0000950123-12-005364.txt : 20120328
0000950123-12-005364.hdr.sgml : 20120328
20120328141541
ACCESSION NUMBER: 0000950123-12-005364
CONFORMED SUBMISSION TYPE: N-Q
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20120131
FILED AS OF DATE: 20120328
DATE AS OF CHANGE: 20120328
EFFECTIVENESS DATE: 20120328
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: OPPENHEIMER EQUITY INCOME FUND INC
CENTRAL INDEX KEY: 0000799029
IRS NUMBER: 132527171
STATE OF INCORPORATION: MD
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: N-Q
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-04797
FILM NUMBER: 12720110
BUSINESS ADDRESS:
STREET 1: 6803 SOUTH TUCSON WAY
STREET 2: N/A
CITY: CENTENNIAL
STATE: CO
ZIP: 80112-3924
BUSINESS PHONE: 303-768-3200
MAIL ADDRESS:
STREET 1: 6803 SOUTH TUCSON WAY
STREET 2: N/A
CITY: CENTENNIAL
STATE: CO
ZIP: 80112-3924
FORMER COMPANY:
FORMER CONFORMED NAME: OPPENHEIMER QUEST CAPITAL VALUE FUND INC
DATE OF NAME CHANGE: 19970303
FORMER COMPANY:
FORMER CONFORMED NAME: QUEST FOR VALUE DUAL PURPOSE FUND INC
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: QFV DUAL PURPOSE FUND INC
DATE OF NAME CHANGE: 19870111
0000799029
S000008498
OPPENHEIMER EQUITY INCOME FUND, INC.
C000023330
A
C000023331
B
C000031353
C
C000031354
N
C000098424
Y
C000110903
I
N-Q
1
g60215nvq.txt
FORM N-Q
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-04797
Oppenheimer Equity Income Fund, Inc.
------------------------------------------------
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
------------------------------------------------------
(Address of principal executive offices) (Zip code)
Arthur S. Gabinet
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
---------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: October 31
Date of reporting period: 1/31/2012
================================================================================
ITEM 1. SCHEDULE OF INVESTMENTS.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Shares Value
--------- -----------
COMMON STOCKS-79.3%
CONSUMER DISCRETIONARY-11.0%
AUTO COMPONENTS-0.8%
Lear Corp. 567,500 $23,778,238
AUTOMOBILES-2.0%
Ford Motor Co. 4,750,000 58,995,000
HOTELS, RESTAURANTS & LEISURE-0.6%
Wyndham Worldwide Corp.(1) 400,000 15,904,000
HOUSEHOLD DURABLES-0.4%
MDC Holdings, Inc.(1) 550,000 10,901,000
MEDIA-2.9%
Cablevision Systems Corp. New York Group, Cl. A 1,000,000 14,550,000
Cinemark Holdings, Inc. 505,000 9,958,600
Comcast Corp., Cl. A Special, Non-Vtg. 1,100,000 28,039,000
Regal Entertainment Group 665,000 8,279,250
Time Warner Cable, Inc. 325,000 23,959,000
-----------
84,785,850
MULTILINE RETAIL-3.2%
Kohl's Corp.(1) 870,000 40,011,300
Target Corp. 1,070,000 54,366,700
-----------
94,378,000
SPECIALTY RETAIL-1.1%
Foot Locker, Inc.(1) 1,215,000 31,881,600
CONSUMER STAPLES-4.3%
BEVERAGES-0.3%
PepsiCo, Inc. 128,000 8,405,760
FOOD & STAPLES RETAILING-2.6%
CVS Caremark Corp.(1) 677,500 28,285,625
Kroger Co. (The) 1,050,000 24,948,000
Walgreen Co.(1) 675,000 22,518,000
-----------
75,751,625
FOOD PRODUCTS-0.9%
Archer-Daniels-Midland Co. 425,000 12,167,750
General Mills, Inc.(1) 67,500 2,688,525
Nestle SA 195,350 11,194,690
-----------
26,050,965
HOUSEHOLD PRODUCTS-0.1%
Procter & Gamble Co. (The) 52,500 3,309,600
TOBACCO-0.4%
Philip Morris International, Inc.(1) 155,000 11,589,350
ENERGY-10.5%
ENERGY EQUIPMENT & SERVICES-1.9%
Ensco plc, Sponsored ADR 550,000 28,952,000
Halliburton Co. 730,000 26,849,400
-----------
55,801,400
OIL, GAS & CONSUMABLE FUELS-8.6%
BP plc, ADR 435,000 19,970,850
Chevron Corp.(1) 775,000 79,887,000
1 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Shares Value
--------- ------------
OIL, GAS & CONSUMABLE FUELS CONTINUED
CONSOL Energy, Inc. 587,500 $ 20,997,250
El Paso Corp. 2,100,000 56,427,000
Exxon Mobil Corp.(1) 480,000 40,195,200
Kinder Morgan Management LLC(2) 1 42
Royal Dutch Shell plc, ADR 470,000 33,539,200
Targa Resources Corp. 29,400 1,218,336
------------
252,234,878
FINANCIALS-19.3%
CAPITAL MARKETS-2.3%
Goldman Sachs Group, Inc. (The) 387,500 43,194,625
Morgan Stanley 1,250,000 23,312,500
------------
66,507,125
COMMERCIAL BANKS-4.4%
CIT Group, Inc.(1,2) 267,622 10,207,103
M&T Bank Corp. 152,500 12,160,350
U.S. Bancorp(1) 1,725,000 48,679,500
Wells Fargo & Co. 2,000,000 58,420,000
------------
129,466,953
DIVERSIFIED FINANCIAL SERVICES-4.7%
JPMorgan Chase & Co.(1) 2,947,500 109,941,750
KKR Financial Holdings LLC 3,235,000 28,629,750
------------
138,571,500
INSURANCE-5.8%
ACE Ltd. 76,500 5,324,400
Assured Guaranty Ltd.(1) 1,500,000 23,265,000
Everest Re Group Ltd.(1) 525,000 44,835,000
Hartford Financial Services Group, Inc. (The) 150,000 2,628,000
MetLife, Inc. 2,062,500 72,868,125
XL Group plc 1,000,000 20,270,000
------------
169,190,525
REAL ESTATE INVESTMENT TRUSTS-2.1%
Apollo Commercial Real Estate Finance, Inc.(1) 1,000,000 14,720,000
Ashford Hospitality Trust 1,150,000 10,361,500
CYS Investments, Inc. 1,100,000 14,850,000
Starwood Property Trust, Inc. 1,132,500 22,310,250
------------
62,241,750
HEALTH CARE-10.0%
BIOTECHNOLOGY-0.3%
PDL BioPharma, Inc. 1,225,000 7,827,750
HEALTH CARE EQUIPMENT & SUPPLIES-0.8%
Medtronic, Inc. 577,500 22,274,175
HEALTH CARE PROVIDERS & SERVICES-0.5%
Humana, Inc. 98,250 8,746,215
WellPoint, Inc.(1) 97,500 6,271,200
------------
15,017,415
2 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Shares Value
--------- ------------
PHARMACEUTICALS-8.4%
Abbott Laboratories(1) 455,000 $ 24,638,250
GlaxoSmithKline plc, ADR 535,000 23,828,900
Johnson & Johnson 247,500 16,312,725
Merck & Co., Inc.(1) 1,875,000 71,737,500
Pfizer, Inc. 3,239,800 69,331,720
Teva Pharmaceutical Industries Ltd., Sponsored ADR(1) 897,500 40,504,175
------------
246,353,270
INDUSTRIALS-5.2%
AEROSPACE & DEFENSE-1.1%
Boeing Co. (The) 15,750 1,168,335
General Dynamics Corp. 445,000 30,776,200
------------
31,944,535
INDUSTRIAL CONGLOMERATES-2.1%
General Electric Co.(1) 2,260,000 42,284,600
Tyco International Ltd. 395,000 20,125,250
------------
62,409,850
MACHINERY-0.6%
Ingersoll-Rand plc 500,000 17,470,000
MARINE-1.1%
Box Ships, Inc.(3) 1,440,000 11,808,000
Costamare, Inc. 660,000 9,603,000
Diana Containerships, Inc.(3) 1,500,000 10,320,000
------------
31,731,000
TRADING COMPANIES & DISTRIBUTORS-0.3%
Aircastle Ltd.(1) 627,821 8,852,276
INFORMATION TECHNOLOGY-6.6%
COMMUNICATIONS EQUIPMENT-1.2%
QUALCOMM, Inc. 595,000 34,997,900
COMPUTERS & PERIPHERALS-1.0%
Seagate Technology(1) 1,350,000 28,539,000
ELECTRONIC EQUIPMENT & INSTRUMENTS-0.4%
Corning, Inc.(1) 950,000 12,226,500
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-1.2%
Intel Corp.(1) 1,165,000 30,779,300
Taiwan Semiconductor Manufacturing Co. Ltd., ADR 200,000 2,816,000
------------
33,595,300
SOFTWARE-2.8%
Microsoft Corp.(1) 2,615,000 77,220,950
Oracle Corp. 200,000 5,640,000
------------
82,860,950
MATERIALS-2.6%
CHEMICALS-1.1%
Celanese Corp., Series A 50,000 2,435,500
LyondellBasell Industries NV, Cl. A 300,000 12,930,000
Mosaic Co. (The) 296,100 16,572,717
------------
31,938,217
3 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Shares Value
--------- -------------
METALS & MINING-0.1%
Freeport-McMoRan Copper & Gold, Inc., Cl. B(1) 55,000 $ 2,541,550
PAPER & FOREST PRODUCTS-1.4%
International Paper Co. 1,335,000 41,571,900
