[FRONT COVER]
Oppenheimer Disciplined Value Fund
Semiannual Report June 30, 1996
[Picture of 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
Total Return for the 5-Year Period Ended 6/30/96:
Oppenheimer Disciplined
Value Fund Class A
(at net asset value)(1)
130.40%
Lipper Growth Funds Average(3)
100.05%
The Fund's Class A shares
were ranked ****
among 1,583 equity funds as
of 6/30/96 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 returns for the six months ended 6/30/96 for Class A and Class
B shares were 6.08% and 5.51%, respectively.(1)
Your Fund's average annual total returns for Class A shares for the 1-, 5-,
and 10-year periods ended 6/30/96 were 15.54%, 16.78% and 12.97%, respectively.
For Class B shares, cumulative total return since inception of the class on
10/1/95 was 8.99%.(2)
Outlook
"We are optimistic. As the stock market moves from its current phase to one that
is more focused on intrinsic value, we believe the Fund will again be positioned
to perform well."
Peter Antos, Portfolio Manager
June 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. 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 advisor. However, the prior portfolio management team are
now employed by OppenheimerFunds, Inc., the current advisor.
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 including 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 return includes the applicable
contingent deferred sales charge of 5% (1-year). Effective 5/1/96, the Fund
offered Class C shares, for which performance data is not yet available. An
explanation of the different performance calculations is in the Fund's
prospectus.
3. Source: Lipper Analytical Services, 6/30/96, an independent mutual fund
monitoring service. The Lipper total return average for the 5-year period was
for 246 growth funds. The average is shown for comparative purposes only.
Oppenheimer Disciplined Value Fund is characterized by Lipper as a growth fund.
Lipper performance does not take sales charges into consideration.
4. Source: Morningstar Mutual Funds, 6/30/96. Morningstar, Inc., an independent
mutual fund monitoring service, produces proprietary monthly rankings of funds
in broad investment categories (equity, taxable bond, tax-exempt bond, or
"hybrid") 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. Five stars is the
"highest" ranking (top 10%), four stars is "above average" (next 22.5%) and one
star is the lowest (bottom 10%). The 4-star current ranking is a weighted
average of the 3-, 5-, and 10-year rankings for the class, which were 3, 4, and
4 stars, respectively, weighted 20%/30%/50%. There were 1,583, 997, and 539
funds ranked in these respective periods. Rankings are subject to change. The
Fund's Class A, B, and C shares have the same portfolio.
2 Oppenheimer Disciplined Value Fund
<PAGE>
[PHOTO-BRIDGET A. MACASKILL]
Bridget A. Macaskill
President
Oppenheimer
Disciplined Value Fund
Dear Shareholder,
Against all odds, the stock market showed remarkable strength during the first
five months of 1996. However, in the few months that followed, the market
experienced significant volatility that resulted in a decline in the Dow of
about 7 percent.
Many experts said the stock market, having advanced to record heights in
1995 and void of any real market correction since 1990, was due for a downturn.
This was, after all, the longest bull market of the post-World War II era.
Thanks to the 10% rise in blue chip stocks during the first half of 1996 and the
early success of small stocks, the decline that occurred recently was somewhat
cushioned. While it's impossible to tell what will happen next, we are
optimistic that this turn was a correction within a bull market rather than the
onset of a bear market.
What made the market perform so well during the first part of the year? It
was another surprise: corporate profits. Between 1992 and 1995, corporate
profits of U.S. companies advanced at a double-digit rate. Investors widely
expected this year's profit tallies to be flat compared to 1995. After all, the
economy had been sluggish--growing at an annual rate of just 2.3% in the first
quarter of 1996. But corporate America continued to perform.
The reason corporate profits were so strong is that many U.S. companies
continued to successfully reduce costs. Often when a company achieves a small
increase in sales, the benefit goes straight to the bottom line. Indeed, the
U.S. Commerce Department reports indicated that corporate profits rose 15% for
the four quarters ended March 1996, while the economy grew only marginally.
Still, profits are not what they were in the early 1990s. That's why
investors are seeking out companies that can grow earnings regardless of the
fortunes of the economy. Which is just what many small companies in such fields
as technology, healthcare and specialty retailing have been doing, growing
earnings at double-digit--and even triple-digit rates. So it's not surprising
that the stocks of many of these small fast-growing companies have been such
strong performers.
