[FRONT COVER]
Oppenheimer Gold & Special Minerals Fund
Annual Report June 30, 1996
[Picture of Shopping Couple]
"I need to
diversify
to protect
the overall
performance of
my investment
portfolio."
[LOGO-OPPENHEIMERFUND (R)]
<PAGE>
News
Beat the Average
Cumulative Total Return for the
10-Year Period Ended 6/30/96:
Oppenheimer Gold & Special
Minerals Fund
Class A (at net asset value) (1)
259.76%
Lipper Gold-Oriented Funds
Average (3)
143.15%
This Fund is for people who want a growth investment that is intended to help
offset some of the risks of the other investments in their portfolio.
How Your Fund Is Managed
Oppenheimer Gold & Special Minerals Fund invests in the stocks of companies
engaged in mining, processing, fabricating or distributing gold and other metals
or minerals. Investing in stocks of gold and other precious and strategic
metals producers can provide a hedge against inflation and declines in stock
prices that reflect a weakening U.S. dollar. So, as a Fund shareholder, you may
benefit from having a portion of your overall portfolio allocated to potentially
offset the risks of your other investments.
Performance
Total return at net asset value for the twelve months ended 6/30/96 was 5.44%
for Class A shares. The cumulative total return at net asset value for Class B
and C shares since inception on 11/1/95 was 14.25% and 14.41%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for Class A
shares for the 1-, 5-, and 10-year periods ended 6/30/96 were (0.62)%, 6.20% and
12.99%, respectively. For Class B and C shares, cumulative total returns since
inception on 11/1/95 was 9.25% and 13.41%, respectively.(2)
Outlook
"We believe the outlook continues to be very favorable. Gold funds, in general,
can be a good way for investors to diversify their investments, as well as an
excellent hedge against inflation."
Diane Sobin, Portfolio Manager
June 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. 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.
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 6/30/95, 6/30/91
and 6/30/86, after deducting the current maximum initial sales charge of 5.75%.
The Fund's maximum sales charge rate for Class A shares was higher during a
portion of some of the periods shown, and actual investment results would have
been less. Class B and C shares show results of hypothetical investments on
11/1/95, after deducting (i) the 5% contingent deferred sales charge for Class B
shares, (ii) the 1% contingent sales charge for Class C shares. An explanation
of the different performance calculations is in the Fund's prospectus.
3. Source: Lipper Analytical Services. The Lipper total return average for the
10-year period was for 19 gold-oriented funds. The average is shown for
comparative purposes only. Oppenheimer Gold & Special Minerals Fund is
characterized by Lipper as a gold-oriented fund. Lipper performance does not
take sales charges into consideration.
2 Oppenheimer Gold & Special Minerals Fund
<PAGE>
[PHOTO-BRIDGET A. MACASKILL]
Bridget A. Macaskill
President
Oppenheimer
Gold & Special
Minerals Fund
Dear Shareholder,
Against all odds, the stock market showed remarkable strength during the first
five months of 1996. However, in the few months that followed, the market
experienced significant volatility that resulted in a decline in the Dow of
about 7 percent.
Many experts said the stock market, having advanced to record heights in
1995 and void of any real market correction since 1990, was due for a downturn.
This was, after all, the longest bull market of the post-World War II era.
Thanks to the 10% rise in blue chip stocks during the first half of 1996 and the
early success of small stocks, the decline that occurred recently was somewhat
cushioned. While it's impossible to tell what will happen next, we are
optimistic that this turn was a correction within a bull market rather than the
onset of a bear market.
What made the market perform so well during the first part of the year? It
was another surprise: corporate profits. Between 1992 and 1995, corporate
profits of U.S. companies advanced at a double-digit rate. Investors widely
expected this year's profit tallies to be flat compared to 1995. After all, the
economy had been sluggish--growing at an annual rate of just 2.3% in the first
quarter of 1996. But corporate America continued to perform.
The reason corporate profits were so strong is that many U.S. companies
continued to successfully reduce costs. Often when a company achieves a small
increase in sales, the benefit goes straight to the bottom line. Indeed, the
U.S. Commerce Department reports indicated that corporate profits rose 15% for
the four quarters ended March 1996, while the economy grew only marginally.
