<PAGE> 1
[PHOTO]
OPPENHEIMER VALUE STOCK FUND
Annual Report December 31, 1996
"We want to invest
for growth
in companies that
pay dividends,
but we want their
stocks at a
good price."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO SEEK LONG-TERM GROWTH AND CURRENT INCOME BY
INVESTING IN UNDERVALUED STOCKS OF WELL-ESTABLISHED COMPANIES.
NEWS
BEAT THE AVERAGE
Total Return for the 3-Year Period
Ended 12/31/96:
Oppenheimer Value Stock Fund
Class A (at net asset value)(1)
60.36%
Lipper Growth & Income Funds
Average for 330 Funds for the
3-Year Period Ended 12/31/96(3)
56.85%
"THE FUND'S CLASS B SHARES
ARE RANKED **** AMONG
1,826 DOMESTIC EQUITY FUNDS
FOR THE 3-YEAR PERIOD ENDED
12/31/96 BY MORNINGSTAR
MUTUAL FUNDS.(4)
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
intrinsic value, and sell stocks when they think they're overvalued. This
strategy offers the potential for long-term capital appreciation through
investment in well-established companies.
PERFORMANCE
Total returns for the 12 months ended 12/31/96 for Class A, B and C shares were
19.39%, 18.50% and 18.39%, respectively, without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-,
5- and 10-year periods ended 12/31/96 were 12.53%, 12.54% and 12.24%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 5/1/93 were 13.50% and 13.87%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 10/2/95 were 17.39% and 19.88%,
respectively.(2)
OUTLOOK
"We believe that by aiming to participate in the gains of a rising market and
to conserve asset value in a less positive environment, the Fund should show
superior returns over the long term."
James MacAllen, Portfolio Manager
David L. Babson and Co., Inc., the Fund's Sub-Adviser
December 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING THE PERFORMANCE AND RANKINGS, PLEASE REMEMBER PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. For more complete
information, please review the prospectus carefully before you invest. On
1/1/97, the Fund's prior sub-adviser merged into its present sub-adviser.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Prior to 3/29/91, the Fund's maximum sales charge rate for Class A shares was
lower, so that actual results would have been higher. Class B returns include
the applicable contingent deferred sales charge of 5% (1-year) and 3% (since
inception). Class C returns include the 1% contingent deferred sales charge for
the 1-year result. An explanation of the different performance calculations is
in the Fund's prospectus.
3. Source: Lipper Analytical Services, 12/31/96. The Lipper average is shown
for comparative purposes only. Funds included in the average may have
different investment policies and risks than the Fund. Oppenheimer Value Stock
Fund is characterized by Lipper as a growth & income fund. Lipper performance
is based on total return and does not take sales charges into account.
4. Source: Morningstar Mutual Funds, 12/31/96. Morningstar rankings are based
on risk-adjusted investment return, after considering sales charges and
expenses. Investment return measures a fund's (or class's) 1-, 3-, 5- and
10-year (depending on the inception of the class or fund) average annual total
returns in excess of 90-day U.S. Treasury bill returns. Risk measures a fund's
(or class's) performance below 90-day U.S. Treasury bill returns. Risk and
returns are combined to produce star rankings, reflecting performance relative
to the average fund in a fund's category. The top 10% of funds in each
investment class receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3
stars; the next 22.5%; 2 stars; and the bottom 10%, 1 star. The 4-star current
ranking is based on the 3-year ranking for the Fund's Class B shares, which was
4 stars. The 1-year star ranking is 3 stars, but is not included in
Morningstar's overall ranking calculations. There were 2,959 funds for the
1-year period. Rankings are subject to change monthly. The Fund's Class A, B
and C shares have the same investment portfolio but different expenses.
2 Oppenheimer Value Stock Fund
<PAGE> 3
[PHOTO]
James C. Swain
Chairman
Oppenheimer
Value Stock Fund
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Value Stock Fund
DEAR SHAREHOLDER,
As 1996 has drawn to a close, we can look back and say that the past year has
certainly been one for the record books. But it has not necessarily been easy
for the faint of heart. During the first five months of the year, the stock
market reported tremendous gains, thanks in part to strong corporate earnings,
low inflation and stabilized interest rates. However, on the trail of a
six-year bull market and with indices reporting all-time highs, many experts
felt a correction was inevitable.
