UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04797
Oppenheimer Equity Income Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette
OFI Global Asset Management, Inc.
225 Liberty Street, 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: 4/29/2016
Item 1. Reports to Stockholders.
Semiannual Report
|
4/30/2016
|
|||||
|
||||||
|
Oppenheimer Equity Income Fund
|
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 4/29/16*
Class A Shares of the Fund |
||||||
Without Sales Charge
|
With Sales Charge
|
Russell 1000 Value
| ||||
6-Month
|
-4.81%
|
-10.28%
|
1.93%
| |||
1-Year
|
-11.79
|
-16.86
|
-0.40
| |||
5-Year
|
6.12
|
4.87
|
10.13
| |||
10-Year
|
5.71
|
5.09
|
5.67
|
Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).
*April 29, 2016, was the last business day of the Funds semiannual period end. See Note 2 of the accompanying Notes to Financial Statements. Index returns are calculated through April 30, 2016.
2 OPPENHEIMER EQUITY INCOME FUND
The Funds Class A shares (without sales charge) returned -4.81% during the reporting period, underperforming the Russell 1000 Value Index (the Index), which returned 1.93%. On a relative basis, the Funds underperformance versus the Index stemmed primarily from stock selection in the financials, industrials, consumer discretionary and energy sectors. The Fund outperformed the Index in the telecommunication services sector due to an overweight position and stock selection, and in the consumer staples sector as a result of stock selection.
3 OPPENHEIMER EQUITY INCOME FUND
4 OPPENHEIMER EQUITY INCOME FUND
5 OPPENHEIMER EQUITY INCOME FUND
*April 29, 2016, was the last business day of the Funds semiannual period. See Note 2 of the accompanying Notes to Financial Statements.
6 OPPENHEIMER EQUITY INCOME FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 4/29/16
Inception
|
6-Month
|
1-Year
|
5-Year
|
10-Year
|
||||||||||||||
Class A (OAEIX) | 2/13/87 | -4.81 | % | -11.79% | 6.12 | % | 5.71% | |||||||||||
Class B (OBEIX) | 3/3/97 | -5.19 | -12.48 | 5.21 | 5.15 | |||||||||||||
Class C (OCEIX) | 3/3/97 | -5.13 | -12.44 | 5.32 | 4.87 | |||||||||||||
Class I (OIEIX) | 2/28/12 | -4.62 | -11.42 | 8.82 | * | N/A | ||||||||||||
Class R (ONEIX) | 3/1/01 | -4.90 | -12.00 | 5.77 | 5.33 | |||||||||||||
Class Y (OYEIX) | 2/28/11 | -4.66 | -11.55 | 6.41 | 6.90* |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 4/29/16
Inception
|
6-Month
|
1-Year
|
5-Year
|
10-Year
|
||||||||||||||
Class A (OAEIX) | 2/13/87 | -10.28 | % | -16.86% | 4.87 | % | 5.09% | |||||||||||
Class B (OBEIX) | 3/3/97 | -9.52 | -16.43 | 4.91 | 5.15 | |||||||||||||
Class C (OCEIX) | 3/3/97 | -6.00 | -13.23 | 5.32 | 4.87 | |||||||||||||
Class I (OIEIX) | 2/28/12 | -4.62 | -11.42 | 8.82 | * | N/A | ||||||||||||
Class R (ONEIX) | 3/1/01 | -4.90 | -12.00 | 5.77 | 5.33 | |||||||||||||
Class Y (OYEIX) | 2/28/11 | -4.66 | -11.55 | 6.41 | 6.90* |
* Shows performance since inception.
Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800. CALL OPP (225.5677). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 5.75%; for Class B shares, the contingent deferred sales charge of 5% (1-year) and 2% (5-year); and for Class C shares, the contingent deferred sales charge (CDSC) of 1% for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14). There is no sales charge for Class I and Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Returns for periods of less than one year are cumulative and not annualized.
The Funds performance is compared to the performance of the Russell 1000 Value Index. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Funds performance, it must be noted that the Funds investments are not limited to the
7 OPPENHEIMER EQUITY INCOME FUND
investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Funds performance, and does not predict or depict performance of the Fund. The Funds performance reflects the effects of the Funds business and operating expenses.
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
8 OPPENHEIMER EQUITY INCOME FUND
Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments and/or contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended April 29, 2016.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled Expenses Paid During 6 Months Ended April 29, 2016 to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads). Therefore, the hypothetical section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
9 OPPENHEIMER EQUITY INCOME FUND
Actual | Beginning Account Value November 1, 2015 |
Ending Account Value April 29, 2016 |
Expenses Paid During 6 Months Ended April 29, 2016 | |||||
| ||||||||
Class A |
$ 1,000.00 | $ 951.90 | $ 4.98 | |||||
| ||||||||
Class B |
1,000.00 | 948.10 | 8.71 | |||||
| ||||||||
Class C |
1,000.00 | 948.70 | 8.66 | |||||
| ||||||||
Class I |
1,000.00 | 953.80 | 2.90 | |||||
| ||||||||
Class R |
1,000.00 | 951.00 | 6.24 | |||||
| ||||||||
Class Y |
1,000.00 | 953.40 | 3.82 | |||||
Hypothetical (5% return before expenses) |
||||||||
| ||||||||
Class A |
1,000.00 | 1,019.63 | 5.16 | |||||
| ||||||||
Class B |
1,000.00 | 1,015.83 | 9.01 | |||||
| ||||||||
Class C |
1,000.00 | 1,015.87 | 8.96 | |||||
| ||||||||
Class I |
1,000.00 | 1,021.76 | 3.00 | |||||
| ||||||||
Class R |
1,000.00 | 1,018.35 | 6.46 | |||||
| ||||||||
Class Y |
1,000.00 | 1,020.82 | 3.96 |
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended April 29, 2016 are as follows:
Class | Expense Ratios | |||
Class A |
1.03% | |||
Class B |
1.80 | |||
Class C |
1.79 | |||
Class I |
0.60 | |||
Class R |
1.29 | |||
Class Y |
0.79 |
The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Funds Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
10 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF INVESTMENTS April 29, 2016* Unaudited
Shares | Value | |||||||
|
||||||||
Common Stocks85.4% | ||||||||
|
||||||||
Consumer Discretionary9.8% | ||||||||
|
||||||||
Auto Components0.6% | ||||||||
|
||||||||
Lear Corp. |
|
217,500
|
|
$
|
25,040,775
|
| ||
|
||||||||
Automobiles3.6% | ||||||||
|
||||||||
Ford Motor Co. | 6,275,000 | 85,089,000 | ||||||
|
||||||||
General Motors Co.1 | 2,525,000 | 80,295,000 | ||||||
|
|
|||||||
|
165,384,000
|
| ||||||
|
||||||||
Hotels, Restaurants & Leisure0.9% | ||||||||
|
||||||||
Extended Stay America, Inc. | 2,747,500 |
|
42,998,375
|
| ||||
|
||||||||
Household Durables2.9% | ||||||||
|
||||||||
Beazer Homes USA, Inc.2,3 | 2,391,250 | 19,656,075 | ||||||
|
||||||||
CalAtlantic Group, Inc. | 1,610,000 | 52,115,700 | ||||||
|
||||||||
MDC Holdings, Inc. | 1,595,000 | 39,252,950 | ||||||
|
||||||||
PulteGroup, Inc. | 1,232,515 | 22,665,951 | ||||||
|
|
|||||||
|
133,690,676
|
| ||||||
|
||||||||
Media0.1% | ||||||||
|
||||||||
Comcast Corp., Cl. A | 108,750 |
|
6,607,650
|
| ||||
|
||||||||
Multiline Retail1.0% | ||||||||
|
||||||||
J.C. Penney Co., Inc.2 | 99,900 | 927,072 | ||||||
|
||||||||
Kohls Corp. | 575,000 | 25,472,500 | ||||||
|
||||||||
Macys, Inc. | 441,250 | 17,469,087 | ||||||
|
|
|||||||
|
43,868,659
|
| ||||||
|
||||||||
Specialty Retail0.7% | ||||||||
|
||||||||
Best Buy Co., Inc. | 770,000 | 24,701,600 | ||||||
|
||||||||
Staples, Inc. | 755,000 | 7,701,000 | ||||||
|
|
|||||||
|
32,402,600
|
| ||||||
|
||||||||
Consumer Staples5.1% | ||||||||
|
||||||||
Beverages0.7% | ||||||||
|
||||||||
Coca-Cola Co. (The) | 300,000 | 13,440,000 | ||||||
|
||||||||
Molson Coors Brewing Co., Cl. B | 210,000 | 20,082,300 | ||||||
|
|
|||||||
|
33,522,300
|
| ||||||
|
||||||||
Food & Staples Retailing1.2% | ||||||||
|
||||||||
Walgreens Boots Alliance, Inc. | 105,000 | 8,324,400 | ||||||
|
||||||||
Wal-Mart Stores, Inc. | 710,000 | 47,477,700 | ||||||
|
|
|||||||
|
55,802,100
|
| ||||||
|
||||||||
Food Products1.5% | ||||||||
|
||||||||
B&G Foods, Inc. | 380,000 | 15,659,800 | ||||||
|
||||||||
Kraft Heinz Co. (The) | 667,500 | 52,111,725 | ||||||
|
|
|||||||
|
67,771,525
|
| ||||||
|
||||||||
Household Products0.6% | ||||||||
|
||||||||
Procter & Gamble Co. (The) | 325,000 |
|
26,039,000
|
| ||||
|
||||||||
Tobacco1.1% | ||||||||
|
||||||||
Philip Morris International, Inc. | 487,500 | 47,833,500 |
11 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
|
||||||||
Energy8.0% | ||||||||
|
||||||||
Oil, Gas & Consumable Fuels8.0% | ||||||||
|
||||||||
BP plc, Sponsored ADR | 1,500,000 | $ | 50,370,000 | |||||
|
||||||||
Chevron Corp. | 1,049,900 | 107,278,782 | ||||||
|
||||||||
Exxon Mobil Corp. | 845,000 | 74,698,000 | ||||||
|
||||||||
Kinder Morgan, Inc. | 825,000 | 14,652,000 | ||||||
|
||||||||
Marathon Oil Corp. | 1,675,000 | 23,600,750 | ||||||
|
||||||||
Royal Dutch Shell plc, Cl. A, Sponsored ADR | 1,605,000 | 84,888,450 | ||||||
|
||||||||
Williams Cos., Inc. (The) | 650,000 | 12,603,500 | ||||||
|
|
|||||||
|
368,091,482
|
| ||||||
|
||||||||
Financials31.3% | ||||||||
|
||||||||
Capital Markets4.4% | ||||||||
|
||||||||
Goldman Sachs Group, Inc. (The)1 | 525,000 | 86,157,750 | ||||||
|
||||||||
KKR & Co. LP4 | 3,660,000 | 49,776,000 | ||||||
|
||||||||
Morgan Stanley | 2,488,500 | 67,338,810 | ||||||
|
|
|||||||
|
203,272,560
|
| ||||||
|
||||||||
Commercial Banks12.2% | ||||||||
|
||||||||
Bank of America Corp. | 2,900,000 | 42,224,000 | ||||||
|
||||||||
Citigroup, Inc. | 4,965,000 | 229,780,200 | ||||||
|
||||||||
JPMorgan Chase & Co. | 2,890,000 | 182,648,000 | ||||||
|
||||||||
Wells Fargo & Co. | 2,077,750 | 103,845,945 | ||||||
|
|
|||||||
|
558,498,145
|
| ||||||
|
||||||||
Insurance7.3% | ||||||||
|
||||||||
American International Group, Inc. | 824,500 | 46,023,590 | ||||||
|
||||||||
Assured Guaranty Ltd. | 5,655,000 | 146,294,850 | ||||||
|
||||||||
MBIA, Inc.2,3 | 5,500,000 | 42,900,000 | ||||||
|
||||||||
MetLife, Inc. | 2,200,000 | 99,220,000 | ||||||
|
|
|||||||
|
334,438,440
|
| ||||||
|
||||||||
Real Estate Investment Trusts (REITs)5.8% | ||||||||
|
||||||||
Apollo Commercial Real Estate Finance, Inc. | 1,640,000 | 26,125,200 | ||||||
|
||||||||
Blackstone Mortgage Trust, Inc., Cl. A | 1,130,000 | 31,052,400 | ||||||
|
||||||||
Colony Capital, Inc., Cl. A | 2,610,000 | 46,144,800 | ||||||
|
||||||||
Communications Sales & Leasing, Inc. | 2,142,500 | 49,770,275 | ||||||
|
||||||||
iStar, Inc.2 | 2,700,000 | 26,460,000 | ||||||
|
||||||||
NorthStar Realty Finance Corp. | 1,000,000 | 12,790,000 | ||||||
|
||||||||
Starwood Property Trust, Inc. | 2,505,000 | 48,496,800 | ||||||
|
||||||||
Two Harbors Investment Corp. | 3,125,000 | 24,468,750 | ||||||
|
|
|||||||
|
265,308,225
|
| ||||||
|
||||||||
Thrifts & Mortgage Finance1.6% | ||||||||
|
||||||||
MGIC Investment Corp.2 | 3,402,500 | 24,600,075 | ||||||
