<PAGE>
[FRONT COVER]
1999 SEMIANNUAL REPORT
Oppenheimer
Large Cap Growth Fund
- ----------------------
January 31, 1999
[LOGO]OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
Bridget A. Macaskill
President
Oppenheimer
Large Cap Growth Fund
Contrary to what many analysts had expected, the U.S. economy appears to have
picked up steam over the past few months. The fourth quarter of 1998 posted the
fastest rate of economic growth in two years, and early indications suggest that
the first quarter of 1999 may follow suit.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat. What's more, the disparity
in valuations between large companies, which have led the market's advance, and
smaller ones, which have lagged, has become historically wide.
What do these observations mean for your investments? In our view,
actively managed portfolios that are closely monitored by expert money managers
are likely to provide better returns than passive index investing in 1999.
That's because selectivity is expected to be more critical to performance than
it has been over the past few years. In a potentially overvalued stock market
and rising interest-rate environment, the ability to identify the most promising
securities could become paramount.
Even though many equity investors may be tempted to jump aboard the
technology bandwagon, we suggest a more prudent course: broad diversification
beyond any single asset class, industry, capitalization range or geographic
region. We believe that the risks of this investment environment require
consideration of a broad range of investments and markets, including bonds. That
way, if one market experiences setbacks, one or more of the others may help
cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/Bridget A. Macaskill
Bridget A. Macaskill
February 22, 1999
2 Oppenheimer Large Cap Growth Fund
<PAGE>
Bob Doll
Portfolio Manager
Q+A
An interview with your Fund's manager.
LET'S DISCUSS YOUR INVESTMENT APPROACH.
Our investment approach for the Fund combines disciplined quantitative analysis
with traditional fundamental analysis to uncover attractive investment
opportunities that we believe will provide growth at a reasonable price.
On the quantitative side, we have developed a sophisticated quantitative model
that evaluates factors related to the nearly 600 stocks in the Russell 1000
Growth Index. This computer model looks at a variety of data to determine which
areas of the stock market may offer the best prospects. In particular, we look
for companies that demonstrate strong relative earnings growth and good current
momentum, as well as having attractive valuations.
After the computer model has completed its work, we look carefully at the stocks
in the top quartile of the model's rankings. We evaluate such factors as each
company's quality of management, competitive forces and legal or accounting
issues. We also evaluate the costs associated with trading the stocks we're
considering.
HOW HAVE YOU STRUCTURED THE PORTFOLIO?
The Fund holds approximately 80 companies. However, the three largest sector
allocations in the portfolio include technology, health care and specialty
retail companies. (1)
We believe that technology, despite periods of short-term volatility, is a core
long-term growth sector that has many favorably priced stocks and improving
fundamentals. Within this area we've emphasized companies related to the most
promising technologies, including the Internet. In particular, one of the
portfolio's largest holdings is Microsoft Corp., which develops, manufactures,
licenses and supports a range of software products, including scalable operating
systems, server applications, business and consumer productivity applications,
software development tools and Internet software and technologies. Microsoft,
which is currently battling an antitrust litigation, is one of the best-known
names in the software and programming industry. It has also been one of the
companies leading the way in this area of technology, and has enjoyed
consistent earnings growth.
We've also focused on healthcare, specifically pharmaceutical and biotechnology
companies. Amgen, Inc. is just one example. Amgen is a biotechnology company
that recently released a new FDA-approved product for the treatment of hepatitis
C. This eagerly anticipated treatment holds tremendous potential for infected
individuals. As a result, the company, as well as the Fund, has benefited.
The inception date of the Fund (Class A shares) was 12/17/98.
2. By prospectus, the Fund will generally invest 5% or less of its total assets
in cash, cash equivalents or U.S. Government securities.
3 Oppenheimer Large Cap Growth Fund
<PAGE>
Finally, the Fund's holdings in specialty retail companies have also boosted
performance. Retail and consumer cyclical sectors traditionally have benefited
from lower interest rates.
WHAT DO YOU SEE IN STORE FOR 1999?
Looking forward, we expect a different kind of market environment in 1999. We
continue to believe that the U.S. economy is likely to slow from the past year's
robust pace. With one-third of the world currently in recession, the adverse
effects of lower global demand for U.S. goods and services should become more
pronounced in 1999. As the U.S. economy slows, we expect consumer spending and
capital investment to moderate from last year's levels. We do not, however,
expect a recession. Persistently low inflation and the Federal Reserve's
accommodative monetary policy may lead to modestly lower interest rates, which
should keep the U.S. economy growing, albeit at a slower pace.