The stock market volatility that jolted investors in June and July did
not come as a complete surprise, but remarkably enough, by the end of September
the stock market had rebounded and resumed its record-setting pace. During the
fourth quarter, the Dow passed 6,500, both the S&P 500 and the technology-laden
NASDAQ posted all-time highs, and the Russell 2000 came very close to hitting
record levels.
What does the new year have in store for the stock market and its
investors? Of course, no one can predict the events of 1997 with complete
accuracy. Instead, the experts rely on several economic indicators to offer
clues about the market's direction. For example, the rate of unemployment has
dropped to its lowest level in seven years and wage growth continues to make
gains. As a result, consumer confidence is at its highest level since 1989.
What these events suggest to many experts is the likelihood of higher
inflation in 1997, countered by a possible increase in short-term interest
rates. However, an opposing view is that economic growth will taper off
sufficiently early in the year, calming fears of rising inflation and interest
rate increases. Although the Federal Reserve appeared to agree with this
reasoning in the third and fourth quarters of 1996, this may not be true in the
future.
The one thing we can accurately predict is that, regardless of the
scenario, OppenheimerFunds will continue to monitor significant events and act
appropriately. To that end, we view our outlook for the market as cautiously
optimistic. Whichever direction interest rates move, we expect the market's
volatile trading pattern to continue in the coming months. But while our
watchword may be "caution," in the near term, we are still finding plenty of
attractive investment opportunities today, both in the United States and
abroad. We believe the correct approach is to carefully evaluate companies
based on individual merits, such as strong management, fundamental business
policies and long-term prospects for the future. Based on this strategy and the
resilient performance the stock market has demonstrated in the past, our
long-term view remains positive.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ JAMES C. SWAIN /s/ BRIDGET A. MACASKILL
James C. Swain Bridget A. Macaskill
January 22, 1997
3 Oppenheimer Value Stock Fund
<PAGE> 4
JAMES MACALLEN
Portfolio Manager
Q + A
An interview with your Fund's managers.
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
Oppenheimer Value Stock Fund's conservative structure caused it to lag behind
the stock market for the full year, but its pattern of performance was
consistent with its low-risk strategy. The Fund participated in the continuing
advance of stock prices, and in those few months when the market paused, the
Fund retained its value better than the stock market overall. With the market
now entering the seventh year since the most recent bull market began, we
believe that this strategy of seeking to maintain relatively low portfolio risk
will be beneficial to the Fund in future periods.
WHAT INVESTMENTS HAVE MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
The Fund's results benefited from strong performance by several of the largest
holdings. The financial holdings were outstanding performers, particularly
banks. Contributing to bank stock gains were an accom-modative Fed policy,
continued good loan loss experience and the relentless trend toward industry
consolidations.(1)
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS YOU'D EXPECTED?
The telephone industry was a disappointment in 1996. The major factor was the
tele-communications deregulation bill which was signed into law in the spring.
This provides for the eventual opening up of the industry to competition. And
as companies prepare for this, increased marketing spending will restrain
earnings growth. Early in 1996, the Fund had a relatively small commitment to
this industry, but we steadily increased its weighting during the year as we
found companies with competitive advantages which were undervalued relative to
the market. In the long run, the surviving companies will prosper due to strong
growth of telecom traffic.
