<PAGE> 1
OPPENHEIMER DISCIPLINED ALLOCATION FUND
ANNUAL REPORT OCTOBER 31, 1996
[PHOTO]
"We want the
comfort of
having a variety
of different
investments,
but the
convenience
of doing it with
one fund."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
NEWS
BEAT THE AVERAGE
Cumulative Total Return for the 5-Year Period Ended 9/30/96:
Oppenheimer Disciplined Allocation Fund Class A (at net asset value)(1)
73.13%
Lipper Balanced Funds Average for 72 Funds for the 5-Year Period Ended
9/30/96(3)
68.18%
THE FUND'S CLASS A SHARES WERE RANKED **** AMONG 1,684 (3-YEAR), 1,014 (5-YEAR)
AND 560 (10-YEAR) EQUITY FUNDS FOR THE COMBINED 3-, 5- AND 10-YEAR PERIODS
ENDED 9/30/96 BY MORNINGSTAR MUTUAL FUNDS.(4)
THIS FUND IS FOR PEOPLE WHO 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 return for Class A shares for the 12 months ended 9/30/96 was 9.39%,
without deducting sales charges. Cumulative total return for Class B shares
since inception on 10/1/95 was 8.80%, without deducting sales charges. For
Class C shares, cumulative total return since incep-tion on 5/1/96 was 2.25%,
without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-,
5- and 10-year periods ended 9/30/96 were 3.10%, 10.29% and 11.00%,
respectively. For Class B shares, cumulative total return since inception on
10/1/95 was 3.80%. For Class C shares, cumulative total return since inception
on 5/1/96 was 1.25%.(2)
OUTLOOK
"Although the types of securities the Fund invests in have not been in favor
for much of this year, our value-oriented stock, bond and asset allocation
disciplines, introduced nearly ten years ago, have resulted in a clearly
superior record relative to other funds in the same category."
Peter Antos, Portfolio Manager
October 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. All classes of
shares have the same investment portfolio but different expenses. For more
complete information, please review the prospectus carefully before you invest.
Prior to March 1, 1996, the Fund had a different investment adviser. However,
the prior portfolio management team is now employed by OppenheimerFunds, Inc.,
the current adviser.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 9/16/85. The Fund's maximum
sales charge for Class A shares was less during a portion of some of the
periods shown, and actual investment results will be different as a result.
Class B returns include the applicable contingent deferred sales charge of 5%
(since inception). Class C returns include the applicable contingent deferred
sales charge of 1%. An explanation of the different performance calculations is
in the Fund's prospectus. Class B and C shares are subject to an annual .75%
asset-based sales charge.
3. Source: Lipper Analytical Services, 9/30/96. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Disciplined Allocation
Fund is characterized by Lipper as a balanced fund. Lipper performance is based
on total return and does not take sales charges into account.
4. Source: Morningstar Mutual Funds, 9/30/96. Morningstar rankings are based on
risk-adjusted investment return, after considering sales charges and expenses.
Investment return measures a fund's (or class's) 3-, 5- and 10-year (depending
on the inception of the class or fund) average annual total returns in excess
of 90-day U.S. Treasury bill returns. Risk measures a fund's (or class's)
performance below 90-day U.S. Treasury bill returns. Risk and returns are
combined to produce star rankings, reflecting performance relative to the
average fund in the fund's category. The top 10% of funds in each investment
class receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3 stars; the
next 22.5%, 2 stars; and the bottom 10%, 1 star. The 4-star current ranking is
a weighted average of the 3-, 5- and 10-year rankings for the Fund's Class A
shares, which were 3, 3 and 4 stars, weighted 20%/30%/50%, respectively. The
1-year star ranking is 2 stars, but is not included in Morningstar's overall
ranking calculations. There were 1,684 funds in the 1-year period. Rankings are
subject to change monthly. The Fund's Class A, B and C shares have the same
investment portfolio but different expenses.
2 Oppenheimer Disciplined Allocation Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Disciplined
Allocation Fund
DEAR SHAREHOLDER,
Following a summer of uncertainty surrounding the economy and the stock market,
the arrival of fall brought renewed vigor to both. Most notable, the Dow Jones
Industrial Average broke out of its fluctuating pattern and burst through the
once-unimaginable 6,000 mark, sending many stock prices to all-time highs. But
as the Dow began accelerating faster than the economy, a debate erupted about
how long this bull run could last.
Looking back, the autumn rally was clearly a result of three main
factors: solid corporate profits, low inflation and stabilized interest rates,
all of which attracted investors to Wall Street. And though the stock market is
currently highly valued, there continue to be a number of positive economic
influences that may extend the market's uphill run.
We consider the leading catalyst to be the robust returns from
corporate America, where a strong economy boosted third-quarter earnings. To
date, we're still witnessing a cycle of events that could maintain the appeal
of these companies to investors. For example, corporate streamlining efforts,
such as spinoffs of non-core businesses, and consolidation within industries
are helping to increase the cash flow of many firms. In return, additional cash
flows enable these companies to add shareholder value by initiating stock
repurchasing programs. As corporations buy back record amounts of their own
stocks, they are reducing the supply and thereby raising the book value of
their outstanding shares, a move which further contributes to higher stock
prices.
Additionally, the demand for stocks remains strong, largely because,
as many experts believe, investors are taking more responsibility for their
retirement investments. Indeed, as the country's baby boomers near retirement,
they are becoming increasingly aware of the need to secure their own financial
future, because they expect less and less from standard company pensions or
Social Security. As a result, equity mutual funds have become the fastest
growing means by which these investors are seeking to achieve their long-term
goals.
While these signs appear favorable for many well-managed companies,
stock valuations remain at historically high levels, causing us to become more
cautious about the market overall. We do not, however, expect to see a
significant market decline. In fact, we are confident that as long as corporate
earnings stay healthy, there will continue to be numerous investment
opportunities available to fill the demand for stocks. Nevertheless, it is
becoming more difficult to uncover true values and justify higher prices.
Therefore, we believe the correct approach to take at this point is to
carefully evaluate companies based on individual merits, such as strong
management, fundamental business policies and long-term prospects for the
future.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
November 21, 1996
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 OVER THE PAST YEAR?
