[FRONT COVER]
Semiannual Report February 28, 1998
O P P E N H E I M E R
Real Asset
Fund
[Photo: Wheat stalks]
[Logo: Oppenheimer Funds(SM)]
THE RIGHT WAY TO INVEST
<PAGE>
| Report highlights
|-------------------------------------------------------------------------------
Contents
<TABLE>
<S> <C>
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's Managers
10 Statement of Investments
12 Statement of Assets and
Liabilities
14 Statement of Operations
15 Statements of Changes in Net Assets
16 Financial Highlights
18 Notes to Financial Statements
27 Officers and Trustees
28 Information and
Services
</TABLE>
[bullet] Most commodities markets experienced a difficult six-month period, with
the most significant declines occurring in November and December, 1997. The
Asian crisis caused a sharp drop in demand for industrial and precious metals;
crude oil prices dropped as a result of an OPEC agreement to increase
production; unusually mild winter weather constrained seasonal demand for
heating oil and natural gas; and an increase in Iraqi oil sales was permitted
for humanitarian reasons.
[bullet] The Fund performed as it was designed to perform. In other words,
commodities historically have tended to "zig" when stocks and bonds "zag."
However, we believe Oppenheimer Real Asset Fund will help provide investors the
risk-management benefits of overall portfolio diversification when financial
assets falter.
Cumulative Total Returns
For the 6-Month Period Ended 2/28/98
<TABLE>
<CAPTION>
Class A
<S> <C>
Without Sales Chg.(1) With Sales Chg.(2)
(20.24)% (24.83)%
Class B
Without Sales Chg.(1) With Sales Chg.(2)
(20.58)% (24.48)%
Class C
Without Sales Chg.(1) With Sales Chg.(2)
(20.65)% (21.43)%
Class Y
Without Sales Chg.(1) With Sales Chg.(2)
(20.26)% (20.26)%
</TABLE>
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. 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 the original cost.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized.
2. Class A shares returns include the maximum 5.75% sales charge. Class B
returns include the applicable contingent deferred sales charge of 5%. Class C
returns include the contingent deferred sales charge of 1%. An explanation of
the different performance calculations is in the Fund's prospectus. All classes
have the same portfolio but different expenses. Class B and C shares are
subject to an annual 0.25% service fee and 0.75% asset-based sales charge, and
Class A shares are subject to an annual 0.25% service fee. Class Y shares are
available only to certain institutional investors.
2 Oppenheimer Real Asset Fund
<PAGE>
| Dear shareholder,
|-------------------------------------------------------------------------------
<TABLE>
<S> <C>
[Photo: These have been very positive times for many American
James C. Swain] investors. The U.S. economy has continued to grow at a
James C. Swain moderate pace, unemployment has fallen to its lowest level
Chairman in 30 years and inflation has also fallen to a record low.
Oppenheimer In fact, long-term interest rates have fallen to their
Real Asset Fund lowest level since the government began issuing 30-year
Treasury bonds in 1977.
What benefits does this provide to the average American?
[Photo: First, when unemployment levels are low, many individuals
Bridget A. tend to feel a greater sense of job security and can command
Macaskill] higher wages because there are fewer unemployed workers
Bridget A. vying for their jobs. Second, many homeowners are opting to
Macaskill refinance their existing home mortgage loans and take
President advantage of lower financing rates. And third, because wages
Oppenheimer are increasing faster than the rate of inflation, a paycheck
Real Asset Fund may stretch farther and investors, as consumers, are able to
enjoy a higher level of disposable income. This extra income
can be put to use in many ways, including allocating more
money to investment opportunities.
Some industry analysts have tempered such positive news by
suggesting that if the rate of inflation falls any lower, it
might actually trigger a period of deflation, where we see
the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it
isn't: When prices fall too low, it erodes the value of
those goods to the producer. That is, when economic
conditions force a decrease in the price of goods, companies
have to sell more of those items in order to make the same
amount of profit, which translates into greater difficulties
for corporations seeking to improve their bottom lines.
At OppenheimerFunds, we do not believe we will see a period
of deflation in the United States. The fundamental factors
that have driven the U.S. market still appear to be in
place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no
inflation and low interest rates. However, because of
economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks
in 1998 and a year in which double-digit returns from the
equity markets are unlikely. It's also possible that we may
see investors favor the fixed, more secure interest payments
offered from the bond markets.
In closing, we'd like to reassure you that as professional
money managers, we continue to keep a watchful eye on these
situations and are closely monitoring your fund's
investments. In times like these, your financial advisor can
be of invaluable assistance to you in helping review your
financial plan and guide your investments accordingly.
