-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FKGwqlllDVQ536gE8w9EZ+1iJuLVuVYY3kyAK7dpg3bzeOAeYPsgt8J2YXtWCNRJ iw3EEfC3FaV75NIs9vlCuw== 0000935069-03-001672.txt : 20031222 0000935069-03-001672.hdr.sgml : 20031222 20031222112914 ACCESSION NUMBER: 0000935069-03-001672 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20031031 FILED AS OF DATE: 20031222 EFFECTIVENESS DATE: 20031222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER MULTI SECTOR INCOME TRUST CENTRAL INDEX KEY: 0000829801 IRS NUMBER: 133448960 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05473 FILM NUMBER: 031066801 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 N-CSR 1 ra0680_9443vef.txt RA0680_9443VEF 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 811-5473 Oppenheimer Multi-Sector Income Trust (Exact name of registrant as specified in charter) 6803 South Tucson Way, Centennial, Colorado 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. Two World Financial Center, New York, New York 10281-1008 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: October 31 Date of reporting period: November 1, 2002 - October 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. STATEMENT OF INVESTMENTS October 31, 2003 - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- U.S. Government Sector--5.7% - ----------------------------------------------------------------------------------- U.S. Government Obligations--5.7% Federal Home Loan Mortgage Corp. Unsec. Nts.: 4.50%, 1/15/13 1 $ 2,500,000 $ 2,469,285 4.50%, 7/15/13 2,500,000 2,449,993 5.50%, 7/15/06 1,870,000 2,016,819 - ----------------------------------------------------------------------------------- Federal National Mortgage Assn. Unsec. Nts.: 4.25%, 7/15/07 2,3 5,945,000 6,199,095 7.25%, 5/15/30 1,700,000 2,063,627 - ----------------------------------------------------------------------------------- Resolution Funding Corp. Federal Book Entry Principal Strips, 5.85%, 1/15/21 4 715,000 268,707 - ----------------------------------------------------------------------------------- U.S. Treasury Bonds, STRIPS, 5.99%, 11/15/18 1,4 300,000 135,450 ------------- Total U.S. Government Sector (Cost $15,921,366) 15,602,976 Shares - ----------------------------------------------------------------------------------- Corporate Sector--36.4% - ----------------------------------------------------------------------------------- Common Stocks--0.4% Capital Gaming International, Inc. 5,6 18 -- - ----------------------------------------------------------------------------------- Classic Cable, Inc. 5 793 -- - ----------------------------------------------------------------------------------- Covad Communications Group, Inc. 5 6,198 27,147 - ----------------------------------------------------------------------------------- Dobson Communications Corp., Cl. A 5 38,618 267,854 - ----------------------------------------------------------------------------------- Equinix, Inc. 5 6,573 119,629 - ----------------------------------------------------------------------------------- Globix Corp. 5 6,880 28,208 - ----------------------------------------------------------------------------------- ICO Global Communication Holdings Ltd. 5,6 24,061 13,234 - ----------------------------------------------------------------------------------- Manitowoc Co., Inc. (The) 173 3,754 - ----------------------------------------------------------------------------------- NTL, Inc. 5 3,879 239,451 - ----------------------------------------------------------------------------------- Orbital Sciences Corp. 5 651 5,983 - ----------------------------------------------------------------------------------- Pioneer Cos., Inc. 5 5,655 28,501 - ----------------------------------------------------------------------------------- Polymer Group, Inc., Cl. A 5 6,878 37,141 - ----------------------------------------------------------------------------------- Prandium, Inc. 5 14,499 1,015 - ----------------------------------------------------------------------------------- Star Gas Partners LP 220 5,108 - ----------------------------------------------------------------------------------- Sterling Chemicals, Inc. 5 250 4,313 - ----------------------------------------------------------------------------------- TVMAX Holdings, Inc. 5,6 2,500 -- - ----------------------------------------------------------------------------------- UGC Europe, Inc. 5 4,024 269,608 - ----------------------------------------------------------------------------------- WRC Media Corp. 5,6 676 14 - ----------------------------------------------------------------------------------- XO Communications, Inc. 5 1,091 5,837 ------------- 1,056,797
7 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Corporate Bonds and Notes--35.0% - ----------------------------------------------------------------------------------- Consumer Discretionary--11.0% - ----------------------------------------------------------------------------------- Auto Components--1.3% Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts., Series B, 2/15/10 $ 200,000 $ 216,000 - ----------------------------------------------------------------------------------- Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11 200,000 169,000 - ----------------------------------------------------------------------------------- Dana Corp., 9% Unsec. Nts., 8/15/11 600,000 673,500 - ----------------------------------------------------------------------------------- Dura Operating Corp.: 8.625% Sr. Nts., Series B, 4/15/12 400,000 408,000 9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 600,000 552,000 - ----------------------------------------------------------------------------------- Eagle-Picher, Inc., 9.75% Sr. Nts., 9/1/13 7 200,000 213,000 - ----------------------------------------------------------------------------------- Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 700,000 810,250 - ----------------------------------------------------------------------------------- Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 200,000 233,000 - ----------------------------------------------------------------------------------- Tenneco Automotive, Inc., 10.25% Sr. Sec. Nts., Series B, 7/15/13 100,000 111,000 - ----------------------------------------------------------------------------------- United Components, Inc., 9.375% Sr. Sub. Nts., 6/15/13 7 100,000 103,000 ------------- 3,488,750 - ----------------------------------------------------------------------------------- Automobiles--0.2% DirecTV Holdings LLC/DirecTV Financing Co., Inc., 8.375% Sr. Unsec. Nts., 3/15/13 400,000 452,000 - ----------------------------------------------------------------------------------- Hotels, Restaurants & Leisure--2.2% Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 6 400,000 158,000 - ----------------------------------------------------------------------------------- Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 250,000 271,250 - ----------------------------------------------------------------------------------- Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 200,000 219,500 - ----------------------------------------------------------------------------------- Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 5,6,8 5,500 -- - ----------------------------------------------------------------------------------- Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09 200,000 214,000 - ----------------------------------------------------------------------------------- Dominos, Inc., 8.25% Sr. Sub. Nts., 7/1/11 7 200,000 212,250 - ----------------------------------------------------------------------------------- Hilton Hotels Corp.: 7.625% Nts., 5/15/08 200,000 221,250 7.625% Nts., 12/1/12 200,000 222,250 - ----------------------------------------------------------------------------------- Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12 200,000 220,500 - ----------------------------------------------------------------------------------- John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B, 5/15/12 200,000 219,000 - ----------------------------------------------------------------------------------- Mandalay Resort Group, 10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07 500,000 578,750 - ----------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority: 6.375% Sr. Sub. Nts., 7/15/09 7 150,000 154,313 8.375% Sr. Sub. Nts., 7/1/11 400,000 439,000 - ----------------------------------------------------------------------------------- Penn National Gaming, Inc., 8.875% Sr. Sub. Nts., 3/15/10 300,000 328,125 - ----------------------------------------------------------------------------------- Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 200,000 205,000 - ----------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd., 8% Sr. Unsec. Nts., 5/15/10 150,000 162,000 - ----------------------------------------------------------------------------------- Six Flags, Inc.: 8.875% Sr. Nts., 2/1/10 250,000 238,750 9.75% Sr. Nts., 4/15/13 7 600,000 591,000 - ----------------------------------------------------------------------------------- Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr. Nts., 5/1/12 400,000 444,000 - ----------------------------------------------------------------------------------- Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub. Nts., 8/15/11 500,000 548,125 - ----------------------------------------------------------------------------------- Universal City Development Partners Ltd., 11.75% Sr. Nts., 4/1/10 7 200,000 232,250 - ----------------------------------------------------------------------------------- Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11% Sec. Nts., 6/15/10 200,000 231,750 ------------- 6,111,063
8 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Household Durables--1.3% Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 $500,000 $ 550,000 - ----------------------------------------------------------------------------------- D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 1 500,000 580,000 - ----------------------------------------------------------------------------------- K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12 300,000 328,500 - ----------------------------------------------------------------------------------- KB Home: 8.625% Sr. Sub. Nts., 12/15/08 500,000 556,250 9.50% Sr. Unsec. Sub. Nts., 2/15/11 500,000 557,500 - ----------------------------------------------------------------------------------- Meritage Corp., 9.75% Sr. Nts., 6/1/11 7 150,000 167,250 - ----------------------------------------------------------------------------------- Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 400,000 394,000 - ----------------------------------------------------------------------------------- Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 100,000 110,500 - ----------------------------------------------------------------------------------- WCI Communities, Inc., 9.125% Sr. Sub. Nts., 5/1/12 200,000 220,000 - ----------------------------------------------------------------------------------- William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 200,000 223,000 ------------- 3,687,000 - ----------------------------------------------------------------------------------- Internet & Catalog Retail--0.1% InterActiveCorp, 7% Nts., 1/15/13 287,000 317,603 - ----------------------------------------------------------------------------------- Leisure Equipment & Products--0.1% Remington Arms Co., Inc., 10.50% Sr. Unsec. Nts., 2/1/11 150,000 157,688 - ----------------------------------------------------------------------------------- Media--4.5% Adelphia Communications Corp.: 8.125% Sr. Nts., Series B, 7/15/03 5,8 250,000 202,500 9.875% Sr. Nts., Series B, 3/1/07 5,8 300,000 244,500 10.25% Sr. Unsec. Nts., 11/1/06 5,8 100,000 81,000 10.25% Sr. Unsec. Sub. Nts., 6/15/11 5,8 300,000 253,500 10.875% Sr. Unsec. Nts., 10/1/10 5,8 100,000 82,000 - ----------------------------------------------------------------------------------- Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/12 800,000 820,000 - ----------------------------------------------------------------------------------- AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 500,000 528,125 - ----------------------------------------------------------------------------------- Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 200,000 215,000 - ----------------------------------------------------------------------------------- Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp.: 8.625% Sr. Unsec. Nts., 4/1/09 1,300,000 1,049,750 11.125% Sr. Unsec. Nts., 1/15/11 400,000 342,000 - ----------------------------------------------------------------------------------- Cinemark USA, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/13 200,000 220,000 - ----------------------------------------------------------------------------------- CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B, 4/1/11 625,000 640,625 - ----------------------------------------------------------------------------------- EchoStar DBS Corp.: 9.375% Sr. Unsec. Nts., 2/1/09 150,000 159,375 10.375% Sr. Unsec. Nts., 10/1/07 750,000 831,563 - ----------------------------------------------------------------------------------- Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 600,000 630,750 - ----------------------------------------------------------------------------------- Entravision Communications Corp., 8.125% Sr. Sub. Nts., 3/15/09 100,000 106,250 - ----------------------------------------------------------------------------------- Hollinger International Publishing, Inc., 9% Sr. Unsec. Nts., 12/15/10 400,000 426,000 - ----------------------------------------------------------------------------------- Houghton Mifflin Co., 8.25% Sr. Unsec. Nts., 2/1/11 200,000 212,500 - ----------------------------------------------------------------------------------- Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 7 150,000 146,625 - ----------------------------------------------------------------------------------- LodgeNet Entertainment Corp., 9.50% Sr. Sub. Debs., 6/15/13 100,000 108,500 - ----------------------------------------------------------------------------------- Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13 600,000 573,000 - ----------------------------------------------------------------------------------- News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 380,000 482,318 - ----------------------------------------------------------------------------------- PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 400,000 433,000
9 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Media Continued PRIMEDIA, Inc., 8% Sr. Nts., 5/15/13 7 $ 500,000 $ 511,250 - ----------------------------------------------------------------------------------- R.H. Donnelley Financial Corp. I, 10.875% Sr. Sub. Nts., 12/15/12 7 200,000 239,500 - ----------------------------------------------------------------------------------- Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 200,000 221,000 - ----------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 8% Sr. Unsec. Sub. Nts., 3/15/12 1,200,000 1,272,000 8.75% Sr. Sub. Nts., 12/15/11 300,000 330,000 - ----------------------------------------------------------------------------------- Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub. Nts., 11/1/09 300,000 312,750 - ----------------------------------------------------------------------------------- Vertis, Inc., 9.75% Sr. Sec. Nts., 4/1/09 7 100,000 106,750 - ----------------------------------------------------------------------------------- Von Hoffmann Corp., 10.25% Sr. Unsec. Nts., 3/15/09 7 100,000 108,250 - ----------------------------------------------------------------------------------- WRC Media, Inc./Weekly Reader Corp./Compass Learning Corp., 12.75% Sr. Sub. Nts., 11/15/09 300,000 292,500 ------------- 12,182,881 - ----------------------------------------------------------------------------------- Multiline Retail--0.3% J.C. Penney Co., Inc., 8% Nts., 3/1/10 200,000 223,500 - ----------------------------------------------------------------------------------- Saks, Inc., 9.875% Nts., 10/1/11 400,000 476,000 699,500 - ----------------------------------------------------------------------------------- Specialty Retail--0.7% Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 200,000 209,000 - ----------------------------------------------------------------------------------- CSK Auto, Inc., 12% Sr. Unsec. Nts., 6/15/06 500,000 565,000 - ----------------------------------------------------------------------------------- Finlay Enterprises, Inc., 9% Debs., 5/1/08 400,000 403,500 - ----------------------------------------------------------------------------------- Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 300,000 310,500 - ----------------------------------------------------------------------------------- Gap, Inc. (The), 6.90% Nts., 9/15/07 200,000 218,500 - ----------------------------------------------------------------------------------- Hollywood Entertainment Corp., 9.625% Sr. Sub. Nts., 3/15/11 6 200,000 217,500 ------------- 1,924,000 - ----------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods--0.3% Broder Bros. Co., 11.25% Sr. Nts., 10/15/10 7 200,000 206,000 - ----------------------------------------------------------------------------------- Consoltex Group, Inc., 11% Sr. Sub. Nts., 1/31/09 6,9 436,563 44 - ----------------------------------------------------------------------------------- Levi Strauss & Co.: 11.625% Sr. Unsec. Nts., 1/15/08 200,000 173,000 12.25% Sr. Nts., 12/15/12 250,000 208,750 - ----------------------------------------------------------------------------------- Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 7 150,000 162,188 - ----------------------------------------------------------------------------------- Russell Corp., 9.25% Sr. Nts., 5/1/10 100,000 105,500 ------------- 855,482 - ----------------------------------------------------------------------------------- Consumer Staples--1.8% - ----------------------------------------------------------------------------------- Beverages--0.0% Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12 100,000 110,250 - ----------------------------------------------------------------------------------- Food & Staples Retailing--0.7% Delhaize America, Inc., 8.125% Unsub. Debs., 4/15/11 341,000 378,084 - ----------------------------------------------------------------------------------- Fleming Cos., Inc.: 10.125% Sr. Unsec. Nts., 4/1/08 8 500,000 80,000 10.625% Sr. Unsec. Sub. Nts., Series D, 7/31/07 6,8 200,000 1,020 - ----------------------------------------------------------------------------------- Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11 200,000 170,000
