<PAGE> 1
OPPENHEIMER VALUE STOCK FUND
SEMI-ANNUAL REPORT JUNE 30, 1994
(OPPENHEIMERFUNDS(R) LOGO)
[PHOTO #1 -- SEE EDGAR APPENDIX]
"I WANT HER TO HAVE EVERYTHING
MY PARENTS GAVE ME.
"THIS FUND GIVES US THE POTENTIAL
FOR THE KIND OF LONG-TERM GROWTH
WE NEED."
<PAGE> 2
FUND FACTS
IN THIS REPORT:
ANSWERS TO TWO TIMELY QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
* DID THE FEDERAL RESERVE'S MOVES TO RAISE SHORT-TERM INTEREST RATES AFFECT
THE FUND'S INVESTMENT STRATEGY?
* WHERE ARE THE BEST INVESTMENT OPPORTUNITIES LIKELY TO BE FOUND GOING FORWARD?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER VALUE STOCK FUND
- -------------------------------------------------------------------------------
1 The Fund's objective is to seek long-term growth of
capital and income, primarily through investments in
the stocks of well-established companies.
- -------------------------------------------------------------------------------
2 Total return at net asset value for Class A shares
for the 6-month period ended June 30, 1994 was -0.59%.
Total return at net asset value for Class B shares
for the same period was -0.92%.(1)
- -------------------------------------------------------------------------------
3 Average annual total returns for Class A shares for the
1- and 5-year periods ended June 30, 1994 and since
inception on December 22, 1986 were -2.83%, 8.66%,
and 9.15%, respectively. For Class B shares, average
annual total returns for the 1-year period ended June
30, 1994 and since inception on May 1, 1993 were -2.73%
and -0.28%, respectively.(2)
- -------------------------------------------------------------------------------
4 Your Fund's managers use a value investment strategy,
purchasing stocks that they believe are priced
significantly below their normal levels and selling
stocks that they believe have reached or exceeded normal
valuations.
- -------------------------------------------------------------------------------
5 The Fund's top five stock holdings on June 30, 1994
were:(3)
AMP, INC.
GENERAL ELECTRIC CO.
MINNESOTA MINING & MANUFACTURING CO.
PFIZER, INC.
BRISTOL-MYERS SQUIBB CO.
- -------------------------------------------------------------------------------
6 Our outlook for Value Stock Fund remains Positive.
We believe the U.S. economy is growing at a moderate
pace and inflation will remain subdued. This should
translate into good performance for the U.S. stock
market."
Portfolio Manager David Salerno, Concert
Capital Management, Inc., the Fund's
Sub-Advisor
(1) Based on the change in net asset value per share for the periods shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
(2) Average annual total returns are based on a hypothetical investment held
until 6/30/94, after deducting the maximum initial sales charge of 5.75% for
Class A shares and the contingent deferred sales charge of 5% (1-year) and 4%
(since inception) for Class B shares. The Fund's maximum sales charge rate for
Class A shares was lower during a portion of some of the periods shown, and
actual investment results will be different as a result of the change.
(3) The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment return 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.
2 Oppenheimer Value Stock Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
ABOVE-AVERAGE
TOTAL RETURN
Total return for 1-year period
ended June 30, 1994
<TABLE>
- ----------------------------------------
<S> <C>
Oppenheimer 3.09%
Value Stock Fund A(5)
(at NAV)
- ----------------------------------------
Oppenheimer 2.27%
Value Stock Fund B(5)
(at NAV)
- ----------------------------------------
Lipper growth 2.01%
& income funds
average(4)
</TABLE>
We are pleased to bring you the semi-annual report for Oppenheimer Value Stock
Fund. The past six months have been challenging for U.S. investors. From
February through mid-May, the Federal Reserve Board raised short-term interest
rates four times and the financial markets interpreted these moves as a sign
that inflation would return; thus, they reacted strongly. Throughout the
spring, the stock market experienced volatility as conflicting economic reports
caused investor anxiety. However, recent data seems to indicate inflation is
not increasing and the U.S. economy continues to grow at a modest pace.