Thank you for your confidence in OppenheimerFunds, The Right
Way to Invest. We look forward to helping you reach your
investment goals in the future.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
/s/ James C. Swain /s/ Bridget A. Macaskill
------------------ ------------------------
James C. Swain Bridget A. Macaskill
March 20, 1998
</TABLE>
3 Oppenheimer Real Asset Fund
<PAGE>
| Performance update
|-------------------------------------------------------------------------------
Avg Annual Total Returns
For the 1-Year Period Ended
3/31/98(1)
Class A
(23.17)%
Class B
(23.22)%
Class C
(20.10)%
Class Y
(18.50)%
Oppenheimer Real Asset Fund experienced declines in its share prices over the
past six months, which was consistent with the expected performance of
commodity-linked investments in periods of strong stock market performance. As
of February 28, 1998, the Fund's Class A shares' cumulative total return,
without sales charges, was(20.24)%.(2) This is comparable to the (20.70)% total
return of its performance benchmark, the Goldman Sachs Commodities Index
(GSCI).(3)
It is important to note that Oppenheimer Real Asset Fund has a limited
operating history, was first offered 3/31/97, and invests a substantial portion
of its assets in derivative instruments that entail potentially higher
volatility and risk of loss than traditional equity or debt securities. The
Fund is not intended as a complete investment program and is intended for
investors with long-term investment goals who are willing to accept this
greater risk.
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current initial sales charge of 5.75%. Class
A, B, C and Y shares were first publicly offered on 3/31/97. Class B returns
include the applicable contingent deferred sales charge of 5%. Class C returns
include the contingent deferred sales charge of 1%. Class Y shares are not
available for sale to individual shareholders. An explanation of the different
performance calculations is in the Fund's prospectus. Class B and C shares are
subject to an annual 0.25% service fee and 0.75% asset-based sales charge, and
Class A shares are subject to an annual 0.25% service fee.
4 Oppenheimer Real Asset Fund
<PAGE>
| Portfolio review
|-------------------------------------------------------------------------------
Oppenheimer Real Asset Fund is for investors who are looking for diversity and
long-term growth for their investment portfolio.
What We Look For
[bullet] Securities that mimic the performance of commodities.
[bullet] Short-term U.S. government and agency securities to provide liquidity.
[bullet] Current supply and demand imbalances which could affect the value of
certain investments.
- ----------------------------- [PIE CHART] ------------------------------------
Portfolio Composition(4)
<TABLE>
<CAPTION>
<S> <C>
U.S. Treasuries, Agencies & Mortgages 52.9%
Commodity-Linked Notes 45.9
U.S. Corporate Securities 1.0
Cash Equivalents 0.2
</TABLE>
- --------------------------------------------------------------------------------
Sector Weights
(Percentage of commodity-linked notes)4
<TABLE>
<S> <C>
Petroleum 41.7%
..............................
Agriculture 28.7
..............................
Livestock 13.3
..............................
Industrial Metals 8.1
..............................
Natural Gas 5.3
..............................
Precious Metals 2.9
..............................
</TABLE>
2. For the period commencing 9/1/97. Includes changes in net asset value per
share without deducting any sales charges. Such performance is not annualized
and would have been lower if sales charges were taken into account.
3. The Goldman Sachs Commodity Index (GSCI) is a registered trademark of
Goldman, Sachs & Co.
4. Portfolio data is as of 2/28/98, and is subject to change. Portfolio data is
dollar-weighted based on market value of investments and is subject to change.
5 Oppenheimer Real Asset Fund
<PAGE>
| An interview with your Fund's managers
|-------------------------------------------------------------------------------
How has the Fund performed during the six-month period ended February 28, 1998?
Oppenheimer Real Asset Fund's cumulative total return, without sales charges,
for the six-month period ended February 28, 1998 was (20.24)%.(1) It is
important to note that, as it was designed to do, the Fund's performance
virtually matched that of its unmanaged performance benchmark, the Goldman Sachs
Commodities Index (GSCI). The GSCI had a (20.70)% total return over the same
period.(2)
- -------------------------------|
"While we obviously do not |
welcome lower commodities |
prices, we are encouraged that |
the Fund performed as it was |
designed to--closely matching |
the performance of its |
unmanaged benchmark." |
How did the commodity markets perform over the last six months?
Most commodities markets had a difficult time, especially in November and
December 1997. Several events led the market lower. First, the Asian financial
crisis caused a sharp drop in demand for industrial and precious metals. Second,
when the Middle Eastern oil-producing nations in OPEC agreed to increase
production by 10% in October, crude oil prices declined. Third, unusually mild
weather in much of the Northern Hemisphere caused by the El Nino weather pattern
constrained seasonal demand for heating oil and natural gas. And fourth, oil
supplies also increased unexpectedly due to a large increase in Iraqi oil sales
for humanitarian purposes. These events and others combined to keep many
commodities' prices at relatively low levels, while some declined sharply. Other
commodities, however, experienced price increases during the past six months.
For example, the price of silver rose more than 30% between October 1997 and
February 1998.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. The Goldman Sachs Commodity Index (GSCI) is a registered trademark of
Goldman, Sachs & Co. The index cannot be purchased directly by investors.
