[COVER PAGE]
OPPENHEIMER DISCIPLINED VALUE FUND
Annual Report October 31, 1996
[PHOTO]Pool Party
"We have a lot of
IMPORTANT
goals, so we
need our money
to GROW solidly
over time."
[LOGO]OppenheimerFunds/r/
<PAGE>
- ----
NEWS
- ----------------
BEAT THE AVERAGE
- ----------------
Cumulative Total Return for the 5-Year Period Ended 9/30/96:
Oppenheimer Disciplined
Value Fund
Class A (at net asset value)(1)
- -------
117.94%
- -------
Lipper Growth Funds Average
for 247 Growth Funds for the
5-Year Period Ended 9/30/96(3)
- ------
92.28%
- ------
The Fund's Class A shares were
ranked ****
among 1,684 (3-year),
1,014 (5-year) and 560
(10-year) equity funds for
the combined 3-, 5- and
10-year periods ended
9/30/96 by MORNINGSTAR
MUTUAL FUNDS.(4)
This Fund is for people who seek long-term growth and feel most comfortable
investing in well-established, yet UNDERVALUED companies.
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Disciplined Value Fund seeks long-term growth of capital
through investment primarily in common stocks with low price/earnings ratios and
better-than-anticipated earnings. Current income is a secondary consideration.
The management team employs a disciplined bottom-up approach to security
selection.
- -----------
PERFORMANCE
- -----------
Cumulative total return for the 12 months ended 9/30/96 for Class A shares was
16.12%, without deducting sales charges. Cumulative total return for Class B
shares since inception on 10/1/95 was 16.83%, without deducting sales charges.
Cumulative total return for Class C shares since inception on 5/1/96 was 3.14%,
without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-, 5- and
10-year periods ended 9/30/96 were 9.44%, 15.48% and 14.32%, respectively. For
Class B shares, cumulative total return since inception on 10/1/95 was 11.83%.
For Class C shares, cumulative total return since inception on 5/1/96 was
2.14%.(2)
- -------
OUTLOOK
- -------
"Although we cannot predict the future, we feel that market valuations are
extended and vulnerable to a correction. If a correction occurs, we will look
for further opportunities to purchase out-of-favor stocks with positive earnings
surprises at lower prices."
Peter Antos, Michael Strathearn and Kenneth White
Portfolio Managers
October 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. All classes of
shares have the same investment portfolio but different expenses. For more
complete information, please review the prospectus carefully before you invest.
Prior to March 1, 1996, the Fund had a different investment adviser. However,
the prior portfolio management team is now employed by OppenheimerFunds, Inc.,
the current adviser.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 9/16/85. The Fund's maximum sales
charge for Class A shares was less during a portion of some of the periods
shown, and actual investment results will be different as a result. Class B
returns include the applicable contingent deferred sales charge of 5% (since
inception). Class C returns include the applicable contingent deferred sales
charge of 1%. An explanation of the different performance calculations is in the
Fund's prospectus. Class B and C shares are subject to an annual .75%
asset-based sales charge.
3. Source: Lipper Analytical Services, 9/30/96, an independent mutual fund
monitoring service. The average is shown for comparative purposes only. Funds
included in the index may have different investment policies and risks than the
Fund. Oppenheimer Disciplined Value Fund is characterized by Lipper as a growth
fund. Lipper performance is based on total return and does not take sales
charges into account.
4. Source: MORNINGSTAR MUTUAL FUNDS, 9/30/96. Morningstar rankings are based on
risk-adjusted investment return, after considering sales charges and expenses.
Investment return measures a fund's (or class's) 3-, 5- and 10-year (depending
on the inception of the class or fund) average annual total returns in excess of
90-day U.S. Treasury bill returns. Risk measures a fund's (or class's)
performance below 90-day U.S. Treasury bill returns. Risk and returns are
combined to produce star rankings, reflecting performance relative to the
average fund in the fund's category. The top 10% of funds in each investment
class receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3 stars; the
next 22.5%, 2 stars; and the bottom 10%, 1 star. The 4-star current ranking is a
weighted average of the 3-, 5- and 10-year rankings for the Fund's Class A
shares, which were 3, 4 and 4 stars, respectively, weighted 20%/30%/50%. The
1-year star ranking is 3 stars, but is not included in Morningstar's overall
ranking calculations. There were 1,684 funds in the 1-year period. Rankings are
subject to change monthly. The Fund's Class A, B and C shares have the same
investment portfolio but different expenses.