Your Fund weathered the period, outperforming
the average growth fund for the year ended June 30, 1994.(4) Fund managers
delivered these returns by sticking to a value strategy--purchasing stocks
whose prices appeared to have dropped below normal valuations and selling
stocks they believed had reached or exceeded normal value. In addition, your
managers invested in quality companies whose stocks tend to perform well in an
uncertain economy.
Fund managers found value opportunities in
the financial services sector and bought stocks of companies performing
well in the current volatile environment. They purchased stock in Bank
of New York, and they added to the Fund's holdings in SAFECO, a
property/casualty insurer and American Express.
Your managers also found opportunities in the
agricultural sector. Following last year's floods, U.S. farmers are
expected to increase plantings; therefore, your managers invested in
Pioneer Hi-Bred International, the nation's leading supplier of seed
corn to farmers, and Archer-Daniels-Midland, a grain processing company.
In addition, telecommunications companies
provided growth opportunities for the Fund. One new investment is
Rochester Telephone, a provider of local telephone service in twenty-one
states with strong positions in the cellular and long-distance
businesses. The sector also provided opportunities for your managers to
sell stocks they believed were overvalued. They sold the Fund's
holdings in Bell Atlantic as the excitement surrounding the information
"superhighway" drove the stock price to unrealistic levels.
Our outlook for Value Stock Fund is positive.
Although stock prices may experience short-term price fluctuations, the
U.S. economy should continue to grow at a slow, sustainable pace, with
low inflation--the conditions which have led to strong stock market
performance in the past. Thank you for your continued trust in
Oppenheimer Value Stock Fund. We look forward to serving your investment
needs in the years to come.
<TABLE>
<S> <C>
/s/ JAMES C. SWAIN /s/ JON S. FOSSEL
- ---------------------------------- -------------------------------
James C. Swain Jon S. Fossel
Chairman, Oppenheimer Integrity Funds Chairman, Oppenheimer Integrity Funds
for Oppenheimer Value Stock Fund for Oppenheimer Value Stock Fund
</TABLE>
July 22, 1994
(4) Source: Lipper Analytical Services, an independent mutual fund monitoring
service, 6/30/94. The Lipper total return average for the 1-year period ended
June 30, 1994 was for 305 growth and income funds. The average includes
reinvestment of dividends and capital gains distributions, and is shown for
comparative purposes only. Oppenheimer Value Stock Fund is characterized by
Lipper as a growth and income fund. Lipper performance does not take sales
charges into consideration.
(5) See footnote 1, page 2.
3 Oppenheimer Value Stock Fund
<PAGE> 4
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
=====================================================================================================================
<S> <C> <C> <C>
SHORT-TERM NOTES--10.5%
- ---------------------------------------------------------------------------------------------------------------------
Detroit Edison Co., 4.55%, 7/7/94 $1,775,000 $ 1,773,654
------------------------------------------------------------------------------------
Indiana Michigan Power Co., 4.50%, 7/8/94 1,725,000 1,723,491
------------------------------------------------------------------------------------
Mattel Inc., 4.43%, 7/1/94 1,590,000 1,590,000
------------------------------------------------------------------------------------
Texas Utilities Electric Co., 4.50%, 7/6/94 1,985,000 1,983,759
------------------------------------------------------------------------------------
TJX Cos., Inc., 4.43%, 7/5/94 1,150,000 1,149,434
------------------------------------------------------------------------------------
Western Resources Inc., 4.50%, 7/14/94 1,945,000 1,941,839
------------
Total Short-Term Notes (Cost $10,155,224) 10,162,177
SHARES
=====================================================================================================================
COMMON STOCKS--89.6%
- ---------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--9.4%
- ---------------------------------------------------------------------------------------------------------------------
ALUMINUM--0.9% Reynolds Metals Co. 19,000 912,000
- ---------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.0% Du Pont (E.I.) De Nemours & Co. 21,500 1,255,062
------------------------------------------------------------------------------------
Eastman Chemical Co. 35,000 1,671,250
------------
2,926,312
- ---------------------------------------------------------------------------------------------------------------------
CHEMICALS: SPECIALITY--1.8% Lubrizol Corp. (The) 25,000 856,250
------------------------------------------------------------------------------------
Nalco Chemical Co. 27,200 867,000
------------
1,723,250
- ---------------------------------------------------------------------------------------------------------------------
METAL: MISCELLANEOUS--0.8% Phelps Dodge Corp. 14,000 798,000
- ---------------------------------------------------------------------------------------------------------------------
