-----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, HN0XNPgXnRSnr+Y7r/Uz+RlzKdJkfJ/woK23IS6iPJOEDRiYbHelfS+vdCNGS4eF 5gRVpJ4a0u4MQhvQXj9e2g== 0000935069-04-000907.txt : 20040628 0000935069-04-000907.hdr.sgml : 20040628 20040628171612 ACCESSION NUMBER: 0000935069-04-000907 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040430 FILED AS OF DATE: 20040628 EFFECTIVENESS DATE: 20040628 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05473 FILM NUMBER: 04886077 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-CSRS 1 rs0680_10915.txt RS0680_10915.TXT 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, 2003 - April 30, 2004 Item 1. Reports to Stockholders. - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS April 30, 2004 / Unaudited - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT SECTOR--7.2% - ------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--7.2% Federal Home Loan Mortgage Corp. Unsec. Nts.: 2.75%, 8/15/06 $ 380,000 $ 380,912 4.50%, 1/15/13 1 2,075,000 2,023,561 4.875%, 3/15/07-11/15/13 3,540,000 3,631,691 5.50%, 7/15/06 1,495,000 1,587,422 5.75%, 1/15/12 450,000 480,162 - ------------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. Unsec. Nts.: 1.80%, 5/27/05 2 550,000 550,141 4.25%, 7/15/07 3,4 5,945,000 6,127,321 6%, 5/15/08 2,000,000 2,173,378 7.25%, 5/15/30 520,000 623,426 - ------------------------------------------------------------------------------------------------------------------------- Resolution Funding Corp. Federal Book Entry Principal Strips, 5.85%, 1/15/21 5 715,000 276,458 - ------------------------------------------------------------------------------------------------------------------------- Tennessee Valley Authority Bonds: Series C, 4.75%, 8/1/13 650,000 644,873 Series C, 6%, 3/15/13 625,000 679,232 - ------------------------------------------------------------------------------------------------------------------------- United States (Government of) Gtd. Israel Aid Bonds, 5.50%, 12/4/23 560,000 559,506 ----------------- Total U.S. Government Sector (Cost $20,117,884) 19,738,083 SHARES - ------------------------------------------------------------------------------------------------------------------------- CORPORATE SECTOR--33.5% - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--0.5% AboveNet, Inc. 6 186 7,440 - ------------------------------------------------------------------------------------------------------------------------- Aurora Foods, Inc., Equity Trust Interests 6,7 113 146,123 - ------------------------------------------------------------------------------------------------------------------------- Capital Gaming International, Inc. 6,7 18 -- - ------------------------------------------------------------------------------------------------------------------------- Classic Cable, Inc. 6 793 -- - ------------------------------------------------------------------------------------------------------------------------- Covad Communications Group, Inc. 6 6,198 12,396 - ------------------------------------------------------------------------------------------------------------------------- Dobson Communications Corp., Cl. A 6 38,618 110,602 - ------------------------------------------------------------------------------------------------------------------------- Equinix, Inc. 6 6,573 193,180 - ------------------------------------------------------------------------------------------------------------------------- Globix Corp. 6 6,880 23,014 - ------------------------------------------------------------------------------------------------------------------------- ICO Global Communication Holdings Ltd. 6,7 24,061 26,467 - ------------------------------------------------------------------------------------------------------------------------- Manitowoc Co., Inc. (The) 173 5,261 - ------------------------------------------------------------------------------------------------------------------------- MCI, Inc. 6 815 11,557 - ------------------------------------------------------------------------------------------------------------------------- Metromedia, Escrow Shares 6,9 200,000 -- - ------------------------------------------------------------------------------------------------------------------------- NTL, Inc. 6 3,879 220,211 - ------------------------------------------------------------------------------------------------------------------------- Orbital Sciences Corp. 6 651 8,385 - ------------------------------------------------------------------------------------------------------------------------- Pioneer Cos., Inc. 6 5,655 26,776 - ------------------------------------------------------------------------------------------------------------------------- Polymer Group, Inc., Cl. A 6 6,878 96,154 - ------------------------------------------------------------------------------------------------------------------------- Prandium, Inc. 6 14,499 942 - ------------------------------------------------------------------------------------------------------------------------- Star Gas Partners LP 220 4,946
6 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS Continued Sterling Chemicals, Inc. 6 253 $ 6,483 - ------------------------------------------------------------------------------------------------------------------------- TVMAX Holdings, Inc. 6,7 2,500 19,500 - ------------------------------------------------------------------------------------------------------------------------- UnitedGlobalCom, Inc., Cl. A 6 53,053 396,836 - ------------------------------------------------------------------------------------------------------------------------- WRC Media Corp. 6,7 676 14 - ------------------------------------------------------------------------------------------------------------------------- XO Communications, Inc. 6 1,091 5,531 ----------------- 1,321,818 PRINCIPAL AMOUNT - ------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--32.0% - ------------------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--10.9% - ------------------------------------------------------------------------------------------------------------------------- AUTO COMPONENTS--1.3% Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts., Series B, 2/15/10 $ 200,000 213,000 - ------------------------------------------------------------------------------------------------------------------------- Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11 200,000 208,000 - ------------------------------------------------------------------------------------------------------------------------- Dana Corp., 9% Unsec. Nts., 8/15/11 600,000 711,000 - ------------------------------------------------------------------------------------------------------------------------- Dura Operating Corp.: 8.625% Sr. Nts., Series B, 4/15/12 400,000 420,000 9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 600,000 600,000 - ------------------------------------------------------------------------------------------------------------------------- Eagle-Picher, Inc., 9.75% Sr. Nts., 9/1/13 200,000 220,000 - ------------------------------------------------------------------------------------------------------------------------- Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 700,000 807,625 - ------------------------------------------------------------------------------------------------------------------------- Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 200,000 240,000 - ------------------------------------------------------------------------------------------------------------------------- Tenneco Automotive, Inc., 10.25% Sr. Sec. Nts., Series B, 7/15/13 100,000 115,750 - ------------------------------------------------------------------------------------------------------------------------- United Components, Inc., 9.375% Sr. Sub. Nts., 6/15/13 100,000 107,000 ----------------- 3,642,375 - ------------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--2.4% Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 7 400,000 142,000 - ------------------------------------------------------------------------------------------------------------------------- Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 250,000 281,875 - ------------------------------------------------------------------------------------------------------------------------- Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 200,000 221,000 - ------------------------------------------------------------------------------------------------------------------------- Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 6,7,10 5,500 -- - ------------------------------------------------------------------------------------------------------------------------- Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09 200,000 211,250 - ------------------------------------------------------------------------------------------------------------------------- Domino's, Inc., 8.25% Sr. Unsec. Sub. Nts., 7/1/11 200,000 217,000 - ------------------------------------------------------------------------------------------------------------------------- Hilton Hotels Corp.: 7.625% Nts., 12/1/12 200,000 224,500 7.625% Nts., 5/15/08 200,000 220,500 - ------------------------------------------------------------------------------------------------------------------------- Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12 200,000 226,500 - ------------------------------------------------------------------------------------------------------------------------- John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B, 5/15/12 200,000 221,000 - ------------------------------------------------------------------------------------------------------------------------- Mandalay Resort Group, 10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07 500,000 583,750 - ------------------------------------------------------------------------------------------------------------------------- MGM Grand, Inc., 9.75% Sr. Unsec. Sub. Nts., 6/1/07 150,000 170,250 - ------------------------------------------------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority: 6.375% Sr. Sub. Nts., 7/15/09 150,000 153,750 8.375% Sr. Sub. Nts., 7/1/11 7 400,000 438,000
7 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE Continued Penn National Gaming, Inc., 8.875% Sr. Sub. Nts., 3/15/10 7 $ 300,000 $ 327,750 - ------------------------------------------------------------------------------------------------------------------------- Pinnacle Entertainment, Inc., 8.25% Sr. Sub. Nts., 3/15/12 11 250,000 241,875 - ------------------------------------------------------------------------------------------------------------------------- Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 200,000 212,000 - ------------------------------------------------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd., 8% Sr. Unsec. Nts., 5/15/10 150,000 164,250 - ------------------------------------------------------------------------------------------------------------------------- Six Flags, Inc.: 8.875% Sr. Nts., 2/1/10 250,000 255,625 9.75% Sr. Nts., 4/15/13 600,000 635,250 - ------------------------------------------------------------------------------------------------------------------------- Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr. Nts., 5/1/12 400,000 439,500 - ------------------------------------------------------------------------------------------------------------------------- Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub. Nts., 8/15/11 500,000 557,500 - ------------------------------------------------------------------------------------------------------------------------- Universal City Development Partners Ltd., 11.75% Sr. Nts., 4/1/10 200,000 232,000 - ------------------------------------------------------------------------------------------------------------------------- Venetian Casino Resort LLC/Las Vegas Sands, Inc., 11% Sec. Nts., 6/15/10 200,000 235,000 ----------------- 6,612,125 - ------------------------------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES--1.6% Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 500,000 543,750 - ------------------------------------------------------------------------------------------------------------------------- Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 7 400,000 434,000 - ------------------------------------------------------------------------------------------------------------------------- D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 1 500,000 590,000 - ------------------------------------------------------------------------------------------------------------------------- K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12 300,000 327,750 - ------------------------------------------------------------------------------------------------------------------------- KB Home: 8.625% Sr. Sub. Nts., 12/15/08 500,000 548,750 9.50% Sr. Unsec. Sub. Nts., 2/15/11 500,000 561,250 - ------------------------------------------------------------------------------------------------------------------------- Meritage Corp., 9.75% Sr. Unsec. Nts., 6/1/11 150,000 167,813 - ------------------------------------------------------------------------------------------------------------------------- Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 400,000 386,000 - ------------------------------------------------------------------------------------------------------------------------- Sealy Mattress Co., 8.25% Sr. Sub. Nts., 6/15/14 11 175,000 171,500 - ------------------------------------------------------------------------------------------------------------------------- Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 100,000 110,750 - ------------------------------------------------------------------------------------------------------------------------- WCI Communities, Inc., 9.125% Sr. Sub. Nts., 5/1/12 200,000 219,000 - ------------------------------------------------------------------------------------------------------------------------- William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 200,000 231,000 ----------------- 4,291,563 - ------------------------------------------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS--0.1% Remington Arms Co., Inc., 10.50% Sr. Unsec. Nts., 2/1/11 150,000 150,000 - ------------------------------------------------------------------------------------------------------------------------- MEDIA--4.6% Adelphia Communications Corp.: 8.125% Sr. Nts., Series B, 7/15/03 6,10 250,000 261,250 9.875% Sr. Nts., Series B, 3/1/07 6,10 300,000 325,500 10.25% Sr. Unsec. Nts., 11/1/06 6,10 100,000 107,500 10.25% Sr. Unsec. Sub. Nts., 6/15/11 6,10 300,000 334,500 10.875% Sr. Unsec. Nts., 10/1/10 6,10 100,000 109,500 - ------------------------------------------------------------------------------------------------------------------------- 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., 2/1/11 360,000 378,000 - ------------------------------------------------------------------------------------------------------------------------- Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 200,000 211,000
8 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- MEDIA Continued Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: 8.625% Sr. Unsec. Nts., 4/1/09 $ 1,300,000 $ 1,085,500 11.125% Sr. Unsec. Nts., 1/15/11 400,000 354,000 - ------------------------------------------------------------------------------------------------------------------------- Cinemark USA, Inc., 9% Sr. Unsec. Sub. Nts., 2/1/13 100,000 110,000 - ------------------------------------------------------------------------------------------------------------------------- Cinemark, Inc., 0%/9.75% Sr. Disc. Nts., 3/15/14 11,12 200,000 126,250 - ------------------------------------------------------------------------------------------------------------------------- CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B, 4/1/11 625,000 653,125 - ------------------------------------------------------------------------------------------------------------------------- DirecTV Holdings LLC/DirecTV Financing Co., Inc., 8.375% Sr. Unsec. Nts., 3/15/13 400,000 449,000 - ------------------------------------------------------------------------------------------------------------------------- EchoStar DBS Corp., 10.375% Sr. Unsec. Nts., 10/1/07 750,000 814,688 - ------------------------------------------------------------------------------------------------------------------------- Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 600,000 629,250 - ------------------------------------------------------------------------------------------------------------------------- Entravision Communications Corp., 8.125% Sr. Sub. Nts., 3/15/09 100,000 106,500 - ------------------------------------------------------------------------------------------------------------------------- Hollinger International Publishing, Inc., 9% Sr. Unsec. Nts., 12/15/10 400,000 446,000 - ------------------------------------------------------------------------------------------------------------------------- Houghton Mifflin Co., 8.25% Sr. Unsec. Nts., 2/1/11 200,000 203,000 - ------------------------------------------------------------------------------------------------------------------------- Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 150,000 148,500 - ------------------------------------------------------------------------------------------------------------------------- LodgeNet Entertainment Corp., 9.50% Sr. Sub. Debs., 6/15/13 7 100,000 110,500 - ------------------------------------------------------------------------------------------------------------------------- Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13 600,000 600,000 - ------------------------------------------------------------------------------------------------------------------------- News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 380,000 476,826 - ------------------------------------------------------------------------------------------------------------------------- PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 400,000 454,000 - ------------------------------------------------------------------------------------------------------------------------- PRIMEDIA, Inc., 8% Sr. Nts., 5/15/13 11 500,000 496,250 - ------------------------------------------------------------------------------------------------------------------------- R.H. Donnelley Financial Corp. I, 10.875% Sr. Sub. Nts., 12/15/12 11 200,000 239,000 - ------------------------------------------------------------------------------------------------------------------------- Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 200,000 222,500 - ------------------------------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 8% Sr. Unsec. Sub. Nts., 3/15/12 1,200,000 1,281,000 8.75% Sr. Sub. Nts., 12/15/11 300,000 331,500 - ------------------------------------------------------------------------------------------------------------------------- Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub. Nts., 11/1/09 300,000 318,750 - ------------------------------------------------------------------------------------------------------------------------- Vertis, Inc., 9.75% Sr. Sec. Nts., 4/1/09 100,000 109,250 - ------------------------------------------------------------------------------------------------------------------------- Von Hoffmann Corp., 10.25% Sr. Unsec. Nts., 3/15/09 100,000 104,500 - ------------------------------------------------------------------------------------------------------------------------- WRC Media, Inc./Weekly Reader Corp./CompassLearning, Inc., 12.75% Sr. Sub. Nts., 11/15/09 300,000 301,500 ----------------- 12,718,639 - ------------------------------------------------------------------------------------------------------------------------- MULTILINE RETAIL--0.2% Saks, Inc., 9.875% Nts., 10/1/11 400,000 479,000 - ------------------------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL--0.4% Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 200,000 209,000 - ------------------------------------------------------------------------------------------------------------------------- Finlay Enterprises, Inc., 9% Debs., 5/1/08 400,000 412,500 - ------------------------------------------------------------------------------------------------------------------------- Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 300,000 310,125 - ------------------------------------------------------------------------------------------------------------------------- Hollywood Entertainment Corp., 9.625% Sr. Sub. Nts., 3/15/11 7 150,000 175,500 ----------------- 1,107,125
