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)
Registrants telephone number, including area code: (303) 768-3200
Date of fiscal year end: October 31
Date of reporting period: 7/31/2012
Item 1. | Schedule of Investments. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Shares | Value | |||||||
Common Stocks81.7% |
| |||||||
Consumer Discretionary11.2% |
| |||||||
Auto Components1.3% |
| |||||||
Lear Corp. |
1,132,500 | $ | 40,260,375 | |||||
Automobiles1.7% |
||||||||
Ford Motor Co. |
5,700,000 | 52,668,000 | ||||||
Hotels, Restaurants & Leisure0.1% |
||||||||
McDonalds Corp.1 |
27,500 | 2,457,400 | ||||||
Household Durables0.5% |
||||||||
MDC Holdings, Inc.1 |
525,000 | 16,726,500 | ||||||
Media3.3% |
||||||||
Cablevision Systems Corp. New York Group, Cl. A |
1,550,000 | 23,777,000 | ||||||
Cinemark Holdings, Inc.1 |
500,000 | 11,690,000 | ||||||
Comcast Corp., Cl. A Special, Non-Vtg. |
1,000,000 | 31,930,000 | ||||||
Regal Entertainment Group |
692,500 | 9,570,350 | ||||||
Time Warner Cable, Inc. |
325,000 | 27,602,250 | ||||||
|
|
|||||||
104,569,600 | ||||||||
Multiline Retail3.4% |
||||||||
Kohls Corp.1 |
895,000 | 44,499,400 | ||||||
Target Corp. |
1,000,000 | 60,650,000 | ||||||
|
|
|||||||
105,149,400 | ||||||||
Specialty Retail0.9% |
||||||||
Foot Locker, Inc.1 |
900,000 | 29,718,000 | ||||||
Consumer Staples4.9% |
||||||||
Beverages0.5% |
||||||||
PepsiCo, Inc. |
205,000 | 14,909,650 | ||||||
Food & Staples Retailing2.7% |
||||||||
CVS Caremark Corp.1 |
675,000 | 30,543,750 | ||||||
Kroger Co. (The) |
1,075,000 | 23,832,750 | ||||||
Safeway, Inc. |
400,000 | 6,220,000 | ||||||
Walgreen Co. |
717,500 | 26,088,300 | ||||||
|
|
|||||||
86,684,800 | ||||||||
Food Products0.7% |
||||||||
Archer-Daniels-Midland Co. |
450,000 | 11,740,500 | ||||||
General Mills, Inc. |
220,000 | 8,514,000 | ||||||
Kraft Foods, Inc., Cl. A1 |
35,000 | 1,389,850 | ||||||
|
|
|||||||
21,644,350 | ||||||||
Household Products0.5% |
||||||||
Energizer Holdings, Inc.1,2 |
132,500 | 10,304,525 | ||||||
Procter & Gamble Co. (The)1 |
86,250 | 5,566,575 | ||||||
|
|
|||||||
15,871,100 | ||||||||
Tobacco0.5% |
||||||||
Philip Morris International, Inc.1 |
175,000 | 16,002,000 | ||||||
Energy11.0% |
||||||||
Energy Equipment & Services1.9% |
||||||||
Ensco plc, Cl. A |
587,500 | 31,918,875 | ||||||
Halliburton Co. |
850,000 | 28,160,500 | ||||||
|
|
|||||||
60,079,375 |
1 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Shares | Value | |||||||
Oil, Gas & Consumable Fuels9.1% |
||||||||
Apache Corp. |
190,000 | $ | 16,362,800 | |||||
BP plc, ADR |
890,000 | 35,511,000 | ||||||
Chevron Corp.1 |
785,000 | 86,020,300 | ||||||
CONSOL Energy, Inc. |
500,000 | 14,490,000 | ||||||
Exxon Mobil Corp.1 |
535,000 | 46,464,750 | ||||||
Kinder Morgan Management LLC2 |
1 | 41 | ||||||
Kinder Morgan, Inc. |
1,067,500 | 38,227,175 | ||||||
Royal Dutch Shell plc, ADR |
525,000 | 35,805,000 | ||||||
Williams Cos., Inc. (The) |
415,000 | 13,192,850 | ||||||
|
|
|||||||
286,073,916 | ||||||||
Financials17.5% |
||||||||
Capital Markets2.1% |
||||||||
Goldman Sachs Group, Inc. (The) |
440,000 | 44,396,000 | ||||||
Morgan Stanley |
1,537,500 | 21,002,250 | ||||||
|
|
|||||||
65,398,250 | ||||||||
Commercial Banks3.0% |
||||||||
CIT Group, Inc.1,2 |
250,000 | 9,130,000 | ||||||
SunTrust Banks, Inc. |
560,000 | 13,244,000 | ||||||
Wells Fargo & Co. |
2,100,000 | 71,001,000 | ||||||
|
|
|||||||
93,375,000 | ||||||||
Diversified Financial Services5.1% |
||||||||
Citigroup, Inc. |
550,000 | 14,921,500 | ||||||
JPMorgan Chase & Co.1 |
3,250,000 | 117,000,000 | ||||||
KKR Financial Holdings LLC |
3,000,000 | 27,360,000 | ||||||
|
|
|||||||
159,281,500 | ||||||||
Insurance5.1% |
||||||||
Assured Guaranty Ltd. |
2,100,000 | 25,158,000 | ||||||
Everest Re Group Ltd.1 |
500,000 | 50,850,000 | ||||||
MetLife, Inc. |
1,887,500 | 58,078,375 | ||||||
XL Group plc |
1,350,000 | 27,877,500 | ||||||
|
|
|||||||
161,963,875 | ||||||||
Real Estate Investment Trusts2.2% |
||||||||
Apollo Commercial Real Estate Finance, Inc.1 |
995,000 | 16,616,500 | ||||||
Ashford Hospitality Trust |
1,325,000 | 10,109,750 | ||||||
CYS Investments, Inc. |
1,125,000 | 16,267,500 | ||||||
Starwood Property Trust, Inc. |
1,132,500 | 25,209,450 | ||||||
|
|
|||||||
68,203,200 | ||||||||
Health Care9.8% |
||||||||
Biotechnology0.3% |
||||||||
PDL BioPharma, Inc. |
1,175,000 | 7,978,250 | ||||||
Health Care Equipment & Supplies0.8% |
||||||||
Baxter International, Inc. |
13,500 | 789,885 | ||||||
Medtronic, Inc. |
655,000 | 25,820,100 | ||||||
|
|
|||||||
26,609,985 | ||||||||
Health Care Providers & Services0.5% |
||||||||
UnitedHealth Group, Inc. |
105,000 | 5,364,450 |
2 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Shares | Value | |||||||
Health Care Providers & Services Continued |
||||||||
WellPoint, Inc. |
175,000 | $ | 9,325,750 | |||||
|
|
|||||||
14,690,200 | ||||||||
Pharmaceuticals8.2% |
||||||||
GlaxoSmithKline plc, ADR |
595,000 | 27,370,000 | ||||||
Johnson & Johnson |
350,000 | 24,227,000 | ||||||
Merck & Co., Inc.1 |
2,000,000 | 88,340,000 | ||||||
Pfizer, Inc. |
3,250,000 | 78,130,000 | ||||||
Teva Pharmaceutical Industries Ltd., Sponsored ADR1 |
975,000 | 39,867,750 | ||||||
|
|
|||||||
257,934,750 | ||||||||
Industrials5.5% |
||||||||
Aerospace & Defense1.2% |
||||||||
General Dynamics Corp. |
512,500 | 32,513,000 | ||||||
Honeywell International, Inc. |
115,000 | 6,675,750 | ||||||
|
|
|||||||
39,188,750 | ||||||||
Commercial Services & Supplies0.5% |
||||||||
Pitney Bowes, Inc. |
290,000 | 3,874,400 | ||||||
R.R. Donnelley & Sons Co. |
1,000,000 | 12,120,000 | ||||||
|
|
|||||||
15,994,400 | ||||||||
Industrial Conglomerates2.0% |
||||||||
General Electric Co.1 |
1,750,000 | 36,312,500 | ||||||
Tyco International Ltd. |
475,000 | 26,096,500 | ||||||
|
|
|||||||
62,409,000 | ||||||||
Machinery0.8% |
||||||||
Ingersoll-Rand plc1 |
500,000 | 21,205,000 | ||||||