TELECOMMUNICATION SERVICES-5.1%
DIVERSIFIED TELECOMMUNICATION SERVICES-5.1%
AT&T, Inc.(1) 1,800,000 52,938,000
CenturyLink, Inc.(1) 1,787,500 66,191,125
Consolidated Communications Holdings, Inc.(1) 785,000 14,907,150
Frontier Communications Corp. 3,775,000 16,157,000
-------------
150,193,275
UTILITIES-4.7%
ELECTRIC UTILITIES-3.6%
American Electric Power Co., Inc. 525,000 20,769,000
Edison International, Inc.(1) 775,000 31,806,000
Entergy Corp.(1) 250,000 17,345,000
Exelon Corp. 100,000 3,978,000
FirstEnergy Corp.(1) 555,000 23,432,100
PPL Corp.(1) 310,000 8,614,900
-------------
105,945,000
ENERGY TRADERS-0.5%
Constellation Energy Group, Inc. 235,000 8,561,050
GenOn Energy, Inc.(2) 3,100,000 6,603,000
-------------
15,164,050
MULTI-UTILITIES-0.6%
National Grid plc, Sponsored ADR 345,000 17,212,050
-------------
Total Common Stocks (Cost $2,160,816,790) 2,320,411,082
PREFERRED STOCKS-6.6%
Apache Corp., 6% Cv., Series D, Non-Vtg. 277,500 15,936,825
Citigroup, Inc., 7.50% Cv. 847,500 78,529,350
General Motors Co., 4.75% Cv., Series B, Non-Vtg. 1,745,000 69,904,700
MetLife, Inc., 5% Cv., Non-Vtg. 122,500 8,392,475
PPL Corp., 8.75% Cv. 160,000 8,409,600
Synovus Financial Corp., 8.25% Cv. 675,000 11,407,500
-------------
Total Preferred Stocks (Cost $213,246,790) 192,580,450
Principal
Amount
---------
MORTGAGE-BACKED OBLIGATIONS-0.5%
Banc of America Funding 2007-C Trust, Mtg. Pass-Through
Certificates, Series 2007-C, Cl. 1A4, 5.54%, 5/1/36(4) $190,000 172,150
Banc of America Mortgage Securities, Inc., Mtg. Pass-Through
Certificates, Series 2004-E, Cl. 2A6, 2.866%, 6/1/34(4) 343,998 311,818
Bear Stearns ARM Trust 2007-4, Mtg. Pass-Through
Certificates, Series 2007-4, Cl. 22A1, 5.626%, 6/1/47(4) 559,096 398,281
CHL Mortgage Pass-Through Trust 2005-29, Mtg. Pass-
Through Certificates, Series 2005-29, Cl. A1, 5.75%, 12/1/35 174,812 149,162
4 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
----------- ----------
CHL Mortgage Pass-Through Trust 2006-6, Mtg. Pass-Through
Certificates, Series 2006-6, Cl. A3, 6%, 4/1/36 $ 354,613 $ 342,170
CHL Mortgage Pass-Through Trust 2007-J3, Mtg. Pass-
Through Certificates, Series 2007-J3, Cl. A9, 6%, 7/1/37 149,467 118,879
Countrywide Alternative Loan Trust 2005-29CB, Mtg. Pass-
Through Certificates, Series 2005-29CB, Cl. A4, 5%, 7/1/35 1,639,977 1,216,789
Countrywide Alternative Loan Trust 2007-19, Mtg. Pass-
Through Certificates, Series 2007-19, Cl. 1A34, 6%, 8/1/37 459,376 324,869
Countrywide Home Loans, Asset-Backed Certificates, Series
2002-4, Cl. A1, 1.016%, 2/25/33(4) 13,848 13,305
CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed
Certificates, Series 2006-25, Cl. 2A2, 0.396%, 6/25/47(4) 784,563 695,357
Deutsche Alt-B Securities, Inc., Mtg. Pass-Through Certificates,
Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36 467,101 261,547
Federal Home Loan Mortgage Corp.:
8%, 4/1/16 12,791 13,844
9%, 8/1/22-5/1/25 5,024 5,793
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg.
Investment Conduit Multiclass Pass-Through Certificates,
Series 151, Cl. F, 9%, 5/15/21 15,295 17,348
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 183, Cl. IO, 15.162%, 4/1/27(5) 217,832 35,353
Series 192, Cl. IO, 12.868%, 2/1/28(5) 64,917 12,110
Series 2130, Cl. SC, 50.496%, 3/15/29(5) 185,119 37,602
Series 243, Cl. 6, 0.41%, 12/15/32(5) 264,444 51,101
Series 2527, Cl. SG, 6.499%, 2/15/32(5) 18,947 138
Series 2531, Cl. ST, 6.766%, 2/15/30(5) 68,242 1,312
Series 2639, Cl. SA, 0.992%, 7/15/22(5) 436,749 32,497
Series 2796, Cl. SD, 61.711%, 7/15/26(5) 275,047 54,151
Series 2802, Cl. AS, 60.184%, 4/15/33(5) 221,222 14,084
Series 3110, Cl. SL, 99.999%, 2/15/26(5) 239,375 34,946
Federal Home Loan Mortgage Corp., Principal-Only Stripped
Mtg.-Backed Security, Series 176, Cl. PO, 3.855%, 6/1/26(6) 60,927 56,578
Federal National Mortgage Assn.:
7.50%, 1/1/33 208,863 249,876
8.50%, 7/1/32 7,425 9,117
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-
Backed Security:
Trust 2001-63, Cl. SD, 36.061%, 12/18/31(5) 7,640 1,392
Trust 2001-65, Cl. S, 36.482%, 11/25/31(5) 554,280 102,229
Trust 2001-68, Cl. SC, 37.324%, 11/25/31(5) 4,999 936
Trust 2001-81, Cl. S, 31.441%, 1/25/32(5) 129,390 26,304
Trust 2002-47, Cl. NS, 34.411%, 4/25/32(5) 283,235 54,904
Trust 2002-51, Cl. S, 34.673%, 8/25/32(5) 260,073 50,412
Trust 2002-52, Cl. SD, 38.907%, 9/25/32(5) 325,034 66,438
Trust 2002-7, Cl. SK, 36.04%, 1/25/32(5) 9,603 1,609
Trust 2002-77, Cl. BS, 30.099%, 12/18/32(5) 17,933 3,061
Trust 2002-77, Cl. SH, 40.348%, 12/18/32(5) 187,753 37,372
5 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
---------- ----------
Trust 2002-9, Cl. MS, 33.068%, 3/25/32(5) $ 189,226 $ 37,540
Trust 2002-90, Cl. SN, 37.474%, 8/25/32(5) 15,298 2,564
Trust 2002-90, Cl. SY, 42.05%, 9/25/32(5) 7,712 1,321
Trust 2003-4, Cl. S, 36.05%, 2/25/33(5) 324,599 54,970
Trust 2003-46, Cl. IH, 0%, 6/1/23(5,7) 1,988,752 258,292
Trust 2003-89, Cl. XS, 47.346%, 11/25/32(5) 177,534 6,928
Trust 2004-54, Cl. DS, 49.301%, 11/25/30(5) 300,109 54,371
Trust 2005-14, Cl. SE, 41.384%, 3/25/35(5) 373,725 52,019
Trust 2005-93, Cl. SI, 17.104%, 10/25/35(5) 253,631 34,111
Trust 2006-60, Cl. DI, 38.845%, 4/25/35(5) 232,496 32,236
Trust 2008-67, Cl. KS, 58.205%, 8/25/34(5) 791,228 57,130
Trust 214, Cl. 2, 40.733%, 3/1/23(5) 388,857 78,008
Trust 222, Cl. 2, 23.233%, 6/1/23(5) 492,928 96,024
Trust 247, Cl. 2, 45.198%, 10/1/23(5) 116,182 24,970
Trust 252, Cl. 2, 35.212%, 11/1/23(5) 399,991 85,125
Trust 319, Cl. 2, 5.835%, 2/1/32(5) 135,642 24,523
Trust 320, Cl. 2, 9.49%, 4/1/32(5) 635,413 112,338
Trust 331, Cl. 9, 13.451%, 2/1/33(5) 51,593 9,660
Trust 334, Cl. 17, 20.682%, 2/1/33(5) 252,509 54,420
Trust 339, Cl. 12, 2.702%, 7/1/33(5) 522,049 88,487
Trust 343, Cl. 13, 8.347%, 9/1/33(5) 501,530 75,924
Trust 343, Cl. 18, 0.997%, 5/1/34(5) 77,528 11,222
Trust 345, Cl. 9, 44.107%, 1/1/34(5) 591,052 71,697
Trust 351, Cl. 10, 0.965%, 4/1/34(5) 129,294 17,592
Trust 351, Cl. 8, 1.136%, 4/1/34(5) 264,862 36,239
Trust 356, Cl. 10, 0%, 6/1/35(5,7) 218,254 30,425
Trust 356, Cl. 12, 0%, 2/1/35(5,7) 108,914 15,175
Trust 362, Cl. 13, 1.604%, 8/1/35(5) 1,232,137 196,525
Trust 364, Cl. 16, 0%, 9/1/35(5,7) 505,830 74,492
Federal National Mortgage Assn., Principal-Only Stripped
Mtg.-Backed Security, Trust 1993-184, Cl. M, 4.462%, 9/25/23(6) 190,495 183,047
First Horizon Alternative Mortgage Securities Trust 2004-FA2,
Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35 498,353 460,377
First Horizon Alternative Mortgage Securities Trust 2007-FA2,
Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37 513,219 342,263
Government National Mortgage Assn.:
2.375%, 4/8/26(4) 12,824 13,262
7%, 1/29/24-4/29/26 96,268 112,163
7.50%, 5/29/27 433,238 513,526
8%, 5/30/17 14,422 16,000
8.50%, 8/1/17-12/15/17 6,962 7,847
Government National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security:
Series 2001-21, Cl. SB, 88.496%, 1/16/27(5) 413,765 83,892
Series 2002-15, Cl. SM, 80.145%, 2/16/32(5) 334,823 67,979
Series 2004-11, Cl. SM, 79.527%, 1/17/30(5) 315,384 76,950
6 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
--------- -----------
Impac CMB Trust /Navios Maritime Finance U.S., Inc. Series
2005-4, Collateralized Asset-Backed Bonds, Series 2005-4, Cl.
