[photo of mountains]
Annual Report July 31, 2000
Oppenheimer
Large Cap Growth Fund
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
The current portfolio management team put in place a highly disciplined
investment process designed to control risks and avoid "style drift."
Excellent individual stock selections boosted the Fund's performance,
particularly in the technology and healthcare sectors.
Contents
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
12 Financial
Statements
27 Independent
Auditors' Report
28 Federal
Income Tax
Information
29 Officers and Trustees
Average Annual
Total Returns*
For the 1-Year Period
Ended 7/31/00
Class A
Without With
Sales Chg. Sales Chg.
------------------------
23.63% 16.53%
Class B
Without With
Sales Chg. Sales Chg.
------------------------
22.70% 17.70%
Class C
Without With
Sales Chg. Sales Chg.
------------------------
22.70% 21.70%
Class Y
Without With
Sales Chg. Sales Chg.
------------------------
24.27% 24.27%
*See Notes on page 10 for further details.
<PAGE>
PRESIDENT'S LETTER
[photo]
Bridget A. Macaskill
President
Oppenheimer
Large Cap
Growth Fund
Dear Shareholder,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000, in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks and
bonds. In a dramatic decline, previously high-flying technology stocks generally
fell to more reasonable valuations. At the same time, long-neglected value
stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully designed as long-term investments to help individuals and
families progress toward significant financial goals. In general, short-term
trading is risky and may compromise a well planned financial strategy. It may
also result in unforeseen adverse consequences, such as unnecessarily high tax
bills.
1 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
PRESIDENT'S LETTER
We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to monitor
areas of opportunity in the arenas in which your fund invests, as the effects of
today's changing investment environment take hold. Knowing what's going on in
the world's economies, markets and companies--and making investment decisions
designed to try to take advantage of them over the long term--is central to what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
August 21, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
Stocks and bonds have different types of investment risks; stocks are subject to
market volatility and bonds are subject to credit and interest rate risks.
2 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Q How would you characterize the Fund's performance during the one-year period
that ended July 31, 2000?
A. We are pleased with the Fund's strong performance during the recent one-year
period. Despite a volatile market and a challenging economic environment, our
disciplined stock selection process enabled us to identify and invest in some of
the best performers in the market's hottest sectors. We achieved these results
largely on the strength of the portfolio management approach we began
implementing in September 1999, when we assumed management of the Fund.
What is the Fund's current investment approach?
As in the past, Oppenheimer Large Cap Growth Fund seeks capital appreciation
from stocks of large growth-oriented companies. These include many of the best
known, fastest growing companies in the United States across a variety of
industry sectors.
The key to our management approach is our discipline in maintaining a
consistent investment strategy through changing market conditions. We seek to
avoid "style drift" by investing in stocks listed in our benchmark, the Russell
1000 Growth Index, and by allocating approximately the same percentage of the
Fund's assets to each industry sector as the Index. Rather than passively
mirroring the Index within sectors, however, we strive to add value to the Fund
and exceed the benchmark's performance by identifying and investing selectively
in the most attractive stocks within each sector. To that end, we employ a wide
range of computer-based modeling tools optimized for each sector to determine
the most attractive prospects under prevailing market conditions.
Although we have managed the Fund for less than a year, our investment
approach has stood the test of time. As portfolio managers, we have been
employing similar quantitative models for many years across a wide range of
market cycles and
3 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
conditions. In the process, we have continually worked to refine our approach,
creating a systematic, highly disciplined method of building and managing
portfolios. We believe our approach enables us to reduce investment risks while
positioning the Fund to outperform its index.
What kinds of market conditions confronted the Fund during the reporting period?
Growth-oriented stocks demonstrated considerable strength during most of the
period, supported by continued expansion of the U.S. economy, low rates of
inflation, growing evidence of global economic recovery and diminishing fears of
Y2K-related problems. These factors drove most broad market indexes sharply
higher during the last few months of 1999, with growth-oriented stocks generally
outperforming value-oriented stocks by a wide margin.
As the new year began, the threat of rising inflation remained the most
serious negative factor facing the markets. Although measurable inflation
remained low, high levels of consumer spending fueled a rate of economic growth
that many observers considered unsustainable. The Federal Reserve Board ("Fed")
raised interest rates in an effort to slow the pace of economic growth and
thereby head off inflation. The uncertainties associated with these issues
culminated in a slump in technology and other growth stocks that occurred
primarily in April and May 2000. However, better-than-expected corporate
earnings reports--along with preliminary signs that U.S. economic growth might
be slowing in response to the Fed's measures--bolstered investor confidence and
gave new impetus to growth stocks in June and July.