While the Oppenheimer Disciplined Allocation Fund has a strong long-term
record, 1996 has not been its best year. In keeping with our quantitative,
value-oriented approach, the Fund had a smaller percentage of its portfolio
invested in equities than other funds in the same category. In strong equity
markets, like the one we have seen this period, riskier, more aggressive funds
tend to perform better. However, our discipline favors undervalued,
out-of-favor stocks. In this growing but volatile market, investors are anxious
about the economic and political environments and are willing to pay for highly
valued securities that offer a greater level of certainty. As a result, our
emphasis on undervalued stocks was out of favor in this year's stock market.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING SECURITIES?
We manage from the bottom up, looking at companies, not sectors, to find those
investments with the most growth potential. When looking at equities, we screen
the universe for out-of-favor, under-valued stocks that have had recent
positive earnings surprises. On the fixed income side, we look for relatively
high grade bonds to provide some stability and income. The Fund's allocation
between stocks, bonds and cash is determined by identifying which among the
three is the more under-valued group with the most potential for total return.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
Selected stocks in the technology and energy sectors have been strong
contributors to performance this year. Within technology,
personal-computer-related stocks have been big winners. In the energy area,
natural gas stocks have done best.(1)
DID ANY INVESTMENTS OR MARKET FACTORS HURT THE FUND?
As mentioned earlier, our underweighting in equities relative to our
competition has hurt our performance. However, we stand by this position as
data continues to suggest that the equity market is overvalued and may be due
for a correction.
In addition, although agricultural companies performed well for the
Fund in the last quarter of 1995, they have underperformed this year. Because
of low worldwide supplies of grain and increasing food consumption in
developing countries, we had expected performance to remain strong well into
1996. It appears, however, that agricultural companies' stocks had moved too
far, too fast late last year and since then they have dropped back to more
realistic valuations.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Although the types of securities the Fund invests in have not been in favor for
much of this year, our value-oriented stock, bond and asset allocation
disciplines, introduced nearly ten years ago, have resulted in a superior
record relative to other funds in the same category. With only a few periods
of underperformance in the Fund's history, we remain committed to these
time-tested disciplines and do not intend to alter our strategy.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Disciplined Allocation Fund
<PAGE> 5
STATEMENT OF INVESTMENTS October 31, 1996
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS--8.7%
- --------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--7.4%
- --------------------------------------------------------------------------------------------------------------------------------
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 $ 688,495 $ 597,270
Gtd. Multiclass Mtg. Participation Certificates, 6%, 3/1/09 913,902 889,117
Gtd. Multiclass Mtg. Participation Certificates, Series 1337,
Cl. D, 6%, 8/15/07 1,000,000 942,180
Gtd. Multiclass Mtg. Participation Certificates, Series 1820,
Cl. Pl, 5.75%, 7/15/06 1,000,000 979,063
Gtd. Multiclass Mtg. Participation Certificates, Series 1994-43,
Cl. PE, 6%, 12/25/19 800,000 790,496
Series 1849, Cl. VA, 6%, 12/15/10 947,402 932,301
-------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 937,679 921,383
6.50%, 3/1/26 754,821 722,251
7.50%, 1/1/08 414,136 422,079
7.50%, 3/1/08 366,445 373,459
7.50%, 6/1/08 254,522 259,394
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates, Series
1993-181, Cl. C, 5.40%, 10/25/02 400,000 397,000
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates, Series
1993-190, Cl. Z, 5.85%, 7/25/08 297,833 293,599
Interest-Only Stripped Mtg.-Backed Security, Series 1993-223,
Cl. PM, 7.709%, 10/25/23(1) 2,655,775 442,346
----------
8,961,938
- --------------------------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED--3.6% Government National Mortgage Assn.:
6.50%, 10/15/23--4/15/24 5,806,473 5,593,732
7%, 4/15/09--2/15/24 1,622,059 1,613,111
7.50%, 3/15/09 805,644 824,311
8%, 5/15/17 557,587 577,967
----------
8,609,121
- --------------------------------------------------------------------------------------------------------------------------------
PRIVATE--1.3%
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL--0.6% Chase Commercial Mortgage Securities Corp.,
Commercial Mtg. Obligations, Series 1996-1, Cl. A2, 7.60%,
7/18/28 1,500,000 1,539,023
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURED HOUSING--0.2% Green Tree Financial Corp., Series 1994-7, Cl. A3, 8%, 3/15/20 500,000 511,405
- --------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY--0.2% Housing Securities, Inc., Series 1994-3, Cl. A3, 7.25%, 9/25/12 362,868 363,548
- --------------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL--0.3% GE Capital Mortgage Securities, Inc., Series-HE2, Cl. A3, 7.30%,
3/25/12 700,000 709,516
----------
Total Mortgage-Backed Obligations (Cost $20,512,673) 20,694,551
================================================================================================================================
U.S. GOVERNMENT OBLIGATIONS--36.3%
- --------------------------------------------------------------------------------------------------------------------------------
AGENCY--22.4%
- --------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank Consolidated Disc. Nts.:
5.16%, 11/14/96 20,000,000 19,962,733
5.50%, 11/1/96 26,200,000 26,200,000
-------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.18%, 11/18/96 7,000,000 6,982,877
----------
53,145,610
</TABLE>
5 Oppenheimer Disciplined Allocation Fund
<PAGE> 6
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TREASURY--13.9% U.S. Treasury Bonds:
7.50%, 11/15/16 $8,475,000 $ 9,168,891
8.75%, 5/15/17 8,250,000 10,065,000
-------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.75%, 8/15/03 300,000 292,231
6.50%, 8/15/05 4,000,000 4,042,500
7.25%, 8/15/04 5,600,000 5,913,247
7.50%, 11/15/01 3,400,000 3,600,412
------------
33,082,281
------------
Total U.S. Government Obligations (Cost $84,369,697) 86,227,891
================================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--0.3%
- --------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsub. Nts., 7.125%, 5/11/98 300,000 301,125
-------------------------------------------------------------------------------------------------
United Mexican States Bonds, 6.97%, 8/12/00 250,000 234,062
------------
Total Foreign Government Obligations (Cost $537,244) 535,187
================================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--21.3%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--2.2%
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.3% Burmah Castrol plc, 7% Gtd. Medium-Term Nts., 12/15/97 500,000 506,585
-------------------------------------------------------------------------------------------------
FMC Corp., 8.75% Sr. Nts., 4/1/99 500,000 525,588
