<PAGE> 1
ANNUAL REPORT JULY 31, 1999
OPPENHEIMER
LARGE CAP
GROWTH FUND
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
5 An Interview
with Your Fund's
Manager
10 Fund Performance
14 Financial
Statements
30 Independent
Auditors' Report
31 Federal
Income Tax
Information
32 Officers and
Trustees
36 Information and
Services
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
- - A COMBINATION OF TECHNICAL AND FUNDAMENTAL ANALYSES helps us discover large
companies that we believe are most likely to provide positive earnings
surprises.
- - OUR DE-EMPHASIS ON CONSUMER STAPLES BENEFITED THE FUND'S PERFORMANCE. The
sector's relative earnings proved disappointing compared to the more
economically sensitive sectors.
CUMULATIVE TOTAL RETURNS
For the Period from
12/17/98 to 7/31/99
CLASS A
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------
19.30% 12.44%
- --------------------------------------
CLASS Y
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------
19.50% 19.50%
- --------------------------------------
For the Period from
3/1/99 to 7/31/99
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------
13.45% 8.45%
- --------------------------------------
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------
13.45% 12.45%
- --------------------------------------
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.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. 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%.
Class C returns include the contingent deferred sales charge of 1%. Class Y
shares are offered 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. These total returns, which are
cumulative returns, cover a short period of time, and may not be representative
of performance of a fund, such as Oppenheimer Large Cap Growth Fund, that seeks
capital appreciation for long-term investors.
2 Oppenheimer Large Cap Growth Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Large Cap Growth Fund
DEAR SHAREHOLDER,
- -------------------------------------------------------------------------------
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many econ-omies around the world begin to strengthen, concerns now center
around whether the U.S. economy may be growing too quickly. Throughout the
year, consumers in the United States have continued to spend and borrow
heavily, more than offsetting any temporary slowdown in the industrial and
export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth
stocks, which has driven the market's advance over the past few years, has
begun to moderate, and many previously out-of-favor value-oriented, mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
(over, please)
3 Oppenheimer Large Cap Growth Fund
<PAGE> 4
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against inflation.
In our view, history has repeatedly demonstrated that most financial assets do
best in a low-inflation environment. What's more, we believe that the move to
higher interest rates should be temporary.
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue,
we are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industry-wide tests. We
intend to continue re-testing our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
August 20, 1999
4 Oppenheimer Large Cap Growth Fund
<PAGE> 5
AN INTERVIEW WITH YOUR FUND'S MANAGER
- -------------------------------------------------------------------------------
HOW HAS OPPENHEIMER LARGE CAP GROWTH FUND PERFORMED?
We are pleased with the Fund's performance since its inception on December 17,
1998, through the end of the fiscal year, July 31, 1999. The key to the Fund's
performance was good sector allocation combined with careful stock selection. A
review of the reporting period indi-cates that our emphasis on technology
companies and de-emphasis on consumer staples benefited the Fund's performance.
Within those and other sectors, we invested in individual stocks that performed
particularly well.
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Bruce Bartlett(1)
(Portfolio Manager)
Edward Amberger
HOW WOULD YOU DESCRIBE YOUR INVESTMENT APPROACH?
We consider ourselves growth-oriented investors who combine technical and
fundamental analyses to find large-capitalization stocks that we believe will
provide superior long-term returns. Our investment process begins with a
computer screen of more than 500 large-cap companies that comprise the Russell
1000(R) Growth Index. Our computer model identifies individual companies that
have the potential for above-average growth and may post positive earnings
relative to expectations.
1. Effective 6/18/99, Bruce Bartlett became the Portfolio Manager of the Fund.
5 Oppenheimer Large Cap Growth Fund
<PAGE> 6
"THE COMBINATION OF COMPUTER MODELING AND IN-DEPTH FUNDAMENTAL RESEARCH IS KEY
TO OUR INVESTMENT APPROACH."
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
We then conduct thorough fundamental analyses of the companies on the list our
computer model provides. Our goal in this phase of our approach is to determine
whether a business's growth is sustainable over the foreseeable future. We also
look for potential problems that might interrupt long-term growth trends. Such
problems could be specific to the individual company, or they could be part of
broader industrywide or economic developments. When we find a candidate that
meets our criteria for both past and potential growth, we may consider it for
the portfolio. We also pay close attention to diversification, ensuring that
our sector concentrations fall within certain parameters relative to our
benchmark. We also consider a company's valuation, which is its stock price
relative to earnings and/or its stock price relative to book value.
HOW HAS THE STOCK MARKET PERFORMED SINCE THE FUND'S INCEPTION IN DECEMBER?