4 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
How did you manage the Fund in light of these conditions?
Informed by the data generated by our models, we built a diversified portfolio
of growth stocks that reflected the sector weightings of the Russell 1000 Growth
Index. As was the case with the Index, which had a technology-sector weighting
of approximately 53%, the Fund's largest sector was also technology,
representing more than 50% of assets by the end of the reporting period. Our
individual technology stock selections, which emphasized well-known industry
leaders, such as Cisco Systems, Inc. and Intel Corp., strongly outperformed the
Index's technology stocks, accounting for most of the Fund's overall results.
Such stocks maintained their value during the April and May technology slump
much better than did stocks of high-flying Internet companies with little or no
earnings. Performance also benefited from the stellar performance of our
healthcare holdings, which outperformed the Index's healthcare component.
Of course, not every stock selection or sector provided such performance. In
particular, our consumer staples holdings detracted from the Fund's returns.
However, this sector represented less than 10% of the Fund's total assets, which
limited its impact on our total return.
What is your outlook for the future?
We are heartened by indications that the Fed's actions may be reining in the
rate of U.S. economic growth. If so, the repeated interest rate increases that
have pressured equities markets for much of 2000 may be nearing an end. However,
we believe it is still too early to draw any firm conclusions regarding the
future of interest rates for the coming 12 months. Such uncertainties may keep
market volatility at an unusually high level for the foreseeable future.
Average Annual
Total Returns
For the Periods Ended 6/30/00(1)
Class A Since
1-Year Inception
--------------------------------
16.66% 25.63%
Class B Since
1-Year Inception
--------------------------------
17.76% 27.53%
Class C Since
1-Year Inception
--------------------------------
21.66% 30.29%
Class Y Since
1-Year Inception
--------------------------------
24.32% 31.08%
1. See Notes on page 10 for further details.
5 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
In this challenging and changeable environment, we continue to maintain our
unwavering focus on growth-oriented large-cap stocks. Our highly disciplined,
long-term approach to growth investing is what makes Oppenheimer Large Cap
Growth Fund an important part of The Right Way to Invest.
Sector Allocation(2)
[pie chart]
Technology 58.4%
Healthcare 16.9
Capital Goods 7.6
Consumer
Cyclicals 6.7
Consumer
Staples 3.9
Utilities 3.3
Communication
Services 1.8
Financial 0.7
Energy 0.5
Basic Materials 0.2
Top Ten Common Stock Holdings(3)
-----------------------------------------------------------
Intel Corp. 7.6%
-----------------------------------------------------------
General Electric Co. 6.7
-----------------------------------------------------------
Cisco Systems, Inc. 5.3
-----------------------------------------------------------
Sun Microsystems, Inc. 4.2
-----------------------------------------------------------
Oracle Corp. 3.9
-----------------------------------------------------------
International Business Machines Corp. 3.8
-----------------------------------------------------------
Microsoft Corp. 3.7
-----------------------------------------------------------
Merck & Co., Inc. 3.5
-----------------------------------------------------------
America Online, Inc. 3.1
-----------------------------------------------------------
Bristol-Myers Squibb Co. 2.4
2. Portfolio is subject to change. Percentages are as of July 31, 2000, and are
based on total market value of common stock holdings.
3. Portfolio is subject to change. Percentages are as of July 31, 2000, and are
based on net assets.
6 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
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, 2000, followed by a graphical
comparison of the Fund's performance to two appropriate broad-based market
indices.
Management's discussion of performance. During the fiscal year that ended July
31, 2000, the U.S. economy enjoyed strong growth. Growth-oriented equities
performed well on average until mid March 2000, when concerns over rising
interest rates hindered performance. Growth stocks slumped until late May, then
rallied again in June and July in the face of strong earnings reports and
mounting evidence that economic growth was slowing to a sustainable rate. Guided
by our quantitative investment models, we identified and invested in several
strong-performing individual stocks. Our best areas of investment were
technology and healthcare, while consumer staples detracted slightly from our
good overall performance. 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, 2000. In the case of Class A and Class Y shares,
performance is measured from commencement 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.
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 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.