|
||||||||
Radian Group, Inc. | 3,915,000 | 50,072,850 | ||||||
|
|
|||||||
|
74,672,925
|
| ||||||
|
||||||||
Health Care10.6% | ||||||||
|
||||||||
Biotechnology1.2% | ||||||||
|
||||||||
AbbVie, Inc. | 924,939 |
|
56,421,279
|
| ||||
|
||||||||
Health Care Equipment & Supplies1.4% | ||||||||
|
||||||||
Medtronic plc | 817,500 | 64,705,125 |
12 OPPENHEIMER EQUITY INCOME FUND
Shares | Value | |||||||
|
||||||||
Pharmaceuticals8.0% | ||||||||
|
||||||||
Allergan plc2 | 67,500 | $ | 14,617,800 | |||||
|
||||||||
Johnson & Johnson | 642,500 | 72,011,400 | ||||||
|
||||||||
Merck & Co., Inc. | 2,416,050 | 132,496,182 | ||||||
|
||||||||
Pfizer, Inc. | 3,087,500 | 100,992,125 | ||||||
|
||||||||
Roche Holding AG, Sponsored ADR | 1,200,000 | 37,884,000 | ||||||
|
||||||||
Teva Pharmaceutical Industries Ltd., Sponsored ADR | 150,000 | 8,167,500 | ||||||
|
|
|||||||
|
366,169,007
|
| ||||||
|
||||||||
Industrials5.3% | ||||||||
|
||||||||
Aerospace & Defense0.4% | ||||||||
|
||||||||
General Dynamics Corp. | 38,250 | 5,374,890 | ||||||
|
||||||||
United Technologies Corp. | 108,000 | 11,271,960 | ||||||
|
|
|||||||
|
16,646,850
|
| ||||||
|
||||||||
Airlines1.4% | ||||||||
|
||||||||
Delta Air Lines, Inc. | 16,725 | 696,931 | ||||||
|
||||||||
United Continental Holdings, Inc.2 | 1,405,000 | 64,363,050 | ||||||
|
|
|||||||
|
65,059,981
|
| ||||||
|
||||||||
Commercial Services & Supplies1.0% | ||||||||
|
||||||||
R.R. Donnelley & Sons Co. | 2,707,500 |
|
47,110,500
|
| ||||
|
||||||||
Electrical Equipment0.8% | ||||||||
|
||||||||
Eaton Corp. plc | 357,500 | 22,619,025 | ||||||
|
||||||||
General Cable Corp.1 | 906,405 | 14,176,174 | ||||||
|
|
|||||||
|
36,795,199
|
| ||||||
|
||||||||
Industrial Conglomerates1.4% | ||||||||
|
||||||||
General Electric Co. | 2,025,100 |
|
62,271,825
|
| ||||
|
||||||||
Road & Rail0.3% | ||||||||
|
||||||||
CSX Corp. | 470,000 |
|
12,816,900
|
| ||||
|
||||||||
Information Technology8.1% | ||||||||
|
||||||||
Communications Equipment1.2% | ||||||||
|
||||||||
Cisco Systems, Inc. | 1,940,000 |
|
53,330,600
|
| ||||
|
||||||||
Internet Software & Services0.8% | ||||||||
|
||||||||
Alphabet, Inc., Cl. C1,2 | 54,200 |
|
37,561,142
|
| ||||
|
||||||||
IT Services0.3% | ||||||||
|
||||||||
International Business Machines Corp. | 82,500 |
|
12,040,050
|
| ||||
|
||||||||
Semiconductors & Semiconductor Equipment1.3% | ||||||||
|
||||||||
Cypress Semiconductor Corp. | 1,272,500 | 11,490,675 | ||||||
|
||||||||
Intel Corp. | 347,500 | 10,522,300 | ||||||
|
||||||||
QUALCOMM, Inc. | 745,000 | 37,637,400 | ||||||
|
|
|||||||
|
59,650,375
|
| ||||||
|
||||||||
Software1.9% | ||||||||
|
||||||||
Microsoft Corp. | 1,562,500 | 77,921,875 | ||||||
|
||||||||
Oracle Corp. | 230,000 | 9,167,800 | ||||||
|
|
|||||||
|
87,089,675
|
| ||||||
|
||||||||
Technology Hardware, Storage & Peripherals2.6% | ||||||||
|
||||||||
Apple, Inc. | 977,500 | 91,630,850 |
13 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Shares | Value | |||||||
|
||||||||
Technology Hardware, Storage & Peripherals (Continued) | ||||||||
|
||||||||
EMC Corp. | 725,000 | $ | 18,929,750 | |||||
|
||||||||
HP, Inc. | 537,500 | 6,595,125 | ||||||
|
||||||||
Seagate Technology plc | 190,000 | 4,136,300 | ||||||
|
|
|||||||
|
121,292,025
|
| ||||||
|
||||||||
Materials1.7% | ||||||||
|
||||||||
Chemicals0.6% | ||||||||
|
||||||||
LyondellBasell Industries NV, Cl. A | 245,000 | 20,254,150 | ||||||
|
||||||||
Monsanto Co. | 50,000 | 4,684,000 | ||||||
|
|
|||||||
|
24,938,150
|
| ||||||
|
||||||||
Containers & Packaging0.6% | ||||||||
|
||||||||
International Paper Co. | 665,000 |
|
28,774,550
|
| ||||
|
||||||||
Paper & Forest Products0.5% | ||||||||
|
||||||||
Domtar Corp. | 610,000 |
|
23,570,400
|
| ||||
|
||||||||
Telecommunication Services3.0% | ||||||||
|
||||||||
Diversified Telecommunication Services3.0% | ||||||||
|
||||||||
AT&T, Inc. | 2,330,000 | 90,450,600 | ||||||
|
||||||||
CenturyLink, Inc. | 300,000 | 9,285,000 | ||||||
|
||||||||
Frontier Communications Corp.1 | 6,825,000 | 37,947,000 | ||||||
|
|
|||||||
|
137,682,600
|
| ||||||
|
||||||||
Utilities2.5% | ||||||||
|
||||||||
Electric Utilities2.0% | ||||||||
|
||||||||
American Electric Power Co., Inc. | 705,000 | 44,767,500 | ||||||
|
||||||||
PPL Corp. | 1,317,500 | 49,590,700 | ||||||
|
|
|||||||
|
94,358,200
|
| ||||||
|
||||||||
Independent Power and Renewable Electricity Producers0.5% | ||||||||
|
||||||||
NRG Energy, Inc. | 1,425,000 | 21,517,500 | ||||||
|
|
|||||||
Total Common Stocks (Cost $3,506,735,157) |
|
3,915,044,870
|
| |||||
|
||||||||
Preferred Stocks8.6% | ||||||||
|
||||||||
Allergan plc, 5.50% Cv., Series A | 83,245 | 67,552,485 | ||||||
|
||||||||
American Homes 4 Rent, 5% Cum., Series A, Non-Vtg. | 498,900 | 13,200,894 | ||||||
|
||||||||
American Homes 4 Rent, 5% Cum., Series B, Non-Vtg. | 675,800 | 18,138,472 | ||||||
|
||||||||
Dominion Resources, Inc., 6.375% Cv. | 294,490 | 14,527,192 | ||||||
|
||||||||
Exelon Corp., 6.50% Cv. | 732,500 | 35,496,950 | ||||||
|
||||||||
Frontier Communications Corp., 11.125% Cv., Series A, Non-Vtg. | 804,985 | 83,959,935 | ||||||
|
||||||||
iStar, Inc., 4.50% Cv., Non-Vtg. | 1,214,950 | 51,586,777 | ||||||
|
||||||||
Post Holdings, Inc., 5.25% Cv. | 360,000 | 47,058,588 | ||||||
|
||||||||
Teva Pharmaceutical Industries Ltd., 7% Cv., Non-Vtg. | 71,124 | 64,082,724 | ||||||
|
|
|||||||
Total Preferred Stocks (Cost $408,340,663) |
|
395,604,017
|
| |||||
Units | ||||||||
|
||||||||
Rights, Warrants and Certificates0.0% | ||||||||
|
||||||||
Kinder Morgan, Inc. Wts., Strike Price $40, Exp. 5/25/172 (Cost $7,005,252) | 2,725,000 | 95,375 | ||||||
Principal Amount |
||||||||
|
||||||||
Mortgage-Backed Obligations0.1% | ||||||||
|
||||||||
Alternative Loan Trust, Series 2005-29CB, Cl. A4, 5%, 7/25/35 | $ | 681,958 | 611,472 | |||||
|
||||||||
Banc of America Funding Trust, Series 2007-C, Cl. 1A4, 2.979%, 5/20/365 | 79,854 | 71,999 |
14 OPPENHEIMER EQUITY INCOME FUND
Principal Amount | Value | |||||||
|
||||||||
Mortgage-Backed Obligations (Continued) | ||||||||
|
||||||||
Banc of America Mortgage Trust, Series 2004-E, Cl. 2A6, 2.886%, 6/25/345 | $ | 131,218 | $ | 129,719 | ||||
|
||||||||
Federal Home Loan Mortgage Corp. Gold Pool: | ||||||||
9.00%, 8/1/22 | 327 | 340 | ||||||
9.00%, 8/1/22 | 11 | 12 | ||||||
9.00%, 3/1/24 | 198 | 215 | ||||||
9.00%, 3/1/24 | 65 | 66 | ||||||
9.00%, 1/1/25 | 294 | 346 | ||||||
9.00%, 5/1/25 | 62 | 71 | ||||||
|
||||||||
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security, Series 243, Cl. 6, 0%, 12/15/326,7 | 81,518 | 15,042 | ||||||
|
||||||||
Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 176, Cl. PO, 4.222%, 6/1/268 | 24,510 | 22,960 | ||||||
|
||||||||
Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Series 151, Cl. F, 9%, 5/15/21 | 3,438 | 3,771 | ||||||
|
||||||||
Federal National Mortgage Assn. Pool, 8.50%, 7/1/32 | 4,559 | 4,989 | ||||||
|
||||||||
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: | ||||||||
Series 331, Cl. 9, 10.256%, 2/25/336 | 20,052 | 4,361 | ||||||
Series 334, Cl. 17, 17.152%, 2/25/336 | 90,392 | 17,328 | ||||||
Series 339, Cl. 12, 0.00%, 6/25/336,7 | 158,582 | 33,511 | ||||||
Series 343, Cl. 13, 0.00%, 9/25/336,7 | 166,401 | 32,583 | ||||||
Series 343, Cl. 18, 0.00%, 5/25/346,7 | 23,358 | 4,487 | ||||||
Series 345, Cl. 9, 0.00%, 1/25/346,7 | 137,409 | 27,391 | ||||||
Series 351, Cl. 10, 0.00%, 4/25/346,7 | 37,195 | 7,649 | ||||||
Series 351, Cl. 8, 0.00%, 4/25/346,7 | 81,211 | 16,698 | ||||||
Series 356, Cl. 10, 0.00%, 6/25/356,7 | 59,003 | 11,251 | ||||||
Series 356, Cl. 12, 0.00%, 2/25/356,7 | 28,756 | 5,591 | ||||||
Series 362, Cl. 13, 0.00%, 8/25/356,7 | 360,415 | 75,108 | ||||||
Series 364, Cl. 16, 0.00%, 9/25/356,7 | 136,068 | 23,186 | ||||||
|
||||||||
Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security: | ||||||||
Series 2001-63, Cl. SD, 27.276%, 12/18/316 | 2,299 | 469 | ||||||
Series 2001-68, Cl. SC, 27.877%, 11/25/316 | 1,501 | 318 | ||||||
Series 2002-7, Cl. SK, 22.298%, 1/25/326 | 2,528 | 492 | ||||||
Series 2002-90, Cl. SY, 32.799%, 9/25/326 | 2,256 | 426 | ||||||
|
||||||||
Government National Mortgage Assn. I Pool: | ||||||||
8.00%, 5/15/17 | 950 | 957 | ||||||
8.50%, 8/15/17 | 86 | 88 | ||||||
8.50%, 11/15/17 | 92 | 93 | ||||||
8.50%, 12/15/17 | 92 | 93 | ||||||
8.50%, 12/15/17 | 309 | 316 | ||||||
|
||||||||
Government National Mortgage Assn. II Pool, 1.75%, 3/20/265 | 6,790 | 7,009 | ||||||
|
||||||||
MASTR Adjustable Rate Mortgages Trust, Series 2004-13, Cl. 2A2, 2.852%, 4/21/345 | 133,363 | 135,599 | ||||||
|
||||||||
RALI Trust, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 | 24,283 | 19,324 | ||||||
|
||||||||
WaMu Mortgage Pass-Through Certificates Trust, Series 2005-AR14, Cl. 1A4, 2.525%, 12/25/355 | 207,239 | 200,249 | ||||||
|
||||||||
Wells Fargo Mortgage-Backed Securities Trust, Series 2006-AR14, Cl. 1A2, 5.874%, 10/25/365 | 150,414 | 144,951 | ||||||
|
|
|||||||
Total Mortgage-Backed Obligations (Cost $1,856,145) | 1,630,530 |
15 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Principal Amount | Value | |||||||
|
||||||||
Non-Convertible Corporate Bonds and Notes0.9% | ||||||||
|
||||||||
Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40 | $ | 344,000 | $ | 406,549 | ||||
|
||||||||
Edgewell Personal Care Co., 4.70% Sr. Unsec. Nts., 5/19/21 | 552,000 | 577,029 | ||||||
|
||||||||
Frontier Communications Corp.: | ||||||||
8.25% Sr. Unsec. Nts., 4/15/17 | 465,000 | 490,403 | ||||||
11.00% Sr. Unsec. Nts., 9/15/259 | 10,977,000 | 11,127,934 | ||||||
|
||||||||
Glen Meadow Pass-Through Trust, 6.505% Jr. Sub. Nts., 2/12/675,9 | 631,000 | 463,785 | ||||||
|
||||||||
Glencore Finance Canada Ltd., 5.80% Sr. Unsec. Unsub. Nts., 11/15/169 | 78,000 | 79,424 | ||||||
|
||||||||
J.C. Penney Corp., Inc., 5.65% Sr. Unsec. Nts., 6/1/20 | 23,401,500 | 22,172,921 | ||||||
|
||||||||
Kinross Gold Corp., 3.625% Sr. Unsec. Nts., 9/1/16 | 419,000 | 420,586 | ||||||
|
||||||||
Marriott International, Inc., 6.20% Sr. Unsec. Nts., 6/15/16 | 580,000 | 583,462 | ||||||
|
||||||||
Nabors Industries, Inc., 6.15% Sr. Unsec. Nts., 2/15/18 | 680,000 | 694,154 | ||||||
|
||||||||
Navistar International Corp., 8.25% Sr. Unsec. Nts., 11/1/21 | 1,797,000 | 1,293,840 | ||||||
|
||||||||
Quest Diagnostics, Inc., 5.75% Sr. Unsec. Nts., 1/30/40 | 51,000 | 56,746 | ||||||
|
||||||||
Reynolds American, Inc., 7% Sr. Unsec. Nts., 8/4/419 | 354,000 | 425,250 | ||||||
|
||||||||
Standard Chartered plc, 6.409% Jr. Sub. Perpetual Bonds5,9,10 | 400,000 | 375,000 | ||||||
|
||||||||
