<PAGE>
OPPENHEIMER VALUE STOCK FUND
Semiannual Report June 30, 1995
[PHOTO]
"We want to invest for GROWTH in high-quality companies that pay dividends...
but we want to buy these stocks at attractive PRICES."
[LOGO] OPPENHEIMERFUNDS
<PAGE>
THIS FUND IS FOR PEOPLE WHO SEEK LONG-TERM GROWTH AND CURRENT INCOME FROM A FUND
THAT LOOKS FOR GOOD VALUES WHEN BUYING STOCKS OF WELL-ESTABLISHED COMPANIES.
NEWS
------------------------
BEAT THE AVERAGE
------------------------
Total Return for the 1-Year Period Ended 6/30/95:
Oppenheimer
Value Stock Fund
Class A (at net asset value)1
------------------------
20.13%
------------------------
Lipper
Growth & Income
Funds Average3
------------------------
19.74%
------------------------
-------------------------------------------------------------------------------
HOW YOUR FUND IS MANAGED
-------------------------------------------------------------------------------
Oppenheimer Value Stock Fund's basic investment strategy is to "buy low, sell
high." The Fund's managers invest in stocks they believe are priced below their
historical valuations, and sell stocks when they think they are overvalued. This
strategy offers the potential for long-term capital appreciation because the
Fund intends to invest in quality, well-established companies, and provide
excellent value for your money.
-------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------
Total return at net asset value for the 6 months ended 6/30/95 was 15.64% for
Class A shares and 15.15% for Class B shares.1
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 6/30/95 and since inception
of the Class on 12/22/86 were 13.23%, 10.18% and 10.38%, respectively. For Class
B shares, average annual total returns for the 1-year period ended 6/30/95 and
since inception of the Class on 5/1/93 were 14.12% and 9.00%, respectively.2
-------------------------------------------------------------------------------
OUTLOOK
-------------------------------------------------------------------------------
"We're hoping for better buying opportunities as the year continues. When the
markets go straight up, it's hard to get your teeth into anything at the prices
you want to pay. While we don't believe the bull market's coming to an end, we
expect that the market may begin to fluctuate as we approach the end of the
year. This is where we expect we'll find good buys. We're holding around 10%
cash at this time--which is relatively high for us--and that's what we'll use to
take advantage of opportunities that arise."
David Salerno, Portfolio Manager
Concert Capital Management,
The Fund's Sub-Advisor
June 30, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/94, 6/30/90
and 12/22/86 (inception of class), after deducting the current maximum initial
sales charge of 5.75%. 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. Class B returns show results of
hypothetical investments on 6/30/94 and 5/1/93 (inception of class), and the
deduction of the applicable contingent deferred sales charge of 5% (1-year) and
3% (since inception). An explanation of the different performance calculations
is in the Fund's prospectus.
3. Source: Lipper Analytical Services. The Lipper total return average for the
period ended 6/30/95 was for 374 growth and income funds. The average 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.
2 Oppenheimer Value Stock Fund
<PAGE>
Dear OppenheimerFunds Shareholder,
In the first six months of 1995, the stock and bond markets have improved
significantly. The Federal Reserve's seven interest rate hikes between February
1994 and February 1995 appear to have achieved their intended effect, as the
rate of economic growth has slowed throughout the year. This economic outlook of
sustainable, healthy growth with low inflation, falling interest rates, and talk
of deficit reduction inspired investors' confidence in the stock market. As a
result, the Dow Jones Industrial Average hit record highs repeatedly in the
first half of the year.
The stock market has been strong for other reasons as well. Overall,
corporate America has done an excellent job of restructuring, and has become
more productive and profitable. Combined with continued investment in technology
and increased competitiveness abroad as a result of a weaker dollar, these
events resulted in spectacular first quarter earnings reports.
While the market's rise this year has been dramatic, it has caused our
equity investment team to become slightly more cautious. Because the market has
already registered significant gains this year, the stock market is starting to
see signs of short-term volatility, and your Fund's managers want to protect the
gains the Fund has made.
Still, the market's expansion has been fueled by underlying fundamental
strengths. So, while we are cautious, we believe it has room to continue.
Congress's continuing emphasis on deficit reduction, plus Washington's
commitment to correcting our trade imbalance, should benefit the market--in
addition to attracting foreign investments to U.S. stocks, creating even greater
demand and possibly pushing their prices up further.