Navistar International Corp.2 |
185,000 | 4,551,000 | ||||||
|
|
|||||||
25,756,000 | ||||||||
Marine0.9% |
||||||||
Box Ships, Inc.3 |
1,365,000 | 8,695,050 | ||||||
Costamare, Inc. |
710,000 | 9,251,300 | ||||||
Diana Containerships, Inc.3 |
1,505,000 | 9,225,650 | ||||||
|
|
|||||||
27,172,000 | ||||||||
Trading Companies & Distributors0.1% |
||||||||
Aircastle Ltd.1 |
280,000 | 3,312,400 | ||||||
Information Technology5.9% |
||||||||
Communications Equipment1.4% |
||||||||
Cisco Systems, Inc. |
562,000 | 8,963,900 | ||||||
QUALCOMM, Inc. |
600,000 | 35,808,000 | ||||||
|
|
|||||||
44,771,900 | ||||||||
Computers & Peripherals1.6% |
||||||||
Apple, Inc.1,2 |
20,750 | 12,673,270 | ||||||
Hewlett-Packard Co. |
191,600 | 3,494,784 | ||||||
Seagate Technology1 |
1,125,000 | 33,772,500 | ||||||
|
|
|||||||
49,940,554 | ||||||||
Electronic Equipment & Instruments0.4% |
||||||||
Corning, Inc. |
1,050,000 | 11,980,500 |
3 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Shares | Value | |||||||
Semiconductors & Semiconductor Equipment0.0% |
||||||||
Intel Corp. |
50,000 | $ | 1,285,000 | |||||
Software2.5% |
||||||||
Microsoft Corp. |
2,615,000 | 77,064,050 | ||||||
Materials3.9% |
||||||||
Chemicals2.0% |
||||||||
Celanese Corp., Series A |
436,509 | 16,644,088 | ||||||
LyondellBasell Industries NV, Cl. A |
310,000 | 13,804,300 | ||||||
Mosaic Co. (The) |
575,000 | 33,413,250 | ||||||
|
|
|||||||
63,861,638 | ||||||||
Containers & Packaging0.1% |
||||||||
Rock-Tenn Co., Cl. A |
33,500 | 1,950,370 | ||||||
Metals & Mining0.4% |
||||||||
Allegheny Technologies, Inc. |
181,500 | 5,450,445 | ||||||
Freeport-McMoRan Copper & Gold, Inc., Cl. B |
235,250 | 7,920,868 | ||||||
|
|
|||||||
13,371,313 | ||||||||
Paper & Forest Products1.4% |
||||||||
International Paper Co. |
1,350,000 | 44,293,500 | ||||||
Telecommunication Services6.9% |
||||||||
Diversified Telecommunication Services6.9% |
||||||||
AT&T, Inc.1 |
1,675,000 | 63,516,000 | ||||||
CenturyLink, Inc.1 |
1,860,000 | 77,264,400 | ||||||
Consolidated Communications Holdings, Inc.1 |
1,450,000 | 22,997,000 | ||||||
Frontier Communications Corp. |
11,600,000 | 45,472,000 | ||||||
Windstream Corp. |
637,500 | 6,349,500 | ||||||
|
|
|||||||
215,598,900 | ||||||||
Utilities5.1% |
||||||||
Electric Utilities4.1% |
||||||||
American Electric Power Co., Inc. |
550,000 | 23,232,000 | ||||||
Edison International, Inc. |
775,000 | 35,789,500 | ||||||
Entergy Corp.1 |
292,500 | 21,255,975 | ||||||
Exelon Corp. |
565,000 | 22,102,800 | ||||||
FirstEnergy Corp. |
280,000 | 14,061,600 | ||||||
PPL Corp. |
410,000 | 11,849,000 | ||||||
|
|
|||||||
128,290,875 | ||||||||
Energy Traders0.4% |
||||||||
GenOn Energy, Inc.2 |
1,875,000 | 4,462,500 | ||||||
NRG Energy, Inc. |
442,500 | 8,770,350 | ||||||
|
|
|||||||
13,232,850 | ||||||||
Multi-Utilities0.6% |
||||||||
National Grid plc, Sponsored ADR |
325,000 | 16,867,500 | ||||||
|
|
|||||||
Total Common Stocks (Cost $2,382,257,588) |
2,564,590,976 | |||||||
Preferred Stocks6.3% |
||||||||
Citigroup, Inc., 7.50% Cv.2 |
1,042,500 | 89,488,200 | ||||||
General Motors Co., 4.75% Cv., Series B, Non-Vtg.2 |
1,775,000 | 59,409,250 | ||||||
MetLife, Inc., 5% Cv., Non-Vtg.2 |
362,500 | 22,725,125 | ||||||
Molycorp, Inc., 5.50% Cv., Series A, Non-Vtg.2 |
67,500 | 3,213,675 |
4 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Shares | Value | |||||||
Preferred Stocks Continued |
||||||||
PPL Corp., 8.75% Cv.2 |
190,000 | $ | 10,233,400 | |||||
Synovus Financial Corp., 8.25% Cv.2 |
685,000 | 12,336,850 | ||||||
|
|
|||||||
Total Preferred Stocks (Cost $233,771,722) |
197,406,500 | |||||||
Units | ||||||||
Rights, Warrants and Certificates0.1% |
||||||||
Kinder Morgan, Inc. Wts., Strike Price $40, Exp. 2/15/172 (Cost $2,577,600) |
1,440,000 | 4,248,000 | ||||||
Principal Amount |
||||||||
Mortgage-Backed Obligations0.3% |
||||||||
Banc of America Funding 2007-C Trust, Mtg. Pass-Through Certificates, Series 2007-C, Cl. 1A4, 5.53%, 5/1/364 |
$ | 190,000 | 171,918 | |||||
Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2004-E, Cl. 2A6, 3.105%, 6/1/344 |
313,142 | 308,628 | ||||||
CHL Mortgage Pass-Through Trust 2005-29, Mtg. Pass-Through Certificates, Series 2005-29, Cl. A1, 5.75%, 12/1/35 |
157,782 | 141,325 | ||||||
CHL Mortgage Pass-Through Trust 2006-6, Mtg. Pass-Through Certificates, Series 2006-6, Cl. A3, 6%, 4/1/36 |
273,833 | 253,710 | ||||||
CHL Mortgage Pass-Through Trust 2007-J3, Mtg. Pass-Through Certificates, Series 2007-J3, Cl. A9, 6%, 7/1/37 |
132,127 | 99,051 | ||||||
Countrywide Alternative Loan Trust 2005-29CB, Mtg. Pass-Through Certificates, Series 2005-29CB, Cl. A4, 5%, 7/1/35 |
1,533,072 | 1,133,797 | ||||||
Countrywide Alternative Loan Trust 2007-19, Mtg. Pass-Through Certificates, Series 2007-19, Cl. 1A34, 6%, 8/1/37 |
429,487 | 325,896 | ||||||
Countrywide Home Loans, Asset-Backed Certificates, Series 2002-4, Cl. A1, 0.986%, 2/25/334 |
4,798 | 4,714 | ||||||
Deutsche Alt-B Securities, Inc., Mtg. Pass-Through Certificates, Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36 |
435,966 | 263,910 | ||||||
Federal Home Loan Mortgage Corp.: |
||||||||
8%, 4/1/16 |
10,395 | 11,202 | ||||||
9%, 8/1/22-5/1/25 |
4,444 | 5,148 | ||||||
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Series 151, Cl. F, 9%, 5/15/21 |
14,128 | 16,289 | ||||||
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: |
||||||||
Series 183, Cl. IO, 14.858%, 4/1/275 |
195,185 | 43,770 | ||||||
Series 192, Cl. IO, 13.226%, 2/1/285 |
57,522 | 11,475 | ||||||
Series 2130, Cl. SC, 50.425%, 3/15/295 |
168,454 | 37,418 | ||||||
Series 243, Cl. 6, 0.527%, 12/15/325 |
231,829 | 48,313 | ||||||
Series 2531, Cl. ST, 99.999%, 2/15/305 |
20,119 | 132 | ||||||
Series 2639, Cl. SA, 99.999%, 7/15/225 |
313,541 | 19,848 | ||||||
Series 2796, Cl. SD, 96.086%, 7/15/265 |
250,043 | 53,314 | ||||||
Series 2802, Cl. AS, 83.611%, 4/15/335 |