10 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Food & Staples Retailing Continued Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 $ 775,000 $ 806,000 - ----------------------------------------------------------------------------------- Rite Aid Corp.: 8.125% Sr. Sec. Nts., 5/1/10 250,000 268,750 9.50% Sr. Sec. Nts., 2/15/11 100,000 113,000 ------------- 1,816,854 - ----------------------------------------------------------------------------------- Food Products--0.6% Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 8 200,000 134,000 - ----------------------------------------------------------------------------------- Burns Philp Capital Pty Ltd., 9.75% Sr. Sub. Nts., 7/15/12 7 100,000 102,500 - ----------------------------------------------------------------------------------- Del Monte Corp., 8.625% Sr. Sub. Nts., 12/15/12 7 200,000 222,000 - ----------------------------------------------------------------------------------- Doane Pet Care Co., 10.75% Sr. Nts., 3/1/10 6 200,000 206,000 - ----------------------------------------------------------------------------------- Dole Food Co., Inc., 8.875% Sr. Unsec. Nts., 3/15/11 50,000 54,250 - ----------------------------------------------------------------------------------- Hines Nurseries, Inc., 10.25% Sr. Nts., 10/1/11 7 100,000 107,500 - ----------------------------------------------------------------------------------- Smithfield Foods, Inc.: 7.625% Sr. Unsec. Sub. Nts., 2/15/08 400,000 422,000 8% Sr. Nts., Series B, 10/15/09 300,000 331,500 ------------- 1,579,750 - ----------------------------------------------------------------------------------- Household Products--0.5% AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 6 600,000 633,000 - ----------------------------------------------------------------------------------- Holmes Products Corp., 9.875% Sr. Unsec. Sub. Nts., Series B, 11/15/07 6 300,000 298,500 - ----------------------------------------------------------------------------------- Rayovac Corp., 8.50% Sr. Sub. Nts., 10/1/13 7 100,000 104,500 - ----------------------------------------------------------------------------------- Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05 500,000 492,500 - ----------------------------------------------------------------------------------- Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08 5,6,8 400,000 -- ------------- 1,528,500 - ----------------------------------------------------------------------------------- Energy--1.7% - ----------------------------------------------------------------------------------- Energy Equipment & Services--0.4% Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts., 8/1/08 750,000 832,500 - ----------------------------------------------------------------------------------- Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 100,000 108,000 - ----------------------------------------------------------------------------------- Universal Compression, Inc., 7.25% Sr. Unsec. Sub. Nts., 5/15/10 200,000 209,000 ------------- 1,149,500 - ----------------------------------------------------------------------------------- Oil & Gas--1.3% Chesapeake Energy Corp.: 7.75% Sr. Unsec. Nts., 1/15/15 200,000 217,000 8.125% Sr. Unsec. Nts., 4/1/11 300,000 330,750 - ----------------------------------------------------------------------------------- El Paso Energy Partners LP, 10.625% Sr. Sub. Nts., 12/1/12 200,000 236,500 - ----------------------------------------------------------------------------------- Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 200,000 209,000 - ----------------------------------------------------------------------------------- Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 600,000 681,000 - ----------------------------------------------------------------------------------- GulfTerra Energy Partners LP, 8.50% Sr. Unsec. Sub. Nts., Series B, 6/1/10 150,000 164,250 - ----------------------------------------------------------------------------------- Pemex Project Funding Master Trust, 8.50% Unsub. Nts., 2/15/08 265,000 303,756 - ----------------------------------------------------------------------------------- Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12 200,000 224,696 - ----------------------------------------------------------------------------------- Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 500,000 570,000 - ----------------------------------------------------------------------------------- Tesoro Petroleum Corp., 8% Sr. Sec. Nts., 4/15/08 100,000 106,500
11 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Oil & Gas Continued Tom Brown, Inc., Units (each unit consists of $512 principal amount of 7.25% sr. sub. nts., due 2013 and $488 principal amount of Tom Brown Resources Funding Corp., 7.25% sr. sub. nts., due 2013) 10 $ 100,000 $ 105,000 - ----------------------------------------------------------------------------------- Westport Resources Corp., 8.25% Sr. Unsec. Sub. Nts., 11/1/11 200,000 221,500 - ----------------------------------------------------------------------------------- XTO Energy, Inc., 7.50% Sr. Nts., 4/15/12 100,000 112,500 ------------- 3,482,452 - ----------------------------------------------------------------------------------- Financials--1.7% - ----------------------------------------------------------------------------------- Commercial Banks--0.3% Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 800,000 404,000 - ----------------------------------------------------------------------------------- Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12 300,000 329,250 ------------- 733,250 - ----------------------------------------------------------------------------------- Diversified Financial Services--0.4% Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 200,000 226,000 - ----------------------------------------------------------------------------------- Finova Group, Inc. (The), 7.50% Nts., 11/15/09 400,000 202,000 - ----------------------------------------------------------------------------------- LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07 250,000 257,500 - ----------------------------------------------------------------------------------- Pemex Project Funding Master Trust, 7.375% Unsec. Unsub. Nts., 12/15/14 410,000 432,550 ------------- 1,118,050 - ----------------------------------------------------------------------------------- Insurance--0.1% Arbor I Ltd., 16.64% Nts., 6/15/06 6,11 250,000 251,875 - ----------------------------------------------------------------------------------- Real Estate--0.9% Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 100,000 100,000 - ----------------------------------------------------------------------------------- Corrections Corp. of America, 9.875% Sr. Nts., 5/1/09 100,000 112,625 - ----------------------------------------------------------------------------------- Felcor Lodging LP, 9% Sr. Nts., 6/1/11 285,000 309,938 - ----------------------------------------------------------------------------------- Host Marriott LP, 9.50% Sr. Nts., 1/15/07 400,000 445,000 - ----------------------------------------------------------------------------------- MeriStar Hospitality Corp., 9.125% Sr. Unsec. Nts., 1/15/11 700,000 743,750 - ----------------------------------------------------------------------------------- Saul (B.F.) Real Estate Investment Trust, 9.75% Sr. Sec. Nts., Series B, 4/1/08 700,000 721,000 ------------- 2,432,313 - ----------------------------------------------------------------------------------- Health Care--2.3% - ----------------------------------------------------------------------------------- Health Care Equipment & Supplies--0.2% Fisher Scientific International, Inc., 8.125% Sr. Sub. Nts., 5/1/12 200,000 216,000 - ----------------------------------------------------------------------------------- Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub. Nts., 8/1/11 400,000 430,000 ------------- 646,000 - ----------------------------------------------------------------------------------- Health Care Providers & Services--2.1% AmeriPath, Inc., 10.50% Sr. Unsec. Sub. Nts., 4/1/13 100,000 106,000 - ----------------------------------------------------------------------------------- AmerisourceBergen Corp., 7.25% Sr. Unsec. Nts., 11/15/12 200,000 207,000 - ----------------------------------------------------------------------------------- Extendicare Health Services, Inc., 9.50% Sr. Unsec. Sub. Nts., 7/1/10 100,000 110,500 - ----------------------------------------------------------------------------------- Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08 6 900,000 947,250 - ----------------------------------------------------------------------------------- Healthsouth Corp., 7.625% Nts., 6/1/12 800,000 700,000 - ----------------------------------------------------------------------------------- Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts., Series B, 8/15/12 200,000 219,000 - ----------------------------------------------------------------------------------- NDCHealth Corp., 10.50% Sr. Unsec. Sub. Nts., 12/1/12 600,000 672,000
12 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Health Care Providers & Services Continued PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub. Nts., 6/1/09 $ 400,000 $ 462,000 - ----------------------------------------------------------------------------------- Quintiles Transnational Corp., 10% Sr. Sub. Nts., 10/1/13 7 150,000 159,000 - ----------------------------------------------------------------------------------- Rotech Healthcare, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/12 400,000 434,000 - ----------------------------------------------------------------------------------- Tenet Healthcare Corp., 6.375% Sr. Nts., 12/1/11 637,000 594,003 - ----------------------------------------------------------------------------------- Triad Hospitals, Inc., 8.75% Sr. Unsec. Nts., Series B, 5/1/09 700,000 761,250 - ----------------------------------------------------------------------------------- US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 200,000 214,000 ------------- 5,586,003 - ----------------------------------------------------------------------------------- Pharmaceuticals--0.0% aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 100,000 111,500 - ----------------------------------------------------------------------------------- Industrials--5.5% - ----------------------------------------------------------------------------------- Aerospace & Defense--0.6% Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts., 5/15/11 200,000 222,000 - ----------------------------------------------------------------------------------- BE Aerospace, Inc.: 8.50% Sr. Nts., 10/1/107 100,000 103,500 8.875% Sr. Unsec. Sub. Nts., 5/1/11 200,000 181,000 - ----------------------------------------------------------------------------------- K&F Industries, Inc., 9.625% Sr. Unsec. Sub. Nts., 12/15/10 125,000 140,625 - ----------------------------------------------------------------------------------- Rexnord Corp., 10.125% Sr. Unsec. Sub. Nts., 12/15/12 150,000 167,250 - ----------------------------------------------------------------------------------- TD Funding Corp., 8.375% Sr. Sub. Nts., 7/15/11 7 200,000 213,500 - ----------------------------------------------------------------------------------- TRW Automotive, Inc.: 9.375% Sr. Nts., 2/15/13 7 150,000 171,000 11% Sr. Sub. Nts., 2/15/13 7 150,000 177,750 - ----------------------------------------------------------------------------------- Vought Aircraft Industries, Inc., 8% Sr. Nts., 7/15/11 7 100,000 101,000 ------------- 1,477,625 - ----------------------------------------------------------------------------------- Air Freight & Logistics--0.1% Atlas Air, Inc.: 9.25% Sr. Nts., 4/15/08 5,8 200,000 95,000 9.375% Sr. Unsec. Nts., 11/15/06 8 300,000 142,500 ------------- 237,500 - ----------------------------------------------------------------------------------- Airlines--0.7% America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05 1,000,000 875,000 - ----------------------------------------------------------------------------------- Amtran, Inc., 10.50% Sr. Nts., 8/1/04 1,200,000 1,026,000 ------------- 1,901,000 - ----------------------------------------------------------------------------------- Building Products--0.4% Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 100,000 108,625 - ----------------------------------------------------------------------------------- Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts., 7/1/10 7 200,000 213,000 - ----------------------------------------------------------------------------------- Nortek, Inc.: 9.125% Sr. Unsec. Nts., Series B, 9/1/07 300,000 312,000 9.25% Sr. Nts., Series B, 3/15/07 300,000 311,625 9.875% Sr. Unsec. Sub. Nts., 6/15/11 100,000 108,250 ------------- 1,053,500
13 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Commercial Services & Supplies--2.0% Allied Waste North America, Inc.: 7.875% Sr. Nts., 4/15/13 $ 200,000 $ 215,500 7.875% Sr. Unsec. Nts., Series B, 1/1/09 600,000 630,000 8.50% Sr. Sub. Nts., 12/1/08 500,000 553,750 - ----------------------------------------------------------------------------------- American Color Graphics, Inc., 10% Sr. Sec. Nts., 6/15/10 7 100,000 107,750 - ----------------------------------------------------------------------------------- Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 5,8 400,000 90,000 - ----------------------------------------------------------------------------------- Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09 300,000 333,000 - ----------------------------------------------------------------------------------- Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 6 200,000 151,000 - ----------------------------------------------------------------------------------- Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 6 600,000 537,000 - ----------------------------------------------------------------------------------- Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09 6 250,000 256,250 - ----------------------------------------------------------------------------------- Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 300,000 338,250 - ----------------------------------------------------------------------------------- Moore North American Finance, Inc., 7.875% Sr. Nts., 1/15/11 7 100,000 108,500 - ----------------------------------------------------------------------------------- Protection One, Inc./Protection One Alarm Monitoring, Inc., 7.375% Sr. Unsec. Nts., 8/15/05 6 400,000 332,000 - ----------------------------------------------------------------------------------- Safety-Kleen Corp., 9.25% Sr. Unsec. Nts., 5/15/09 5,6,8 50,000 2,500 - ----------------------------------------------------------------------------------- Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 100,000 111,000 - ----------------------------------------------------------------------------------- United Rentals (North America), Inc.: 9.25% Sr. Unsec. Sub. Nts., Series B, 1/15/09 100,000 105,750 10.75% Sr. Unsec. Nts., Series B, 4/15/08 400,000 451,000 10.75% Sr. Unsec. Nts., Series B, 4/15/08 1,000,000 1,127,500 ------------- 5,450,750 - ----------------------------------------------------------------------------------- Construction & Engineering--0.0% URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 6 100,000 114,000 - ----------------------------------------------------------------------------------- Industrial Conglomerates--0.2% Great Lakes Dredge & Dock Corp., 11.25% Sr. Unsec. Sub. Nts., 8/15/08 610,000 646,600 - ----------------------------------------------------------------------------------- Machinery--1.0% Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 215,000 275,200 - ----------------------------------------------------------------------------------- AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 500,000 547,500 - ----------------------------------------------------------------------------------- Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 400,000 384,000 - ----------------------------------------------------------------------------------- Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 5,6,8 800,000 8,000 - ----------------------------------------------------------------------------------- NMHG Holding Co., 10% Sr. Nts., 5/15/09 6 100,000 110,500 - ----------------------------------------------------------------------------------- Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07 500,000 467,500 - ----------------------------------------------------------------------------------- SPX Corp., 7.50% Sr. Nts., 1/1/13 400,000 429,000 - ----------------------------------------------------------------------------------- Terex Corp.: 8.875% Sr. Unsec. Sub. Nts., 4/1/08 300,000 314,250 9.25% Sr. Unsec. Sub. Nts., 7/15/11 200,000 221,500 ------------- 2,757,450 - ----------------------------------------------------------------------------------- Marine--0.4% CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 300,000 346,500 - ----------------------------------------------------------------------------------- Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07 6,8 750,000 266,250 - ----------------------------------------------------------------------------------- Sea Containers Ltd., 7.875% Sr. Nts., 2/15/08 500,000 462,500 ------------- 1,075,250
