<PAGE> 1
OPPENHEIMER DISCIPLINED ALLOCATION FUND
SEMIANNUAL REPORT APRIL 30, 1997
[PHOTO]
"WE WANT THE
COMFORT OF
HAVING A VARIETY
OF DIFFERENT
INVESTMENTS,
BUT THE
CONVENIENCE
OF DOING IT WITH
ONE FUND."
[OPPENHEIMERFUNDS LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT A SIMPLE WAY TO
PURSUE FAVORABLE OPPORTUNITIES ACROSS MANY DIFFERENT
TYPES OF INVESTMENTS.
HOW YOUR FUND IS MANAGED
Oppenheimer Disciplined Allocation Fund seeks to maximize total investment
return (including capital appreciation and income) principally by allocating
assets among stocks, corporate bonds, U.S. government securities and money
market instruments. The management team arrives at the portfolio allocation
through a disciplined use of a multi-dimensional model. The model is analyzed
periodically and allocations vary in response to current market dynamics.
PERFORMANCE
Total returns for the six months ended 4/30/97 were 5.76% for Class A shares,
5.35% for Class B shares, and 5.35% for Class C shares, 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 3/31/97 were 1.30%, 9.39% and 9.53%, respectively.
For Class B shares, average annual total returns for the 1-year period ended
3/31/97 was 1.85% and from inception on 10/2/95 to 3/31/97 was 6.31%. For
Class C shares, cumulative total return from inception on 5/1/96 to 3/31/97 was
5.73%.(2)
OUTLOOK
"We continue to employ the Fund's time-tested, value-oriented strategies for
choosing stock, bond and money market investments, as well as for allocating the
assets of the Fund."
Peter Antos, Portfolio Manager
April 30, 1997
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 is not annualized and 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%
(1 year) and 4% (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 0.75% asset-based sales charge.
2 Oppenheimer Disciplined Allocation Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Disciplined
Allocation Fund
DEAR SHAREHOLDER,
So far, 1997 has brought the volatility we anticipated in the equity market.
April saw a 9% decline, but it was followed by an even larger rebound. Despite
this volatility, we remain optimistic about the rest of the year. On the one
hand, the equity market is backed by solid economic fundamentals that should
continue for the near future. On the other hand, the ups and downs of the
business cycle are a reality, and at some point, possibly this year, we expect
that the economy will move into a phase of slower growth.
On a positive note, the economy has been expanding slowly but steadily.
Interest rates are still relatively low, despite the Federal Reserve's recent
increase in short-term rates. Low interest rates translate into reduced
borrowing rates for companies, which use these savings to improve productivity
through new efficiency-enhancing technologies. Higher productivity translates
into lower production costs, which in turn results in higher profits.
In addition, inflation is at its lowest level in three decades. While
it's true that an increase in interest rates often indicates an accelerating
economy, the Federal Reserve has been quick to acknowledge that inflation and
growth are under control. In fact, they've labeled the recent move as a
"pre-emptive" act to keep inflation low and extend the economy's healthy growth
cycle.
Despite this good news, we are realistic about the future of the equity
market. During 1996, most market gains came from a very select group of about
50-100 large-capitalization stocks. The broader market, including small- and
mid-size companies, actually delivered mixed results for the past year. Many
large-company stocks are becoming overvalued, or expensive in price, and market
buyers will reach a point when they are no longer willing to pay high premiums
for them. This may result in a correction, unless investors turn to the many
small- and mid-cap stocks that are relatively undervalued. There is plenty of
room for growth in these areas, and we expect to see these stocks participating
in the market during 1997.
In this uncertain period, selectivity will be our key to maintaining an
effective portfolio. It will be important to base stock choices on the
individual merits of companies, such as strong management, fundamental business
policies, long-term future prospects and price. For you, the investor,
maintaining a long-term investment horizon is essential. Short-term swings will
inevitably occur, but the market's long-term trend has been to move higher and
higher.
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, The Right Way to Invest. We look forward to helping you reach
your investment goals in the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
May 21, 1997
3 Oppenheimer Disciplined Allocation Fund
<PAGE> 4
PETER ANTOS
STEPHEN LIBERA
MICHAEL STRATHEARN
KENNETH WHITE
ARTHUR ZIMMER
Portfolio Management Team
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW DID THE FUND PERFORM?
After a difficult 1996 due to a notable underweighting in stocks, our asset
allocation strategy turned more positive towards stocks in December. As a
result, we increased Oppenheimer Disciplined Allocation Fund's equity exposure,
reduced its fixed income weighting, and performance benefited. However, with
stock prices looking expensive by historic standards, our equity allocation is
still lighter than that of many similar funds. For the six-month period ending
April 30, 1997, cumulative total return before sales charges was 5.76% for the
Fund's Class A shares.(1)
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
We use a "bottom-up" approach, looking at individual securities, not sectors,
to find investments we believe have good growth potential. When looking at
equities, we screen the market for out-of-favor, undervalued stocks that have
experienced positive earnings surprises. On the fixed income side, we look for
relatively high-grade bonds to provide some stability and income.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
The Fund's largest weighting was in the financial services sector, and these
securities provided the Fund with its strongest performance. Conseco, an
insurance company whose management team has a major interest in the value of
the stock, performed exceptionally well because it added several successful
acquisitions to the company's core business. Other strong performers in the
Fund's financial services holdings included Travelers Group, NationsBank,
BankAmerica, BankBoston and Chase Manhattan.
Although the Fund was underweighted in technology stocks, the stocks we
owned in this sector performed very well. Our holdings in Seagate Technology,
Dell Computer and Intel outperformed analysts' expectations for the period, due
in part to strong personal computer demand.(2)
DID ANY INVESTMENTS NEGATIVELY IMPACT THE PORTFOLIO?
When interest rates rose, many of our bond holdings declined modestly in value.
