<PAGE>
[FRONT PAGE]
Semiannual Report January 31, 2000
Oppenheimer
Trinity Value Fund
[LOGO]OppeneheimerFunds(R)
The Right Way to Invest
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
Whenever a new year begins -- let alone a new decade or century -- it makes
sense to pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty.When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas.At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures.Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns and,
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a moderate-growth,
low-inflation course. As recent revisions of 1999's economic statistics
demonstrated, the economy has defied many analysts' forecasts by growing at a
strong rate, which should be positive for the bond market. Similarly, positive
economic forces could help the stock market's performance broaden to include
value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market. Many
foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving companies
there the same potential for cost-cutting and productivity improvements that
U.S. companies enjoyed years ago. In Japan and Asia, economic recovery is
expected to gain strength, which could allow stocks to rally from relatively low
levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control.The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com"companies will survive, and
many of these high-flying Internet stocks will eventually -- and perhaps very
suddenly -- return to more reasonable levels.The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have a crystal
ball, we believe that in almost any investment environment, consistent success
stems from an unwavering focus on fundamental investment principles such as
maintaining a long-term perspective, using diversification to manage risk, and
availing oneself of the services of a knowledgeable financial advisor. Indeed,
these principles serve as the foundation for every investment we offer, helping
to make OppenheimerFunds The Right Way to Invest in 2000 and beyond.
Sincerely,
/s/Bridget A. Macaskill
Bridget A. Macaskill
President
Oppenheimer
Trinity Value Fund
February 22, 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.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Miguel de Braganca
Daniel Burke
Blake Gall
Jennifer Kosmo
Portfolio Managers
How has Oppenheimer Trinity Value Fund performed since its inception?
We are generally disappointed with the Fund's returns during the five months
since the Fund began operations (September 1, 1999 - January 31, 2000). It would
be an understatement to say that the value style of investing was out of favor
during the reporting period; even many value investors largely avoided stocks
that appeared undervalued, while rewarding those they would ordinarily consider
expensive. Because the Fund is even more value-oriented than its benchmark, the
S&P 500/BARRA Value Index, performance was doubly constrained by the market's
bias toward growth.
Although large-capitalization stocks produced very attractive returns over the
past five months, a closer look reveals that the market's rise was fueled by a
relatively small number of stocks. Good performance was particularly
concentrated within fast-growing technology companies, many of which have
reached valuations that are quite high by historical measures. Because our
risk-averse, highly disciplined stock selection strategy avoids very expensive
stocks, we did not participate in many of the market's leaders.
What is the Fund's stock selection strategy?
Oppenheimer Trinity Value Fund seeks to invest in the most attractive stocks
within each sector of the S&P 500/BARRA Value Index, which is composed almost
exclusively of large-capitalization value stocks.To find such stocks, we employ
a "bottom up"management approach in which we rigorously assess the strengths and
weaknesses of individual companies rather than investing according to broad
economic or market trends.
In particular, we use multifactor computer models that rank the stocks within
each of 11 market sectors according to their relative attractiveness on a
variety of valuation measures. Our team of securities analysts then conducts
intensive fundamental research into the most highly ranked companies. By
combining quantitative analysis with fundamental research, we believe that we
can eliminate subjective biases to produce higher returns than the S&P 500/BARRA
Value Index over the course of a full market cycle.
To manage the risk of investing, we try to ensure that the percentage of Fund
assets allocated to each mar-ket sector approximates its weighting in the S&P
500/BARRA Value Index.Within each sector, we strive to add value by emphasizing
those stocks that we regard as most attractive, and de-emphasizing those stocks
that we believe are least attractive.
What sectors contributed most to the Fund's returns during the reporting period?
On the positive side, the healthcare and transportation sectors helped the
Fund's performance. However, two value-biased sectors, finance and utilities,
have hurt the Fund's performance since its inception. Consumer finance stocks
were hit particularly hard.Together, these two sectors comprise over 40% of the
portfolio.
Has the dominance of large-cap growth stocks caused you to consider changing
your investment approach?
