<PAGE>
Semiannual Report April 30, 2000
Oppenheimer
Emerging Technologies Fund
[LOGO]OppenheimersFunds/r/
The Right Way to Invest
<PAGE>
PRESIDENT'S LETTER
BRIDGET A. MACASKILL
President
Oppenheimer
Emerging Technologies Fund
DEAR SHAREHOLDER,
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may have assumed too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Several months ago, Alan Greenspan, the Chairman of the Federal Reserve Board,
stated his view that the spectacular returns some sectors of the market were
then experi-encing may have been partly responsible for pushing our economy to
growth rates that could lead to higher inflation. Today it is clear that the
dramatic rise in the prices of a narrow segment of the market created enormous
wealth for some investors. The result of this new-found wealth has been a
substantial increase in spending that the Federal Reserve Board believes could
threaten the healthy growth of our economy.
That's why the Fed has been raising interest rates steadily and decisively over
the past year. By making borrowing more expensive, the Fed has been attempting
to slow economic growth. It is a precarious balancing act: too much tightening
creates the risk of recession, while too little opens the door to inflation.
The implications of the Fed's resolve are clear: investors must continue to be
prepared for near-term market volatility. In the bond market, higher interest
rates usually lead to lower bond prices. In the stock market, slower economic
growth often reduces corporate earnings and puts downward pressure on stock
prices. Highly valued stocks can be particularly vulnerable to a correction. The
Securities and Exchange Commission Chairman, Arthur Levitt, has been cautioning
investors against the expectation that the types of returns seen in the recent
bull market will last forever.
Because of the prospect of continued market volatility, we encourage you to
consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While some "new economy" stocks have risen over the last year, many so-called
"old economy" stocks are selling at low prices. In the bond market, higher
interest rates over the short term may reduce inflation concerns, which should
be beneficial over the long term. By buying out-of-favor investments, you may be
able to profit when and if they return to favor.
What specific investments should you consider today so that you are prepared for
tomorrow? The answer depends on your individual investing goals, risk tolerance
and finan-cial circumstances. We urge you to talk with your financial advisor
about ways to diversify your portfolio. This may include considering global
diversification as part of your strategy. While investing abroad has special
risks, such as the effects of foreign currency fluctuations, it also offers
opportunities to participate in global economic growth and to hedge against the
volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, THE RIGHT WAY TO
INVEST.
Sincerely,
/s/Bridget A. Macaskill
Bridget A. Macaskill
May 19, 2000
2 Oppenheimer Emerging Technologies Fund
<PAGE>
STRATEGY
The fund is designed for investors seeking long-term capital appreciation and
expects to invest mainly in the common stocks of U.S. and foreign technology
companies believed by the portfolio manager to offer significant growth
potential. We seek companies, which develop or benefit from emerging
technologies. These companies may be users, purchasers and/or developers of
"new"economy technology products, processes and/or services. Some of the areas
we anticipate investing in that involve emerging technology are:
* Bandwidth--This term refers to the rate at which information travels across a
communications network. New technologies are enhancing bandwidth capacity,
permitting greater voice, video and/or data transmissions.
* Photonics--This term refers to the transmission of data through light rather
than by electrical impulses. Photonics aims to enhance information transmission
capacity.
* Telecommunications
* Wireless, satellite and other new communications
* Computer hardware and software
* Combination of voice, video and data systems.
COMMENTARY BY BRUCE BARTLETT, PORTFOLIO MANAGER
The Fund commenced operations on April 25, 2000, focusing on information
and communication companies that are seeking to enhance bandwidth and optical
capabilities. The last five days of April were relatively uneventful with
technology stocks performing slightly positive. The Microsoft litigation
continues to put pressure on the entire market, with particular sensitivities
found in the technology sector. New technology companies and those with low or
no earnings have experienced a pullback. Because of ongoing market volatility,
Fund performance may be subject to substantial short-term fluctuations. However,
by focusing on emerging technology companies, which exhibit strong revenue
growth and competitive positioning, we seek to uncover future market leaders
that withstand the test of time.
