<PAGE> 1
[PHOTO]
SEMIANNUAL REPORT JUNE 30, 2000
OPPENHEIMER
TOTAL RETURN FUND, INC.
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Managers
9 Financial
Statements
30 Officers and Directors
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
We continued to rely on "bottom-up" analysis of individual company fundamentals
to guide us toward what we believed were the market's most attractive investment
opportunities.
Overall, the Fund benefited from its disciplined approach by investing in a
diversified blend of stocks.
Energy and utilities were the greatest contributors to performance during the
second half of the period.
<TABLE>
<CAPTION>
CUMULATIVE
TOTAL RETURNS*
For the 6-Month Period Ended 6/30/00
<S> <C>
CLASS A
Without With
Sales Chg. Sales Chg.
-------------------------------------------------------------------------------
4.54% -1.48%
CLASS B
Without With
Sales Chg. Sales Chg.
-------------------------------------------------------------------------------
4.14% -0.86%
CLASS C
Without With
Sales Chg. Sales Chg.
-------------------------------------------------------------------------------
4.11% 3.11%
CLASS Y
Without With
Sales Chg. Sales Chg.
-------------------------------------------------------------------------------
4.56% 4.56%
-------------------------------------------------------------------------------
</TABLE>
*See Notes on page 7 for further details.
<PAGE> 3
[PHOTO] [PHOTO]
JAMES C. SWAIN BRIDGET A. MACASKILL
Chairman President
Oppenheimer Oppenheimer
Total Return Fund, Inc. Total Return Fund, Inc.
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
DEAR SHAREHOLDER,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000 in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks and
bonds. In a dramatic decline, previously high-flying technology stocks generally
fell to more reasonable valuations. At the same time, long-neglected value
stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully
1 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 4
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
designed as long-term investments to help individuals and families progress
toward significant financial goals. In general, short-term trading is risky and
may compromise a well-planned financial strategy. It may also result in
unforeseen adverse consequences, such as unnecessarily high tax bills.
We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to monitor
areas of opportunity in the arenas in which your fund invests, as the effects of
today's changing investment environment take hold. Knowing what's going on in
the world's economies, markets and companies--and making investment decisions
designed to try to take advantage of them over the long term--is central to what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
<TABLE>
<CAPTION>
<S> <C>
/s/ JAMES C. SWAIN /s/ BRIDGET A. MACASKILL
James C. Swain Bridget A. Macaskill
July 24, 2000
</TABLE>
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of 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 TOTAL RETURN FUND, INC.
<PAGE> 5
[JOHN DONEY PHOTO] [BRUCE BARTLETT PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
John Doney
Bruce Bartlett
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
HOW WOULD YOU CHARACTERIZE OPPENHEIMER TOTAL RETURN FUND, INC.'S PERFORMANCE
DURING THE FIRST SIX MONTHS OF 2000?
A. During the reporting period that ended June 30, 2000, equity markets
demonstrated considerable volatility, and the Fund's diversified equity
components helped to reduce the market's negative impact on the Fund.
WHAT MADE THIS SUCH A VOLATILE PERIOD?
Equity markets demonstrated considerable strength during January and February
2000, supported by continued expansion of the U.S. economy, low rates of
inflation, growing evidence of global economic recovery and diminishing fears of
Y2K-related problems. Technology-oriented stocks were then faring particularly
well, driven by excellent earnings reports from many companies in the sector and
fueled by growing demand for semiconductors and communications-related
components.
However, as winter drew to a close, the threat of rising inflation took a
toll on market performance. High levels of consumer spending fueled an overall
rate of U.S. economic growth that many observers considered unsustainable.
Although measurable inflation remained low, the Federal Reserve Board raised
interest rates in an effort to slow the pace of economic growth and thereby head
off possible future inflation. The uncertainties associated with these issues
caused prices of many growth-oriented stocks to retreat in late March 2000, and
to remain volatile through the remainder of the reporting period. Our
value-oriented investments helped cushion the Fund from the impact of this
volatility, contributing to our positive performance during the second half of
the period.
3 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 6
"WE BELIEVE THE RECENT PERIOD DEMONSTRATES THE INTRINSIC STRENGTHS OF A
DIVERSIFIED, LONG-TERM INVESTMENT STRATEGY."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
HOW DID YOU MANAGE THE FUND'S INVESTMENTS IN LIGHT OF THESE CONDITIONS?
We continued to rely on "bottom-up" analysis of individual company fundamentals
to guide us toward what we believed were the market's most attractive investment
opportunities. We found the overwhelming majority of such opportunities across
several of the following areas of the market. Within the technology sector, we
found compelling opportunities in companies at the forefront of optical
networking. Optical networks use laser light and fiber-optic cable to deliver
voice and data communications. While optical technologies have been in use for
decades, recent developments have allowed optical networks to deliver much
greater communications traffic volume, or bandwidth, than other communications
technologies. With the explosive growth of the Internet, bandwidth demand is
growing at very high rates, fueling a growing requirement for optical components
and systems. We invested in companies that are supplying the building blocks for
today's optical networks, such as JDS Uniphase Corp. and Corning, Inc. We also
invested in major communications equipment and systems providers, such as Nortel
Networks Corp., that are benefiting from increased demand.
In addition, we found attractive investment opportunities among retailers and
specialty retailers, such as Kohl's Corp., a fast-growing chain of department
stores that sells discounted brand-name merchandise. We also invested in several
retailers that specialize in meeting the strong demand for consumer electronics
and home supplies, such as Home Depot, Inc.
