan by the officers of the Fund listed above.  In
addition,  each Independent  Trustee,  and his or her family members, do not own
securities of either the Manager of the Board I Funds or any person  directly or
indirectly controlling, controlled by or under common control with the Manager.

|X| Affiliated  Transactions and Material Business  Relationships.  Mr. Reynolds
has reported he has a controlling interest in The Directorship Group, Inc. ("The
Directorship Search Group"), a director recruiting firm that provided consulting
services to  Massachusetts  Mutual Life Insurance  Company  (which  controls the
Manager) for fees aggregating $247,500 from January 1, 2001 through December 31,
2002. Mr. Reynolds estimates that The Directorship Search Group will not provide
consulting  services to Massachusetts  Mutual Life Insurance  Company during the
calendar year 2003.

     The Independent  Trustees have unanimously  (except for Mr.  Reynolds,  who
abstained) determined that the consulting  arrangements between The Directorship
Search Group and  Massachusetts  Mutual Life Insurance Company were not material
business or  professional  relationships  that would  compromise  Mr.  Reynolds'
status  as an  Independent  Trustee.  Nonetheless,  to  assure  certainty  as to
determinations  of the Board and the  Independent  Trustees  as to matters  upon
which the Investment  Company Act or the rules thereunder  require approval by a
majority of Independent Trustees,  Mr. Reynolds will not be counted for purposes
of determining whether a quorum of Independent Trustees was present or whether a
majority of Independent Trustees approved the matter.

     The address of each  Trustee in the chart  below is 6803 South  Tucson Way,
Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his
or her resignation, retirement, death or removal.

         Independent Trustees

                  -------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Name,             Principal Occupation(s) During Past   Dollar      Aggregate
Position(s) Held  5                                                 Dollar
with Fund,        Ot                                                Range Of
Length of         HeYears;                                          Shares
Service,          Nuher Trusteeships/Directorships            of    Beneficially
Age               Culd by Trustee;                                  Owned in
                    mber of Portfolios in Fund Complex  Range ciallyAny of the
                    rrently Overseen by Trustee         Sharesin    Oppenheimer
                                                        Benefind    Funds
                                                        Owned       Overseen by
                                                        the Fu      Trustee

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

                                                                As of December 31,
                                                                       2002

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Clayton K.          Of Counsel (since 1993), Hogan & Hartson  $0         $50,001-$100,000
Yeutter, Chairman   (a law firm). Other directorships:
of the Board of     Weyerhaeuser Corp. (since 1999) and
Trustees since      Danielson Holding Corp. (since 2002);
2003,               formerly a director of Caterpillar, Inc.
Trustee since 1991  (1993-December 2002). Oversees 31
Age: 72             portfolios in the OppenheimerFunds
                    complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Robert G. Galli,  A trustee or director of other        $0          Over
Trustee since     Oppenheimer funds. Formerly Trustee
1993              (May 2000-2002) of Research
Age: 69           Foundation of AIMR (investment
                  research, non-profit) and Vice
                  Chairman (October 1995-December                   $100,000
                  1997) of the Manager. Oversees 41
                  portfolios in the OppenheimerFunds
                  complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Phillip A.        A director (since 1991) of the
Griffiths,        Institute for Advanced Study,
Trustee, since    Princeton, N.J., a director (since
1999              2001) of GSI Lumonics, a trustee
Age: 64           (since 1983) of Woodward Academy, a
                  Senior Advisor (since 2001) of The
                  Andrew W. Mellon Foundation. A
                  member of: the National Academy of
                  Sciences (since 1979), American       $0          Over
                  Academy of Arts and Sciences (since               $100,000
                  1995), American Philosophical
                  Society (since 1996) and Council on
                  Foreign Relations (since 2002).
                  Formerly a director of Bankers Trust
                  New York Corporation (1994-1999).
                  Oversees 31 portfolios in the
                  OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Benjamin          Professor Emeritus of Marketing,      $1-$10,000  Over
Lipstein,         Stern Graduate School of Business
Trustee since     Administration, New York University.
1988              Oversees 31 portfolios in the                     $100,000
Age: 79           OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Joel W. Motley,   Director (since 2002) Columbia
Trustee since     Equity Financial Corp.
2002              (privately-held financial adviser);
Age: 50           Managing Director (since 2002)
                  Carmona Motley, Inc. (privately-held
                  financial adviser); Formerly he held
                  the following positions: Managing
                  Director (January 1998-December       $0          $0
                  2001), Carmona Motley Hoffman Inc.
                  (privately-held financial adviser);
                  Managing Director (January
                  1992-December 1997), Carmona Motley
                  & Co. (privately-held financial
                  adviser). Oversees 31 portfolios in
                  the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Elizabeth B.      A director (since 2001 of Avatar      $0          $50,001-$100,000
Moynihan,         Holding Co. (real estate), author
Trustee since     and architectural historian; a
1992              trustee (since 1990) of the Freer
Age: 73           Gallery of Art and Arthur M. Sackler
                  Gallery of Smithsonian Institution.
                  Formerly Trustee of the National
                  Building Museum (1992-2000) and a
                  member of the Trustee Council
                  (2000-2002), a director (1996-2000)
                  of Mhhtab Bagh Research Project,
                  Agra , India (architectural history
                  research project). Oversees 31
                  portfolios in the OppenheimerFunds
                  complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Kenneth A.        A director of Dominion Resources,     $0          Over
Randall, Trustee  Inc. (electric utility holding
since 1988        company) and Prime Retail, Inc.
Age: 75           (real estate investment trust);
                  formerly a director of Dominion
                  Energy, Inc. (electric power and oil
                  & gas producer), President and Chief
                  Executive Officer of The Conference
                  Board, Inc. (international economic               $100,000
                  and business research) and a
                  director of Lumbermens Mutual
                  Casualty Company, American Motorists
                  Insurance Company and American
                  Manufacturers Mutual Insurance
                  Company. Oversees 31 portfolios in
                  the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Edward V. Regan,  President, Baruch College, CUNY; a    $0          $50,001-$100,000
Trustee since     director of RBAsset (real estate
1993              manager); a director of OffitBank;
Age: 72           formerly Trustee, Financial
                  Accounting Foundation (FASB and
                  GASB), Senior Fellow of Jerome Levy
                  Economics Institute, Bard College,
                  Chairman of Municipal Assistance
                  Corporation for the City of New
                  York, New York State Comptroller and
                  Trustee of New York State and Local
                  Retirement Fund. Oversees 31
                  investment companies in the
                  OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Russell S.        Chairman (since 1993) of The          $0          $10,001-$50,000
Reynolds, Jr.,    Directorship Search Group, Inc.
Trustee since     (corporate governance consulting and
1989              executive recruiting); a life
Age: 71           trustee of International House
                  (non-profit educational
                  organization), and a trustee (since
                  1996) of the Greenwich Historical
                  Society. Oversees 31 portfolios in
                  the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Donald W. Spiro,  Chairman Emeritus (since January      $0          Over
Vice Chairman of  1991) of the Manager. Formerly a
the Board of      director (January 1969-August 1999)
Trustees,         of the Manager. Oversees 31
Trustee since     portfolios in the OppenheimerFunds                $100,000
1988              complex.
Age: 77

- -------------------------------------------------------------------------------------


      The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New
York, NY 10018. Mr. Murphy serves for an indefinite term, until his
resignation, retirement, death or removal.


- -------------------------------------------------------------------------------------

                           Interested Trustee and Officer

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Name,             Principal Occupation(s) During Past   Dollar      Aggregate
                                                                    Dollar
                                                                    Range Of
                                                                    Shares
                                                                    Beneficially
                                                                    Owned in
                  5 Years;                              Range of    Any of the
Position(s) Held  Other Trusteeships/Directorships      Shares      Oppenheimer
with Fund,        Held by Trustee;                      BeneficiallyFunds
Length of Service Number of Portfolios in Fund Complex  Owned in    Overseen by
Age               Currently Overseen by Trustee         the Fund    Trustee

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

                                                                As of December 31,
                                                                       2002

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

John V. Murphy,   Chairman, Chief Executive Officer     $0              Over
President and     and director (since June 2001) and
Trustee,          President (since September 2000) of
Trustee since     the Manager; President and a
2001              director or trustee of other
Age: 53           Oppenheimer funds; President and a
                  director (since July 2001) of
                  Oppenheimer Acquisition Corp. (the
                  Manager's parent holding company)
                  and of Oppenheimer Partnership
                  Holdings, Inc. (a holding company
                  subsidiary of the Manager); a
                  director (since November 2001) of
                  OppenheimerFunds Distributor, Inc.
                  (a subsidiary of the Manager);
                  Chairman and a director (since July
                  2001) of Shareholder Services, Inc.
                  and of Shareholder Financial
                  Services, Inc. (transfer agent
                  subsidiaries of the Manager);
                  President and a director (since July
                  2001) of OppenheimerFunds Legacy
                  Program (a charitable trust program
                  established by the Manager); a
                  director of the investment advisory
                  subsidiaries of the Manager: OFI
                  Institutional Asset Management, Inc.
                  and Centennial Asset Management
                  Corporation (since November 2001),
                  HarbourView Asset Management
                  Corporation and OFI Private
                  Investments, Inc. (since July 2001);
                  President (since November 1, 2001)
                  and a director (since July 2001) of
                  Oppenheimer Real Asset Management,                  $100,000
                  Inc.; a director (since November
                  2001) of Trinity Investment
                  Management Corp. and Tremont
                  Advisers, Inc. (investment advisory
                  affiliates of the Manager);
                  Executive Vice President (since
                  February 1997) of Massachusetts
                  Mutual Life Insurance Company (the
                  Manager's parent company); a
                  director (since June 1995) of DLB
                  Acquisition Corporation (a holding
                  company that owns the shares of
                  David L. Babson & Company, Inc.);
                  formerly, Chief Operating Officer
                  (September 2000-June 2001) of the
                  Manager; President and trustee
                  (November 1999-November 2001) of MML
                  Series Investment Fund and
                  MassMutual Institutional Funds
                  (open-end investment companies); a
                  director (September 1999-August
                  2000) of C.M. Life Insurance
                  Company; President, Chief Executive
                  Officer and director (September
                  1999-August 2000) of MML Bay State
                  Life Insurance Company; a director
                  (June 1989-June 1998) of Emerald
                  Isle Bancorp and Hibernia Savings
                  Bank (a wholly-owned subsidiary of
                  Emerald Isle Bancorp). Oversees 69
                  portfolios in the OppenheimerFunds
                  complex.

- -------------------------------------------------------------------------------------


      The address of the officers in the chart below is as follows: for
Messrs. Steinmetz, Wong, Molleur and Zack and Ms. Feld, 498 Seventh Avenue,
New York, NY 10018, for Messrs. Masterson, Vottiero and Wixted and Mses.
Bechtolt and Ives, 6803 South Tucson Way, Centennial, CO 80112-3924. Each
officer serves for an annual term or until his or her earlier resignation,
retirement, death or removal.


- -------------------------------------------------------------------------------------

                                Officers of the Fund

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Name,                   Principal Occupation(s) During Past 5 Years
Position(s) Held with
Fund, Length of
Service,
Age

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Arthur P. Steinmetz,    Senior Vice President of the Manager (since March 1993) and
Vice President and      of HarbourView Asset Management Corporation (since March
Portfolio Manager       2000); an officer of 8 portfolios in the OppenheimerFunds
since                   complex.
Age:  44

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Caleb Wong, Vice        Vice President (since June 1999) of the Adviser; worked in
President and           fixed-income quantitative research and risk management for
Portfolio Manager       the Adviser (since July 1996); an officer of 1 portfolio in
since                   the OppenheimerFunds complex; formerly Assistant Vice
Age:  37                President of the Adviser (January 1997 - June 1999); before
                        joining the Adviser in July 1996 he was enrolled in the
                        Ph.D. program for Economics at the University of Chicago.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Brian W. Wixted,        Senior Vice President and Treasurer (since March 1999) of
Treasurer since 1999    the Manager; Treasurer (since March 1999) of HarbourView
Age: 43                 Asset Management Corporation, Shareholder Services, Inc.,
                        Oppenheimer Real Asset Management Corporation, Shareholder
                        Financial Services, Inc., Oppenheimer Partnership Holdings,
                        Inc., OFI Private Investments, Inc. (since March 2000),
                        OppenheimerFunds International Ltd. and Oppenheimer
                        Millennium Funds plc (since May 2000) and OFI Institutional
                        Asset Management, Inc. (since November 2000) (offshore fund
                        management subsidiaries of the Manager); Treasurer and
                        Chief Financial Officer (since May 2000) of Oppenheimer
                        Trust Company (a trust company subsidiary of the Manager);
                        Assistant Treasurer (since March 1999) of Oppenheimer
                        Acquisition Corp. and OppenheimerFunds Legacy Program
                        (since April 2000); formerly Principal and Chief Operating
                        Officer (March 1995-March 1999), Bankers Trust
                        Company-Mutual Fund Services Division. An officer of 85
                        portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Connie Bechtolt,        Assistant Vice President of the Manager  (since September
Assistant Treasurer     1998); formerly Manager/Fund Accounting (September
since 2002              1994-September 1998) of the Manager. An officer of 85
Age: 39                 portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Philip Vottiero,        Vice President/Fund Accounting of the Manager (since March
Assistant Treasurer     2002; formerly Vice President/Corporate Accounting of the
since 2002              Manager (July 1999-March 2002) prior to which he was Chief
Age: 39                 Financial Officer at Sovlink Corporation (April 1996-June
                        1999). An officer of 85 portfolios in the OppenheimerFunds
                        complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Robert G. Zack,                  Senior Vice President (since May 1985)
Secretary since 2001             and General Counsel (since February 2002)
Age: 54                          of the Manager; General Counsel and a
                                 director (since November 2001) of
                                 OppenheimerFunds Distributor, Inc.;
                                 Senior Vice President and General Counsel
                                 (since November 2001) of HarbourView
                                 Asset Management Corporation; Vice
                                 President and a director (since November
                                 2000) of Oppenheimer Partnership
                                 Holdings, Inc.; Senior Vice President,
                                 General Counsel and a director (since
                                 November 2001) of Shareholder Services,
                                 Inc., Shareholder Financial Services,
                                 Inc., OFI Private Investments, Inc.,
                                 Oppenheimer Trust Company and OFI
                                 Institutional Asset Management, Inc.;
                                 General Counsel (since November 2001) of
                                 Centennial Asset Management Corporation;
                                 a director (since November 2001) of
                                 Oppenheimer Real Asset Management, Inc.;
                                 Assistant Secretary and a director (since
                                 November 2001) of OppenheimerFunds
                                 International Ltd.; Vice President (since
                                 November 2001) of OppenheimerFunds Legacy
                                 Program; Secretary (since November 2001)
                                 of Oppenheimer Acquisition Corp.;
                                 formerly Acting General Counsel (November
                                 2001-February 2002) and Associate General
                                 Counsel (May 1981-October 2001) of the
                                 Manager; Assistant Secretary of
                                 Shareholder Services, Inc. (May
                                 1985-November 2001), Shareholder
                                 Financial Services, Inc. (November
                                 1989-November 2001); OppenheimerFunds
                                 International Ltd. and Oppenheimer
                                 Millennium Funds plc (October
                                 1997-November 2001). An officer of 85
                                 portfolios in the OppenheimerFunds
                                 complex.

- -------------------------------------------------------------------------------------

                                     C-1
- -------------------------------------------------------------------------------------

Katherine P. Feld,               Vice President and Senior Counsel (since
Assistant Secretary since 2001   July 1999) of the Manager; Vice President
Age: 44                          (since June 1990) of OppenheimerFunds
                                 Distributor, Inc.; Director, Vice
                                 President and Assistant Secretary (since
                                 June 1999) of Centennial Asset Management
                                 Corporation; Vice President (since 1997)
                                 of Oppenheimer Real Asset Management,
                                 Inc.; formerly Vice President and
                                 Associate Counsel of the Manager (June
                                 1990-July 1999). An officer of 85
                                 portfolios in the OppenheimerFunds
                                 complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Kathleen T. Ives,                Vice President and Assistant Counsel
Assistant Secretary since 2001   (since June 1998) of the Manager; Vice
Age: 37                          President (since 1999) of
                                 OppenheimerFunds Distributor, Inc.; Vice
                                 President and Assistant Secretary (since
                                 1999) of Shareholder Services, Inc.;
                                 Assistant Secretary (since December 2001)
                                 of OppenheimerFunds Legacy Program and
                                 Shareholder Financial Services, Inc.;
                                 formerly Assistant Vice President and
                                 Assistant Counsel of the Manager (August
                                 1997-June 1998); Assistant Counsel of the
                                 Manager (August 1994-August 1997). An
                                 officer of 85 portfolios in the
                                 OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Philip T. Masterson,    Vice President and Assistant Counsel of the Manager (since
Assistant Secretary     July 1998); formerly, an associate with Davis, Graham, &
since 2002              Stubbs LLP (January 1997-June 1998). An officer of 85
Age: 38                 portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Denis R. Molleur,       Vice President and Senior Counsel of the Manager (since
Assistant Secretary     July 1999); formerly a Vice President and Associate Counsel
since 2001              of the Manager (September 1995-July 1999). An officer of 82
Age: 45                 portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------


3., 4., 9., 11., and 12.  Inapplicable.

13. See Prospectus, Item 9.1(b).

14.                        The officers of the Fund and one of the Trustees
of the Fund (Mr. Murphy) who are affiliated with the Manager receive no
salary or fee from the Fund. The remaining Trustees of the Fund received the
compensation shown below from the Fund with respect to the Fund's fiscal year
ended October 31, 2002. The compensation from all 31 of the Board I Funds
(including the Fund) represents compensation received for serving as a
director, trustee or member of a committee (if applicable) of the boards of
those funds during the calendar year ended December 31, 2002.

                       --------------------------------------------------------------

                                                              Estimated      Total Compensation
                                               Retirement     Annual          From All
                                               Benefits       Retirement      Oppenheimer Funds
Trustee Name and Other       Aggregate         Accrued as     Benefits to be    For Which
Fund Position(s)             Compensation     Part of Fund     Paid upon       Individual Serves As
(as applicable)               From Fund1       Expenses 2       Retirement3    Trustee/Director

                       --------------------------------------------------------------
- -------------------------------------------------------------------------------------

Clayton K. Yeutter             $5424            $691          $36,372          $71,792
Chairman and Proxy
Committee Member

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Robert G. Galli                $798           $1,043        $55,6786         $198,3867
Study Committee
Chairman

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Phillip Griffiths            $4146            $249          $10,256          $60,861

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Leon Levy8                  $1,311           $0            $133,352         $173,700

- -------------------------------------------------------------------------------------
                       --------------------------------------------------------------

Benjamin Lipstein           $1,134           $335          $115,270        $150,152
, Audit Committee Member

                       --------------------------------------------------------------
                       --------------------------------------------------------------

Joel W. Motley9             $0                $0            $0              $14,453
Study Committee Member
                       --------------------------------------------------------------
                       --------------------------------------------------------------

Elizabeth B. Moynihan       $798             $1,268        $57,086          $105,760
Study Committee Member

                       --------------------------------------------------------------
                       --------------------------------------------------------------

Kenneth A. Randall         $732              $266           $74,471         $97,012
Audit Committee Chairman

                       --------------------------------------------------------------
                       --------------------------------------------------------------

Edward V. Regan            $724              $668           $46,313        $95,960
Proxy Committee Chairman,
Audit Committee Member

                       --------------------------------------------------------------
                       --------------------------------------------------------------

Russell S. Reynolds, Jr.   $542              $740           $48,991       $71,792
Proxy Committee Member

                       --------------------------------------------------------------
- -------------------------------------------------------------------------------------

Donald Spiro               $484             $306           $9,396         $64,080

- -------------------------------------------------------------------------------------

Aggregate  compensation  from the Fund includes  fees and deferred  compensation,
if any, for a Trustee.
2.    No retirement  benefit  expenses  were  allocated to the Fund during its
last fiscal year for some Trustees.
Estimated  Annual  Retirement  Benefits to be paid upon  retirement is based on a
straight life payment plan election.
Aggregate  compensation  from the Fund  includes  $136  deferred  under  Deferred
Compensation Plan described below.
4.    Includes  $24,989  estimated  to be paid to Mr.  Galli for  serving as a
trustee or director of 10 other Oppenheimer funds that are not Board I funds.
5.    Includes  $92,626 for Mr. Galli for serving as trustee or director of 10
Oppenheimer funds that are not Board I Funds.
Aggregate  compensation  from the Fund  includes  $414  deferred  under  Deferred
Compensation Plan described below.
7.    Effective January 1, 2003, Mr. Levy retired from the Board I Funds.
8.    Mr.  Motley  was  elected  as  Trustee  to the  Board I Funds  effective
October 10,  2002.  No trustee fee  expenses  were accrued to the Fund during its
last fiscal year for Mr. Motley.


      The Fund has adopted a retirement plan that provides for payment to a
retired Trustee of up to 80% of the average compensation paid during that
Trustee's five years of service in which the highest compensation was
received. A Trustee must serve in that capacity for any of the Board I Funds
for at least 15 years to be eligible for the maximum payment. Because each
Trustee's retirement benefits will depend on the amount of the Trustee's
future compensation and length of service, the amount of those benefits
cannot be determined at this time, nor can the Fund estimate the number of
years of credited service that will be used to determine those benefits.

Deferred Compensation Plan for Trustees.  The Board of Trustees has adopted a
Deferred Compensation Plan for disinterested trustees that enables them to
elect to defer receipt of all or a portion of the annual fees they are
entitled to receive from the Fund.  Under the plan, the compensation deferred
by a Trustee is periodically adjusted as though an equivalent amount had been
invested in shares of one or more Oppenheimer funds selected by the Trustee.
The amount paid to the Trustee under the plan will be determined based upon
the performance of the selected funds.  Deferral of Trustees' fees under the
plan will not materially affect the Fund's assets, liabilities or net income
per share.  The plan will not obligate the Fund to retain the services of any
Trustee or to pay any particular level of compensation to any Trustee.
Pursuant to an Order issued by the Securities and Exchange Commission, the
Fund may invest in the funds selected by the Trustee under the plan without
shareholder approval for the limited purpose of determining the value of the
Trustee's deferred fee account.