Still, profits are not what they were in the early 1990s. That's why
investors are seeking out companies that can grow earnings regardless of the
fortunes of the economy. Which is just what many small companies in such fields
as technology, healthcare and specialty retailing have been doing, growing
earnings at double-digit--and even triple-digit rates. So it's not surprising
that the stocks of many of these small fast-growing companies have been such
strong performers.
The early strength of the stock market is all the more remarkable when you
consider that during the same period, interest rates moved up sharply. The yield
on the benchmark 30-year U.S. Treasury bond rose from about 6% in January to
over 7% today. Interest rates have been rising partly because investors are
concerned that the economy is growing fast enough to generate higher inflation.
However, we are watching this very closely, and would become very cautious
regarding the stock market's performance if inflation were to flare up.
As always, remember stock investments are generally meant for long-term
growth objectives, and often involve short-term volatility. So, it's critical
for investors to keep their focus on long-term goals and to put near-term
setbacks in proper prospective.
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/ Bridget A. Macaskill
Bridget A. Macaskill
July 22, 1996
3 Oppenheimer Gold & Special Minerals Fund
<PAGE>
Q + A [PHOTO-DIANE SOBIN] [PHOTO-FRANK JENNINGS]
Q What
is your
outlook
for the Fund?
An interview with your Fund's managers.
How did the Fund perform over the period?
The Fund did well, turning in good results for the twelve months ended June
30th. The Fund's performance this year was largely the result of
faster-than-expected global economic growth that raised concerns about
inflation. This change in perception benefits gold because it triggers a greater
demand for the metal. The strength of the stock market over the past six months
was another advantage.
What investments made positive contributions to performance?
After several years of lackluster price movement, the price of gold headed
upward at the end of 1995. The reason for this movement was two-fold: increased
demand for jewelry and a decreased supply due to a rising lease rate for gold.
Beyond the broad appreciation in gold, our investment strategies contributed to
the Fund's good performance. We search for companies that are positioned for
long-term growth driven by production growth and reserve base. A number of our
more successful investments were in companies involved in a turnaround, or who
had made positive changes in management. Another large benefit was the fact that
our holdings during the period were generally focused on companies that were
lower-cost producers with rising production capacities.
Additionally, our copper and tin investments performed well. This was due to an
increase in demand for these metals that arose from relatively strong economies
both in the U.S. and abroad. Finally, we've been well-diversified by region,
with holdings in over ten countries.(1)
(1) The Fund's portfolio is subject to change.
[PHOTO-BILL WILBY]
4 Oppenheimer Gold & Special Minerals Fund
<PAGE>
[PHOTO-Robert Doll]
Facing Page
Top Left: Diane Sobin, Portfolio Manager
Top Right: Frank Jennings, Member of Global Investments Team
Bottom: Bill Wilby, Senior VP, Director of Global Investments
This page
Top: Robert Doll, Executive VP, Director of Equity Investments
Bottom: Shanquan Li, Member of Global Investments Team
A Very
favorable,
with strong
research and
diversification
within the
industry.
Did any investments or market factors negatively impact the Fund?
Most of our investments, both in gold and base metal stocks, performed very well
this year. Diversifying the portfolio to include base metals other than gold
helped the Fund when the price of gold was in a narrow trading range. But, with
gold's relative strength this year, we would have benefited more had we owned a
larger position in gold shares. Diversification over the long term within the
metals and minerals industries has contributed significantly to the Fund's
performance.
What areas of the market are you currently targeting?
We favor companies that are current producers of ore rather than smaller,
untested exploration companies. We like companies with strong track records and
consistently growing core assets that provide the financial flexibility for
continued growth. With the recent pullback in gold shares we have had the
opportunity to add companies with explo-ration operations which we believe have
superior assets and management capabilities. Additionally, we're reducing our
copper exposure, and locking in the gains made as a result of their strong
appreciation over the period, and a poor supply/demand outlook.
What is your outlook for the Fund?
We believe the outlook continues to be very favorable. Gold funds, in general,
can be a good way for investors to diversify their investments, as well as serve
as an excellent hedge against inflation. As inflation fears rise, the price of
gold normally increases. But beyond the potential benefits that gold funds
typically offer, we have the added flexibility of being able to invest in other
metals. We believe this strategy, combined with our careful research into
specific gold and base metals companies, positions the Fund for growth over
time and will allow us to take advantage of the market's potential while
limiting volatility.