The early strength of the stock market is all the more remarkable when you
consider that during the same period, interest rates moved up sharply. The yield
on the benchmark 30-year U.S. Treasury bond rose from about 6% in January to
over 7% today. Interest rates have been rising partly because investors are
concerned that the economy is growing fast enough to generate higher inflation.
However, we are watching this very closely, and would become very cautious
regarding the stock market's performance if inflation were to flare up.
As always, remember stock investments are generally meant for long-term
growth objectives, and often involve short-term volatility. So, it's critical
for investors to keep their focus on long-term goals and to put near-term
setbacks in proper prospective.
Your portfolio managers discuss 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 A. Macaskill
Bridget A. Macaskill
July 22, 1996
3 Oppenheimer Disciplined Value Fund
<PAGE>
Peter Antos
Portfolio Manager
Q + A
An interview with your Fund's managers.
How did the Fund perform over the past six months?
The Fund's performance was good, although it lagged the broader market slightly
over the period. This was primarily due to fears about the maturity of the
current economic cycle and our investment strategy. Our strategy--to buy stocks
that have low price/earnings ratios and positive earnings surprises--has led us
to undervalued stocks that we expect will perform well in the future. However,
these types of stocks were somewhat out of favor with investors over the past
six months.
What investments made positive contributions to performance?
The Fund benefited most from our aerospace and retail holdings. That's because
we were able to buy stocks in the aerospace industry when it was out of favor
due to lingering concern about cuts in defense spending. However, cost-cutting,
consolidations and an increase in demand from commercial airlines led to
better-than-expected earnings for many of these companies which, in turn, drove
stocks prices higher.
By owning retailing companies that focused on making their core businesses
more profitable, the Fund was able to capture higher stock prices. The retailers
that did particularly well for us had strong cash flows and used their cash in
ways that benefited shareholders--such as stock buybacks and strategic
acquisitions.
Did any investments negatively impact the portfolio?
In a year where the stock market was remarkably strong, and the bond market
unexpectedly weak, income-producing equity investments were relatively poor
performers. On the other hand, we were able to limit some of the decline in our
financial stocks by selling a portion of those holdings early in the year.
What areas are you currently targeting?
Within the portfolio, we have decreased ownership of financial and utility
stocks and added more cyclical and technology stocks. Here again, we are looking
for well-managed, strong companies that are temporarily out of favor with the
market. Our goal is to buy them at a low cost and then profit when their
strengths are recognized.
What is your outlook for the Fund?
We are optimistic. This is a fund with an impressive long-term track record and
a proven investment technique. It's also a relatively conservative way to take
advantage of the market's growth potential. As the stock market moves from its
current phase to one that is more focused on intrinsic value, we believe the
Fund will again be positioned to perform well. Though, year-to-date, we're
lagging the market somewhat, the Fund incurred less risk compared to the market,
and still enjoyed competitive returns. [solid box]
4 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments June 30, 1996 (Unaudited)
Face Market Value
Amount See Note 1
<S> <C> <C>
===================================================================================================================================
Short-Term Notes--10.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.52%, 7/1/96 $ 5,000,000 $ 5,000,000
---------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
5.27%, 7/1/96 3,100,000 3,100,000
5.29%, 7/5/96 5,000,000 4,997,061
---------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.34%, 7/1/96 995,000 995,000
--------------
Total Short-Term Notes (Cost $14,092,061) 14,092,061
<CAPTION>
Shares
<S> <C> <C>
===================================================================================================================================
Common Stocks--88.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--3.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.5%
Cabot Corp. 47,200 1,156,400
---------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 24,100 1,596,625
---------------------------------------------------------------------------------------------------------------
Union Carbide Corp. 38,500 1,530,375
---------------------------------------------------------------------------------------------------------------
W.R. Grace & Co. 7,000 496,125
--------------
4,779,525
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--14.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--2.6%
Chrysler Corp. 30,200 1,872,400
---------------------------------------------------------------------------------------------------------------
Ford Motor Co. 54,800 1,774,150
--------------
3,646,550
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--3.4%
AMR Corp.(1) 24,600 2,238,600
---------------------------------------------------------------------------------------------------------------
Grand Casinos, Inc.(1) 42,300 1,089,225
---------------------------------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A(1) 35,000 1,382,500
--------------
4,710,325
- -----------------------------------------------------------------------------------------------------------------------------------
Metals--1.1%
UCAR International, Inc.(1) 36,500 1,519,313
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General--6.3%
Eckerd Corp.(1) 57,500 1,300,937
---------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 31,500 1,074,937