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
We are trying to minimize risk in the portfolio as the eco-nomic expansion
continues and stock valuations remain on the high side. We are reducing some
stocks whose prices are fully valued, and adding to stocks that we feel are
currently underpriced and can offer good long-term return through a combination
of capital appreciation and current income. In fact, well-positioned electric
utilities appear attractive and we are modestly increasing our commitment to
them.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We are optimistic about the long-term outlook for stocks in general, and the
Fund in particular. After a long period of exceptional stock market returns
such as we have seen recently, a pause in the market's upward trend would not
be a surprise. However, we recognize that there are risks in equity investing
as well as returns, and the conservative nature of the Fund is intended to hold
up well during a weak stock market. We believe that by aiming to participate in
the gains of a rising market and to conserve asset value in a less positive
environment, the Fund should show superior returns over the long term.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Value Stock Fund
<PAGE> 5
FINANCIALS
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
STATEMENT OF INVESTMENTS 6
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
FINANCIAL HIGHLIGHTS 12
NOTES TO FINANCIAL STATEMENTS 14
INDEPENDENT AUDITORS' REPORT 17
FEDERAL INCOME TAX INFORMATION 18
</TABLE>
5 Oppenheimer Value Stock Fund
<PAGE> 6
STATEMENT OF INVESTMENTS December 31, 1996
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
===================================================================================================================================
<S> <C> <C>
COMMON STOCKS--94.7%
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--7.7%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--4.1%
Du Pont (E.I.) De Nemours & Co. 21,500 $ 2,029,062
------------------------------------------------------------------------------------------------------------------------------
Lubrizol Corp. (The) 40,400 1,252,400
-----------------------------------------------------------------------------------------------------------------------------
Nalco Chemical Co. 52,500 1,896,562
-----------------------------------------------------------------------------------------------------------------------------
Rohm & Haas Co. 31,000 2,530,375
------------
7,708,399
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER--3.6%
Temple-Inland, Inc. 40,000 2,165,000
-----------------------------------------------------------------------------------------------------------------------------
Westvaco Corp. 64,500 1,854,375
-----------------------------------------------------------------------------------------------------------------------------
Weyerhaeuser Co. 58,800 2,785,650
------------
6,805,025
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--11.2%
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--5.6%
Ford Motor Co. 73,100 2,330,062
-----------------------------------------------------------------------------------------------------------------------------
Genuine Parts Co. 55,000 2,447,500
-----------------------------------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 73,000 3,750,375
-----------------------------------------------------------------------------------------------------------------------------
Stanley Works (The) 80,000 2,160,000
------------
10,687,937
- ------------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.3%
Eastman Kodak Co. 31,800 2,551,950
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA--1.4%
McGraw-Hill, Inc. 57,000 2,629,125
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--2.9%
May Department Stores Cos. 46,500 2,173,875
-----------------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 31,000 1,429,875
-----------------------------------------------------------------------------------------------------------------------------
VF Corp. 27,500 1,856,250
------------
5,460,000
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--19.8%
- ------------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--1.8%
Brown-Forman Corp., Cl. B 40,900 1,871,175
-----------------------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 54,000 1,579,500
------------
3,450,675
- ------------------------------------------------------------------------------------------------------------------------------------
FOOD--5.5%
Albertson's, Inc. 76,000 2,707,500
-----------------------------------------------------------------------------------------------------------------------------
American Stores Co. 20,500 837,937
-----------------------------------------------------------------------------------------------------------------------------
ConAgra, Inc. 40,000 1,990,000
-----------------------------------------------------------------------------------------------------------------------------
CPC International, Inc. 37,000 2,867,500
-----------------------------------------------------------------------------------------------------------------------------
Pioneer Hi-Bred International, Inc. 29,500 2,065,000
------------
10,467,937
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--7.0%
Bristol-Myers Squibb Co. 57,500 6,253,125
-----------------------------------------------------------------------------------------------------------------------------
Cytogen Corp.(1) 79 434
----------------------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 22,500 1,864,687
-----------------------------------------------------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. 58,000 2,298,250
-----------------------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 45,500 2,946,125
------------
13,362,621
</TABLE>
6 Oppenheimer Value Stock Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES &
SERVICES--1.4%
Becton, Dickinson & Co. 62,000 $ 2,689,250
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--1.3%
Kimberly-Clark Corp. 25,500 2,428,875
- ------------------------------------------------------------------------------------------------------------------------------------