7 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
FUND PERFORMANCE
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Large Cap Growth Fund (Class A) S&P 500 Index Russell 1000 Growth Index
<S> <C> <C> <C>
12/17/98 9425 10000 10000
10650 11018 11542
10405 11533 11609
7/31/99 11244 11514 11658
11564 11848 12476
12640 12157 13836
14054 12700 14811
7/31/00 13901 12547 14500
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 7/31/00(1)
1-Year 16.53% Life 22.51%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Large Cap Growth Fund (Class B) S&P 500 Index Russell 1000 Growth Index
<S> <C> <C> <C>
3/1/99 10000 10000 10000
10525 10803 10540
7/31/99 11345 10786 10584
11641 11099 11326
12702 11388 12561
14095 11896 13446
7/31/00 13920 11753 13164
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 7/31/00(1)
1-Year 17.70% Life 23.73%
1. See page 10 for further details.
8 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Large Cap Growth Fund (Class C) S&P 500 Index Russell 1000 Growth Index
<S> <C> <C> <C>
3/1/99 10000 10000 10000
10525 10803 10540
7/31/99 11345 10786 10584
11641 11099 11326
12711 11388 12561
14095 11896 13446
7/31/00 13920 11753 13164
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 7/31/00(1)
1-Year 21.70% Life 26.30%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Large Cap Growth Fund (Class Y) S&P 500 Index Russell 1000 Growth Index
<S> <C> <C> <C>
12/17/98 10000 10000 10000
11300 11018 11542
11050 11533 11609
7/31/99 11950 11514 11658
12310 11848 12476
13472 12157 13836
14992 12700 14811
7/31/00 14850 12547 14500
</TABLE>
Average Annual Total Return of Class Y Shares of the Fund at 7/31/00(1)
1-Year 24.27% Life 27.60%
A, B, C & Y index performance information began on 12/31/98, 2/28/99, 2/28/99
and 12/31/98, respectively.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
NOTES
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. The Fund's
performance may from time to time be subject to substantial short-term changes,
particularly during periods of market or interest rate volatility. For quarterly
updates on the Fund's performance, please contact your financial advisor, call
us at 1.800.525.7048 or visit our website at www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares. Please note that Oppenheimer
Large Cap Growth Fund has a limited operating history.
Class A shares were first publicly offered on 12/17/98. The average annual total
returns are shown net of the applicable 5.75% maximum initial sales charge.
Class B shares of the Fund were first publicly offered on 3/1/99. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 4% (since inception). Class B shares are subject to an
annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 3/1/99. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
Class Y shares are offered to certain institutional investors under special
arrangement with the distributor of the Fund's shares.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
Financials
11 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
STATEMENT OF INVESTMENTS July 31, 2000
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
==================================================================================
<S> <C> <C>
Common Stocks--99.9%
----------------------------------------------------------------------------------
Basic Materials--0.2%
----------------------------------------------------------------------------------
Chemicals--0.2%
Ecolab, Inc. 1,500 $ 53,719
----------------------------------------------------------------------------------
Capital Goods--7.6%
----------------------------------------------------------------------------------
Electrical Equipment--6.7%
General Electric Co. 39,400 2,026,637
----------------------------------------------------------------------------------
Manufacturing--0.9%
Danaher Corp. 3,200 163,000
----------------------------------------------------------------------------------
Honeywell International, Inc. 1,000 33,625
----------------------------------------------------------------------------------
Microchip Technology, Inc.(1) 300 20,831
----------------------------------------------------------------------------------
Millipore Corp. 900 56,587
----------
274,043
----------------------------------------------------------------------------------
Communication Services--1.8%
----------------------------------------------------------------------------------
Telecommunications: Long Distance--1.8%
Comverse Technology, Inc.(1) 500 43,875
----------------------------------------------------------------------------------
Dycom Industries, Inc.(1) 3,000 128,250
----------------------------------------------------------------------------------
Qwest Communications International, Inc.(1) 3,631 170,430
----------------------------------------------------------------------------------
WorldCom, Inc.(1) 5,400 210,937
----------
553,492
----------------------------------------------------------------------------------
Consumer Cyclicals--6.7%
----------------------------------------------------------------------------------
Consumer Services--1.7%
Omnicom Group, Inc. 6,000 510,000
----------------------------------------------------------------------------------
Media--1.4%
Dow Jones & Co., Inc. 6,400 422,000
----------------------------------------------------------------------------------
Retail: General--1.9%
Wal-Mart Stores, Inc. 10,400 571,350
----------------------------------------------------------------------------------
Retail: Specialty--1.7%
Home Depot, Inc. 1,500 77,625
----------------------------------------------------------------------------------
Target Corp. 15,000 435,000
----------
512,625
----------------------------------------------------------------------------------
Consumer Staples--3.9%
----------------------------------------------------------------------------------