2 Oppenheimer Disciplined Value Fund
<PAGE>
[PHOTO]Bridget A. Macaskill
Bridget A. Macaskill
President
Oppenheimer
Disciplined Value Fund
DEAR SHAREHOLDER,
Following a summer of uncertainty surrounding the economy and the stock
market, the arrival of fall brought renewed vigor to both. Most notable, the Dow
Jones Industrial Average broke out of its fluctuating pattern and burst through
the once-unimaginable 6,000 mark, sending many stock prices to all-time highs.
But as the Dow began accelerating faster than the economy, a debate erupted
about how long this bull run could last.
Looking back, the autumn rally was clearly a result of three main
factors: solid corporate profits, low inflation and stabilized interest rates,
all of which attracted investors to Wall Street. And though the stock market is
currently highly valued, there continue to be a number of positive economic
influences that may extend the market's uphill run.
We consider the leading catalyst to be the robust returns from corporate
America, where a strong economy boosted third-quarter earnings. To date, we're
still witnessing a cycle of events that could maintain the appeal of these
companies to investors. For example, corporate streamlining efforts, such as
spinoffs of non-core businesses, and consolidation within industries are helping
to increase the cash flow of many firms. In return, additional cash flows enable
these companies to add shareholder value by initiating stock repurchasing
programs. As corporations buy back record amounts of their own stocks, they are
reducing the supply and thereby raising the book value of their outstanding
shares, a move which further contributes to higher stock prices.
Additionally, the demand for stocks remains strong, largely because, as
many experts believe, investors are taking more responsibility for their
retirement investments. Indeed, as the country's baby boomers near retirement,
they are becoming increasingly aware of the need to secure their own financial
future, because they expect less and less from standard company pensions or
Social Security. As a result, equity mutual funds have become the fastest
growing means by which these investors are seeking to achieve their long-term
goals.
While these signs appear favorable for many well-managed companies,
stock valuations remain at historically high levels, causing us to become more
cautious about the market overall. We do not, however, expect to see a
significant market decline. In fact, we are confident that as long as corporate
earnings stay healthy, there will continue to be numerous investment
opportunities available to fill the demand for stocks. Nevertheless, it is
becoming more difficult to uncover true values and justify higher prices.
Therefore, we believe the correct approach to take at this point is to carefully
evaluate companies based on individual merits, such as strong management,
fundamental business policies and long-term prospects for the future.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/Bridget Macaskill
Bridget Macaskill
November 21, 1996
3 Oppenheimer Disciplined Value Fund
<PAGE>
PETER ANTOS
MICHAEL STRATHEARN
KENNETH WHITE
Portfolio Managers
An interview with your Fund's managers.
HOW DID THE FUND PERFORM OVER THE PAST YEAR?
Although we have continued our time-tested strategy of targeting stocks with
low price-to-earnings ratios and recent positive earnings surprises, 1996 has
not been a great year for the Fund. In the past, this approach led us to
undervalued stocks that performed well over time. This year, however, investors
were anxious about the economic and political environments and were willing to
pay for more highly valued stocks that offered a greater level of certainty. As
a result, our type of undervalued stocks were out of favor in this year's
growing but volatile market.
While 1996 has not provided the best environment for the Fund, our stock
discipline which emphasizes low P/E, positive-earnings-surprise, has a clearly
superior record relative to other funds in the same category over the past ten
years. With only a few periods of underperformance in the Fund's history, we
remain committed to this strategy and expect superior performance going forward.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
We screen the universe for out-of-favor, undervalued stocks that have had
recent positive earnings surprises. Unexpected by Wall Street analysts, these
surprise gains are leading indicators that out-of-favor stocks may be ready to
make a comeback. We manage from the bottom up, looking at companies rather than
sectors, to find those investments with the most growth potential.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
A few strong companies in the technology sector, specifically personal
computer manufacturers, provided the Fund with some real winners. Early in the
period, investors' feelings that the marketplace was flooded with PCs, turned
the market negative on the sector. As prices dropped, we identified high quality
companies with positive earnings potential and bought stocks at low prices that
have since appreciated.
DID ANY INVESTMENTS NEGATIVELY IMPACT THE PORTFOLIO?