-------------------------------------------------------------------------------------------------
Lyondell Petrochemical Co., 8.25% Nts., 3/15/97 1,100,000 1,109,749
-------------------------------------------------------------------------------------------------
Morton International, Inc., 9.25% Credit Sensitive Nts., 6/1/20 500,000 612,666
-------------------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 250,000 301,076
------------
3,055,664
- --------------------------------------------------------------------------------------------------------------------------------
METALS--0.4% Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 850,000 921,706
- --------------------------------------------------------------------------------------------------------------------------------
PAPER--0.5% Celulosa Arauco y Constitucion SA, 7.25% Debs., 6/11/98 500,000 501,875
-------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., 9.85% Credit Sensitive Nts., 6/15/97 750,000 768,057
------------
1,269,932
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--2.3%
- --------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.3% Black & Decker Corp., 6.625% Nts., 11/15/00 700,000 703,212
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.7% Blockbuster Entertainment Corp., 6.625% Sr. Nts., 2/15/98 500,000 502,509
-------------------------------------------------------------------------------------------------
Walt Disney Co., 6.375% Sr. Unsec. Bonds, Series A, 3/30/01 1,250,000 1,248,499
------------
1,751,008
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA--0.6% Reed Elsevier, Inc., 6.625% Nts., 10/15/23(2) 400,000 358,176
-------------------------------------------------------------------------------------------------
Tele-Communications, Inc., 7.14% Sr. Medium-Term Nts., 2/3/98 400,000 401,018
-------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.45% Nts., 2/1/98 700,000 710,599
------------
1,469,793
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.7% Federated Department Stores, Inc., 10% Sr. Nts., 2/15/01 350,000 383,039
-------------------------------------------------------------------------------------------------
Price/Costco, Inc., 7.125% Sr. Nts., 6/15/05 400,000 398,918
-------------------------------------------------------------------------------------------------
Sears Roebuck & Co., 8.39% Medium-Term Nts., 3/23/99 300,000 314,879
-------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc., 5.875% Nts., 10/15/05 500,000 471,089
------------
1,567,925
</TABLE>
6 Oppenheimer Disciplined Allocation Fund
<PAGE> 7
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NON-CYCLICALS--2.0%
- --------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.2% Fomento Economico Mexico SA, 9.50% Unsub. Nts., 7/22/97 $ 450,000 $ 456,188
- --------------------------------------------------------------------------------------------------------------------------------
FOOD--0.9% ConAgra, Inc., 9.75% Sr. Nts., 11/1/97 500,000 518,719
-------------------------------------------------------------------------------------------------
CPC International, Inc., 6.15% Unsec. Nts., Series C, 1/15/06 500,000 480,722
-------------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 530,000 533,275
-------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., 9.125% Debs., 1/15/98 500,000 514,489
----------
2,047,205
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--0.4% Roche Holdings, Inc., 2.75% Bonds, 4/14/00 950,000 859,156
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & Tenet Healthcare Corp., 8.625% Sr. Unsec. Nts., 12/1/03 500,000 531,250
SERVICES--0.2%
- --------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.3% Electrolux AB, 7.75% Sr. Unsub. Debs., 6/17/97 500,000 505,000
-------------------------------------------------------------------------------------------------
Kimberly-Clark Corp., 7.875% Debs., 2/1/23 290,000 305,042
----------
810,042
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY--2.5%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & Coastal Corp., 8.125% Sr. Nts., 9/15/02 500,000 533,086
PRODUCERS--0.7% -------------------------------------------------------------------------------------------------
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., 8/1/01 500,000 520,000
-------------------------------------------------------------------------------------------------
Petroliam Nasional Berhad, 6.875% Nts., 7/1/03(2) 500,000 505,377
----------
1,558,463
- --------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.8% BP America, Inc., 8.875% Gtd. Debs., 12/1/97 500,000 515,641
-------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 915,000 918,045
-------------------------------------------------------------------------------------------------
Norsk Hydro AS, 8.75% Bonds, 10/23/01 500,000 542,500
-------------------------------------------------------------------------------------------------
Occidental Petroleum Corp., 6.27% Medium-Term Nts., 11/8/00 1,000,000 990,307
-------------------------------------------------------------------------------------------------
Phillips Petroleum Co., 7.53% Pass-Through Certificates,
Series 1994-A1, 9/27/98 733,269 743,704
-------------------------------------------------------------------------------------------------
TransCanada PipeLines Ltd., 9.875% Debs., 1/1/21 500,000 626,030
----------
4,336,227
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--8.3%
- --------------------------------------------------------------------------------------------------------------------------------
BANKS--1.3% BankAmerica Corp., 6% Nts., 7/15/97 500,000 500,810
-------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New), 10.125% Sub. Nts., 11/1/00 250,000 281,550
-------------------------------------------------------------------------------------------------
Citicorp, 5.625% Sr. Nts., 2/15/01 550,000 533,401
-------------------------------------------------------------------------------------------------
First Fidelity Bancorporation, 8.50% Sub. Capital Nts., 4/1/98 500,000 514,866
-------------------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 250,000 282,204
-------------------------------------------------------------------------------------------------
Marshall & Ilsley Corp., 6.95% Medium-Term Nts., Series C, 3/31/97 500,000 502,739
-------------------------------------------------------------------------------------------------
Mellon Financial Bank Corp., 6.50% Gtd. Sr. Nts., 12/1/97 400,000 402,520
----------
3,018,090
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--6.6% American General Finance Corp.:
7.70% Sr. Nts., 11/15/97 500,000 509,242
8.50% Sr. Nts., 8/15/98 500,000 520,978
-------------------------------------------------------------------------------------------------
Aristar, Inc., 8.125% Sr. Nts., 12/1/97 250,000 255,684
-------------------------------------------------------------------------------------------------
Associates Corp. of North America, 6.75% Sr. Nts., 10/15/99 500,000 506,862
-------------------------------------------------------------------------------------------------
Capital One Financial Corp., 6.83% Sr. Nts., 5/17/99 500,000 503,502
-------------------------------------------------------------------------------------------------
Chrysler Financial Corp., 5.875% Nts., 2/7/01 1,000,000 977,424
-------------------------------------------------------------------------------------------------
Commercial Credit Co., 5.55% Unsec. Nts., 2/15/01 1,000,000 966,297