6 Oppenheimer Real Asset Fund
<PAGE>
[Photo: Mark Anson and Russell Read]
Portfolio Management Team (l to r)
Mark Anson and Russell Read
(Portfolio Managers)
Why did commodity prices fall when stocks and bonds rallied?
Real assets historically have tended to move in the opposite direction of
financial assets. In other words, commodities usually have "zigged" when stocks
and bonds "zagged" because of the direct impact that commodity prices can exert
on both corporate profits and inflation.
The stock and bond markets' stellar performance over the past six months is
in part attributable to lower raw materials and energy prices and to
persistently low inflation, which allows companies to borrow at favorable rates
and grow their earnings. However, low inflation can also reduce the ability of
producers to raise prices. In some cases during the past six months, producers
even had to reduce prices to compete effectively.
This inverse relationship makes real assets an excellent tool for overall
portfolio diversity. While returns for the Fund were lackluster during the most
recent six-month reporting period, commodities' weakness proved a major
propellant of financial market strength. A potential rebound in commodity values
later this year, however, could cause renewed vulnerability in the financial
markets.
What about inflation--is it dead?
To paraphrase Mark Twain, we believe that reports of inflation's demise have
been greatly exaggerated. While inflation has not played a significant role in
the U.S. economy for several years, 1997 was particularly significant because
of renewed volatility in the inflation rate. Commodities have proved to be the
principal swing factor in inflation, so that rebounding commodities
7 Oppenheimer Real Asset Fund
<PAGE>
| An interview with your Fund's managers
|-------------------------------------------------------------------------------
prices could be expected to exert significant upward pressure on inflation.
How was the Fund managed during this volatile six-month period?
We actively manage Oppenheimer Real Asset Fund against the GSCI, its benchmark.
That's because the GSCI represents a good measure of the broad commodity
markets' performance. The Fund is attempting to beat the index's total return
while offering comparable risk exposure. Over the past six months, the Fund had
less exposure to natural gas than the GSCI. In September, it appeared that
natural gas prices had risen to unsustainable levels, especially in light of
concerns over the El Nino weather pattern in the South Pacific. As a result, we
modestly reduced our natural gas holdings before prices declined sharply.
- ---------------------------------|
"We modestly reduced the Fund's |
exposure to natural gas and |
gold, shifting assets to silver, |
as well as beef livestock." |
The Fund also maintained a smaller exposure to gold than the GSCI.
Central banks throughout the world have been selling gold reserves, reducing
their traditional reliance on the precious metal as a "currency of last
resort." We chose instead to increase our exposure to silver as well as beef
livestock, both of which we expect to exhibit strength over the next business
cycle.
Finally, we actively managed the Fund over the past six months to take
advantage of new federal income tax laws. The new law established additional
tax-advantaged capital gains rates, provided investors hold their investment
for 18 months. Accordingly, we restructured our portfolio to include 18-month
notes, rather than one-year notes, so that the lion's share of any capital
gains distributions the Fund may make can be enjoyed as 18-month gains. This
change will enable shareholders to use the more favorable long-term capital
gains tax rate.(3) In contrast, futures contracts,
3. There can be no assurance that the Fund will make any distributions of
long-term capital gains.
8 Oppenheimer Real Asset Fund
<PAGE>
the traditional vehicle for commodities investing, are taxed at a higher rate
(they are treated 60% long-term, 45% short-term gains).
What is your outlook for the commodities markets?
Despite the weakness of the past several months, we see reasons for optimism.
First, inventory levels for most commodities are relatively low, implying that
demand may soon resume even if consumption remains flat. Low inventories also
make the market more susceptible to surprises, which can cause commodities
prices to rise suddenly. A well-known example of this phenomenon was the oil
shock of the late 1970s, when a sudden drop in supply caused oil prices to
skyrocket.
- ---------------------------------|
"If inflation pressures |
re-emerge, we expect financial |
assets to suffer and commodities |
to benefit." |
Second, the values of several commodities have recently declined to the
point where their market prices equal their production costs. If producers were
to shut down their operations because of low prices, demand would soon exceed
supply and prices would rise. In our view, several commodities--such as gold
and copper--are approaching this point. We believe that their prices have more
room to rise than to fall over the foreseeable future.
If inflation and commodity prices are low, why invest in real assets?
We encourage you to revisit the reason you made your Real Asset Fund investment
in the first place: overall portfolio diversity. The Fund is not intended as a
stand-alone investment for speculation in the commodities markets. Rather, it
is designed to complement a portfolio of stocks and bonds by seeking protection
against a resurgence of inflation and its potentially negative effects on
financial assets. If you are seeking the long-term benefits of diversity for
your total investment portfolio, we believe that Oppenheimer Real Asset Fund
remains a smart place to be.
