<PAGE>
[GRAPHIC]
Annual Report October 31, 2000
Oppenheimer
Disciplined Value Fund
[LOGO OF OPPENHEIMER FUNDS]
<PAGE>
--------------------------------------------------------------------------------
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
We moved to reposition the Fund in light of our disciplined management approach,
based on fundamental and quantitative stock-selection models.
We increased the Fund's level of diversification by increasing the number of
stocks in the portfolio.
CONTENTS
1 President's Letter
3 An Interview with Your Fund's Managers
6 Fund Performance
12 Financial Statements
37 Independent Auditors' Report
38 Federal Income Tax Information
39 Officers and Directors
Average Annual
Total Returns*
For the 1-Year Period
Ended 10/31/00
Class A
Without With
Sales Chg. Sales Chg.
-----------------------------
-2.60% -8.21%
Class B
Without With
Sales Chg. Sales Chg.
-----------------------------
-3.28% -7.41%
Class C
Without With
Sales Chg. Sales Chg.
-----------------------------
-3.27% -4.09%
Class Y
-----------------------------
-2.42%
*See Notes on page 10 for further details.
<PAGE>
--------------------------------------------------------------------------------
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Disciplined Value Fund
Dear Shareholder,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace
of global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve--an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have begun to refocus on companies with strong business
fundamentals and justifiable valuations. Investors have also returned to
long-neglected, value-oriented companies.
1 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, health-care and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
November 21, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of the securities markets or any
particular fund. Specific discussion, as it applies to your Fund, is contained
in the pages that follow. Stocks and bonds have different types of investment
risks; stocks are subject to market volatility and bonds are subject to credit
and interest rate risks.
2 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
"We intend to maintain a balance of various sectors as we attempt to identify
the stocks best able to weather market volatility and participate in market
strength."
How would you characterize the Fund's performance during the fiscal year that
ended October 31, 2000?
A. The past 12 months saw a relatively difficult market environment,
particularly for the value-type holdings in which Oppenheimer Disciplined Value
Fund invests. However, the Fund performed relatively well compared to the broad
market, the S&P 500 Index, towards the latter portion of the reporting period.
While this report covers the performance of the Fund during the entire period
from November 1, 1999 through October 31, 2000, Charles Albers and Nikolaos
Monoyios became the Fund's managers on June 12, 2000.
What is the Fund's investment approach?
We employ a disciplined investment process that combines technical and
fundamental analyses. We evaluate both the historical and current macroeconomic
environment to help determine sector weightings. In addition, our research team
utilizes fundamental analysis to evaluate quality of management, legal or
accounting issues and external competitive standing.
How did your management approach affect the Fund's portfolio and performance?
Because of expected ongoing market volatility, we diversified the Fund's
holdings across several sectors. As a result we increased our weight in
technology stocks and more energy-sector stocks and reduced our holdings in the
financial and healthcare sectors. We also moved to increase the total number of
stocks held by the Fund, increasing diversification and reducing specific stock
risk.
3 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
Average Annual
Total Returns
For the Periods Ended 9/30/00/2/
Class A
1-Year 5-Year 10-Year
----------------------------------
-3.82% 8.54% 14.45%
Class B Since
1-Year 5-Year Inception
----------------------------------
-3.01% N/A 9.04%
Class C Since
1-Year 5-Year Inception
----------------------------------
0.47% N/A 7.54%
Class Y Since
1-Year 5-Year Inception
----------------------------------
2.28% N/A 7.48%
Within technology, our largest single sector, we invested primarily in
well-known industry leaders, such as Intel Corp., Oracle Corp., Sun
Microsystems, Inc., and Cisco Systems, Inc./1/ These stocks rose and fell along
with the choppy market for most technology stocks. However, our stock-selection
models led us to avoid some of the sector's poorest performers, including
several major, large-cap technology stocks that lost a significant percentage of
their value in the wake of disappointing earnings and other business problems.
Among energy stocks, our models led us to invest in large oil-services
companies, such as Exxon Mobil Corp., as well as a number of smaller offshore
drillers and exploration enterprises, most of which performed well in an
environment of rising energy prices./1/
What is your outlook for the coming months?
The outlook for interest rates and economic growth remains cloudy, with powerful
forces simultaneously pulling the market in different directions. Until
conditions become clearer, market volatility is likely to remain high. We will
continue to focus on large cap stocks in this environment. In addition we will
maintain a balance of various sectors as we attempt to identify the stocks best
able to weather market volatility and participate in market strength. Of course,
our in-depth analysis constantly monitors potentially changing stock data, and
we will adjust the portfolio accordingly.
Whatever the coming year brings, we remain committed to our disciplined
investment approach and that's why we believe Oppenheimer Disciplined Value Fund
remains a part of The Right Way to Invest.
1. See Statement of Investments for a complete list of investments as of October
31, 2000.
2. See notes on page 10 for further details.
4 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Sector Allocation/3/
[GRAPH]
. Technology 29.3%
Electronics 11.5
Computer
Software 6.0
Computer
Hardware 5.4
Communications
Equipment 5.1
Computer
Services 1.3
. Energy 13.7
. Capital Goods 12.9
. Financial 11.6
. Healthcare 9.6
. Consumer
Staples 8.2
. Consumer
Cyclicals 7.0
. Communication
Services 3.8
. Utilities 1.6
. Basic Materials 1.2
. Transportation 1.1
Top Ten Common Stock Holdings/4/
--------------------------------------------------------------------------------
General Electric Co. 4.1%
--------------------------------------------------------------------------------
Cisco Systems, Inc. 3.1
--------------------------------------------------------------------------------
Intel Corp. 3.0
--------------------------------------------------------------------------------
Exxon Mobil Corp. 2.9
--------------------------------------------------------------------------------
Citigroup, Inc. 2.5
--------------------------------------------------------------------------------
Kimberly-Clark Corp. 2.5
--------------------------------------------------------------------------------
Oracle Corp. 2.2
--------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 2.1
--------------------------------------------------------------------------------
Pfizer, Inc. 2.0
--------------------------------------------------------------------------------
Merck & Co., Inc. 2.0
Top Five Common Stock Industries/4/
--------------------------------------------------------------------------------
Electronics 10.7%
--------------------------------------------------------------------------------
Healthcare/Drugs 8.3
--------------------------------------------------------------------------------
Oil: Domestic 6.7
--------------------------------------------------------------------------------
Electrical Equipment 6.7
--------------------------------------------------------------------------------
Diversified Financial 5.8
3. Portfolio is subject to change. Percentages are as of October 31, 2000, and
are based on total market value of common stock.
4. Portfolio is subject to change. Percentages are as of October 31, 2000, and
are based on net assets.
5 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FUND PERFORMANCE
--------------------------------------------------------------------------------
How Has the Fund Performed?
Below is a discussion by OppenheimerFunds, Inc. of the Fund's performance during
its fiscal year ended October 31, 2000, followed by a graphical comparison of
the Fund's performance to an appropriate broad-based market index.
Management's discussion of performance. During the fiscal year that ended
October 31, 2000, the U.S. economy enjoyed strong growth. Market strength was
concentrated in growth-oriented stocks in late 1999 and early 2000, undermining
the performance of the Fund's largely value-oriented holdings. In mid-March
2000, concerns over rising interest rates caused technology stocks to fall
sharply and shifted the market's direction in favor of value-oriented stocks
until late May. Energy stocks performed well in response to rising oil and gas
prices during the period. Charles Albers and Nikolaos Monoyios assumed
management of the Fund in June 2000 and sought to diversify the portfolio among
a greater number of individual securities. As a result of these changes, the
Fund performed relatively well during the closing months of the period. The
Fund's portfolio holdings, allocations and strategies are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until October 31, 2000. In the case of Class A shares, performance is
measured over a 10-year period. In the case of Class B shares, performance is
measured from inception of the class on October 2, 1995. In the case of Class C
shares, performance is measured from inception of the class on May 1, 1996. In
the case of Class Y shares, performance is measured from inception of the class
on December 16, 1996. The Fund's performance reflects the deduction of the
maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B and Class C shares, and reinvestments of all
dividends and capital gains distributions.