Should the economy slow more than anticipated, however, we would expect to
see earnings slow eventually, which could cause the market to hesitate. In this
event, smaller companies and international stocks could begin to outperform the
large, globally-oriented companies that have led the market so far this year.
However, until your Fund's managers see signs of either increased inflation or
recession on the horizon, they remain constructive on the market in general and
will view any volatility in the near term as a time to search for buying
opportunities.
At OppenheimerFunds, our approach to the stock market is to invest with a
long-term view, to participate in upswings while remaining prudent, and,
finally, to know when to become more defensive to protect the gains we have
made.
Your portfolio manager discusses the outlook for your Fund on the following
pages. Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you continue to reach your investment goals in the future.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
July 24, 1995
[PHOTO]
James C. Swain
Chairman
Oppenheimer
Value Stock Fund
[PHOTO]
Jon S. Fossel
President
Oppenheimer
Value Stock Fund
3 Oppenheimer Value Stock Fund
<PAGE>
DAVID SALERNO
Porfolio Manager
Q+A
An interview with the Fund's managers.
THE FUND HAS DONE VERY WELL OVER THE PAST SIX MONTHS.
TO WHAT EXTENT HAVE VALUE
STOCKS, IN GENERAL, SHARED IN
THIS YEAR'S MARKET EXPANSION?
Fully. Since the beginning of the year, growth and value stocks have been par-
ticipating in the upswing side by side. Rather than differentiating between
stocks based on those characteristics, so far this year the market has been
favoring large-cap stocks over smaller ones. That's something we expect to see
reverse as the year continues.
WHAT HAVE YOU ADDED TO THE
PORTFOLIO, AND WHY?
We've only added four names to the portfolio over this period because the
market's been so strong. We refuse to pay high prices for stocks, so we plan
to turn short-term volatility to our advantage.
We've added American Brands, which sold its tobacco business in the U.S.
last year and without the litigation liability that goes along with tobacco,
the company's stock will probably sell more like a consumer products firm.
We've also added Sears. With the company scheduled to spin off the rest of
its holdings in Allstate over the summer, we believe that it's a very
inexpensive way to invest in the retail sector.
In addition, we bought AT&T. We want to participate in the long distance
telecommunications industry as well as the global information network, and we
think AT&T will be a leader in equipment and systems integration.
And finally, we purchased Albertson's, the fourth largest supermarket chain
with strong positions in the West and South. The food retailing group has been
out of favor because the lack of price inflation on food has squeezed operating
margins.1
HOW ARE YOU POSITIONING THE
FUND IN LIGHT OF CURRENT ECONOMIC AND MARKET CONDITIONS?
We're a bottom-up manager, meaning we generally consider company and stock
fundamentals before considering a macroeconomic outlook. In the first half of
'95, however, we've been increasing our position in consumer non-durables, or
companies that are not generally affected by economic cycles, through positions
in Bristol-Myers and American Brands. Companies in this sector should be able
to maintain profitability even in a slower economy.
By the same token, we've been sellers in more cyclical areas. We've reduced
our commodity chemicals holdings--companies like DuPont and Eastman Chemical.
We've also reduced Parker-Hannifin and Dover, two machinery companies.
WHAT IS YOUR OUTLOOK FOR THE
FUND FOR THE REMAINDER OF 1995?