Although they performed well for the Fund in the last quarter of 1995,
agricultural companies have underperformed this year. Because of low worldwide
supplies of grain and increasing food consumption in developing countries, we
had expected performance to remain strong well into 1996. It appears, however,
that these stocks had moved too far, too fast late last year and since then have
dropped back to more realistic valuations.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Despite disappointing performance during this period, our discipline has
proven itself to be very strong over time. As a result, we do not intend to
alter our strategy, and will continue to look for opportunities in undervalued
companies. Although we cannot predict the future, we feel that market valuations
are extended and vulnerable to a correction. If a correction occurs, we will
look for further opportunities to purchase out-of-favor stocks with positive
earnings surprises at lower prices.//
4 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
=========================================
STATEMENT OF INVESTMENTS October 31, 1996
FACE MARKET VALUE
AMOUNT SEE NOTE 1
==================================================================================================================================
U.S. GOVERNMENT OBLIGATIONS - 13.8%
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federal Home Loan Bank Consolidated Disc. Nts., 5.50%, 11/1/96 $18,800,000 $ 18,800,000
-----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.18%, 11/18/96 7,000,000 6,982,877
-------------
Total U.S. Government Obligations (Cost $25,782,877) 25,782,877
SHARES
==================================================================================================================================
COMMON STOCKS - 85.7%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 5.0%
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 2.7%
-----------------------------------------------------------------------------------------------------------------------
Cabot Corp. 12,500 301,562
-----------------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 31,300 2,218,387
-----------------------------------------------------------------------------------------------------------------------
Union Carbide Corp. 58,700 2,502,087
-------------
5,022,036
- ----------------------------------------------------------------------------------------------------------------------------------
METALS - 1.0%
-----------------------------------------------------------------------------------------------------------------------
UCAR International, Inc. (1) 45,400 1,776,275
- ----------------------------------------------------------------------------------------------------------------------------------
PAPER - 1.3%
-----------------------------------------------------------------------------------------------------------------------
Fort Howard Corp. (1) 95,700 2,452,312
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 9.4%
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.7%
-----------------------------------------------------------------------------------------------------------------------
Black & Decker Corp. 37,300 1,394,087
- ----------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 2.1%
-----------------------------------------------------------------------------------------------------------------------
AMR Corp. (1) 30,600 2,570,400
-----------------------------------------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A (1) 43,500 1,440,937
-------------
4,011,337
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 5.0%
-----------------------------------------------------------------------------------------------------------------------
Eckerd Corp. (1) 77,700 2,156,175
-----------------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. (1) 76,500 2,524,500
-----------------------------------------------------------------------------------------------------------------------
Price/Costco, Inc. (1) 109,100 2,168,362
-----------------------------------------------------------------------------------------------------------------------
U.S. Industries, Inc. (1) 91,400 2,467,800
-------------
9,316,837
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 1.6%
-----------------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. (1) 85,500 2,896,312
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 14.0%
- ----------------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.5%
-----------------------------------------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 72,900 2,806,650
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD - 5.9%
-----------------------------------------------------------------------------------------------------------------------
American Stores Co. 77,400 3,202,425
-----------------------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 143,390 3,118,732
-----------------------------------------------------------------------------------------------------------------------
Dole Food Co. 44,500 1,735,500
-----------------------------------------------------------------------------------------------------------------------
Kroger Co. (1) 65,100 2,905,088
-------------
10,961,745
</TABLE>
5 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
=========================================
STATEMENT OF INVESTMENTS (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 1.5%
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Bristol-Myers Squibb Co. 26,900 $ 2,844,675
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 2.4%
-----------------------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 56,700 2,027,025
-----------------------------------------------------------------------------------------------------------------------
OrNda Healthcorp (1) 92,400 2,517,900
-------------
4,544,925
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 2.7%
-----------------------------------------------------------------------------------------------------------------------
Premark International, Inc. 125,800 2,626,075
-----------------------------------------------------------------------------------------------------------------------
Tupperware Corp. 48,500 2,491,688
-------------
5,117,763
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY - 5.2%
- ----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 5.2%
-----------------------------------------------------------------------------------------------------------------------
Amoco Corp. 32,200 2,439,150
-----------------------------------------------------------------------------------------------------------------------
Chevron Corp. 61,500 4,043,625
-----------------------------------------------------------------------------------------------------------------------
Mobil Corp. 28,500 3,327,375
-------------
9,810,150
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 13.6%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS - 7.4%