The large-capitalization segment of the U.S. stock market has performed quite
well for several years. This was especially true early in the reporting period,
when a number of large-cap growth stocks led the overall market's advance. At
that time, most small-cap and mid-cap stocks had lagged the large-cap market
segment substantially because of investors' concerns over economic weakness in
certain overseas markets. Investors preferred the security of large, well-known
companies with a history of consistent earnings growth.
6 Oppenheimer Large Cap Growth Fund
<PAGE> 7
CUMULATIVE TOTAL RETURNS
For the Period from
12/17/98 to 6/30/99(2)
Since
Inception
- ----------------------------
CLASS A 14.70%
- ----------------------------
CLASS Y 21.90%
- ----------------------------
For the Period from
3/1/99 to 6/30/99(2)
Since
Inception
- ----------------------------
CLASS B 10.84%
- ----------------------------
CLASS C 14.94%
- ----------------------------
Investor sentiment changed dramatically in April, however. When it became
apparent that overseas markets were recovering and that the U.S. economy
remained quite strong, investors began to feel more comfortable investing in
stocks they had previously avoided. Consequently, market leadership shifted to
companies--large, medium and small--that tend to respond favorably to stronger
economic conditions.
HOW WAS THE FUND MANAGED IN THAT MARKET ENVIRONMENT?
Even though we predominantly invest in large-cap com-panies, we were
well-positioned when investor sentiment shifted. Our technical and fundamental
analyses helped us identify economically sensitive stocks in the technology and
consumer cyclical market sectors, both of which provided attractive returns.
Our security selection strategy also caused us to reduce our exposure to
certain market sectors, including consumer staples and large-cap health care
pharmaceuticals. Within the healthcare sector, we focused primarily on
biotechnology companies. These businesses tend to be relatively immune to the
financial pressures affecting other healthcare companies, and their earnings
have grown as more bio-engineered medicines have obtained federal regulatory
approval.
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 Class A shares and Class Y shares is 12/17/98. The
inception date of Class B and Class C shares is 3/1/99. The 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%. Class C returns
include the contingent deferred sales charge of 1%. Class Y shares are offered
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 Large Cap Growth Fund
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
WHAT MARKET SECTORS CONTRIBUTED MOST TO PERFORMANCE?
Our technology holdings represented our top-performing investments during the
reporting period. We received especially strong performance from
Internet-related companies. Throughout the world, businesses are buying the
trans-mission lines, servers and other hardware and software required to
participate in the growth of "e-commerce." Accordingly, Fund holdings such as
Cisco Systems, Inc., Sun Microsystems, Inc. and Microsoft Corp. have prospered.
We also saw good performance from some of our retailers, which are
considered consumer cyclical stocks. These companies have benefited from strong
consumer spending. Retailers such as Intimate Brands, Inc., which owns the
Victoria's Secret and Bath & Body Works stores, have seen double-digit increases
in same-store sales. Elec-tronic goods retailers also provided attractive
results, primarily through the sale of new technologies including digital
cameras, wide-screen televisions and digital video players.
WHAT IS YOUR OUTLOOK FOR THE FORESEEABLE FUTURE?
We are optimistic. In our opinion, the favorable economic forces that caused
April's shift in market leadership are likely to persist. Most of the world's
economies appear to be growing, including the United States and, to a lesser
extent, Europe. We expect Japan and the emerging markets in Southeast Asia and
Latin America to gain strength as well.
In this environment, we continue to favor technology and consumer cyclical
stocks. That's because our technical and fundamental analyses indicate that
these types of companies are most likely to provide the positive earnings
momentum we seek.
8 Oppenheimer Large Cap Growth Fund
<PAGE> 9
SECTOR ALLOCATION(3)
[PIE CHART]
- - TECHNOLOGY 43.1%
- - CONSUMER CYCLICALS 22.1
- - HEALTHCARE 14.7
- - CAPITAL GOODS 11.9
- - CONSUMER STAPLES 3.3
- - FINANCIAL 3.2
- - ENERGY 1.1
- - COMMUNICATION
SERVICES 0.6
If economic or market conditions change unexpectedly, however, we believe that
our computer models and in-depth research will help us identify any new trends
early. If such a scenario occurs, we expect to reposition the portfolio to
emphasize companies likely to prosper in the new environment. In our view,
maintaining this disciplined investment approach is part of The Right Way to
Invest.
TOP 10 STOCK HOLDINGS(4)
- -----------------------------------------------
General Electric Co. 4.3%
- -----------------------------------------------
Microsoft Corp. n 3.7
- -----------------------------------------------
Lucent Technologies, Inc. 3.1
- -----------------------------------------------
Intel Corp. 2.5
- -----------------------------------------------
Cisco Systems, Inc. 2.2
- -----------------------------------------------
America Online, Inc. 1.9
- -----------------------------------------------
Hewlett-Packard Co. 1.7
- -----------------------------------------------
Amgen, Inc. 1.6
- -----------------------------------------------
Texas Instruments, Inc. 1.6
- -----------------------------------------------
Sun Microsystems, Inc. 1.4
- -----------------------------------------------
3. Portfolio is subject to change. Percentages are as of July 31, 1999, and are
based on total market value of common stock holdings.