9 Oppenheimer Real Asset Fund
<PAGE>
Statement of Investments February 28, 1998 (Unaudited)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
=======================================================================================================
<S> <C> <C>
Mortgage-Backed Obligations--46.0%
- -------------------------------------------------------------------------------------------------------
Government Agency--45.0%
- -------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg. Participation
Certificates, Series 1451, Cl. G, 7%, 9/15/06 $8,000,000 $ 8,145,044
Interest-Only Stripped Mtg.-Backed Security, Series 180, 5.461%,
10/1/26(1) 1,512,831 378,444
- -------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 6/30/99 6,500,000 6,526,390
6.03%, 7/7/99(2) 8,540,000 8,570,658
6.07%, 7/1/99(2) 1,220,000 1,226,100
6.29%, 5/7/99 3,480,000 3,503,907
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates, Trust 1992-188, Cl. PG, 6.65%,
1/25/17 7,711,350 7,771,576
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates,
Trust 1996-64, Cl. PB, 6.50%, 1/18/19 3,000,000 3,022,747
Interest-Only Stripped Mtg.-Backed Security,
Trust 1993-23, Cl. PN, 8.472%, 4/25/22(1)(2) 3,624,240 1,417,984
Interest-Only Stripped Mtg.-Backed Security,
Trust 1997-3, 8.363%, 3/18/26(1)(2) 3,424,713 1,002,799
Principal-Only Stripped Mtg.-Backed Security,
Trust 289-C1, 3.129%, 11/1/27(3) 1,475,640 1,083,673
- --------------------------------------------------------------------------------------------------------
Government National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security, Series 1997-5, Cl. PJ, 20.201%, 5/20/22(1) 2,442,142 392,269
-----------
43,041,591
- --------------------------------------------------------------------------------------------------------
Private--1.0%
- --------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates, Series 1994-C2, Cl. G, 8%, 4/25/25 931,270 935,613
-----------
Total Mortgage-Backed Obligations (Cost $44,398,695) 43,977,204
========================================================================================================
U.S. Government Obligations--7.4%
- --------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.82%, 6/16/98(4) (Cost $7,102,269) 7,100,000 7,104,402
========================================================================================================
Structured Notes--45.5%
- --------------------------------------------------------------------------------------------------------
AIG International, Inc., Goldman Sachs Commodity Excess Return
Index Linked Nts., 5.629%, 7/7/99(5) 12,500,000 10,060,578
- --------------------------------------------------------------------------------------------------------
Bank of America NT & SA (London Branch), Goldman Sachs
Commodity Index Excess Return Index Linked Nts., 5.60%, 8/31/99(5) 8,000,000 7,183,760
- --------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale (New York Branch), Goldman
Sachs Excess Return Commodity Index Linked Nts., 5.45%,
9/3/99(5) 2,000,000 1,975,020
- --------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale, Goldman Sachs Excess
Return Commodity Index Linked Nts., 5.325%, 7/13/99(5)(6) 3,700,000 3,278,940
</TABLE>
10 Oppenheimer Real Asset Fund
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Business Development Bank of Canada, Goldman Sachs Excess
Return Commodity Index Linked Nts., 5.54%, 6/25/99(5) $ 3,000,000 $ 1,939,200
- --------------------------------------------------------------------------------------------------------
Cargill Financial Services Corp., Contingent Promissory Nts., 5.80%,
6/10/99(5) 13,750,000 7,906,499
- --------------------------------------------------------------------------------------------------------
Daiwa Finance Corp. (New York), Daiwa Physical Commodity
Index Linked Nts., 4.625%, 3/24/98(6)(7) 6,950,000 5,175,665
- --------------------------------------------------------------------------------------------------------
Goldman, Sachs & Co., Goldman Sachs Excess Return Index
Linked Nts., 5.65%, 3/26/98(5) 4,500,000 5,939,685
-----------
Total Structured Instruments (Cost $54,400,000) 43,459,347
========================================================================================================
Repurchase Agreements--0.2%
- --------------------------------------------------------------------------------------------------------
Repurchase agreement with Salomon Smith Barney Holdings, Inc.,
5.64%, dated 2/27/98, to be repurchased at $200,094 on 3/2/98,
collateralized by U.S. Treasury Bonds, 9.875%-10.625%, 8/15/15-
11/15/15, with a value of $152,670 and U.S. Treasury Nts.,
4.75%-6%, 10/31/98-8/15/00, with a value of $51,751
(Cost $200,000) 200,000 200,000
- --------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $106,100,964) 99.1% 94,740,953
- --------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.9 841,727
------------ -----------
Net Assets 100.0% $95,582,680
============ ===========
</TABLE>
1. 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.
2. Securities with an aggregate market value of $6,181,216 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
3. 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.
4. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
5. Security is linked to a Goldman Sachs Commodity Index. The index is composed
of the futures prices of twenty-two different commodities in five main
commodity groups (energy, agriculture, livestock, industrial metals and
precious metals) in rough proportion to the value of their production in the
world economy.