Item 15. Code of Ethics.

The Fund and the Manager have a Code of Ethics. It is designed to detect and
prevent improper personal trading by certain employees, including portfolio
managers, that would compete with or take advantage of the Fund's portfolio
transactions. Covered persons include persons with knowledge of the
investments and investment intentions of the Fund and other funds advised by
the Manager. The Code of Ethics does permit personnel subject to the Code to
invest in securities, including securities that may be purchased or held by
the Fund, subject to a number of restrictions and controls. Compliance with
the Code of Ethics is carefully monitored and enforced by the Manager.

The Code of Ethics is an exhibit to the Fund's registration statement filed
with the Securities and Exchange Commission and can be reviewed and copied at
the SEC's Public Reference Room in Washington, D.C. You can obtain
information about the hours of operation of the Public Reference Room by
calling the SEC at 1.202.942.8090. The Code of Ethics can also be viewed as
part of the Fund's registration statement on the SEC's EDGAR database at the
SEC's Internet website at www.sec.gov. Copies may be obtained, after paying a
duplicating fee, by electronic request at the following e-mail address:
publicinfo@sec.gov., or by writing to the SEC's Public Reference Section,
Washington, D.C. 20549-0102.


Item 19.  Control Persons and Principal Holders of Securities.

      1.    Inapplicable.


      As of February 25, 2003, the only persons who owned of record or were
         known by the Fund to own beneficially 5% or more of the outstanding
         shares of the Fund were: UBS Paine Webber, 1000 Harbor Boulevard,
         6th Floor, Weehawken, NJ 07087, which owned 3,218,555 shares (11.01%
         of the then outstanding shares); First Clearing Corp., 10700 Wheat
         First Drive, Glen Allen, VA 23606, which owned 2,127,144 shares
         (7.28% of the then outstanding shares); Charles Schwab & Co., Inc.,
         C/O ADP Proxy Services, 51 Mercedes Way, Edgewood, NY 11717, which
         owned 2,061,716 shares (7.05% of the then outstanding shares); AG
         Edwards & Sons, Inc., 2801 Clark Street, St. Louis, MO 63103 which
         owned 2,027,716 shares (6.94% of the then outstanding shares);
                                    -
         Salomon Smith Barney, Inc., 333 W. 34th Street, New York, NY 10001,
         which owned 1,663,815 shares (5.69% of the then outstanding shares);
         and Merrill Lynch, Pierce Fenner & Smith Safekeeping, 4 Corporate
         Place, Piscataway, NJ, 08854, which owned 1,546,778 shares (5.29% of
         the then outstanding shares).

      3.    As of February 25, 2003, the Trustees and officers of the Fund,
as a group owned of record or beneficially less than 1% of each class of
shares of the Fund.  The foregoing statement does not reflect ownership of
shares of the Fund held of record by an employee benefit plan for employees
of the Manager, other than the shares beneficially owned under the plan by
the officers of the Fund listed above. In addition, each Independent Trustee,
and his or her family members, do not own securities of either the Manager of
the Board I Funds or any person directly or indirectly controlling,
controlled by or under common control with the Manager.


Item 20.  Investment Advisory and Other Services.

      Reference is made to Item 9 of the Prospectus.

Item 21.  Brokerage Allocation and Other Practices.


      1 and 2.  During the fiscal years ended October 31, 2000, 2001 and
2002, the Fund paid approximately $163,358, $622,063 and $87,859
respectively, in brokerage commissions.  The Fund will not effect portfolio
transactions through any broker (i) which is an affiliated person of the
Fund, (ii) which is an affiliated person of such affiliated person or (iii)
an affiliated person of which is an affiliated person of the Fund or its
Manager.  There is no principal underwriter of shares of the Fund. As most
purchases of portfolio securities made by the Fund are principal transactions
at net prices, the Fund incurs little or no brokerage costs.  The Fund deals
directly with the selling or purchasing principal or market maker without
incurring charges for the services of a broker on its behalf unless it is
determined that a better price or execution may be obtained by using the
services of a broker. Purchases of portfolio securities from underwriters
include a commission or concession paid by the issuer to the underwriter, and
purchases from dealers include a spread between the bid and asked price.
Transactions in foreign securities markets generally involve the payment of
fixed brokerage commissions, which are usually higher than those in the
United States.  The Fund seeks to obtain prompt execution of orders at the
most favorable net price.

      3.    The advisory agreement between the Fund and the Manager (the
"Advisory Agreement") contains provisions relating to the selection of
brokers, dealers and futures commission merchants (collectively referred to
as "brokers") for the Fund's portfolio transactions.  The Manager is
authorized by the Advisory Agreement to employ brokers as may, in its best
judgment based on all relevant factors, implement the policy of the Fund to
obtain, at reasonable expense, the "best execution" (prompt and reliable
execution at the most favorable price obtainable) of such transactions.  The
Manager need not seek competitive bidding but is expected to minimize the
commissions paid to the extent consistent with the interests and policies of
the Fund.  The Fund will not effect portfolio transactions through affiliates
of the Manager.

      Certain other investment companies advised by the Manager and its
affiliates have investment objectives and policies similar to those of the
Fund.  If possible, concurrent orders to purchase or sell the same security
by more than one of the accounts managed by the Manager or its affiliates are
combined.  The transactions effected pursuant to such combined orders are
averaged as to price and allocated in accordance with the purchase or sale
orders actually placed for each account.  If transactions on behalf of more
than one fund during the same period increase the demand for securities being
purchased or the supply of securities being sold, there may be an adverse
effect on price or quantity.  When the Fund engages in an option transaction,
ordinarily the same broker will be used for the purchase or sale of the
option and any transactions in the security to which the option relates.

      Under the Advisory Agreement, if brokers are used for portfolio
transactions, the Manager may select brokers for their execution and/or
research services, on which no dollar value can be placed.  Information
received by the Manager for those other accounts may or may not be useful to
the Fund.  The commissions paid to such dealers may be higher than another
qualified dealer would have charged if a good faith determination is made by
the Manager that the commission is reasonable in relation to the services
provided.  Subject to applicable regulations, sales of shares of the Fund
and/or investment companies advised by the Manager or its affiliates may also
be considered as a factor in directing transactions to brokers, but only in
conformity with the price, execution and other considerations and practices
discussed above.

      Such research, which may be provided by a broker through a third party,
includes information on particular companies and industries as well as
market, economic or institutional activity areas.  It serves to broaden the
scope and supplement the research activities of the Manager, to make
available additional views for consideration and comparisons, and to enable
the Manager to obtain market information for the valuation of securities held
in the Fund's portfolio or being considered for purchase.

      4.    During the fiscal years ended October 31, 2000 and 2001, $302 and
$7,709, respectively were paid to brokers as commissions in return for
research services.  There were no commissions paid to brokers for research
services during the fiscal year ended October 31, 2002.


      5.    Inapplicable.

Item 22.  Tax Status.

      Reference is made to Item 10 of the Prospectus.


Item 23.  Financial Statements at fiscal year-end October 31, 2002.

INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Oppenheimer Multi-Sector Income Trust:

  We have audited the accompanying statement of assets and liabilities of Oppenheimer Multi-Sector Income Trust, including the statement of investments, as of October 31, 2002, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

  We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2002, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

  In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Multi-Sector Income Trust as of October 31, 2002, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP Denver, Colorado November 21, 2002 STATEMENT OF INVESTMENTS October 31, 2002

                                                                                         Principal  Market Value
                                                                                            Amount    See Note 1
- ----------------------------------------------------------------------------------------------------------------

U.S. Government Sector--12.2%
- ----------------------------------------------------------------------------------------------------------------
U.S. Government Obligations--12.2%
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. Sr. Unsub. Nts., 4.75%, 1/15/13 [EUR]                     390,000   $   380,114
- ----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. Sr. Unsec. Nts., 2.125%, 10/9/07 [JPY]                 115,000,000     1,022,619
- ----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. Unsec. Nts.:
1.75%, 3/26/08 [JPY]                                                                   170,000,000     1,492,131
5.25%, 4/15/07                                                                           3,560,000     3,881,607
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
4.375%, 8/15/12                                                                          4,630,000     4,807,968
5.375%, 2/15/31                                                                          2,100,000     2,217,224
8.75%, 5/15/17                                                                             800,000     1,139,188
STRIPS, 5.99%, 11/15/18 1,2                                                                300,000       128,033
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
3.25%, 8/15/07                                                                           2,160,000     2,210,373
5.875%, 2/15/04 3                                                                        1,140,000     1,205,092
6.50%, 2/15/10                                                                           4,620,000     5,492,321
6.75%, 5/15/05                                                                           1,140,000     1,275,732
7%, 7/15/06                                                                              3,300,000     3,833,514
                                                                                                     -----------
Total U.S. Government Sector (Cost $27,783,371)                                                       29,085,916

                                                                                            Shares
- ----------------------------------------------------------------------------------------------------------------
Convertible Sector--0.9%
- ----------------------------------------------------------------------------------------------------------------
Preferred Stocks--0.6%
- ----------------------------------------------------------------------------------------------------------------
Crown American Realty Trust, 11% Cum., Series A, Non-Vtg                                     4,000       212,000
- ----------------------------------------------------------------------------------------------------------------
Dobson Communications Corp.:
12.25% Sr. Exchangeable, Non-Vtg. 4                                                          1,114       247,865
13% Sr. Exchangeable, Non-Vtg. 4                                                               471       104,797
- ----------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg. 4,5,6                            249            25
- ----------------------------------------------------------------------------------------------------------------
Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 5                  4,000        81,000
- ----------------------------------------------------------------------------------------------------------------
Global Crossing Holdings Ltd., 10.50% Sr. Exchangeable, Non-Vtg. 4,5,6,13                    4,210            --
- ----------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 13.50% Exchangeable, Series B 4                                 1            23
- ----------------------------------------------------------------------------------------------------------------
Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable, Non-Vtg. 4,5,6,13            3,031            --
- ----------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 13.25% Cum. Jr. Exchangeable, Non-Vtg. 4                           32       157,600
- ----------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 4                                       109        16,623
- ----------------------------------------------------------------------------------------------------------------
Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 6                             5,750       634,656
                                                                                                     -----------
                                                                                                       1,454,589

                                                                                             Units
- ----------------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.3%
- ----------------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp. Wts.:
Exp. 1/23/03 5,6                                                                             6,054            --
Exp. 1/23/03 5,6                                                                             3,456            --
Exp. 9/1/04 5,6                                                                              1,936            --
- ----------------------------------------------------------------------------------------------------------------
COLO.com, Inc. Wts., Exp. 3/15/10 5,6                                                          300             3
- ----------------------------------------------------------------------------------------------------------------
Concentric Network Corp. Wts., Exp. 12/15/07 5,6                                               600             6
- ----------------------------------------------------------------------------------------------------------------
Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 5,6                                         800            --
- ----------------------------------------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/1/05 5,6                                            700             7

8 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                                   Market Value
                                                                                            Units    See Note 1
- ----------------------------------------------------------------------------------------------------------------

Rights, Warrants and Certificates Continued
- ----------------------------------------------------------------------------------------------------------------
Equinix, Inc. Wts., Exp. 12/1/07 5,6                                                          400    $        4
- ----------------------------------------------------------------------------------------------------------------
Horizon PCS, Inc. Wts., Exp. 10/1/10 5,6                                                    1,000            50
- ----------------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 5,6                                             4,125            41
- ----------------------------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. Wts.:
Exp. 5/16/06 5,6                                                                            6,035            60
Exp. 5/16/06 5,6                                                                                9            --
- ----------------------------------------------------------------------------------------------------------------
Insilco Corp. Wts., Exp. 8/15/07 5,6                                                          720             7
- ----------------------------------------------------------------------------------------------------------------
KMC Telecom Holdings, Inc. Wts., Exp. 4/15/08 5,6                                             920             9
- ----------------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc. Wts., Exp. 4/15/10 5,6                                      400           150
- ----------------------------------------------------------------------------------------------------------------
Long Distance International, Inc. Wts., Exp. 4/13/08 5,6                                      400            --
- ----------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07 5,6                                      975            10
- ----------------------------------------------------------------------------------------------------------------
Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 5,6                                            700             7
- ----------------------------------------------------------------------------------------------------------------
Morgan Stanley Wts., Exp. 6/5/03 5                                                         91,275       825,172
- ----------------------------------------------------------------------------------------------------------------
Ntelos, Inc. Wts., Exp. 8/15/10 5,6                                                           500           812
- ----------------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc. Wts., Exp. 9/19/10 5                                                  6,738         3,504
- ----------------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts., Exp. 6/30/05 5,6                                                 6,400            --
- ----------------------------------------------------------------------------------------------------------------
Republic Technologies International LLC Wts., Exp. 7/15/09 5,6                                200             2
- ----------------------------------------------------------------------------------------------------------------
Verado Holdings, Inc., Cl. B Wts., Exp. 4/15/08 5,6                                           500           253
                                                                                                    ------------
                                                                                                        830,097
                                                                                                    ------------
Total Convertible Sector (Cost $4,723,995)                                                            2,284,686



                                                                                           Shares
- ----------------------------------------------------------------------------------------------------------------
Corporate Sector--31.2%
- ----------------------------------------------------------------------------------------------------------------
Common Stocks--0.0%
- ----------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. 5,6                                                         18            --
- ----------------------------------------------------------------------------------------------------------------
Covad Communications Group, Inc. 5                                                          6,198         8,553
- ----------------------------------------------------------------------------------------------------------------
Globix Corp. 5                                                                              6,880        17,200
- ----------------------------------------------------------------------------------------------------------------
ICO Global Communication Holdings Ltd. 5                                                   24,061        16,121
- ----------------------------------------------------------------------------------------------------------------
Manitowoc Co., Inc. (The)                                                                     173         4,081
- ----------------------------------------------------------------------------------------------------------------
Orbital Sciences Corp. 5                                                                      399         1,424
- ----------------------------------------------------------------------------------------------------------------
Pioneer Cos., Inc. 5,6                                                                      5,655         8,483
- ----------------------------------------------------------------------------------------------------------------
Prandium, Inc. 5                                                                           14,499        14,499
- ----------------------------------------------------------------------------------------------------------------
Star Gas Partners LP                                                                          220         4,048
- ----------------------------------------------------------------------------------------------------------------
TVMAX Holdings, Inc. 5,6                                                                    2,500        10,000
- ----------------------------------------------------------------------------------------------------------------
WRC Media Corp. 5,6                                                                           676             7
                                                                                                    ------------
                                                                                                         84,416

9| OPPENHEIMER MULTI-SECTOR INCOME TRUST

STATEMENT OF INVESTMENTS  Continued
                                                                                          Principal Market Value
                                                                                             Amount   See Note 1
- ----------------------------------------------------------------------------------------------------------------

Corporate Bonds and Notes--30.9%
- ----------------------------------------------------------------------------------------------------------------
Consumer Discretionary--9.7%
- ----------------------------------------------------------------------------------------------------------------
Auto Components--1.1%
American Axle & Manufacturing, Inc., 9.75% Sr. Sub. Nts., 3/1/09                         $  200,000   $  214,000
- ----------------------------------------------------------------------------------------------------------------
Burke Industries, Inc., 10% Sr. Sub. Nts., 8/15/07 5,7                                      700,000      161,000
- ----------------------------------------------------------------------------------------------------------------
Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts., Series B, 2/15/10               200,000      194,000
- ----------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11                                    200,000      186,000
- ----------------------------------------------------------------------------------------------------------------
Dana Corp., 9% Unsec. Nts., 8/15/11                                                         400,000      372,000
- ----------------------------------------------------------------------------------------------------------------
Dura Operating Corp., 9% Sr. Unsec. Sub. Nts., Series D, 5/1/09                             600,000      525,000
- ----------------------------------------------------------------------------------------------------------------
Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09                                        700,000      733,250
- ----------------------------------------------------------------------------------------------------------------
Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12                                                   200,000      169,000
                                                                                                      ----------
                                                                                                       2,554,250

- ----------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--2.4%
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08                                            400,000      106,500
- ----------------------------------------------------------------------------------------------------------------
Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11                                               250,000      250,625
- ----------------------------------------------------------------------------------------------------------------
Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12                                             200,000      205,000
- ----------------------------------------------------------------------------------------------------------------
Buffets, Inc., 11.25% Sr. Sub. Nts., 7/15/10 8                                              200,000      201,000
- ----------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 5,6,7                    5,500           --
- ----------------------------------------------------------------------------------------------------------------
Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09                            200,000      211,000
- ----------------------------------------------------------------------------------------------------------------
Hilton Hotels Corp., 7.625% Nts., 5/15/08                                                   200,000      202,846
- ----------------------------------------------------------------------------------------------------------------
Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12                                      200,000      203,000
- ----------------------------------------------------------------------------------------------------------------
John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B, 5/15/12                            200,000      193,500
- ----------------------------------------------------------------------------------------------------------------
Mandalay Resort Group, 10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07                        500,000      538,750
- ----------------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority:
8.375% Sr. Sub. Nts., 7/1/11                                                                400,000      420,000
8.75% Sr. Unsec. Sub. Nts., 1/1/09                                                          500,000      527,500
- ----------------------------------------------------------------------------------------------------------------
Penn National Gaming, Inc., 8.875% Sr. Sub. Nts., 3/15/10                                   300,000      303,750
- ----------------------------------------------------------------------------------------------------------------
Premier Parks, Inc., 0%/10% Sr. Disc. Nts., 4/1/08 9                                        500,000      448,750
- ----------------------------------------------------------------------------------------------------------------
Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12                                       200,000      183,000
- ----------------------------------------------------------------------------------------------------------------
Six Flags, Inc., 8.875% Sr. Nts., 2/1/10                                                    250,000      220,000
- ----------------------------------------------------------------------------------------------------------------
Starwood Hotels & Resorts Worldwide, Inc., 7.875% Nts., 5/1/12 8                            400,000      385,000
- ----------------------------------------------------------------------------------------------------------------
Sun International Hotels Ltd., 8.875% Sr. Sub. Unsec. Nts., 8/15/11                         500,000      505,000
- ----------------------------------------------------------------------------------------------------------------
Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11% Bonds, 6/15/10 8                      200,000      206,000
- ----------------------------------------------------------------------------------------------------------------
Yum! Brands, Inc., 7.70% Sr. Nts., 7/1/12                                                   300,000      312,000
                                                                                                      ----------
                                                                                                       5,623,221

- ----------------------------------------------------------------------------------------------------------------
Household Durables--1.1%
Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12                                            300,000      306,750
- ----------------------------------------------------------------------------------------------------------------
D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 2                                           500,000      491,250
- ----------------------------------------------------------------------------------------------------------------
K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12                                300,000      274,500
- ----------------------------------------------------------------------------------------------------------------
KB Home:
8.625% Sr. Sub. Nts., 12/15/08                                                              500,000      505,000
9.50% Sr. Unsec. Sub. Nts., 2/15/11                                                         500,000      521,250
- ----------------------------------------------------------------------------------------------------------------
Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05                                         400,000      357,000

10 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                          Principal Market Value
                                                                                             Amount   See Note 1
- ----------------------------------------------------------------------------------------------------------------

Household Durables Continued
Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12                                     $  100,000   $   94,000
- ----------------------------------------------------------------------------------------------------------------
WCI Communities, Inc., 9.125% Sr. Sub. Nts., 5/1/12                                         200,000      166,500
                                                                                                      ----------
                                                                                                       2,716,250

- ----------------------------------------------------------------------------------------------------------------
Internet & Catalog Retail--0.4%
Amazon.com, Inc., 0%/10% Sr. Unsec. Disc. Nts., 5/1/08 9                                    900,000      877,500
- ----------------------------------------------------------------------------------------------------------------
Media--3.4%
Adelphia Communications Corp.:
8.125% Sr. Nts., Series B, 7/15/03 7                                                        250,000       83,750
9.875% Sr. Nts., Series B, 3/1/07 7                                                         300,000      100,500
10.25% Sr. Unsec. Nts., 11/1/06 7                                                           100,000       33,500
10.25% Sr. Unsec. Sub. Nts., 6/15/11 7                                                      300,000      102,000
10.875% Sr. Unsec. Nts., 10/1/10 7                                                          100,000       33,500
- ----------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11                                 500,000      446,250
- ----------------------------------------------------------------------------------------------------------------
Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09                                    200,000      197,500
- ----------------------------------------------------------------------------------------------------------------
Chancellor Media Corp., 8.75% Sr. Unsec. Sub. Nts., Series B, 6/15/07 6                      75,000       78,562
- ----------------------------------------------------------------------------------------------------------------
Charter Communications Holdings LLC/
Charter Communications Holdings Capital Corp.:
8.625% Sr. Unsec. Nts., 4/1/09                                                            1,500,000      652,500
10.75% Sr. Unsec. Nts., 10/1/09                                                             800,000      358,000
11.125% Sr. Unsec. Nts., 1/15/11                                                            400,000      179,000
- ----------------------------------------------------------------------------------------------------------------
Classic Cable, Inc., 10.50% Sr. Sub. Nts., 3/1/10 5,7                                       300,000       40,500
- ----------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B, 4/1/11                         125,000      102,813
- ----------------------------------------------------------------------------------------------------------------
Cumulus Media, Inc., 10.375% Sr. Unsec. Sub. Nts., 7/1/08                                   500,000      537,500
- ----------------------------------------------------------------------------------------------------------------
Dex Media East LLC, 9.875% Sr. Nts., 11/15/09 8,10                                          100,000      103,500
- ----------------------------------------------------------------------------------------------------------------
EchoStar Broadband Corp., 10.375% Sr. Unsec. Nts., 10/1/07                                  750,000      776,250
- ----------------------------------------------------------------------------------------------------------------
EchoStar DBS Corp., 9.375% Sr. Unsec. Nts., 2/1/09                                          200,000      201,000
- ----------------------------------------------------------------------------------------------------------------
Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09                  600,000      624,000
- ----------------------------------------------------------------------------------------------------------------
Entravision Communications Corp., 8.125% Sr. Sub. Nts., 3/15/09                             100,000      104,500
- ----------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 8.625% Sr. Sub. Nts., 9/15/07                                        200,000      209,000
- ----------------------------------------------------------------------------------------------------------------
Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13                         600,000      438,000
- ----------------------------------------------------------------------------------------------------------------
PanAmSat Corp., 8.50% Sr. Nts., 2/1/12 8                                                    400,000      362,000
- ----------------------------------------------------------------------------------------------------------------
Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11                              200,000      214,500
- ----------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8% Sr. Sub. Nts., 3/15/12                                                                 1,000,000    1,017,500
8% Sr. Sub. Nts., 3/15/12 8,10                                                              300,000      307,500
8.75% Sr. Sub. Nts., 12/15/11                                                               300,000      316,500
- ----------------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub. Nts., 11/1/09                     300,000      305,250
- ----------------------------------------------------------------------------------------------------------------
WRC Media, Inc./Weekly Reader Corp./Compass Learning Corp.,
12.75% Sr. Sub. Nts., 11/15/09                                                              300,000      274,500
                                                                                                      ----------
                                                                                                       8,199,875

