<PAGE> 1
SEMIANNUAL REPORT APRIL 30, 1999
OPPENHEIMER
MIDCAP FUND
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
5 An Interview
with Your Fund's
Manager
11 Financial
Statements
26 Officers and
Trustees
28 Information and
Services
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
- - THE MID-CAP MARKET HAS PROVIDED EXCELLENT OPPORTUNITIES to take advantage of
the proven track record of experienced management combined with the higher
growth rates of emerging enterprises.
- - THE TECHNOLOGY AND SPECIALTY RETAILING SECTORS contributed most to the Fund's
performance.
CUMULATIVE TOTAL RETURNS
For the 6-Month Period
Ended 4/30/99
CLASS A
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
43.39% 35.15%
- --------------------------------
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
42.80% 37.80%
- --------------------------------
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
42.84% 41.84%
- --------------------------------
CLASS Y
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
43.74% 43.74%
- --------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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. BECAUSE THE STOCK MARKET CAN BE VOLATILE, THE
FUND'S PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES. FOR
UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL
US AT 1-800-525-7048 OR VISIT OUR WEBSITE, WWW.OPPENHEIMERFUNDS.COM. The
inception date of the Fund is 12/1/97 for all classes.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the applicable contingent deferred sales charge of 1%.
Class Y shares are available only to certain institutional investors under
special agreement with the Distributor. Class B and C shares are subject to an
annual 0.75% asset-based sales charge. An explanation of the different
performance calculations is in the Fund's prospectus.
2 Oppenheimer MidCap Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
MidCap Fund
DEAR SHAREHOLDER,
- -------------------------------------------------------------------------------
According to popular belief, the last six months have been particularly
favorable for the financial markets.
The truth of the matter is that it's been a long, uphill struggle for
the diversified investor. That's because the stock market's dramatic rise
reflects the performance of the Dow Jones Industrial Average, which has been
fueled by only a small number of large-capitalization growth stocks and
technology companies. In the bond market this year, while many corporate and
foreign bonds have provided relatively attractive returns, the first quarter of
1999 was the worst quarter in history for U.S. Treasury securities.(1)
Recently, though, signs of change have been emerging that confirm the
importance of a well-diversified portfolio. While investors focusing on
large-cap growth and technology stocks may have achieved superior short-term
returns, they may have also dramatically increased their exposure to potential
risks. If recent economic and market trends persist, previously out-of-favor
stocks may continue to rise.
Specifically, U.S. economic growth has continued to surpass most
analysts' expectations and the breadth of the market's positive performance has
begun to widen. This has raised concerns that inflationary pressures may
re-emerge. In fact, the Federal Reserve Board recently indicated its readiness
to raise short-term interest rates as an inflation-fighting measure. Looking
outside of the United States, many foreign economies also appear to be on the
mend. The impact of these changes, as it applies to your fund, is discussed
more fully inside by your portfolio manager.
(over, please)
1. Foreign investing entails higher expenses and risks, such as foreign currency
fluctuations, economic and political instability, and differences in accounting
standards.
3 Oppenheimer MidCap Fund
<PAGE> 4
You may also have wondered about the impact of the Year 2000 problem on your
investments. While we cannot predict the final outcome, we are pleased that many
companies and governments appear to be making progress toward avoiding a major
disruption. For our part, OppenheimerFunds is in the advanced stages of our Y2K
project, and we have successfully participated in industry-wide tests.
Meanwhile, we intend to maintain the disciplined investment approach that
has been helping Oppenheimer funds shareholders for more than 40 years as they
pursue their financial goals. Our longstanding experience has taught us that
while investment fads come and go, prudent diversification remains key to
successful investing. In fact, it is an essential part of what makes
OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
May 21, 1999
4 Oppenheimer MidCap Fund
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
John Doney,
Bruce Bartlett
(Portfolio Manager)
AN INTERVIEW WITH YOUR FUND'S MANAGER
- -------------------------------------------------------------------------------
HOW DID THE FUND PERFORM DURING THE SIX-MONTH PERIOD THAT ENDED APRIL 30, 1999?
