<PAGE>
[FRONT PAGE]
Annual Report July 31, 2000
Oppenheimer
Trinity Value Fund
[LOGO]OPPENHEIMERFUNDS(r)
THE RIGHT WAY TO INVEST
<PAGE>
REPORT HIGHLIGHTS
CONTENTS
1 President's Letter
2 An Interview with Your
Fund's Managers
5 Fund Performance
9 Financial Statements
23 Independent Auditors' Report
24 Federal Income Tax Information
25 Officers and Trustees
The current portfolio management team ADHERED TO A HIGHLY DISCIPLINED INVESTMENT
PROCESS designed to control risk, ensure broad diversification and avoid "style
drift."
HEALTHCARE ACCOUNTED FOR MOST OF THE FUND'S PERFORMANCE, while consumer staples
proved to be a weak-performing sector.
CUMULATIVE TOTAL RETURNS*
For the Period from 9/1/99 to 7/31/00
Without With
Sales Chg. Sales Chg.
Class A -4.50% -9.99%
Class B -5.18% -9.90%
Class C -4.27% -5.23%
Class Y -4.33% -4.33%
* See Notes on page 8 for further details.
<PAGE>
PRESIDENT'S LETTER
BRIDGET A. MACASKILL
President
Oppenheimer
Trinity Value 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.
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.
1 Oppenheimer Trinity Value Fund
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
PORTFOLIO MANAGEMENT TEAM
Miguel de Braganca
Daniel Burke
Blake Gall
Jennifer Kosmo
HOW WOULD YOU CHARACTERIZE THE FUND'S PERFORMANCE SINCE ITS COMMENCEMENT?
We are disappointed with overall performance during the 11 months we have been
managing Oppenheimer Trinity Value Fund (September 1, 1999-July 31, 2000).
However, we believe it is important to note that most of the Fund's
underperformance relative to its benchmark occurred during the last few months
of 1999, when the market's strength was driven by a small number of high-growth
technology stocks.We are pleased that performance improved in 2000. Despite a
volatile market and a challenging economic environment, our disciplined
selection process enabled us to benefit when market conditions broadened.
WHAT IS THE FUND'S INVESTMENT APPROACH?
Oppenheimer Trinity Value Fund seeks capital appreciation primarily from stocks
of large, value-oriented companies.These include many of the best-known
companies in the United States across a variety of sectors and industry groups.
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 S&P/BARRA Value
Index.We also ensure broad diversification by targeting the Fund's sector
weights to those of the benchmark index.We strive to add value to the Fund and
exceed the benchmark's performance by identifying 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.
We also seek to avoid the risks associated with market timing. Market timing
refers to the practice of moving a fund's assets in and out of the equities
market in an attempt to avoid declines. Because we believe that the risks and
costs of such strategies outweigh the benefits, we generally keep the Fund close
to fully invested at all times.
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 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 benchmark, as well as most
other value-oriented, large-cap equity funds.
WHAT KINDS OF MARKET CONDITIONS CONFRONTED THE FUND DURING THE REPORTING PERIOD?
Sporadic market strength during the period was supported by continued expansion
of the U.S. economy, low rates of inflation, growing evidence of a global
economic recovery and diminishing fears of Y2K-related problems.These factors
drove a relatively narrow group of growth-oriented technology stocks sharply
higher during the last few months of 1999, while value-oriented stocks slumped.
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.As interest rates rose, investors showed renewed concern for
company fundamentals and profitability, shifting the focus of market strength
from growth- to value-oriented stocks. In June, 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--gave new impetus to growth stocks.
However, market strength remained broader than it had been in late 1999,
allowing more value-oriented stocks to participate in the market's strength.
2 Oppenheimer Trinity Value Fund
<PAGE>
"Our disciplined stock selection
process ENABLED US TO BENEFIT
WHEN MARKET CONDITIONS
BROADENED."
HOW DID YOU MANAGE THE FUND IN LIGHT OF THESE CONDITIONS?