14 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Road & Rail--0.1% Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 $ 200,000 $ 208,500 - ----------------------------------------------------------------------------------- Transportation Infrastructure--0.0% Worldspan LP/Worldspan Financial Corp., 9.625% Sr. Nts., 6/15/11 7 100,000 98,000 - ----------------------------------------------------------------------------------- Information Technology--1.1% - ----------------------------------------------------------------------------------- Communications Equipment--0.2% Orion Network Systems, Inc., 12.50% Sr. Disc. Nts., 1/15/07 8 1,150,000 569,250 - ----------------------------------------------------------------------------------- Computers & Peripherals--0.2% Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 400,000 438,000 - ----------------------------------------------------------------------------------- Electronic Equipment & Instruments--0.2% ChipPAC International Co. Ltd., 12.75% Sr. Unsec. Sub. Nts., Series B, 8/1/09 200,000 221,000 - ----------------------------------------------------------------------------------- Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 6 300,000 325,125 ------------- 546,125 - ----------------------------------------------------------------------------------- Internet Software & Services--0.0% Globix Corp., 11% Sr. Nts., 4/26/08 6 65,615 56,101 - ----------------------------------------------------------------------------------- NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 5,6,8 160,138 200 - ----------------------------------------------------------------------------------- PSINet, Inc.: 10.50% Sr. Unsec. Nts., 12/1/06 5,6,8 [EUR] 500,000 28,336 11% Sr. Nts., 8/1/09 5,8 540,935 28,399 ------------- 113,036 - ----------------------------------------------------------------------------------- IT Services--0.2% Iron Mountain, Inc., 7.75% Sr. Sub. Nts., 1/15/15 500,000 536,250 - ----------------------------------------------------------------------------------- Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 7 50,000 57,750 ------------- 594,000 - ----------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment--0.3% AMI Semiconductor, Inc., 10.75% Sr. Unsec. Sub. Nts., 2/1/13 300,000 349,500 - ----------------------------------------------------------------------------------- Amkor Technology, Inc., 9.25% Sr. Unsec. Sub. Nts., 2/15/08 300,000 337,500 ------------- 687,000 - ----------------------------------------------------------------------------------- Materials--3.9% - ----------------------------------------------------------------------------------- Chemicals--0.9% Equistar Chemicals LP/Equistar Funding Corp.: 8.75% Sr. Unsec. Nts., 2/15/09 200,000 200,000 10.625% Sr. Nts., 5/1/11 7 200,000 210,000 - ----------------------------------------------------------------------------------- Huntsman Corp./ICI Chemical Co. plc, 13.08% Sr. Unsec. Disc. Nts., 12/31/09 4 300,000 121,500 - ----------------------------------------------------------------------------------- Huntsman International LLC, 9.875% Sr. Nts., 3/1/09 200,000 212,000 - ----------------------------------------------------------------------------------- ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 200,000 220,000 - ----------------------------------------------------------------------------------- Koppers Industry, Inc., 9.875% Sr. Sec. Nts., 10/15/13 7 250,000 265,000 - ----------------------------------------------------------------------------------- Lyondell Chemical Co.: 9.50% Sec. Nts., 12/15/08 200,000 201,000 9.625% Sr. Sec. Nts., Series A, 5/1/07 100,000 102,000 9.875% Sec. Nts., Series B, 5/1/07 400,000 408,000 - ----------------------------------------------------------------------------------- OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11 200,000 203,000 - ----------------------------------------------------------------------------------- Pioneer Cos., Inc., 4.64% Sr. Sec. Nts., 12/31/06 11 27,687 25,057
15 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Chemicals Continued Sterling Chemicals, Inc.: 10% Sr. Sec. Nts., 12/19/07 6 $ 191,746 $ 181,200 11.25% Sr. Sub. Nts., 8/15/06 5,6,8 200,000 -- - ----------------------------------------------------------------------------------- Westlake Chemical Corp., 8.75% Sr. Nts., 7/15/11 7 200,000 212,000 ------------- 2,560,757 - ----------------------------------------------------------------------------------- Construction Materials--0.1% Texas Industries, Inc., 10.25% Sr. Nts., 6/15/11 7 200,000 224,000 - ----------------------------------------------------------------------------------- Containers & Packaging--1.5% Ball Corp.: 6.875% Sr. Unsec. Nts., 12/15/12 7 150,000 157,125 7.75% Sr. Unsec. Nts., 8/1/06 300,000 325,500 - ----------------------------------------------------------------------------------- Graphic Packaging International Corp.: 8.50% Sr. Nts., 8/15/11 7 250,000 276,875 9.50% Sr. Sub. Nts., 8/15/13 7 200,000 223,500 - ----------------------------------------------------------------------------------- Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts., 10/1/12 450,000 474,750 - ----------------------------------------------------------------------------------- Owens-Brockway Glass Container, Inc.: 8.75% Sr. Sec. Nts., 11/15/12 500,000 550,000 8.875% Sr. Sec. Nts., 2/15/09 900,000 981,000 - ----------------------------------------------------------------------------------- Stone Container Corp.: 9.25% Sr. Unsec. Nts., 2/1/08 250,000 273,750 9.75% Sr. Unsec. Nts., 2/1/11 400,000 438,000 - ----------------------------------------------------------------------------------- TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 250,000 252,500 ------------- 3,953,000 - ----------------------------------------------------------------------------------- Metals & Mining--1.2% Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 7 200,000 208,000 - ----------------------------------------------------------------------------------- Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08 400,000 442,000 - ----------------------------------------------------------------------------------- IMCO Recycling, Inc., 10.375% Sr. Sec. Nts., 10/15/10 7 200,000 199,000 - ----------------------------------------------------------------------------------- Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 400,000 436,000 - ----------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 10.875% Sr. Nts., Series B, 10/15/06 5,6,8 500,000 427,500 - ----------------------------------------------------------------------------------- Metallurg, Inc., 11% Sr. Nts., 12/1/07 200,000 97,000 - ----------------------------------------------------------------------------------- Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 200,000 165,000 - ----------------------------------------------------------------------------------- Peabody Energy Corp., 6.875% Sr. Unsec. Nts., Series B, 3/15/13 200,000 211,500 - ----------------------------------------------------------------------------------- Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 200,000 221,000 - ----------------------------------------------------------------------------------- UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 100,000 111,250 - ----------------------------------------------------------------------------------- United States Steel Corp.: 9.75% Sr. Nts., 5/15/10 200,000 212,000 10.75% Sr. Nts., 8/1/08 400,000 441,000 ------------- 3,171,250 - ----------------------------------------------------------------------------------- Paper & Forest Products--0.2% Buckeye Technologies, Inc., 8.50% Sr. Nts., 10/1/13 7 50,000 52,500 - ----------------------------------------------------------------------------------- Georgia-Pacific Corp., 8.125% Sr. Unsec. Nts., 5/15/11 500,000 546,250 ------------- 598,750
16 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Telecommunication Services--3.2% - ----------------------------------------------------------------------------------- Diversified Telecommunication Services--0.7% COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 5,6,8 $ 252,303 $ 2,208 - ----------------------------------------------------------------------------------- Concentric Network Corp., Escrow Shares, 12/15/07 5,6,15 495,000 -- - ----------------------------------------------------------------------------------- Dex Media East LLC/Dex Media East Finance Co., 9.875% Sr. Unsec. Nts., 11/15/09 100,000 113,750 - ----------------------------------------------------------------------------------- Dex Media West LLC/Dex Media West Finance Co.: 8.50% Sr. Nts., 8/15/10 7 150,000 164,250 9.875% Sr. Sub. Nts., 8/15/13 7 300,000 342,750 - ----------------------------------------------------------------------------------- Focal Communications Corp., 11.875% Sr. Unsec. Nts., Series B, 1/15/10 5,8 75,000 6,563 - ----------------------------------------------------------------------------------- Intermedia Communications, Inc., 0%/12.25% Sr. Disc. Nts., Series B, 3/1/09 5,8,12 100,000 38,500 - ----------------------------------------------------------------------------------- IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09 250,000 262,813 - ----------------------------------------------------------------------------------- Level 3 Communications, Inc., 0%/10.50% Sr. Disc. Nts., 12/1/08 12 400,000 370,000 - ----------------------------------------------------------------------------------- MCI Communications Corp., 7.75% Sr. Unsec. Debs., 3/23/25 5,8 100,000 83,250 - ----------------------------------------------------------------------------------- Metromedia Fiber Network, Inc., 10% Sr. Unsec. Nts., Series B, 11/15/08 5,8 200,000 13,500 - ----------------------------------------------------------------------------------- Nextlink Communications, Inc.: Escrow Shares, 3/15/08 5,6,15 250,000 -- Escrow Shares, 11/15/08 5,6,15 200,000 -- Escrow Shares, 6/1/09 5,6,15 200,000 -- - ----------------------------------------------------------------------------------- Qwest Corp., 8.875% Nts., 3/15/12 7 200,000 227,000 - ----------------------------------------------------------------------------------- Sprint Capital Corp., 8.75% Nts., 3/15/32 255,000 291,030 - ----------------------------------------------------------------------------------- Teligent, Inc., 11.50% Sr. Nts., 12/1/07 5,6,8 200,000 -- - ----------------------------------------------------------------------------------- Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 5,6,8 195,000 -- ------------- 1,915,614 - ----------------------------------------------------------------------------------- Wireless Telecommunication Services--2.5% Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts., 2/1/11 200,000 193,000 - ----------------------------------------------------------------------------------- American Tower Escrow Corp., 12.25% Sr. Sub. Disc. Nts., 8/1/08 4 400,000 276,000 - ----------------------------------------------------------------------------------- CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts., 10/1/07 5,6,8 554,000 -- - ----------------------------------------------------------------------------------- Centennial Cellular Operating Co./Centennial Communications Corp., 10.125% Sr. Nts., 6/15/13 7 300,000 313,500 - ----------------------------------------------------------------------------------- Crown Castle International Corp.: 0%/10.375% Sr. Disc. Nts., 5/15/11 12 550,000 566,500 10.75% Sr. Nts., 8/1/11 200,000 225,500 - ----------------------------------------------------------------------------------- Dobson Communications Corp., 8.875% Sr. Nts., 10/1/13 7 200,000 204,000 - ----------------------------------------------------------------------------------- Leap Wireless International, Inc.: 0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 5,6,8,12 200,000 23,000 12.50% Sr. Nts., 4/15/10 6,8 400,000 54,000 - ----------------------------------------------------------------------------------- Nextel Communications, Inc.: 7.375% Sr. Nts., 8/1/15 140,000 146,300 9.375% Sr. Unsec. Nts., 11/15/09 2,000,000 2,190,000 - ----------------------------------------------------------------------------------- Orbcomm Global LP, Escrow Shares, 8/15/04 5,6,15 175,000 -- - ----------------------------------------------------------------------------------- Rural Cellular Corp.: 9.625% Sr. Sub. Nts., Series B, 5/15/08 600,000 540,000 9.875% Sr. Nts., 2/1/10 7 200,000 200,500 - ----------------------------------------------------------------------------------- SBA Communications Corp., 12% Sr. Unsec. Disc. Nts., 3/1/08 800,000 852,000 - ----------------------------------------------------------------------------------- SpectraSite, Inc., 8.25% Sr. Nts., 5/15/10 7 100,000 106,500
17 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Wireless Telecommunication Services Continued Triton PCS, Inc.: 8.50% Sr. Unsec. Nts., 6/1/13 $ 200,000 $ 211,500 8.75% Sr. Unsec. Sub. Nts., 11/15/11 100,000 96,500 - ----------------------------------------------------------------------------------- US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub. Disc. Nts., Series B, 11/1/09 12 500,000 327,500 - ----------------------------------------------------------------------------------- Western Wireless Corp., 9.25% Sr. Nts., 7/15/13 7 250,000 262,500 ------------- 6,788,800 - ----------------------------------------------------------------------------------- Utilities--2.8% - ----------------------------------------------------------------------------------- Electric Utilities--2.1% AES Corp. (The), 8.75% Sr. Unsec. Unsub. Nts., 6/15/08 47,000 48,880 - ----------------------------------------------------------------------------------- Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series B, 12/15/09 445,792 479,226 - ----------------------------------------------------------------------------------- Calpine Corp.: 8.25% Sr. Unsec. Nts., 8/15/05 100,000 90,500 8.50% Sr. Sec. Nts., 7/15/10 7 1,100,000 1,012,000 8.50% Sr. Unsec. Nts., 2/15/11 600,000 432,000 8.75% Sr. Nts., 7/15/07 200,000 156,000 8.75% Sr. Sec. Nts., 7/15/13 7 550,000 506,000 - ----------------------------------------------------------------------------------- CMS Energy Corp.: 7.75% Sr. Nts., 8/1/10 7 100,000 102,250 9.875% Sr. Unsec. Nts., 10/15/07 900,000 987,750 - ----------------------------------------------------------------------------------- Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08 200,000 187,000 - ----------------------------------------------------------------------------------- ESI Tractebel Acquisition Corp., 7.99% Sec. Bonds, Series B, 12/30/11 468,000 485,550 - ----------------------------------------------------------------------------------- Mirant Americas Generation LLC, 8.30% Sr. Unsec. Nts., 5/1/11 8 600,000 499,500 - ----------------------------------------------------------------------------------- MSW Energy Holdings LLC/MSW Energy Finance Co., Inc., 8.50% Sr. Sec. Nts., 9/1/10 7 100,000 107,500 - ----------------------------------------------------------------------------------- PG&E Corp., 6.875% Sr. Sec. Nts., 7/15/08 7 200,000 213,000 - ----------------------------------------------------------------------------------- Reliant Resources, Inc.: 9.25% Sr. Sec. Nts., 7/15/10 7 150,000 135,000 9.50% Sr. Sec. Nts., 7/15/13 7 150,000 134,250 - ----------------------------------------------------------------------------------- Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07 275,000 314,531 ------------- 5,890,937 - ----------------------------------------------------------------------------------- Gas Utilities--0.2% AmeriGas Partners LP/AmeriGas Eagle Finance Corp., 8.875% Sr. Unsec. Nts., Series B, 5/20/11 200,000 218,000 - ----------------------------------------------------------------------------------- SEMCO Energy, Inc.: 7.125% Sr. Nts., 5/15/08 7 100,000 102,500 7.75% Sr. Nts., 5/15/13 7 100,000 103,500 - ----------------------------------------------------------------------------------- Williams Cos., Inc. (The), 7.125% Nts., 9/1/11 100,000 103,000 ------------- 527,000 - ----------------------------------------------------------------------------------- Multi-Utilities & Unregulated Power--0.5% Consumers Energy Co., 7.375% Nts., 9/15/23 200,000 206,201 - ----------------------------------------------------------------------------------- Dynegy Holdings, Inc., 10.125% Sr. Sec. Nts., 7/15/13 7 400,000 436,000 - ----------------------------------------------------------------------------------- El Paso Production Holding Co., 7.75% Sr. Nts., 6/1/13 7 300,000 289,500 - ----------------------------------------------------------------------------------- Mirant Mid-Atlantic LLC, Sec. Pass-Through Certificates, Series A, 8.625%, 6/30/12 133,669 133,753
