<PAGE>
OPPENHEIMER TOTAL RETURN FUND, INC.
Semiannual Report June 30, 1995
[Photo]
"We want our money to grow because we have some long-term GOALS, but we also
have needs today."
[LOGO] OPPENHEIMERFUNDS
<PAGE>
This Fund is for people who want GROWTH over time. And because the Fund also
seeks to provide INCOME, investors can look out for today's needs too.
[Sidebar] NEWS
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BEAT THE AVERAGE
- ---------------------------------
Cumulative Total Return for
the 10-Year Period Ended 6/30/95:
Oppenheimer Total Return Fund
Class A (at net asset value)(1)
- ---------------------------------
288.11%
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Lipper Growth & Income Funds Average(3)
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227.71%
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THE FUND'S CLASS A SHARES ARE RANKED **** AMONG 1,234 EQUITY FUNDS FOR THE 3-
AND 5-YEAR PERIODS ENDED 6/30/95.(4)
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HOW YOUR FUND IS MANAGED
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Oppenheimer Total Return Fund offers long-term investors the opportunity for
high total return. This strategy offers the potential for long-term growth
plus the added advantage of income by investing in the stocks of companies
offering the potential for long-term growth as well as income-producing
stocks and bonds.
This disciplined approach helps to reduce risk through
diversification and enables the Fund to take advantage of a wide variety of
market conditions.
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PERFORMANCE
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Total return at net asset value for the 6 months ended 6/30/95 was 14.79% for
Class A shares and 14.17% for Class B shares.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5- and 10-year periods ended 6/30/95 were 9.16%,
11.52% and 13.85%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 6/30/95 and since inception of the Class
on 5/1/93 were 9.74% and 7.02%, respectively.(2)
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OUTLOOK
- --------------------------------------------------------------------------------
"While we believe that the long-term trend of the market will continue to be
up, we don't make investments based nearly as much on our outlook for the
overall market as we do on finding investments that we believe will do well
regardless of conditions. And because we manage the Fund using a total
return approach--investment growth from capital appreciation plus income, the
income we collect can help to reduce the impact of short-term volatility."
Bruce Bartlett and Diane Sobin, Portfolio Managers
June 30, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on 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.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/94, 6/30/90
and 6/30/85, after deducting the current maximum initial sales charge of 5.75%.
Class B returns show results of hypothetical investments on 6/30/94 and 5/1/93
(inception of class), and the deduction of the applicable contingent deferred
sales charge of 5% (1-year) and 3% (since inception). For Class Y shares, the
average annual total returns for the 1-year period ended 6/30/95 and since
inception of the Class on 6/1/94 were 16.02% and 10.35%, respectively. An
explanation of the different performance calculations is in the Fund's
prospectus.
3. Source: Lipper Analytical Services. The Lipper total return average for the
10-year period was for 113 growth and income funds. The average is shown for
comparative purposes only. Oppenheimer Total Return Fund, Inc. is characterized
by Lipper as a growth and income fund. Lipper performance does not take sales
charges into consideration.
4. Source: MORNINGSTAR MUTUAL FUNDS, 6/30/95. Morningstar, Inc., an
independent mutual fund monitoring service, produces proprietary monthly
rankings of funds in broad investment categories (equity, taxable bond,
tax-exempt bond, or "hybrid") based on risk-adjusted investment returns,
after considering sales charges and expenses. Investment return measures a
fund's (or class's) 3-, 5- and 10-year (depending on the inception of the
class or fund) average annual total returns in excess of 90-day U.S. Treasury
bill returns. Risk measures a fund's (or class's) performance below 90-day
U.S. Treasury bill returns. Risk and returns are combined to produce star
rankings, reflecting performance relative to the average fund in a fund's
category. Five stars is the "highest" ranking (top 10%), 4 stars is "above
average" and 1 star is the "lowest" (bottom 1%). The 4-star current ranking
is a weighted average of the 3- and 5-year rankings for the class, which were
3 and 4 stars, respectively, weighted 40%/60%, respectively. There were 1,234
and 906 funds ranked in those respective periods. Rankings are subject to
change. The Fund's Class A, B and Y shares have the same portfolio.
2 Oppenheimer Total Return Fund, Inc.
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[Photo]
James C. Swain
Chairman
Oppenheimer Total Return Fund
[Photo]
Jon S. Fossel
President
Oppenheimer Total Return Fund
Dear OppenheimerFunds Shareholder,
In the first six months of 1995, the stock and bond markets have improved
significantly. The Federal Reserve's seven interest rate hikes between February
1994 and February 1995 appear to have achieved their intended effect, as the
rate of economic growth has slowed throughout the year. This economic outlook
of sustainable, healthy growth with low inflation, falling interest rates, and
talk of deficit reduction inspired investors' confidence in the stock market.
As a result, the Dow Jones Industrial Average hit record highs repeatedly in
the first half of the year.
The stock market has been strong for other reasons as well. Overall,
corporate America has done an excellent job of restructuring, and has become
more productive and profitable. Combined with continued investment in
technology and increased competitiveness abroad as a result of a weaker
dollar, these events resulted in spectacular first quarter earnings reports.
While the market's rise this year has been dramatic, it has caused our
equity investment team to become slightly more cautious. Because the market
has already registered significant gains this year, the stock market is
starting to see signs of short-term volatility, and your Fund's managers want
to protect the gains the Fund has made.
Still, the market's expansion has been fueled by underlying fundamental
strengths. So, while we are cautious, we believe it has room to continue.
Congress's continuing emphasis on deficit reduction, plus Washington's
commitment to correcting our trade imbalance, should benefit the market--in
addition to attracting foreign investments to U.S. stocks, creating even
greater demand and possibly pushing their prices up further.
Should the economy slow more than anticipated, however, we would expect
to see earnings slow eventually, which could cause the market to hesitate. In
this event, smaller companies and international stocks could begin to
outperform the large, globally-oriented companies that have led the market so
far this year. However, until your Fund's managers see signs of either
increased inflation or recession on the horizon, they remain constructive on
the market in general and will view any volatility in the near term as a time
to search for buying opportunities.
At OppenheimerFunds, our approach to the stock market is to invest with a
long-term view, to participate in upswings while remaining prudent, and,
finally, to know when to become more defensive to protect the gains we have
made.
Your portfolio manager discusses the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, and we
look forward to helping you continue to reach your investment goals in the
future.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
July 24, 1995
3 Oppenheimer Total Return Fund
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Q + A [Photo]
An interview with your Fund's manager.