Informed by the data generated by our quantitative models, we built a
diversified portfolio of stocks that reflected the sector weightings of the S&P
500/BARRA Value Index.As was the case with our benchmark index, financial stocks
were the Fund's largest sector, representing over one-fourth of assets
throughout the reporting period. Our individual financial stock selections
performed reasonably well, providing posi-tive performance in line with the
index's financial stocks. Our utilities and energy holdings also performed well
relative to the benchmark.The Fund's best performing sector, healthcare,
outperformed the index's component. However, this sector repre-sented only about
4% of the Fund's total assets, which limited its impact on our total return.
Consumer staples proved to be the Fund's worst-performing sector, but since this
sector represented about 5% of the Fund's assets, they also had little impact on
overall performance.
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 equity 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.
In this challenging and changeable environment, we continue to maintain our
unwavering focus on uncovering the most attractive large-cap value stocks listed
in the S&P 500/BARRA Value Index. Our highly disciplined, long-term approach to
value investing is what makes Oppenheimer Trinity Value Fund an important part
of The Right Way to Invest.
3 Oppenheimer Trinity Value Fund
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[PIE CHART]
SECTOR ALLOCATION(2)
Financial 30.0%
Energy 11.8
Technology 10.1
Communication
Services 9.7
Consumer
Cyclicals 9.6
Capital Goods 8.3
Utilities 8.2
Consumer
Staples 5.3
Healthcare 3.6
Basic Materials 3.4
CUMULATIVE TOTAL RETURNS
For the period from 9/1/99 to 6/30/00(1)
Since Inception
Class A -11.98%
Class B -11.81
Class C -7.21
Class Y -6.44
TOP TEN STOCK HOLDINGS(3)
Citigroup, Inc. 5.6%
Exxon Mobil Corp. 5.0
Wells Fargo Co. 3.1
Enron Corp. 2.9
Fannie Mae 2.5
J.P. Morgan & Co., Inc. 2.5
SBC Communications, Inc. 2.4
Procter & Gamble Co. 2.3
American Express Co. 2.2
SunTrust Banks, Inc. 2.2
1. See page 8 for further details.
2. Portfolio is subject to change. Percentages are as of July 31, 2000, and are
based on total market value of common stocks.
3. Portfolio is subject to change. Percentages are as of July 31, 2000, and are
based on net assets.
4 Oppenheimer Trinity Value Fund
<PAGE>
FUND PERFORMANCE
HOW HAS THE FUND PERFORMED? Below is a discussion, by the Manager, of the Fund's
perfor-mance during its fiscal year ended July 31, 2000, followed by a graphical
comparison of the Fund's performance to an appropriate broad-based market index.
MANAGEMENT'S DISCUSSION OF PERFORMANCE
During the fiscal year that ended July 31, 2000, the U.S. economy enjoyed strong
growth. Market strength was concentrated in growth-oriented stocks in late 1999
and early 2000. In mid-March 2000, concerns over rising interest rates shifted
the market's direction in favor of value-oriented stocks until late May. Growth
stocks rallied again in June in the face of strong earnings reports and mounting
evidence that economic growth was slowing to a sustainable rate; however, value
stocks regained their strength in July. In general, the market environment in
2000 remained more broadly based than in late 1999. Guided by our quan-titative
investment models, we identified and invested in several strong-performing
individ-ual stocks.We achieved our largest positive returns from healthcare
stocks while consumer staples was the weakest performing sector. 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 all cases,
performance is measured from commencement of the classes on September 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 the S&P/BARRA Value
Index, which is a capitalization-weighted index comprised of stocks of the S&P
500 with lower book-to-price ratios relative to the S&P 500 as a whole. 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 those investments found in an index.
