<PAGE>
OPPENHEIMER TARGET FUND
Semiannual Report June 30, 1995
"We have some
important
financial
goals, so
[PHOTO] we want our
investment
to increase
in value
over time."
<PAGE>
This Fund is for people who want the potential
for solid investment GROWTH over the long term.
NEWS
"HOT ON THE HEELS OF 1994'S DECENT RELATIVE PERFORMANCE, THIS FUND'S MAKING
ITS PEER GROUP LOOK LACKLUSTER IN COMPARISON."
--MORNINGSTAR MUTUAL FUNDS
4/28/95
BEAT THE AVERAGE
Total Return for the 1-Year Period Ended 6/30/95:
Oppenheimer Target Fund
Class A (at net asset value)(1)
29.22%
Lipper Capital Appreciation Funds Average(3)
22.18%
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Target Fund seeks long-term growth by investing in the stocks of
medium- sized companies that the Fund's managers believe have excellent
growth potential and are undervalued relative to their future growth
prospects. So the Fund's shareholders get the potential for long-term
appreciation.
In today's stock market, the Fund's managers are targeting consumer and
industrial companies with strong earnings momentum, as well as companies that
have excellent growth prospects, especially in the technology sector, such as
computer software and networking. The Fund also invests in U.S.-based
companies that are believed to have superior growth potential because their
products or services are in high demand abroad.
- -----------
PERFORMANCE
- -----------
Total return at net asset value for the 6 months ended 6/30/95 was 21.83% for
Class A shares and 21.16% for Class C shares.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5- and 10-year periods ended 6/30/95 were 21.79%,
11.42% and 11.30%, respectively. For Class C shares, average annual total
returns for the 1-year period ended 6/30/95 and since inception of the Class
on 12/1/93 were 26.96% and 13.38%, respectively.(2)
- -------
OUTLOOK
- -------
"The stock market in general has been extremely strong during the first half
of 1995. With the market up over 25% since last Thanksgiving, we want to
participate--but just as important, we want to protect the gains we've made
so far. We're buying very selectively, and the cash we're holding--in
addition to earning a competitive rate--should help soften the effects of any
short-term market volatility."
Robert Doll, Portfolio Manager
June 30, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on 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.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/94, 6/30/90
and 6/30/85, after deducting the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 1/22/81. The Fund's maximum sales
charge for Class A shares was higher during a portion of some of the periods
shown, and actual investment results will be different as a result of
the change. Class C returns show results of hypothetical investments on 6/30/94
and 12/1/93 (inception of class), with the 1% contingent deferred sales charge
deducted for the 1-year result. An explanation of the different performance
calculations is in the Fund's prospectus.
3. Source: Lipper Analytical Services. The Lipper total return average for the
1-year period was for 145 capital appreciation funds. The average is shown for
comparative purposes only. Oppenheimer Target Fund is characterized by Lipper as
a capital appreciation fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer Target Fund
<PAGE>
[photo]
Donald W. Spiro
President
Oppenheimer
Target Fund
[photo]
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Dear OppenheimerFunds Shareholder,
In the first six months of 1995, the stock and bond markets have improved
significantly. The Federal Reserve's seven interest rate hikes between
February 1994 and February 1995 appear to have achieved their intended
effect, as the rate of economic growth has slowed throughout the year. This
economic outlook of sustainable, healthy growth with low inflation, falling
interest rates, and talk of deficit reduction inspired investors' confidence
in the stock market. As a result, the Dow Jones Industrial Average hit record
highs repeatedly in the first half of the year.
The stock market has been strong for other reasons as well. Overall,
corporate America has done an excellent job of restructuring, and has become
more productive and profitable. Combined with continued investment in
technology and increased competitiveness abroad as a result of a weaker
dollar, these events resulted in spectacular first quarter earnings reports.
While the market's rise this year has been dramatic, it has caused our equity
investment team to become slightly more cautious. Because the market has already
registered significant gains this year, the stock market is starting to see
signs of short-term volatility, and your Fund's managers want to protect the
gains the Fund has made.
Still, the market's expansion has been fueled by underlying fundamental
strengths. So, while we are cautious, we believe it has room to continue.
Congress's continuing emphasis on deficit reduction, plus Washington's
commitment to correcting our trade imbalance, should benefit the market--in
addition to attracting foreign investments to U.S. stocks, creating even greater
demand and possibly pushing their prices up further.
Should the economy slow more than anticipated, however, we would expect to
see earnings slow eventually, which could cause the market to hesitate. In
this event, smaller companies and international stocks could begin to
outperform the large, globally-oriented companies that have led the market so
far this year. However, until your Fund's managers see signs of either
increased inflation or recession on the horizon, they remain constructive on
the market in general and will view any volatility in the near term as a time
to search for buying opportunities.
At OppenheimerFunds, our approach to the stock market is to invest with a
long-term view, to participate in upswings while remaining prudent, and,
finally, to know when to become more defensive to protect the gains we have
made.
Your portfolio manager discusses the outlook for your Fund on the following
pages. Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you continue to reach your investment goals in the future.
/s/Donald W. Spiro /s/Jon S. Fossel
Donald W. Spiro Jon S. Fossel
July 24, 1995
3 Oppenheimer Target Fund
<PAGE>
Q + A An interview with your Fund's manager.
Q What
contributed
to the Fund's
performance? [PHOTO] [PHOTO]
TARGET FUND HAS BEEN A VERY STRONG PERFORMER OVER THE PAST SIX MONTHS. WHAT
INVESTMENT DECISIONS CONTRIBUTED TO THE FUND'S PERFORMANCE?