We're hoping for better buying opportunities as the year continues. When the
markets go straight up, it's hard to get your teeth into anything at the prices
you want to pay. While we don't believe the bull market is coming to an end, we
expect that the market may begin to fluctuate as we approach the end of the
year. This is where we expect we'll find good buys. We're holding around 10%
cash at this time--which is relatively high for us--and that's what we'll use
when we see opportunities arise.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Value Stock Fund
<PAGE>
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM NOTES--10.6%
------------------------------------------------------------------------------------------------------------------------------------
ConAgra, Inc., 6.17%, 7/14/95 $1,900,000 $1,895,767
-----------------------------------------------------------------------------------------------------------------------------------
Eastman Chemical Co., 6.10%, 7/20/95 1,570,000 1,564,945
-----------------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.95%-5.97%, 7/5/95 985,000 984,347
-----------------------------------------------------------------------------------------------------------------------------------
Illinois Power Co., 6.10%, 7/11/95 1,955,000 1,951,687
-----------------------------------------------------------------------------------------------------------------------------------
Rite Aid Corp., 6.15%, 7/13/95 1,940,000 1,936,023
-----------------------------------------------------------------------------------------------------------------------------------
Ryder System, Inc., 6.10%, 7/6/95 2,000,000 1,998,306
-----------------------------------------------------------------------------------------------------------------------------------
Textron Financial Corp., 6.07%, 7/10/95 2,000,000 1,996,965
-----------------------------------------------------------------------------------------------------------------------------------
Tyson Foods, Inc., 6.07%, 7/12/95 2,000,000 1,996,291
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM NOTES
(COST $14,324,331) 14,324,331
SHARES
-----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--89.5%
-----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--8.4%
-----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--4.4% Du Pont (E.I.) De Nemours & Co. 20,000 1,375,000
-----------------------------------------------------------------------------------------------------------------------------------
Eastman Chemical Co. 31,800 1,892,100
-----------------------------------------------------------------------------------------------------------------------------------
Lubrizol Corp. (The) 40,000 1,415,000
-----------------------------------------------------------------------------------------------------------------------------------
Nalco Chemical Co. 33,000 1,200,375
-----------------------------------------------------------------------------------------------------------------------------------
5,882,475
-----------------------------------------------------------------------------------------------------------------------------------
METALS--0.7% Reynolds Metals Co. 18,500 957,375
-----------------------------------------------------------------------------------------------------------------------------------
PAPER--3.3% Westvaco Corp. 34,500 1,526,625
-----------------------------------------------------------------------------------------------------------------------------------
Weyerhaeuser Co. 61,500 2,898,188
-----------------------------------------------------------------------------------------------------------------------------------
4,424,813
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--13.6%
-----------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--5.2% Ford Motor Co. 52,500 1,561,875
-----------------------------------------------------------------------------------------------------------------------------------
Genuine Parts Co. 50,500 1,912,688
-----------------------------------------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 49,500 2,041,875
-----------------------------------------------------------------------------------------------------------------------------------
Stanley Works (The) 39,000 1,477,125
-----------------------------------------------------------------------------------------------------------------------------------
6,993,563
-----------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.1% Eastman Kodak Co. 25,000 1,515,625
-----------------------------------------------------------------------------------------------------------------------------------
MEDIA--3.0% Dun & Bradstreet Corp. (The) 37,000 1,942,500
-----------------------------------------------------------------------------------------------------------------------------------
McGraw-Hill, Inc. 27,000 2,048,625
-----------------------------------------------------------------------------------------------------------------------------------
3,991,125
-----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--4.3% Kmart Corp. 7,300 106,763
-----------------------------------------------------------------------------------------------------------------------------------
May Department Stores Co. 51,500 2,143,688
-----------------------------------------------------------------------------------------------------------------------------------
Penney (J.C.) Co., Inc. 14,500 696,000
-----------------------------------------------------------------------------------------------------------------------------------
Sears, Roebuck & Co. 24,000 1,437,000
-----------------------------------------------------------------------------------------------------------------------------------
VF Corp. 26,500 1,424,375
-----------------------------------------------------------------------------------------------------------------------------------
5,807,826
</TABLE>
5 Oppenheimer Value Stock Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSUMER NON-CYCLICALS--16.4%
------------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--2.0% Brown-Forman Corp., Cl. B 40,500 $1,351,688
-----------------------------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 28,000 1,277,500
-----------------------------------------------------------------------------------------------------------------------------------
2,629,188