4. Portfolio is subject to change. Percentages are as of July 31, 1999, and are
based on invested assets. While the Fund generally has invested under 10% of
its assets in foreign securities, which are subject to exchange rate and
political uncertainties, it may invest up to 10% by prospectus.
9 Oppenheimer Large Cap Growth Fund
<PAGE> 10
FUND PERFORMANCE
- -------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? Below is a discussion, by the Manager, of the
Fund's performance during its fiscal year ended July 31, 1999, followed by a
graphical comparison of the Fund's performance to two appropriate broad-based
market indices.
- MANAGEMENT'S DISCUSSION OF PERFORMANCE
During the Fund's fiscal year that ended July 31, 1999, Oppenheimer Large Cap
Growth Fund performed well. The Fund's returns were positively influenced by a
rising U.S. stock market in a strong domestic economic environment. The Fund
also benefited from its focus on large technology and consumer cyclical stocks
at a time when those sectors provided higher returns than the overall stock
market. On the other hand, the Fund's performance was constrained by declines in
individual holdings that failed to meet earnings-growth expectations. In most
cases, such stocks were eliminated from the portfolio. The Fund's portfolio
holdings, allocations and strategies are subject to change.
- COMPARING THE FUND'S PERFORMANCE TO THE MARKET
The graphs that follow show the performance of a hypothetical $10,000 investment
in each class of shares of the Fund held until July 31, 1999. In the case of
Class A and Class Y shares, performance is measured from inception of the Fund
and of those classes on December 17, 1998. In the case of Class B and Class C
shares, performance is measured from inception of the classes on March 1, 1999.
The Fund's performance reflects the deduction of the maximum initial sales
charge on Class A shares and the applicable contingent deferred sales charge for
Class B and Class C shares. The graphs assume that all dividends and capital
gains distributions were reinvested in additional shares.
10 Oppenheimer Large Cap Growth Fund
<PAGE> 11
The Fund's performance is compared to the performance of Standard & Poor's
(S&P) 500 Index, a broad-based index of equity securities widely regarded as a
general measure of the performance of the U.S. equity securities market. The
Fund's performance is also compared to the Russell 1000(R) Growth Index, an
index of large-cap U.S. companies with a greater-than-average growth
orientation. Index performance reflects the reinvestment of dividends but does
not consider the effect of capital gains or transaction costs, and none of the
data in the graphs that follow shows the effect of taxes. The Fund's
performance reflects the effects of Fund business and operating expenses. While
index comparisons may be useful to provide a benchmark for the Fund's
performance, it must be noted that the Fund's investments are not limited to
the investments in the indices.
11 Oppenheimer Large Cap Growth Fund
<PAGE> 12
FUND PERFORMANCE
- -------------------------------------------------------------------------------
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Large Cap Growth Fund (Class A), S&P 500 and Russell 1000(R) Growth
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Large Cap Russell 1000
Growth Fund Class A S&P 500 Growth Index
--------------------- ------- ------------
<S> <C> <C> <C>
12/17/98 9,425 10,000 10,000
7/31/99 11,244 10,887 10,694
</TABLE>
CUMULATIVE TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 7/31/99(1)
LIFE 12.44%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Large Cap Growth Fund (Class B), S&P 500 and Russell 1000(R) Growth
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Large Cap Russell 1000
Growth Fund Class B S&P 500 Growth Index
--------------------- ------- ------------
<S> <C> <C> <C>
3/1/99 10,000 10,000 10,000
7/31/99 10,845 10,786 10,584
</TABLE>
CUMULATIVE TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 7/31/99(2)
LIFE 8.45%
The returns and the ending account values in the graphs show change in
share value and include reinvestment of all dividends and capital gains
distributions. The performance information for both indices in the graphs
begins on 12/31/98 for Class A and Class Y shares, and 2/28/99 for Class B and
Class C shares.
1. The inception of the Class A shares was 12/17/98. The cumulative total
return shown is net of the applicable 5.75% maximum initial sales charge.
2. Class B shares of the Fund were first publicly offered on 3/1/99. The
cumulative total return shown is net of the applicable 5% contingent deferred
sales charges.