The stock market in general has been extremely strong during the first half of
1995. Interest rates moved down, corporate earnings climbed, and U.S. companies
that do business overseas benefited from the weak dollar.
[PHOTO]
Within this bull market, the technology, financial and consumer non-cyclical
sectors were among the strongest performers. Especially in the beginning of the
year, the Fund did quite well, as we were overweighted in all three areas.
We bought companies within these sectors early on, when they were selling at
discounted prices and were able to participate as their prices increased.
WITH U.S. ECONOMIC GROWTH IN 1995 NOW SLOWING DOWN SUBSTANTIALLY FROM LATE
1994'S GROWTH RATE, WHAT CHANGES HAVE YOU MADE IN THE PORTFOLIO, AND WHY?
In general, we've been doing more selling than buying. As prices of the stocks
we owned increased, we've been selling strong performers and putting the
proceeds into stocks that we think have more appreciation potential.
Examples of some trimming we've done are Travelers, Bear Stearns and Fannie
Mae. These stocks have outperformed, and although their fundamentals are still
good, they are now more fairly valued. We were also overweighted in
American companies with broad international exposure--especially in areas such
as healthcare and name-brand consumer products--believing that this would be an
area of the market that would perform well over the period. It has, and we've
cut back on strong performers like Colgate Palmolive and Warner Lambert
4 Oppenheimer Target Fund
<PAGE>
FACING PAGE
Top left: Robert Doll,
Portfolio Manager
Top right: Christina Raulli,
Associate International Trader
Bottom left: Mark Binning, Securities
Coordinator, consults with Lawrence
Apolito, VP Equity Trading
THIS PAGE
Top: Robert Doll
Bottom: The equity trading desk [PHOTO]
A American
companies [PHOTO]
with broad
international
exposure.
because we feel they've approached their peak prices.(1)
HAS IT BEEN DIFFICULT TO FIND STOCKS THAT FIT YOUR PROFILE FOR GROWTH AT A
REASONABLE PRICE IN THE CURRENT MARKET?
Frankly, yes. It has definitely been difficult to find the stocks we want to own
at the prices we want to pay in this strong market. Because of this, and the
fact that we want to protect the gains we've made so far this year, we've
allowed some cash to accumulate in the portfolio--it's near 23% now, up from
approximately 10% in 1994.
In general, we're not selling stocks unless we've already identified a
candidate that we'd rather own. What we're looking for are stocks that haven't
fully participated in the rising market, but whose earnings look promising.
Along these lines, we've been selectively buying companies in the basic
materials sector--chemical, paper and metals producers--believing that although
the economy has slowed, once
it picks up again, these stocks should lead the market. We recently bought
Sterling Chemicals, and paper manufacturer Boise Cascade. Both companies have
excellent cash flows and have been buying back stock and raising dividends.
WHAT IS YOUR FEELING ABOUT THE MARKET'S DIRECTION?
The market has done very well, supported by a growing economy, improved
productivity and profitability, and continued positive earnings surprises
against a backdrop of lower interest rates. While we're not becoming bearish,
we feel that most of the good news from the market is probably already on the
table. Looking toward the rest of the year, if we find that the economy has
slowed more than we've expected, earnings could begin to slow, which could,
at least temporarily, be a negative for the market.
HOW ARE YOU POSITIONING THE FUND IN LIGHT OF THESE BELIEFS?
Because we don't see a recession or inflation on the horizon, we're taking a
cautiously optimistic view. With the market up over 25% since last
Thanksgiving, we want to participate--but just as important, we want to
protect the gains we've made so far. We're buying very selectively, and the
cash we're holding--in addition to earning a competitive rate--should help
soften the effects of any short-term market volatility./ /
1. The Fund's portfolio is subject to change.
5 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES--0.7%
- ----------------------------------------------------------------------------------------------------------------
Danka Business Systems PLC,
6.75% Cv. Sub. Nts., 4/1/02(1) $1,700,000 $ 1,793,500
- ----------------------------------------------------------------------------------------------------------------
First Financial Management Corp.,
5% Cv. Debs., 12/15/99 2,000,000 2,670,000
-----------
Total Convertible Corporate Bonds and Notes
(Cost $3,723,750) 4,463,500
SHARES
- ----------------------------------------------------------------------------------------------------------------
COMMON STOCKS--76.9%
- ----------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--4.0%
- ----------------------------------------------------------------------------------------------------------------
CHEMICALS--1.8% Georgia Gulf Corp. 195,000 6,361,875
- ----------------------------------------------------------------------------------------------------------------
IMC Global, Inc. 50,000 2,706,250
- -----------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.(2) 173,500 2,016,938
- -----------------------------------------------------------------------------------------------------------------
Union Carbide Corp. 40,000 1,335,000
------------
12,420,063
- -----------------------------------------------------------------------------------------------------------------
METALS--1.0% Asarco, Inc. 37,500 1,143,750
- -----------------------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co. 52,200 1,487,700
- -----------------------------------------------------------------------------------------------------------------
Magma Copper Co. 100,000 1,625,000
- -----------------------------------------------------------------------------------------------------------------
Reynolds Metals Co. 45,000 2,328,750
-----------
6,585,200
- -----------------------------------------------------------------------------------------------------------------
PAPER--1.2% Boise Cascade Corp. 75,000 3,037,500
- ----------------------------------------------------------------------------------------------------------------
Chesapeake Corp. 35,000 1,089,375
- ----------------------------------------------------------------------------------------------------------------
Federal Paper Board Co. 47,000 1,662,625
- ----------------------------------------------------------------------------------------------------------------
Willamette Industries, Inc. 40,000 2,220,000
-----------
8,009,500
- ----------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--17.8%
- ----------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--1.5% Breed Technologies, Inc. 112,000 2,688,000
- ----------------------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 40,000 1,650,000
- ----------------------------------------------------------------------------------------------------------------
Navistar International Corp.(2) 220,000 3,327,500
- ----------------------------------------------------------------------------------------------------------------
Sunbeam-Oster, Inc. 181,700 2,521,088
-----------
10,186,588
- ----------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--2.8% Brunswick Corp. 350,000 5,950,000
- ----------------------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.(2) 137,500 4,846,875