1A1A, 0.816%, 5/25/35(4) $ 320,129 $ 216,054
IndyMac Index Mortgage Loan Trust 2005-AR23, Mtg. Pass-
Through Certificates, Series 2005-AR23, Cl. 6 A1, 5.104%,
11/1/35(4) 716,736 501,512
JPMorgan Alternative Loan Trust 2006-S4, Mtg. Pass-Through
Certificates, Series 2006-S4, Cl. A6, 5.71%, 12/1/36 569,714 496,882
JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through
Certificates, Series 2007-A3, Cl. 3A2M, 5.207%, 5/1/37(4) 107,794 88,534
JPMorgan Mortgage Trust 2007-S3, Mtg. Pass-Through
Certificates, Series 2007-S3, Cl. 1A90, 7%, 8/1/37 737,525 628,712
Mastr Adjustable Rate Mortgages Trust 2004-13, Mtg. Pass-
Through Certificates, Series 2004-13, Cl. 2A2, 2.662%, 4/1/34(4) 408,848 401,757
Mastr Alternative Loan Trust 2004-6, Mtg. Pass-Through
Certificates, Series 2004-6, Cl. 10A1, 6%, 7/25/34 785,782 806,399
RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through
Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33 196,981 204,282
RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through
Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 45,242 26,244
Residential Asset Securitization Trust 2005-A15, Mtg. Pass-
Through Certificates, Series 2005-A15, Cl. 1A4, 5.75%, 2/1/36 117,575 92,408
Structured Adjustable Rate Mortgage Loan Trust, Mtg. Pass-
Through Certificates, Series 2004-5, Cl. 3A1, 2.506%, 5/1/34(4) 408,082 385,909
WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust,
Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A4,
2.47%, 12/1/35(4) 396,212 316,433
WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust,
Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 3A1,
5.444%, 5/1/37(4) 448,275 385,799
Wells Fargo Alternative Loan 2007-PA5 Trust, Mtg. Asset-
Backed Pass-Through Certificates, Series 2007-PA5, Cl. 1A1,
6.25%, 11/1/37 398,193 316,089
Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg.
Pass-Through Certificates, Series 2004-R, Cl. 2A1, 2.625%,
9/1/34(4) 179,597 174,745
Wells Fargo Mortgage-Backed Securities 2005-9 Trust, Mtg.
Pass-Through Certificates, Series 2005-9, Cl. 2A6, 5.25%,
10/25/35 516,533 504,567
Wells Fargo Mortgage-Backed Securities 2006-AR14 Trust,
Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 1A2,
5.666%, 10/1/36(4) 449,541 387,025
Wells Fargo Mortgage-Backed Securities 2007-AR8 Trust, Mtg.
Pass-Through Certificates, Series 2007-AR8, Cl. A1, 6.034%,
11/1/37(4) 487,172 363,568
----------
Total Mortgage-Backed Obligations (Cost $15,416,607) 14,843,387
U.S. GOVERNMENT OBLIGATIONS-0.0%
Federal Home Loan Mortgage Corp. Nts., 5.25%, 4/18/16(8)
(Cost $459,731) 425,000 502,962
7 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
----------- ----------
FOREIGN GOVERNMENT OBLIGATIONS-0.0%
Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24
(Cost $1) 1 EUR $ 2
NON-CONVERTIBLE CORPORATE BONDS AND NOTES-2.4%
Agrium, Inc., 6.125% Sr. Unsec. Nts., 1/15/41 $240,000 304,926
Airgas, Inc., 3.25% Sr. Nts., 10/1/15 481,000 495,870
Allegheny Energy Supply Co. LLC, 8.25% Bonds, 4/15/12(9) 475,000 481,167
Alliant Techsystems, Inc., 6.75% Sr. Sub. Nts., 4/1/16 526,000 543,095
Altria Group, Inc., 10.20% Sr. Unsec. Nts., 2/6/39 415,000 659,937
American Express Bank FSB, 5.50% Sr. Unsec. Nts., 4/16/13 528,000 555,582
American Tower Corp., 7% Sr. Unsec. Nts., 10/15/17 370,000 422,444
Anadarko Petroleum Corp., 6.20% Sr. Unsec. Nts., 3/15/40 343,000 405,754
ANZ National International Ltd., 2.375% Sr. Unsec. Nts., 12/21/12(9) 603,000 610,553
Arrow Electronics, Inc., 3.375% Sr. Unsec. Unsub. Nts.,
11/1/15 990,000 998,824
Ashland, Inc., 9.125% Sr. Unsec. Nts., 6/1/17 485,000 546,231
AT&T, Inc., 6.30% Sr. Unsec. Bonds, 1/15/38 761,000 931,547
Bank of America Corp., 5.875% Sr. Unsec. Unsub. Nts., 1/5/21 210,000 216,244
BE Aerospace, Inc., 8.50% Sr. Unsec. Nts., 7/1/18 475,000 526,063
Blackstone Holdings Finance Co. LLC, 6.625% Sr. Unsec. Nts.,
8/15/19(9) 940,000 1,000,373
BNP Paribas SA, 5.186% Sub. Perpetual Nts.(9,10) 170,000 124,100
Brandywine Operating Partnership LP, 5.75% Sr. Unsec. Unsub. Nts., 4/1/12 277,000 278,199
British Telecommunications plc, 9.875% Bonds, 12/15/30 325,000 484,513
Bunge Ltd. Finance Corp.:
5.35% Sr. Unsec. Unsub. Nts., 4/15/14 63,000 66,590
8.50% Sr. Unsec. Nts., 6/15/19 365,000 452,572
Burlington Northern Santa Fe LLC, 5.75% Sr. Unsec. Bonds, 5/1/40 143,000 175,819
Canadian Oil Sands Ltd., 5.80% Sr. Unsec. Nts., 8/15/13(9) 486,000 516,075
Capital One Financial Corp., 4.75% Sr. Nts., 7/15/21 262,000 276,508
Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40 344,000 385,965
CenturyLink, Inc., 7.60% Sr. Unsec. Unsub. Nts., Series P,
9/15/39 193,000 196,734
Citigroup, Inc., 6.125% Sr. Unsec. Unsub. Nts., 11/21/17 968,000 1,066,735
Cloud Peak Energy Resources LLC, 8.25% Sr. Unsec. Unsub.
Nts., 12/15/17 495,000 537,075
CNA Financial Corp.:
5.75% Sr. Unsec. Unsub. Nts., 8/15/21 462,000 489,126
5.875% Sr. Unsec. Unsub. Bonds, 8/15/20 540,000 569,837
Comcast Cable Communications Holdings, Inc., 9.455% Sr.