TOBACCO--2.8%
American Brands, Inc. 59,000 2,927,875
-----------------------------------------------------------------------------------------------------------------------------
UST, Inc. 75,000 2,428,125
------------
5,356,000
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--10.0%
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--1.1%
Kerr-McGee Corp. 28,500 2,052,000
- -----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--8.9%
Amoco Corp. 49,500 3,984,750
-----------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 13,700 1,815,250
-----------------------------------------------------------------------------------------------------------------------------
Chevron Corp. 45,000 2,925,000
-----------------------------------------------------------------------------------------------------------------------------
Mobil Corp. 23,500 2,872,875
-----------------------------------------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 80,500 1,881,687
-----------------------------------------------------------------------------------------------------------------------------
Union Pacific Resources Group, Inc. 55,500 1,623,375
-----------------------------------------------------------------------------------------------------------------------------
Unocal Corp. 44,100 1,791,563
------------
16,894,500
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--15.3%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS--6.0%
Bank of New York Co., Inc. (The) 110,000 3,712,500
-----------------------------------------------------------------------------------------------------------------------------
Comerica, Inc. 26,000 1,361,750
-----------------------------------------------------------------------------------------------------------------------------
CoreStates Financial Corp. 52,000 2,697,500
-----------------------------------------------------------------------------------------------------------------------------
Norwest Corp. 36,500 1,587,750
-----------------------------------------------------------------------------------------------------------------------------
Wachovia Corp. 36,240 2,047,560
------------
11,407,060
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.5%
American Express Co. 50,000 2,825,000
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--7.8%
Allstate Corp. 23,748 1,374,416
-----------------------------------------------------------------------------------------------------------------------------
Jefferson-Pilot Corp. 26,325 1,490,653
-----------------------------------------------------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc. 35,000 3,640,000
-----------------------------------------------------------------------------------------------------------------------------
MBIA, Inc. 33,500 3,391,875
-----------------------------------------------------------------------------------------------------------------------------
Safeco Corp. 99,500 3,924,031
-----------------------------------------------------------------------------------------------------------------------------
Unitrin, Inc. 17,400 970,050
------------
14,791,025
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--15.2%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--8.4%
AMP, Inc. 100,300 3,849,013
-----------------------------------------------------------------------------------------------------------------------------
General Electric Co. 51,500 5,092,063
-----------------------------------------------------------------------------------------------------------------------------
Grainger (W.W.), Inc. 32,000 2,568,000
-----------------------------------------------------------------------------------------------------------------------------
Honeywell, Inc. 28,000 1,841,000
-----------------------------------------------------------------------------------------------------------------------------
Hubbell, Inc., Cl. B 61,994 2,681,241
------------
16,031,317
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.8%
Donnelley (R.R.) & Sons Co. 48,000 1,506,000
</TABLE>
7 Oppenheimer Value Stock Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING--4.6%
Dover Corp. 41,500 $ 2,085,375
General Signal Corp. 5,500 235,125
-----------------------------------------------------------------------------------------------------------------------------
Harsco Corp. 23,000 1,575,500
-----------------------------------------------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 43,500 3,605,063
-----------------------------------------------------------------------------------------------------------------------------
Parker-Hannifin Corp. 30,400 1,178,000
------------
8,679,063
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
Norfolk Southern Corp. 31,000 2,712,500
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--11.0%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.8%
Boeing Co. 16,500 1,755,188
-----------------------------------------------------------------------------------------------------------------------------
Raytheon Co. 700 33,687
-----------------------------------------------------------------------------------------------------------------------------
TRW, Inc. 32,000 1,584,000
------------
3,372,875
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--4.9%
International Business Machines Corp. 22,500 3,397,500
-----------------------------------------------------------------------------------------------------------------------------
Pitney Bowes, Inc. 54,500 2,970,250
-----------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 57,000 2,999,625
------------
9,367,375
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--2.1%
Hewlett-Packard Co. 80,000 4,020,000
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--2.2%
AT&T Corp. 52,500 2,283,750
-----------------------------------------------------------------------------------------------------------------------------
Frontier Corp. 85,400 1,932,175
------------
4,215,925
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--4.5%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.7%
NIPSCO Industries, Inc. 25,500 1,010,438