157,950 | 8,793 | ||||||
Series 3110, Cl. SL, 99.999%, 2/15/265 |
212,617 | 32,999 | ||||||
Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 176, Cl. PO, 3.895%, 6/1/266 |
54,507 | 47,360 |
5 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Principal Amount |
Value | |||||||
Federal National Mortgage Assn.: |
||||||||
7.50%, 1/1/33 |
$ | 189,651 | $ | 231,723 | ||||
8.50%, 7/1/32 |
7,249 | 9,051 | ||||||
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: |
||||||||
Trust 2001-63, Cl. SD, 34.148%, 12/18/315 |
6,505 | 1,274 | ||||||
Trust 2001-65, Cl. S, 33.023%, 11/25/315 |
461,914 | 90,876 | ||||||
Trust 2001-68, Cl. SC, 34.343%, 11/25/315 |
4,202 | 834 | ||||||
Trust 2001-81, Cl. S, 27.072%, 1/25/325 |
110,178 | 24,295 | ||||||
Trust 2002-47, Cl. NS, 34.659%, 4/25/325 |
248,078 | 52,340 | ||||||
Trust 2002-51, Cl. S, 34.91%, 8/25/325 |
227,791 | 48,062 | ||||||
Trust 2002-52, Cl. SD, 41.427%, 9/25/325 |
294,767 | 66,425 | ||||||
Trust 2002-7, Cl. SK, 31.957%, 1/25/325 |
7,921 | 1,394 | ||||||
Trust 2002-77, Cl. BS, 25.935%, 12/18/325 |
15,053 | 2,817 | ||||||
Trust 2002-77, Cl. SH, 41.364%, 12/18/325 |
165,306 | 35,678 | ||||||
Trust 2002-9, Cl. MS, 31.447%, 3/25/325 |
162,917 | 35,063 | ||||||
Trust 2002-90, Cl. SN, 33.775%, 8/25/325 |
12,947 | 1,863 | ||||||
Trust 2002-90, Cl. SY, 39.796%, 9/25/325 |
6,585 | 978 | ||||||
Trust 2003-4, Cl. S, 32.951%, 2/25/335 |
273,510 | 50,901 | ||||||
Trust 2003-46, Cl. IH, 0%, 6/1/235,7 |
1,668,244 | 211,002 | ||||||
Trust 2003-89, Cl. XS, 99.999%, 11/25/325 |
98,203 | 2,103 | ||||||
Trust 2004-54, Cl. DS, 49.602%, 11/25/305 |
265,275 | 58,841 | ||||||
Trust 2005-14, Cl. SE, 45.95%, 3/25/355 |
340,755 | 54,424 | ||||||
Trust 2005-93, Cl. SI, 21.431%, 10/25/355 |
225,912 | 33,749 | ||||||
Trust 2008-67, Cl. KS, 58.142%, 8/25/345 |
636,338 | 46,758 | ||||||
Trust 214, Cl. 2, 38.777%, 3/1/235 |
336,172 | 72,110 | ||||||
Trust 222, Cl. 2, 24.40%, 6/1/235 |
432,479 | 83,395 | ||||||
Trust 247, Cl. 2, 46.712%, 10/1/235 |
105,712 | 23,814 | ||||||
Trust 252, Cl. 2, 37.445%, 11/1/235 |
360,767 | 80,308 | ||||||
Trust 319, Cl. 2, 4.423%, 2/1/325 |
116,783 | 22,026 | ||||||
Trust 320, Cl. 2, 10.525%, 4/1/325 |
576,242 | 129,444 | ||||||
Trust 331, Cl. 9, 13.003%, 2/1/335 |
46,426 | 8,371 | ||||||
Trust 334, Cl. 17, 20.538%, 2/1/335 |
229,363 | 42,091 | ||||||
Trust 339, Cl. 12, 4.637%, 7/1/335 |
473,962 | 92,949 | ||||||
Trust 343, Cl. 13, 6.708%, 9/1/335 |
442,060 | 64,010 | ||||||
Trust 343, Cl. 18, 1.873%, 5/1/345 |
68,992 | 9,513 | ||||||
Trust 345, Cl. 9, 76.981%, 1/1/345 |
466,516 | 56,984 | ||||||
Trust 351, Cl. 10, 4.415%, 4/1/345 |
113,965 | 16,425 | ||||||
Trust 351, Cl. 8, 2.079%, 4/1/345 |
235,869 | 33,335 | ||||||
Trust 356, Cl. 10, 18.516%, 6/1/355 |
189,156 | 25,395 | ||||||
Trust 356, Cl. 12, 24.618%, 2/1/355 |
93,514 | 12,585 | ||||||
Trust 362, Cl. 13, 5.999%, 8/1/355 |
1,078,447 | 172,950 | ||||||
Trust 364, Cl. 16, 15.999%, 9/1/355 |
439,697 | 65,826 | ||||||
Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security, Trust 1993-184, Cl. M, 4.343%, 9/25/236 |
168,311 | 155,177 |
6 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Principal Amount |
Value | |||||||
First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37 |
$ | 472,118 | $ | 306,128 | ||||
Government National Mortgage Assn.: |
||||||||
1.625%, 4/8/264 |
12,430 | 12,915 | ||||||
7%, 1/29/24-4/29/26 |
86,288 | 102,580 | ||||||
7.50%, 5/29/27 |
356,736 | 430,340 | ||||||
8%, 5/30/17 |
11,752 | 13,061 | ||||||
8.50%, 8/1/17-12/15/17 |
6,021 | 6,463 | ||||||
Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: |
||||||||
Series 2001-21, Cl. SB, 88.025%, 1/16/275 |
376,102 | 78,463 | ||||||
Series 2002-15, Cl. SM, 79.529%, 2/16/325 |
304,715 | 68,688 | ||||||
Series 2004-11, Cl. SM, 70.635%, 1/17/305 |
277,326 | 67,051 | ||||||
IndyMac Index Mortgage Loan Trust 2005-AR23, Mtg. Pass-Through Certificates, Series 2005-AR23, Cl. 6A1, 4.988%, 11/1/354 |
665,210 | 499,752 | ||||||
JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through Certificates, Series 2007-A3, Cl. 3A2M, 5.086%, 5/1/374 |
99,075 | 86,554 | ||||||
JPMorgan Mortgage Trust 2007-S3, Mtg. Pass-Through Certificates, Series 2007-S3, Cl. 1A90, 7%, 8/1/37 |
686,645 | 608,395 | ||||||
Mastr Adjustable Rate Mortgages Trust 2004-13, Mtg. Pass-Through Certificates, Series 2004-13, Cl. 2A2, 2.634%, 4/1/344 |
357,823 | 362,849 | ||||||
RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33 |
166,675 | 173,223 | ||||||
RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 |
41,930 | 28,239 | ||||||
Residential Asset Securitization Trust 2005-A15, Mtg. Pass-Through Certificates, Series 2005-A15, Cl. 1A4, 5.75%, 2/1/36 |
110,915 | 93,689 | ||||||
WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust, Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A4, 2.447%, 12/1/354 |
373,121 | 322,561 | ||||||
Wells Fargo Alternative Loan 2007-PA5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-PA5, Cl. 1A1, 6.25%, 11/1/37 |
370,747 | 342,438 | ||||||
Wells Fargo Mortgage-Backed Securities 2005-9 Trust, Mtg. Pass-Through Certificates, Series 2005-9, Cl. 2A6, 5.25%, 10/25/35 |
480,690 | 498,209 | ||||||
Wells Fargo Mortgage-Backed Securities 2006-AR14 Trust, Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 1A2, 5.661%, 10/1/364 |
411,876 | 379,766 | ||||||
Wells Fargo Mortgage-Backed Securities 2007-AR8 Trust, Mtg. Pass-Through Certificates, Series 2007-AR8, Cl. A1, 6.011%, 11/1/374 |
434,358 | 357,696 | ||||||
|
|
|||||||
Total Mortgage-Backed Obligations (Cost $10,130,765) |
10,105,229 | |||||||
U.S. Government Obligations0.0% |
||||||||
Federal Home Loan Mortgage Corp. Nts., 5.25%, 4/18/16 (Cost $455,864) |
425,000 | 498,582 | ||||||
Foreign Government Obligations0.0% |
||||||||
Germany (Federal Republic of) Bonds, Series 94, 6.25%, 1/4/24 (Cost $1) |
1 | EUR | 2 |
7 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Principal Amount |