12 Oppenheimer Large Cap Growth Fund
<PAGE> 13
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Large Cap Growth Fund (Class C), S&P 500 and Russell 1000(R) Growth
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Large Cap Russell 1000
Growth Fund Class C S&P 500 Growth Index
--------------------- ------- ------------
<S> <C> <C> <C>
3/1/99 10,000 10,000 10,000
7/31/99 11,245 10,786 10,584
</TABLE>
CUMULATIVE TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 7/31/99(3)
LIFE 12.45%
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Large Cap Growth Fund (Class Y), S&P 500 and Russell 1000(R) Growth
Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Large Cap Russell 1000
Growth Fund Class Y S&P 500 Growth Index
--------------------- ------- ------------
<S> <C> <C> <C>
12/17/98 10,000 10,000 10,000
7/31/99 11,950 10,887 10,694
</TABLE>
CUMULATIVE TOTAL RETURN OF CLASS Y SHARES OF THE FUND AT 7/31/99(4)
LIFE 19.50%
3. Class C shares of the Fund were first publicly offered on 3/1/99. The
cumulative total return shown is net of the applicable 1% contingent deferred
sales charge.
4. The inception date for Class Y shares was 12/17/98. Class Y shares are
offered to certain institutional investors under special agreement with the
distributor.
Past performance is not predictive of future performance. Graphs are not drawn
to same scale.
13 Oppenheimer Large Cap Growth Fund
<PAGE> 14
STATEMENT OF INVESTMENTS July 31, 1999
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================
<S> <C> <C>
COMMON STOCKS--88.8%
- --------------------------------------------------------------------
CAPITAL GOODS--10.6%
- --------------------------------------------------------------------
AEROSPACE/DEFENSE--0.9%
Cordant Technologies, Inc. 1,600 $ 71,700
- --------------------------------------------------------------------
ELECTRICAL EQUIPMENT--6.9%
General Electric Co. 3,200 348,800
- --------------------------------------------------------------------
Sanmina Corp.(1) 1,100 71,844
- --------------------------------------------------------------------
SPX Corp.(1) 800 68,000
- --------------------------------------------------------------------
Symbol Technologies, Inc. 2,100 82,556
---------
571,200
- --------------------------------------------------------------------
INDUSTRIAL SERVICES--0.7%
National Data Corp. 1,300 54,275
- --------------------------------------------------------------------
MANUFACTURING--2.1%
AlliedSignal, Inc. 1,500 97,031
- --------------------------------------------------------------------
Teleflex, Inc. 1,600 80,600
---------
177,631
- --------------------------------------------------------------------
COMMUNICATION SERVICES--0.5%
- --------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE--0.5%
MCI World Com, Inc.(1) 500 41,250
- --------------------------------------------------------------------
CONSUMER CYCLICALS--19.7%
- --------------------------------------------------------------------
AUTOS & HOUSING--1.8%
Fastenal Co. 1,200 70,950
- --------------------------------------------------------------------
Maytag Corp. 1,100 76,587
---------
147,537
- --------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.9%
MGM Grand, Inc.(1) 1,600 72,300
- --------------------------------------------------------------------
RETAIL: GENERAL--3.0%
Dayton Hudson Corp. 1,500 97,031
- --------------------------------------------------------------------
Family Dollar Stores, Inc. 3,000 62,812
- --------------------------------------------------------------------
Saks, Inc.(1) 2,600 59,800
- --------------------------------------------------------------------
Wal-Mart Stores, Inc. 700 29,575
---------
249,218
- --------------------------------------------------------------------
RETAIL: SPECIALTY--11.6%
American Eagle Outfitters, Inc.(1) 1,200 46,350
- --------------------------------------------------------------------
Bed Bath & Beyond, Inc.(1) 1,100 37,331
- --------------------------------------------------------------------
Best Buy Co., Inc.(1) 1,100 82,087
- --------------------------------------------------------------------
Circuit City Stores-Circuit City Group 1,600 75,600
- --------------------------------------------------------------------
Gap, Inc. 2,400 112,200
</TABLE>
14 Oppenheimer Large Cap Growth Fund
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------
<S> <C> <C>
RETAIL; SPECIALTY (CONTINUED)
Intimate Brands, Inc., Cl. A 1,665 $ 71,699
- --------------------------------------------------------------------
Limited, Inc. 1,700 77,669
- --------------------------------------------------------------------
Lowe's Cos., Inc. 1,500 79,125
- --------------------------------------------------------------------
Ross Stores, Inc. 1,600 77,000
- --------------------------------------------------------------------
Tandy Corp. 1,600 82,100
- --------------------------------------------------------------------
Tiffany & Co. 1,600 80,500
- --------------------------------------------------------------------
TJX Cos., Inc. 2,700 89,269
- --------------------------------------------------------------------
Zale Corp.(1) 1,100 44,000
---------
954,930
- --------------------------------------------------------------------
TEXTILE/APPAREL & HOME FURNISHINGS--2.4%
Jones Apparel Group, Inc.(1) 2,200 72,325
- --------------------------------------------------------------------
Mohawk Industries, Inc.(1) 2,100 58,669
- --------------------------------------------------------------------
WestPoint Stevens, Inc. 2,500 68,125
---------
199,119
- --------------------------------------------------------------------
CONSUMER STAPLES--2.9%
- --------------------------------------------------------------------
BEVERAGES--0.8%
Coca-Cola Co. (The) 1,100 66,344
- --------------------------------------------------------------------
ENTERTAINMENT--0.8%
Outback Steakhouse, Inc.(1) 2,100 70,087
- --------------------------------------------------------------------
FOOD & DRUG RETAILERS--0.8%
U.S. Foodservice, Inc.(1) 1,500 63,656
- --------------------------------------------------------------------
HOUSEHOLD GOODS--0.5%
Procter & Gamble Co. 500 45,250