- ----------------------------------------------------------------------------------------------------------------
Multiline Retail--0.2%
Saks, Inc., 9.875% Nts., 10/1/11                                                            400,000      396,000

11 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                           Principal Market Value
                                                                              Amount   See Note 1
- -------------------------------------------------------------------------------------------------

Specialty Retail--0.9%
Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12                  $  200,000   $  171,000
- -------------------------------------------------------------------------------------------------
CSK Auto, Inc., 12% Sr. Unsec. Nts., 6/15/06                                 500,000      532,500
- -------------------------------------------------------------------------------------------------
Finlay Enterprises, Inc., 9% Debs., 5/1/08                                   500,000      447,500
- -------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08                           300,000      277,500
- -------------------------------------------------------------------------------------------------
United Rentals (North America), Inc., 10.75% Sr. Unsec. Nts., 4/15/08        800,000      748,000
- -------------------------------------------------------------------------------------------------
United Rentals, Inc., 9.25% Sr. Unsec. Sub. Nts., Series B, 1/15/09          100,000       73,750
                                                                                       ----------
                                                                                        2,250,250

- -------------------------------------------------------------------------------------------------
Textiles & Apparel--0.2%
Consoltex Group, Inc., 0.605% Sr. Sub. Nts., 1/31/09 4,6                     392,231       21,573
- -------------------------------------------------------------------------------------------------
Levi Strauss & Co., 11.625% Sr. Unsec. Nts., 1/15/08                         200,000      197,000
- -------------------------------------------------------------------------------------------------
Polymer Group, Inc., 8.75% Sr. Sub. Nts., 3/1/08 5,6,7                       500,000       87,500
- -------------------------------------------------------------------------------------------------
Russell Corp., 9.25% Sr. Nts., 5/1/10 8                                      100,000      103,500
                                                                                       ----------
                                                                                          409,573

- -------------------------------------------------------------------------------------------------
Consumer Staples--1.8%
- -------------------------------------------------------------------------------------------------
Beverages--0.2%
Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12                    100,000      104,750
- -------------------------------------------------------------------------------------------------
Packaged Ice, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/1/05                  300,000      223,500
                                                                                       ----------
                                                                                          328,250

- -------------------------------------------------------------------------------------------------
Food & Drug Retailing--0.7%
Fleming Cos., Inc.:
10.125% Sr. Unsec. Nts., 4/1/08                                              500,000      427,500
10.625% Sr. Unsec. Sub. Nts., Series D, 7/31/07                              300,000      192,000
- -------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11      200,000      121,000
- -------------------------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07                           775,000      623,875
- -------------------------------------------------------------------------------------------------
Pathmark Stores, Inc., 8.75% Sr. Sub. Nts., 2/1/12                           200,000      174,000
- -------------------------------------------------------------------------------------------------
Winn-Dixie Stores, Inc., 8.875% Sr. Nts., 4/1/08                             200,000      201,000
                                                                                       ----------
                                                                                        1,739,375

- -------------------------------------------------------------------------------------------------
Food Products--0.4%
Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08                    300,000      132,000
- -------------------------------------------------------------------------------------------------
Burns Philp Capital Pty Ltd., 9.75% Sr. Sub. Nts., 7/15/12 8                 100,000       98,500
- -------------------------------------------------------------------------------------------------
Smithfield Foods, Inc.:
7.625% Sr. Unsec. Sub. Nts., 2/15/08                                         400,000      392,000
8% Sr. Nts., Series B, 10/15/09                                              300,000      303,000
                                                                                       ----------
                                                                                          925,500

- -------------------------------------------------------------------------------------------------
Household Products--0.5%
AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08                                    600,000      567,750
- -------------------------------------------------------------------------------------------------
Holmes Products Corp., 9.875% Sr. Unsec. Sub. Nts., Series B, 11/15/07       400,000      230,000
- -------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05                   500,000      440,000
- -------------------------------------------------------------------------------------------------
Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08 5,6,7         400,000           --
                                                                                       ----------
                                                                                        1,237,750

12 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                 Principal Market Value
                                                                                    Amount   See Note 1
- -------------------------------------------------------------------------------------------------------

Energy--1.8%
- -------------------------------------------------------------------------------------------------------
Energy Equipment & Services--0.7%
Grant Geophysical, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/15/08 6             $  380,000   $   96,900
- -------------------------------------------------------------------------------------------------------
Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts., 8/1/08                    750,000      772,500
- -------------------------------------------------------------------------------------------------------
Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09                               100,000      104,500
- -------------------------------------------------------------------------------------------------------
Universal Compression Holdings, Inc., 0%/9.875% Sr. Disc. Nts., 2/15/08 6,9        700,000      696,500
                                                                                             ----------
                                                                                              1,670,400

- -------------------------------------------------------------------------------------------------------
Oil & Gas--1.1%
Chesapeake Energy Corp., 8.125% Sr. Unsec. Nts., 4/1/11                            300,000      307,500
- -------------------------------------------------------------------------------------------------------
Forest Oil Corp., 7.75% Sr. Nts., 5/1/14                                           200,000      203,000
- -------------------------------------------------------------------------------------------------------
Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09                                      600,000      603,000
- -------------------------------------------------------------------------------------------------------
Giant Industries, Inc., 11% Sr. Sub. Nts., 5/15/12                                 200,000      117,000
- -------------------------------------------------------------------------------------------------------
Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12                             200,000      215,227
- -------------------------------------------------------------------------------------------------------
Pogo Producing Co., 8.75% Sr. Sub. Nts., Series B, 5/15/07 6                       300,000      313,500
- -------------------------------------------------------------------------------------------------------
RAM Energy, Inc., 11.50% Sr. Unsec. Nts., 2/15/08                                  800,000      244,000
- -------------------------------------------------------------------------------------------------------
Stone Energy Corp., 8.75% Sr. Sub. Nts., 9/15/07                                   535,000      556,400
- -------------------------------------------------------------------------------------------------------
XTO Energy, Inc., 7.50% Sr. Nts., 4/15/12                                          100,000      106,500
                                                                                             ----------
                                                                                              2,666,127

- -------------------------------------------------------------------------------------------------------
Financials--2.4%
- -------------------------------------------------------------------------------------------------------
Banks--0.4%
Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08       800,000      324,000
- -------------------------------------------------------------------------------------------------------
Tokai Preferred Capital Co. LLC, 9.98% Non-Cum. Bonds, Series A, 12/29/49 8,11     500,000      457,868
- -------------------------------------------------------------------------------------------------------
Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12                          300,000      283,500
                                                                                             ----------
                                                                                              1,065,368

- -------------------------------------------------------------------------------------------------------
Diversified Financials--1.1%
AmeriCredit Corp., 9.875% Sr. Nts., 4/15/06                                        300,000      244,500
- -------------------------------------------------------------------------------------------------------
Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12                                200,000      209,000
- -------------------------------------------------------------------------------------------------------
Finova Group, Inc. (The), 7.50% Nts., 11/15/09                                     400,000      120,000
- -------------------------------------------------------------------------------------------------------
Fuji JGB Investment LLC:
9.87% Non-Cum. Bonds, Series A, 12/31/49 11                                        140,000      127,056
9.87% Non-Cum. Bonds, Series A, 12/31/49 8,11                                      775,000      703,346
- -------------------------------------------------------------------------------------------------------
IBJ Preferred Capital Co. (The) LLC:
8.79% Non-Cum. Bonds, Series A, 12/29/49 11                                         85,000       69,137
8.79% Bonds, 12/29/49 8,11                                                         780,000      634,437
- -------------------------------------------------------------------------------------------------------
IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09                              250,000      196,250
- -------------------------------------------------------------------------------------------------------
LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07                            250,000      266,250
                                                                                             ----------
                                                                                              2,569,976

- -------------------------------------------------------------------------------------------------------
Real Estate--0.9%
Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07                                    100,000       63,000
- -------------------------------------------------------------------------------------------------------
Corrections Corp. of America, 9.875% Sr. Nts., 5/1/09 8                            100,000      106,125
- -------------------------------------------------------------------------------------------------------
Felcor Lodging LP, 8.50% Sr. Nts., 6/1/11                                          285,000      265,763
- -------------------------------------------------------------------------------------------------------
Host Marriott LP, 9.50% Sr. Nts., 1/15/07                                          400,000      402,000

13 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                                    Principal  Market Value
                                                                                       Amount    See Note 1
- -----------------------------------------------------------------------------------------------------------

Real Estate Continued
MeriStar Hospitality Corp., 9.125% Sr. Unsec. Nts., 1/15/11                        $  700,000    $  572,250
- -----------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 9.75% Sr. Sec. Nts., Series B, 4/1/08 6     700,000       696,500
                                                                                                 ----------
                                                                                                  2,105,638

- -----------------------------------------------------------------------------------------------------------
Health Care--1.7%
- -----------------------------------------------------------------------------------------------------------
Health Care Equipment & Supplies--0.2%
Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub. Nts., 8/1/11                     400,000       380,000
- -----------------------------------------------------------------------------------------------------------
Health Care Providers & Services--1.5%
Extendicare Health Services, Inc., 9.50% Sr. Nts., 7/1/10 8                           100,000        98,500
- -----------------------------------------------------------------------------------------------------------
Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08                          900,000       731,250
- -----------------------------------------------------------------------------------------------------------
Healthsouth Corp., 7.625% Nts., 6/1/12                                                300,000       238,500
- -----------------------------------------------------------------------------------------------------------
Medquest, Inc., 11.875% Sr. Sub. Nts., 8/15/12 8                                      200,000       200,000
- -----------------------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub. Nts., 6/1/09                400,000       418,000
- -----------------------------------------------------------------------------------------------------------
Rotech Healthcare, Inc., 9.50% Sr. Sub. Nts., 4/1/12 8                                200,000       190,000
- -----------------------------------------------------------------------------------------------------------
Triad Hospitals, Inc., 8.75% Sr. Unsec. Nts., Series B, 5/1/09                      1,500,000     1,597,500
- -----------------------------------------------------------------------------------------------------------
US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12                                       200,000       198,000
                                                                                                 ----------
                                                                                                  3,671,750

- -----------------------------------------------------------------------------------------------------------
Pharmaceuticals--0.0%
aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10                                            100,000        96,500
- -----------------------------------------------------------------------------------------------------------
Industrials--4.3%
- -----------------------------------------------------------------------------------------------------------
Aerospace & Defense--0.2%
Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts., 5/15/11                        200,000       214,000
- -----------------------------------------------------------------------------------------------------------
BE Aerospace, Inc., 8.875% Sr. Unsec. Sub. Nts., 5/1/11                               200,000       135,000
- -----------------------------------------------------------------------------------------------------------
TransDigm, Inc., 10.375% Sr. Sub. Nts., 12/1/08                                       100,000       101,500
                                                                                                -----------
                                                                                                    450,500

- -----------------------------------------------------------------------------------------------------------
Air Freight & Couriers--0.1%
Atlas Air, Inc.:
9.25% Sr. Nts., 4/15/08                                                               200,000        51,000
9.375% Sr. Unsec. Nts., 11/15/06                                                      300,000        76,500
                                                                                                -----------
                                                                                                    127,500

- -----------------------------------------------------------------------------------------------------------
Airlines--0.4%
America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05                                1,000,000       405,000
- -----------------------------------------------------------------------------------------------------------
Amtran, Inc., 10.50% Sr. Nts., 8/1/04                                               1,450,000       587,250
                                                                                                -----------
                                                                                                    992,250

- -----------------------------------------------------------------------------------------------------------
Building Products--0.3%
Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 8                            100,000       104,500
- -----------------------------------------------------------------------------------------------------------
Nortek, Inc.:
9.125% Sr. Unsec. Nts., Series B, 9/1/07                                              300,000       295,500
9.25% Sr. Nts., Series B, 3/15/07                                                     300,000       298,500
9.875% Sr. Unsec. Sub. Nts., 6/15/11                                                  100,000        94,750
                                                                                                -----------
                                                                                                    793,250

14 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                Principal Market Value
                                                                                   Amount   See Note 1
- ------------------------------------------------------------------------------------------------------

Commercial Services & Supplies--1.6%
Allied Waste North America, Inc.:
7.875% Sr. Unsec. Nts., Series B, 1/1/09                                       $  600,000   $  573,000
8.50% Sr. Sub. Nts., 12/1/08                                                      500,000      490,000
8.875% Sr. Nts., Series B, 4/1/08                                                 500,000      497,500
- ------------------------------------------------------------------------------------------------------
Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09                           300,000      249,000
- ------------------------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 6                                      600,000      621,000
- ------------------------------------------------------------------------------------------------------
Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 6              600,000      453,000
- ------------------------------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09                   250,000      236,562
- ------------------------------------------------------------------------------------------------------
Mail-Well, Inc., 9.625% Sr. Nts., 3/15/12 8                                       300,000      213,000
- ------------------------------------------------------------------------------------------------------
Protection One, Inc./Protection One Alarm Monitoring, Inc.,
7.375% Sr. Unsec. Nts., 8/15/05                                                   400,000      346,000
- ------------------------------------------------------------------------------------------------------
Safety-Kleen Corp., 9.25% Sr. Unsec. Nts., 5/15/09 5,6,7                           50,000        1,625
- ------------------------------------------------------------------------------------------------------
Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09                           100,000      103,500
                                                                                            ----------
                                                                                             3,784,187

- ------------------------------------------------------------------------------------------------------
Construction & Engineering--0.0%
- ------------------------------------------------------------------------------------------------------
URS Corp., 11.50% Sr. Nts., 9/15/09 8                                             100,000       91,500
- ------------------------------------------------------------------------------------------------------
Industrial Conglomerates--0.3%
Great Lakes Dredge & Dock Corp., 11.25% Sr. Unsec. Sub. Nts., 8/15/08             610,000      632,113
- ------------------------------------------------------------------------------------------------------
Machinery--0.9%
Actuant Corp., 13% Sr. Sub. Nts., 5/1/09                                          215,000      247,250
- ------------------------------------------------------------------------------------------------------
AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08                                         500,000      527,500
- ------------------------------------------------------------------------------------------------------
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09                                           400,000      220,000
- ------------------------------------------------------------------------------------------------------
Eagle-Picher Industries, Inc., 9.375% Sr. Unsec. Sub. Nts., 3/1/08 6              350,000      229,250
- ------------------------------------------------------------------------------------------------------
NMHG Holding Co., 10% Sr. Nts., 5/15/09                                           100,000       95,500
- ------------------------------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07      500,000      467,500
- ------------------------------------------------------------------------------------------------------
Terex Corp.:
8.875% Sr. Unsec. Sub. Nts., 4/1/08                                               300,000      258,000
9.25% Sr. Unsec. Sub. Nts., 7/15/11                                               200,000      173,000
                                                                                            ----------
                                                                                             2,218,000

- ------------------------------------------------------------------------------------------------------
Marine--0.4%
CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 8                                        300,000      310,500
- ------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07 8      750,000      243,750
- ------------------------------------------------------------------------------------------------------
Sea Containers Ltd., 7.875% Sr. Nts., 2/15/08                                     500,000      352,500
                                                                                            ----------
                                                                                               906,750

- ------------------------------------------------------------------------------------------------------
Road & Rail--0.1%
Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09                   200,000      208,000
- ------------------------------------------------------------------------------------------------------
Transportation Infrastructure--0.0%
Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 5,7                            400,000       80,000
- ------------------------------------------------------------------------------------------------------
Information Technology--1.2%
- ------------------------------------------------------------------------------------------------------
Communications Equipment--0.1%
CellNet Data Systems, Inc., 0%/14% Sr. Unsec. Disc. Nts., 10/1/07 5,6,7,9         554,000           --
- ------------------------------------------------------------------------------------------------------
Orion Network Systems, Inc., 12.50% Sr. Disc. Nts., 1/15/07 6                   1,150,000      261,625
                                                                                            ----------
                                                                                               261,625

15 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                                 Principal Market Value
                                                                                    Amount   See Note 1
- -------------------------------------------------------------------------------------------------------

Computers & Peripherals--0.2%
Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 8                         $  400,000   $  406,000
- -------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.4%
ChipPAC International Co. Ltd., 12.75% Sr. Unsec. Sub. Nts., Series B, 8/1/09      200,000      197,000
- -------------------------------------------------------------------------------------------------------
Fisher Scientific International, Inc.:
8.125% Sr. Sub. Nts., 5/1/12                                                       200,000      204,000
9% Sr. Unsec. Sub. Nts., 2/1/08 6                                                  185,000      192,400
- -------------------------------------------------------------------------------------------------------
Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08                           300,000      313,500
- -------------------------------------------------------------------------------------------------------
Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 5,7                                      800,000       20,000
                                                                                             ----------
                                                                                                926,900

- -------------------------------------------------------------------------------------------------------
Internet Software & Services--0.1%
Equinix, Inc., 13% Sr. Unsec. Nts., 12/1/07 6,7                                    400,000       74,000
- -------------------------------------------------------------------------------------------------------
Globix Corp., 9.075% Sr. Nts., 4/26/08                                              59,016       47,803
- -------------------------------------------------------------------------------------------------------
PSINet, Inc.:
10.50% Sr. Unsec. Nts., 12/1/06 5,6,7 [EUR]                                        500,000       47,658
11% Sr. Nts., 8/1/09 5,6,7                                                         600,000       67,500
                                                                                             ----------
                                                                                                236,961

- -------------------------------------------------------------------------------------------------------
IT Consulting & Services--0.1%
Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07                          200,000      112,000
- -------------------------------------------------------------------------------------------------------
Semiconductor Equipment & Products--0.3%
Amkor Technology, Inc., 9.25% Sr. Unsec. Sub. Nts., 2/15/08                        300,000      249,000
- -------------------------------------------------------------------------------------------------------
Fairchild Semiconductor Corp., 10.375% Sr. Unsec. Nts., 10/1/07                    500,000      530,000
                                                                                             ----------
                                                                                                779,000

- -------------------------------------------------------------------------------------------------------
Materials--4.2%
- -------------------------------------------------------------------------------------------------------
Chemicals--1.1%
Equistar Chemicals LP, 8.75% Sr. Unsec. Nts., 2/15/09                              200,000      166,226
- -------------------------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc, Zero Coupon Sr. Unsec
Disc. Nts., 13.08%, 12/31/09 1                                                     300,000       61,500
- -------------------------------------------------------------------------------------------------------
Huntsman International LLC, 9.875% Sr. Nts., 3/1/09                                200,000      199,000
- -------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09                                200,000      181,000
- -------------------------------------------------------------------------------------------------------
Lyondell Chemical Co.:
9.50% Sec. Nts., 12/15/08                                                          200,000      188,000
9.625% Sr. Sec. Nts., Series A, 5/1/07                                             100,000       95,750
9.875% Sec. Nts., Series B, 5/1/07                                                 400,000      383,000
- -------------------------------------------------------------------------------------------------------
OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11                                      200,000       79,000
- -------------------------------------------------------------------------------------------------------
Pioneer Cos., Inc., 5.298% Sr. Sec. Nts., 12/31/06 11                               29,145       19,673
- -------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
11.75% Sr. Unsec. Sub. Nts., 8/15/06 5,7                                           200,000       29,000
12.375% Sr. Sec. Nts., Series B, 7/15/06 5,7                                       600,000      634,500
- -------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 6                               525,000      522,375
                                                                                             ----------
                                                                                              2,559,024

16| OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                       Principal Market Value
                                                                                          Amount   See Note 1
- -------------------------------------------------------------------------------------------------------------

Containers & Packaging--1.7%
Ball Corp.:
7.75% Sr. Unsec. Nts., 8/1/06 6                                                       $  300,000   $  312,000
8.25% Sr. Unsec. Sub. Nts., 8/1/08                                                       400,000      416,000
- -------------------------------------------------------------------------------------------------------------
Graphic Packaging Corp., 8.625% Sub. Nts., 2/15/12                                       200,000      208,500
- -------------------------------------------------------------------------------------------------------------
Jefferson Smurfit Corp., 8.25% Sr. Nts., 10/1/12 8                                       450,000      463,500
- -------------------------------------------------------------------------------------------------------------
Owens-Brockway Glass Container, Inc., 8.875% Sr. Sec. Nts., 2/15/09                      900,000      929,250
- -------------------------------------------------------------------------------------------------------------
Packaging Corp. of America, 9.625% Sr. Unsec. Sub. Nts., 4/1/09                          300,000      326,250
- -------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.875% Sr. Sub. Nts., 4/1/08                             400,000      408,000
- -------------------------------------------------------------------------------------------------------------
Silgan Holdings, Inc., 9% Sr. Sub. Debs., 6/1/09 8                                       100,000      104,500
- -------------------------------------------------------------------------------------------------------------
Stone Container Corp.:
9.25% Sr. Unsec. Nts., 2/1/08                                                            250,000      266,250
9.75% Sr. Unsec. Nts., 2/1/11                                                            400,000      431,000
- -------------------------------------------------------------------------------------------------------------
TriMas Corp., 9.875% Sr. Sub. Nts., 6/15/12 8                                            250,000      236,250
                                                                                                   ----------
                                                                                                    4,101,500