4 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 7
<TABLE>
<CAPTION>
--------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 6/30/00(1)
CLASS A
<S> <C> <C>
1-Year 5-Year 10-Year
--------------------------------------------------------------
6.23% 19.55% 16.15%
CLASS B Since
1-Year 5-Year Inception
--------------------------------------------------------------
6.78% 19.82% 16.39%
CLASS C Since
1-Year 5-Year Inception
--------------------------------------------------------------
10.76% N/A 19.79%
CLASS Y Since
1-Year 5-Year Inception
--------------------------------------------------------------
12.83% 21.12% 19.13%
--------------------------------------------------------------
</TABLE>
HOW DID THE FUND PERFORM?
Even before many growth stocks began to slide in late March 2000, certain
value-oriented sectors of the market were already showing signs of strength. In
particular, energy exploration and service companies benefited from rising
prices for oil and gas. Many of our holdings in this sector fared well early in
the year, and continued to show positive performance during most of the
reporting period.
In late March 2000, as investors began looking for protection from the
volatility of growth-oriented stocks, many turned to traditionally defensive,
value-oriented sectors, such as utilities and financials. The Fund's holdings
among power utilities, such as Enron Corp., rose as a result. Some of these
companies whose business includes energy services as well as power generation,
such as Enron, performed particularly well. Among financial organizations,
although the sector is usually hurt by rising interest rates, many investors
believed that interest rates were unlikely to rise much farther. As a result,
the Fund's financial holdings, such as Citigroup, Inc., generally performed
well.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We believe the recent period demonstrates the intrinsic strengths of a
diversified, long-term investment strategy. When economic conditions favor
growth investing, the Fund attempts to position investors to participate in the
market's gains. When economic uncertainties shake the market, the Fund's
diversified portfolio may help to provide investors with a buffer against
volatility, and may offer the opportunity for additional gains from investments
in traditional defensive sectors. That's why we rigorously maintain our
disciplined investment strategy, and why Oppenheimer Total Return Fund, Inc.
remains a key part of The Right Way to Invest.
1. See Notes on page 7 for further details.
5 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 8
PORTFOLIO ALLOCATION(2)
[PIE CHART]
- Stocks 79.0%
- Bonds 4.2
- Cash
Equivalents 16.8
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOP TEN COMMON STOCK HOLDINGS(3)
-----------------------------------------------------------------------
<S> <C>
JDS Uniphase Corp. 15.5%
EMC Corp. 5.4
Home Depot, Inc. 4.5
Nortel Networks Corp. 4.1
Cisco Systems, Inc. 4.0
Tyco International Ltd. 3.7
Citigroup, Inc. 3.6
Corning, Inc. 3.4
Enron Corp. 2.8
Microsoft Corp. 2.7
TOP FIVE COMMON STOCK INDUSTRIES(3)
-----------------------------------------------------------------------
Electronics 19.7%
Communications Equipment 10.1
Retail: Specialty 9.5
Manufacturing 7.9
Computer Hardware 7.6
</TABLE>
2. Portfolio is subject to change. Percentages are as of June 30, 2000, and are
based on total market value of investments.
3. Portfolio is subject to change. Percentages are as of June 30, 2000, and are
based on total market value of common stock.
6 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 9
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. THE FUND'S RETURNS
AT 6/30/00 INCLUDE RESULTS FOR PERIODS OF EXCEPTIONAL MARKET PERFORMANCE THAT IS
NOT TYPICAL OF HISTORICAL RESULTS. YOU SHOULD NOT EXPECT THOSE GROWTH RATES TO
CONTINUE. BECAUSE OF ONGOING MARKET VOLATILITY, THE FUND'S PERFORMANCE MAY BE
SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES 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 include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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 were first publicly offered on 10/2/47. Class A returns include
the current maximum initial sales charge of 5.75%. The Fund's maximum sales
charge for Class A shares was higher prior to 4/1/91, so actual performance may
have been lower.
CLASS B shares of the Fund were first publicly offered on 5/3/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "life of class" return for Class B uses Class A performance
for the period after conversion. 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 8/29/95. 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 6/1/94. 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.