3 Oppenheimer Emerging Technologies Fund
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS April 30, 2000 / Unaudited
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
=======================================================================================================================
COMMON STOCKS - 47.9%
-----------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 4.6%
-----------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 2.2%
-----------------------------------------------------------------------------------------------------------------------
E-Tek Dynamics, Inc. (1) 3,900 $ 798,525
-----------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 2.4%
-----------------------------------------------------------------------------------------------------------------------
Corning, Inc. 4,460 880,850
-----------------------------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES - 4.8%
-----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE - 4.2%
-----------------------------------------------------------------------------------------------------------------------
Broadcom Corp., Cl. A (1) 2,300 396,462
-----------------------------------------------------------------------------------------------------------------------
Brocade Communications Systems, Inc. (1) 1,250 155,000
-----------------------------------------------------------------------------------------------------------------------
Copper Mountain Networks, Inc. (1) 5,850 487,744
-----------------------------------------------------------------------------------------------------------------------
Exodus Communications, Inc. (1) 5,600 495,250
--------------
1,534,456
-----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-WIRELESS - 0.6%
-----------------------------------------------------------------------------------------------------------------------
Aether Systems, Inc. (1) 1,200 199,781
-----------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 38.5%
-----------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 2.7%
-----------------------------------------------------------------------------------------------------------------------
EMC Corp. (1) 4,475 621,745
-----------------------------------------------------------------------------------------------------------------------
Network Appliance, Inc. (1) 2,500 184,844
-----------------------------------------------------------------------------------------------------------------------
Redback Networks, Inc. (1) 300 23,812
-----------------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc. (1) 1,725 158,592
--------------
988,993
-----------------------------------------------------------------------------------------------------------------------
COMPUTER SERVICES - 4.4%
-----------------------------------------------------------------------------------------------------------------------
Applied Micro Circuits Corp. (1) 7,700 992,337
-----------------------------------------------------------------------------------------------------------------------
Finisar Corp. (1) 6,700 249,994
-----------------------------------------------------------------------------------------------------------------------
Foundry Networks, Inc. (1) 3,000 273,000
-----------------------------------------------------------------------------------------------------------------------
Sycamore Networks, Inc. (1) 1,325 104,012
--------------
1,619,343
-----------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.2%
-----------------------------------------------------------------------------------------------------------------------
Intertrust Technologies Corp. (1) 6,900 158,700
-----------------------------------------------------------------------------------------------------------------------
Mercury Interactive Corp. (1) 1,900 171,000
-----------------------------------------------------------------------------------------------------------------------
Micromuse, Inc. (1) 1,850 181,531
-----------------------------------------------------------------------------------------------------------------------
Tricord Systems, Inc. (1) 21,600 270,000
-----------------------------------------------------------------------------------------------------------------------
Veritas Software Corp. (1) 3,625 388,838
--------------
1,170,069
-----------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 18.4%
-----------------------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (1) 6,800 413,100
-----------------------------------------------------------------------------------------------------------------------
Audiocodes Ltd. (1) 2,400 180,000
-----------------------------------------------------------------------------------------------------------------------
Bookham Technology plc, ADR (1) 28,000 1,456,000
-----------------------------------------------------------------------------------------------------------------------
CIENA Corp. (1) 5,700 704,662
-----------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (1) 8,800 610,088
-----------------------------------------------------------------------------------------------------------------------
Harmonic, Inc. (1) 5,350 394,897
-----------------------------------------------------------------------------------------------------------------------
Newport Corp. 6,175 749,105
-----------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 11,300 642,688
-----------------------------------------------------------------------------------------------------------------------
Nortel Networks Corp. 7,690 870,893
-----------------------------------------------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 10,600 689,663
--------------
6,711,096
</TABLE>
4 Oppenheimer Emerging Technologies Fund
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited/Continued
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------
Electronics - 9.8%
-----------------------------------------------------------------------------------------------------------------------
JDS Uniphase Corp. (1) 11,900 $ 1,233,881
-----------------------------------------------------------------------------------------------------------------------
LSI Logic Corp. (1) 7,000 437,500
-----------------------------------------------------------------------------------------------------------------------
PMC-Sierra, Inc. (1) 1,900 364,563
-----------------------------------------------------------------------------------------------------------------------
RF Micro Devices, Inc. (1) 1,350 140,484
-----------------------------------------------------------------------------------------------------------------------
SDL, Inc. (1) 4,925 960,375
-----------------------------------------------------------------------------------------------------------------------