Value | |||||||
Non-Convertible Corporate Bonds and Notes2.4% |
||||||||
Agrium, Inc., 6.125% Sr. Unsec. Nts., 1/15/41 |
$ | 240,000 | $ | 311,538 | ||||
Airgas, Inc., 3.25% Sr. Nts., 10/1/15 |
481,000 | 506,505 | ||||||
Alliant Techsystems, Inc., 6.75% Sr. Sub. Nts., 4/1/16 |
526,000 | 541,780 | ||||||
Altria Group, Inc., 10.20% Sr. Unsec. Nts., 2/6/39 |
415,000 | 722,712 | ||||||
American Express Bank FSB, 5.50% Sr. Unsec. Nts., 4/16/13 |
528,000 | 546,328 | ||||||
American Tower Corp., 7% Sr. Unsec. Nts., 10/15/17 |
370,000 | 433,049 | ||||||
Anadarko Petroleum Corp., 6.20% Sr. Unsec. Nts., 3/15/40 |
343,000 | 428,368 | ||||||
ANZ National International Ltd., 2.375% Sr. Unsec. Nts., 12/21/128 |
603,000 | 607,125 | ||||||
Arrow Electronics, Inc., 3.375% Sr. Unsec. Unsub. Nts., 11/1/15 |
990,000 | 1,027,314 | ||||||
Ashland, Inc., 9.125% Sr. Unsec. Nts., 6/1/17 |
485,000 | 541,381 | ||||||
AT&T, Inc., 6.30% Sr. Unsec. Bonds, 1/15/38 |
761,000 | 1,016,772 | ||||||
Bank of America Corp., 5.875% Sr. Unsec. Unsub. Nts., 1/5/21 |
210,000 | 238,700 | ||||||
Blackstone Holdings Finance Co. LLC, 6.625% Sr. Unsec. Nts., 8/15/198 |
940,000 | 1,047,230 | ||||||
BNP Paribas SA, 5.186% Sub. Perpetual Nts.8,9 |
170,000 | 147,900 | ||||||
British Telecommunications plc, 9.875% Bonds, 12/15/30 |
325,000 | 521,597 | ||||||
Bunge Ltd. Finance Corp.: 5.35% Sr. Unsec. Unsub. Nts., 4/15/14 |
63,000 | 66,515 | ||||||
8.50% Sr. Unsec. Nts., 6/15/19 |
365,000 | 459,916 | ||||||
Burlington Northern Santa Fe LLC, 5.75% Sr. Unsec. Bonds, 5/1/40 |
143,000 | 182,463 | ||||||
Canadian Oil Sands Ltd., 5.80% Sr. Unsec. Nts., 8/15/138 |
486,000 | 506,808 | ||||||
Capital One Financial Corp., 4.75% Sr. Nts., 7/15/21 |
262,000 | 292,713 | ||||||
Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40 |
344,000 | 401,665 | ||||||
CenturyLink, Inc., 7.60% Sr. Unsec. Unsub. Nts., Series P, 9/15/39 |
193,000 | 199,099 | ||||||
Citigroup, Inc., 6.125% Sr. Unsec. Unsub. Nts., 11/21/17 |
968,000 | 1,107,201 | ||||||
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp., 8.25% Sr. Unsec. Unsub. Nts., 12/15/17 |
495,000 | 522,225 | ||||||
CNA Financial Corp.: |
||||||||
5.75% Sr. Unsec. Unsub. Nts., 8/15/21 |
462,000 | 524,621 | ||||||
5.875% Sr. Unsec. Unsub. Bonds, 8/15/20 |
540,000 | 618,911 | ||||||
Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22 |
317,000 | 477,379 | ||||||
Corrections Corp. of America, 7.75% Sr. Nts., 6/1/17 |
525,000 | 571,266 | ||||||
CSX Corp., 5.50% Sr. Unsec. Nts., 4/15/41 |
148,000 | 181,638 | ||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 6.375% Sr. Unsec. Nts., 3/1/41 |
431,000 | 529,034 | ||||||
Duke Realty LP, 6.25% Sr. Unsec. Unsub. Nts., 5/15/13 |
503,000 | 520,155 | ||||||
El Paso Pipeline Partners LP, 6.50% Sr. Unsec. Nts., 4/1/20 |
782,000 | 923,583 | ||||||
Energizer Holdings, Inc., 4.70% Sr. Unsec. Unsub. Nts., 5/19/21 |
552,000 | 592,617 | ||||||
Ensco plc, 4.70% Sr. Unsec. Nts., 3/15/21 |
461,000 | 518,577 | ||||||
Family Dollar Stores, Inc., 5% Sr. Unsec. Nts., 2/1/21 |
301,000 | 329,047 | ||||||
Fifth Third Cap Trust IV, 6.50% Jr. Unsec. Sub. Nts., 4/15/37 |
1,017,000 | 1,019,543 | ||||||
FirstEnergy Solutions Corp., 6.80% Sr. Unsec. Nts., 8/15/39 |
317,000 | 345,798 | ||||||
Fortune Brands, Inc., 6.375% Sr. Unsec. Unsub. Nts., 6/15/14 |
128,000 | 140,705 |
8 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Principal Amount |
Value | |||||||
Frontier Communications Corp., 8.25% Sr. Unsec. Nts., 4/15/17 |
$ | 527,000 | $ | 579,700 | ||||
General Electric Capital Corp.: |
||||||||
5.25% Sr. Unsec. Nts., 10/19/12 |
85,000 | 85,884 | ||||||
6.375% Unsec. Sub. Bonds, 11/15/67 |
1,005,000 | 1,061,883 | ||||||
Glen Meadow Pass-Through Trust, 6.505% Bonds, 2/12/674,8 |
631,000 | 468,518 | ||||||
Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 |
523,000 | 510,759 | ||||||
Goldman Sachs Group, Inc. (The), 5.25% Sr. Unsec. Nts., 7/27/21 |
169,000 | 178,395 | ||||||
Great Plains Energy, Inc., 2.75% Sr. Unsec. Unsub. Nts., 8/15/13 |
553,000 | 561,237 | ||||||
Gulf South Pipeline Co. LP, 5.75% Sr. Unsec. Nts., 8/15/128 |
490,000 | 490,673 | ||||||
Harris Corp., 6.15% Sr. Unsec. Nts., 12/15/40 |
168,000 | 206,582 | ||||||
Historic TW, Inc., 9.125% Debs., 1/15/13 |
183,000 | 189,833 | ||||||
HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/354 |
1,330,000 | 1,283,450 | ||||||
Huntington Bancshares, Inc., 7% Sub. Nts., 12/15/20 |
493,000 | 588,698 | ||||||
Hyatt Hotels Corp., 5.75% Sr. Unsec. Unsub. Nts., 8/15/158 |
780,000 | 858,041 | ||||||
International Lease Finance Corp., 5.75% Sr. Unsec. Unsub. Nts., 5/15/16 |
539,000 | 564,171 | ||||||
Interpublic Group of Cos., Inc. (The): |
||||||||
6.25% Sr. Unsec. Nts., 11/15/14 |
200,000 | 217,750 | ||||||
10% Sr. Unsec. Nts., 7/15/17 |
620,000 | 700,600 | ||||||
Irish Life & Permanent Group Holdings plc, 3.60% Sr. Unsec. Unsub. Nts., 1/14/138 |
420,000 | 419,392 | ||||||
JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 19 |
900,000 | 996,675 | ||||||
Juniper Networks, Inc., 5.95% Sr. Unsec. Unsub. Nts., 3/15/41 |
219,000 | 252,718 | ||||||
Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13 |
909,000 | 938,554 | ||||||
Kinross Gold Corp., 3.625% Sr. Unsec. Nts., 9/1/168 |
419,000 | 423,094 | ||||||
KLA-Tencor Corp., 6.90% Sr. Unsec. Nts., 5/1/18 |
373,000 | 449,083 | ||||||
Kraft Foods, Inc., 6% Sr. Unsec. Nts., 2/11/13 |
492,000 | 505,794 | ||||||
Lamar Media Corp., 9.75% Sr. Unsec. Nts., 4/1/14 |
487,000 | 548,484 | ||||||
Liberty Mutual Group, Inc., 5% Sr. Nts., 6/1/218 |
808,000 | 834,083 | ||||||
Lincoln National Corp., 6.05% Jr. Unsec. Sub. Bonds, 4/20/67 |
1,102,000 | 1,068,940 | ||||||
Lloyds TSB Bank plc, 6.50% Unsec. Sub. Nts., 9/14/208 |
598,000 | 603,529 | ||||||
Lorillard Tobacco Co., 7% Sr. Unsec. Nts., 8/4/41 |
354,000 | 407,831 | ||||||
Macquarie Bank Ltd., 6.625% Unsec. Sub. Nts., 4/7/218 |