PAPER AND FOREST Westvaco Corp. 30,000 922,500
PRODUCTS--2.9% ------------------------------------------------------------------------------------
Weyerhaeuser Co. 29,600 1,184,000
------------------------------------------------------------------------------------
Willamette Industries, Inc. 15,300 654,075
------------
2,760,575
- ---------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--14.9%
- ---------------------------------------------------------------------------------------------------------------------
AUTOMOBILES--1.7% Ford Motor Co. 27,500 1,622,500
- ---------------------------------------------------------------------------------------------------------------------
AUTO PARTS: AFTER MARKET--3.2% Genuine Parts Co. 49,500 1,788,187
------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 37,500 1,350,000
------------
3,138,187
- ---------------------------------------------------------------------------------------------------------------------
HARDWARE AND TOOLS--1.2% Stanley Works (The) 28,900 1,163,225
- ---------------------------------------------------------------------------------------------------------------------
LEISURE TIME--1.1% Eastman Kodak Co. 21,000 1,010,625
- ---------------------------------------------------------------------------------------------------------------------
PUBLISHING--3.1% Dun & Bradstreet Corp. (The) 30,000 1,665,000
------------------------------------------------------------------------------------
McGraw-Hill, Inc. 20,500 1,363,250
------------
3,028,250
</TABLE>
4 Oppenheimer Value Stock Fund
<PAGE> 5
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL STORES: DEPARTMENT May Department Stores Co. 44,000 $1,727,000
STORES--1.8%
- ---------------------------------------------------------------------------------------------------------------------
RETAIL STORES: GENERAL K Mart Corp. 30,500 472,750
MERCHANDISE CHAINS--1.5% ------------------------------------------------------------------------------------
Penney (J.C.) Co., Inc. 19,000 1,030,750
------------
1,503,500
- ---------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--0.2% Rite Aid Corp. 8,500 172,125
- ---------------------------------------------------------------------------------------------------------------------
TEXTILES: APPAREL V.F. Corp. 23,000 1,092,500
MANUFACTURERS--1.1%
- ---------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--12.0%
- ---------------------------------------------------------------------------------------------------------------------
BEVERAGES: ALCOHOLIC--1.2% Brown-Forman Corp., Cl.B 42,200 1,192,150
- ---------------------------------------------------------------------------------------------------------------------
DRUGS--2.3% Pfizer, Inc. 35,000 2,209,375
- ---------------------------------------------------------------------------------------------------------------------
FOOD PROCESSING--4.0% Archer-Daniels-Midland Co. 27,500 639,375
------------------------------------------------------------------------------------
CPC International, Inc. 31,500 1,519,875
------------------------------------------------------------------------------------
Gerber Products Co. 17,500 892,500
------------------------------------------------------------------------------------
Pioneer Hi-Bred International, Inc. 25,500 835,125
------------
3,886,875
- ---------------------------------------------------------------------------------------------------------------------
HEALTHCARE: DIVERSIFIED--2.2% Bristol-Myers Squibb Co. 40,000 2,145,000
- ---------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--0.9% Clorox Co. (The) 18,300 894,412
- ---------------------------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS--1.4% Becton, Dickinson & Co. 33,000 1,348,875
- ---------------------------------------------------------------------------------------------------------------------
ENERGY--8.1%
- ---------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED DOMESTIC--1.3% Atlantic Richfield Co. 9,000 919,125
------------------------------------------------------------------------------------
USX-Marathon Group 18,500 309,875
------------
1,229,000
- ---------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED Amoco Corp. 37,500 2,137,500
INTERNATIONAL--6.8% ------------------------------------------------------------------------------------
Chevron Corp. 45,000 1,884,375
------------------------------------------------------------------------------------
Mobil Corp. 20,000 1,632,500
------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 9,000 941,625
------------
6,596,000
- ---------------------------------------------------------------------------------------------------------------------
FINANCIAL--11.8%
- ---------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: American Express Co. 45,500 1,171,625
MISCELLANEOUS--1.3% ------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 8,800 133,100
------------
1,304,725
- ---------------------------------------------------------------------------------------------------------------------
INSURANCE: LIFE--1.0% Jefferson-Pilot Corp. 19,850 967,688
- ---------------------------------------------------------------------------------------------------------------------