7 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 10
FINANCIALS
8 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 11
STATEMENT OF INVESTMENTS June 30, 2000 / Unaudited
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==========================================================================
<S> <C> <C>
COMMON STOCKS--76.9%
--------------------------------------------------------------------------
BASIC MATERIALS--1.6%
--------------------------------------------------------------------------
CHEMICALS--0.7%
Dow Chemical Co. 300,000 $ 9,056,250
--------------------------------------------------------------------------
Goodrich (B.F.) Co. 200,000 6,812,500
--------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 260,000 7,848,750
--------------------------------------------------------------------------
Praxair, Inc. 216,900 8,120,194
-------------
31,837,694
--------------------------------------------------------------------------
PAPER--0.9%
International Paper Co. 460,412 13,726,033
--------------------------------------------------------------------------
Pactiv Corp.(1) 375,000 2,953,125
--------------------------------------------------------------------------
Smurfit-Stone Container Corp.(1) 600,000 7,725,000
--------------------------------------------------------------------------
Sonoco Products Co. 330,000 6,785,625
--------------------------------------------------------------------------
Weyerhaeuser Co. 200,000 8,600,000
-------------
39,789,783
--------------------------------------------------------------------------
CAPITAL GOODS--6.3%
--------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.0%
Raytheon Co., Cl. A 12,754 247,906
--------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.3%
Republic Services, Inc.(1) 1,000,000 16,000,000
--------------------------------------------------------------------------
MANUFACTURING--6.0%
American Standard Cos., Inc.(1) 400,000 16,400,000
--------------------------------------------------------------------------
Corning, Inc. 440,000 118,745,000
--------------------------------------------------------------------------
Honeywell International, Inc. 337,500 11,369,531
--------------------------------------------------------------------------
Tenneco Automotive Inc. 60,000 315,000
--------------------------------------------------------------------------
Tyco International Ltd. 2,700,000 127,912,500
-------------
274,742,031
--------------------------------------------------------------------------
COMMUNICATION SERVICES--1.3%
--------------------------------------------------------------------------
TELECOMMUNICATIONS: LONG DISTANCE--0.1%
AT&T Corp. 146,554 4,634,770
--------------------------------------------------------------------------
TELEPHONE UTILITIES--0.9%
Bell Atlantic Corp. 538,400 27,357,450
--------------------------------------------------------------------------
GTE Corp. 100,000 6,225,000
--------------------------------------------------------------------------
SBC Communications, Inc. 200,000 8,650,000
-------------
42,232,450
--------------------------------------------------------------------------
TELECOMMUNICATIONS: WIRELESS--0.3%
AT&T Wireless Group(1) 546,300 15,228,112
</TABLE>
9 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 12
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==========================================================================
<S> <C> <C>
CONSUMER CYCLICALS--13.5%
--------------------------------------------------------------------------
AUTOS & HOUSING--0.5%
Delphi Automotive Systems Corp. 293,500 $ 4,274,094
--------------------------------------------------------------------------
Ford Motor Co. 250,000 10,750,000
--------------------------------------------------------------------------
Lear Corp.(1) 271,800 5,436,000
--------------------------------------------------------------------------
Visteon Corp.(1) 32,733 396,888
--------------------------------------------------------------------------
20,856,982
-------------
--------------------------------------------------------------------------
CONSUMER SERVICES--1.1%
Dun & Bradstreet Corp. 600,000 17,175,000
--------------------------------------------------------------------------
Young & Rubicam, Inc. 557,000 31,853,437
-------------
49,028,437
-------------
--------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.3%
Carnival Corp. 400,000 7,800,000
--------------------------------------------------------------------------
Hasbro, Inc. 300,000 4,518,750
--------------------------------------------------------------------------
12,318,750
-------------
--------------------------------------------------------------------------
MEDIA--0.0%
R.H. Donnelley Corp. 100,000 1,937,500
--------------------------------------------------------------------------
RETAIL: GENERAL--4.3%
Family Dollar Stores, Inc. 600,000 11,737,500
--------------------------------------------------------------------------
Kohl's Corp.(1) 1,640,000 91,225,000
--------------------------------------------------------------------------
Wal-Mart Stores, Inc. 1,600,000 92,200,000
-------------
195,162,500
-------------
--------------------------------------------------------------------------
RETAIL: SPECIALTY--7.3%
AutoNation, Inc.(1) 3,900,000 27,543,750
--------------------------------------------------------------------------
AutoZone, Inc.(1) 300,000 6,600,000
--------------------------------------------------------------------------
Best Buy Co., Inc.(1) 965,600 61,074,200
--------------------------------------------------------------------------
Home Depot, Inc. 3,116,691 155,639,757
--------------------------------------------------------------------------
OfficeMax, Inc.(1) 1,900,000 9,500,000
--------------------------------------------------------------------------
RadioShack Corp. 1,365,000 64,666,875
--------------------------------------------------------------------------
Sherwin-Williams Co. 302,200 6,402,862
--------------------------------------------------------------------------
331,427,444
-------------
--------------------------------------------------------------------------
CONSUMER STAPLES--2.8%
--------------------------------------------------------------------------
BEVERAGES--0.2%
Anheuser-Busch Cos., Inc. 100,000 7,468,750
--------------------------------------------------------------------------
BROADCASTING--1.0%
Fox Entertainment Group, Inc., A Shares(1) 200,000 6,075,000
--------------------------------------------------------------------------
Infinity Broadcasting Corp., Cl. A(1) 500,100 18,222,394
--------------------------------------------------------------------------
Univision Communications, Inc., Cl. A(1) 200,000 20,700,000
-------------
44,997,394
</TABLE>
10 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==========================================================================
<S> <C> <C>
ENTERTAINMENT--0.3%
Brinker International, Inc.(1) 400,000 $ 11,700,000
--------------------------------------------------------------------------
Royal Caribbean Cruises Ltd. 44,800 828,800
--------------
12,528,800
--------------------------------------------------------------------------
FOOD--0.8%
General Mills, Inc. 200,000 7,650,000
--------------------------------------------------------------------------
Heinz (H.J.) Co. 200,000 8,750,000
--------------------------------------------------------------------------