- ----------------------------------------------------------------------------------------------------------------
Department 56, Inc.(2) 51,300 1,962,225
- ----------------------------------------------------------------------------------------------------------------
Mattel, Inc. 37,500 975,000
- ----------------------------------------------------------------------------------------------------------------
Outboard Marine Corp. 95,000 1,864,375
---------------------------------------------------------------------------------------------------------------
Walt Disney Co. 60,000 3,337,500
-----------
18,935,975
- ----------------------------------------------------------------------------------------------------------------
MEDIA--1.2% Comcast Corp., Cl. A Special 140,000 2,598,750
- ----------------------------------------------------------------------------------------------------------------
Multimedia, Inc.(2) 62,500 2,421,875
- ----------------------------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(2) 75,768 3,513,741
-----------
8,534,366
</TABLE>
6 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--3.7% Dollar General Corp. 321,100 $10,154,787
- ---------------------------------------------------------------------------------------------------------------
Kohl's Corp.(2) 45,000 2,053,125
- ---------------------------------------------------------------------------------------------------------------
Neiman-Marcus Group, Inc. 25,000 356,250
- ---------------------------------------------------------------------------------------------------------------
Revco D.S., Inc.(2) 270,000 6,480,000
- ---------------------------------------------------------------------------------------------------------------
Waban, Inc.(2) 105,000 1,561,875
- ---------------------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 185,000 4,948,750
-----------
25,554,787
- ---------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--8.6% AmeriSource Health Corp.(2) 74,300 1,694,969
- ---------------------------------------------------------------------------------------------------------------
Bed Bath & Beyond, Inc. 165,000 4,001,250
- ---------------------------------------------------------------------------------------------------------------
CUC International, Inc.(2) 140,000 5,880,000
- ---------------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc.(2) 181,200 6,364,650
- ---------------------------------------------------------------------------------------------------------------
Home Depot, Inc. (The) 70,000 2,843,750
- ---------------------------------------------------------------------------------------------------------------
Micro Warehouse, Inc.(2) 130,000 5,980,000
- ---------------------------------------------------------------------------------------------------------------
Nike, Inc., Cl. B 105,000 8,820,000
- ---------------------------------------------------------------------------------------------------------------
Office Depot, Inc.(2) 150,000 4,218,750
- ---------------------------------------------------------------------------------------------------------------
OfficeMax, Inc.(2) 81,000 2,257,875
- ---------------------------------------------------------------------------------------------------------------
Staples, Inc.(2) 105,000 3,031,875
- ---------------------------------------------------------------------------------------------------------------
Tommy Hilfiger Corp.(2) 273,000 7,644,000
- ---------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(2) 20,000 585,000
- ---------------------------------------------------------------------------------------------------------------
Viking Office Products, Inc.(2) 155,000 5,676,875
-----------
58,998,994
- ---------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--15.8%
- ---------------------------------------------------------------------------------------------------------------
BEVERAGES--2.0% Canandaigua Wine Co., Inc., Cl. A(2) 120,000 5,370,000
- ---------------------------------------------------------------------------------------------------------------
Coca-Cola Co. (The) 100,000 6,375,000
- ---------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 50,000 2,281,250
-----------
14,026,250
- ---------------------------------------------------------------------------------------------------------------
FOOD--1.2% IBP, Inc. 160,000 6,960,000
- ---------------------------------------------------------------------------------------------------------------
Smithfield Foods, Inc. 40,000 852,500
-----------
7,812,500
- ---------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--5.9% Abbott Laboratories 145,000 5,872,500
- ---------------------------------------------------------------------------------------------------------------
American Home Products Corp. 10,000 773,750
- ---------------------------------------------------------------------------------------------------------------
Amgen, Inc.(2) 25,000 2,010,937
- ---------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 50,000 3,406,250
- ---------------------------------------------------------------------------------------------------------------
Elan Corp. PLC, ADR(2) 110,000 4,482,500
- ---------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 26,000 1,274,000
- ---------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 85,000 7,851,875
- ---------------------------------------------------------------------------------------------------------------
R.P. Scherer Corp.(2) 190,000 8,027,500
- ---------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 150,000 6,618,750
-----------
40,318,062
</TABLE>
7 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--4.5% Collagen Corp. 42,500 $ 727,813
- ----------------------------------------------------------------------------------------------------------------
Cordis Corp.(2) 75,000 5,006,250
- ----------------------------------------------------------------------------------------------------------------
Health Care & Retirement Corp.(2) 60,000 1,755,000
- ----------------------------------------------------------------------------------------------------------------
HealthCare COMPARE Corp.(2) 100,000 3,000,000
- ----------------------------------------------------------------------------------------------------------------
Horizon Healthcare Corp.(2) 65,000 1,161,875
- ----------------------------------------------------------------------------------------------------------------
Integrated Health Services, Inc. 40,000 1,200,000
- ----------------------------------------------------------------------------------------------------------------
Lincare Holdings, Inc.(2) 101,000 2,682,812
- ----------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 60,000 4,627,500
- ----------------------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc.(2) 50,000 2,362,500
- ----------------------------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc.(2) 31,900 1,626,900
- ----------------------------------------------------------------------------------------------------------------
Pyxis Corp.(2) 140,000 3,167,500
- ----------------------------------------------------------------------------------------------------------------
Quorum Health Group, Inc.(2) 120,000 2,430,000
- ----------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 45,000 1,378,125
------------
31,126,275