-----------------------------------------------------------------------------------------------------------------------------------
FOOD--4.2% Albertson's, Inc. 22,700 675,320
-----------------------------------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 69,990 1,303,560
-----------------------------------------------------------------------------------------------------------------------------------
CPC International, Inc. 36,000 2,223,000
-----------------------------------------------------------------------------------------------------------------------------------
Pioneer Hi-Bred International, Inc. 33,000 1,386,000
-----------------------------------------------------------------------------------------------------------------------------------
5,587,880
-----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--6.7% Bristol-Myers Squibb Co. 58,000 3,951,250
-----------------------------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 35,000 3,233,125
-----------------------------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 40,600 1,791,475
-----------------------------------------------------------------------------------------------------------------------------------
8,975,850
-----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES
& SERVICES--1.3% Becton, Dickinson & Co. 31,000 1,805,750
-----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.9% Clorox Co. (The) 19,500 1,272,375
-----------------------------------------------------------------------------------------------------------------------------------
TOBACCO--1.3% American Brands, Inc. 45,500 1,808,625
-----------------------------------------------------------------------------------------------------------------------------------
ENERGY--7.7%
-----------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES
& PRODUCERS--1.2% Kerr-McGee Corp. 28,900 1,549,763
-----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--6.5% Amoco Corp. 37,000 2,465,125
-----------------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 17,500 1,920,625
-----------------------------------------------------------------------------------------------------------------------------------
Chevron Corp. 53,500 2,494,438
-----------------------------------------------------------------------------------------------------------------------------------
Mobil Corp. 20,000 1,920,000
-----------------------------------------------------------------------------------------------------------------------------------
8,800,188
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--10.9%
-----------------------------------------------------------------------------------------------------------------------------------
BANKS--6.4% Bank of New York, Inc. 57,900 2,337,713
-----------------------------------------------------------------------------------------------------------------------------------
Comerica, Inc. 60,000 1,927,500
-----------------------------------------------------------------------------------------------------------------------------------
CoreStates Financial Corp. 54,000 1,883,250
-----------------------------------------------------------------------------------------------------------------------------------
Norwest Corp. 41,500 1,193,125
-----------------------------------------------------------------------------------------------------------------------------------
Wachovia Corp. 35,540 1,270,555
-----------------------------------------------------------------------------------------------------------------------------------
8,612,143
</TABLE>
6 Oppenheimer Value Stock Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DIVERSIFIED FINANCIAL--1.4% American Express Co. 52,500 $1,844,063
-----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--3.1% Jefferson-Pilot Corp. 18,550 1,015,613
------------------------------------------------------------------------------------------------
Safeco Corp. 41,500 2,383,656
------------------------------------------------------------------------------------------------
Unitrin, Inc. 17,500 831,250
----------
4,230,519
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--15.6%
-----------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--8.3% AMP, Inc. 74,400 3,143,400
-----------------------------------------------------------------------------------------------------------------------------------
General Electric Co. 60,500 3,410,688
------------------------------------------------------------------------------------------------
Grainger (W.W.), Inc. 27,000 1,586,250
------------------------------------------------------------------------------------------------
Honeywell, Inc. 32,500 1,401,563
------------------------------------------------------------------------------------------------
Hubbell, Inc., Cl. B 28,997 1,638,331
----------
11,180,232
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.3% Donnelley (R.R.) & Sons Co. 48,000 1,728,000
-----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--4.0% Dover Corp. 19,300 1,404,075
------------------------------------------------------------------------------------------------
General Signal Corp. 36,500 1,450,875
------------------------------------------------------------------------------------------------
Harsco Corp. 23,000 1,213,250
------------------------------------------------------------------------------------------------
Parker-Hannifin Corp. 37,500 1,359,375
----------
5,427,575
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.0% Norfolk Southern Corp. 29,000 1,953,875
------------------------------------------------------------------------------------------------
Roadway Services, Inc. 15,000 708,750
----------
2,662,625
-----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--13.2%
-----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.0% Boeing Co. (The) 26,500 1,659,563
------------------------------------------------------------------------------------------------
TRW, Inc. 12,500 998,438
----------
2,658,001
-----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--5.5% International Business Machines Corp. 13,500 1,296,000
------------------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 45,000 2,576,250
------------------------------------------------------------------------------------------------
Pitney Bowes, Inc. 47,500 1,822,813
------------------------------------------------------------------------------------------------
Xerox Corp. 14,500 1,700,125
----------
7,395,188
</TABLE>