5 Oppenheimer Trinity Value Fund
<PAGE>
FUND PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Trinity Value Fund (Class A) and S&P/BARRA Value Index
Oppenheimer S&P/BARRA
Trinity Value
Value Index
Fund
09/01/99 9,425 10,000
10/31/99 9,152 10,151
01/31/00 8,773 10,137
04/30/00 9,057 10,424
07/31/00 9,001 10,245
CUMULATIVE TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 7/31/00(1)
LIFE -9.99%
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Trinity Value Fund (Class B) and S&P/BARRA Value Index
Oppenheimer S&P/BARRA
Trinity Value
Value Index
Fund
09/01/99 10,000 10,000
10/31/99 9,690 10,151
01/31/00 9,282 10,137
04/30/00 9,552 10,424
07/31/00 9,010 10,245
CUMULATIVE TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 7/31/00(1)
LIFE -9.90%
6 Oppenheimer Trinity Value Fund
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Trinity Value Fund (Class C) and S&P/BARRA Value Index
Oppenheimer S&P/BARRA
Trinity Value
Value Index
Fund
09/01/99 10,000 10,000
10/31/99 9,690 10,151
01/31/00 9,273 10,137
04/30/00 9,653 10,424
07/31/00 9,477 10,245
CUMULATIVE TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 7/31/00(1)
LIFE -5.23%
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Trinity Value Fund (Class Y) and S&P/BARRA Value Index
Oppenheimer S&P/BARRA
Trinity Value
Value Index
Fund
09/01/99 10,000 10,000
10/31/99 9,710 10,151
01/31/00 9,316 10,137
04/30/00 9,607 10,424
07/31/00 9,567 10,245
CUMULATIVE TOTAL RETURN OF CLASS Y SHARES OF THE FUND AT 7/31/00(1)
LIFE -4.33%
The performance information for the S&P BARRA Value Index in the graphs begins
on 8/31/99 for all classes.
1. See page 8 for further details.
Past performance is not predictive of future results. Graphs are not drawn to
the same scale.
7 Oppenheimer Trinity Value 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 include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized.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
Trinity Value Fund has a limited operating history and is not an index fund.The
commencement date of all classes is 9/1/99.
Unless otherwise noted, Class A shares cumulative total returns are shown net of
the applicable 5.75% maximum initial sales charge.
Unless otherwise noted, Class B shares cumulative total returns are shown net of
the applicable contingent deferred sales charge of 5% (since commencement).
Class B shares are subject to an annual 0.75% asset-based sales charge.
Unless otherwise noted, Class C shares cumulative total returns are shown net of
the applicable 1% contingent deferred sales charge (since commencement). 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
agreement with the distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
8 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS July 31, 2000
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 96.4%
-------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.4%
-------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 2.4%
-------------------------------------------------------------------------------------------------------------------------
Dow Chemical Co. 2,900 $ 83,375
-------------------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) de Nemours & Co. 900 40,781
----------------
124,156
-------------------------------------------------------------------------------------------------------------------------
PAPER - 1.0%
-------------------------------------------------------------------------------------------------------------------------
Westvaco Corp. 1,900 52,131
-------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 8.0%
-------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 1.1%
-------------------------------------------------------------------------------------------------------------------------
TRW, Inc. 1,300 58,419
-------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.8%
-------------------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 1,200 42,075
-------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 6.1%
-------------------------------------------------------------------------------------------------------------------------
Bemis Co., Inc. 800 27,500
-------------------------------------------------------------------------------------------------------------------------
Crane Co. 1,400 30,800
-------------------------------------------------------------------------------------------------------------------------
Danaher Corp. 300 15,281
-------------------------------------------------------------------------------------------------------------------------
Deere & Co. 1,700 65,556
-------------------------------------------------------------------------------------------------------------------------
Parker-Hannifin Corp. 200 7,112
-------------------------------------------------------------------------------------------------------------------------
Tektronix, Inc. 300 18,450
-------------------------------------------------------------------------------------------------------------------------
Temple-Inland, Inc. 1,000 43,437
-------------------------------------------------------------------------------------------------------------------------
Tyco International Ltd. 1,500 80,250
-------------------------------------------------------------------------------------------------------------------------
United Technologies Corp. 600 35,025
----------------
323,411
-------------------------------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES - 9.3%
-------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE - 5.5%
-------------------------------------------------------------------------------------------------------------------------
AT&T Corp. 2,900 89,719
-------------------------------------------------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 3,200 114,000
-------------------------------------------------------------------------------------------------------------------------
Verizon Communications 1,600 75,200
-------------------------------------------------------------------------------------------------------------------------
WorldCom, Inc. (1) 300 11,719
----------------
290,638
-------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 3.8%
-------------------------------------------------------------------------------------------------------------------------
BellSouth Corp. 1,900 75,644