INSURANCE: MULTI-LINE--1.0% Unitrin, Inc. 24,000 960,000
- ---------------------------------------------------------------------------------------------------------------------
INSURANCE: PROPERTY SAFECO Corp. 36,000 2,002,500
AND CASUALTY--2.1%
</TABLE>
5 Oppenheimer Value Stock Fund
<PAGE> 6
STATEMENT OF INVESTMENT (Unaudited)(Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
MAJOR BANKS: REGIONAL--4.8% Comerica, Inc. 51,500 $1,454,875
------------------------------------------------------------------------------------
CoreStates Financial Corp. 56,000 1,442,000
------------------------------------------------------------------------------------
Norwest Corp. 36,500 953,562
------------------------------------------------------------------------------------
Wachovia Corp. 26,540 879,138
------------
4,729,575
- ---------------------------------------------------------------------------------------------------------------------
MONEY CENTER BANKS--1.6% Bank of New York, Inc. 52,500 1,515,937
- ---------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--15.6%
- ---------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES--0.9% Donnelley (R.R.) & Sons Co. 32,000 888,000
- ---------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--8.5% AMP, Inc. 41,500 2,873,875
------------------------------------------------------------------------------------
General Electric Co. 61,000 2,844,125
------------------------------------------------------------------------------------
Grainger (W.W.), Inc. 21,300 1,360,537
------------------------------------------------------------------------------------
Hubbell, Inc., Cl.B 21,721 1,205,516
------------
8,284,053
- ---------------------------------------------------------------------------------------------------------------------
MANUFACTURING: DIVERSIFIED Crane Co. 9,000 237,375
INDUSTRIALS--4.8% ------------------------------------------------------------------------------------
Dover Corp. 18,500 1,089,188
------------------------------------------------------------------------------------
General Signal Corp. 37,500 1,237,500
------------------------------------------------------------------------------------
Harsco Corp. 22,500 922,500
------------------------------------------------------------------------------------
Parker-Hannifin Corp. 27,500 1,172,187
------------
4,658,750
- ---------------------------------------------------------------------------------------------------------------------
RAILROADS--1.4% Norfolk Southern Corp. 22,000 1,386,000
- ---------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--12.1%
- ---------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--3.7% Boeing Co. (The) 20,500 948,125
------------------------------------------------------------------------------------
Lockheed Corp. 21,500 1,405,562
------------------------------------------------------------------------------------
Rockwell International Corp. 15,500 579,313
------------------------------------------------------------------------------------
TRW, Inc. 10,500 677,250
------------
3,610,250
- ---------------------------------------------------------------------------------------------------------------------
COMPUTER SYSTEMS--0.8% International Business Machines Corp. 12,500 734,375
- ---------------------------------------------------------------------------------------------------------------------
ELECTRONICS: Hewlett-Packard Co. 26,300 1,982,362
INSTRUMENTATION--2.0%
- ---------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT AND Minnesota Mining and Manufacturing Co. 45,000 2,227,500
SUPPLIES--5.6% ------------------------------------------------------------------------------------
Pitney Bowes, Inc. 53,000 2,027,250
------------------------------------------------------------------------------------
Xerox Corp. 12,500 1,221,875
------------
5,476,625
</TABLE>
6 Oppenheimer Value Stock Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
UTILITIES--5.7%
- ---------------------------------------------------------------------------------------------------------------------
ELECTRIC COS.--2.3% Niagara Mohawk Power Corp. 56,500 $ 854,562
------------------------------------------------------------------------------------
NIPSCO Industries, Inc. 23,500 693,250
------------------------------------------------------------------------------------
SCANA Corp. 16,000 686,000
------------
2,233,812
- ---------------------------------------------------------------------------------------------------------------------
NATURAL GAS--0.8% Consolidated Natural Gas Co. 20,500 773,875
- ---------------------------------------------------------------------------------------------------------------------
TELEPHONE --2.6% Ameritech Corp. 23,000 879,753
------------------------------------------------------------------------------------
Rochester Telephone Corp. 42,200 954,775
------------------------------------------------------------------------------------
Southern New England Telecommunications Corp. 23,000 701,500
------------
2,536,028
------------
Total Common Stocks (Cost $74,025,176) 87,124,291
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $84,180,400) 100.1% 97,286,468
- ---------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1) (104,690)