</TABLE>
7 Oppenheimer Disciplined Allocation Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DIVERSIFIED FINANCIAL Countrywide Funding Corp.:
(CONTINUED) 6.05% Gtd. Medium-Term Nts., Series D, 3/1/01 $ 400,000 $ 392,143
6.085% Gtd. Medium-Term Nts., Series B, 7/14/99 500,000 497,200
6.57% Gtd. Medium-Term Nts., Series A, 8/4/97 250,000 251,470
-------------------------------------------------------------------------------------------------
Fleet Mtg. Group, Inc.:
6.125% Nts., 8/15/97 1,000,000 1,002,308
6.50% Nts., 9/15/99 250,000 251,544
-------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
6.25% Unsub. Nts., 2/26/98 500,000 503,240
8% Nts., 12/1/97 500,000 510,781
-------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.65% Medium-Term Nts., 12/15/97 1,000,000 997,437
7.75% Medium-Term Nts., 1/17/97 750,000 750,919
-------------------------------------------------------------------------------------------------
Golden West Financial Corp., 10.25% Sub. Nts., 5/15/97 500,000 511,471
-------------------------------------------------------------------------------------------------
Household Finance Corp. Ltd., 6% Gtd. Sr. Nts., 6/30/98 250,000 249,124
-------------------------------------------------------------------------------------------------
Household International BV, 6% Gtd. Sr. Nts., 3/15/99 500,000 496,279
-------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
6% Nts., 3/1/01 500,000 490,235
6.50% Nts., 4/1/01 500,000 499,441
-------------------------------------------------------------------------------------------------
Norwest Financial, Inc., 6.50% Sr. Nts., 11/15/97 500,000 503,435
-------------------------------------------------------------------------------------------------
Penske Truck Leasing Co. LP, 7.75% Sr. Nts., 5/15/99 750,000 779,938
-------------------------------------------------------------------------------------------------
Salomon, Inc., 8.69% Sr. Medium-Term Nts., Series D, 3/1/99 1,000,000 1,046,846
-------------------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.99% Medium-Term Nts.,
Series 1, 12/26/00 500,000 492,422
-------------------------------------------------------------------------------------------------
TransAmerica Finance Corp.:
6.75% Sr. Nts., 8/15/97 500,000 503,454
6.80% Sr. Nts., 3/15/99 250,000 253,357
-------------------------------------------------------------------------------------------------
U.S. Leasing International, 7% Nts., 11/1/97 500,000 505,296
-----------
15,728,329
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE--0.4% Equitable Life Assurance Society (U.S.A.), 6.95% Surplus Nts.,
12/1/05(2) 500,000 493,904
-------------------------------------------------------------------------------------------------
SunAmerica, Inc., 9% Sr. Nts., 1/15/99 450,000 473,497
-----------
967,401
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.2% American Standard, Inc., 10.875% Sr. Nts., 5/15/99 490,000 523,075
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.4% Bass America, Inc., 6.75% Gtd. Nts., 8/1/99 250,000 254,002
-------------------------------------------------------------------------------------------------
PHH Corp., 6.50% Nts., 2/1/00 350,000 351,469
-------------------------------------------------------------------------------------------------
Procter & Gamble Co., 9.36% Debs., 1/1/21 250,000 305,908
-----------
911,379
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.6% Mark IV Industries, Inc., 8.75% Sub. Nts., 4/1/03 400,000 409,000
-------------------------------------------------------------------------------------------------
Tenneco, Inc.:
10% Debs., 8/1/98 375,000 398,892
9.25% Sr. Nts., 11/1/96 500,000 500,000
-----------
1,307,892
- --------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.8% Federal Express Corp., 6.25% Nts., 4/15/98 750,000 751,807
-------------------------------------------------------------------------------------------------
Union Pacific Corp.:
7% Nts., 6/15/00 500,000 509,773
7.60% Nts., 5/1/05 500,000 520,770
-----------
1,782,350
</TABLE>
8 Oppenheimer Disciplined Allocation Fund
<PAGE> 9
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TECHNOLOGY--0.4%
- --------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.2% British Aerospace plc, 8% Debs., 5/27/97 $500,000 $ 505,938
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- MCI Communications Corp., 7.125% Sr. Nts., 1/20/00 500,000 512,657
TECHNOLOGY--0.2%
- --------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.6%
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.3% Consumers Power Co., 8.75% Mtg. Nts., 2/15/98 500,000 513,559
-------------------------------------------------------------------------------------------------
El Paso Electric Co., 7.25% First Mtg. Nts., Series A, 2/1/99 250,000 250,625
-----------
764,184
- --------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--1.0% Columbia Gas System, Inc., 6.80% Nts., Series C, 11/28/05 500,000 493,576
-------------------------------------------------------------------------------------------------
NorAm Energy Corp., 9.875% Nts., 4/15/97 750,000 763,407
-------------------------------------------------------------------------------------------------
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 500,000 502,148
-------------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.25% Sr. Unsec. Debs., 2/1/06 650,000 617,183
-----------
2,376,314
- --------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.3% GTE Corp., 8.85% Debs., 3/1/98 750,000 776,892
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $50,451,488) 50,512,272
<CAPTION>
SHARES
================================================================================================================================
<S> <C> <C> <C>
COMMON STOCKS--32.7%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--1.7%
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.0% Cabot Corp. 9,900 238,837
-------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 12,700 900,112
-------------------------------------------------------------------------------------------------
Union Carbide Corp. 28,000 1,193,500
-----------
2,332,449
- --------------------------------------------------------------------------------------------------------------------------------
METALS--0.3% UCAR International, Inc.(3) 19,100 747,287
- --------------------------------------------------------------------------------------------------------------------------------
PAPER--0.4% Fort Howard Corp.(3) 41,900 1,073,687
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--3.6%
- --------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.3% Black & Decker Corp. 20,500 766,187
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.7% AMR Corp.(3) 13,300 1,117,200
-------------------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A(3) 17,100 566,437
-----------
1,683,637
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--2.0% Eckerd Corp.(3) 47,600 1,320,900
-------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(3) 33,000 1,089,000
-------------------------------------------------------------------------------------------------
Price/Costco, Inc.(3) 61,100 1,214,362
-------------------------------------------------------------------------------------------------
U.S. Industries, Inc.(3) 43,700 1,179,900
-----------
4,804,162
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--0.6% Toys 'R' Us, Inc.(3) 37,900 1,283,862
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--5.1%