9 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--0.3% Broder Bros. Co., 11.25% Sr. Nts., 10/15/10 11 $ 150,000 $ 146,250 - ------------------------------------------------------------------------------------------------------------------------- Consoltex Group, Inc., 11% Sr. Sub. Nts., 1/31/09 7,13 460,574 46 - ------------------------------------------------------------------------------------------------------------------------- Levi Strauss & Co.: 11.625% Sr. Unsec. Nts., 1/15/08 200,000 183,000 12.25% Sr. Nts., 12/15/12 250,000 225,000 - ------------------------------------------------------------------------------------------------------------------------- Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 11 150,000 160,875 - ------------------------------------------------------------------------------------------------------------------------- Russell Corp., 9.25% Sr. Nts., 5/1/10 100,000 105,500 ----------------- 820,671 - ------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES--1.7% - ------------------------------------------------------------------------------------------------------------------------- BEVERAGES--0.0% Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12 100,000 109,500 - ------------------------------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--0.4% Delhaize America, Inc., 8.125% Unsub. Debs., 4/15/11 341,000 382,019 - ------------------------------------------------------------------------------------------------------------------------- Fleming Cos., Inc.: 10.125% Sr. Unsec. Nts., 4/1/08 6,7,10 500,000 70,000 10.625% Sr. Unsec. Sub. Nts., Series D, 7/31/07 6,7,10 200,000 1,250 - ------------------------------------------------------------------------------------------------------------------------- Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11 200,000 174,500 - ------------------------------------------------------------------------------------------------------------------------- Rite Aid Corp.: 8.125% Sr. Sec. Nts., 5/1/10 250,000 271,250 9.50% Sr. Sec. Nts., 2/15/11 100,000 112,750 ----------------- 1,011,769 - ------------------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS--0.6% Burns Philp Capital Property Ltd., 9.75% Sr. Unsec. Sub. Nts., 7/15/12 100,000 106,000 - ------------------------------------------------------------------------------------------------------------------------- Del Monte Corp., 8.625% Sr. Sub. Nts., 12/15/12 200,000 222,000 - ------------------------------------------------------------------------------------------------------------------------- Doane Pet Care Co., 10.75% Sr. Nts., 3/1/10 7 200,000 212,000 - ------------------------------------------------------------------------------------------------------------------------- Dole Food Co., Inc., 8.875% Sr. Unsec. Nts., 3/15/11 50,000 53,500 - ------------------------------------------------------------------------------------------------------------------------- Hines Nurseries, Inc., 10.25% Sr. Unsec. Sub. Nts., 10/1/11 100,000 110,000 - ------------------------------------------------------------------------------------------------------------------------- Pinnacle Foods Holding Corp., 8.25% Sr. Sub. Nts., 12/1/13 11 200,000 209,750 - ------------------------------------------------------------------------------------------------------------------------- Smithfield Foods, Inc.: 7.625% Sr. Unsec. Sub. Nts., 2/15/08 400,000 427,000 8% Sr. Nts., Series B, 10/15/09 300,000 332,250 ----------------- 1,672,500 - ------------------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--0.7% AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 7 600,000 627,000 - ------------------------------------------------------------------------------------------------------------------------- Holmes Products Corp., 9.875% Sr. Unsec. Sub. Nts., Series B, 11/15/07 7 300,000 306,438 - ------------------------------------------------------------------------------------------------------------------------- Playtex Products, Inc., 8% Sr. Sec. Nts., 3/1/11 11 300,000 316,500 - ------------------------------------------------------------------------------------------------------------------------- Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05 500,000 565,000 - ------------------------------------------------------------------------------------------------------------------------- Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08 6,7,10 400,000 -- ----------------- 1,814,938
10 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- ENERGY--1.6% - ------------------------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--0.4% Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts., 8/1/08 $ 750,000 $ 826,875 - ------------------------------------------------------------------------------------------------------------------------- Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 100,000 106,500 - ------------------------------------------------------------------------------------------------------------------------- Universal Compression, Inc., 7.25% Sr. Unsec. Sub. Nts., 5/15/10 200,000 215,500 ----------------- 1,148,875 - ------------------------------------------------------------------------------------------------------------------------- OIL & GAS--1.2% Chesapeake Energy Corp., 6.875% Sr. Unsec. Nts., 1/15/16 336,000 342,720 - ------------------------------------------------------------------------------------------------------------------------- Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 200,000 215,000 - ------------------------------------------------------------------------------------------------------------------------- Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 600,000 663,000 - ------------------------------------------------------------------------------------------------------------------------- GulfTerra Energy Partners LP: 8.50% Sr. Unsec. Sub. Nts., Series B, 6/1/10 108,000 120,960 10.625% Sr. Sub. Nts., 12/1/12 134,000 165,490 - ------------------------------------------------------------------------------------------------------------------------- Pemex Project Funding Master Trust, 8.50% Unsub. Nts., 2/15/08 265,000 298,125 - ------------------------------------------------------------------------------------------------------------------------- Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12 200,000 229,935 - ------------------------------------------------------------------------------------------------------------------------- Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 7 500,000 575,000 - ------------------------------------------------------------------------------------------------------------------------- Tesoro Petroleum Corp., 8% Sr. Sec. Nts., 4/15/08 100,000 108,250 - ------------------------------------------------------------------------------------------------------------------------- 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) 14 100,000 114,000 - ------------------------------------------------------------------------------------------------------------------------- Westport Resources Corp., 8.25% Sr. Unsec. Sub. Nts., 11/1/11 200,000 225,500 - ------------------------------------------------------------------------------------------------------------------------- XTO Energy, Inc., 7.50% Sr. Nts., 4/15/12 100,000 115,038 ----------------- 3,173,018 - ------------------------------------------------------------------------------------------------------------------------- FINANCIALS--1.4% - ------------------------------------------------------------------------------------------------------------------------- CAPITAL MARKETS--0.3% American Color Graphics, Inc., 10% Sr. Sec. Nts., 6/15/10 100,000 86,500 - ------------------------------------------------------------------------------------------------------------------------- Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 200,000 227,000 - ------------------------------------------------------------------------------------------------------------------------- Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 800,000 528,000 ----------------- 841,500 - ------------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS--0.1% Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12 300,000 341,250 - ------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--0.4% Finova Group, Inc. (The), 7.50% Nts., 11/15/09 400,000 241,000 - ------------------------------------------------------------------------------------------------------------------------- LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07 250,000 301,250 - ------------------------------------------------------------------------------------------------------------------------- Pemex Project Funding Master Trust, 7.375% Unsec. Unsub. Nts., 12/15/14 410,000 430,500 ----------------- 972,750 - ------------------------------------------------------------------------------------------------------------------------- INSURANCE--0.1% Arbor I Ltd., 16.61% Nts., 6/15/06 7,15 250,000 252,700
11 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- REAL ESTATE--0.5% Felcor Lodging LP, 9% Sr. Nts., 6/1/11 $ 285,000 $ 305,663 - ------------------------------------------------------------------------------------------------------------------------- Host Marriott LP, 9.50% Sr. Nts., 1/15/07 400,000 446,000 - ------------------------------------------------------------------------------------------------------------------------- MeriStar Hospitality Corp., 9.125% Sr. Unsec. Nts., 1/15/11 700,000 731,500 ----------------- 1,483,163 - ------------------------------------------------------------------------------------------------------------------------- HEALTH CARE--2.2% - ------------------------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--0.3% Fisher Scientific International, Inc., 8.125% Sr. Sub. Nts., 5/1/12 174,000 189,660 - ------------------------------------------------------------------------------------------------------------------------- Inverness Medical Innovations, Inc., 8.75% Sr. Sub. Nts., 2/15/12 11 150,000 154,125 - ------------------------------------------------------------------------------------------------------------------------- Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub. Nts., 8/1/11 400,000 436,000 ----------------- 779,785 - ------------------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--1.9% AmeriPath, Inc., 10.50% Sr. Unsec. Sub. Nts., 4/1/13 100,000 103,000 - ------------------------------------------------------------------------------------------------------------------------- Extendicare Health Services, Inc., 9.50% Sr. Unsec. Sub. Nts., 7/1/10 7 100,000 111,500 - ------------------------------------------------------------------------------------------------------------------------- Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08 7 900,000 979,875 - ------------------------------------------------------------------------------------------------------------------------- Healthsouth Corp., 7.625% Nts., 6/1/12 800,000 812,000 - ------------------------------------------------------------------------------------------------------------------------- Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts., Series B, 8/15/12 200,000 228,000 - ------------------------------------------------------------------------------------------------------------------------- NDCHealth Corp., 10.50% Sr. Unsec. Sub. Nts., 12/1/12 600,000 672,000 - ------------------------------------------------------------------------------------------------------------------------- PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub. Nts., 6/1/09 7 259,000 302,383 - ------------------------------------------------------------------------------------------------------------------------- Quintiles Transnational Corp., 10% Sr. Sub. Nts., 10/1/13 11 150,000 156,000 - ------------------------------------------------------------------------------------------------------------------------- Rotech Healthcare, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/12 400,000 428,000 - ------------------------------------------------------------------------------------------------------------------------- Tenet Healthcare Corp.: 5.375% Sr. Unsec. Nts., 11/15/06 100,000 95,250 6.375% Sr. Nts., 12/1/11 237,000 207,968 - ------------------------------------------------------------------------------------------------------------------------- Triad Hospitals, Inc., 8.75% Sr. Unsec. Nts., Series B, 5/1/09 700,000 779,625 - ------------------------------------------------------------------------------------------------------------------------- US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 200,000 238,000 ----------------- 5,113,601 - ------------------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS--0.0% aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 100,000 90,500 - ------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS--4.1% - ------------------------------------------------------------------------------------------------------------------------- AEROSPACE & DEFENSE--0.5% Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts., 5/15/11 200,000 221,000 - ------------------------------------------------------------------------------------------------------------------------- BE Aerospace, Inc.: 8.50% Sr. Unsec. Nts., 10/1/10 100,000 109,000 8.875% Sr. Unsec. Sub. Nts., 5/1/11 200,000 194,000 - ------------------------------------------------------------------------------------------------------------------------- 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., 12/15/12 150,000 164,250 - ------------------------------------------------------------------------------------------------------------------------- TD Funding Corp., 8.375% Sr. Sub. Nts., 7/15/11 200,000 212,500