7 Oppenheimer Value Stock Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS--2.6% Hewlett-Packard Co. 48,000 $3,576,000
-----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--3.1% AT&T Corp. 51,000 2,709,375
------------------------------------------------------------------------------------------------
Frontier Corp. 59,000 1,416,000
----------
4,125,375
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--3.7%
-----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.9% Niagara Mohawk Power Corp. 56,500 833,375
------------------------------------------------------------------------------------------------
NIPSCO Industries, Inc. 21,500 731,000
------------------------------------------------------------------------------------------------
SCANA Corp. 45,500 1,018,063
----------
2,582,438
-----------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.4% Consolidated Natural Gas Co. 12,500 471,875
-----------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.4% Ameritech Corp. 23,000 1,012,000
------------------------------------------------------------------------------------------------
Southern New England Telecommunications Corp. 26,500 934,125
----------
1,946,125
-----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks
(Cost $92,036,929) 120,442,580
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT
VALUE (Cost $106,361,260) 100.1% 134,766,911
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1) (91,577)
------ ------------
NET ASSETS 100.0% $134,675,334
------ ------------
------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Value Stock Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (cost $106,361,260)--see accompanying statement $134,766,911
-------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 347,940
Interest and dividends 255,194
------------------------------------------------------------------------------------------------
Other 15,539
------------------------------------------------------------------------------------------------
Total assets 135,385,584
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Bank overdraft 85,092
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 286,584
Investments purchased 198,831
Distribution and service plan fees--Note 4 79,486
Transfer and shareholder servicing agent fees 7,398
Trustees' fees 855
Other 52,004
------------------------------------------------------------------------------------------------
Total liabilities 710,250
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $134,675,334
------------
------------
-----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $104,210,490
NET ASSETS -----------------------------------------------------------------------------------------------
Undistributed net investment income 128,240
------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment transactions 1,930,952
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 28,405,652
------------
Net assets $134,675,334
------------
------------
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $115,655,447 and 7,123,352 shares of beneficial interest outstanding) $16.24
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $17.23
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $19,019,887 and 1,178,067 shares of beneficial interest outstanding) $16.14
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Value Stock Fund
<PAGE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $ 384,980
-------------------------------------------------------------------------------------------------
Dividends 1,595,245
-----------------------------------------------------------------------------------------------------------------------------------
Total income 1,980,225
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 441,669
------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 128,508
Class B--Note 4 72,934
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 76,210
------------------------------------------------------------------------------------------------
Shareholder reports 27,516
------------------------------------------------------------------------------------------------
Custodian fees and expenses 7,949
------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 5,754
Class B 2,103
------------------------------------------------------------------------------------------------
Legal and auditing fees 5,823
------------------------------------------------------------------------------------------------
Trustees' fees and expenses 3,183
------------------------------------------------------------------------------------------------
Other 156
-----------
Total expenses 771,805
-----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,208,420
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain on investments 1,899,595
GAIN ON INVESTMENTS ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 14,050,826
-----------
Net realized and unrealized gain on investments 15,950,421
-----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $17,158,841
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Value Stock Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 1,208,420 $ 2,055,994
-----------------------------------------------------------------------------------------------------------
Net realized gain on investments 1,899,595 2,820,946
----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 14,050,826 (1,764,415)
------------ ------------
Net increase in net assets resulting from operations 17,158,841 3,112,525
-----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.13 and $.31 per share, respectively) (912,291) (1,921,684)
SHAREHOLDERS Class B ($.082 and $.209 per share, respectively) (88,015) (130,461)
----------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.01 per share) -- (74,310)
Class B ($.01 per share) -- (5,047)
----------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($.395 per share) -- (2,490,365)
Class B ($.395 per share) -- (290,318)
-----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions--Note 2 8,733,244 3,834,762
----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B
beneficial interest transactions--Note 2 6,162,895 5,957,338
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 31,054,674 7,992,440
----------------------------------------------------------------------------------------------------------
Beginning of period 103,620,660 95,628,220
------------ ------------
End of period [including undistributed (overdistributed) net investment