Within the stock portion of the Fund, our natural gas holdings under-performed.
Natural gas prices rose substantially last year, creating earnings momentum in
the industry and excellent stock performance. In 1997, natural gas prices have
fallen back somewhat, and stocks with exposure to that business have lagged as
a result. We have cut our positions slightly, but continue to maintain some
holdings where we still see strong fundamentals.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We continue to employ the Oppenheimer Disciplined Allocation Fund's
time-tested, value-oriented strategies for choosing stock, bond and money
market investments, as well as for allocating the assets of the Fund among
these three asset classes. Stock valuations are still high, and unless interest
rates decline substantially, our current exposure to stocks is not likely to
increase. And, if key indicators turn negative toward the stock market again,
we may further reduce our equity weighting. So far it appears 1997 may be a
more volatile year for equity prices than any other year since 1990.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Disciplined Allocation Fund
<PAGE> 5
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--6.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.28%, 5/1/97 (Cost $14,400,000)(1) $14,400,000 $14,400,000
====================================================================================================================================
ASSET-BACKED SECURITIES--0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Olympic Automobile Receivables Trust, Receivables-Backed Nts.,
Series 1997-A, Cl. A5, 6.80%, 2/15/05 (Cost $998,137) 1,000,000 994,845
====================================================================================================================================
MORTGAGE-BACKED OBLIGATIONS--9.4%
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--7.3%
- ------------------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED--3.8%
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg. Participation Certificates:
Series 1992-15, Cl. KZ, 7%, 2/25/22 712,946 600,209
6%, 3/1/09 856,099 825,349
Series 1337, Cl. D, 6%, 8/15/07 1,000,000 918,430
Series 1820, Cl. Pl, 5.75%, 7/15/06 1,000,000 970,620
Series 1994-43, Cl. PE, 6%, 12/25/19 800,000 780,000
Interest-Only Stripped Mtg.-Backed Security,
Series 1583, Cl. IC, 9.046%, 1/15/20(2) 2,000,000 378,984
Series 1849, Cl. VA, 6%, 12/15/10 882,529 857,978
-------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 848,272 828,143
6.50%, 3/1/26 741,688 700,659
7.50%, 1/1/08--6/1/08 964,158 975,359
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment Conduit
Pass-Through Certificates:
Series 1993-181, Cl. C, 5.40%, 10/25/02 400,000 395,748
Series 1993-190, Cl. Z, 5.85%, 7/25/08 306,651 299,644
Interest-Only Stripped Mtg.-Backed Security,
Series 1993-223, Cl. PM, 7.414%, 10/25/23(2) 2,376,293 386,884
------------
8,918,007
- ------------------------------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED--3.5%
Government National Mortgage Assn.:
6.50%, 10/15/23--4/15/24 5,674,579 5,380,928
7%, 4/15/09--2/15/24 1,549,937 1,523,072
7.50%, 3/15/09 749,013 760,481
8%, 5/15/17 519,437 533,925
------------
8,198,406
- ------------------------------------------------------------------------------------------------------------------------------------
PRIVATE--2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL--1.1%
Chase Commercial Mortgage Securities Corp., Commercial
Mtg. Obligations, Series 1996-1, Cl. A2, 7.60%, 7/18/28 1,500,000 1,500,938
-------------------------------------------------------------------------------------------------------------------
PNC Mortgage Securities Corp., Commercial Mtg.
Pass-Through Certificates, Series 1995-2, Cl. A3, 2/25/12 1,000,000 990,313
------------
2,491,251
</TABLE>
5 Oppenheimer Disciplined Allocation Fund
<PAGE> 6
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURED HOUSING--0.2%
Green Tree Financial Corp., Series 1994-7, Cl. A3, 8%, 3/15/20 $ 500,000 $ 507,340
- --------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY--0.1%
Housing Securities, Inc., Series 1994-3, Cl. A3, 7.25%, 9/25/12(3) 270,617 270,829
- --------------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL--0.7%
GE Capital Mortgage Services, Inc.:
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates,
Series 1994-7, Cl. A18, 2/25/09 994,428 868,882
Series HE2, Cl. A3, 7.30%, 3/25/12 700,000 704,047
------------
1,572,929
------------
Total Mortgage-Backed Obligations (Cost $22,189,040) 21,958,762
================================================================================================================================
U.S. GOVERNMENT OBLIGATIONS--9.7%
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
7.50%, 11/15/16 5,725,000 5,995,151
8.75%, 5/15/17 8,250,000 9,737,582
---------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 6.50%, 8/15/05 7,085,000 6,978,731
------------
Total U.S. Government Obligations (Cost $21,702,805) 22,711,464
================================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--0.2%
- --------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsub. Nts., 7.125%, 5/11/98 300,000 300,937
---------------------------------------------------------------------------------------------------------------
United Mexican States Bonds, 6.97%, 8/12/00 250,000 238,125
------------
Total Foreign Government Obligations (Cost $539,851) 539,062
================================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--23.3%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--2.1%
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.9%
Burmah Castrol plc, 7% Gtd. Medium-Term Nts., 12/15/97 500,000 502,360
---------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co., 8.50% Debs., 2/15/03 228,000 239,553
---------------------------------------------------------------------------------------------------------------
FMC Corp., 8.75% Sr. Nts., 4/1/99 500,000 517,803
---------------------------------------------------------------------------------------------------------------
Morton International, Inc., 9.25% Credit Sensitive Nts., 6/1/20 500,000 589,941
---------------------------------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 250,000 281,079
------------
2,130,736
- --------------------------------------------------------------------------------------------------------------------------------
METALS--0.4%
Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 850,000 910,673
- --------------------------------------------------------------------------------------------------------------------------------
PAPER--0.8%
Aracruz Celulose SA, 10.375% Debs., 1/31/02 750,000 784,688
---------------------------------------------------------------------------------------------------------------
Celulosa Arauco y Constitucion SA, 7.25% Debs., 6/11/98 500,000 501,875
---------------------------------------------------------------------------------------------------------------
Fort Howard Corp., 9.25% Sr. Nts., 3/15/01 500,000 517,500
------------
1,804,063
</TABLE>
6 Oppenheimer Disciplined Allocation Fund
<PAGE> 7
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS--2.5%
- ---------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.3%
Black & Decker Corp., 6.625% Nts., 11/15/00 $ 700,000 $ 694,723
- ---------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.7%
Blockbuster Entertainment Corp., 6.625% Sr. Nts., 2/15/98 500,000 500,385
----------------------------------------------------------------------------------------------------------------
Walt Disney Co., 6.375% Sr. Unsec. Bonds, Series A, 3/30/01 1,250,000 1,233,166
------------
1,733,551
- ---------------------------------------------------------------------------------------------------------------------------------
MEDIA--1.0%
Reed Elsevier, Inc., 6.625% Nts., 10/15/23(4) 400,000 345,936
