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