We are pleased with Oppenheimer MidCap Fund's performance. During the past six
months, the Fund not only showed strong growth in net asset value, it also
significantly outperformed its benchmark, the S&P MidCap 400.(1)
WHAT ECONOMIC CONDITIONS LED TO THE FUND'S SUCCESS?
Throughout the period, global economic growth remained subdued. In such an
environment, the market tends to reward companies that nevertheless demonstrate
strong and sustainable growth. These are precisely the kinds of companies our
stock selection process is designed to identify. Furthermore, the mid-cap
universe offers a wealth of such investment opportunities. That's because many
mid-cap companies exhibit the rapid growth characteristics usually associated
with successful smaller companies. At the same time, mid-cap companies are
generally well-established enterprises that have matured beyond the risky
start-up phase and are poised for steadier growth.
1. Based on changes in net asset value of the Fund's Class A shares, without
considering sales charges, and with dividends and capital gains distributions
reinvested. The S&P MidCap 400 Index generated a return of 18.86% for the
six-month period ended April 30, 1999. The S&P MidCap 400 Index is an unmanaged
index of equity securities which is a measure of mid-cap stock performance. The
performance of the index reflects the reinvestment of dividends but does not
consider the effect of transaction costs.
5 Oppenheimer MidCap Fund
<PAGE> 6
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 3/31/99(2)
CLASS A
Since
1 year Inception
- -------------------------
13.93% 30.29%
- -------------------------
CLASS B
Since
1 year Inception
- -------------------------
15.13% 32.61%
- -------------------------
CLASS C
Since
1 year Inception
- -------------------------
18.96% 35.26%
- -------------------------
CLASS Y
Since
1 year Inception
- -------------------------
21.49% 36.88%
- -------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
In other words, investing in attractive mid-cap companies offers the best of
both worlds, with the established business models and proven management track
records of larger companies and high growth rates of emerging enterprises. The
Fund's success during the past six months is a measure of our ability to
identify and capitalize on those opportunities.
WHAT TYPES OF INVESTMENTS DID YOU FIND MOST ATTRACTIVE?
We analyze potential investments on a company-by-company basis, looking for
those we believe can produce revenues and profits at a consistently high rate of
15% or more per year. During the past six months, our research led us to
attractive investments in various areas of technology, biotechnology and
specialty retail.
In the technology sector, we put much of the Fund's available cash to
work in the Internet arena. Some of our investments were in companies like
JDS Fitel, Inc. and General Instrument Corp. that provide equipment and
support essential to the Internet's expansion. Others were in traditional
retail and marketing companies that are employing the Internet to enhance their
profitability. Still others were among companies that debuted on the Internet
and are profiting from new ways of doing business. In general, our investments
in this sector performed particularly well.
6 Oppenheimer MidCap Fund
<PAGE> 7
We reduced our holdings of many healthcare companies during the period because
of slowing growth in much of the industry and increasing concerns about the
potential for new regulatory legislation that might negatively affect revenues.
However, we invested in a number of biotech firms, such as Biogen, Inc. that
hold key patents on drugs of vital therapeutic importance.
We also invested in a number of attractive specialty retailers--those
that sell only one type of product, such as home electronics. These companies
are benefiting from robust demand for their products driven by high employment
levels, low interest rates, low inflation and strong consumer confidence. One of
our largest and best performing holdings during the period was Best Buy Co.,
Inc., a consumer electronics company that we believe is well positioned to
profit from rapidly growing demand for digital appliances such as cameras, DVD
players and high definition TV.
2. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. The inception date of the Fund is 12/1/97 (for all classes). Class A
returns include the current maximum initial sales charge of 5.75%. Class B
returns include the applicable contingent deferred sales charge of 5% (one-year)
and 4% (since inception.) Class C returns for the one-year result include the
contingent deferred sales charge of 1%. Class Y shares are available only to
certain institutional investors under special agreement with the Distributor.
Class B and C shares are subject to an annual 0.75% asset-based sales charge. An
explanation of the different performance calculations is in the Fund's
prospectus.
7 Oppenheimer Midcap Fund
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGER
- -------------------------------------------------------------------------------
DID YOU REDUCE INVESTMENTS IN OTHER AREAS?