- --------------------------------------------------------------------
ENERGY--1.0%
- --------------------------------------------------------------------
ENERGY SERVICES--1.0%
Dynegy, Inc. 3,500 84,000
- --------------------------------------------------------------------
FINANCIAL--2.8%
- --------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.8%
Associates First Capital Corp., Cl. A 900 34,481
- --------------------------------------------------------------------
Freddie Mac 1,700 97,537
- --------------------------------------------------------------------
Schwab (Charles) Corp. 2,300 101,344
---------
233,362
- --------------------------------------------------------------------
HEALTHCARE--13.1%
- --------------------------------------------------------------------
HEALTHCARE/DRUGS--6.7%
Amgen, Inc.(1) 1,700 130,687
- --------------------------------------------------------------------
Biogen, Inc.(1) 1,200 82,575
- --------------------------------------------------------------------
Bristol-Myers Squibb Co. 300 19,950
- --------------------------------------------------------------------
Chiron Corp.(1) 3,400 85,212
</TABLE>
15 Oppenheimer Large Cap Growth Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/DRUGS (CONTINUED)
Genzyme Corp. (General Division)(1) 1,500 $ 84,844
- --------------------------------------------------------------------
Genzyme Surgical Products(1) 268 1,415
- --------------------------------------------------------------------
Johnson & Johnson 100 9,212
- --------------------------------------------------------------------
Medimmune, Inc.(1) 600 47,925
- --------------------------------------------------------------------
Merck & Co., Inc. 800 54,150
- --------------------------------------------------------------------
Pfizer, Inc. 1,000 33,938
---------
549,908
- --------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--6.4%
Bausch & Lomb, Inc. 900 64,631
- --------------------------------------------------------------------
Boston Scientific Corp.(1) 2,100 85,181
- --------------------------------------------------------------------
Guidant Corp. 1,500 87,844
- --------------------------------------------------------------------
Lincare Holdings, Inc.(1) 2,100 63,000
- --------------------------------------------------------------------
Sybron Corp. of Delaware(1) 2,600 77,513
- --------------------------------------------------------------------
United Healthcare Corp. 1,300 79,300
- --------------------------------------------------------------------
Universal Health Services, Inc., Cl. B(1) 1,600 68,100
---------
525,569
- --------------------------------------------------------------------
TECHNOLOGY--38.2%
- --------------------------------------------------------------------
COMPUTER HARDWARE--6.8%
Adaptec, Inc.(1) 2,000 77,750
- --------------------------------------------------------------------
Apple Computer, Inc.(1) 1,500 83,531
- --------------------------------------------------------------------
Comdisco, Inc. 3,000 72,375
- --------------------------------------------------------------------
Hewlett-Packard Co. 1,300 136,094
- --------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 1,200 75,600
- --------------------------------------------------------------------
Sun Microsystems, Inc.(1) 1,700 115,388
---------
560,738
- --------------------------------------------------------------------
COMPUTER SERVICES--1.8%
DST Systems, Inc.(1) 1,200 79,650
- --------------------------------------------------------------------
Gartner Group, Inc., Cl. A 3,300 73,219
---------
152,869
- --------------------------------------------------------------------
COMPUTER SOFTWARE--13.1%
Adobe Systems, Inc. 1,000 85,750
- --------------------------------------------------------------------
America Online, Inc.(1) 1,600 152,200
- --------------------------------------------------------------------
Computer Associates International, Inc. 1,800 82,575
- --------------------------------------------------------------------
Computer Sciences Corp.(1) 1,200 77,250
- --------------------------------------------------------------------
Compuware Corp.(1) 2,600 72,150
- --------------------------------------------------------------------
CSG Systems International, Inc.(1) 1,500 33,375
- --------------------------------------------------------------------
Intuit, Inc.(1) 800 65,450
</TABLE>
16 Oppenheimer Large Cap Growth Fund
<PAGE> 17
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE (CONTINUED)
Microsoft Corp.(1) 3,500 $ 300,344
- --------------------------------------------------------------------
Siebel Systems, Inc.(1) 1,300 76,863
- --------------------------------------------------------------------
Sterling Commerce, Inc.(1) 2,000 52,500
- --------------------------------------------------------------------
Unisys Corp.(1) 2,100 85,706
----------
1,084,163
- --------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--8.0%
Cisco Systems, Inc.(1) 2,900 180,163
- --------------------------------------------------------------------
Lucent Technologies, Inc. 3,900 253,744
- --------------------------------------------------------------------
QUALCOMM, Inc.(1) 500 78,000
- --------------------------------------------------------------------
Scientific-Atlanta, Inc. 2,000 73,000
- --------------------------------------------------------------------
Tellabs, Inc.(1) 1,200 73,875
---------
658,782
- --------------------------------------------------------------------
ELECTRONICS--8.5%
Intel Corp. 2,900 200,100
- --------------------------------------------------------------------
JDS Uniphase Corp.(1) 800 72,300
- --------------------------------------------------------------------
Motorola, Inc. 1,000 91,250
- --------------------------------------------------------------------
Texas Instruments, Inc. 900 129,600
- --------------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 700 44,713
- --------------------------------------------------------------------
Waters Corp.(1) 1,400 83,650
- --------------------------------------------------------------------
Xilinx, Inc.(1) 1,300 81,088
---------
702,701