income of $128,240 and $(79,874), respectively] $134,675,334 $103,620,660
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Value Stock Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(Unaudited) 1994 1993 1992 1991(2) 1990
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.16 $14.41 $14.19 $13.57 $11.39 $12.08
------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .16 .31 .29 .32 .33 .37
Net realized and unrealized gain
(loss) on investments 2.05 .16 .98 .97 2.49 (.57)
------ ------ ------ ------ ------ -----
Total income (loss) from
investment operations 2.21 .47 1.27 1.29 2.82 (.20)
------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) (.31) (.29) (.32) (.33) (.39)
Dividends in excess of net
investment income -- (.01) -- -- -- --
Distributions from net realized gain
on investments -- (.40) (.76) (.35) (.31) (.10)
------ ------ ------ ------ ------ -----
Total dividends and distributions
to shareholders (.13) (.72) (1.05) (.67) (.64) (.49)
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.24 $14.16 $14.41 $14.19 $13.57 $11.39
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(3) 15.64% 3.28% 8.97% 9.61% 25.23% (1.53)%
------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $115,655 $92,728 $90,470 $59,376 $49,381 $40,153
------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $104,977 $90,158 $80,229 $53,485 $45,581 $39,104
------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at end
of period (in thousands) 7,123 6,548 6,280 4,184 3,639 3,526
------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.13%(4) 2.16% 1.97% 2.34% 2.59% 3.22%
Expenses, before voluntary
reimbursement 1.20%(4) 1.27% 1.24% 1.19% 1.31% 1.36%
Expenses, net of voluntary
reimbursement N/A N/A N/A N/A 1.26% 1.30%
------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 7.5% 16.3% 24.3% 12.3% 14.5% 13.5%
FINANCIAL HIGHLIGHTS
CLASS B
---------------------------------------
SIX MONTHS
ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(Unaudited) 1994 1993(1)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.09 $14.35 $14.60
----------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .11 .17 .17
Net realized and unrealized gain
(loss) on investments 2.02 .19 .51
------ ------ ------
Total income (loss) from
investment operations 2.13 .36 .68
---------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.08) (.21) (.17)
Dividends in excess of net
investment income -- (.01) --
Distributions from net realized gain
on investments -- (.40) (.76)
------ ------ ------
Total dividends and distributions
to shareholders (.08) (.62) (.93)
---------------------------------------------------------------------------------------------
Net asset value, end of period $16.14 $14.09 $14.35
------ ------ ------
------ ------ ------
---------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(3) 15.15% 2.50% 4.63%
---------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $19,020 $10,893 $5,158
---------------------------------------------------------------------------------------------
Average net assets (in thousands) $14,729 $7,834 $2,527
---------------------------------------------------------------------------------------------
Number of shares outstanding at end
of period (in thousands) 1,178 773 359
---------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.35%(4) 1.45% .97%(4)
Expenses, before voluntary
reimbursement 1.99%(4) 2.01% 2.14%(4)
Expenses, net of voluntary
reimbursement N/A N/A N/A
---------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 7.5% 16.3% 24.3%
<FN>
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. Total returns are not annualized for
periods of less than one full year.
4. Annualized.
5. The lesser of purchases or sales of
portfolio securities for a period, divided by
the monthly average of the market value of
portfolio securities owned during the period.
Securities with a maturity or expiration date
at the time of acquisition of one year or
less are excluded from the calculation.
Purchases and sales of investment securities
(excluding short-term securities) for the
period ended June 30, 1995 were $18,123,183
and $8,078,381, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Value Stock Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Value Stock Fund (the Fund)
ACCOUNTING POLICIES is a separate fund of Oppenheimer Integrity
Funds, a 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 the
close of the New York Stock Exchange on each
trading day. Listed and unlisted securities
for which such information is regularly
reported are valued at the last sale price of
the day or, in the absence of sales, at
values based on the closing bid or asked
price or the last sale price on the prior
trading day. Long-term and short-term
"non-money market" debt securities are valued
by a portfolio pricing service approved by
the Board of Trustees. Such securities which
cannot be valued by the approved portfolio
pricing service are valued using
dealer-supplied valuations provided the
Manager is satisfied that the firm rendering
the quotes is reliable and that the quotes
reflect current market value, or under
consistently applied procedures established
by the Board of Trustees to determine fair
value in good faith. Short-term "money market
type" debt securities having a remaining
maturity of 60 days or less are valued at
cost (or last determined market value)
adjusted for amortization to maturity of any
premium or discount.
-------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES Income, expenses (other than those
AND GAINS AND LOSSES. 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 TAXES. The Fund intends to continue to comply
with provisions of the Internal Revenue Code
applicable to regulated investment companies
and to distribute all of its taxable income,
including any net realized gain on
investments not offset by loss carryovers, to
shareholders. Therefore, no federal income or
excise tax provision is required.
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend
date.
-------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS The character of the distributions made
TO SHAREHOLDERS. during the year from net investment income or
net realized gains may differ from their
ultimate characterization for federal income
tax purposes. Also, due to timing of dividend
distributions, the fiscal year in which
amounts are distributed may differ from the
year that the income or realized gain (loss)
was recorded by the Fund.