12 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- AEROSPACE & DEFENSE Continued TRW Automotive, Inc.: 9.375% Sr. Nts., 2/15/13 $ 134,000 $ 154,100 11% Sr. Sub. Nts., 2/15/13 97,000 115,915 - ------------------------------------------------------------------------------------------------------------------------- Vought Aircraft Industries, Inc., 8% Sr. Nts., 7/15/11 11 100,000 102,000 ----------------- 1,413,390 - ------------------------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS--0.1% Atlas Air, Inc.: 9.25% Sr. Nts., 4/15/08 6,10 200,000 103,000 9.375% Sr. Unsec. Nts., 11/15/06 6,10 300,000 154,500 ----------------- 257,500 - ------------------------------------------------------------------------------------------------------------------------- AIRLINES--0.8% America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05 1,000,000 1,000,000 - ------------------------------------------------------------------------------------------------------------------------- ATA Holdings Corp., 13% Sr. Unsec. Nts., 2/1/09 11 1,260,000 1,104,075 ----------------- 2,104,075 - ------------------------------------------------------------------------------------------------------------------------- BUILDING PRODUCTS--0.1% Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 100,000 112,000 - ------------------------------------------------------------------------------------------------------------------------- Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts., 7/1/10 156,000 175,500 - ------------------------------------------------------------------------------------------------------------------------- Nortek, Inc., 9.875% Sr. Unsec. Sub. Nts., 6/15/11 100,000 112,750 ----------------- 400,250 - ------------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--1.4% Allied Waste North America, Inc.: 7.875% Sr. Nts., 4/15/13 200,000 216,000 7.875% Sr. Unsec. Nts., Series B, 1/1/09 34,000 35,445 8.50% Sr. Sub. Nts., 12/1/08 500,000 558,750 - ------------------------------------------------------------------------------------------------------------------------- Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 6,10 400,000 71,000 - ------------------------------------------------------------------------------------------------------------------------- Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09 300,000 331,500 - ------------------------------------------------------------------------------------------------------------------------- Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 7 200,000 179,000 - ------------------------------------------------------------------------------------------------------------------------- Corrections Corp. of America, 9.875% Sr. Nts., 5/1/09 100,000 113,250 - ------------------------------------------------------------------------------------------------------------------------- Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 7 600,000 607,500 - ------------------------------------------------------------------------------------------------------------------------- Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09 7 192,000 195,999 - ------------------------------------------------------------------------------------------------------------------------- Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 300,000 331,500 - ------------------------------------------------------------------------------------------------------------------------- Protection One, Inc./Protection One Alarm Monitoring, Inc., 7.375% Sr. Unsec. Nts., 8/15/05 7 400,000 378,000 - ------------------------------------------------------------------------------------------------------------------------- Safety-Kleen Corp., 9.25% Sr. Unsec. Nts., 5/15/09 6,7,10 50,000 2,500 - ------------------------------------------------------------------------------------------------------------------------- Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 100,000 108,500 - ------------------------------------------------------------------------------------------------------------------------- United Rentals, Inc.: 6.50% Sr. Nts., 2/15/12 11 300,000 291,000 7% Sr. Sub. Nts., 2/15/14 11 400,000 374,000 ----------------- 3,793,944
13 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING--0.0% URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 7 $ 100,000 $ 113,500 - ------------------------------------------------------------------------------------------------------------------------- MACHINERY--0.8% Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 215,000 269,825 - ------------------------------------------------------------------------------------------------------------------------- AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 500,000 550,000 - ------------------------------------------------------------------------------------------------------------------------- NMHG Holding Co., 10% Sr. Nts., 5/15/09 7 100,000 111,500 - ------------------------------------------------------------------------------------------------------------------------- Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07 500,000 490,000 - ------------------------------------------------------------------------------------------------------------------------- SPX Corp., 7.50% Sr. Nts., 1/1/13 400,000 425,000 - ------------------------------------------------------------------------------------------------------------------------- Terex Corp., 9.25% Sr. Unsec. Sub. Nts., 7/15/11 200,000 224,000 - ------------------------------------------------------------------------------------------------------------------------- Trinity Industries, Inc., 6.50% Sr. Nts., 3/15/14 11 150,000 146,625 ----------------- 2,216,950 - ------------------------------------------------------------------------------------------------------------------------- MARINE--0.3% CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 300,000 349,500 - ------------------------------------------------------------------------------------------------------------------------- Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07 6,7,10 750,000 386,250 ----------------- 735,750 - ------------------------------------------------------------------------------------------------------------------------- ROAD & RAIL--0.1% Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 200,000 207,000 - ------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION INFRASTRUCTURE--0.0% Worldspan LP/Worldspan Financial Corp., 9.625% Sr. Nts., 6/15/11 100,000 107,750 - ------------------------------------------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--1.0% - ------------------------------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--0.2% MCI, Inc.: 5.908% Sr. Unsec. Nts., 5/1/07 33,000 32,794 6.688% Sr. Unsec. Nts., 5/1/09 33,000 31,515 7.735% Sr. Unsec. Nts., 5/1/14 28,000 26,110 - ------------------------------------------------------------------------------------------------------------------------- Orion Network Systems, Inc., 12.50% Sr. Unsub. Disc. Nts., 1/15/07 6,7,10 1,150,000 408,250 ----------------- 498,669 - ------------------------------------------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--0.2% Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 400,000 434,000 - ------------------------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--0.1% Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 7 300,000 333,750 - ------------------------------------------------------------------------------------------------------------------------- Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 6,7,10 800,000 -- ----------------- 333,750 - ------------------------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--0.0% Globix Corp., 11% Sr. Nts., 4/26/08 7 38,638 34,967 - ------------------------------------------------------------------------------------------------------------------------- NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 6,7,10 160,138 16 - ------------------------------------------------------------------------------------------------------------------------- PSINet, Inc.: 10.50% Sr. Unsec. Nts., 12/1/06 6,7,10 [EUR] 500,000 25,099 11% Sr. Nts., 8/1/09 6,7,10 540,935 29,751 ----------------- 89,833
14 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- IT SERVICES--0.2% Iron Mountain, Inc., 7.75% Sr. Sub. Nts., 1/15/15 $ 500,000 $ 515,000 - ------------------------------------------------------------------------------------------------------------------------- Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 11 50,000 57,250 ----------------- 572,250 - ------------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0.3% AMI Semiconductor, Inc., 10.75% Sr. Unsec. Sub. Nts., 2/1/13 194,000 228,435 - ------------------------------------------------------------------------------------------------------------------------- Amkor Technology, Inc., 9.25% Sr. Unsec. Sub. Nts., 2/15/08 300,000 322,500 - ------------------------------------------------------------------------------------------------------------------------- ChipPAC International Co. Ltd., 12.75% Sr. Unsec. Sub. Nts., Series B, 8/1/09 200,000 218,000 ----------------- 768,935 - ------------------------------------------------------------------------------------------------------------------------- MATERIALS--4.1% - ------------------------------------------------------------------------------------------------------------------------- CHEMICALS--1.0% Equistar Chemicals LP/Equistar Funding Corp.: 8.75% Sr. Unsec. Nts., 2/15/09 200,000 211,500 10.625% Sr. Unsec. Nts., 5/1/11 200,000 225,000 - ------------------------------------------------------------------------------------------------------------------------- Huntsman Corp./ICI Chemical Co. plc, 13.08% Sr. Unsec. Disc. Nts., 12/31/09 5 300,000 152,250 - ------------------------------------------------------------------------------------------------------------------------- Huntsman International LLC, 9.875% Sr. Nts., 3/1/09 600,000 670,500 - ------------------------------------------------------------------------------------------------------------------------- ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 7 200,000 223,000 - ------------------------------------------------------------------------------------------------------------------------- Lyondell Chemical Co., 9.875% Sec. Nts., Series B, 5/1/07 400,000 422,000 - ------------------------------------------------------------------------------------------------------------------------- OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11 200,000 206,000 - ------------------------------------------------------------------------------------------------------------------------- Pioneer Cos., Inc., 4.663% Sr. Sec. Nts., 12/31/06 7,15 27,687 26,303 - ------------------------------------------------------------------------------------------------------------------------- Sterling Chemicals, Inc.: 10% Sr. Sec. Nts., 12/19/07 7 204,568 198,431 11.25% Sr. Sub. Nts., 8/15/06 6,7,10 200,000 -- - ------------------------------------------------------------------------------------------------------------------------- Westlake Chemical Corp., 8.75% Sr. Nts., 7/15/11 200,000 220,500 ----------------- 2,555,484 - ------------------------------------------------------------------------------------------------------------------------- CONSTRUCTION MATERIALS--0.1% Texas Industries, Inc., 10.25% Sr. Unsec. Nts., 6/15/11 200,000 228,000 - ------------------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING--1.5% Ball Corp.: 6.875% Sr. Unsec. Nts., 12/15/12 150,000 159,000 7.75% Sr. Unsec. Nts., 8/1/06 300,000 322,500 - ------------------------------------------------------------------------------------------------------------------------- Graphic Packaging International Corp.: 8.50% Sr. Nts., 8/15/11 250,000 277,500 9.50% Sr. Sub. Nts., 8/15/13 200,000 226,000 - ------------------------------------------------------------------------------------------------------------------------- Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts., 10/1/12 450,000 483,750 - ------------------------------------------------------------------------------------------------------------------------- Owens-Brockway Glass Container, Inc.: 8.75% Sr. Sec. Nts., 11/15/12 500,000 548,750 8.875% Sr. Sec. Nts., 2/15/09 900,000 982,125 - ------------------------------------------------------------------------------------------------------------------------- Pliant Corp., 0%/11.125% Sr. Sec. Disc. Nts., 6/15/09 11,12 200,000 168,000
15 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING Continued Stone Container Corp.: 9.25% Sr. Unsec. Nts., 2/1/08 $ 250,000 $ 278,750 9.75% Sr. Unsec. Nts., 2/1/11 400,000 446,000 - ------------------------------------------------------------------------------------------------------------------------- TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 250,000 271,250 ----------------- 4,163,625 - ------------------------------------------------------------------------------------------------------------------------- METALS & MINING--1.3% Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 11 200,000 207,000 - ------------------------------------------------------------------------------------------------------------------------- California Steel Industries, Inc., 6.125% Sr. Nts., 3/15/14 11 200,000 196,000 - ------------------------------------------------------------------------------------------------------------------------- Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08 7 400,000 449,000 - ------------------------------------------------------------------------------------------------------------------------- IMCO Recycling, Inc., 10.375% Sr. Sec. Nts., 10/15/10 200,000 214,500 - ------------------------------------------------------------------------------------------------------------------------- Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 400,000 450,000 - ------------------------------------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 10.875% Sr. Nts., Series B, 10/15/06 6,7,10 500,000 487,500 - ------------------------------------------------------------------------------------------------------------------------- Koppers Industry, Inc., 9.875% Sr. Sec. Nts., 10/15/13 11 250,000 275,000 - ------------------------------------------------------------------------------------------------------------------------- Metallurg, Inc., 11% Sr. Nts., 12/1/07 200,000 106,000 - ------------------------------------------------------------------------------------------------------------------------- Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 200,000 208,000 - ------------------------------------------------------------------------------------------------------------------------- Peabody Energy Corp., 6.875% Sr. Unsec. Nts., Series B, 3/15/13 200,000 209,000 - ------------------------------------------------------------------------------------------------------------------------- Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 200,000 224,500 - ------------------------------------------------------------------------------------------------------------------------- UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 100,000 114,750 - ------------------------------------------------------------------------------------------------------------------------- United States Steel Corp.: 9.75% Sr. Nts., 5/15/10 168,000 191,100 10.75% Sr. Nts., 8/1/08 260,000 305,500 ----------------- 3,637,850 - ------------------------------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS--0.2% Buckeye Technologies, Inc., 8.50% Sr. Nts., 10/1/13 50,000 53,500 - ------------------------------------------------------------------------------------------------------------------------- Georgia-Pacific Corp., 8.125% Sr. Unsec. Nts., 5/15/11 500,000 566,250 ----------------- 619,750 - ------------------------------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--2.4% - ------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--0.4% COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 6,7,10 249,878 25 - ------------------------------------------------------------------------------------------------------------------------- Concentric Network Corp., Escrow Shares, 12/15/07 7,9 495,000 -- - ------------------------------------------------------------------------------------------------------------------------- Dex Media East LLC/Dex Media East Finance Co., 9.875% Sr. Unsec. Nts., 11/15/09 100,000 112,625 - ------------------------------------------------------------------------------------------------------------------------- Dex Media West LLC/Dex Media West Finance Co.: 8.50% Sr. Nts., 8/15/10 11 150,000 163,500 9.875% Sr. Sub. Nts., 8/15/13 11 300,000 330,000 - ------------------------------------------------------------------------------------------------------------------------- Dex Media, Inc., 8% Nts., 11/15/13 11 50,000 48,750 - ------------------------------------------------------------------------------------------------------------------------- Focal Communications Corp., Escrow Shares 9 75,000 -- - ------------------------------------------------------------------------------------------------------------------------- IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09 250,000 266,250 - ------------------------------------------------------------------------------------------------------------------------- Level 3 Communications, Inc., 10.50% Sr. Disc. Nts., 12/1/08 125,000 88,750
16 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES Continued Nextlink Communications, Inc.: Escrow Shares, 3/15/08 7,9 $ 250,000 $ -- Escrow Shares, 11/15/08 7,9 200,000 -- Escrow Shares, 6/1/09 7,9 200,000 -- - ------------------------------------------------------------------------------------------------------------------------- Qwest Corp., 8.875% Nts., 3/15/12 11 200,000 213,500 - ------------------------------------------------------------------------------------------------------------------------- Teligent, Inc., 11.50% Sr. Nts., 12/1/07 6,7,10 200,000 -- - ------------------------------------------------------------------------------------------------------------------------- Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 6,7,10 195,000 -- ----------------- 1,223,400 - ------------------------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--2.0% Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts., 2/1/11 200,000 220,000 - ------------------------------------------------------------------------------------------------------------------------- American Tower Escrow Corp., 12.25% Sr. Sub. Disc. Nts., 8/1/08 5 400,000 293,000 - ------------------------------------------------------------------------------------------------------------------------- CellNet Data Systems, Inc., Sr. Unsec. Disc. Nts., 10/1/07 6,7,10 554,000 -- - ------------------------------------------------------------------------------------------------------------------------- Centennial Cellular Operating Co./Centennial Communications Corp., 10.125% Sr. Nts., 6/15/13 300,000 310,500 - ------------------------------------------------------------------------------------------------------------------------- Crown Castle International Corp., 10.75% Sr. Nts., 8/1/11 200,000 228,000 - ------------------------------------------------------------------------------------------------------------------------- Dobson Communications Corp., 8.875% Sr. Nts., 10/1/13 200,000 157,500 - ------------------------------------------------------------------------------------------------------------------------- Leap Wireless International, Inc.: 0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 6,7,10,12 200,000 29,000 12.50% Sr. Nts., 4/15/10 6,7,10 400,000 71,000 - ------------------------------------------------------------------------------------------------------------------------- Nextel Communications, Inc.: 7.375% Sr. Nts., 8/1/15 140,000 146,125 9.375% Sr. Unsec. Nts., 11/15/09 2,000,000 2,172,500 - ------------------------------------------------------------------------------------------------------------------------- Orbcomm Global LP, Escrow Shares, 8/15/04 7,9 175,000 -- - ------------------------------------------------------------------------------------------------------------------------- Rural Cellular Corp.: 9.625% Sr. Sub. Nts., Series B, 5/15/08 600,000 570,000 9.875% Sr. Nts., 2/1/10 200,000 206,500 - ------------------------------------------------------------------------------------------------------------------------- Triton PCS, Inc.: 8.50% Sr. Unsec. Nts., 6/1/13 200,000 209,000 8.75% Sr. Unsec. Sub. Nts., 11/15/11 100,000 92,750 - ------------------------------------------------------------------------------------------------------------------------- US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub. Disc. Nts., Series B, 11/1/09 12 500,000 500,000 - ------------------------------------------------------------------------------------------------------------------------- Western Wireless Corp., 9.25% Sr. Unsec. Nts., 7/15/13 250,000 258,125 ----------------- 5,464,000 - ------------------------------------------------------------------------------------------------------------------------- UTILITIES--2.6% - ------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--1.8% Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series B, 12/15/09 418,500 466,628 - ------------------------------------------------------------------------------------------------------------------------- Calpine Corp.: 7.625% Sr. Nts., 4/15/06 550,000 459,250 8.75% Sr. Nts., 7/15/07 200,000 150,000 9.875% Sr. Sec. Nts., 12/1/11 11 600,000 558,000 - ------------------------------------------------------------------------------------------------------------------------- CMS Energy Corp.: 7.75% Sr. Nts., 8/1/10 11 100,000 101,500 9.875% Sr. Unsec. Nts., 10/15/07 900,000 990,000