-----------------------------------------------------------------------------------------------------------------------
Bank of Boston Corp. 60,300 3,859,200
-----------------------------------------------------------------------------------------------------------------------
BankAmerica Corp. 48,700 4,456,050
-----------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 9,000 771,750
-----------------------------------------------------------------------------------------------------------------------
NationsBank Corp. 25,500 2,403,375
-----------------------------------------------------------------------------------------------------------------------
PNC Bank Corp. 66,300 2,403,375
-------------
13,893,750
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.4%
-----------------------------------------------------------------------------------------------------------------------
Crescent Real Estate Equities, Inc. 36,400 1,519,700
-----------------------------------------------------------------------------------------------------------------------
Salomon, Inc. 65,300 2,946,663
-------------
4,466,363
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 3.8%
-----------------------------------------------------------------------------------------------------------------------
AFLAC, Inc. 68,900 2,764,613
-----------------------------------------------------------------------------------------------------------------------
General Re Corp. 11,300 1,663,925
-----------------------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 91,300 2,739,000
-------------
7,167,538
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 12.6%
- ----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 11.2%
-----------------------------------------------------------------------------------------------------------------------
AGCO Corp. 92,900 2,357,338
-----------------------------------------------------------------------------------------------------------------------
Case Corp. 62,200 2,892,300
-----------------------------------------------------------------------------------------------------------------------
Deere & Co. 61,000 2,546,750
-----------------------------------------------------------------------------------------------------------------------
General Signal Corp. 62,400 2,542,800
-----------------------------------------------------------------------------------------------------------------------
Ingersoll-Rand Co. 58,600 2,439,225
-----------------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 50,902 1,100,756
-----------------------------------------------------------------------------------------------------------------------
Textron, Inc. 44,000 3,905,000
-----------------------------------------------------------------------------------------------------------------------
Tyco International Ltd. 64,400 3,195,850
-------------
20,980,019
</TABLE>
6 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================================
STATEMENT OF INVESTMENTS (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.4%
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PACCAR, Inc. 15,300 $ 852,975
-----------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. 32,600 1,829,675
-------------
2,682,650
- ----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 14.4%
- ----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 9.0%
-----------------------------------------------------------------------------------------------------------------------
General Dynamics Corp. 40,300 2,765,588
-----------------------------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 42,300 1,792,463
-----------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 39,071 3,501,738
-----------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 67,900 3,700,550
-----------------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 44,600 2,453,000
-----------------------------------------------------------------------------------------------------------------------
TRW, Inc. 28,700 2,597,350
-------------
16,810,689
- ----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 3.6%
-----------------------------------------------------------------------------------------------------------------------
Dell Computer Corp. (1) 25,200 2,050,650
-----------------------------------------------------------------------------------------------------------------------
Gateway 2000, Inc. (1) 21,600 1,016,550
-----------------------------------------------------------------------------------------------------------------------
Storage Technology Corp. (New) (1) 86,300 3,678,538
-------------
6,745,738
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 1.8%
-----------------------------------------------------------------------------------------------------------------------
Atmel Corp. (1) 8,400 213,150
-----------------------------------------------------------------------------------------------------------------------
Intel Corp. 23,500 2,582,063
-----------------------------------------------------------------------------------------------------------------------
Waters Corp. (1) 17,400 539,400
-------------
3,334,613
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5%
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 4.9%
-----------------------------------------------------------------------------------------------------------------------
American Electric Power Co., Inc. 33,100 1,373,650
-----------------------------------------------------------------------------------------------------------------------
CalEnergy, Inc. (1) 48,000 1,392,000
-----------------------------------------------------------------------------------------------------------------------
Entergy Corp. 77,700 2,175,600
-----------------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 44,300 2,037,800
-----------------------------------------------------------------------------------------------------------------------
Texas Utilities Co. 54,900 2,223,450
-------------
9,202,500
- ----------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 5.4%
-----------------------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc. (The) 86,600 5,260,950
-----------------------------------------------------------------------------------------------------------------------
PanEnergy Corp. 101,900 3,923,150
-----------------------------------------------------------------------------------------------------------------------
Questar Corp. 27,900 1,004,400
-------------
10,188,500
- ----------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 1.2%
-----------------------------------------------------------------------------------------------------------------------
GTE Corp. 50,900 2,144,163
-------------
Total Common Stocks (Cost $134,182,459) 160,571,627
-----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $159,965,336) 99.5% 186,354,504