- ----------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.7% Colgate-Palmolive Co. 68,800 5,031,000
- ----------------------------------------------------------------------------------------------------------------
TOBACCO--1.5% Philip Morris Cos., Inc. 70,000 5,206,250
- ----------------------------------------------------------------------------------------------------------------
UST, Inc. 175,000 5,206,250
------------
10,412,500
- ----------------------------------------------------------------------------------------------------------------
FINANCIAL--10.4%
- ----------------------------------------------------------------------------------------------------------------
BANKS--3.5% Bank of Boston Corp. 125,000 4,687,500
- ----------------------------------------------------------------------------------------------------------------
First Interstate Bancorp 40,000 3,210,000
- ----------------------------------------------------------------------------------------------------------------
Midlantic Corp. 100,000 4,000,000
- ----------------------------------------------------------------------------------------------------------------
NationsBank Corp. 90,000 4,826,250
- ----------------------------------------------------------------------------------------------------------------
Northern Trust Corp. 10,000 402,500
- ----------------------------------------------------------------------------------------------------------------
Shawmut National Corp. 100,000 3,187,500
- ----------------------------------------------------------------------------------------------------------------
SouthTrust Corp. 130,000 3,006,250
- ----------------------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 10,000 582,500
------------
23,902,500
- ----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--4.9% Advanta Corp., Cl. A 175,000 7,295,312
- ----------------------------------------------------------------------------------------------------------------
Advanta Corp., Cl. B 70,000 2,642,500
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 15,000 1,031,250
- ----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 25,000 2,359,375
- ----------------------------------------------------------------------------------------------------------------
First USA, Inc. 190,000 8,431,250
- ----------------------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 235,000 10,428,125
- ----------------------------------------------------------------------------------------------------------------
Travelers, Inc. 36,000 1,575,000
---------------
33,762,812
- ----------------------------------------------------------------------------------------------------------------
INSURANCE--2.0% AFLAC, Inc. 150,000 6,562,500
- ----------------------------------------------------------------------------------------------------------------
Reliastar Financial Corp. 60,000 2,295,000
- ----------------------------------------------------------------------------------------------------------------
SunAmerica, Inc. 100,000 5,100,000
---------------
13,957,500
</TABLE>
8 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
INDUSTRIAL--8.0%
- ----------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.9% Emerson Electric Co. 21,000 $1,501,500
- ----------------------------------------------------------------------------------------------------------------
General Electric Co. 75,000 4,228,125
- ----------------------------------------------------------------------------------------------------------------
Molex, Inc., Cl. A 193,750 7,071,875
------------
12,801,500
- ----------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.2% Ball Corp. 40,000 1,395,000
- ----------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--4.6% Cintas Corp. 140,000 4,970,000
- ----------------------------------------------------------------------------------------------------------------
Danka Business System PLC, Sponsored ADR 95,000 2,297,812
- ----------------------------------------------------------------------------------------------------------------
First Data Corp. 170,000 9,668,750
- ----------------------------------------------------------------------------------------------------------------
Loewen Group, Inc. 100,000 3,562,500
- ----------------------------------------------------------------------------------------------------------------
Manpower, Inc. 125,000 3,187,500
- ----------------------------------------------------------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 110,000 3,245,000
- ----------------------------------------------------------------------------------------------------------------
Sensormatic Electronics Corp. 130,000 4,615,000
------------
31,546,562
- ----------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.1% Mark IV Industries, Inc. 21,000 451,500
- ----------------------------------------------------------------------------------------------------------------
O.T.F. Equities, Inc.(2) 400,000 --
------------
451,500
- ----------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.2% Canadian Pacific Ltd. 325,000 5,646,875
- -----------------------------------------------------------------------------------------------------------------
Illinois Central Corp. 88,100 3,039,450
------------
8,686,325
- ----------------------------------------------------------------------------------------------------------------
TECHNOLOGY--20.6%
- ----------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--5.7% 3Com Corp.(2) 65,000 4,355,000
- ----------------------------------------------------------------------------------------------------------------
Adaptec, Inc.(2) 105,000 3,885,000
- ----------------------------------------------------------------------------------------------------------------
Andrew Corp.(2) 110,000 6,366,250
- ----------------------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(2) 100,000 5,325,000
- ----------------------------------------------------------------------------------------------------------------
Compaq Computer Corp.(2) 75,000 3,403,125
- ----------------------------------------------------------------------------------------------------------------
Digital Equipment Corp.(2) 30,000 1,222,500
- ----------------------------------------------------------------------------------------------------------------
EMC Corp.(2) 350,000 8,487,500
- ----------------------------------------------------------------------------------------------------------------
Quantum Corp.(2) 158,000 3,614,250
- ----------------------------------------------------------------------------------------------------------------
Seagate Technology, Inc.(2) 20,000 785,000
- ----------------------------------------------------------------------------------------------------------------
Western Digital Corp.(2) 114,300 1,985,963
------------
39,429,588
- ----------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--7.4% Acclaim Entertainment, Inc.(2) 25,000 460,938
- ----------------------------------------------------------------------------------------------------------------
Adobe Systems, Inc. 15,000 870,000
- ----------------------------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 35,000 2,200,625
- ----------------------------------------------------------------------------------------------------------------
BMC Software, Inc.(2) 100,000 7,725,000
- ----------------------------------------------------------------------------------------------------------------