In addition to trimming our holdings in the healthcare sector, we sold positions
in various consumer services companies that were beginning to exhibit slower
revenue growth. We believe that a decline in a company's rate of revenue growth
indicates a likelihood of slower earnings growth and a lower stock price.
Accordingly, we eliminated our positions in the solid waste industry and in a
major provider of corporate management services.
We also cut the Fund's exposure to certain areas of technology that we
believed might be negatively affected by Year 2000 (Y2K) concerns. The
transition to the year 2000 may cause problems for some computer systems. As a
result, a number of companies may postpone other technology expenditures until
they've resolved their existing Y2K issues. For that reason, we sold some of our
holdings of PC hardware and software stocks we believed might suffer. In fact,
several of these stocks declined sharply in the months that followed.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We continue to believe that exceptional growth opportunities exist among many
mid-cap stocks that exhibit the characteristics we seek. Although the future can
never be predicted with certainty, it's our opinion that the strong U.S. economy
and low interest rate environment that favored the Fund during the last six
months are likely to continue for the foreseeable future.
8 Oppenheimer Midcap Fund
<PAGE> 9
ASSET ALLOCATION(3)
[PIE CHART]
Stocks 92.1%
Cash Equivalents 7.9
For that reason, we remain enthusiastic about the potential for the companies in
which we invest. We will continue to build the Fund's holdings one stock at a
time, remaining committed to the investment discipline that makes Oppenheimer
MidCap Fund part of The Right Way to Invest.
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS(3)
- -------------------------------------------------------------
<S> <C>
JDS Fitel, Inc. 6.3%
- -------------------------------------------------------------
General Instrument Corp. 4.5
- -------------------------------------------------------------
Dial Corp. (The) 4.1
- -------------------------------------------------------------
Abercrombie & Fitch Co., Cl. A 4.0
- -------------------------------------------------------------
Young & Rubicam, Inc. 3.1
- -------------------------------------------------------------
Best Buy Co., Inc. 3.0
- -------------------------------------------------------------
Waters Corp. 2.9
- -------------------------------------------------------------
Adelphia Communications Corp. 2.9
- -------------------------------------------------------------
First Tennessee National Corp. 2.8
- -------------------------------------------------------------
Lexmark International Group, Inc., Cl. A 2.7
- -------------------------------------------------------------
<CAPTION>
TOP 5 SECTORS(3)
- -------------------------------------------------------------
<S> <C>
Technology 42.8%
- -------------------------------------------------------------
Consumer Staples 14.2
- -------------------------------------------------------------
Consumer Cyclicals 13.6
- -------------------------------------------------------------
Financial 6.6
- -------------------------------------------------------------
Communication Services 6.5
- -------------------------------------------------------------
</TABLE>
3. Portfolio is subject to change. Percentages are as of April 30, 1999, and are
based on total market value of investments.
9 Oppenheimer Midcap Fund
<PAGE> 10
FINANCIALS
10 Oppenheimer MidCap Fund
<PAGE> 11
STATEMENT OF INVESTMENTS April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================
<S> <C> <C>
COMMON STOCKS--88.9%
- ----------------------------------------------------------------------------------
CAPITAL GOODS--2.3%
- ----------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.6%
Gulfstream Aerospace Corp.(1) 16,000 $ 780,000
- ----------------------------------------------------------------------------------
Howmet International, Inc.(1) 33,500 536,000
----------
1,316,000
- ----------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.7%
United Rentals, Inc.(1) 19,500 581,344
- ----------------------------------------------------------------------------------
COMMUNICATION SERVICES--4.9%
- ----------------------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE--4.9%
Exodus Communications, Inc.(1) 3,000 270,375
- ----------------------------------------------------------------------------------
Global Crossing Ltd.(1) 37,000 1,998,000
- ----------------------------------------------------------------------------------
Global TeleSystems Group, Inc.(1) 13,000 859,625
- ----------------------------------------------------------------------------------
Qwest Communications International, Inc.(1) 10,664 911,105
----------
4,039,105
- ----------------------------------------------------------------------------------
CONSUMER CYCLICALS--13.4%
- ----------------------------------------------------------------------------------
CONSUMER SERVICES--3.1%
Young & Rubicam, Inc.(1) 63,800 2,540,037