Q What is your OUTLOOK for the Fund?
THE STOCK MARKET HAS BEEN MUCH STRONGER OVER THE PAST SIX MONTHS THAN IT WAS
IN THE SECOND HALF OF 1994. WHAT FACTORS HAVE CONTRIBUTED TO THIS CHANGE?
While a market rebound this year wasn't too surprising after last year's
difficult environment, the market's outstanding performance has been
somewhat surprising for most professional investors. Going into the year,
the economy was strong, however interest rates were still relatively high.
So while we expected the market to do better than in 1994, the rally in
the bond market turned a good environment for stocks into a period of
outstanding performance.
LOOKING TOWARD A POTENTIALLY SLOWER GROWTH ECONOMY, HOW ARE YOU POSITIONING
THE FUND?
With the prospects of the domestic economy slowing, one area where we think
we can find growth is in companies that have a significant percentage of
earnings overseas. McDonald's, Duracell and Colgate are examples of
companies we're holding in this area.(1)
Another area we believe will do well is companies that are continuing to
restructure. Cost cutting has made U.S. companies more competitive, and
international competitiveness has been bolstered by the relative weakness of
the dollar. In this category, we own W.R. Grace and Kimberly Clark.
A third area we like--and one that has contributed to our current strong
performance--is technology. Computing power continues to become more
pervasive, so although technology stocks have been doing well since last
year, we believe companies like Intel, Motorola and Hewlett Packard continue
to make sense on a long-term basis.
And finally, energy companies are compelling as
1. The Fund's portfolio is subject to change.
4 Oppenheimer Total Return Fund, Inc.
<PAGE>
FACING PAGE
Top left: Diane Sobin, Portfolio Manager
Top right: The equity trading desk
Bottom: Mark Binning, Securities Coordinator, consults with Lawrence
Apolito, VP Equity Trading
THIS PAGE
Top: Robert Doll,
Portfolio Manager
Bottom: Bruce Bartlett,
Portfolio Manager
A The Fund is well positioned to achieve EXCELLENT long-term performance.
worldwide demand for oil and natural gas continues to grow, especially in the
emerging markets. And consolidation is continuing throughout the sector, so
we're buying companies like Unocal, Dresser Industries and Western Atlas that
have a lot of leverage in both operating margins and earnings, and therefore
have the potential to do well.
WHAT PARAMETERS DO YOU USE IN MAKING BUY AND SELL DECISIONS WITHIN THESE
SECTORS?
Our approach focuses on trying to identify companies that have strong
earnings growth, quality management, and the ability to sustain growth in the
future--beyond that, we're looking for stocks that are selling at attractive
valuations.
Because we generally own stocks in which we feel there is a catalyst that
will continue to propel prices up, if that catalyst changes, we will sell.
Additionally, we sell winners when they reach what we believe are peak
prices, or we may sell a stock if we find a more attractive investment
alternative.
IN A PERIOD OF LOWER INTEREST RATES, WHAT TYPES OF SECURITIES ARE CURRENTLY
PROVIDING INCOME TO THE FUND?
We typically employ a combination of securities, including high dividend yield
stocks, government bonds and convertible securities, shifted in favor of
whichever area seems the most attractive in terms of both income and
appreciation potential. Currently electric utilities are very attractive on a
yield basis relative to long-term bonds.
[Photo]
[Photo]
Though convertibles hurt our performance last year, they've done very well
for us so far in '95. The significant change in the market has been the
decline in interest rates. Lower interest rates coupled with volatility in
stocks are good for convertibles--in this environment, they allow you to
participate in the upside when stocks go up, but they also offer downside
protection when stocks go down.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We are very optimistic that the Fund is well positioned to achieve excellent
long-term performance regardless of the level of the current market. And,
because we manage the Fund using a total return approach, the income we
collect can help to reduce the impact of short-term volatility. //
5 Oppenheimer Total Return Fund, Inc.
<PAGE>
Financials
Contents
Statement of Investments 7
Statement of Assets & Liabilities 13
Statement of Operations 14
Statements of Changes in Net Assets 15
Financial Highlights 16
Notes to Financial Statements 18
6 Oppenheimer Total Return Fund, Inc.
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STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
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FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
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U.S. Government Obligations--1.2%
=================================================================================================================================
<S> <C> <C> <C>
TREASURY--1.2% U.S. Treasury Nts.:
7.50%, 12/31/96 $ 6,670,000 $ 6,832,581
7.75%, 11/30/99 10,000,000 10,675,000
7.75%, 12/31/99 5,000,000 5,339,065
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Total U.S. Government Obligations (Cost $21,657,214) 22,846,646
=================================================================================================================================
Convertible Corporate Bonds and Notes--4.9%
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ADT Operations, Inc., Zero Coupon Cv. Sub. Nts., 7/6/10 10,000,000 3,925,000
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Air Express International Corp., 6% Cv. Sub. Debs., 1/15/03 3,000,000 3,375,000
------------------------------------------------------------------------------------------------
AMR Corp., 6.125% Cv. Sub. Debs., 11/1/24 20,000,000 20,900,000
------------------------------------------------------------------------------------------------
Box Energy Corp., 8.25% Cv. Sub. Nts., 12/1/02 2,500,000 2,331,250
------------------------------------------------------------------------------------------------
Danka Business Systems PLC, 6.75% Cv. Sub. Nts., 4/1/02(1) 4,500,000 4,747,500
------------------------------------------------------------------------------------------------
Delta Airlines, Inc., 3.23% Cv. Sub. Nts., 6/15/03 4,000,000 3,850,000
------------------------------------------------------------------------------------------------
Employee Benefit Plans, Inc., 6.75% Cv. Sub. Debs., 7/31/06 2,000,000 1,932,500
------------------------------------------------------------------------------------------------
First Financial Management Corp., 5% Cv. Debs., 12/15/99 5,000,000 6,675,000
------------------------------------------------------------------------------------------------
Food Lion, Inc., 5% Cv. Sub. Debs., 6/1/03(1) 4,000,000 3,820,000
------------------------------------------------------------------------------------------------
Healthsouth Rehabilitation Corp., 5% Cv. Sub. Debs., 4/1/01 4,000,000 4,465,000
------------------------------------------------------------------------------------------------
Integrated Device Technology, Inc., 5.50% Cv. Sub. Nts., 6/1/02 5,000,000 5,312,500
------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.50% Cv. Sub. Debs., 8/15/00(1) 3,000,000 2,493,750
------------------------------------------------------------------------------------------------
Thermo Electron Corp., 5% Cv. Debs., 4/15/01 5,000,000 6,775,000
------------------------------------------------------------------------------------------------
Time Warner, Inc., 8.75% Cv. Sr. Nts., 1/10/15 12,000,000 12,480,000
------------------------------------------------------------------------------------------------
U.S. Cellular Corp., Zero Coupon Cv. Liquid Yield Option Nts., 6/15/15 16,250,000 5,078,125
------------------------------------------------------------------------------------------------
WMX Technologies, Inc., 2% Cv. Sub. Nts., 1/24/05 5,000,000 4,212,500
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Total Convertible Corporate Bonds and Notes (Cost $82,114,497) 92,373,125
SHARES
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COMMON STOCKS--78.8%
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BASIC MATERIALS--4.1%
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CHEMICALS--1.8% Ethyl Corp. 700,000 7,437,500
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Morton International, Inc. 360,000 10,530,000
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PPG Industries, Inc. 200,000 8,600,000
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W.R. Grace & Co. 135,000 8,285,625
----------
34,853,125
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METALS--2.0% Aluminum Co. of America 300,500 15,062,562
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Cyprus Amax Minerals Co. 450,000 12,825,000
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Material Sciences Corp.(2) 530,000 10,798,750
----------
38,686,312
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PAPER--0.3% Louisiana-Pacific Corp. 200,000 5,250,000
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7 Oppenheimer Total Return Fund, Inc.
