Annual Report 10/31/2017. Oppenheimer Equity Income Fund

Transcription

1 Annual Report 10/31/2017 Oppenheimer Equity Income Fund

2 Table of Contents Fund Performance Discussion 3 Top Holdings and Allocations 6 Fund Expenses 9 Statement of Investments 11 Statement of Assets and Liabilities 18 Statement of Operations 20 Statements of Changes in Net Assets 22 Financial Highlights 23 Notes to Financial Statements 29 Report of Independent Registered Public Accounting Firm 47 Federal Income Tax Information 48 Board Approval of the Fund s Investment Advisory and Sub- Advisory Agreements 49 Portfolio Proxy Voting Policies and Guidelines; Updates to Statement of Investments 52 Distribution Sources 53 Trustees and Officers 54 Privacy Notice 60 Class A Shares AVERAGE ANNUAL TOTAL RETURNS AT 10/31/17 Class A Shares of the Fund Without Sales Charge With Sales Charge Russell 1000 Value Index 1-Year 18.19% 11.39% 17.78% 5-Year Year Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual's investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent monthend, visit oppenheimerfunds.com or call CALL OPP ( ). See Fund prospectuses and summary prospectuses for more information on share classes and sales charges. 2 OPPENHEIMER EQUITY INCOME FUND

3 Fund Performance Discussion The Fund s Class A shares (without sales charge) returned 18.19% during the reporting period, outperforming the Russell 1000 Value Index (the Index ), which returned 17.78%. The Fund s outperformance stemmed primarily from stock selection in Financials, Energy, and Information Technology sectors. Underperforming sectors for the Fund included Telecommunication Services, Health Care and Industrials sectors due to less favorable stock selection. MARKET OVERVIEW It would be an understatement to refer to 2016 as an eventful year, and the fourth quarter provided an exclamation point. Not only did the Chicago Cubs win their first world series in 108 years, the results of the Presidential election marked a significant change in market sentiment that was widely unexpected. Similar to the surprise Brexit vote in June, expectations of a negative market reaction proved to be overly pessimistic, and the U.S. equity market reacted in a positive manner. Markets continued to rally throughout 2017 and the big story in the U.S. equity market has been the performance of growth stocks. For the one-year reporting period ended October 31, 2017, the Russell 1000 Growth Index returned 29.71%, while the Russell 1000 Value Index was up 17.78%. This performance continued a trend of growth stocks outperforming that has largely been in place for the past 10 years. COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Equity Income Fund (Class A shares with sales charge) Russell 1000 Value Index $20,000 15,000 $18,207 $17,893 10,000 5, /31/07 10/31/08 10/31/09 10/31/10 10/31/11 10/31/12 10/31/13 10/31/14 10/31/15 10/31/16 10/31/17 3 OPPENHEIMER EQUITY INCOME FUND

4 Most sectors of the Index performed positively in this environment, with Financials, Materials and Information Technology leading the way. The only negative performing sector of the Index was Telecommunication Services. FUND REVIEW During the reporting period, top contributors to performance included Financials stocks Citigroup Inc., Assured Guaranty Ltd. and JPMorgan Chase & Co. As mentioned earlier, Financials was a top performer for the Fund during the reporting period. The sector in general continued to perform relatively well in the reporting period as investors became more optimistic about potential tax reform, which could positively impact banks. At the end of June, Citigroup announced that its capital return plan was approved by the Federal Reserve. Between share repurchase and dividends, the company plans to return almost $19 billion to shareholders, which represents an increase of over 80% from 2016 s plan. Assured Guaranty, which insures debt obligations such as municipal bonds, enjoyed a strong 2016 and remains committed to capital return through both dividends and share repurchase. It remains one of our top holdings in the Financials sector. JPMorgan Chase & Co. fared well in a favorable environment for bank stocks, while also producing strong earnings reports. Detractors from performance during the reporting period included Frontier Communications Corp., Teva Pharmaceutical Industries Ltd., and Uniti Group, Inc. Frontier Communications Corporation is a high-yielding local telephone company. In 2016, the company acquired wireline operations in Texas, California and Florida from Verizon Communications. The company announced a cut to its dividend during the second quarter of 2017, and will focus on utilizing cash flow to restructure its balance sheet going forward. While this result was disappointing, we believe this strategy can result in attractive free cash flows over the next few years. Shares of Teva, a global provider of generic and specialty pharmaceuticals, declined as a result of concern over generic competition for its multiple sclerosis drug Copaxone. We exited our position. Uniti was spun out of portfolio holding Windstream Holdings, Inc. in 2015 as a real estate investment trust (REIT) that owns communications assets such as fiber networks and communication towers. Windstream, which remains Uniti s largest customer, announced a dividend cut in early August 2017, sending both stocks down on the news. We exited our position in Windstream. STRATEGY & OUTLOOK Overall, 2017 has so far been another strong year for U.S. equities. While valuations are above normal levels for the market as a whole, in our view there are attractively valued opportunities we can still take advantage of. This year has been 4 OPPENHEIMER EQUITY INCOME FUND

5 characterized by improving economic activity on a global basis, and we believe those trends will continue through the end of the year. As bottom-up value investors, we believe there are still attractively valued stocks that can benefit from these positive trends. Michael S. Levine, CFA Portfolio Manager 5 OPPENHEIMER EQUITY INCOME FUND