-------------------------------------------------------------------------------------------------------------------------
SBC Communications, Inc. 3,000 127,687
----------------
203,331
-------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 9.2%
-------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 5.0%
-------------------------------------------------------------------------------------------------------------------------
Ford Motor Co. 1,100 51,219
-------------------------------------------------------------------------------------------------------------------------
Fortune Brands, Inc. 2,400 54,000
-------------------------------------------------------------------------------------------------------------------------
General Motors Corp. 1,200 68,325
-------------------------------------------------------------------------------------------------------------------------
Whirlpool Corp. 2,100 90,694
----------------
264,238
-------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.1%
-------------------------------------------------------------------------------------------------------------------------
Marriott International, Inc., Cl. A 1,500 60,000
-------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.5%
-------------------------------------------------------------------------------------------------------------------------
Meredith Corp. 800 25,450
</TABLE>
9 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
Retail: General - 1.2%
-------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 2,100 $ 62,737
-------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 1.4%
-------------------------------------------------------------------------------------------------------------------------
Target Corp. 2,600 75,400
-------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.0%
-------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT - 0.7%
-------------------------------------------------------------------------------------------------------------------------
McDonald's Corp. 1,200 37,800
-------------------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS - 1.0%
-------------------------------------------------------------------------------------------------------------------------
CVS Corp. 1,400 55,212
-------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 3.3%
-------------------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp. 1,000 57,437
-------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 2,100 119,437
----------------
176,874
-------------------------------------------------------------------------------------------------------------------------
ENERGY - 11.4%
-------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES - 1.1%
-------------------------------------------------------------------------------------------------------------------------
Halliburton Co. 500 23,062
-------------------------------------------------------------------------------------------------------------------------
Schlumberger Ltd. 300 22,181
-------------------------------------------------------------------------------------------------------------------------
Transocean Sedco Forex, Inc. 300 14,850
----------------
60,093
-------------------------------------------------------------------------------------------------------------------------
OIL: DOMESTIC - 8.6%
-------------------------------------------------------------------------------------------------------------------------
Apache Corp. 200 9,950
-------------------------------------------------------------------------------------------------------------------------
Burlington Resources, Inc. 1,200 39,150
-------------------------------------------------------------------------------------------------------------------------
Chevron Corp. 800 63,200
-------------------------------------------------------------------------------------------------------------------------
Exxon Mobil Corp. 3,300 264,000
-------------------------------------------------------------------------------------------------------------------------
Kerr-McGee Corp. 200 10,975
-------------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. 600 16,012
-------------------------------------------------------------------------------------------------------------------------
Texaco, Inc. 1,000 49,437
----------------
452,724
-------------------------------------------------------------------------------------------------------------------------
OIL: INTERNATIONAL - 1.7%
-------------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 1,500 87,375
-------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 29.0%
-------------------------------------------------------------------------------------------------------------------------
BANKS - 15.4%
-------------------------------------------------------------------------------------------------------------------------
Bank of America Corp. 1,500 71,062
-------------------------------------------------------------------------------------------------------------------------
BB&T Corp. 4,200 104,737
-------------------------------------------------------------------------------------------------------------------------
Firstar Corp. 2,400 47,400
-------------------------------------------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc. 1,000 133,500
-------------------------------------------------------------------------------------------------------------------------
Northern Trust Corp. 1,400 104,825
-------------------------------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 2,400 114,900
-------------------------------------------------------------------------------------------------------------------------
U.S. Bancorp 3,700 70,994
-------------------------------------------------------------------------------------------------------------------------
Wells Fargo Co. 4,000 165,250
----------------
812,668
-------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 11.6%
-------------------------------------------------------------------------------------------------------------------------
American Express Co. 2,100 119,044
-------------------------------------------------------------------------------------------------------------------------
Citigroup, Inc. 4,200 296,362