- --------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.6% Anheuser-Busch Cos., Inc. 37,200 1,432,200
- --------------------------------------------------------------------------------------------------------------------------------
FOOD--2.1% American Stores Co. 36,100 1,493,637
-------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 54,780 1,191,465
-------------------------------------------------------------------------------------------------
Dole Food Co. 22,900 893,100
-------------------------------------------------------------------------------------------------
Kroger Co.(3) 30,500 1,361,062
-----------
4,939,264
</TABLE>
9 Oppenheimer Disciplined Allocation Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTHCARE/DRUGS--0.7% Bristol-Myers Squibb Co. 14,700 $1,554,525
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & Columbia/HCA Healthcare Corp. 20,850 745,388
SERVICES--0.8% -----------------------------------------------------------------------------------------------
OrNda Healthcorp(3) 44,400 1,209,900
----------
1,955,288
- ------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.9% Premark International, Inc. 53,100 1,108,463
-----------------------------------------------------------------------------------------------
Tupperware Corp. 20,400 1,048,050
----------
2,156,513
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY--2.1%
- ------------------------------------------------------------------------------------------------------------------------------
Amoco Corp. 16,000 1,212,000
-----------------------------------------------------------------------------------------------
Chevron Corp. 28,900 1,900,175
-----------------------------------------------------------------------------------------------
Mobil Corp. 15,000 1,751,250
----------
4,863,425
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--5.4%
- ------------------------------------------------------------------------------------------------------------------------------
BANKS--3.2% Bank of Boston Corp. 39,800 2,547,200
-----------------------------------------------------------------------------------------------
BankAmerica Corp. 25,400 2,324,100
-----------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 7,500 643,125
-----------------------------------------------------------------------------------------------
NationsBank Corp. 10,900 1,027,325
-----------------------------------------------------------------------------------------------
PNC Bank Corp. 31,500 1,141,875
----------
7,683,625
- ------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--0.8% Crescent Real Estate Equities, Inc. 11,000 459,250
-----------------------------------------------------------------------------------------------
Salomon, Inc. 29,800 1,344,725
----------
1,803,975
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.4% AFLAC, Inc. 29,600 1,187,700
-----------------------------------------------------------------------------------------------
General Re Corp. 7,100 1,045,475
-----------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 39,700 1,191,000
----------
3,424,175
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--4.4%
- ------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--3.9% AGCO Corp. 36,900 936,338
-----------------------------------------------------------------------------------------------
Case Corp. 26,100 1,213,650
-----------------------------------------------------------------------------------------------
Deere & Co. 26,100 1,089,675
-----------------------------------------------------------------------------------------------
General Signal Corp. 28,600 1,165,450
-----------------------------------------------------------------------------------------------
Ingersoll-Rand Co. 26,000 1,082,250
-----------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 23,939 517,681
-----------------------------------------------------------------------------------------------
Textron, Inc. 21,300 1,890,375
-----------------------------------------------------------------------------------------------
Tyco International Ltd. 28,400 1,409,350
----------
9,304,769
- ------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.5% PACCAR, Inc. 6,600 367,950
-----------------------------------------------------------------------------------------------
Union Pacific Corp. 14,100 791,363
----------
1,159,313
</TABLE>
10 Oppenheimer Disciplined Allocation Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY--5.6%
- ----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--3.5% General Dynamics Corp. 23,500 $ 1,612,688
---------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 20,500 868,688
---------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 20,071 1,798,863
---------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 30,500 1,662,250
---------------------------------------------------------------------------------------------------
Rockwell International Corp. 22,000 1,210,000
---------------------------------------------------------------------------------------------------
TRW, Inc. 13,500 1,221,750
------------
8,374,239
- ----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--1.4% Dell Computer Corp.(3) 12,300 1,000,913
---------------------------------------------------------------------------------------------------
Gateway 2000, Inc.(3) 10,200 480,038
---------------------------------------------------------------------------------------------------
Storage Technology Corp. (New)(3) 42,300 1,803,038
------------
3,283,989
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--0.7% Atmel Corp.(3) 3,500 88,813
---------------------------------------------------------------------------------------------------
Intel Corp. 12,000 1,318,500
---------------------------------------------------------------------------------------------------
Waters Corp.(3) 7,500 232,500
------------
1,639,813
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--4.8%
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.0% American Electric Power Co., Inc. 18,000 747,000
---------------------------------------------------------------------------------------------------
CalEnergy, Inc.(3) 32,200 933,800
---------------------------------------------------------------------------------------------------
Entergy Corp. 38,600 1,080,800
---------------------------------------------------------------------------------------------------
FPL Group, Inc. 25,500 1,173,000
---------------------------------------------------------------------------------------------------
Texas Utilities Co. 22,800 923,400
------------
4,858,000
- ----------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--2.3% Columbia Gas System, Inc. (The) 47,800 2,903,850
---------------------------------------------------------------------------------------------------
PanEnergy Corp. 55,400 2,132,900
---------------------------------------------------------------------------------------------------
Questar Corp. 11,900 428,400
------------
5,465,150
- ----------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.5% GTE Corp. 25,300 1,065,763
------------
Total Common Stocks (Cost $65,858,120) 77,655,297
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $221,729,222) 99.3% 235,625,198
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0 .7 1,771,142
------ ------------
NET ASSETS 100 .0% $237,396,340
====== ============
</TABLE>
1. 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.