---------------------------------------------------------------------------------------------------------------
Price/Costco, Inc.(1) 65,000 1,405,625
---------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 39,100 1,901,237
---------------------------------------------------------------------------------------------------------------
U.S. Industries, Inc.(1) 80,200 1,934,825
---------------------------------------------------------------------------------------------------------------
Waban, Inc.(1) 45,300 1,081,537
--------------
8,699,098
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--1.0%
Tandy Corp. 29,700 1,407,037
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--12.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages--1.6%
Anheuser-Busch Cos., Inc. 29,300 2,197,500
- -----------------------------------------------------------------------------------------------------------------------------------
Food--5.6%
American Stores Co. 62,200 2,565,750
---------------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 109,800 2,099,925
---------------------------------------------------------------------------------------------------------------
Dole Food Co. 23,100 993,300
---------------------------------------------------------------------------------------------------------------
Kroger Co.(1) 52,300 2,065,850
--------------
7,724,825
</TABLE>
5 Oppenheimer Disciplined Value Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--1.4%
Bristol-Myers Squibb Co. 22,200 $ 1,998,000
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies &
Services--1.8%
Columbia/HCA Healthcare Corp. 21,700 1,158,237
---------------------------------------------------------------------------------------------------------------
OrNda Healthcorp(1) 57,000 1,368,000
--------------
2,526,237
- -----------------------------------------------------------------------------------------------------------------------------------
Household Goods--2.5%
Black & Decker Corp. 30,000 1,158,750
---------------------------------------------------------------------------------------------------------------
Premark International, Inc. 39,000 721,500
---------------------------------------------------------------------------------------------------------------
Tupperware Corp.(1) 39,000 1,647,750
--------------
3,528,000
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--4.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated--4.6%
Amoco Corp. 25,900 1,874,512
---------------------------------------------------------------------------------------------------------------
Chevron Corp. 32,200 1,899,800
---------------------------------------------------------------------------------------------------------------
Mobil Corp. 22,900 2,567,662
--------------
6,341,974
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--12.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Banks--7.4%
Bank of Boston Corp. 48,500 2,400,750
---------------------------------------------------------------------------------------------------------------
BankAmerica Corp. 35,900 2,719,425
---------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 24,936 1,761,105
---------------------------------------------------------------------------------------------------------------
PNC Bank Corp. 53,300 1,585,675
---------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 7,100 1,696,013
--------------
10,162,968
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--3.3%
Federal Home Loan Mortgage Corp. 12,300 1,051,650
---------------------------------------------------------------------------------------------------------------
Salomon, Inc. 78,700 3,462,800
--------------
4,514,450
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance--2.1%
General Re Corp. 1,600 243,600
---------------------------------------------------------------------------------------------------------------
TIG Holdings, Inc. 30,900 896,100
---------------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A(1) 60,200 1,708,175
--------------
2,847,875
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--8.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing--8.3%
AGCO Corp. 74,700 2,072,925
---------------------------------------------------------------------------------------------------------------
Case Corp. 50,000 2,400,000
---------------------------------------------------------------------------------------------------------------
Harnischfeger Industries, Inc. 29,800 990,850
---------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 40,902 925,408
---------------------------------------------------------------------------------------------------------------
Textron, Inc. 35,400 2,827,575
---------------------------------------------------------------------------------------------------------------
Tyco International Ltd. 51,800 2,110,850
--------------
11,327,608
</TABLE>
6 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--19.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--9.3%
General Dynamics Corp. 25,400 $ 1,574,800
---------------------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 40,600 1,517,425
---------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 31,371 2,635,164
---------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 54,600 2,648,100
---------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 41,100 2,352,975
---------------------------------------------------------------------------------------------------------------
TRW, Inc. 23,100 2,076,113
--------------
12,804,577
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Hardware--6.0%
Dell Computer Corp.(1) 24,600 1,251,525
---------------------------------------------------------------------------------------------------------------
Gateway 2000, Inc.(1) 21,700 737,800
---------------------------------------------------------------------------------------------------------------
Storage Technology Corp. (New)(1) 69,400 2,654,550