735,000 | 759,570 | ||||||
Marriott International, Inc., 6.20% Sr. Unsec. Unsub. Nts., 6/15/16 |
580,000 | 669,817 | ||||||
Mattel, Inc., 5.625% Sr. Unsec. Nts., 3/15/13 |
490,000 | 505,024 | ||||||
MBIA Insurance Co., 14% Bonds, 1/15/334,8 |
22,150,000 | 10,798,125 | ||||||
MBIA Insurance Corp., 14% Unsec. Sub. Nts., 1/15/334 |
100,000 | 48,750 | ||||||
McKesson Corp., 6% Sr. Unsec. Unsub. Nts., 3/1/41 |
288,000 | 406,875 | ||||||
Mercantile Bankshares Corp., 4.625% Unsec. Sub. Nts., Series B, 4/15/13 |
348,000 | 356,664 | ||||||
Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38 |
369,000 | 454,314 | ||||||
Morgan Stanley: |
||||||||
5.50% Sr. Unsec. Unsub. Nts., 7/24/208 |
218,000 | 219,380 | ||||||
5.55% Sr. Unsec. Unsub. Nts., Series F, 4/27/17 |
1,275,000 | 1,316,810 |
9 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Principal Amount |
Value | |||||||
Mylan, Inc., 6% Sr. Nts., 11/15/188 |
$ | 565,000 | $ | 611,613 | ||||
Nabors Industries, Inc., 6.15% Sr. Unsec. Unsub. Nts., 2/15/18 |
680,000 | 787,852 | ||||||
Newell Rubbermaid, Inc., 5.50% Sr. Unsec. Nts., 4/15/13 |
527,000 | 543,704 | ||||||
Nexen, Inc., 6.40% Sr. Unsec. Unsub. Bonds, 5/15/37 |
573,000 | 731,647 | ||||||
Nomura Holdings, Inc., 4.125% Sr. Unsec. Unsub. Nts., 1/19/16 |
520,000 | 537,428 | ||||||
Oncor Electric Delivery Co., 7% Debs., 9/1/22 |
470,000 | 588,162 | ||||||
Potash Corp. of Saskatchewan, Inc., 5.625% Sr. Unsec. Unsub. Nts., 12/1/40 |
323,000 | 428,858 | ||||||
PPL WEM Holdings plc, 5.375% Sr. Unsec. Nts., 5/1/218 |
763,000 | 845,603 | ||||||
Prudential Financial, Inc., 3.625% Sr. Unsec. Unsub. Nts., 9/17/12 |
593,000 | 595,083 | ||||||
Quest Diagnostics, Inc., 5.75% Sr. Unsec. Nts., 1/30/40 |
345,000 | 420,181 | ||||||
Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19 |
503,000 | 559,588 | ||||||
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/1410 |
305,000 | 329,812 | ||||||
Rent-A-Center, Inc., 6.625% Sr. Unsec. Nts., 11/15/20 |
569,000 | 616,654 | ||||||
Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13 |
491,000 | 516,672 | ||||||
Rockies Express Pipeline LLC, 3.90% Sr. Unsec. Unsub. Nts., 4/15/158 |
930,000 | 911,400 | ||||||
Rowan Cos., Inc., 5% Sr. Unsec. Nts., 9/1/17 |
579,000 | 628,434 | ||||||
Sealed Air Corp., 7.875% Sr. Nts., 6/15/17 |
417,000 | 452,445 | ||||||
Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15 |
530,000 | 581,675 | ||||||
SLM Corp., 6.25% Sr. Nts., 1/25/16 |
739,000 | 787,035 | ||||||
Swiss Re Capital I LP, 6.854% Perpetual Bonds8,9 |
1,077,000 | 1,054,397 | ||||||
Symantec Corp., 4.20% Sr. Unsec. Unsub. Nts., 9/15/20 |
625,000 | 655,623 | ||||||
TD Ameritrade Holding Corp., 2.95% Sr. Unsec. Unsub. Nts., 12/1/12 |
525,000 | 528,553 | ||||||
Teck Resources Ltd., 7% Sr. Unsec. Unsub. Nts., 9/15/12 |
502,000 | 505,448 | ||||||
Texas-New Mexico Power Co., 9.50% Sec. Nts., 4/1/198 |
540,000 | 746,474 | ||||||
Time Warner Entertainment Co. LP, 8.375% Sr. Nts., 7/15/33 |
279,000 | 399,970 | ||||||
TransAlta Corp., 5.75% Sr. Unsec. Nts., 12/15/13 |
251,000 | 263,293 | ||||||
TreeHouse Foods, Inc., 7.75% Sr. Unsec. Nts., 3/1/18 |
550,000 | 595,375 | ||||||
UBS AG Stamford CT, 2.25% Sr. Unsec. Nts., 8/12/13 |
223,000 | 225,684 | ||||||
UBS Preferred Funding Trust V, 6.243% Jr. Sub. Perpetual Nts.9 |
243,000 | 240,570 | ||||||
Vale Inco Ltd., 5.70% Sr. Unsec. Unsub. Nts., 10/15/15 |
31,000 | 34,369 | ||||||
Verizon Communications, Inc., 6.40% Sr. Unsec. Nts., 2/15/38 |
318,000 | 441,364 | ||||||
Viacom, Inc., 7.875% Sr. Unsec. Debs., 7/30/30 |
296,000 | 407,982 | ||||||
Virgin Media Secured Finance plc: 5.25% Sr. Sec. Nts., 1/15/21 |
307,000 | 350,802 | ||||||
6.50% Sr. Sec. Nts., 1/15/18 |
658,000 | 727,090 | ||||||
Wal-Mart Stores, Inc., 5.625% Sr. Unsec. Nts., 4/15/41 |
338,000 | 475,199 | ||||||
WCI Finance LLC/WEA Finance LLC, 5.40% Sr. Unsec. Unsub. Nts., 10/1/128 |
534,000 | 537,992 | ||||||
Weatherford International Ltd. Bermuda, 5.125% Sr. Unsec. Unsub. Nts., 9/15/20 |
576,000 | 630,494 | ||||||
Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K9 |
382,000 | 429,750 | ||||||
Whirlpool Corp., 5.50% Sr. Unsec. Unsub. Nts., 3/1/13 |
213,000 | 218,175 |
10 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Principal Amount |
Value | |||||||
Willis Group Holdings plc, 4.125% Sr. Unsec. Unsub. Nts., 3/15/16 |
$ | 563,000 | $ | 593,118 | ||||
Woodside Finance Ltd., 4.60% Sr. Unsec. Nts., 5/10/218 |
390,000 | 426,730 | ||||||
Xerox Corp., 5.65% Sr. Unsec. Nts., 5/15/13 |
528,000 | 546,068 | ||||||
Xstrata Canada Corp.: |
||||||||
5.375% Sr. Unsec. Unsub. Nts., 6/1/15 |
170,000 | 184,178 | ||||||
6% Sr. Unsec. Unsub. Nts., 10/15/15 |
411,000 | 457,438 | ||||||
Xstrata Finance Canada Ltd., 5.80% Sr. Unsec. Unsub. Bonds, 11/15/168 |
78,000 | 88,676 | ||||||
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/374,10 |
598,000 | 603,980 | ||||||
Zions Bancorp, 7.75% Sr. Unsec. Nts., 9/23/14 |
723,000 | 788,184 | ||||||
|
|
|||||||
Total Non-Convertible Corporate Bonds and Notes (Cost $72,683,745) |
75,830,280 | |||||||
Convertible Corporate Bonds and Notes7.5% |
||||||||
CNO Financial Group, Inc.: |
||||||||
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 |
16,566,000 | 26,857,628 | ||||||
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 |
6,157,000 | 9,982,036 | ||||||
7% Cv. Sr. Unsec. Unsub. Nts., 12/30/16 |
608,000 | 985,720 | ||||||
Continental Airlines, Inc., 4.50% Cv. Sr. Unsec. Unsub. Nts., 1/15/15 |
26,000,000 | 32,272,500 | ||||||
General Cable Corp., 4.50% Cv. Unsec. Sub. Nts., 11/15/294 |
30,000,000 | 30,262,500 | ||||||
MGIC Investment Corp., 9% Cv. Jr. Unsec. Sub. Bonds, 4/1/638 |
72,500,000 | 29,000,000 | ||||||
Navistar International Corp., 3% Cv. Sr. Sub. Nts., 10/15/14 |
29,000,000 | 25,773,750 | ||||||
Peabody Energy Corp., 4.75% Cv. Jr. Unsec. Sub. Debs., 12/15/66 |
17,500,000 | 13,803,125 | ||||||