17 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES Continued Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08 $ 200,000 $ 211,000 - ------------------------------------------------------------------------------------------------------------------------- ESI Tractebel Acquisition Corp., 7.99% Sec. Bonds, Series B, 12/30/11 7 458,000 474,030 - ------------------------------------------------------------------------------------------------------------------------- Mirant Americas Generation LLC, 8.30% Sr. Unsec. Nts., 5/1/11 6,10 600,000 438,000 - ------------------------------------------------------------------------------------------------------------------------- MSW Energy Holdings LLC/MSW Energy Finance Co., Inc., 8.50% Sr. Sec. Nts., 9/1/10 100,000 109,000 - ------------------------------------------------------------------------------------------------------------------------- PG&E Corp., 6.875% Sr. Sec. Nts., 7/15/08 11 200,000 214,000 - ------------------------------------------------------------------------------------------------------------------------- Reliant Resources, Inc.: 9.25% Sr. Sec. Nts., 7/15/10 350,000 376,250 9.50% Sr. Sec. Nts., 7/15/13 150,000 163,500 - ------------------------------------------------------------------------------------------------------------------------- Westar Energy, Inc., 9.75% Sr. Unsec. Nts., 5/15/07 7 275,000 314,875 ----------------- 5,026,033 - ------------------------------------------------------------------------------------------------------------------------- GAS UTILITIES--0.2% AmeriGas Partners LP/AmeriGas Eagle Finance Corp., 8.875% Sr. Unsec. Nts., Series B, 5/20/11 200,000 220,500 - ------------------------------------------------------------------------------------------------------------------------- SEMCO Energy, Inc.: 7.125% Sr. Nts., 5/15/08 100,000 104,500 7.75% Sr. Nts., 5/15/13 100,000 105,500 - ------------------------------------------------------------------------------------------------------------------------- Williams Cos., Inc. (The), 7.125% Nts., 9/1/11 100,000 105,000 ----------------- 535,500 - ------------------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES & UNREGULATED POWER--0.6% Calpine Canada Energy Finance ULC, 8.50% Sr. Unsec. Nts., 5/1/08 150,000 106,500 - ------------------------------------------------------------------------------------------------------------------------- Consumers Energy Co., 7.375% Nts., 9/15/23 200,000 203,278 - ------------------------------------------------------------------------------------------------------------------------- Dynegy Holdings, Inc., 10.125% Sr. Sec. Nts., 7/15/13 11 400,000 440,000 - ------------------------------------------------------------------------------------------------------------------------- El Paso Production Holding Co., 7.75% Sr. Unsec. Nts., 6/1/13 475,000 453,625 - ------------------------------------------------------------------------------------------------------------------------- Mirant Mid-Atlantic LLC, 8.625% Sec. Pass-Through Certificates, Series A, 6/30/12 7 133,335 137,418 - ------------------------------------------------------------------------------------------------------------------------- Williams Cos., Inc. (The), 8.625% Sr. Nts., 6/1/10 200,000 221,000 ----------------- 1,561,821 ----------------- 87,690,356 SHARES - ------------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--0.7% Dobson Communications Corp., 6% Cv., Series F (converts into Dobson Communications Corp., Cl. A common stock), Non-Vtg. 600 71,517 - ------------------------------------------------------------------------------------------------------------------------- e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg. 6,7,13 249 25 - ------------------------------------------------------------------------------------------------------------------------- Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 6,7 4,000 353,000 - ------------------------------------------------------------------------------------------------------------------------- Focal Communications Corp., Cv., Series A 6,7 403 4,070 - ------------------------------------------------------------------------------------------------------------------------- Intermedia Communications, Inc., 13.50% Exchangeable, Series B 6,7,13 3 113 - ------------------------------------------------------------------------------------------------------------------------- Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable, Non-Vtg. 6,7,13 3,031 --
18 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS Continued Paxson Communications Corp.: 14.25% Cum. Jr. Exchangeable, Non-Vtg. 13 38 $ 356,250 14.25% Cum. 6,13 1 8,767 - ------------------------------------------------------------------------------------------------------------------------- Pennsylvania Real Estate Investment Trust, 11% 4,000 240,000 - ------------------------------------------------------------------------------------------------------------------------- PTV, Inc., 10% Cum., Series A, Non-Vtg. 4 30 - ------------------------------------------------------------------------------------------------------------------------- Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 6,13 115 101,488 - ------------------------------------------------------------------------------------------------------------------------- Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 7 5,750 823,688 ----------------- 1,958,948 PRINCIPAL AMOUNT - ------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES--0.3% Lehman Brothers Holdings, Inc., High Yield Targeted Return Index Securities, Series 2004-1, 9.051%, 6/1/14 7,16 $ 520,000 516,672 - ------------------------------------------------------------------------------------------------------------------------- Swiss Re Capital Markets Corp./Fujiyama Ltd. Catastrophe Linked Nts., 5.12%, 5/16/05 11,15 250,000 252,053 ----------------- 768,725 ----------------- Total Corporate Sector (Cost $91,199,448) 91,739,847 UNITS - ------------------------------------------------------------------------------------------------------------------------- CONVERTIBLE SECTOR--1.4% - ------------------------------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--1.4% AboveNet, Inc. Wts.: Exp. 9/8/08 6,7 78 1,796 Exp. 9/8/10 6,7 92 2,037 - ------------------------------------------------------------------------------------------------------------------------- American Tower Corp. Wts., Exp. 8/1/08 6,7 400 63,800 - ------------------------------------------------------------------------------------------------------------------------- Chesapeake Energy Corp. Wts., Exp. 9/1/04 6 1,936 130 - ------------------------------------------------------------------------------------------------------------------------- COLO.com, Inc. Wts., Exp. 3/15/10 6,7 300 3 - ------------------------------------------------------------------------------------------------------------------------- Concentric Network Corp. Wts., Exp. 12/15/07 6,7 600 -- - ------------------------------------------------------------------------------------------------------------------------- Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 6,7 800 -- - ------------------------------------------------------------------------------------------------------------------------- e.spire Communications, Inc. Wts., Exp. 11/1/05 6,7 700 7 - ------------------------------------------------------------------------------------------------------------------------- Focal Communications Corp. Wts.: Exp. 6/19/06 6,7 158 569 Exp. 6/19/08 6 792 -- - ------------------------------------------------------------------------------------------------------------------------- Horizon PCS, Inc. Wts., Exp. 10/1/10 6,7 1,000 -- - ------------------------------------------------------------------------------------------------------------------------- ICG Communications, Inc. Wts., Exp. 9/15/05 6,7 4,125 41 - ------------------------------------------------------------------------------------------------------------------------- ICO Global Communication Holdings Ltd. Wts.: Exp. 5/16/06 6,7 6,035 91 Exp. 5/16/06 6,7 9 -- - ------------------------------------------------------------------------------------------------------------------------- Insilco Corp. Wts., Exp. 8/15/07 6,7 720 -- - ------------------------------------------------------------------------------------------------------------------------- Leap Wireless International, Inc. Wts., Exp. 4/15/10 6,7 400 -- - ------------------------------------------------------------------------------------------------------------------------- Long Distance International, Inc. Wts., Exp. 4/13/08 6,7 400 -- - ------------------------------------------------------------------------------------------------------------------------- Loral Space & Communications Ltd. Wts., Exp. 1/15/07 6,7 975 10
19 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
MARKET VALUE UNITS SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES Continued Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 6,7 700 $ 7 - ------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc. All Country Asia Free (except for Japan) Wts., Exp. 3/4/05 6 58,900 915,995 - ------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc. Basket of Countries (except for Japan) Wts., Exp. 3/4/05 6 86,269 1,248,778 - ------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital III, Inc. All Country Asia Free (except for Japan) Wts., Exp. 3/4/05 6 113,943 1,445,948 - ------------------------------------------------------------------------------------------------------------------------- Ntelos, Inc. Wts., Exp. 8/15/10 6,7 500 5 - ------------------------------------------------------------------------------------------------------------------------- Pathmark Stores, Inc. Wts., Exp. 9/19/10 6 6,738 6,671 - ------------------------------------------------------------------------------------------------------------------------- Protection One, Inc. Wts., Exp. 6/30/05 6,7 6,400 -- - ------------------------------------------------------------------------------------------------------------------------- Republic Technologies International LLC Wts., Exp. 7/15/09 6,7 200 -- - ------------------------------------------------------------------------------------------------------------------------- Sterling Chemicals, Inc. Wts., Exp. 12/19/08 6,7 413 207 - ------------------------------------------------------------------------------------------------------------------------- Verado Holdings, Inc., Cl. B Wts., Exp. 4/15/08 6,7 500 243 - ------------------------------------------------------------------------------------------------------------------------- XO Communications, Inc.: Cl. A Wts., Exp. 1/16/10 6 2,188 4,157 Cl. B Wts., Exp. 1/16/10 6 1,641 2,297 Cl. C Wts., Exp. 1/16/10 6 1,641 1,625 ----------------- Total Convertible Sector (Cost $2,606,069) 3,694,417 SHARES - ------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL SECTOR--35.8% - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--0.7% AES Drax Group Ltd. 6 3,000 -- - ------------------------------------------------------------------------------------------------------------------------- Banco Bradesco SA, Sponsored ADR 2,702 109,836 - ------------------------------------------------------------------------------------------------------------------------- Banco Itau Holding Financeira SA, ADR 2,620 103,857 - ------------------------------------------------------------------------------------------------------------------------- Bank Pekao SA, GDR 4,838 148,793 - ------------------------------------------------------------------------------------------------------------------------- Brasil Telecom Participacoes SA, ADR 4,715 146,165 - ------------------------------------------------------------------------------------------------------------------------- Cesky Telecom AS, GDR 9,495 123,376 - ------------------------------------------------------------------------------------------------------------------------- COLT Telecom Group plc, ADR 6 7,020 36,434 - ------------------------------------------------------------------------------------------------------------------------- Companhia de Bebidas das Americas, ADR 8,610 161,524 - ------------------------------------------------------------------------------------------------------------------------- Gedeon Richter Rt, Sponsored GDR 649 66,005 - ------------------------------------------------------------------------------------------------------------------------- KGHM Polska Miedz SA, GDR 6 3,784 51,357 - ------------------------------------------------------------------------------------------------------------------------- Komercni Banka AS, GDR 5,844 210,849 - ------------------------------------------------------------------------------------------------------------------------- Magyar Tavkozlesi Rt, Sponsored ADR 4,512 93,037 - ------------------------------------------------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. A 6 7 125 - ------------------------------------------------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. B 6 1,855 33,451 - ------------------------------------------------------------------------------------------------------------------------- MOL Magyar Olaj-es Gazipari Rt, Sponsored GDR 2,759 103,463 - ------------------------------------------------------------------------------------------------------------------------- OTP Bank Rt, GDR 6 5,456 202,670 - ------------------------------------------------------------------------------------------------------------------------- Polski Koncern Naftowy Orlen SA, GDR 10,870 153,259
20 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS Continued Telekomunikacja Polska SA, GDR 36,957 $ 148,907 - ------------------------------------------------------------------------------------------------------------------------- Viatel Holding Ltd. (Bermuda) 6,7 763 973 ----------------- 1,894,081 PRINCIPAL AMOUNT - ------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--2.7% - ------------------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--0.4% - ------------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--0.2% Intrawest Corp., 7.50% Sr. Unsec. Nts., 10/15/13 $ 333,000 342,158 - ------------------------------------------------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd., 8.75% Sr. Unsub. Nts., 2/2/11 200,000 226,500 ----------------- 568,658 - ------------------------------------------------------------------------------------------------------------------------- MEDIA--0.2% Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 200,000 221,500 - ------------------------------------------------------------------------------------------------------------------------- Vivendi Universal SA, 9.25% Sr. Nts., 4/15/10 300,000 351,750 ----------------- 573,250 - ------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES--0.3% - ------------------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS--0.3% United Biscuits Finance plc, 10.75% Sr. Sub. Nts., 4/15/11 7 [GBP] 500,000 957,610 - ------------------------------------------------------------------------------------------------------------------------- ENERGY--0.7% - ------------------------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--0.5% Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 1,200,000 1,194,000 - ------------------------------------------------------------------------------------------------------------------------- OIL & GAS--0.2% Pemex Project Funding Master Trust, 6.625% Nts., 4/4/10 [EUR] 460,000 584,373 - ------------------------------------------------------------------------------------------------------------------------- FINANCIALS--0.0% - ------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--0.0% Noteco Ltd.: 6.18% Nts., Series B, 6/30/25 15 [GBP] 15,000 22,211 6.68% Nts., Series A1, 6/30/15 15 [GBP] 17,000 29,732 ----------------- 51,943 - ------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS--0.2% - ------------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--0.0% Videotron Ltee, 6.875% Sr. Unsec. Nts., 1/15/14 100,000 101,500 - ------------------------------------------------------------------------------------------------------------------------- MARINE--0.0% Pacific & Atlantic Holdings, Inc., 3.75% Sec. Nts., 12/31/07 11 174,785 47,856 - ------------------------------------------------------------------------------------------------------------------------- ROAD & RAIL--0.2% Stena AB: 7.50% Sr. Unsec. Nts., 11/1/13 232,000 242,440 9.625% Sr. Nts., 12/1/12 150,000 169,500 ----------------- 411,940