----------------------------------------------------------------------------------------------------------------
Tele-Communications, Inc., 7.15% Sr. Medium-Term Nts., 2/3/98 400,000 401,469
----------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.45% Nts., 2/1/98 700,000 705,349
----------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 750,000 812,711
------------
2,265,465
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.5%
Federated Department Stores, Inc., 10% Sr. Nts., 2/15/01 350,000 379,255
----------------------------------------------------------------------------------------------------------------
Price/Costco, Inc., 7.125% Sr. Nts., 6/15/05 400,000 389,904
----------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co., 8.39% Medium-Term Nts., 3/23/99 300,000 309,599
------------
1,078,758
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--2.0%
- ---------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.3%
Bass America, Inc., 6.75% Gtd. Nts., 8/1/99 250,000 250,786
----------------------------------------------------------------------------------------------------------------
Fomento Economico Mexicano SA de CV, 9.50% Unsub. Nts., 7/22/97 450,000 452,250
------------
703,036
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD--0.9%
ConAgra, Inc., 9.75% Sr. Nts., 11/1/97 500,000 508,495
----------------------------------------------------------------------------------------------------------------
CPC International, Inc., 6.15% Unsec. Nts., Series C, 1/15/06 500,000 469,899
----------------------------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 530,000 527,617
----------------------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., 9.125% Debs., 1/15/98 500,000 509,030
------------
2,015,041
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--0.3%
Tenet Healthcare Corp.:
8% Sr. Nts., 1/15/05 250,000 245,313
8.625% Sr. Unsec. Nts., 12/1/03 500,000 510,000
------------
755,313
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.5%
Electrolux AB, 7.75% Sr. Unsub. Debs., 6/17/97 500,000 500,625
----------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp., 7.875% Debs., 2/1/23 290,000 290,741
----------------------------------------------------------------------------------------------------------------
Procter & Gamble Co., 9.36% Debs., 1/1/21 250,000 295,645
------------
1,087,011
</TABLE>
7 Oppenheimer Disciplined Allocation Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY--3.7%
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--2.3%
Chesapeake Energy Corp., 7.875% Sr. Nts., 3/15/04(4) $ 750,000 $3,725,625
-----------------------------------------------------------------------------------------------------------------
Coastal Corp., 8.125% Sr. Nts., 9/15/02 500,000 522,004
-----------------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc., 6.80% Nts., Series C, 11/28/05 500,000 484,813
-----------------------------------------------------------------------------------------------------------------
Falcon Drilling Co., Inc., 9.75% Sr. Nts., Series B, 1/15/01 500,000 515,000
-----------------------------------------------------------------------------------------------------------------
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., Series A, 8/1/01 500,000 518,750
-----------------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 915,000 895,714
-----------------------------------------------------------------------------------------------------------------
Petroliam Nasional Berhad, 6.875% Nts., 7/1/03(4) 500,000 494,159
-----------------------------------------------------------------------------------------------------------------
TransCanada PipeLines Ltd., 9.875% Debs., 1/1/21 500,000 616,760
-----------------------------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.25% Sr. Unsec. Debs., 2/1/06 650,000 606,245
------------
5,379,070
- ----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.4%
BP America, Inc., 8.875% Gtd. Debs., 12/1/97 500,000 507,799
-----------------------------------------------------------------------------------------------------------------
Gulf Canada Resources Ltd., 8.25% Sr. Nts., 3/15/17 500,000 492,775
-----------------------------------------------------------------------------------------------------------------
Occidental Petroleum Corp., 6.27% Medium-Term Nts., 11/8/00 1,000,000 980,286
-----------------------------------------------------------------------------------------------------------------
Petroleum Geo-Services ASA, 7.50% Nts., 3/31/07 750,000 747,336
-----------------------------------------------------------------------------------------------------------------
Phillips Petroleum Co., 7.53% Pass-Through Certificates, Series 1994-A1, 9/27/98 539,026 544,034
------------
3,272,230
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--9.4%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS--1.8%
BankAmerica Corp., 6% Nts., 7/15/97 500,000 499,964
-----------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New), 10.125% Sub. Nts., 11/1/00 250,000 275,236
-----------------------------------------------------------------------------------------------------------------
Citicorp Capital II, 8.015% Bonds, 2/15/27 500,000 493,488
-----------------------------------------------------------------------------------------------------------------
Citicorp, 5.625% Sr. Nts., 2/15/01 550,000 528,693
-----------------------------------------------------------------------------------------------------------------
First Fidelity Bancorporation, 8.50% Sub. Capital Nts., 4/1/98 500,000 509,311
-----------------------------------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 250,000 275,390
-----------------------------------------------------------------------------------------------------------------
Mellon Capital I, 7.72% Bonds, 12/1/26 200,000 189,784
-----------------------------------------------------------------------------------------------------------------
Mellon Financial Bank Corp., 6.50% Gtd. Sr. Nts., 12/1/97 400,000 400,848
-----------------------------------------------------------------------------------------------------------------
People's Bank of Bridgeport, 7.20% Sub. Nts., 12/1/06 1,000,000 966,486
------------
4,139,200
</TABLE>
8 Oppenheimer Disciplined Allocation Fund
<PAGE> 9
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL--6.9%
American General Finance Corp.:
7.70% Sr. Nts., 11/15/97 $ 500,000 $ 504,302
8.50% Sr. Nts., 8/15/98 500,000 513,293
-------------------------------------------------------------------------------------------------------------------
Aristar, Inc., 8.125% Sr. Nts., 12/1/97 250,000 252,820
-------------------------------------------------------------------------------------------------------------------
Associates Corp. of North America, 6.75% Sr. Nts., 10/15/99 500,000 500,721
-------------------------------------------------------------------------------------------------------------------
Capital One Financial Corp., 6.83% Sr. Nts., 5/17/99 500,000 500,429
-------------------------------------------------------------------------------------------------------------------
Capital One Funding Corp., 7.25% Nts., 12/1/03 440,000 426,066
-------------------------------------------------------------------------------------------------------------------
Chrysler Financial Corp., 5.875% Nts., 2/7/01 1,000,000 967,878
-------------------------------------------------------------------------------------------------------------------
Commercial Credit Co., 5.55% Unsec. Nts., 2/15/01 1,000,000 955,922
-------------------------------------------------------------------------------------------------------------------
Countrywide Funding Corp.:
6.05% Gtd. Medium-Term Nts., Series D, 3/1/01 400,000 388,068
6.085% Gtd. Medium-Term Nts., Series B, 7/14/99 500,000 493,400
6.57% Gtd. Medium-Term Nts., Series A, 8/4/97 250,000 250,622