-------------------------------------------------------------------------------------------------------------------------
Fannie Mae 2,700 134,663
-------------------------------------------------------------------------------------------------------------------------
Freddie Mac 1,100 43,381
-------------------------------------------------------------------------------------------------------------------------
Synovus Financial Corp. 1,000 18,000
----------------
611,450
</TABLE>
10 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
Insurance - 2.0%
-------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 900 $ 78,919
-------------------------------------------------------------------------------------------------------------------------
Torchmark Corp. 1,100 27,363
----------------
106,282
-------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 3.5%
-------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 2.2%
-------------------------------------------------------------------------------------------------------------------------
Pharmacia Corp. 1,038 56,831
-------------------------------------------------------------------------------------------------------------------------
UnitedHealth Group, Inc. 700 57,269
----------------
114,100
-------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 1.3%
-------------------------------------------------------------------------------------------------------------------------
Biomet, Inc. 500 22,375
-------------------------------------------------------------------------------------------------------------------------
HEALTHSOUTH Corp. (1) 3,500 20,781
-------------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp. 900 27,394
----------------
70,550
-------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 9.7%
-------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 5.6%
-------------------------------------------------------------------------------------------------------------------------
Apple Computer, Inc. (1) 1,100 55,894
-------------------------------------------------------------------------------------------------------------------------
Compaq Computer Corp. 3,800 106,638
-------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 700 76,431
-------------------------------------------------------------------------------------------------------------------------
Pitney Bowes, Inc. 1,700 58,863
----------------
297,826
-------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.1%
-------------------------------------------------------------------------------------------------------------------------
Advanced Micro Devices, Inc. (1) 900 64,744
-------------------------------------------------------------------------------------------------------------------------
Molex, Inc. 900 42,342
-------------------------------------------------------------------------------------------------------------------------
Motorola, Inc. 900 29,756
-------------------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc. (1) 500 26,969
----------------
163,811
-------------------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY - 1.0%
-------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 900 49,388
-------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 300 4,463
----------------
53,851
-------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9%
-------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 3.1%
-------------------------------------------------------------------------------------------------------------------------
AES Corp. (The) (1) 1,400 74,813
-------------------------------------------------------------------------------------------------------------------------
Duke Energy Corp. 1,400 86,363
----------------
161,176
-------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 4.8%
-------------------------------------------------------------------------------------------------------------------------
El Paso Energy Corp. 200 9,675
-------------------------------------------------------------------------------------------------------------------------
Enron Corp. 2,100 154,613
-------------------------------------------------------------------------------------------------------------------------
Sempra Energy 4,900 91,875
----------------
256,163
----------------
Total Common Stocks (Cost $5,082,045) 5,099,941
</TABLE>
11 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements - 5.0%
-------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Banc One Capital Markets, Inc.,
6.53%, dated 7/31/00, to be repurchased at $265,048 on
8/1/00, collateralized by U.S. Treasury Nts., 4.25%-7.875%,
8/31/00--8/15/09, with a value of $193,589 and U.S. Treasury
Bonds, 5.25%--14%, 8/15/03--11/15/28, with a value of
$77,326 (Cost $265,000) $ 265,000 $ 265,000
-------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $5,347,045) 101.4% 5,364,941
-------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.4) (71,941)
--------------- -----------
NET ASSETS 100.0% $5,293,000
=============== ===========
</TABLE>
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
12 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 2000
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments, at value (cost $5,347,045) - see accompanying statement $5,364,941
-------------------------------------------------------------------------------------------------------------------------------
Cash 1,343
-------------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 20,884
Interest 4,168
Investments sold 3,869
Other 4
-----------------
Total assets 5,395,209
-------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 73,491
Shares of beneficial interest redeemed 19,672
Distribution and service plan fees 2,389
Shareholder reports 1,775
Transfer and shareholder servicing agent fees 171
Trustees' compensation 95
Other 4,616
-----------------
Total liabilities 102,209
-------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $5,293,000
=================
-------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $5,330,493
-------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 5,131
-------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (60,520)
-------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 17,896
-----------------
Net assets $5,293,000
=================
</TABLE>
13 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Continued