21 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- MATERIALS--0.6% - ------------------------------------------------------------------------------------------------------------------------- CHEMICALS--0.0% PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 $ 87,434 $ 82,625 - ------------------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING--0.3% Crown Euro Holdings SA: 9.50% Sr. Sec. Nts., 3/1/11 300,000 337,875 10.875% Sr. Sec. Nts., 3/1/13 100,000 117,000 - ------------------------------------------------------------------------------------------------------------------------- MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 200,000 226,000 ----------------- 680,875 - ------------------------------------------------------------------------------------------------------------------------- METALS & MINING--0.1% Ispat Inland ULC, 9.75% Sr. Sec. Nts., 4/1/14 11 250,000 256,250 - ------------------------------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS--0.2% Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 225,000 244,391 - ------------------------------------------------------------------------------------------------------------------------- Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 6,7,10 750,000 266,250 ----------------- 510,641 - ------------------------------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--0.5% - ------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--0.5% 360networks, Inc., 13% Sr. Unsec. Nts., 5/1/08 6,7,10 [EUR] 600,000 72 - ------------------------------------------------------------------------------------------------------------------------- Telewest Communications plc: 0%/9.875% Sr. Disc. Nts., 4/15/09 6,10,12 [GBP] 200,000 170,242 9.25% Sr. Disc. Nts., 4/15/09 10 100,000 52,500 11.25% Sr. Nts., 11/1/08 6,10 700,000 441,000 - ------------------------------------------------------------------------------------------------------------------------- Telus Corp., 7.50% Nts., 6/1/07 596,000 659,060 ----------------- 1,322,874 - ------------------------------------------------------------------------------------------------------------------------- UTILITIES--0.0% - ------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.0% AES Corp. (The): 5.22% Nts., 1/1/15 [GBP] 20,000 40,964 6.22% Nts., 1/1/20 [GBP] 3,000 6,145 ----------------- 47,109 ----------------- 7,391,504 - ------------------------------------------------------------------------------------------------------------------------- FOREIGN GOVERNMENT OBLIGATIONS--25.3% - ------------------------------------------------------------------------------------------------------------------------- ARGENTINA--1.5% Argentina (Republic of) Bonds: 5/3/05 10 42,000 40,688 1.234%, 8/3/12 15 4,620,000 3,012,513 2%, 9/30/08 7 [ARP] 445,500 148,754 Series PRE8, 2%, 1/3/10 6,7,10 [ARP] 810,000 352,622 Series PR12, 2%, 1/3/16 6,7,10 [ARP] 551,273 197,888 - ------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of) Disc. Bonds, 3/31/23 6,10 185,000 96,663
22 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- ARGENTINA CONTINUED Argentina (Republic of) Letras del Banco Central de la Republica Treasury Bills, 14.75%, 10/8/04 5 [ARP] 14,000 $ 4,827 - ------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of) Par Bonds, 3/31/23 6,10 235,000 122,788 - ------------------------------------------------------------------------------------------------------------------------- Buenos Aires (Province of) Bonds, Bonos de Consolidacion de Deudas, Series PBA1, 4/1/07 7,10 [ARP] 61,158 24,571 ----------------- 4,001,314 - ------------------------------------------------------------------------------------------------------------------------- AUSTRIA--1.0% Austria (Republic of) Bonds, 6.25%, 7/15/27 [EUR] 1,465,000 2,082,817 - ------------------------------------------------------------------------------------------------------------------------- Austria (Republic of) Nts., Series 98-1, 5%, 1/15/08 [EUR] 470,000 600,201 ----------------- 2,683,018 - ------------------------------------------------------------------------------------------------------------------------- BELGIUM--2.0% Belgium (Kingdom of) Bonds: 5%, 9/28/11 [EUR] 360,000 460,076 Series 19, 6.50%, 3/31/05 [EUR] 730,000 908,954 Series 26, 6.25%, 3/28/07 [EUR] 1,465,000 1,919,142 Series 28, 5.75%, 3/28/08 [EUR] 550,000 720,497 Series 32, 3.75%, 3/28/09 [EUR] 750,000 910,121 Series 35, 5.75%, 9/28/10 [EUR] 450,000 599,046 ----------------- 5,517,836 - ------------------------------------------------------------------------------------------------------------------------- BRAZIL--1.4% Brazil (Federal Republic of) Bonds, Series 15 yr., 2.125%, 4/15/09 15 6,471 5,856 - ------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Debt Capitalization Bonds, Series 20 yr., 8%, 4/15/14 3,776,319 3,481,294 - ------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Unsec. Unsub. Bonds, Cl. B, 8.875%, 4/15/24 536,000 432,820 ----------------- 3,919,970 - ------------------------------------------------------------------------------------------------------------------------- COLOMBIA--0.1% Colombia (Republic of) Unsec. Unsub. Bonds, 8.375%, 2/15/27 315,000 278,775 - ------------------------------------------------------------------------------------------------------------------------- DENMARK--0.3% Denmark (Kingdom of) Nts., 4%, 8/15/08 [DKK] 5,400,000 889,011 - ------------------------------------------------------------------------------------------------------------------------- FINLAND--0.1% Finland (Republic of) Sr. Unsec. Unsub. Bonds, 2.75%, 7/4/06 [EUR] 115,000 138,413 - ------------------------------------------------------------------------------------------------------------------------- FRANCE--1.3% France (Government of) Obligations Assimilables du Tresor Bonds: 5.50%, 10/25/07 [EUR] 465,000 601,789 5.50%, 10/25/10 [EUR] 245,000 322,564 5.75%, 10/25/32 [EUR] 1,070,000 1,447,331 - ------------------------------------------------------------------------------------------------------------------------- France (Government of) Treasury Nts.: 3 yr., 3.50%, 1/12/05 [EUR] 945,000 1,143,779 5 yr., 4.75%, 7/12/07 [EUR] 50,000 63,221 ----------------- 3,578,684
23 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- GERMANY--5.5% Germany (Republic of) Bonds: 2%, 6/17/05 [EUR] 950,000 $ 1,136,330 5.375%, 1/4/10 [EUR] 765,000 999,624 Series 01, 5%, 7/4/11 [EUR] 1,600,000 2,049,384 Series 140, 4.50%, 8/17/07 [EUR] 730,000 915,911 Series 143, 3.50%, 10/10/08 [EUR] 7,765,000 9,377,644 Series 144, 3.25%, 4/17/09 [EUR] 470,000 558,596 ----------------- 15,037,489 - ------------------------------------------------------------------------------------------------------------------------- GREAT BRITAIN--0.6% United Kingdom Treasury Nts., 7.50%, 12/7/06 [GBP] 885,000 1,672,998 - ------------------------------------------------------------------------------------------------------------------------- GREECE--1.1% Greece (Republic of) Bonds: 3.50%, 4/18/08 [EUR] 930,000 1,124,949 5.35%, 5/18/11 [EUR] 1,095,000 1,421,895 - ------------------------------------------------------------------------------------------------------------------------- Greece (Republic of) Sr. Unsub. Bonds, 4.65%, 4/19/07 [EUR] 265,000 333,241 ----------------- 2,880,085 - ------------------------------------------------------------------------------------------------------------------------- GUATEMALA--0.2% Guatemala (Republic of) Nts.: 10.25%, 11/8/11 11 170,000 197,200 10.25%, 11/8/11 205,000 237,800 ----------------- 435,000 - ------------------------------------------------------------------------------------------------------------------------- IRELAND--0.2% Ireland (Republic of) Treasury Bonds, 3.25%, 4/18/09 [EUR] 420,000 498,642 - ------------------------------------------------------------------------------------------------------------------------- ITALY--2.2% Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali: 4%, 3/1/05 [EUR] 290,000 353,026 4.50%, 3/1/07 [EUR] 460,000 576,405 5%, 10/15/07 [EUR] 2,475,000 3,153,822 5%, 2/1/12 [EUR] 740,000 942,961 5.25%, 12/15/05 [EUR] 860,000 1,077,111 ----------------- 6,103,325 - ------------------------------------------------------------------------------------------------------------------------- IVORY COAST--0.0% Ivory Coast (Government of) Past Due Interest Bonds, 695.40%, 3/29/18 6,7,10 [FRF] 3,857,000 129,518 - ------------------------------------------------------------------------------------------------------------------------- JAPAN--1.9% Japan (Government of) Bonds, 5 yr., Series 14, 0.40%, 6/20/06 [JPY] 572,000,000 5,207,867 - ------------------------------------------------------------------------------------------------------------------------- MEXICO--0.4% United Mexican States Bonds: 7.50%, 4/8/33 470,000 466,475 8.30%, 8/15/31 230,000 247,365 11.375%, 9/15/16 45,000 63,338 - ------------------------------------------------------------------------------------------------------------------------- United Mexican States Unsec. Unsub. Nts., Series 6 BR, 6.75%, 6/6/06 [JPY] 40,000,000 406,398 ----------------- 1,183,576
24 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- NIGERIA--0.1% Central Bank of Nigeria Gtd. Bonds, Series WW, 6.25%, 11/15/20 $ 140,000 $ 124,600 - ------------------------------------------------------------------------------------------------------------------------- Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 146,748 138,239 ----------------- 262,839 - ------------------------------------------------------------------------------------------------------------------------- PHILIPPINES--0.1% Philippines (Republic of) Bonds, 8.375%, 2/15/11 263,000 266,038 - ------------------------------------------------------------------------------------------------------------------------- POLAND--0.7% Poland (Republic of) Bonds, Series 0K0805, 5.24%, 8/12/05 5 [PLZ] 8,030,000 1,837,221 - ------------------------------------------------------------------------------------------------------------------------- PORTUGAL--0.5% Portugal (Republic of) Obrig Do Tes Medio Prazo Nts., 4.875%, 8/17/07 [EUR] 265,000 336,105 - ------------------------------------------------------------------------------------------------------------------------- Portugal (Republic of) Obrig Do Tes Medio Prazo Unsec. Unsub. Bonds, 5.85%, 5/20/10 [EUR] 805,000 1,075,539 ----------------- 1,411,644 - ------------------------------------------------------------------------------------------------------------------------- RUSSIA--1.0% Ministry Finance of Russia Debs., Series V, 3%, 5/14/08 1,745,000 1,545,023 - ------------------------------------------------------------------------------------------------------------------------- Russian Federation Unsec. Unsub. Nts., 10%, 6/26/07 965,000 1,097,688 - ------------------------------------------------------------------------------------------------------------------------- Russian Federation Unsub. Nts., 5%, 3/31/30 15 4,750 4,363 ----------------- 2,647,074 - ------------------------------------------------------------------------------------------------------------------------- SOUTH AFRICA--0.3% South Africa (Republic of) Unsec. Nts., 8.375%, 10/17/06 730,000 810,300 - ------------------------------------------------------------------------------------------------------------------------- SPAIN--1.2% Spain (Kingdom of) Bonds, Bonos y Obligacion del Estado: 5.35%, 10/31/11 [EUR] 370,000 483,855 5.75%, 7/30/32 [EUR] 840,000 1,134,863 - ------------------------------------------------------------------------------------------------------------------------- Spain (Kingdom of) Treasury Bills, 1.98%, 6/18/04 5 [EUR] 1,445,000 1,727,647 ----------------- 3,346,365 - ------------------------------------------------------------------------------------------------------------------------- SWEDEN--0.7% Sweden (Kingdom of) Bonds, Series 1043, 5%, 1/28/09 [SEK] 14,805,000 2,031,844 - ------------------------------------------------------------------------------------------------------------------------- THE NETHERLANDS--0.5% Netherlands (Kingdom of the) Bonds: 5%, 7/15/11 [EUR] 250,000 320,216 5.50%, 1/15/28 [EUR] 735,000 956,766 ----------------- 1,276,982 - ------------------------------------------------------------------------------------------------------------------------- TURKEY--0.2% Turkey (Republic of) Nts., 7.20%, 2/16/06 [JPY] 60,000,000 581,759 - ------------------------------------------------------------------------------------------------------------------------- URUGUAY--0.0% Uruguay (Republic of) Treasury Bills, Series UYP1, 14.20%, 6/7/04 5 [UYU] 1,770,000 58,613 - ------------------------------------------------------------------------------------------------------------------------- VENEZUELA--0.2% Venezuela (Republic of) Disc. Bonds, Series W-A, 2.063%, 3/31/20 15 775,000 623,875 ----------------- 69,310,075
25 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- LOAN PARTICIPATIONS--1.1% Algeria (Republic of) Loan Participation Nts., 2%, 3/4/10 7,15 $ 287,000 $ 282,695 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, OAO Gazprom Loan Participation Nts., 6.50%, 8/4/05 7 960,000 962,688 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Indonesia (Republic of) Rupiah Loan Participation Nts.: 2.636%, 5/21/04 7,15 835,000 810,368 2.636%, 3/25/05 7,15 965,000 907,583 ----------------- 2,963,334 DATE STRIKE CONTRACTS - ------------------------------------------------------------------------------------------------------------------------- OPTIONS PURCHASED--0.0% Euro Call 6,7 6/28/04 1.24EUR 6,350,000EUR 43,091 - ------------------------------------------------------------------------------------------------------------------------- Japanese Yen Call 6,7 5/13/04 102.50JPY 207,000,000JPY 41 ----------------- 43,132 SHARES - ------------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--0.0% Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series A 6,7,13 8,756 17,512 UNITS - ------------------------------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% Microcell Telecommunications, Inc.: Cl. A Wts., Exp. 5/1/05 6 [CAD] 343 1,374 Cl. B Wts., Exp. 5/1/08 6 [CAD] 572 3,036 - ------------------------------------------------------------------------------------------------------------------------- Telus Corp. Wts., Exp. 9/15/05 6 539 3,036 ----------------- 7,446 PRINCIPAL AMOUNT - ------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES--6.0% Citigroup Global Markets Holdings, Inc., Argentine Peso Unsec. Linked Nts., 7/6/04 $ 110,000 119,570 - ------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc., Brazilian Real Linked Nts., 23.17%, 5/20/04 5 [BRR] 290,307 97,899 - ------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc., Brazilian Real Unsec. Linked Nts.: 0.79%, 9/15/04 2,785,000 2,788,899 0.93%, 1/14/05 758,379 732,518 - ------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc., Colombia (Republic of) Unsec. Credit Linked Nts.: 15%, 3/15/07 (linked to the Emerging Local Markets Index) [COP] 1,476,565,000 603,833 15%, 4/27/12 (linked to the Emerging Local Markets Index) [COP] 1,485,000,000 604,541 15%, 4/27/12 (linked to the Emerging Markets Bond Index) [COP] 188,125,000 76,585 - ------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc., Peruvian Sol Unsec. Linked Nts., 0.77%, 7/14/04 [PEN] 1,585,088 452,278 - ------------------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston, Inc. (Nassau Branch), U.S. Dollar/ Philippine Peso Linked Nts., 12.50%, 3/5/12 15 [PHP] 32,130,000 587,577
26 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES Continued Credit Suisse First Boston, Inc. (USA), U.S. Dollar/ South African Rand Linked Nts., Series FBi 43, 1.10%, 5/23/22 15 $ 540,000 $ 525,582 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Brazil (Federal Republic of) 3 yr. Credit Linked Nts., 7.38%, 5/20/07 15 100,000 100,000 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Brazil (Federal Republic of) 5 yr. Credit Linked Nts., 8.58%, 5/20/09 15 1,940,000 1,940,000 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Indonesia (Republic of) Recapitalization Linked Nts.: 13.15%, 3/22/10 310,059 337,396 13.15%, 9/15/10 590,000 637,966 14.275%, 12/22/13 235,030 273,319 15.425%, 9/22/10 340,508 401,336 14.275%, 12/23/13 345,000 411,520 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Moscow (City of) Linked Nts.: 10%, 5/27/05 15 [RUR] 5,140,000 184,078 15%, 9/2/05 [RUR] 15,165,000 576,946 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Turkey (Republic of) Treasury Bills Linked Nts., 24.43%, 4/29/05 515,037 386,313 - ------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Venezuela (Republic of) Credit Linked Nts.: 7.32%, 12/20/06 15 1,295,000 1,312,742 11.63%, 6/15/04 15 425,000 428,443 - ------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase Bank, Venezuela (Republic of) Credit Linked Nts.: 7.81%, 9/20/05 15 565,000 576,922 7.86%, 9/20/05 15 565,000 578,391 7.96%, 9/20/05 15 565,000 577,374 - ------------------------------------------------------------------------------------------------------------------------- Lehman Brothers International, Turkey (Republic of) Treasury Bills Total Return Linked Nts., 21.27%, 8/25/05 480,000 332,976 - ------------------------------------------------------------------------------------------------------------------------- Pioneer 2002 Ltd. Sec. Catastrophe Linked Nts.: Series 2003-II, Cl. A, 7.11%, 6/15/06 7,15 250,000 255,913 Series 2003-II, Cl. B, 6.11%, 6/15/06 7,15 250,000 255,088 Series 2003-II, Cl. C, 6.86%, 6/15/06 7,15 250,000 254,000 ----------------- 16,410,005 ----------------- Total International Sector (Cost $98,737,341) 98,037,089 - ------------------------------------------------------------------------------------------------------------------------- ASSET-BACKED SECTOR--25.4% - ------------------------------------------------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--5.6% - ------------------------------------------------------------------------------------------------------------------------- AUTO LOAN--4.1% Bank One Auto Securitization Trust, Automobile Receivable Certificates, Series 2003-1, Cl. A2, 1.29%, 8/21/06 355,401 355,348 - ------------------------------------------------------------------------------------------------------------------------- BMW Vehicle Owner Trust, Automobile Loan Certificates, Series 2003-A, Cl. A2, 1.45%, 11/25/05 286,934 287,267 - ------------------------------------------------------------------------------------------------------------------------- Capital Auto Receivables Asset Trust, Automobile Mtg.-Backed Nts., Series 2003-2, Cl. A2A, 1.20%, 5/16/05 293,520 293,710