Unsec. Nts., 11/15/22 317,000 458,887
Corrections Corp. of America, 7.75% Sr. Nts., 6/1/17 525,000 572,578
Credit Suisse Guernsey Ltd., 5.86% Jr. Sub. Perpetual Nts.(10) 330,000 288,750
CSX Corp., 5.50% Sr. Unsec. Nts., 4/15/41 148,000 170,241
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 6.375%
Sr. Unsec. Nts., 3/1/41 431,000 509,905
Duke Realty LP, 6.25% Sr. Unsec. Unsub. Nts., 5/15/13 503,000 525,975
El Paso Pipeline Partners LP, 6.50% Sr. Unsec. Nts., 4/1/20 782,000 877,876
8 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
---------- ----------
Energizer Holdings, Inc., 4.70% Sr. Nts., 5/19/21(9) $ 552,000 $ 594,197
Ensco plc, 4.70% Sr. Unsec. Nts., 3/15/21 461,000 495,310
Family Dollar Stores, Inc., 5% Sr. Unsec. Nts., 2/1/21 301,000 315,001
Fifth Third Cap Trust IV, 6.50% Jr. Unsec. Sub. Nts., 4/15/37 1,017,000 1,014,458
FirstEnergy Solutions Corp., 6.80% Sr. Unsec. Nts., 8/15/39 317,000 365,979
Fortune Brands, Inc., 6.375% Sr. Unsec. Unsub. Nts., 6/15/14 128,000 139,751
Freeport-McMoRan Copper & Gold, Inc., 8.375% Sr. Nts., 4/1/17 759,000 801,581
Frontier Communications Corp., 8.25% Sr. Unsec. Nts., 4/15/17 527,000 533,588
General Electric Capital Corp.:
4.25% Sr. Unsec. Nts., Series A, 6/15/12 495,000 501,819
5.25% Sr. Unsec. Nts., 10/19/12 85,000 87,846
6.375% Unsec. Sub. Bonds, 11/15/67 1,005,000 1,002,488
Glen Meadow Pass-Through Trust, 6.505% Bonds, 2/12/67(4,11) 631,000 477,983
Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 523,000 488,507
Goldman Sachs Group, Inc. (The), 5.25% Sr. Unsec. Nts., 7/27/21 169,000 169,261
Great Plains Energy, Inc., 2.75% Sr. Unsec. Unsub. Nts., 8/15/13 553,000 559,280
Gulf South Pipeline Co. LP, 5.75% Sr. Unsec. Nts., 8/15/12(9) 490,000 499,911
Harris Corp., 6.15% Sr. Unsec. Nts., 12/15/40 168,000 190,253
Historic TW, Inc., 9.125% Debs., 1/15/13 183,000 196,905
HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35(4) 1,330,000 1,157,100
Huntington Bancshares, Inc., 7% Sub. Nts., 12/15/20 493,000 565,969
Hyatt Hotels Corp., 5.75% Sr. Unsec. Unsub. Nts., 8/15/15(9) 780,000 836,154
International Lease Finance Corp., 5.75% Sr. Unsec. Unsub.
Nts., 5/15/16 539,000 532,048
Interpublic Group of Cos., Inc. (The):
6.25% Sr. Unsec. Nts., 11/15/14 200,000 217,000
10% Sr. Unsec. Nts., 7/15/17 620,000 712,225
Irish Life & Permanent Group Holdings plc, 3.60% Sr. Unsec.
Unsub. Nts., 1/14/13(9) 420,000 398,034
JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1(10) 900,000 978,235
Juniper Networks, Inc., 5.95% Sr. Unsec. Unsub. Nts., 3/15/41 219,000 245,873
Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec.
Nts., 6/1/13 909,000 952,519
Kinross Gold Corp., 3.625% Sr. Unsec. Nts., 9/1/16(9) 419,000 418,062
KLA-Tencor Corp., 6.90% Sr. Unsec. Nts., 5/1/18 373,000 441,765
Kraft Foods, Inc., 6% Sr. Unsec. Nts., 2/11/13 492,000 516,526
Lamar Media Corp., 9.75% Sr. Unsec. Nts., 4/1/14 487,000 555,180
Liberty Mutual Group, Inc., 5% Sr. Nts., 6/1/21(9) 808,000 803,840
Lincoln National Corp., 6.05% Jr. Unsec. Sub. Bonds, 4/20/67 1,102,000 989,045
Lloyds TSB Bank plc, 6.50% Unsec. Sub. Nts., 9/14/20(9) 598,000 559,089
Lorillard Tobacco Co., 7% Sr. Unsec. Nts., 8/4/41 354,000 375,506
Macquarie Bank Ltd., 6.625% Unsec. Sub. Nts., 4/7/21(9) 735,000 701,237
Marriott International, Inc., 6.20% Sr. Unsec. Unsub. Nts.,
6/15/16 580,000 685,944
9 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
---------- ----------
Mattel, Inc., 5.625% Sr. Unsec. Nts., 3/15/13 $ 490,000 $ 516,826
McKesson Corp., 6% Sr. Unsec. Unsub. Nts., 3/1/41 288,000 378,490
Mercantile Bankshares Corp., 4.625% Unsec. Sub. Nts., Series B, 4/15/13 348,000 362,008
Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38 369,000 389,436
Morgan Stanley:
5.50% Sr. Unsec. Unsub. Nts., 7/24/20(9) 218,000 215,688
5.55% Sr. Unsec. Unsub. Nts., Series F, 4/27/17 1,275,000 1,307,541
Mylan, Inc., 6% Sr. Nts., 11/15/18(9) 565,000 586,188
Nabors Industries, Inc., 6.15% Sr. Unsec. Unsub. Nts., 2/15/18 680,000 767,849
Newell Rubbermaid, Inc., 5.50% Sr. Unsec. Nts., 4/15/13 527,000 554,012
Nexen, Inc., 6.40% Sr. Unsec. Unsub. Bonds, 5/15/37 573,000 648,627
Nomura Holdings, Inc., 4.125% Sr. Unsec. Unsub. Nts.,
1/19/16 520,000 521,255
Northeast Utilities Co., 7.25% Sr. Unsec. Nts., 4/1/12 525,000 530,001
Oncor Electric Delivery Co., 7% Debs., 9/1/22 470,000 606,211
Potash Corp. of Saskatchewan, Inc., 5.625% Sr. Unsec. Unsub. Nts., 12/1/40 323,000 406,922
PPL WEM Holdings plc, 5.375% Sr. Unsec. Nts., 5/1/21(9) 763,000 826,850
Prudential Financial, Inc., 3.625% Sr. Unsec. Unsub. Nts., 9/17/12 593,000 603,344
Quest Diagnostics, Inc., 5.75% Sr. Unsec. Nts., 1/30/40 345,000 381,922
Qwest Corp., 7.625% Sr. Unsec. Unsub. Nts., 6/15/15 531,000 607,235
Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19 503,000 557,073
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec.
Nts., 9/30/14(9) 305,000 327,113
Rent-A-Center, Inc., 6.625% Sr. Unsec. Nts., 11/15/20 569,000 590,338
Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13 491,000 524,967
Rockies Express Pipeline LLC, 3.90% Sr. Unsec. Unsub. Nts.,
4/15/15(9) 930,000 920,700
Rowan Cos., Inc., 5% Sr. Unsec. Nts., 9/1/17 579,000 615,765
Sealed Air Corp., 7.875% Sr. Nts., 6/15/17 417,000 444,053
Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15 530,000 580,350
SLM Corp., 6.25% Sr. Nts., 1/25/16 739,000 755,191
Sumitomo Mitsui Banking Corp., 8% Unsec. Sub. Nts.,
6/15/12 540,000 551,093
Sunoco Logistics Partners Operations LP, 7.25% Sr. Unsec.