6 Top Holdings and Allocations TOP TEN COMMON STOCK HOLDINGS Citigroup, Inc. 5.4% JPMorgan Chase & Co. 3.1 Chevron Corp. 2.6 Royal Dutch Shell plc, Cl. A, Sponsored ADR 2.5 Apple, Inc. 2.3 Bank of America Corp. 2.2 CalAtlantic Group, Inc. 2.2 Exxon Mobil Corp. 2.2 AT&T, Inc. 2.2 Wells Fargo & Co. 2.0 Portfolio holdings and allocations are subject to change. Percentages are as of October 31, 2017, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds. com. TOP TEN COMMON STOCK INDUSTRIES Commercial Banks 12.7% Oil, Gas & Consumable Fuels 12.2 Capital Markets 5.8 Pharmaceuticals 5.3 Real Estate Investment Trusts (REITs) 5.0 Technology Hardware, Storage & Peripherals 3.6 Media 3.4 Health Care Equipment & Supplies 3.2 Diversified Telecommunication Services 3.2 Insurance 3.0 PORTFOLIO ALLOCATION Common Stocks 92.5% Preferred Stocks 5.6 Convertible Corporate Bonds and Notes 0.8 Structured Securities 0.6 Investment Company Oppenheimer Institutional Government Money Market Fund 0.4 Exchange-Traded Options Purchased 0.1 Non-Convertible Corporate Bonds and Notes * * Represents a value of less than 0.05%. Portfolio holdings and allocations are subject to change. Percentages are as of October 31, 2017, and are based on the total market value of investments. Portfolio holdings and allocations are subject to change. Percentages are as of October 31, 2017, and are based on net assets. 6 OPPENHEIMER EQUITY INCOME FUND

7 Share Class Performance AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 10/31/17 Inception Date 1-Year 5-Year 10-Year Class A (OAEIX) 2/13/ % 10.63% 6.81% Class B (OBEIX) 3/3/ Class C (OCEIX) 3/3/ Class I (OIEIX) 2/28/ * Class R (ONEIX) 3/1/ Class Y (OYEIX) 2/28/ * AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 10/31/17 Inception Date 1-Year 5-Year 10-Year Class A (OAEIX) 2/13/ % 9.32% 6.17% Class B (OBEIX) 3/3/ Class C (OCEIX) 3/3/ Class I (OIEIX) 2/28/ * Class R (ONEIX) 3/1/ Class Y (OYEIX) 2/28/ * * Shows performance since inception. Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual s investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call CALL OPP ( ). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 5.75%; for Class B shares, the contingent deferred sales charge of 5% (1-year) and 2% (5-year); and for Class C shares, the contingent deferred sales charge of 1% for the 1-year period. There is no sales charge for Class I, Class R and Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B shares uses Class A performance for the period after conversion. Returns for periods of less than one year are cumulative and not annualized. See Fund prospectuses and summary prospectuses for more information on share classes and sales charges. The Fund s performance is compared to the performance of the Russell 1000 Value Index. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund s performance, it must be noted that the Fund s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes 7 OPPENHEIMER EQUITY INCOME FUND

8 only as a benchmark for the Fund's performance, and does not predict or depict performance of the Fund. The Fund's performance reflects the effects of the Fund's business and operating expenses. The Fund's investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling CALL OPP ( ). Read prospectuses and summary prospectuses carefully before investing. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. 8 OPPENHEIMER EQUITY INCOME FUND

9 Fund Expenses Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments and/or contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1, invested at the beginning of the period and held for the entire 6-month period ended October 31, Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1, (for example, an $8, account value divided by $1, = 8.60), then multiply the result by the number in the first section under the heading entitled Expenses Paid During 6 Months Ended October 31, 2017 to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads). Therefore, the hypothetical section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 9 OPPENHEIMER EQUITY INCOME FUND

10 Actual Beginning Account Value May 1, 2017 Ending Account Value October 31, 2017 Expenses Paid During 6 Months Ended October 31, 2017 Class A $ 1, $ 1, $ 5.36 Class B 1, , Class C 1, , Class I 1, , Class R 1, , Class Y 1, , Hypothetical (5% return before expenses) Class A 1, , Class B 1, , Class C 1, , Class I 1, , Class R 1, , Class Y 1, , Expenses are equal to the Fund s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended October 31, 2017 are as follows: Class Expense Ratios Class A 1.03% Class B 1.80 Class C 1.79 Class I 0.62 Class R 1.29 Class Y 0.79 The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Fund s Manager and Transfer Agent. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund's prospectus. The Financial Highlights tables in the Fund s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 10 OPPENHEIMER EQUITY INCOME FUND