- -------------------------------------------------------------------------------------------------------------
Metals & Mining--1.2%
Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08                                      400,000      370,000
- -------------------------------------------------------------------------------------------------------------
Great Lakes Carbon Corp., 10.25% Sr. Sub. Nts., Series B, 5/15/08                        400,000      262,000
- -------------------------------------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12                                    400,000      390,000
- -------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp.:
10.875% Sr. Nts., Series B, 10/15/06 5,7                                                 500,000      310,000
12.75% Sr. Sub. Nts., 2/1/03 5,7                                                         500,000       55,000
- -------------------------------------------------------------------------------------------------------------
Metallurg, Inc., 11% Sr. Nts., 12/1/07                                                   200,000      169,000
- -------------------------------------------------------------------------------------------------------------
National Steel Corp., 9.875% First Mtg. Bonds, Series D, 3/1/09 5,7                      250,000       90,000
- -------------------------------------------------------------------------------------------------------------
Oregon Steel Mills, Inc., 10% Nts., 7/15/09 8                                            200,000      201,000
- -------------------------------------------------------------------------------------------------------------
P&L Coal Holdings Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08                         484,000      510,620
- -------------------------------------------------------------------------------------------------------------
Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 8                                          200,000      209,000
- -------------------------------------------------------------------------------------------------------------
UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12                                             100,000       67,500
- -------------------------------------------------------------------------------------------------------------
United States Steel LLC, 10.75% Sr. Nts., 8/1/08                                         400,000      396,000
                                                                                                   ----------
                                                                                                    3,030,120

- -------------------------------------------------------------------------------------------------------------
Paper & Forest Products--0.2%
Georgia-Pacific Corp., 8.125% Sr. Unsec. Nts., 5/15/11                                   500,000      433,255
- -------------------------------------------------------------------------------------------------------------
Telecommunication Services--2.7%
- -------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services--0.3%
COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 6,7                                            300,000        4,500
- -------------------------------------------------------------------------------------------------------------
Concentric Network Corp., 12.75% Sr. Unsec. Nts., 12/15/07 5,6,7                         495,000        3,712
- -------------------------------------------------------------------------------------------------------------
Focal Communications Corp., 11.875% Sr. Unsec. Nts., Series B, 1/15/10                    75,000        4,875
- -------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 0%/12.25% Sr. Disc. Nts., Series B, 3/1/09 5,6,7,9      100,000        7,500
- -------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc.:
0%/10.50% Sr. Disc. Nts., 12/1/08 9                                                      400,000      142,000
0%/12.875% Sr. Unsec. Disc. Nts., 3/15/10 9                                              200,000       51,500
- -------------------------------------------------------------------------------------------------------------
Metromedia Fiber Network, Inc., 10% Sr. Unsec. Nts., Series B, 11/15/08 7                200,000        1,500
- -------------------------------------------------------------------------------------------------------------
NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 5,7                         200,000       34,000

17| OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                                Principal  Market Value
                                                                                   Amount    See Note 1
- -------------------------------------------------------------------------------------------------------

Diversified Telecommunication Services Continued
Ntelos, Inc., 13% Sr. Nts., 8/15/10 6                                          $  300,000   $   64,500
- ------------------------------------------------------------------------------------------------------
RCN Corp., 10.125% Sr. Unsec. Nts., 1/15/10                                       179,000       31,325
- ------------------------------------------------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 5,6,7                                    200,000           20
- ------------------------------------------------------------------------------------------------------
Verizon Global Funding Corp., 7.375% Sr. Nts., 9/1/12                             370,000      408,112
- ------------------------------------------------------------------------------------------------------
Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 5,6,7                                 195,000           --
- ------------------------------------------------------------------------------------------------------
XO Communications, Inc.:
0%/12.25% Sr. Unsec. Disc. Nts., 6/1/09 5,6,7,9                                   200,000        1,500
9% Sr. Unsec. Nts., 3/15/08 5,6,7                                                 250,000        1,875
10.75% Sr. Unsec. Nts., 11/15/08 6,7                                              200,000        1,500
                                                                                            ----------
                                                                                               758,419

- ------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services--2.4%
Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts., 2/1/11                            200,000       59,000
- ------------------------------------------------------------------------------------------------------
American Cellular Corp., 9.50% Sr. Sub. Nts., 10/15/09 5,7                        600,000       93,000
- ------------------------------------------------------------------------------------------------------
Crown Castle International Corp.:
0%/10.375% Sr. Disc. Nts., 5/15/11 9                                              550,000      299,750
0%/10.625% Sr. Unsec. Disc. Nts., 11/15/07 9                                      800,000      628,000
- ------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc.:
0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 7,9                                      200,000       11,000
12.50% Sr. Nts., 4/15/10 6,7                                                      400,000       50,000
- ------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 9.375% Sr. Unsec. Nts., 11/15/09                   2,000,000    1,725,000
- ------------------------------------------------------------------------------------------------------
Omnipoint Corp., 11.50% Sr. Nts., 9/15/09 8                                       200,000      209,000
- ------------------------------------------------------------------------------------------------------
Orbcomm Global LP (Escrow) 5                                                      175,000           --
- ------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08                     600,000      252,000
- ------------------------------------------------------------------------------------------------------
SBA Communications Corp., 0%/12% Sr. Unsec. Disc. Nts., 3/1/08 9                1,300,000      585,000
- ------------------------------------------------------------------------------------------------------
TeleCorp PCS, Inc.:
0%/11.625% Sr. Unsec. Sub. Disc. Nts., 4/15/09 9                                  122,000      101,870
10.625% Sr. Unsec. Sub. Nts., 7/15/10 2                                           505,000      497,425
- ------------------------------------------------------------------------------------------------------
Tritel PCS, Inc.:
0%/12.75% Sr. Unsec. Sub. Disc. Nts., 5/15/09 9                                   763,000      654,273
10.375% Sr. Sub. Nts., 1/15/11                                                    342,000      331,740
- ------------------------------------------------------------------------------------------------------
Triton PCS, Inc., 8.75% Sr. Unsec. Sub. Nts., 11/15/11                            100,000       72,500
- ------------------------------------------------------------------------------------------------------
US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub. Disc. Nts., Series B, 11/1/09 9      500,000       40,000
                                                                                            ----------
                                                                                             5,609,558

- ------------------------------------------------------------------------------------------------------
Utilities--1.1%
- ------------------------------------------------------------------------------------------------------
Electric Utilities--1.1%
AES Corp. (The), 8.75% Sr. Unsec. Unsub. Nts., 6/15/08                            250,000      108,750
- ------------------------------------------------------------------------------------------------------
Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series B, 12/15/09             485,629      468,631
- ------------------------------------------------------------------------------------------------------
Calpine Corp., 8.50% Sr. Unsec. Nts., 2/15/11                                   1,400,000      462,000
- ------------------------------------------------------------------------------------------------------
CMS Energy Corp., 9.875% Sr. Unsec. Nts., 10/15/07                                900,000      729,795
- ------------------------------------------------------------------------------------------------------
Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08                               200,000       85,000
- ------------------------------------------------------------------------------------------------------
ESI Tractebel Acquisition Corp., 7.99% Sec. Bonds, Series B, 12/30/11             488,000      413,775

18 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                              Principal   Market Value
                                                                                 Amount     See Note 1
- ------------------------------------------------------------------------------------------------------

Electric Utilities Continued
Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07                        $    500,000   $    441,505
                                                                                          ------------
                                                                                             2,709,456
                                                                                          ------------
                                                                                            73,691,421

- ------------------------------------------------------------------------------------------------------
Structured Notes--0.3%
- ------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc./Redwood Capital I Ltd.,
Catastrophe Linked Bonds, 7.306%, 1/1/03 8,11                                   500,000        498,740
- ------------------------------------------------------------------------------------------------------
Swiss Re Capital Markets Corp./Fujiyama Ltd., Catastrophe Linked Nts.,
5.92%, 5/16/05 6,11                                                             250,000        249,808
                                                                                          ------------
                                                                                               748,548
                                                                                          ------------
Total Corporate Sector (Cost $94,436,233)                                                   74,524,385

                                                                                 Shares
- ------------------------------------------------------------------------------------------------------
International Sector--30.1%
- ------------------------------------------------------------------------------------------------------
Common Stocks--0.0%
- ------------------------------------------------------------------------------------------------------
COLT Telecom Group plc, ADR 5                                                     7,020         13,900
- ------------------------------------------------------------------------------------------------------
Viatel Holding Ltd. (Bermuda) 5,6                                                   579            295
                                                                                          ------------
                                                                                                14,195

                                                                              Principal
                                                                                 Amount
- ------------------------------------------------------------------------------------------------------
Corporate Bonds and Notes--4.1%
- ------------------------------------------------------------------------------------------------------
Consumer Discretionary--0.4%
- ------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--0.3%
Intrawest Corp., 9.75% Sr. Nts., 8/15/08                                   $    600,000        585,000
- ------------------------------------------------------------------------------------------------------
Royal Caribbean Cruises Ltd., 8.75% Sr. Unsub. Nts., 2/2/11                     200,000        174,290
                                                                                          ------------
                                                                                               759,290
- ------------------------------------------------------------------------------------------------------
Media--0.1%
Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12                          200,000        207,500
- ------------------------------------------------------------------------------------------------------
United Pan-Europe Communications NV, 0%/
13.75% Sr. Unsec. Disc. Nts., Series B, 2/1/10 5,7,9                          1,000,000         25,000
                                                                                          ------------
                                                                                               232,500
- ------------------------------------------------------------------------------------------------------
Consumer Staples--0.5%
- ------------------------------------------------------------------------------------------------------
Food Products--0.5%
Sparkling Spring Water Group Ltd., 11.50% Sr. Sec. Sub. Nts., 11/15/07 6        300,000        277,500
- ------------------------------------------------------------------------------------------------------
United Biscuits Finance plc, 10.75% Sr. Sub. Nts., 4/15/11 6                    500,000        868,298
                                                                                          ------------
                                                                                             1,145,798
- ------------------------------------------------------------------------------------------------------
Energy--0.9%
- ------------------------------------------------------------------------------------------------------
Energy Equipment & Services--0.4%
Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08                             1,200,000      1,050,000
- ------------------------------------------------------------------------------------------------------
Oil & Gas--0.5%
Petroleos Mexicanos:
7.375% Unsec. Nts., 8/13/07 6 [ITL]                                         388,870,000        192,423
9.375% Sr. Unsec. Bonds, 12/2/08                                                300,000        330,750

19 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                         Principal   Market Value
                                                                            Amount     See Note 1
- -------------------------------------------------------------------------------------------------

Oil & Gas Continued
Petronas Capital Ltd.:
7.875% Nts., 5/22/22                                                  $    400,000   $    415,930
7.875% Nts., 5/22/22 8                                                     210,000        218,041
                                                                                     ------------
                                                                                        1,157,144

- -------------------------------------------------------------------------------------------------
Financials--1.0%
- -------------------------------------------------------------------------------------------------
Banks--0.8%
Chohung Bank, 11.875% Sub. Nts., 4/1/10 11                                 360,000        419,696
- -------------------------------------------------------------------------------------------------
European Investment Bank Eligible Interest Nts., 3%, 9/20/06 [JPY]     118,000,000      1,068,752
- -------------------------------------------------------------------------------------------------
Hanvit Bank, 12.75% Unsec. Sub. Nts., 3/1/10 11                            360,000        424,132
                                                                                     ------------
                                                                                        1,912,580

- -------------------------------------------------------------------------------------------------
Diversified Financials--0.2%
Eurofima, 7.50% Sr. Unsec. Unsub. Nts., 11/4/02 [DEM]                      770,000        389,925
- -------------------------------------------------------------------------------------------------
Industrials--0.5%
- -------------------------------------------------------------------------------------------------
Industrial Conglomerates--0.5%
Tyco International Group SA, 6.375% Nts., 10/15/11                       1,300,000      1,107,148
- -------------------------------------------------------------------------------------------------
Marine--0.0%
Pacific & Atlantic Holdings, Inc., 10.50% Sec. Nts., 12/31/07 8            149,915         60,715
- -------------------------------------------------------------------------------------------------
Information Technology--0.3%
- -------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.3%
Flextronics International Ltd., 9.875% Sr. Unsec. Sub. Nts., 7/1/10        600,000        627,000
- -------------------------------------------------------------------------------------------------
Materials--0.3%
- -------------------------------------------------------------------------------------------------
Chemicals--0.0%
PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08                           87,434         59,892
- -------------------------------------------------------------------------------------------------
Containers & Packaging--0.1%
MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 8                           200,000        206,000
- -------------------------------------------------------------------------------------------------
Paper & Forest Products--0.2%
Ainsworth Lumber Co. Ltd., 13.875% Sr. Sec. Nts., 7/15/07                  250,000        265,000
- -------------------------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 5,7                         750,000        138,750
                                                                                     ------------
                                                                                          403,750

- -------------------------------------------------------------------------------------------------
Telecommunication Services--0.2%
- -------------------------------------------------------------------------------------------------
Diversified Telecommunication Services--0.2%
360networks, Inc., 13% Sr. Unsec. Nts., 5/1/08 5,6,7 [EUR]                 600,000             30
- -------------------------------------------------------------------------------------------------
Diamond Cable Communications plc, 11.75% Sr. Disc. Nts., 12/15/05 7        200,000         15,000
- -------------------------------------------------------------------------------------------------
France Telecom SA, 8.25% Sr. Unsec. Nts., 3/1/11                           260,000        287,370
- -------------------------------------------------------------------------------------------------
NTL Communications Corp., 0%/11.50% Sr. Nts., 11/15/09 5,7,9 [EUR]         750,000         63,132
- -------------------------------------------------------------------------------------------------
Telewest Communications plc:
0%/9.25% Sr. Disc. Nts., 4/15/09 7,9                                       100,000          9,500
0%/9.875% Sr. Disc. Nts., 4/15/09 6,7,9 [GBP]                              200,000         34,419
11.25% Sr. Nts., 11/1/08 7                                                 700,000         84,000
                                                                                     ------------
                                                                                          493,451

20 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                 Principal Market Value
                                                                                    Amount   See Note 1
- ------------------------------------------------------------------------------------------------------

Wireless Telecommunication Services--0.0%
Microcell Telecommunications, Inc., 0%/12% Sr. Unsec. Disc. Nts., 6/1/09 7,9   $  300,000   $    6,375
- ------------------------------------------------------------------------------------------------------
Utilities--0.0%
- ------------------------------------------------------------------------------------------------------
Electric Utilities--0.0%
AES Drax Holdings Ltd., 10.41% Sr. Sec. Sub. Nts., Series B, 12/31/20             300,000      121,500
                                                                                            ----------
                                                                                             9,733,068

- ------------------------------------------------------------------------------------------------------
Foreign Government Obligations--21.4%
- ------------------------------------------------------------------------------------------------------
Argentina--0.6%
Argentina (Republic of) Bonds:
11.375%, 3/15/10 5,6,7                                                            765,000      172,125
11.75%, 6/15/15 7                                                               1,510,000      343,525
Series 2008, 7%, 12/19/08 7                                                       670,000      150,750
Series 2018, 3.063%, 6/19/18 7                                                  1,225,744      251,278
- ------------------------------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 5.984%, 3/31/23 7                              235,000       99,875
- ------------------------------------------------------------------------------------------------------
Argentina (Republic of) Unsec. Bonds, 12.375%, 2/21/12 5,7                        430,000       96,750
- ------------------------------------------------------------------------------------------------------
Argentina (Republic of) Unsub. Bonds, Series 2031, 2.79%, 6/19/31 7               981,560      191,404
- ------------------------------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, Bonos de Consolidacion
de Deudas, Series PBA1, 3.257%, 4/1/07 6,7 [ARP]                                   75,660       12,128
                                                                                            ----------
                                                                                             1,317,835

- ------------------------------------------------------------------------------------------------------
Australia--0.2%
Australia (Commonwealth of) Bonds, Series 808, 8.75%, 8/15/08 [AUD]               835,000      543,329
- ------------------------------------------------------------------------------------------------------
Austria--0.5%
Austria (Republic of) Bonds:
3.40%, 10/20/04 [EUR]                                                             273,000      270,920
4.30%, 7/15/03 [EUR]                                                              150,000      149,733
6.25%, 7/15/27 [EUR]                                                               94,000      106,120
- ------------------------------------------------------------------------------------------------------
Austria (Republic of) Nts., 5.50%, 10/20/07 [EUR]                                 543,000      574,783
                                                                                            ----------
                                                                                             1,101,556

- ------------------------------------------------------------------------------------------------------
Belgium--0.6%
Belgium (Kingdom of) Bonds:
5%, 9/28/11 [EUR]                                                                  60,000       61,052
5.50%, 3/28/28 [EUR]                                                              160,000      164,026
Series 26, 6.25%, 3/28/07 [EUR]                                                   760,000      823,375
- ------------------------------------------------------------------------------------------------------
Belgium (Kingdom of) Debs., 7.25%, 4/29/04 [EUR]                                  365,000      382,713
                                                                                            ----------
                                                                                             1,431,166

- ------------------------------------------------------------------------------------------------------
Belize--0.1%
Belize (Government of) Bonds, 9.50%, 8/15/12 6                                    165,000      164,092
- ------------------------------------------------------------------------------------------------------
Brazil--1.1%
Brazil (Federal Republic of) Bonds:
8.875%, 4/15/24                                                                 1,989,000      934,830
Series 15 yr., 2.625%, 4/15/09 11                                                 374,706      222,950
- ------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Debt Capitalization Bonds,
Series 20 yr., 8%, 4/15/14                                                          8,620        5,048

21 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                                 Principal Market Value
                                                                                    Amount   See Note 1
- -------------------------------------------------------------------------------------------------------

Brazil Continued
Brazil (Federal Republic of) Debt Conversion Bonds:
Series 18 yr., 2.625%, 4/15/12 11                                               $  885,000   $  422,588
Series D, 2.625%, 4/15/12 11                                                     1,040,000      496,600
- -------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Unsec. Unsub. Bonds, 11%, 8/17/39                     965,000      521,100
                                                                                             ----------
                                                                                              2,603,116

- -------------------------------------------------------------------------------------------------------
Bulgaria--0.1%
Bulgaria (Republic of) Interest Arrears Debs., Series PDI, 2.688%, 7/28/11 11      341,440      311,564
- -------------------------------------------------------------------------------------------------------
Canada--0.2%
Canada (Government of) Bonds, 5.50%, 6/1/09 [CAD]                                  735,000      493,086
- -------------------------------------------------------------------------------------------------------
Chile--0.2%
Chile (Republic of) Nts., 7.125%, 1/11/12                                          490,000      525,569
- -------------------------------------------------------------------------------------------------------
Colombia--0.8%
Colombia (Republic of) Bonds:
9.75%, 4/23/09                                                                     170,000      154,275
10%, 1/23/12                                                                       431,000      390,055
- -------------------------------------------------------------------------------------------------------
Colombia (Republic of) Nts., 8.625%, 4/1/08 [EUR]                                  120,000      107,100
- -------------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsec. Unsub. Bonds, 8.375%, 2/15/27 [EUR]                  780,000      540,150
- -------------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsec. Unsub. Nts.:
11.375%, 1/31/08 [EUR]                                                             695,000      633,198
11.50%, 5/31/11 [EUR]                                                              100,000       87,146
                                                                                             ----------
                                                                                              1,911,924

- -------------------------------------------------------------------------------------------------------
Dominican Republic--0.2%
- -------------------------------------------------------------------------------------------------------
Dominican Republic Unsec. Unsub. Bonds, 9.50%, 9/27/06                             543,000      571,507
- -------------------------------------------------------------------------------------------------------
Ecuador--0.5%
Ecuador (Republic of) Unsec. Bonds, 6%, 8/15/30 11                               2,852,000    1,176,450
- -------------------------------------------------------------------------------------------------------
El Salvador--0.3%
El Salvador (Republic of) Bonds, 7.75%, 1/24/23 8                                  200,000      197,500
- -------------------------------------------------------------------------------------------------------
El Salvador (Republic of) Unsec. Nts., 8.50%, 7/25/11 8                            430,000      456,875
                                                                                             ----------
                                                                                                654,375

- -------------------------------------------------------------------------------------------------------
Finland--0.2%
Finland (Republic of) Treasury Bills, Zero Coupon, 3.10%, 4/8/03 1 [EUR]           480,000      469,366
- -------------------------------------------------------------------------------------------------------
France--1.3%
France (Government of) Obligations Assimilables du Tresor Bonds,
5%, 7/25/12 [EUR]                                                                  255,000      260,026
- -------------------------------------------------------------------------------------------------------
France (Government of) Treasury Nts.:
3.50%, 7/12/04 [EUR]                                                             1,020,000    1,017,182
3.75%, 1/12/07 [EUR]                                                             1,860,000    1,843,699
                                                                                             ----------
                                                                                              3,120,907

- -------------------------------------------------------------------------------------------------------
Germany--1.3%
Germany (Republic of) Bonds:
Series 01, 5%, 7/4/11 [EUR]                                                        220,000      225,992
Series 139, 4%, 2/16/07 [EUR]                                                    1,775,000    1,775,360
- -------------------------------------------------------------------------------------------------------
Treuhandanstalt Gtd. Nts., 6.75%, 5/13/04 [EUR]                                    965,000    1,006,432
                                                                                             ----------
                                                                                              3,007,784

22 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                              Principal Market Value
                                                                                 Amount   See Note 1
- ----------------------------------------------------------------------------------------------------