Radian Group, Inc., 3% Cv. Sr. Unsec. Unsub. Nts., 11/15/17 |
20,000,000 | 11,600,000 | ||||||
Rite Aid Corp., 8.50% Cv. Sr. Unsec. Unsub. Nts., 5/15/15 |
23,774,000 | 24,992,418 | ||||||
Standard Chartered plc, 6.409% Cv. Jr. Unsec. Sub. Bonds, 1/29/498 |
400,000 | 386,458 | ||||||
Take-Two Interactive Software, Inc.: |
||||||||
1.75% Cv. Sr. Unsec. Nts., 12/1/168 |
4,250,000 | 3,793,125 | ||||||
4.375% Cv. Sr. Nts., 6/1/14 |
21,000,000 | 23,992,501 | ||||||
|
|
|||||||
Total Convertible Corporate Bonds and Notes (Cost $258,212,385) |
233,701,761 |
11 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Shares | Value | |||||||
Structured Securities2.3% |
||||||||
Bank of America, CIT Group, Inc. Equity Linked Nts. |
258,198 | $ | 8,995,618 | |||||
Citigroup Funding, Inc.: |
||||||||
Mosaic Co. Equity Linked Nts. |
199,009 | 11,663,977 | ||||||
Rite Aid Corp. Equity Linked Nts. |
7,564,300 | 9,152,047 | ||||||
Credit Suisse AG, Apple, Inc. Equity Linked Nts. |
25,355 | 13,709,829 | ||||||
Deutsche Bank AG London, Allegheny Technologies, Inc. Equity Linked Nts.10 |
231,100 | 7,109,329 | ||||||
Goldman Sachs Group, Inc. (The), OfficeMax, Inc. Equity Linked Nts.10 |
1,568,628 | 7,263,814 | ||||||
UBS AG London, Apple, Inc. Equity Linked Nts.10 |
27,205 | 13,728,922 | ||||||
|
|
|||||||
Total Structured Securities (Cost $74,194,770) |
71,623,536 |
Expiration Date |
Strike Price |
Contracts | ||||||||||||||
Options Purchased0.0% |
| |||||||||||||||
Apple, Inc. Put2 |
8/20/12 | $ | 470.000 | 5,500 | 55,000 | |||||||||||
Ford Motor Co. Put2 |
9/24/12 | 9.000 | 1,250 | 36,250 | ||||||||||||
General Mills, Inc. Put2 |
8/20/12 | 37.000 | 1,500 | 6,000 | ||||||||||||
MBIA, Inc. Put2 |
8/20/12 | 9.000 | 1,250 | 55,000 | ||||||||||||
MBIA, Inc. Put2 |
8/20/12 | 8.000 | 6,000 | 78,000 | ||||||||||||
Mosaic Co. (The) Put2 |
8/20/12 | 50.000 | 7,000 | 77,000 | ||||||||||||
Mosaic Co. (The) Put2 |
9/24/12 | 47.500 | 1,500 | 55,500 | ||||||||||||
NRG Energy, Inc. Put2 |
8/20/12 | 17.000 | 2,000 | 10,000 | ||||||||||||
Safeway, Inc. Put2 |
8/20/12 | 14.000 | 3,500 | 17,500 | ||||||||||||
UnitedHealth Group, Inc. Put2 |
8/20/12 | 50.000 | 4,500 | 337,500 | ||||||||||||
|
|
|||||||||||||||
Total Options Purchased (Cost $2,559,419) |
727,750 | |||||||||||||||
Total Investments, at Value (Cost $3,036,843,859) |
100.6 | % | 3,158,732,616 | |||||||||||||
Liabilities in Excess of Other Assets |
(0.6 | ) | (17,529,892 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Net Assets |
100.0 | % | $ | 3,141,202,724 | ||||||||||||
|
|
|
|
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 segregated accounts and pledged to cover margin requirements with respect to outstanding written options. The aggregate market value of such securities is $381,771,298. See accompanying Notes. |
2. | Non-income producing security. |
12 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
3. | Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 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 October 31, 2011 |
Gross Additions |
Gross Reductions |
Shares July 31, 2012 |
|||||||||||||
Box Ships, Inc. |
1,605,000 | 63,300 | 303,300 | 1,365,000 | ||||||||||||
Diana Containership, Inc. |
1,502,500 | 17,500 | 15,000 | 1,505,000 | ||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
8,453,736 | 369,096,973 | 377,550,709 | | ||||||||||||
Value | Income | Realized Loss |
||||||||||||||
Box Ships, Inc. |
$ | 8,695,050 | $ | 1,300,950 | $ | 772,092 | ||||||||||
Diana Containership, Inc. |
9,225,650 | 827,250 | 6,647 | |||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
| 24,022 | | |||||||||||||
|
|
|
|
|
|
|||||||||||
$ | 17,920,700 | $ | 2,152,222 | $ | 778,739 | |||||||||||
|
|
|
|
|
|
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 $2,301,472 or 0.07% of the Funds net assets as of July 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 $202,537 or 0.01% of the Funds net assets as of July 31, 2012. |
7. | The current amortization rate of the securitys 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. | 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 $56,585,936 or 1.80% of the Funds net assets as of July 31, 2012. |
9. | 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. |
10. | Restricted security. The aggregate value of restricted securities as of July 31, 2012 was $29,035,857, which represents 0.92% of the Funds net assets. See accompanying Notes. Information concerning restricted securities is as follows: |
Security |
Acquisition Dates |
Cost | Value | Unrealized Appreciation (Depreciation) |
||||||||||
Deutsche Bank AG London, Allegheny Technologies, Inc. Equity Linked Nts. |
2/29/12 | $ | 10,124,029 | $ | 7,109,329 | $ | (3,014,700 | ) | ||||||
Goldman Sachs Group, Inc. (The), OfficeMax, Inc. Equity Linked Nts. |
3/5/12 | 8,000,003 | 7,263,814 | (736,189 | ) | |||||||||
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/14 |
7/16/09 | 304,292 | 329,812 | 25,520 | ||||||||||
UBS AG London, Apple, Inc. Equity Linked Nts. |
2/3/12 | 12,499,838 | 13,728,922 | 1,229,084 | ||||||||||
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37 |
2/24/11-7/26/11 | 602,435 | 603,980 | 1,545 | ||||||||||
|
|
|
|
|
|
|||||||||
$ | 31,530,597 | $ | 29,035,857 | $ | (2,494,740 | ) | ||||||||
|
|
|
|
|
|
13 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Written Options as of July 31, 2012 are as follows:
Description |
Type | Number of Contracts |
Exercise Price |
Expiration Date |
Premiums Received |
Value | Unrealized Appreciation/ (Depreciation) |
|||||||||||||||||||||
Apple, Inc. |
Call | 15 | $ | 610.000 | 9/24/12 | $ | 33,044 | $ | (32,850 | ) | $ | 194 | ||||||||||||||||
Apple, Inc. |
Put | 2,750 | 570.000 | 8/20/12 | 2,447,623 | (508,750 | ) | 1,938,873 | ||||||||||||||||||||
Apple, Inc. |
Put | 2,000 | 550.000 | 8/20/12 | 1,396,071 | (176,000 | ) | 1,220,071 | ||||||||||||||||||||
Assured Guaranty Ltd. |