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STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
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MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
CONSUMER CYCLICALS--11.4%
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<S> <C> <C> <C>
LEISURE & ENTERTAINMENT--4.2% Brunswick Corp. 450,000 $ 7,650,000
------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.(2) 400,000 14,100,000
------------------------------------------------------------------------------------------------
Eastman Kodak Co. 350,000 21,218,750
------------------------------------------------------------------------------------------------
McDonald's Corp. 575,000 22,496,875
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Walt Disney Co. 250,000 13,906,250
----------
79,371,875
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RETAIL: GENERAL--1.5% Federated Department Stores, Inc.(2) 445,000 11,458,750
------------------------------------------------------------------------------------------------
Kohl's Corp.(2) 100,000 4,562,500
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May Department Stores Co. 300,000 12,487,500
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U.S. Industries, Inc.(2) 50,000 681,250
-----------
29,190,000
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Retail: Specialty--5.7% Alco Standard Corp. 250,000 19,968,750
------------------------------------------------------------------------------------------------
Gap, Inc. (The) 150,000 5,231,250
------------------------------------------------------------------------------------------------
Gymboree Corp.(2) 150,000 4,359,375
------------------------------------------------------------------------------------------------
Intelligent Electronics, Inc. 1,100,000 14,987,500
------------------------------------------------------------------------------------------------
Nike, Inc., Cl. B 175,000 14,700,000
------------------------------------------------------------------------------------------------
Rite Aid Corp. 875,000 22,421,875
------------------------------------------------------------------------------------------------
Tandy Corp. 335,000 17,378,125
------------------------------------------------------------------------------------------------
The Limited, Inc. 400,000 8,800,000
----------
107,846,875
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CONSUMER NON-CYCLICALS--7.8%
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HEALTHCARE/DRUGS--3.3% Abbott Laboratories 350,000 14,175,000
------------------------------------------------------------------------------------------------
Amgen, Inc.(2) 85,000 6,837,188
------------------------------------------------------------------------------------------------
Astra AB Free, Series A 350,000 10,790,895
------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 225,000 15,328,125
------------------------------------------------------------------------------------------------
Lilly (Eli) & Co. 150,000 11,775,000
------------------------------------------------------------------------------------------------
Smithkline Beecham PLC, ADR Equity Units (one ADR represents
five Equity Units, each Unit consists of one Class B Ordinary Share
and one share of Cumulative Participating Preferred Stock)(3) 100,000 4,525,000
----------
63,431,208
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HEALTHCARE/SUPPLIES &
SERVICES--1.5% Columbia/HCA Healthcare Corp. 70,000 3,027,500
------------------------------------------------------------------------------------------------
Lynx Therapeutics, Inc.(2)(4) 153,900 30,780
------------------------------------------------------------------------------------------------
Medtronic, Inc. 250,000 19,281,250
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United Healthcare Corp. 175,000 7,240,625
----------
29,580,155
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Household Goods--1.1%
Colgate-Palmolive Co. 125,000 9,140,625
------------------------------------------------------------------------------------------------
Kimberly-Clark Corp. 200,000 11,975,000
----------
21,115,625
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8 Oppenheimer Total Return Fund, Inc.
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STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
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MARKET VALUE
SHARES SEE NOTE 1
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<S> <C> <C> <C>
TOBACCO--1.9% Philip Morris Cos., Inc. 475,000 $ 35,328,125
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ENERGY--7.8%
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ENERGY SERVICES
& PRODUCERS--3.5% Anadarko Petroleum Corp. 200,000 8,625,000
------------------------------------------------------------------------------------------------
Dresser Industries, Inc. 600,000 13,350,000
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Halliburton Co. 325,000 11,618,750
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Noble Drilling Corp.(2) 704,529 5,195,901
------------------------------------------------------------------------------------------------
Schlumberger Ltd. 217,000 13,481,125
------------------------------------------------------------------------------------------------
Western Atlas, Inc.(2) 300,000 13,312,500
----------
65,583,276
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OIL-INTEGRATED--4.3% Atlantic Richfield Co. 180,000 19,755,000
------------------------------------------------------------------------------------------------
Mobil Corp. 100,000 9,600,000
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Occidental Petroleum Corp. 850,000 19,443,750
------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 100,000 12,187,500
------------------------------------------------------------------------------------------------
Sun Co., Inc. 375,000 10,265,625
------------------------------------------------------------------------------------------------
Unocal Corp. 400,000 11,050,000
----------
82,301,875
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FINANCIAL--7.7%
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BANKS--5.8% Chase Manhattan Corp. 100,000 4,700,000
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Citicorp 475,000 27,490,625
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CoreStates Financial Corp. 700,000 24,412,500
------------------------------------------------------------------------------------------------
First Chicago Corp. 350,000 20,956,250
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First Interstate Bancorp 100,000 8,025,000
------------------------------------------------------------------------------------------------
TCF Financial Corp. 250,000 11,875,000
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UJB Financial Corp. 250,000 7,593,750
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Washington Mutual, Inc. 250,000 5,859,375
-----------
110,912,500
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DIVERSIFIED FINANCIAL--1.6% H & R Block, Inc. 450,000 18,506,250
------------------------------------------------------------------------------------------------
Travelers, Inc. 250,000 10,937,500
----------
29,443,750
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INSURANCE--0.3% Aetna Life & Casualty Co. 100,000 6,287,500
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INDUSTRIAL--11.0%
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ELECTRICAL EQUIPMENT--2.4% General Electric Co. 550,000 31,006,250
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Honeywell, Inc. 350,000 15,093,750
----------
46,100,000
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INDUSTRIAL MATERIALS--0.5% Masco Corp. 380,000 10,260,000
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INDUSTRIAL SERVICES--2.8% Browning-Ferris Industries, Inc. 300,000 10,837,500
------------------------------------------------------------------------------------------------
Danka Business System PLC, Sponsored ADR 200,000 4,837,500
------------------------------------------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 300,000 8,850,000
------------------------------------------------------------------------------------------------
Sensormatic Electronics Corp. 362,500 12,868,750
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Service Corp. International 475,000 15,021,875
----------
52,415,625
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9 Oppenheimer Total Return Fund, Inc.