---------------------------------------------------------------------------------------------------------------
Xerox Corp. 68,100 3,643,350
--------------
8,287,225
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics--2.9%
Intel Corp. 18,900 1,387,969
---------------------------------------------------------------------------------------------------------------
Varian Associates, Inc. 29,600 1,531,800
---------------------------------------------------------------------------------------------------------------
Waters Corp.(1) 30,600 1,009,800
--------------
3,929,569
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications-
Technology--1.5%
AT&T Corp. 33,000 2,046,000
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities--12.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--5.8%
American Electric Power Co., Inc. 26,600 1,133,825
---------------------------------------------------------------------------------------------------------------
Calenergy, Inc.(1) 62,300 1,588,650
---------------------------------------------------------------------------------------------------------------
Entergy Corp. 62,500 1,773,438
---------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 35,600 1,637,600
---------------------------------------------------------------------------------------------------------------
Texas Utilities Co. 44,100 1,885,275
--------------
8,018,788
- -----------------------------------------------------------------------------------------------------------------------------------
Gas Utilities--4.2%
Columbia Gas System, Inc. (The) 59,100 3,080,588
---------------------------------------------------------------------------------------------------------------
PanEnergy Corp. 81,900 2,692,463
--------------
5,773,051
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--2.6%
Ameritech Corp. 25,700 1,525,938
---------------------------------------------------------------------------------------------------------------
GTE Corp. 44,500 1,991,375
--------------
3,517,313
--------------
Total Common Stocks (Cost $102,521,514) 122,307,808
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $116,613,575) 99.0% 136,399,869
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.0 1,416,629
-------------- --------------
Net Assets 100.0% $ 137,816,498
============== ==============
</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 June 30, 1996 (Unaudited)
<S> <C>
===================================================================================================================================
Assets Investments, at value (cost $116,613,575)--see accompanying statement $136,399,869
---------------------------------------------------------------------------------------------------------------
Cash 105,596
---------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 3,120,053
Interest and dividends 202,111
Shares of capital stock sold 126,688
------------
Total assets 139,954,317
===================================================================================================================================
Liabilities Payables and other liabilities:
Investments purchased 1,955,189
Transfer and shareholder servicing agent fees 63,555
Shares of capital stock redeemed 58,200
Other 60,875
------------
Total liabilities 2,137,819
===================================================================================================================================
Net Assets $137,816,498
============
===================================================================================================================================
Composition of
Net Assets Par value of shares of capital stock $ 7,362
---------------------------------------------------------------------------------------------------------------
Additional paid-in capital 105,402,560
---------------------------------------------------------------------------------------------------------------
Undistributed net investment income 30,527
---------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 12,589,755
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 19,786,294
------------
Net assets $137,816,498
============
===================================================================================================================================
Net Asset Value
Per Share Class A Shares:
Net asset value and redemption price per share (based on net assets of
$134,146,921 and 7,167,885 shares of capital stock outstanding) $ 18.71
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 19.85
---------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$3,374,558 and 178,641 shares of capital stock outstanding) $ 18.89
---------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$295,019 and 15,781 shares of capital stock outstanding) $ 18.69
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Disciplined Value Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations For the Six Months Ended June 30, 1996 (Unaudited)
<S> <C>
===================================================================================================================================
Investment Income Dividends $ 1,085,366
---------------------------------------------------------------------------------------------------------------
Interest 409,274
------------
Total income 1,494,640
------------
===================================================================================================================================
Expenses Management fees--Note 4 406,151
---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 160,068
Class B 9,378
Class C 192
---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 112,809
---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 33,302
---------------------------------------------------------------------------------------------------------------
Shareholder reports 19,047
---------------------------------------------------------------------------------------------------------------
Legal and auditing fees 15,408
---------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 3,504
Class B 903