-------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
<S> <C>
Net asset value and redemption price per share (based on net assets of
$3,797,560 and 398,732 shares of beneficial interest outstanding) $9.52
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $10.10
-------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $643,078
and 68,050 shares of beneficial interest outstanding) $9.45
-------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $851,409
and 88,928 shares of beneficial interest outstanding) $9.57
-------------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $953 and 100 shares of beneficial interest outstanding) $9.53
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Period from September 1, 1999
(commencement of operations) to July 31, 2000
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C>
Dividends $51,860
-------------------------------------------------------------------------------------------------------------------------------
Interest 8,116
-----------------
Total income 59,976
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 22,550
-------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,769
Class B 2,132
Class C 2,359
-------------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,660
Class B 184
Class C 210
Class Y --
-------------------------------------------------------------------------------------------------------------------------------
Shareholder reports 8,989
-------------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 4,040
-------------------------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 1,727
-------------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 1,655
-------------------------------------------------------------------------------------------------------------------------------
Insurance expense 1,264
-------------------------------------------------------------------------------------------------------------------------------
Trustees' compensation 122
-------------------------------------------------------------------------------------------------------------------------------
Other 197
-----------------
Total expenses 49,858
Less expenses paid indirectly (1,654)
-----------------
Net expenses 48,204
-------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 11,772
-------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on investments (60,520)
-------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 17,896
-----------------
Net realized and unrealized loss (42,624)
--------------------------------------------------------------------------------------------------------------=================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ($30,852)
=================
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Trinity Value Fund
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED
JULY 31, 2000(1)
-------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C>
Net investment income $ 11,772
-------------------------------------------------------------------------------------------------------------------------------
Net realized loss (60,520)
-------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 17,896
-----------------
Net decrease in net assets resulting from operations (30,852)
-------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment
income:
Class A (7,408)
Class B (185)
Class C (1)
Class Y (4)
-------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions:
Class A 3,769,200
Class B 630,688
Class C 828,562
Class Y --
-------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 5,190,000
-------------------------------------------------------------------------------------------------------------------------------
Beginning of period 103,000 (2)
-----------------
End of period (including undistributed net investment
income of $5,131 for the period ended July 31, 2000) $5,293,000
=================
</TABLE>
1. For the period from September 1, 1999 (commencement of operations) to July
31, 2000.
2. Reflects the value of the Manager's initial seed money investment at
August 18, 1999.
See accompanying Notes to Financial Statements.
16 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
JULY 31, 2000(1) JULY 31, 2000(1) JULY 31, 2000(1) JULY 31, 2000(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) .05 .01 (.02) .07
Net realized and unrealized loss (.50) (.53) (.41) (.50)
------------------ ----------------- ----------------- -----------------
Total loss from investment operations (.45) (.52) (.43) (.43)
-----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) (.03) -- (2) (.04)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.52 $9.45 $9.57 $9.53
================== ================= ================= =================
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) (4.50)% (5.18)% (4.27)% (4.33)%
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $3,798 $643 $851 $1
-----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,802 $235 $260 $1
-----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income (loss) 0.52% (0.36)% (0.36)% 0.62%
Expenses 1.53% 2.41% 2.41% 1.42%
Expenses, net of indirect expenses 1.47% 2.35% 2.35% 1.37%
-----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 285% 285% 285% 285%
</TABLE>
1. For the period from September 1, 1999 (commencement of operations) to July
31, 2000.
2. Less than $0.005.
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.
See accompanying Notes to Financial Statements.
17 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Trinity Value 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 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 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.
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
FEDERAL TAXES The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. As of July 31, 2000, the
Fund had available for federal income tax purposes an unused capital loss
carryover as follows:
EXPIRING
--------------
2008 $60,520
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.
18 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 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 period ended
July 31, 2000, amounts have been reclassified to reflect a decrease in paid-in
capital of $957. Undistributed net investment income was increased by the same
amount. 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.