6. Represents the current interest rate for a variable rate security.
7. Security is linked to the Daiwa Physical Commodity Excess Return Index which
is calculated in the same manner as the Daiwa Physical Commodity Index (DPCI),
but with a Treasury bill rate of zero. The DPCI is a passively managed index
showing the total return from holding unleveraged long positions in futures
contracts of physical commodities. Nineteen commodity markets representing five
major commodity industry groups are included in the calculation of the DPCI.
These five major commodity groups are: grains, metals, energy, livestock and
food/fiber.
See accompanying Notes to Financial Statements.
11 Oppenheimer Real Asset Fund
<PAGE>
Statement of Assets and Liabilities February 28, 1998 (Unaudited)
<TABLE>
<S> <C>
=======================================================================================
Assets
Investments, at value (cost $106,100,964)--see accompanying statement $94,740,953
- ---------------------------------------------------------------------------------------
Cash 118,068
- ---------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 1,213,364
Interest and principal paydowns 875,321
Investments sold 738,291
- ---------------------------------------------------------------------------------------
Deferred organization costs--Note 1 31,758
- ---------------------------------------------------------------------------------------
Other 5,135
------------
Total assets 97,722,890
=======================================================================================
Liabilities
Payables and other liabilities:
Investments purchased 2,000,000
Shares of beneficial interest redeemed 70,620
Daily variation on futures contracts--Note 5 56,006
Other 13,584
------------
Total liabilities 2,140,210
=======================================================================================
Net Assets $95,582,680
============
=======================================================================================
Composition of Net Assets
Paid-in capital $117,035,944
- ---------------------------------------------------------------------------------------
Undistributed net investment income 697,301
- ---------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (11,233,147)
- ---------------------------------------------------------------------------------------
Net unrealized depreciation on investments--Notes 3 and 5 (10,917,418)
------------
Net assets $95,582,680
============
</TABLE>
12 Oppenheimer Real Asset Fund
<PAGE>
<TABLE>
<S> <C>
==========================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$59,372,499 and 7,378,534 shares of beneficial interest outstanding) $ 8.05
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $ 8.54
- ------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $23,681,325
and 2,956,482 shares of beneficial interest outstanding) $ 8.01
- ------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $12,528,052
and 1,565,205 shares of beneficial interest outstanding) $ 8.00
- ------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $804 and 100 shares of beneficial interest outstanding) $ 8.04
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Real Asset Fund
<PAGE>
Statement of Operations For the Six Months Ended February 28, 1998 (Unaudited)
<TABLE>
<S> <C>
=====================================================================================
Investment Income
Interest $ 2,715,660
=====================================================================================
Expenses
Management fees--Note 4 426,887
- -------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 59,828
Class B 112,893
Class C 63,295
- -------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 69,344
- -------------------------------------------------------------------------------------
Shareholder reports 15,307
- -------------------------------------------------------------------------------------
Registration and filing fees 13,867
- -------------------------------------------------------------------------------------
Legal and auditing fees 11,056
- -------------------------------------------------------------------------------------
Trustees' fees and expenses 869
- -------------------------------------------------------------------------------------
Other 1,181
------------
Total expenses 774,527
=====================================================================================
Net Investment Income 1,941,133
=====================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (12,121,489)
Closing of futures contracts--Note 5 231,631
Closing and expiration of options written--Note 6 931,280
------------
Net realized loss (10,958,578)
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (12,532,769)
------------
Net realized and unrealized loss (23,491,347)
=====================================================================================
Net Decrease in Net Assets Resulting from Operations $(21,550,214)
============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Real Asset Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Period Ended
February 28, 1998 August 31,
(Unaudited) 1997(1)
=========================================================================================
<S> <C> <C>
Operations
Net investment income $ 1,941,133 $ 514,287
- -----------------------------------------------------------------------------------------
Net realized loss (10,958,578) (273,092)
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (12,532,769) 1,615,351
------------- -----------
Net increase (decrease) in net assets resulting
from operations (21,550,214) 1,856,546
=========================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (1,102,914) --
Class B (441,577) --
Class C (236,846) --
Class Y (21) --
=========================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 35,527,171 36,531,028
Class B 13,381,233 16,023,891
Class C 5,230,285 10,363,098
Class Y -- 1,000
=========================================================================================
Net Assets
Total increase 30,807,117 64,775,563
- -----------------------------------------------------------------------------------------
Beginning of period 64,775,563 --
------------- -----------
End of period (including undistributed net investment
income of $697,301 and $537,526, respectively) $ 95,582,680 $64,775,563
============= ===========
</TABLE>
1. For the period from March 31, 1997 (commencement of operations) to August
31, 1997.
See accompanying Notes to Financial Statements.