Class C 105
---------------------------------------------------------------------------------------------------------------
Other 32,290
------------
Total expenses 793,157
===================================================================================================================================
Net Investment Income 701,483
===================================================================================================================================
Realized and Unrealized
Gain (Loss) Net realized gain on investments 12,678,792
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (5,937,752)
------------
Net realized and unrealized gain 6,741,040
===================================================================================================================================
Net Increase in Net Assets Resulting From Operations $ 7,442,523
============
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Disciplined Value Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31,
(Unaudited) 1995
<S> <C> <C>
===================================================================================================================================
Operations Net investment income $ 701,483 $ 1,501,707
---------------------------------------------------------------------------------------------------------------
Net realized gain 12,678,792 7,939,891
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (5,937,752) 20,902,301
------------- -------------
7,442,523 30,343,899
===================================================================================================================================
Dividends and Distributions
To Shareholders Dividends from net investment income:
Class A (670,183) (1,491,101)
Class B (10,783) (561)
Class C (1,428) --
---------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (842,977) (7,649,952)
Class B (19,507) (42,834)
Class C (1,789) --
===================================================================================================================================
Capital Stock
Transactions Net increase in net assets resulting from capital stock
transactions--Note 2:
Class A 10,162,839 18,560,935
Class B 2,619,254 724,308
Class C 304,017 --
===================================================================================================================================
Net Assets Total increase 18,981,966 40,444,694
---------------------------------------------------------------------------------------------------------------
Beginning of period 118,834,532 78,389,838
------------- -------------
End of period (including undistributed net investment income
of $30,527 and $11,438, respectively) $ 137,816,498 $ 118,834,532
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Disciplined Value Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------------------------------
Six Months
Ended
June 30, 1996 Year Ended December 31,
(Unaudited) 1995 1994 1993 1992 1991
====================================================================================================================================
Per Share Operating Data:
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 .10 .25 .22 .30 .26 .25
Net realized and unrealized
gain (loss) .98 4.88 (.32) 2.64 1.44 4.00
-------- -------- ------- ------- ------- -------
Total income (loss) from
investment operations 1.08 5.13 (.10) 2.94 1.70 4.25
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.09) (.25) (.22) (.30) (.26) (.25)
Distributions from net realized gain
on investments (.12) (1.24) (.62) (1.70) (1.64) (1.22)
-------- -------- ------- ------- ------- -------
Total dividends and distributions
to shareholders (.21) (1.49) (.84) (2.00) (1.90) (1.47)
Net asset value, end of period $18.71 $17.84 $14.20 $15.14 $14.20 $14.40
======== ======== ======= ======= ======= =======
====================================================================================================================================
Total Return, at Net Asset Value(3) 6.08% 36.40% (0.65)% 20.91% 11.99% 36.91%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $134,147 $118,118 $78,390 $64,495 $45,600 $40,716
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $130,129 $98,063 $71,956 $54,682 $42,432 $36,087
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.08%(4) 1.53% 1.50% 1.95% 1.74% 1.74%
Expenses 1.20%(4) 1.22% 1.02% 1.05% 1.12% 1.19%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 50.1% 69.7% 98.5% 99.7% 141.7% 148.3%
Average brokerage commission rate(6) $0.0689 -- -- -- -- --
<CAPTION>
Class B Class C
------------------------------- --------------
Six Months Period Period
Ended Ended Ended
June 30, 1996 Dec. 31, June 30, 1996
(Unaudited) 1995(2) (Unaudited)(1)
<S> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $18.08 $17.83 $18.79
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .02 .02 --
Net realized and unrealized
gain (loss) .98 1.40 .11
------ ------ ------
Total income (loss) from
investment operations 1.00 1.42 .11
- --------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.07) (.02) (.09)
Distributions from net realized gain
on investments (.12) (1.15) (.12)
------ ------ ------
Total dividends and distributions
to shareholders (.19) (1.17) (.21)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $18.89 $18.08 $18.69
====== ====== ======
============================================================================================
Total Return, at Net Asset Value(3) 5.51% 8.04% 0.61%
============================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $3,375 $717 $295
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,914 $306 $124
- --------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.36%(4) 0.21%(4) (.05)%(4)
Expenses 1.95%(4) 1.97%(4) 1.95%(4)
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 50.1% 69.7% 50.1%
Average brokerage commission rate(6) $0.0689 -- $0.0689
</TABLE>
1. For the period from May 1, 1996 (inception of offering) to June 30, 1996.
2. For the period from October 1, 1995 (inception of offering) to December 31,
1995.