-----------------------------------------------------------------------------------------------------------------------------
SCANA Corp. 48,500 1,297,375
-----------------------------------------------------------------------------------------------------------------------------
Teco Energy, Inc. 36,600 882,975
------------
3,190,788
- ------------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--2.8%
Ameritech Corp. 28,000 1,697,500
-----------------------------------------------------------------------------------------------------------------------------
GTE Corp. 46,000 2,093,000
-----------------------------------------------------------------------------------------------------------------------------
Southern New England Telecommunications Corp. 42,000 1,632,750
------------
5,423,250
------------
Total Common Stocks (Cost $114,380,928) 180,086,472
<CAPTION>
FACE
AMOUNT
====================================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--4.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 6.52%, dated 12/31/96,
to be repurchased at $8,303,006 on 1/2/97, collateralized by U.S. Treasury Nts.,
5.50%--7.50%, 7/15/99--8/15/05, with a value of $8,490,302 (Cost $8,300,000) $8,300,000 8,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $122,680,928) 99.1% 188,386,472
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.9 1,740,662
------------- -------------
NET ASSETS 100.0% $190,127,134
============= =============
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Value Stock Fund
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES December 31, 1996
<TABLE>
====================================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $122,680,928)--see accompanying statement $188,386,472
------------------------------------------------------------------------------------------------------------------------------
Cash 317,473
------------------------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 2,379,534
Shares of beneficial interest sold 639,204
Interest and dividends 409,199
------------------------------------------------------------------------------------------------------------------------------
Other 7,941
------------
Total assets 192,139,823
====================================================================================================================================
LIABILITIES
Payables and other liabilities:
Dividends 1,360,756
Shares of beneficial interest redeemed 359,460
Distribution and service plan fees 118,631
Shareholder reports 59,139
Investments purchased 33,730
Transfer and shareholder servicing agent fees 9,163
Trustees' fees 1,067
Other 70,743
------------
Total liabilities 2,012,689
====================================================================================================================================
NET ASSETS $190,127,134
============
====================================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $122,783,317
------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 23,659
------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 1,614,614
------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 65,705,544
------------
Net assets $190,127,134
============
====================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $148,128,771 and 7,286,952 shares of beneficial interest outstanding) $20.33
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $21.57
------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $40,142,493 and 1,988,443 shares of beneficial interest outstanding) $20.19
------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $1,855,870 and 91,685 shares of beneficial interest outstanding) $20.24
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Value Stock Fund
<PAGE> 10
STATEMENT OF OPERATIONS For the Year Ended December 31, 1996
<TABLE>
====================================================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends $ 4,410,082
------------------------------------------------------------------------------------------------------------------------------
Interest 818,192
------------
Total income 5,228,274
====================================================================================================================================
EXPENSES
Management fees--Note 4 1,315,853
------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 350,768
Class B 332,226
Class C 9,020
------------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 238,593
------------------------------------------------------------------------------------------------------------------------------
Shareholder reports 69,568
------------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 13,775
------------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 10,407
------------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 6,536
------------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 2,267
Class C 465
------------------------------------------------------------------------------------------------------------------------------
Other 55,776
------------
Total expenses 2,405,254
====================================================================================================================================
NET INVESTMENT INCOME 2,823,020
====================================================================================================================================
REALIZED AND UNREALIZED
GAIN
Net realized gain on investments 7,161,305
------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 21,456,991
------------
Net realized and unrealized gain 28,618,296
====================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $31,441,316
===========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Value Stock Fund
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996 1995
===========================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 2,823,020 $ 2,504,015
---------------------------------------------------------------------------------------------------------------------
Net realized gain 7,161,305 2,126,048
---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 21,456,991 29,893,727
------------- -------------
Net increase in net assets resulting from operations 31,441,316 34,523,790