Great Britain--0.8%
United Kingdom Treasury Bonds, 5.75%, 12/7/09 [GBP]                           1,075,000   $1,813,139
- ----------------------------------------------------------------------------------------------------
Greece--0.3%
Greece (Republic of) Bonds, 5.35%, 5/18/11 [EUR]                                650,000      671,374
- ----------------------------------------------------------------------------------------------------
Guatemala--0.2%
Guatemala (Republic of) Nts.:
10.25%, 11/8/11 6                                                               170,000      196,775
10.25%, 11/8/11 6                                                               160,000      185,200
                                                                                          ----------
                                                                                             381,975

- ----------------------------------------------------------------------------------------------------
Italy--1.7%
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
0.375%, 10/10/06 [JPY]                                                       59,000,000      485,687
5.25%, 8/1/11 [EUR]                                                           2,945,000    3,057,005
- ----------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Nts., Cert Di Credito Del Tesoro,
3.90%, 2/1/03 11 [EUR]                                                          640,000      634,743
                                                                                          ----------
                                                                                           4,177,435

- ----------------------------------------------------------------------------------------------------
Ivory Coast--0.0%
Ivory Coast (Government of) Past Due Interest Bonds,
Series F, 1.905%, 3/29/18 5,7 [FRF]                                           3,857,000      103,357
- ----------------------------------------------------------------------------------------------------
Mexico--1.4%
United Mexican States Bonds:
8.30%, 8/15/31                                                                1,290,000    1,283,550
11.375%, 9/15/16                                                                 45,000       57,038
- ----------------------------------------------------------------------------------------------------
United Mexican States Nts.:
7.50%, 1/14/12                                                                1,127,000    1,176,306
8.125%, 12/30/19                                                                795,000      795,000
8.375%, 1/14/11                                                                 130,000      140,400
                                                                                          ----------
                                                                                           3,452,294

- ----------------------------------------------------------------------------------------------------
Nigeria--0.1%
Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 7      323,243      165,454
- ----------------------------------------------------------------------------------------------------
Norway--0.4%
Norway (Kingdom of) Bonds, 5.50%, 5/15/09 [NOK]                               4,285,000      556,210
- ----------------------------------------------------------------------------------------------------
Norway (Kingdom of) Treasury Bills, Zero Coupon,
Series SS75, 6.69%, 3/19/03 1 [NOK]                                           2,195,000      287,960
                                                                                          ----------
                                                                                             844,170

- ----------------------------------------------------------------------------------------------------
Panama--0.2%
Panama (Republic of) Bonds, 9.375%, 4/1/29                                      501,000      533,565
- ----------------------------------------------------------------------------------------------------
Panama (Republic of) Interest Reduction Bonds, 5%, 7/17/14 11                     8,891        7,802
- ----------------------------------------------------------------------------------------------------
Panama (Republic of) Past Due Interest Debs., 2.75%, 7/17/16 11                  40,090       30,569
                                                                                          ----------
                                                                                             571,936

- ----------------------------------------------------------------------------------------------------
Philippines--0.7%
Philippines (Republic of) Bonds, 9.375%, 1/18/17                                500,000      516,250
- ----------------------------------------------------------------------------------------------------
Philippines (Republic of) Nts., 10.625%, 3/16/25                                 65,000       67,112

23| OPPENHEIMER MULTI-SECTOR INCOME TRUST

STATEMENT OF INVESTMENTS  Continued
                                                                                 Principal Market Value
                                                                                    Amount   See Note 1
- -------------------------------------------------------------------------------------------------------

Philippines Continued
Philippines (Republic of) Unsec. Bonds:
8.875%, 4/15/08                                                               $   240,000   $   252,000
9.875%, 1/15/19                                                                   945,000       939,094
                                                                                            -----------
                                                                                              1,774,456

- -------------------------------------------------------------------------------------------------------
Portugal--0.3%
Portugal (Republic of) Obrig Do Tes Medio Prazo Nts., 4.875%, 8/17/07 [EUR]       250,000       257,588
- -------------------------------------------------------------------------------------------------------
Portugal (Republic of) Obrig Do Tes Medio Prazo Unsec
Unsub. Bonds, 5.85%, 5/20/10 [EUR]                                                335,000       360,470
                                                                                            -----------
                                                                                                618,058

- -------------------------------------------------------------------------------------------------------
Russia--3.1%
Ministry Finance of Russia Debs.:
Series V, 3%, 5/14/08 10                                                        4,040,000     3,073,131
Series VI, 3%, 5/14/06 10                                                       1,075,000       939,099
- -------------------------------------------------------------------------------------------------------
Russian Federation Unsub. Nts., 5%, 3/31/30 11                                  4,304,750     3,289,098
                                                                                            -----------
                                                                                              7,301,328

- -------------------------------------------------------------------------------------------------------
South Africa--0.6%
South Africa (Republic of) Unsec. Nts.:
7.375%, 4/25/12                                                                   735,000       775,425
8.50%, 6/23/17                                                                    510,000       550,800
                                                                                            -----------
                                                                                              1,326,225

- -------------------------------------------------------------------------------------------------------
Spain--0.2%
Spain (Kingdom of) Bonds, Bonos y Obligacion del Estado,
5.75%, 7/30/32 [EUR]                                                              500,000       518,125
- -------------------------------------------------------------------------------------------------------
Supranational--0.3%
European Investment Bank Nts., 2.125%, 9/20/07 [JPY]                           85,000,000       758,277
- -------------------------------------------------------------------------------------------------------
Sweden--0.1%
Sweden (Kingdom of) Debs., Series 1040, 6.50%, 5/5/08 [SEK]                     2,360,000       279,870
- -------------------------------------------------------------------------------------------------------
The Netherlands--0.8%
The Netherlands (Government of) Bonds:
5%, 7/15/11 [EUR]                                                                 273,000       279,652
5.50%, 1/15/28 [EUR]                                                              137,000       142,346
5.75%, 1/15/04 [EUR]                                                              324,000       330,964
Series 1, 5.75%, 2/15/07 [EUR]                                                    670,000       714,657
- -------------------------------------------------------------------------------------------------------
The Netherlands (Government of) Treasury Bills,
Zero Coupon, 3.13%, 2/28/03 1 [EUR]                                               420,000       411,889
                                                                                            -----------
                                                                                              1,879,508

- -------------------------------------------------------------------------------------------------------
Turkey--0.3%
Turkey (Republic of) Bonds, 11.75%, 6/15/10                                       135,000       132,638
- -------------------------------------------------------------------------------------------------------
Turkey (Republic of) Sr. Unsec. Unsub. Nts., 11.875%, 1/15/30                     590,000       553,125
- -------------------------------------------------------------------------------------------------------
Turkey (Republic of) Sr. Unsub. Bonds, 12.375%, 6/15/09                           140,000       142,800
                                                                                            -----------
                                                                                                828,563

24 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                                          Principal  Market Value
                                                                                             Amount    See Note 1
- -----------------------------------------------------------------------------------------------------------------

Ukraine--0.3%
Ukraine (Republic of) Sr. Unsec. Nts., 11%, 3/15/07                                     $   785,400   $   812,104
- -----------------------------------------------------------------------------------------------------------------
Uruguay--0.0%
Banco Central Del Uruguay Nts., Series A, 6.75%, 2/19/21                                    120,000        78,600
- -----------------------------------------------------------------------------------------------------------------
Venezuela--1.4%
Venezuela (Republic of) Bonds, 9.25%, 9/15/27                                             1,270,000       876,300
- -----------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Collateralized Par Bonds, Series W-A, 6.75%, 3/31/20                265,000       211,833
- -----------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Debs., Series DL, 2.875%, 12/18/07 11                             2,171,190     1,709,813
- -----------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction Bonds:
Series A, 2.688%, 3/31/07 11                                                                357,848       276,438
Series B, 2.688%, 3/31/07 11                                                                293,564       226,778
                                                                                                      -----------
                                                                                                        3,301,162
                                                                                                      -----------
                                                                                                       51,061,036

- -----------------------------------------------------------------------------------------------------------------
Loan Participations--1.2%
- -----------------------------------------------------------------------------------------------------------------
Algeria (Republic of) Loan Participation Nts., 2.625%, 3/4/10 6,11                        1,083,750       964,537
- -----------------------------------------------------------------------------------------------------------------
Deutsche Bank AG:
Indonesia Rupiah Loan Participation Nts., 2.636%, 12/14/13 6,7                              525,000       225,750
Indonesia Rupiah Loan Participation Nts., 2.636%, 5/21/04 7                                 335,000       157,450
Indonesia Rupiah Loan Participation Nts., 2.636%, 3/25/05 6,7                               175,000        87,500
OAO Gazprom Loan Participation Nts., 9.50%, 2/19/03                                         360,000       362,880
OAO Gazprom Loan Participation Nts., 10%, 12/6/02 6                                         675,000       676,417
- -----------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 2.563%, 1/1/09 6,11                                                              285,000       252,938
                                                                                                      -----------
                                                                                                        2,727,472

                                                        Date         Strike               Contracts
- -----------------------------------------------------------------------------------------------------------------
Options Purchased--0.0%
- -----------------------------------------------------------------------------------------------------------------
Japanese Yen Call 5,6                                 2/18/03       116.33JPY           280,189,000        11,768


                                                                                             Shares
- -----------------------------------------------------------------------------------------------------------------
Preferred Stocks--0.0%
- -----------------------------------------------------------------------------------------------------------------
Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series A 4,5,6                             8,102        16,204

                                                                                              Units
- -----------------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
- -----------------------------------------------------------------------------------------------------------------
Banco Central Del Uruguay Rts., Exp. 1/2/21 5                                               120,000            --
- -----------------------------------------------------------------------------------------------------------------
Mexico Value Rts., Exp. 6/30/03 5                                                            28,538             9
- -----------------------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc. Wts., Exp. 6/1/06 5,8                                      2,800           952
- -----------------------------------------------------------------------------------------------------------------
Telus Corp. Wts., Exp. 9/15/05 5,6                                                              539           135
                                                                                                      -----------
                                                                                                            1,096

25 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                              Principal Market Value
                                                                                 Amount   See Note 1
- ----------------------------------------------------------------------------------------------------

Structured Notes--3.4%
- ----------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp. (Nassau Branch),
U.S. Dollar/Philippine Peso Linked Nts., 12.50%, 3/15/12 11 [PHP]            32,130,000   $  603,288
- ----------------------------------------------------------------------------------------------------
Credit Suisse First Boston International, U.S. Dollar/
South African Rand Linked Nts., 1.965%, 5/23/22 6,11                            540,000      533,682
- ----------------------------------------------------------------------------------------------------
Deutsche Bank AG:
Colombian Peso Linked Nts., 1.824%, 4/22/04 11                                  215,000      210,850
Columbian Peso Linked Nts., 14.61%, 8/8/04 11                                   230,000      239,108
Mexican Peso Linked Nts., 1.66%, 4/9/12 11                                    1,445,880    1,326,450
Brazilian Real Linked Nts., 22%, 2/8/04                                         965,000      784,448
Mexican Peso Linked Nts., 5.65%, 10/29/12 11                                    695,000      697,641
Mexican Peso Linked Nts., 5.752%, 10/28/12 11                                   695,000      701,603
- ----------------------------------------------------------------------------------------------------
JPMorgan Chase Bank:
Hungarian Forint/Euro Linked Bonds, 2%, 7/14/03                                 620,000      623,286
EMBI Plus/EMBI Global Linked Bonds, 1.02%, 3/11/03                              510,000      460,509
EMBI Plus/EMBI Global Linked Bonds, 1.20%, 4/4/03                               330,000      293,038
Hungarian Forint/Euro Linked Nts., 1.82%, 8/6/03                                540,000      534,924
Polish Zloty/Euro Linked Nts., 1.572%, 4/28/03 10                               610,000      610,000
- ----------------------------------------------------------------------------------------------------
Salomon Smith Barney, Inc., Mexican Peso Linked Nts., 1.78%, 12/6/02 [MXN]    6,249,600      594,977
                                                                                         -----------
                                                                                           8,213,804
                                                                                         -----------
Total International Sector (Cost $74,606,456)                                             71,778,643

- ----------------------------------------------------------------------------------------------------
Asset-Backed Sector--62.5%
- ----------------------------------------------------------------------------------------------------
Asset-Backed Securities--2.7%
- ----------------------------------------------------------------------------------------------------
Credit Card--0.4%
Consumer Credit Reference Index Securities Program, Credit Card
Asset-Backed Certificates, Series 2002-B, Cl. FX, 10.421%, 3/22/07 6          1,000,000    1,050,000
- ----------------------------------------------------------------------------------------------------
Home Equity Loan--1.4%
Conseco Finance Securitizations Corp., Home Equity Loan
Pass-Through Certificates, Series 2001-D, Cl. M2, 3.553%, 11/15/32 11         2,400,000    2,338,070
- ----------------------------------------------------------------------------------------------------
Principal Residential Mortgage Capital Resources Trust, Real Estate
Mtg. Investment Conduit Participation Certificates, Series 2000-1,
Cl. B, 3.48%, 6/20/05 6,11                                                    1,000,000      988,125
                                                                                         -----------
                                                                                           3,326,195

- ----------------------------------------------------------------------------------------------------
Manufactured Housing--0.9%
Lehman ABS Manufactured Housing Contract, Commercial Mtg
Pass-Through Certificates, Series 2001-B, Cl. A4, 5.27%, 9/15/18              2,000,000    2,085,032
                                                                                         -----------
                                                                                           6,461,227

- ----------------------------------------------------------------------------------------------------
Government Agency--48.4%
- ----------------------------------------------------------------------------------------------------
FHLMC/FNMA/Sponsored--48.1%
Federal Home Loan Mortgage Corp., 12%, 5/1/10-6/1/15                            380,480      442,865
- ----------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg
Investment Conduit Multiclass Pass-Through Certificates:
Series 2054, Cl. TE, 6.25%, 4/15/24                                             534,000      547,665
Series 2430, Cl. ND, 6.50%, 1/15/31                                           5,000,000    5,254,301

26 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

                                                                             Principal   Market Value
                                                                                Amount     See Note 1
- -----------------------------------------------------------------------------------------------------

FHLMC/FNMA/Sponsored Continued
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 194, Cl. IO, (35.75)%, 4/1/28 12                                   $    958,651   $    127,920
Series 197, Cl. IO, (21.75)%, 4/1/28 12                                      2,970,816        434,018
Series 199, Cl. IO, (33.64)%, 8/1/28 12                                      6,613,213        862,818
Series 202, Cl. IO, (32.02)%, 4/1/29 12                                     24,263,073      3,381,666
Series 208, Cl. IO, (41.51)%, 6/1/30 12                                      2,410,178        304,285
- -----------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Multiclass Mtg. Participation
Certificates, Series 1331, Cl. Z, 8%, 4/15/07                                  641,357        656,061
- -----------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 11/25/32 10                                                             11,044,000     11,351,156
6.50%, 11/25/32 10                                                          66,000,000     68,392,500
6.50%, 1/1/29 2                                                              6,591,571      6,841,877
7%, 9/1/29-12/1/29                                                           1,315,519      1,375,580
7%, 11/25/32 10                                                             12,225,000     12,775,125
7.50%, 6/1/10-9/1/29                                                         1,554,101      1,646,585
11%, 7/1/16                                                                    147,044        169,635
13%, 6/1/15                                                                    291,959        348,616
                                                                                         ------------
                                                                                          114,912,673

- -----------------------------------------------------------------------------------------------------
GNMA/Guaranteed--0.3%
Government National Mortgage Assn.:
6.75%, 7/20/27                                                                  63,637         65,573
7%, 1/15/28-3/15/28                                                            347,451        365,556
11%, 10/20/19                                                                   97,723        113,304
12%, 11/20/13-9/20/15                                                           94,061        110,803
                                                                                         ------------
                                                                                              655,236
                                                                                         ------------
                                                                                          115,567,909

- -----------------------------------------------------------------------------------------------------
Private--11.4%
- -----------------------------------------------------------------------------------------------------
Commercial--6.4%
Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates:
Series 1995-MD4, Cl. A5, 7.384%, 8/13/29                                     1,500,000      1,620,630
Series 1996-D2, Cl. A3, 7.349%, 2/14/29 11                                   3,000,000      3,130,312
Series 1997-D4, Cl. B2, 7.525%, 4/14/29                                      2,000,000      1,670,156
- -----------------------------------------------------------------------------------------------------
Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed
Pass-Through Certificates, Series 1997-CTL1, 10.97%, 6/22/24 6,12            9,653,503        328,822
- -----------------------------------------------------------------------------------------------------
Commercial Mortgage Acceptance Corp., Interest-Only Stripped
Mtg.-Backed Security, Series 1996-C1, Cl. X-2, 51.60%, 12/25/20 6,12         3,278,670          1,025
- -----------------------------------------------------------------------------------------------------
First Union-Lehman Brothers Commercial Mortgage Trust, Commercial
Mtg. Pass-Through Certificates, Series 1997-C2, Cl. F, 7.50%, 11/18/29         600,000        533,297
- -----------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc., Interest-Only Stripped
Mtg.-Backed Security Pass-Through Certificates, Series 1997-C1, Cl. X,
8.281%, 7/15/27 12                                                           2,919,072        178,337
- -----------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc., Mtg. Pass-Through
Certificates, Series 1998-C1, Cl. F, 7.098%, 5/15/30 11                      2,000,000      1,816,360
- -----------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-MC2, Cl. F, 5.75%, 12/21/26                        1,600,000      1,521,250
- -----------------------------------------------------------------------------------------------------
Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through
Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15                3,700,000      4,081,563

27 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued

                                                                                        Principal      Market Value
                                                                                           Amount        See Note 1
- -------------------------------------------------------------------------------------------------------------------

Commercial Continued
Strategic Hotel Capital, Inc., Commercial Mtg. Obligations,
Series 2001-SCH1, Cl. E, 4.003%, 4/17/06 6,11                                       $     498,957    $      425,049
                                                                                                     --------------
                                                                                                         15,306,801

- -------------------------------------------------------------------------------------------------------------------
Residential--5.0%
Lehman Structured Securities Corp., Collateralized Mtg. Obligations,
Series 2001-GE4, Cl. A, 7.18%, 10/25/30 11                                              1,039,818         1,043,068
- -------------------------------------------------------------------------------------------------------------------
PNC Mortgage Securities Corp., Collateralized Mtg. Obligations
Pass-Through Certificates, Series 1998-11, Cl. 1A5, 6.50%, 11/25/28                    10,000,000        10,234,350
- -------------------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII, Inc., Commercial Mtg
Pass-Through Certificates, Series 1996-B, Cl. 1, 7.007%, 4/25/26 6,11                     808,769           654,596
                                                                                                     --------------
                                                                                                         11,932,014
                                                                                                     --------------
Total Asset-Backed Sector (Cost $152,545,570)                                                           149,267,951

- -------------------------------------------------------------------------------------------------------------------
Money Market Sector--1.1%
- -------------------------------------------------------------------------------------------------------------------
Short-Term Notes--0.9%
- -------------------------------------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc., Series B, 1.90%, 12/9/02                    1,000,000           997,994
- -------------------------------------------------------------------------------------------------------------------
Scaldis Capital LLC, 1.87%, 12/16/02                                                    1,000,000           997,663
                                                                                                     --------------
                                                                                                          1,995,657

- -------------------------------------------------------------------------------------------------------------------
Repurchase Agreements--0.2%
- -------------------------------------------------------------------------------------------------------------------
Undivided interest of 0.42% in joint repurchase agreement (Market Value
$129,581,000) with Banc One Capital Markets, Inc., 1.85%, dated 10/31/02,
to be repurchased at $547,028 on 11/1/02, collateralized by U.S. Treasury Nts.,
5.50%, 1/31/03, with a value of $35,825,650, U.S. Treasury Bonds, 2.125%--3.375%,
4/30/04--10/31/04, with a value of $70,274,478 and U.S. Treasury Bills, 5/1/03,
with a value of $26,187,598 (Cost $547,000)                                               547,000           547,000
                                                                                                     --------------
Total Money Market Sector (Cost $2,542,657)                                                               2,542,657
- -------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $356,638,282)                                             138.0%      329,484,238
- -------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets                                                       (38.0)      (90,714,140)
                                                                                      -----------------------------
Net Assets                                                                                  100.0%    $ 238,770,098
                                                                                      =============================

28| OPPENHEIMER MULTI-SECTOR INCOME TRUST Footnotes to Statement of Investments Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: ARP Argentine Peso AUD Australian Dollar CAD Canadian Dollar DEM German Mark EUR Euro FRF French Franc GBP British Pound Sterling ITL Italian Lira JPY Japanese Yen MXN Mexican Nuevo Peso NOK Norwegian Krone PHP Philippines Peso SEK Swedish Krona 1. Zero coupon bond reflects effective yield on the date of purchase. 2. Securities with an aggregate market value of $5,185,521 are held in collateralized accounts to cover initial margin requirements on open futures sales contracts. See Note 6 of Notes to Financial Statements. 3. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of Notes to Financial Statements. 4. Interest or dividend is paid-in-kind. 5. Non-income producing security. 6. Identifies issues considered to be illiquid or restricted--See Note 9 of Notes to Financial Statements. 7. Issuer is in default. 8. 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 $8,588,599 or 3.60% of the Fund's net assets as of October 31, 2002. 9. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 10. When-issued security to be delivered and settled after October 31, 2002. 11. Represents the current interest rate for a variable or increasing rate security. 12. 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. 13. The issuer has filed bankruptcy. This security is valued under guidelines established by the Board of Trustees and is considered illiquid. See accompanying Notes to Financial Statements. 29 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF ASSETS AND LIABILITIES October 31, 2002

- ----------------------------------------------------------------------------------------------

 Assets
 Investments, at value (cost $356,638,282)--see accompanying statement           $ 329,484,238
- ----------------------------------------------------------------------------------------------
 Cash                                                                                3,153,243
- ----------------------------------------------------------------------------------------------
 Cash--foreign currencies (cost $1,900)                                                  1,197
- ----------------------------------------------------------------------------------------------
 Swap contract                                                                          10,268
- ----------------------------------------------------------------------------------------------
 Unrealized appreciation on foreign currency contracts                                  33,885
- ----------------------------------------------------------------------------------------------
 Receivables and other assets:
 Interest, dividends and principal paydowns                                          4,317,767
 Investments sold (including $1,476,403 sold on a when-issued basis)                 1,936,602
 Daily variation on futures contracts                                                  136,292
 Other                                                                                   3,660
                                                                                --------------
 Total assets                                                                      339,077,152