-----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.5 999,004
------ -------------
NET ASSETS 100.0% $187,353,508
====== =============
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
7 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================================================
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996
==================================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (cost $159,965,336) - see accompanying statement $186,354,504
--------------------------------------------------------------------------------------------------
Cash 1,903,355
--------------------------------------------------------------------------------------------------
Receivables:
Investments sold 855,619
Shares of capital stock sold 404,481
Interest and dividends 127,102
-------------
Total assets 189,645,061
==================================================================================================================================
LIABILITIES Payables and other liabilities:
Investments purchased 2,107,323
Shares of capital stock redeemed 46,764
Distribution and service plan fees 32,317
Transfer and shareholder servicing agent fees 12,790
Directors' fees 7,976
Other 84,383
-------------
Total liabilities 2,291,553
==================================================================================================================================
NET ASSETS $187,353,508
=============
==================================================================================================================================
COMPOSITION OF Par value of shares of capital stock $ 9,534
NET ASSETS --------------------------------------------------------------------------------------------------
Additional paid-in capital 147,179,680
--------------------------------------------------------------------------------------------------
Undistributed net investment income 479,425
--------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 13,295,701
--------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 26,389,168
-------------
Net assets $187,353,508
=============
==================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on
net assets of $180,784,352 and 9,201,201 shares of capital stock outstanding) $19.65
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $20.85
--------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $5,854,228 and 296,100 shares of capital stock outstanding) $19.77
--------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $714,928 and 36,533 shares of capital stock outstanding) $19.57
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================================================================
STATEMENT OF OPERATIONS FOR THE TEN MONTHS ENDED OCTOBER 31, 1996(1)
==================================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Dividends (net of foreign withholding taxes of $1,451) $ 1,741,056
--------------------------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $1,612) 735,017
-------------
Total income 2,476,073
==================================================================================================================================
EXPENSES Management fees - Note 4 719,186
--------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 275,407
Class B 24,189
Class C 1,717
--------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 154,397
--------------------------------------------------------------------------------------------------
Custodian fees and expenses 41,841
--------------------------------------------------------------------------------------------------
Legal and auditing fees 38,719
--------------------------------------------------------------------------------------------------
Shareholder reports 32,274
--------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 14,944
Class B 1,470
Class C 211
--------------------------------------------------------------------------------------------------
Accounting service fees 12,500
--------------------------------------------------------------------------------------------------
Directors' fees and expenses - Note 1 7,976
--------------------------------------------------------------------------------------------------
Other 1,613
-------------
Total expenses 1,326,444
==================================================================================================================================
NET INVESTMENT INCOME 1,149,629
==================================================================================================================================
REALIZED AND Net realized gain on investments 13,385,207
UNREALIZED GAIN --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 665,122
-------------
Net realized and unrealized gain 14,050,329
==================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,199,958
=============
</TABLE>
1. The Fund changed its fiscal year end from
December 31 to October 31.
See accompanying Notes to Financial Statements.
9 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
TEN MONTHS YEAR ENDED
ENDED OCTOBER 31, DECEMBER 31,
1996(1) 1995
==================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 1,149,629 $ 1,501,707
---------------------------------------------------------------------------------------------------
Net realized gain 13,385,207 7,939,891
----------------------------------
Net change in unrealized appreciation or depreciation 665,122 20,902,301
----------------------------------
Net increase in net assets resulting
from operations 15,199,958 30,343,899
==================================================================================================================================
DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income:
TO SHAREHOLDERS Class A (669,566) (1,491,101)
Class B (11,039) (561)
Class C (1,428) --
--------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (841,952) (7,649,952)
Class B (19,962) (42,834)
Class C (1,789) --
==================================================================================================================================
CAPITAL STOCK Net increase in net assets resulting from capital
TRANSACTIONS stock transactions - Note 2:
Class A 49,316,623 18,560,935
Class B 4,851,609 724,308
Class C 696,522 --
==================================================================================================================================
NET ASSETS Total increase 68,518,976 40,444,694
--------------------------------------------------------------------------------------------------
Beginning of period 118,834,532 78,389,838
----------------------------------
End of period (including undistributed net investment
income of $479,425 and $11,438, respectively) $187,353,508 $118,834,532
==================================
</TABLE>
1. The Fund changed its fiscal year end from
December 31 to October 31.
See accompanying Notes to Financial Statements.