Beverages--0.9%
Anheuser-Busch Cos., Inc. 3,200 257,600
----------------------------------------------------------------------------------
Broadcasting--1.8%
Clear Channel Communications, Inc.(1) 5,200 396,175
----------------------------------------------------------------------------------
Univision Communications, Inc., Cl. A(1) 1,200 149,100
----------
545,275
12 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Food--0.4%
General Mills, Inc. 2,700 $ 92,812
----------------------------------------------------------------------------------
Quaker Oats Co. 500 33,625
----------
126,437
----------------------------------------------------------------------------------
Food & Drug Retailers--0.8%
CVS Corp. 6,000 236,625
----------------------------------------------------------------------------------
Energy--0.5%
----------------------------------------------------------------------------------
Energy Services--0.5%
Weatherford International, Inc.(1) 3,800 152,237
----------------------------------------------------------------------------------
Financial--0.7%
----------------------------------------------------------------------------------
Diversified Financial--0.7%
American Express Co. 3,900 221,081
----------------------------------------------------------------------------------
Healthcare--16.9%
----------------------------------------------------------------------------------
Healthcare/Drugs--12.3%
American Home Products Corp. 3,400 180,412
----------------------------------------------------------------------------------
Andrx Corp.(1) 5,100 398,119
----------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 14,900 739,412
----------------------------------------------------------------------------------
Merck & Co., Inc. 14,700 1,053,806
----------------------------------------------------------------------------------
Pfizer, Inc. 14,500 625,312
----------------------------------------------------------------------------------
Pharmacia Corp. 12,900 706,275
----------
3,703,336
----------------------------------------------------------------------------------
Healthcare/Supplies & Services--4.6%
Health Management Assn., Inc., Cl. A(1) 1,800 28,237
----------------------------------------------------------------------------------
Medtronic, Inc. 14,400 735,300
----------------------------------------------------------------------------------
Minimed, Inc.(1) 2,200 277,337
----------------------------------------------------------------------------------
PacifiCare Health Systems, Inc.(1) 5,500 357,500
----------
1,398,374
----------------------------------------------------------------------------------
Technology--58.3%
----------------------------------------------------------------------------------
Computer Hardware--11.9%
Apple Computer, Inc.(1) 9,800 497,962
----------------------------------------------------------------------------------
Comdisco, Inc. 5,600 144,900
----------------------------------------------------------------------------------
Compaq Computer Corp. 8,200 230,112
----------------------------------------------------------------------------------
EMC Corp.(1) 3,800 323,475
----------------------------------------------------------------------------------
International Business Machines Corp. 10,100 1,135,619
----------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 12,000 1,265,250
----------
3,597,318
13 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Computer Software--15.4%
Adobe Systems, Inc. 900 $ 103,050
----------------------------------------------------------------------------------
America Online, Inc.(1) 17,800 948,963
----------------------------------------------------------------------------------
BroadVision, Inc.(1) 8,700 314,831
----------------------------------------------------------------------------------
CNET Networks, Inc.(1) 1,300 38,919
----------------------------------------------------------------------------------
I2 Technologies, Inc.(1) 4,800 622,800
----------------------------------------------------------------------------------
Intuit, Inc.(1) 10,600 360,400
----------------------------------------------------------------------------------
Microsoft Corp.(1) 15,800 1,103,038
----------------------------------------------------------------------------------
Oracle Corp.(1) 15,600 1,172,925
-----------
4,664,926
----------------------------------------------------------------------------------
Communications Equipment--10.0%
ADC Telecommunications, Inc.(1) 14,200 595,513
----------------------------------------------------------------------------------
Advanced Fibre Communications, Inc.(1) 10,700 458,763
----------------------------------------------------------------------------------
Cisco Systems, Inc.(1) 24,600 1,609,763
----------------------------------------------------------------------------------
Lucent Technologies, Inc. 4,600 201,250
----------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 1,800 138,600
-----------
3,003,889
----------------------------------------------------------------------------------
Electronics--21.0%
Advanced Micro Devices, Inc.(1) 5,900 424,431
----------------------------------------------------------------------------------
Altera Corp.(1) 6,100 598,944
----------------------------------------------------------------------------------
Applied Materials, Inc.(1) 8,700 660,113
----------------------------------------------------------------------------------
Intel Corp. 34,600 2,309,550
----------------------------------------------------------------------------------
JDS Uniphase Corp.(1) 5,700 673,313
----------------------------------------------------------------------------------
Micron Technology, Inc.(1) 7,700 627,550
----------------------------------------------------------------------------------