Texas-New Mexico Power Co., 6.95% Sec. Nts., 4/1/439 | 540,000 | 703,831 | ||||||
|
|
|||||||
Total Non-Convertible Corporate Bonds and Notes (Cost $36,577,333) |
|
39,870,914
|
| |||||
|
||||||||
Convertible Corporate Bonds and Notes4.9% | ||||||||
|
||||||||
General Cable Corp., 4.50% Cv. Unsec. Sub. Nts., 11/15/295 | 45,143,000 | 30,020,095 | ||||||
|
||||||||
MGIC Investment Corp.: | ||||||||
2.00% Cv. Sr. Unsec. Nts., 4/1/20 | 30,016,000 | 36,582,000 | ||||||
9.00% Cv. Jr. Sub. Nts., 4/1/639 | 24,620,000 | 28,020,638 | ||||||
|
||||||||
Micron Technology, Inc., 3% Cv. Sr. Unsec. Nts., 11/15/43 | 73,113,000 | 52,138,708 | ||||||
|
||||||||
Navistar International Corp.: | ||||||||
4.50% Cv. Sr. Sub. Nts., 10/15/18 | 38,117,000 | 26,110,145 | ||||||
4.75% Cv. Sr. Sub. Nts., 4/15/19 | 78,402,000 | 53,117,355 | ||||||
|
|
|||||||
Total Convertible Corporate Bonds and Notes (Cost $288,904,423) | 225,988,941 | |||||||
Shares |
||||||||
|
||||||||
Structured Security0.2% | ||||||||
|
||||||||
Barclays Bank plc, Alcoa, Inc. Equity Linked Nts., 10/4/17 (Cost $9,376,578) | 248,452 |
|
9,230,133
|
| ||||
|
||||||||
Total Investments, at Value (Cost $4,258,795,551) | 100.1% | 4,587,464,780 | ||||||
|
||||||||
Net Other Assets (Liabilities) | (0.1) | (3,268,302) | ||||||
|
|
|||||||
Net Assets | 100.0% | $ | 4,584,196,478 | |||||
|
|
Footnotes to Statement of Investments
* April 29, 2016 represents the last business day of the Funds reporting period. See Note 2 of the accompanying Notes.
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 $150,408,621. See Note 6 of the accompanying Notes.
2. Non-income producing security.
3. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, 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 reporting period in which the issuer was an affiliate are as follows:
16 OPPENHEIMER EQUITY INCOME FUND
Footnotes to Statement of Investments (Continued)
Shares October 30, 2015a |
Gross Additions |
Gross Reductions |
Shares April 29, 2016a |
|||||||||||||
|
||||||||||||||||
Beazer Homes USA, Inc. | 2,403,663 | 287,100 | 299,513 | 2,391,250 | ||||||||||||
MBIA, Inc.b | 9,370,000 | 150,300 | 4,020,300 | 5,500,000 | ||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E | 3,336,037 | 332,171,553 | 335,507,590 | | ||||||||||||
Value | Income | Realized Loss | ||||||||||||||
|
||||||||||||||||
Beazer Homes USA, Inc. | $ | 19,656,075 | $ | | $ | 3,187,483 | ||||||||||
MBIA, Inc.b | c | | 14,477,457 | |||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E | | 25,281 | | |||||||||||||
|
|
|||||||||||||||
Total | $ | 19,656,075 | $ | 25,281 | $ | 17,664,940 | ||||||||||
|
|
a. Represents the last business day of the Funds reporting period. See Note 2 of the accompanying Notes.
b. No longer an affiliate at period end.
c. The security is no longer an affiliate; therefore, the value has been excluded from this table.
4. Security is a Master Limited Partnership.
5. Represents the current interest rate for a variable or increasing rate security.
6. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $275,891 or 0.01% of the Funds net assets at period end.
7. Interest rate is less than 0.005%.
8. 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 $22,960 or less than 0.005% of the Funds net assets at period end.
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 Trustees. These securities amount to $41,195,862 or 0.90% of the Funds net assets at period end.
10. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
|
||||||||||||||||||||||||||||
Exchange-Traded Options Written at April 29, 2016 | ||||||||||||||||||||||||||||
Description | Exercise Price |
Expiration Date |
Number of Contracts |
Premiums Received |
Value | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Abbvie, Inc. Call | USD | 61.500 | 5/20/16 | USD | (500) | $ | 43,479 | $ | (72,500) | |||||||||||||||||||
|
||||||||||||||||||||||||||||
Alphabet, Inc. Call | USD | 800.000 | 5/20/16 | USD | (50) | 27,348 | (500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Alphabet, Inc. Call | USD | 730.000 | 5/20/16 | USD | (15) | 51,403 | (3,465) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Alphabet, Inc. Call | USD | 730.000 | 6/17/16 | USD | (5) | 4,547 | (3,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
American Electric Power Co., Inc. Call | USD | 67.500 | 5/20/16 | USD | (3,750) | 251,444 | (9,375) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
American Electric Power Co., Inc. Call | USD | 67.500 | 8/19/16 | USD | (500) | 69,529 | (27,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
AT&T, Inc. Call | USD | 39.000 | 5/20/16 | USD | (15,000) | 863,269 | (615,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
AT&T, Inc. Call | USD | 39.000 | 6/17/16 | USD | (500) | 22,979 | (32,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Bank of America Corp. Call | USD | 15.500 | 5/20/16 | USD | (750) | 14,594 | (6,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Beazer Homes USA, Inc. Put | USD | 15.000 | 5/20/16 | USD | (80) | 33,356 | (52,800) |
17 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
|
||||||||||||||||||||||||||||
Exchange-Traded Options Written at April 29, 2016 (Continued) | ||||||||||||||||||||||||||||
Description | Exercise Price |
Expiration Date |
Number of Contracts |
Premiums Received |
Value | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Best Buy Co., Inc. Call | USD | 35.000 | 5/20/16 | USD | (495) | $ | 14,562 | $ | (3,960) | |||||||||||||||||||
|
||||||||||||||||||||||||||||
CenturyLink, Inc. Call | USD | 30.000 | 7/15/16 | USD | (3,000) | 643,367 | (600,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Chevron Corp. Call | USD | 100.000 | 5/20/16 | USD | (750) | 109,468 | (221,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Chevron Corp. Call | USD | 102.000 | 5/20/16 | USD | (625) | 140,597 | (129,375) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Chevron Corp. Call | USD | 95.000 | 5/20/16 | USD | (450) | 178,629 | (315,450) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Chevron Corp. Call | USD | 97.500 | 5/20/16 | USD | (2,949) | 742,868 | (1,238,580) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Cisco Systems, Inc. Call | USD | 28.000 | 5/20/16 | USD | (650) | 48,973 | (36,400) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Coca-Cola Co. (The) Call | USD | 45.000 | 6/17/16 | USD | (100) | 6,096 | (7,400) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Coca-Cola Co. (The) Call | USD | 44.000 | 5/20/16 | USD | (98) | 3,230 | (10,780) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Communications Sales & Leasing, Inc. Call | USD | 22.500 | 5/20/16 | USD | (250) | 24,740 | (28,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Eaton Corp. plc Call | USD | 65.500 | 5/20/16 | USD | (500) | 24,479 | (16,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Eaton Corp. plc Call | USD | 65.000 | 5/20/16 | USD | (600) | 41,007 | (24,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Exxon Mobil Corp. Call | USD | 87.500 | 5/20/16 | USD | (1,770) | 194,250 | (309,750) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Exxon Mobil Corp. Call | USD | 85.000 | 5/20/16 | USD | (970) | 108,524 | (373,450) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
General Electric Co. Call | USD | 31.000 | 5/20/16 | USD | (750) | 48,719 | (26,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
General Electric Co. Call | USD | 32.000 | 5/20/16 | USD | (2,000) | 102,917 | (14,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Intel Corp. Call | USD | 33.000 | 5/20/16 | USD | (150) | 5,764 | (450) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
J.C. Penney Co., Inc. Call | USD | 10.000 | 5/20/16 | USD | (999) | 62,086 | (32,967) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Johnson & Johnson Call | USD | 110.000 | 5/20/16 | USD | (5,000) | 810,316 | (1,275,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Johnson & Johnson Call | USD | 113.000 | 5/20/16 | USD | (225) | 22,758 | (18,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Kinder Morgan, Inc. Call | USD | 18.000 | 5/20/16 | USD | (1,950) | 141,519 | (83,850) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Kinder Morgan, Inc. Call | USD | 17.500 | 6/17/16 | USD | (4,350) | 801,610 | (421,950) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Kinder Morgan, Inc. Call | USD | 19.500 | 5/20/16 | USD | (1,000) | 21,999 | (9,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Kinder Morgan, Inc. Call | USD | 19.000 | 5/20/16 | USD | (750) | 41,139 | (12,750) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Kraft Heinz Co. (The) Call | USD | 80.000 | 5/20/16 | USD | (1,100) | 152,853 | (99,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Kraft Heinz Co. (The) Call | USD | 80.000 | 7/15/16 | USD | (50) | 9,468 | (7,450) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Lear Corp. Call | USD | 120.000 | 5/20/16 | USD | (500) | 70,094 | (47,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
LyondellBasell Industries NV Call | USD | 97.500 | 5/20/16 | USD | (500) | 21,979 | (2,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 14.000 | 6/17/16 | USD | (375) | 44,234 | (44,625) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 15.000 | 5/20/16 | USD | (2,000) | 140,087 | (88,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 14.000 | 5/20/16 | USD | (375) | 27,734 | (33,750) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 15.500 | 5/20/16 | USD | (500) | 30,979 | (18,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 14.500 | 5/20/16 | USD | (3,250) | 240,017 | (211,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 13.000 | 5/20/16 | USD | (1,500) | 147,437 | (187,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 12.000 | 5/20/16 | USD | (225) | 22,040 | (48,375) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Marathon Oil Corp. Call | USD | 11.000 | 7/15/16 | USD | (250) | 51,739 | (83,750) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Medtronic plc Call | USD | 82.500 | 6/17/16 | USD | (250) | 17,695 | (20,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Merk & Co. Inc. Put | USD | 57.500 | 5/20/16 | USD | (525) | 95,028 | (151,988) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Microsoft Corp. Call | USD | 59.000 | 5/20/16 | USD | (500) | 21,729 | (500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Molson Coors Brewing Co. Call | USD | 95.000 | 5/20/16 | USD | (50) | 9,498 | (13,875) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Molson Coors Brewing Co. Call | USD | 95.000 | 6/17/16 | USD | (50) | 15,472 | (17,250) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Molson Coors Brewing Co. Call | USD | 92.500 | 5/20/16 | USD | (50) | 13,698 | (21,750) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Monsanto Co. Call | USD | 95.000 | 5/20/16 | USD | (500) | 108,333 | (76,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