Absolutely not! We've seen similarly narrow markets before, including the "Nifty
Fifty" in the 1970s, energy stocks in the 1980s and the "Sweet Sixteen" consumer
stocks in the early 1990s. Ultimately, these overpriced stocks fell from their
lofty valuations while the rest of the market broadened considerably. In our
opinion, history is likely to repeat itself in this regard.
Oppenheimer Trinity Value Fund is a "deep value"fund designed to address the
more conservative and defensive portion of an investor's overall investment
portfolio.We will remain true to the value style, with no drift.While that may
be disadvantageous in a growth-oriented environment, it is a useful way for
investors to diversify a portfolio.
3 Oppenheimer Trinity Value Fund
<PAGE>
What is your outlook for the foreseeable future?
As "bottom up"portfolio managers, we do not attempt to forecast economic or
market trends. Instead, we maintain an unwavering focus on the fundamental
strengths and weaknesses of the companies in which we invest.With that said,
however, it is difficult for us to imagine that the U.S. stock market will
remain as narrow as it was in 1999.Valuation differences between growth stocks
and value stocks have reached extreme levels, in our opinion.
In particular, we believe that the gap is more likely to narrow close to
historical norms.Accordingly, we intend to maintain our disciplined approach to
investing in large-capitalization value stocks. Indeed, maintaining the
integ-rity of our approach during difficult markets is what makes Oppenheimer
Trinity Value Fund an important part of The Right Way to Invest. Because of
ongoing market volatility, the Fund's performance may be subject to substantial
short-term changes. For updates on the Fund's performance, please contact your
financial advisor, call us at 1.800.525.7048 or visit our website,
www.oppenheimerfunds.com.
4 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS January 31, 2000 / Unaudited
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 97.7%
- --------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 4.3%
- --------------------------------------------------------------------------------------------------------------------
CHEMICALS - 3.0%
- --------------------------------------------------------------------------------------------------------------------
Air Products & Chemicals, Inc. 300 $ 8,887
- --------------------------------------------------------------------------------------------------------------------
Engelhard Corp. 2,600 41,437
- --------------------------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 1,200 30,000
--------------
80,324
- --------------------------------------------------------------------------------------------------------------------
METALS - 0.2%
- --------------------------------------------------------------------------------------------------------------------
Allegheny Teledyne, Inc. 200 4,175
- --------------------------------------------------------------------------------------------------------------------
PAPER - 1.1%
- --------------------------------------------------------------------------------------------------------------------
Boise Cascade Corp. 500 17,687
- --------------------------------------------------------------------------------------------------------------------
Georgia Pacific Group 200 8,150
- --------------------------------------------------------------------------------------------------------------------
Louisiana-Pacific Corp. 400 5,150
--------------
30,987
- --------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 6.5%
- --------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 2.4%
- --------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 900 16,875
- --------------------------------------------------------------------------------------------------------------------
Northrop Grumman Corp. 600 30,150
- --------------------------------------------------------------------------------------------------------------------
TRW, Inc. 400 17,525
--------------
64,550
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.8%
- --------------------------------------------------------------------------------------------------------------------
Service Corp. International 4,600 20,987
- --------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 3.3%
- --------------------------------------------------------------------------------------------------------------------
Caterpillar, Inc. 200 8,487
- --------------------------------------------------------------------------------------------------------------------
Crown Cork & Seal Co., Inc. 500 10,156
- --------------------------------------------------------------------------------------------------------------------
Honeywell International, Inc. 600 28,800
- --------------------------------------------------------------------------------------------------------------------
Milacron, Inc. 1,700 20,506
- --------------------------------------------------------------------------------------------------------------------
National Service Industries, Inc. 800 19,900
--------------
87,849
- --------------------------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES - 12.4%
- --------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE - 6.8%
- --------------------------------------------------------------------------------------------------------------------
Andrew Corp. (1) 800 18,400
- --------------------------------------------------------------------------------------------------------------------
AT&T Corp. 1,200 63,300
- --------------------------------------------------------------------------------------------------------------------
MCI WorldCom, Inc. (1) 1,950 89,578
- --------------------------------------------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 200 12,937
--------------
184,215
- --------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 5.6%
- --------------------------------------------------------------------------------------------------------------------
Bell Atlantic Corp. 1,000 61,937
- --------------------------------------------------------------------------------------------------------------------
GTE Corp. 1,200 87,975
--------------
149,912
</TABLE>
5 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 10.9%