2. Represents a security sold under Rule 144A,
which is exempt from registration under the
Securities Act of 1933, as amended. This
security has been determined to be liquid under
guidelines established by the Board of
Directors. These securities amount to
$1,357,457, or 0.57% of the Fund's net assets,
at October 31, 1996.
3. Non-income producing security.
See accompanying Notes to Financial Statements.
11 Oppenheimer Disciplined Allocation Fund
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES October 31, 1996
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (cost $221,729,222)--see accompanying statement $235,625,198
------------------------------------------------------------------------------------------------------
Cash 110,935
------------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 2,113,722
Investments sold 632,933
Shares of capital stock sold 141,735
------------
Total assets 238,624,523
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 900,187
Shares of capital stock redeemed 82,560
Shareholder reports 63,295
Transfer and shareholder servicing agent fees 53,762
Distribution and service plan fees 50,177
Directors' fees 30,614
Other 47,588
------------
Total liabilities 1,228,183
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $237,396,340
============
- ------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Par value of shares of capital stock $14,831
NET ASSETS ------------------------------------------------------------------------------------------------------
Additional paid-in capital 201,832,445
------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,524,191
------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 20,128,897
------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 13,895,976
------------
Net assets $237,396,340
============
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $233,289,068 and 14,577,178 shares of capital stock outstanding) $16 .00
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $16 .98
------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per
share (based on net assets of $3,919,201 and 242,457 shares
of capital stock outstanding) $16 .16
------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $188,071 and 11,803 shares of capital stock outstanding) $15 .93
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Disciplined Allocation Fund
<PAGE> 13
STATEMENT OF OPERATIONS For the Ten Months Ended October 31, 1996(1)
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME Interest $ 7,400,106
------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $348) 1,483,168
------------
Total income 8,883,274
===============================================================================================================================
EXPENSES Management fees--Note 4 1,197,253
------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 474,151
Class B 19,225
Class C 276
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 241,712
------------------------------------------------------------------------------------------------
Legal and auditing fees 62,507
------------------------------------------------------------------------------------------------
Custodian fees and expenses 49,857
------------------------------------------------------------------------------------------------
Shareholder reports 46,129
------------------------------------------------------------------------------------------------
Directors' fees and expenses--Note 1 30,614
------------------------------------------------------------------------------------------------
Accounting fees 12,500
------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 2,177
Class B 964
Class C 56
------------------------------------------------------------------------------------------------
Other 3,742
------------
Total expenses 2,141,163
===============================================================================================================================
NET INVESTMENT INCOME 6,742,111
===============================================================================================================================
REALIZED AND UNREALIZED GAIN Net realized gain on investments 20,224,060
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (12,786,272)
------------
Net realized and unrealized gain 7,437,788
===============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $14,179,899
===========
</TABLE>
1. The Fund changed its fiscal year end from
December 31 to October 31.
See accompanying Notes to Financial Statements.
13 Oppenheimer Disciplined Allocation Fund
<PAGE> 14
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED
TEN MONTHS ENDED DECEMBER 31,
OCTOBER 31, 1996(1) 1995
==================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 6,742,111 $ 8,004,370
---------------------------------------------------------------------------------------------------
Net realized gain 20,224,060 7,754,106
---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (12,786,272) 26,965,439
------------ ------------
Net increase in net assets resulting from operations 14,179,899 42,723,915
==================================================================================================================================
DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income:
TO SHAREHOLDERS Class A (5,234,654) (7,977,727)
Class B (50,540) (2,581)
Class C (1,461) --
---------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (786,458) (7,615,071)
Class B (8,614) (20,687)
Class C (45) --
==================================================================================================================================
CAPITAL STOCK Net increase in net assets resulting from
TRANSACTIONS capital stock transactions--Note 2:
Class A 7,182,619 13,085,898
Class B 3,182,132 651,526
Class C 184,182 --
==================================================================================================================================
NET ASSETS Total increase 18,647,060 40,845,273
---------------------------------------------------------------------------------------------------
Beginning of period 218,749,280 177,904,007
------------ ------------
End of period (including undistributed net investment income
of $1,524,191 and $68,633, respectively) $237,396,340 $218,749,280
============ ============
</TABLE>
1. The Fund changed its fiscal year end from
December 31 to October 31.
See accompanying Notes to Financial Statements.
14 Oppenheimer Disciplined Allocation Fund
<PAGE> 15
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
TEN MONTHS
ENDED
OCTOBER 31, YEAR ENDED DECEMBER 31,
1996(3) 1995 1994 1993 1992 1991
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.46 $13.44 $14.54 $13.81 $14.02 $11.94
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .46 .60 .55 .48 .50 .54
Net realized and unrealized
gain (loss) .49 2.59 (.86) 1.70 .86 2.79
-------- -------- ------- -------- -------- -------
Total income (loss) from
investment operations .95 3.19 (.31) 2.18 1.36 3.33
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.36) (.60) (.55) (.48) (.50) (.54)
Distributions from net realized gain (.05) (.57) (.24) (.97) (1.07) (.71)
-------- -------- -------- -------- -------- -------
Total dividends and distributions
to shareholders (.41) (1.17) (.79) (1.45) (1.57) (1.25)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.00 $15.46 $13.44 $14.54 $13.81 $14.02
======== ======== ======== ======== ======== =======
===========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 6.27% 23.95% (2.11)% 15.89% 9.90% 28.21%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $233,289 $218,099 $177,904 $171,205 $109,701 $86,455
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $228,203 $200,172 $187,655 $138,629 $96,016 $74,749
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.52%(5) 4.00% 3.80% 3.40% 3.61% 4.02%
Expenses 1.11%(5) 1.17% 0.96% 1.02% 1.11% 1.20%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 85.4% 55.2% 115.0% 155.2% 177.9% 122.4%
Average brokerage
commission rate(7) $0.0636 -- -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
--------------------------- --------
TEN MONTHS PERIOD PERIOD
ENDED ENDED ENDED
OCTOBER 31, DEC. 31, OCT. 31,
1996(3) 1995(2) 1996(1)
==================================================================================================
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.66 $15.48 $15.71
- --------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .31 .07 .30
Net realized and unrealized
gain (loss) .54 .70 .32
-------- -------- --------
Total income (loss) from
investment operations .85 .77 .62
- -------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.30) (.07) (.35)
Distributions from net realized gain (.05) (.52) (.05)
-------- -------- --------
Total dividends and distributions
to shareholders (.35) (.59) (.40)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $16.16 $15.66 $15.93
======== ======== ========
=================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 5.51% 4.93% 4.08%
=================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $3,919 $650 $188
- -------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,324 $375 $ 57
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.86%(5) 0.73%(5) 2.90%(5)
Expenses 1.85%(5) 1.92%(5) 1.87%(5)
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 85.4% 55.2% 85.4%
Average brokerage
commission rate(7) $0.0636 -- $0.0636
</TABLE>
1. For the period from May 1, 1996 (inception of
offering) to October 31, 1996.