NRG Energy, Inc. Call | USD | 14.000 | 5/20/16 | USD | (750) | 52,753 | (112,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Pfizer, Inc. Call | USD | 33.000 | 5/20/16 | USD | (1,000) | 23,959 | (35,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Pfizer, Inc. Call | USD | 34.000 | 5/20/16 | USD | (2,500) | 86,028 | (25,000) |
18 OPPENHEIMER EQUITY INCOME FUND
|
||||||||||||||||||||||||||||
Exchange-Traded Options Written at April 29, 2016 (Continued) | ||||||||||||||||||||||||||||
Description | Exercise Price |
Expiration Date |
Number of Contracts |
Premiums Received |
Value | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Philip Morris International, Inc. Call | USD | 100.000 | 5/20/16 | USD | (1,550) | $ | 414,180 | $ | (97,650) | |||||||||||||||||||
|
||||||||||||||||||||||||||||
Philip Morris International, Inc. Call | USD | 97.500 | 5/20/16 | USD | (100) | 11,446 | (19,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
PPL Corp. Call | USD | 38.000 | 5/20/16 | USD | (1,500) | 77,463 | (67,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Procter & Gamble Co. (The) Call | USD | 82.500 | 6/17/16 | USD | (150) | 7,669 | (7,650) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Procter & Gamble Co. (The) Call | USD | 82.500 | 5/20/16 | USD | (275) | 27,048 | (6,050) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Procter & Gamble Co. (The) Call | USD | 83.000 | 5/20/16 | USD | (125) | 15,470 | (1,625) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
R.R. Donnelley & Sons Co. Call | USD | 18.000 | 5/20/16 | USD | (250) | 6,115 | (5,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
R.R. Donnelley & Sons Co. Call | USD | 17.000 | 5/20/16 | USD | (495) | 25,566 | (28,215) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Staples, Inc. Call | USD | 11.000 | 5/20/16 | USD | (800) | 66,666 | (40,800) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Staples, Inc. Call | USD | 12.000 | 5/20/16 | USD | (1,000) | 56,999 | (30,000) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Staples, Inc. Call | USD | 10.000 | 6/17/16 | USD | (325) | 26,474 | (32,500) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
United Continental Holdings, Inc. Call | USD | 55.500 | 5/20/16 | USD | (50) | 7,098 | (125) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Walgreens Boots Alliance, Inc. Call | USD | 85.000 | 5/20/16 | USD | (30) | 3,599 | (180) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Wal-Mart Stores, Inc. Call | USD | 72.500 | 5/20/16 | USD | (35) | 804 | (140) | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Williams Cos., Inc. (The) Call | USD | 17.500 | 5/20/16 | USD | (250) | 31,739 | (64,750) | |||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total of Exchange-Traded Options Written | $ | 7,902,755 | $ | (7,780,250) | ||||||||||||||||||||||||
|
|
See accompanying Notes to Financial Statements.
19 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES April 29, 20161 Unaudited
|
||||
Assets | ||||
Investments, at valuesee accompanying statement of investments: | ||||
Unaffiliated companies (cost $4,213,526,369) | $ | 4,567,808,705 | ||
Affiliated companies (cost $45,269,182) | 19,656,075 | |||
|
|
|||
4,587,464,780 | ||||
|
||||
Cash | 7,703,388 | |||
|
||||
Receivables and other assets: | ||||
Investments sold | 16,541,177 | |||
Interest, dividends and principal paydowns | 8,655,879 | |||
Shares of beneficial interest sold | 2,316,309 | |||
Other | 310,347 | |||
|
|
|||
Total assets
|
|
4,622,991,880
|
| |
|
||||
Liabilities | ||||
Options written, at value (premiums received $7,902,755) | 7,780,250 | |||
|
||||
Payables and other liabilities: | ||||
Investments purchased | 18,460,820 | |||
Shares of beneficial interest redeemed | 11,282,439 | |||
Distribution and service plan fees | 827,319 | |||
Trustees compensation | 372,680 | |||
Shareholder communications | 26,937 | |||
Dividends | 477 | |||
Other | 44,480 | |||
|
|
|||
Total liabilities
|
|
38,795,402
|
| |
|
||||
Net Assets | $ | 4,584,196,478 | ||
|
|
|||
|
||||
Composition of Net Assets | ||||
Par value of shares of beneficial interest | $ | 18,095 | ||
|
||||
Additional paid-in capital | 4,670,325,942 | |||
|
||||
Accumulated net investment loss | (53,123,172) | |||
|
||||
Accumulated net realized loss on investments and foreign currency transactions | (361,814,683) | |||
|
||||
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies | 328,790,296 | |||
|
|
|||
Net Assets | $ | 4,584,196,478 | ||
|
|
20 OPPENHEIMER EQUITY INCOME FUND
|
||||
Net Asset Value Per Share | ||||
Class A Shares: | ||||
Net asset value and redemption price per share (based on net assets of $3,048,746,793 and 115,211,932 shares of beneficial interest outstanding) | $26.46 | |||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $28.07 | |||
|
||||
Class B Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $84,253,625 and 3,956,745 shares of beneficial interest outstanding) | $21.29 | |||
|
||||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $730,845,314 and 34,284,192 shares of beneficial interest outstanding) | $21.32 | |||
|
||||
Class I Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $156,521,610 and 5,923,282 shares of beneficial interest outstanding) | $26.42 | |||
|
||||
Class R Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $154,573,097 and 6,095,472 shares of beneficial interest outstanding) | $25.36 | |||
|
||||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $409,256,039 and 15,480,991 shares of beneficial interest outstanding) | $26.44 |
1. April 29, 2016 represents the last day of the Funds reporting period. See Note 2 of the accompanying Notes.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER EQUITY INCOME FUND
STATEMENT OF OPERATIONS For the Six Months Ended April 29, 20161 Unaudited
|
||||
Investment Income | ||||
Dividends: | ||||
Unaffiliated companies (net of foreign withholding taxes of $846,257) | $ | 83,584,266 | ||
Affiliated companies | 25,281 | |||
|
||||
Interest | 7,031,546 | |||
|
|
|||
Total investment income |
|
90,641,093
|
| |
|
||||
Expenses | ||||
Management fees | 13,348,502 | |||
|
||||
Distribution and service plan fees: | ||||
Class A | 3,830,275 | |||
Class B | 461,146 | |||
Class C | 3,848,864 | |||
Class R | 391,429 | |||
|
||||
Transfer and shareholder servicing agent fees: | ||||
Class A | 3,487,783 | |||
Class B | 101,544 | |||
Class C | 848,072 | |||
Class I | 21,548 | |||
Class R | 173,283 | |||
Class Y | 523,637 | |||
|
||||
Shareholder communications: | ||||
Class A | 24,785 | |||
Class B | 2,369 | |||
Class C | 7,160 | |||
Class I | 135 | |||
Class R | 956 | |||
Class Y | 2,968 | |||
|
||||
Trustees compensation | 49,269 | |||
|
||||
Borrowing fees | 46,648 | |||
|
||||
Custodian fees and expenses | 30,961 | |||
|
||||
Other | 226,952 | |||
|
|
|||
Total expenses | 27,428,286 | |||
Less waivers and reimbursements of expenses | (8,873) | |||
|
|
|||
Net expenses |
|
27,419,413
|
| |
|
||||
Net Investment Income | 63,221,680 |
22 OPPENHEIMER EQUITY INCOME FUND
|
||||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) on: | ||||
Investments from: | ||||
Unaffiliated companies (includes premiums on options exercised) |
$ | (274,851,149) | ||
Affiliated companies |
(17,664,940) | |||
Closing and expiration of option contracts written | 27,090,321 | |||
Foreign currency transactions | 49 | |||
Short positions | (260,798) | |||
|
|
|||
Net realized loss | (265,686,517) | |||
|
||||
Net change in unrealized appreciation/depreciation on: | ||||
Investments | (88,183,935) | |||
Translation of assets and liabilities denominated in foreign currencies | 750 | |||
Option contracts written | (3,832,672) | |||
|
|
|||
Net change in unrealized appreciation/depreciation |
|
(92,015,857)
|
| |
|
||||
Net Decrease in Net Assets Resulting from Operations | $ | (294,480,694) | ||
|
|
1. April 29, 2016 represents the last day of the Funds reporting period. See Note 2 of the accompanying Notes.
See accompanying Notes to Financial Statements.
23 OPPENHEIMER EQUITY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended April 29, 2016 (Unaudited)1 |
Year Ended October 30, 20151 |
|||||||
|
||||||||
Operations | ||||||||
Net investment income | $ | 63,221,680 | $ | 161,296,793 | ||||
|
||||||||
Net realized gain (loss) | (265,686,517) | 333,063,218 | ||||||
|
||||||||
Net change in unrealized appreciation/depreciation | (92,015,857) | (705,461,429) | ||||||
|
|
|||||||
Net decrease in net assets resulting from operations |
|
(294,480,694)
|
|
|
(211,101,418)
|
| ||
|
||||||||
Dividends and/or Distributions to Shareholders | ||||||||
Dividends from net investment income: | ||||||||
Class A | (76,321,567) | (100,198,924) | ||||||
Class B | (2,412,254) | (3,249,062) | ||||||
Class C | (20,106,428) | (23,609,598) | ||||||
Class I | (3,620,610) | (4,289,653) | ||||||
Class R | (3,705,992) | (4,626,028) | ||||||
Class Y | (12,541,305) | (18,786,696) | ||||||
|
|
|||||||
|
(118,708,156)
|
|
|
(154,759,961)
|
| |||
|
||||||||
Distributions from net realized gain: | ||||||||
Class A | (176,533,848) | (214,855,302) | ||||||
Class B | (6,392,738) | (9,641,936) | ||||||
Class C | (52,678,428) | (63,633,461) | ||||||
Class I | (7,275,438) | (6,593,376) | ||||||
Class R | (8,925,712) | (11,001,153) | ||||||
Class Y | (28,393,134) | (36,431,935) | ||||||
|
|
|||||||
|
(280,199,298)
|
|
|
(342,157,163)
|
| |||
|
||||||||
Beneficial Interest Transactions | ||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: | ||||||||
Class A | (150,345,404) | (33,476,880) | ||||||
Class B | (15,075,283) | (26,564,049) | ||||||
Class C | (53,304,112) | 22,253,643 | ||||||
Class I | 27,268,540 | 37,252,125 | ||||||
Class R | (216,355) | (6,100,152) | ||||||
Class Y | (119,465,681) | (16,724,422) | ||||||
|
|
|||||||
|
(311,138,295)
|
|
|
(23,359,735)
|
| |||
|
||||||||
Net Assets | ||||||||
Total decrease | (1,004,526,443) | (731,378,277) | ||||||
|
||||||||
Beginning of period | 5,588,722,921 | 6,320,101,198 | ||||||
|
|
|||||||
End of period (including accumulated net investment income (loss) of ($53,123,172) and $2,363,304, respectively) | $ | 4,584,196,478 | $ | 5,588,722,921 | ||||
|
|
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes.