Nts., 2/15/12 506,000 506,989
Swiss Re Capital I LP, 6.854% Perpetual Bonds(9,10) 1,077,000 974,390
Symantec Corp., 4.20% Sr. Unsec. Unsub. Nts., 9/15/20 625,000 642,323
TD Ameritrade Holding Corp., 2.95% Sr. Unsec. Unsub. Nts.,
12/1/12 525,000 534,850
Teck Resources Ltd., 7% Sr. Unsec. Unsub. Nts., 9/15/12 502,000 520,040
Texas-New Mexico Power Co., 9.50% Sec. Nts., 4/1/19(9) 540,000 710,700
Time Warner Entertainment Co. LP, 8.375% Sr. Nts., 7/15/33 279,000 371,420
TransAlta Corp., 5.75% Sr. Unsec. Nts., 12/15/13 251,000 267,945
TreeHouse Foods, Inc., 7.75% Sr. Unsec. Nts., 3/1/18 550,000 594,000
UBS AG Stamford CT, 2.25% Sr. Unsec. Nts., 8/12/13 223,000 224,020
UBS Preferred Funding Trust V, 6.243% Jr. Sub. Perpetual Nts.(10) 243,000 221,130
10 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
---------- -----------
Vale Inco Ltd., 5.70% Sr. Unsec. Unsub. Nts., 10/15/15 $ 31,000 $ 33,886
Verizon Communications, Inc., 6.40% Sr. Unsec. Nts., 2/15/38 318,000 403,602
Viacom, Inc., 7.875% Sr. Unsec. Debs., 7/30/30 296,000 383,776
Virgin Media Secured Finance plc:
5.25% Sr. Sec. Nts., 1/15/21 307,000 333,244
6.50% Sr. Sec. Nts., 1/15/18 658,000 710,640
Wal-Mart Stores, Inc., 5.625% Sr. Unsec. Nts., 4/15/41 338,000 427,771
WCI Finance LLC/WEA Finance LLC, 5.40% Sr. Unsec. Unsub. Nts., 10/1/12(9) 534,000 547,559
Weatherford International Ltd. Bermuda, 5.125% Sr. Unsec. Unsub. Nts., 9/15/20 576,000 623,293
Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K(10) 382,000 415,425
Whirlpool Corp.:
5.50% Sr. Unsec. Unsub. Nts., 3/1/13 213,000 220,897
8% Sr. Unsec. Nts., 5/1/12 410,000 416,939
Willis Group Holdings plc, 4.125% Sr. Unsec. Unsub. Nts., 3/15/16 563,000 576,842
Woodside Finance Ltd., 4.60% Sr. Unsec. Nts., 5/10/21(9) 390,000 404,311
Xerox Corp., 5.65% Sr. Unsec. Nts., 5/15/13 528,000 557,167
Xstrata Canada Corp.:
5.375% Sr. Unsec. Unsub. Nts., 6/1/15 170,000 186,420
6% Sr. Unsec. Unsub. Nts., 10/15/15 411,000 453,552
7.25% Sr. Unsec. Unsub. Nts., 7/15/12 242,000 248,616
Xstrata Finance Canada Ltd., 5.80% Sr. Unsec. Unsub. Bonds, 11/15/16(9) 78,000 87,188
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37(4,11) 598,000 554,645
Zions Bancorp., 7.75% Sr. Unsec. Nts., 9/23/14 723,000 778,236
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $65,753,457) 68,807,003
CONVERTIBLE CORPORATE BONDS AND NOTES-7.4%
CNO Financial Group, Inc.:
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 16,566,000 23,337,353
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 6,157,000 8,673,674
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 608,000 856,520
Continental Airlines, Inc., 4.50% Cv. Sr. Unsec. Unsub. Nts., 1/15/15 27,750,000 39,196,875
General Cable Corp., 4.50% Cv. Unsec. Sub. Nts., 11/15/29(4) 27,000,000 29,497,500
MGIC Investment Corp., 9% Cv. Jr. Unsec. Sub. Bonds, 4/1/63(9) 57,536,000 28,768,000
Navistar International Corp., 3% Cv. Sr. Sub. Nts., 10/15/14 19,250,000 22,402,188
Radian Group, Inc., 3% Cv. Sr. Unsec. Unsub. Nts., 11/15/17 24,000,000 12,000,000
Rite Aid Corp., 8.50% Cv. Sr. Unsec. Unsub. Nts., 5/15/15 23,774,000 21,961,233
Standard Chartered plc, 6.409% Cv. Jr. Unsec. Sub. Bonds, 1/29/49(9) 400,000 348,251
Take-Two Interactive Software, Inc., 4.375% Cv. Sr. Nts., 6/1/14 19,000,000 30,186,250
-----------
Total Convertible Corporate Bonds and Notes (Cost $229,538,427) 217,227,844
STRUCTURED SECURITIES-3.6%
Bank of America, CIT Group, Inc. Equity Linked Nts. 258,198 9,858,000
11 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Principal
Amount Value
------------ -----------
Barclays Bank plc:
Allegheny Technologies, Inc. Yield Enhanced Equity Linked Debt Securities $ 173,258 $ 8,125,800
Celanese Corp. Yield Enhanced Equity Linked Debt Securities 198,109 9,622,154
Lear Corp. Yield Enhanced Equity Linked Debt Securities 532,368 22,370,103
Citigroup Funding, Inc., Mosaic Co. Equity Linked Nts. 199,009 11,238,775
Credit Suisse AG, Apple, Inc. Equity Linked Nts. 30,000 13,343,550
Deutsche Bank AG London, Celanese Corp. Equity Linked Nts.(11) 208,400 10,184,508
Goldman Sachs Group, Inc. (The):
Apple, Inc. Equity Linked Nts. 29,400 13,307,652
OfficeMax, Inc. Equity Linked Nts.(11) 1,345,291 7,635,858
-----------
Total Structured Securities (Cost $107,500,965) 105,686,400
Expiration Strike
Date Price Contracts
---------- ---------- ---------
OPTIONS PURCHASED-0.0%
Assured Guaranty Ltd. Put(2) 4/23/12 $ 10.000 5,000 80,000
CenturyLink, Inc. Put(2) 2/21/12 34.000 3,000 75,000
Chevron Corp. Put(2) 2/21/12 95.000 3,250 65,000
CONSOL Energy, Inc. Put(2) 2/21/12 33.000 2,000 78,000
Corning, Inc. Put(2) 2/21/12 12.000 1,000 9,000
Exxon Mobil Corp. Put(2) 2/21/12 77.500 2,000 24,000
Ford Motor Co. Put(2) 2/21/12 11.000 6,000 18,000
Goldman Sachs Group, Inc. (The) Put(2) 2/21/12 90.000 1,250 13,750
Halliburton Co. Put(2) 2/21/12 30.000 4,000 12,000
Mosaic Co. (The) Put(2) 2/21/12 50.000 4,500 90,000
Mosaic Co. (The) Put(2) 2/21/12 47.500 5,000 35,000
Navistar International Corp. Put(2) 2/21/12 35.000 2,000 50,000
SunTrust Banks, Inc. Put(2) 2/21/12 17.000 2,000 12,000
-------
Total Options Purchased (Cost $1,742,447) 561,750
Shares
---------
INVESTMENT COMPANY-0.3%
Oppenheimer Institutional Money Market Fund, Cl. E,
0.23% (3,12) (Cost $8,577,107) 8,577,107 8,577,107
Total Investments, at Value (Cost $2,803,052,322) 100.1% 2,929,197,987
Liabilities in Excess of Other Assets (0.1) (2,368,742)
---------- ---------------
NET ASSETS 100.0% $2,926,829,245
========== ===============
FOOTNOTES TO STATEMENT OF INVESTMENTS
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currency:
EUR Euro
1. All or a portion of the security position is held in collateralized accounts
to cover potential obligations with respect to outstanding written options.
See accompanying Notes.
12 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
2. Non-income producing security.
3. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended January 31, 2012, by virtue of the Fund owning
at least 5% of the voting securities of the issuer or as a result of the
Fund and the issuer having the same investment adviser. Transactions
during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
OCTOBER 31, 2011 ADDITIONS REDUCTIONS JANUARY 31, 2012
---------------- ------------ ------------ -----------------
Box Ships, Inc. 1,605,000 - 165,000 1,440,000
Diana Containerships, Inc. 1,502,500 - 2,500 1,500,000
Oppenheimer Institutional Money Market Fund, Cl. E 8,453,736 116,613,536 116,490,165 8,577,107
REALIZED
VALUE INCOME LOSS
------------ ------------ -----------------
Box Ships, Inc. $ 11,808,000 $ 468,000 $ 312,684
Diana Containerships, Inc. 10,320,000 225,375 6,413
Oppenheimer Institutional Money Market Fund, Cl. E 8,577,107 4,493 -
------------ ------------ -----------------
$ 30,705,107 $ 697,868 $ 319,097
============ ============ =================
4. Represents the current interest rate for a variable or increasing rate
security.
5. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans or other receivables.
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 or asset-backed securities (for example, GNMA
pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows. These securities amount to $2,541,100 or 0.09% of the Fund's net
assets as of January 31, 2012.
6. Principal-Only Strips represent the right to receive the monthly principal
payments on an underlying pool of mortgage loans. The value of these
securities generally increases as interest rates decline and prepayment
rates rise. The price of these securities is typically more volatile than
that of coupon-bearing bonds of the same maturity. Interest rates disclosed
represent current yields based upon the current cost basis and estimated
timing of future cash flows. These securities amount to $239,625 or 0.01%
of the Fund's net assets as of January 31, 2012.
7. The current amortization rate of the security's cost basis exceeds the
future interest payments currently estimated to be received. Both the
amortization rate and interest payments are contingent on future mortgage
pre-payment speeds and are therefore subject to change.
8. All or a portion of the security position is held in collateralized accounts
to cover initial margin requirements on open futures contracts and written
options on futures, if applicable. The aggregate market value of such
securities is $214,203. See accompanying Notes.
9. 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 Directors. These securities amount to $42,259,730 or 1.44% of the Fund's
net assets as of January 31, 2012.
10. This bond has no contractual maturity date, is not redeemable and
contractually pays an indefinite stream of interest. Rate reported
represents the current interest rate for this variable rate security.