---------
Total Common Stocks (Cost $6,809,074) 7,336,589
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
====================================================================
<S> <C> <C>
REPURCHASE AGREEMENTS--9.7%
- --------------------------------------------------------------------
Repurchase agreement with PaineWebber,
Inc., 5.03%, dated 7/30/99, to be
repurchased at $800,335 on 8/2/99,
collateralized by U.S. Treasury Bonds,
7.625%, 2/15/07, with a value of
$213,824, and U.S. Treasury Nts.,
4%--7.125%, 2/29/00, with a value of
$603,196 (Cost $800,000) $800,000 800,000
- --------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $7,609,074) 98.5% 8,136,589
- --------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.5 125,608
------- ----------
NET ASSETS 100.0% $8,262,197
======= ==========
</TABLE>
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
17 Oppenheimer Large Cap Growth Fund
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1999
<TABLE>
====================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $7,609,074)--see accompanying statement $8,136,589
- ----------------------------------------------------------------------------------------------------
Cash 63,484
- ----------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 80,932
Interest and dividends 440
Other 1,174
------------
Total assets 8,282,619
====================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 10,270
Shareholder reports 3,258
Registration and filing fees 2,370
Legal, auditing and other professional fees 1,730
Distribution and service plan fees 1,640
Transfer and shareholder servicing agent fees 753
Other 401
------------
Total liabilities 20,422
====================================================================================================
NET ASSETS $8,262,197
============
====================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $7,635,801
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 3
- -----------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 98,878
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 527,515
------------
Net assets $8,262,197
============
</TABLE>
18 Oppenheimer Large Cap Growth Fund
<PAGE> 19
<TABLE>
====================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $6,059,316 and 507,922 shares of beneficial interest outstanding) $11.93
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $12.66
- -----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $1,764,173
and 148,424 shares of beneficial interest outstanding) $11.89
- -----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $437,513
and 36,785 shares of beneficial interest outstanding) $11.89
- -----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $1,195 and 100 shares of beneficial interest outstanding) $11.95
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Large Cap Growth Fund
<PAGE> 20
STATEMENT OF OPERATIONS
For the Period from December 17, 1998 (commencement of operations) to July 31,
1999
<TABLE>
=====================================================================================
<S> <C>
INVESTMENT INCOME
Dividends $ 14,621
- -------------------------------------------------------------------------------------
Interest 3,105
------------
Total income 17,726
=====================================================================================
EXPENSES
Management fees--Note 4 21,497
- -------------------------------------------------------------------------------------
Shareholder reports 12,022
- -------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 3,675
Class B 2,978
Class C 795
- -------------------------------------------------------------------------------------
Legal, auditing and other professional fees 5,836
- -------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 2,907
Class B 667
Class C 166
- -------------------------------------------------------------------------------------
Registration and filing fees 2,507
- -------------------------------------------------------------------------------------
Trustees' compensation--Note 1 2,399
- -------------------------------------------------------------------------------------
Custodian fees and expenses 211
- -------------------------------------------------------------------------------------
Other 464
------------
Total expenses 56,124
Less reimbursement of expenses by OppenheimerFunds, Inc.--Note 4 (4,572)
Less expenses paid indirectly--Note 1 (193)
------------
Net expenses 51,359
=====================================================================================
NET INVESTMENT LOSS (33,633)
=====================================================================================
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 130,952
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 527,515
------------
Net realized and unrealized gain 658,467
=====================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $624,834
============
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer Large Cap Growth Fund
<PAGE> 21
STATEMENT OF CHANGES
<TABLE>
<CAPTION>
PERIOD ENDED
JULY 31, 1999(1)
=====================================================================================================
<S> <C>
OPERATIONS
Net investment loss $ (33,633)
- -----------------------------------------------------------------------------------------------------
Net realized gain 130,952
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 527,515
------------
Net increase in net assets resulting from operation 624,834
=====================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions--Note 2:
Class A 5,504,074
Class B 1,709,968
Class C 422,321
Class Y 1,000
=====================================================================================================
NET ASSETS
Total increase 8,262,197
- -----------------------------------------------------------------------------------------------------
Beginning of period --
------------
End of period (including accumulated net investment income of $3 for the
period ended July 31, 1999) $8,262,197
============
</TABLE>
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999.