Molex, Inc. 1,000 47,047
----------------------------------------------------------------------------------
Teradyne, Inc.(1) 7,200 456,300
----------------------------------------------------------------------------------
Texas Instruments, Inc. 4,000 234,750
----------------------------------------------------------------------------------
Xilinx, Inc.(1) 4,200 315,263
-----------
6,347,261
----------------------------------------------------------------------------------
Utilities--3.3%
----------------------------------------------------------------------------------
Electric Utilities--1.2%
AES Corp. (The)(1) 7,000 374,063
----------------------------------------------------------------------------------
Gas Utilities--2.1%
----------------------------------------------------------------------------------
Dynegy, Inc. 3,700 260,388
----------------------------------------------------------------------------------
Enron Corp. 4,900 360,763
-----------
621,151
-----------
Total Common Stocks (Cost $28,501,879) 30,173,439
14 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
Principal Market Value
Amount See Note 1
==================================================================================
Repurchase Agreements--2.7%
----------------------------------------------------------------------------------
Repurchase agreement with Banc One Capital Markets, Inc.,
6.53%, dated 7/31/00, to be repurchased at $827,150
on 8/1/00, collateralized by U.S. Treasury Nts.,
4.25%-7.875%, 8/31/00-8/15/09, with a value of $604,145
and U.S. Treasury Bonds, 5.25%-14%, 8/15/03-11/15/28,
with a value of $241,317 (Cost $827,000) $827,000 $ 827,000
----------------------------------------------------------------------------------
Total Investments, at Value (Cost $29,328,879) 102.6% 31,000,439
----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (2.6) (789,438)
-----------------------
Net Assets 100.0% $30,211,001
=======================
</TABLE>
Footnotes to Statement of Investments
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES July 31, 2000
<TABLE>
=============================================================================================
<S> <C>
Assets
Investments, at value (cost $29,328,879)--see accompanying statement $31,000,439
---------------------------------------------------------------------------------------------
Cash 729
---------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 91,359
Shares of beneficial interest sold 87,485
Interest and dividends 7,821
Other 1,578
-----------
Total assets 31,189,411
=============================================================================================
Liabilities
Payables and other liabilities:
Investments purchased 809,195
Shares of beneficial interest redeemed 69,174
Shareholder reports 36,203
Trustees' compensation 33,739
Distribution and service plan fees 7,387
Transfer and shareholder servicing agent fees 4,385
Other 18,327
-----------
Total liabilities 978,410
=============================================================================================
Net Assets $30,211,001
===========
=============================================================================================
Composition of Net Assets
Paid-in capital $26,580,515
---------------------------------------------------------------------------------------------
Accumulated net investment loss (32,067)
---------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 1,990,993
---------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 1,671,560
-----------
Net Assets $30,211,001
===========
=============================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$16,470,170 and 1,131,788 shares of beneficial interest outstanding) $14.55
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $15.44
---------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $11,498,741
and 799,259 shares of beneficial interest outstanding) $14.39
---------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $2,240,625
and 155,679 shares of beneficial interest outstanding) $14.39
---------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $1,465 and 100 shares of beneficial interest outstanding) $14.65
</TABLE>
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended July 31, 2000
<TABLE>
==================================================================================
<S> <C>
Investment Income
Dividends $ 119,750
----------------------------------------------------------------------------------
Interest 59,437
----------
Total income 179,187
==================================================================================
Expenses
Management fees 155,638
----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 24,736
Class B 72,350
Class C 15,619
----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 31,172
Class B 18,556
Class C 4,094
----------------------------------------------------------------------------------
Shareholder reports 72,407
----------------------------------------------------------------------------------
Trustees' compensation 36,871
----------------------------------------------------------------------------------
Legal, auditing and other professional fees 19,442
----------------------------------------------------------------------------------
Custodian fees and expenses 3,659
----------------------------------------------------------------------------------
Other 11,097
----------
Total expenses 465,641
Less expenses paid indirectly (3,583)
----------
Net expenses 462,058
==================================================================================
Net Investment Loss (282,871)
==================================================================================
Realized and Unrealized Gain
Net realized gain on investments 2,721,948
----------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 1,144,045
----------