[PHOTO-Shanquan Li]
5 Oppenheimer Gold & Special Minerals Fund
<PAGE>
Statement of Investments June 30, 1996
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
====================================================================================================================================
Convertible Corporate Bonds and Notes--1.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Ashanti Capital Ltd., 5.50% Gtd. Exchangeable Nts., 3/15/03 $ 1,000,000 $ 935,000
--------------------------------------------------------------------------------------------------
Lonrho Finance PLC, 6% Gtd. Cv. Bonds, 2/27/04GBP 1,000,000 1,571,281
-----------
Total Convertible Corporate Bonds and Notes (Cost $2,504,522) 2,506,281
Shares
====================================================================================================================================
Common Stocks--90.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Materials--87.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.2% Engelhard Corp. 110,000 2,530,000
--------------------------------------------------------------------------------------------------
Johnson Matthey PLC 302,500 2,923,555
-----------
5,453,555
- ------------------------------------------------------------------------------------------------------------------------------------
Gold and Platinum--68.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Australia--9.9% Acacia Resources Ltd.(2) 300,000 708,348
--------------------------------------------------------------------------------------------------
Delta Gold NL(2) 1,000,000 2,557,923
--------------------------------------------------------------------------------------------------
Gold Mines of Kalgoorlie Ltd. 1,597,604 1,747,785
--------------------------------------------------------------------------------------------------
Golden Shamrock Mines Ltd.(2) 2,000,000 1,794,481
--------------------------------------------------------------------------------------------------
Great Central Mines NL(2) 317,000 868,246
--------------------------------------------------------------------------------------------------
Newcrest Mining Ltd. 500,000 2,006,986
--------------------------------------------------------------------------------------------------
Placer Pacific Ltd. 800,000 1,164,839
--------------------------------------------------------------------------------------------------
Plutonic Resources Ltd. 350,000 1,790,546
--------------------------------------------------------------------------------------------------
Renison Goldfields Ltd.(2) 116,000 264,765
--------------------------------------------------------------------------------------------------
RGC Ltd. 500,000 2,420,189
--------------------------------------------------------------------------------------------------
Sons of Gwalia Ltd. 180,000 1,275,026
-----------
16,599,134
- ------------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Canada--21.9% Agnico-Eagle Mines, Ltd. 75,000 1,218,750
--------------------------------------------------------------------------------------------------
Barrick Gold Corp. 220,000 5,967,500
--------------------------------------------------------------------------------------------------
Cambior, Inc. 215,000 2,841,750
--------------------------------------------------------------------------------------------------
Dayton Mining Corp.(2) 520,000 3,122,391
--------------------------------------------------------------------------------------------------
Dayton Mining Corp.(2)(3) 320,000 1,921,472
--------------------------------------------------------------------------------------------------
Glamis Gold Ltd. 120,000 856,754
--------------------------------------------------------------------------------------------------
Goldcorp, Inc., Cl. A(2) 60,000 992,956
--------------------------------------------------------------------------------------------------
Hemlo Gold Mines, Inc. 250,000 2,672,779
--------------------------------------------------------------------------------------------------
Kap Resources Ltd.(2) 525,000 1,422,431
--------------------------------------------------------------------------------------------------
Kinross Gold(2) 84,600 638,084
--------------------------------------------------------------------------------------------------
Metallica Resources, Inc.(2) 100,000 362,473
--------------------------------------------------------------------------------------------------
Monarch Resources(2)(3) 300,000 538,217
--------------------------------------------------------------------------------------------------
Pegasus Gold, Inc.(2) 80,000 980,000
--------------------------------------------------------------------------------------------------
Placer Dome, Inc. 170,000 4,058,750
--------------------------------------------------------------------------------------------------
Prime Resource Group, Inc. 255,000 1,885,957
--------------------------------------------------------------------------------------------------
Royal Oak Mines, Inc.(2) 150,000 553,125
</TABLE>
6 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Canada Teck Corp., Cl. B 150,000 $ 3,075,526
(continued) --------------------------------------------------------------------------------------------------