18 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------------- Multi-Utilities & Unregulated Power Continued Williams Cos., Inc. (The), 8.625% Sr. Nts., 6/1/10 $ 200,000 $ 220,000 ------------ 1,285,454 ------------ 95,305,412 Shares - ----------------------------------------------------------------------------------------- Preferred Stocks--0.7% Crown American Realty Trust, 11% Cum., Series A, Non-Vtg. 4,000 235,040 - ----------------------------------------------------------------------------------------- Dobson Communications Corp., 6% Cv., Series F (converts into Dobson Communications Corp., Cl. A common stock), Non-Vtg. 600 126,375 - ----------------------------------------------------------------------------------------- e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg. 5,6,9 249 25 - ----------------------------------------------------------------------------------------- Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 5,6 4,000 281,000 - ----------------------------------------------------------------------------------------- Global Crossing Holdings Ltd., 10.50% Sr. Exchangeable, Non-Vtg. 5,6,9 4,210 -- - ----------------------------------------------------------------------------------------- Intermedia Communications, Inc., 13.50% Exchangeable, Series B 5,6,9 3 150 - ----------------------------------------------------------------------------------------- Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable, Non-Vtg. 5,6,9 3,031 -- - ----------------------------------------------------------------------------------------- NTL Europe, Inc., 10% Nts., Series A, Non-Vtg. 4 19 - ----------------------------------------------------------------------------------------- Paxson Communications Corp.: 14.25% Cum. 5,9 -- 3,487 14.25% Cum. Jr. Exchangeable, Non-Vtg. 9 36 339,300 - ----------------------------------------------------------------------------------------- Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 9 115 92,863 - ----------------------------------------------------------------------------------------- Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 5,6 5,750 858,188 ------------ 1,936,447 Principal Amount - ----------------------------------------------------------------------------------------- Structured Notes--0.1% Swiss Re Capital Markets Corp./Fujiyama Ltd. Catastrophe Linked Nts., 5.13%, 5/16/057,11 $ 250,000 251,530 Date Strike Contracts - ----------------------------------------------------------------------------------------- Options Purchased--0.2% Euro Call 5,6 4/1/04 1.20EUR 8,060,000EUR 94,302 - ----------------------------------------------------------------------------------------- Japanese Yen Call 5,6 6/1/04 107JPY 347,000,000JPY 73,148 - ----------------------------------------------------------------------------------------- Japanese Yen Call 5,6 4/22/04 102.92JPY 1,817,000,000JPY 229,469 - ----------------------------------------------------------------------------------------- Japanese Yen Put 5,6 2/25/04 122JPY/EUR 16 1,770,000EUR 17,558 ------------ 414,477 ------------ Total Corporate Sector (Cost $100,101,815) 98,964,663 Units - ----------------------------------------------------------------------------------------- Convertible Sector--1.2% - ----------------------------------------------------------------------------------------- Rights, Warrants and Certificates--1.2% American Tower Corp. Wts., Exp. 8/1/08 5,6 400 56,200 - ----------------------------------------------------------------------------------------- Chesapeake Energy Corp. Wts., Exp. 9/1/04 5 1,936 133 - ----------------------------------------------------------------------------------------- COLO.com, Inc. Wts., Exp. 3/15/10 5,6 300 3 - ----------------------------------------------------------------------------------------- Concentric Network Corp. Wts., Exp. 12/15/07 5,6 600 -- - ----------------------------------------------------------------------------------------- Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 5,6 800 -- - ----------------------------------------------------------------------------------------- e.spire Communications, Inc. Wts., Exp. 11/1/05 5,6 700 7
19 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Market Value Units See Note 1 - ----------------------------------------------------------------------------------- Rights, Warrants and Certificates Continued Horizon PCS, Inc. Wts., Exp. 10/1/10 5,6 1,000 $ -- - ----------------------------------------------------------------------------------- ICG Communications, Inc. Wts., Exp. 9/15/05 5,6 4,125 41 - ----------------------------------------------------------------------------------- ICO Global Communication Holdings Ltd. Wts.: Exp. 5/16/06 5,6 6,035 30 Exp. 5/16/06 5,6 9 -- - ----------------------------------------------------------------------------------- Insilco Corp. Wts., Exp. 8/15/07 5,6 720 -- - ----------------------------------------------------------------------------------- Leap Wireless International, Inc. Wts., Exp. 4/15/10 5,6 400 -- - ----------------------------------------------------------------------------------- Long Distance International, Inc. Wts., Exp. 4/13/08 5,6 400 -- - ----------------------------------------------------------------------------------- Loral Space & Communications Ltd. Wts., Exp. 1/15/07 5,6 975 10 - ----------------------------------------------------------------------------------- Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 5,6 700 7 - ----------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc. All Country Asia Free (except for Japan) Wts., Exp. 3/4/05 5 58,900 832,104 - ----------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc. Basket of countries Wts., Exp. 3/4/05 5 86,269 1,133,764 - ----------------------------------------------------------------------------------- Morgan Stanley Capital III, Inc. All Country Asia Free (except for Japan) Wts., Exp. 3/4/05 5 113,943 1,333,794 - ----------------------------------------------------------------------------------- Ntelos, Inc. Wts., Exp. 8/15/10 5,6 500 313 - ----------------------------------------------------------------------------------- Pathmark Stores, Inc. Wts., Exp. 9/19/10 5 6,738 6,738 - ----------------------------------------------------------------------------------- Protection One, Inc. Wts., Exp. 6/30/05 5,6 6,400 -- - ----------------------------------------------------------------------------------- Republic Technologies International LLC Wts., Exp. 7/15/09 5,6 200 -- - ----------------------------------------------------------------------------------- Sterling Chemicals, Inc. Wts., Exp. 12/19/08 5,6 407 -- - ----------------------------------------------------------------------------------- Verado Holdings, Inc., Cl. B Wts., Exp. 4/15/08 5,6 500 8 - ----------------------------------------------------------------------------------- XO Communications, Inc. Rts., Exp. 11/14/03 5 12,320 4,435 - ----------------------------------------------------------------------------------- XO Communications, Inc.: Cl. A Wts., Exp. 1/16/10 5 2,188 3,501 Cl. B Wts., Exp. 1/16/10 5 1,641 2,338 Cl. C Wts., Exp. 1/16/10 5 1,641 1,575 ------------- Total Convertible Sector (Cost $2,605,498) 3,375,001 Shares - ----------------------------------------------------------------------------------- International Sector--38.0% - ----------------------------------------------------------------------------------- Common Stocks--0.9% AO VimpelCom, Sponsored ADR 5 870 56,637 - ----------------------------------------------------------------------------------- Banco Bradesco SA, Sponsored ADR 5,405 113,451 - ----------------------------------------------------------------------------------- Banco Itau Holding Financeira SA, ADR 4,040 165,034 - ----------------------------------------------------------------------------------- Bank Pekao SA, GDR 3,243 93,593 - ----------------------------------------------------------------------------------- Brasil Telecom Participacoes SA, ADR 4,715 172,192 - ----------------------------------------------------------------------------------- Cesky Telecom AS, GDR 6,870 69,731 - ----------------------------------------------------------------------------------- COLT Telecom Group plc, ADR 5 7,020 49,140 - ----------------------------------------------------------------------------------- Companhia de Bebidas das Americas, ADR 10,395 220,374 - ----------------------------------------------------------------------------------- Companhia Siderurgica Nacional SA, Sponsored ADR 445 18,356 - ----------------------------------------------------------------------------------- Companhia Vale do Rio Doce, ADR 5,185 237,214 - ----------------------------------------------------------------------------------- Gedeon Richter Rt, Sponsored GDR, S Shares 519 53,831 - ----------------------------------------------------------------------------------- JSC Mining & Metallurgical Co. Norilsk Nickel, ADR 1,035 55,683 - ----------------------------------------------------------------------------------- KGHM Polska Miedz SA, GDR 5 2,909 36,508
20 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Market Value Shares See Note 1 - ----------------------------------------------------------------------------------- Common Stocks Continued Komercni Banka AS, GDR 4,424 $ 128,296 - ----------------------------------------------------------------------------------- LUKOIL, Sponsored ADR 680 55,413 - ----------------------------------------------------------------------------------- Magyar Tavkozlesi Rt, Sponsored ADR 3,532 64,070 - ----------------------------------------------------------------------------------- Microcell Telecommunications, Inc. 5 930 12,122 - ----------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. A 5 7 94 - ----------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. B 5 925 11,966 - ----------------------------------------------------------------------------------- MOL Magyar Olaj-es Gazipari Rt, Sponsored GDR 2,234 69,813 - ----------------------------------------------------------------------------------- OAO Gazprom, Sponsored ADR 5 2,370 55,103 - ----------------------------------------------------------------------------------- OTP Bank Ltd., GDR, S Shares 5 4,361 107,172 - ----------------------------------------------------------------------------------- Petroleo Brasileiro SA, ADR 14,235 334,523 - ----------------------------------------------------------------------------------- Polski Koncern Naftowy Orlen SA, GDR 7,585 95,343 - ----------------------------------------------------------------------------------- Surgutneftegaz, Sponsored ADR 2,215 54,489 - ----------------------------------------------------------------------------------- Telekomunikacja Polska SA, GDR 24,927 86,247 - ----------------------------------------------------------------------------------- Viatel Holding Ltd. (Bermuda) 5,6 763 3,395 - ----------------------------------------------------------------------------------- YUKOS, ADR 1,055 48,108 ------------- 2,467,898 Principal Amount - ----------------------------------------------------------------------------------- Corporate Bonds and Notes--4.2% - ----------------------------------------------------------------------------------- Consumer Discretionary--0.7% - ----------------------------------------------------------------------------------- Hotels, Restaurants & Leisure--0.2% Intrawest Corp., 7.50% Sr. Nts., 10/15/13 7 $400,000 403,000 - ----------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd., 8.75% Sr. Unsub. Nts., 2/2/11 200,000 224,000 ------------- 627,000 - ----------------------------------------------------------------------------------- Media--0.5% British Sky Broadcasting Group plc, 8.20% Sr. Unsec. Nts., 7/15/09 596,000 695,341 - ----------------------------------------------------------------------------------- Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 200,000 221,250 - ----------------------------------------------------------------------------------- Videotron Ltee, 6.875% Sr. Nts., 1/15/14 7 100,000 103,750 - ----------------------------------------------------------------------------------- Vivendi Universal SA, 9.25% Sr. Nts., 4/15/10 7 300,000 350,250 ------------- 1,370,591 - ----------------------------------------------------------------------------------- Consumer Staples--0.3% - ----------------------------------------------------------------------------------- Food Products--0.3% United Biscuits Finance plc, 10.75% Sr. Sub. Nts., 4/15/11 6 [GBP] 500,000 944,988 - ----------------------------------------------------------------------------------- Energy--1.6% - ----------------------------------------------------------------------------------- Energy Equipment & Services--0.4% Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 1,200,000 1,098,000 - ----------------------------------------------------------------------------------- Oil & Gas--1.2% Pemex Project Funding Master Trust, 6.625% Nts., 4/4/10 [EUR] 460,000 556,073 - ----------------------------------------------------------------------------------- Petroleos Mexicanos: 6.50% Unsub. Nts., 2/1/05 2,110,000 2,210,225 9.375% Sr. Unsec. Bonds, 12/2/08 300,000 355,500 ------------- 3,121,798
21 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Industrials--0.6% - ----------------------------------------------------------------------------------- Industrial Conglomerates--0.5% Tyco International Group SA, 6.375% Nts., 10/15/11 $1,300,000 $ 1,358,500 - ----------------------------------------------------------------------------------- Marine--0.0% Pacific & Atlantic Holdings, Inc., 3.75% Sec. Nts., 12/31/07 7 166,067 49,405 - ----------------------------------------------------------------------------------- Road & Rail--0.1% Stena AB, 9.625% Sr. Nts., 12/1/12 150,000 164,250 - ----------------------------------------------------------------------------------- Materials--0.5% - ----------------------------------------------------------------------------------- Chemicals--0.0% PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 87,434 79,128 - ----------------------------------------------------------------------------------- Containers & Packaging--0.3% Crown Euro Holdings SA: 9.50% Sr. Sec. Nts., 3/1/11 300,000 334,500 10.875% Sr. Sec. Nts., 3/1/13 100,000 114,500 - ----------------------------------------------------------------------------------- MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 200,000 223,000 ------------- 672,000 - ----------------------------------------------------------------------------------- Paper & Forest Products--0.2% Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 225,000 245,067 - ----------------------------------------------------------------------------------- Ainsworth Lumber Co. Ltd., 13.875% Sr. Sec. Nts., 7/15/07 250,000 287,500 - ----------------------------------------------------------------------------------- Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 5,6,8 750,000 123,750 ------------- 656,317 - ----------------------------------------------------------------------------------- Telecommunication Services--0.5% - ----------------------------------------------------------------------------------- Diversified Telecommunication Services--0.5% 360networks, Inc., 13% Sr. Unsec. Nts., 5/1/08 5,6,8 [EUR] 600,000 70 - ----------------------------------------------------------------------------------- Telewest Communications plc: 0%/9.25% Sr. Disc. Nts., 4/15/09 5,8,12 100,000 44,500 0%/9.875% Sr. Disc. Nts., 4/15/09 5,8,12 [GBP] 200,000 145,938 11.25% Sr. Nts., 11/1/08 5,8 700,000 381,500 - ----------------------------------------------------------------------------------- Telus Corp., 7.50% Nts., 6/1/07 596,000 662,529 ------------- 1,234,537 - ----------------------------------------------------------------------------------- Utilities--0.0% - ----------------------------------------------------------------------------------- Electric Utilities--0.0% AES Drax Holdings Ltd., 10.41% Sr. Sec. Sub. Nts., Series B, 12/31/20 6,8 100,000 79,000 ------------- 11,455,514 - ----------------------------------------------------------------------------------- Foreign Government Obligations--27.3% - ----------------------------------------------------------------------------------- Argentina--0.8% Argentina (Republic of) Bonds: 1.162%, 8/3/12 11 3,340,000 1,890,383 1.278%, 5/3/05 5,8 42,000 38,220 2%, 9/30/08 6 [ARP] 495,000 136,173 Series PR12, 2%, 1/3/16 5,6,8 [ARP] 11,273 2,782 - ----------------------------------------------------------------------------------- Argentina (Republic of) Disc. Bonds, 2.345%, 3/31/23 8 185,000 92,500 - ----------------------------------------------------------------------------------- Argentina (Republic of) Par Bonds, 5.984%, 3/31/23 8 235,000 115,150 - ----------------------------------------------------------------------------------- Argentina (Republic of) Treasury Bills, 14.75%, 10/8/04 4 [ARP] 14,000 4,407