===========================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (2,534,251) (2,195,920)
Class B (366,547) (239,821)
Class C (13,143) (429)
---------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (4,334,550) (1,793,905)
Class B (1,169,914) (351,137)
Class C (53,029) (1,561)
===========================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A (6,902,321) 17,673,851
Class B 9,380,312 11,681,792
Class C 1,632,938 129,003
===========================================================================================================================
NET ASSETS
Total increase 27,080,811 59,425,663
---------------------------------------------------------------------------------------------------------------------
Beginning of period 163,046,323 103,620,660
------------- -------------
End of period [including undistributed (overdistributed) net
investment income of $23,659 and $(16,697), respectively] $190,127,134 $163,046,323
------------- -------------
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Value Stock Fund
<PAGE> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------
YEAR ENDED DECEMBER 31,
1996 1995 1994
=============================================================================================
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $17.84 $14.16 $14.41
- ----------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .34 .32 .31
Net realized and unrealized gain 3.11 3.90 .16
------ ------ ------
Total income (loss) from investment operations 3.45 4.22 .47
- ----------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.35) (.30) (.31)
Dividends in excess of net investment income -- -- (.01)
Distributions from net realized gain (.61) (.24) (.40)
------ ------ ------
Total dividends and distributions to shareholders (.96) (.54) (.72)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $20.33 $17.84 $14.16
------ ------ ------
==============================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 19.39% 30.04% 3.28%
==============================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $148,129 $136,270 $92,728
- ----------------------------------------------------------------------------------------------
Average net assets (in thousands) $144,498 $115,137 $90,158
- ----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.73% 1.98% 2.16%
Expenses, before voluntary reimbursement 1.20% 1.28% 1.27%
Expenses, net of voluntary reimbursement N/A N/A N/A
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 14.5% 11.8% 16.3%
Average brokerage commission rate(6) $0.0573 $0.0597 --
</TABLE>
1. For the period from October 2, 1995 (inception of offering) to December 31,
1995.
2. For the period from May 1, 1993 (inception of offering) to December 31,
1993.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
12 Oppenheimer Value Stock Fund
<PAGE> 13
<TABLE>
<CAPTION>
CLASS B CLASS C
- --------------------------- -------------------------------------------------------------- --------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1993 1992 1996 1995 1994 1993(2) 1996 1995(1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$14.19 $13.57 $17.73 $14.09 $14.35 $14.60 $17.81 $17.12
- -------------------------------------------------------------------------------------------------------------------------------
.29 .32 .19 .21 .17 .17 .22 .02
.98 .97 3.09 3.86 .19 .51 3.05 .97
- ------ ------- ------- ------- ------- ------- ------ ------
1.27 1.29 3.28 4.07 .36 .68 3.27 .99
- -------------------------------------------------------------------------------------------------------------------------------
(.29) (.32) (.21) (.19) (.21) (.17) (.23) (.06)
-- -- -- -- (.01) --- --- ---
(.76) (.35) (.61) (.24) (.40) (.76) (.61) (.24)
- ------ ------- ------- ------- ------- ------- ------ ------
(1.05) (.67) (.82) (.43) (.62) (.93) (.84) (.30)
- ------------------------------------------------------------------------------------------------------------------------------
$14.41 $14.19 $20.19 $17.73 $14.09 $14.35 $20.24 $17.81
======= ======= ======= ======= ======= ======= ======= =======
==============================================================================================================================
8.97% 9.61% 18.50% 29.03% 2.50% 4.63% 18.39% 5.89%
==============================================================================================================================
$90,470 $59,376 $40,142 $26,647 $10,893 $5,158 $1,856 $130
- ------------------------------------------------------------------------------------------------------------------------------
$80,229 $53,485 $33,258 $18,857 $7,834 $2,527 $904 $ 57
- ------------------------------------------------------------------------------------------------------------------------------
1.97% 2.34% 0.96% 1.19% 1.45% 0.97%(4) 0.92% 0.56%(4)
1.24% 1.19% 1.97% 2.07% 2.01% 2.14%(4) 2.02% 2.37%(4)
N/A N/A N/A N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------
24.3% 12.3% 14.5% 11.8% 16.3% 24.3% 14.5% 11.8%
-- -- $0.0573 $0.0597 -- -- $0.0573 $0.0597
</TABLE>
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 December 31, 1996 were $28,498,803 and $23,590,977,
respectively.
6. Total brokerage commissions paid on purchases and sales of portfolio
securities for the period, divided by the total number of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
13 Oppenheimer Value Stock Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Value Stock Fund (the Fund) 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 objective is to seek
long-term growth of capital and income primarily through investments
in stocks of well established companies. The Fund's investment
adviser is OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B and Class C shares. Class A shares are sold with a
front-end sales charge. Class B and Class C shares may be subject to
a contingent deferred sales charge. All three classes of shares have
identical rights to earnings, assets and voting privileges, except
that each class has its own 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 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 are valued 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.