Net realized and unrealized gain 3,865,993
==================================================================================
Net Increase in Net Assets Resulting from Operations $3,583,122
==========
</TABLE>
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Period Ended
July 31, July 31,
2000 1999(1)
==================================================================================
<S> <C> <C>
Operations
Net investment loss $ (282,871) $ (33,633)
----------------------------------------------------------------------------------
Net realized gain 2,721,948 130,952
----------------------------------------------------------------------------------
Net change in unrealized appreciation 1,144,045 527,515
--------------------------
Net increase in net assets resulting from operations 3,583,122 624,834
==================================================================================
Dividends and/or Distributions to Shareholders
Distributions from net realized gain:
Class A (126,072) --
Class B (70,994) --
Class C (20,287) --
Class Y (18) --
==================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial
interest transactions:
Class A 8,398,029 5,504,074
Class B 8,645,757 1,709,968
Class C 1,539,267 422,321
Class Y -- 1,000
==================================================================================
Net Assets
Total increase 21,948,804 8,262,197
----------------------------------------------------------------------------------
Beginning of period 8,262,197 --
--------------------------
End of period [including accumulated net investment
income (loss) of $(32,067) and $3, respectively] $30,211,001 $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.
18 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A Class B
Year Year
Ended Ended
July 31, July 31,
2000 1999(1) 2000 1999(2)
=========================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.93 $10.00 $11.89 $10.48
---------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.11) (1.05) (.17) (1.04)
Net realized and unrealized gain 2.91 2.98 2.85 2.45
--------------------------------------------------
Total income from investment operations 2.80 1.93 2.68 1.41
---------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain (.18) -- (.18) --
---------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.55 $11.93 $14.39 $11.89
==================================================
=========================================================================================================
Total Return, at Net Asset Value(3) 23.63% 19.30% 22.70% 13.45%
=========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $16,470 $6,059 $11,499 $1,764
---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $11,973 $4,028 $ 7,257 $ 722
---------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment loss (1.03)% (1.05)% (1.81)% (1.93)%
Expenses 1.91% 1.81% 2.69% 2.92%
Expenses, net of indirect expenses and
waiver of expenses 1.89% 1.65% 2.67% 2.75%
---------------------------------------------------------------------------------------------------------
Portfolio turnover rate 258% 157% 258% 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.
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class C Class Y
Year Year
Ended Ended
July 31, July 31,
2000 1999(2) 2000 1999(1)
=========================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.89 $10.48 $11.95 $10.00
---------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.19) (1.04) (.07) (1.03)
Net realized and unrealized gain 2.87 2.45 2.95 2.98
--------------------------------------------------
Total income from investment operations 2.68 1.41 2.88 1.95
---------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain (.18) -- (.18) --
---------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.39 $11.89 $14.65 $11.95
==================================================
=========================================================================================================
Total Return, at Net Asset Value(3) 22.70% 13.45% 24.27% 19.50%
=========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,241 $438 $1 $1
---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,566 $192 $1 $1
---------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment loss (1.82)% (1.95)% (0.54)% (0.72)%
Expenses 2.72% 2.90% 1.45% 1.65%
Expenses, net of indirect expenses and
waiver of expenses 2.70% 2.73% 1.43% 1.50%
---------------------------------------------------------------------------------------------------------
Portfolio turnover rate 258% 157% 258% 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.
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
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 an 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 at their offering price, which is normally net asset value plus a
front-end sales charge. Class B and Class C shares are sold without a front-end
sales charge but 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. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
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.
21 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
1. Significant Accounting Policies Continued
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 an unfunded retirement plan for the
Fund's independent Board of Trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
July 31, 2000, a provision of $32,067 was made for the Fund's projected benefit
obligations, resulting in an accumulated liability of $32,067 as of July 31,
2000.
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 Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees 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 investment income per share.
--------------------------------------------------------------------------------
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.