------ ------------
NET ASSETS 100.0% $97,181,778
====== ============
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Value Stock Fund
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES June 30, 1994 (Unaudited)
<TABLE>
=====================================================================================================================
<S> <C> <C>
ASSETS Investments, at value
(cost $84,180,400)--see accompanying statement $97,286,468
------------------------------------------------------------------------------------
Receivables:
Dividends and interest 218,160
Shares of beneficial interest sold 54,210
Investments sold 53,388
------------------------------------------------------------------------------------
Other 16,954
-----------
Total assets 97,629,180
=====================================================================================================================
LIABILITIES Bank overdraft 41,341
------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 146,281
Investments purchased 60,947
Distribution and service plan fees--Note 4 59,654
Deferred trustee fees--Note 5 4,762
Other 134,417
-----------
Total liabilities 447,402
=====================================================================================================================
NET ASSETS $97,181,778
-----------
=====================================================================================================================
COMPOSITION OF Paid-in capital 82,444,918
NET ASSETS ------------------------------------------------------------------------------------
Undistributed net investment income 89,044
------------------------------------------------------------------------------------
Accumulated net realized gain from investment transactions 1,541,748
------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 13,106,068
Net assets $97,181,778
===========
=====================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on
net assets of $89,456,917 and 6,298,434
shares of beneficial interest outstanding) $14.20
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $15.07
------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $7,724,861 and 546,342 shares of
beneficial interest outstanding) $14.14
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Value Stock Fund
<PAGE> 9
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1994 (Unaudited)
<TABLE>
=====================================================================================================================
<S> <C>
INVESTMENT INCOME Dividends $1,423,751
------------------------------------------------------------------------------------
Interest 186,736
-----------
Total income 1,610,487
=====================================================================================================================
EXPENSES Management fees--Note 4 361,204
------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 110,294
Class B--Note 4 30,481
------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 92,722
------------------------------------------------------------------------------------
Shareholder reports 48,789
------------------------------------------------------------------------------------
Custodian fees and expenses 11,236
------------------------------------------------------------------------------------
Legal and auditing fees 10,970
------------------------------------------------------------------------------------
Trustees' fees and expenses 5,364
------------------------------------------------------------------------------------
Registration and filing fees:
Class A 43
Class B 1,146
------------------------------------------------------------------------------------
Other 23,841
-----------
Total expenses 696,090
=====================================================================================================================
NET INVESTMENT INCOME 914,397
=====================================================================================================================
REALIZED AND UNREALIZED Net realized gain on investments 1,541,748
GAIN (LOSS) ON INVESTMENTS
------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation on investments (3,013,173)
-----------
Net realized and unrealized loss on investments (1,471,425)
=====================================================================================================================
NET DECREASE IN NET ASSETS
RESULTING FORM OPERATIONS $ (557,028)
===========
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Value Stock Fund
<PAGE> 10
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1994 December 31,
(Unaudited) 1993
=====================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 914,397 $ 1,598,257
------------------------------------------------------------------------------------
Net realized gain on investments 1,541,748 4,772,844
------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation on investments (3,013,173) (52,118)
---------- -----------
Net increase (decrease) in net assets
resulting from operations (557,028) 6,318,983
=====================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.126 and $.288 per share,
SHAREHOLDERS respectively) (788,559) (1,573,023)
Class B ($.079 and $.166 per share,