See accompanying Notes to Financial Statements.
21 Oppenheimer Large Cap Growth Fund
<PAGE> 22
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y
------- ------- ------- -------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
1999(1) 1999(2) 1999(2) 1999(1)
=================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.00 $10.48 $10.48 $10.00
- -------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (1.05) (1.04) (1.04) (1.03)
Net realized and unrealized gain 2.98 2.45 2.45 2.98
------ ------ ------ ------
Total income from investment
operations 1.93 1.41 1.41 1.95
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $11.93 $11.89 $11.89 $11.95
====== ====== ====== ======
=================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 19.30% 13.45% 13.45% 19.50%
=================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $6,059 $1,764 $438 $1
- -------------------------------------------------------------------------------------------------
Average net assets (in thousands) $4,028 $ 722 $192 $1
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment loss (1.05)% (1.93)% (1.95)% (0.72)%
Expenses, before reimbursement
and indirect expenses 1.81% 2.92% 2.90% 1.65%
Expenses, after reimbursement
and indirect expenses 1.65% 2.75% 2.73% 1.50%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 157% 157% 157% 157%
</TABLE>
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999.
2. For the period from March 1, 1999 (inception of offering) to July 31, 1999.
3. 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. Total returns are not annualized for periods of less than
one full year.
4. Annualized for periods of less than one full year.
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 July 31, 1999, were $14,032,069 and $7,353,947,
respectively.
See accompanying Notes to Financial Statements.
22 Oppenheimer Large Cap Growth Fund
<PAGE> 23
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Large Cap Growth 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, on investments up to $1 million.
Class B and Class C shares may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. 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.
- --------------------------------------------------------------------------------
SECURITIES 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 exchange 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.
23 Oppenheimer Large Cap Growth Fund
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
- --------------------------------------------------------------------------------
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.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual compensation they are entitled to receive from the Fund. Under
the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Trustees in shares of one or more
Oppenheimer funds selected by the Trustee. The amount paid to the Trustee under
the plan will be determined based upon the performance of the selected funds.
Deferral of Trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
income per share.
24 Oppenheimer Large Cap Growth Fund
<PAGE> 25
================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
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 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.
The Fund adjusts the classification of distributions to shareholders
to reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
period ended July 31, 1999, amounts have been reclassified to reflect a decrease
in paid-in capital of $1,562, a decrease in accumulated net investment loss of
$33,636, and a decrease in accumulated net realized gain on investments of
$32,074.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments 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.
25 Oppenheimer Large Cap Growth Fund
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
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>
PERIOD ENDED JULY 31, 1999(1)(2)
--------------------------------
SHARES AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
Class A:
Sold 594,395 $6,469,402
Redeemed (86,473) (965,328)
------- ----------
Net increase 507,922 $5,504,074
======= ==========
- --------------------------------------------------------------------------------
Class B:
Sold 151,712 $1,750,100
Redeemed (3,288) (40,132)
------- ----------
Net increase 148,424 $1,709,968
======= ==========
- --------------------------------------------------------------------------------
Class C:
Sold 39,237 $ 452,446
Redeemed (2,452) (30,125)
------- ----------
Net increase 36,785 $ 422,321
======= ==========
- --------------------------------------------------------------------------------
Class Y:
Sold 100 $ 1,000
------- ----------
Net increase 100 $ 1,000
======= ==========
</TABLE>
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999, for Class A and Class Y.
2. For the period from March 1, 1999 (inception of offering) to July 31, 1999,
for Class B and Class C.
=============================================================================
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of July 31, 1999, net unrealized appreciation on securities of $527,515 was
composed of gross appreciation of $730,365, and gross depreciation of $202,850.