22 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and 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
year ended July 31, 2000, amounts have been reclassified to reflect an increase
in paid-in capital of $361,661, a decrease in accumulated net investment loss of
$250,801, and a decrease in accumulated net realized gain on investments of
$612,462. Net assets of the Fund were unaffected by the reclassifications.
--------------------------------------------------------------------------------
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. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to 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.
23 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
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>
Year Ended July 31, 2000 Period Ended July 31, 1999(1,2)
Shares Amount Shares Amount
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 912,843 $12,377,105 594,395 $6,469,402
Dividends and/or
distributions reinvested 7,861 104,002 -- --
Redeemed (296,838) (4,083,078) (86,473) (965,328)
-----------------------------------------------------------
Net increase 623,866 $ 8,398,029 507,922 $5,504,074
===========================================================
------------------------------------------------------------------------------------------
Class B
Sold 835,185 $11,197,215 151,712 $1,750,100
Dividends and/or
distributions reinvested 4,775 62,802 -- --
Redeemed (189,125) (2,614,260) (3,288) (40,132)
-----------------------------------------------------------
Net increase 650,835 $ 8,645,757 148,424 $1,709,968
===========================================================
------------------------------------------------------------------------------------------
Class C
Sold 195,498 $ 2,588,850 39,237 $ 452,446
Dividends and/or
distributions reinvested 1,535 20,206 -- --
Redeemed (78,139) (1,069,789) (2,452) (30,125)
-----------------------------------------------------------
Net increase 118,894 $ 1,539,267 36,785 $ 422,321
===========================================================
------------------------------------------------------------------------------------------
Class Y
Sold -- $ -- 100 $ 1,000
Dividends and/or
distributions reinvested -- -- -- --
Redeemed -- -- -- --
-----------------------------------------------------------
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. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2000, were $71,303,060
and $51,762,200, respectively.
As of July 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $29,349,143 was:
Gross unrealized appreciation $ 3,077,195
Gross unrealized depreciation (1,425,899)
-----------
Net unrealized depreciation $ 1,651,296
===========
24 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
================================================================================
4. 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 over $800 million. The Fund's management fee
for the year ended July 31, 2000, was an annualized rate of 0.75%, before any
waiver by the Manager if applicable.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer 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>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
July 31, 2000 $97,002 $40,167 $5,583 $141,328 $8,962
</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 Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
July 31, 2000 -- $19,709 $--
</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.
--------------------------------------------------------------------------------
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 purchased. 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 year ended July 31, 2000, payments under
the Class A plan totaled $24,736 prior to Management waivers if applicable, all
of which were paid by the Distributor to recipients, and included $3,679 paid to
an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs
with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
25 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
4. Fees and Other Transactions with Affiliates Continued
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 asset-based sales charges from the Fund under
the plans. If any 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.
Distribution fees paid to the Distributor for the year ended July 31, 2000, were
as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $72,350 $62,003 $114,101 0.99%
Class C Plan 15,619 7,689 10,331 0.46
</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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended July 31, 2000.
26 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
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, 2000, and the related statement of operations for the year then ended, and
the statements of changes in net assets and financial highlights for the year
then ended and 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
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. 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, 2000, by correspondence with the custodian and
brokers; and where confirmations were not received from brokers, we performed
other auditing procedures. 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
audits provide 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, 2000, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for the year then ended and the period from December 17,
1998 (commencement of operations) to July 31, 1999, in conformity with
accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2000
27 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.1815 per share were paid to Class A, Class B, Class C and
Class Y shareholders, on December 3, 1999, all of which was designated as
ordinary income for federal income tax purposes. Whether received in stock or in
cash, the capital gain distribution should be treated by shareholders as a gain
from the sale of capital assets held for more than one year (long-term capital
gains).
Dividends paid by the Fund during the fiscal year ended July 31, 2000 which
are not designated as capital gain distributions should be multiplied by 4.49%
to arrive at the net amount eligible for the corporate dividend-received
deduction.
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.
28 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
OPPENHEIMER LARGE CAP GROWTH FUND
<TABLE>
================================================================================
<S> <C>
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
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors KPMG LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
This is a copy of a report to shareholders of
Oppenheimer Large Cap Growth Fund. For other 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.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
</TABLE>
29 | OPPENHEIMER LARGE CAP GROWTH FUND
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to
help.
Internet
24-hr access to account information and transactions(1)
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
--------------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[logo] OppenheimerFunds(R)
Distributor, Inc.
RA0775.001.0700 September 29, 2000