Nabisco Group Holdings Corp. 700,000 18,156,250
--------------
34,556,250
--------------------------------------------------------------------------
FOOD & DRUG RETAILERS--0.0%
Kroger Co.(1) 100,000 2,206,250
--------------------------------------------------------------------------
HOUSEHOLD GOODS--0.2%
Newell Rubbermaid, Inc. 400,000 10,300,000
--------------------------------------------------------------------------
TOBACCO--0.3%
Philip Morris Cos., Inc. 500,000 13,281,250
--------------------------------------------------------------------------
ENERGY--4.0%
--------------------------------------------------------------------------
ENERGY SERVICES--1.3%
Coastal Corp. 400,000 24,350,000
--------------------------------------------------------------------------
Dynegy, Inc. 300,000 20,493,750
--------------------------------------------------------------------------
Schlumberger Ltd. 153,600 11,462,400
--------------------------------------------------------------------------
Transocean Sedco Forex, Inc. 49,096 2,623,567
--------------
58,929,717
--------------------------------------------------------------------------
OIL: DOMESTIC--2.3%
Conoco, Inc., Cl. B 624,600 15,341,737
--------------------------------------------------------------------------
Exxon Mobil Corp. 504,030 39,566,355
--------------------------------------------------------------------------
Occidental Petroleum Corp. 300,000 6,318,750
--------------------------------------------------------------------------
Tosco Corp. 500,000 14,156,250
--------------------------------------------------------------------------
Unocal Corp. 300,000 9,937,500
--------------------------------------------------------------------------
USX-Marathon Group 700,000 17,543,750
--------------
102,864,342
--------------------------------------------------------------------------
OIL: INTERNATIONAL--0.4%
BP Amoco plc, ADR 200,000 11,312,500
--------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 100,000 6,156,250
--------------
17,468,750
--------------------------------------------------------------------------
FINANCIAL--9.1%
--------------------------------------------------------------------------
Banks--2.8%
Bank of America Corp. 582,900 25,064,700
--------------------------------------------------------------------------
Bank One Corp. 330,000 8,765,625
--------------------------------------------------------------------------
Charter One Financial, Inc. 200,000 4,600,000
</TABLE>
11 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 14
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==========================================================================
<S> <C> <C>
BANKS Continued
Chase Manhattan Corp. 450,000 $ 20,728,125
--------------------------------------------------------------------------
East West Bancorp, Inc.(2) 1,000,000 14,375,000
--------------------------------------------------------------------------
First Union Corp. 400,000 9,925,000
--------------------------------------------------------------------------
FleetBoston Financial Corp. 200,600 6,820,400
--------------------------------------------------------------------------
KeyCorp 400,000 7,050,000
--------------------------------------------------------------------------
National City Corp. 620,000 10,578,750
--------------------------------------------------------------------------
PNC Financial Services Group 270,000 12,656,250
--------------------------------------------------------------------------
Summit Bancorp 360,000 8,865,000
--------------
129,428,850
--------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--4.8%
Anthracite Capital, Inc. 400,000 2,850,000
--------------------------------------------------------------------------
Citigroup, Inc. 2,100,000 126,525,000
--------------------------------------------------------------------------
Freddie Mac 200,000 8,100,000
--------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 108,200 10,265,475
--------------------------------------------------------------------------
Household International, Inc. 759,990 31,587,084
--------------------------------------------------------------------------
Schwab (Charles) Corp. 1,208,700 40,642,538
--------------
219,970,097
--------------------------------------------------------------------------
INSURANCE--1.2%
Aetna, Inc. 225,000 14,442,188
--------------------------------------------------------------------------
American General Corp. 263,500 16,073,500
--------------------------------------------------------------------------
Enhance Financial Services Group, Inc. 600,000 8,625,000
--------------------------------------------------------------------------
St. Paul Cos., Inc. 350,000 11,943,750
--------------------------------------------------------------------------
XL Capital Ltd., Cl. A 50,000 2,706,250
--------------
53,790,688
--------------------------------------------------------------------------
SAVINGS & LOANS--0.3%
Local Financial Corp.(1) 400,000 3,337,500
--------------------------------------------------------------------------
Washington Mutual, Inc. 300,000 8,662,500
--------------
12,000,000
--------------------------------------------------------------------------
HEALTHCARE--2.1%
--------------------------------------------------------------------------
HEALTHCARE/DRUGS--1.5%
American Home Products Corp. 300,000 17,625,000
--------------------------------------------------------------------------
Biogen, Inc.(1) 632,800 40,815,600
--------------------------------------------------------------------------
Bristol-Myers Squibb Co. 200,000 11,650,000
--------------
70,090,600
--------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--0.6%
Bausch & Lomb, Inc. 150,000 11,606,250
--------------------------------------------------------------------------
HEALTHSOUTH Corp.(1) 430,000 3,090,625
--------------------------------------------------------------------------
Medtronic, Inc. 229,000 11,407,063
--------------
26,103,938
</TABLE>
12 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==========================================================================
<S> <C> <C>
TECHNOLOGY--32.1%
--------------------------------------------------------------------------
COMPUTER HARDWARE--5.8%
Compaq Computer Corp. 400,000 $ 10,225,000
--------------------------------------------------------------------------
Dell Computer Corp.(1) 432,100 21,307,931
--------------------------------------------------------------------------
EMC Corp.(1) 2,461,126 189,352,882
--------------------------------------------------------------------------
Gateway, Inc.(1) 190,700 10,822,225
--------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A 497,500 33,456,875
--------------
265,164,913
--------------------------------------------------------------------------
COMPUTER SOFTWARE--3.0%
Microsoft Corp.(1) 1,190,861 95,268,880
--------------------------------------------------------------------------
Oracle Corp.(1) 500,000 42,031,250
--------------------------------------------------------------------------
Per-Se Technologies, Inc.(1) 1,642 15,394
-------------
137,315,524
--------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--7.8%
Cisco Systems, Inc. 2,188,000 139,074,750
--------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 1,410,000 70,411,875
--------------------------------------------------------------------------