----------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take
possession, to have legally segregated in the Federal Reserve Book
Entry System or to have segregated within the custodian's vault, all
securities held as collateral for repurchase agreements. The market
value of the underlying securities is required to be at least 102% of
the resale price at the time of purchase. If the seller of the
agreement defaults and the value of the collateral declines, or if
the seller enters an insolvency proceeding, realization of the value
of the collateral by the Fund may be delayed or limited.
----------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income,
expenses (other than those attributable to a specific class) and
gains and losses are allocated daily to each class of shares based
upon the relative proportion of net assets represented by such class.
Operating expenses directly attributable to a specific class are
charged against the operations of that class.
----------------------------------------------------------------------
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 TO SHAREHOLDERS. Net investment
income (loss) and net realized gain (loss) may differ for financial
statement and tax purposes. The character of the distributions made
during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax
purposes. Also, due to timing of dividend distributions, the fiscal
year in which amounts are distributed may differ from the year that
the income or realized gain (loss) was recorded by the Fund.
During the year ended December 31, 1996, the Fund
adjusted the classification of distributions to shareholders to
reflect the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, during the year ended December 31, 1996, amounts have
been reclassified to reflect a decrease in paid-in capital of
$131,277. Overdistributed net investment income was decreased by the
same amount.
14 Oppenheimer Value Stock Fund
<PAGE> 15
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
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.
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
================================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of
beneficial interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996 YEAR ENDED DECEMBER 31, 1995(1)
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,459,943 $ 28,270,600 1,806,348 $ 29,186,663
Dividends and distributions reinvested 250,205 5,056,348 228,838 3,907,434
Redeemed (2,062,372) (40,229,269) (944,270) (15,420,246)
------------- ------------- ------------- -------------
Net increase (decrease) (352,224) $(6,902,321) 1,090,916 $17,673,851
============= ============= ============= =============
----------------------------------------------------------------------------------------------------------------
Class B:
Sold 730,295 $13,930,290 982,843 $15,746,572
Dividends and distributions reinvested 71,393 1,445,827 32,137 551,627
Redeemed (315,951) (5,995,805) (285,236) (4,616,407)
------------- ------------- ------------- -------------
Net increase 485,737 $9,380,312 729,744 $11,681,792
============= ============= ============= =============
------------------------------------------------------------------------------------------------------------------
Class C:
Sold 93,935 $1,815,265 7,236 $128,066
Dividends and distributions reinvested 3,157 64,356 112 1,972
Redeemed (12,697) (246,683) (58) (1,035)
------------- ------------- ------------- -------------
Net increase 84,395 $1,632,938 7,290 $129,003
============= ============= ============= =============
</TABLE>
1. For the year ended December 31, 1995 for Class A and Class B
shares and for the period from October 2, 1995 to December 31, 1995
for Class C shares.
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$65,705,544 was composed of gross appreciation of $65,833,030, and
gross depreciation of $127,486.
================================================================================
4. MANAGEMENT FEES AND
OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee
of 0.75% on the first $100 million of average annual net assets with
a reduction of 0.03% on each $200 million thereafter, to 0.66% 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 year ended December 31, 1996, commissions
(sales charges paid by investors) on sales of Class A shares totaled
$345,153, of which $192,834 was retained by OppenheimerFunds
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 and
Class C shares totaled $401,158 and $15,057, of which $67,248 and
$1,741, respectively, was paid to an affiliated broker/dealer. During
the year ended December 31, 1996, OFDI received contingent deferred
sales charges of $49,374 upon redemption of Class B shares as
reimbursement for sales commissions advanced by OFDI at the time of
sale of such shares.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the
Fund, and for other registered investment companies. OFS's total
costs of providing such services are allocated ratably to these
companies.
15 Oppenheimer Value Stock Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. MANAGEMENT FEES AND
OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
The Fund has adopted a Service Plan for Class A shares to reimburse
OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may
not exceed 0.25% of the average annual net assets of Class A shares
of the Fund. OFDI uses the service fee to reimburse brokers, dealers,
banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that
hold Class A shares. During the year ended December 31, 1996, OFDI
paid $216,769 to an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses.