15 Oppenheimer Real Asset Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
----------------------------
Six Months
Ended Period
February 28, Ended
1998 August 31,
(Unaudited) 1997(1)
===================================================================================
<S> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $10.31 $10.00
- -----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .17 .09
Net realized and unrealized gain (loss) (2.23) .22
------ --------
Total income (loss) from investment operations (2.06) .31
- -----------------------------------------------------------------------------------
Dividends from net investment income (.20) --
------ --------
Total dividends and distributions to shareholders (.20) --
- -----------------------------------------------------------------------------------
Net asset value, end of period $ 8.05 $10.31
====== ========
===================================================================================
Total Return, at Net Asset Value(2) (20.24)% 3.10%
===================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $59,372 $37,687
- -----------------------------------------------------------------------------------
Average net assets (in thousands) $50,677 $18,361
- -----------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.86% 4.27%
Expenses 1.50% 1.74%
- -----------------------------------------------------------------------------------
Portfolio turnover rate(4) 54.4% 38.9%
</TABLE>
1. For the period from March 31, 1997 (commencement of operations) to August 31,
1997.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or commencement of operations), 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 of less than one full year.
16 Oppenheimer Real Asset Fund
<PAGE>
<TABLE>
<CAPTION>
Class B Class C Class Y
- --------------------------------- --------------------------------- ----------------------------
Six Months Six Months Six Months
Ended Period Ended Period Ended Period
February 28, Ended February 28, Ended February 28, Ended
1998 August 31, 1998 August 31, 1998 August 31,
(Unaudited) 1997(1) (Unaudited) 1997(1) (Unaudited) 1997(1)
====================================================================================================
<S> <C> <C> <C> <C> <C>
$10.27 $10.00 $10.26 $10.00 $10.31 $10.00
- ----------------------------------------------------------------------------------------------------
.14 .07 .15 .08 .24 .20
(2.23) .20 (2.25) .18 (2.30) .11
------- ------ ------- ------ ------ -------
(2.09) .27 (2.10) .26 (2.06) .31
- ----------------------------------------------------------------------------------------------------
(.17) -- (.16) -- (.21) --
------- ------ ------- ------ ------ -------
(.17) -- (.16) -- (.21) --
- ----------------------------------------------------------------------------------------------------
$8.01 $10.27 $8.00 $10.26 $8.04 $10.31
======= ====== ======= ====== ====== =======
====================================================================================================
(20.58)% 2.70% (20.65)% 2.60% (20.26)% 3.10%
====================================================================================================
$23,681 $16,471 $12,528 $10,616 $1 $1
- ----------------------------------------------------------------------------------------------------
$22,806 $7,388 $12,775 $5,599 $1 $1
- ----------------------------------------------------------------------------------------------------
4.09% 3.35% 4.07% 3.34% 5.01% 4.75%
2.26% 2.56% 2.26% 2.56% 1.30% 1.57%
- ----------------------------------------------------------------------------------------------------
54.4% 38.9% 54.4% 38.9% 54.4% 38.9%
</TABLE>
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended February 28, 1998 were $93,668,648 and $32,468,839,
respectively.
See accompanying Notes to Financial Statements.
17 Oppenheimer Real Asset Fund
<PAGE>
Notes to Financial Statements (Unaudited)
================================================================================
1. Significant Accounting Policies
Oppenheimer Real Asset Fund (the Fund) is a non-diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended. Oppenheimer Real Asset Fund is a mutual fund that seeks to
provide total return as its investment objective. The Fund's investment advisor
is OppenheimerFunds, Inc. (the Advisor). The Sub-Advisor is Oppenheimer Real
Asset Management, Inc. (the Manager), a wholly owned subsidiary of the Advisor.
The Fund offers Class A, Class B, Class C and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B and Class C shares may be
subject to a contingent deferred sales charge. All classes of shares have
identical rights to earnings, assets and voting privileges, except that each
class has its own distribution and/or service plan, expenses directly
attributable to that class and exclusive voting rights with respect to matters
affecting that class. Classes A, B and C have separate distribution and/or
service plans. No such plan has been adopted for Class Y shares. Class B shares
will automatically convert to Class A shares six years after the date of
purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
- --------------------------------------------------------------------------------
Structured Notes. The Fund invests in commodity-linked structured notes whereby
the market value and redemption price are linked to commodity indices. The
structured notes are leveraged, which increases the Fund's exposure to
commodities and increases the notes' volatility relative to the face value of
the security. At February 28, 1998, the Fund owned such securities with a face
amount of $54,400,000, which generated exposure to commodities of $116,076,427.
Fluctuations in value of the security related to the commodity exposure are
recorded as unrealized gains and losses in the accompanying financial
statements. During the six months ended February 28, 1998, the market value of
these securities comprised an average of 42% of the Fund's net assets, and
resulted in realized and unrealized losses of $23,311,597. The Fund also hedges
a portion of the commodity exposure generated by these securities, as discussed
in Note 5.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is
reliable and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith.