respectively) (36,589) (33,142)
------------------------------------------------------------------------------------
Distributions from net realized
gain on investments:
Class A ($.76 per share) -- (4,515,011)
Class B ($.76 per share) -- (258,413)
=====================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions--Note 2 267,221 30,973,434
------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B
beneficial interest transactions--Note 2 2,668,513 5,339,170
=====================================================================================================================
NET ASSETS Total increase 1,553,558 36,251,998
------------------------------------------------------------------------------------
Beginning of period 95,628,220 59,376,222
----------- -----------
End of period (including undistributed net
investment income of $89,785 and $225,
respectively) $97,181,778 $95,628,220
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Value Stock Fund
<PAGE> 11
Financial Highlights
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1994 DECEMBER 31, JUNE 30, 1994 DECEMBER 31,
(UNAUDITED) 1993 1992 1991(2) 1990 1989 (UNAUDITED) 1993(1)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $14.41 $14.19 $13.57 $11.39 $12.08 $10.47 $14.35 $14.60
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .14 .29 .32 .33 .37 .40 .05 .17
Net realized and unrealized
gain (loss) on investments (.22) .98 .97 2.49 (.57) 1.87 (.18) .51
------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations (.08) 1.27 1.29 2.82 (.20) 2.27 (.13) .68
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.13) (.29) (.32) (.33) (.39) (.41) (.08) (.17)
Distributions from net
realized gain on
investments -- (.76) (.35) (.31) (.10) (.25) -- (.76)
------- ------- ------- ------- ------- ------- ------- -------
Total dividends and
distributions to
shareholders (.13) (1.05) (.67) (.64) (.49) (.66) (.08) (.93)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $14.20 $14.41 $14.19 $13.57 $11.39 $12.08 $14.14 $14.35
------- ------- ------- -------- ------- ------- ------- -------
================================================================================================================================
TOTAL RETURN, AT NET ASSET
VALUE(3) (.59)% 8.97% 9.61% 25.23% (1.53)% 21.93% (.92)% 4.63%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period,
(in thousands) $89,457 $90,470 $59,376 $49,381 $40,153 $37,713 $7,725 $5,158
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $90,054 $80,299 $53,485 $45,581 $39,104 $33,742 $6,149 $2,527
- --------------------------------------------------------------------------------------------------------------------------------
Number of shares
outstanding at end
of period (in thousands) 6,298 6,280 4,184 3,639 3,526 3,122 546 359
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average
net assets:
Net investment income 1.97%(4) 1.97% 2.34% 2.59% 3.22% 3.51% 1.20%(4) .97%(4)
Expenses, before
voluntary reimbursement 1.41%(4) 1.24% 1.19% 1.31% 1.36% 1.40% 2.19%(4) 2.14%(4)
Expenses, net of
voluntary reimbursement N/A N/A N/A 1.26% 1.30% 1.30% N/A N/A
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover
rate(5) 9.19% 24.3% 12.3% 14.5% 13.5% 14.9% 9.19% 24.3%
</TABLE>
(1) For the period from May 1, 1993 (inception of offering) to December 31,
1993.
(2) On March 28, 1991, Oppenheimer Management Corporation became the investment
advisor to the Fund.
(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.
(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 six months ended June 30, 1994 were $11,004,217 and $7,909,461,
respectively. See accompanying Notes to Financial Statements.
11 Oppenheimer Value Stock Fund
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS (Unaudited)
<TABLE>
<S> <C>
=================================================================================================================================
1. SIGNIFICANT ACCOUNTING Oppenheimer Value Stock Fund (the Fund) is a separate fund of Oppenheimer Integrity Funds, a
POLICIES diversified, open-end management investment company registered under the Investment Company Act
of 1940, as amended. The Fund's investment advisor is Oppenheimer Management Corporation (the
Manager). The Fund offers both Class A and Class B shares. Class A shares are sold with a front-
end sales charge. Class B shares may be subject to a contingent deferred sales charge. Both
classes of shares have identical rights to earnings, assets and voting privileges, except that
each class has its own distribution and/or service plan, expenses directly attributable to a
particular class and exclusive voting rights with respect to matters affecting a single class.
Class B shares will automatically convert to Class A shares six years after the date of
purchase. The following is a summary of significant accounting policies consistently followed by
the Fund.
------------------------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at 4:00 p.m. (New York time) 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. Short-term 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. Securities for
which market quotes are not readily available are valued under procedures established by the
Board of Trustees to determine fair value in good faith.