11. Restricted security. The aggregate value of restricted securities as of
January 31, 2012 was $18,852,994, which represents 0.64% of the Fund's
net assets. See accompanying Notes. Information concerning restricted
securities is as follows:
UNREALIZED
ACQUISITION APPRECIATION
SECURITY DATE COST VALUE (DEPRECIATION)
------------------------------------------------------------------- --------------- ----------- ----------- ---------------
Deutsche Bank AG London, Celanese Corp. Equity Linked Nts. 1/18/12 $10,003,200 $10,184,508 $ 181,308
Glen Meadow Pass-Through Trust, 6.505% Bonds, 2/12/67 1/5/11 539,620 477,983 (61,637)
Goldman Sachs Group, Inc. (The), OfficeMax, Inc. Equity Linked Nts. 9/2/11 7,499,997 7,635,858 135,861
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37 2/24/11-7/26/11 602,827 554,645 (48,182)
--------------- ----------- ----------- ---------------
$18,645,644 $18,852,994 $ 207,350
=========== =========== ===============
12. Rate shown is the 7-day yield as of January 31, 2012.
13 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
VALUATION INPUTS
Various data inputs are used in determining the value of each of the Fund's
investments as of the reporting period end. These data inputs are categorized in
the following hierarchy under applicable financial accounting standards:
1) Level 1-unadjusted quoted prices in active markets for identical
assets or liabilities (including securities actively traded on a
securities exchange)
2) Level 2-inputs other than unadjusted quoted prices that are
observable for the asset or liability (such as unadjusted quoted
prices for similar assets and market corroborated inputs such as
interest rates, prepayment speeds, credit risks, etc.)
3) Level 3-significant unobservable inputs (including the Manager's own
judgments about assumptions that market participants would use in
pricing the asset or liability).
The table below categorizes amounts as of January 31, 2012 based on valuation
input level:
LEVEL 3-
LEVEL 1- LEVEL 2- SIGNIFICANT
UNADJUSTED OTHER SIGNIFICANT UNOBSERVABLE
QUOTED PRICES OBSERVABLE INPUTS INPUTS VALUE
-------------- ----------------- ------------ --------------
ASSETS TABLE
INVESTMENTS, AT VALUE:
Common Stocks
Consumer Discretionary $ 320,623,688 $ - $ - $ 320,623,688
Consumer Staples 125,107,300 - - 125,107,300
Energy 308,036,278 - - 308,036,278
Financials 565,977,853 - - 565,977,853
Health Care 291,472,610 - - 291,472,610
Industrials 152,407,661 - - 152,407,661
Information Technology 192,219,650 - - 192,219,650
Materials 76,051,667 - - 76,051,667
Telecommunication Services 150,193,275 - - 150,193,275
Utilities 138,321,100 - - 138,321,100
Preferred Stocks 105,873,675 86,706,775 - 192,580,450
Mortgage-Backed Obligations - 14,843,387 - 14,843,387
U.S. Government Obligations - 502,962 - 502,962
Foreign Government Obligations
Germany - 2 - 2
Non-Convertible Corporate Bonds and Notes - 68,807,003 - 68,807,003
Convertible Corporate Bonds and Notes - 217,227,844 - 217,227,844
Structured Securities - 105,686,400 - 105,686,400
Options Purchased 561,750 - - 561,750
Investment Company 8,577,107 - - 8,577,107
-------------- ------------- ------------ --------------
Total Investments, at Value 2,435,423,614 493,774,373 - 2,929,197,987
OTHER FINANCIAL INSTRUMENTS:
Futures margins 43,063 - - 43,063
-------------- ------------- ------------ --------------
Total Assets $2,435,466,677 $ 493,774,373 $ - $2,929,241,050
-------------- ------------- ------------ --------------
LIABILITIES TABLE
OTHER FINANCIAL INSTRUMENTS:
Appreciated options written, at value $ (10,820,105) $ - $ - $ (10,820,105)
Depreciated options written, at value (2,987,150) - - (2,987,150)
-------------- ------------- ------------ --------------
Total Liabilities $ (13,807,255) $ - $ - $ (13,807,255)
-------------- ------------- ------------ --------------
14 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Currency contracts and forwards, if any, are reported at their unrealized
appreciation/depreciation at measurement date, which represents the change in
the contract's value from trade date. Futures, if any, are reported at their
variation margin at measurement date, which represents the amount due to/from
the Fund at that date. All additional assets and liabilities included in the
above table are reported at their market value at measurement date.
See the accompanying Notes for further discussion of the methods used in
determining value of the Fund's investments, and a summary of changes to the
valuation methodologies, if any, during the reporting period.
FUTURES CONTRACTS AS OF JANUARY 31, 2012 ARE AS FOLLOWS:
NUMBER OF EXPIRATION UNREALIZED
CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE APPRECIATION
------------------------------------------------------ -------- --------- ---------- ---------- ------------
U.S. Long Bonds Buy 53 3/21/12 $7,708,188 $ 104,694
WRITTEN OPTIONS AS OF JANUARY 31, 2012 ARE AS FOLLOWS:
UNREALIZED
NUMBER OF EXERCISE EXPIRATION PREMIUMS APPRECIATION/
DESCRIPTION TYPE CONTRACTS PRICE DATE RECEIVED VALUE (DEPRECIATION)
-------------------------------------- ---- --------- --------- ---------- ----------- ------------ --------------
Abbott Laboratories Call 50 $ 55.000 2/21/12 $ 1,299 $ (1,150) $ 149
Assured Guaranty Ltd. Call 1,500 16.000 2/21/12 71,032 (49,500) 21,532
Assured Guaranty Ltd. Put 10,000 12.000 4/23/12 2,413,137 (310,000) 2,103,137
Assured Guaranty Ltd. Put 1,000 13.000 4/23/12 278,579 (48,000) 230,579
Assured Guaranty Ltd. Put 670 14.000 4/23/12 292,702 (49,580) 243,122
AT&T, Inc. Call 250 30.000 2/21/12 4,501 (3,000) 1,501
CenturyLink, Inc. Put 3,000 37.000 2/21/12 320,000 (270,000) 50,000
Chevron Corp. Put 2,000 100.000 2/21/12 221,947 (198,000) 23,947
CONSOL Energy, Inc. Put 2,500 40.000 4/23/12 1,874,903 (1,437,500) 437,403
CONSOL Energy, Inc. Put 1,000 35.000 2/21/12 102,043 (100,000) 2,043
Corning, Inc. Call 500 13.000 2/21/12 11,158 (13,500) (2,342)
Corning, Inc. Call 500 14.000 2/21/12 5,558 (2,500) 3,058
Corning, Inc. Put 1,000 13.000 2/21/12 43,475 (40,000) 3,475
CVS Caremark Corp. Call 975 44.000 2/21/12 51,000 (19,500) 31,500
CVS Caremark Corp. Call 500 45.000 2/21/12 12,987 (4,000) 8,987
Edison International, Inc. Call 500 42.500 2/21/12 21,988 (2,500) 19,488
Exxon Mobil Corp. Put 1,000 82.500 2/21/12 93,404 (92,000) 1,404
FirstEnergy Corp. Call 750 44.000 2/21/12 24,263 (3,000) 21,263
Foot Locker, Inc. Call 250 27.000 2/21/12 10,424 (6,250) 4,174
Ford Motor Co. Put 5,000 12.000 2/21/12 97,876 (80,000) 17,876
Freeport-McMoRan Copper & Gold, Inc.,
Cl. B Call 500 48.000 2/21/12 29,437 (36,000) (6,563)
General Electric Co. Call 500 20.000 2/21/12 5,788 (2,000) 3,788
General Mills, Inc. Call 150 41.000 3/19/12 4,296 (3,750) 546
Goldman Sachs Group, Inc. (The) Put 1,000 100.000 2/21/12 462,967 (45,000) 417,967
Halliburton Co. Put 3,000 33.000 2/21/12 228,012 (33,000) 195,012
Halliburton Co. Put 1,000 34.000 2/21/12 161,932 (27,000) 134,932
Intel Corp. Call 4,925 24.000 2/21/12 819,113 (1,231,250) (412,137)
Intel Corp. Call 3,750 24.000 3/19/12 779,893 (922,500) (142,607)
Intel Corp. Call 2,300 25.000 2/21/12 227,714 (331,200) (103,486)
Intel Corp. Call 300 26.000 2/21/12 13,917 (17,700) (3,783)
MDC Holdings, Inc. Put 250 19.000 2/21/12 10,744 (12,500) (1,756)
Merck & Co., Inc. Call 450 38.000 2/21/12 61,147 (34,650) 26,497
Microsoft Corp. Call 325 31.000 2/21/12 4,217 (975) 3,242
Mosaic Co. (The) Put 8,000 52.500 2/21/12 1,459,185 (400,000) 1,059,185
15 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
UNREALIZED
NUMBER OF EXERCISE EXPIRATION PREMIUMS APPRECIATION/
DESCRIPTION TYPE CONTRACTS PRICE DATE RECEIVED VALUE (DEPRECIATION)
------------------------------------- ---- --------- --------- ---------- ----------- ------------ --------------
Mosaic Co. (The) Put 7,585 65.000 3/19/12 8,104,984 (7,016,125) 1,088,859
Mosaic Co. (The) Put 750 55.000 2/21/12 275,976 (85,500) 190,476
Navistar International Corp. Put 2,000 40.000 2/21/12 333,445 (150,000) 183,445
Philip Morris International, Inc. Call 400 77.500 2/21/12 10,441 (12,000) (1,559)
PPL Corp. Call 100 28.000 3/19/12 2,997 (3,500) (503)
Procter & Gamble Co. (The) Put 375 62.500 2/21/12 19,232 (19,125) 107
Seagate Technology Call 1,500 22.000 2/21/12 45,552 (94,500) (48,948)
SunTrust Banks, Inc. Put 2,000 19.000 2/21/12 127,821 (38,000) 89,821
Teva Pharmaceutical Industries Ltd.,
Sponsored ADR Call 125 45.000 2/21/12 17,747 (12,500) 5,247
Walgreen Co. Call 500 34.000 2/21/12 36,488 (16,000) 20,488
WellPoint, Inc. Call 50 65.000 2/21/12 4,949 (5,000) (51)
Wyndham Worldwide Corp. Call 1,000 37.000 2/21/12 265,450 (307,500) (42,050)
Wyndham Worldwide Corp. Call 1,000 38.000 2/21/12 241,971 (220,000) 21,971
----------- ------------ --------------
$19,707,691 $(13,807,255) $ 5,900,436
=========== ============ ==============
NOTES TO STATEMENT OF INVESTMENTS
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for trading.