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STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
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MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
<S> <C> <C> <C>
Manufacturing--4.3% Hanson PLC, ADR 1,000,000 $17,625,000
------------------------------------------------------------------------------------------------
Litton Industries, Inc.(2) 400,000 14,750,000
------------------------------------------------------------------------------------------------
Parker-Hannifin Corp. 362,500 13,140,625
------------------------------------------------------------------------------------------------
Tenneco, Inc. 400,000 18,400,000
------------------------------------------------------------------------------------------------
Tyco Laboratories, Inc. 325,000 17,550,000
----------
81,465,625
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Transportation--1.0% Burlington Northern, Inc. 300,000 19,012,500
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Technology--16.1%
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Aerospace/Defense--1.2% Lockheed Martin Corp. 350,000 22,093,750
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Computer Hardware--4.7% Bay Networks, Inc.(2) 275,000 11,378,125
------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(2) 125,000 6,656,250
------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(2) 325,000 16,432,813
------------------------------------------------------------------------------------------------
Moore Corp. Ltd. 912,200 20,182,425
------------------------------------------------------------------------------------------------
Xerox Corp. 300,000 35,175,000
-----------
89,824,613
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Computer Software--3.6% Adobe Systems, Inc. 350,000 20,300,000
------------------------------------------------------------------------------------------------
Autodesk, Inc. 175,000 7,525,000
------------------------------------------------------------------------------------------------
Compuware Corp.(2) 375,000 11,531,250
------------------------------------------------------------------------------------------------
General Motors Corp., Cl. E 100,000 4,350,000
------------------------------------------------------------------------------------------------
Microsoft Corp.(2) 125,000 11,296,875
------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 247,300 14,185,525
----------
69,188,650
- ---------------------------------------------------------------------------------------------------------------------------------
Electronics--4.0% ADT Ltd.(2) 950,000 11,162,500
------------------------------------------------------------------------------------------------
Duracell International, Inc. 200,000 8,650,000
------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 250,000 18,625,000
------------------------------------------------------------------------------------------------
Intel Corp. 250,000 15,828,125
------------------------------------------------------------------------------------------------
Motorola, Inc. 200,000 13,425,000
------------------------------------------------------------------------------------------------
Nokia Corp., ADR 150,000 8,943,750
----------
76,634,375
- ---------------------------------------------------------------------------------------------------------------------------------
Telecommunications- AT&T Corp. 300,000 15,937,500
------------------------------------------------------------------------------------------------
Technology--2.6% LCI International, Inc.(2) 625,000 19,140,625
------------------------------------------------------------------------------------------------
Millicom, Inc.(2) 400,000 --
------------------------------------------------------------------------------------------------
WorldCom, Inc.(2) 544,000 14,688,000
----------
49,766,125
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10 Oppenheimer Total Return Fund, Inc.
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<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
<S> <C> <C> <C>
Utilities--12.9%
- ---------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--9.0% Allegheny Power System, Inc. 450,000 $ 10,575,000
------------------------------------------------------------------------------------------------
Baltimore Gas & Electric Co. 500,000 12,500,000
------------------------------------------------------------------------------------------------
Detroit Edison Co. 725,000 21,387,500
------------------------------------------------------------------------------------------------
Dominion Resources, Inc. 300,000 10,950,000
------------------------------------------------------------------------------------------------
FPL Group, Inc. 250,000 9,656,250
------------------------------------------------------------------------------------------------
Houston Industries, Inc. 600,000 25,275,000
------------------------------------------------------------------------------------------------
Ohio Edison Co. 300,000 6,787,500
------------------------------------------------------------------------------------------------
Pacific Gas & Electric Co. 775,000 22,475,000
------------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 1,000,000 27,750,000
------------------------------------------------------------------------------------------------
Texas Utilities Co. 600,000 20,625,000
------------------------------------------------------------------------------------------------
The Southern Company 200,000 4,475,000
----------
172,456,250
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Gas Utilities--1.2% Panhandle Eastern Corp. 450,000 10,968,750
------------------------------------------------------------------------------------------------
Sonat, Inc. 400,000 12,200,000
----------
23,168,750
- ---------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--2.7% GTE Corp. 750,000 25,593,750
------------------------------------------------------------------------------------------------
US West, Inc. 600,000 24,975,000
----------
50,568,750
----------
Total Common Stocks (Cost $1,261,817,855) 1,502,137,214
=================================================================================================================================
Preferred Stocks--5.8%
- ---------------------------------------------------------------------------------------------------------------------------------
American Express Co., Debt Exchangeable for
Common Stock of First Data Corp., 6.25%, 10/15/96 200,000 9,700,000
------------------------------------------------------------------------------------------------
Atlantic Richfield Co., 9% Exchangeable Notes for
Common Stock of Lyondell Petrochemical Co., 9/15/97 600,000 15,600,000
------------------------------------------------------------------------------------------------
Boise Cascade Corp., $1.58 Cum. Cv., Series G 375,000 12,515,625
------------------------------------------------------------------------------------------------
Browning-Ferris Industries, Inc., 7.25% Cv. Automatic
Common Exchangeable Securities(2) 270,000 9,855,000
------------------------------------------------------------------------------------------------
Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C 50,000 2,925,000
------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cv. Depositary Shares 320,000 6,920,000
------------------------------------------------------------------------------------------------
General Motors Corp., $3.25 Cv., Series C 150,000 9,450,000
------------------------------------------------------------------------------------------------
James River Corp. of Virginia, $3.375 Cv., Series K 112,000 5,012,000
------------------------------------------------------------------------------------------------
James River Corp. of Virginia, Dividend Enhanced
Convertible Stock, 9% Cv. Exchangeable Depositary Shares, Series P 250,000 6,187,500
------------------------------------------------------------------------------------------------
Noble Drilling Corp., $1.50 Cv. Exchangeable 150,000 3,562,500
------------------------------------------------------------------------------------------------
Occidental Petroleum Corp., $3.00 Cum. Cv. Canadian
Occidental Petroleum Ltd.-Indexed 175,000 10,368,750
------------------------------------------------------------------------------------------------
Olympic Financial Ltd., $2.00 Cum. Cv. Exchangeable 100,000 7,800,000
------------------------------------------------------------------------------------------------
Reynolds Metals Co., 7% Preferred Redeemable Increased
Dividend Equity Securities, $3.31 Cv., 12/31/97 112,500 5,428,125
------------------------------------------------------------------------------------------------