Put | 4,000 | 14.000 | 8/20/12 | 850,888 | (910,000 | ) | (59,112 | ) | |||||||||||||||||||
AT&T, Inc. |
Call | 3,500 | 38.000 | 9/24/12 | 281,309 | (318,500 | ) | (37,191 | ) | |||||||||||||||||||
AT&T, Inc. |
Call | 2,500 | 37.000 | 9/24/12 | 316,279 | (385,000 | ) | (68,721 | ) | |||||||||||||||||||
AT&T, Inc. |
Call | 1,250 | 36.000 | 8/20/12 | 50,468 | (258,750 | ) | (208,282 | ) | |||||||||||||||||||
Cablevision Systems Corp. New York Group, Cl. A |
Put | 2,650 | 14.000 | 9/24/12 | 646,950 | (106,000 | ) | 540,950 | ||||||||||||||||||||
Cisco Systems, Inc. |
Put | 5,545 | 19.000 | 8/20/12 | 1,267,635 | (1,705,088 | ) | (437,453 | ) | |||||||||||||||||||
Cisco Systems, Inc. |
Put | 1,000 | 16.000 | 8/20/12 | 54,973 | (60,000 | ) | (5,027 | ) | |||||||||||||||||||
CVS Caremark Corp. |
Call | 2,750 | 49.000 | 8/20/12 | 132,338 | (24,750 | ) | 107,588 | ||||||||||||||||||||
Edison International, Inc. |
Put | 500 | 45.000 | 8/20/12 | 25,112 | (15,000 | ) | 10,112 | ||||||||||||||||||||
Energizer Holdings, Inc. |
Call | 250 | 80.000 | 8/20/12 | 26,973 | (41,250 | ) | (14,277 | ) | |||||||||||||||||||
Foot Locker, Inc. |
Call | 8,375 | 35.000 | 8/20/12 | 403,174 | (376,875 | ) | 26,299 | ||||||||||||||||||||
Ford Motor Co. |
Put | 2,500 | 11.000 | 9/24/12 | 435,026 | (450,000 | ) | (14,974 | ) | |||||||||||||||||||
Ford Motor Co. |
Put | 1,859 | 12.000 | 8/20/12 | 358,733 | (526,097 | ) | (167,364 | ) | |||||||||||||||||||
Frontier Communications Corp. |
Put | 7,500 | 4.000 | 8/20/12 | 424,278 | (187,500 | ) | 236,778 | ||||||||||||||||||||
Frontier Communications Corp. |
Put | 6,000 | 4.000 | 11/19/12 | 261,204 | (315,000 | ) | (53,796 | ) | |||||||||||||||||||
General Electric Co. |
Call | 7,500 | 21.000 | 8/20/12 | 171,903 | (180,000 | ) | (8,097 | ) | |||||||||||||||||||
General Electric Co. |
Call | 1,000 | 20.000 | 8/20/12 | 38,473 | (91,000 | ) | (52,527 | ) | |||||||||||||||||||
General Electric Co. |
Call | 1,000 | 21.000 | 9/24/12 | 48,973 | (47,000 | ) | 1,973 | ||||||||||||||||||||
General Mills, Inc. |
Put | 3,000 | 39.000 | 8/20/12 | 173,919 | (150,000 | ) | 23,919 | ||||||||||||||||||||
General Mills, Inc. |
Put | 1,000 | 38.000 | 8/20/12 | 51,973 | (13,000 | ) | 38,973 | ||||||||||||||||||||
Hewlett-Packard Co. |
Put | 2,824 | 23.000 | 11/19/12 | 1,253,755 | (1,419,060 | ) | (165,305 | ) | |||||||||||||||||||
Hewlett-Packard Co. |
Put | 2,139 | 25.000 | 8/20/12 | 720,774 | (1,411,740 | ) | (690,966 | ) | |||||||||||||||||||
Hewlett-Packard Co. |
Put | 596 | 24.000 | 8/20/12 | 170,312 | (336,740 | ) | (166,428 | ) | |||||||||||||||||||
Ingersoll-Rand plc |
Call | 3,250 | 44.000 | 8/20/12 | 116,359 | (130,000 | ) | (13,641 | ) | |||||||||||||||||||
Kohls Corp. |
Call | 750 | 52.500 | 8/20/12 | 23,490 | (50,250 | ) | (26,760 | ) | |||||||||||||||||||
Kraft Foods, Inc., Cl. A |
Call | 350 | 41.000 | 8/20/12 | 6,791 | (5,950 | ) | 841 | ||||||||||||||||||||
MBIA, Inc. |
Put | 8,600 | 11.000 | 8/20/12 | 2,091,443 | (1,333,000 | ) | 758,443 | ||||||||||||||||||||
MBIA, Inc. |
Put | 7,000 | 10.000 | 8/20/12 | 688,863 | (651,000 | ) | 37,863 | ||||||||||||||||||||
McDonalds Corp. |
Call | 275 | 92.500 | 8/20/12 | 5,493 | (6,050 | ) | (557 | ) | |||||||||||||||||||
MDC Holdings, Inc. |
Call | 1,500 | 35.000 | 8/20/12 | 57,520 | (30,000 | ) | 27,520 | ||||||||||||||||||||
MDC Holdings, Inc. |
Call | 500 | 34.000 | 8/20/12 | 26,362 | (17,500 | ) | 8,862 | ||||||||||||||||||||
MDC Holdings, Inc. |
Call | 325 | 32.000 | 8/20/12 | 35,416 | (26,975 | ) | 8,441 | ||||||||||||||||||||
Merck & Co., Inc. |
Call | 2,500 | 44.000 | 8/20/12 | 111,098 | (202,500 | ) | (91,402 | ) | |||||||||||||||||||
Merck & Co., Inc. |
Call | 1,000 | 45.000 | 8/20/12 | 37,443 | (33,000 | ) | 4,443 | ||||||||||||||||||||
Mosaic Co. (The) |
Put | 5,000 | 55.000 | 8/20/12 | 1,044,083 | (240,000 | ) | 804,083 | ||||||||||||||||||||
Mosaic Co. (The) |
Put | 5,000 | 55.000 | 9/24/12 | 3,514,798 | (690,000 | ) | 2,824,798 | ||||||||||||||||||||
Nabors Industries Ltd. |
Put | 2,875 | 18.000 | 9/24/12 | 1,098,155 | (1,207,500 | ) | (109,345 | ) | |||||||||||||||||||
NRG Energy, Inc. |
Put | 3,000 | 19.000 | 8/20/12 | 238,917 | (105,000 | ) | 133,917 | ||||||||||||||||||||
NRG Energy, Inc. |
Put | 500 | 18.000 | 8/20/12 | 15,992 | (7,500 | ) | 8,492 | ||||||||||||||||||||
Philip Morris International, Inc. |
Call | 1,550 | 85.000 | 9/24/12 | 781,918 | (1,108,250 | ) | (326,332 | ) | |||||||||||||||||||
Philip Morris International, Inc. |
Call | 150 | 87.500 | 9/24/12 | 60,295 | (72,450 | ) | (12,155 | ) | |||||||||||||||||||
Procter & Gamble Co. (The) |
Call | 500 | 67.500 | 8/20/12 | 11,967 | (5,000 | ) | 6,967 | ||||||||||||||||||||
Safeway, Inc. |
Put | 3,000 | 16.000 | 8/20/12 | 200,918 | (210,000 | ) | (9,082 | ) | |||||||||||||||||||
Seagate Technology |
Call | 4,250 | 33.000 | 8/20/12 | 194,601 | (72,250 | ) | 122,351 | ||||||||||||||||||||
Seagate Technology |
Call | 1,000 | 31.000 | 8/20/12 | 22,921 | (59,000 | ) | (36,079 | ) | |||||||||||||||||||
Seagate Technology |
Call | 500 | 32.000 | 8/20/12 | 14,487 | (17,000 | ) | (2,513 | ) | |||||||||||||||||||
Seagate Technology |
Call | 500 | 34.000 | 8/20/12 | 17,487 | (3,000 | ) | 14,487 | ||||||||||||||||||||
UnitedHealth Group, Inc. |
Put | 3,000 | 55.000 | 8/20/12 | 413,533 | (1,207,500 | ) | (793,967 | ) | |||||||||||||||||||
UnitedHealth Group, Inc. |
Put | 2,000 | 52.500 | 8/20/12 | 182,214 | (394,000 | ) | (211,786 | ) | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
$ | 23,054,724 | $ | (17,930,625 | ) | $ | 5,124,099 | ||||||||||||||||||||||
|
|
|
|
|
|
14 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Notes to Statement of Investments
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 notes 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 Funds 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 IMMFs 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 Funds investment in IMMF.