10 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================
FINANCIAL HIGHLIGHTS
CLASS A
----------------------------------------------------------------------------
TEN MONTHS
ENDED
OCTOBER 31, YEAR ENDED DECEMBER 31,
1996(3) 1995 1994 1993 1992 1991
===================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $17.84 $14.20 $15.14 $14.20 $14.40 $11.62
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .15 .25 .22 .30 .26 .25
Net realized and unrealized
gain (loss) 1.88 4.88 (.32) 2.64 1.44 4.00
- -------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.03 5.13 (.10) 2.94 1.70 4.25
- -------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.10) (.25) (.22) (.30) (.26) (.25)
Distributions from net realized gain (.12) (1.24) (.62) (1.70) (1.64) (1.22)
- -------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.22) (1.49) (.84) (2.00) (1.90) (1.47)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.65 $17.84 $14.20 $15.14 $14.20 $14.40
==========================================================================
===================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 11.41% 36.40% (0.65)% 20.91% 11.99% 36.91%
===================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $180,784 $118,118 $78,390 $64,495 $45,600 $40,716
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $135,940 $ 98,063 $71,956 $54,682 $42,432 $36,087
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.01%(5) 1.53% 1.50% 1.95% 1.74% 1.74%
Expenses 1.13%(5) 1.22% 1.02% 1.05% 1.12% 1.19%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 73.9% 69.7% 98.5% 99.7% 141.7% 148.3%
Average brokerage commission rate(7) $0.0697 -- -- -- -- --
</TABLE>
1. For the period from May 1, 1996 (inception of offering) to October 31, 1996.
2. For the period from October 1, 1995 (inception of offering) to December 31,
1995.
3. The Fund changed its fiscal year end from December 31 to October 31. On
March 18, 1996, OppenheimerFunds, Inc. became the investment adviser to the
Fund.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), 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.
5. Annualized.
6. 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 October 31, 1996 were $128,801,684 and $90,147,069, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<TABLE>
<CAPTION>
====================
FINANCIAL HIGHLIGHTS
CLASS B CLASS C
-------------------------------- ------------
TEN MONTHS PERIOD PERIOD
ENDED ENDED ENDED
OCTOBER 31, DECEMBER 31, OCTOBER 31,
1996(3) 1995(2) 1996(1)
========================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C>
Net asset value, beginning of
period $18.08 $17.83 $18.79
- ----------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .05 .02 .06
Net realized and unrealized
gain (loss) 1.83 1.40 .94
- ----------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.88 1.42 1.00
- ----------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.07) (.02) (.10)
Distributions from net realized gain (.12) (1.15) (.12)
- ----------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.19) (1.17) (.22)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $19.77 $18.08 $19.57
=================================================
========================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 10.43% 8.04% 5.35%
========================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $5,854 $717 $715
- ----------------------------------------------------------------------------------------
Average net assets (in thousands) $2,903 $306 $342
- ----------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.22%(5) 0.21%(5) 0.04%(5)
Expenses 1.88%(5) 1.97%(5) 1.87%(5)
- ----------------------------------------------------------------------------------------
Portfolio turnover rate(6) 73.9% 69.7% 73.9%
Average brokerage commission rate(7) $0.0697 -- $0.0697
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Disciplined Value Fund
<PAGE>
=============================
Notes to Financial Statements
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Disciplined Value Fund (the Fund), a series of Oppenheimer
Series Fund, Inc. (the Company), is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. On August 15, 1996, the Board of Directors elected to change the
fiscal year end of the Fund from December to October. Accordingly, these
financial statements include information for the ten month period from
January 1, 1996 to October 31, 1996. The Fund's investment objective is to
seek capital appreciation by investing primarily in common stocks with low
price-earnings ratios and better-than-anticipated earnings. Until March 18,
1996, the Fund and the Company were named Connecticut Mutual Growth Account
and Connecticut Mutual Investment Accounts, Inc., respectively. On January
27, 1996, the policyholders of Connecticut Mutual Life Insurance Company
(CML) approved a merger of CML with Massachusetts Mutual Life Insurance
Company (MML). In connection with this change, effective March 18, 1996,
OppenheimerFunds, Inc. (the Manager) became the adviser of the Company. The
Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge. Class B and Class C shares may be subject to
a contingent deferred sales charge. All three 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. 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.
----------------------------------------------------------------------------
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 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 Directors. 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 are valued under consistently applied procedures established by
the Board of Directors 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.
12 Oppenheimer Disciplined Value Fund
<PAGE>
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
----------------------------------------------------------------------------
DIRECTORS' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement
plan for the Fund's independent directors. Benefits are based on years of
service and fees paid to each director during the years of service. During
the ten months ended October 31, 1996, a provision of $7,976 was made for
the Fund's projected benefit obligations, resulting in an accumulated
liability of $7,976.
----------------------------------------------------------------------------
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.
----------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders
are recorded on the ex-dividend date.
----------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement and
tax purposes. The character of 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.