Each investment asset or liability of the Fund is assigned a level at
measurement date based on the significance and source of the inputs to its
valuation. Unadjusted quoted prices in active markets for identical securities
are classified as "Level 1," observable market inputs other than unadjusted
quoted prices are classified as "Level 2" and significant unobservable inputs,
including the Manager's judgment about the assumptions that a market participant
would use in pricing an asset or liability, are classified as "Level 3." The
inputs used for valuing securities are not necessarily an indication of the
risks associated with investing in those securities. A table summarizing the
Fund's investments under these levels of classification is included following
the Statement of Investments.
Securities are valued using unadjusted quoted market prices, when available, as
supplied primarily by portfolio pricing services approved by the Board of
Directors or dealers.
Securities traded on a registered U.S. securities exchange are valued based on
the last sale price of the security reported on the principal exchange on which
it is traded, prior to the time when the Fund's assets are valued. Securities
whose principal exchange is NASDAQ(R) are valued based on the official closing
prices reported by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the current day's closing "bid"
and "asked" prices, and if not, at the current day's closing bid price. A
foreign security traded on a foreign exchange is valued based on the last sale
price on the principal exchange on which the security is traded, as identified
by the portfolio pricing service used by the Manager, prior to the time when the
Fund's assets are valued. In the absence of a sale, the security is valued at
the most recent official closing price on the principal exchange on which it is
traded.
Shares of a registered investment company that are not traded on an exchange are
valued at that investment company's net asset value per share.
U.S. domestic and international debt instruments (including corporate,
government, municipal, mortgage-backed, collateralized mortgage obligations and
asset-backed securities) and "money market-type" debt instruments with a
remaining maturity in excess of sixty days are valued at the mean between the
"bid" and "asked" prices utilizing price quotations obtained from independent
pricing services or broker-dealers. Such prices are typically determined based
upon information obtained from market participants including reported trade
data, broker-dealer price quotations and inputs such as benchmark yields and
issuer spreads from identical or similar securities.
Structured securities are valued utilizing price quotations obtained from
broker-dealers or independent pricing services. Values are determined based upon
market inputs which typically include the price of underlying financial
instruments, stock market indices, foreign currencies, interest rate spreads,
commodities, or the occurrence of other specific events.
16 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
"Money market-type" debt instruments with remaining maturities of sixty days or
less are valued at cost adjusted by the amortization of discount or premium to
maturity (amortized cost), which approximates market value.
In the absence of a current price quotation obtained from an independent pricing
service or broker-dealer, including for securities whose values have been
materially affected by what the Manager identifies as a significant event
occurring before the Fund's assets are valued but after the close of the
securities' respective exchanges, the Manager, acting through its internal
valuation committee, in good faith determines the fair valuation of that asset
using consistently applied procedures under the supervision of the Board of
Directors (which reviews those fair valuations by the Manager). Those procedures
include certain standardized methodologies to fair value securities. Such
methodologies include, but are not limited to, pricing securities initially at
cost and subsequently adjusting the value based on: changes in company specific
fundamentals, changes in an appropriate securities index, or changes in the
value of similar securities which may be adjusted for any discounts related to
resale restrictions. When possible, such methodologies use observable market
inputs such as unadjusted quoted prices of similar securities, observable
interest rates, currency rates and yield curves. The methodologies used for
valuing securities are not necessarily an indication of the risks associated
with investing in those securities.
There have been no significant changes to the fair valuation methodologies of
the Fund during the period.
STRUCTURED SECURITIES. The Fund invests in structured securities whose market
values, interest rates and/or redemption prices are linked to the performance of
underlying foreign currencies, interest rate spreads, stock market indices,
prices of individual securities, commodities or other financial instruments or
the occurrence of other specific events. The structured securities are often
leveraged, increasing the volatility of each note's market value relative to the
change in the underlying linked financial element or event. Fluctuations in
value of these securities are recorded as unrealized gains and losses in the
accompanying Statement of Operations in the annual and semiannual reports. The
Fund records a realized gain or loss when a structured security is sold or
matures.
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is
permitted to invest daily available cash balances in an affiliated money market
fund. The Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. When applicable,
the Fund's investment in IMMF is included in the Statement of Investments.
Shares of IMMF are valued at their net asset value per share. As a shareholder,
the Fund is subject to its proportional share of IMMF's Class E expenses,
including its management fee. The Manager will waive fees and/or reimburse Fund
expenses in an amount equal to the indirect management fees incurred through the
Fund's investment in IMMF.
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of the
Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for
trading. Foreign exchange rates may be valued primarily using a reliable bank,
dealer or service authorized by the Board of Directors.
RISK EXPOSURES AND THE USE OF DERIVATIVE INSTRUMENTS
The Fund's investment objectives not only permit the Fund to purchase investment
securities, they also allow the Fund to enter into various types of derivatives
contracts, including, but not limited to, futures contracts, forward foreign
currency exchange contracts, credit default swaps, interest rate swaps, total
return swaps, and purchased and written options. In doing so, the Fund will
employ strategies in differing combinations to permit it to increase, decrease,
or change the level or types of exposure to market risk factors. Central to
those strategies are features inherent to derivatives that make them more
attractive for this purpose than equity and debt securities: they require little
or no initial cash investment, they can focus exposure on only certain selected
risk factors, and they may not require the ultimate receipt or delivery of the
underlying security (or securities) to the contract. This may allow the Fund to
pursue its objectives more quickly and efficiently than if it were to make
direct purchases or sales of securities capable of effecting a similar response
to market factors.
MARKET RISK FACTORS. In accordance with its investment objectives, the Fund may
use derivatives to increase or decrease its exposure to one or more of the
following market risk factors:
17 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
COMMODITY RISK. Commodity risk relates to the change in value of
commodities or commodity indexes as they relate to increases or decreases
in the commodities market. Commodities are physical assets that have
tangible properties. Examples of these types of assets are crude oil,
heating oil, metals, livestock, and agricultural products.
CREDIT RISK. Credit risk relates to the ability of the issuer to meet
interest and principal payments, or both, as they come due. In general,
lower-grade, higher-yield bonds are subject to credit risk to a greater
extent than lower-yield, higher-quality bonds.
EQUITY RISK. Equity risk relates to the change in value of equity
securities as they relate to increases or decreases in the general market.
FOREIGN EXCHANGE RATE RISK. Foreign exchange rate risk relates to the
change in the U.S. dollar value of a security held that is denominated in a
foreign currency. The U.S. dollar value of a foreign currency denominated
security will decrease as the dollar appreciates against the currency,
while the U.S. dollar value will increase as the dollar depreciates against
the currency.
INTEREST RATE RISK. Interest rate risk refers to the fluctuations in value
of fixed-income securities resulting from the inverse relationship between
price and yield. For example, an increase in general interest rates will
tend to reduce the market value of already issued fixed-income investments,
and a decline in general interest rates will tend to increase their value.
In addition, debt securities with longer maturities, which tend to have
higher yields, are subject to potentially greater fluctuations in value
from changes in interest rates than obligations with shorter maturities.
VOLATILITY RISK. Volatility risk refers to the magnitude of the movement,
but not the direction of the movement, in a financial instrument's price
over a defined time period. Large increases or decreases in a financial
instrument's price over a relative time period typically indicate greater
volatility risk, while small increases or decreases in its price typically
indicate lower volatility risk.