Foreign Currency Translation. The Funds 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.
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.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Valuation Methods and Inputs
Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.
15 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
The following methodologies are used to determine the market value or the fair value of the types of securities described below:
Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) 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 Funds 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 days closing bid and asked prices, and if not, at the current days closing bid price. A security of a foreign issuer traded on a foreign exchange but not listed on a registered U.S. securities exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Funds assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.
Shares of a registered investment company that are not traded on an exchange are valued at that investment companys net asset value per share.
Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the bid and asked prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.
Short-term money market type debt securities with a remaining maturity 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. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the bid and asked prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.
Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.
16 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.
Security Type |
Standard inputs generally considered by third-party pricing vendors | |
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities | Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors. | |
Loans | Information obtained from market participants regarding reported trade data and broker-dealer price quotations. | |
Event-linked bonds | Information obtained from market participants regarding reported trade data and broker-dealer price quotations. | |
Structured securities | Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events. |
17 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
If a market value or price cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or (ii) as determined in good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or 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 further adjusted for any discounts related to security-specific 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 nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.
To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
Classifications
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. Various data inputs are used in determining the value of each of the Funds 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 Managers own judgments about assumptions that market participants would use in pricing the asset or liability). |
18 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The table below categorizes amounts as of July 31, 2012 based on valuation input level:
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
Assets Table |
| |||||||||||||||
Investments, at Value: |
| |||||||||||||||
Common Stocks |
||||||||||||||||
Consumer Discretionary |
$ | 351,549,275 | $ | | $ | | $ | 351,549,275 | ||||||||
Consumer Staples |
155,111,900 | | | 155,111,900 | ||||||||||||
Energy |
346,153,291 | | | 346,153,291 | ||||||||||||
Financials |
548,221,825 | | | 548,221,825 | ||||||||||||
Health Care |
307,213,185 | | | 307,213,185 | ||||||||||||
Industrials |
173,832,550 | | | 173,832,550 | ||||||||||||
Information Technology |
185,042,004 | | | 185,042,004 | ||||||||||||
Materials |
123,476,821 | | | 123,476,821 | ||||||||||||
Telecommunication Services |
215,598,900 | | | 215,598,900 | ||||||||||||
Utilities |
158,391,225 | | | 158,391,225 | ||||||||||||
Preferred Stocks |
101,825,050 | 95,581,450 | | 197,406,500 | ||||||||||||
Rights, Warrants and Certificates |
4,248,000 | | | 4,248,000 | ||||||||||||
Mortgage-Backed Obligations |
| 10,105,229 | | 10,105,229 | ||||||||||||
U.S. Government Obligations |
| 498,582 | | 498,582 | ||||||||||||
Foreign Government Obligations |
| 2 | | 2 | ||||||||||||
Non-Convertible Corporate Bonds and Notes |
| 75,830,280 | | 75,830,280 | ||||||||||||
Convertible Corporate Bonds and Notes |
| 233,701,761 | | 233,701,761 | ||||||||||||
Structured Securities |
| 71,623,536 | | 71,623,536 | ||||||||||||
Options Purchased |
727,750 | | | 727,750 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Assets |
$ | 2,671,391,776 | $ | 487,340,840 | $ | | $ | 3,158,732,616 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities Table |
||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Appreciated options written, at value |
$ | (4,857,900 | ) | $ | | $ | | $ | (4,857,900 | ) | ||||||
Depreciated options written, at value |
(13,072,725 | ) | | | (13,072,725 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Liabilities |
$ | (17,930,625 | ) | $ | | $ | | $ | (17,930,625 | ) | ||||||
|
|
|
|
|
|
|
|
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contracts 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.
19 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
There have been no significant changes to the fair valuation methodologies of the Fund during the period.
Risk Exposures and the Use of Derivative Instruments
The Funds investment objectives not only permit the Fund to purchase investment securities, they also allow the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity and debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors.
Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:
Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.
Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already 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 instruments price over a defined time period. Large increases or decreases in a financial instruments price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.
20 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
The Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds net assets and or a percentage decrease in the Funds Net Asset Value or NAV. The contingent features are established within the Funds 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.
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.
21 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
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 Funds 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 July 31, 2012, the Fund had an ending monthly average market value of $10,714,703 and $637,569 on futures contracts purchased and sold, respectively.
As of July 31, 2012, the Fund had no outstanding futures contracts.
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.
22 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
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 July 31, 2012, the Fund had an ending monthly average market value of $2,351,058 on purchased put options.
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 July 31, 2012, the Fund had an ending monthly average market value of $2,284,314 and $17,635,322 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.
23 | Oppenheimer Equity Income Fund, Inc. |
Oppenheimer Equity Income Fund, Inc.
STATEMENT OF INVESTMENTS July 31, 2012 (Unaudited)
Written option activity for the period ended July 31, 2012 was as follows:
Call Options | Put Options | |||||||||||||||
Number of Contracts |
Amount of Premiums |
Number of Contracts |
Amount of Premiums |
|||||||||||||
Options outstanding as of |
||||||||||||||||
October 31, 2011 |
18,775 | $ | 1,648,925 | 97,177 | $ | 48,792,019 | ||||||||||
Options written |
224,537 | 18,380,692 | 541,467 | 157,121,600 | ||||||||||||
Options closed or expired |
(163,490 | ) | (12,801,210 | ) | (541,631 | ) | (182,335,630 | ) | ||||||||
Options exercised |
(32,782 | ) | (4,201,825 | ) | (11,175 | ) | (3,549,847 | ) | ||||||||
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Options outstanding as of July 31, 2012 |
47,040 | $ | 3,026,582 | 85,838 | $ | 20,028,142 | ||||||||||
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Restricted Securities
As of July 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 July 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 |
$ | 3,046,394,735 | ||
Federal tax cost of other investments |
(23,054,724 | ) | ||
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|
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Total federal tax cost |
$ | 3,023,340,011 | ||
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|
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Gross unrealized appreciation |
$ | 359,532,115 | ||
Gross unrealized depreciation |
(242,070,135 | ) | ||
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|
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Net unrealized appreciation |
$ | 117,461,980 | ||
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24 | Oppenheimer Equity Income Fund, Inc. |
Item 2. | Controls and Procedures. |
(a) | Based on their evaluation of the registrants 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 7/31/2012, the registrants principal executive officer and principal financial officer found the registrants 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 registrants 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 registrants internal controls over financial reporting that occurred during the registrants last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants 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: |
9/11/2012 |
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: |
9/11/2012 |
By: | /s/ Brian W. Wixted | |
Brian W. Wixted | ||
Principal Financial Officer | ||
Date: |
9/11/2012 |
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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
/s/ William F. Glavin, Jr. |
William F. Glavin, Jr. |
Principal Executive Officer |
Date: 9/11/2012 |
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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
/s/ Brian W. Wixted |
Brian W. Wixted |
Principal Financial Officer |
Date: 9/11/2012 |