- ----------------------------------------------------------------------------------------------
 Liabilities
 Unrealized depreciation on foreign currency contracts                                 149,135
- ----------------------------------------------------------------------------------------------
 Payables and other liabilities:
 Investments purchased (including $94,859,665 purchased on a when-issued basis)     99,841,617
 Trustees' compensation                                                                 68,143
 Shareholder reports                                                                    41,652
 Closed foreign currency contracts                                                      20,787
 Management and administrative fees                                                     18,995
 Other                                                                                 166,725
                                                                                --------------
 Total liabilities                                                                 100,307,054


- ----------------------------------------------------------------------------------------------
 Net Assets                                                                      $ 238,770,098
                                                                                ==============

- ----------------------------------------------------------------------------------------------
 Composition of Net Assets
- ----------------------------------------------------------------------------------------------
 Par value of shares of beneficial interest                                      $     292,299
- ----------------------------------------------------------------------------------------------
 Additional paid-in capital                                                        307,442,919
- ----------------------------------------------------------------------------------------------
 Undistributed net investment income                                                     4,960
- ----------------------------------------------------------------------------------------------
 Accumulated net realized loss on investments and foreign currency transactions    (41,893,238)
- ----------------------------------------------------------------------------------------------
 Net unrealized depreciation on investments and translation of
 assets and liabilities denominated in foreign currencies                          (27,076,842)
                                                                                --------------
 Net Assets--applicable to 29,229,920 shares of beneficial interest outstanding  $ 238,770,098
                                                                                ==============

- ----------------------------------------------------------------------------------------------
 Net Asset Value Per Share                                                               $8.17
                                                                                ==============

See accompanying Notes to Financial Statements. 30 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

STATEMENT OF OPERATIONS  For the Year Ended October 31, 2002

- --------------------------------------------------------------------------------------

 Investment Income

 Interest                                                                 $ 20,764,735
- --------------------------------------------------------------------------------------
 Dividends                                                                     273,536
                                                                          ------------
 Total investment income                                                    21,038,271

- --------------------------------------------------------------------------------------
 Expenses
 Management fees                                                             1,583,420
- --------------------------------------------------------------------------------------
 Shareholder reports                                                           106,654
- --------------------------------------------------------------------------------------
 Transfer and shareholder servicing agent fees                                  45,364
- --------------------------------------------------------------------------------------
 Custodian fees and expenses                                                    40,068
- --------------------------------------------------------------------------------------
 Legal, auditing and other professional fees                                    33,640
- --------------------------------------------------------------------------------------
 Trustees' compensation                                                         13,045
- --------------------------------------------------------------------------------------
 Accounting service fees                                                         4,000
- --------------------------------------------------------------------------------------
 Other                                                                         171,106
                                                                          ------------
 Total expenses                                                              1,997,297
 Less reduction to custodian expenses                                           (3,971)
                                                                          ------------
 Net expenses                                                                1,993,326


- --------------------------------------------------------------------------------------
 Net Investment Income                                                      19,044,945

- --------------------------------------------------------------------------------------
 Realized and Unrealized Gain (Loss)
 Net realized gain (loss) on:
 Investments (including premiums on options exercised)                     (10,143,935)
 Closing of futures contracts                                                3,685,788
 Closing and expiration of option contracts written                             69,547
 Foreign currency transactions                                               1,165,949
                                                                          ------------
 Net realized loss                                                          (5,222,651)

- --------------------------------------------------------------------------------------
 Net change in unrealized appreciation (depreciation) on:
 Investments                                                                (3,415,765)
 Translation of assets and liabilities denominated in foreign currencies     3,310,041
                                                                          ------------
 Net change                                                                   (105,724)
                                                                          ------------
 Net realized and unrealized loss                                           (5,328,375)

- --------------------------------------------------------------------------------------
 Net Increase in Net Assets Resulting from Operations                     $ 13,716,570
                                                                          ============

See accompanying Notes to Financial Statements. 31 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENTS OF CHANGES IN NET ASSETS

 Year Ended October 31,                                                             2002             2001
- ---------------------------------------------------------------------------------------------------------

 Operations
 Net investment income                                                     $  19,044,945    $  22,602,538
- ---------------------------------------------------------------------------------------------------------
 Net realized loss                                                            (5,222,651)      (7,951,443)
- ---------------------------------------------------------------------------------------------------------
 Net change in unrealized depreciation                                          (105,724)      (4,900,186)
                                                                           ------------------------------
 Net increase in net assets resulting from operations                         13,716,570        9,750,909

- ---------------------------------------------------------------------------------------------------------
 Dividends and/or Distributions to Shareholders
 Dividends from net investment income                                        (19,468,363)     (22,861,344)
- ---------------------------------------------------------------------------------------------------------
 Tax return of capital distribution                                                   --         (959,803)

- ---------------------------------------------------------------------------------------------------------
 Beneficial Interest Transactions
 Proceeds from shares issued to shareholders in reinvestment of dividends        355,582          607,802

- ---------------------------------------------------------------------------------------------------------
 Net Assets
 Total decrease                                                               (5,396,211)     (13,462,436)
- ---------------------------------------------------------------------------------------------------------
 Beginning of period                                                         244,166,309      257,628,745
                                                                           ------------------------------
 End of period [including undistributed (overdistributed)
 net investment income of $4,960 and $(696,954), respectively]             $ 238,770,098    $ 244,166,309
                                                                           ==============================

See accompanying Notes to Financial Statements. 32 | OPPENHEIMER MULTI-SECTOR INCOME TRUST FINANCIAL HIGHLIGHTS

Year Ended October 31,                                     2002            2001            2000            1999            1998
- ---------------------------------------------------------------------------------------------------------------------------------

 Per Share Operating Data
 Net asset value, beginning of period                     $8.37           $8.85           $9.45           $9.82          $10.61
- ---------------------------------------------------------------------------------------------------------------------------------
 Income (loss) from investment operations:
 Net investment income                                      .65             .78             .86             .87             .79
 Net realized and unrealized loss                          (.18)           (.44)           (.62)           (.43)           (.75)
                                                          -----------------------------------------------------------------------
 Total from investment operations                           .47             .34             .24             .44             .04
- ---------------------------------------------------------------------------------------------------------------------------------
 Dividend and/or distributions to shareholders:
 Dividends from net investment income                      (.67)           (.79)           (.68)           (.81)           (.78)
 Tax return of capital distribution                          --            (.03)           (.16)             --            (.05)
                                                          -----------------------------------------------------------------------
 Total dividends and/or distributions
 to shareholders                                           (.67)           (.82)           (.84)           (.81)           (.83)
- ---------------------------------------------------------------------------------------------------------------------------------
 Net asset value, end of period                           $8.17           $8.37           $8.85           $9.45           $9.82
                                                          =======================================================================
 Market value, end of period                              $7.36           $8.08           $7.88           $8.06           $9.38
                                                          =======================================================================

- ---------------------------------------------------------------------------------------------------------------------------------
 Total Return, at Market Value 1                          (1.35)%         12.79%           6.93%          (6.64)%          0.17%

- ---------------------------------------------------------------------------------------------------------------------------------
 Ratios/Supplemental Data

 Net assets, end of period (in thousands)              $238,770        $244,166        $257,629        $275,181        $285,907
- ---------------------------------------------------------------------------------------------------------------------------------
 Average net assets (in thousands)                     $243,498        $251,362        $269,849        $285,213        $304,773
- ---------------------------------------------------------------------------------------------------------------------------------
 Ratios to average net assets: 2
 Net investment income                                     7.82%           8.99%           9.27%           8.86%           7.56%
 Expenses                                                  0.82%           0.75%           0.84%           1.03%           1.01% 3
- ---------------------------------------------------------------------------------------------------------------------------------
 Portfolio turnover rate                                     70%            133%            104%            159%            402%

1. Assumes a purchase at the current market price on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and a sale at the current market price on the last business day of the period. Total return does not reflect sales charges or brokerage commissions. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. 33 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 1. Significant Accounting Policies

  Oppenheimer Multi-Sector Income Trust (the Fund) is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company. The Fund’s investment objective is to seek high current income consistent with preservation of capital. The Fund’s investment advisor is OppenheimerFunds, Inc. (the Manager).

  The following is a summary of significant accounting policies consistently followed by the Fund.

- --------------------------------------------------------------------------------

  Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith under consistently applied procedures under the supervision of the Board of Trustees. Short-term “money market type” debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value).

- --------------------------------------------------------------------------------

  Structured Notes. The Fund invests in foreign currency-linked structured notes whose market values and redemption prices are linked to foreign currency exchange rates. The structured notes are leveraged, which increases the volatility of each note’s market value relative to the change in the underlying foreign currency exchange rate. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying financial statements. The Fund records a realized gain or loss when a structured note is sold or matures. As of October 31, 2002, the market value of these securities comprised 3.7% of the Fund’s net assets and resulted in unrealized losses in the current period of $276,502. The Fund also hedges a portion of the foreign currency exposure generated by these securities, as discussed in Note 5.

- --------------------------------------------------------------------------------

  Securities Purchased on a When-Issued Basis. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis can take place a month or more after the trade date. Normally the settlement date occurs within six months after the trade date; however, the Fund may, from time to time, purchase securities whose settlement date extends six months or more beyond trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The Fund maintains segregated assets with a market value equal to or greater than the amount of its commitments. These transactions 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. As of October 31, 2002, the Fund had entered into when-issued purchase commitments of $94,859,665 and when-issued sale commitments of $1,476,403.

34 | OPPENHEIMER MULTI-SECTOR INCOME TRUST

  In connection with its ability to purchase securities on a when-issued basis, the Fund may enter into forward roll transactions with respect to mortgage-related securities. Forward roll transactions require the sale of securities for delivery in the current month, and a simultaneous agreement with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. The forward roll may not extend for a period of greater than one year. The Fund generally records the incremental difference between the forward purchase and sell of each forward roll as interest income.

  Risks to the Fund 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 to what was sold to the counterparty at redelivery; counterparty credit risk; and the potential pay down speed variance between the mortgage-related pools.

- --------------------------------------------------------------------------------

  Security Credit Risk. The Fund invests in high-yield securities, which may be subject to a greater degree of credit risk, greater market fluctuations and risk of loss of income and principal, and may be more sensitive to economic conditions than lower-yielding, higher-rated fixed-income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of October 31, 2002, securities with an aggregate market value of $4,695,192, representing 1.97% of the Fund’s net assets, were in default.

- -------------------------------------------------------------------------------- Foreign Currency Translation. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the prevailing exchange rates on the valuation date. Amounts related to the purchase and sale of foreign securities and investment income are translated at the prevailing exchange rates on the respective dates of such transactions.

  The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund’s Statement of Operations.

- --------------------------------------------------------------------------------

  Joint Repurchase Agreements. The Fund, along with other affiliated funds of the Manager, may transfer uninvested cash balances into one or more joint repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. government securities. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings.

35 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued

  Federal Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its 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.

  During the fiscal year ended October 31, 2002, the Fund did not utilize any capital loss carryforward.

  As of October 31, 2002, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows:

Expiring 2003 $ 7,982,990 2006 1,509,541 2007 11,561,894 2008 5,440,197 2009 4,239,210 2010 9,434,931 Total $40,168,763 ============= - --------------------------------------------------------------------------------

  Trustees’ Compensation. The Fund has adopted a nonfunded retirement plan for the Fund’s independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the year ended October 31, 2002, the Fund’s projected benefit obligations were increased by $5,566 and payments of $13,676 were made to retired trustees, resulting in an accumulated liability of $67,225 as of October 31, 2002.

  The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of annual compensation they are entitled to receive from the Fund. Under the plan, the compensation deferred is invested for the Board of Trustees in shares of one or more Oppenheimer funds selected by the trustee. The amount paid to the Board of Trustees under the plan will be determined based upon the performance of the selected funds. 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.

- --------------------------------------------------------------------------------

  Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.

- --------------------------------------------------------------------------------

  Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily because of the recognition of certain foreign currency gains (losses) as ordinary income (loss) for 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

36 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - --------------------------------------------------------------------------------

  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 Fund adjusts the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended October 31, 2002, amounts have been reclassified to reflect a decrease in overdistributed net investment income of $1,125,332. Accumulated net realized loss on investments was increased by the same amount. Net assets of the Fund were unaffected by the reclassifications.

  The tax character of distributions paid during the year ended October 31, 2002 and year ended October 31, 2001 was as follows:

Year Ended Year Ended October 31, 2002 October 31, 2001 --------------------------------------------------------------------- Distributions paid from: Ordinary income $19,468,363 $22,861,344 Long-term capital gain -- -- Return of capital -- 959,803 -------------------------------------- Total $19,468,363 $23,821,147 ======================================

  As of October 31, 2002, the components of distributable earnings on a tax basis were as follows:

Undistributed net investment income $ 4,960 Accumulated net realized loss (41,893,238) Net unrealized depreciation (27,076,842) --------------- Total $(68,965,120) =============== - --------------------------------------------------------------------------------

  Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned.

- ------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with 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 income and expenses during the reporting period. Actual results could differ from those estimates. 37 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest

  The Fund has authorized an unlimited number of $.01 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:

                                  Year Ended October 31, 2002             Year Ended October 31, 2001
                                    Shares             Amount              Shares              Amount
- -----------------------------------------------------------------------------------------------------

 Net increase from
 dividends reinvested              42,436            $355,582              71,416            $607,802

- -------------------------------------------------------------------------------- 3. Purchases and Sales of Securities

  The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended October 31, 2002, were $210,944,954 and $199,534,779, respectively.

  As of October 31, 2002, unrealized appreciation (depreciation) based on cost of securities for federal income tax purposes of $358,190,201 was composed of:

Gross unrealized appreciation $ 8,581,987 Gross unrealized depreciation (37,287,950) ------------ Net unrealized depreciation $(28,705,963) ============

  The difference between book-basis and tax-basis unrealized appreciation and depreciation, if applicable, is attributable primarily to the tax deferral of losses on wash sales, or return of capital dividends, and the realization for tax purposes of unrealized gain (loss) on certain futures contracts, investments in passive foreign investment companies, and forward foreign currency exchange contracts.

- -------------------------------------------------------------------------------- 4. Fees and Other Transactions with Affiliates

  Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for an annual fee of 0.65% on the Fund’s average annual net assets.

- --------------------------------------------------------------------------------

  Accounting Fees. The Manager acts as the accounting agent for the Fund at an annual fee of $24,000, plus out-of-pocket costs and expenses reasonably incurred. Effective January 1, 2002 the Fund no longer pays accounting service fees.

- -------------------------------------------------------------------------------- Transfer Agent Fees. Shareholder Financial Services, Inc. (SFSI), a wholly-owned subsidiary of the Manager, is the transfer agent and registrar for the Fund. Fees paid to SFSI are based on the number of accounts and the number of shareholder transactions, plus out-of-pocket costs and expenses. 38 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- 5. Foreign Currency Contracts

  A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and to seek to protect against adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract.

  The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing foreign currency exchange rates. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation.

  The Fund may realize a gain or loss upon the closing or settlement of the forward transaction. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations.

  As of October 31, 2002, the Fund had outstanding foreign currency contracts as follows:

                                                                              Valuation
                                                            Contract              as of
                                       Expiration             Amount         October 31,        Unrealized           Unrealized
 Contract Description                       Dates              (000s)              2002       Appreciation         Depreciation
- ------------------------------------------------------------------------------------------------------------------------------------

 Contracts to Purchase
 British Pound Sterling [GBP]            11/29/02              425GBP        $  663,725          $   3,593          $        --
 Canadian Dollar [CAD]                   11/27/02              850CAD           542,496              4,453                   --
 Euro [EUR]                     12/27/02 - 5/5/03            1,355EUR         1,334,980             14,941                   --
 Japanese Yen [JPY]                      11/21/02           78,000JPY           637,304             10,898                   --
                                                                                               -------------------------------------
                                                                                                    33,885                   --
                                                                                               -------------------------------------
 Contracts to Sell
 Australian Dollar [AUD]                 11/27/02              990AUD           548,185                 --               13,020
 British Pound
  Sterling [GBP]                 3/6/03 - 3/20/03              990GBP         1,536,038                 --                8,368
 Euro [EUR]                     11/29/02 - 4/7/03            4,350EUR         4,286,852                 --               78,008
 Japanese Yen [JPY]              1/6/03 - 1/10/03          323,000JPY         2,644,907                 --               44,743
 Philippines Peso [PHP]                   4/25/03           34,543PHP           634,996                 --                4,996
                                                                                               -------------------------------------
                                                                                                        --              149,135
                                                                                               -------------------------------------
 Total Unrealized Appreciation and Depreciation                                                    $33,885             $149,135
                                                                                               =====================================

- -------------------------------------------------------------------------------- 6. Futures Contracts

  A futures contract is a commitment to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date at a negotiated price. Futures contracts are traded on a commodity exchange. The Fund may buy and sell futures contracts that relate to broadly based securities indices “financial futures” or debt securities “interest rate futures” in order to gain exposure to or to seek to protect against changes in market value of stock and bonds or interest rates. The Fund may also buy or write put or call options on these futures contracts.

39| OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 6. Futures Contracts Continued

  The Fund generally sells futures contracts to hedge against increases in interest rates and decreases in market value of portfolio securities. The Fund may also purchase futures contracts to gain exposure to market changes as it may be more efficient or cost effective than actually buying fixed income securities.

  Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or expires.

  Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. The Statement of Assets and Liabilities reflects a receivable and/or payable for the daily mark to market for variation margin. Realized gains and losses are reported in the Statement of Operations as closing and expiration of futures contracts.

  Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities.

        As of October 31, 2002, the Fund had outstanding futures contracts as follows:

                                                                               Valuation        Unrealized
                                              Expiration    Number of              as of      Appreciation
 Contract Description                              Dates    Contracts   October 31, 2002    (Depreciation)
 -----------------------------------------------------------------------------------------------------------

 Contracts to Purchase
 DAX Index                                      12/20/02           4        $    315,708        $    2,503
 Euro-Bobl                                       12/6/02         125          13,541,115           (22,156)
 Euro-Bundesobligation                           12/6/02          10           1,103,491            14,019
 FTSE 100 Index                                 12/20/02           1              63,010              (395)
 NASDAQ 100 Index                               12/19/02          10             991,500            34,500
 Nikkei 225 Index                               12/12/02           2              86,200              (778)
 United Kingdom Long Gilt                       12/27/02           2             372,977            (5,095)
 U.S. Long Bonds                                12/19/02         153          16,930,406           315,578
 U.S. Treasury Nts., 5 yr.                      12/19/02          18           2,047,219             3,656
 U.S. Treasury Nts., 10 yr.                     12/19/02         192          22,026,000           265,875
                                                                                                ------------
                                                                                                   607,707
                                                                                                ------------
 Contracts to Sell
 Euro-Schatz                                    12/6/02           75           7,810,496           (27,669)
 Japan (Government of) Bonds, 10 yr.            12/11/02           2           2,317,852           (14,040)
 U.S. Treasury Nts., 2 yr.                      12/27/02         299          64,336,391          (399,702)
                                                                                                ------------
                                                                                                  (441,411)
                                                                                                ------------
                                                                                                 $ 166,296
                                                                                                ============

40| OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- 7. Option Activity

  The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities.

  The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option.

  Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid.

  Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations.

  The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.

        Written option activity for the year ended October 31, 2002 was as follows:

                                                         Call Options                           Put Options
                                   ----------------------------------    ------------------------------------
                                   Principal (000s)/                     Principal (000s)/
                                           Number of        Amount of            Number of        Amount of
                                           Contracts         Premiums            Contracts         Premiums
- -------------------------------------------------------------------------------------------------------------

 Options outstanding as of
 October 31, 2001                              4,800        $  26,666                   --         $     --
 Options written                             972,070          414,743                  597           28,369
 Options closed or expired                  (966,522)        (201,577)                  --               --
 Options exercised                           (10,348)        (239,832)                (597)         (28,369)
                                            -----------------------------------------------------------------
 Options outstanding as of
 October 31, 2002                                 --        $      --                   --         $     --
                                            =================================================================

41| OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 8. Credit Swap Transactions

  The Fund may enter into a credit swap transaction to seek to maintain a total return on a particular investment or portion of its portfolio, or for other non-speculative purposes. Because the principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as a notional principal amount. The Fund records an increase or decrease to interest income, in the amount due to or owed by the Fund at termination or settlement. Credit swaps are subject to credit risks (if the counterparty fails to meet its obligations).