Williams Companies, Inc., $3.50 Cv. 100,000 6,162,500
----------
Total Preferred Stocks (Cost $95,544,515) 111,487,000
</TABLE>
11 Oppenheimer Total Return Fund, Inc.
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STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------
MARKET VALUE
UNITS SEE NOTE 1
=================================================================================================================================
<S> <C> <C> <C>
Rights, Warrants and Certificates--0.0%
- ---------------------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 100,000 $ --
------------------------------------------------------------------------------------------------
Morgan Stanley Group Inc., Japanese Index Call Wts., Exp. 5/96 59,400 29,700
------------------------------------------------------------------------------------------------
Windmere Corp. Wts., Exp. 1/98 5,815 --
------------
Total Rights, Warrants and Certificates (Cost $356,479) 29,700
Date/Price Shares
=================================================================================================================================
Put Options Purchased--0.0%
- ---------------------------------------------------------------------------------------------------------------------------------
Chiron Corp., Put Opt. Jul. 95/$45 500 6,250
------------------------------------------------------------------------------------------------
Chiron Corp., Put Opt. Jul. 95/$55 500 6,250
----------
Total Put Options Purchased (Cost $202,750) 12,500
Face
Amount
=================================================================================================================================
Repurchase Agreements--7.8% Repurchase agreement with First Chicago Capital Markets, 6.125%,
dated 6/30/95, to be repurchased at $149,721,381 on 7/3/95,
collateralized by U.S. Treasury Bonds, 11.25%, 2/15/15, with a value
of $15,266,385, U.S. Treasury Nts., 4.75%--7.875%, 3/31/96--8/15/01,
with a value of $99,860,591, and U.S.Treasury Bills maturing
9/28/95--12/14/95, with a value of $37,660,467 (Cost $149,645,000) $149,645,000 149,645,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,611,338,310) 98.5% 1,878,531,185
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.5 28,221,124
----------- --------------
Net Assets 100.0% $1,906,752,309
=========== ==============
1. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security has
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $11,061,250 or 0.58% of the Fund's net
assets, at June 30, 1995.
2. Non-income producing security.
3. Units may be comprised of several components, such as debt and equity
and/or warrants to purchase equity at some point in the future. In most
cases, units involve a high degree of risk.
4. Identifies issues considered to be illiquid--See Note 7 of Notes to
Financial Statements.
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Total Return Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
------------------------------------------------------------------------------------------------
=================================================================================================================================
<S> <C> <C> <C>
Assets Investments, at value (cost $1,611,338,310)--see accompanying statement $1,878,531,185
------------------------------------------------------------------------------------------------
Cash 127,133
------------------------------------------------------------------------------------------------
Receivables:
Investments sold and options written 70,669,852
Interest and dividends 6,942,232
Shares of capital stock sold 1,990,896
------------------------------------------------------------------------------------------------
Other 94,182
--------------
Total assets 1,958,355,480
=================================================================================================================================
Liabilities Payables and other liabilities:
Investments purchased 44,092,342
Shares of capital stock redeemed 5,566,582
Distribution and service plan fees 915,156
Transfer and shareholder servicing agent fees 168,214
Directors' fees 16,490
Other 844,387
--------------
Total liabilities 51,603,171
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets $1,906,752,309
==============
=================================================================================================================================
Composition of Par value of shares of capital stock $ 21,583,281
Net Assets ------------------------------------------------------------------------------------------------
Additional paid-in capital 1,632,358,616
------------------------------------------------------------------------------------------------
Undistributed net investment income 6,974,015
------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment,
written option and foreign currency transactions (21,356,478)
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments, written options and translation
of assets and liabilities denominated in foreign currencies 267,192,875
--------------
Net assets $1,906,752,309
==============
=================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$1,392,726,769 and 157,387,176 shares of capital stock outstanding) $8.85
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $9.39
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $509,546,729 and 57,939,466 shares of capital stock outstanding) $8.79
------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $4,478,811 and 506,170 shares of capital stock outstanding) $8.85
See accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer Total Return Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
------------------------------------------------------------------------------------------------
=================================================================================================================================
<S> <C> <C> <C>
Investment Income Interest $ 10,974,659
------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $233,263) 23,325,095
------------
Total income 34,299,754
=================================================================================================================================
Expenses Management fees--Note 5 4,799,238
------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 1,110,747
Class B--Note 5 2,329,569
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 892,112
------------------------------------------------------------------------------------------------
Shareholder reports 251,562
------------------------------------------------------------------------------------------------
Custodian fees and expenses 120,061
------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 30,419
Class Y 677
------------------------------------------------------------------------------------------------
Directors' fees and expenses 22,722
------------------------------------------------------------------------------------------------
Legal and auditing fees 4,813
------------------------------------------------------------------------------------------------
Other 135,953
--------------
Total expenses 9,697,873
=================================================================================================================================
Net Investment Income 24,601,881
=================================================================================================================================
Realized and Unrealized Net realized gain on:
Gain on Investments, Investments 5,993,654
Options Written Closing and expiration of option contracts written--Note 4 6,574
And Foreign Currency Foreign currency transactions 1,539,417
Transactions --------------
Net realized gain 7,539,645
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 211,833,061
Translation of assets and liabilities denominated in foreign currencies 815,240
--------------