See accompanying Notes to Financial Statements.
24 OPPENHEIMER EQUITY INCOME FUND
Class A | Six Months Ended April 29, 2016 (Unaudited)1 |
Year Ended October 30, 20151 |
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 | ||||||||
Per Share Operating Data |
||||||||||||||
Net asset value, beginning of period | $29.99 | $33.60 | $31.35 | $25.80 | $22.95 | $22.87 | ||||||||
Income (loss) from investment operations: | ||||||||||||||
Net investment income2 | 0.36 | 0.87 | 0.78 | 0.75 | 0.61 | 0.51 | ||||||||
Net realized and unrealized gain (loss) | (1.78) | (1.92) | 3.50 | 5.89 | 2.97 | 0.11 | ||||||||
Total from investment operations | (1.42) | (1.05) | 4.28 | 6.64 | 3.58 | 0.62 | ||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||
Dividends from net investment income | (0.64) | (0.81) | (0.92) | (0.82) | (0.73) | (0.54) | ||||||||
Distributions from net realized gain | (1.47) | (1.75) | (1.11) | (0.27) | 0.00 | 0.00 | ||||||||
Total dividends and/or distributions to shareholders | (2.11) | (2.56) | (2.03) | (1.09) | (0.73) | (0.54) | ||||||||
Net asset value, end of period | $26.46 | $29.99 | $33.60 | $31.35 | $25.80 | $22.95 | ||||||||
Total Return, at Net Asset Value3 | (4.81)% | (3.45)% | 14.19% | 26.57% | 15.94% | 2.64% | ||||||||
Ratios/Supplemental Data |
||||||||||||||
Net assets, end of period (in thousands) | $3,048,747 | $3,641,622 | $4,121,447 | $3,748,273 | $2,494,276 | $2,116,802 | ||||||||
Average net assets (in thousands) | $3,183,258 | $4,016,231 | $4,041,525 | $3,048,993 | $2,276,255 | $1,591,296 | ||||||||
Ratios to average net assets:4 | ||||||||||||||
Net investment income | 2.74% | 2.73% | 2.42% | 2.62% | 2.51% | 2.13% | ||||||||
Expenses excluding specific expenses listed below | 1.03% | 1.01% | 1.00% | 1.01% | 1.06% | 1.09% | ||||||||
Interest and fees from borrowings | 0.00%5 | 0.00%5 | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Total expenses6 | 1.03% | 1.01% | 1.00% | 1.01% | 1.06% | 1.09% | ||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.03% | 1.01% | 1.00% | 1.01% | 1.06% | 1.09% | ||||||||
Portfolio turnover rate | 20% | 43% | 40% | 31% | 30% | 37%7 |
25 OPPENHEIMER EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Less than 0.005%.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended April 29, 2016 | 1.03 | % | ||||
Year Ended October 30, 2015 | 1.01 | % | ||||
Year Ended October 31, 2014 | 1.00 | % | ||||
Year Ended October 31, 2013 | 1.01 | % | ||||
Year Ended October 31, 2012 | 1.06 | % | ||||
Year Ended October 31, 2011 | 1.09 | % |
7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||
|
||||||||
Year Ended October 31, 2011 | $ | $68,139,011 |
See accompanying Notes to Financial Statements.
26 OPPENHEIMER EQUITY INCOME FUND
Class B | Six Months Ended April 29, 2016 (Unaudited)1 |
Year Ended October 30, 20151 |
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 | ||||||
Per Share Operating Data |
||||||||||||
Net asset value, beginning of period | $24.57 | $27.99 | $26.45 | $21.95 | $19.64 | $19.68 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income2 | 0.21 | 0.53 | 0.44 | 0.41 | 0.32 | 0.25 | ||||||
Net realized and unrealized gain (loss) | (1.46) | (1.58) | 2.93 | 4.98 | 2.55 | 0.08 | ||||||
Total from investment operations | (1.25) | (1.05) | 3.37 | 5.39 | 2.87 | 0.33 | ||||||
Dividends and/or distributions to shareholders: | ||||||||||||
Dividends from net investment income | (0.56) | (0.62) | (0.72) | (0.62) | (0.56) | (0.37) | ||||||
Distributions from net realized gain | (1.47) | (1.75) | (1.11) | (0.27) | 0.00 | 0.00 | ||||||
Total dividends and/or distributions to shareholders | (2.03) | (2.37) | (1.83) | (0.89) | (0.56) | (0.37) | ||||||
Net asset value, end of period | $21.29 | $24.57 | $27.99 | $26.45 | $21.95 | $19.64 | ||||||
Total Return, at Net Asset Value3 | (5.19)% | (4.16)% | 13.28% | 25.35% | 14.90% | 1.61% | ||||||
Ratios/Supplemental Data |
||||||||||||
Net assets, end of period (in thousands) | $84,254 | $114,330 | $158,955 | $168,407 | $146,117 | $128,777 | ||||||
Average net assets (in thousands) | $92,624 | $140,806 | $166,435 | $155,005 | $138,448 | $96,706 | ||||||
Ratios to average net assets:4 | ||||||||||||
Net investment income | 1.99% | 2.02% | 1.64% | 1.72% | 1.56% | 1.20% | ||||||
Expenses excluding specific expenses listed below | 1.80% | 1.76% | 1.81% | 1.94% | 2.02% | 2.06% | ||||||
Interest and fees from borrowings | 0.00%5 | 0.00%5 | 0.00% | 0.00% | 0.00% | 0.00% | ||||||
Total expenses6 | 1.80% | 1.76% | 1.81% | 1.94% | 2.02% | 2.06% | ||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.80% | 1.76% | 1.81% | 1.94% | 2.02% | 2.02% | ||||||
Portfolio turnover rate | 20% | 43% | 40% | 31% | 30% | 37%7 |
27 OPPENHEIMER EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Less than 0.005%.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended April 29, 2016 | 1.80 | % | ||||
Year Ended October 30, 2015 | 1.76 | % | ||||
Year Ended October 31, 2014 | 1.81 | % | ||||
Year Ended October 31, 2013 | 1.94 | % | ||||
Year Ended October 31, 2012 | 2.02 | % | ||||
Year Ended October 31, 2011 | 2.06 | % |
7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||
|
||||||||
Year Ended October 31, 2011 | $ | $68,139,011 |
See accompanying Notes to Financial Statements.
28 OPPENHEIMER EQUITY INCOME FUND
Class C | Six Months Ended April 29, 2016 (Unaudited)1 |
Year Ended October 30, 20151 |
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 | ||||||||
Per Share Operating Data |
||||||||||||||
Net asset value, beginning of period | $24.59 | $28.03 | $26.50 | $21.99 | $19.68 | $19.72 | ||||||||
Income (loss) from investment operations: | ||||||||||||||
Net investment income2 | 0.21 | 0.51 | 0.44 | 0.45 | 0.35 | 0.28 | ||||||||
Net realized and unrealized gain (loss) | (1.45) | (1.57) | 2.94 | 5.00 | 2.55 | 0.09 | ||||||||
Total from investment operations | (1.24) | (1.06) | 3.38 | 5.45 | 2.90 | 0.37 | ||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||
Dividends from net investment income | (0.56) | (0.63) | (0.74) | (0.67) | (0.59) | (0.41) | ||||||||
Distributions from net realized gain | (1.47) | (1.75) | (1.11) | (0.27) | 0.00 | 0.00 | ||||||||
Total dividends and/or distributions to shareholders | (2.03) | (2.38) | (1.85) | (0.94) | (0.59) | (0.41) | ||||||||
Net asset value, end of period | $21.32 | $24.59 | $28.03 | $26.50 | $21.99 | $19.68 | ||||||||
Total Return, at Net Asset Value3 | (5.13)% | (4.20)% | 13.33% | 25.62% | 15.05% | 1.79% | ||||||||
Ratios/Supplemental Data |
||||||||||||||
Net assets, end of period (in thousands) | $730,845 | $906,696 | $1,012,404 | $803,867 | $458,291 | $365,942 | ||||||||
Average net assets (in thousands) | $773,846 | $1,005,459 | $932,089 | $607,483 | $408,320 | $269,739 | ||||||||
Ratios to average net assets:4 | ||||||||||||||
Net investment income | 1.98% | 1.96% | 1.64% | 1.83% | 1.72% | 1.36% | ||||||||
Expenses excluding specific expenses listed below | 1.79% | 1.76% | 1.76% | 1.77% | 1.85% | 1.86% | ||||||||
Interest and fees from borrowings | 0.00%5 | 0.00%5 | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Total expenses6 | 1.79% | 1.76% | 1.76% | 1.77% | 1.85% | 1.86% | ||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.79% | 1.76% | 1.76% | 1.77% | 1.85% | 1.86% | ||||||||
Portfolio turnover rate | 20% | 43% | 40% | 31% | 30% | 37%7 |
29 OPPENHEIMER EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Less than 0.005%.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended April 29, 2016 | 1.79 | % | ||||
Year Ended October 30, 2015 | 1.76 | % | ||||
Year Ended October 31, 2014 | 1.76 | % | ||||
Year Ended October 31, 2013 | 1.77 | % | ||||
Year Ended October 31, 2012 | 1.85 | % | ||||
Year Ended October 31, 2011 | 1.86 | % |
7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||
|
||||||||
Year Ended October 31, 2011 | $ | $68,139,011 |
See accompanying Notes to Financial Statements.
30 OPPENHEIMER EQUITY INCOME FUND
Class I | Six Months Ended April 29, 2016 (Unaudited)1 |
Year Ended October 30, 20151 |
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Period Ended October 31, 20122 | |||||
Per Share Operating Data |
||||||||||
Net asset value, beginning of period | $29.95 | $33.57 | $31.32 | $25.78 | $24.90 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income3 | 0.40 | 0.97 | 0.88 | 0.83 | 0.43 | |||||
Net realized and unrealized gain (loss) | (1.76) | (1.89) | 3.53 | 5.92 | 0.93 | |||||
Total from investment operations | (1.36) | (0.92) | 4.41 | 6.75 | 1.36 | |||||
Dividends and/or distributions to shareholders: | ||||||||||
Dividends from net investment income | (0.70) | (0.95) | (1.05) | (0.94) | (0.48) | |||||
Distributions from net realized gain | (1.47) | (1.75) | (1.11) | (0.27) | 0.00 | |||||
Total dividends and/or distributions to shareholders | (2.17) | (2.70) | (2.16) | (1.21) | (0.48) | |||||
Net asset value, end of period | $26.42 | $29.95 | $33.57 | $31.32 | $25.78 | |||||
Total Return, at Net Asset Value4 | (4.62)% | (3.01)% | 14.66% | 27.06% | 5.57% | |||||
Ratios/Supplemental Data |
||||||||||
Net assets, end of period (in thousands) | $156,521 | $145,585 | $125,157 | $59,332 | $10,147 | |||||
Average net assets (in thousands) | $144,623 | $145,869 | $87,786 | $34,913 | $414 | |||||
Ratios to average net assets:5 | ||||||||||
Net investment income | 3.11% | 3.05% | 2.73% | 2.85% | 2.73% | |||||
Expenses excluding specific expenses listed below | 0.60% | 0.58% | 0.59% | 0.61% | 0.63% | |||||
Interest and fees from borrowings | 0.00%6 | 0.00%6 | 0.00% | 0.00% | 0.00% | |||||
Total expenses7 | 0.60% | 0.58% | 0.59% | 0.61% | 0.63% | |||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.60% | 0.58% | 0.59% | 0.61% | 0.63% | |||||
Portfolio turnover rate | 20% | 43% | 40% | 31% | 30% |
31 OPPENHEIMER EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes.
2. For the period from February 28, 2012 (inception of offering) to October 31, 2012.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5. Annualized for periods less than one full year.