- ----------------------------------------------------------------------------------
RETAIL: SPECIALTY--10.3%
Abercrombie & Fitch Co., Cl. A(1) 34,000 3,234,250
- ----------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 51,000 2,435,250
- ----------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 39,000 1,784,250
- ----------------------------------------------------------------------------------
Tiffany & Co. 12,800 1,075,200
----------
8,528,950
- ----------------------------------------------------------------------------------
CONSUMER STAPLES--14.0%
- ----------------------------------------------------------------------------------
BROADCASTING--2.8%
Adelphia Communications Corp.(1) 34,100 2,327,325
- ----------------------------------------------------------------------------------
ENTERTAINMENT--4.8%
Outback Steakhouse, Inc.(1) 43,500 1,557,844
- ----------------------------------------------------------------------------------
SFX Entertainment, Inc., Cl. A(1) 18,500 1,142,375
- ----------------------------------------------------------------------------------
Starbucks Corp.(1) 34,800 1,285,425
----------
3,985,644
- ----------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--2.3%
U.S. Foodservice, Inc.(1) 45,100 1,897,019
- ----------------------------------------------------------------------------------
HOUSEHOLD GOODS--4.1%
Dial Corp. (The) 98,500 3,349,000
</TABLE>
11 Oppenheimer MidCap Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL--6.5%
- ----------------------------------------------------------------------------------
BANKS--4.4%
AmSouth Bancorp 29,500 $1,403,094
- ----------------------------------------------------------------------------------
First Tennessee National Corp. 52,000 2,242,500
----------
3,645,594
- ----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.1%
Providian Financial Corp. 13,500 1,742,344
- ----------------------------------------------------------------------------------
HEALTHCARE--5.6%
- ----------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.7%
Biogen, Inc.(1) 22,000 2,091,375
- ----------------------------------------------------------------------------------
Centocor, Inc.(1) 38,000 1,686,250
- ----------------------------------------------------------------------------------
Pliva d.d.(2) 4,300 68,155
----------
3,845,780
- ----------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--0.9%
Medtronic, Inc. 10,410 748,869
- ----------------------------------------------------------------------------------
TECHNOLOGY--42.2%
- ----------------------------------------------------------------------------------
COMPUTER HARDWARE--2.6%
Lexmark International Group, Inc., Cl. A(1) 17,500 2,161,250
- ----------------------------------------------------------------------------------
COMPUTER SERVICES--5.6%
Acxiom Corp.(1) 30,300 765,075
- ----------------------------------------------------------------------------------
Autoweb.com, Inc.(1) 1,500 39,188
- ----------------------------------------------------------------------------------
Ceridian Corp.(1) 46,000 1,684,750
- ----------------------------------------------------------------------------------
CheckFree Holdings Corp.(1) 17,000 816,000
- ----------------------------------------------------------------------------------
FlashNet Communications, Inc.(1) 4,300 136,525
- ----------------------------------------------------------------------------------
Ivillage, Inc.(1) 1,200 94,800
- ----------------------------------------------------------------------------------
Multex.com, Inc.(1) 2,400 103,200
- ----------------------------------------------------------------------------------
Rhythms NetConnections, Inc.(1) 4,200 346,500
- ----------------------------------------------------------------------------------
Smith-Gardner & Associates, Inc.(1) 29,300 395,550
- ----------------------------------------------------------------------------------
Ziff-Davis, Inc.(1) 6,000 211,500
----------
4,593,088
- ----------------------------------------------------------------------------------
COMPUTER SOFTWARE--11.5%
Citrix Systems, Inc.(1) 27,000 1,147,500
- ----------------------------------------------------------------------------------
Compuware Corp.(1) 26,600 648,375
- ----------------------------------------------------------------------------------
CSG Systems International, Inc.(1) 50,000 1,931,250
- ----------------------------------------------------------------------------------
Excite, Inc.(1) 4,000 584,000
- ----------------------------------------------------------------------------------
Marimba, Inc.(1) 4,500 273,375
- ----------------------------------------------------------------------------------
Sapient Corp.(1) 21,000 1,317,750
</TABLE>
12 Oppenheimer MidCap Fund
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE (CONTINUED)
Unisys Corp.(1) 35,500 $ 1,116,031
- ----------------------------------------------------------------------------------
USWeb Corp.(1) 30,000 673,125
- ----------------------------------------------------------------------------------
Veritas Software Corp.(1) 25,500 1,810,500
-----------
9,501,906