11 STATEMENT OF INVESTMENTS October 31, 2017 Shares Value Common Stocks 92.7% Consumer Discretionary 7.9% Automobiles 0.6% Ford Motor Co. 1,825,000 $ 22,392,750 Hotels, Restaurants & Leisure 1.2% Extended Stay America, Inc. 2,312,500 45,833,750 Household Durables 2.2% CalAtlantic Group, Inc. 1,692,500 83,507,950 Media 3.4% Comcast Corp., Cl. A 1,675,000 60,350,250 Sinclair Broadcast Group, Inc., Cl. A 512,500 16,246,250 Time Warner, Inc. 560,000 55,042, ,638,900 Specialty Retail 0.5% Signet Jewelers Ltd. 327,500 21,474,175 Consumer Staples 5.9% Beverages 0.8% Molson Coors Brewing Co., Cl. B 385,000 31,134,950 Food & Staples Retailing 1.9% CVS Health Corp. 377,500 25,870,075 Walgreens Boots Alliance, Inc. 597,500 39,596,325 Wal-Mart Stores, Inc. 75,000 6,548,250 72,014,650 Food Products 2.3% B&G Foods, Inc. 1,235,000 39,273,000 Kraft Heinz Co. (The) 657,500 50,844,475 90,117,475 Tobacco 0.9% Philip Morris International, Inc. 326,250 34,138,800 Energy 12.2% Oil, Gas & Consumable Fuels 12.2% BP plc, Sponsored ADR 1,485,000 60,394,950 Chevron Corp. 861,250 99,810,263 Exxon Mobil Corp. 1,000,000 83,350,000 Kinder Morgan, Inc. 1,212,500 21,958,375 Marathon Oil Corp. 3,065,000 43,584,300 Royal Dutch Shell plc, Cl. A, Sponsored ADR 1,512,500 95,332,875 Williams Cos., Inc. (The) 2,225,000 63,412, ,843, OPPENHEIMER EQUITY INCOME FUND

12 STATEMENT OF INVESTMENTS Continued Shares Value Financials 31.3% Capital Markets 5.8% Goldman Sachs Group, Inc. (The) 297,500 $ 72,137,800 KKR & Co. LP 1 3,755,000 75,287,750 Morgan Stanley 1,500,000 75,000, ,425,550 Commercial Banks 12.7% Bank of America Corp. 3,075,000 84,224,250 Citigroup, Inc. 2 2,850, ,475,000 JPMorgan Chase & Co. 2 1,175, ,216,750 Wells Fargo & Co. 1,350,000 75,789, ,705,000 Consumer Finance 0.6% Navient Corp. 1,900,000 23,674,000 Diversified Financial Services 0.8% Voya Financial, Inc. 790,000 31,726,400 Insurance 3.0% American International Group, Inc. 1,105,000 71,394,050 MetLife, Inc. 840,000 45,007, ,401,250 Real Estate Investment Trusts (REITs) 5.0% Colony NorthStar, Inc., Cl. A 5,412,500 66,465,500 istar, Inc. 3 1,075,000 12,577,500 Starwood Property Trust, Inc. 1,942,000 41,772,420 Two Harbors Investment Corp. 2,550,000 24,990,000 Uniti Group, Inc. 2,750,000 48,125, ,930,420 Real Estate Management & Development 1.0% Realogy Holdings Corp. 900,000 29,097,000 Safety Income & Growth, Inc. 472,223 8,485,847 37,582,847 Thrifts & Mortgage Finance 2.4% MGIC Investment Corp. 3 3,575,000 51,122,500 Radian Group, Inc. 1,962,500 41,134,000 92,256,500 Health Care 10.7% Biotechnology 2.0% AbbVie, Inc. 365,000 32,941,250 Gilead Sciences, Inc. 602,500 45,163,400 78,104, OPPENHEIMER EQUITY INCOME FUND

13 Shares Value Health Care Equipment & Supplies 3.2% Abbott Laboratories 1,025,000 $ 55,585,750 Medtronic plc 690,000 55,558,800 NuVasive, Inc. 3 50,000 2,836,500 Zimmer Biomet Holdings, Inc. 75,000 9,121, ,102,550 Health Care Providers & Services 0.2% Universal Health Services, Inc., Cl. B 85,000 8,729,500 Pharmaceuticals 5.3% Bristol-Myers Squibb Co. 305,000 18,806,300 Johnson & Johnson 420,000 58,552,200 Merck & Co., Inc. 1,065,000 58,670,850 Pfizer, Inc. 1,937,500 67,928, ,958,100 Industrials 5.0% Aerospace & Defense 1.4% General Dynamics Corp. 94,500 19,181,610 United Technologies Corp. 274,750 32,904,060 52,085,670 Airlines 1.7% United Continental Holdings, Inc. 3 1,097,500 64,181,800 Electrical Equipment 1.1% Eaton Corp. plc 497,500 39,809,950 General Cable Corp. 145,000 3,037,750 42,847,700 Industrial Conglomerates 0.8% General Electric Co. 1,500,000 30,240,000 Machinery 0.0% PACCAR, Inc. 25,000 1,793,250 Information Technology 11.2% Communications Equipment 1.9% Cisco Systems, Inc. 2,125,000 72,568,750 Internet Software & Services 0.5% Alphabet, Inc., Cl. C 3 19,950 20,281,968 IT Services 0.4% First Data Corp., Cl. A 3 950,000 16,919,500 Semiconductors & Semiconductor Equipment 2.0% Intel Corp. 650,000 29,568,500 Micron Technology, Inc ,000 23,307, OPPENHEIMER EQUITY INCOME FUND