HOW WILL YOU MANAGE THE FUND IN LIGHT OF THIS OUTLOOK?
We believe that selectivity will be the key to investing during the coming year.
In a stock market environment with less potential for broad-based gains, the
ability to identify the most promising industries, companies and securities will
become even more essential. Therefore, we believe that a disciplined investment
approach, combined with in-depth research into individual investment
opportunities is likely to produce the best return potential. It's just one of
the reasons why Oppenheimer Large Cap Growth Fund is an important part of The
Right Way to Invest.//
2. The Fund's portfolio is subject to change.
4 Oppenheimer Large Cap Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================
COMMON STOCKS - 98.8%
- --------------------------------------------------------------------------------------------------------------------
Capital Goods - 12.5%
- --------------------------------------------------------------------------------------------------------------------
Aerospace/Defense - 0.5%
<S> <C> <C> <C>
Gulfstream Aerospace Corp. (1) 300 $ 16,500
- --------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 7.2%
General Electric Co. 1,100 115,362
- --------------------------------------------------------------------------------------------------------------------
Sanmina Corp. (1) 500 33,000
- --------------------------------------------------------------------------------------------------------------------
Solectron Corp. (1) 400 35,625
- --------------------------------------------------------------------------------------------------------------------
Symbol Technologies, Inc. 500 31,500
---------
215,487
- --------------------------------------------------------------------------------------------------------------------
Industrial Services - 1.9%
Reynolds & Reynolds Co., Cl. A 1,500 30,000
- --------------------------------------------------------------------------------------------------------------------
Service Corp. International 1,700 26,987
---------
56,987
- --------------------------------------------------------------------------------------------------------------------
Manufacturing - 2.9%
American Standard Cos., Inc. (1) 900 30,937
- --------------------------------------------------------------------------------------------------------------------
Herman Miller, Inc. 1,300 24,619
- --------------------------------------------------------------------------------------------------------------------
Pentair, Inc. 800 30,600
---------
86,156
- --------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 13.4%
- --------------------------------------------------------------------------------------------------------------------
Autos & Housing - 2.1%
Ethan Allen Interiors, Inc. 600 28,650
- --------------------------------------------------------------------------------------------------------------------
USG Corp. 600 34,050
---------
62,700
- --------------------------------------------------------------------------------------------------------------------
Media - 0.9%
Times Mirror Co. (The), Cl. A 500 27,531
- --------------------------------------------------------------------------------------------------------------------
Retail: General - 4.2%
Dollar Tree Stores, Inc. (1) 600 25,912
- --------------------------------------------------------------------------------------------------------------------
Mohawk Industries, Inc. (1) 800 30,800
- --------------------------------------------------------------------------------------------------------------------
Saks, Inc. (1) 800 29,450
- --------------------------------------------------------------------------------------------------------------------
Shaw Industries, Inc. 500 10,594
- --------------------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc. (1) 1,100 29,253
---------
126,009
- --------------------------------------------------------------------------------------------------------------------
Retail: Specialty - 6.2%
Best Buy Co., Inc. (1) 400 36,300
- --------------------------------------------------------------------------------------------------------------------
Gap, Inc. 300 19,256
- --------------------------------------------------------------------------------------------------------------------
Intimate Brands, Inc., Cl. A 800 31,900
- --------------------------------------------------------------------------------------------------------------------
Lowe's Cos., Inc. 500 29,156
- --------------------------------------------------------------------------------------------------------------------
Ross Stores, Inc. 300 11,850
- --------------------------------------------------------------------------------------------------------------------
Tech Data Corp. (1) 1,000 31,375
- --------------------------------------------------------------------------------------------------------------------
TJX Cos., Inc. 900 26,606
---------
186,443
- --------------------------------------------------------------------------------------------------------------------
Consumer Staples - 7.9%
- --------------------------------------------------------------------------------------------------------------------
Beverages - 0.4%
Coca-Cola Co. (The) 200 13,087
</TABLE>
5 Oppenheimer Large Cap Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
Consumer Services - 0.8%
<S> <C> <C> <C>
Kelly Services, Inc., Cl. A 900 $ 24,975
- --------------------------------------------------------------------------------------------------------------------
Entertainment - 3.0%
Brinker International, Inc. (1) 1,100 30,250
- --------------------------------------------------------------------------------------------------------------------
CKE Restaurants, Inc. 1,300 30,875
- --------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc. (1) 800 29,200
---------
90,325
- --------------------------------------------------------------------------------------------------------------------
Food - 2.0%
Flowers Industries, Inc. 1,300 31,281
- --------------------------------------------------------------------------------------------------------------------
Suiza Foods Corp. (1) 800 28,450
---------
59,731
- --------------------------------------------------------------------------------------------------------------------
Food & Drug Retailers - 1.5%
Bergen Brunswig Corp., Cl. A 1,000 28,000
- --------------------------------------------------------------------------------------------------------------------
U.S. Foodservice, Inc. (1) 300 15,750
---------
43,750
- --------------------------------------------------------------------------------------------------------------------