-------------------------------------------------------------------------------------------------------------------
Fleet Mtg. Group, Inc.:
6.125% Nts., 8/15/97 1,000,000 1,000,139
6.50% Nts., 9/15/99 250,000 248,856
-------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
6.25% Unsub. Nts., 2/26/98 500,000 502,120
8% Nts., 12/1/97 500,000 505,377
-------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.65% Medium-Term Nts., 12/15/97 1,000,000 998,009
-------------------------------------------------------------------------------------------------------------------
Golden West Financial Corp., 10.25% Sub. Nts., 5/15/97 500,000 500,579
-------------------------------------------------------------------------------------------------------------------
Household Finance Corp. Ltd., 6% Gtd. Sr. Nts., 6/30/98 250,000 248,608
-------------------------------------------------------------------------------------------------------------------
Household International BV, 6% Gtd. Sr. Nts., 3/15/99 500,000 493,408
-------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
6% Nts., 3/1/01 500,000 486,739
6.50% Nts., 4/1/01 500,000 494,242
-------------------------------------------------------------------------------------------------------------------
Norsk Hydro AS, 8.75% Bonds, 10/23/01 500,000 530,313
-------------------------------------------------------------------------------------------------------------------
Norwest Financial, Inc., 6.50% Sr. Nts., 11/15/97 500,000 501,233
-------------------------------------------------------------------------------------------------------------------
Penske Truck Leasing Co. LP, 7.75% Sr. Nts., 5/15/99 750,000 767,590
-------------------------------------------------------------------------------------------------------------------
PHH Corp., 6.50% Nts., 2/1/00 350,000 347,997
-------------------------------------------------------------------------------------------------------------------
Salomon, Inc., 8.69% Sr. Medium-Term Nts., Series D, 3/1/99 1,000,000 1,035,571
-------------------------------------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.99% Medium-Term Nts., Series 1, 12/26/00 500,000 485,848
-------------------------------------------------------------------------------------------------------------------
TransAmerica Finance Corp.:
6.75% Sr. Nts., 8/15/97 500,000 500,898
6.80% Sr. Nts., 3/15/99 250,000 250,789
-------------------------------------------------------------------------------------------------------------------
U.S. Leasing International, Inc., 7% Nts., 11/1/97 500,000 502,164
------------
16,154,001
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--0.7%
Conseco Financing Trust III, 8.796% Bonds, 4/1/27 750,000 744,879
-------------------------------------------------------------------------------------------------------------------
Equitable Life Assurance Society (U.S.A.), 6.95% Surplus Nts., 12/1/05(4) 500,000 483,539
-------------------------------------------------------------------------------------------------------------------
SunAmerica, Inc., 9% Sr. Nts., 1/15/99 450,000 465,388
------------
1,693,806
</TABLE>
9 Oppenheimer Disciplined Allocation Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--1.9%
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.3%
American Standard, Inc., 10.875% Sr. Nts., 5/15/99(3) $ 740,000 $ 780,700
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.7%
Sun Co., Inc., 7.95% Debs., 12/15/01 1,000,000 1,034,408
----------------------------------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Gtd. Sr. Nts., 12/1/06(3) 750,000 716,550
-----------
1,750,958
- ---------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.2%
Mark IV Industries, Inc., 8.75% Sub. Nts., 4/1/03(3) 400,000 402,000
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.7%
Federal Express Corp., 6.25% Nts., 4/15/98 750,000 748,757
----------------------------------------------------------------------------------------------------------------
Union Pacific Corp.:
7% Nts., 6/15/00 500,000 502,864
7.60% Nts., 5/1/05 500,000 508,677
-----------
1,760,298
- ---------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--0.6%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.2%
British Aerospace plc, 8% Debs., 5/27/97 500,000 500,625
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--0.4%
MCI Communications Corp., 7.125% Sr. Nts., 1/20/00 500,000 505,757
----------------------------------------------------------------------------------------------------------------
U.S. West Capital Funding, Inc., 6.85% Gtd. Nts., 1/15/02 500,000 495,360
-----------
1,001,117
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.1%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.3%
Consumers Power Co., 8.75% Mtg. Nts., 2/15/98 500,000 507,511
----------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 7.25% First Mtg. Nts., Series A, 2/1/99(3) 250,000 250,625
-----------
758,136
- ---------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.5%
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 500,000 493,303
----------------------------------------------------------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 750,000 735,798
-----------
1,229,101
- ---------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.3%
GTE Corp., 8.85% Debs., 3/1/98 750,000 764,937
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $55,428,280) 54,764,549
</TABLE>
10 Oppenheimer Disciplined Allocation Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
<S> <C> <C>
COMMON STOCKS--50.9%
- ---------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--3.7%
- ---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.0%
Du Pont (E.I.) De Nemours & Co. 22,500 $2,387,812
- ---------------------------------------------------------------------------------------------------------------------------------
METALS--1.5%
Allegheny Teledyne, Inc. 39,000 1,038,375
----------------------------------------------------------------------------------------------------------------
Aluminum Co. of America 31,900 2,229,012
----------------------------------------------------------------------------------------------------------------
Oregon Steel Mills, Inc. 17,300 285,450
----------
3,552,837
- ---------------------------------------------------------------------------------------------------------------------------------
PAPER--1.2%
Fort Howard Corp.(5) 78,800 2,713,675
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--4.1%
- ---------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.5%
Crescent Real Estate Equities, Inc. 45,400 1,191,750
- ---------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.5%
AMR Corp.(5) 19,700 1,834,562
----------------------------------------------------------------------------------------------------------------
Delta Air Lines, Inc. 18,100 1,667,462
----------------------------------------------------------------------------------------------------------------
Galoob Toys, Inc.(5) 5,900 99,562
----------
3,601,586
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.1%
Federated Department Stores, Inc.(5) 28,600 972,400
----------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 35,500 1,704,000
----------
2,676,400
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.0%
CompUSA, Inc. 11,000 211,750
----------------------------------------------------------------------------------------------------------------
Costco Cos., Inc.(5) 76,600 2,211,825
----------
2,423,575
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--5.7%
- ---------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--1.0%
Anheuser-Busch Cos., Inc. 54,700 2,345,262
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD--2.2%
American Stores Co. 58,400 2,657,200
----------------------------------------------------------------------------------------------------------------
Kroger Co.(5) 95,200 2,618,000
----------