During the ten month period ended October 31, 1996, the Fund adjusted the
classification of investment income and capital gain (loss) to shareholders
to reflect the differences between financial statement amounts and
distributions determined in accordance with income tax regulations. During
the ten month period ended October 31, 1996, amounts have been reclassified
to reflect an increase in paid-in capital of $648, a decrease in accumulated
net realized gain of $1,039, and an increase in undistributed net investment
income of $391.
----------------------------------------------------------------------------
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.
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.
13 Oppenheimer Disciplined Value Fund
<PAGE>
=========================================
Notes to Financial Statements (Continued)
================================================================================
2. SHARES OF CAPITAL STOCK
The Fund has authorized 450 million of $0.001 par value shares of capital
stock. Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
TEN MONTHS ENDED OCTOBER 31, 1996(2) YEAR ENDED DECEMBER 31, 1995(1)
------------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------
Class A:
<S> <C> <C> <C> <C>
Sold 3,132,678 $ 59,597,763 1,242,427 $ 20,678,025
Dividends and distributions
reinvested 79,955 1,491,345 513,302 9,039,419
Redeemed (630,553) (11,772,485) (657,052) (11,156,509)
---------- ------------- ---------- -------------
Net increase 2,582,080 $ 49,316,623 1,098,677 $ 18,560,935
========== ============= ========== =============
--------------------------------------------------------------------------------------------------------------
Class B:
Sold 261,924 $ 4,955,930 37,415 $ 684,870
Dividends and distributions
reinvested 1,535 28,899 2,434 43,392
Redeemed (6,999) (133,220) (209) (3,954)
---------- ------------- ---------- -------------
Net increase 256,460 $ 4,851,609 39,640 $ 724,308
========== ============= ========== =============
--------------------------------------------------------------------------------------------------------------
Class C:
Sold 36,414 $ 694,306 -- $ --
Dividends and distributions
reinvested 172 3,206 -- --
Redeemed (53) (990) -- --
---------- ------------- ---------- -------------
Net increase 36,533 $ 696,522 -- $ --
========== ============= ========== =============
</TABLE>
1. For the year ended December 31, 1995 for Class A shares and for the
period from October 1, 1995 (inception of offering) to December 31, 1995 for
Class B shares.
2. For the ten months ended October 31, 1996 for Class A and Class B shares
and for the period from May 1,1996 (inception of offering) to October 31,
1996 for Class C shares. The Fund changed its fiscal year end from December
31 to October 31.
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At October 31, 1996, net unrealized appreciation on investments of
$26,389,168 was composed of gross appreciation of $27,298,502, and gross
depreciation of $909,334.
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.625% of the
first $300 million of average annual net assets, 0.500% of the next $100
million and 0.450% of net assets in excess of $400 million. Prior to
March 18, 1996, management fees were paid to G. R. Phelps & Co. (the former
Manager) at an annual rate of 0.625% of the Fund's average net assets. The
Manager has agreed to reimburse the Fund if aggregate expenses (with
specified exceptions) exceed the most stringent applicable regulatory limit
on Fund expenses.
For the period ended October 31, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $534,988, of which $341,543
was retained by OppenheimerFunds 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 B and Class C shares totaled $149,781 and $6,734, of which $79,814 and
$4,696, respectively, were paid to an affiliated broker/dealer. During the
period ended October 31, 1996, OFDI received contingent deferred sales
charges of $3,336 upon redemption of Class B shares as reimbursement for
sales commissions advanced by OFDI at the time of sale of such shares.
14 Oppenheimer Disciplined Value Fund
<PAGE>
============================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are
allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI for
a portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% of the average annual
net assets of Class A shares of the Fund. OFDI uses the service fee to
reimburse brokers, dealers, banks and other financial institutions quarterly
for providing personal service and maintenance of accounts of their
customers that hold Class A shares. During the period ended October 31,
1996, OFDI paid $191,634 to an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses.
The Fund has adopted a compensation type Distribution and Service Plan for
Class B shares to compensate OFDI for its services and costs in distributing
Class B shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class B shares. OFDI
also receives a service fee of 0.25% per year to compensate dealers for
providing personal services for accounts that hold Class B shares. Both fees
are computed on the average annual net assets of Class B shares, determined
as of the close of each regular business day. During the period ended
October 31, 1996, OFDI retained $20,026 as compensation for Class B sales
commissions and service fee advances, as well as financing costs. If the
Plan is terminated by the Fund, the Board of Directors may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was terminated. As of October 31, 1996,
OFDI had incurred unreimbursed expenses of $153,254 for Class B.