- ----------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--4.4%
General Instrument Corp.(1) 100,500 3,668,250
- ----------------------------------------------------------------------------------
ELECTRONICS--18.1%
Gemstar International Group Ltd.(1) 10,000 1,053,750
- ----------------------------------------------------------------------------------
JDS Fitel, Inc.(1) 85,000 5,136,279
- ----------------------------------------------------------------------------------
Level One Communications, Inc.(1) 15,000 770,625
- ----------------------------------------------------------------------------------
LSI Logic Corp.(1) 22,000 748,000
- ----------------------------------------------------------------------------------
QLogic Corp.(1) 25,000 1,748,438
- ----------------------------------------------------------------------------------
SDL, Inc.(1) 9,000 983,250
- ----------------------------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 46,000 2,130,375
- ----------------------------------------------------------------------------------
Waters Corp.(1) 22,500 2,365,312
-----------
14,936,029
-----------
Total Common Stocks (Cost $57,793,349) 73,407,534
==================================================================================
OTHER SECURITIES--2.1%
- ----------------------------------------------------------------------------------
Qwest Trends Trust, 5.75% Cv.(2) 17,600 1,258,400
- ----------------------------------------------------------------------------------
United Rental Trust I, 6.50% Cv. Quarterly
Income Preferred Securities(1)(2) 10,000 441,250
-----------
Total Other Securities (Cost $1,492,400) 1,699,650
<CAPTION>
FACE
AMOUNT
==================================================================================
<S> <C> <C>
REPURCHASE AGREEMENTS--7.7%
- ----------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital
Markets, 4.86%, dated 4/30/99,to be repurchased at
$6,402,592 on 5/3/99, collateralized by U.S.
Treasury Nts., 4%-7.875%, 7/15/99-2/15/07, with a
value of $5,012,434, U.S. Treasury Bonds,
7.25%-10.75%, 2/15/03-11/15/21, with a value of
$1,518,604 (Cost $6,400,000) $6,400,000 6,400,000
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $65,685,749) 98.7% 81,507,184
- ----------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.3 1,092,735
---------- -----------
NET ASSETS 100.0% $82,599,919
========== ===========
</TABLE>
1. Non-income producing security.
2. 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 $1,767,805 or 2.14% of the Fund's net
assets as of April 30, 1999.
See accompanying Notes to Financial Statements.
13 Oppenheimer MidCap Fund
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
============================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $65,685,749)--see accompanying statement $81,507,184
- ------------------------------------------------------------------------------------------------------------
Cash 46,855
- ------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 1,638,741
Interest and dividends 8,989
Other 2,538
-------
Total assets 83,204,307
============================================================================================================
LIABILITIES
Payables and other liabilities:
Investments purchased 343,125
Shares of beneficial interest redeemed 199,920
Shareholder reports 17,280
Distribution and service plan fees 14,923
Transfer and shareholder servicing agent fees 13,312
Other 15,828
-------
Total liabilities 604,388
===========================================================================================================
NET ASSETS $82,599,919
===========
===========================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $70,153,791
- -----------------------------------------------------------------------------------------------------------
Accumulated net investment loss (233,626)
- -----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (3,141,681)
- -----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies--Note 3 15,821,435
-----------
Net assets $82,599,919
===========
</TABLE>
14 Oppenheimer MidCap Fund
<PAGE> 15
<TABLE>
===========================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $46,141,213 and 2,975,677 shares of beneficial interest outstanding) $15.51
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $16.46
- -----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets
of $29,607,541 and 1,927,297 shares of beneficial interest outstanding) $15.36
- -----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets
of $6,849,603 and 446,313 shares of beneficial interest outstanding) $15.35
- -----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $1,562 and 100 shares of beneficial interest outstanding) $15.62
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer MidCap Fund
<PAGE> 16
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
INVESTMENT INCOME
===========================================================================================================
<S> <C>
Interest $ 133,345
- -----------------------------------------------------------------------------------------------------------
Dividends 78,341