TVX Gold, Inc.(2)(4) 385,000 2,819,232
--------------------------------------------------------------------------------------------------
Viceroy Resources Corp.(2) 145,000 838,813
-----------
36,766,960
- ------------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Anglo American Corp. of South Africa Ltd., ADR 55,000 3,478,750
South Africa--9.6% --------------------------------------------------------------------------------------------------
Ashanti Goldfields Co. Ltd., Sponsored GDR 145,000 2,863,750
--------------------------------------------------------------------------------------------------
Driefontein Consolidated Ltd. ADR 235,000 3,084,375
--------------------------------------------------------------------------------------------------
Free State Consolidated Gold Mines Ltd., ADR 55,000 508,750
--------------------------------------------------------------------------------------------------
Southvaal Holdings Ltd., ADR 50,000 1,789,690
--------------------------------------------------------------------------------------------------
Vaal Reefs Exploration & Mining Co. Ltd., ADR 260,000 2,080,000
--------------------------------------------------------------------------------------------------
Western Areas Gold Mining Co. Ltd., Unsponsored ADR 152,281 2,373,695
-----------
16,179,010
- ------------------------------------------------------------------------------------------------------------------------------------
Gold Mining: Amax Gold, Inc.(2) 95,000 522,500
United States--15.2% --------------------------------------------------------------------------------------------------
Battle Mountain Gold Co., Cl. A 170,000 1,232,500
--------------------------------------------------------------------------------------------------
Coeur d'Alene Mines Corp. 25,000 459,375
--------------------------------------------------------------------------------------------------
Crown Resources Corp.(2) 175,000 918,750
--------------------------------------------------------------------------------------------------
Getchell Gold Corp.(2) 80,000 2,640,000
--------------------------------------------------------------------------------------------------
Hecla Mining Co.(2) 130,000 910,000
--------------------------------------------------------------------------------------------------
Homestake Mining Co. 215,000 3,681,875
--------------------------------------------------------------------------------------------------
Newmont Mining Corp. 164,291 8,111,868
--------------------------------------------------------------------------------------------------
Santa Fe Pacific Gold Corp. 496,000 7,006,000
-----------
25,482,868
- ------------------------------------------------------------------------------------------------------------------------------------
Gold Related Investment--8.1% Cambiex Exploration, Inc.(2)(5) 1,500,000 768,881
--------------------------------------------------------------------------------------------------
Canarc Resource Corp.(2) 282,500 351,672
--------------------------------------------------------------------------------------------------
Canarc Resource Corp.(2) 450,000 560,193
--------------------------------------------------------------------------------------------------
Euro-Nevada Mining Corp. 170,500 7,303,825
--------------------------------------------------------------------------------------------------
Franco-Nevada Mining Corp. Ltd. 60,000 3,800,472
--------------------------------------------------------------------------------------------------
Manila Mining Corp., Cl. B 420,000,000 416,807
--------------------------------------------------------------------------------------------------
Nelson Gold Corp. Ltd.(2) 500,000 439,361
-----------
13,641,211
- ------------------------------------------------------------------------------------------------------------------------------------
Platinum Mining--3.5% Anglo American Platinum Corp. Ltd., Unsponsored ADR(2) 133,240 830,751
--------------------------------------------------------------------------------------------------
Rustenburg Platinum Holdings Ltd., ADR 79,479 1,238,887
--------------------------------------------------------------------------------------------------
Stillwater Mining Co.(2) 160,000 3,780,000
-----------
5,849,638
-----------
114,518,821
- ------------------------------------------------------------------------------------------------------------------------------------
Metals--16.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Aluminum--0.7% Nippon Light Metal Co. 200,000 1,134,193
- ------------------------------------------------------------------------------------------------------------------------------------
Copper--5.4% Aur Resources, Inc.(2) 100,000 713,961
--------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. A 224,455 6,705,593
--------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 30,000 956,250
--------------------------------------------------------------------------------------------------
Phelps Dodge Corp. 10,000 623,750
-----------
8,999,554
</TABLE>
7 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Metals: Diversified--5.1% Aber Resources Ltd.(2) 70,000 $ 909,843
--------------------------------------------------------------------------------------------------