Nortel Networks Corp. 2,100,000 143,325,000
--------------
352,811,625
--------------------------------------------------------------------------
ELECTRONICS--15.2%
Intel Corp. 290,000 38,769,375
--------------------------------------------------------------------------
JDS Uniphase Corp.(1) 4,518,832 541,694,986
--------------------------------------------------------------------------
Motorola, Inc. 675,000 19,617,188
--------------------------------------------------------------------------
Texas Instruments, Inc. 400,000 27,475,000
--------------------------------------------------------------------------
Waters Corp.(1) 500,000 62,406,250
--------------
689,962,799
--------------------------------------------------------------------------
PHOTOGRAPHY--0.3%
Eastman Kodak Co. 200,000 11,900,000
--------------------------------------------------------------------------
UTILITIES--4.1%
--------------------------------------------------------------------------
ELECTRIC UTILITIES--2.0%
AES Corp. (The)(1) 1,122,000 51,191,250
--------------------------------------------------------------------------
Allegheny Energy, Inc. 210,000 5,748,750
--------------------------------------------------------------------------
CP&L Energy, Inc. 110,000 3,513,125
--------------------------------------------------------------------------
New Century Energies, Inc. 200,000 6,000,000
--------------------------------------------------------------------------
Southern Co. 298,500 6,958,781
--------------------------------------------------------------------------
TXU Corp. 200,000 5,900,000
--------------------------------------------------------------------------
Unicom Corp. 300,000 11,606,250
--------------
90,918,156
--------------------------------------------------------------------------
GAS UTILITIES--2.1%
Enron Corp. 1,500,000 96,750,000
--------------
Total Common Stocks (Cost $1,993,094,643) 3,496,253,052
</TABLE>
13 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 16
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS Unaudited / Continued
MARKET VALUE
SHARES SEE NOTE 1
===================================================================================================
<S> <C> <C>
PREFERRED STOCKS--2.1%
---------------------------------------------------------------------------------------------------
Coastal Corp., 6.625% Cv. Preferred Redeemable Increased Dividend
Equity Securities 300,000 $ 10,500,000
---------------------------------------------------------------------------------------------------
Dollar General Corp., 8.50% Cv. Structured Yield Product
Exchangeable for Stock 271,100 9,556,275
---------------------------------------------------------------------------------------------------
MediaOne Group, Inc., 6.25% Cv. Premium Income Exchangeable
Securities for Vodafone Airtouch plc, Common Stock 258,000 23,203,875
---------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6.25% Structured Yield Product Exchangeable
for Stock of IMC Global, Inc. 90,900 1,380,544
---------------------------------------------------------------------------------------------------
Newell Financial Trust I, 5.25% Cv. Quarterly Income Preferred
Securities, Non-Vtg. 163,000 6,132,875
---------------------------------------------------------------------------------------------------
Premier Parks, Inc., 7.50% Cum. Cv. Premium Income Equity
Securities, Non-Vtg. 232,000 10,324,000
---------------------------------------------------------------------------------------------------
Sovereign Capital Trust II, 7.50% Cv. Preferred Income Equity
Redeemable Stock, Units (each unit consists of one preferred plus one
warrant to purchase 5.3355 shares of Sovereign Bancorp common stock)(3) 87,900 4,307,100
---------------------------------------------------------------------------------------------------
St. George Bank, ADR 9% Cv. Structured Yield Product Exchangeable
for Common Stock of St. George Bank(2) 90,000 4,511,250
---------------------------------------------------------------------------------------------------
TCI Pacific Communications, Inc., 5% Cv. Cum. Sr., Cl. A 50,000 10,031,250
---------------------------------------------------------------------------------------------------
TXU Corp., 9.25% Cv. Preferred Redeemable Increased Dividend
Equity Securities, Non-Vtg. 117,600 4,571,700
---------------------------------------------------------------------------------------------------
Union Pacific Capital Trust, 6.25% Cum. Term Income Deferrable
Equity Securities, Non-Vtg. 87,600 3,383,550
---------------------------------------------------------------------------------------------------
Valero Energy Corp., 7.75% Cv. Premium Equity Participating Security(1) 214,200 5,703,075
-------------
Total Preferred Stocks (Cost $86,641,456)
93,605,494
UNITS
===================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
---------------------------------------------------------------------------------------------------
Per-Se Technologies, Inc. Wts., Exp. 2/23/10 (Cost $0) 2,204 --
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
===================================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--3.6%
---------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6.625%, 2/15/27 $ 25,675,000 27,231,547
STRIPS, 6.17%, 2/15/20(4) 100,000,000 29,784,500
STRIPS, 6.51%, 8/15/19(4) 100,000,000 30,604,600
STRIPS, 6.92%, 11/15/18(4) 54,000,000 17,375,688
---------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6.25%, 2/15/07 31,200,000 31,239,000
6.625%, 3/31/02 30,050,000 30,115,749
-------------
Total U.S. Government Obligations (Cost $160,593,167)
166,351,084
</TABLE>
14 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
==========================================================================================================================
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.0%
--------------------------------------------------------------------------------------------------------------------------
Dresdner Finance BV, 5.50% Gtd. Nts., 4/30/04 [DEM] (Cost $279,377) $ 417,000 $ 323,945
==========================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.5%
--------------------------------------------------------------------------------------------------------------------------
Level One Communications, Inc./Intel Corp., 4% Cv. Sub. Nts., 9/1/04(2) 3,500,000 15,098,125
--------------------------------------------------------------------------------------------------------------------------
Offshore Logistics, Inc., 6% Cv. Sub. Nts., 12/15/03(2) 5,000,000 4,600,000
--------------------------------------------------------------------------------------------------------------------------
Sunrise Assisted Living, Inc., 5.50% Cv. Nts., 6/15/02(2) 3,409,000 2,940,262
---------------
Total Convertible Corporate Bonds and Notes (Cost $11,941,500) 22,638,387
==========================================================================================================================
SHORT-TERM NOTES--10.5%
--------------------------------------------------------------------------------------------------------------------------
Associates Corp. of North America, 6.60%, 7/14/00 50,000,000 49,880,833
--------------------------------------------------------------------------------------------------------------------------