-------------------------------------------------------------------------------
OTHER. Investment transactions are accounted
for on the date the investments are purchased
or sold (trade date) and dividend income is
recorded on the ex-dividend date. 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.
13 Oppenheimer Value Stock Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
-------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited
BENEFICIAL INTEREST number of no par value shares of beneficial
interest of each class. Transactions in
shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1995 YEAR ENDED DECEMBER 31, 1994
------------------------------ ----------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 943,616 $14,329,238 1,880,960 $27,360,226
Dividends and distributions
reinvested 55,904 882,356 311,720 4,414,279
Redeemed (424,428) (6,478,350) (1,924,358) (27,939,743)
-------- ---------- ---------- -----------
Net increase 575,092 $8,733,244 268,322 $3,834,762
-------- ---------- ---------- -----------
-------- ---------- ---------- -----------
---------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 532,948 $8,103,073 499,617 $7,201,783
Dividends and distributions
reinvested 5,031 79,269 28,292 397,953
Redeemed (132,874) (2,019,447) (114,417) (1,642,398)
--------- ---------- ---------- ----------
Net increase 405,105 $6,162,895 413,492 $5,957,338
--------- ---------- ---------- ----------
--------- ---------- ---------- ----------
</TABLE>
--------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At June 30, 1995, net unrealized appreciation
LOSSES ON INVESTMENTS on investments of $28,405,652 was composed of
gross appreciation of $29,116,886, and gross
depreciation of $711,234.
-------------------------------------------------------------------------------
4. MANAGEMENT FEES AND Management fees paid to the Manager were in
OTHER TRANSACTIONS accordance with the investment advisory
WITH AFFILIATES agreement with the Fund which provides for a
fee of .75% on the first $100 million of
average annual net assets 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 state
regulatory limit on Fund expenses.
For the six months ended June 30, 1995,
commissions (sales charges paid by investors)
on sales of Class A shares totaled $146,295,
of which $88,195 was retained by Oppenheimer
Funds Distributor, Inc., (OFDI), a subsidiary
of the Manager, as general distributor, and
by an affiliated broker/dealer. Sales charges
advanced to broker/dealers by OFDI on sales
of the Fund's Class B shares totaled
$204,892, of which $37,505 was paid to an
affiliated broker/dealer. During the six
months ended June 30, 1995, OFDI received
contingent deferred sales charges of $26,549
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 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 on
Class B shares sold prior to termination or
discontinuance of the plan. During the six
months ended June 30, 1995, OFDI paid $82,299
and $2,598 to an affiliated broker/dealer as
reimbursement for Class A and Class B
personal service and maintenance expenses,
respectively, and retained $63,391 as
reimbursement for Class B sales commissions
and service fee advances, as well as
financing costs.
--------------------------------------------------------------------------------
5. DEFERRED TRUSTEE A former trustee elected to defer receipt
COMPENSATION of fees earned. These deferred fees earn
interest at a rate Compensation determined by
the current Board of Trustees at the
beginning of each calendar year, compounded
each quarter-end. From January 1, 1995
through May 10, 1995, the Fund was incurring
interest at a rate of 7.89% per annum. The
final payment was made on May 10, 1995.
14 Oppenheimer Value Stock Fund
<PAGE>
OPPENHEIMER VALUE STOCK FUND
A SERIES OF OPPENHEIMER INTEGRITY FUNDS
--------------------------------------------------------------------------------
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 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 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.
Shares of Oppenheimer funds are not deposits
or obligations of any bank, are not
guaranteed by any bank, and are not insured
by the FDIC or any other agency, and involve
investment risks, including possible loss of
the principal amount invested.
15 Oppenheimer Value Stock Fund
<PAGE>
"HOW MAY I HELP YOU?"
As an OppenheimerFunds shareholder, you have some special privileges. Whether
its automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that links your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get auto-mated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
Information
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
----------------------------------
1-800-525-7048
----------------------------------
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
----------------------------------
1-800-852-8457
----------------------------------
PHONELINK
24 hours a day, automated information and transactions
----------------------------------
1-800-533-3310
----------------------------------
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
----------------------------------
1-800-843-4461
----------------------------------
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
affect your investments
----------------------------------
1-800-835-3104
----------------------------------
RS0325.001.0695 August 31, 1995
-------------------------------------------------------------------------------
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