6 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index, a broad-based index of equity securities widely regarded
as a general measure of the performance of the U.S. equity securities market.
Index performance reflects the reinvestment of dividends but does not consider
the effect of capital gains or transaction costs, and none of the data in the
graphs shows the effect of taxes. The Fund's performance reflects the effects of
Fund business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the securities in the index.
7 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FUND PERFORMANCE
--------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Disciplined Value Fund (Class A)
S&P 500 Index
[GRAPH]
Class A
Value of Investment
in Fund S&P 500
12/31/90 9,425 10,000
3/31/91 10,885 11,450
6/30/91 10,901 11,423
9/30/91 11,845 12,032
12/31/91 12,904 13,040
3/31/92 13,226 12,711
6/30/92 12,940 12,952
9/30/92 13,081 13,361
12/31/92 14,451 14,032
3/31/93 15,611 14,644
6/30/93 16,493 14,715
9/30/93 17,231 15,094
12/31/93 17,472 15,443
3/31/94 17,069 14,859
6/30/94 16,734 14,921
9/30/94 17,590 15,649
12/31/94 17,358 15,646
3/31/95 18,886 17,168
6/30/95 20,488 18,804
9/30/95 22,230 20,298
12/31/95 23,676 21,519
3/31/96 24,804 22,674
6/30/96 25,116 23,690
9/30/96 25,814 24,422
10/31/96 26,378 25,096
1/31/97 29,183 28,108
4/30/97 29,197 28,787
7/31/97 34,453 34,444
10/31/97 33,659 33,151
1/31/98 34,145 35,669
4/30/98 38,463 40,609
7/31/98 36,110 41,093
10/31/98 34,414 40,448
1/31/99 38,254 47,266
4/30/99 38,564 49,473
7/31/99 37,909 49,395
10/31/99 35,652 50,828
1/31/2000 33,543 52,153
4/30/2000 36,108 54,480
7/31/2000 35,314 53,823
10/31/2000 34,724 53,918
Average Annual Total Return of Class A Shares of the Fund at 10/31/00/2/
1-Year -8.21% 5-Year 8.35% 10-Year 14.17%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Disciplined Value Fund (Class B)
S&P 500 Index
[GRAPH]
Class B
Fund S&P 500
10/2/95 10,000 10,000
12/31/95 10,804 10,602
3/31/96 11,294 11,170
6/30/96 11,399 11,671
9/30/96 11,683 12,032
10/31/96 11,930 12,364
1/31/97 13,169 13,848
4/30/97 13,143 14,183
7/31/97 15,487 16,969
10/31/97 15,105 16,332
1/31/98 15,287 17,573
4/30/98 17,188 20,007
7/31/98 16,114 20,245
10/31/98 15,327 19,928
1/31/99 17,002 23,286
4/30/99 17,109 24,374
7/31/99 16,780 24,335
10/31/99 15,754 25,041
1/31/2000 14,798 25,694
4/30/2000 15,901 26,841
7/31/2000 15,515 26,517
10/31/2000 15,142 26,563
Average Annual Total Return of Class B Shares of the Fund at 10/31/00/2/
1-Year -7.41% 5-Year 8.67% Life 8.51%
1. The Fund changed its fiscal year-end from 12/31 to 10/31.
2. See page 10 for further details.
8 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Disciplined Value Fund (Class C)
S&P 500 Index
[GRAPH]
Class C
Fund S&P 500
5/1/96 10,000 10,000
6/30/96 10,061 10,297
9/30/96 10,314 10,615
10/31/96 10,535 10,908
1/31/97 11,629 12,217
4/30/97 11,606 12,512
7/31/97 13,676 14,971
10/31/97 13,341 14,409
1/31/98 13,508 15,503
4/30/98 15,186 17,650
7/31/98 14,233 17,861
10/31/98 13,537 17,581
1/31/99 15,012 20,544
4/30/99 15,115 21,503
7/31/99 14,821 21,469
10/31/99 13,918 22,092
1/31/2000 13,070 22,668
4/30/2000 14,049 23,679
7/31/2000 13,712 23,394
10/31/2000 13,463 23,435
Average Annual Total Return of Class C Shares of the Fund at 10/31/00/2/
1-Year -4.09% Life 6.83%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Disciplined Value Fund (Class Y)
S&P 500 Index
[GRAPH]
Class Y
Fund S&P 500
12/16/96 10,000 10,000
1/31/97 10,699 10,624
4/30/97 10,693 10,881
7/31/97 12,637 13,019
10/31/97 12,362 12,531
1/31/98 12,552 13,482
4/30/98 14,145 15,349
7/31/98 13,292 15,532
10/31/98 12,687 15,289
1/31/99 14,111 17,866
4/30/99 14,238 18,700
7/31/99 13,984 18,670
10/31/99 13,170 19,212
1/31/2000 12,392 19,713
4/30/2000 13,355 20,593
7/31/2000 13,062 20,344
10/31/2000 12,851 20,380
Average Annual Total Return of Class Y Shares of the Fund at 10/31/00/2/
1-Year -2.42% Life 6.69%
The performance information for the S&P 500 Index in the graphs begins on
12/31/90 for Class A, 9/30/95 for Class B, 4/30/96 for Class C, and 12/31/96 for
Class Y.
Past performance is not predictive of future performance. Graphs are not drawn
to same scale.