27 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- AUTO LOAN CONTINUED Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through Certificates: Series 2003-A, Cl. A2, 1.26%, 1/16/06 $ 140,288 $ 140,364 Series 2003-B, Cl. A2, 1.28%, 3/15/06 219,347 219,429 - ------------------------------------------------------------------------------------------------------------------------- DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates: Series 2003-A, Cl. A2, 1.52%, 12/8/05 630,000 630,797 Series 2003-B, Cl. A2, 1.61%, 7/8/06 570,000 570,461 - ------------------------------------------------------------------------------------------------------------------------- Ford Credit Auto Owner Trust, Automobile Loan Pass-Through Certificates, Series 2003-A, Cl. A2A, 1.62%, 8/15/05 171,131 171,389 - ------------------------------------------------------------------------------------------------------------------------- Harley-Davidson Motorcycle Trust, Motorcycle Receivable Nts.: Series 2002-2, Cl. A1, 1.91%, 4/16/07 94,699 94,903 Series 2003-3, Cl. A1, 1.50%, 1/15/08 430,763 430,967 - ------------------------------------------------------------------------------------------------------------------------- Honda Auto Receivables Owner Trust, Automobile Receivable Obligations: Series 2003-1, Cl. A2, 1.46%, 9/19/05 207,598 207,830 Series 2003-3, Cl. A2, 1.52%, 4/21/06 700,000 700,685 Series 2003-4, Cl. A2, 1.58%, 7/17/06 550,000 550,453 - ------------------------------------------------------------------------------------------------------------------------- Household Automotive Trust, Automobile Loan Certificates, Series 2003-2, Cl. A2, 1.56%, 12/18/06 250,000 250,075 - ------------------------------------------------------------------------------------------------------------------------- M&I Auto Loan Trust, Automobile Loan Certificates: Series 2002-1, Cl. A3, 2.49%, 10/22/07 320,859 322,831 Series 2003-1, Cl. A2, 1.60%, 7/20/06 470,000 470,546 - ------------------------------------------------------------------------------------------------------------------------- National City Auto Receivables Trust, Automobile Receivable Obligations, Series 2004-A, Cl. A2, 1.50%, 2/15/07 220,000 219,794 - ------------------------------------------------------------------------------------------------------------------------- Nissan Auto Lease Trust, Automobile Lease Obligations, Series 2003-A, Cl. A2, 1.69%, 12/15/05 370,000 370,636 - ------------------------------------------------------------------------------------------------------------------------- Nissan Auto Receivables Owner Trust, Automobile Receivable Nts.: Series 2003-A, Cl. A2, 1.45%, 5/16/05 204,063 204,258 Series 2003-B, Cl. A2, 1.20%, 11/15/05 643,644 644,000 Series 2004-A, Cl. A2, 1.40%, 7/17/06 250,000 249,505 - ------------------------------------------------------------------------------------------------------------------------- Toyota Auto Receivables Owner Trust, Automobile Mtg.-Backed Obligations: Series 2002-B, Cl. A3, 3.76%, 6/15/06 112,186 113,265 Series 2003-A, Cl. A2, 1.28%, 8/15/05 347,820 348,099 Series 2003-B, Cl. A2, 1.43%, 2/15/06 460,000 460,108 - ------------------------------------------------------------------------------------------------------------------------- USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts.: Series 2002-1, Cl. A3, 2.41%, 10/16/06 174,917 175,821 Series 2003-1, Cl. A2, 1.22%, 4/17/06 328,391 328,536 Series 2004-1, Cl. A2, 1.43%, 9/15/06 600,000 598,844 - ------------------------------------------------------------------------------------------------------------------------- Volkswagen Auto Loan Enhanced Trust, Automobile Loan Receivable Certificates: Series 2003-1, Cl. A2, 1.11%, 12/20/05 791,237 791,169 Series 2003-2, Cl. A2, 1.55%, 6/20/06 310,000 310,251 - ------------------------------------------------------------------------------------------------------------------------- Whole Auto Loan Trust, Automobile Loan Receivable Certificates, Series 2003-1, Cl. A2A, 1.40%, 4/15/06 650,000 650,336 ----------------- 11,161,677
28 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- CREDIT CARD--0.5% Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2002-A3, Cl. A3, 4.40%, 5/15/07 $ 220,000 $ 225,899 - ------------------------------------------------------------------------------------------------------------------------- Consumer Credit Reference Index Securities Program, Credit Card Asset-Backed Certificates, Series 2002-B, Cl. FX, 10.421%, 3/22/07 7 1,000,000 1,047,259 ----------------- 1,273,158 - ------------------------------------------------------------------------------------------------------------------------- EQUIPMENT--0.1% Caterpillar Financial Asset Trust, Equipment Loan Pass-Through Certificates, Series 2003-A, Cl. A2,1.25%, 10/25/05 192,455 192,564 - ------------------------------------------------------------------------------------------------------------------------- HOME EQUITY LOAN--0.9% Centex Home Equity Co. LLC, Home Equity Loan Asset-Backed Certificates: Series 2003-A, Cl. AF1, 1.836%, 10/25/17 39,981 39,990 Series 2003-B, Cl. AF1, 1.64%, 2/25/18 92,739 92,700 Series 2003-C, Cl. AF1, 2.14%, 7/25/18 314,873 315,276 Series 2004-A, Cl. AF1, 2.03%, 6/25/19 173,386 173,465 - ------------------------------------------------------------------------------------------------------------------------- Chase Funding Mortgage Loan Asset-Backed Certificates, Home Equity Mtg. Obligations: Series 2003-3, Cl. 1A1, 1.18%, 8/25/17 15 169,140 169,216 Series 2003-4, Cl. 1A1, 1.22%, 9/25/17 15 401,848 402,100 - ------------------------------------------------------------------------------------------------------------------------- CitiFinancial Mortgage Securities, Inc., Home Equity Collateralized Mtg. Obligations: Series 2003-1, Cl. AF1, 1.94%, 1/25/33 74,251 74,268 Series 2003-2, Cl. AF1, 1.20%, 5/25/33 15 148,730 148,796 Series 2003-3, Cl. AF1, 1.22%, 8/25/33 7,15 217,969 218,072 - ------------------------------------------------------------------------------------------------------------------------- Principal Residential Mortgage Capital Resources Trust, Real Estate Mtg. Investment Conduit Participation Certificates, Series 2000-1, Cl. B, 2.75%, 6/20/05 7,15 1,000,000 993,750 - ------------------------------------------------------------------------------------------------------------------------- Residential Funding Mortgage Securities II, Inc., Home Equity Loan Pass-Through Certificates, Serie 2003-HS1, Cl. AI2, 1.20%, 1/25/33 15 633 634 ----------------- 2,628,267 ----------------- 15,255,666 - ------------------------------------------------------------------------------------------------------------------------- GOVERNMENT AGENCY--16.9% - ------------------------------------------------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED--16.8% Federal Home Loan Mortgage Corp.: 5%, 5/15/34 2 1,293,000 1,253,807 5.50%, 1/1/34 159,401 159,338 7%, 9/1/33-8/1/34 1,515,106 1,602,256 7%, 5/1/34 2 250,000 264,063 12%, 5/1/10-6/1/15 145,645 164,697 - ------------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 1669, Cl. G, 6.50%, 2/15/23 134,620 136,961 Series 2055, Cl. ZM, 6.50%, 5/15/28 218,936 231,253 Series 2080, Cl. Z, 6.50%, 8/15/28 152,624 159,565 Series 2102, Cl. VA, 6%, 10/15/09 100,094 100,728
29 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Continued Series 2387, Cl. PD, 6%, 4/15/30 $ 323,000 $ 334,217 Series 2430, Cl. ND, 6.50%, 1/15/31 2,774,519 2,826,815 Series 2466, Cl. PD, 6%, 4/15/30 250,111 257,032 Series 2491, Cl. PE, 6%, 12/15/27 182,522 184,051 Series 2498, Cl. PC, 5.50%, 10/15/14 58,788 60,249 Series 2500, Cl. FD, 1.60%, 3/15/32 15 122,298 122,941 Series 2526, Cl. FE, 1.50%, 6/15/29 15 164,055 164,806 Series 2551, Cl. FD, 1.50%, 1/15/33 15 136,590 137,222 Series 2551, Cl. TA, 4.50%, 2/15/18 373,596 375,950 - ------------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 177, Cl. B, 1.572%, 7/1/26 17 353,779 75,585 Series 192, Cl. IO, 10.245%, 2/1/28 17 65,361 13,867 Series 200, Cl. IO, 8.687%, 1/1/29 17 78,136 15,946 Series 205, Cl. IO, 1.09%, 9/15/29 17 453,351 96,010 Series 2074, Cl. S, 28.643%, 7/17/28 17 76,670 9,591 Series 2079, Cl. S, 28.499%, 7/17/28 17 120,707 15,002 Series 208, Cl. IO, (31.261)%, 6/1/30 17 411,092 83,285 Series 2526, Cl. SE, 39.584%, 6/15/29 17 213,531 26,227 - ------------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security: Series 199, Cl. PO, 5.38%, 8/1/28 18 132,161 110,096 Series 203, Cl. PO, 5.077%, 6/1/29 18 79,009 65,440 Series 217, Cl. PO, 6.955%, 2/1/32 18 82,702 68,561 - ------------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Structured Pass-Through Securities, Collateralized Mtg. Obligations: Series H006, Cl. A1, 1.724%, 4/15/08 27,417 27,380 Series T-42, Cl. A2, 5.50%, 2/25/42 36,718 36,933 - ------------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn.: 5%, 5/1/34 2 1,960,000 1,899,362 5.50%, 7/1/33-12/1/34 1,496,636 1,494,761 5.50%, 6/18/19-5/13/34 2 7,582,000 7,623,812 6.50%, 10/1/30 81,700 85,169 6.50%, 1/1/29 1 1,838,330 1,916,400 6.50%, 5/25/34 2 4,140,000 4,309,483 7%, 9/1/29-11/1/33 2,143,094 2,271,677 7%, 5/25/34 2 13,590,000 14,371,425 7.50%, 6/1/10-9/1/29 322,506 345,505 8.50%, 7/1/32 45,597 49,274 11%, 7/1/16 71,538 80,916 13%, 6/1/15 201,851 233,517 - ------------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Trust 1998-63, Cl. PG, 6%, 3/25/27 125,677 127,698 Trust 2001-50, Cl. NE, 6%, 8/25/30 209,045 215,948 Trust 2001-70, Cl. LR, 6%, 9/25/30 185,853 193,698
30 | OPPENHEIMER MULTI-SECTOR INCOME TRUST
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED CONTINUED Federal National Mortgage Assn., Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Continued Trust 2001-70, Cl. PD, 6%, 3/25/29 $ 190,000 $ 194,366 Trust 2001-72, Cl. NH, 6%, 4/25/30 160,000 165,261 Trust 2001-74, Cl. PD, 6%, 5/25/30 60,000 62,457 Trust 2002-50, Cl. PD, 6%, 9/25/27 140,000 144,692 Trust 2002-73, Cl. PA, 5%, 1/25/17 110,694 111,163 Trust 2002-77, Cl. WF, 1.50%, 12/18/32 15 229,015 229,839 Trust 2002-94, Cl. MA, 4.50%, 8/25/09 261,102 264,339 Trust 2003-81, Cl. PA, 5%, 2/25/12 117,526 119,648 - ------------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates Interest-Only Stripped Mtg.-Backed Security: Trust 2002-28, Cl. SA, 35.389%, 4/25/32 17 121,740 11,363 Trust 2002-39, Cl. SD, 22.676%, 3/18/32 17 197,638 19,439 Trust 2002-48, Cl. S, 31.891%, 7/25/32 17 190,704 22,886 Trust 2002-53, Cl. SK, 22.206%, 4/25/32 17 123,341 12,727 Trust 2002-56, Cl. SN, 35.946%, 7/25/32 17 262,692 30,924 - ------------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 221, Cl. 2, 0.657%, 5/1/23 17 127,745 24,896 Trust 240, Cl. 2, 5.56%, 9/1/23 17 185,378 41,037 Trust 342, Cl. 2, 4.788%, 9/1/33 17 161,962 38,611 Trust 2001-63, Cl. SD, 41.661%, 12/18/31 17 159,640 17,858 Trust 2001-68, Cl. SC, 39.854%, 11/25/31 17 124,464 13,623 Trust 2002-9, Cl. MS, 31.233%, 3/25/32 17 217,273 22,570 ----------------- 45,946,218 - ------------------------------------------------------------------------------------------------------------------------- GNMA/GUARANTEED--0.1% Government National Mortgage Assn.: 4.75%, 7/20/27 26,240 26,792 7%, 1/15/28-3/15/28 97,167 103,474 11%, 10/20/19 56,593 64,200 12%, 11/20/13-9/20/15 71,829 82,501 - ------------------------------------------------------------------------------------------------------------------------- Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 1998-6, Cl. SA, 28.446%, 3/16/28 17 147,704 17,669 Series 1998-19, Cl. SB, 28.852%, 7/16/28 17 252,088 31,604 ----------------- 326,240 ----------------- 46,272,458 - ------------------------------------------------------------------------------------------------------------------------- PRIVATE--2.9% - ------------------------------------------------------------------------------------------------------------------------- COMMERCIAL--2.7% Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates: Series 1995-MD4, Cl. A5, 7.384%, 8/13/29 1,500,000 1,668,456 Series 1996-D2, Cl. A3, 7.507%, 2/14/29 15 3,000,000 2,959,606 - ------------------------------------------------------------------------------------------------------------------------- Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed Pass-Through Certificates, Series 1997-CTL1, 10.901%, 6/22/24 11,17 9,042,557 340,120
31 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------------- COMMERCIAL CONTINUED First Union/Lehman Brothers/Bank of America, Commercial Mtg. Pass-Through Certificates, Series 1998-C2, Cl. A2, 6.56%, 11/18/35 $ 140,000 $ 153,332 - ------------------------------------------------------------------------------------------------------------------------- GMAC Commercial Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 1998-C1, Cl. F, 7.174%, 5/15/30 15 2,000,000 1,934,668 - ------------------------------------------------------------------------------------------------------------------------- Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 380,000 430,204 ----------------- 7,486,386 - ------------------------------------------------------------------------------------------------------------------------- OTHER--0.1% CIT Equipment Collateral, Equipment Receivable-Backed Nts., Series 2003-EF1, Cl. A2, 1.49%, 12/20/05 170,000 170,140 - ------------------------------------------------------------------------------------------------------------------------- RESIDENTIAL--0.1% Lehman Structured Securities Corp., Collateralized Mtg. Obligations, Series 2001-GE4, Cl. A, 248.40%, 10/25/30 15 8,857 8,885 - ------------------------------------------------------------------------------------------------------------------------- Salomon Brothers Mortgage Securities VII, Inc., Commercial Mtg. Pass-Through Certificates, Series 1996-B, Cl. 1, 6.895%, 4/25/26 7,15 169,356 150,727 ----------------- 159,612 ----------------- 7,816,138 ----------------- Total Asset-Backed Sector (Cost $68,974,767) 69,344,262 - ------------------------------------------------------------------------------------------------------------------------- MONEY MARKET SECTOR--6.2% - ------------------------------------------------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--5.5% Undivided interest of 3.90% in joint repurchase agreement (Principal Amount/ Market Value $384,512,000, with a maturity value of $384,540,838) with Zion Bank/ Capital Markets Group, 0.90%, dated 4/30/04, to be repurchased at $15,005,125 on 5/3/04, collateralized by U.S. Treasury Bonds, 1.875%, 12/15/05, with a value of $200,391,980 and U.S. Treasury Nts., 5.875%, 11/15/05, with a value of $192,431,000 (Cost $15,004,000) 15,004,000 15,004,000 - ------------------------------------------------------------------------------------------------------------------------- SHORT-TERM NOTES--0.7% K2 (USA) LLC, 1.09%, 7/15/04 8 2,000,000 1,995,366 ----------------- Total Money Market Sector (Cost $16,999,458) 16,999,366 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $298,634,967) 109.5% 299,553,064 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (9.5) (25,980,244) ------------------------------------- NET ASSETS 100.0% $ 273,572,820 =====================================
32 | 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 CAD Canadian Dollar COP Colombian Peso DKK Danish Krone EUR Euro FRF French Franc GBP British Pound Sterling JPY Japanese Yen PEN Peruvian New Sol PHP Philippines Peso PLZ Polish Zloty RUR Russian Ruble SEK Swedish Krona UYU Uruguay Peso 1. Securities with an aggregate market value of $3,283,644 are held in collateralized accounts to cover initial margin requirements on open futures sales contracts. See Note 6 of Notes to Financial Statements. 2. When-issued security to be delivered and settled after April 30, 2004. See Note 1 of Notes to Financial Statements. 3. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of Notes to Financial Statements. 4. A sufficient amount of liquid assets has been designated to cover outstanding written options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM MARKET VALUE SUBJECT TO PUT DATES PRICE RECEIVED SEE NOTE 1 - --------------------------------------------------------------------------------------------------------------- Japanese Yen [JPY] 295,000,000 6/10/04 111.00JPY $ 41,193 $ 29,500 Japanese Yen [JPY] 391,000,000 6/1/04 120.00JPY 72,987 1,173 ---------------------------- $ 114,180 $ 30,673 ============================
5. Zero coupon bond reflects effective yield on the date of purchase. 6. Non-income producing security. 7. Identifies issues considered to be illiquid or restricted. See Note 11 of Notes to Financial Statements. 8. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $1,995,366, or 0.73% of the Fund's net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. 9. Received as the result of issuer reorganization. Currently has minimal market value. 10. Issue is in default. See Note 1 of Notes to Financial Statements. 11. 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 $8,502,054 or 3.11% of the Fund's net assets as of April 30, 2004. 12. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 13. Interest or dividend is paid-in-kind. 14. 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. 15. Represents the current interest rate for a variable or increasing rate security. 16. Interest rate represents a weighted average rate comprised of the interest rates of the underlying securities. 17. 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 $980,840 or 0.36% of the Fund's net assets as of April 30, 2004. 33 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- 18. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. As of April 30, 2004, the Fund had entered into the following swaption contracts.