2. For the period from October 1, 1995 (inception
of offering) to December 31, 1995.
3. The Fund changed its fiscal year end from
December 31 to October 31. On March 18, 1996,
OppenheimerFunds, Inc. became the investment adviser
to the Fund.
4. Assumes a hypothetical initial investment on the
business day before the first day of the fiscal
period (or inception of offering), with all
dividends and distributions reinvested in
additional shares on the reinvestment date, and
redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges
are not reflected in the total returns. Total
returns are not annualized for periods of less than
one full year.
5. Annualized.
6. The lesser of purchases or sales of portfolio
securities for a period, divided by the monthly
average of the market value of portfolio
securities owned during the period. Securities with
a maturity or expiration date at the time of
acquisition of one year or less are excluded from
the calculation. Purchases and sales of investment
securities (excluding short-term securities) for
the period ended October 31, 1996 were $166,027,550
and $159,855,450, 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.
15 Oppenheimer Disciplined Allocation Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. On August 15, 1996, the Board of
Directors elected to change the fiscal year end of the
Fund from December 31 to October 31. Accordingly, these
financial statements include information for the ten
month period from January 1, 1996 to October 31, 1996.
The Fund's investment objective is to seek high total
investment return (current income and capital
appreciation in the value of its shares). Until March
18, 1996, the Fund and the Company were named
Connecticut Mutual Total Return 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 18,
1996, OppenheimerFunds, Inc. (the Manager) became the
adviser of the Company. The Fund offers Class A, Class
B and Class C shares. Class A shares are sold with a
front-end sales charge. Class B and Class C shares may
be subject to a contingent deferred sales charge. All
three classes of shares have identical rights to
earnings, assets and voting privileges, except that
each class has its own distribution and/or service
plan, expenses directly attributable to a particular
class and exclusive voting rights with respect to
matters affecting a single class. Class B shares will
automatically convert to Class A shares six years after
the date of purchase. The following is a summary of
significant accounting policies consistently followed
by the Fund.
--------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued
at the close of the New York Stock Exchange on each
trading day. Listed and unlisted securities for which
such information is regularly reported are valued at
the last sale price of the day or, in the absence of
sales, at values based on the closing bid or the last
sale price on the prior trading day. Long-term and
short-term "non-money market" debt securities are
valued by a portfolio pricing service approved by the
Board of Directors. Such securities which cannot be
valued by the approved portfolio pricing service are
valued using dealer-supplied valuations provided the
Manager is satisfied that the firm rendering the quotes
is reliable and that the quotes reflect current market
value, or are valued under consistently applied
procedures established by the Board of Directors to
determine fair value in good faith. Short-term "money
market type" debt securities having a remaining
maturity of 60 days or less are valued at cost (or last
determined market value) adjusted for amortization
to maturity of any premium or discount.
--------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian
to take possession, to have legally segregated in the
Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as
collateral for repurchase agreements. The market value
of the underlying securities is required to be at least
102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of
the collateral declines, or if the seller enters an
insolvency proceeding, realization of the value
of the collateral by the Fund may be delayed or
limited.
--------------------------------------------------------
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.
16 Oppenheimer Disciplined Allocation Fund
<PAGE> 17
- --------------------------------------------------------------------------------
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
DIRECTORS' FEES AND EXPENSES. The Fund has adopted a
nonfunded retirement plan for the Fund's independent
directors. Benefits are based on years of service and
fees paid to each director during the years of service.
During the ten months ended October 31, 1996, a
provision of $22,420 was made for the Fund's
projected benefit obligations, resulting in an
accumulated liability of $22,420.
--------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply
with provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute all
of its taxable income, including any net realized gain
on investments not offset by loss carryovers, to
shareholders. Therefore, no federal income or
excise tax provision is required.
--------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are recorded on the
ex-dividend date.
--------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net
investment income (loss) and net realized gain (loss)
may differ for financial statement and tax purposes
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 (loss) was recorded by the Fund.
During the period ended October 31,
1996, the Fund adjusted the classification of net
investment income and capital gain (loss) to reflect
the differences between financial statement amounts and
distributions determined in accordance with income tax
regulations. During the period ended October 31, 1996,
amounts have been reclassified to reflect a decrease in
paid-in capital of $49,014, an increase in
accumulated net realized gain of $48,912 and an
increase in undistributed net investment income of
$102.
--------------------------------------------------------
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.
17 Oppenheimer Disciplined Allocation Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
2. SHARES OF
CAPITAL STOCK
The Fund has authorized 450 million of $0.001 par value
shares of capital stock. Transactions in shares of
capital stock were as follows:
<TABLE>
<CAPTION>
TEN MONTHS ENDED OCTOBER 31, 1996(2) YEAR ENDED DECEMBER 31, 1995(1)
------------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,232,163 $ 34,798,022 1,998,083 $29,691,366
Dividends and distributions
reinvested 380,285 5,902,477 1,003,774 15,305,644
Redeemed (2,143,354) (33,517,880) (2,126,335) (31,911,112)
---------- ------------ ----------- ------------
Net increase 469,094 $7,182,619 875,522 $ 13,085,898
========== ============ =========== ============
-------------------------------------------------------------------------------------------------------
Class B:
Sold 222,321 $3,523,228 40,033 $628,572
Dividends and distributions
reinvested 3,640 57,138 1,471 22,954
Redeemed (25,008) (398,234) -- --
---------- ------------ ----------- ------------
Net increase 200,953 $3,182,132 41,504 $651,526
========== ============ =========== ============
-------------------------------------------------------------------------------------------------------
Class C:
Sold 11,772 $183,684 -- $ --
Dividends and distributions
reinvested 95 1,489 -- --
Redeemed (64) (991) -- --
---------- ------------ ----------- ------------
Net increase 11,803 $184,182 -- $ --
========== ============ =========== ============
</TABLE>
1. For the year ended December 31, 1995 for Class A
shares and for the period from October 1, 1995
(inception of offering) to December 31, 1995 for Class
B shares.