----------
Total income 211,686
===========================================================================================================
EXPENSES
Management fees--Note 4 176,123
- -----------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 30,160
Class B 79,909
Class C 22,149
- -----------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 37,311
Class B 22,417
Class C 6,243
- -----------------------------------------------------------------------------------------------------------
Shareholder reports 36,956
- -----------------------------------------------------------------------------------------------------------
Registration and filing fees 11,888
- -----------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 10,269
- -----------------------------------------------------------------------------------------------------------
Trustees' compensation 3,035
- -----------------------------------------------------------------------------------------------------------
Custodian fees and expenses 1,426
- -----------------------------------------------------------------------------------------------------------
Other 7,839
----------
Total expenses 445,725
Less expenses paid indirectly--Note 4 (413)
----------
Net expenses 445,312
===========================================================================================================
NET INVESTMENT LOSS (233,626)
===========================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (390,067)
Closing of futures contracts 102,975
----------
Net realized loss (287,092)
- -----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 15,604,849
Translation of assets and liabilities denominated in foreign currencies 22,462
----------
Net change 15,627,311
----------
Net realized and unrealized gain 15,340,219
===========================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $15,106,593
===========
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer MidCap Fund
<PAGE> 17
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998(1)
===========================================================================================================
<S> <C> <C>
OPERATIONS
Net investment loss $ (233,626) $ (68,156)
- -----------------------------------------------------------------------------------------------------------
Net realized loss (287,092) (2,757,709)
- -----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 15,627,311 194,124
----------- -----------
Net increase (decrease) in net assets resulting from operations 15,106,593 (2,631,741)
===========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized gain:
Class A (23,300) --
Class B (13,595) --
Class C (4,026) --
===========================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 22,917,243 15,972,120
Class B 16,942,844 8,617,664
Class C 2,824,655 2,890,462
Class Y -- 1,000
===========================================================================================================
NET ASSETS
Total increase 57,750,414 24,849,505
- -----------------------------------------------------------------------------------------------------------
Beginning of period 24,849,505 --
----------- -----------
End of period (including accumulated net investment
loss of $233,626 for the six months ended April 30, 1999) $82,599,919 $24,849,505
=========== ===========
</TABLE>
1. For the period from December 1, 1997 (commencement of operations) to
October 31, 1998.
See accompanying Notes to Financial Statements.
17 Oppenheimer MidCap Fund
<PAGE> 18
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
---------------------------------- ------------------
SIX MONTHS PERIOD SIX MONTHS
ENDED ENDED ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999
(UNAUDITED) 1998(1) (UNAUDITED)
==================================================================================================================
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 10.83 $ 10.00 $ 10.77
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.04) (.02) (.05)
Net realized and unrealized gain 4.74 .85 4.66
------- ------- -------
Total income from investment
operations 4.70 .83 4.61
- ------------------------------------------------------------------------------------------------------------------
Distributions to shareholders
from net realized gain (.02) -- (.02)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.51 $ 10.83 $ 15.36
======= ======= =======
==================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 43.39% 8.30 % 42.80 %
==================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $46,141 $14,607 $29,608
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $26,946 $ 7,185 $16,234
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.65)% (0.33)% (1.43)%
Expenses(4) 1.55 % 1.59 % 2.32 %
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 31 % 117 % 31 %
</TABLE>
1. For the period from December 1, 1997 (commencement of operations) to October
31, 1998.
2. Assumes a $1,000 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.
3. Annualized.
4. The expense ratio reflects the effect of expenses paid indirectly by the
Fund.