Net change 212,648,301
--------------
Net realized and unrealized gain on investments, options written and foreign
currency transactions 220,187,946
=================================================================================================================================
Net Increase in Net Assets Resulting From Operations $244,789,827
==============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Total Return Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
================================================================================================================================
<C> <S> <C> <C>
OPERATIONS Net investment income $ 24,601,881 $ 43,933,939
-----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments, options written
and foreign currency transactions 7,539,645 (22,943,925)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments and translation of assets and
liabilities denominated in foreign currencies 212,648,301 (159,658,425)
-------------- --------------
Net increase (decrease) in net assets resulting from operations 244,789,827 (138,668,411)
================================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.10 and $.2122 per share, respectively) (15,713,982) (32,935,100)
SHAREHOLDERS Class B ($.067 and $.1563 per share, respectively) (3,834,655) (7,410,674)
Class Y ($.104 and $.1719 per share, respectively) (39,995) (9,979)
================================================================================================================================
CAPITAL STOCK Net increase (decrease) in net assets resulting from Class A
TRANSACTIONS capital stock transactions--Note 2 (8,660,780) 150,027,163
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B
capital stock transactions--Note 2 20,978,371 251,910,438
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class Y
capital stock transactions--Note 2 3,095,363 1,113,774
================================================================================================================================
NET ASSETS Total increase 240,614,149 224,027,211
-----------------------------------------------------------------------------------------------------
Beginning of period 1,666,138,160 1,442,110,949
-------------- --------------
End of period (including undistributed net investment
income of $6,974,014 and $1,960,766, respectively) $1,906,752,309 $1,666,138,160
-------------- --------------
-------------- --------------
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Total Return Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $7.80 $8.69 $7.84 $7.49 $6.13 $6.68
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .12 .23 .18 .17 .24 .24
Net realized and unrealized gain (loss) on investments,
options written and foreign currency transactions 1.03 (.91) 1.45 .75 1.91 (.49)
---------- ----------- ---------- -------- -------- --------
Total income (loss) from investment operations 1.15 (.68) 1.63 .92 2.15 (.25)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.10) (.21) (.20) (.20) (.23) (.24)
Distributions from net realized gain on investments,
options written and foreign currency transactions -- -- (.58) (.37) (.56) (.06)
---------- ----------- ---------- -------- -------- --------
Total dividends and distributions to shareholders (.10) (.21) (.78) (.57) (.79) (.30)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.85 $7.80 $8.69 $7.84 $7.49 $6.13
---------- ----------- ---------- -------- -------- --------
---------- ----------- ---------- -------- -------- --------
================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 14.79% (7.86)% 21.24% 12.83% 36.26% (3.86)%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,392,727 $1,235,637 $1,223,395 $795,474 $555,865 $396,240
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,314,612 $1,261,729 $992,381 $662,917 $475,741 $394,903
- --------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at end of period (in thousands) 157,387 158,417 140,711 101,433 74,245 64,644
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.00%(4) 2.88% 2.21% 2.68% 3.26% 3.87%
Expenses .87%(4) 1.01% .93% .96% .95% .98%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 42.6% 117.2% 143.9% 143.5% 161.5% 114.1%
<FN>
1. For the period from June 1, 1994 (inception of offering) to
December 31, 1994.
2. For the period from May 1, 1993 (inception of offering) to
December 31, 1993.
3. Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period, 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.
16 Oppenheimer Total Return Fund, Inc.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
CLASS B CLASS Y
- ---------------------------------------- ----------------------------
SIX MONTHS SIX MONTHS YEAR
ENDED ENDED ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31, JUNE 30, 1995 DEC. 31,
(UNAUDITED) 1994 1993(2) (UNAUDITED) 1994(1)
==========================================================================
<S> <C> <C> <C> <C>
$7.76 $8.66 $8.23 $7.80 $8.23
- --------------------------------------------------------------------------
.09 .17 .09 .09 .15
1.01 (.91) 1.03 1.06 (.41)
-------- -------- -------- ------ ------
1.10 (.74) 1.12 1.15 (.26)
- --------------------------------------------------------------------------
(.07) (.16) (.11) (.10) (.17)
-- -- (.58) -- --
-------- -------- -------- ------ ------
(.07) (.16) (.69) (.10) (.17)
- --------------------------------------------------------------------------
$8.79 $7.76 $8.66 $8.85 $7.80
-------- -------- -------- ------ ------
-------- -------- -------- ------ ------
==========================================================================
14.17% (8.64)% 13.91% 14.84% (3.15)%
==========================================================================
$509,547 $429,427 $218,716 $4,479 $1,074
- --------------------------------------------------------------------------
$469,944 $360,773 $90,952 $2,378 $320
- --------------------------------------------------------------------------
57,939 55,374 25,261 506 138
- --------------------------------------------------------------------------
2.16%(4) 2.11% 1.09%(4) 3.23%(4) 4.07%(4)
1.71%(4) 1.87% 1.87%(4) .77%(4) .96%(4)
- --------------------------------------------------------------------------
42.6% 117.2% 143.9% 42.6% 117.2%
<FN>
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended June 30, 1995 were $715,404,597 and
$819,036,277, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Total Return Fund, Inc.
<PAGE>
----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
----------------------------------------------------
===============================================================================
1. SIGNIFICANT Oppenheimer Total Return Fund, Inc. (the Fund) is
ACCOUNTING POLICIES registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management
investment company. The Fund's investment advisor is
Oppenheimer Management Corporation (the Manager).
The Fund offers Class A, Class B and Class Y shares.
Class A shares are sold with a front-end sales
charge. Class B shares may be subject to a
contingent deferred sales charge. All three classes
of shares have identical rights to earnings, assets
and voting privileges, except that each class has
its own expenses directly attributable to a
particular class and exclusive voting rights with
respect to matters affecting a single class. Classes
A and B 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.
----------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are
valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities
for which such information is regularly reported are
valued at the last sale price of the day or, in the
absence of sales, at values based on the closing bid
or asked price or the last sale price on the prior
trading day. Long-term and short-term "non-money
market" debt securities are valued by a portfolio
pricing service approved by the Board of Directors.