- --------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 5.6%
- --------------------------------------------------------------------------------------------------------------------
Ford Motor Co. 1,600 $ 79,600
- --------------------------------------------------------------------------------------------------------------------
Fortune Brands, Inc. 800 23,200
- --------------------------------------------------------------------------------------------------------------------
Kaufman & Broad Home Corp. 1,300 28,194
- --------------------------------------------------------------------------------------------------------------------
Pulte Corp. 1,100 19,181
--------------
150,175
- --------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.5%
- --------------------------------------------------------------------------------------------------------------------
Carnival Corp. 900 40,556
- --------------------------------------------------------------------------------------------------------------------
MEDIA - 0.8%
- --------------------------------------------------------------------------------------------------------------------
Knight-Ridder, Inc. 400 21,325
- --------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 1.1%
- --------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 1,000 30,937
- --------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 1.1%
- --------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. (1) 500 13,125
- --------------------------------------------------------------------------------------------------------------------
Sherwin-Williams Co. 900 15,862
--------------
28,987
- --------------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL & HOME FURNISHINGS - 0.8%
- --------------------------------------------------------------------------------------------------------------------
Russell Corp. 1,400 20,912
- --------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.8%
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.7%
- --------------------------------------------------------------------------------------------------------------------
Coca-Cola Enterprises, Inc. 800 20,200
- --------------------------------------------------------------------------------------------------------------------
BROADCASTING - 4.0%
- --------------------------------------------------------------------------------------------------------------------
CBS Corp. (1) 800 46,650
- --------------------------------------------------------------------------------------------------------------------
Clear Channel Communications, Inc. 700 60,462
--------------
107,112
- --------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT - 0.1%
- --------------------------------------------------------------------------------------------------------------------
Wendy's International, Inc. 200 3,763
- --------------------------------------------------------------------------------------------------------------------
FOOD - 0.2%
- --------------------------------------------------------------------------------------------------------------------
ConAgra, Inc. 200 4,275
- --------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS - 1.8%
- --------------------------------------------------------------------------------------------------------------------
Albertson's, Inc. 1,600 49,000
- --------------------------------------------------------------------------------------------------------------------
ENERGY - 13.5%
- --------------------------------------------------------------------------------------------------------------------
OIL: DOMESTIC - 11.5%
- --------------------------------------------------------------------------------------------------------------------
Apache Corp. 1,000 36,500
- --------------------------------------------------------------------------------------------------------------------
Ashland, Inc. 700 22,794
- --------------------------------------------------------------------------------------------------------------------
Exxon Mobil Corp. 1,500 125,250
- --------------------------------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 900 17,888
- --------------------------------------------------------------------------------------------------------------------
Sunoco, Inc. 1,500 34,594
- --------------------------------------------------------------------------------------------------------------------
Texaco, Inc. 1,000 52,875
- --------------------------------------------------------------------------------------------------------------------
USX-Marathon Group 800 20,550
--------------
310,451
</TABLE>
6 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
OIL: INTERNATIONAL - 2.0%
- --------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 1,000 $ 55,063
- --------------------------------------------------------------------------------------------------------------------
FINANCIAL - 22.2%
- --------------------------------------------------------------------------------------------------------------------
BANKS - 8.1%
- --------------------------------------------------------------------------------------------------------------------
Bank of America Corp. 2,000 96,875
- --------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. 700 56,306
- --------------------------------------------------------------------------------------------------------------------
Mellon Financial Corp. 1,000 34,313
- --------------------------------------------------------------------------------------------------------------------
Northern Trust Corp. 500 30,188
--------------
217,682
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 7.6%
- --------------------------------------------------------------------------------------------------------------------
Capital One Financial Corp. 700 28,700
- --------------------------------------------------------------------------------------------------------------------
Citigroup, Inc. 1,500 86,156
- --------------------------------------------------------------------------------------------------------------------
Household International, Inc. 1,800 63,450
- --------------------------------------------------------------------------------------------------------------------
MGIC Investment Corp. 600 27,938
--------------
206,244
- --------------------------------------------------------------------------------------------------------------------