3. 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.
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, 1996 were $65,709,638 and $58,010,432, respectively.
6. 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.
See accompanying Notes to Financial Statements.
11 Oppenheimer Disciplined Value Fund
<PAGE>
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
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. The
Fund's investment objective is to seek capital appreciation. 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 line
with this change, effective March 1, 1996, OppenheimerFunds, Inc. (the Manager)
became the advisor of Oppenheimer Series Fund, Inc. 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.
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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 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.
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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.
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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.
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Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
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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.
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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.
12 Oppenheimer Disciplined Value Fund
<PAGE>
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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>
Six Months Ended June 30, 1996(2) Year Ended December 31, 1995(1)
--------------------------------- ---------------------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
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Class A:
Sold 820,549 $ 15,210,232 1,242,427 $ 20,678,025
Dividends and distributions reinvested 79,652 1,485,690 513,302 9,039,419
Redeemed (351,437) (6,533,083) (657,052) (11,156,509)
------------ ------------ ------------ ------------
Net increase 548,764 $ 10,162,839 1,098,677 $ 18,560,935
============ ============ ============ ============
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Class B:
Sold 139,006 $ 2,619,349 37,415 $ 684,870
Dividends and distributions reinvested 1,498 28,207 2,434 43,392
Redeemed (1,503) (28,302) -- (3,954)
------------ ------------ ------------ ------------
Net increase 139,001 $ 2,619,254 39,640 $ 724,308
============ ============ ============ ============
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Class C:
Sold 15,609 $ 300,811 -- $ --
Dividends and distributions reinvested 172 3,206 -- --
Redeemed -- -- -- --
------------ ------------ ------------ ------------
Net increase 15,781 $ 304,017 -- $ --
============ ============ ============ ============
</TABLE>
1. For the year ended December 31, 1995 for Class A and for the period from
October 1, 1995 (inception of offering) to December 31, 1995 for Class B shares.
2. For the six months ended June 30, 1996 for Class A and Class B shares and for
the period from May 1, 1996 (inception of offering) to June 30, 1996 for Class C
Shares.
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3. Unrealized Gains and
Losses on Investments
At June 30, 1996, net unrealized appreciation on investments of $19,786,294 was
composed of gross appreciation of $20,905,996, and gross depreciation of
$1,119,702.
13 Oppenheimer Disciplined Value Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
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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% on the first
$300 million of average annual net assets, 0.50% on the next $100 million and
0.45% on net assets in excess of $400 million. The Manager has voluntarily
undertaken to waive a portion of its management fee, whereby the Fund shall pay
an annual management fee of 0.58% of its net assets in excess of $1.5 billion.
Prior to March 1, 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 six months ended June 30, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $357,824, of which $191,911 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 $68,383 and $2,998, of which $49,165 and $2,740,
respectively, was paid to an affiliated broker/dealer.
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 six months ended June 30, 1996, OFDI paid $89,682 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 that are
outstanding for 6 years or less. 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. 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. During the six months ended June 30,
1996, OFDI retained $5,623 as compensation for Class B sales commissions and
service fee advances, as well as financing costs. As of June 30, 1996, OFDI had
incurred unreimbursed expenses of $80,403 for Class B.
The Fund has adopted a reimbursement type Distribution and Service Plan for
Class C shares to reimburse 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 reimburse 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. 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.
14 Oppenheimer Disciplined Value Fund
<PAGE>
Oppenheimer Disciplined Value Fund
A Series of Oppenheimer Series Fund, Inc.
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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
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Investment Advisor OppenheimerFunds, Inc.
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Distributor OppenheimerFunds Distributor, Inc.
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Transfer and Shareholder
Servicing Agent OppenheimerFunds Services
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Custodian of
Portfolio Securities
State Street Bank and Trust Company
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Independent Auditors
KPMG Peat Marwick LLP
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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 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.
15 Oppenheimer Disciplined Value Fund
<PAGE>
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
RS0375.001.0696 August 31, 1996
[Picture of Jennifer Leonard]
[Caption] Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund 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.
P.O. Box 5270
Denver, CO 80217-5270
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