Such securities which cannot be valued by the
approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is
satisfied that the firm rendering the quotes is
reliable and that the quotes reflect current market
value, or under consistently applied procedures
established by the Board of Directors to determine
fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of
60 days or less are valued at cost (or last
determined market value) adjusted for amortization
to maturity of any premium or discount. Forward
contracts are valued based on the closing prices of
the forward currency contract rates in the London
foreign exchange markets on a daily basis as
provided by a reliable bank or dealer. Options are
valued based upon the last sale price on the
principal exchange on which the option is traded or,
in the absence of any transactions that day, the
value is based upon the last sale price on the prior
trading date if it is within the spread between the
closing bid and asked prices. If the last sale price
is outside the spread, the closing bid or asked
price closest to the last reported sale price is
used.
----------------------------------------------------
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 securities and investment income are translated
at the rate 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 results of operations.
----------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the
custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System
or to have segregated within the custodian's vault,
all securities held as collateral for repurchase
agreements. The market value of the underlying
securities is required to be at least 102% of the
resale price at the time of purchase. If the seller
of the agreement defaults and the value of the
collateral declines, or if the seller enters an
insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or
limited.
----------------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES.
Income, expenses (other than those attributable to a
specific class) and gains and losses are allocated
daily to each class of shares based upon the
relative proportion of net assets represented by
such class. Operating expenses directly attributable
to a specific class are charged against the
operations of that class.
18 Oppenheimer Total Return Fund, Inc.
<PAGE>
----------------------------------------------------
----------------------------------------------------
===============================================================================
1. SIGNIFICANT FEDERAL TAXES. The Fund intends to continue to
ACCOUNTING POLICIES comply with provisions of the Internal Revenue Code
(CONTINUED) 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. At June
30, 1995, the Fund had available for federal income
tax purposes an unused capital loss carryover of
approximately $3,800,000 which will expire in 2002.
----------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are recorded on the
ex-dividend date.
----------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net
investment income (loss) and net realized gain
(loss) may differ for financial statement and tax
purposes primarily because of the recognition of
certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes. The character of the
distributions made during the year from net
investment income or net realized gains may differ
from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividend
distributions, the fiscal year in which amounts are
distributed may differ from the year that the income
or realized gain (loss) was recorded by the Fund.
----------------------------------------------------
OTHER. Investment transactions are accounted for on
the date the investments are purchased or sold
(trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased
is amortized over the life of the respective
securities, in accordance with federal income tax
requirements. Realized gains and losses on
investments and options written and unrealized
appreciation and depreciation are determined on an
identified cost basis, which is the same basis used
for federal income tax purposes.
----------------------------------------------------
2. SHARES OF The Fund has authorized 450,000,000, 200,000,000,
CAPITAL STOCK and 50,000,000 shares of $.10 par value Class A,
Class B and Class Y capital stock, respectively.
Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1995 YEAR ENDED DECEMBER 31, 1994(1)
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 9,967,057 $ 82,525,699 36,009,865 $ 302,062,255
Dividends and distributions
reinvested 1,685,645 14,457,595 3,725,296 30,098,615
Redeemed (12,682,125) (105,644,074) (22,029,323) (182,133,707)
----------- ------------- ----------- -------------
Net increase (decrease) (1,029,423) $ (8,660,780) 17,705,838 $150,027,163
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
--------------------------------------------------------------------------------------------------
Class B:
Sold 7,586,438 $ 62,502,956 35,786,510 $297,977,920
Dividends and distributions
reinvested 423,364 3,603,783 864,830 6,912,262
Redeemed (5,444,349) (45,128,368) (6,537,842) (52,979,744)
----------- ------------- ----------- -------------
Net increase 2,565,453 $ 20,978,371 30,113,498 $ 251,910,438
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
--------------------------------------------------------------------------------------------------
Class Y:
Sold 394,432 $ 3,316,685 144,607 $ 1,168,840
Dividends and distributions
reinvested 4,608 39,995 1,275 9,979
Redeemed (30,646) (261,317) (8,106) (65,045)
----------- ------------- ----------- -------------
Net increase 368,394 $ 3,095,363 137,776 $ 1,113,774
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<FN>
(1) For the year ended December 31, 1994 for Class A and Class B shares and for the period from
June 1, 1994 (inception of offering) to December 31, 1994 for Class Y shares.
</TABLE>
===============================================================================
3. UNREALIZED GAINS AND At June 30, 1995, net unrealized appreciation on
LOSSES ON INVESTMENTS investments of $267,192,875 was composed of gross
appreciation of $279,882,919, and gross depreciation
of $12,690,044.
===============================================================================
19 Oppenheimer Total Return Fund, Inc.
<PAGE>
----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
----------------------------------------------------
===============================================================================
4. OPTION ACTIVITY The Fund may buy and sell put and call options, or
write covered call options on portfolio securities
in order to produce incremental earnings or protect
against changes in the value of portfolio
securities. The Fund generally purchases put options
or writes covered call options to hedge against
adverse movements in the value of portfolio
holdings. When an option is written, the Fund
receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price,
upon exercise of the option.
Options are valued daily based upon the
last sale price on the principal exchange on which
the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a
gain or loss upon the expiration or closing of the
option transaction. When an option is exercised, the
proceeds on sales for a written call option, the
purchase cost for a written put option, or the cost
of the security for a purchased put or call option
is adjusted by the amount of premium received or
paid.
In this report, securities designated to
cover outstanding call options are noted in the
Statement of Investments. Shares subject to call,
expiration date, exercise price, premium received
and market value are detailed in a footnote to the
Statement of Investments. Options written are
reported as a liability in the Statement of Assets
and Liabilities. Gains and losses are reported in
the Statement of Operations.
The risk in writing a call option is that
the Fund gives up the opportunity for profit if the
market price of the security increases and the
option is exercised. The risk in writing a put
option is that the Fund may incur a loss if the
market price of the security decreases and the
option is exercised. The risk in buying an option
is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the
additional risk of not being able to enter into a
closing transaction if a liquid secondary market
does not exist.