18 Oppenheimer MidCap Fund
<PAGE> 19
<TABLE>
<CAPTION>
CLASS C CLASS Y
- ------------- ----------------------------------- ---------------------------------
PERIOD SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
1998(1) (UNAUDITED) 1998(1) (UNAUDITED) 1998(1)
=====================================================================================================
<S> <C> <C> <C> <C>
$10.00 $10.76 $10.00 $10.88 $10.00
- -----------------------------------------------------------------------------------------------------
(.05) (.06) (.05) (.01) .01
.82 4.67 .81 4.77 .87
------ ------ ------ ------ ------
.77 4.61 .76 4.76 .88
- -----------------------------------------------------------------------------------------------------
-- (.02) -- (.02) --
- -----------------------------------------------------------------------------------------------------
$10.77 $15.35 $10.76 $15.62 $10.88
====== ====== ====== ====== ======
=====================================================================================================
7.70 % 42.84 % 7.60 % 43.74 % 8.80%
=====================================================================================================
$7,654 $6,850 $2,587 $ 2 $ 1
- -----------------------------------------------------------------------------------------------------
$3,521 $4,490 $1,271 $ 1 $ 1
- -----------------------------------------------------------------------------------------------------
(1.06)% (1.41)% (1.07)% (0.11)% 0.05%
2.35 % 2.32 % 2.35 % 1.06 % 1.09%
- -----------------------------------------------------------------------------------------------------
117 % 31 % 117 % 31 % 117%
</TABLE>
5. 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 April 30, 1999, were $52,965,837 and $13,514,950, respectively.
See accompanying Notes to Financial Statements.
19 Oppenheimer MidCap Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer MidCap Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to seek capital appreciation. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). 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
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.
- --------------------------------------------------------------------------------
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. 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. Foreign currency contracts are valued based on the closing
prices of the foreign 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.
20 0ppenheimer MidCap Fund
<PAGE> 21
================================================================================
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, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), 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. As of October 31, 1998, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $2,793,000, expiring in 2006.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted a nonfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of the 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.
21 Oppenheimer MidCap Fund
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
================================================================================
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 APRIL 30, 1999 PERIOD ENDED OCTOBER 31, 1998(1)
------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,117,186 $29,564,143 1,814,456 $21,297,357
Distributions reinvested 1,766 21,577 -- --
Redeemed (492,503) (6,668,477) (465,228) (5,325,237)
--------- ----------- --------- -----------
Net increase 1,626,449 $22,917,243 1,349,228 $15,972,120
========= =========== ========= ===========
- -------------------------------------------------------------------------------------------------
Class B:
Sold 1,383,023 $19,284,233 1,028,170 $12,132,431
Distributions reinvested 1,089 13,217 -- --
Redeemed (167,793) (2,354,606) (317,192) (3,514,767)
--------- ----------- --------- -----------
Net increase 1,216,319 $16,942,844 710,978 $ 8,617,664
========= =========== ========= ===========
- -------------------------------------------------------------------------------------------------
Class C:
Sold 267,045 $ 3,660,981 332,549 $ 3,888,969
Distributions reinvested 315 3,822 -- --
Redeemed (61,581) (840,148) (92,016) (998,507)
--------- ----------- --------- -----------
Net increase 205,779 $ 2,824,655 240,533 $ 2,890,462
========= =========== ========= ===========
- -------------------------------------------------------------------------------------------------
Class Y:
Sold -- $ -- 100 $ 1,000
Distributions reinvested -- -- -- --
Redeemed -- -- -- --
--------- ----------- --------- -----------
Net increase -- $ -- 100 $ 1,000
========= =========== ========= ===========
1. For the period from December 1, 1997 (commencement of operations) to October 31, 1998.
=================================================================================================
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of April 30, 1999, net unrealized appreciation on investments of $15,821,435
was composed of gross appreciation of $17,014,821, and gross depreciation of
$1,193,386.
22 Oppenheimer MidCap Fund
<PAGE> 23
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of 0.75% of
the first $200 million of average annual net assets of the Fund, 0.72% of the
next $200 million, 0.69% of the next $200 million, 0.66% of the next $200
million, and 0.60% of average annual net assets in excess of $800 million. The
Fund's management fee for the six months ended April 30, 1999 was 0.75% of the
average annual net assets for each class of shares.
For the six months ended April 30, 1999, commissions (sales charges
paid by investors) on sales of Class A shares totaled $211,891, of which $72,134
was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class A, Class
B and Class C shares totaled $13,472, $370,844 and $19,348, respectively. The
amount paid to an affiliated broker/dealer for Class B shares was $32,007.