Coca-Cola Enterprises, Inc., 6.54%, 7/6/00 30,000,000 29,972,750
--------------------------------------------------------------------------------------------------------------------------
Edison International, 6.57%, 7/7/00 45,000,000 44,950,725
--------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 6.57%, 7/3/00 100,000,000 99,963,889
--------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.27%, 7/3/00 100,000,000 99,963,500
--------------------------------------------------------------------------------------------------------------------------
GE Capital International Funding, Inc.:
6.58%, 7/6/00 50,000,000 49,954,306
6.58%, 7/11/00 50,000,000 49,908,611
--------------------------------------------------------------------------------------------------------------------------
GE Capital Services Corp., 6.58%, 7/14/00 30,000,000 29,928,717
--------------------------------------------------------------------------------------------------------------------------
Heller Financial, Inc., 6.68%, 7/13/00 25,000,000 24,944,333
---------------
Total Short-Term Notes (Cost $479,467,664) 479,467,664
==========================================================================================================================
REPURCHASE AGREEMENTS--6.3%
--------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Deutsche Bank Securities Inc., 6.55%,
dated 6/30/00, to be repurchased at $286,301,187 on 7/3/00,
collateralized by U.S. Treasury Bonds, 6%-8.50%, 2/15/20-2/15/26,
with a value of $292,557,612 (Cost $286,145,000) 286,145,000 286,145,000
--------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,018,162,807) 99.9% 4,544,784,626
--------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.1 4,401,314
---------------------------------
NET ASSETS 100.0% $ 4,549,185,940
=================================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currency:
DEM--German Mark
1. Non-income-producing security.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $41,524,637 or 0.91% of the Fund's net
assets as of June 30, 2000.
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. For units
which represent debt securities, principal amount disclosed represents total
underlying principal.
4. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES Unaudited
<TABLE>
<CAPTION>
June 30, 2000
===================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $3,018,162,807)--see accompanying statement $ 4,544,784,626
-------------------------------------------------------------------------------------------------------------------
Cash 141,967
-------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 6,726,605
Interest and dividends 4,466,845
Investments sold 2,801,901
Other 350,648
-------------------
Total assets 4,559,272,592
===================================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of capital stock redeemed 3,501,003
Investments purchased 2,530,626
Distribution and service plan fees 2,280,437
Transfer and shareholder servicing agent fees 933,037
Shareholder reports 615,953
Directors' compensation 24,147
Other 201,449
-------------------
Total liabilities 10,086,652
===================================================================================================================
NET ASSETS $ 4,549,185,940
===================
===================================================================================================================
COMPOSITION OF NET ASSETS
Par value of shares of capital stock $ 33,072,461
-------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 2,823,563,726
-------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 11,403,144
-------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 154,524,731
-------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 1,526,621,878
-------------------
NET ASSETS $ 4,549,185,940
===================
</TABLE>
16 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 19
<TABLE>
===================================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$3,428,332,519 and 248,608,067 shares of capital stock outstanding) $13.79
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $14.63
-------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $964,878,086
and 70,741,426 shares of capital stock outstanding) $13.64
-------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $97,483,319
and 7,136,225 shares of capital stock outstanding) $13.66
-------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $58,492,016 and 4,238,896 shares of capital stock outstanding) $13.80
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 20
STATEMENTS OF OPERATIONS Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 2000
===================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 27,553,499
-------------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $46,726) 16,505,880
----------------
Total income 44,059,379
===================================================================================================================
EXPENSES
Management fees 11,484,871
-------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 3,302,543
Class B 5,118,711
Class C 428,637
-------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,749,432
Class B 543,976
Class C 45,900
Class Y 64,991
-------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 43,560
-------------------------------------------------------------------------------------------------------------------
Directors' compensation 41,801
-------------------------------------------------------------------------------------------------------------------
Other 941,475
-----------------
Total expenses 23,765,897
Less expenses paid indirectly (5,952)
-----------------
Net expenses 23,759,945
===================================================================================================================
NET INVESTMENT INCOME 20,299,434
===================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 118,730,091
Foreign currency transactions (1,391)
-----------------
Net realized gain 118,728,700
-------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 55,207,323
Translation of assets and liabilities denominated in foreign currencies (11,355)
-----------------
Net change 55,195,968
-----------------
Net realized and unrealized gain 173,924,668
===================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $194,224,102
=================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DEC. 31, 1999
===================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 20,299,434 $ 35,553,328
-------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 118,728,700 347,865,602
-------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 55,195,968 302,044,678
----------------------------------------------
Net increase in net assets resulting from operations 194,224,102 685,463,608
===================================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (14,833,424) (25,530,440)
Class B (147,898) (1,169,315)
Class C (66,926) (87,933)
Class Y (260,065) (526,019)
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (223,029,885)
Class B -- (82,260,938)
Class C -- (5,385,579)
Class Y -- (3,747,230)
===================================================================================================================
CAPITAL STOCK TRANSACTIONS
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from capital stock transactions:
Class A 141,833,354 329,538,222
Class B (231,532,985) (150,785,101)
Class C 18,178,722 12,461,790
Class Y 4,024,225 9,804,068
===================================================================================================================
NET ASSETS
Total increase 111,419,105 544,745,248
-------------------------------------------------------------------------------------------------------------------
Beginning of period 4,437,766,835 3,893,021,587
-----------------------------------------------
End of period (including undistributed net investment
income of $11,403,144 and $6,412,023, respectively) $4,549,185,940 $4,437,766,835
===============================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 22
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DEC. 31,
CLASS A (UNAUDITED) 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 13.25 $ 12.23 $ 11.00 $ 9.77 $ 9.35 $ 7.80
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .07 .14 .16 .16 .20 .23
Net realized and unrealized gain .53 2.01 2.09 2.49 1.63 2.09
--------------------------------------------------------------------
Total income from investment
operations .60 2.15 2.25 2.65 1.83 2.32
-------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.06) (.12) (.15) (.14) (.20) (.22)
Distributions from net realized gain -- (1.01) (.87) (1.28) (1.21) (.55)
--------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.06) (1.13) (1.02) (1.42) (1.41) (.77)
-------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.79 $13.25 $12.23 $11.00 $ 9.77 $9.35
====================================================================
===================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 4.54% 18.34% 21.16% 27.39% 19.73% 30.12%
===================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,428 $3,157 $2,594 $2,238 $1,827 $1,551
-------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $3,300 $2,757 $2,388 $2,045 $1,685 $1,394
-------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 1.11% 1.12% 1.31% 1.43% 1.96% 2.53%
Expenses 0.87% 0.87% 0.86%(3) 0.89%(3) 0.90%(3) 0.92%(3)
-------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 13% 34% 38% 92% 118% 85%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of operations),
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 less than one
full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 23
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DEC. 31,
CLASS B (UNAUDITED) 1999 1998 1997 1996 1995
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 13.10 $ 12.10 $ 10.89 $ 9.70 $ 9.29 $ 7.76
---------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .02 .04 .06 .07 .12 .15
Net realized and unrealized gain .52 1.98 2.08 2.45 1.62 2.08
---------------------------------------------------------------------
Total income from investment
operations .54 2.02 2.14 2.52 1.74 2.23
--------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.01) (.06) (.05) (.12) (.15)
Distributions from net realized gain -- (1.01) (.87) (1.28) (1.21) (.55)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (1.02) (.93) (1.33) (1.33) (.70)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.64 $ 13.10 $ 12.10 $ 10.89 $ 9.70 $ 9.29
=====================================================================
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 4.14% 17.37% 20.25% 26.17% 18.78% 29.03%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 965 $ 1,152 $ 1,202 $ 987 $ 755 $ 590
---------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 1,028 $ 1,196 $ 1,080 $ 878 $ 672 $ 511
---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 0.31% 0.32% 0.50% 0.62% 1.15% 1.70%
Expenses 1.67% 1.67% 1.67%(3) 1.71%(3) 1.71%(3) 1.75%(3)
---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 13% 34% 38% 92% 118% 85%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of operations), 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 less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 24
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DEC. 31,
CLASS C (UNAUDITED) 1999 1998 1997 1996 1995(1)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 13.13 $ 12.13 $ 10.92 $ 9.72 $ 9.33 $ 9.19
---------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .02 .04 .06 .07 .16 .07
Net realized and unrealized gain .52 1.98 2.08 2.46 1.57 .73
---------------------------------------------------------------------
Total income from investment
operations .54 2.02 2.14 2.53 1.73 .80
---------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.01) (.02) (.06) (.05) (.13) (.11)
Distributions from net realized gain -- (1.00) (.87) (1.28) (1.21) (.55)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.01) (1.02) (.93) (1.33) (1.34) (.66)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.66 $ 13.13 $ 12.13 $ 10.92 $ 9.72 $ 9.33
=====================================================================
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 4.11% 17.37% 20.20% 26.23% 18.67% 8.82%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $97 $76 $58 $37 $18 $2
---------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $86 $66 $47 $27 $8 $1
---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 0.31% 0.31% 0.50% 0.63% 1.05% 1.42%
Expenses 1.67% 1.68% 1.67%(4) 1.72%(4) 1.76%(4) 1.77%(4)
---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 13% 34% 38% 92% 118% 85%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of operations), 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 less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 25
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DEC. 31,
CLASS Y (UNAUDITED) 1999 1998 1997 1996 1995
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 13.26 $ 12.24 $ 11.00 $ 9.77 $ 9.35 $ 7.80
---------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .08 .17 .17 .18 .23 .20
Net realized and unrealized gain .52 2.00 2.10 2.48 1.61 2.13
---------------------------------------------------------------------
Total income from investment
operations .60 2.17 2.27 2.66 1.84 2.33
---------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.06) (.14) (.16) (.15) (.21) (.23)
Distributions from net realized gain -- (1.01) (.87) (1.28) (1.21) (.55)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.06) (1.15) (1.03) (1.43) (1.42) (.78)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.80 $ 13.26 $ 12.24 $ 11.00 $ 9.77 $ 9.35
=====================================================================
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 4.56% 18.53% 21.33% 27.53% 19.88% 30.23%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $58 $52 $39 $27 $18 $7
---------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $55 $47 $34 $22 $13 $4
---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 1.18% 1.32% 1.39% 1.60% 2.08% 2.51%
Expenses 0.80% 0.67% 0.80%(3) 0.74%(3) 0.77%(3) 0.87%(3)
---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 13% 34% 38% 92% 118% 85%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of operations), 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 less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS Unaudited
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Total Return Fund, Inc. (the Fund) 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 high total return. 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 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.