5,275,200
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--1.3%
Tenet Healthcare Corp.(5) 69,795 1,814,670
----------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(5) 29,200 1,233,700
----------
3,048,370
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.8%
Premark International, Inc. 74,500 1,825,250
- ---------------------------------------------------------------------------------------------------------------------------------
TOBACCO--0.4%
RJR Nabisco Holdings Corp. 31,700 943,075
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY--4.8%
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--1.3%
Diamond Offshore Drilling, Inc.(5) 12,600 811,125
----------------------------------------------------------------------------------------------------------------
Global Marine, Inc.(5) 38,500 774,812
----------------------------------------------------------------------------------------------------------------
Oryx Energy Co. 37,900 758,000
----------------------------------------------------------------------------------------------------------------
Tidewater, Inc. 16,200 650,025
----------
2,993,962
</TABLE>
11 Oppenheimer Disciplined Allocation Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OIL-INTEGRATED--3.5%
Amoco Corp. 25,100 $ 2,098,987
----------------------------------------------------------------------------------------------------------------
Chevron Corp. 36,400 2,493,400
----------------------------------------------------------------------------------------------------------------
Exxon Corp. 28,000 1,585,500
----------------------------------------------------------------------------------------------------------------
Mobil Corp. 15,500 2,015,000
------------
8,192,887
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--10.4%
- ---------------------------------------------------------------------------------------------------------------------------------
BANKS--4.1%
BankAmerica Corp. 27,300 3,190,687
----------------------------------------------------------------------------------------------------------------
BankBoston Corp. 34,300 2,495,325
----------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 6,900 639,112
----------------------------------------------------------------------------------------------------------------
NationsBank Corp. 34,200 2,064,825
----------------------------------------------------------------------------------------------------------------
PNC Bank Corp. 30,600 1,258,425
------------
9,648,374
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.7%
Dean Witter, Discover & Co. 60,000 2,295,000
----------------------------------------------------------------------------------------------------------------
Salomon, Inc. 31,800 1,590,000
----------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 43,500 2,408,812
------------
6,293,812
- ---------------------------------------------------------------------------------------------------------------------------------
INSURANCE--3.6%
AFLAC, Inc. 23,800 1,023,400
----------------------------------------------------------------------------------------------------------------
Chubb Corp. 28,000 1,617,000
----------------------------------------------------------------------------------------------------------------
Conseco, Inc. 62,600 2,590,075
----------------------------------------------------------------------------------------------------------------
Equitable Cos., Inc. 40,900 1,196,325
----------------------------------------------------------------------------------------------------------------
Travelers Property Casualty Corp., Cl. A 58,600 1,977,750
------------
8,404,550
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--9.2%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.0%
Rockwell International Corp. 33,800 2,247,700
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.2%
DT Industries, Inc. 21,400 556,400
- ---------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--7.2%
AGCO Corp. 77,500 2,005,312
----------------------------------------------------------------------------------------------------------------
Case Corp. 38,400 2,126,400
----------------------------------------------------------------------------------------------------------------
Deere & Co. 45,700 2,102,200
----------------------------------------------------------------------------------------------------------------
Ingersoll-Rand Co. 40,000 1,965,000
----------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 29,230 679,598
----------------------------------------------------------------------------------------------------------------
PACCAR, Inc. 24,300 1,697,963
----------------------------------------------------------------------------------------------------------------
Textron, Inc. 34,800 3,875,850
----------------------------------------------------------------------------------------------------------------
U.S. Industries, Inc.(5) 69,700 2,517,913
------------
16,970,236
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.8%
Union Pacific Corp. 31,300 1,995,375
- ---------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--7.0%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.4%
General Dynamics Corp. 21,900 1,560,375
----------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 23,371 2,091,705
----------------------------------------------------------------------------------------------------------------
Thiokol Corp. 2,700 176,175
----------------------------------------------------------------------------------------------------------------
TRW, Inc. 35,800 1,866,075
------------
5,694,330
</TABLE>
12 Oppenheimer Disciplined Allocation Fund
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE--3.6%
Compaq Computer Corp.(5) 15,200 $ 1,297,700
----------------------------------------------------------------------------------------------------------------
Dell Computer Corp.(5) 14,100 1,179,994
----------------------------------------------------------------------------------------------------------------
Gateway 2000, Inc.(5) 21,800 1,196,275
----------------------------------------------------------------------------------------------------------------
Seagate Technology(5) 49,500 2,270,813
----------------------------------------------------------------------------------------------------------------
Storage Technology Corp. (New)(5) 71,000 2,493,875
------------
8,438,657
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--1.0%
Intel Corp. 5,700 872,813
----------------------------------------------------------------------------------------------------------------
Micron Electronics, Inc.(5) 16,900 344,338
----------------------------------------------------------------------------------------------------------------
SCI Systems, Inc.(5) 17,700 1,092,975
------------
2,310,126
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES--6.0%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.0%
American Electric Power Co., Inc. 21,000 850,500
----------------------------------------------------------------------------------------------------------------
CalEnergy, Inc.(5) 37,500 1,467,188
----------------------------------------------------------------------------------------------------------------
Entergy Corp. 44,900 1,049,538
----------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 29,700 1,325,363
------------
4,692,589
- ---------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--2.3%
Columbia Gas System, Inc. 45,100 2,790,563
----------------------------------------------------------------------------------------------------------------
PanEnergy Corp. 35,100 1,553,175
----------------------------------------------------------------------------------------------------------------
Questar Corp. 28,300 1,075,400
------------
5,419,138
- ---------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.7%
GTE Corp. 34,300 1,573,513