26 Oppenheimer Large Cap Growth Fund
<PAGE> 27
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee of
0.75% of the first $200 million of average annual net assets, 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
annualized management fee for the period ended July 31, 1999, was 0.75% of
average annual net assets for each class of shares. The Manager has voluntarily
reimbursed certain Fund expenses.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund and for
other Oppenheimer funds. OFS's total costs of providing such services are
allocated ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
<TABLE>
<CAPTION>
CLASS A
AGGREGATE FRONT-END COMMISSIONS ON COMMISSIONS ON COMMISSIONS ON
FRONT-END SALES SALES CHARGES CLASS A SHARES CLASS B SHARES CLASS C SHARES
PERIOD CHARGES ON RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
ENDED CLASS A SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
July 31, 1999 $36,309 $13,155 $1,675 $20,956 $1,186
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CONTINGENT CLASS B CONTINGENT DEFERRED CLASS C CONTINGENT DEFERRED
PERIOD DEFERRED SALES CHARGES SALES CHARGES RETAINED BY SALES CHARGES RETAINED BY
ENDED RETAINED BY DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
July 31, 1999 $-- $-- $--
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
27 Oppenheimer Large Cap Growth Fund
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements
to the Distributor at a rate of up to 0.25% of average annual net assets of
Class A shares. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the fiscal year ended July 31, 1999,
payments under the Class A Plan totaled $3,675, all of which was paid by the
Distributor to recipients. Any unreimbursed expenses the Distributor incurs
with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan,
service fees and distribution fees are computed on the average of the net asset
value of shares in the respective class, determined as of the close of each
regular business day during the period. The Class B and Class C plans provide
for the Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B
shares. The Distributor retains the asset-based sales charge on Class C shares
during the first year the shares are outstanding. The asset-based sales charges
on Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
The Distributor's actual expenses in selling Class B and Class C
shares may be more than the payments it receives from the contingent deferred
sales charges collected on redeemed shares and from the Fund under the plans.
If either the Class B or the Class C plan is terminated by the Fund, the Board
of Trustees may allow the Fund to continue payments of the asset-based sales
charge to the Distributor for distributing shares before the plan was
terminated. The plans allow for the carry-forward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
28 Oppenheimer Large Cap Growth Fund
<PAGE> 29
================================================================================
Distribution fees paid to the Distributor for the period ended July 31, 1999,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S
DISTRIBUTOR'S AGGREGATE UNREIMBURSED
TOTAL PAYMENTS AMOUNT RETAINED UNREIMBURSED EXPENSES EXPENSES AS % OF
CLASS UNDER PLAN BY DISTRIBUTOR UNDER PLAN NET ASSETS OF CLASS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $2,978 $1,193 $17,102 0.97%
Class C Plan $-- $-- $1,929 0.44%
</TABLE>
================================================================================
5. 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 period ended July
31, 1999.
29 Oppenheimer Large Cap Growth Fund
<PAGE> 30
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer Large Cap Growth Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Large Cap Growth Fund as of July
31, 1999, and the related statement of operations, statement of changes in net
assets and financial highlights for the period from December 17, 1998
(commencement of operations) to July 31, 1999. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 1999, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Large Cap Growth Fund as of July 31, 1999, and the
results of its operations, the changes in its net assets and financial
highlights for the period from December 17, 1998 (commencement of operations)
to July 31, 1999, in conformity with generally accepted accounting principles.
KPMG LLP
Denver, Colorado
August 20, 1999
30 Oppenheimer Large Cap Growth Fund
<PAGE> 31
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 2000 shareholders will receive information regarding all
dividends and distributions paid to them by the Fund during calendar year 1999.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
31 Oppenheimer Large Cap Growth Fund
<PAGE> 32
OPPENHEIMER LARGE CAP GROWTH FUND
================================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Bruce L. Bartlett, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
================================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER
SERVICING AGENT
================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT AUDITORS KPMG LLP
================================================================================
LEGAL COUNSEL Mayer, Brown & Platt
This is a copy of a report to shareholders of
Oppenheimer Large Cap Growth Fund. This report must be
preceded or accompanied by a Prospectus of Oppenheimer
Large Cap Growth 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.
32 Oppenheimer Large Cap Growth Fund
<PAGE> 33
OPPENHEIMERFUNDS FAMILY
<TABLE>
<CAPTION>
===================================================================================================
<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(R) 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.
33 Oppenheimer Large Cap Growth Fund
<PAGE> 34
[This page intentionally left blank.]
<PAGE> 35
INFORMATION AND SERVICES
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[OPPENHEIMERFUNDS LOGO]
RA0775.001.0799 September 29,1999