14 STATEMENT OF INVESTMENTS Continued Shares Value Semiconductors & Semiconductor Equipment (Continued) QUALCOMM, Inc. 455,000 $ 23,209,550 76,085,110 Software 2.8% Microsoft Corp. 530,000 44,085,400 Oracle Corp. 1,207,500 61,461, ,547,150 Technology Hardware, Storage & Peripherals 3.6% Apple, Inc. 518,750 87,689,500 HP, Inc. 1,182,500 25,482,875 Western Digital Corp. 300,000 26,781, ,953,375 Materials 1.8% Chemicals 1.6% DowDuPont, Inc. 625,000 45,193,750 LyondellBasell Industries NV, Cl. A 162,500 16,823,625 62,017,375 Containers & Packaging 0.2% International Paper Co. 159,750 9,148,883 Telecommunication Services 3.2% Diversified Telecommunication Services 3.2% AT&T, Inc. 2,432,750 81,862,037 CenturyLink, Inc. 2,080,000 39,499, ,361,237 Utilities 3.5% Electric Utilities 2.4% American Electric Power Co., Inc. 537,500 39,995,375 Exelon Corp. 1,285,000 51,669,850 91,665,225 Independent Power and Renewable Electricity Producers 1.1% NRG Energy, Inc. 1,750,000 43,750,000 Total Common Stocks (Cost $2,721,604,929) 3,570,140,423 Preferred Stocks 5.6% Allergan plc, 5.50% Cv., Series A 95,000 61,150,550 Becton Dickinson & Co., 0.655% Cv., Series A, Non-Vtg. 665,000 37,752,050 Frontier Communications Corp., % Cv., Series A, Non-Vtg ,000 17,892,000 istar, Inc., 4.50% Cv., Non-Vtg. 982,050 48,876,628 Post Holdings, Inc., 0.625% Cv., Series C 310,000 48,708,750 Total Preferred Stocks (Cost $302,808,795) 214,379, OPPENHEIMER EQUITY INCOME FUND

15 Principal Amount Value Non-Convertible Corporate Bond and Note 0.0% Reynolds American, Inc., 7% Sr. Unsec. Nts., 8/4/41 5 (Cost $358,937) $ 354,000 $ 478,307 Convertible Corporate Bond and Note 0.8% Micron Technology, Inc., 3% Cv. Sr. Unsec. Nts., 11/15/43 (Cost $25,414,847) 20,750,000 32,266,250 Shares Structured Security 0.6% Credit Suisse AG (London), Alphabet, Inc. Equity Linked Nts., 2/7/18 7 (Cost $25,018,560) 24,480 25,018,560 Exercise Expiration Price Date Notional Amount (000's) Contracts (000's) Exchange-Traded Options Purchased 0.1% B&G Foods, Inc. Put 3 USD /17/17 USD 18,285 USD 6 431,250 Morgan Stanley Put 3 USD /17/17 USD 3,750 USD 1 13,500 NRG Energy, Inc. Put 3 USD /17/17 USD 34,375 USD ,000 Oracle Corp. Put 3 USD /17/17 USD 29,268 USD 6 17,250 Oracle Corp. Put 3 USD /17/17 USD 12,725 USD 3 17,500 QUALCOMM, Inc. Put 3 USD /17/17 USD 25,505 USD 5 655,000 Uniti Group, Inc. Call 3 USD /16/18 USD 4,375 USD 3 237,500 Uniti Group, Inc. Put 3 USD /17/17 USD 35,000 USD ,000 Wells Fargo & Co. Put 3 USD /17/17 USD 28,070 USD 5 50,000 Total Exchange-Traded Options Purchased (Cost $2,916,260) 2,447,000 Shares Investment Company 0.4% Oppenheimer Institutional Government Money Market Fund, Cl. E, 1.01% 4,6 (Cost $15,538,728) 15,538,728 15,538,728 Total Investments, at Value (Cost $3,093,661,056) 100.2% 3,860,269,246 Net Other Assets (Liabilities) (0.2) (9,139,479) Net Assets 100.0% $ 3,851,129,767 Footnotes to Statement of Investments 1. Security is a Master Limited Partnership. 2. All or a portion of the security position is held in segregated accounts and pledged to cover margin requirements with respect to outstanding written options. The aggregate market value of such securities is $210,034,094. See Note 6 of the accompanying Notes. 3. Non-income producing security. 4. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows: Shares Gross Gross Shares October 31, 2016 Additions Reductions October 31, 2017 Frontier Communications Corp., % Cv., Series A, Non-Vtg. a 992, , , ,000 Oppenheimer Institutional Government Money Market Fund, Cl. E 455,996, ,457,754 15,538, OPPENHEIMER EQUITY INCOME FUND