----------------------------------------------------------------------------------------------------------------
U S West Communications Group 67,800 2,381,475
------------
3,954,988
------------
Total Common Stocks (Cost $104,066,058) 119,797,916
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $219,324,171) 100.0% 235,166,598
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.0 77,883
------- ------------
NET ASSETS 100.0% $235,244,481
======= ============
</TABLE>
1. Short-term notes are generally traded on a discount basis;
the interest rate is the discount rate received by the Fund at
the time of purchase.
2. Interest-Only Strips represent the right to receive the
monthly interest payments on an underlying pool of mortgage
loans. These securities typically decline in price as interest
rates decline. Most other fixed income securities increase in
price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which
current interest is calculated. The price of these securities
is typically more sensitive to changes in prepayment rates
than traditional mortgage-backed securities (for example, GNMA
pass-throughs). Interest rates disclosed represent current
yields based upon the current cost basis and estimated timing
and amount of future cash flows.
3. Identifies issues considered to be illiquid or
restricted--See Note 5 of Notes to Financial Statements.
4. Represents securities sold under Rule 144A, which are
exempt from registration under the Securities Act of 1933, as
amended. These securities have been determined to be liquid
under guidelines established by the Board of Directors. These
securities amount to $2,049,259 or 0.87% of the Fund's net
assets, at April 30, 1997.
5. Non-income producing security.
See accompanying Notes to Financial Statements.
13 Oppenheimer Disciplined Allocation Fund
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (Unaudited)
<TABLE>
=============================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $219,324,171)--see accompanying statement $235,166,598
--------------------------------------------------------------------------------------------
Receivables:
Investments sold 5,540,196
Interest, dividends and principal paydowns 2,012,207
Shares of capital stock sold 271,826
--------------------------------------------------------------------------------------------
Other 9,640
------------
Total assets 243,000,467
=============================================================================================================
LIABILITIES
Bank overdraft 71,580
--------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 7,036,421
Shares of capital stock redeemed 486,790
Directors' fees--Note 1 58,354
Distribution and service plan fees 47,561
Transfer and shareholder servicing agent fees 4,852
Other 50,428
------------
Total liabilities 7,755,986
=============================================================================================================
NET ASSETS $235,244,481
============
=============================================================================================================
COMPOSITION OF
NET ASSETS
Par value of shares of capital stock $ 15,480
--------------------------------------------------------------------------------------------
Additional paid-in capital 211,279,039
--------------------------------------------------------------------------------------------
Undistributed net investment income 954,466
--------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 7,153,069
--------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 15,842,427
------------
Net assets $235,244,481
============
=============================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $228,545,344 and 15,042,955 shares of capital stock outstanding) $15.19
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $16.12
--------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $5,832,465 and 379,850 shares of capital stock
outstanding) $15.35
--------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $866,672 and 57,390 shares of capital stock outstanding) $15.10
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Disciplined Allocation Fund
<PAGE> 15
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1997 (Unaudited)
<TABLE>
==============================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 4,572,057
--------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $1,029) 864,759
-----------
Total income 5,436,816
=============================================================================================================
EXPENSES
Management fees--Note 4 741,658
--------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 291,107
Class B 24,541
Class C 2,064
--------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 111,489
--------------------------------------------------------------------------------------------
Shareholder reports 49,447
--------------------------------------------------------------------------------------------
Directors' fees and expenses--Note 1 36,896
--------------------------------------------------------------------------------------------
Legal and auditing fees 21,087
--------------------------------------------------------------------------------------------
Insurance expenses 3,458
--------------------------------------------------------------------------------------------
Custodian fees and expenses 3,234
--------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 541
Class C 207
--------------------------------------------------------------------------------------------
Other 11,052
-----------
Total expenses 1,296,781
=============================================================================================================
NET INVESTMENT INCOME 4,140,035
=============================================================================================================
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 7,297,413
--------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 1,946,451
-----------
Net realized and unrealized gain 9,243,864
=============================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $13,383,899
===========
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Disciplined Allocation Fund
<PAGE> 16
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996(1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 4,140,035 $ 6,742,111
-----------------------------------------------------------------------------------------------------
Net realized gain 7,297,413 20,224,060
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,946,451 (12,786,272)
------------ ------------
Net increase in net assets resulting from operations 13,383,899 14,179,899
======================================================================================================================
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS
Dividends from net investment income:
Class A (4,619,569) (5,234,654)
Class B (82,991) (50,540)
Class C (7,200) (1,461)
-----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (19,862,943) (786,458)
Class B (389,052) (8,614)
Class C (21,246) (45)
- ----------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK
TRANSACTIONS
Net increase in net assets resulting from
capital stock transactions--Note 2:
Class A 6,610,301 7,182,619
Class B 2,151,640 3,182,132
Class C 685,302 184,182
======================================================================================================================
NET ASSETS
Total increase (decrease) (2,151,859) 18,647,060
-----------------------------------------------------------------------------------------------------
Beginning of period 237,396,340 218,749,280
------------ ------------
End of period (including undistributed net investment income
of $954,466 and $1,524,191, respectively) $235,244,481 $237,396,340
============ ============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to
October 31.