Written option activity for the six months ended
June 30, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
--------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
--------------------------------------------------------------
<S> <C> <C>
Options outstanding at December 31, 1994 500 $36,499
--------------------------------------------------------------
Options written 50 19,224
--------------------------------------------------------------
Options closed or expired (50) (19,224)
--------------------------------------------------------------
Options exercised (500) (36,499)
--------------------------------------------------------------
Options outstanding at June 30, 1995 -- $ --
---- ---------
---- ---------
</TABLE>
===============================================================================
5. MANAGEMENT FEES AND Management fees paid to the Manager were in
OTHER TRANSACTIONS accordance with the investment advisory agreement
WITH AFFILIATES with the Fund which provides for a fee of .75% on
the first $100 million of average annual net assets
with a reduction of .05% on each $100 million
thereafter, to .50% on net assets in excess of $500
million. The Manager has agreed to reimburse the
Fund if aggregate expenses (with specified
exceptions) exceed the most stringent state
regulatory limit on Fund expenses.
For the six months ended June 30, 1995,
commissions (sales charges paid by investors) on
sales of Class A shares totaled $2,194,566, of which
$646,359 was retained by Oppenheimer Funds
Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an
affiliated broker/dealer. Sales charges advanced
to broker/dealers by OFDI on sales of the Fund's
Class B shares totaled $2,188,002, of which $139,122
was paid to an affiliated broker/dealer. During the
six months ended June 30, 1995, OFDI received
contingent deferred sales charges of $807,987 upon
redemption of Class B shares.
Oppenheimer Shareholder Services (OSS),
a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for
other registered investment companies. OSS's total
costs of providing such services are allocated
ratably to these companies.
Under separate approved plans, Class A and
Class B may expend up to .25% of its net assets
annually to reimburse OFDI for costs incurred in
distributing shares of the Fund, including amounts
paid to brokers, dealers, banks and other financial
institutions. In addition, Class B shares are
subject to an asset-based sales charge of .75% of
net assets annually, to reimburse OFDI for sales
commissions paid from its own resources at the time
of sale and associated financing costs. In the event
of termination or discontinuance of the Class B
plan, the Board of Directors may allow the Fund to
continue payment of the asset-based sales charge to
OFDI for distribution expenses incurred on Class B
shares prior to termination or discontinuance of the
plan. During the six months ended June 30, 1995,
OFDI paid $82,530 and $19,915 to an affiliated
broker/dealer as reimbursement for Class A and Class
B personal service and maintenance expenses,
respectively, and retained $ 1,995,105 as
reimbursement for Class B sales commissions and
service fee advances, as well as financing costs.
20 Oppenheimer Total Return Fund, Inc.
<PAGE>
----------------------------------------------------
----------------------------------------------------
===============================================================================
6. ILLIQUID AND At June 30, 1995, investments in securities included
RESTRICTED SECURITIES issues that are illiquid or restricted. The
securities are often purchased in private placement
transactions, are not registered under the
Securities Act of 1933, may have contractual
restrictions on resale, and are valued under methods
approved by the Board of Directors as reflecting
fair value. The Fund intends to invest no more than
10% of its net assets (determined at the time of
purchase) in illiquid and restricted securities. The
aggregate value of these securities subject to this
limitation at June 30, 1995 was $30,780 which
represents 0.0% of the Fund's net assets.
Information concerning these securities is as
follows:
<TABLE>
<CAPTION>
VALUATION PER
UNIT AS
SECURITY ACQUISITION DATE COST PER UNIT OF JUNE 30, 1995
-----------------------------------------------------------------------------
<S> <C> <C> <C>
Lynx Therapeutics, Inc. 10/19/92 $.67 $.20
</TABLE>
Pursuant to guidelines adopted by the Board of
Directors, certain unregistered securities are
determined to be liquid and are not included within
the 10% limitation specified above.
21 Oppenheimer Total Return Fund, Inc.
<PAGE>
<TABLE>
------------------------------------------------------------
OPPENHEIMER TOTAL RETURN FUND, INC.
------------------------------------------------------------
<C> <S>
=======================================================================================
OFFICERS AND DIRECTORS James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director and President
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Andrew J. Donohue, Vice President
Bruce Bartlett, Vice President
Diane Sobin, Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
=======================================================================================
INVESTMENT ADVISOR Oppenheimer Management Corporation
=======================================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
=======================================================================================
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
=======================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
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INDEPENDENT AUDITORS Deloitte & Touche LLP
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LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken
from the records of the Fund without examination by the
independent auditors. This is a copy of a report to
shareholders of Oppenheimer Total Return Fund, Inc. This
report must be preceded or accompanied by a Prospectus of
Oppenheimer Total Return Fund, Inc. For material information
concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations
of any bank, are not guaranteed by any bank, and are not
insured by the FDIC or any other agency, and involve
investment risks, including possible loss of the principal
amount invested.
</TABLE>
22 Oppenheimer Total Return Fund, Inc.
<PAGE>
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OPPENHEIMERFUNDS FAMILY
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OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're investing
for retirement, your children's education or tax-free
income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a
respected financial institution with over 30 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed income
investments--with over 2.6 million shareholder accounts
and more than $35 billion under Oppenheimer's management
and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares of eligible funds of the same class. And you can
exchange shares easily by mail or by telephone.(1) For more
information on OppenheimerFunds, please contact your
financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on
the back cover. As always, please read the prospectus
carefully before you invest.
<TABLE>
<S> <C> <C>
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STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund(3) Gold & Special Minerals Fund
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STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
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BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund International Bond Fund
Strategic Income & Growth Fund Bond Fund(4)
Strategic Income Fund U.S. Government Trust
Strategic Investment Grade Bond Fund Limited-Term Government Fund
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TAX-EXEMPT FUNDS New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5)
California Tax-Exempt Fund(5) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt Bond Fund
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MONEY MARKET FUNDS Money Market Fund Cash Reserves
<FN>
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Formerly Investment Grade Bond Fund.
5. Available only to residents of certain states.
</TABLE>
OppenheimerFunds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-c- Copyright 1995 Oppenheimer Management Corporation. All
rights reserved.
23 Oppenheimer Total Return Fund
<PAGE>
[Sidebar]
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
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1-800-525-7048
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TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
- ---------------------------------
1-800-852-8457
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PHONELINK
24 hours a day, automated
information and transactions
- ---------------------------------
1-800-533-3310
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TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
- ---------------------------------
1-800-843-4461
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OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and issues that
affect your investments
- ---------------------------------
1-800-835-3104
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RS0420.001.0695 August 31, 1995
"HOW MAY I HELP YOU?"
As an OppenheimerFunds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
informa-
[Photo]
tion. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
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[LOGO] OPPENHEIMERFUNDS
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 314
Farmingdale, NY
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