------------------------------------------------------------------------------------------------
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.
------------------------------------------------------------------------------------------------
FEDERAL INCOME 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 tax provision is required.
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are recorded on the
ex-dividend date.
------------------------------------------------------------------------------------------------
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective January 1, 1994, the Fund
adopted Statement of Position 93-2: Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. As a result, the Fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, subsequent to December 31, 1993, amounts
have been reclassified to reflect a decrease in paid-in capital of $42,792, a decrease in
undistributed net investment income of $430, and an increase in undistributed capital gain on
investments of $43,222.
------------------------------------------------------------------------------------------------
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. 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.
</TABLE>
12 Oppenheimer Value Stock Fund
<PAGE> 13
<TABLE>
<S> <C>
=============================================================================================================================
2. SHARES OF The Fund has authorized an unlimited number of no par value shares of beneficial interest of
BENEFICIAL INTEREST each class. Transactions in shares of beneficial interest were as follows:
</TABLE>
<TABLE>
<CAPTION> SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 (UNAUDITED) DECEMBER 31, 1993(1)
------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 354,692 $5,108,514 2,167,501 $19,481,793
Issued in connection
with the acquisition
of Oppenheimer Blue
Chip Fund--Note 6 -- -- 1,356,899 20,149,959
Dividends and
distributions reinvested 54,394 776,700 379,876 5,528,826
Redeemed (390,590) (5,617,994) (1,808,202) (14,187,144)
-------- ---------- ---------- -----------
Net increase 18,496 $267,220 2,096,074 $30,973,434
======== ========== ========== ===========
------------------------------------------------------------------------------------------------
Class B:
Sold 224,546 $3,204,583 357,108 $ 5,313,077
Dividends and
distributions reinvested 2,375 33,731 18,763 270,609
Redeemed (40,049) (569,801) (16,401) (244,516)
-------- ---------- ---------- -----------
Net increase 186,872 $2,668,513 359,470 $ 5,339,170
======== ========== ========== ===========
</TABLE>
<TABLE>
<S> <C>
1. For the year ended December 31, 1993 for Class A shares and for the period
from May 1, 1993 (inception of offering) to December 31, 1993 for Class B shares.
=============================================================================================================================
3. UNREALIZED GAINS AND At June 30, 1994, net unrealized appreciation on investments of $13,106,068 was composed of
LOSSES ON INVESTMENTS gross appreciation of $15,228,373, and gross depreciation of $2,122,305.
=============================================================================================================================
4. MANAGEMENT FEES Management fees paid to the Manager were in accordance with the investment advisory agreement
AND OTHER TRANSACTIONS with the Fund which provides for an annual fee of .75% on the first $100 million of net assets
WITH AFFILIATES with a reduction of .03% on each $200 million thereafter, to .66% 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 applicable regulatory limit on Fund expenses.
For the six months ended June 30, 1994, commissions (sales charges paid by investors) on
sales of Class A shares totaled $101,730, of which $70,560 was retained by Oppenheimer Funds
Distributor, Inc., (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated
broker/dealer. During the six months ended June 30, 1994, OFDI received contingent deferred sales
charges of $4,051 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, each class may expend up to .25% of its net assets annually
to reimburse OFDI for costs incurred in connection with the personal service and maintenance of
accounts that hold shares of the Fund, including amounts paid to brokers, dealers, banks and other
financial institutions. 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 Trustees may allow the Fund to continue payment of the asset-based sales
charge to OFDI for distribution expenses incurred in Class B shares sold prior to termination or
discontinuance of the plan. During the six months ended June 30, 1994, OFDI paid $78,704 to an
affiliated broker/dealer as reimbursement for Class A personal service and maintenance expenses and
retained $29,654 as reimbursement for Class B sales commissions and service Fee advances, as well as
financing costs.
=============================================================================================================================
5. DEFERRED A former trustee elected to defer receipt of fees earned. These deferred fees earn interest at a
TRUSTEE rate determined by the current Board of Trustees at the beginning of each calendar year,
COMPENSATION compounded each quarter-end. As of June 30, 1994, the Fund was incurring interest at a rate of
6.01% per annum. Deferred fees are payable in annual installments, with accrued interest, each
April 1 through 1995.