16 STATEMENT OF INVESTMENTS Continued Footnotes to Statement of Investments (Continued) Realized Gain (Loss) Change in Unrealized Gain (Loss) Value Income Frontier Communications Corp., % Cv., Series A, Non-Vtg. a $ b $ 11,083,198 $ (15,307,673) $ (49,854,755) Oppenheimer Institutional Government Money Market Fund, Cl. E 15,538,728 40,177 Total $ 15,538,728 $ 11,123,375 $ (15,307,673) $ (49,854,755) a. No longer an affiliate at period end. b. The security is no longer an affiliate; therefore, the value has been excluded from this table. 5. 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 $478,307 or 0.01% of the Fund's net assets at period end. 6. Rate shown is the 7-day yield at period end. 7. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after period end. See Note 4 of the accompanying Notes. Exchange-Traded Options Written at October 31, 2017 Description Exercise Expiration Price Date Number of Contracts (000's) Notional Amount (000's) Premiums Received Alphabet, Inc. Call USD 1, /17/17 USD (0) 1 USD 2,542 $ 64,922 $ (65,000) Apple, Inc. Call USD /17/17 USD (0) 1 USD 2,536 79,792 (104,700) AT&T, Inc. Call USD /17/17 USD (0) 1 USD 589 5,068 (2,275) B&G Foods, Inc. Put USD /17/17 USD (1) USD 3, ,770 (450,000) Bank of America Corp. Call USD /17/17 USD (0) 1 USD 1,027 24,359 (27,375) Bristol-Myers Squibb Co. Call USD /17/17 USD (2) USD 9, ,920 (12,000) CalAtlantic Group, Inc. Call USD /17/17 USD (0) 1 USD ,627 (24,500) CenturyLink, Inc. Call USD /17/17 USD (1) USD ,228 (42,500) CenturyLink, Inc. Call USD /17/17 USD (1) USD 1,120 40,585 (26,550) Cisco Systems, Inc. Call USD /17/17 USD (1) USD 1,708 16,654 (20,000) Citigroup, Inc. Call USD /17/17 USD (0) 1 USD 1,838 15,239 (13,250) First Data Corp. Call USD /17/17 USD (1) USD ,479 (4,000) First Data Corp. Call USD /17/17 USD (1) USD 1,336 46,468 (21,000) General Cable Corp. Call USD /17/17 USD (0) 1 USD 210 9,796 (11,000) General Cable Corp. Call USD /17/17 USD (1) USD 2, ,639 (91,125) General Dynamics Corp. Call USD /17/17 USD (0) 1 USD 3,248 63,634 (10,400) General Electric Co. Call USD /17/17 USD (10) USD 19, ,590 (57,000) General Electric Co. Call USD /17/17 USD (6) USD 11, ,764 (16,500) Goldman Sachs Group, Inc. (The) Call USD /17/17 USD (0) 1 USD 9,093 84,492 (51,000) HP, Inc. Call USD /17/17 USD (0) 1 USD 539 5,339 (4,750) Value 16 OPPENHEIMER EQUITY INCOME FUND

17 Exchange-Traded Options Written (Continued) Description Exercise Expiration Price Date Number of Contracts (000 s) Notional Amount (000 s) Premiums Received Intel Corp. Call USD /17/17 USD (1) USD 3,412 $ 73,467 $ (67,500) International Paper Co. Call USD /17/17 USD (1) USD 5, ,735 (73,000) Johnson & Johnson Call USD /17/17 USD (1) USD 6,971 42,328 (11,000) Johnson & Johnson Call USD /17/17 USD (1) USD 6, ,633 (77,000) JPMorgan Chase & Co. Call USD /17/17 USD (1) USD 7, ,784 (138,750) MGIC Investment Corp. Call USD /17/17 USD (5) USD 7, ,441 (315,000) Micron Technology, Inc. Call USD /17/17 USD (2) USD 8, ,747 (940,000) Micron Technology, Inc. Call USD /17/17 USD (1) USD 2, ,881 (143,350) Morgan Stanley Call USD /17/17 USD (3) USD 16, ,168 (344,250) Navient Corp. Call USD /17/17 USD (0) 1 USD 312 3,740 (8,750) NRG Energy, Inc. Put USD /17/17 USD (10) USD 25,000 1,209,557 (1,725,000) NRG Energy, Inc. Call USD /17/17 USD (0) 1 USD ,892 (7,000) NRG Energy, Inc. Put USD /17/17 USD (1) USD 2, ,955 (245,000) Oracle Corp. Put USD /17/17 USD (8) USD 38, ,672 (225,000) Pfizer, Inc. Call USD /17/17 USD (0) 1 USD 877 5,489 (500) QUALCOMM, Inc. Put USD /17/17 USD (4) USD 17, ,092 (924,000) QUALCOMM, Inc. Call USD /17/17 USD (0) 1 USD 2,025 8,812 (8,500) QUALCOMM, Inc. Call USD /17/17 USD (0) 1 USD ,495 (11,700) QUALCOMM, Inc. Call USD /17/17 USD (0) 1 USD 2, ,981 (93,600) Radian Group, Inc. Call USD /17/17 USD (6) USD 13, ,033 (269,875) Radian Group, Inc. Call USD /17/17 USD (1) USD 2,096 85,374 (112,500) Signet Jewelers Ltd. Call USD /17/17 USD (2) USD 9,836 99,813 (94,500) United Continental Holdings, Inc. Call USD /17/17 USD (1) USD 4,386 42,603 (9,750) United Technologies Corp. Call USD /17/17 USD (0) 1 USD ,817 (9,815) United Technologies Corp. Call USD /17/17 USD (0) 1 USD 1,078 45,268 (46,350) Uniti Group, Inc. Put USD /17/17 USD (3) USD 5, ,748 (72,000) Uniti Group, Inc. Put USD /17/17 USD (6) USD 10,500 1,102,263 (546,000) Uniti Group, Inc. Call USD /17/17 USD (1) USD 1, ,820 (235,000) Wal-Mart Stores, Inc. Call USD /17/17 USD (1) USD 6,548 73,715 (124,500) Wells Fargo & Co. Put USD /17/17 USD (2) USD 12, ,651 (117,000) Western Digital Corp. Call USD /17/17 USD (1) USD 7, ,611 (132,000) Total Exchange-Traded Options Written $ 9,198,950 $ (8,183,115) Value 1. Number of contracts are less than 500. See accompanying Notes to Financial Statements. 17 OPPENHEIMER EQUITY INCOME FUND