9 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES
--------------------------------------------------------------------------------
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. Because of ongoing
market volatility, the Fund's performance has been subject to substantial
short-term fluctuations and current performance may be less than the results
shown. For quarterly updates on the Fund's performance, please contact your
financial advisor, call us at 1.800.525.7048 or visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares of the Fund were first publicly offered on 9/16/85. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
Class B shares of the Fund were first publicly offered on 10/2/95. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year), 2% (5-year) and 1% (since inception). Class B
shares are subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 5/1/96. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 12/16/96. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Financials
11 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--93.3%
--------------------------------------------------------------------------------
Basic Materials--1.2%
--------------------------------------------------------------------------------
Chemicals--0.5%
Dow Chemical Co. 40,800 $ 1,249,500
--------------------------------------------------------------------------------
Metals--0.4%
Alcoa, Inc. 33,400 958,162
--------------------------------------------------------------------------------
Paper--0.3%
Rayonier, Inc. 4,500 158,344
--------------------------------------------------------------------------------
Weyerhaeuser Co. 12,800 600,800
-----------
759,144
--------------------------------------------------------------------------------
Capital Goods--12.0%
--------------------------------------------------------------------------------
Aerospace/Defense--0.9%
Boeing Co. 31,700 2,149,656
--------------------------------------------------------------------------------
General Dynamics Corp. 2,000 143,125
-----------
2,292,781
--------------------------------------------------------------------------------
Electrical Equipment--6.7%
AVX Corp. 37,800 1,082,025
--------------------------------------------------------------------------------
Emerson Electric Co. 5,700 418,594
--------------------------------------------------------------------------------
General Electric Co. 190,000 10,414,375
--------------------------------------------------------------------------------
Integrated Device Technology, Inc./1/ 57,200 3,221,075
--------------------------------------------------------------------------------
Molex, Inc., Cl. A 10,200 400,987
--------------------------------------------------------------------------------
Powerwave Technologies, Inc./1/ 1,200 57,750
--------------------------------------------------------------------------------
Symbol Technologies, Inc. 1,200 54,525
--------------------------------------------------------------------------------
Vishay Intertechnology, Inc./1/ 50,550 1,516,500
-----------
17,165,831
--------------------------------------------------------------------------------
Industrial Services--0.5%
Miller (Herman), Inc. 52,000 1,358,500
--------------------------------------------------------------------------------
Robert Half International, Inc./1/ 1,000 30,500
-----------
1,389,000
--------------------------------------------------------------------------------
Manufacturing--3.9%
Ball Corp. 32,400 1,138,050
--------------------------------------------------------------------------------
Cooper Industries, Inc. 23,300 891,225
--------------------------------------------------------------------------------
Dover Corp. 72,900 3,093,694
--------------------------------------------------------------------------------
Honeywell International, Inc. 10,000 538,125
--------------------------------------------------------------------------------
Microchip Technology, Inc./1/ 1,400 44,275
--------------------------------------------------------------------------------
Millipore Corp. 700 36,750
--------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 21,200 2,048,450
--------------------------------------------------------------------------------
Plexus Corp./1/ 500 31,531
12 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Manufacturing Continued
Tektronix, Inc. 2,000 $ 142,500
--------------------------------------------------------------------------------
Textron, Inc. 32,500 1,639,219
--------------------------------------------------------------------------------
United Technologies Corp. 3,900 272,269
--------------
9,876,088
--------------------------------------------------------------------------------
Communication Services--3.6%
--------------------------------------------------------------------------------
Telecommunications: Long Distance--1.1%
Broadcom Corp., Cl. A/1/ 2,400 533,700
--------------------------------------------------------------------------------
Broadwing, Inc./1/ 2,500 70,625
--------------------------------------------------------------------------------
Brocade Communications Systems, Inc./1/ 2,400 545,700
--------------------------------------------------------------------------------
Comverse Technology, Inc./1/ 3,800 424,650
--------------------------------------------------------------------------------
Exodus Communications, Inc./1/ 2,500 83,906
--------------------------------------------------------------------------------
Qwest Communications International, Inc./1/ 19,600 953,050
--------------------------------------------------------------------------------
Time Warner Telecom, Inc., Cl. A/1/ 700 41,737
--------------------------------------------------------------------------------
Tollgrade Communications, Inc./1/ 600 57,450
--------------
2,710,818
--------------------------------------------------------------------------------
Telephone Utilities--2.1%
BellSouth Corp. 76,100 3,676,581
--------------------------------------------------------------------------------
SBC Communications, Inc. 29,000 1,672,937
--------------
5,349,518
--------------------------------------------------------------------------------
Telecommunications: Wireless--0.4%
Amdocs Ltd./1/ 4,700 304,619
--------------------------------------------------------------------------------
AT&T Wireless Group/1/ 19,800 493,762
--------------------------------------------------------------------------------
Phone.com, Inc./1/ 1,300 120,331
--------------
918,712
--------------------------------------------------------------------------------
Consumer Cyclicals--6.5%
--------------------------------------------------------------------------------
Autos & Housing--0.6%
Fortune Brands, Inc. 4,100 120,694
--------------------------------------------------------------------------------
Stanley Works (The) 52,600 1,400,475
--------------------------------------------------------------------------------
Vulcan Materials Co. 2,800 117,600
--------------
1,638,769
--------------------------------------------------------------------------------
Consumer Services--0.0%
TMP Worldwide, Inc./1/ 400 27,844
--------------------------------------------------------------------------------
Leisure & Entertainment--0.3%
MGM Mirage, Inc. 11,000 380,187
--------------------------------------------------------------------------------
Park Place Entertainment Corp./1/ 34,600 441,150
--------------------------------------------------------------------------------
Starwood Hotels & Resorts Worldwide, Inc. 1,100 32,587
--------------
853,924
13 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
-------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Media--2.1%
Deluxe Corp. 1,700 $ 38,356
--------------------------------------------------------------------------------
Gannett Co., Inc. 18,400 1,067,200
--------------------------------------------------------------------------------
Harte-Hanks, Inc. 44,200 977,925
--------------------------------------------------------------------------------
Interpublic Group of Cos., Inc. 5,400 231,862
--------------------------------------------------------------------------------
Knight-Ridder, Inc. 35,100 1,763,775
--------------------------------------------------------------------------------
New York Times Co., Cl. A 13,000 477,750
--------------------------------------------------------------------------------
Readers Digest Assn., Inc. (The), Cl. A 14,300 524,631
--------------------------------------------------------------------------------
USA Networks, Inc./1/ 20,400 413,100
--------------
5,494,599
--------------------------------------------------------------------------------
Retail: General--2.9%
Kohl's Corp./1/ 3,600 195,075
--------------------------------------------------------------------------------
May Department Stores Co. 11,800 309,750
--------------------------------------------------------------------------------
Sears Roebuck & Co. 48,000 1,427,040
--------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 119,000 5,399,625
--------------
7,331,490
--------------------------------------------------------------------------------
Retail: Specialty--0.5%
Best Buy Co., Inc./1/ 12,400 622,325
--------------------------------------------------------------------------------
BJ's Wholesale Club, Inc./1/ 2,500 82,344
--------------------------------------------------------------------------------
CDW Computer Centers, Inc./1/ 600 38,662
--------------------------------------------------------------------------------
Intimate Brands, Inc., Cl. A 1,500 35,812
--------------------------------------------------------------------------------
Tiffany & Co. 12,000 512,250
--------------
1,291,393
Textile/Apparel & Home Furnishings--0.1%
Liz Claiborne, Inc. 4,000 170,000
--------------------------------------------------------------------------------
Consumer Staples--7.6%
--------------------------------------------------------------------------------
Beverages--1.9%
Adolph Coors Co., Cl. B 15,100 961,681
--------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 50,200 2,296,650
--------------------------------------------------------------------------------
Coca-Cola Co. (The) 8,800 531,300
--------------------------------------------------------------------------------