See accompanying Notes to Financial Statements.
16 Oppenheimer Disciplined Allocation Fund
<PAGE> 17
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
APRIL 30, ENDED
1997 OCT. 31, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1996(3) 1995 1994 1993 1992
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $16.00 $15.46 $13.44 $14.54 $13.81 $14.02
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .27 .46 .60 .55 .48 .50
Net realized and unrealized
gain (loss) .62 .49 2.59 (.86) 1.70 .86
-------- -------- -------- -------- -------- --------
Total income (loss) from
investment operations .89 .95 3.19 (.31) 2.18 1.36
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.31) (.36) (.60) (.55) (.48) (.50)
Distributions from net realized gain (1.39) (.05) (.57) (.24) (.97) (1.07)
-------- -------- -------- -------- -------- --------
Total dividends and distributions
to shareholders (1.70) (.41) (1.17) (.79) (1.45) (1.57)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.19 $16.00 $15.46 $13.44 $14.54 $13.81
======== ======== ======== ======== ======== ========
=================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 5.76% 6.27% 23.95% (2.11)% 15.89% 9.90%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $228,545 $233,289 $218,099 $177,904 $171,205 $109,701
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $234,132 $228,203 $200,172 $187,655 $138,629 $ 96,016
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.50%(5) 3.52%(5) 4.00% 3.80% 3.40% 3.61%
Expenses 1.07%(5) 1.11%(5) 1.17% 0.96% 1.02% 1.11%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38.5% 85.4% 55.2% 115.0% 155.2% 177.9%
Average brokerage commission rate(7) $0.0693 $0.0636 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED PERIOD
APRIL 30, PERIOD ENDED APRIL 30, ENDED
1997 OCT. 31, DEC. 31, 1997 OCT. 31,
(UNAUDITED) 1996(3) 1995(2) (UNAUDITED) 1996(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $16.16 $15.66 $15.48 $15.93 $15.71
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .21 .31 .07 .28 .30
Net realized and unrealized
gain (loss) .63 .54 .70 .55 .32
------ ------ ------ ------ ------
Total income (loss) from
investment operations .84 .85 .77 .83 .62
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.26) (.30) (.07) (.27) (.35)
Distributions from net realized gain (1.39) (.05) (.52) (1.39) (.05)
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (1.65) (.35) (.59) (1.66) (.40)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.35 $16.16 $15.66 $15.10 $15.93
====== ====== ====== ====== ======
=========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 5.35% 5.51% 4.93% 5.35% 4.08%
=========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $5,832 $3,919 $650 $867 $188
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $4,963 $2,324 $375 $420 $ 57
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.70%(5) 2.86%(5) 0.73%(5) 2.56%(5) 2.90%(5)
Expenses 1.85%(5) 1.85%(5) 1.92%(5) 1.93%(5) 1.87%(5)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38.5% 85.4% 55.2% 38.5% 85.4%
Average brokerage
commission rate(7) $0.0693 $0.0636 -- $0.0693 $0.0636
</TABLE>
1. For the period from May 1, 1996 (inception of offering) to
October 31, 1996.
2. For the period from October 2, 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 April
30, 1997 were $110,252,456 and $80,435,226, 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.
See accompanying Notes to Financial Statements.
17 Oppenheimer Disciplined Allocation Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Disciplined Allocation 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 high total investment
return (current income and capital appreciation in the value
of its shares). The Fund's investment adviser is
OppenheimerFunds, Inc. (the Manager). 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 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.
---------------------------------------------------------------
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 six months ended April
30, 1997, a provision of $38,309 was made for the Fund's
projected benefit obligations and payments of $4,525 were made
to retired directors, resulting in an accumulated liability of
$56,204.
---------------------------------------------------------------
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.
18 Oppenheimer Disciplined Allocation Fund
<PAGE> 19
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
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 primarily because of
paydown gains and losses and the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for 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 was recorded by
the Fund.
---------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date
the investments are purchased or sold (trade date) and
dividend income is recorded on the ex-dividend date. Discount
on securities purchased is amortized over the life of the
respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for
federal income tax purposes.
The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income
and expenses during the reporting period. Actual results could
differ from those estimates.