Tobacco - 0.2%
Philip Morris Cos., Inc. 100 4,700
- --------------------------------------------------------------------------------------------------------------------
Financial - 2.7%
- --------------------------------------------------------------------------------------------------------------------
Diversified Financial - 2.7%
Countrywide Credit Industries, Inc. 700 33,250
- --------------------------------------------------------------------------------------------------------------------
Freddie Mac 800 49,600
---------
82,850
- --------------------------------------------------------------------------------------------------------------------
Healthcare - 15.5%
- --------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs - 6.4%
Amgen, Inc. (1) 400 51,125
- --------------------------------------------------------------------------------------------------------------------
Biogen, Inc. (1) 300 29,475
- --------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 50 6,409
- --------------------------------------------------------------------------------------------------------------------
Genzyme Corp. (General Division) (1) 400 21,800
- --------------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 200 29,350
- --------------------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 1,000 30,500
- --------------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 200 25,725
---------
194,384
- --------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 9.1%
Becton, Dickinson & Co. 900 32,175
- --------------------------------------------------------------------------------------------------------------------
Biomet, Inc. 800 29,300
- --------------------------------------------------------------------------------------------------------------------
Guidant Corp. 200 11,787
- --------------------------------------------------------------------------------------------------------------------
Lincare Holdings, Inc. (1) 600 21,000
- --------------------------------------------------------------------------------------------------------------------
Omnicare, Inc. 1,000 30,625
- --------------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp. (1) 600 31,050
- --------------------------------------------------------------------------------------------------------------------
Steris Corp. (1) 1,000 30,125
- --------------------------------------------------------------------------------------------------------------------
United Healthcare Corp. 700 31,325
- --------------------------------------------------------------------------------------------------------------------
Universal Health Services, Inc., Cl. B (1) 600 26,850
- --------------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. (1) 400 29,925
---------
274,162
</TABLE>
6 Oppenheimer Large Cap Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
Technology - 43.4%
- --------------------------------------------------------------------------------------------------------------------
Computer Hardware - 10.6%
<S> <C> <C> <C>
3Com Corp. (1) 700 $ 32,900
- --------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (1) 300 33,469
- --------------------------------------------------------------------------------------------------------------------
Dell Computer Corp. (1) 100 10,000
- --------------------------------------------------------------------------------------------------------------------
Diebold, Inc. 800 27,200
- --------------------------------------------------------------------------------------------------------------------
EMC Corp. (1) 100 10,888
- --------------------------------------------------------------------------------------------------------------------
Gateway 2000, Inc. (1) 500 38,625
- --------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 200 36,650
- --------------------------------------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A (1) 300 33,938
- --------------------------------------------------------------------------------------------------------------------
Pitney Bowes, Inc. 100 6,881
- --------------------------------------------------------------------------------------------------------------------
Seagate Technology, Inc. (1) 800 32,550
- --------------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc. (1) 500 55,875
---------
318,976
- --------------------------------------------------------------------------------------------------------------------
Computer Software/Services - 18.2%
Adobe Systems, Inc. 600 28,650
- --------------------------------------------------------------------------------------------------------------------
America Online, Inc. (1) 200 35,138
- --------------------------------------------------------------------------------------------------------------------
BMC Software, Inc. (1) 700 32,681
- --------------------------------------------------------------------------------------------------------------------
Computer Sciences Corp. (1) 400 27,425
- --------------------------------------------------------------------------------------------------------------------
Compuware Corp. (1) 500 33,125
- --------------------------------------------------------------------------------------------------------------------
DST Systems, Inc. (1) 500 30,969
- --------------------------------------------------------------------------------------------------------------------
Microsoft Corp. (1) 900 157,500
- --------------------------------------------------------------------------------------------------------------------
Network Associates, Inc. (1) 600 31,425
- --------------------------------------------------------------------------------------------------------------------
Oracle Corp. (1) 900 49,838
- --------------------------------------------------------------------------------------------------------------------
Policy Management Systems Corp. (1) 600 32,213
- --------------------------------------------------------------------------------------------------------------------
Sabre Group Holdings, Inc. (1) 600 26,475
- --------------------------------------------------------------------------------------------------------------------
Sterling Software, Inc. (1) 1,200 28,050
- --------------------------------------------------------------------------------------------------------------------
Yahoo!, Inc. (1) 100 35,425
---------
548,914
- --------------------------------------------------------------------------------------------------------------------
Communications Equipment - 4.5%
Lucent Technologies, Inc. 900 101,306
- --------------------------------------------------------------------------------------------------------------------