PepsiCo, Inc. 22,000 1,065,625
--------------
4,855,256
Broadcasting--0.2%
AT&T Corp./Liberty Media Corp., Cl. A/1/ 27,100 487,800
--------------------------------------------------------------------------------
Gemstar-TV Guide International, Inc./1/ 1,800 123,412
--------------
611,212
14 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Entertainment--0.8%
Brinker International, Inc./1/ 3,800 $ 149,150
--------------------------------------------------------------------------------
Darden Restaurants, Inc. 48,800 1,098,000
--------------------------------------------------------------------------------
Viacom, Inc., Cl. B/1/ 15,000 853,125
--------------------------------------------------------------------------------
Wendy's International, Inc. 4,000 87,000
--------------
2,187,275
--------------------------------------------------------------------------------
Food--1.3%
ConAgra Foods, Inc. 25,842 552,373
--------------------------------------------------------------------------------
Heinz (H.J.) Co. 6,300 264,206
--------------------------------------------------------------------------------
Keebler Foods Co. 35,600 1,441,800
--------------------------------------------------------------------------------
Quaker Oats Co. 1,700 138,656
--------------------------------------------------------------------------------
Sysco Corp. 16,100 840,219
--------------------------------------------------------------------------------
Wrigley William Jr. Co. 400 31,675
--------------
3,268,929
--------------------------------------------------------------------------------
Food & Drug Retailers--0.4%
Kroger Co./1/ 3,700 83,481
--------------------------------------------------------------------------------
Safeway, Inc./1/ 5,000 273,437
--------------------------------------------------------------------------------
Walgreen Co. 13,400 611,375
--------------
968,293
--------------------------------------------------------------------------------
Household Goods--3.0%
Clorox Co. (The) 3,000 133,875
--------------------------------------------------------------------------------
Colgate-Palmolive Co. 17,000 998,920
--------------------------------------------------------------------------------
Estee Lauder Cos., Inc. (The), Cl. A 1,300 60,369
--------------------------------------------------------------------------------
Kimberly-Clark Corp. 97,000 6,402,000
--------------
7,595,164
--------------------------------------------------------------------------------
Energy--12.7%
--------------------------------------------------------------------------------
Energy Services--2.8%
Coastal Corp. 4,100 309,294
--------------------------------------------------------------------------------
ENSCO International, Inc. 57,800 1,921,850
--------------------------------------------------------------------------------
Global Marine, Inc./1/ 93,100 2,467,150
--------------------------------------------------------------------------------
Noble Drilling Corp./1/ 30,000 1,246,875
--------------------------------------------------------------------------------
Santa Fe International Corp. 30,000 1,095,000
--------------------------------------------------------------------------------
Schlumberger Ltd. 2,200 167,475
--------------------------------------------------------------------------------
Smith International, Inc./1/ 1,100 77,550
--------------
7,285,194
15 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Oil: Domestic--6.7%
Amerada Hess Corp. 6,600 $ 409,200
--------------------------------------------------------------------------------
Apache Corp. 20,800 1,150,500
--------------------------------------------------------------------------------
Chevron Corp. 25,600 2,102,400
--------------------------------------------------------------------------------
Devon Energy Corp. 17,000 856,800
--------------------------------------------------------------------------------
EOG Resources, Inc. 30,000 1,181,250
--------------------------------------------------------------------------------
Exxon Mobil Corp. 83,218 7,422,005
--------------------------------------------------------------------------------
Murphy Oil Corp. 23,600 1,367,325
--------------------------------------------------------------------------------
Occidental Petroleum Corp. 13,300 264,337
--------------------------------------------------------------------------------
Phillips Petroleum Co. 12,800 790,400
--------------------------------------------------------------------------------
Texaco, Inc. 21,500 1,269,844
--------------------------------------------------------------------------------
Tosco Corp. 10,000 286,250
--------------------------------------------------------------------------------
Unocal Corp. 1,900 64,837
--------------------------------------------------------------------------------
Valero Energy Corp. 900 29,756
--------------
17,194,904
Oil: International--3.2%
Anderson Exploration Ltd./1/ 65,000 1,191,645
--------------------------------------------------------------------------------
Berkley Petroleum Corp./1/ 75,000 392,850
--------------------------------------------------------------------------------
Canadian Natural Resources Ltd./1/ 48,000 1,414,260
--------------------------------------------------------------------------------
Husky Energy, Inc./1/ 21,425 169,038
--------------------------------------------------------------------------------
Paramount Resources Ltd. 40,000 412,493
--------------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 62,600 3,716,875
--------------------------------------------------------------------------------
Talisman Energy, Inc./1/ 30,000 941,858
--------------
8,239,019
--------------------------------------------------------------------------------
Financial--10.8%
--------------------------------------------------------------------------------
Banks--1.5%
Bank of America Corp. 800 38,450
--------------------------------------------------------------------------------
Bank of New York Co., Inc. (The) 2,300 132,394
--------------------------------------------------------------------------------
BB&T Corp. 4,500 143,437
--------------------------------------------------------------------------------
Firstar Corp. 7,400 145,687
--------------------------------------------------------------------------------
FleetBoston Financial Corp. 14,100 535,800
--------------------------------------------------------------------------------
Mellon Financial Corp. 3,100 149,575
--------------------------------------------------------------------------------
State Street Corp. 3,100 386,694
--------------------------------------------------------------------------------
SunTrust Banks, Inc. 1,100 53,694
--------------------------------------------------------------------------------
Wachovia Corp. 15,600 842,400
--------------------------------------------------------------------------------
Wells Fargo Co. 30,100 1,394,006
--------------
3,822,137
16 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Diversified Financial--5.8%
Bear Stearns Cos., Inc. 1,600 $ 97,000
--------------------------------------------------------------------------------
Citigroup, Inc. 122,666 6,455,298
--------------------------------------------------------------------------------
Convergys Corp./1/ 3,100 135,044
--------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 7,700 768,556
--------------------------------------------------------------------------------
Household International, Inc. 4,200 211,312
--------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 13,800 890,100
--------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 19,400 1,358,000
--------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 26,800 2,152,375
--------------------------------------------------------------------------------
PaineWebber Group, Inc. 15,500 1,104,375
--------------------------------------------------------------------------------
PMI Group, Inc. (The) 16,000 1,182,000
--------------------------------------------------------------------------------
Schwab (Charles) Corp. 14,100 495,262
---------------
14,849,322
--------------------------------------------------------------------------------
Insurance--3.5%
AFLAC, Inc. 6,700 489,519
--------------------------------------------------------------------------------
Allmerica Financial Corp. 5,400 340,537
--------------------------------------------------------------------------------
American International Group, Inc. 45,600 4,468,800
--------------------------------------------------------------------------------
AXA Financial, Inc. 29,700 1,605,656
--------------------------------------------------------------------------------
Chubb Corp. 3,400 287,087
--------------------------------------------------------------------------------
Cigna Corp. 10,600 1,292,670
--------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 4,000 297,750
--------------------------------------------------------------------------------
MetLife, Inc./1/ 3,900 107,737
--------------------------------------------------------------------------------
Radian Group, Inc. 700 49,612
---------------
8,939,368
--------------------------------------------------------------------------------
Healthcare--9.0%
--------------------------------------------------------------------------------
Healthcare/Drugs--8.3%
Alpharma, Inc., Cl. A 1,500 58,219
--------------------------------------------------------------------------------
American Home Products Corp. 15,700 996,950
--------------------------------------------------------------------------------
Chiron Corp./1/ 6,300 272,869
--------------------------------------------------------------------------------
Forest Laboratories, Inc./1/ 1,000 132,500
--------------------------------------------------------------------------------
Genentech, Inc./1/ 12,800 1,056,000
--------------------------------------------------------------------------------
HCA-Healthcare Corp. (The) 102,000 4,073,625
--------------------------------------------------------------------------------
Immunex Corp./1/ 2,100 89,381
--------------------------------------------------------------------------------
Incyte Pharmaceuticals, Inc./1/ 1,100 40,288