INSURANCE - 4.2%
- --------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 400 41,650
- --------------------------------------------------------------------------------------------------------------------
Conseco, Inc. 2,000 30,500
- --------------------------------------------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 1,100 41,938
--------------
114,088
- --------------------------------------------------------------------------------------------------------------------
SAVINGS & LOANS - 2.3%
- --------------------------------------------------------------------------------------------------------------------
Washington Mutual, Inc. 2,400 60,900
- --------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 4.6%
- --------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 2.1%
- --------------------------------------------------------------------------------------------------------------------
American Home Products Corp. 900 42,356
- --------------------------------------------------------------------------------------------------------------------
Mallinckrodt, Inc. 200 5,763
- --------------------------------------------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc. (1) 200 8,063
--------------
56,182
- --------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 2.5%
- --------------------------------------------------------------------------------------------------------------------
Cardinal Health, Inc. 600 28,688
- --------------------------------------------------------------------------------------------------------------------
Shared Medical Systems Corp. 400 17,700
- --------------------------------------------------------------------------------------------------------------------
United Healthcare Corp. 400 21,200
--------------
67,588
- --------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 10.2%
- --------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 4.0%
- --------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 1,000 108,250
- --------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES - 1.4%
- --------------------------------------------------------------------------------------------------------------------
Unisys Corp. (1) 1,200 38,250
- --------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 0.7%
- --------------------------------------------------------------------------------------------------------------------
Computer Sciences Corp. (1) 200 18,375
- --------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 2.9%
- --------------------------------------------------------------------------------------------------------------------
Motorola, Inc. 400 54,700
- --------------------------------------------------------------------------------------------------------------------
Thomas & Betts Corp. 800 24,350
--------------
79,050
</TABLE>
7 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY - 1.2%
- --------------------------------------------------------------------------------------------------------------------
Xerox Corp. 1,500 $ 31,313
- --------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.4%
- --------------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION - 1.4%
- --------------------------------------------------------------------------------------------------------------------
AMR Corp. (1) 700 37,669
- --------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9%
- --------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 3.7%
- --------------------------------------------------------------------------------------------------------------------
Carolina Power & Light Co. 900 29,025
- --------------------------------------------------------------------------------------------------------------------
Central & South West Corp. 900 18,169
- --------------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 700 29,531
- --------------------------------------------------------------------------------------------------------------------
PP&L Resources, Inc. 200 4,638
- --------------------------------------------------------------------------------------------------------------------
Texas Utilities Co. 500 17,688
--------------
99,051
- --------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 1.2%
- --------------------------------------------------------------------------------------------------------------------
El Paso Energy Corp. 1,000 32,250
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $2,650,850) 97.7% 2,632,647
- --------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.3 63,203
-------------- ----------------
NET ASSETS 100.0% $ 2,695,850
============== ================
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES January 31, 2000 / Unaudited
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments, at value (cost $2,650,850) - see accompanying statement $2,632,647
- ----------------------------------------------------------------------------------------------------------------------------------
Cash 34,065
- ----------------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 110,284
Interest 3,633
Other 3,281
-----------
Total assets 2,783,910
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Investments purchased 77,908
Distribution and service plan fees 2,363
Registration and filing fees 1,437
Transfer and shareholder servicing agent fees 1,267
Shareholder reports 681
Other 4,404
--------------------
Total liabilities 88,060
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $2,695,850
===========
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $2,862,085
- ----------------------------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (2,334)
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (145,698)
- ----------------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (18,203)
-----------
Net assets $2,695,850
===========
</TABLE>
9 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
<S> <C>
Net asset value and redemption price per share (based on net assets of
$2,632,547 and 283,788 shares of beneficial interest outstanding) $9.28
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $9.85
- ----------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $60,131
and 6,502 shares of beneficial interest outstanding) $9.25