The Fund's actual exposures to these market risk factors during the period are
discussed in further detail, by derivative type, below.
RISKS OF INVESTING IN DERIVATIVES. The Fund's use of derivatives can result in
losses due to unanticipated changes in the market risk factors and the overall
market. In instances where the Fund is using derivatives to decrease, or hedge,
exposures to market risk factors for securities held by the Fund, there are also
risks that those derivatives may not perform as expected resulting in losses for
the combined or hedged positions.
Derivatives may have little or no initial cash investment relative to their
market value exposure and therefore can produce significant gains or losses in
excess of their cost. This use of embedded leverage allows the Fund to increase
its market value exposure relative to its net assets and can substantially
increase the volatility of the Fund's performance.
Additional associated risks from investing in derivatives also exist and
potentially could have significant effects on the valuation of the derivative
and the Fund. Typically, the associated risks are not the risks that the Fund
is attempting to increase or decrease exposure to, per its investment
objectives, but are the additional risks from investing in derivatives.
Examples of these associated risks are liquidity risk, which is the risk that
the Fund will not be able to sell the derivative in the open market in a timely
manner, and counterparty credit risk, which is the risk that the counterparty
will not fulfill its obligation to the Fund. Associated risks can be different
for each type of derivative and are discussed by each derivative type in the
notes that follow.
COUNTERPARTY CREDIT RISK. Certain derivative positions are subject to
counterparty credit risk, which is the risk that the counterparty will not
fulfill its obligation to the Fund. The Fund's derivative counterparties
are financial institutions who are subject to market conditions that may
weaken their financial position. The Fund intends to enter into financial
transactions with counterparties that the Manager believes to be
creditworthy at the time of the transaction.
CREDIT RELATED CONTINGENT FEATURES. The Fund's agreements with derivative
counterparties have several credit related contingent features that if
triggered would allow its derivatives counterparties to close out and
demand payment or additional collateral to cover their exposure from the
Fund. Credit related contingent features are established between the Fund
and its derivatives counterparties to reduce the risk that the Fund will
not fulfill its payment obligations to its counterparties. These triggering
features include, but are not limited to, a percentage decrease in the
Fund's net assets and or a percentage decrease in the Fund's Net Asset
Value or NAV. The contingent features are established within the Fund's
International Swap and Derivatives Association, Inc. master agreements
which govern certain positions in swaps, over-the-counter options and
swaptions, and forward currency exchange contracts for each individual
counterparty.
18 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
financial instrument, or currency, at a negotiated price on a stipulated future
date. The Fund may buy and sell futures contracts and may also buy or write put
or call options on these futures contracts.
Futures contracts traded on a commodities or futures exchange will be valued at
the final settlement price or official closing price on the principal exchange
as reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when the Fund's assets are valued.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (initial margin) in an amount equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses.
Futures contracts are reported on a schedule following the Statement of
Investments. Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. Cash held by the broker to cover initial margin requirements on
open futures contracts and the receivable and/or payable for the daily mark to
market for the variation margin are noted in the Statement of Assets and
Liabilities in the annual and semiannual reports. The net change in unrealized
appreciation and depreciation is reported in the Statement of Operations in the
annual and semiannual reports. Realized gains (losses) are reported in the
Statement of Operations in the annual and semiannual reports at the closing or
expiration of futures contracts.
The Fund has purchased futures contracts on various bonds and notes to increase
exposure to interest rate risk.
The Fund has sold futures contracts on various bonds and notes to decrease
exposure to interest rate risk.
During the period ended January 31, 2012, the Fund had an ending monthly average
market value of $26,786,758 and $1,593,922 on futures contracts purchased and
sold, respectively.
Additional associated risks of entering into futures contracts (and related
options) include the possibility that there may be an illiquid market where the
Fund is unable to liquidate the contract or enter into an offsetting position
and, if used for hedging purposes, the risk that the price of the contract will
correlate imperfectly with the prices of the Fund's securities.
OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and call options.
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. The difference between the premium
received or paid, and market value of the option, is recorded as unrealized
appreciation or depreciation. The net change in unrealized appreciation or
depreciation is reported in the Statement of Operations in the annual and
semiannual reports. When an option is exercised, the cost of the security
purchased or the proceeds of the security sale are adjusted by the amount of
premium received or paid. Upon the expiration or closing of the option
transaction, a gain or loss is reported in the Statement of Operations in the
annual and semiannual reports.
The Fund has purchased put options on individual equity securities and/or equity
indexes to decrease exposure to equity risk. A purchased put option becomes
more valuable as the price of the underlying financial instrument depreciates
relative to the strike price.
During the period ended January 31, 2012, the Fund had an ending monthly average
market value of $4,139,146 on purchased put options.
19 | Oppenheimer Equity Income Fund, Inc.
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS January 31, 2012 (Unaudited)
Options written, if any, are reported in a schedule following the Statement of
Investments and as a liability in the Statement of Assets and Liabilities in the
annual and semiannual reports. Securities held in collateralized accounts to
cover potential obligations with respect to outstanding written options are
noted in the Statement of Investments.
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 that there may be an illiquid
market where the Fund is unable to close the contract.
The Fund has written put options on individual equity securities and/or equity
indexes to increase exposure to equity risk. A written put option becomes more
valuable as the price of the underlying financial instrument appreciates
relative to the strike price.
The Fund has written call options on individual equity securities and/or equity
indexes to decrease exposure to equity risk. A written call option becomes more
valuable as the price of the underlying financial instrument depreciates
relative to the strike price.
During the period ended January 31, 2012, the Fund had an ending monthly average
market value of $2,130,286 and $22,950,873 on written call options and written
put options, respectively.
Additional associated risks to the Fund include counterparty credit risk for
over-the-counter options and liquidity risk.
Written option activity for the period ended January 31, 2012 was as follows:
CALL OPTIONS PUT OPTIONS
----------------------- ------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
--------- ---------- --------- -----------
Options outstanding as of
October 31, 2011 18,775 $1,648,925 97,177 $48,792,019
Options written 66,950 6,818,712 153,455 47,897,830
Options closed or expired (57,900) (5,412,948) (197,058) (79,470,457)
Options exercised (4,175) (269,362) (444) (297,028)
-------- ---------- -------- -----------
Options outstanding as of
January 31, 2012 23,650 $2,785,327 53,130 $16,922,364
======== ========== ======== ===========
RESTRICTED SECURITIES
As of January 31, 2012, investments in securities included issues that are
restricted. A restricted security may have a contractual restriction on its
resale and is valued under methods approved by the Board of Directors as
reflecting fair value. Securities that are restricted are marked with an
applicable footnote on the Statement of Investments. Restricted securities are
reported on a schedule following the Statement of Investments.
FEDERAL TAXES. The approximate aggregate cost of securities and other
investments and the composition of unrealized appreciation and depreciation of
securities and other investments for federal income tax purposes as of January
31, 2012 are noted below. The primary difference between book and tax
appreciation or depreciation of securities and other investments, if applicable,
is attributable to the tax deferral of losses.
Federal tax cost of securities $2,812,070,379
Federal tax cost of other investments (12,104,197)
--------------
Total federal tax cost $2,799,966,182
==============
Gross unrealized appreciation $ 259,719,844
Gross unrealized depreciation (136,587,106)
--------------
Net unrealized appreciation $ 123,132,738
==============
20 | Oppenheimer Equity Income Fund, Inc.
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-3(c)) as of 1/31/2012, the registrant's
principal executive officer and principal financial officer found the
registrant's disclosure controls and procedures to provide reasonable
assurances that information required to be disclosed by the registrant
in the reports that it files under the Securities Exchange Act of 1934
(a) is accumulated and communicated to the registrant's management,
including its principal executive officer and principal financial
officer, to allow timely decisions regarding required disclosure, and
(b) is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms adopted by the U.S.
Securities and Exchange Commission.
(b) There have been no significant changes in the registrant's internal
controls over financial reporting that occurred during the
registrant's last fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 3. EXHIBITS.
Exhibits attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Equity Income Fund, Inc.
By: /s/ William F. Glavin, Jr.
---------------------------
William F. Glavin, Jr.
Principal Executive Officer
Date: 3/13/2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ William F. Glavin, Jr.
---------------------------
William F. Glavin, Jr.
Principal Executive Officer
Date: 3/13/2012
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 3/13/2012
EX-99.CERT
2
g60215exv99wcert.txt
EX-99.CERT
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, William F. Glavin, Jr., certify that:
1. I have reviewed this report on Form N-Q of Oppenheimer Equity Income Fund,
Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is
filed;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
Directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
/s/ William F. Glavin, Jr.
---------------------------
William F. Glavin, Jr.
Principal Executive Officer
Date: 3/13/2012
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Brian W. Wixted, certify that:
1. I have reviewed this report on Form N-Q of Oppenheimer Equity Income Fund,
Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is
filed;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
Directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
/s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 3/13/2012