Aluminum Co. of America 12,000 688,500
--------------------------------------------------------------------------------------------------
Ashton Mining Ltd. 600,000 850,018
--------------------------------------------------------------------------------------------------
Brush Wellman, Inc. 70,000 1,330,000
--------------------------------------------------------------------------------------------------
Elkem AS 150,000 2,066,551
--------------------------------------------------------------------------------------------------
RTZ Corp. PLC 93,000 1,378,563
--------------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 199,988 1,432,351
-----------
8,655,826
- ------------------------------------------------------------------------------------------------------------------------------------
Metals: Miscellaneous--3.1% J&L Specialty Steel, Inc. 20,000 297,500
--------------------------------------------------------------------------------------------------
Korea Zinc Co. 60,000 1,375,784
--------------------------------------------------------------------------------------------------
Pasminco Ltd. 1,250,000 1,761,032
--------------------------------------------------------------------------------------------------
PT Tambang Timah, GDR(3) 101,000 1,866,005
-----------
5,300,321
- ------------------------------------------------------------------------------------------------------------------------------------
Nickel--2.0% Eramet SA 25,000 1,682,663
--------------------------------------------------------------------------------------------------
Falconbridge Ltd. 75,000 1,631,127
-----------
3,313,790
-----------
27,403,684
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial--2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing--2.6% Madeco SA, ADR 60,000 1,687,500
--------------------------------------------------------------------------------------------------
Svedala Industri, AB Free 140,000 2,647,889
-----------
4,335,389
-----------
Total Common Stocks (Cost $115,003,266) 151,711,449
====================================================================================================================================
Preferred Stocks--1.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Battle Mountain Gold Co., $3.25 Cum. Cv. (Cost $1,761,270) 34,500 1,690,500
====================================================================================================================================
Other Securities--0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Coeur d'Alene Corp. $1.488 Cum. Mandatory Adjustable Redeemable
Cv. Securities (Cost $1,487,499) 70,000 1,382,500
</TABLE>
8 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Units See Note 1
<S> <C> <C>
====================================================================================================================================
Rights, Warrants and Certificates--0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Kap Resources Ltd. Wts., Cl. A, Exp. 8/00 252,500 $ 295,837
--------------------------------------------------------------------------------------------------
Lynas Gold NL Wts., Exp. 6/99 1,200,000 75,557
-----------
371,394
-----------
Total Rights, Warrants and Certificates (Cost $253,473) 371,394
Face
Amount(1)
====================================================================================================================================
Repurchase Agreement--6.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Canadian Imperial Bank of Commerce,
5.45%, dated 6/28/96, to be repurchased at $10,804,905 on 7/1/96,
collateralized by U.S. Treasury Bonds, 9.125%--11.25%, 2/15/15--5/11/18,
with a value of $3,817,669, and U.S. Treasury Nts., 5.25%--8.50%,
1/11/97--11/15/04, with a value of $7,214,885 (Cost $10,800,000) $10,800,000 10,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $131,810,030) 100.3% 168,462,124
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.3) (420,908)
----------- ------------
Net Assets 100.0% $168,041,216
============ ============
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted in the
following currency: GBP--British Pound Sterling
2. Non-income producing security.
3. Represents a security sold under Rule 144A, which is exempt from registration
under the Securities Act of 1933, as amended. This security has been determined
to be liquid under guidelines established by the Board of Trustees. These
securities amount to $4,325,694 or 2.57% of the Fund's net assets, at June 30,
1996.
4. Identifies issues considered to be illiquid--See Note 5 of Notes to Financial
Statements.
5. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended June 30, 1996. The
aggregate fair value of all securities of affiliated companies as of June 30,
1996 amounted to $768,881. Transaction during the period in which the issuer was
an affiliate are as follows:
<TABLE>
<CAPTION>
Balance Balance
June 30, 1995 Gross Additions Gross Reductions June 30, 1996
--------------- --------------- ---------------- ---------------- Dividend
Shares Cost Shares Cost Shares Cost Shares Cost Income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Cambiex Exploration, Inc. 1,500,000 $ 756,573 -- $ -- -- $ -- 1,500,000 $ 756,573 $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Cambiex Exploration, Inc.