22 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Argentina Continued Buenos Aires (Province of) Bonds, Bonos de Consolidacion de Deudas, Series PBA1, 3.257%, 4/1/07 6,8 [ARP] 71,628 $ 25,719 - ----------------------------------------------------------------------------------- JPMorgan Chase Bank, Argentina (Republic of) Treasury Bills, 8.84%, 2/20/04 6 [ARP] 25,000 8,306 ------------- 2,313,640 - ----------------------------------------------------------------------------------- Austria--0.7% Austria (Republic of) Nts.: 5.50%, 10/20/07 [EUR] 810,000 1,012,873 Series 98-3, 3.90%, 10/20/05 [EUR] 255,000 303,133 - ----------------------------------------------------------------------------------- Austria (Republic of) Sr. Unsec. Unsub. Nts., Series 1, 5%, 7/15/12 [EUR] 377,000 461,644 ------------- 1,777,650 - ----------------------------------------------------------------------------------- Belgium--1.4% Belgium (Kingdom of) Bonds: 5%, 9/28/11 [EUR] 360,000 441,601 Series 19, 6.50%, 3/31/05 [EUR] 730,000 894,960 Series 26, 6.25%, 3/28/07 [EUR] 1,465,000 1,863,491 Series 28, 5.75%, 3/28/08 [EUR] 550,000 695,704 ------------- 3,895,756 - ----------------------------------------------------------------------------------- Brazil--0.8% Brazil (Federal Republic of) Bonds, Series 15 yr., 2.063%, 4/15/09 11 6,471 5,953 - ----------------------------------------------------------------------------------- Brazil (Federal Republic of) Unsec. Unsub. Bonds, Cl. B, 8.875%, 4/15/24 2,481,000 2,115,053 ------------- 2,121,006 - ----------------------------------------------------------------------------------- Colombia--0.1% Colombia (Republic of) Unsec. Unsub. Bonds, 8.375%, 2/15/27 315,000 277,200 - ----------------------------------------------------------------------------------- Denmark--0.3% Denmark (Kingdom of) Nts., 4%, 8/15/08 [DKK] 5,425,000 857,711 - ----------------------------------------------------------------------------------- Dominican Republic--0.0% Dominican Republic Unsec. Unsub. Bonds, 9.50%, 9/27/06 113,000 98,875 - ----------------------------------------------------------------------------------- Ecuador--0.2% Ecuador (Republic of) Unsec. Bonds, 7%, 8/15/30 11 785,000 511,035 - ----------------------------------------------------------------------------------- Finland--0.0% Finland (Republic of) Sr. Unsec. Unsub. Bonds, 2.75%, 7/4/06 [EUR] 115,000 132,748 - ----------------------------------------------------------------------------------- France--0.9% France (Government of) Obligations Assimilables du Tresor Bonds: 5%, 4/25/12 [EUR] 840,000 1,028,548 5.50%, 10/25/07 [EUR] 230,000 287,535 - ----------------------------------------------------------------------------------- France (Government of) Treasury Nts.: 3 yr., 3.50%, 1/12/05 [EUR] 945,000 1,112,608 5 yr., 4.75%, 7/12/07 [EUR] 50,000 60,930 ------------- 2,489,621
23 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Germany--1.8% Germany (Republic of) Bonds: 2%, 6/17/05 [EUR] 950,000 $ 1,094,436 5.375%, 1/4/10 [EUR] 765,000 960,813 Series 01, 5%, 7/4/11 [EUR] 1,600,000 1,964,532 Series 140, 4.50%, 8/17/07 [EUR] 730,000 881,849 ------------- 4,901,630 - ----------------------------------------------------------------------------------- Great Britain--0.6% United Kingdom Treasury Nts., 7.50%, 12/7/06 2 [GBP] 890,000 1,625,821 - ----------------------------------------------------------------------------------- Greece--0.7% Greece (Republic of) Bonds: 3.50%, 4/18/08 [EUR] 930,000 1,076,617 5.35%, 5/18/11 [EUR] 725,000 905,244 ------------- 1,981,861 - ----------------------------------------------------------------------------------- Guatemala--0.2% Guatemala (Republic of) Nts.: 10.25%, 11/8/11 205,000 232,675 10.25%, 11/8/11 7 170,000 192,950 ------------- 425,625 - ----------------------------------------------------------------------------------- Italy--2.0% Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali: 4%, 3/1/05 [EUR] 290,000 343,800 5%, 10/15/07 [EUR] 2,475,000 3,041,763 5.25%, 12/15/05 [EUR] 860,000 1,052,637 5.25%, 8/1/11 [EUR] 730,000 909,641 ------------- 5,347,841 - ----------------------------------------------------------------------------------- Ivory Coast--0.0% Ivory Coast (Government of) Past Due Interest Bonds, 1.90%, 3/29/18 5,6,8 [FRF] 3,857,000 123,038 - ----------------------------------------------------------------------------------- Japan--7.5% Japan (Government of) Bonds, 5 yr., Series 14, 0.40%, 6/20/06 [JPY] 2,250,000,000 20,543,594 - ----------------------------------------------------------------------------------- Mexico--1.3% United Mexican States Bonds: 7.50%, 4/8/33 470,000 481,045 8.30%, 8/15/31 230,000 256,105 11.375%, 9/15/16 45,000 63,338 - ----------------------------------------------------------------------------------- United Mexican States Global Bonds, 9.875%, 1/15/07 1,720,000 2,062,280 - ----------------------------------------------------------------------------------- United Mexican States Nts., 7.50%, 1/14/12 270,000 302,400 - ----------------------------------------------------------------------------------- United Mexican States Unsec. Unsub. Nts., Series 6 BR, 6.75%, 6/6/06 [JPY] 40,000,000 415,227 ------------- 3,580,395 - ----------------------------------------------------------------------------------- New Zealand--0.3% New Zealand (Government of) Bonds, 6.50%, 2/15/06 [NZD] 1,240,000 774,083 - ----------------------------------------------------------------------------------- Nigeria--0.1% Central Bank of Nigeria Gtd. Bonds, Series WW, 6.25%, 11/15/20 140,000 122,500 - ----------------------------------------------------------------------------------- Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 157,604 128,393 ------------- 250,893
24 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Philippines--0.5% Philippines (Republic of) Bonds, 9.375%, 1/18/17 $ 500,000 $ 533,125 - ----------------------------------------------------------------------------------- Philippines (Republic of) Nts., 9.875%, 3/16/10 130,000 144,300 - ----------------------------------------------------------------------------------- Philippines (Republic of) Unsec. Bonds: 8.875%, 4/15/08 240,000 262,200 9.875%, 1/15/19 290,000 302,325 ------------- 1,241,950 - ----------------------------------------------------------------------------------- Poland--0.5% Poland (Republic of) Bonds, Series 0K0805, 11.58%, 8/12/05 4 [PLZ] 6,250,000 1,391,718 - ----------------------------------------------------------------------------------- Portugal--0.2% Portugal (Republic of) Obrig Do Tes Medio Prazo Unsec. Unsub. Bonds, 5.85%, 5/20/10 [EUR] 390,000 500,524 - ----------------------------------------------------------------------------------- Russia--3.0% Ministry Finance of Russia Debs.: Series VI, 3%, 5/14/06 30,000 28,868 Series V, 3%, 5/14/08 1,760,000 1,546,600 - ----------------------------------------------------------------------------------- Russian Federation Unsec. Unsub. Nts.: 8.75%, 7/24/05 3,185,000 3,479,613 10%, 6/26/07 2,520,000 2,979,900 - ----------------------------------------------------------------------------------- Russian Federation Unsub. Nts., 5%, 3/31/30 11 4,750 4,406 ------------- 8,039,387 - ----------------------------------------------------------------------------------- South Africa--0.3% South Africa (Republic of) Unsec. Nts., 8.375%, 10/17/06 730,000 834,025 - ----------------------------------------------------------------------------------- Spain--1.0% Spain (Kingdom of) Bonds, Bonos y Obligacion del Estado, 4.80%, 10/31/06 [EUR] 840,000 1,024,256 - ----------------------------------------------------------------------------------- Spain (Kingdom of) Treasury Bills, 2%, 12/5/03 4 [EUR] 1,430,000 1,659,355 ------------- 2,683,611 - ----------------------------------------------------------------------------------- Sweden--0.9% Sweden (Kingdom of) Debs., Series 1040, 6.50%, 5/5/08 [SEK] 16,690,000 2,328,536 - ----------------------------------------------------------------------------------- The Netherlands--1.0% The Netherlands (Government of) Bonds: 4%, 7/15/05 [EUR] 140,000 166,347 5%, 7/15/11 [EUR] 243,000 298,815 Series 1, 5.75%, 2/15/07 [EUR] 1,705,000 2,134,681 ------------- 2,599,843 - ----------------------------------------------------------------------------------- Ukraine--0.2% Ukraine (Government of) Bonds, 7.65%, 6/11/13 390,000 388,538 - ----------------------------------------------------------------------------------- Ukraine (Government of) Sr. Unsec. Nts., 11%, 3/15/07 189,469 210,812 ------------- 599,350 ------------- 74,248,967
25 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Loan Participations--1.1% Algeria (Republic of) Loan Participation Nts., 2.063%, 3/4/10 6,11 $ 310,917 $ 301,201 - ----------------------------------------------------------------------------------- Deutsche Bank AG: OAO Gazprom Loan Participation Nts., 6.50%, 8/4/05 960,000 963,456 Indonesian Rupiah Loan Participation Nts., 2.636%, 5/21/04 835,000 780,725 Indonesian Rupiah Loan Participation Nts., 2.636%, 3/25/05 965,000 863,675 ------------- 2,909,057 Shares - ----------------------------------------------------------------------------------- Preferred Stocks--0.0% Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series A 5,6,9 8,417 16,834 Units - ----------------------------------------------------------------------------------- Rights, Warrants and Certificates--0.0% Microcell Telecommunications, Inc., Cl. A Wts., Exp. 5/1/05 5 343 364 - ----------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. B Wts., Exp. 5/1/08 5 572 933 - ----------------------------------------------------------------------------------- Telus Corp. Wts., Exp. 9/15/05 5 539 4,054 ------------- 5,351 Principal Amount - ----------------------------------------------------------------------------------- Structured Notes--4.5% Citigroup Global Capital Markets Holdings, Inc., Brazilian Real Linked Nts., 23.18%, 5/20/04 4 [BRR] 290,307 92,046 - ----------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc., Argentine Peso Unsec. Linked Nts., 7/6/04 110,000 112,684 - ----------------------------------------------------------------------------------- Credit Suisse First Boston Corp. (Nassau Branch), U.S. Dollar/Philippine Peso Linked Nts., 12.50%, 3/5/12 11 [PHP] 32,130,000 566,101 - ----------------------------------------------------------------------------------- Credit Suisse First Boston International, U.S. Dollar/ South African Rand Linked Nts., Series FBi 43, 1.065%, 5/23/22 11 540,000 522,666 - ----------------------------------------------------------------------------------- Deutsche Bank AG: Basket of Emerging Market Currencies Linked Nts., 0.85%, 1/20/04 1,045,000 1,058,063 Basket of Emerging Market Currencies Linked Nts., 0.85%, 3/24/04 1,140,000 1,149,006 Brazil (Federal Republic of) Credit Linked Bonds, 1.25%, 10/20/08 11 540,000 535,788 Brazil (Federal Republic of) Credit Linked Nts., 1.185%, 10/20/08 11 590,000 584,159 Brazil (Federal Republic of) Credit Linked Nts., 1.24%, 10/20/08 11 775,000 768,955 Indonesian Rupiah Linked Nts., 14%, 6/22/09 549,138 618,769 Indonesian Rupiah Linked Nts., 14%, 6/22/09 255,000 283,305 Indonesian Rupiah Linked Nts., 14%, 6/22/09 276,733 294,832 Venezuela (Republic of) Credit Linked Bonds, 10.639%, 10/9/13 [EUR] 320,000 390,191 Venezuela (Republic of) Credit Linked Bonds, 11.056%, 10/8/13 [EUR] 675,000 842,597 Venezuela (Republic of) Credit Linked Certificate of Deposit, 8.18%, 9/20/06 11 815,000 826,573 Venezuela (Republic of) Credit Linked Nts., 11.39%, 6/15/04 11 425,000 447,143 - ----------------------------------------------------------------------------------- JPMorgan Chase Bank: EMBI Plus Turkey (Republic of) Linked Certificate of Deposit, 1.50%, 4/22/04 607,000 603,381 Polish Zloty/Euro Linked Certificate of Deposit, 0.91%, 4/7/04 210,000 204,030 Venezuela (Republic of) Credit Linked Certificate of Deposit, 8.028%, 9/20/05 11 565,000 573,362 Venezuela (Republic of) Credit Linked Certificate of Deposit, 8.078%, 9/20/05 11 565,000 573,871 Venezuela (Republic of) Credit Linked Default Bonds, 8.178%, 9/20/05 11 565,000 574,831
26 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Structured Notes Continued Pioneer 2002 Ltd. Sec. Catastrophe Linked Nts.: Series 2003-II, Cl. A, 7.14%, 6/15/06 6,11 $ 250,000 $ 259,138 Series 2003-II, Cl. B, 6.14%, 6/15/06 6,11 250,000 252,663 Series 2003-II, Cl. C, 6.89%, 6/15/06 6,11 250,000 253,013 ------------- 12,387,167 ------------- Total International Sector (Cost $101,952,091) 103,490,788 - ----------------------------------------------------------------------------------- Asset-Backed Sector--26.6% - ----------------------------------------------------------------------------------- Asset-Backed Securities--7.7% - ----------------------------------------------------------------------------------- Auto Loan--4.2% Bank One Auto Securitization Trust, Automobile Receivables, Series 2003-1, Cl A2, 1.29%, 8/21/06 360,000 359,086 - ----------------------------------------------------------------------------------- BMW Vehicle Owner Trust, Automobile Loan Certificates, Series 2003-A, Cl. A2, 1.45%, 11/25/05 700,000 700,691 - ----------------------------------------------------------------------------------- Capital Auto Receivables Asset Trust, Automobile Mtg.-Backed Nts., Series 2003-2, Cl. A2A, 1.20%, 5/16/05 510,000 509,674 - ----------------------------------------------------------------------------------- Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through Certificates: Series 2003-A, Cl. A2, 1.26%, 1/16/06 200,000 199,906 Series 2003-B, Cl. A2, 1.287%, 3/15/06 240,000 239,817 - ----------------------------------------------------------------------------------- DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates: Series 2002-B, Cl. A2, 2.20%, 4/6/05 68,493 68,650 Series 2003-A, Cl. A2, 1.52%, 12/8/05 6 630,000 630,638 - ----------------------------------------------------------------------------------- Ford Credit Auto Owner Trust, Automobile Installment Sales, Series 2003-A, Cl. A2A, 1.62%, 8/15/05 347,572 348,155 - ----------------------------------------------------------------------------------- Harley-Davidson Motorcycle Trust, Motorcycle Receivable Nts.: Series 2002-2, Cl. A1, 1.91%, 4/16/07 185,531 186,147 Series 2003-3, Cl. A1, 1.50%, 1/15/08 597,973 598,573 - ----------------------------------------------------------------------------------- Honda Auto Receivables Owner Trust, Automobile Receivables Obligations: Series 2003-1, Cl. A2, 1.46%, 9/19/05 476,856 477,340 Series 2003-3, Cl. A2, 1.52%, 4/21/06 6 700,000 700,546 Series 2003-4, Cl. A2, 1.52%, 7/17/06 550,000 549,828 - ----------------------------------------------------------------------------------- Nissan Auto Lease Trust, Auto Lease Obligations, Series 2003-A, Cl. A2, 1.69%, 12/15/05 370,000 370,048 - ----------------------------------------------------------------------------------- Nissan Auto Receivables Owner Trust, Automobile Receivable Nts.: Series 2003-A, Cl. A2, 1.45%, 5/16/05 700,000 700,787 Series 2003-B, Cl. A2, 1.20%, 11/15/05 750,000 749,392 - ----------------------------------------------------------------------------------- Toyota Auto Receivables Owner Trust, Automobile Mtg.-Backed Obligations: Series 2003-A, Cl. A2, 1.28%, 8/15/05 770,000 770,185 Series 2003-B, Cl. A2, 1.43%, 2/15/06 6 460,000 459,792 Series 2002-B, Cl. A3, 3.76%, 6/15/06 197,519 200,300 - ----------------------------------------------------------------------------------- USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts.: Series 2002-1, Cl. A3, 2.41%, 10/16/06 270,000 272,035 Series 2003-1, Cl. A2, 1.22%, 4/17/06 450,000 449,634 - ----------------------------------------------------------------------------------- Volkswagen Auto Loan Enhanced Trust, Automobile Loan Receivables: Series 2003-1, Cl. A2, 1.11%, 12/20/05 960,000 958,399 Series 2003-2, Cl. A2, 1.55%, 6/20/06 310,000 309,855
27 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Auto Loan Continued Whole Auto Loan Trust, Automobile Loan Receivables, Series 2003-1, Cl. A2A, 1.40%, 4/15/06 $650,000 $ 649,876 ------------- 11,459,354 - ----------------------------------------------------------------------------------- Credit Card--0.4% Consumer Credit Reference Index Securities Program, Credit Card Asset-Backed Certificates, Series 2002-B, Cl. FX, 10.421%, 3/22/07 6 1,000,000 1,044,438 - ----------------------------------------------------------------------------------- Equipment--0.1% Caterpillar Financial Asset Trust, Equipment Loan Pass-Through Certificates, Series 2003-A, Cl. A2, 1.25%, 10/25/05 280,000 279,959 - ----------------------------------------------------------------------------------- Home Equity Loan--2.2% Centex Home Equity Co. LLC, Home Equity Loan Asset-Backed Certificates: Series 2003-A, Cl. AF1, 1.836%, 10/25/17 125,144 125,250 Series 2003-B, Cl. AF1, 1.64%, 2/25/18 166,776 166,664 Series 2003-C, Cl. AF1, 2.14%, 7/25/18 6 414,303 415,259 - ----------------------------------------------------------------------------------- Chase Funding Mortgage Loan Asset-Backed Certificates, Home Equity Mtg. Obligations: Series 2003-3, Cl. 1A1, 1.20%, 8/25/17 11 256,951 256,939 Series 2003-4, Cl. 1A1, 1.24%, 9/25/17 6,11 523,031 523,075 - ----------------------------------------------------------------------------------- CitiFinancial Mortgage Securities, Inc., Home Equity Collateralized Mtg. Obligations: Series 2003-1, Cl. AF1, 1.94%, 1/25/33 236,974 237,226 Series 2003-2, Cl. AF1, 1.22%, 5/25/33 11 274,368 274,332 Series 2003-3, Cl. AF1, 1.24%, 8/25/33 6,11 336,676 336,672 - ----------------------------------------------------------------------------------- Conseco Finance Securitizations Corp., Home Equity Loan Pass-Through Certificates, Series 2001-D, Cl. M2, 2.87%, 11/15/32 11 2,400,000 2,346,574 - ----------------------------------------------------------------------------------- Principal Residential Mortgage Capital Resources Trust, Real Estate Mtg. Investment Conduit Participation Certificates, Series 2000-1, Cl. B, 2.77%, 6/20/05 6,11 1,000,000 990,313 - ----------------------------------------------------------------------------------- Residential Funding Mortgage Securities II, Inc., Home Equity Loan Pass-Through Certificates, Series 2003-HS1, Cl. AI2, 1.22%, 1/25/33 11 306,364 306,464 ------------- 5,978,768 - ----------------------------------------------------------------------------------- Manufactured Housing--0.8% Lehman ABS Manufactured Housing Contract, Commercial Mtg. Pass-Through Certificates, Series 2001-B, Cl. A4, 5.27%, 9/15/18 1,972,922 2,054,118 ------------- 20,816,637 - ----------------------------------------------------------------------------------- Government Agency--15.8% - ----------------------------------------------------------------------------------- FHLMC/FNMA/Sponsored--15.7% Federal Home Loan Mortgage Corp.: 5%, 11/1/33 13 902,000 887,906 7%, 9/1/33 419,689 441,641 12%, 5/1/10-6/1/15 230,586 262,030 - ----------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 2430, Cl. ND, 6.50%, 1/15/31 4,971,003 5,088,036 Series 2500, Cl. FD, 1.62%, 3/15/32 11 175,531 176,113 Series 2526, Cl. FE, 1.52%, 6/15/29 11 219,360 218,958 Series 2551, Cl. FD, 1.52%, 1/15/33 11 188,902 189,702