Cerner Corp. 5,000 306,250
- ----------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 50,000 3,387,500
- ----------------------------------------------------------------------------------------------------------------
Compuware Corp.(2) 111,000 3,413,250
- ----------------------------------------------------------------------------------------------------------------
First Financial Management Corp. 30,000 2,565,000
</TABLE>
9 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE
(continued) Informix Corp.(2) $410,000 $ 10,403,750
- ----------------------------------------------------------------------------------------------------------------
Microsoft Corp.(2) 100,000 9,037,500
- ----------------------------------------------------------------------------------------------------------------
Oracle Systems Corp.(2) 260,900 10,077,262
-------------------------------
50,447,075
- ----------------------------------------------------------------------------------------------------------------
ELECTRONICS--4.3% Arrow Electronics, Inc. 16,000 796,000
- ----------------------------------------------------------------------------------------------------------------
Checkpoint Systems, Inc. 112,000 2,492,000
- ----------------------------------------------------------------------------------------------------------------
Cypress Semiconductor Corp. 30,000 1,215,000
- ----------------------------------------------------------------------------------------------------------------
General Instrument Corp.(2) 60,000 2,302,500
- ----------------------------------------------------------------------------------------------------------------
Intel Corp. 160,000 10,130,000
- ----------------------------------------------------------------------------------------------------------------
Linear Technology Corp. 45,000 2,970,000
- ----------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc.(2) 20,000 1,355,000
- ----------------------------------------------------------------------------------------------------------------
Philips Electronics N.V. 68,000 2,907,000
- ----------------------------------------------------------------------------------------------------------------
Teradyne, Inc.(2) 70,000 4,576,250
- ----------------------------------------------------------------------------------------------------------------
VLSI Technology, Inc.(2) 35,000 1,054,375
------------
29,798,125
- ----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
- ----------------------------------------------------------------------------------------------------------------
TECHNOLOGY--3.2% ALC Communications Corp.(2) 100,000 4,512,500
- ----------------------------------------------------------------------------------------------------------------
AT&T Corp. 50,000 2,656,250
- ----------------------------------------------------------------------------------------------------------------
DSC Communications Corp.(2) 60,000 2,790,000
- ----------------------------------------------------------------------------------------------------------------
Tellabs, Inc.(2) 140,000 6,737,500
- ----------------------------------------------------------------------------------------------------------------
U.S. Long Distance Corp. 50,000 812,500
- ----------------------------------------------------------------------------------------------------------------
WorldCom, Inc.(2) 151,774 4,097,898
------------
21,606,648
- ----------------------------------------------------------------------------------------------------------------
UTILITIES--0.3%
- ----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.3% Empresa Nacional de Electricidad SA,
Sponsored ADR 45,000 2,216,250
------------
Total Common Stocks (Cost $374,385,177) 527,953,445
Units
UNITS
- ----------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ----------------------------------------------------------------------------------------------------------------
Windmere Corp. Wts., Exp. 1/98 (Cost $0) 7,094 --
</TABLE>
10 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--22.8%
- -----------------------------------------------------------------------------------------------------------------
Repurchase agreement with The First Boston
Corp., 5.95%, dated 6/30/95, to be repurchased
at $7,753,843 on 7/3/95, collateralized by
U.S. Treasury Bills maturing 12/14/95,
with a value of $7,909,869 $ 7,750,000 $ 7,750,000
- -----------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago
Capital Markets, 6.125%, dated 6/30/95, to
be repurchased at $148,672,846 on 7/3/95,
collateralized by U.S. Treasury Bonds,
11.25%, 2/15/15, with a value of
$15,159,471, U.S. Treasury Nts.,
4.75%-7.875%, 3/31/96-8/15/01, with a
value of $99,161,243, and U.S. Treasury
Bills maturing 9/28/95-12/14/95, with a
value of $37,396,722 148,597,000 148,597,000
- -----------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS (Cost $156,347,000) 156,347,000
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (Cost $534,455,927) 100.4% 688,763,945
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4) (2,462,384)
-------------- ------------
NET ASSETS 100.0% $686,301,561
-------------- ------------
-------------- ------------
<FN>
1. Represents a security sold under
Rule 144A, which is exempt from
registration under the Securities Act of
1933, as amended. This security has been
determined to be liquid under guidelines
established by the Board of Trustees.
These securities amount to $1,793,500 or
0.3% of the Fund's net assets, at June 30,
1995.
2. Non-income producing security.
</TABLE>
See accompanying Notes to Financial
Statements.
11 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at value (including repurchase agreements
of $156,347,000) (cost $534,455,927)--see accompanying statement $688,763,945
- ------------------------------------------------------------------------------------------------------------------------------
Cash 2,183
- ------------------------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 3,261,781
Interest and dividends 494,713
Shares of beneficial interest sold 4,017,241
Other 133,706
------------
Total assets 696,673,569
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 6,496,644
Shares of beneficial interest redeemed 3,106,679
Distribution and service plan fees--Note 4 144,962
Trustees' fees 120,840
Transfer and shareholder servicing agent fees 64,900
Other 437,983
------------
Total liabilities 10,372,008
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $686,301,561
------------
------------
- ------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF
NET ASSETS Paid-in capital $502,174,062
- ------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 2,261,507
- ------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment transactions 27,557,974
- ------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 154,308,018
- ------------------------------------------------------------------------------------------------------------------------------
Net assets $686,301,561
------------
------------
NET ASSET VALUE
PER SHARE Class A Shares:
Net asset value and redemption price per share (based on net assets of
$682,737,269 and 24,765,670 shares of beneficial interest outstanding) $27.57
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $29.25
- ------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $3,564,292 and 130,732 shares of beneficial
interest outstanding) $27.26
</TABLE>
See accompanying Notes to Financial
Statements.