--------------------------------------------------------------------------------
IVAX Corp./1/ 7,000 304,500
--------------------------------------------------------------------------------
Lilly (Eli) & Co. 11,400 1,018,875
--------------------------------------------------------------------------------
Merck & Co., Inc. 55,500 4,991,531
--------------------------------------------------------------------------------
Pfizer, Inc. 116,800 5,044,300
--------------------------------------------------------------------------------
Pharmacia Corp. 25,300 1,391,500
--------------------------------------------------------------------------------
Schering-Plough Corp. 16,000 827,000
---------------
17 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Healthcare/Drugs Continued
Sepracor, Inc./1/ 1,200 $ 81,750
--------------------------------------------------------------------------------
Trigon Healthcare, Inc./1/ 6,000 430,125
--------------------------------------------------------------------------------
UnitedHealth Group, Inc. 3,400 371,875
--------------
21,181,288
--------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.7%
Cardinal Health, Inc. 3,400 322,150
--------------------------------------------------------------------------------
Medtronic, Inc. 12,000 651,750
--------------------------------------------------------------------------------
Oxford Health Plans, Inc./1/ 1,100 37,125
--------------------------------------------------------------------------------
PE Corp.-PE Biosystems Group 3,900 456,300
--------------------------------------------------------------------------------
Techne Corp./1/ 200 22,550
--------------------------------------------------------------------------------
Tenet Healthcare Corp. 5,800 228,013
--------------
1,717,888
--------------------------------------------------------------------------------
Technology--27.3%
--------------------------------------------------------------------------------
Computer Hardware--5.0%
3Com Corp./1/ 7,500 133,125
--------------------------------------------------------------------------------
Cabletron Systems, Inc./1/ 2,500 67,813
--------------------------------------------------------------------------------
Compaq Computer Corp. 20,500 623,405
--------------------------------------------------------------------------------
Dell Computer Corp./1/ 34,200 1,008,900
--------------------------------------------------------------------------------
Digital Lightwave, Inc./1/ 600 30,413
--------------------------------------------------------------------------------
EMC Corp./1/ 10,800 961,875
--------------------------------------------------------------------------------
Gateway, Inc./1/ 7,900 407,719
--------------------------------------------------------------------------------
Hewlett-Packard Co. 49,800 2,312,588
--------------------------------------------------------------------------------
International Business Machines Corp. 2,300 226,550
--------------------------------------------------------------------------------
Juniper Networks, Inc./1/ 2,500 487,500
--------------------------------------------------------------------------------
Network Appliance, Inc./1/ 10,700 1,273,300
--------------------------------------------------------------------------------
Redback Networks, Inc./1/ 3,800 404,463
--------------------------------------------------------------------------------
Sun Microsystems, Inc./1/ 44,500 4,933,938
--------------
12,871,589
--------------------------------------------------------------------------------
Computer Services--1.2%
Automatic Data Processing, Inc. 19,700 1,286,656
--------------------------------------------------------------------------------
Commerce One, Inc./1/ 3,000 192,563
--------------------------------------------------------------------------------
First Data Corp. 18,700 937,338
--------------------------------------------------------------------------------
Fiserv, Inc./1/ 1,300 68,169
--------------------------------------------------------------------------------
Paychex, Inc. 6,000 340,125
--------------------------------------------------------------------------------
Sycamore Networks, Inc./1/ 2,600 164,450
--------------
2,989,301
18 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Computer Software--5.6%
Ariba, Inc./1/ 2,300 $ 290,663
--------------------------------------------------------------------------------
BEA Systems, Inc./1/ 4,500 322,875
--------------------------------------------------------------------------------
BroadVision, Inc./1/ 2,500 74,375
--------------------------------------------------------------------------------
Cadence Design Systems, Inc./1/ 3,800 97,613
--------------------------------------------------------------------------------
Computer Associates International, Inc. 8,300 264,563
--------------------------------------------------------------------------------
Computer Sciences Corp. 3,300 207,900
--------------------------------------------------------------------------------
i2 Technologies, Inc./1/ 3,400 578,000
--------------------------------------------------------------------------------
Internet Security Systems, Inc./1/ 300 26,475
--------------------------------------------------------------------------------
Interwoven, Inc./1/ 600 60,450
--------------------------------------------------------------------------------
Macromedia, Inc./1/ 700 53,944
--------------------------------------------------------------------------------
Mercury Interactive Corp./1/ 600 66,600
--------------------------------------------------------------------------------
Micromuse, Inc./1/ 300 50,906
--------------------------------------------------------------------------------
Microsoft Corp./1/ 11,100 764,513
--------------------------------------------------------------------------------
Nuance Communications, Inc./1/ 300 25,875
--------------------------------------------------------------------------------
Oracle Corp./1/ 167,000 5,511,000
--------------------------------------------------------------------------------
Portal Software, Inc./1/ 3,400 119,638
--------------------------------------------------------------------------------
Rational Software Corp./1/ 5,200 310,375
--------------------------------------------------------------------------------
Siebel Systems, Inc./1/ 10,900 1,143,819
--------------------------------------------------------------------------------
Software.com, Inc./1/ 1,000 149,000
--------------------------------------------------------------------------------
Symantec Corp./1/ 32,700 1,277,344
--------------------------------------------------------------------------------
TIBCO Software, Inc./1/ 3,300 207,900
--------------------------------------------------------------------------------
VeriSign, Inc./1/ 6,700 884,400
--------------------------------------------------------------------------------
Veritas Software Corp./1/ 10,000 1,410,156
--------------------------------------------------------------------------------
Yahoo!, Inc./1/ 6,100 357,613
---------------
14,255,997
--------------------------------------------------------------------------------
Communications Equipment--4.8%
ADC Telecommunications, Inc./1/ 83,400 1,782,675
--------------------------------------------------------------------------------
Advanced Fibre Communications, Inc./1/ 2,200 71,638
--------------------------------------------------------------------------------
CIENA Corp./1/ 6,800 714,850
--------------------------------------------------------------------------------
Cisco Systems, Inc./1/ 145,000 7,811,875
--------------------------------------------------------------------------------
Extreme Networks, Inc./1/ 1,700 140,994
--------------------------------------------------------------------------------
L-3 Communications Holdings, Inc./1/ 15,600 1,028,625
--------------------------------------------------------------------------------
Newport Corp. 1,100 125,623
--------------------------------------------------------------------------------
Tellabs, Inc./1/ 11,500 574,281
---------------
12,250,561
19 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Electronics--10.7%
Altera Corp./1/ 14,400 $ 589,500
--------------------------------------------------------------------------------
Analog Devices, Inc./1/ 20,000 1,300,000
--------------------------------------------------------------------------------
Applied Materials, Inc./1/ 29,300 1,556,563
--------------------------------------------------------------------------------
Atmel Corp./1/ 28,800 430,200
--------------------------------------------------------------------------------
Avnet, Inc. 1,000 26,875
--------------------------------------------------------------------------------
Dallas Semiconductor Corp. 83,200 3,296,800
--------------------------------------------------------------------------------
GlobeSpan, Inc./1/ 1,800 138,488
--------------------------------------------------------------------------------
Intel Corp. 169,800 7,641,000
--------------------------------------------------------------------------------
International Rectifier Corp./1/ 4,300 191,888
--------------------------------------------------------------------------------
KLA Instruments Corp./1/ 10,000 338,125
--------------------------------------------------------------------------------
Kulicke & Soffa Industries, Inc./1/ 79,400 1,166,188
--------------------------------------------------------------------------------
Lattice Semiconductor Corp./1/ 13,200 385,275
--------------------------------------------------------------------------------
Linear Technology Corp. 12,300 794,119
--------------------------------------------------------------------------------
Maxim Integrated Products, Inc./1/ 9,300 616,706
--------------------------------------------------------------------------------
Micrel, Inc./1/ 600 27,150
--------------------------------------------------------------------------------
Micron Technology, Inc./1/ 15,100 524,725
--------------------------------------------------------------------------------
Motorola, Inc. 25,200 628,425
--------------------------------------------------------------------------------
National Semiconductor Corp./1/ 15,900 413,400
--------------------------------------------------------------------------------