The Fund has adopted a reimbursement type
Distribution and Service Plan for Class B shares to reimburse OFDI
for its services and costs in distributing Class B shares and
servicing accounts. Under the Plan, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B shares. OFDI
also receives a service fee of 0.25% per year to reimburse dealers
for providing personal services for accounts that hold Class B
shares. Both fees are computed on the average annual net assets of
Class B shares, determined as of the close of each regular business
day. During the year ended December 31, 1996, OFDI paid $11,278 to an
affiliated broker/dealer as reimbursement for Class B personal
service and maintenance expenses and retained $277,247 as
reimbursement for Class B sales commissions and service fee advances,
as well as financing costs. If the Plan is terminated by the Fund,
the Board of Trustees may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain expenses it incurred
before the Plan was terminated. As of December 31, 1996, OFDI had
incurred unreimbursed expenses of $881,627 for Class B.
The Fund has adopted a compensation type Distribution
and Service Plan for Class C shares to compensate OFDI for its
services and costs in distributing Class C shares and servicing
accounts. Under the Plan, the Fund pays OFDI an annual asset-based
sales charge of 0.75% per year on Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing
personal services for accounts that hold Class C shares. Both fees
are computed on the average annual net assets of Class C shares,
determined as of the close of each regular business day. During the
year ended December 31, 1996, OFDI retained $8,196 as compensation
for Class C sales commissions and service fee advances, as well as
financing costs. If the Plan is terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the asset-based
sales charge to OFDI for certain expenses it incurred before the Plan
was terminated. As of December 31, 1996, OFDI had incurred
unreimbursed expenses of $34,962 for Class C.
16 Oppenheimer Value Stock Fund
<PAGE> 17
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Trustees and Shareholders of Oppenheimer Value Stock
Fund:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Oppenheimer Value Stock
Fund as of December 31, 1996, the related statement of operations for
the year then ended, the statements of changes in net assets for the
years ended December 31, 1996 and 1995 and the financial highlights
for the period January 1, 1992 to December 31, 1996. These financial
statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December
31, 1996 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and
financial highlights present fairly, in all material respects, the
financial position of Oppenheimer Value Stock Fund at December 31,
1996, the results of its operations, the changes in its net assets,
and the financial highlights for the respective stated periods, in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
January 22, 1997
17 Oppenheimer Value Stock Fund
<PAGE> 18
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1997, shareholders will receive information regarding all
dividends and distributions paid to them by the Fund during calendar
year 1996. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
Distributions of $0.7266, $0.6828 and $0.6882 per
share were paid to Class A, Class B and Class C shareholders,
respectively, on December 26, 1996, of which, for each class of
shares, $0.5394 was designated as a "capital gain distribution" for
federal income tax purposes. Whether received in stock or cash, the
capital gain distribution should be treated by shareholders as a gain
from the sale of capital assets held for more than one year
(long-term capital gains).
Dividends paid by the Fund during the fiscal year
ended December 31, 1996 which are not designated as capital gain
distributions should be multiplied by 100% to arrive at the net
amount eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist
shareholders in reporting distributions received from the Fund to the
Internal Revenue Service. Because of the complexity of the federal
regulations which may affect your individual tax return and the many
variations in state and local tax regulations, we recommend that you
consult your tax adviser for specific guidance.
18 Oppenheimer Value Stock Fund
<PAGE> 19
OPPENHEIMER VALUE STOCK FUND
A Series of Oppenheimer Integrity Funds
================================================================================
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
James W. MacAllen, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
================================================================================
SUB-ADVISER
David L. Babson & Co., Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
The Bank of New York
================================================================================
INDEPENDENT AUDITORS
Deloitte & Touche LLP
================================================================================
LEGAL COUNSEL
Myer, Swanson, Adams & Wolf, P.C.
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.
19 Oppenheimer Value Stock Fund
<PAGE> 20
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
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
RA0325.001.1296 February 28, 1997
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or
ready account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only
a toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
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 Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- -----------------------------------
Bulk Rate
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Denver, CO
- -----------------------------------