Tellabs, Inc. (1) 400 34,300
---------
135,606
- --------------------------------------------------------------------------------------------------------------------
Electronics - 8.9%
Advanced Micro Devices, Inc. (1) 1,200 27,525
- --------------------------------------------------------------------------------------------------------------------
Intel Corp. 1,100 155,031
- --------------------------------------------------------------------------------------------------------------------
National Semiconductor Corp. (1) 2,200 28,463
- --------------------------------------------------------------------------------------------------------------------
Vitesse Semiconductor Corp. (1) 600 31,013
- --------------------------------------------------------------------------------------------------------------------
Waters Corp. (1) 300 27,300
---------
269,332
- --------------------------------------------------------------------------------------------------------------------
Photography - 1.2%
Xerox Corp. 300 37,200
- --------------------------------------------------------------------------------------------------------------------
Telecommunications - 2.4%
- --------------------------------------------------------------------------------------------------------------------
Telephone Utilities - 0.4%
Bell Atlantic Corp. 200 12,000
</TABLE>
7 Oppenheimer Large Cap Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
Telecommunications/Technology - 2.0%
<S> <C> <C> <C>
Sprint Corp. 400 $ 33,550
- --------------------------------------------------------------------------------------------------------------------
United States Cellular Corp. (1) 600 26,963
-----------
60,513
- --------------------------------------------------------------------------------------------------------------------
Utilities - 1.0%
- --------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.0%
CalEnergy, Inc. (1) 900 28,688
- --------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $2,780,811) 98.8% 2,977,006
- --------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.2 37,417
------ -----------
Net Assets 100.0% $3,014,423
====== ===========
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Large Cap Growth Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES January 31, 1999 (Unaudited)
<TABLE>
==========================================================================================================================
ASSETS
<S> <C>
Investments, at value (cost $2,780,811) - see accompanying statement $2,977,006
- --------------------------------------------------------------------------------------------------------------------------
Cash 216,268
- --------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 80,675
Shares of beneficial interest sold 37,936
Interest 546
-----------
Total assets 3,312,431
==========================================================================================================================
LIABILITIES
Payables and other liabilities:
Investments purchased 296,957
Distribution and service plan fees 560
Other 491
-----------
Total liabilities 298,008
==========================================================================================================================
NET ASSETS $3,014,423
===========
==========================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $2,805,681
- --------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (2,670)
- --------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 15,217
- --------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 196,195
-----------
Net assets $3,014,423
===========
==========================================================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$3,013,293 and 266,696 shares of beneficial interest outstanding) $11.30
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $11.99
- --------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $1,130 and 100 shares of beneficial interest outstanding) $11.30
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Large Cap Growth Fund
<PAGE>
STATEMENT OF OPERATIONS For the Period Ended January 31, 1999 (Unaudited)(1)
<TABLE>
==========================================================================================================================
INVESTMENT INCOME
<S> <C>
Dividends $895
==========================================================================================================================
EXPENSES
Management fees - Note 4 1,778
- --------------------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 649
- --------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees-Class A - Note 4 561
- --------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 393
- --------------------------------------------------------------------------------------------------------------------------
Other 184
---------
Total expenses 3,565
==========================================================================================================================
NET INVESTMENT LOSS (2,670)
==========================================================================================================================
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 15,217
- --------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 196,195
---------
Net realized and unrealized gain 211,412
- --------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $208,742
=========
</TABLE>
STATEMENT OF CHANGES
<TABLE>
<CAPTION>
PERIOD ENDED
JANUARY 31,
1999 (UNAUDITED)(1)
==========================================================================================================================
OPERATIONS
<S> <C>
Net investment loss ($2,670)
- --------------------------------------------------------------------------------------------------------------------------
Net realized gain 15,217
- --------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 196,195
-----------
Net increase in net assets resulting from operations 208,742
==========================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions - Note 2:
Class A 2,804,681
Class Y 1,000
==========================================================================================================================
NET ASSETS
Total increase 3,014,423
- --------------------------------------------------------------------------------------------------------------------------
Beginning of period --
-----------
End of period (including accumulated net investment
loss of $2,670 for the period ended January 31, 1999) $3,014,423
===========
</TABLE>
1. For the period from December 17, 1998 (commencement of operations) to January
31, 1999.