NOTIONAL EXPIRATION EXERCISE PREMIUM MARKET VALUE SWAPTIONS AMOUNT DATE PRICE RECEIVED SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- Deutsche Bank AG $2,220,000 5/17/04 2.825% $19,758 $--
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 34 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
April 30, 2004 - --------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (including securities loaned of approximately $14,860,000) (cost $298,634,967)--see accompanying statement of investments $ 299,553,064 - --------------------------------------------------------------------------------------------------------------- Cash--foreign currencies (cost $34,805) 34,629 - --------------------------------------------------------------------------------------------------------------- Collateral for securities loaned 15,167,795 - --------------------------------------------------------------------------------------------------------------- Unrealized appreciation on foreign currency contracts 668,777 - --------------------------------------------------------------------------------------------------------------- Unrealized appreciation on swap contracts 133,430 - --------------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold (including $2,993,888 sold on a when-issued basis) 11,003,509 Interest, dividends and principal paydowns 3,866,656 Futures margins 13,345 Other 13,755 -------------- Total assets 330,454,960 - --------------------------------------------------------------------------------------------------------------- LIABILITIES Bank overdraft 116,614 - --------------------------------------------------------------------------------------------------------------- Return of collateral for securities loaned 15,167,795 - --------------------------------------------------------------------------------------------------------------- Unrealized depreciation on foreign currency contracts 668,294 - --------------------------------------------------------------------------------------------------------------- Options written, at value (premiums received $114,180) --see accompanying statement of investments 30,673 - --------------------------------------------------------------------------------------------------------------- Swaptions written, at value (premiums received $19,758) --see accompanying statement of investments -- - --------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $32,692,092 purchased on a when-issued basis) 40,029,123 Closed foreign currency contracts 709,407 Trustees' compensation 56,382 Shareholder communications 48,688 Management and administrative fees 26,522 Transfer and shareholder servicing agent fees 6,108 Other 22,534 -------------- Total liabilities 56,882,140 - --------------------------------------------------------------------------------------------------------------- NET ASSETS $ 273,572,820 ==============
35 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued - --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS Par value of shares of beneficial interest $ 292,299 - --------------------------------------------------------------------------------------------------------------- Additional paid-in capital 299,460,018 - --------------------------------------------------------------------------------------------------------------- Accumulated net investment income 2,946,805 - --------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (30,503,151) - --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 1,376,849 ------------- NET ASSETS--applicable to 29,229,920 shares of beneficial interest outstanding $273,572,820 ============= - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE $9.36
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 36 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2004 - -------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 7,545,545 - -------------------------------------------------------------------------------------------------- Fee income 308,342 - -------------------------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $4,969) 139,122 - -------------------------------------------------------------------------------------------------- Portfolio lending fees 8,087 ------------ Total investment income 8,001,096 - -------------------------------------------------------------------------------------------------- EXPENSES Management fees 893,211 - -------------------------------------------------------------------------------------------------- Shareholder communications 24,378 - -------------------------------------------------------------------------------------------------- Legal, auditing and other professional fees 22,347 - -------------------------------------------------------------------------------------------------- Custodian fees and expenses 13,522 - -------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 7,628 - -------------------------------------------------------------------------------------------------- Trustees' compensation 6,880 - -------------------------------------------------------------------------------------------------- Other 28,807 ------------ Total expenses 996,773 Less reduction to custodian expenses (963) ------------ Net expenses 995,810 - -------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 7,005,286 - -------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments (including premiums on options exercised) 1,927,612 Closing of futures contracts (1,125,752) Closing and expiration of option contracts written 49,333 Foreign currency transactions 5,986,269 ------------ Net realized gain 6,837,462 - -------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 1,115,549 Translation of assets and liabilities denominated in foreign currencies (3,252,508) Futures contracts 272,046 Swap contracts 32,992 ------------ Net change in unrealized appreciation (1,831,921) - -------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $12,010,827 ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 37 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED APRIL 30, 2004 OCTOBER 31, (UNAUDITED) 2003 - ---------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 7,005,286 $ 18,320,998 - ---------------------------------------------------------------------------------------------- Net realized gain (loss) 6,837,462 (998,513) - ---------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) (1,831,921) 30,285,612 ----------------------------- Net increase in net assets resulting from operations 12,010,827 47,608,097 - ---------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income (10,785,840) (14,030,362) - ---------------------------------------------------------------------------------------------- NET ASSETS Total increase 1,224,987 33,577,735 - ---------------------------------------------------------------------------------------------- Beginning of period 272,347,833 238,770,098 ----------------------------- End of period (including accumulated net investment income of $2,946,805 and $6,727,359, respectively) $273,572,820 $272,347,833 =============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 38 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED APRIL 30, 2004 OCT. 31, (UNAUDITED) 2003 2002 2001 2000 1999 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA Net asset value, beginning of period $9.32 $8.17 $8.37 $8.85 $9.45 $9.82 - -------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .24 .63 .65 .78 .86 .87 Net realized and unrealized gain (loss) .17 1.00 (.18) (.44) (.62) (.43) ------------------------------------------------------------------------- Total from investment operations .41 1.63 .47 .34 .24 .44 - -------------------------------------------------------------------------------------------------------------------------------- Dividend and/or distributions to shareholders: Dividends from net investment income (.37) (.48) (.67) (.79) (.68) (.81) Tax return of capital distribution -- -- -- (.03) (.16) -- ------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.37) (.48) (.67) (.82) (.84) (.81) - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $9.36 $9.32 $8.17 $8.37 $8.85 $9.45 ========================================================================= Market value, end of period $8.25 $8.34 $7.36 $8.08 $7.88 $8.06 ========================================================================= - -------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT MARKET VALUE 1 4.41% 20.44% (1.35)% 12.79% 6.93% (6.64)% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $273,573 $272,348 $238,770 $244,166 $257,629 $275,181 - -------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $275,627 $256,904 $243,498 $251,362 $269,849 $285,213 - -------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 5.11% 7.13% 7.82% 8.99% 9.27% 8.86% Expenses 0.73% 3 0.69% 3 0.82% 3 0.75% 3 0.84% 3 1.03% 3 - -------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 35% 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 expenses less than 0.01%. SEE ACCOMPANYING NOTES TO
39 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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. The Fund calculates the net asset value of its shares as of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. 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 may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Foreign securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of their respective foreign exchanges will be fair valued. 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 structured notes whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured notes are often leveraged, increasing the volatility of each note's market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying financial statements. The Fund records a realized gain or loss when a structured note is sold or matures. As of April 30, 2004, the market value of these securities comprised 6.3% of the Fund's net assets and resulted in unrealized cumulative gains of $85,729. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED (OR FORWARD COMMITMENT) BASIS. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis can take place ten days 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 40 | OPPENHEIMER MULTI-SECTOR INCOME TRUST 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. As of April 30, 2004, the value of the segregated assets was $29,938,670. The purchase of securities on a when-issued (or forward commitment) basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. The Fund may also sell securities that it purchased on a when-issued basis prior to settlement of the original purchase. As of April 30, 2004, the Fund had purchased $32,692,092 of securities on a when-issued basis and sold $2,993,888 of securities issued on a when-issued basis. In connection with its ability to purchase or sell 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 or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price. 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 at redelivery as compared to the securities sold to the counterparty; 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 April 30, 2004, securities with an aggregate market value of $5,310,193, representing 1.94% 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. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the 41 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the 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. 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. - -------------------------------------------------------------------------------- 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. 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. As of April 30, 2004, the Fund had available for federal income tax purposes an estimated unused capital loss carryforward of $29,920,697 expiring by 2012. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended April 30, 2004 and the year ended October 31, 2003, the Fund used $6,837,462 and $0, respectively, of carryforward to offset capital gains realized. 42 | OPPENHEIMER MULTI-SECTOR INCOME TRUST As of October 31, 2003, the Fund had available for federal income tax purposes unused capital loss carryforwards 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 =========== - -------------------------------------------------------------------------------- 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 six months ended April 30, 2004, the Fund's projected benefit obligations were increased by $2,797 and payments of $6,260 were made to retired trustees, resulting in an accumulated liability of $48,082 as of April 30, 2004. 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. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund does purchase shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the 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. - -------------------------------------------------------------------------------- EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable, 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. 43 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued OTHER. The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $.01 par value shares of beneficial interest. There were no transactions in shares of beneficial interest for the six months ended April 30, 2004 and the year ended October 31, 2003. - -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than U.S. government obligations and short-term obligations, for the six months ended April 30, 2004, were $70,816,581 and $87,690,955, respectively. There were purchases of $10,220,851 and sales of $6,408,319 of U.S. government and government agency obligations for the six months ended April 30, 2004. - -------------------------------------------------------------------------------- 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 a fee at an annual rate 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. 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 44 | OPPENHEIMER MULTI-SECTOR INCOME TRUST 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 gains or losses. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of April 30, 2004, the Fund had outstanding foreign currency contracts as follows:
VALUATION CONTRACT AS OF EXPIRATION AMOUNT APRIL 30, UNREALIZED UNREALIZED CONTRACT DESCRIPTION DATES (000S) 2004 APPRECIATION DEPRECIATION - --------------------------------------------------------------------------------------------------------------------------- CONTRACTS TO PURCHASE Argentine Peso (ARP) 5/28/04-8/2/04 3,000ARP $ 1,047,067 $ 74,395 $ -- Australian Dollar (AUD) 5/14/04 1,190AUD 857,913 -- 38,395 Brazilian Real (BRR) 1/24/05-1/26/05 4,510BRR 1,386,909 -- 32,745 British Pound Sterling (GBP) 5/14/04-6/15/04 935GBP 1,653,561 -- 26,227 Indian Rupee (INR) 7/26/04 17,000INR 383,094 -- 3,709 Indonesia Rupiah (IDR) 9/24/04 1,375,000IDR 156,570 284 -- Japanese Yen (JPY) 3/15/05-4/1/05 1,949,640JPY 17,952,922 22,823 466,229 Mexican Nuevo Peso (MXN) 10/27/04 6,890MXN 587,871 -- 5,154 New Taiwan Dollar 7/26/04-9/24/04 28,715TWD 867,504 -- 6,541 New Zealand Dollar (NZD) 5/14/04 1,370NZD 855,401 -- 36,634 Peruvian New Sol (PEN) 7/16/04 609PEN 174,389 -- 764 Philippines Peso (PHP) 7/26/04 20,000PHP 351,518 -- 1,527 Polish Zloty (PLZ) 6/11/04-7/7/04 3,558PLZ 879,916 -- 28,109 Singapore Dollar (SGD) 7/26/04 480SGD 282,425 -- 2,272 South Korean Won (KRW) 7/26/04-9/24/04 840,000KRW 709,548 -- 8,808 -------------------------- 97,502 657,114 -------------------------- CONTRACTS TO SELL British Pound Sterling (GBP) 9/9/04 590GBP 1,034,006 39,794 -- Colombian Peso (COP) 5/27/04 938,000COP 353,049 3,605 -- Euro (EUR) 6/9/04-7/7/04 17,069EUR 20,433,831 462,289 6,860 Indonesia Rupiah (IDR) 6/18/04 3,660,175IDR 416,781 -- 1,701 Japanese Yen (JPY) 5/13/04-5/14/04 369,500JPY 3,349,693 65,587 -- Swiss Franc (CHF) 5/14/04 1,170CHF 902,688 -- 2,619 -------------------------- 571,275 11,180 -------------------------- Total unrealized appreciation and depreciation $668,777 $668,294 ==========================
- -------------------------------------------------------------------------------- 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 futures) in order to gain exposure to or protection from changes in market value of stocks and bonds or interest rates. The Fund may also buy or write put or call options on these futures contracts. 45 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. FUTURES CONTRACTS Continued 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 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 in the Statement of Operations as the 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 April 30, 2004, the Fund had outstanding futures contracts as follows:
UNREALIZED EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES CONTRACTS APRIL 30, 2004 (DEPRECIATION) - ------------------------------------------------------------------------------------------------------- CONTRACTS TO PURCHASE DAX Index 6/18/04 5 $ 596,079 $ (13,418) Euro-Bundesobligation 6/8/04 11 1,504,420 (16,221) FTSE 100 Index 6/18/04 1 79,703 (1,411) Nikkei 225 6/10/04 2 115,550 (5,034) United Kingdom Long Gilt 6/28/04 2 379,249 (28) U.S. Long Bonds 6/21/04 61 6,532,719 (285,417) U.S. Treasury Nts., 10 yr. 6/21/04 193 21,326,500 (207,519) ---------- (529,048) ---------- CONTRACTS TO SELL DAX Index 6/18/04 3 357,647 (7,835) Japan (Government of) Bonds, 10 yr. 6/10/04 4 4,978,478 41,253 MIB 30 Index 6/18/04 4 663,628 (25,054) NASDAQ 100 Index 6/17/04 11 1,543,300 45,609 Standard & Poor's 500 E-Mini 6/18/04 9 497,700 (821) Standard & Poor's 500 Index 6/17/04 4 1,106,100 10,750 U.S. Long Bonds 6/21/04 112 11,994,500 337,654 U.S. Treasury Nts., 2 yr. 6/30/04 186 39,533,718 103,514 U.S. Treasury Nts., 5 yr. 6/21/04 92 10,114,250 272,123 U.S. Treasury Nts., 10 yr. 6/21/04 1 110,500 127 ---------- 777,320 ---------- $248,272 ==========
46 | 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. Contracts 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 six months ended April 30, 2004 was as follows:
CALL OPTIONS PUT OPTIONS ------------------------------ ------------------------------ PRINCIPAL/ PRINCIPAL/ NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS - ------------------------------------------------------------------------------------------------------------ Options outstanding as of October 31, 2003 5,310,000 $ 69,674 391,000,000 $ 72,987 Options written -- -- 295,000,000 41,193 Options closed or expired (3,540,000) (49,333) -- -- Options exercised (1,770,000) (20,341) -- -- -------------------------------------------------------------------- Options outstanding as of April 30, 2004 -- $ -- 686,000,000 $114,180 ====================================================================