- ----------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $2,244
and 242 shares of beneficial interest outstanding) $9.27
- ----------------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $928 and 100 shares of beneficial interest outstanding) $9.28
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Period from September 1, 1999
(commencement of operations) to January 31,
2000 / Unaudited
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C>
Dividends $18,701
- ----------------------------------------------------------------------------------------------------------------------------------
Interest 2,317
----------
Total income 21,018
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 7,364
- ----------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,405
Class B 112
Class C 5
- ----------------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 3,718
- ----------------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 1,678
- ----------------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 670
- ----------------------------------------------------------------------------------------------------------------------------------
Other 472
----------
Total expenses 16,424
Less expenses paid indirectly (670)
----------
Net expenses 15,754
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,264
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
Net realized loss on investments (145,698)
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (18,203)
----------
Net realized and unrealized loss (163,901)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ($158,637)
==========
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED
JANUARY 31, 2000(1)
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C>
Net investment income $5,264
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized loss (145,698)
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (18,203)
-----------
Net decrease in net assets resulting from operations (158,637)
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (7,409)
Class B (185)
Class Y (4)
- ----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions:
Class A 2,695,815
Class B 61,920
Class C 1,350
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 2,592,850
- ----------------------------------------------------------------------------------------------------------------------------------
Beginning of period 103,000(2)
-----------
End of period (including overdistributed net investment
income of $2,334 for the period ended January 31, 2000) $2,695,850
===========
</TABLE>
1. For the period from September 1, 1999 (commencement of operations) to January
31, 2000.
2. Reflects the value of the Manager's initial seed money investment
at August 18, 1999.
See accompanying Notes to Financial Statements.
12 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
CLASS A CLASS B CLASS C CLASS Y
----------------- ------------------ ------------------ ----------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
JANUARY 31, JANUARY 31, JANUARY 31, JANUARY 31,
2000 UNAUDITED (1) 2000 UNAUDITED(1) 2000 UNAUDITED (1) 2000 UNAUDITED(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.00 $10.00 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 -- (2) (.01) .04
Net realized and unrealized loss (.71) (.72) (.72) (.72)
------- ------- ------- -------
Total loss from investment operations (.69) (.72) (.73) (.68)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) (.03) -- (2) (.04)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.28 $9.25 $9.27 $9.28
======= ======= ======= =======
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) (6.91)% (7.19)% (7.27)% (6.84)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $2,633 $60 $2 $1
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,332 $27 $1 $1
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: (4)
Net investment income (loss) 0.55% (0.50)% (0.43)% 0.91%
Expenses 1.72% 2.61% 2.57% 1.36%
Expenses, net of indirect expenses 1.65% 2.54% 2.50% 1.29%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 107% 107% 107% 107%
</TABLE>
1. For the period from September 1, 1999 (commencement of operations) to January
31, 2000.
2. Less than $0.005 per share.
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. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
4. Annualized for periods of less than one full year.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended January 31, 2000 were $5,326,877 and $2,530,329,
respectively.
See accompanying Notes to Financial Statements.
13 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Trinity Value 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 long-term growth
of capital. 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 an initial
sales charge. Class B and Class C shares are sold without an initial 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 shares 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 for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, 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. Foreign currency contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion 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.
14 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
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.
15 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
PERIOD ENDED JANUARY31, 2000(1)
------------------------------------
SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C>
Sold 275,062 $ 2,707,794
Dividends and/or distributions reinvested 120 1,147
Redeemed (1,394) (13,126)
-------- ----------------
Net increase 273,788 $ 2,695,815
======== =================
- ----------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 9,522 $ 92,004
Dividends and/or distributions reinvested 19 182
Redeemed (3,139) (30,266)
-------- ----------------
Net increase 6,402 $ 61,920
======== =================
- ----------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 142 $ 1,350
-------- -----------------
Net increase 142 $ 1,350
======== =================
- ----------------------------------------------------------------------------------------------------------------------
CLASS Y
Sold -- $ --
-------- -----------------
Net increase -- $ --
======== =================
</TABLE>
1. For the period from September 1, 1999 (commencement of operations) to January
31, 2000.