See accompanying Notes to Financial Statements.
10 Oppenheimer Large Cap Growth Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS Y
---------------- ---------------
PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31,
1999 (UNAUDITED)(1) 1999 (UNAUDITED)(1)
===================================================================================================================
PER SHARE OPERATING DATA
<S> <C> <C>
Net asset value, beginning of period $10.00 $10.00
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (.01) (.01)
Net realized and unrealized gain 1.31 1.31
- -------------------------------------------------------------------------------------------------------------------
Total income from investment operations 1.30 1.30
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.30 $11.30
======= ======
===================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 13.00% 13.00%
===================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $3,013 $1
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,945 $1
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment loss (1.11)% (0.84)%
Expenses 1.49% 1.22%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 30% 30%
</TABLE>
1. For the period from December 17, 1998 (commencement of operations) to January
31, 1999.
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. Total returns are not annualized for periods
of less than one full year.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended January 31, 1999 were $1,848,525 and $595,008,
respectively.
See accompanying Notes to Financial Statements.
11 Oppenheimer Large Cap Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 and Class Y shares. Class A
shares are sold with a front-end sales charge. All classes of shares have
identical rights to earnings, assets and voting privileges, except that
each class has its own distribution and/or service plan, expenses directly
attributable to that class and exclusive voting rights with respect to
matters affecting that class. Class A shares has a separate service plan.
No such plan has been adopted for Class Y shares. 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.
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. During the
period ended January 31, 1999, no provision was made for the Fund's
projected benefit obligations and no payments were made to retired
trustees, resulting in no accumulated liability as of January 31, 1999.
The Board of Trustees had adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all
or a portion of annual fees 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 Trustee 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.
12 Oppenheimer Large Cap Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
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. 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.
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 JANUARY 31, 1999(1)
SHARES AMOUNT
--------------------------------
Class A:
<S> <C> <C>
Sold 267,872 $ 2,817,615
Redeemed (1,176) (12,934)
--------------- --------------
Net increase 266,696 $ 2,804,681
=============== ==============
Class Y:
Sold 100 $ 1,000
Redeemed -- --
--------------- --------------
Net increase 100 $ 1,000
=============== ==============
</TABLE>
1. For the period from December 17, 1998 (commencement of operations) to
January 31, 1999.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of January 31, 1999, net unrealized appreciation on investments of
$196,195 was composed of gross appreciation of $246,585, and gross
depreciation of $50,390.
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 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 management fee for the period ended January 31, 1999 was 0.74% of
average annual net assets for Class A and Class Y shares.
For the period ended January 31, 1999, commissions (sales charges paid by
investors) on sales of Class A shares totaled $4,036.
13 Oppenheimer Large Cap Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service
and maintenance of shareholder accounts that hold Class A shares.
Reimbursement is made quarterly at an annual rate that may not exceed 0.25%
of the average annual net assets of Class A shares of the Fund. OFDI uses
the service fee to reimburse brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintenance of
accounts of their customers that hold Class A shares.
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 January 31,
1999.
14 Oppenheimer Large Cap Growth Fund
<PAGE>
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
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
Robert C. Doll, Jr., Vice President
George C. Bowen, 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 OppenheimerFunds Services
SHAREHOLDER
SERVICING AGENT
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS KPMG LLP
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statement included herein have been taken from the records of
the Fund without examination by the independent auditors.
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, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of the
principal amount invested.
15 Oppenheimer Large Cap Growth Fund
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RS0775.001.0199