12 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Interest $ 2,439,462
--------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $10,987) 1,868,964
-----------
Total income 4,308,426
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 1,273,766
--------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 255,050
Class C--Note 4 10,401
--------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 218,986
--------------------------------------------------------------------------------------------------------
Shareholder reports 124,462
--------------------------------------------------------------------------------------------------------
Legal and auditing fees 52,402
--------------------------------------------------------------------------------------------------------
Custodian fees and expenses 23,288
--------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 541
Class C 681
--------------------------------------------------------------------------------------------------------
Other 17,593
-----------
Total expenses 1,977,170
--------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 2,331,256
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS Net realized gain on investments 24,272,627
--------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 35,813,697
-----------
Net realized and unrealized gain on investments 60,086,324
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $62,417,580
-----------
</TABLE>
See accompanying Notes to Financial
Statements.
13 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
OPERATIONS Net investment income $ 2,331,256 $ 2,339,881
---------------------------------------------------------------------------------------------------------
Net realized gain on investments 24,272,627 38,815,275
---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 35,813,697 (40,560,449)
-------------------------------
Net increase in net assets resulting from operations 62,417,580 594,707
---------------------------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS Dividends from net investment income:
Class A ($.201 per share) -- (2,361,728)
class C ($.085 per share) -- (2,907)
---------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($2.982 per share) -- (35,048,552)
Class C ($2.982 per share) -- (102,047)
---------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST
TRANSACTIONS Net increase (decrease) in net assets resulting from
Class A beneficial interest transactions--Note 2 and 5 319,039,263 (30,283,681)
Net increase in net assets resulting from Class C beneficial
interest transactions--Note 2 2,080,494 1,154,378
---------------------------------------------------------------------------------------------------------
NET ASSETS Total increase (decrease) 383,537,337 (66,049,830)
---------------------------------------------------------------------------------------------------------
Beginning of period 302,764,224 368,814,054
-------------------------------
End of period [including undistributed (overdistributed) net
investment income of $2,261,507 and $(69,749), respectively] $686,301,561 $302,764,224
-------------------------------
-------------------------------
</TABLE>
See accompanying Notes to Financial
Statements.
14 Oppenheimer Target Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
1995 -------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991(2) 1990
-------------- ------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 22.63 $ 25.72 $ 25.25 $ 23.76 $ 17.47 $ 18.26
-------------- ------------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income (loss) .10 .20 .13 .16 .27 .39
Net realized and unrealized gain (loss)
on investments 4.84 (.11) .86 2.28 6.87 (.78)
-------------- ------------- --------- --------- --------- ---------
Total income (loss) from investment
operations 4.94 .09 .99 2.44 7.14 (.39)
-------------- ------------- --------- --------- --------- ---------
Dividends and distributions to
shareholders:
Dividends from net investment income -- (.20) (.12) (.17) (.18) (.40)
Distributions from net realized gain on
investments -- (2.98) (.40) (.78) (.67) --
-------------- ------------- --------- --------- --------- ---------
Total dividends and distributions to
shareholders -- (3.18) (.52) (.95) (.85) (.40)
-------------- ------------- --------- --------- --------- ---------
Net asset
value, end of period $ 27.57 $ 22.63 $ 25.72 $ 25.25 $ 23.76 $ 17.47
-------------- ------------- --------- --------- --------- ---------
-------------- ------------- --------- --------- --------- ---------
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 21.83% .46% 3.93% 10.27% 41.33% (2.13)%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $682,737 $301,698 $368,806 $401,256 $369,351 $ 52,526
-------------- ------------- --------- --------- --------- ---------
Average net assets (in thousands) $349,023 $325,003 $383,875 $362,295 $209,596 $ 56,208
-------------- ------------- --------- --------- --------- ---------
Number of shares outstanding at end of
period (in thousands) 24,766 13,331 14,339 15,892 15,546 3,007
-------------- ------------- --------- --------- --------- ---------
Ratios to average net assets:
Net investment income 1.34%(4) .72% .47% .69% 1.25% 2.08%
Expenses 1.13%(4) 1.16% 1.07% 1.09% 1.17% 1.33%
-------------- ------------- --------- --------- --------- ---------
Portfolio turnover rate(5) 42.3% 34.7% 22.9% 42.3% 65.6% 51.2%
<CAPTION>
CLASS C
----------------------------------------
SIX MONTHS
ENDED JUNE YEAR ENDED DECEMBER 31,
30, 1995 ------------------------
(UNAUDITED) 1994(2) 1993(1)
------------- --------- ------------
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 22.50 $ 25.72 $ 25.92
------------- --------- ------------
Income (loss) from investment
operations:
Net investment income (loss) .08 -- (.01)
Net realized and unrealized gain (loss)
on investments 4.68 (.15) .31
------------- --------- ------------
Total income (loss) from investment
operations 4.76 (.15) .30
------------- --------- ------------
Dividends and distributions to
shareholders:
Dividends from net investment income -- (.09) (.10)
Distributions from net realized gain on
investments -- (2.98) (.40)
------------- --------- ------------
Total dividends and distributions to
shareholders -- (3.07) (.50)
------------- --------- ------------
Net asset
value, end of period $ 27.26 $ 22.50 $ 25.72
------------- --------- ------------
------------- --------- ------------
- ----------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 21.16% (.50)% 2.11%
- ----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 3,564 $ 1,066 $ 8
------------- --------- ------------
Average net assets (in thousands) $ 2,108 $ 467 $ 6
------------- --------- ------------
Number of shares outstanding at end of
period (in thousands) 131 47 --
------------- --------- ------------
Ratios to average net assets:
Net investment income .45%(4) (.02)% (.07)%(4)
Expenses 2.02%(4) 2.18% 2.18%(4)
------------- --------- ------------
Portfolio turnover rate(5) 42.3% 34.7% 22.9%
<FN>
1. For the period from December 1, 1993 (inception of offering) to December 31,
1993.