Wts., Exp. 12/95 750,000 112,921 -- -- 750,000 112,921 -- -- --
-------- -------- -------- -------- --------
$869,494 $ -- $112,921 $756,573 $ --
======== ======== ======== ======== ========
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
Statement of Assets and Liabilities June 30, 1996
<CAPTION>
<S> <C> <C>
====================================================================================================================================
Assets Investments, at value--see accompanying statement:
Unaffiliated companies (cost $131,053,457) $167,693,243
Affiliated companies (cost $756,573) 768,881
-------------------------------------------------------------------------------------------------
Cash 52,385
-------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 581,512
Interest and dividends 332,889
-------------------------------------------------------------------------------------------------
Other 11,612
-----------
Total assets 169,440,522
====================================================================================================================================
Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 1,050,405
Trustees' fees 98,912
Distribution and service plan fees 92,044
Shareholder reports 73,724
Transfer and shareholder servicing agent fees 39,342
Other 44,879
-----------
Total liabilities 1,399,306
====================================================================================================================================
Net Assets $168,041,216
============
====================================================================================================================================
Composition of Paid-in capital $142,419,044
Net Assets -------------------------------------------------------------------------------------------------
Undistributed net investment income 196,070
-------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment and foreign currency transactions (11,226,872)
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 36,652,974
------------
Net assets $168,041,216
============
====================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$161,768,648 and 11,431,464 shares of beneficial interest outstanding) $ 14.15
Maximum offering price per share
(net asset value plus sales charge of 5.75% of offering price) $ 15.01
-------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $4,882,302 and 346,098 shares of beneficial interest outstanding) $ 14.11
-------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $1,390,266 and 98,421 shares of beneficial interest outstanding) $ 14.13
See accompanying Notes to Financial Statements.
</TABLE>
10 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations For the Year Ended June 30, 1996
<S> <C> <C>
====================================================================================================================================
Investment Income Dividends (net of foreign withholding taxes of $204,229) $ 2,041,697
-------------------------------------------------------------------------------------------------
Interest 811,802
-----------
Total income 2,853,499
====================================================================================================================================
Expenses Management fees--Note 4 1,302,108
-------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 389,957
-------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 345,697
Class B 16,774
Class C 5,463
-------------------------------------------------------------------------------------------------
Shareholder reports 144,207
-------------------------------------------------------------------------------------------------
Custodian fees and expenses 87,095
-------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 44,813
-------------------------------------------------------------------------------------------------
Legal and auditing fees 40,606
-------------------------------------------------------------------------------------------------
Insurance expenses 15,454
-------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 1,739
Class C 367
-------------------------------------------------------------------------------------------------
Other 27,690
------------
Total expenses 2,421,970
====================================================================================================================================
Net Investment Income 431,529
====================================================================================================================================
Realized and Unrealized Net realized loss on:
Gain (Loss) Investments:
Unaffiliated companies (550,265)
Affiliated companies (112,921)
Foreign currency transactions (824,935)
------------
Net realized loss (1,488,121)
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 8,543,423
Translation of assets and liabilities denominated in foreign currencies 1,997,763
------------
Net change 10,541,186
------------
Net realized and unrealized gain on investments and foreign
currency transactions 9,053,065
====================================================================================================================================
Net Increase in Net Assets Resulting From Operations $9,484,594
==========
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Gold & Special Minerals Fund
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets Year Ended June 30,
----------------------------
1996 1995
<S> <C> <C>
====================================================================================================================================
Operations Net investment income $ 431,529 $ 794,753
-------------------------------------------------------------------------------------------------
Net realized gain (loss) (1,488,121) 4,149,068
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 10,541,186 (2,322,499)
----------- -----------
Net increase in net assets resulting from operations 9,484,594 2,621,322
----------- -----------
====================================================================================================================================
Dividends and Distributions Dividends from net investment income:
To Shareholders Class A (705,030) (878,199)
====================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets resulting from beneficial interest
Transactions transactions--Note 2:
Class A (18,971,659) (9,037,115)
Class B 5,082,545 --
Class C 1,429,900 --
====================================================================================================================================
Net Assets Total decrease (3,679,650) (7,293,992)
-------------------------------------------------------------------------------------------------
Beginning of period 171,720,866 179,014,858
----------- -----------
End of period (including undistributed net investment
income of $196,070 and $636,579, respectively) $168,041,216 $171,720,866
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Gold & Special Minerals Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A Class B Class C
---------------------------------------------------- ------- --------
Period Period
Year Ended June 30, Ended Ended
---------------------------------------------------- June 30, June 30,
1996 1995 1994 1993 1992 1996(1) 1996(1)
<S> <C> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $13.48 $13.28 $12.32 $10.68 $10.36 $12.33 $12.33
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .04 .06 .06 .06 .16 (.01) (.01)
Net realized and unrealized gain .69 .21 .96 1.72 .35 1.79 1.81
------ ------ ------ ------ ------ ------ ------
Total income from
investment operations .73 .27 1.02 1.78 .51 1.78 1.80
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.06) (.07) (.06) (.14) (.19) -- --
------ ------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.06) (.07) (.06) (.14) (.19) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.15 $13.48 $13.28 $12.32 $10.68 $14.11 $14.13
====== ====== ====== ====== ====== ====== ======
====================================================================================================================================
Total Return, at Net Asset Value(2) 5.44% 2.03% 8.25% 17.15% 5.08% 14.25% 14.41%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $161,769 $171,721 $179,015 $158,982 $133,345 $4,882 $1,390
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $171,427 $178,579 $175,093 $124,869 $137,906 $2,588 $840
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.25% 0.45% 0.50% 0.61% 1.25% (0.25)%(3) (0.26)%(3)
Expenses 1.38% 1.36% 1.31% 1.38% 1.38% 2.22%(3) 2.19%(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 37.6% 35.8% 29.5% 23.9% 39.4% 37.6% 37.6%
Average brokerage commission rate(5) $0.0211 $0.0204 -- -- -- $0.0211 $0.0211
</TABLE>
1. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
2. 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.