18 STATEMENT OF ASSETS AND LIABILITIES October 31, 2017 Assets Investments, at value see accompanying statement of investments: Unaffiliated companies (cost $3,078,122,328) $ 3,844,730,518 Affiliated companies (cost $15,538,728) 15,538,728 3,860,269,246 Cash 7,651,153 Receivables and other assets: Investments sold 42,419,598 Interest and dividends 5,266,619 Shares of beneficial interest sold 1,199,931 Other 317,935 Total assets 3,917,124,482 Liabilities Options written, at value (premiums received $9,198,950) 8,183,115 Payables and other liabilities: Investments purchased (including $25,018,560 purchased on a when-issued or delayed delivery basis ) 49,891,033 Shares of beneficial interest redeemed 6,493,509 Distribution and service plan fees 723,487 Trustees' compensation 373,190 Shareholder communications 20,621 Other 309,760 Total liabilities 65,994,715 Net Assets $ 3,851,129,767 Composition of Net Assets Par value of shares of beneficial interest $ 12,607 Additional paid-in capital 3,182,035,009 Accumulated net investment income 5,288,938 Accumulated net realized loss on investments (103,828,397) Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 767,621,610 Net Assets $ 3,851,129, OPPENHEIMER EQUITY INCOME FUND

19 Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $2,633,816,311 and 82,610,259 shares of beneficial interest outstanding) $31.88 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $33.82 Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $20,576,554 and 808,902 shares of beneficial interest outstanding) $25.44 Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $617,797,626 and 24,301,205 shares of beneficial interest outstanding) $25.42 Class I Shares: Net asset value, redemption price and offering price per share (based on net assets of $97,971,672 and 3,077,597 shares of beneficial interest outstanding) $31.83 Class R Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $124,065,876 and 4,068,130 shares of beneficial interest outstanding) $30.50 Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $356,901,728 and 11,205,780 shares of beneficial interest outstanding) $31.85 See accompanying Notes to Financial Statements. 19 OPPENHEIMER EQUITY INCOME FUND

20 STATEMENT OF OPERATIONS For the October 31, 2017 Investment Income Dividends: Unaffiliated companies (net of foreign withholding taxes of $1,681,553) $ 124,222,830 Affiliated companies 11,123,375 Interest 2,022,562 Total investment income 137,368,767 Expenses Management fees 22,801,043 Distribution and service plan fees: Class A 6,556,823 Class B 418,871 Class C 6,495,127 Class R 678,352 Transfer and shareholder servicing agent fees: Class A 6,042,260 Class B 92,282 Class C 1,433,065 Class I 27,020 Class R 300,907 Class Y 768,996 Shareholder communications: Class A 54,471 Class B 2,635 Class C 14,024 Class I 809 Class R 2,248 Class Y 6,222 Custodian fees and expenses 158,546 Borrowing fees 96,579 Trustees' compensation 59,076 Other 355,723 Total expenses 46,365,079 Less waivers and reimbursements of expenses (496,082) Net expenses 45,868,997 Net Investment Income 91,499, OPPENHEIMER EQUITY INCOME FUND

21 Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investment transactions in: Unaffiliated companies $ 305,056,131 Affiliated companies (15,307,673) Option contracts written 48,253,814 Net realized gain 338,002,272 Net change in unrealized appreciation/depreciation on: Investment transactions in: Unaffiliated companies 292,758,445 Affiliated companies (49,854,755) Translation of assets and liabilities denominated in foreign currencies (200) Option contracts written (395,064) Net change in unrealized appreciation/depreciation 242,508,426 Net Increase in Net Assets Resulting from Operations $ 672,010,468 See accompanying Notes to Financial Statements. 21 OPPENHEIMER EQUITY INCOME FUND

22 STATEMENTS OF CHANGES IN NET ASSETS October 31, 2017 October 31, 2016 Operations Net investment income $ 91,499,770 $ 108,878,767 Net realized gain (loss) 338,002,272 (277,323,185) Net change in unrealized appreciation/depreciation 242,508, ,307,031 Net increase (decrease) in net assets resulting from operations 672,010,468 (64,137,387) Dividends and/or Distributions to Shareholders Dividends from net investment income: Class A (62,819,701) (110,147,385) Class B (885,773) (3,225,763) Class C (14,404,284) (27,881,945) Class I (2,606,014) (5,466,467) Class R (2,965,583) (5,343,507) Class Y (8,843,459) (16,721,119) (92,524,814) (168,786,186) Distributions from net realized gain: Class A (176,534,563) Class B (6,392,738) Class C (52,677,558) Class I (7,275,438) Class R (8,925,712) Class Y (28,393,134) (280,199,143) Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A (524,598,352) (563,953,981) Class B (51,826,261) (37,012,046) Class C (126,521,758) (157,007,201) Class I (40,334,980) (13,113,201) Class R (38,036,817) (19,025,576) Class Y 8,760,713 (241,286,632) (772,557,455) (1,031,398,637) Net Assets Total decrease (193,071,801) (1,544,521,353) Beginning of period 4,044,201,568 5,588,722,921 End of period (including accumulated net investment income of $5,288,938 and $850,484, respectively) $ 3,851,129,767 $ 4,044,201,568 See accompanying Notes to Financial Statements. 22 OPPENHEIMER EQUITY INCOME FUND