2. Per share amounts calculated based on the weighted average number of
shares outstanding during the period.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended June 30, 1995 were $104,546,864 and
$119,843,084, respectively. See accompanying Notes to Financial Statements.
</TABLE>
15 Oppenheimer Target Fund
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING Oppenheimer Target Fund (the Fund) is
POLICIES registered under the Investment Company
Act of 1940, as amended, as a
diversified, open-end management
investment company. The Fund's investment
advisor is Oppenheimer Management
Corporation (the Manager). The Fund
offers both Class A and Class C shares.
Class A shares are sold with a front-end
sales charge. Class C shares may be
subject to a contingent deferred sales
charge. Both classes of shares have
identical rights to earnings, assets and
voting privileges, except that each class
has its own distribution and/or service
plan, expenses directly attributable to a
particular class and exclusive voting
rights with respect to matters affecting
a single class. The following is a
summary of significant accounting
policies consistently followed by the
Fund.
----------------------------------------------
INVESTMENT VALUATION. Portfolio
securities are valued at the close of the
New York Stock Exchange on each trading
day. Listed and unlisted securities for
which such information is regularly
reported are valued at the last sale
price of the day or, in the absence of
sales, at values based on the closing bid
or asked price 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 the 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 under
consistently applied procedures
established by the Board of Trustees to
determine fair value in good faith.
Short-term "money market type" debt
securities having a remaining maturity of
60 days or less are valued at cost (or
last determined market value) adjusted
for amortization to maturity of any
premium or discount.
----------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires
the custodian to take possession, to have
legally segregated in the Federal Reserve
Book Entry System or to have segregated
within the custodian's vault, all
securities held as collateral for
repurchase agreements. The market value
of the underlying securities is required
to be at least 102% of the resale price
at the time of purchase. If the seller of
the agreement defaults and the value of
the collateral declines, or if the seller
enters an insolvency proceeding,
realization of the value of the
collateral by the Fund may be delayed or
limited.
----------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS
AND LOSSES. Income, expenses (other than
those attributable to a specific class)
and gains and losses are allocated daily
to each class of shares based upon the
relative proportion of net assets
represented by such class. Operating
expenses directly attributable to a
specific class are charged against the
operations of that class.
----------------------------------------------
FEDERAL TAXES. The Fund intends to
continue to comply with provisions of the
Internal Revenue Code applicable to
regulated investment companies and to
distribute all of its taxable income,
including any net realized gain on
investments not offset by loss
carryovers, to shareholders. Therefore,
no federal income or excise tax provision
is required.
----------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has
adopted a nonfunded retirement plan for
the Fund's independent trustees. Benefits
are based on years of service and fees
paid to each trustee during the years of
service. During the six months ended June
30, 1995, a provision of $12,193 was made
for the Fund's projected benefit
obligations, and a payment of $2,026 was
made to a retired trustee, resulting in
an accumulated liability of $109,517 at
June 30, 1995.
----------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends
and distributions to shareholders are
recorded on the ex-dividend date.
----------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO
SHAREHOLDERS. The character of the
distributions made during the year from
net investment income or net realized
gains may differ from their 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 year that the income or realized gain
(loss) was recorded by the Fund.
----------------------------------------------
OTHER. Investment transactions are
accounted for on the date the investments
are purchased or sold (trade date) and
dividend income is recorded on the
ex-dividend date. Realized gains and
losses on investments and unrealized
appreciation and depreciation are
determined on an identified cost basis,
which is the same basis used for federal
income tax purposes.
16 Oppenheimer Target Fund
<PAGE>
- --------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited
BENEFICIAL INTEREST number of no par value shares of
beneficial interest. Transactions in
shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1995 YEAR ENDED DECEMBER 31, 1994
------------------------------ ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
Class A:
Sold 1,366,709 $ 34,221,421 1,091,689 $ 27,823,899
Dividends and distributions
reinvested -- -- 1,592,900 35,776,790
Issued in connection with the
acquisition of Oppenheimer
Time Fund--Note 5 11,277,345 315,314,574
Redeemed (1,209,261) (30,496,732) (3,693,115) (93,884,370)
---------- ------------ ---------- ------------
Net increase (decrease) 11,434,793 $319,039,263 (1,008,526) $(30,283,681)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
-----------------------------------------------------------------------------------------------
Class C:
Sold 102,454 $ 2,547,998 65,435 $ 1,619,304
Dividends and distributions
reinvested -- -- 4,518 100,882
Redeemed (19,097) (467,504) (22,893) (565,808)
---------- ------------ ---------- ------------
Net increase 83,357 $ 2,080,494 47,060 $ 1,154,378
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At June 30, 1995, net unrealized
LOSSES ON INVESTMENTS appreciation on investments of
$154,308,018 was composed of gross
appreciation of $161,460,470, and gross
depreciation of $7,152,452.