The Fund has adopted a compensation type Distribution and Service Plan for
Class C shares to compensate OFDI for its services and costs in distributing
Class C shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class C shares. OFDI
also receives a service fee of 0.25% per year to compensate dealers for
providing personal services for accounts that hold Class C shares. Both fees
are computed on the average annual net assets of Class C shares, determined
as of the close of each regular business day. During the period ended
October 31, 1996, OFDI retained $1,623 as reimbursement for Class C sales
commissions and service fee advances, as well as financing costs. If the
Plan is terminated by the Fund, the Board of Directors may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was terminated. As of October 31, 1996,
OFDI had incurred unreimbursed expenses of $11,314 for Class C.
15 Oppenheimer Disciplined Value Fund
<PAGE>
Independent Auditors' Report
================================================================================
The Board of Directors and Shareholders of Oppenheimer Disciplined Value Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Disciplined Value Fund (formerly Connecticut Mutual
Growth Account) as of October 31, 1996, and the related statement of operations,
the statement of changes in net assets and the financial highlights for the ten
month period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit. The statement of changes in net assets for the year ended December 31,
1995 and the financial highlights for the five years ended December 31, 1995
were audited by other auditors whose report dated February 9, 1996 expressed an
unqualified opinion on this information.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of October 31, 1996 by
correspondence with the custodian and brokers; and where confirmations were not
received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Oppenheimer Disciplined Value Fund as of October 31, 1996, and the results of
its operations, the changes in its net assets, and the financial highlights for
the ten month period ended October 31, 1996, in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
November 21, 1996
16 Oppenheimer Disciplined Value Fund
<PAGE>
Federal Income Tax Information (Unaudited)
================================================================================
In early 1997 shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1996.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
Dividends paid by the Fund during the ten months ended October 31, 1996
which are not designated as capital gain distributions should be multiplied
by 48.50% to arrive at the net amount eligible for the corporate dividend-
received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax adviser for specific
guidance.
17 Oppenheimer Disciplined Value Fund
<PAGE>
Oppenheimer Disciplined Value Fund
A Series of Oppenheimer Series Fund, Inc.
================================================================================
OFFICERS AND DIRECTORS Leon Levy, Chairman of the Board of Directors
Donald W. Spiro, Vice Chairman of the
Board of Directors
Bridget A. Macaskill, Director and President
Robert G. Galli, Director
Benjamin Lipstein, Director
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan, Director
Russell S. Reynolds, Jr., Director
Sidney M. Robbins, Director
Pauline Trigere, Director
Clayton K. Yeutter, Director
Peter M. Antos, Vice President
Robert C. Doll, Jr., Vice President
Stephen F. Libera, Vice President
Michael C. Strathearn, Vice President
Kenneth B. White, Vice President
Arthur J. Zimmer, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER SERVICING
AGENT
================================================================================
CUSTODIAN OF State Street Bank and Trust Company
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Disciplined Value
Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Disciplined Value Fund. For material information concerning the
Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are
not guaranteed by any bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including possible loss of the
principal amount invested.
18 Oppenheimer Disciplined Value Fund
<PAGE>
- -----------------------
OPPENHEIMERFUNDS FAMILY
- -----------------------
================================================================================
OppenheimerFunds offers over 50 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 comfor-
table knowing that you are investing with a respected financial
institution with over 35 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 3 million shareholder accounts and more
than $55 billion under OppenheimerFunds' management and that of
our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by tele-
phone.(1) For more information on Oppenheimer funds, please con-
tact your financial adviser 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.
================================================================================
STOCK FUNDS Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Target Fund
================================================================================
STOCK & BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
================================================================================
BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
================================================================================
MUNICIPAL California Municipal Fund(3) Insured Municipal Fund
FUNDS Florida Municipal Fund(3) Intermediate Municipal Fund
New Jersey Municipal Fund(3)
New York Municipal Fund(3) Rochester Division
Pennsylvania Municipal Fund(3) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York
Municipal Fund
================================================================================
MONEY MARKET Money Market Fund Cash Reserves
FUNDS(4)
================================================================================
LIFESPAN Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or termination.
Shares may be exchanged only for shares of the same class of
eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance
that a money market fund will be able to maintain a stable net
asset value of $1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-c-Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
19 Oppenheimer Disciplined Value Fund
<PAGE>
[BACK COVER}
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 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
- --------------
RA0375.001.1096 December 31, 1996
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]Customer Service Representative
Customer Service Representative
OppenheimerFunds Services
As an Oppenheimer funds 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 Oppenheimer funds 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.
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 Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- ------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-R- --------------
OppenheimerFunds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver, CO
--------------