6. Less than 0.005%.
7. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended April 29, 2016 | 0.60 | % | ||||
Year Ended October 30, 2015 | 0.58 | % | ||||
Year Ended October 31, 2014 | 0.59 | % | ||||
Year Ended October 31, 2013 | 0.61 | % | ||||
Period Ended October 31, 2012 | 0.63 | % |
See accompanying Notes to Financial Statements.
32 OPPENHEIMER EQUITY INCOME FUND
Class R | Six Months April 29, 2016 |
Year Ended October 30, 20151 |
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Year Ended October 31, 2011 | ||||||||
Per Share Operating Data | ||||||||||||||
Net asset value, beginning of period | $28.83 | $32.41 | $30.31 | $24.99 | $22.25 | $22.21 | ||||||||
Income (loss) from investment operations: | ||||||||||||||
Net investment income2 | 0.31 | 0.76 | 0.66 | 0.63 | 0.49 | 0.41 | ||||||||
Net realized and unrealized gain (loss) | (1.70) | (1.86) | 3.38 | 5.70 | 2.89 | 0.08 | ||||||||
Total from investment operations | (1.39) | (1.10) | 4.04 | 6.33 | 3.38 | 0.49 | ||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||
Dividends from net investment income | (0.61) | (0.73) | (0.83) | (0.74) | (0.64) | (0.45) | ||||||||
Distributions from net realized gain | (1.47) | (1.75) | (1.11) | (0.27) | 0.00 | 0.00 | ||||||||
Total dividends and/or distributions to shareholders | (2.08) | (2.48) | (1.94) | (1.01) | (0.64) | (0.45) | ||||||||
Net asset value, end of period | $25.36 | $28.83 | $32.41 | $30.31 | $24.99 | $22.25 | ||||||||
Total Return, at Net Asset Value3 | (4.90)% | (3.72)% | 13.85% | 26.11% | 15.51% | 2.14% | ||||||||
Ratios/Supplemental Data | ||||||||||||||
Net assets, end of period (in thousands) | $154,573 | $176,646 | $205,039 | $182,858 | $124,081 | $96,121 | ||||||||
Average net assets (in thousands) | $158,238 | $195,901 | $199,409 | $150,952 | $111,920 | $73,231 | ||||||||
Ratios to average net assets:4 | ||||||||||||||
Net investment income | 2.47% | 2.47% | 2.11% | 2.27% | 2.08% | 1.73% | ||||||||
Expenses excluding specific expenses listed below | 1.29% | 1.26% | 1.30% | 1.36% | 1.48% | 1.55% | ||||||||
Interest and fees from borrowings | 0.00%5 | 0.00%5 | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Total expenses6 | 1.29% | 1.26% | 1.30% | 1.36% | 1.48% | 1.55% | ||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.29% | 1.26% | 1.30% | 1.36% | 1.48% | 1.50% | ||||||||
Portfolio turnover rate | 20% | 43% | 40% | 31% | 30% | 37%7 |
33 OPPENHEIMER EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Less than 0.005%.
6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended April 29, 2016 | 1.29 | % | ||||
Year Ended October 30, 2015 | 1.26 | % | ||||
Year Ended October 31, 2014 | 1.30 | % | ||||
Year Ended October 31, 2013 | 1.36 | % | ||||
Year Ended October 31, 2012 | 1.48 | % | ||||
Year Ended October 31, 2011 | 1.55 | % |
7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||
Year Ended October 31, 2011 | $ | $68,139,011 |
See accompanying Notes to Financial Statements.
34 OPPENHEIMER EQUITY INCOME FUND
Class Y | Six Months April 29, 2016 |
Year Ended 20151 |
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
Year Ended October 31, 2012 |
Period Ended October 31, 20112 |
||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $29.96 | $33.58 | $31.34 | $25.79 | $22.94 | $25.76 | ||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income3 | 0.40 | 0.93 | 0.84 | 0.84 | 0.66 | 0.36 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.78) | (1.91) | 3.52 | 5.89 | 2.99 | (2.78) | ||||||||||||||||||
Total from investment operations | (1.38) | (0.98) | 4.36 | 6.73 | 3.65 | (2.42) | ||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (0.67) | (0.89) | (1.01) | (0.91) | (0.80) | (0.40) | ||||||||||||||||||
Distributions from net realized gain | (1.47) | (1.75) | (1.11) | (0.27) | 0.00 | 0.00 | ||||||||||||||||||
Total dividends and/or distributions to shareholders | (2.14) | (2.64) | (2.12) | (1.18) | (0.80) | (0.40) | ||||||||||||||||||
Net asset value, end of period | $26.44 | $29.96 | $33.58 | $31.34 | $25.79 | $22.94 | ||||||||||||||||||
Total Return, at Net Asset Value4 | (4.66)% | (3.23)% | 14.46% | 26.97% | 16.30% | (9.45)% | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $409,256 | $603,844 | $697,099 | $361,819 | $200,436 | $109,193 | ||||||||||||||||||
Average net assets (in thousands) | $476,978 | $682,611 | $487,585 | $258,619 | $131,940 | $50,333 | ||||||||||||||||||
Ratios to average net assets:5 | ||||||||||||||||||||||||
Net investment income | 3.03% | 2.93% | 2.60% | 2.89% | 2.73% | 2.32% | ||||||||||||||||||
Expenses excluding specific expenses listed below | 0.79% | 0.76% | 0.75% | 0.71% | 0.76% | 0.80% | ||||||||||||||||||
Interest and fees from borrowings | 0.00%6 | 0.00%6 | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||||||||||
Total expenses7 | 0.79% | 0.76% | 0.75% | 0.71% | 0.76% | 0.80% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.79% | 0.76% | 0.75% | 0.71% | 0.76% | 0.80% | ||||||||||||||||||
Portfolio turnover rate | 20% | 43% | 40% | 31% | 30% | 37%8 |
35 OPPENHEIMER EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS Continued
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2 of the accompanying Notes
2. For the period from February 28, 2011 (inception of offering) to October 31, 2011.
3. Per share amounts calculated based on the average shares outstanding during the period.
4. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5. Annualized for periods less than one full year.
6. Less than 0.005%.
7. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:
Six Months Ended April 29, 2016 | 0.79 | % | ||||
Year Ended October 30, 2015 | 0.76 | % | ||||
Year Ended October 31, 2014 | 0.75 | % | ||||
Year Ended October 31, 2013 | 0.71 | % | ||||
Year Ended October 31, 2012 | 0.76 | % | ||||
Period Ended October 31, 2011 | 0.80 | % |
8. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||
Period Ended October 31, 2011 | $ | $68,139,011 |
See accompanying Notes to Financial Statements.
36 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS April 29, 2016 Unaudited
1. Organization
Oppenheimer Equity Income Fund (the Fund) is a diversified open-end management investment company registered under the Investment Company Act of 1940 (1940 Act), as amended. The Funds investment objective is to seek total return. The Funds investment adviser is OFI Global Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser). The Manager has entered into a sub-advisory agreement with OFI.
The Fund offers Class A, Class C, Class I, Class R and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds are allowed. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class R shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class I and Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class I and Class Y shares. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, B, C and R shares have separate distribution and/or service plans under which they pay fees. Class I and Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies followed in the Funds preparation of financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP).
2. Significant Accounting Policies
Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.
Reporting Period End Date. The last day of the Funds reporting period is the last day the New York Stock Exchange was open for trading during the period. The Funds financial statements have been presented through that date to maintain consistency with the Funds net asset value calculations used for shareholder transactions.
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.
37 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. Significant Accounting Policies (Continued)
dollars 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. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees.
Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Funds Statement of Operations.
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. GAAP, are recorded on the ex-dividend date. Income distributions, if any, are declared and paid quarterly. Capital gain distributions, if any, are declared and paid annually.
The tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the Funds fiscal year end may ultimately be categorized as a tax return of capital.
Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
Return of Capital Estimates. Distributions received from the Funds investments in Master Limited Partnerships (MLPs) and Real Estate Investments Trusts (REITs), generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates. Such estimates are based on historical information available
38 OPPENHEIMER EQUITY INCOME FUND
2. Significant Accounting Policies (Continued)
from each MLP, REIT and other industry sources. These estimates may subsequently be revised based on information received from MLPs and REITs after their tax reporting periods are concluded.
Custodian Fees. Custodian fees and expenses in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, based on the negative rolling average balance at an average Federal Funds Rate plus 0.50%. The Reduction to custodian expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications. The Funds organizational documents provide current and former Trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds tax return filings generally remains open for the three preceding fiscal reporting period ends. The Fund has analyzed its tax positions for the fiscal year ended October 30, 2015, including open tax years, and does not believe there are any uncertain tax positions requiring recognition in the Funds financial statements.
During the fiscal year ended October 30, 2015, the Fund utilized $21,332,975 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had straddle losses of $27,371,055. Details of the fiscal year ended October 30, 2015 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.
Expiring | ||||
2017 | $ | 41,989,550 |
39 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. Significant Accounting Policies (Continued)
At period end, it is estimated that the capital loss carryforwards would be $41,989,550 expiring by 2017 and $265,686,517, which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the reporting period, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains.
Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains are determined in accordance with federal income tax requirements, which may differ from the character of net investment income or net realized gains presented in those financial statements in accordance with U.S. GAAP. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes at period end are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities | $ | 4,299,833,652 | ||
Federal tax cost of other investments | (7,902,755) | |||
|
|
|||
Total federal tax cost | $ | 4,291,930,897 | ||
|
|
|||
Gross unrealized appreciation | $ | 611,677,806 | ||
Gross unrealized depreciation | (323,925,611) | |||
|
|
|||
Net unrealized appreciation | $ | 287,752,195 | ||
|
|
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
3. Securities Valuation
The Fund calculates the net asset value of its shares as of 4:00 P.M. Eastern time, on each day the New York Stock Exchange (the Exchange) is open for trading, except in the case of a scheduled early closing of the Exchange, in which case the Fund will calculate net asset value of the shares as of the scheduled early closing time of the Exchange.
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
40 OPPENHEIMER EQUITY INCOME FUND
3. Securities Valuation (Continued)
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.
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 mean between the bid and asked price on the principal exchange or, if not available from the principal 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) a bid from the principal exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer. 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) 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.
41 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
3. Securities Valuation (Continued)
Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.
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. | |
| ||
Swaps | Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates. |
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
42 OPPENHEIMER EQUITY INCOME FUND
3. Securities Valuation (Continued)
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).
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The Fund classifies each of its investments in those investment companies which are publicly offered and reported on an exchange as Level 1, and those investment companies which are not publicly offered are not assigned a level, without consideration as to the classification level of the specific investments held by those investment companies.
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities at period end 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 |
$ | 449,992,735 | $ | | $ | | $ | 449,992,735 | ||||||||
Consumer Staples |
230,968,425 | | | 230,968,425 | ||||||||||||
Energy |
368,091,482 | | | 368,091,482 | ||||||||||||
Financials |
1,436,190,295 | | | 1,436,190,295 | ||||||||||||
Health Care |
487,295,411 | | | 487,295,411 | ||||||||||||
Industrials |
240,701,255 | | | 240,701,255 |
43 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
3. Securities Valuation (Continued)
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
|
||||||||||||||||
Common Stocks (Continued) |
||||||||||||||||
Information Technology |
$ | 370,963,867 | $ | | $ | | $ | 370,963,867 | ||||||||
Materials |
77,283,100 | | | 77,283,100 | ||||||||||||
Telecommunication Services |
137,682,600 | | | 137,682,600 | ||||||||||||
Utilities |
115,875,700 | | | 115,875,700 | ||||||||||||
Preferred Stocks |
344,017,240 | 51,586,777 | | 395,604,017 | ||||||||||||
Rights, Warrants and Certificates |
95,375 | | | 95,375 | ||||||||||||
Mortgage-Backed Obligations |
| 1,630,530 | | 1,630,530 | ||||||||||||
Non-Convertible Corporate Bonds and Notes |
| 39,870,914 | | 39,870,914 | ||||||||||||
Convertible Corporate Bonds and Notes |
| 225,988,941 | | 225,988,941 | ||||||||||||
Structured Security |
| 9,230,133 | | 9,230,133 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
$ | 4,259,157,485 | $ | 328,307,295 | $ | | $ | 4,587,464,780 | ||||||||
|
|
|||||||||||||||
Liabilities Table |
||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Options written, at value |
$ | (7,780,250) | $ | | $ | | $ | (7,780,250) | ||||||||
|
|
|||||||||||||||
Total Liabilities |
$ | (7,780,250) | $ | | $ | | $ | (7,780,250) | ||||||||
|
|
Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contracts value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.