2. For the ten months ended October 31, 1996 for Class
A and Class B shares and for the period from May 1,
1996 (inception of offering) to October 31, 1996 for
Class C shares. The Fund changed its fiscal year end
from December 31 to October 31.
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At October 31, 1996, net unrealized appreciation on
investments of $13,895,976 was composed of gross
appreciation of $15,320,901, and gross depreciation of
$1,424,925.
18 Oppenheimer Disciplined Allocation Fund
<PAGE> 19
================================================================================
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% on the first $300
million of average annual net assets, 0.50% of the next
$100 million and 0.45% of net assets in excess of $400
million. Prior to March 18, 1996, management fees were
paid to G.R. Phelps & Co. (the former Manager) at an
annual rate of 0.625% of the Fund's average net assets.
The Manager has agreed to reimburse the Fund if
aggregate expenses (with specified exceptions) exceed
the most stringent applicable regulatory limit on Fund
expenses.
For the period ended October 31, 1996,
commissions (sales charges paid by investors) on sales
of Class A shares totaled $703,460, of which $501,951
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 $93,675
and $1,236, of which $60,694 was paid to an affiliated
broker/dealer for Class B. During the period ended
October 31, 1996, OFDI received contingent deferred
sales charges of $12,848 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 period ended
October 31, 1996, OFDI paid $324,243 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 period ended October
31, 1996, OFDI paid $15,073 to an affiliated
broker/dealer as compensation for Class B personal
service and maintenance expenses. 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 October 31,
1996, OFDI had incurred unreimbursed expenses of
$59,091 for Class B and $2,436 for Class C.
19 Oppenheimer Disciplined Allocation Fund
<PAGE> 20
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders of Oppenheimer
Disciplined Allocation Fund:
We have audited the accompanying statements of
investments and assets and liabilities of Oppenheimer
Disciplined Allocation Fund (formerly Connecticut
Mutual Growth Account) as of October 31, 1996, and the
related statement of operations, the statement of
changes in net assets and the financial highlights for
the ten month period then ended. These financial
statements and financial highlights are the
responsibility of the Fund's management. Our
responsibility is to express an opinion on these
financial statements and financial highlights based on
our audit. The statement of changes in net assets for
the year ended December 31, 1995 and the financial
highlights for the five years ended December 31, 1995
were audited by other auditors whose report dated
February 9, 1996, expressed an unqualified opinion on
this information.
We conducted our audit in accordance
with generally accepted auditing standards. Those
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements and financial highlights are free of
material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures
included confirmation of securities owned as of October
31, 1996 by correspondence with the custodian and
brokers; and where confirmations were not received from
brokers, we performed other auditing procedures. An
audit also includes assessing the accounting principles
used and significant estimates made by management, as
well as evaluating the overall financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial
statements and financial highlights referred to above
present fairly, in all material respects, the financial
position of Oppenheimer Disciplined Allocation Fund as
of October 31, 1996, and the results of its operations,
the changes in its net assets, and the financial
highlights for the ten month period ended October 31,
1996, in conformity with generally accepted accounting
principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
November 21, 1996
20 Oppenheimer Disciplined Allocation Fund
<PAGE> 21
FEDERAL INCOME TAX INFORMATION (Unaudited)
- --------------------------------------------------------------------------------
In early 1997 shareholders will receive information
regarding all dividends and distributions paid to them
by the Fund during calendar year 1996. Regulations of
the U.S. Treasury Department require the Fund to report
this information to the Internal Revenue Service.
Dividends paid by the Fund during the
ten months ended October 31, 1996 which are not
designated as capital gain distributions should be
multiplied by 13.62% to arrive at the net amount
eligible for the corporate dividend-received deduction.
The foregoing information is presented
to assist shareholders in reporting distributions
received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations
which may affect your individual tax return and the
many variations in state and local tax regulations, we
recommend that you consult your tax adviser for
specific guidance.
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
Sidney M. Robbins, Director
Pauline Trigere, Director
Clayton K. Yeutter, Director
Peter M. Antos, Vice President
Robert C. Doll, Jr., Vice President
Stephen F. Libera, Vice President
Michael C. Strathearn, Vice President
Kenneth B. White, Vice President
Arthur J. Zimmer, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISER OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF State Street Bank and Trust Company
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- --------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer Disciplined 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, and 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 $55 billion under
OppenheimerFunds' management and that of our
affiliates.
At OppenheimerFunds we don't charge a fee to
exchange shares. And you can exchange shares easily
by mail or by 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>
STOCK FUNDS Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund2 Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Target Fund
- -----------------------------------------------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
- -----------------------------------------------------------------------------------------------------------------
BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
- -----------------------------------------------------------------------------------------------------------------
MUNICIPAL FUNDS California Municipal Fund3 Insured Municipal Fund
Florida Municipal Fund3 Intermediate Municipal Fund
New Jersey Municipal Fund3
New York Municipal Fund3 Rochester Division
Pennsylvania Municipal Fund3 Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
- -----------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS(4) Money Market Fund Cash Reserves
- -----------------------------------------------------------------------------------------------------------------
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.Effective 4/1/96, the Fund is closed to new
investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither
insured nor guaranteed by the U.S. government and
there can be no assurance that a money market fund
will be able to maintain a stable net asset value of
$1.00 per share.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights
reserved.
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
RA0205.001.1096 December 31, 1996
[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
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