23 FINANCIAL HIGHLIGHTS Class A October 31, 2017 October 31, 2016 October 30, October 31, 2014 October 31, 2013 Per Share Operating Data Net asset value, beginning of period $27.60 $29.99 $33.60 $31.35 $25.80 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 4.26 (0.62) (1.92) Total from investment operations (1.05) Dividends and/or distributions to shareholders: Dividends from net investment income (0.70) (0.96) (0.81) (0.92) (0.82) Distributions from net realized gain 0.00 (1.47) (1.75) (1.11) (0.27) Total dividends and/or distributions to shareholders (0.70) (2.43) (2.56) (2.03) (1.09) Net asset value, end of period $31.88 $27.60 $29.99 $33.60 $31.35 Total Return, at Net Asset Value % 0.46% (3.45)% 14.19% 26.57% Ratios/Supplemental Data Net assets, end of period (in thousands) $2,633,816 $2,759,383 $3,641,622 $4,121,447 $3,748,273 Average net assets (in thousands) $2,746,868 $3,045,384 $4,016,231 $4,041,525 $3,048,993 Ratios to average net assets: 4 Net investment income 2.39% 2.49% 2.73% 2.42% 2.62% Expenses excluding specific expenses listed below 1.04% 1.04% 1.01% 1.00% 1.01% Interest and fees from borrowings 0.00% % % % 0.00% Total expenses % 1.04% 1.01% 1.00% 1.01% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.03% 1.04% % % % 7 Portfolio turnover rate 46% 41% 43% 40% 31% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: October 31, % October 31, % October 30, % October 31, % October 31, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 23 OPPENHEIMER EQUITY INCOME FUND

24 FINANCIAL HIGHLIGHTS Continued Class B October 31, 2017 October 31, 2016 October 30, October 31, 2014 October 31, 2013 Per Share Operating Data Net asset value, beginning of period $22.14 $24.57 $27.99 $26.45 $21.95 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 3.41 (0.54) (1.58) Total from investment operations 3.80 (0.16) (1.05) Dividends and/or distributions to shareholders: Dividends from net investment income (0.50) (0.80) (0.62) (0.72) (0.62) Distributions from net realized gain 0.00 (1.47) (1.75) (1.11) (0.27) Total dividends and/or distributions to shareholders (0.50) (2.27) (2.37) (1.83) (0.89) Net asset value, end of period $25.44 $22.14 $24.57 $27.99 $26.45 Total Return, at Net Asset Value % (0.31)% (4.16)% 13.28% 25.35% Ratios/Supplemental Data Net assets, end of period (in thousands) $20,576 $65,316 $114,330 $158,955 $168,407 Average net assets (in thousands) $41,795 $83,112 $140,806 $166,435 $155,005 Ratios to average net assets: 4 Net investment income 1.62% 1.77% 2.02% 1.64% 1.72% Expenses excluding specific expenses listed below 1.81% 1.80% 1.76% 1.81% 1.94% Interest and fees from borrowings 0.00% % % % 0.00% Total expenses % 1.80% 1.76% 1.81% 1.94% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.80% 1.80% % % % 7 Portfolio turnover rate 46% 41% 43% 40% 31% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: October 31, % October 31, % October 30, % October 31, % October 31, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 24 OPPENHEIMER EQUITY INCOME FUND

25 Class C October 31, 2017 October 31, 2016 October 30, October 31, 2014 October 31, 2013 Per Share Operating Data Net asset value, beginning of period $22.16 $24.59 $28.03 $26.50 $21.99 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 3.40 (0.52) (1.57) Total from investment operations 3.80 (0.15) (1.06) Dividends and/or distributions to shareholders: Dividends from net investment income (0.54) (0.81) (0.63) (0.74) (0.67) Distributions from net realized gain 0.00 (1.47) (1.75) (1.11) (0.27) Total dividends and/or distributions to shareholders (0.54) (2.28) (2.38) (1.85) (0.94) Net asset value, end of period $25.42 $22.16 $24.59 $28.03 $26.50 Total Return, at Net Asset Value % (0.27)% (4.20)% 13.33% 25.62% Ratios/Supplemental Data Net assets, end of period (in thousands) $617,798 $654,197 $906,696 $1,012,404 $803,867 Average net assets (in thousands) $651,446 $732,570 $1,005,459 $932,089 $607,483 Ratios to average net assets: 4 Net investment income 1.63% 1.74% 1.96% 1.64% 1.83% Expenses excluding specific expenses listed below 1.80% 1.80% 1.76% 1.76% 1.77% Interest and fees from borrowings 0.00% % % % 0.00% Total expenses % 1.80% 1.76% 1.76% 1.77% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.79% 1.80% % % % 7 Portfolio turnover rate 46% 41% 43% 40% 31% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: October 31, % October 31, % October 30, % October 31, % October 31, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 25 OPPENHEIMER EQUITY INCOME FUND