28 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- FHLMC/FNMA/Sponsored Continued Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security, Series 208, Cl. IO, (34.843)%, 6/1/30 14 $ 596,331 $ 89,037 - ----------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Structured Pass-Through Securities, Collateralized Mtg. Obligations: Series H003, Cl. A2, 1.88%, 1/15/07 55,544 55,569 Series H006, Cl. A1, 1.724%, 4/15/08 154,041 153,863 Series T-42, Cl. A2, 5.50%, 2/25/42 86,742 88,383 - ----------------------------------------------------------------------------------- Federal National Mortgage Assn.: 5%, 11/1/33 13 1,084,000 1,069,433 5.50%, 11/14/33 13 4,136,000 4,174,775 6%, 11/25/33 13 783,000 804,043 6.50%, 1/1/29 1 2,413,905 2,511,744 6.50%, 11/25/33 13 8,244,000 8,566,027 7%, 9/1/29-11/1/33 659,440 695,087 7%, 11/25/33 13 15,230,000 16,039,094 7.50%, 6/1/10-9/1/29 417,732 445,785 8.50%, 7/1/32 79,820 85,926 11%, 7/1/16 98,764 111,730 13%, 6/1/15 219,078 254,356 - ----------------------------------------------------------------------------------- Federal National Mortgage Assn., Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates, Trust 2002-77, Cl. WF, 1.52%, 12/18/32 11 333,069 334,091 - ----------------------------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security, Trust 321, Cl. 2, (4.745)%, 3/1/32 14 259,115 43,169 ------------- 42,786,498 - ----------------------------------------------------------------------------------- GNMA/Guaranteed--0.1% Government National Mortgage Assn.: 5.75%, 7/20/27 33,779 34,538 7%, 1/15/28-3/15/28 129,182 137,083 11%, 10/20/19 63,278 71,708 12%, 11/20/13-9/20/15 76,417 87,843 ------------- 331,172 ------------- 43,117,670 - ----------------------------------------------------------------------------------- Private--3.1% - ----------------------------------------------------------------------------------- Commercial--2.8% Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates: Series 1995-MD4, Cl. A5, 7.384%, 8/13/29 1,500,000 1,704,475 Series 1996-D2, Cl. A3, 7.522%, 2/14/29 11 3,000,000 3,138,581 - ----------------------------------------------------------------------------------- Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed Pass-Through Certificates, Series 1997-CTL1, 10.938%, 6/22/24 7,14 9,252,017 342,869 - ----------------------------------------------------------------------------------- Commercial Mortgage Acceptance Corp., Interest-Only Stripped Mtg.-Backed Security, Series 1996-C1, Cl. X-2, 90.258%, 12/25/20 6,14 1,989,190 622 - ----------------------------------------------------------------------------------- GMAC Commercial Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 1998-C1, Cl. F, 7.172%, 5/15/30 11 2,000,000 1,955,621 - ----------------------------------------------------------------------------------- Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 380,000 436,985 ------------- 7,579,153
29 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
Principal Market Value Amount See Note 1 - ----------------------------------------------------------------------------------- Other--0.0% CIT Equipment Collateral, Equipment Receivable-Backed Nts., Series 2003-EF1, Cl. A2, 1.49%, 12/20/05 6 $170,000 $ 169,788 - ----------------------------------------------------------------------------------- Residential--0.3% Lehman Structured Securities Corp., Collateralized Mtg. Obligations, Series 2001-GE4, Cl. A, 13.285%, 10/25/30 11 25,042 25,238 - ----------------------------------------------------------------------------------- Salomon Brothers Mortgage Securities VII, Inc., Commercial Mtg. Pass-Through Certificates, Series 1996-B, Cl. 1, 7.48%, 4/25/26 6,11 275,505 236,762 Washington Mutual Mortgage Securities Corp., Collateralized Mtg. Obligations Pass-Through Certificates, Series 2003-AR7, Cl. A1, 1.51%, 8/25/33 11 487,792 487,112 ------------- 749,112 ------------- 8,498,053 ------------- Total Asset-Backed Sector (Cost $71,635,912) 72,432,360 - ----------------------------------------------------------------------------------- Money Market Sector--4.0% - ----------------------------------------------------------------------------------- Joint Repurchase Agreements--3.3% Undivided interest of 6% in joint repurchase agreement (Principal Amount/ Market Value $150,354,000, with a maturity value of $150,366,154) with Banc One Capital Markets, Inc., 0.97%, dated 10/31/03, to be repurchased at $9,028,730 on 11/3/03, collateralized by U.S. Treasury Bonds, 6.25%--12%, 8/15/13--8/15/27, with a value of $153,550,289 9,028,000 9,028,000 - ----------------------------------------------------------------------------------- Short-Term Notes--0.7% Victory Receivables Corp., 1.14%, 1/13/04 2,000,000 1,995,200 ------------- Total Money Market Sector (Cost $11,023,377) 11,023,200 - ----------------------------------------------------------------------------------- Total Investments, at Value (Cost $303,240,059) 111.9% 304,888,988 - ----------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (11.9) (32,541,155) ------------------------- Net Assets 100.0% $272,347,833 =========================
30 | OPPENHEIMER MULTI-SECTOR INCOME TRUST Footnotes to Statement of Investments Principal amount, strike and contracts are reported in U.S. Dollars, except for those denoted in the following currencies: ARP Argentine Peso BRR Brazilian Real DKK Danish Krone EUR Euro FRF French Franc GBP British Pound Sterling HUF Hungary Forints JPY Japanese Yen NZD New Zealand Dollar PHP Philippines Peso PLZ Polish Zloty SEK Swedish Krona 1. Securities with an aggregate market value of $3,227,194 are held in collateralized accounts to cover initial margin requirements on open futures sales contracts. See Note 6 of Notes to Financial Statements. 2. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of Notes to Financial Statements. 3. A sufficient amount of liquid assets has been designated to cover outstanding written options, as follows:
Contracts Expiration Exercise Premium Market Value Calls Subject to Call Dates Price Received See Note 1 - ---------------------------------------------------------------------------------------------------------- Japanese Yen [JPY] 3,540,000EUR 4/28/04 132.000EUR/JPY 16 $ 49,333 $ 3,221 Japanese Yen [JPY] 1,770,000EUR 2/25/04 141.000EUR/JPY 16 20,341 11,470 ------------------------ 69,674 14,691 ------------------------ Contracts Puts Subject to Put - ---------------------------------------------------------------------------------------------------------- Japanese Yen [JPY] 391,000,000JPY 6/1/04 120.000JPY 72,987 14,897 ------------------------ $142,661 $29,588 ========================
4. Zero coupon bond reflects effective yield on the date of purchase. 5. Non-income producing security. 6. Identifies issues considered to be illiquid or restricted. See Note 11 of Notes to Financial Statements. 7. 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 $13,885,130 or 5.10% of the Fund's net assets as of October 31, 2003. 8. Issuer is in default. See Note 1 of Notes to Financial Statements. 9. Interest or dividend is paid-in-kind. 10. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units, which represent debt securities, principal amount disclosed represents total underlying principal. 11. Represents the current interest rate for a variable or increasing rate security. 12. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 13. When-issued security to be delivered and settled after October 31, 2003. See Note 1 of Notes to Financial Statements. 14. 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 $475,697 or 0.17% of the Fund's net assets as of October 31, 2003. 15. Received as a result of issuer reorganization. Currently has minimal market value. 16. Represents cross currency strike price. See accompanying Notes to Financial Statements. 31 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF ASSETS AND LIABILITIES October 31, 2003 - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------- Assets - ----------------------------------------------------------------------------------- Investments, at value (including securities loaned of approximately $22,413,000) (cost $303,240,059)-- see accompanying statement $304,888,988 - ----------------------------------------------------------------------------------- Cash 41,786 - ----------------------------------------------------------------------------------- Cash--foreign currencies (cost $2,729) 2,741 - ----------------------------------------------------------------------------------- Collateral for securities loaned 22,768,407 - ----------------------------------------------------------------------------------- Unrealized appreciation on foreign currency contracts 1,720,046 - ----------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 4,003,635 Investments sold 3,854,910 Swap contract 100,438 Futures margins 48,524 Other 17,878 ------------- Total assets 337,447,353 - ----------------------------------------------------------------------------------- Liabilities - ----------------------------------------------------------------------------------- Return of collateral for securities loaned 22,768,407 - ----------------------------------------------------------------------------------- Unrealized depreciation on foreign currency contracts 477,213 - ----------------------------------------------------------------------------------- Options written, at value (premiums received $142,661) - --see accompanying statement 29,588 - ----------------------------------------------------------------------------------- Swaptions written, at value (premiums received $19,758) - --see accompanying statement 5,106 - ----------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $31,601,499 purchased on a when-issued basis) 41,273,326 Closed foreign currency contracts 364,953 Trustees' compensation 52,583 Shareholder reports 46,030 Management and administrative fees 26,404 Transfer and shareholder servicing agent fees 10,560 Other 45,350 ------------- Total liabilities 65,099,520 - ----------------------------------------------------------------------------------- Net Assets $272,347,833 ============= - ----------------------------------------------------------------------------------- Composition of Net Assets - ----------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 292,299 - ----------------------------------------------------------------------------------- Additional paid-in capital 299,460,018 - ----------------------------------------------------------------------------------- Undistributed net investment income 6,727,359 - ----------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (37,340,613) - ----------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 3,208,770 ------------- Net Assets--applicable to 29,229,920 shares of beneficial interest outstanding $272,347,833 ============= - ----------------------------------------------------------------------------------- Net Asset Value Per Share $9.32
See accompanying Notes to Financial Statements. 32 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENT OF OPERATIONS For the Year Ended October 31, 2003 - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------- Investment Income - ----------------------------------------------------------------------------------- Interest $19,932,294 - ----------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $3,066) 155,031 - ----------------------------------------------------------------------------------- Securities lending fees 7,808 ------------ Total investment income 20,095,133 - ----------------------------------------------------------------------------------- Expenses - ----------------------------------------------------------------------------------- Management fees 1,672,345 - ----------------------------------------------------------------------------------- Custodian fees and expenses 32,554 - ----------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 21,060 - ----------------------------------------------------------------------------------- Trustees' compensation 6,070 - ----------------------------------------------------------------------------------- Other 44,962 ------------ Total expenses 1,776,991 Less reduction to custodian expenses (2,856) ------------ Net expenses 1,774,135 - ----------------------------------------------------------------------------------- Net Investment Income 18,320,998 - ----------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) - ----------------------------------------------------------------------------------- Net realized gain (loss) on: Investments (including premiums on options exercised) (2,996,464) Closing of futures contracts (1,150,311) Closing and expiration of option contracts written 51,583 Foreign currency transactions 3,096,679 ------------ Net realized loss (998,513) - ----------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 27,025,086 Translation of assets and liabilities denominated in foreign currencies 3,400,488 Futures contracts (139,962) ------------ Net change in unrealized appreciation 30,285,612 - ----------------------------------------------------------------------------------- Net Increase in Net Assets Resulting from Operations $47,608,097 ============
See accompanying Notes to Financial Statements. 33 | OPPENHEIMER MULTI-SECTOR INCOME TRUST STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Year Ended October 31, 2003 2002 - ----------------------------------------------------------------------------------- Operations - ----------------------------------------------------------------------------------- Net investment income $ 18,320,998 $ 19,044,945 - ----------------------------------------------------------------------------------- Net realized loss (998,513) (5,222,651) - ----------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 30,285,612 (105,724) --------------------------- Net increase in net assets resulting from operations 47,608,097 13,716,570 - ----------------------------------------------------------------------------------- Dividends and/or Distributions to Shareholders - ----------------------------------------------------------------------------------- Dividends from net investment income (14,030,362) (19,468,363) - ----------------------------------------------------------------------------------- Beneficial Interest Transactions - ----------------------------------------------------------------------------------- Proceeds from shares issued to shareholders in reinvestment of dividends -- 355,582 - ----------------------------------------------------------------------------------- Net Assets - ----------------------------------------------------------------------------------- Total increase (decrease) 33,577,735 (5,396,211) - ----------------------------------------------------------------------------------- Beginning of period 238,770,098 244,166,309 --------------------------- End of period [including undistributed net investment income of $6,727,359 and $4,960, respectively] $272,347,833 $238,770,098 ===========================
See accompanying Notes to Financial Statements. 34 | OPPENHEIMER MULTI-SECTOR INCOME TRUST FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Year Ended October 31, 2003 2002 2001 2000 1999 - -------------------------------------------------------------------------------------------- Per Share Operating Data - -------------------------------------------------------------------------------------------- Net asset value, beginning of period $8.17 $8.37 $8.85 $9.45 $9.82 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .63 .65 .78 .86 .87 Net realized and unrealized gain (loss) 1.00 (.18) (.44) (.62) (.43) ----------------------------------------------- Total from investment operations 1.63 .47 .34 .24 .44 - -------------------------------------------------------------------------------------------- Dividend and/or distributions to shareholders: Dividends from net investment income (.48) (.67) (.79) (.68) (.81) Tax return of capital distribution -- -- (.03) (.16) -- ----------------------------------------------- Total dividends and/or distributions to shareholders (.48) (.67) (.82) (.84) (.81) - -------------------------------------------------------------------------------------------- Net asset value, end of period $9.32 $8.17 $8.37 $8.85 $9.45 =============================================== Market value, end of period $8.34 $7.36 $8.08 $7.88 $8.06 =============================================== - -------------------------------------------------------------------------------------------- Total Return, at Market Value 1 20.44% (1.35)% 12.79% 6.93% (6.64)% - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $272,348 $238,770 $244,166 $257,629 $275,181 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $256,904 $243,498 $251,362 $269,849 $285,213 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 7.13% 7.82% 8.99% 9.27% 8.86% Total expenses 0.69% 3 0.82% 3 0.75% 3 0.84% 3 1.03% 3 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 93% 70% 133% 104% 159% 1. Assumes a purchase at the current market price on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and a sale at the current market price on the last business day of the period. Total return does not reflect sales charges or brokerage commissions. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 2. Annualized for periods of less than one full year. 3. Reduction to custodian fees less than 0.01%.