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of January 31, 2000, net unrealized depreciation on securities of $18,203 was
composed of gross appreciation of $104,758, and gross depreciation of $122,961.
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 of the Fund, 0.72% of the
next $200 million, 0.69% of the next $200 million, 0.66% of the next $200
million, and 0.60% of average annual net assets in excess of $800 million. The
Fund's management fee for the period ended January 31, 2000 was 0.75% of average
annual net assets for each class of shares, annualized for periods of less than
one full year.
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
SUB-ADVISOR FEES. The Manager pays Trinity Investment Management Corporation
(the Sub-Advisor) based on the fee schedule set forth in the Prospectus. For the
period ended January 31, 2000, the Manager paid $2,472 to the Sub-Advisor.
16 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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 ON COMMISSIONS ON COMMISSIONS ON
FRONT-END SALES FRONT-END SALES CLASS A SHARES CLASS B SHARES CLASS C SHARES
CHARGES ON CLASS CHARGES ADVANCED BY ADVANCED BY ADVANCED BY
A SHARES RETAINED BY DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
PERIOD ENDED DISTRIBUTOR
- ---------------------- ------------------ ----------------- --------------------- ------------------- ---------------------
<S> <C> <C> <C> <C> <C>
January 31, 2000 $-- $-- $-- $2,073 $--
- ---------------------- ------------------ ----------------- --------------------- ------------------- ---------------------
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales
of Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
- ------------------------- --------------------------- ---------------------------- -----------------------------
CLASS A CONTINGENT CLASS B CONTINGENT CLASS C CONTINGENT DEFERRED
DEFERRED SALES CHARGES DEFERRED SALES CHARGES SALES CHARGES RETAINED BY
PERIOD ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR DISTRIBUTOR
- ------------------------- --------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C>
January 31, 2000 $-- $-- $--
- ------------------------- --------------------------- ---------------------------- -----------------------------
</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 period ended January 31, 2000, payments
under the Class A plan totaled $2,405, all of which was paid by the Distributor
to recipients. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
17 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / 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.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTION FEES PAID TO THE DISTRIBUTOR FOR THE PERIOD ENDED JANUARY 31, 2000, WERE AS FOLLOWS:
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTOR'S
DISTRIBUTOR'S AGGREGATE UNREIMBURSED EXPENSES
TOTAL PAYMENTS AMOUNT RETAINED BY UNREIMBURSED EXPENSES AS % OF NET ASSETS OF
UNDER PLAN DISTRIBUTOR UNDER PLAN CLASS
- ------------------- --------------------- ---------------------- ---------------------------- ------------------------
<S> <C> <C> <C> <C>
CLASS B PLAN $-- $-- $-- --%
- ------------------- --------------------- ---------------------- ---------------------------- ------------------------
CLASS C PLAN -- -- -- --
- ------------------- --------------------- ---------------------- ---------------------------- ------------------------
</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 period ended January 31, 2000.
18 Oppenheimer Trinity Value Fund
<PAGE>
OPPENHEIMER TRINITY VALUE FUND
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of
Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Clayton K. Yeutter, Trustee
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
INVESTMENT ADVISOR OppenheimerFunds, Inc.
SUB-ADVISOR Trinity Investment Management Corporation
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER
SERVICING AGENT
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS KPMG LLP
LEGAL COUNSEL Mayer, Brown & Platt
The financial statements included herein have been taken from the records of the
Fund without examination of the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Trinity Value Fund.
This report must be preceded or accompanied by a Prospectus of Oppenheimer
Trinity Value 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 the possible loss of the principal amount
invested.
<PAGE>
RS0381.001.0100 March 31, 2000