26 FINANCIAL HIGHLIGHTS Continued Class I October 31, 2017 October 31, 2016 October 30, October 31, 2014 October 31, 2013 Per Share Operating Data Net asset value, beginning of period $27.56 $29.95 $33.57 $31.32 $25.78 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 4.24 (0.61) (1.89) Total from investment operations (0.92) Dividends and/or distributions to shareholders: Dividends from net investment income (0.82) (1.08) (0.95) (1.05) (0.94) Distributions from net realized gain 0.00 (1.47) (1.75) (1.11) (0.27) Total dividends and/or distributions to shareholders (0.82) (2.55) (2.70) (2.16) (1.21) Net asset value, end of period $31.83 $27.56 $29.95 $33.57 $31.32 Total Return, at Net Asset Value % 0.88% (3.01)% 14.66% 27.06% Ratios/Supplemental Data Net assets, end of period (in thousands) $97,972 $122,209 $145,585 $125,157 $59,332 Average net assets (in thousands) $90,018 $140,944 $145,869 $87,786 $34,913 Ratios to average net assets: 4 Net investment income 2.81% 2.89% 3.05% 2.73% 2.85% Expenses excluding specific expenses listed below 0.61% 0.61% 0.58% 0.59% 0.61% Interest and fees from borrowings 0.00% % % % 0.00% Total expenses % 0.61% 0.58% 0.59% 0.61% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.61% % % % % 7 Portfolio turnover rate 46% 41% 43% 40% 31% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: October 31, % October 31, % October 30, % October 31, % October 31, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 26 OPPENHEIMER EQUITY INCOME FUND

27 Class R October 31, 2017 October 31, 2016 October 30, October 31, 2014 October 31, 2013 Per Share Operating Data Net asset value, beginning of period $26.43 $28.83 $32.41 $30.31 $24.99 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 4.08 (0.60) (1.86) Total from investment operations 4.70 (0.03) (1.10) Dividends and/or distributions to shareholders: Dividends from net investment income (0.63) (0.90) (0.73) (0.83) (0.74) Distributions from net realized gain 0.00 (1.47) (1.75) (1.11) (0.27) Total dividends and/or distributions to shareholders (0.63) (2.37) (2.48) (1.94) (1.01) Net asset value, end of period $30.50 $26.43 $28.83 $32.41 $30.31 Total Return, at Net Asset Value % 0.25% (3.72)% 13.85% 26.11% Ratios/Supplemental Data Net assets, end of period (in thousands) $124,066 $142,064 $176,646 $205,039 $182,858 Average net assets (in thousands) $136,747 $153,770 $195,901 $199,409 $150,952 Ratios to average net assets: 4 Net investment income 2.13% 2.22% 2.47% 2.11% 2.27% Expenses excluding specific expenses listed below 1.30% 1.29% 1.26% 1.30% 1.36% Interest and fees from borrowings 0.00% % % % 0.00% Total expenses % 1.29% 1.26% 1.30% 1.36% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.29% 1.29% % % % 7 Portfolio turnover rate 46% 41% 43% 40% 31% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: October 31, % October 31, % October 30, % October 31, % October 31, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 27 OPPENHEIMER EQUITY INCOME FUND

28 FINANCIAL HIGHLIGHTS Continued Class Y October 31, 2017 October 31, 2016 October 30, October 31, 2014 October 31, 2013 Per Share Operating Data Net asset value, beginning of period $27.58 $29.96 $33.58 $31.34 $25.79 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 4.24 (0.64) (1.91) Total from investment operations (0.98) Dividends and/or distributions to shareholders: Dividends from net investment income (0.77) (1.02) (0.89) (1.01) (0.91) Distributions from net realized gain 0.00 (1.47) (1.75) (1.11) (0.27) Total dividends and/or distributions to shareholders (0.77) (2.49) (2.64) (2.12) (1.18) Net asset value, end of period $31.85 $27.58 $29.96 $33.58 $31.34 Total Return, at Net Asset Value % 0.74% (3.23)% 14.46% 26.97% Ratios/Supplemental Data Net assets, end of period (in thousands) $356,902 $301,033 $603,844 $697,099 $361,819 Average net assets (in thousands) $349,825 $405,774 $682,611 $487,585 $258,619 Ratios to average net assets: 4 Net investment income 2.63% 2.81% 2.93% 2.60% 2.89% Expenses excluding specific expenses listed below 0.80% 0.80% 0.76% 0.75% 0.71% Interest and fees from borrowings 0.00% % % % 0.00% Total expenses % 0.80% 0.76% 0.75% 0.71% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.79% 0.80% % % % 7 Portfolio turnover rate 46% 41% 43% 40% 31% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: October 31, % October 31, % October 30, % October 31, % October 31, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 28 OPPENHEIMER EQUITY INCOME FUND