Virata Corp. (1) 1,280 160,320
-----------------------------------------------------------------------------------------------------------------------
Vitesse Semiconductor Corp. (1) 3,800 258,638
--------------
3,555,761
--------------
Total Common Stocks (Cost $15,791,929) 17,458,874
PRINCIPAL
AMOUNT
-----------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 49.3%
-----------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 5.70%, dated
4/28/00, to be repurchased at $18,008,550 on 5/1/00, collateralized by
U.S. Treasury Bonds, 6.50%--12.75%, 11/15/10--11/15/26, with a
value of $10,852,922 and U.S. Treasury Nts., 4.50%--7%,
8/31/00-7/15/06, with a value of $7,551,547 (Cost $18,000,000) $18,000,000 18,000,000
-----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $33,791,929) 97.2% 35,458,874
-----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.8 1,039,581
----------------- ----------------
NET ASSETS 100.0% $36,498,455
================= ================
</TABLE>
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
5 Oppenheimer Emerging Technologies Fund
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES April 30, 2000 / Unaudited
<TABLE>
<CAPTION>
<S> <C>
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (including repurchase agreement of $18,000,000)
(cost $33,791,929) - see accompanying statement $35,458,874
---------------------------------------------------------------------------------------------------------------------------------
Cash 182,308
---------------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 14,974,890
Investments sold 23,607
Interest 8,550
-------------------
Total assets 50,648,229
---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 14,139,818
Distribution and service plan fees 787
Shares of beneficial interest redeemed 524
Management and administrative fees 359
Other 8,286
-------------------
Total liabilities 14,149,774
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $36,498,455
===================
---------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $34,836,082
---------------------------------------------------------------------------------------------------------------------------------
Accumulated net investment income 321
---------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (4,893)
---------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 1,666,945
-------------------
Net assets $36,498,455
===================
</TABLE>
6 Oppenheimer Emerging Technologies Fund
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Unaudited/Continued
<TABLE>
<CAPTION>
<S> <C>
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$21,703,863 and 2,033,952 shares of beneficial interest outstanding) $10.67
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $11.32
---------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $12,302,615
and 1,152,917 shares of beneficial interest outstanding) $10.67
---------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $2,490,910
and 233,419 shares of beneficial interest outstanding) $10.67
---------------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $1,067 and 100 shares of beneficial interest outstanding) $10.67
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Emerging Technologies Fund
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Period from April 25, 2000
(commencement of operations) to April 30,
2000 / Unaudited
<TABLE>
<CAPTION>
<S> <C>
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 12,807
---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 3,466
---------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 420
Class B 862
Class C 188
---------------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 7,550
-------------------
Total expenses 12,486
---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 321
---------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on investments (4,893)
---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 1,666,945
-------------------
Net realized and unrealized gain 1,662,052
---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,662,373
===================
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Emerging Technologies Fund
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 2000(1)
(UNAUDITED)
<S> <C>
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 321
---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (4,893)
--------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,666,945
-------------------
Net increase in net assets resulting from operations 1,662,373
---------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions:
Class A 20,592,908
Class B 11,767,824
Class C 2,372,350
Class Y --
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 36,395,455
---------------------------------------------------------------------------------------------------------------------------------
Beginning of period 103,000(1)
-------------------
End of period (including undistributed net investment
income of $321 for the period ended April 30, 2000) $36,498,455
===================
</TABLE>
1. For the period from April 25, 2000 (commencement of operations) to April 30,
2000.
2. Reflects the value of the Manager's initial seed money investment at
April 18, 2000.
See accompanying Notes to Financial Statements.
9 Oppenheimer Emerging Technologies Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y
----------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, 2000(1) APRIL 30, 2000(1) APRIL 30, 2000(1) APRIL 30, 2000(1)
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.00 $10.00 $10.00 $10.00
-------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net realized and unrealized gain .67 .67 .67 .67
------------------------------------------------------------ ---------------- --------------- ---------------
Total income from investment operations .67 .67 .67 .67
------------------------------------------------------------ ---------------- --------------- ---------------
Net asset value, end of period $10.67 $10.67 $10.67 $10.67
====== ====== ====== ======
-------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 6.70% 6.70% 6.70% 6.70%
-------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $21,704 $12,303 $2,491 $1
-------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $13,296 $6,912 $1,501 $1
-------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.22% (0.53)% (0.53)% 0.47%
Expenses 1.54% 2.29% 2.29% 1.29%
-------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 0% 0% 0% 0%
</TABLE>
1. For the period from April 25, 2000 (commencement of operations) to April 30,
2000.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or commencement of operations), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended April 30, 2000 were $15,820,429 and $23,607, respectively.