18 Oppenheimer Real Asset Fund
<PAGE>
================================================================================
Short-term "money market type" debt securities having a remaining maturity of
60 days or less are valued at cost (or last determined market value) adjusted
for amortization to maturity of any premium or discount. Forward foreign
currency exchange contracts are valued based on the closing prices of the
forward currency contract rates in the London foreign exchange markets on a
daily basis as provided by a reliable bank or dealer. Options are valued based
upon the last sale price on the principal exchange on which the option is
traded or, in the absence of any transactions that day, the value is based upon
the last sale price on the prior trading date if it is within the spread
between the closing bid and asked prices. If the last sale price is outside the
spread, the closing bid is used.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral declines,
or if the seller enters an insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At August 31, 1997, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $187,000, which expires in 2005.
- --------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends separately
for Class A, Class B, Class C and Class Y shares from net investment income
annually. Distributions from net realized gains on investments, if any, will be
declared at least once each year.
19 Oppenheimer Real Asset Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
1. Significant Accounting Policies (continued)
Organization Costs. The Advisor advanced $37,476 for organization and start-up
costs of the Fund. Such expenses are being amortized over a five-year period
from the date operations commenced. In the event that all or part of the
Advisor's initial investment in shares of the Fund is withdrawn during the
amortization period, by any holder thereof, the redemption proceeds will be
reduced by the proportionate amount of the unamortized organization costs
represented by the ratio that the number of shares redeemed bears to the number
of initial shares outstanding at the time of such redemption.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes primarily because of paydown gains and losses. The character of
distributions made during the year from net investment income or net realized
gains may differ from its ultimate characterization for federal income tax
purposes. Also, due to timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the fiscal year in which the
income or realized gain was recorded by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments
are purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and options written and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with
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.
20 Oppenheimer Real Asset Fund
<PAGE>
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended Feb. 28, 1998 Period Ended August 31, 1997(1)
--------------------------------- ---------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 6,125,625 $ 58,907,901 4,102,350 $40,994,666
Dividends reinvested 111,164 1,020,487 -- --
Redeemed (2,513,665) (24,401,217) (446,940) (4,463,638)
---------- ------------- --------- ------------
Net increase 3,723,124 $ 35,527,171 3,655,410 $36,531,028
========== ============= ========= ============
- --------------------------------------------------------------------------------------
Class B:
Sold 1,597,829 $ 15,633,357 1,629,263 $16,280,408
Dividends reinvested 42,404 387,992 -- --
Redeemed (287,549) (2,640,116) (25,465) (256,517)
---------- ------------- --------- ------------
Net increase 1,352,684 $ 13,381,233 1,603,798 $16,023,891
========== ============= ========= ============
- --------------------------------------------------------------------------------------
Class C:
Sold 757,238 $ 7,298,359 1,071,035 $10,719,401
Dividends reinvested 24,009 219,682 -- --
Redeemed (251,034) (2,287,756) (36,043) (356,303)
---------- ------------- --------- ------------
Net increase 530,213 $ 5,230,285 1,034,992 $10,363,098
========== ============= ========= ============
- --------------------------------------------------------------------------------------
Class Y:
Sold -- $ -- 100 $ 1,000
---------- ------------- --------- ------------
Net increase -- $ -- 100 $ 1,000
========== ============= ========= ============
</TABLE>
1. For the period from March 31, 1997 (commencement of operations) to August
31, 1997.
================================================================================
3. Unrealized Gains and Losses on Investments
At February 28, 1998, net unrealized depreciation on investments and options
written of $11,360,011 was composed of gross appreciation of $1,559,290, and
gross depreciation of $12,919,301.
21 Oppenheimer Real Asset Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Advisor were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 1.0% of the first
$200 million of average net assets, 0.90% of the next $200 million, 0.85% of
the next $200 million, 0.80% of the next $200 million, and 0.75% of net assets
in excess of $800 million. Under the Sub-Advisory Agreement, the Manager
receives from the Advisor the following portions of the annual fees: 0.50% of
the first $200 million of average net assets, 0.45% of the next $200 million,
0.425% of the next $200 million, 0.40% of the next $200 million, and 0.375% of
the net assets in excess of $800 million.
For the six months ended February 28, 1998, commissions (sales
charges paid by investors) on sales of Class A shares totaled $498,225, of
which $131,073 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a
subsidiary of the Advisor, as general distributor, and by an affiliated
broker/dealer. Sales charges advanced to broker/dealers by OFDI on sales of the
Fund's Class B and Class C shares totaled $564,940 and $63,100, respectively,
of which $16,998 was paid to an affiliated broker/dealer for Class B shares.