</TABLE>
13 Oppenheimer Value Stock Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
<TABLE>
=================================================================================================================================
<S> <C>
6. ACQUISITION On March 26, 1993, the Fund acquired all of the net assets of Oppenheimer Blue Chip Fund
OF OPPENHEIMER (Blue Chip), Blue Chip Fund pursuant to an Agreement and Plan of Reorganization approved by
BLUE CHIP FUND the shareholders on January 28, 1993. The Fund issued 1,356,899 shares of beneficial interest,
valued at $20,149,959, in exchange for the net assets, resulting in combined net assets of
$83,976,756 on March 26, 1993. The net assets acquired included net unrealized appreciation
of $2,523,063. The exchange was tax-free.
</TABLE>
14 Oppenheimer Value Stock Fund
<PAGE> 15
OPPENHEIMER VALUE STOCK FUND
A SERIES OF OPPENHEIMER INTEGRITY FUNDS
<TABLE>
<S> <C>
=================================================================================================================================
OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
David B. Salerno, 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
=================================================================================================================================
SUB-ADVISOR Concert Capital Management, Inc.
=================================================================================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
=================================================================================================================================
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
=================================================================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
=================================================================================================================================
INDEPENDENT AUDITORS Deloitte & Touche
=================================================================================================================================
LEGAL COUNSEL Myer, Swanson & Adams, 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 Value Stock Fund. This
report must be preceded or accompanied by a Prospectus of Oppenheimer Value Stock
Fund. For material information concerning the Fund, see the Prospectus.
</TABLE>
15 Oppenheimer Value Stock Fund
<PAGE> 16
"HOW MAY I HELP YOU?"
[PHOTO #2 -- SEE EDGAR APPENDIX]
"Just as OppenheimerFunds offers over 30 different mutual funds designed to
help meet virtually every investment need, Oppenheimer Shareholder Services
offers a variety of services to satisfy your individual needs. Whenever you
require help, we're only a toll- free phone call away.
"For personalized assistance and account information, call
our General Information number to speak with our knowledgeable Customer Service
Representatives and get the help you need.
"When you want to make account transactions, it's easy for
you to redeem shares, exchange shares, or conduct AccountLink transactions,
simply by calling our Telephone Transactions number.
"And for added convenience, OppenheimerFunds' PhoneLink,
an automated voice response system is available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. You can even make purchases, exchanges and redemptions using your
touch-tone phone. Of course, PhoneLink will always give you the option to speak
with a Customer Service Representative during the hours shown to the left.
"When you invest in OppenheimerFunds, you know you'll
receive a high level of customer service. The International Customer Service
Association knows it, too, as it awarded Oppenheimer Shareholder Services a
1993 Award of Excellence for consistently demonstrating superior customer
service.
"Whatever your needs, we're ready to assist you."
(1993 AWARD OF EXCELLENCE INTERNATIONAL CUSTOMER SERVICE ASSOCIATION LOGO)
GENERAL INFORMATION
1-800-525-7048
Talk to a Customer Service
Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and
Saturday from 10:00 a.m.
to 2:00 p.m. ET.
TELEPHONE TRANSACTIONS
1-800-852-8457
Make account transactions with a
Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
PHONELINK
1-800-533-3310
Get automated information or
make automated transactions.
24 hours a day, 7 days a week.
TELECOMMUNICATION
DEVICE FOR THE DEAF
1-800-843-4461
Service for the hearing impaired.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
OPPENHEIMERFUNDS
INFORMATION HOTLINE
1-800-835-3104
Hear timely and insightful
messages on the economy and
issues that affect your finances.
24 hours a day, 7 days a week.
RA220.0794.N
(OPPENHEIMERFUNDS(R) LOGO)
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ---------------
Bulk Rate
U.S. Postage
PAID
Permit No. 314
Farmingdale, NY
- ---------------
<PAGE> 17
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The front cover of the report in the printed version contains a photo
(photo # 1) of a mand and child on beach.
The back cover of the report in the printed version contains a photo
(photo #2) of Barbara Hennigar, Chief Executive Officer, Oppenheimer
Shareholder Services.