See accompanying Notes to Financial Statements.
10 Oppenheimer Emerging Technologies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Emerging Technologies Fund (the Fund) is a "non-diversified"
open-end management investment company registered under the Investment Company
Act of 1940, as amended. The Fund's investment objective is to seek long-term
capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C and Class Y shares. Class A shares are
sold at their offering price, which is normally net asset value plus 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. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount. Foreign currency exchange contracts are valued based on the
closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
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.
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.
11 Oppenheimer Emerging Technologies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
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 APRIL 30, 2000(1)
SHARES AMOUNT
------------------------------------------------------------------------------------
CLASS A
<S> <C> <C>
Sold 2,024,001 $20,593,432
Redeemed (49) (524)
--------- -----------
Net increase 2,023,952 $20,592,908
========= ===========
------------------------------------------------------------------------------------
CLASS B
Sold 1,153,301 $11,772,824
Redeemed (484) (5,000)
--------- -----------
Net increase 1,152,817 $11,767,824
========= ===========
------------------------------------------------------------------------------------
CLASS C
Sold 233,319 $ 2,372,350
Redeemed -- --
--------- -----------
Net increase 233,319 $ 2,372,350
========= ===========
------------------------------------------------------------------------------------
CLASS Y
Sold -- $ --
Redeemed -- --
--------- -----------
Net increase -- $ --
========= ===========
</TABLE>
1. For the period from April 25, 2000 (commencement of operations) to April
30, 2000.
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of April 30, 2000, net unrealized appreciation on securities of $1,666,945
was composed of gross appreciation of $1,722,287, and gross depreciation of
$55,342.
12 Oppenheimer Emerging Technologies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
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 at an
annual rate of 1.00% of average annual net assets.
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
-------------- ----------------- ------------------ ------------------- ----------------- ----------------
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 CHARGES RETAINED ADVANCED BY ADVANCED BY ADVANCED BY
PERIOD ENDED CLASS A SHARES BY DISTRIBUTOR DISTRIBUTOR1 DISTRIBUTOR1 DISTRIBUTOR1
-------------- ----------------- ------------------ ------------------- ----------------- ----------------
April 30,
2000 $-- $-- $21,291 $143,687 $11,602
-------------- ----------------- ------------------ ------------------- ----------------- ----------------
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.
---------------- ------------------------------- ------------------------------ -------------------------------
CLASS A CONTINGENT DEFERRED CLASS B CONTINGENT DEFERRED CLASS C CONTINGENT DEFERRED
SALES CHARGES RETAINED BY SALES CHARGES RETAINED BY SALES CHARGES RETAINED BY
PERIOD ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
---------------- ------------------------------- ------------------------------ -------------------------------
April 30, 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 April 30, 2000, payments
under the Class A plan totaled $420, all of which was paid by the Distributor to
recipients. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
13 Oppenheimer Emerging Technologies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited/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 APRIL
30, 2000, WERE AS FOLLOWS:
------------------- --------------------- ---------------------- ---------------------------- ------------------------
<S> <C> <C> <C> <C>
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
------------------- --------------------- ---------------------- ---------------------------- ------------------------
CLASS B PLAN $862 $-- $-- --%
------------------- --------------------- ---------------------- ---------------------------- ------------------------
CLASS C PLAN 188 -- -- --
------------------- --------------------- ---------------------- ---------------------------- ------------------------
</TABLE>
14 Oppenheimer Emerging Technologies Fund
<PAGE>
OPPENHEIMER EMERGING TECHNOLOGIES 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
Bruce L. Bartlett, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR OppenheimerFunds, Inc.
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER SERVICING
AGENT
CUSTODIAN OF PORTFOLIO
SECURITIES The Bank of New York
INDEPENDENT ACCOUNTANTS 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 accountants.
This is a copy of a report to shareholders of Oppenheimer Emerging
Technologies Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Emerging Technologies 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.
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.
15 Oppenheimer Emerging Technologies Fund
<PAGE>
RS0765.001.0400 June 29, 2000