3. Annualized.
4. 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, 1996 were $60,652,556 and $77,616,914, respectively.
5. Total brokerage commissions paid on applicable 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 Gold & Special Minerals Fund
<PAGE>
Notes to Financial Statements
================================================================================
1. Significant
Accounting Policies
Oppenheimer Gold & Special Minerals Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
capital appreciation by primarily investing in securities of companies engaged
in mining, processing, fabricating or distributing gold or other metals or
minerals. The Fund's investment advisor 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 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 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.
================================================================================
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of securities and investment income are translated at
the rates of exchange prevailing on the respective dates of such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
================================================================================
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. At June 30, 1996, the Fund
had available for federal income tax purposes an unused capital loss carryover
of approximately $10,674,000 which expires between 2000 and 2004.
================================================================================
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
June 30, 1996, a provision of $35,980 was made for the Fund's projected benefit
obligations and payments of $2,831 were made to retired trustees, resulting in
an accumulated liability of $91,440 at June 30, 1996.
14 Oppenheimer Gold & Special Minerals Fund
<PAGE>
================================================================================
1. Significant
Accounting Policies
(continued)
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of the recognition of certain foreign currency gains (losses)
as ordinary income (loss) for tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes. Also, due
to timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gain (loss) was
recorded by the Fund.
During the year ended June 30, 1996, the Fund changed the classification of
distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with
income tax regulations. Accordingly, during the year ended June 30, 1996,
amounts have been reclassified to reflect a decrease in undistributed net
investment income of $167,008 and a decrease in accumulated net realized loss on
investments of $167,008.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax requirements.
Realized gains and losses on investments and 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. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Year Ended June 30, 1996(1) Year Ended June 30, 1995
---------------------------------- -----------------------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Sold 11,015,184 $155,317,009 17,062,570 $227,723,637
Dividends reinvested 48,035 625,897 60,139 779,406
Redeemed (12,375,016) (174,914,565) (17,857,834) (237,540,158)
----------- ------------ ----------- ------------
Net decrease (1,311,797) $(18,971,659) (735,125) $(9,037,115)
=========== ============ =========== ============
- ------------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 434,241 $6,371,373 -- $ --
Dividends reinvested -- -- -- --
Redeemed (88,143) (1,288,828) -- --
----------- ------------ ----------- ------------
Net increase 346,098 $5,082,545 -- $ --
=========== ============ =========== ============
- ------------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 665,116 $9,742,400 -- $ --
Dividends reinvested -- -- -- --
Redeemed (566,695) (8,312,500) --
----------- ------------ ----------- ------------
Net increase 98,421 $1,429,900 -- $ --
=========== ============ =========== ============
</TABLE>
1. For the year ended June 30, 1996 for Class A shares, and for the period from
November 1, 1995 (inception of offering) to June 30, 1996 for Class B and Class
C shares.
================================================================================
3. Unrealized Gains and
Losses on Investments
At June 30, 1996, net unrealized appreciation on investments of $36,652,094 was
composed of gross appreciation of $43,029,691, and gross depreciation of
$6,377,597.