================================================================================
2. SHARES OF
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 APRIL 30, 1997 PERIOD ENDED OCTOBER 31, 1996(1)
------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 722,893 $ 11,145,016 2,232,163 $ 34,798,022
Dividends and distributions reinvested 1,604,987 24,135,453 380,285 5,902,477
Redeemed (1,862,103) (28,670,168) (2,143,354) (33,517,880)
---------- ------------ ---------- ------------
Net increase 465,777 $ 6,610,301 469,094 $ 7,182,619
========== ============ ========== ============
-------------------------------------------------------------------------------------------------------------
Class B:
Sold 121,828 $ 1,918,138 222,321 $ 3,523,228
Dividends and distributions reinvested 30,770 468,287 3,640 57,138
Redeemed (15,205) (234,785) (25,008) (398,234)
---------- ------------ ---------- ------------
Net increase 137,393 $ 2,151,640 200,953 $ 3,182,132
========== ============ ========== ============
-------------------------------------------------------------------------------------------------------------
Class C:
Sold 44,742 $ 672,660 11,772 $ 183,684
Dividends and distributions reinvested 1,854 27,753 95 1,489
Redeemed (1,009) (15,111) (64) (991)
---------- ------------ ---------- ------------
Net increase 45,587 $ 685,302 11,803 $ 184,182
========== ============ ========== ============
</TABLE>
1. 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.
19 Oppenheimer Disciplined Allocation Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At April 30, 1997, net unrealized appreciation on investments
of $15,842,427 was composed of gross appreciation of
$18,820,855, and gross depreciation of $2,978,428.
================================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager are 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, 0.50% of the next $100 million and 0.45% of
average annual net assets in excess of $400 million.
For the six months ended April 30, 1997,
commissions (sales charges paid by investors) on sales of
Class A shares totaled $264,581, of which $264,581 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 $75,864 and $5,670, of which $45,838
and $1,194, respectively, were paid to an affiliated
broker/dealer for Class B and Class C. During the six months
ended April 30, 1997, OFDI received contingent deferred sales
charges of $5,403 upon redemption of Class B shares as
reimbursement for sales commissions advanced by OFDI at the
time of sale of such shares.
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 April 30,
1997, OFDI paid $258,123 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance
expenses.
The Fund has adopted compensation type
Distribution and Service Plans for Class B and Class C shares
to compensate OFDI for its services and costs in distributing
Class B and Class C shares and servicing accounts. Under the
Plans, the Fund pays OFDI an annual asset-based sales charge
of 0.75% per year on Class B and Class C shares, as
compensation for sales commissions paid from its own resources
at the time of sale and associated financing costs. OFDI also
receives a service fee of 0.25% per year as compensation for
costs incurred in connection with the personal service and
maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other
financial institutions. Both fees are computed on the average
annual net assets of Class B and Class C shares, determined as
of the close of each regular business day. During the six
months ended April 30, 1997, OFDI retained $23,190 and $1,581,
respectively, as compensation for Class B and Class C sales
commissions and service fee advances, as well as financing
costs. If the Plans are 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 Plans were terminated. As of April 30,
1997, OFDI had incurred unreimbursed expenses of $159,222 for
Class B and $7,701 for Class C.
20 Oppenheimer Disciplined Allocation Fund
<PAGE> 21
================================================================================
5. ILLIQUID AND
RESTRICTED SECURITIES
At April 30, 1997, investments in securities included issues
that are illiquid or restricted. Restricted securities are
often purchased in private placement transactions, are not
registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under
methods approved by the Board of Directors as reflecting fair
value. A security may be considered illiquid if it lacks a
readily-available market or if its valuation has not changed
for a certain period of time. The Fund intends to invest no
more than 10% of its net assets (determined at the time of
purchase and reviewed from time to time) in illiquid or
restricted securities. Certain restricted securities, eligible
for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or
restricted securities subject to this limitation at April 30,
1997 was $2,420,704, which represents 1.03% of the Fund's net
assets.
================================================================================
6. SUBSEQUENT EVENT
Effective June 11, 1997, the custodian of portfolio securities
will change from State Street Bank and Trust Company to The
Bank of New York.
21 Oppenheimer Disciplined Allocation Fund
<PAGE> 22
OPPENHEIMER DISCIPLINED ALLOCATION 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
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 SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
State Street Bank and Trust Company
================================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from
the records of the Fund without examination by the independent
auditors. This is a copy of a report to shareholders of
Oppenheimer Disciplined Allocation Fund. This report must be
preceded or accompanied by a Prospectus of Oppenheimer
Disciplined Allocation 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, are not insured by
the FDIC or any other agency, and involve investment risks,
including possible loss of the principal amount invested.
22 Oppenheimer Disciplined Allocation Fund
<PAGE> 23
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 comfortable 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 $60 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 telephone.(1) For more information on Oppenheimer funds,
please contact 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.
<TABLE>
<S> <C> <C>
====================================================================================================================================
REAL ASSET FUNDS Real Asset Fund Gold & Special Minerals Fund
====================================================================================================================================
STOCK FUNDS Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Capital Appreciation Fund(2) Quest Value Fund
Quest Capital Value Fund
====================================================================================================================================
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(3)
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 FUNDS California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
====================================================================================================================================
MONEY MARKET FUNDS(5) Money Market Fund Cash Reserves
====================================================================================================================================
LIFESPAN Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination.
Shares may be exchanged only for shares of the same class of
eligible funds.
2. On 12/18/96, the Fund's name was changed from "Target Fund."
3. On 3/6/97, the Fund's name was changed from "Asset Allocation
Fund."
4. Available only to investors in certain states.
5. 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 1997 OppenheimerFunds,
Inc. All rights reserved.
23 Oppenheimer Disciplined Allocation Fund
<PAGE> 24
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
RS0205.001.0497 June 30, 1997
[PHOTO]
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.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- -------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
- -------------------