Novellus Systems, Inc./1/ 45,300 1,854,469
--------------------------------------------------------------------------------
NVIDIA Corp./1/ 1,200 74,569
--------------------------------------------------------------------------------
PMC-Sierra, Inc./1/ 4,100 694,950
--------------------------------------------------------------------------------
Power-One, Inc./1/ 1,700 120,594
--------------------------------------------------------------------------------
SDL, Inc./1/ 3,800 985,150
--------------------------------------------------------------------------------
Semtech Corp./1/ 1,000 32,250
--------------------------------------------------------------------------------
Texas Instruments, Inc. 16,500 809,531
--------------------------------------------------------------------------------
Thermo Electron Corp./1/ 1,000 29,000
--------------------------------------------------------------------------------
TriQuint Semiconductor, Inc./1/ 2,100 80,456
--------------------------------------------------------------------------------
Virata Corp./1/ 1,700 32,938
--------------------------------------------------------------------------------
Xilinx, Inc./1/ 18,000 1,303,875
--------------------------------------------------------------------------------
Zebra Technologies Corp., Cl. A/1/ 32,100 1,406,381
--------------
27,489,590
--------------------------------------------------------------------------------
Transportation--1.0%
--------------------------------------------------------------------------------
Air Transportation--0.8%
AMR Corp./1/ 1,000 32,750
--------------------------------------------------------------------------------
Delta Air Lines, Inc. 40,100 1,894,725
--------------------------------------------------------------------------------
Southwest Airlines Co. 4,000 114,000
--------------
2,041,475
20 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Railroads & Truckers--0.2%
Union Pacific Corp. 11,600 $ 543,750
--------------------------------------------------------------------------------
Shipping--0.0%
United Parcel Service, Inc., Cl. B 1,600 97,200
--------------------------------------------------------------------------------
Utilities--1.6%
--------------------------------------------------------------------------------
Electric Utilities--0.9%
Conectiv, Inc. 66,800 1,198,225
--------------------------------------------------------------------------------
PPL Corp. 700 28,831
--------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 19,500 809,250
--------------------------------------------------------------------------------
Reliant Energy, Inc. 900 37,181
--------------------------------------------------------------------------------
TXU Corp. 3,100 114,894
--------------
2,188,381
--------------------------------------------------------------------------------
Gas Utilities--0.7%
Enron Corp. 17,600 1,444,300
--------------------------------------------------------------------------------
NICOR, Inc. 1,100 38,844
--------------------------------------------------------------------------------
Sempra Energy 5,400 111,713
--------------------------------------------------------------------------------
Williams Cos., Inc. (The) 3,500 146,344
--------------
1,741,201
--------------
Total Common Stocks (Cost $238,140,912) 238,661,867
Principal
Amount
================================================================================
Short-Term Notes--2.3%
Federal Home Loan Bank, 6.45% 11/1/00
(Cost $5,800,000) $5,800,000 5,800,000
================================================================================
Repurchase Agreements--4.6%
Repurchase agreement with Zion First
National Bank, 6.51%, dated 10/31/00, to be
repurchased at $11,847,142 on 11/1/00,
collateralized by U.S. Treasury Nts., 4.25%-7.50%,
2/28/01-2/15/10, with a value of 12,097,299
(Cost $11,845,000) 11,845,000 11,845,000
--------------------------------------------------------------------------------
Total Investments, at Value (Cost $255,785,912) 100.2% 256,306,867
--------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.2) (604,934)
----------------------
Net Assets 100.0% $255,701,933
======================
Footnote to Statement of Investments
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
--------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value (cost $255,785,912)--
see accompanying statement $256,306,867
--------------------------------------------------------------------------------
Cash 18,260
--------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 114,344
Interest and dividends 82,745
Other 4,409
-------------
Total assets 256,526,625
================================================================================
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 261,213
Shareholder reports 172,196
Transfer and shareholder servicing agent fees 162,412
Investments purchased 98,713
Distribution and service plan fees 55,700
Directors' compensation 55,597
Other 18,861
-------------
Total liabilities 824,692
================================================================================
Net Assets $255,701,933
=============
================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 15,014
--------------------------------------------------------------------------------
Additional paid-in capital 263,113,423
--------------------------------------------------------------------------------
Undistributed net investment income 1,774,733
--------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (9,722,192)
--------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 520,955
-------------
Net Assets $255,701,933
=============
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $181,565,704 and 10,641,582 shares of capital stock outstanding) $17.06
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $18.10
--------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$64,286,612 and 3,784,501 shares of capital stock outstanding) $16.99
--------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $9,848,627 and 587,442 shares of capital stock outstanding) $16.77
--------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of 990 and 58 shares of capital stock
outstanding) $17.07
See accompanying Notes to Financial Statements.
22 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended October 31, 2000
--------------------------------------------------------------------------------
================================================================================
Investment Income
Dividends (net of foreign withholding taxes of $28,476) $ 5,474,889
--------------------------------------------------------------------------------
Interest 1,439,632
--------------
Total income 6,914,521
================================================================================
Expenses
Management fees 2,235,663
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 567,773
Class B 793,888
Class C 119,942
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 590,887
Class B 202,220
Class C 30,257
Class Y 150,206
--------------------------------------------------------------------------------
Shareholder reports 238,045
--------------------------------------------------------------------------------
Custodian fees and expenses 15,197
--------------------------------------------------------------------------------
Accounting service fees 15,000
--------------------------------------------------------------------------------
Other 23,353
--------------
Total expenses 4,982,431
Less expenses paid indirectly (7,298)
--------------
Net expenses 4,975,133
================================================================================
Net Investment Income 1,939,388
================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (7,502,956)
Closing of futures contracts 39,130
Foreign currency transactions 192
--------------
Net realized loss (7,463,634)
--------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments (5,319,713)
Translation of assets and liabilities denominated
in foreign currencies (159,977)
--------------
Net change (5,479,690)
--------------
Net realized and unrealized loss (12,943,324)
================================================================================
Net Decrease in Net Assets Resulting from Operations $ (11,003,936)
==============
See accompanying Notes to Financial Statements.
23 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended October 31, 2000 1999
============================================================================================================
<S> <C> <C>
Operations
Net investment income $ 1,939,388 $ 3,794,053
------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (7,463,634) 81,509,276
------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (5,479,690) (52,160,614)
-----------------------------
Net increase (decrease) in net assets resulting from operations (11,003,936) 33,142,715
============================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (2,996,645) (3,566,570)
Class B -- (140,802)
Class C -- (19,197)
Class Y (789,687) (1,509,823)
------------------------------------------------------------------------------------------------------------
Distributions from net realized gain: Class A (55,606,463) (18,351,792)
Class B (14,307,425) (5,096,352)
Class C (2,028,859) (726,632)
Class Y (11,069,300) (5,276,985)
============================================================================================================
Capital Stock Transactions
Net decrease in net assets resulting from capital stock transactions:
Class A (142,579,205) (61,766,766)
Class B (21,169,838) (19,938,207)
Class C (2,279,249) (3,572,259)
Class Y (66,839,216) (61,262,769)
============================================================================================================
Net Assets
Total decrease (330,669,823) (148,085,439)
------------------------------------------------------------------------------------------------------------
Beginning of period 586,371,756 734,457,195
-----------------------------
End of period (including undistributed net investment
income of $1,774,733 and $3,669,521, respectively) $255,701,933 $586,371,756
=============================
</TABLE>
See accompanying Notes to Financial Statements.