During the six months ended February 28, 1998, OFDI received contingent
deferred sales charges of $31,219 and $5,094, respectively, upon redemption of
Class B and C shares as reimbursement for sales commissions advanced by OFDI at
the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Advisor, is
the transfer and shareholder servicing agent for the Fund and for other
registered investment companies. OFS's total costs of providing such services
are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of shareholder accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not exceed
0.25% of the average annual net assets of Class A shares of the Fund. OFDI uses
the service fee to reimburse brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintenance of
accounts of their customers that hold Class A shares. During the six months
ended February 28, 1998, OFDI paid $1,636 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
22 Oppenheimer Real Asset Fund
<PAGE>
================================================================================
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its costs in distributing Class B and Class C
shares and servicing accounts. Under the Plans, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B and Class C shares for
its services rendered in distributing Class B and Class C shares. OFDI also
receives a service fee of 0.25% per year to compensate dealers for providing
personal services for accounts that hold Class B and C shares. Each fee is
computed on the average annual net assets of Class B or Class C shares,
determined as of the close of each regular business day. During the six months
ended February 28, 1998, OFDI retained $110,854 and $62,222, respectively, as
compensation for Class B and Class C sales commissions and service fee
advances, as well as financing costs. If either Plan is terminated by the Fund,
the Board of Directors may allow the Fund to continue payments of the
asset-based sales charge to OFDI for distributing shares before the Plan was
terminated. As of February 28, 1998, OFDI had incurred excess distribution and
servicing costs of $1,430,188 for Class B and $71,090 for Class C.
- --------------------------------------------------------------------------------
5. Futures Contracts
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may buy and
sell futures contracts, primarily to hedge the various commodities exposures
inherent in its holdings of structured notes that are linked to commodities
indices. The Fund may also buy or write put or call options on these futures
contracts.
The Fund generally sells futures contracts to hedge against
increases in interest rates or decreases in commodity prices and the resulting
negative effect on the value of fixed rate portfolio securities. The Fund may
also purchase futures contracts without owning the underlying fixed-income
security as an efficient or cost effective means to gain exposure to changes in
interest rates or commodity prices. The Fund will then either purchase the
underlying fixed-income security or close out the futures contract.
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 expires.
23 Oppenheimer Real Asset Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
5. Futures Contracts (continued)
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 or payable for the
daily mark to market for variation margin.
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.
At February 28, 1998, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Valuation as of Unrealized
Expiration Number of February 28, Appreciation
Date Contracts 1998 (Depreciation)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase
- ----------------------
Energy
Crude Oil 5/98 350 $5,652,500 $ (513,050)
Heating Oil 6/98 10 187,782 (19,908)
Livestock
Live Cattle 8/98 30 811,500 (29,800)
Precious Metals
Gold 12/98 10 307,700 10,701
----------
(552,057)
----------
Contracts to Sell
- ----------------------
Energy
Crude Oil 4/98 400 6,308,000 1,136,250
Natural Gas 4/98 115 2,689,850 (239,600)
Precious Metals
Gold 6/98 35 1,056,650 98,000
----------
994,650
----------
$ 442,593
==========
</TABLE>
24 Oppenheimer Real Asset Fund
<PAGE>
================================================================================
6. 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 securities at a fixed price, upon exercise of
the option.
Options are valued daily based upon the last sale price on the
principal exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted
in the Statement of Investments where applicable. Shares subject to call,
expiration date, exercise price, premium received and market value are detailed
in a footnote to the Statement of Investments. Options written are reported as
a liability in the Statement of Assets and Liabilities. 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 February 28, 1998 was as
follows:
<TABLE>
<CAPTION>
Call Options
---------------------------
Number of Amount of
Options Premiums
- ------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at August 31, 1997 -- $ --
Options written 295 931,130
Options closed or expired (295) (931,130)
---- ----------
Options outstanding at February 28, 1998 -- $ --
==== ==========
</TABLE>
25 Oppenheimer Real Asset Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
7. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the six months
ended February 28, 1998.
26 Oppenheimer Real Asset Fund
<PAGE>
Oppenheimer Real Asset Fund
================================================================================
Officers and Trustees James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Trustee, Vice President, Treasurer and
Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Mark J.P. Anson, Vice President
Russell Read, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Sub-Advisor Oppenheimer Real Asset Management, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors Deloitte & Touche LLP
================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
================================================================================
Special Counsel Kramer, Levin, Naftalis & Frankel
The financial statements included herein have been
taken from the records of the Fund without examination
of the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Real Asset Fund. This report must be
preceded or accompanied by a Prospectus of Oppenheimer
Real Asset Fund. For material information concerning
the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
27 Oppenheimer Real Asset Fund
<PAGE>
| Information and services
|-------------------------------------------------------------------------------
Internet
24-hr access to account
information. Online
transactions now
available.
- -------------------------
www.oppenheimerfunds.com
- -------------------------
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Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- -------------------------
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- -------------------------
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- -------------------------
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- -------------------------
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- -------------------------
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- -------------------------
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- -------------------------
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- -------------------------
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- -------------------------
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As an Oppenheimer fund shareholder, you have some special privileges. Whether
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And when you need help, our Customer Service Representatives are only a
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When you want to make a transaction, you can do it easily by calling our
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enrolling in AccountLink, a convenient service that "links" your
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use the Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
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PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
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from around the country, honored the Oppenheimer funds' transfer agent,
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So call us today, or visit us at our website at www.oppenheimerfunds.com--
we're here to help.
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Distributor, Inc.
RS0735.001.0298 April 29, 1998