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER Management fees paid to the Manager were
TRANSACTIONS WITH AFFILIATES in accordance with the investment
advisory agreement with the Fund which
provides for a fee of .75% on the first
$200 million of average annual net
assets, .72% on the next $200 million,
.69% on the next $200 million, .66% on
the next $200 million and .60% on net
assets in excess of $800 million. The
Manager has agreed to reimburse the Fund
if aggregate expenses (with specified
exceptions) exceed the most stringent
state regulatory limit on Fund expenses.
For the six months ended June 30, 1995,
commissions (sales charges paid by
investors) on sales of Class A shares
totaled $228,199, of which $78,591 was
retained by Oppenheimer Funds
Distributor, Inc. (OFDI), a subsidiary of
the Manager, as general distributor, and
by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by
OFDI on sales of the Fund's Class C
shares totaled $15,545, of which $212 was
paid to an affiliated broker/dealer.
During the six months ended June 30,
1995, OFDI received contingent deferred
sales charges of $935 upon redemption of
Class C shares, as reimbursement for
sales commissions advanced by OFDI at the
time of sale of such shares.
Oppenheimer Shareholder Services (OSS), a
division of the Manager, is the transfer
and shareholder servicing agent for the
Fund, and for other registered investment
companies. OSS's total costs of providing
such services are allocated ratably to
these companies.
Under separate approved plans, each class
may expend up to .25% of its net assets
annually to reimburse OFDI for costs
incurred in connection with the personal
service and maintenance of accounts that
hold shares of the Fund, including
amounts paid to brokers, dealers, banks
and other institutions. In addition,
Class C shares are subject to an
asset-based sales charge of .75% of net
assets annually, to reimburse OFDI for
sales commissions paid from its own
resources at the time of sale and
associated financing costs. In the event
of termination or discontinuance of the
Class C plan, the Board of Trustees may
allow the Fund to continue payment of the
asset-based sales charge to OFDI for
distribution expenses incurred on Class C
shares sold prior to termination or
discontinuance of the plan. During the
six months ended June 30, 1995, OFDI paid
$20,149 to an affiliated broker/dealer as
reimbursement for Class A personal
service and maintenance expenses and
retained $9,631 as reimbursement for
Class C sales commissions and service fee
advances, as well as financing costs.
- --------------------------------------------------------------------------------
5. ACQUISITION OF On June 23, 1995, the Fund acquired all
OPPENHEIMER TIME FUND of the net assets of Oppenheimer Time
Fund, pursuant to an Agreement and Plan
of Reorganization approved by the
Oppenheimer Time Fund shareholders on
June 20, 1995. The Fund issued 11,277,345
shares of beneficial interest (Class A),
valued at $315,314,574 in exchange for
the net assets, resulting in combined
Class A net assets of $686,360,280 on
June 23, 1995. The exchange qualifies as
a tax-free reorganization for federal
income tax purposes.
17 Oppenheimer Target Fund
<PAGE>
- -----------------------
OPPENHEIMER TARGET FUND
- -----------------------
- --------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert C. Doll, Jr., Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- --------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- --------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein
have been taken from the records of the Fund
without examination by the independent
auditors. This is a copy of a report to
shareholders of Oppenheimer Target Fund.
This report must be preceded or accompanied
by a Prospectus of Oppenheimer Target Fund.
For material information concerning the
Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits
or obligations of any bank, are not
guaranteed by any bank, and are not insured
by the FDIC or any other agency, and involve
investment risks, including possible loss of
the principal amount invested.
18 Oppenheimer Target Fund
<PAGE>
- -----------------------
OPPENHEIMERFUNDS FAMILY
- -----------------------
- -------------------------------------------------------------------------------
OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're investing
for retirement, your children's education or tax-free
income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a
respected financial institution with over 30 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed income
investments--with over 2.6 million shareholder accounts
and more than $35 billion under Oppenheimer's management
and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares of eligible funds of the same class. And you can
exchange shares easily by mail or by telephone.(1) For
more information on OppenheimerFunds, please contact your
financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on
the back cover. As always, please read the prospectus
carefully before you invest.
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------------------------------------
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund(3) Gold & Special Minerals Fund
- ------------------------------------------------------------------------------------------
STOCK & BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- ------------------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund International Bond Fund
Strategic Income & Growth Fund Bond Fund(4)
Strategic Income Fund U.S. Government Trust
Strategic Investment Grade Bond Fund Limited-Term Government Fund
- ------------------------------------------------------------------------------------------
TAX-EXEMPT New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5)
FUNDS California Tax-Exempt Fund(5) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt Bond Fund
- ------------------------------------------------------------------------------------------
MONEY MARKET Money Market Fund Cash Reserves
FUNDS
</TABLE>
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Formerly Investment Grade Bond Fund.
5. Available only to residents of certain states.
OppenheimerFunds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-C- Copyright 1995 Oppenheimer Management Corporation. All
rights reserved.
19 Oppenheimer Target Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
affect your investments
1-800-835-3104
RS0320.001.0695 August 31, 1995
"How may I help you?"
As an OppenheimerFunds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
[photo]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- --------------------------------------------------------------------------------
--------------
[Logo] Bulk Rate
OPPENHEIMER FUNDS DISTRIBUTOR, INC. U.S. Postage
P.O. Box 5270 PAID
Denver, CO 80217-5270 Permit No. 469
Denver, CO
--------------