See accompanying Notes to Financial Statements. 35 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer Multi-Sector Income Trust (the Fund) is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company. The Fund's investment objective is to seek high current income consistent with preservation of capital. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. Securities traded on NASDAQ are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- Structured Notes. The Fund invests in foreign currency-linked structured notes whose market values and redemption prices are linked to foreign currency exchange rates. The Fund also invests in "index-linked" notes whose principal and/or interest payments depend on the performance of an underlying index. The structured notes are leveraged, increasing the volatility of each note's market value relative to the change in the underlying foreign currency exchange rate or underlying index. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying financial statements. The Fund records a realized gain or loss when a structured note is sold or matures. As of October 31, 2003, the market value of these securities comprised 4.6% of the Fund's net assets and resulted in unrealized gains of $141,885. The Fund also hedges a portion of the foreign currency exposure generated by these securities, as discussed in Note 5. - -------------------------------------------------------------------------------- Securities on a When-Issued Basis. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis can take place a month or more after the trade date. Normally the settlement date occurs within six months after the trade date; however, the Fund may, from time to time, purchase securities whose settlement date extends six months or more beyond trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The Fund maintains segregated assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on 36 | OPPENHEIMER MULTI-SECTOR INCOME TRUST a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such purchases while remaining substantially fully invested. As of October 31, 2003, the Fund had entered into when-issued purchase commitments of $31,601,499. In connection with its ability to purchase securities on a when-issued basis, the Fund may enter into forward roll transactions with respect to mortgage-related securities. Forward roll transactions require the sale of securities for delivery in the current month, and a simultaneous agreement with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments. Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities to what was sold to the counterparty at redelivery; counterparty credit risk; and the potential pay down speed variance between the mortgage-related pools. - -------------------------------------------------------------------------------- Security Credit Risk. The Fund invests in high-yield securities, which may be subject to a greater degree of credit risk, market fluctuations and loss of income and principal, and may be more sensitive to economic conditions than lower-yielding, higher-rated fixed-income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of October 31, 2003, securities with an aggregate market value of $4,629,143, representing 1.70% of the Fund's net assets, were in default. - -------------------------------------------------------------------------------- Foreign Currency Translation. The Fund's accounting records are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. Secured by U.S. government securities, these balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. 37 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued 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, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders, therefore, no federal income or excise tax provision is required. The tax components of capital shown in the table below represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes. Net Unrealized Appreciation Undistributed Undistributed Accumulated Based on Cost of Net Investment Long-Term Loss Securities for Federal Income Gain Carryforward1,2,3 Income Tax Purposes -------------------------------------------------------------------------- $8,435,095 $-- $36,799,271 $1,522,614 1. As of October 31, 2003, the Fund had $36,758,159 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of October 31, 2003, details of the capital loss carryforwards were as follows: Expiring ---------------------- 2006 $ 1,509,541 2007 11,561,894 2008 5,440,197 2009 4,239,210 2010 9,434,931 2011 4,572,386 ----------- Total $36,758,159 =========== 2. During the fiscal years ended October 31, 2003 and October 31, 2002, the Fund did not utilize any capital loss carryforwards. During the fiscal year ended October 31, 2003, $7,982,990 of unused capital loss carryforwards expired. 3. The Fund had $41,112 of straddle losses which were deferred. 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 may differ from their ultimate characterization for federal income tax purposes. 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. Accordingly, the following amounts have been reclassified for October 31, 2003. Net assets of the Fund were unaffected by the reclassifications. To From Net Ordinary Capital Tax Return Investment Income Loss of Capital Loss ------------------------------------------------------ $2,431,763 $5,551,138 $-- $-- 38 | OPPENHEIMER MULTI-SECTOR INCOME TRUST The tax character of distributions paid during the years ended October 31, 2003 and October 31, 2002 was as follows: Year Ended Year Ended October 31, 2003 October 31, 2002 ------------------------------------------------------ Distributions paid from: Ordinary income $14,030,362 $19,468,363 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 as of October 31, 2003 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities and other investments $436,740,013 ============ Gross unrealized appreciation $ 15,588,212 Gross unrealized depreciation (14,065,598) ------------ Net unrealized appreciation $ 1,522,614 ============ - -------------------------------------------------------------------------------- Trustees' Compensation. The Fund has adopted an unfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the year ended October 31, 2003, the Fund's projected benefit obligations were decreased by $2,998 and payments of $12,682 were made to retired trustees, resulting in an accumulated liability of $51,545 as of October 31, 2003. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or are invested in other Oppenheimer funds selected by the Trustee. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the Plan. - -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually. - -------------------------------------------------------------------------------- Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. 39 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued Expense Offset Arrangement. The reduction of custodian fees represents earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of $.01 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows: Year Ended October 31, 2003 Year Ended October 31, 2002 Shares Amount Shares Amount - -------------------------------------------------------------------------------- Net increase from dividends reinvested -- $-- 42,436 $355,582 - -------------------------------------------------------------------------------- 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended October 31, 2003, were $299,583,921 and $289,568,456, respectively. - -------------------------------------------------------------------------------- 4. Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for an annual fee of 0.65% on the Fund's average annual net assets. - -------------------------------------------------------------------------------- Transfer Agent Fees. Shareholder Financial Services, Inc. (SFSI), a wholly-owned subsidiary of the Manager, is the transfer agent and registrar for the Fund. Fees paid to SFSI are based on the number of accounts, plus out-of-pocket costs and expenses. - -------------------------------------------------------------------------------- 5. Foreign Currency Contracts A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. 40 | OPPENHEIMER MULTI-SECTOR INCOME TRUST The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing foreign currency exchange rates. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. The Fund may realize a gain or loss upon the closing or settlement of the foreign transaction. Contracts closed or settled with the same broker are recorded as net realized gain or loss. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of October 31, 2003, the Fund had outstanding foreign currency contracts as follows:
Contract Valuation Expiration Amount as of Unrealized Unrealized Contract Description Dates (000s) Oct. 31, 2003 Appreciation Depreciation - ------------------------------------------------------------------------------------------------ Contracts to Purchase Argentine Peso [ARP} 5/28/04- 6/8/04 1,570ARP $ 524,925 $ 34,059 $ -- Australian Dollar [AUD] 11/17/03- 12/1/03 11,495AUD 8,140,648 144,885 -- British Pound Sterling [GBP] 11/20/03- 12/1/03 945GBP 1,600,787 67,192 -- Chilean Peso [CLP] 11/25/03 540,014CLP 863,055 91,772 -- Columbian Peso [COP] 1/7/04 1,544,305COP 528,367 399 -- Euro [EUR] 11/20/03- 3/8/04 11,255EUR 13,064,480 418,197 63,411 Japanese Yen [JPY] 12/15/03- 3/17/04 2,706,200JPY 24,699,265 878,803 4,152 Mexican Nuevo Peso [MXN] 12/15/03- 1/7/04 19,357MXN 1,737,218 26,617 -- New Zealand Dollar [NZD] 12/1/03 1,140NZD 698,053 2,653 -- -------------------------- 1,664,577 67,563 -------------------------- Contracts to Sell Brazilian Real [BRR] 12/17/03 205BRR 70,019 598 -- British Pound Sterling [GBP] 3/9/04 590GBP 991,057 -- 66,822 Euro [EUR] 12/2/03- 4/27/04 16,310EUR 18,897,450 30,111 276,807 Indonesia Rupiah [IDR] 11/12/03 5,339,800IDR 628,473 -- 18,892 Japanese Yen [JPY] 11/10/03- 4/27/04 400,000JPY 3,644,285 16,440 47,129 Swiss Franc [CHF] 12/1/03 845CHF 633,289 8,320 -- -------------------------- 55,469 409,650 -------------------------- Total unrealized appreciation and depreciation $1,720,046 $477,213 ==========================
- -------------------------------------------------------------------------------- 6. Futures Contracts A futures contract is a commitment to buy or sell a specific amount of a commodity or financial instrument at a negotiated price on a stipulated future date. Futures contracts are traded on a commodity exchange. The Fund may buy and sell futures contracts that relate to broadly based securities indices "financial futures" or debt securities "interest rate 41 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Futures Contracts Continued futures" in order to gain exposure to or protection from changes in market value of stock and bonds or interest rates. The Fund may also buy or write put or call options on these futures contracts. The Fund generally sells futures contracts as a hedge against increases in interest rates and decreases in market value of portfolio securities. The Fund may also purchase futures contracts to gain exposure to market changes as it may be more efficient or cost effective than actually buying fixed income securities. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or has expired. Cash held by the broker to cover initial margin requirements on open futures contracts is noted in the Statement of Assets and Liabilities. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. The Statement of Assets and Liabilities reflects a receivable and/or payable for the daily mark to market for variation margin. Realized gains and losses are reported on the Statement of Operations as closing and expiration of futures contracts. The net change in unrealized appreciation and depreciation is reported on the Statement of Operations. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. As of October 31, 2003, the Fund had outstanding futures contracts as follows:
Unrealized Expiration Number of Valuation as of Appreciation Contract Description Dates Contracts Oct. 31, 2003 (Depreciation) - ------------------------------------------------------------------------------------------- Contracts to Purchase DAX Index 12/19/03 4 $ 425,359 $ 7,737 NASDAQ 100 Index 12/18/03 10 1,418,000 75,628 United Kingdom Long Gilt 12/29/03 2 388,805 (1,573) U.S. Long Bonds 12/19/03 94 10,219,563 83,679 U.S. Treasury Nts., 10 yr. 12/19/03 22 2,470,531 902 ---------- 166,373 ---------- Contracts to Sell Euro-Bundesobligation 12/8/03 10 1,310,719 (544) FTSE 100 Index 12/19/03 1 72,918 (1,018) Japan (Government of) Bonds, 10 yr. 12/11/03 2 2,491,654 489 Standard & Poor's 500 Index 12/18/03 5 1,311,875 (40,313) Standard & Poor's 500 E-Mini 12/19/03 8 419,800 (16,001) U.S. Treasury Nts., 2 yr. 12/29/03 143 30,669,031 33,433 U.S. Treasury Nts., 5 yr. 12/19/03 56 6,261,500 (116,085) ---------- (140,039) ---------- $ 26,334 ==========
42 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- 7. Option Activity The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the year ended October 31, 2003 was as follows:
Call Options Put Options ------------------------------- --------------------------------- Principal (000s)/ Principal (000s)/ Number of Amount of Number of Amount of Contracts Premiums Contracts Premiums - ----------------------------------------------------------------------------------------- Options outstanding as of October 31, 2002 -- $ -- -- $ -- Options written 1,302,378,700 273,430 393,101,010 153,505 Options closed or expired (1,726,955) (27,250) (2,101,010) (80,518) Options exercised (1,295,341,745) (176,506) -- -- -------------------------------------------------------------- Options outstanding as of October 31, 2003 5,310,000 $ 69,674 391,000,000 $ 72,987 ==============================================================
43 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 8. Interest Rate Swap Contracts The Fund may enter into an interest rate swap transaction to maintain a total return or yield spread on a particular investment, or portion of its portfolio, or for other non-speculative purposes. Interest rate swaps involve the exchange of commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments. The coupon payments are based on an agreed upon principal amount and a specified index. Because the principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as notional. The Fund records an increase or decrease to interest income, in the amount due to or owed by the Fund at termination or settlement. Interest rate swaps are subject to credit risk (if the counterparty fails to meet its obligations) and interest rate risk. The Fund could be obligated to pay more under its swap agreements than it receives under them, as a result of interest rate changes. As of October 31, 2003, the Fund had entered into the following interest rate swap agreements:
Fixed Rate Floating Rate Paid by Received by Unrealized Swap Notional the Fund at the Fund at Floating Termination Appreciation Counterparty Principal Oct. 31, 2003 Oct. 31, 2003 Rate Index Date (Depreciation) - ------------------------------------------------------------------------------------------------------- Deutsche Bank Three-Month AG $ 1,820,000 3.1025% 1.14% LIBOR flat 3/4/08 $ 25,804 JPMorgan Three-Month Chase Bank 4,300,000 3.052 1.14219 LIBOR flat 3/10/08 109,382 JPMorgan Six-Month Chase Bank 360,000EUR 3.14 2.081 LIBOR flat 7/14/08 10,456 JPMorgan Six-Month Chase Bank 100,600,000HUF 9.13 7.00 LIBOR flat 7/14/08 (16,889) --------- $128,753 =========
- -------------------------------------------------------------------------------- 9. Credit Swap Contracts The Fund may enter into a credit swap transaction to maintain a total return on a particular investment or portion of its portfolio, or for other non-speculative purposes. Because the principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as a notional principal amount. The Fund records an increase or decrease to interest income, in the amount due to or owed by the Fund at termination or settlement. Credit swaps are subject to credit risks (if the counterparty fails to meet its obligations). The Fund pays an annual interest fee on the notional amount in exchange for the counterparty paying in a potential credit event. 44 | OPPENHEIMER MULTI-SECTOR INCOME TRUST During the year ended October 31, 2003, the Fund entered into transactions to hedge credit risk. Information regarding the credit swaps is as follows:
Unrealized Expiration Notional Valuation as of Appreciation Contract Description Dates Amount Oct. 31, 2003 (Depreciation) - -------------------------------------------------------------------------------------------- Deutsche Bank AG, Colombia Credit Nts. 9/20/13 $150,000 $ 1,281 $ 1,281 Deutsche Bank AG, Colombia Credit Nts. 9/20/13 150,000 3,202 3,202 Deutsche Bank AG, Mexico Credit Bonds 9/20/13 630,000 (5,044) (5,044) Deutsche Bank AG, Philippines (Republic of) 5 yr. Credit Nts. 7/25/08 630,000 (3,775) (3,775) Deutsche Bank AG, Philippines (Republic of) 10 yr. Credit Bonds 7/25/13 630,000 2,049 2,049 Deutsche Bank AG, Philippines (Republic of) Credit Nts. 12/20/08 160,000 1,052 1,052 Deutsche Bank AG, Russia Federation Credit Bonds 9/20/13 790,000 (6,822) (6,822) Deutsche Bank AG, Russia Federation Credit Bonds 9/10/13 605,000 (3,050) (3,050) Deutsche Bank AG, Russia Federation Credit Bonds 10/30/13 1,280,000 (6,737) (6,737) Deutsche Bank AG, Turkey (Republic of) Credit Bonds 10/10/13 320,000 (12,035) (12,035) JPMorgan Chase Bank, Jordan (Kingdom of) Credit Nts. 6/6/06 175,000 905 905 JPMorgan Chase Bank, Russian Federation Credit Bonds 10/9/13 330,000 13,072 13,072 JPMorgan Chase Bank, TRAC-X Emerging Markets Default Bonds 1 12/20/08 255,000 (12,413) (12,413) --------- $(28,315) =========
1. Comprised of emerging markets credit swaps of which the underlying is comprised of a pool of emerging market entities and associated benchmark obligations. The Fund received a premium and is obligated to pay a rate that resets every six months primarily based upon default by an emerging market entity within the pool. - -------------------------------------------------------------------------------- 10. Swaption Transactions The Fund may enter into a swaption transaction, whereby a contract that grants the holder, in return for payment of the purchase price (the "premium") of the option, the right, but not the obligation, to enter into an interest rate swap at a preset rate within a specified period of time, with the writer of the contract. The writer receives premiums and bears the risk of unfavorable changes in the preset rate on the underlying interest rate swap. Swaption contracts written by the Fund do not give rise to counterparty credit risk as they obligate the Fund, not its counterparty, to perform. Swaptions written are reported as a liability in the Statement of Assets and Liabilities. As of October 31, 2003, the Fund had entered into the following swaption contracts: Notional Expiration Exercise Premium Market Value Swaptions Amount Date Price Received See Note 1 - -------------------------------------------------------------------------------- Deutsche Swaption $2,220,000 5/17/04 2.825% $19,758 $5,106 45 | OPPENHEIMER MULTI-SECTOR INCOME TRUST NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 11. Illiquid Securities As of October 31, 2003, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. The aggregate value of illiquid securities subject to this limitation as of October 31, 2003 was $15,250,041, which represents 5.60% of the Fund's net assets. - -------------------------------------------------------------------------------- 12. Securities Lending The Fund lends portfolio securities from time to time in order to earn additional income. In return, the Fund receives collateral in the form of US Treasury obligations or cash, against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the funds and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. Cash collateral in invested in cash equivalents. As of October 31, 2003, the Fund had on loan securities valued at $22,413,399. Cash of $22,768,407 was received as collateral for the loans, and has been invested in approved instruments. - -------------------------------------------------------------------------------- 13. Borrowing and Lending Arrangements The Fund entered into an "interfund borrowing and lending arrangement" with other funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity purposes. The arrangement was initiated pursuant to exemptive relief granted by the Securities and Exchange Commission to allow these affiliated funds to lend money to, and borrow money from, each other, in an attempt to reduce borrowing costs below those of bank loan facilities. Under the arrangement the Fund may lend money to other Oppenheimer funds and may borrow from other Oppenheimer funds at a rate set by the Fund's Board of Trustees, based upon a recommendation by the Manager. The Fund's borrowings, if any, are subject to asset coverage requirements under the Investment Company Act and the provisions of the SEC order and other applicable regulations. If the Fund borrows money, there is a risk that the loan could be called on one day's notice, in which case the Fund might have to borrow from a bank at higher rates if a loan were not available from another Oppenheimer fund. If the Fund lends money to another fund, it will be subject to the risk that the other fund might not repay the loan in a timely manner, or at all. The Fund had no interfund borrowings or loans outstanding during the year ended or at October 31, 2003. 