24 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Year Ended October 31, 2000 1999 1998 1997 1996/1/
============================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 20.69 $ 20.91 $ 23.31 $ 19.65 $ 17.84
----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .16 .17 .16 .232 .15
Net realized and unrealized gain (loss) (.65) .64 .32 4.912 1.88
----------------------------------------------------------------
Total income (loss) from investment operations (.49) .81 .48 5.14 2.03
----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.16) (.17) (.12) (.07) (.10)
Distributions from net realized gain (2.98) (.86) (2.76) (1.41) (.12)
----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (3.14) (1.03) (2.88) (1.48) (.22)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.06 $ 20.69 $ 20.91 $ 23.31 $ 19.65
================================================================
============================================================================================================================
Total Return, at Net Asset Value/3/ (2.60)% 3.60% 2.24% 27.60% 11.41%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $181,566 $392,483 $456,264 $371,810 $180,784
----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $234,840 $448,884 $442,138 $234,314 $135,940
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment income 0.66% 0.68% 0.84% 1.05% 1.01%
Expenses 1.17% 1.02% 0.98%/5/ 1.07%/5/ 1.13%/5/
----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 86% 135% 106% 103% 74%
</TABLE>
1. For the 10 months ended October 31, 1996. The Fund changed its fiscal
year-end from December 31 to October 31. On March 18, 1996, OppenheimerFunds,
Inc. became the investment advisor to the Fund.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
25 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Year Ended October 31, 2000 1999 1998 1997 1996/1/
===================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 20.58 $ 20.83 $ 23.32 $ 19.77 $ 18.08
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (.05) (.03) .02 .09/2/ .05
Net realized and unrealized gain (loss) (.56) .66 .30 4.91/2/ 1.83
----------------------------------------------------------------------------
Total income (loss) from
investment operations (.61) .63 .32 5.00 1.88
-------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- (.02) (.05) (.04) (.07)
Distributions from net realized gain (2.98) (.86) (2.76) (1.41) (.12)
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.98) (.88) (2.81) (1.45) (.19)
--------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.99 $ 20.58 $ 20.83 $ 23.32 $ 19.77
=============================================================================
====================================================================================================================
Total Return, at Net Asset Value/3/ (3.28)% 2.79% 1.47% 26.61% 10.43%
====================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $ 64,287 $ 102,736 $ 123,260 $ 83,291 $ 5,854
--------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 79,239 $ 123,616 $ 110,240 $ 30,019 $ 2,903
--------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment income (loss) (0.14)% (0.08)% 0.08% 0.22% 0.22%
Expenses 1.93% 1.77% 1.73%/5/ 1.84%/5/ 1.88%/5/
--------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 86% 135% 106% 103% 74%
</TABLE>
1. For the 10 months ended October 31, 1996. The Fund changed its fiscal
year-end from December 31 to October 31. On March 18, 1996, Oppenheimer Funds,
Inc. became the investment advisor to the Fund.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
26 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
Class C Year Ended October 31, 2000 1999 1998 1997 1996/1/
===================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 20.35 $ 20.60 $ 23.07 $ 19.57 $ 18.79
-------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.04) (.02) .01 .10/2/ .06
Net realized and unrealized gain (loss) (.56) .65 .31 4.85/2/ .94
-------------------------------------------------------------------------
Total income (loss) from
investment operations (.60) .63 .32 4.95 1.00
-------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- (.02) (.03) (.04) (.10)
Distributions from net realized gain (2.98) (.86) (2.76) (1.41) (.12)
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.98) (.88) (2.79) (1.45) (.22)
-------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.77 $ 20.35 $ 20.60 $ 23.07 $ 19.57
=========================================================================
===================================================================================================================
Total Return, at Net Asset Value/3/ (3.27)% 2.82% 1.47% 26.64% 5.35%
===================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 9,849 $ 14,582 $ 18,204 $ 10,243 $ 715
-------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 11,975 $ 17,746 $ 15,355 $ 4,477 $ 342
-------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment income (loss) (0.14)% (0.07)% 0.06% 0.17% 0.04%
Expenses 1.93% 1.77% 1.73%/5/ 1.86%/5/ 1.87%/5/
-------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 86% 135% 106% 103% 74%
</TABLE>
1. For the period from May 1, 1996 (inception of offering) to October 31, 1996.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
27 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class Y Year Ended October 31, 2000 1999 1998 19971
==========================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 20.72 $ 20.97 $ 23.34 $ 20.31
----------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .17/2/ .22 .22 .31/2/
Net realized and unrealized gain (loss) (.63)/2/ .64 .34 4.20/2/
-----------------------------------------------------------
Total income (loss) from
investment operations (.46) .86 .56 4.51
----------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.21) (.25) (.17) (.07)
Distributions from net realized gain (2.98) (.86) (2.76) (1.41)
-----------------------------------------------------------
Total dividends and/or distributions
to shareholders (3.19) (1.11) (2.93) (1.48)
----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.07 $ 20.72 $ 20.97 $ 23.34
============================================================
==========================================================================================================
Total Return, at Net Asset Value/3/ (2.42)% 3.81% 2.63% 23.62%
==========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 1 $ 76,571 $ 136,729 $ 90,994
----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 48,714 $ 95,765 $ 118,010 $ 51,775
----------------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment income 1.06% 0.90% 1.19% 1.21%
Expenses 0.97% 0.76% 0.62%/5/ 0.78%/5/
----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 86% 135% 106% 103%
</TABLE>
1. For the period from December 16, 1996 (inception of offering) to October 31,
1997.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
28 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Disciplined Value Fund (the Fund), a series of Oppenheimer Series
Fund, Inc. (the Company), is registered under the Investment Company Act of
1940, as amended, as an open-end management investment company. The Fund's
investment objective is to seek long-term growth of capital by investing
primarily in common stocks with low price-earnings ratios and
better-than-anticipated earnings. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B and Class C shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has its
own expenses directly attributable to that class and exclusive voting rights
with respect to matters affecting that class. Classes A, B and C shares have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. 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.
--------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Directors, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
29 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent Board of Directors. Benefits are based on years of
service and fees paid to each director during the years of service. During the
year ended October 31, 2000, a credit of $41,122 was made for the Fund's
projected benefit obligations and payments of $3,499 were made to retired
directors, resulting in an accumulated liability of $47,377 as of October 31,
2000.
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors to elect to defer receipt of all or
a portion of annual compensation they are entitled to receive from the Fund.
Under the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Board of Directors in shares of one
or more Oppenheimer funds selected by the director. The amount paid to the Board
of Directors under the plan will be determined based upon the performance of the
selected funds. Deferral of directors' fees under the plan will not affect the
net assets of the Fund, and will not materially affect the Fund's assets,
liabilities or net investment income per share.
--------------------------------------------------------------------------------
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.
As of October 31, 2000, the Fund had available for federal income tax purposes
an unused capital loss carryover as follows:
Expiring
-------------------------
2008 $9,239,162
30 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
--------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes primarily because of the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for tax purposes. The
character of dividends and distributions made during the fiscal year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended October 31, 2000, amounts have been reclassified to reflect a
decrease in undistributed net investment income of $47,844. Accumulated net
realized loss on investments was decreased by the same amount. Net assets of the
Fund were unaffected by the reclassifications.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend date. Realized gains
and losses on investments and unrealized appreciation and depreciation are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
31 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
2. Shares of Capital Stock
The Fund has authorized 500 million of value shares $0.001 par of capital stock
of each class. Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended October 31, 2000 Year Ended October 31, 1999
Shares Amount Shares Amount
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 2,615,441 $46,627,592 2,041,059 $ 44,361,122
Dividends and/or
distributions reinvested 2,212,164 38,403,153 978,744 21,317,077
Redeemed (13,157,255) (227,609,950) (5,865,300) (127,444,965)
-----------------------------------------------------------
Net decrease (8,329,650) $(142,579,205) (2,845,497) $ (61,766,766)
===========================================================
------------------------------------------------------------------------------------------
Class B
Sold 917,803 $16,207,594 1,150,666 $ 24,923,987
Dividends and/or
distributions reinvested 782,867 13,622,443 231,740 5,051,920
Redeemed (2,907,576) (50,999,875) (2,308,042) (49,914,114)
-----------------------------------------------------------
Net decrease (1,206,906) $(21,169,838) (925,636) $ (19,938,207)
===========================================================
------------------------------------------------------------------------------------------
Class C
Sold 360,348 $6,294,284 205,937 $ 4,440,151
Dividends and/or
distributions reinvested 110,349 1,894,720 33,679 725,793
Redeemed (599,882) (10,468,253) (406,670) (8,738,203)
-----------------------------------------------------------
Net decrease (129,185) $(2,279,249) (167,054) $ (3,572,259)
===========================================================
------------------------------------------------------------------------------------------
Class Y
Sold 1,046,725 $17,938,175 1,062,529 $ 22,726,365
Dividends and/or
distributions reinvested 683,909 11,858,987 311,751 6,786,808
Redeemed (5,426,667) (96,636,378) (4,199,901) (90,775,942)
-----------------------------------------------------------
Net decrease (3,696,033) $(66,839,216) (2,825,621) $ (61,262,769)
===========================================================
==========================================================================================
</TABLE>
3. Purchases and Sales of Securities
The aggregate cost of proceeds from sales of than short- purchases securities,
and other term obligations, for the year$ 304,254,884 ended October and 31,
2000, were $615,616,465, respectively.