15 Oppenheimer Gold & Special Minerals Fund
<PAGE>
Notes to Financial Statements (Continued)
================================================================================
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
$200 million of average annual net assets, 0.72% on the next $200 million, 0.69%
on the next $200 million, 0.66% on the next $200 million and 0.60% on net assets
in excess of $800 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 June 30, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $632,631, of which $149,888 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 $156,794 and $11,946, of which $2,157 was paid to an
affiliated broker/dealer for Class B shares. During the year ended June 30,
1996, OFDI received contingent deferred sales charges of $13,383 and $1,459,
respectively, upon redemption of Class B and Class C 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.
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 June 30, 1996, OFDI paid $7,495 to an affiliated
broker/dealer as reimbursement for Class A personal service and maintenance
expenses.
The Fund has adopted compensation type Distribution and Service Plans for
Class B and Class C shares to compensate OFDI for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under the Plans,
the Fund pays OFDI an annual asset-based sales charge of 0.75% per year on Class
B shares that are outstanding for 6 years or less and on Class C shares, as
compensation for sales commissions paid from its own resources at the time of
sale and associated financing costs. If the Plans are 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 Plans were
terminated. OFDI also receives a service fee of 0.25% per year as compensation
for costs incurred in connection with the personal service and maintenance of
accounts that hold shares of the Fund, including amounts paid to brokers,
dealers, banks and other financial institutions. Both fees are computed on the
average annual net assets of Class B and Class C shares, determined as of the
close of each regular business day. During the year ended June 30, 1996, OFDI
retained $16,774 and $5,463, respectively, as compensation for Class B and Class
C sales commissions and service fee advances, as well as financing costs. At
June 30, 1996, OFDI had incurred unreimbursed expenses of $184,746 for Class B
and $29,556 for Class C.
================================================================================
5. Illiquid and
Restricted Securities
At June 30, 1996, investments in securities included issues that are illiquid or
restricted. The securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if its valuation has not changed for a certain period of time. The Fund
intends to invest no more than 10% of its net assets (determined at the time of
purchase and reviewed from time to time) in illiquid or restricted securities.
The aggregate value of these securities subject to this limitation at June 30,
1996 was $2,819,232, which represents 1.68% of the Fund's net assets.
Information concerning these securities is as follows:
Valuation Per
Unit as of
Security Acquisition Dates Cost Per Unit June 30, 1996
- --------------------------------------------------------------------------------
TVX Gold, Inc. 6/28/93--6/25/96 $4.77 $7.32
Pursuant to guidelines adopted by the Board of Trustees, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
16 Oppenheimer Gold & Special Minerals Fund
<PAGE>
Independent Auditors' Report
================================================================================
The Board of Trustees and Shareholders of Oppenheimer Gold & Special Minerals
Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Gold & Special Minerals Fund as of June 30, 1996, and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the years in the five-year period then
ended. 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 as of June
30, 1996, by correspondence with the custodian and brokers; and where
confirmations 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Gold & Special Minerals Fund as of June 30, 1996, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
July 22, 1996
17 Oppenheimer Gold & Special Minerals Fund
<PAGE>
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.
Dividends paid by the Fund during the fiscal year ended June 30, 1996 which
are not designated as capital gain distributions should be multiplied by 100.00%
to arrive at the net amount eligible for the corporate dividend-received
deduction.
The Fund has elected the application of Section 853 of the Internal Revenue
Code to permit shareholders to take a federal income tax credit or deduction, at
their option, on a per share basis for an aggregate amount of $204,229 of
foreign income taxes paid by the Fund during the fiscal year ended June 30,
1996. A separate notice will be mailed to each shareholder in January of 1997,
which will reflect the proportionate share of such foreign taxes (as well as the
dividend expected to be paid by the Fund in December of 1996) which must be
treated by shareholders as gross income for federal income tax purposes.
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 advisor for specific guidance.
18 Oppenheimer Gold & Special Minerals Fund
<PAGE>
Oppenheimer Gold & Special Minerals Fund
================================================================================
Officers and Trustees
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Diane Sobin, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder
Servicing Agent
OppenheimerFunds Services
================================================================================
Custodian of
Portfolio Securities
The Bank of New York
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Gold & Special
Minerals Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Gold & Special Minerals 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 Gold & Special Minerals Fund
<PAGE>
[BACK COVER]
Information
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RA0410.001.0696 August 31, 1996
[Picture of Jennifer Leonard]
[Caption] Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
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