  During the year ended October 31, 2002, the Fund entered into a transaction to hedge credit risk. The Fund pays an annual 2% interest fee on the notional amount in exchange for the counterparty paying in a potential credit event. Information regarding the credit swap is as follows:

Valuation as of Expiration Notional October 31, Unrealized Contract Description Date Amount 2002 Appreciation - -------------------------------------------------------------------------------- J.P. Morgan Chase Bank, Jordan (Kingdom of) Credit Nts. 6/6/06 $175,000 $10,268 $10,268 ------------------------------------------------------------------------------- 9. Illiquid or Restricted Securities

  As of October 31, 2002, investments in securities included issues that are illiquid or restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of October 31, 2002 was $14,134,005, which represents 5.92% of the Fund’s net assets, of which $1,197 is considered restricted. Information concerning restricted securities is as follows:

Valuation as of Acquisition October 31, Unrealized Security Date Cost 2002 Depreciation ------------------------------------------------------------------------------- Currency Argentine Peso 1/15/02 $1,900 $1,197 $703 42| OPPENHEIMER MULTI-SECTOR INCOME TRUST Appendix A RATINGS DEFINITIONS ------------------- Below are summaries of the rating definitions used by the nationally-recognized rating agencies listed below. Those ratings represent the opinion of the agency as to the credit quality of issues that they rate. The summaries below are based upon publicly-available information provided by the rating organizations. Moody's Investors Service, Inc. ("Moody's") LONG-TERM (TAXABLE) BOND RATINGS Aaa: Bonds rated "Aaa" are judged to be the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, the changes that can be expected are most unlikely to impair the fundamentally strong position of such issues. Aa: Bonds rated "Aa" are judged to be of high quality by all standards. Together with the "Aaa" group, they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as with "Aaa" securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risk appear somewhat larger than that of "Aaa" securities. A: Bonds rated "A" possess many favorable investment attributes and are to be considered as upper-medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment some time in the future. Baa: Bonds rated "Baa" are considered medium-grade obligations; that is, they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and have speculative characteristics as well. Ba: Bonds rated "Ba" are judged to have speculative elements. Their future cannot be considered well-assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. B: Bonds rated "B" generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. Caa: Bonds rated "Caa" are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest. Ca: Bonds rated "Ca" represent obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings. C: Bonds rated "C" are the lowest class of rated bonds and can be regarded as having extremely poor prospects of ever attaining any real investment standing. Moody's applies numerical modifiers 1, 2, and 3 in each generic rating classification from "Aa" through "Caa." The modifier "1" indicates that the obligation ranks in the higher end of its generic rating category; the modifier "2" indicates a mid-range ranking; and the modifier "3" indicates a ranking in the lower end of that generic rating category. Advanced refunded issues that are secured by certain assets are identified with a # symbol. SHORT-TERM RATINGS - TAXABLE DEBT These ratings apply to the ability of issuers to honor senior debt obligations having an original maturity not exceeding one year: Prime-1: Issuer has a superior ability for repayment of senior short-term debt obligations. Prime-2: Issuer has a strong ability for repayment of senior short-term debt obligations. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained. Prime-3: Issuer has an acceptable ability for repayment of senior short-term obligations. The effect of industry characteristics and market compositions may be more pronounced. Variability in earnings and profitability may result in changes in the level of debt protection measurements and may require relatively high financial leverage. Adequate alternate liquidity is maintained. Not Prime: Issuer does not fall within any Prime rating category. Standard & Poor's Ratings Services ("Standard & Poor's"), a division of The McGraw-Hill Companies, Inc. LONG-TERM ISSUE CREDIT RATINGS AAA: Bonds rated "AAA" have the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong. AA: Bonds rated "AA" differ from the highest rated bonds only in small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong. A: Bonds rated "A" are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong. BBB: Bonds rated "BBB" exhibit adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. BB, B, CCC, CC, and C Obligations rated `BB', `B', `CCC', `CC', and `C' are regarded as having significant speculative characteristics. `BB' indicates the least degree of speculation and `C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. BB: Bonds rated "BB" are less vulnerable to nonpayment than other speculative issues. However, they face major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. B: Bonds rated "B" are more vulnerable to nonpayment than bonds rated "BB", but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation. CCC: Bonds rated "CCC" are currently vulnerable to nonpayment, and are dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. CC: Bonds rated "CC" are currently highly vulnerable to nonpayment. C: Subordinated debt or preferred stock obligations rated "C" are currently highly vulnerable to nonpayment. The "C" rating may be used to cover a situation where a bankruptcy petition has been filed or similar action taken, but payments on this obligation are being continued. A "C" also will be assigned to a preferred stock issue in arrears on dividends or sinking fund payments, but that is currently paying. D: Bonds rated "D" are in payment default. The "D" rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized. The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. The "r" symbol is attached to the ratings of instruments with significant noncredit risks. SHORT-TERM ISSUE CREDIT RATINGS A-1: A short-term bond rated "A-1" is rated in the highest category by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong. A-2: A short-term bond rated "A-2" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory. A-3: A short-term bond rated "A-3" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. B: A short-term bond rated "B" is regarded as having significant speculative characteristics. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. C: A short-term bond rated "C" is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. D: A short-term bond rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized. Fitch, Inc. INTERNATIONAL LONG-TERM CREDIT RATINGS Investment Grade: AAA: Highest Credit Quality. "AAA" ratings denote the lowest expectation of credit risk. They are assigned only in the case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. AA: Very High Credit Quality. "AA" ratings denote a very low expectation of credit risk. They indicate a very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. A: High Credit Quality. "A" ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. BBB: Good Credit Quality. "BBB" ratings indicate that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity. This is the lowest investment-grade category. Speculative Grade: BB: Speculative. "BB" ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time. However, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade. B: Highly Speculative. "B" ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met. However, capacity for continued payment is contingent upon a sustained, favorable business and economic environment. CCC, CC C: High Default Risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments. A "CC" rating indicates that default of some kind appears probable. "C" ratings signal imminent default. DDD, DD, and D: Default. The ratings of obligations in this category are based on their prospects for achieving partial or full recovery in a reorganization or liquidation of the obligor. While expected recovery values are highly speculative and cannot be estimated with any precision, the following serve as general guidelines. "DDD" obligations have the highest potential for recovery, around 90%-100% of outstanding amounts and accrued interest. "DD" indicates potential recoveries in the range of 50%-90%, and "D" the lowest recovery potential, i.e., below 50%. Entities rated in this category have defaulted on some or all of their obligations. Entities rated "DDD" have the highest prospect for resumption of performance or continued operation with or without a formal reorganization process. Entities rated "DD" and "D" are generally undergoing a formal reorganization or liquidation process; those rated "DD" are likely to satisfy a higher portion of their outstanding obligations, while entities rated "D" have a poor prospect for repaying all obligations. Plus (+) and minus (-) signs may be appended to a rating symbol to denote relative status within the major rating categories. Plus and minus signs are not added to the "AAA" category or to categories below "CCC," nor to short-term ratings other than "F1" (see below). INTERNATIONAL SHORT-TERM CREDIT RATINGS F1: Highest credit quality. Strongest capacity for timely payment of financial commitments. May have an added "+" to denote any exceptionally strong credit feature. F2: Good credit quality. A satisfactory capacity for timely payment of financial commitments, but the margin of safety is not as great as in the case of higher ratings. F3: Fair credit quality. Capacity for timely payment of financial commitments is adequate. However, near-term adverse changes could result in a reduction to non-investment grade. B: Speculative. Minimal capacity for timely payment of financial commitments, plus vulnerability to near-term adverse changes in financial and economic conditions. C: High default risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment. D: Default. Denotes actual or imminent payment default.

                                    PART C

                               OTHER INFORMATION

Item 24.  Financial Statements and Exhibits.


      1.    Financial Statements at fiscal year-end October 31, 2002.


            (a)   Statement of Investments - (See Part B, Statement of
Additional Information): Filed herewith.

            (b)   Statement of Assets and Liabilities - (See Part B,
Statement of Additional Information): Filed herewith.

            (c)   Statement of Operations - (See Part B, Statement of
Additional Information): Filed herewith.

            (d)   Statements of Changes in Net Assets - (See Part B,
Statement of Additional Information): Filed herewith.

            (e)   Financial Highlights - (See Part B, Statement of Additional
Information): Filed herewith.

            (f)   Notes to Financial Statements - (See Part B, Statement of
Additional Information): Filed herewith.


      2.    Exhibits:

            (a)   (1)     Declaration of Trust of Registrant: Filed with
Registrant's Registration Statement, 2/2/88, refiled with Registrant's
Amendment No. 8, 2/27/95, and incorporated herein by reference.

                  (2)     Amendment No. 1 dated as of March 10, 1988 to
Declaration of Trust of Registrant: Filed with Amendment No. 2 to
Registrant's Registration Statement, 3/24/88, refiled with Registrant's
Amendment No. 8, 2/27/95, pursuant to Item 102 of Regulation S-T, and
incorporated herein by reference.

                  (3)     Amendment No. 2 dated November 6, 1989 to
Declaration of Trust of Registrant:  Filed with Registrant's Post-Effective
Amendment No. 8, 2/27/95, and incorporated herein by reference.


                  (4)     Amendment No. 3 dated as of July 16, 2002 to
Declaration of Trust of Registrant: Filed herewith.

            (b)   By-Laws of Registrant (amended by-laws): Filed with
Registrant's Post-Effective Amendment No. 17, 2/28/02, and incorporated
herein by reference.


            (c)   Inapplicable


            (d)   Specimen certificate for shares of Beneficial Interest,
$.01 par value: Filed with Registrant's Post-Effective Amendment No. 17,
2/28/02, and incorporated herein by reference.


            (e)   Inapplicable

            (f)   Inapplicable

            (g)   (1)   Investment Advisory Agreement with Oppenheimer
Management Corporation dated 10/22/90 - Filed with Amendment No. 5 to
Registrant's Registration Statement dated 2/27/91, refiled with Amendment No.
8 to Registrant's Registration Statement, and incorporated herein by
reference.

            (h)   Form of Underwriting Agreement: Filed with Amendment No. 2
to Registrant's Registration Statement, 3/24/88, refiled with Registrant's
Post-Effective Amendment No. 8, 2/27/95, pursuant to Item 102 of Regulation
S-T, and incorporated herein by reference.

            (i)   (1)   Amended and Reinstated Retirement Plan for
Non-Interested Trustees or Directors dated 8/9/01: Previously filed with
Post-Effective Amendment No. 34 to the Registration Statement of Oppenheimer
Gold & Special Minerals Fund (Reg. No. 2-82590), 10/25/01, and incorporated
herein by reference.

                  (2)   Form of Deferred Compensation Plan for Disinterested
Trustees/Directors: Filed with Post-Effective Amendment No.  33, of the
Registration Statement for Oppenheimer Gold & Special Minerals Fund (Reg. No.
2-82590), 10/28/98, and incorporated herein by reference.


      (j)   Global Custody Agreement dated August 16, 2002 between  Registrant
and JP Morgan Chase Bank:  Previously filed with Post-Effective  Amendment No.
9 to the Registration  Statement of Oppenheimer  International Bond Fund (Reg.
No. 33-58383), 11/21/02, and incorporated herein by reference.



            (k)   Accounting Service Agreement previously filed with
Registrant's Amendment No. 9 under the Investment Company Act of 1940,
2/29/96, and incorporated herein by reference.

            (l)   Inapplicable

            (m)   Inapplicable

            (n)   Inapplicable

            (o)   Inapplicable

            (p)   Inapplicable

            (q)   Inapplicable

Item 25.    Marketing Arrangements.

            Inapplicable.

Item 26.    Other Expenses of Issuance and Distribution.

            Inapplicable.

Item 27.    Persons Controlled by or under Common Control.

            None.

Item 28.    Number of Holders of Securities.

(1)                                       (2)
                                          Number of Record Holders

Title of Class                            at February 25, 2003

- --------------                            ------------------------

Shares of Beneficial Interest,            2,493
$.01 par value


Item 29.    Indemnification.

      Insofar as indemnification for liabilities arising under the Securities
Act of 1933 (the "Act") may be permitted to trustees, officers and
controlling persons of the Registrant pursuant to the foregoing provisions or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable.  In the
event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a trustee,
officer, or controlling person of the Registrant in connection with the
successful defense of any action, suit or proceeding) is asserted against the
Registrant by such trustee, officer or controlling person, the Registrant
will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the Act, and will be governed by the final adjudication of such
issue.

      The Registrant hereby undertakes that it will apply the indemnification
provision of its By-laws in a manner consistent with Release 11330 of the
Securities and Exchange Commission under the Investment Company Act of 1940,
so long as the interpretation therein of Sections 17(h) and 17(i) of the
Investment Company Act remains in effect.


      Registrant, in conjunction with the Registrant's Trustees, and other
registered management investment companies managed by the Manager, generally
maintains insurance on behalf of any person who is or was a Trustee, officer,
employee, or agent of Registrant.  However, in no event will Registrant pay
that portion of the premium, if any, for insurance to indemnify any such
person for any act for which Registrant itself is not permitted to indemnify
him.

Item 30.   Business and Other Connections of Investment Manager


(a)   OppenheimerFunds, Inc. is the investment advisor of the Registrant; it
and certain subsidiaries and affiliates act in the same capacity to other
registered investment companies as described in Parts A and B hereof and
listed in Item 29(b) below.

(b)  There is set forth below information as to any other business,
profession, vocation or employment of a substantial nature in which each
officer and director of OppenheimerFunds, Inc. is, or at any time during the
past two fiscal years has been, engaged for his/her own account or in the
capacity of director, officer, employee, partner or trustee.

- ---------------------------------------------------------------------------------

Name and Current Position
with OppenheimerFunds, Inc.    Other Business and Connections During the Past
                               Two Years

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Timothy L. Abbuhl,             None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Amy B. Adamshick,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Charles E. Albers,             None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Erik Anderson,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Janette Aprilante,             As of January 2002: Secretary of
Vice President & Secretary     OppenheimerFunds, Distributor, Inc., Centennial
                               Asset Management Corporation, Oppenheimer
                               Partnership Holdings, Inc., Oppenheimer Real
                               Asset Management, Inc., Shareholder Financial
                               Services, Inc., Shareholder Services, Inc.;
                               Assistant Secretary of HarbourView Asset
                               Management Corporation, OFI Private Investments,
                               Inc., Oppenheimer Trust Company and OFI
                               Institutional Asset Management, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Patricia Avelino,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Hany S. Ayad,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Victor W. Babin,               None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Bruce L. Bartlett,             None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Michael Banta,            None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Joanne Bardell,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Lerae A. Barela,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

George Batejan,                None
Executive Vice President/
Chief Information Officer

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mark Bartling,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kevin Baum,                    None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jeff Baumgartner,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Connie Bechtolt,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert Behal                   Assistant Vice President of HarbourView Asset
Assistant Vice President       Management Corporation. Formerly.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kathleen Beichert,             Vice President of OppenheimerFunds Distributor,
Vice President                 Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Gerald Bellamy,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Erik S. Berg,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Victoria Best,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Rajeev Bhaman,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Craig Billings,                Formerly President of Lorac Technologies, Inc.
Assistant Vice President       (June 1997-July 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mark Binning,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert J. Bishop,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Tracey Blinzer,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John R. Blomfield,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Chad Boll,                     None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kevin Bonner,                  Formerly Manager, Sales Support for Prudential
Vice President                 Insurance Company (August 1995-September 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert Bonomo,                 None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Lowell Scott Brooks,           Vice President of OppenheimerFunds Distributor,
Vice President                 Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard Buckmaster,            None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Paul Burke,                    None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mark Burns,                    Formerly a Marketing Manager with Alliance
Assistant Vice President       Capital Management (October 1999-April 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Bruce Burroughs                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Claudia Calich,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael A. Carbuto,            None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Debra Casey,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Ronald G. Chibnik,             Formerly Director of technology for Sapient
Assistant Vice President       Corporation (July, 2000-August 2001); software
                               architect for Sapient Corporation (March
                               1997-July 2000).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Brett Clark,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

H.C. Digby Clements,           None
Vice   President:    Rochester
Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Peter V. Cocuzza,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Laura Coulston,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Julie C. Cusker,               None
Assistant Vice President:
Rochester Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

George Curry,                  None.
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Damian,                   Formerly senior analyst/director for Citigroup
Vice President                 Asset Management (November 1999-September 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John M. Davis,                 Assistant Vice President of OppenheimerFunds
Assistant Vice President       Distributor, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Ruggero de'Rossi,              Vice President of HarbourView Asset Management
Vice President                 Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Craig P. Dinsell,              None
Executive Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Randall C. Dishmon,            Formerly an Associate with Booz Allen & Hamilton
Assistant Vice President       (1998-June 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Rebecca K. Dolan               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Steven D. Dombrower,           Vice President of OppenheimerFunds Distributor,
Vice President                 Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Bruce C. Dunbar,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard Edmiston,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Daniel R. Engstrom,            None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Armand B. Erpf,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

James Robert Erven             Formerly an Assistant Vice President/Senior
Assistant Vice President       Trader with Morgan Stanley Investment Management
                               (1999-April 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

George R. Evans,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Edward N. Everett,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kathy Faber,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David Falicia,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Scott T. Farrar,               Vice President of OFI Private Investments, Inc.
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Katherine P. Feld,             Vice President of OppenheimerFunds, Distributor,
Vice President, Senior Counsel Inc.; Vice President, Assistant Secretary and
                               Director of Centennial Asset Management
                               Corporation; Vice President of Oppenheimer Real
                               Asset Management, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Emmanuel Ferreira,             Formerly a portfolio manager with Lashire
Vice President                 Investments (July 1999-December 2002).

- ---------------------------------------------------------------------------------



- ---------------------------------------------------------------------------------

Ronald H. Fielding,            Vice President of OppenheimerFunds Distributor,
Senior Vice President;         Inc.; Director of ICI Mutual Insurance Company;
Chairman: Rochester Division   Governor of St. John's College; Chairman of the
                               Board of Directors of International Museum of
                               Photography at George Eastman House.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Brian Finley,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Forrest,                  None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

J. Hayes Foster,               None
Vice President

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

P. Lyman Foster,               Senior Vice President of OppenheimerFunds
Senior Vice President          Distributor, Inc.

- ---------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------

David Foxhoven,                Assistant Vice President of OppenheimerFunds
Assistant Vice President       Legacy Program.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Colleen M. Franca,             None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Crystal French,                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Hazem Gamal,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Dan P. Gangemi,                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Dan Gagliardo,                 Formerly an Assistant Vice President with
Assistant Vice President       Mitchell Hutchins (January 2000-October 2000).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Subrata Ghose,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Charles W. Gilbert,            None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Alan C. Gilston,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Sharon M. Giordano-Auleta,     None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jill E. Glazerman,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Paul M. Goldenberg,            None
Vice President

- ---------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------

Mike Goldverg,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Bejamin J. Gord,               Vice President of HarbourView Asset Management
Vice President                 Corporation. Formerly Executive Director with
                               Miller Anderson Sherrerd, a division of Morgan
                               Stanley Investment Management. (April 1992-March
                               2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Laura Granger,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert Grill,                  None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Satish Gupta,                  None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert Guy,                    None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David Hager,                   None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert Haley,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Marilyn Hall,                  None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Ping Han,                      None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kelly Haney,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Neil Hanson,                   None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Shari Harley,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Steve Hauenstein,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Thomas B. Hayes,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Saba Hekmat,                   Formerly Director, Credit Research Analyst at
Assistant Vice President       MetLife Investments (July 1996-October 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael Henry,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Catherine Heron,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Dennis Hess,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Dorothy F. Hirshman,           None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Daniel Hoelscher,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Scott T. Huebl,                Assistant Vice President of OppenheimerFunds
Vice President                 Legacy Program.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Margaret Hui,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Huttlin,                  None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Edward Hrybenko,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

James G. Hyland,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Steve P. Ilnitzki,             None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kathleen T. Ives,              Vice President of OppenheimerFunds Distributor,
Vice   President  &  Assistant Inc.; Vice President and Assistant Secretary of
Counsel                        Shareholder Services, Inc.; Assistant Secretary
                               of OppenheimerFunds Legacy Program and
                               Shareholder Financial Services, Inc.

- ---------------------------------------------------------------------------------



- ---------------------------------------------------------------------------------

William Jaume,                 Senior Vice President and Chief Compliance
Vice President                 Officer (since April 2000) of HarbourView Asset
                               Management Corporation; and of OFI Institutional
                               Asset Management, Inc. (since February 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Frank V. Jennings,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Jennings,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Michael Johnson,          Formerly Vice President, Senior
Assistant Vice President       Analyst/Portfolio Manager at Aladdin Capital
                               Holdings Inc. (February 2001-May 2002) prior to
                               which he was Vice President and Senior Analyst
                               at Merrill Lynch Investment Managers (October
                               1996-February 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Lewis A. Kamman,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Charles Kandilis,              Formerly managing director of Kandilis Capital
Assistant Vice President       Management (September 1993-August 2002); CFO of
                               Kandi Corp. (October 1989-August 1993).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jennifer E. Kane,              None.
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Lynn O. Keeshan,               None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Thomas W. Keffer,              None
Senior Vice President

- ---------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------

Cristina J. Keller,            Vice President of OppenheimerFunds Distributor,
Vice President                 Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael Keogh,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Garrett K. Kolb,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Walter G. Konops,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Avram D. Kornberg,             None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

James Kourkoulakos,            None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Brian Kramer,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Tracey Lange,                  None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John Latino,                   Formerly (until September 2002) a senior trader
Assistant Vice President       at Jacobs Levy Equity Management.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Guy E. Leaf,                   Formerly a Vice President of Merrill Lynch
Vice President                 (January 2000-September 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Christopher M. Leavy,          None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Dina C. Lee,                   None
Assistant   Vice  President  &
Assistant Counsel

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Dana Lehrer,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Laura Leitzinger,              Vice President of Shareholder Financial
Vice President                 Services, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael S. Levine,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Gang Li,                       None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Shanquan Li,                   None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mitchell J. Lindauer,          None
Vice   President  &  Assistant
General Counsel

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Bill Linden,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Malissa B. Lischin,            Assistant Vice President of OppenheimerFunds
Assistant Vice President       Distributor, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Reed Litcher,                  None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David P. Lolli,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Daniel G. Loughran             None
Vice   President:    Rochester
Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Patricia Lovett,               Vice President of Shareholder Financial
Vice President                 Services, Inc. and Senior Vice President of
                               Shareholder Services, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Steve Macchia,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael Magee,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jerry Madzij,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Angelo G. Manioudakis          Senior Vice President of HarbourView Asset
Senior Vice President          Management Corporation. Formerly Executive
                               Director and portfolio manager for Miller,
                               Anderson & Sherrerd, a division of Morgan
                               Stanley Investment Management (August 1993-April
                               2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Marianne Manzolillo,           None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

LuAnn Mascia,                  None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Philip T. Masterson,           None
Vice   President  &  Assistant
Counsel

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Elizabeth McCormack,           Assistant Secretary of HarbourView Asset
Assistant Vice President       Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Charles L. McKenzie,           Senior Vice President of HarbourView Asset
Senior Vice President          Management Corporation and OFI Institutional
                               Asset Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Joseph McGovern,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Lisa Migan,                    None
Assistant Vice President

- ---------------------------------------------------------------------------------

Andrew J. Mika,
Senior Vice President               Formerly  a  Second  Vice   President  for
                                    Guardian  Investments (June 1990 - October
                                    1999).