24 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 27
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
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.
25 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. CAPITAL STOCK
The Fund has authorized 450 million, 200 million, 200 million and 10 million
shares of $.10 par value Class A, Class B, Class C and Class Y capital stock,
respectively. Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 2000 YEAR ENDED DECEMBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
================================================================================================================
<S> <C> <C> <C> <C>
CLASS A
Sold 31,046,601 $ 421,402,868 38,779,624 $ 500,033,094
Dividends and/or distributions
reinvested 973,906 13,210,380 19,101,991 234,710,226
Redeemed (21,710,662) (292,779,894) (31,642,249) (405,205,098)
--------------------------------------------------------------------------
Net increase 10,309,845 $ 141,833,354 26,239,366 $ 329,538,222
==========================================================================
----------------------------------------------------------------------------------------------------------------
CLASS B
Sold 7,891,755 $ 105,458,327 13,846,247 $ 175,056,306
Dividends and/or distributions
reinvested 10,162 136,502 6,611,034 80,167,708
Redeemed (25,115,964) (337,127,814) (31,792,050) (406,009,115)
--------------------------------------------------------------------------
Net decrease (17,214,047) $(231,532,985) (11,334,769) $(150,785,101)
==========================================================================
----------------------------------------------------------------------------------------------------------------
CLASS C
Sold 2,192,964 $ 29,342,247 2,517,651 $ 31,966,080
Dividends and/or distributions
reinvested 4,973 66,338 431,425 5,244,298
Redeemed (842,568) (11,229,863) (1,956,338) (24,748,588)
--------------------------------------------------------------------------
Net increase 1,355,369 $ 18,178,722 992,738 $ 12,461,790
==========================================================================
----------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 1,872,692 $ 25,447,134 2,101,137 $ 26,918,940
Dividends and/or distributions
reinvested 19,148 260,065 347,285 4,273,249
Redeemed (1,609,187) (21,682,974) (1,668,891) (21,388,121)
--------------------------------------------------------------------------
Net increase 282,653 $ 4,024,225 779,531 $ 9,804,068
==========================================================================
</TABLE>
26 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 29
================================================================================
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended June 30, 2000, were
$490,371,818 and $654,936,519, respectively.
================================================================================
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 for a fee of 0.75% of
the first $100 million of average annual net assets of the Fund, 0.70% of the
next $100 million, 0.65% of the next $100 million, 0.60% of the next $100
million, 0.55% of the next $100 million and 0.50% of average annual net assets
in excess of $500 million. The Fund's management fee for the six months ended
June 30, 2000 was an annualized rate of 0.52%, before any waiver by the Manager
if applicable.
--------------------------------------------------------------------------------
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
SIX MONTHS ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
====================================================================================================
<S> <C> <C> <C> <C> <C>
June 30, 2000 $2,083,068 $753,435 $81,717 $2,633,892 $189,143
</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
SIX MONTHS ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
====================================================================================================
<S> <C> <C> <C>
June 30, 2000 $3,905 $728,881 $12,390
</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.
27 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS Unaudited / 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 six months ended June 30, 2000, payments
under the Class A plan totaled $3,302,543, all of which were paid by the
Distributor to recipients, and included $269,280 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 A and Class B 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 carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended June 30,
2000, were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $5,118,711 $4,020,247 $7,301,224 0.76%
Class C Plan 428,637 132,728 946,176 0.97
</TABLE>
28 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 31
===============================================================================
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 for operational purposes and to seek to protect against
adverse exchange rate fluctuations. 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 foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. 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
foreign currency transactions. 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
where applicable.
===============================================================================
6. 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 six months ended June
30, 2000.
29 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 32
OPPENHEIMER TOTAL RETURN FUND, INC.
================================================================================
OFFICERS AND DIRECTORS James C. Swain, Director and Chairman of the Board
Bridget A. Macaskill, Director and President
William L. Armstrong, Director
Robert G. Avis, Director
William A. Baker, Director
George C. Bowen, Director
Edward L. Cameron, Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Bruce L. Bartlett, Vice President
John P. Doney, Vice President
Andrew J. Donohue, Vice President and 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 Deloitte & Touche llp
================================================================================
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been
taken from the records of the Fund without
examination of those records 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 other
material information concerning the Funds, see the
Prospectus.
SHARES OF OPPENHEIMER FUNDS ARE NOT DEPOSITS OR
OBLIGATIONS OF ANY BANK, ARE NOT GUARANTEED BY ANY
BANK, ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY, AND INVOLVE INVESTMENT RISKS, INCLUDING
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.
30 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 33
OPPENHEIMER FUNDS 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
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
===============================================================================================
FIXED INCOME
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
================================================================================================
MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
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.
31 OPPENHEIMER TOTAL RETURN FUND, INC.
<PAGE> 34
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE> 35
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE> 36
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 8:00am-9pm ET,
Sat 10am-4pm ET
1.800.525.7048
TELEPHONE TRANSACTIONS
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1.800.835.3104
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270,
Denver, CO 80217-5270
TICKER SYMBOLS
Class A: OPTRX
Class B: OTRBX
Class C: OTRCX
Class Y: OTRYX
1. At times, this website may be inaccessible or its transaction feature may be
unavailable.
[OPPENHEIMERFUNDS LOGO]
RS0420.001.0600 August 29, 2000