The table below shows the transfers between Level 2 and Level 3. The Funds policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
Transfers into Level 2* |
Transfers out of Level 3* |
|||||||
|
||||||||
Assets Table |
||||||||
Investments, at Value: |
||||||||
Non-Convertible Corporate Bonds and Notes |
$ | 773,453 | $ | (773,453) | ||||
|
|
|||||||
Total Assets |
$ | 773,453 | $ | (773,453) | ||||
|
|
* Transferred from Level 3 to Level 2 due to the availability of market data for this security.
4. Investments and Risks
Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (Affiliated Funds). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services
44 OPPENHEIMER EQUITY INCOME FUND
4. Investments and Risks (Continued)
to, the Affiliated Funds. When applicable, the Funds investments in Affiliated Funds are included in the Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds expenses, including their 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 the Affiliated Funds.
Each of the Affiliated Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Affiliated Fund than in another, the Fund will have greater exposure to the risks of that Affiliated Fund.
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in a money market Affiliated 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 or for defensive purposes. IMMF is regulated as a money market fund under the Investment Company Act of 1940, as amended.
Master Limited Partnerships (MLPs). MLPs issue common units that represent an equity ownership interest in a partnership and provide limited voting rights. MLP common units are registered with the Securities and Exchange Commission (SEC), and are freely tradable on securities exchanges such as the NYSE and the NASDAQ Stock Market (NASDAQ), or in the over-the-counter (OTC) market. An MLP consists of one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. MLP common unit holders have a limited role in the partnerships operations and management. The Fund, as a limited partner, normally would not be liable for the debts of the MLP beyond the amounts the Fund has contributed, but would not be shielded to the same extent that a shareholder of a corporation would be. In certain circumstances creditors of an MLP would have the right to seek return of capital distributed to a limited partner. This right of an MLPs creditors would continue after the Fund sold its investment in the MLP.
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. The Fund records a realized gain or loss when a structured security is sold or matures.
Equity Security Risk. Stocks and other equity securities fluctuate in price. The value of the Funds portfolio may be affected by changes in the equity markets generally. Equity markets
45 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
4. Investments and Risks (Continued)
may experience significant short-term volatility and may fall sharply at times. Different markets may behave differently from each other and U.S. equity markets may move in the opposite direction from one or more foreign stock markets. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.
The prices of individual equity securities generally do not all move in the same direction at the same time and a variety of factors can affect the price of a particular companys securities. These factors may include, but are not limited to, poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of the companys sector or industry, or changes in government regulations affecting the company or its industry.
5. Market Risk Factors
The Funds investments in securities and/or financial derivatives may expose the Fund to various 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 of debt to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield debt securities are subject to credit risk to a greater extent than lower-yield, higher-quality securities.
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.
46 OPPENHEIMER EQUITY INCOME FUND
6. Use of Derivatives
The Funds investment objective not only permits the Fund to purchase investment securities, it also allows the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, variance 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. These instruments 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. Such contracts may be entered into through a bilateral over-the-counter (OTC) transaction, or through a securities or futures exchange and cleared through a clearinghouse.
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 due to unanticipated changes in the market risk factors and the overall market. 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. 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. Some derivatives have the potential for unlimited loss, regardless of the size of the Funds initial investment.
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.
The Funds actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.
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, currency or other underlying financial instrument at a fixed price, upon exercise of the option.
Options can be traded through an exchange or through a privately negotiated arrangement with a dealer in an OTC transaction. Options traded through an exchange are generally cleared through a clearinghouse (such as The Options Clearing Corporation). 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. 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
47 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Use of Derivatives (Continued)
loss is reported in the Statement of Operations.
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 reporting period, the Fund had an ending monthly average market value of $1,144,095 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. Securities held in collateral 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 market price of the security increases and if the option is exercised, the Fund must either purchase the security at a higher price for delivery or, if the Fund owns the underlying security, give up the opportunity for profit. 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 reporting period, the Fund had an ending monthly average market value of $3,780,943 and $6,670,825 on written call options and written put options, respectively.
Additional associated risks to the Fund include counterparty credit risk and liquidity risk.
Written option activity for the reporting period was as follows:
Number of Contracts | Amount of Premiums | |||||||
|
||||||||
Options outstanding as of October 30, 2015 |
78,716 | $ | 15,606,997 | |||||
Options written |
364,597 | 44,059,789 | ||||||
Options closed or expired |
(225,924 | ) | (27,090,321) | |||||
Options exercised |
(142,123 | ) | (24,673,710) | |||||
|
|
|||||||
Options outstanding as of April 29, 2016 |
75,266 | $ | 7,902,755 | |||||
|
|
Counterparty Credit Risk. Derivative positions are subject to the risk that the counterparty will not fulfill its obligation to the Fund. The Fund intends to enter into derivative transactions with counterparties that the Manager believes to be creditworthy at the time of the transaction.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
48 OPPENHEIMER EQUITY INCOME FUND
6. Use of Derivatives (Continued)
Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
The Funds risk of loss from counterparty credit risk on exchange-traded derivatives cleared through a clearinghouse and for centrally cleared swaps is generally considered lower than as compared to OTC derivatives. However, counterparty credit risk exists with respect to initial and variation margin deposited/paid by the Fund that is held in futures commission merchant, broker and/or clearinghouse accounts for such exchange-traded derivatives and for centrally cleared swaps.
With respect to centrally cleared swaps, such transactions will be submitted for clearing, and if cleared, will be held in accounts at futures commission merchants or brokers that are members of clearinghouses. While brokers, futures commission merchants and clearinghouses are required to segregate customer margin from their own assets, in the event that a broker, futures commission merchant or clearinghouse becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker, futures commission merchant or clearinghouse for all its customers, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the brokers, futures commission merchants or clearinghouses customers, potentially resulting in losses to the Fund.
There is the risk that a broker, futures commission merchant or clearinghouse will decline to clear a transaction on the Funds behalf, and the Fund may be required to pay a termination fee to the executing broker with whom the Fund initially enters into the transaction. Clearinghouses may also be permitted to terminate centrally cleared swaps at any time. The Fund is also subject to the risk that the broker or futures commission merchant will improperly use the Funds assets deposited/paid as initial or variation margin to satisfy payment obligations of another customer. In the event of a default by another customer of the broker or futures commission merchant, the Fund might not receive its variation margin payments from the clearinghouse, due to the manner in which variation margin payments are aggregated for all customers of the broker/futures commission merchant.
Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker, futures commission merchant or clearinghouse for exchange-traded and cleared derivatives, including centrally cleared swaps. Brokers, futures commission merchants and clearinghouses can ask for margin in excess of the regulatory minimum, or increase the margin amount, in certain circumstances.
For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral. Non-cash collateral pledged by the Fund, if any, is noted in the Statement of Investments. Generally, the amount of collateral due from or to a party must exceed a minimum transfer amount threshold (e.g. $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance.
The following table presents the valuations of derivative instruments by risk exposure as
49 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Use of Derivatives (Continued)
reported within the Statement of Assets and Liabilities at period end:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives Not Accounted for as Hedging Instruments |
Statement of Assets and Liabilities Location |
Value | Statement of Assets and Liabilities Location |
Value | ||||||||
|
||||||||||||
Equity contracts |
$ | | Options written, at value | $ | 7,780,250 |
The effect of derivative instruments on the Statement of Operations is as follows:
Amount of Realized Gain or (Loss) Recognized on Derivatives | ||||||||||||
|
||||||||||||
Derivatives Not Accounted for as Hedging Instruments |
Investment on options |
Closing and written |
Total | |||||||||
|
||||||||||||
Equity contracts |
$ (8,226,995) | $ | 27,090,321 | $ | 18,863,326 |
*Includes purchased option contracts and purchased swaption contracts, if any.
Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives | ||||||||||||
|
||||||||||||
Derivatives Not Accounted for as Hedging Instruments |
Investments* | Option contracts written |
Total | |||||||||
|
||||||||||||
Equity contracts |
$ 1,869,065 | $ (3,832,672) | $ (1,963,607) |
*Includes purchased option contracts and purchased swaption contracts, if any.
7. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $0.0001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
Six Months Ended April 29, 20161 | Year Ended October 30, 20151 | |||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||
Class A |
||||||||||||||||||
Sold |
8,490,916 | $ 228,566,856 | 17,948,814 | $ 573,641,204 | ||||||||||||||
Dividends and/or distributions reinvested |
8,866,774 | 238,002,696 | 9,296,214 | 295,462,515 | ||||||||||||||
Redeemed |
(23,574,254 | ) | (616,914,956 | ) | (28,466,931 | ) | (902,580,599 | ) | ||||||||||
Net decrease |
(6,216,564 | ) | $ (150,345,404 | ) | (1,221,903 | ) | $ (33,476,880 | ) | ||||||||||
50 OPPENHEIMER EQUITY INCOME FUND
7. Shares of Beneficial Interest (Continued)
Six Months Ended April 29, 20161 | Year Ended October 30, 20151 | |||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||
Class B |
||||||||||||||||||
Sold |
57,838 | $ 1,237,603 | 259,778 | $ 6,850,524 | ||||||||||||||
Dividends and/or distributions reinvested |
387,508 | 8,397,356 | 466,833 | 12,237,256 | ||||||||||||||
Redeemed |
(1,142,757 | ) | (24,710,242 | ) | (1,751,217 | ) | (45,651,829 | ) | ||||||||||
Net decrease |
(697,411 | ) | $ (15,075,283 | ) | (1,024,606 | ) | $ (26,564,049 | ) | ||||||||||
Class C |
||||||||||||||||||
Sold |
2,352,842 | $ 49,745,106 | 6,613,441 | $ 174,153,232 | ||||||||||||||
Dividends and/or distributions reinvested |
3,062,140 | 66,410,793 | 2,986,327 | 78,294,017 | ||||||||||||||
Redeemed |
(7,999,698 | ) | (169,460,011 | ) | (8,851,335 | ) | (230,193,606 | ) | ||||||||||
Net increase (decrease) |
(2,584,716 | ) | $ (53,304,112 | ) | 748,433 | $ 22,253,643 | ||||||||||||
Class I |
||||||||||||||||||
Sold |
1,348,181 | $ 34,525,294 | 2,104,272 | $ 67,688,864 | ||||||||||||||
Dividends and/or distributions reinvested |
378,538 | 10,133,401 | 314,104 | 9,950,568 | ||||||||||||||
Redeemed |
(663,629 | ) | (17,390,155 | ) | (1,285,907 | ) | (40,387,307 | ) | ||||||||||
Net increase |
1,063,090 | $ 27,268,540 | 1,132,469 | $ 37,252,125 | ||||||||||||||
Class R |
||||||||||||||||||
Sold |
726,664 | $ 18,340,562 | 1,419,708 | $ 43,550,318 | ||||||||||||||
Dividends and/or distributions reinvested |
460,848 | 11,861,375 | 478,474 | 14,646,378 | ||||||||||||||
Redeemed |
(1,218,586 | ) | (30,418,292 | ) | (2,098,747 | ) | (64,296,848 | ) | ||||||||||
Net decrease |
(31,074 | ) | $ (216,355 | ) | (200,565 | ) | $ (6,100,152 | ) | ||||||||||
Class Y |
||||||||||||||||||
Sold |
2,327,874 | $ 61,727,196 | 5,685,677 | $ 181,791,261 | ||||||||||||||
Dividends and/or distributions reinvested |
1,395,986 | 37,419,828 | 1,571,784 | 49,884,370 | ||||||||||||||
Redeemed |
(8,395,375 | ) | (218,612,705 | ) | (7,864,063 | ) | (248,400,053 | ) | ||||||||||
Net decrease |
(4,671,515 | ) | $ (119,465,681 | ) | (606,602 | ) | $ (16,724,422 | ) | ||||||||||
1. April 29, 2016 and October 30, 2015 represent the last business days of the Funds respective reporting periods. See Note 2.
8. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the reporting period were as follows:
Purchases | Sales | |||||||
|
||||||||
Investment securities |
$ | 991,003,383 | $1,596,858,816 | |||||
U.S. government and government agency securities |
| 806,215 |
9. Fees and Other Transactions with Affiliates
Management Fees. Under the investment advisory agreement, the Fund pays the Manager
51 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
9. Fees and Other Transactions with Affiliates (Continued)
a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
Fee Schedule | ||||
|
||||
Up to $400 million |
0.70% | |||
Next $400 million |
0.68 | |||
Next $400 million |
0.65 | |||
Next $400 million |
0.60 | |||
Next $400 million |
0.55 | |||
Next $3.0 billion |
0.50 | |||
Next $5.0 billion |
0.45 | |||
Over $10.0 billion |
0.42 |
The Funds effective management fee for the reporting period was 0.56% of average annual net assets before any applicable waivers.
Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
Transfer Agent Fees. OFI Global (the Transfer Agent) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.
Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the Sub-Transfer Agent), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the Funds Independent Trustees. Benefits are based on years of service and fees paid to each Trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active Independent Trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the reporting period, the Funds projected benefit obligations, payments to retired Trustees and accumulated liability were as follows:
52 OPPENHEIMER EQUITY INCOME FUND
9. Fees and Other Transactions with Affiliates (Continued)
Projected Benefit Obligations Increased |
$ | 9,505 | ||
Payments Made to Retired Trustees |
31,762 | |||
Accumulated Liability as of April 29, 2016 |
187,402 |
The Funds Board of Trustees (Board) has adopted a compensation deferral plan for Independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of Trustees fees under the plan will not affect the net assets of the Fund and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Distribution and Service Plan for Class A Shares. The Fund has adopted a Distribution and Service Plan (the Plan) for Class A shares pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund pays a service fee to the Distributor at an annual rate of 0.25% of the daily net assets of Class A shares. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal services and maintenance of accounts of their customers that hold Class A shares. Under the Plan, the Fund may also pay an asset-based sales charge to the Distributor. However, the Funds Board has currently set the rate at zero. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.
Distribution and Service Plans for Class B, Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class B, Class C and Class R shares pursuant to Rule 12b-1 under the 1940 Act to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Funds Board of Trustees votes annually to approve their continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.
53 OPPENHEIMER EQUITY INCOME FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
9. Fees and Other Transactions with Affiliates (Continued)
Sales Charges. Front-end sales charges and CDSC do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
Six Months Ended | Class A Front-End Sales Charges Retained by Distributor |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B Contingent Deferred Sales Charges Retained by Distributor |
Class C Contingent Deferred Sales Charges Retained by Distributor |
Class R Contingent Deferred Sales Charges Retained by Distributor |
|||||||||||||||
|
||||||||||||||||||||
April 29, 2016 |
$511,332 | $6,030 | $54,385 | $30,877 | $ |
Waivers and Reimbursements of Expenses. 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. During the reporting period, the Manager waived fees and/or reimbursed the Fund $8,873 for IMMF management fees.
Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.
10. Borrowings and Other Financing
Securities Sold Short. The Fund sells securities that it does not own, and it will therefore be obligated to purchase such securities at a future date. Upon entering into a short position, the Fund is required to segregate cash or securities at its custodian which are pledged for the benefit of the lending broker and/or to deposit and pledge cash directly at the lending broker, with a value equal to a certain percentage, exceeding 100%, of the value of the securities that it sold short. Cash that has been segregated and pledged for this purpose will be disclosed on the Statement of Assets and Liabilities; securities that have been segregated and pledged for this purpose are disclosed as such in the Statement of Investments. The value of the open short position is recorded as a liability, and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the change in value of the open short position. The Fund records a realized gain or loss when the short position is closed out. By entering into short sales, the Fund bears the market risk of increases in value of the security sold short in excess of the proceeds received. Until the security is replaced, the Fund is required to pay the lender any dividend or interest earned. Dividend expense on short sales is treated as an expense in the Statement of Operations.
At period end, the Fund had no outstanding securities sold short.
Joint Credit Facility. A number of mutual funds managed by the Manager participate in a $1.28 billion revolving credit facility (the Facility) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with atypical redemption activity. Expenses and fees related to the Facility are paid by the participating funds and are disclosed
54 OPPENHEIMER EQUITY INCOME FUND
10. Borrowings and Other Financing (Continued)
separately or as other expenses on the Statement of Operations. The Fund did not utilize the Facility during the reporting period.
11. Pending Litigation
In 2009, several putative class action lawsuits were filed and later consolidated before the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (OFI), OppenheimerFunds Distributor, Inc. (OFDI), and Oppenheimer Rochester California Municipal Fund, a fund advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the California Fund), in connection with the California Funds investment performance. The plaintiffs asserted claims against OFI, OFDI and certain present and former trustees and officers of the California Fund under the federal securities laws, alleging, among other things, that the disclosure documents of the California Fund contained misrepresentations and omissions and the investment policies of the California Fund were not followed. Plaintiffs in the suit filed an amended complaint and defendants filed a motion to dismiss. In 2011, the court issued an order which granted in part and denied in part the defendants motion to dismiss. In 2012, plaintiffs filed a motion, which defendants opposed, to certify a class and appoint class representatives and class counsel. In March 2015, the court granted plaintiffs motion for class certification. In May 2015, the U.S. Court of Appeals for the Tenth Circuit vacated the class certification order and remanded the matter to the district court for further proceedings. In October 2015, the district court reaffirmed its order and determined that the suit will proceed as a class action. In December 2015, the Tenth Circuit denied defendants petition to appeal the district courts reaffirmed class certification order.
OFI and OFDI believe the suit is without merit; that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them in the suit; and that no estimate can yet be made as to the amount or range of any potential loss. Furthermore, OFI believes that the suit should not impair the ability of OFI or OFDI to perform their respective duties to the Fund and that the outcome of the suit should not have any material effect on the operations of any of the Oppenheimer funds.
55 OPPENHEIMER EQUITY INCOME FUND
PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (portfolio proxies) held by the Fund. A description of the Funds Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at www.oppenheimerfunds.com, and (iii) on the SECs website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SECs website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
56 OPPENHEIMER EQUITY INCOME FUND
DISTRIBUTION SOURCES Unaudited
For any distribution that took place over the Funds reporting period, the table below details on a per-share basis the percentage of the Funds total distribution payment amount that was derived from the following sources: net income, net profit from the sale of securities, and other capital sources. This information is based upon income and capital gains using generally accepted accounting principles as of the date of each distribution. For certain securities, such as Real Estate Investment Trusts and Master Limited Partnerships (MLPs), the percentages attributed to each category are estimated using historical information because the character of the amounts received from the REITs and MLPs in which the Fund invests is unknown until after the end of the calendar year. Because the Fund is actively managed, the relative amount of the Funds total distributions derived from various sources over the calendar year may change. Please note that this information should not be used for tax reporting purposes as the tax character of distributable income may differ from the amounts used for this notification. You will receive IRS tax forms in the first quarter of each calendar year detailing the actual amount of the taxable and non-taxable portion of distributions paid to you during the tax year.
For the most current information, please go to oppenheimerfunds.com. Select your Fund, then the Detailed tab; where Dividends are shown, the Funds latest pay date will be followed by the sources of any distribution, updated daily.
Fund Name | Pay Date |
Net Income | Net Profit from Sale |
Other Capital Sources |
||||||||||||
Oppenheimer Equity Income Fund |
12/8/15 | 9.0% | 41.9% | 49.1% | ||||||||||||
Oppenheimer Equity Income Fund |
3/24/16 | 98.1% | 0.0% | 1.9% |
57 OPPENHEIMER EQUITY INCOME FUND
OPPENHEIMER EQUITY INCOME FUND
Trustees and Officers | Brian F. Wruble, Chairman of the Board of Trustees and Trustee | |
Beth Ann Brown, Trustee | ||
Matthew P. Fink, Trustee | ||
Edmund P. Giambastiani, Jr., Trustee | ||
Elizabeth Krentzman, Trustee | ||
Mary F. Miller, Trustee | ||
Joel W. Motley, Trustee | ||
Joanne Pace, Trustee | ||
Daniel Vandivort, Trustee | ||
Arthur P. Steinmetz, Trustee, President and Principal Executive Officer | ||
Michael Levine, Vice President | ||
Cynthia Lo Bessette, Secretary and Chief Legal Officer | ||
Jennifer Sexton, Vice President and Chief Business Officer | ||
Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer | ||
Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer | ||
Manager | OFI Global Asset Management, Inc. | |
Sub-Adviser | OppenheimerFunds, Inc. | |
Distributor | OppenheimerFunds Distributor, Inc. | |
Transfer and Shareholder | OFI Global Asset Management, Inc. | |
Servicing Agent | ||
Sub-Transfer Agent | Shareholder Services, Inc. | |
DBA OppenheimerFunds Services | ||
Independent Registered | KPMG LLP | |
Public Accounting Firm | ||
Legal Counsel | Kramer Levin Naftalis & Frankel LLP | |
The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm. |
© 2016 OppenheimerFunds, Inc. All rights reserved.
58 OPPENHEIMER EQUITY INCOME FUND
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
● Applications or other forms
● When you create a user ID and password for online account access
● When you enroll in eDocs Direct, our electronic document delivery service
● Your transactions with us, our affiliates or others
● A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited
● When you set up challenge questions to reset your password online
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
Copies of confirmations, account statements and other documents reporting activity in your fund accounts are made available to your financial advisor (as designated by you). We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
59 OPPENHEIMER EQUITY INCOME FUND
PRIVACY POLICY NOTICE Continued
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website. As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
● All transactions, including redemptions, exchanges and purchases, are secured by SSL and 256-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format.
● Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.
● You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated March 2015. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about this privacy policy, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
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63 OPPENHEIMER EQUITY INCOME FUND
Visit us at oppenheimerfunds.com for 24-hr access to account information and transactions or call us at 800.CALL OPP (800.225.5677) for 24-hr automated information and automated transactions. Representatives also available MonFri 8am-8pm ET. |
Visit Us | ||
oppenheimerfunds.com | ||
Call Us | ||
8002255677 | ||
Follow Us | ||
|
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. | |
225 Liberty Street, New York, NY 10281-1008 | ||
© 2016 OppenheimerFunds Distributor, Inc. All rights reserved. | ||
RS0835.001.0416 June 24, 2016 |
Item 2. Code of Ethics.
Not applicable to semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable to semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable to semiannual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
The Funds Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards
None
Item 11. Controls and Procedures.
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 4/29/2016, 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 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.
There have been no changes in the registrants internal controls over financial reporting that occurred during the registrants second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits.
(a) | (1) Not applicable to semiannual reports. |
(2) Exhibits attached hereto. |
(3) Not applicable. |
(b) | Exhibit attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Equity Income Fund
By: | /s/ Arthur P. Steinmetz | |
Arthur P. Steinmetz | ||
Principal Executive Officer | ||
Date: | 6/15/2016 |
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/ Arthur P. Steinmetz | |
Arthur P. Steinmetz | ||
Principal Executive Officer | ||
Date: | 6/15/2016 |
By: | /s/ Brian S. Petersen | |
Brian S. Petersen | ||
Principal Financial Officer | ||
Date: | 6/15/2016 |
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Arthur P. Steinmetz, certify that:
1. | I have reviewed this report on Form N-CSR of Oppenheimer Equity Income Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The 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 second fiscal quarter of the period covered by this report 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 Trustees (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the 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. |
Date: 6/15/2016
/s/ Arthur P. Steinmetz |
Arthur P. Steinmetz |
Principal Executive Officer |
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, Brian S. Petersen, certify that:
1. | I have reviewed this report on Form N-CSR of Oppenheimer Equity Income Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The 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 second fiscal quarter of the period covered by this report 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 Trustees (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the 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. |
Date: 6/15/2016
/s/ Brian S. Petersen |
Brian S. Petersen |
Principal Financial Officer |
EX-99.906CERT
Section 906 Certifications
CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Arthur P. Steinmetz, Principal Executive Officer, and Brian S. Petersen, Principal Financial Officer, of Oppenheimer Equity Income Fund (the Registrant), each certify to the best of his knowledge that:
1. | The Registrants periodic report on Form N-CSR for the period ended 4/29/2016 (the Form N-CSR) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission. |
Principal Executive Officer | Principal Financial Officer | |
Oppenheimer Equity Income Fund | Oppenheimer Equity Income Fund | |
/s/ Arthur P. Steinmetz | /s/ Brian S. Petersen | |
Arthur P. Steinmetz | Brian S. Petersen | |
Date: 6/15/2016 | Date: 6/15/2016 |
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