- ---------------------------------------------------------------------------------

Andrew J. Mika,                None
Senior Vice President

- ---------------------------------------------------------------------------------

Joy Milan,
Vice President                      None.


- ---------------------------------------------------------------------------------

Joy Milan,                     None
Vice President

- ---------------------------------------------------------------------------------

Denis R. Molleur,
Vice President and
Senior Counsel                      An officer of other Oppenheimer Funds.


- ---------------------------------------------------------------------------------

Denis R. Molleur,              None
Vice    President   &   Senior
Counsel

- ---------------------------------------------------------------------------------

Nikolaos D. Monoyios,
Vice President                      None.


- ---------------------------------------------------------------------------------

Nikolaos D. Monoyios,          None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Charles Moon,                  Vice President of HarbourView Asset Management
Vice President                 Corporation. Formerly an Executive Director and
                               Portfolio Manager with Miller Anderson &
                               Sherrerd, a division of Morgan Stanley
                               Investment Management (June 1999-March 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Stacey Morrell,                None
Vice President

- ---------------------------------------------------------------------------------

John Murphy,
Chairman, President, Chief Executive
Officer and Director                President,  Chief  Executive  Officer  and
director of
OFI Private Investments, Inc.,
an  investment  adviser  subsidiary  of the Manager;  Chairman and director of
Shareholder Services, Inc.

and
President                           None.

Shareholder











- ---------------------------------------------------------------------------------

John Murphy,                   Director of OppenheimerFunds Distributor, Inc.,
Chairman,   President,   Chief Centennial Asset Management Corporation,
Executive Officer & Director   HarbourView Asset Management Corporation, OFI
                               Private Investments, Inc., OFI Institutional
                               Asset Management, Inc. and Tremont Advisers,
                               Inc.; Director (Class A) of Trinity Investments
                               Management Corporation; President and Director
                               of Oppenheimer Acquisition Corp., Oppenheimer
                               Partnership Holdings, Inc., Oppenheimer Real
                               Asset Management, Inc.; Chairman and Director of
                               Shareholder Financial Services, Inc. and
                               Shareholder Services, Inc.; Executive Vice
                               President of MassMutual Life Insurance Company;
                               director of DLB Acquisition Corp.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Thomas J. Murray,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kenneth Nadler,                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Christina Nasta,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David Negri,                   Senior Vice President of HarbourView Asset
Senior Vice President          Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard Nichols,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Barbara Niederbrach,           None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

William Norman,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Raymond C. Olson,              Assistant Vice President and Treasurer of
Assistant Vice President       OppenheimerFunds Distributor, Inc.; Treasurer of
                               Centennial Asset Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Frank J. Pavlak,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David P. Pellegrino,           None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Allison C. Pells,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Susan Pergament,               None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Brian Petersen,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

James F. Phillips,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Gary Pilc,
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Peter Pisapia,                 Formerly, Associate Counsel and Secretary at
Assistant   Vice  President  & SunAmerica Asset Management Corp. (December
Assistant Counsel              2000-December 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Raghaw Prasad,                 Formerly Associate Vice President with
Assistant Vice President       Prudential Securities New York (January
                               2001-November 2001) prior to which he was a
                               Director/Analytics with Prudential Investments
                               New Jersey (April 1997-November 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jane C. Putnam,                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael E. Quinn,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Heather Rabinowitz,            None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Julie S. Radtke,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Norma J. Rapini,               None
Assistant Vice President:
Rochester Division

- ---------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------

Thomas P. Reedy,               Vice President (since April 1999) of HarbourView
Vice President                 Asset Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Brian N. Reid,                 Formerly an Assistant Vice President with Eaton
Assistant Vice President       Vance Management (January 2000-January 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Marc Reinganum,                Formerly (until August 2002) Vaughn Rauscher
Vice President                 Chair in Financial Investments and Director,
                               Finance Institute of Southern Methodist
                               University, Texas.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kristina Richardson,           None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Claire Ring,                   None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David Robertson,               Senior Vice President of OppenheimerFunds
Senior Vice President          Distributor, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Rob Robis,                     None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Antoinette Rodriguez,          None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Stacey Roode,                  Formerly, Assistant Vice President of Human
Vice President                 Resources of OFI (200-July 2002)

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jeffrey S. Rosen,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard H. Rubinstein,         None
Senior Vice President

- ---------------------------------------------------------------------------------





- ---------------------------------------------------------------------------------

James H. Ruff,                 President and Director of OppenheimerFunds
Executive Vice President       Distributor, Inc. and Centennial Asset
                               Management Corporation; Executive Vice President
                               of OFI Private Investments, Inc.

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

Andrew Ruotolo                 Director, Treasurer and Chief Financial Officer
Executive  Vice  President and of Oppenheimer Acquisition Corp.; President and
Director                       director of Shareholder Services, Inc. and
                               Shareholder Financial Services, Inc.; Director
                               (Class A) of Trinity Investment Management
                               Corporation; Chairman of the Board, Chief
                               Executive Officer, President and Director or OFI
                               Trust Company.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Rohit Sah,                     None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Valerie Sanders,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Karen Sandler,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Tricia Scarlata,               Formerly, Marketing Manager of OppenheimerFunds,
Assistant Vice President       Inc. (April 2001-August 2002); Client Service
                               Support Manager for Sanford C. Bernstein
                               (December 1999-April 2001)

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Rudi Schadt,                   Formerly a consultant for Arthur Andersen
Vice President                 (August 2001-February 2002); director, senior
                               quantitative analyst at Brinson Partners
                               (September 2000,April 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jeffrey R. Schneider,          None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Ellen P. Schoenfeld,           None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Maria Schulte,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David Schultz,                 Chief Executive Officer, President & Senior
Senior Vice President          Managing Director & Director of OFI
                               Institutional Asset Management, Inc. and
                               HarbourView Asset Management Corporation;
                               Director (Class A) and Chairman of Trinity
                               Investment Management Corporation; Director of
                               Oppenheimer Trust Company.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Scott A. Schwegel,             None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Allan P. Sedmak                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jennifer L. Sexton,            Vice President of OFI Private Investments, Inc.
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Martha A. Shapiro,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Navin Sharma,                  Formerly, Manager at BNP Paribas Cooper Neff
Vice President                 Advisors (May 2001-April 2002) prior to which he
                               was Development Manager at Reality
                               Online/Reuters America Inc. (June 2000-May 2001).

- ---------------------------------------------------------------------------------



- ---------------------------------------------------------------------------------

Steven J. Sheerin,             Formerly consultant with Pricewaterhouse Coopers
Vice President                 (November 2000-May 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Bonnie Sherman,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

David C. Sitgreaves,           None
Assistant Vice President

- ---------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------

Edward James Sivigny           Formerly a Director for ABN Amro Securities
Assistant Vice President       (July 2001-July 2002) prior to which he was
                               Associate Director for Barclays Capital
                               (1998-July 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Enrique H. Smith,              Formerly a business analyst with Goldman Sachs
Assistant Vice President       (August 1999-August 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard A. Soper,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Louis Sortino,                 None
Assistant Vice President:
Rochester Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Keith J. Spencer,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Marco Antonio Spinar,          Formerly, Director of Business Operations at AOL
Assistant Vice President       Time Warner, AOL Time Warner Book Group (June
                               2000-December 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard A. Stein,              None
Vice   President:    Rochester
Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Arthur P. Steinmetz,           Senior Vice President of HarbourView Asset
Senior Vice President          Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jayne M. Stevlingson,          None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Gregory J. Stitt,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

John P. Stoma,                 Senior Vice President of OppenheimerFunds
Senior Vice President          Distributor, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Wayne Strauss,                 None
Assistant Vice President:
Rochester Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael Stricker,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Deborah A. Sullivan,           Since December 2001, Secretary of Oppenheimer
Assistant Vice President,      Trust Company.
Assistant Counsel

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mary Sullivan,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kevin L. Surrett,              None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Michael Sussman,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Susan B. Switzer,              None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Anthony A. Tanner,             None
Vice   President:    Rochester
Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Martin Telles,                 None
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Paul Temple,                   Formerly a Vice President of Merrill Lynch
Vice President                 (October 2001-January 2002) prior to which he
                               was a Vice President with OppenheimerFunds, Inc.
                               (May 2000-October 5, 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Vincent Toner,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Eamon Tubridy,                 None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Keith Tucker,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

James F. Turner,               Formerly portfolio manager for Technology
Vice President                 Crossover Ventures (May 2000-March 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Cameron Ullyat,                None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Angela Utaro,                  None
Assistant Vice President:
Rochester Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Tanya Valency,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mark S. Vandehey,              Vice President of OppenheimerFunds Distributor,
Vice President                 Inc., Centennial Asset Management Corporation
                               and Shareholder Services, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Maureen Van Norstrand,         None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Vincent Vermette,              Assistant Vice President of OppenheimerFunds
Assistant Vice President       Distributor, Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Phillip F. Vottiero,           None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Samuel Sloan Walker,           Vice President of HarbourView Asset Management
Vice President                 Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Teresa M. Ward,                Vice President of OppenheimerFunds Distributor,
Vice President                 Inc.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jerry A. Webman,               Senior Vice President of HarbourView Asset
Senior Vice President          Management Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Christopher D. Weiler,         None
Assistant Vice President:
Rochester Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Barry D. Weiss,                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Melissa Lynn Weiss,            Formerly an Associate at Hoguet Newman & Regal,
Vice President                 LLP (January 1998-May 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Christine Wells,               None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Joseph J. Welsh,               Vice President of HarbourView Asset Management
Vice President                 Corporation.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Diederick Wermolder,           Director of OppenheimerFunds International Ltd.;
Vice President                 Senior Vice President (Managing Director of the
                               International Division) of OFI Institutional
                               Asset Management, Inc.

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

Catherine M. White,            Assistant Vice President of OppenheimerFunds
Assistant Vice President       Distributor, Inc. Formerly, Assistant Vice
                               President with Gruntal & Co. LLC (September 1998
                               - October 2000); member of the American Society
                               of Pension Actuaries (ASPA) since 1995.

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

William L. Wilby,              Formerly Senior Vice President of HarbourView
Senior Vice President          Asset Management Corporation (May 1999-July
                               2002).

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

Donna M. Winn,                 President, Chief Executive Officer and Director
Senior Vice President          of OFI Private Investments, Inc.; Director and
                               President of OppenheimerFunds Legacy Program;
                               Senior Vice President of OppenheimerFunds
                               Distributor, Inc.

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

Kenneth Winston,               Formerly, principal at Richards & Tierney, Inc.
Senior Vice President          (until June 2001).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Philip Witkower,               None
Senior Vice President

- ---------------------------------------------------------------------------------













- ---------------------------------------------------------------------------------

Brian W. Wixted,               Treasurer of HarbourView Asset Management
Senior Vice President and      Corporation; OppenheimerFunds International
Treasurer                      Ltd., Oppenheimer Partnership Holdings, Inc.,
                               Oppenheimer Real Asset Management Corporation,
                               Shareholder Services, Inc., Shareholder
                               Financial Services, Inc., OFI Private
                               Investments, Inc. and OFI Institutional Asset
                               Management, Inc.; Treasurer and Chief Financial
                               Officer of Oppenheimer Trust Company; Assistant
                               Treasurer of Oppenheimer Acquisition Corp. and
                               OppenheimerFunds Legacy Program.

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

Carol Wolf,                    Serves on the Board of the Colorado Ballet.
Senior Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Kurt Wolfgruber,               Director of Tremont Advisers, Inc. (as of
Senior Vice President          January 2002).

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Caleb C. Wong,                 None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Edward C. Yoensky,             None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Jill Zachman,                  None
Vice   President:    Rochester
Division

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Lucy Zachman,                  None
Assistant Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Robert G. Zack                 General Counsel and Director of OppenheimerFunds
Senior Vice President and      Distributor, Inc.; General Counsel of Centennial
General Counsel                Asset Management Corporation; Senior Vice
                               President and General Counsel of HarbourView
                               Asset Management Corporation and OFI
                               Institutional Asset Management, Inc.; Senior
                               Vice President, General Counsel and Director of
                               Shareholder Financial Services, Inc.,
                               Shareholder Services, Inc., OFI Private
                               Investments, Inc. and Oppenheimer Trust Company;
                               Vice President and Director of Oppenheimer
                               Partnership Holdings, Inc.; Secretary of OAC
                               Acquisition Corp.; Director and Assistant
                               Secretary of OppenheimerFunds International
                               Ltd.; Director of Oppenheimer Real Asset
                               Management, Inc.; Vice President of
                               OppenheimerFunds Legacy Program.

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Neal A. Zamore,                None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Mark D. Zavanelli,             None
Vice President

- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Alex Zhou,                     None
Assistant Vice President

- ---------------------------------------------------------------------------------


- ---------------------------------------------------------------------------------

Arthur J. Zimmer,              Senior Vice President (since April 1999) of
Senior Vice President          HarbourView Asset Management Corporation.

- ---------------------------------------------------------------------------------


The Oppenheimer Funds include the following:

Centennial America Fund, L.P.
Centennial California Tax Exempt Trust
Centennial Government Trust
Centennial Money Market Trust
Centennial New York Tax Exempt Trust
Centennial Tax Exempt Trust
Limited Term New York Municipal Fund (Rochester Portfolio Series)
Oppenheimer AMT-Free New York Municipals
Oppenheimer Bond Fund (a series of Oppenheimer Integrity Funds)
Oppenheimer California Municipal Fund
Oppenheimer Capital Appreciation Fund
Oppenheimer Capital Income Fund
Oppenheimer Capital Preservation Fund
Oppenheimer Cash Reserves
Oppenheimer Champion Income Fund
Oppenheimer Concentrated Growth Fund
Oppenheimer Convertible Securities Fund (Bond Fund Series)
Oppenheimer Developing Markets Fund
Oppenheimer Discovery Fund
Oppenheimer Emerging Growth Fund
Oppenheimer Emerging Technologies Fund
Oppenheimer Enterprise Fund
Oppenheimer Europe Fund
Oppenheimer Global Fund
Oppenheimer Global Growth & Income Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Growth Fund
Oppenheimer High Yield Fund
Oppenheimer International Bond Fund
Oppenheimer International Growth Fund
Oppenheimer International Small Company Fund
Oppenheimer Limited-Term Government Fund
Oppenheimer  Limited Term Municipal  Fund (a series of  Oppenheimer  Municipal
Fund)
Oppenheimer Main Street Growth & Income Fund (a series of Oppenheimer Main
   Street Funds, Inc.
Oppenheimer Main Street Opportunity Fund
Oppenheimer Main Street Small Cap Fund
Oppenheimer MidCap Fund
Oppenheimer Money Market Fund, Inc.
Oppenheimer Multiple Strategies Fund
Oppenheimer Multi-Sector Income Trust
Oppenheimer Multi-State Municipal Trust (3 series):
                 Oppenheimer New Jersey Municipal Fund
     Oppenheimer Pennsylvania Municipal Fund
     Oppenheimer Rochester National Municipals
Oppenheimer Municipal Bond Fund
Oppenheimer Quest Capital Value Fund, Inc.
Oppenheimer Quest For Value Funds (3 series)
     Oppenheimer Quest Balanced Value Fund
     Oppenheimer Quest Opportunity Value Fund
     Oppenheimer Small Cap Value Fund
Oppenheimer Quest Global Value Fund, Inc.
Oppenheimer Quest Value Fund, Inc.
Oppenheimer Real Asset Fund
Oppenheimer Real Estate Fund
Oppenheimer Select Managers (6 series):
     Gartmore Millennium Growth Fund II
     Jennison Growth Fund
     Mercury Advisors Focus Growth Fund
     Mercury Advisors S&P 500 Index Fund
     QM Active Balanced Fund
     Salomon Brothers Capital Fund
Oppenheimer Senior Floating Rate Fund
            Oppenheimer Series Fund, Inc. (2 series):
     Oppenheimer Disciplined Allocation Fund
     Oppenheimer Value Fund
Oppenheimer Special Value Fund
Oppenheimer Strategic Income Fund
Oppenheimer Total Return Fund, Inc.
Oppenheimer Tremont Market Neutral Fund LLC
Oppenheimer Tremont Opportunity Fund LLC
Oppenheimer Trinity Core Fund
Oppenheimer Trinity Large Cap Growth Fund
Oppenheimer Trinity Value Fund
Oppenheimer U.S. Government Trust
Oppenheimer Variable Account Funds (11 series):
     Oppenheimer Aggressive Growth Fund/VA
     Oppenheimer Bond Fund/VA
     Oppenheimer Capital Appreciation Fund/VA
     Oppenheimer Global Securities Fund/VA
     Oppenheimer High Income Fund/VA
     Oppenheimer Main Street Growth & Income Fund/VA
                 Oppenheimer Main Street Small Cap Fund/VA
     Oppenheimer Money Fund/VA
     Oppenheimer Multiple Strategies Fund/VA
     Oppenheimer Strategic Bond Fund/VA
     Oppenheimer Value Fund/VA
Panorama Series Fund, Inc. (4 series):
     Growth Portfolio
     Government Securities Portfolio
     Oppenheimer International Growth Fund/VA
     Total Return Portfolio

Rochester Fund Municipals


            The address of the  Oppenheimer  funds listed  above,  Shareholder
            Financial   Services,    Inc.,    Shareholder   Services,    Inc.,
            OppenheimerFunds    Services,    Centennial    Asset    Management
            Corporation,  Centennial  Capital  Corp.,  Oppenheimer  Real Asset
            Management,  Inc.  and  OppenheimerFunds  Legacy  Program  is 6803
            South Tucson Way, Centennial, Colorado 80112-3924.

The address of OppenheimerFunds,  Inc.,  OppenheimerFunds  Distributor,  Inc.,
HarbourView Asset Management  Corporation,  Oppenheimer  Partnership Holdings,
Inc.,  Oppenheimer  Acquisition  Corp.,  OFI Private  Investments,  Inc.,  OFI
Institutional  Asset  Management,  Inc. and  Oppenheimer  Trust Company is 498
Seventh Avenue, New York, New York 10018.

The address of Tremont  Advisers,  Inc. is 555 Theodore  Fremd  Avenue,  Suite
206-C, Rye, New York 10580.

The  address  of  OppenheimerFunds  International  Ltd.  is Bloc C, Irish Life
Center, Lower Abbey Street, Dublin 1, Ireland.

The address of Trinity Investment  Management  Corporation is 301 North Spring
Street, Bellefonte, Pennsylvania 16823.



Item 31.  Location of Accounts and Records.


All accounts, books and other documents, required to be maintained by the
Registrant under Section 31(a) of the Investment Company Act of 1940 and the
Rule thereunder are maintained by OppenheimerFunds, Inc. at its offices at
6803 South Tucson Way, Centennial, Colorado 80112.


Item 32.  Management Services.

The Registrant is not a party to any management-related service contract not
discussed in Part A of this Registration Statement.

Item 33.  Undertakings.

1.  The Registrant undertakes to suspend the offering of the shares covered
hereby until it amends its prospectus if (1) subsequent to the effective date
of this Registration Statement, its net asset value per share declines more
than 10 percent from its net asset value per share as of the effective date
of this Registration Statement, or (2) its net asset value increases to an
amount greater than its net proceeds as stated in the prospectus.

2.  Inapplicable

3.  Inapplicable

4.  Inapplicable

5.  Inapplicable






                                  SIGNATURES


Pursuant to the requirements of the Securities Act of 1933 and/or the
Investment Company Act of 1940, the Registrant has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York and State of New York on
the 28th day of February, 2003.


                                          Oppenheimer    Multi-Sector   Income
Trust

                                          By: /s/ John V. Murphy*


                                          John V. Murphy, President,
                                          Principal    Executive   Officer   &
Trustee


Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities on
the dates indicated:

Signatures                          Title                   Date
- ----------                          -----                   ----


/s/ Clayton K. Yeutter*      Chairman of the
- ---------------------------  Board of Trustees           February 28, 2003
Clayton K.Yeutter

/s/ Donald W. Spiro*         Vice Chairman of the        February 28, 2003
- -------------------------    Board and Trustee
Donald W. Spiro

/s/ John V. Murphy*          President, Principal
- --------------------------   Executive Officer           February 28, 2003
John V. Murphy               & Trustee

/s/ Brian W. Wixted*         Treasurer, Principal        February 28, 2003
- -------------------------    Financial and
Brian W. Wixted              Accounting Officer

/s/ Robert G. Galli*         Trustee                     February 28, 2003
- -----------------------

Robert G. Galli


/s/ Phillip A. Griffiths*    Trustee                     February 28, 2003
- ---------------------------
Phillip A. Griffiths

/s/ Benjamin Lipstein*       Trustee                     February 28, 2003
- --------------------------

Benjamin Lipstein


/s/ Joel W. Motley*          Trustee                     February 28, 2003
- ------------------------
Joel W. Motley

/s/ Elizabeth B. Moynihan*   Trustee                     February 28, 2003
- --------------------------------

Elizabeth B. Moynihan


/s/ Kenneth A. Randall*      Trustee                     February 28, 2003
- ----------------------------

Kenneth A. Randall


/s/ Edward V. Regan*         Trustee                     February 28, 2003
- -------------------------

Edward V. Regan

/s/ Russell S. Reynolds, Jr.*                            Trustee  February

28, 2003
- ---------------------------------

Russell S. Reynolds, Jr.


*By: /s/ Robert G. Zack

- -----------------------------------------
Robert G. Zack, Attorney-in-Fact










                     OPPENHEIMER MULTI-SECTOR INCOME TRUST
                           Registration No. 811-5473


                               Index to Exhibits



Exhibit No.       Description
- -----------       -----------


24(2)(a)(4)       Amendment to Declaration of Trust


24(1)             Financial  Statements and Independent  Auditors'  Report and
Consent































680N2-03.doc