During the six months ended April 30, 1999, OFDI received contingent deferred
sales charges of $20,610 and $2,012, respectively, upon redemption of Class B
and Class 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 Manager, is the
transfer and shareholder servicing agent for the Fund and other Oppenheimer
funds. The Fund pays OFS an annual maintenance fee of $18.00 for each Fund
shareholder account and reimburses OFS for its out-of-pocket expenses. During
the six months ended April 30, 1999, the Fund paid OFS $55,671.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
The Fund has adopted a Distribution and Service Plan for Class A
shares to compensate OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of shareholder accounts that hold Class A
shares. Under the Plan, the Fund pays an annual asset-based sales charge to OFDI
of 0.25% per year on Class A shares. The Fund also pays a service fee to OFDI of
0.25% per year. Each fee is computed on the average annual net assets of Class A
shares of the Fund, determined as of the close of each regular business day.
OFDI uses all of the service fee and a portion of the asset-based sales charge
to compensate brokers, dealers, banks and other financial institutions quarterly
for providing personal service and maintenance of accounts of their customers
that hold Class A shares. OFDI retains the balance of the asset-based sales
charge to compensate itself for its other expenditures under the Plan. During
the period ended April 30, 1999, OFDI paid $2,168 to an affiliated broker/dealer
as compensation for Class A personal service and maintenance expenses.
23 Oppenheimer MidCap Fund
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
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 Class 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-month
period ended April 30, 1999, OFDI retained $72,270 and $17,249, 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 Trustees 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 April 30, 1999, OFDI had incurred excess distribution and
servicing costs of $604,137 for Class B and $58,748 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 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 and the resulting negative effect on the value of
fixed rate portfolio securities. The Fund may also purchase futures contracts to
gain exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities (initial margin) in an amount equal to a
certain percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Fund each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized gain or loss when the contract
is closed or expires.
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.
24 Oppenheimer MidCap Fund
<PAGE> 25
================================================================================
6. 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
April 30, 1999.
25 Oppenheimer MidCap Fund
<PAGE> 26
OPPENHEIMER MIDCAP FUND
===============================================================================
OFFICERS AND TRUSTEES Bridget A. Macaskill, Chairman of the Board of
Trustees and President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Robert G. Galli, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Bruce Bartlett, Vice President
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
===============================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
===============================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
===============================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
===============================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
===============================================================================
INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP
===============================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have
been taken from the records of the Fund without
examination of the independent accountants.
This is a copy of a report to shareholders of
Oppenheimer MidCap Fund. This report must be preceded
or accompanied by a Prospectus of Oppenheimer MidCap
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, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
26 Oppenheimer MidCap Fund
<PAGE> 27
OPPENHEIMERFUNDS FAMILY
<TABLE>
=====================================================================================================
<S> <C> <C>
REAL ASSET FUNDS
- -----------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
=====================================================================================================
GLOBAL STOCK FUNDS
- -----------------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
=====================================================================================================
STOCK FUNDS
- -----------------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Fund Quest Capital Value Fund Disciplined Value Fund
Quest Value Fund
=====================================================================================================
STOCK & BOND FUNDS
- -----------------------------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Multiple Strategies Fund
Income Fund(1) Quest Balanced Disciplined Allocation Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Capital Income Fund(2)
=====================================================================================================
TAXABLE BOND FUNDS
- -----------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
=====================================================================================================
MUNICIPAL BOND FUNDS
- -----------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
=====================================================================================================
MONEY MARKET FUNDS(4)
- -----------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 12/22/98, the Fund's name was changed from "Oppenheimer Main Street
Income & Growth Fund."
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income
Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
27 Oppenheimer MidCap Fund
<PAGE> 28
INFORMATION AND SERVICES
- ------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us
whenever you need assistance. So call us today, or visit our website--we're
here to help.
INTERNET
24-hr access to account
information and transactions
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET,
Sat 10am-4pm ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET,
Sat 10am-4pm ET
1-800-852-8457
PHONELINK
24-hr automated information
and automated transactions
1-800-533-3310
TELECOMMUNICATION DEVICE
FOR THE DEAF (TDD)
Mon-Fri 8:30am-6pm ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
1-800-835-3104
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services,
P.O. Box 5270, Denver, CO
80217-5270
[OPPENHEIMERFUNDS LOGO]
RS0745.001.0499 June 29, 1999