19 Oppenheimer Trinity Value 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>
PERIOD ENDED JULY 31, 2000(1)
SHARES AMOUNT
<S> <C> <C>
----------------------------------------------------------------------------------------
CLASS A
Sold 436,509 $4,185,851
Dividends and/or distributions reinvested 120 1,147
Redeemed (47,897) (417,798)
-------- ----------
Net increase 388,732 $3,769,200
======== ==========
----------------------------------------------------------------------------------------
CLASS B
Sold 78,094 $ 727,466
Dividends and/or distributions reinvested 19 182
Redeemed (10,163) (96,960)
-------- ----------
Net increase 67,950 $ 630,688
======== ==========
----------------------------------------------------------------------------------------
CLASS C
Sold 91,083 $ 850,172
Dividends and/or distributions reinvested -- --
Redeemed (2,255) (21,610)
-------- ----------
Net increase 88,828 $ 828,562
======== ==========
----------------------------------------------------------------------------------------
CLASS Y
Sold -- $ --
Dividends and/or distributions reinvested -- --
Redeemed -- --
-------- ---------
Net increase -- $ --
======== =========
</TABLE>
1. For the period from September 1, 1999 (commencement of operations) to
July 31, 2000.
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the period ended July 31, 2000, were
$14,545,705 and $9,403,139, respectively.
As of July 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $5,347,045 was:
<TABLE>
<S> <C>
Gross unrealized appreciation $274,178
Gross unrealized depreciation (256,282)
--------
Net unrealized appreciation $ 17,896
========
</TABLE>
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 July 31, 2000 was an annualized rate
of 0.75%, before any waiver by the Manager if applicable.
20 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES CONTINUED
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.
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 July 31, 2000, the Manager paid $6,458 to the Sub-Advisor.
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 FRONT-END COMMISSIONS ON COMMISSIONS ON COMMISSIONS ON
FRONT-END SALES SALES CHARGES CLASS A SHARES CLASS B SHARES CLASS C SHARES
CHARGES ON CLASS RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
PERIOD ENDED A SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
------------------- ------------------ -------------------- ---------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
July 31, 2000 $10,091 $2,654 $1,281 $18,872 $6,991
------------------- ------------------ -------------------- ---------------- ----------------- ----------------
</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 DEFERRED CLASS B CONTINGENT CLASS C CONTINGENT
SALES CHARGES RETAINED BY DEFERRED SALES CHARGES DEFERRED SALES CHARGES
PERIOD ENDED DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
----------------------- ------------------------------ ---------------------------- ---------------------------
<S> <C> <C> <C>
July 31, 2000 $-- $1,041 $--
----------------------- ------------------------------ ---------------------------- ---------------------------
</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 July 31, 2000, payments
under the Class A plan totaled $2,769 prior to Manager waivers if applicable,
all of which were paid by the Distributor to recipients. Any unreimbursed
expenses the Distributor incurs with respect to Class A shares in any fiscal
year cannot be recovered in subsequent years.
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
21 Oppenheimer Trinity Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 JULY
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 $2,132 $1,988 $17,104 2.66%
------------------- --------------------- ---------------------- ---------------------------- ------------------------
CLASS C PLAN 2,359 2,198 9,503 1.12
------------------- --------------------- ---------------------- ---------------------------- ------------------------
</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 July 31, 2000.
22 Oppenheimer Trinity Value Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Trinity Value Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Trinity Value Fund as of July 31,
2000, and the related statement of operations, statement of changes in net
assets and financial highlights for the period from September 1, 1999
(commencement of operations) to July 31, 2000. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with 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; where replies 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 audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Oppenheimer Trinity Value Fund as of July 31, 2000, and the results of its
operations, the changes in its net assets and financial highlights for the
period from September 1, 1999 (commencement of operations) to July 31, 2000, in
conformity with accounting principles generally accepted in the United States of
America.
KPMG LLP
Denver, Colorado
August 21, 2000
23 Oppenheimer Trinity Value 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.
Dividends of $0.0298, $0.0325, $0.0030 and $0.0372 per share were paid to Class
A, Class B, Class C and Class Y shareholders, respectively, on December 8, 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 period ended July 31, 2000 which are not
designated as capital gain distributions should be multiplied by 100% 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.
24 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 J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
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
This is a copy of a report to shareholders of Oppenheimer Trinity Value 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, AND 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.
25 Oppenheimer Trinity Value 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
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economy and issues that may affect your investments
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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.
RA0381.001.0700 September 29, 2000
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