- -------------------------------------------------------------------------------- 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. 47 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 8. INTEREST RATE SWAP CONTRACTS Continued 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 unrealized gain (loss), 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 April 30, the Fund had entered into the following interest rate swap agreements:
FIXED RATE FLOATING RATE PAID BY THE RECEIVED BY FUND AT THE FUND AT UNREALIZED SWAP NOTIONAL APRIL 30, APRIL 30, FLOATING TERMINATION APPRECIATION COUNTERPARTY AMOUNT 2004 2004 RATE INDEX DATES (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------- Deutsche Bank AG 28,440,000INR 0.0133% 4.50% IRS 1/15/09 $ 3,696 Deutsche Bank Three-Month AG 43,910,000 3.1025 0.0031 LIBOR Flat 3/4/08 38,791 JPMorgan Six-Month Chase Bank 360,000EUR 3.135 2.081 LIBOR Flat 7/14/08 3,617 JPMorgan Six-Month Chase Bank 100,600,000HUF 9.13 7.00 LIBOR Flat 7/14/08 (36,653) JPMorgan Three-Month Chase Bank 11,000,000 2.32 1.17 LIBOR Flat 11/10/05 (20,208) JPMorgan Three-Month Chase Bank 4,300,000 3.052 0.003083 LIBOR Flat 3/10/08 101,582 JPMorgan Three-Month Chase Bank 15,500,000 3.82 1.17 LIBOR Flat 11/10/08 17,295 JPMorgan Three-Month Chase Bank 710,000 0.003196 0.013496 BBA LIBOR 4/30/14 (3,086) --------- $105,034 ========= Notional amount is reported in U.S. Dollars, except for those denoted in the following currencies. Index abbreviations are also noted below. EUR Euro HUF Hungary Forints INR Indian Rupee BBA British Bankers Association IRS India Swap Composites LIBOR London-Interbank Offered Rate
- -------------------------------------------------------------------------------- 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 48 | OPPENHEIMER MULTI-SECTOR INCOME TRUST records an increase or decrease to unrealized gain (loss), 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. During the six months ended April 30, 2004, 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 APRIL 30, 2004 (DEPRECIATION) - ------------------------------------------------------------------------------------------------------- Deutsche Bank AG, Philippines (Republic of) 5 yr. Credit Nts. 7/25/08 $ 630,000 $ (7,441) $ (7,441) Deutsche Bank AG, Philippines (Republic of) 10 yr. Credit Bonds 7/25/13 630,000 9,954 9,954 Deutsche Bank AG, Russian Federation Credit Bonds 9/10/13 605,000 3,058 3,058 Deutsche Bank AG, Russian Federation Credit Bonds 9/20/13 790,000 1,286 1,286 Deutsche Bank AG, Russian Federation Credit Bonds 10/30/13 1,280,000 25,513 25,513 Deutsche Bank AG, Turkey (Republic of) Credit Bonds 10/10/13 320,000 (25,485) (25,485) Deutsche Bank AG, United Mexican States Credit Bonds 9/20/13 630,000 (4,612) (4,612) JPMorgan Chase Bank, Hungary (Republic of) Credit Bonds 12/2/13 900,000 (6,024) (6,024) JPMorgan Chase Bank, Jordan (Kingdom of) Credit Nts. 6/6/06 175,000 157 157 JPMorgan Chase Bank, Philippines (Republic of) Credit Bonds 6/20/09 435,000 (5,121) (5,121) JPMorgan Chase Bank, Russian Federation Credit Bonds 10/9/13 330,000 16,301 16,301 JPMorgan Chase Bank, Russian Federation Credit Bonds 11/19/13 1,050,000 26,717 26,717 JPMorgan Chase Bank, Turkey (Republic of) Credit Bonds 2/16/06 625,000 (3,528) (3,528) JPMorgan Chase Bank, Venezuela (Republic of) Credit Bonds 12/20/06 860,000 (5,002) (5,002) JPMorgan Chase Bank, Venezuela (Republic of) Credit Bonds 2/20/14 540,000 2,623 2,623 --------- $28,396 =========
- -------------------------------------------------------------------------------- 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. 49 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 10. SWAPTION TRANSACTIONS Continued Written swaption activity for the six months ended April 30, 2004 was as follows: NOTIONAL AMOUNT OF AMOUNT PREMIUMS --------------------------------------------------------------- Swaptions outstanding as of October 31, 2003 $2,220,000 $19,758 Swaptions written -- -- -------------------------- Swaptions outstanding as of April 30, 2004 $2,220,000 $19,758 ========================== - -------------------------------------------------------------------------------- 11. ILLIQUID OR RESTRICTED SECURITIES AND CURRENCY As of April 30, 2004, investments in securities included issues that are illiquid or restricted. Restricted securities are purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also 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 or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of April 30, 2004 was $20,552,765, which represents 7.51% of the Fund's net assets, of which $34,629 is considered restricted. Information concerning restricted currency is as follows: ACQUISITION VALUATION AS OF UNREALIZED SECURITY DATE COST APRIL 30, 2004 DEPRECIATION - ------------------------------------------------------------------------------ CURRENCY Argentine Peso 4/7/04 $34,805 $34,629 $176 - -------------------------------------------------------------------------------- 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 is invested in cash equivalents. The Fund retains a portion of the interest earned from the collateral. The Fund also continues to receive interest or dividends paid on the securities loaned. As of April 30, 2004, the Fund had on loan securities valued at approximately $14,860,000. Cash of $15,167,795 was received as collateral for the loans, and has been invested in approved instruments. 50 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- 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 (the SEC) 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. The SEC's order requires the Fund's Board of Trustees to adopt operating policies and procedures to administer interfund borrowing and lending. 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 six months ended or at April 30, 2004. - -------------------------------------------------------------------------------- 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. 51 | OPPENHEIMER MULTI-SECTOR INCOME TRUST - -------------------------------------------------------------------------------- GENERAL INFORMATION CONCERNING THE FUND Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Oppenheimer Multi-Sector Income Trust (the Fund) is a closed-end diversified management investment company with a primary investment objective of seeking high current income consistent with preservation of capital. The Fund's secondary investment objective is capital appreciation. In seeking its objectives under normal market conditions, the Fund may invest any percentage of its assets in at least three of the following seven fixed income sectors: U.S. Government, Corporate, International, Asset-Backed, Municipal, Convertible and Money Market. Current income, preservation of capital and, secondarily, possible capital appreciation may be considerations in the allocation of assets among such sectors. The Fund can invest in a number of different kinds of "derivative investments" and can also engage in certain special investment techniques, including repurchase transactions, when-issued and delayed delivery transactions and hedging. Although, the Fund is not required to invest in any of these types of securities at all times. The investment advisor to the Fund is OppenheimerFunds, Inc. (the Manager). The Portfolio Managers of the Fund are Arthur Steinmetz and Caleb Wong. Mr. Steinmetz is a Vice President of the Fund and a Senior Vice President of the Advisor and Mr. Wong is Vice President of the Advisor and the Fund. Messrs. Steinmetz and Wong have been the persons principally responsible for the day-to-day management of the Fund's portfolio since February 1, 1999. Prior to February 1999, Mr. Steinmetz served as a portfolio manager and officer of other Oppenheimer funds. Mr. Wong worked on fixed-income quantitative research and risk management for the Advisor since July 1996, prior to which he was enrolled in the Ph.D. program for Economics as the University of Chicago. Other members of the Advisor's fixed-income portfolio department, particularly portfolio analysts, traders and other portfolio managers provide the Fund's Portfolio Managers with support in managing the Fund's portfolio. DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN--Pursuant to the Fund's Dividend Reinvestment and Cash Purchase Plan (the Plan), as to shares of the Fund (Shares) not registered in nominee name, all dividends and capital gains distributions (Distributions) declared by the Fund will be automatically reinvested in additional full and fractional Shares unless a shareholder elects to receive cash. If Shares are registered in nominee name, the shareholder should consult the nominee if the shareholder desires to participate in the Plan. Shareholders that participate in the Plan (Participants) may, at their option, make additional cash investments in Shares, semi-annually in amounts of at least $100, through payment to Shareholder Financial Services, Inc., the agent for the Plan (the Agent), accompanied by a service fee of $0.75. Depending upon the circumstances hereinafter described, Plan Shares will be acquired by the Agent for the Participant's account through receipt of newly issued Shares or the purchase of outstanding Shares on the open market. If the market price of Shares on the relevant date (normally the payment date) equals or exceeds their net asset value, the Agent will ask the Fund for payment of the Distribution in additional Shares at the greater of the Fund's net asset value determined as of the date of purchase or 95% of the then-current market price. If the market price is lower than net asset value, the 52 | OPPENHEIMER MULTI-SECTOR INCOME TRUST Distribution will be paid in cash, which the Agent will use to buy Shares on The New York Stock Exchange (the NYSE), or otherwise on the open market to the extent available. If the market price exceeds the net asset value before the Agent has completed its purchases, the average purchase price per Share paid by the Agent may exceed the net asset value, resulting in fewer Shares being acquired than if the Distribution had been paid in Shares issued by the Fund. Participants may elect to withdraw from the Plan at any time and thereby receive cash in lieu of Shares by sending appropriate written instructions to the Agent. Elections received by the Agent will be effective only if received more than ten days prior to the record date for any Distribution; otherwise, such termination will be effective shortly after the investment of such Distribution with respect to any subsequent Distribution. Upon withdrawal from or termination of the Plan, all Shares acquired under the Plan will remain in the Participant's account unless otherwise requested. For full Shares, the Participant may either: (1) receive without charge a share certificate for such Shares; or (2) request the Agent (after receipt by the Agent of signature guaranteed instructions by all registered owners) to sell the Shares acquired under the Plan and remit the proceeds less any brokerage commissions and a $2.50 service fee. Fractional Shares may either remain in the Participant's account or be redeemed at the current market price with the proceeds remitted to the Participant. Shareholders who have previously withdrawn from the Plan may rejoin at any time by sending written instructions signed by all registered owners to the Agent. There is no direct charge for participation in the Plan; all fees of the Agent are paid by the Fund. There are no brokerage charges for Shares issued directly by the Fund. However, each Participant will pay a pro rata share of brokerage commissions incurred with respect to open market purchases of Shares to be issued under the Plan. Participants will receive tax information annually for their personal records and to assist in federal income tax return preparation. The automatic reinvestment of Distributions does not relieve Participants of any income tax that may be payable on Distributions. The Plan may be terminated or amended at any time upon 30 days' prior written notice to Participants which, with respect to a Plan termination, must precede the record date of any Distribution by the Fund. Additional information concerning the Plan may be obtained by shareholders holding Shares registered directly in their names by writing the Agent, Shareholder Financial Services, Inc., P.O. Box 173673, Denver, CO 80217-3673 or by calling 1-800-647-7374. Shareholders holding Shares in nominee name should contact their brokerage firm or other nominee for more information. SHAREHOLDER INFORMATION--The Shares are traded on the NYSE. Daily market prices for the Fund's shares are published in the New York Stock Exchange Composite Transaction section of newspapers under the designation "OppenMlti." The Fund's NYSE trading symbol is OMS. Weekly net asset value (NAV) and market price information about the Fund is generally published each Monday in The Wall Street Journal and each Sunday in The New York Times and each Saturday in Barron's, and other newspapers in a table called "Closed-End Bond Funds." 53 | OPPENHEIMER MULTI-SECTOR INCOME TRUST Item 2. Code of Ethics The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. Item 3. Audit Committee Financial Expert The Board of Trustees of the registrant has determined that the registrant does not have an audit committee financial expert serving on its Audit Committee. In this regard, no member of the Audit Committee was identified as having all of the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR to qualify as an "audit committee financial expert," whether through the type of specialized education or experience described in that Instruction. The Board has concluded that while the members of the Audit Committee collectively have the necessary attributes and experience required to serve effectively as an Audit Committee, no single member possesses all of the required technical attributes through the particular methods of education or experience set forth in the Instructions to be designated as an audit committee financial expert. Item 4. Principal Accountant Fees and Services Not applicable to semiannual reports. Item 5. Not applicable Item 6. Schedule of Investments Not applicable Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable to semiannual reports ITEM 8. Purchases of Equity Securities by Closed-end Management Investment Company and Affiliated Purchasers Not applicable Item 9. Submission of Matters to a Vote of Security Holders The Board is responsible for approving nominees for election as trustees. To assist in this task, the Board has designated the Audit Committee as the nominating committee for the Board. It reviews and recommends nominees to the Board. The Committee is comprised entirely of disinterested trustees as defined in Section 2(a)(19) of the Investment Company Act of 1940. The Audit Committee charter describes the responsibilities of the Committee in nominating candidates for election as independent Trustees of the Registrant. The Registrant's Board has adopted a written charter for the Committee. A current copy of the Audit Committee charter is available to shareholders on the OppenheimerFunds website at www.oppenheimerfunds.com. Under the current policy, if the Board determines that a vacancy exists or is likely to exist on the Board, the Audit Committee of the Board will consider candidates for Board membership including recommended by Registrant shareholders. The Audit Committee will consider nominees recommended by independent Board members or recommended by any other Board members including Board members affiliated with the Registrant's investment advisors. The Committee may, upon Board approval, retain an executive search firm to assist in screening potential candidates. Upon Board approval, the Audit Committee may also use the services of legal, financial, or other external counsel that it deems necessary or desirable in the screening process. Shareholders wishing to submit a nominee for election to the Board may do so by mailing their submission to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO 80112, to the attention of the Board of Trustees of the named Registrant, c/o the Secretary of the Registrant. The Committee's process for identifying and evaluating nominees for trustees includes a number of factors. In screening candidates for board membership, whether the candidate is suggested by Board members, shareholders or others, the Committee considers the candidate's professional experience, soundness of judgment, integrity, ability to make independent, analytical inquiries, collegiality, willingness and ability to devote the time required to perform Board activities adequately, ability to represent the interests of all shareholders of the Registrant, and diversity relative to the board's composition. Candidates are expected to provide a mix of attributes, experience, perspective and skills necessary to effectively advance the interests of shareholders. Item 10. 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 April 30, 2004, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to provide reasonable assurances 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 over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 11. Exhibits. (a) Exhibit attached hereto. (Attach code of ethics as exhibit) (b) Exhibits attached hereto. (Attach certifications as exhibits) EX-99.CODE ETH 2 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. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. - ---------------------------- 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. 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 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. - --------------------- 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. 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 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 c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 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 control over financial reporting. Date: 6/15/04 /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 c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 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 control over financial reporting. Date: 6/15/04 /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 2002 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 April 30, 2004 (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: 6/15/04 Date: 6/15/04 -----END PRIVACY-ENHANCED MESSAGE-----