46 | OPPENHEIMER MULTI-SECTOR INCOME TRUST INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Oppenheimer Multi-Sector Income Trust: We have audited the accompanying statement of assets and liabilities of Oppenheimer Multi-Sector Income Trust, including the statement of investments, as of October 31, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Multi-Sector Income Trust as of October 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Denver, Colorado November 21, 2003 47 | OPPENHEIMER MULTI-SECTOR INCOME TRUST FEDERAL INCOME TAX INFORMATION Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- In early 2004, if applicable, shareholders of record will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2003. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. None of the dividends paid by the Fund during the year ended October 31, 2003 are eligible for the corporate dividend-received deduction. A portion, if any, of the dividends paid by the Fund during the fiscal year ended October 31, 2003 which are not designated as capital gain distributions are eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. $106,326 of the Fund's fiscal year taxable income may be eligible for the lower individual income tax rates. In early 2004, shareholders of record will receive information regarding the percentage of distributions that are eligible for lower individual income tax rates. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund will be required to file new 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 first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov. 48 | OPPENHEIMER MULTI-SECTOR INCOME TRUST TRUSTEES AND OFFICERS Unaudited - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------- Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships Held Fund, Length of Service, Age by Trustee; Number of Portfolios in Fund Complex Currently Overseen by Trustee INDEPENDENT The address of each Trustee in the chart below is 6803 S. Tucson Way, TRUSTEES Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his or her resignation, retirement, death or removal. Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law firm). Other directorships: Chairman of the Board Weyerhaeuser Corp. (since 1999) and Danielson Holding Corp. (since 2002); of Trustees (since 2003), formerly a director of Caterpillar, Inc. (1993-December 2002). Oversees 25 Trustee (since 1991) portfolios in the OppenheimerFunds complex. Age: 72 Robert G. Galli, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in the Trustee (since 1996) OppenheimerFunds complex. Age: 70 Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J., a Trustee (since 1999) director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward Age: 65 Academy, a Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A member of: the National Academy of Sciences (since 1979), American Academy of Arts and Sciences (since 1995), American Philosophical Society (since 1996) and Council on Foreign Relations (since 2002). Formerly a director of Bankers Trust New York Corporation (1994-1999). Oversees 25 portfolios in the OppenheimerFunds complex. Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp. (privately-held financial Trustee (since 2002) adviser); Managing Director (since 2002) Carmona Motley, Inc. (privately-held Age: 51 financial adviser); Formerly he held the following positions: Managing Director (January 1998-December 2001), Carmona Motley Hoffman Inc. (privately-held financial adviser); Managing Director (January 1992-December 1997), Carmona Motley & Co. (privately-held financial adviser). Oversees 25 portfolios in the OppenheimerFunds complex. Kenneth A. Randall, A director of Dominion Resources, Inc. (electric utility holding company) and Trustee (since 1988) Prime Retail, Inc. (real estate investment trust); formerly a director of Age: 76 Dominion Energy, Inc. (electric power and oil & gas producer), President and Chief Executive Officer of The Conference Board, Inc. (international economic and business research) and a director of Lumbermens Mutual Casualty Company, American Motorists Insurance Company and American Manufacturers Mutual Insurance Company. Oversees 25 portfolios in the OppenheimerFunds complex. Edward V. Regan, President, Baruch College, CUNY; a director of RBAsset (real estate manager); a Trustee (since 1993) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB Age: 73 and GASB), Senior Fellow of Jerome Levy Economics Institute, Bard College, Chairman of Municipal Assistance Corporation for the City of New York, New York State Comptroller and Trustee of New York State and Local Retirement Fund. Oversees 25 investment companies in the OppenheimerFunds complex. Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate Trustee (since 1989) governance consulting and executive recruiting); a life trustee of International Age: 71 House (non-profit educational organization), and a trustee (since 1996) of the Greenwich Historical Society. Oversees 25 portfolios in the OppenheimerFunds complex.
49 | OPPENHEIMER MULTI-SECTOR INCOME TRUST TRUSTEES AND OFFICERS Unaudited / Continued - --------------------------------------------------------------------------------
Donald W. Spiro, Chairman Emeritus (since January 1991) of the Manager. Formerly a director Vice Chairman of (January 1969-August 1999) of the Manager. Oversees 25 portfolios in the the Board of Trustees, OppenheimerFunds complex. Trustee (since 1988) Age: 77 - -------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is Two World Financial Center, 225 AND OFFICER Liberty St., New York, NY 10281-1008. Mr. Murphy serves for an indefinite term, until his resignation, death or removal. John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President President and Trustee, (since September 2000) of the Manager; President and a director or trustee of Trustee (since 2001) other Oppenheimer funds; President and a director (since July 2001) of Age: 54 Oppenheimer Acquisition Corp. (the Manager's parent holding company) and of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc. (a subsidiary of the Manager); Chairman and a director (since July 2001) of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager); President and a director (since July 2001) of OppenheimerFunds Legacy Program (a charitable trust program established by the Manager); a director of the investment advisory subsidiaries of the Manager: OFI Institutional Asset Management, Inc. and Centennial Asset Management Corporation (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 1, 2001) and a director (since July 2001) of Oppenheimer Real Asset Management, Inc.; a director (since November 2001) of Trinity Investment Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of the Manager); Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company (the Manager's parent company); a director (since June 1995) of DLB Acquisition Corporation (a holding company that owns the shares of David L. Babson & Company, Inc.); formerly, Chief Operating Officer (September 2000-June 2001) of the Manager; President and trustee (November 1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end investment companies); a director (September 1999-August 2000) of C.M. Life Insurance Company; President, Chief Executive Officer and director (September 1999-August 2000) of MML Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 72 portfolios as Trustee/Officer and 10 portfolios as Officer in the OppenheimerFunds complex. - -------------------------------------------------------------------------------------------------------------------------- OFFICERS The address of the Officers in the chart below is as follows: for Messrs. Steinmetz, Wong and Zack, Two World Financial Center, 225 Liberty St., New York, NY 10281-1008, for Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves for an annual term or until his or her earlier resignation, death or removal. Arthur P. Steinmetz, Senior Vice President of the Manager (since March 1993) and of HarbourView Asset Vice President (since 1999) Management Corporation (since March 2000); an officer of 6 portfolios in the Age: 45 OppenheimerFunds complex.
50 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
Caleb Wong, Vice President (since June 1999) of the Adviser; worked in fixed-income Vice President (since 1999) quantitative research and risk management for the Adviser (since July 1996); an Age: 38 officer of 1 portfolio in the OppenheimerFunds complex; formerly Assistant Vice President of the Adviser (January 1997 - June 1999); before joining the Adviser in July 1996 he was enrolled in the Ph.D. program for Economics at the University of Chicago. Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer Treasurer (since 1999) (since March 1999) of HarbourView Asset Management Corporation, Shareholder Age: 44 Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000) and OFI Institutional Asset Management, Inc. (since November 2000) (offshore fund management subsidiaries of the Manager); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer (since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy Program (since April 2000); formerly Principal and Chief Operating Officer (March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An officer of 82 portfolios in the OppenheimerFunds complex. Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002) Secretary (since 2001) of the Manager; General Counsel and a director (since November 2001) of Age: 55 OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel (since November 2001) of HarbourView Asset Management Corporation; Vice President and a director (since November 2000) of Oppenheimer Partnership Holdings, Inc.; Senior Vice President, General Counsel and a director (since November 2001) of Shareholder Services, Inc., Shareholder Financial Services, Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI Institutional Asset Management, Inc.; General Counsel (since November 2001) of Centennial Asset Management Corporation; a director (since November 2001) of Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director (since November 2001) of OppenheimerFunds International Ltd.; Vice President (since November 2001) of OppenheimerFunds Legacy Program; Secretary (since November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November 2001); OppenheimerFunds International Ltd. and OppenheimerFunds plc (October 1997-November 2001). An officer of 82 portfolios in the OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information about the Fund's Trustees and is available without charge upon request. 51 | OPPENHEIMER MULTI-SECTOR INCOME TRUST ITEM 2. CODE OF ETHICS ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board of Trustees of the Fund has determined that Edward V. Regan, the Chairman of the Board's Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Mr. Regan as the Audit Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED ITEM 5. NOT APPLICABLE ITEM 6. RESERVED ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund will be required to file new 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 first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov. ITEM 8. RESERVED ITEM 9. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940 (17 CFR 270.30a-2(c)) as of October 31, 2003, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation as indicated, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.CERT 3 ex99_302cert-680.txt EX99_302CERT-680.TXT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: -------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer Multi-Sector Income Trust; 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 registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) 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) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. Date: 12/16/03 /s/John V. Murphy ---------------------------- John V. Murphy Chief Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: --------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer Multi-Sector Income Trust; 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 registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) 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) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. Date: 12/16/03 /s/Brian W. Wixted ---------------------------- Brian W. Wixted Chief Financial Officer EX-99.906 4 ex99_906cert-680.txt EX99_906CERT-680.TXT 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 2003 John V. Murphy, Chief Executive Officer, and Brian W. Wixted, Chief -------------- --------------- Financial Officer, of Oppenheimer Multi-Sector Income Trust (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended October 31, 2003 (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. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Chief Executive Officer Chief Financial Officer Oppenheimer Multi-Sector Income Oppenheimer Multi-Sector Income Trust Trust /s/John V. Murphy /s/Brian W. Wixted - ---------------------------- ---------------------------- John V. Murphy Brian W. Wixted Date: 12/16/03 Date: 12/16/03 EX-99.CODE ETH 5 ex99_code-680.txt EX99_CODE-680.TXT EX-99.CODE ETH CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE OPPENHEIMER FUNDS AND OF OPPENHEIMERFUNDS, INC. This Code of Ethics for Principal Executive and Senior Financial Officers (referred to in this document as the "Code") has been adopted by each of the investment companies for which OppenheimerFunds, Inc. or one of its subsidiaries or affiliates (referred to collectively in this document as "OFI") acts as investment adviser (individually, a "Fund" and collectively, the "Funds"), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406. This Code applies to each Fund's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions ("Covered Officers"). A listing of positions currently within the ambit of Covered Officers is attached as EXHIBIT A.(1) 1. Purpose of the Code This Code sets forth standards and procedures that are reasonably designed to deter wrongdoing and promote: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely, and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; o compliance with applicable governmental laws, rules and regulations; o the prompt internal reporting of violations of this Code to the Code Administrator identified below; and o accountability for adherence to this Code. In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of their positions; (3) the duty to assure that a Fund's financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds' business and affairs in an honest and ethical manner. - -------- 1 The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by the Oppenheimer Funds dated May 15, 2002, under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFI's fiduciary duties to each Fund, the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds. 2. Prohibitions The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders. No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders. No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations. No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund: (i) employ any device, scheme or artifice to defraud a Fund or its shareholders; (ii) intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public; (iii) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders; (iv) engage in any manipulative practice with respect to any Fund; (v) use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders; (vi) intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund; (vii) intentionally mislead or omit to provide material information to the Fund's independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters; (viii) fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws; (ix) retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or (x) fails to acknowledge or certify compliance with this Code if requested to do so. 3. Reports of Conflicts of Interests If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officer's reasonable belief, the appearance of one, he or she must immediately report the matter to the Code's Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the OFI's Chief Executive Officer. Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Fund's Board of Trustees/Directors. 4. Waivers Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI or to the Fund. In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver: : (i) is prohibited by this Code; (ii) is consistent with honest and ethical conduct; and (iii) will result in a conflict of interest between the Covered Officer's personal and professional obligations to a Fund. In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Fund's Board of Trustees/Directors. 5. Reporting Requirements (a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code. (b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto. (c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser. (d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; (iv) interpretations issued under the Code by the Code Administrator; and (v) any other significant information arising under the Code including any proposed amendments. (e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code. (f) Any changes to or waivers of this Code, including "implicit" waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules.(2) 6. Annual Renewal At least annually, the Board of Trustees/Directors of each Fund shall review the Code and determine whether any amendments (including any amendments that may be recommended by OFI or the Fund's legal counsel) are necessary or desirable, and shall consider whether to renew and/or amend the Code. 7. Sanctions Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI. 8. Administration and Construction (a) The administration of this Code of Ethics shall be the responsibility of OFI's General Counsel or his designee as the "Code Administrator" of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds. (b) The duties of such Code Administrator will include: (i) Continuous maintenance of a current list of the names of all Covered Officers; (ii) Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder; (iii) Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder; (iv) Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations; (v) Conducting such inspections or investigations as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI and to the Trustees/Directors of the - --------- 2 An "implicit waiver" is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, an executive officer of the Fund or OFI. affected Fund(s) or any committee appointed by them to deal with such information; and (vi) Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code. (c) In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator shall be protected from any liability hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment. 9. Required Records The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred): (a) A copy of any Code which has been in effect during the period; (b) A record of any violation of any such Code and of any action taken as a result of such violation, during the period; (c) A copy of each annual report pursuant to the Code made by a Covered Officer during the period; (d) A copy of each report made by the Code Administrator pursuant to this Code during the period; (e) A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports; (f) A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and (g) A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision. 10. Amendments and Modifications This Code may not be amended or modified except by an amendment in writing which is approved or ratified by OFI and by a majority vote of the Independent Trustees/Directors of each of the applicable Funds. 11. Confidentiality. This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process. Dated as of: June 25, 2003 Adopted by Board I of the Oppenheimer Funds June 13, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board II of the Oppenheimer/Centennial Funds June 24, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board III of the Oppenheimer Funds June 9, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board IV of the Oppenheimer Funds May 21, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by the Boards of Directors of OppenheimerFunds, Inc. and its subsidiaries and affiliates that act as investment adviser to the Oppenheimer or Centennial funds June 1, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Senior Vice President and General Counsel EXHIBIT A POSITIONS COVERED BY THIS CODE OF ETHICS FOR SENIOR OFFICERS Each Oppenheimer or Centennial fund Principal Executive Officer Principal Financial Officer Treasurer Assistant Treasurer Personnel of OFI who by virtue of their jobs perform critical financial and accounting functions for OFI on behalf of a Fund, including: Treasurer Senior Vice President/Fund Accounting Vice President/Fund Accounting -----END PRIVACY-ENHANCED MESSAGE-----