As of October 31, 2000, unrealized(depreciation of securities appreciation of
on cost for federal income tax purposes of $256,225,969 was:
Gross unrealized appreciation $26,873,615
Gross unrealized depreciation (26,792,717)
-----------
Net unrealized appreciation $ 80,898
===========
32 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
================================================================================
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides the for a fee of
0.625% of the first $300 million of average annual net assets of the Fund, 0.50%
of the next $100 million and 0.45% of average annual net assets in excess of
$400 million. The Fund's management fee for the year ended October 31, 2000, was
an annualized rate of before any 0.60%, waiver by the Manager if applicable.
--------------------------------------------------------------------------------
Accounting Fees. The Manager acts as the accounting agent for the Fund at an
annual fee of $15,000, plus out-of- pocket costs and expenses reasonably
incurred.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer funds.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor/1/ Distributor/1/ Distributor/1/
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
October 31, 2000 $370,966 $174,293 $54,817 $372,763 $28,351
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Retained by Distributor
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
October 31, 2000 $8,126 $272,883 $3,330
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
33 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
4. Fees and Other Transactions with Affiliates Continued
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares purchased. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the year ended October 31, 2000, payments
under the Class A plan totaled $567,773 prior to Manager waiver if applicable,
all of which were paid by the Distributor to recipients, and included $279,692
paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
--------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Directors may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended October 31, 2000,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payment Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $793,88 $631,743 $2,474,648 3.85%
Class C Plan 119,942 28,498 253,858 2.58
</TABLE>
34 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
================================================================================
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and to seek to protect against adverse
exchange rate fluctuation. Risks to the Fund include the potential inability of
the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
forward transaction. Realized gains and losses are reported with all other
foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
if applicable.
================================================================================
6. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices "financial futures" or debt securities "interest rate
futures" in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually buying fixed
income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
35 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
7. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended or at October
31, 2000.
36 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
================================================================================
The Board of Directors and Shareholders of
Oppenheimer Disciplined Value Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Disciplined Value Fund as of
October 31, 2000, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended and the financial highlights for each of the years in
the four-year period then ended and the 10-month period ended October 31, 1996.
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 audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. 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, 2000, 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
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Disciplined Value Fund as of October 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the four-year period then ended and the 10-month period
ended October 31, 1996, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Denver, Colorado
November 21, 2000
37 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Dividends and distributions of $3.1457, $2.9849, $2.9849 and $3.1978 per
share were paid to Class A, Class B, Class C and Class Y shareholders,
respectively, on December 9, 1999, of which $2.3961 was designated as a "capital
gain distribution" for federal income tax purposes. Whether received in stock or
in cash, the capital gain distribution should be treated by shareholders as a
gain from the sale of capital assets held for more than one year (long-term
capital gains).
Dividends paid by the Fund during the fiscal year ended October 31, 2000,
which are not designated as capital gain distributions should be multiplied by
100% 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 advisor for specific guidance.
38 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER DISCIPLINED VALUE FUND
--------------------------------------------------------------------------------
A Series of Oppenheimer Series Fund, Inc.
================================================================================
Officers and Directors Leon Levy, Chairman of the Board of Directors
Donald W. Spiro, Vice Chairman of the Board
of Directors
Bridget A. Macaskill, Director and President
Robert G. Galli,Director
Phillip A. Griffiths, Director
Benjamin Lipstein,Director
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan,Director
Russell S. Reynolds, Jr., Director
Clayton K. Yeutter,Director
Charles Albers, Vice President
Alan Gilston,Vice President
John Kowalik, Vice President
Christopher Leavy,Vice President
Nikolaos Monoyios,Vice President
Andrew J. Donohue,Secretary
Brian W. Wixted,Treasurer
Robert J. Bishop,Assistant Treasurer
Scott T. Farrar,Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds,Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors KPMG LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
For more complete information about Oppenheimer
Disciplined Value Fund, please refer to the
Prospectus. To obtain a copy, call your
financial advisor, or call OppenheimerFunds
Distributor, Inc. at 1.800.525.7048, or visit
the OppenheimerFunds Internet website at
www.oppenheimerfunds.com.
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 the possible loss of the principal
amount invested.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc., Two World
Trade Center, New York, NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All
rights reserved.
39 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==============================================================================================
<S> <C> <C>
Global Equity
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
==============================================================================================
Equity
Stock Stock & Bond
Emerging Technologies Fund Main Street(R)Growth & Income Fund
Enterprise Fund Quest Opportunity Value Fund
Discovery Fund Total Return Fund
Main Street(R)Small Cap Fund Quest Balanced Value Fund
Quest Small Cap Fund1 Capital Income Fund
MidCap Fund Multiple Strategies Fund
Main Street(R)Opportunity Fund Disciplined Allocation Fund
Growth Fund Convertible Securities Fund
Capital Appreciation Fund
Large Cap Growth Fund Specialty
Disciplined Value Fund Real Asset Fund(R)
Quest Capital Value Fund Gold & Special Minerals Fund
Quest Value Fund
Trinity Growth Fund
Trinity Core Fund
Trinity Value Fund
==============================================================================================
Fixed Income
Taxable Municipal
International Bond Fund California Municipal Fund3
World Bond Fund/2/ Main Street(R)California Municipal
High Yield Fund Fund2,3
Champion Income Fund Florida Municipal Fund3
Strategic Income Fund New Jersey Municipal Fund3
Bond Fund New York Municipal Fund3
Senior Floating Rate Fund Pennsylvania Municipal Fund3
U.S. Government Trust Municipal Bond Fund
Limited-Term Government Fund Insured Municipal Fund2
Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
==============================================================================================
Money Market/4/
Money Market Fund Cash Reserves
</TABLE>
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on
5/19/00.
2. The Fund's Board has proposed to reorganize the Fund into another Oppenheimer
fund subject to shareholder approval.
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
40 OPPENHEIMER DISCIPLINED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
INFORMATION AND SERVICES
--------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
--------------------------------------------------------------------------------
Internet
24-hr access to account information and transactions/1/
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
--------------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
--------------------------------------------------------------------------------
Ticker Symbols Class A: CGRWX Class B: CGRBX Class C: CGRCX Class Y: CGRYX
--------------------------------------------------------------------------------
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[LOGO OF OPPENHEIMER FUNDS]
RA0375.001.1000 December 30, 2000
