<PAGE> 1
OPPENHEIMER ASSET ALLOCATION FUND
SEMI-ANNUAL REPORT JUNE 30, 1994
(OPPENHEIMERFUNDS(R) LOGO)
[PHOTO #1 -- SEE EDGAR APPENDIX]
"I WANT GROWTH FROM MY INVESTMENTS.
BUT RIGHT NOW I CAN'T ASSUME TOO MUCH RISK.
"THIS FUND OFFERS THE POTENTIAL FOR
GROWTH WITH LESS VOLATILITY THAN MORE AGGRESSIVE STOCK FUNDS."
<PAGE> 2
FUND FACTS
IN THIS REPORT:
ANSWERS TO THREE QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
* DID THE FEDERAL RESERVE'S MOVES TO RAISE SHORT-TERM INTEREST RATES AFFECT THE
FUND'S PERFORMANCE OR INVESTMENT STRATEGY?
* WHAT'S BEING DONE TO CONTROL RISK AND PRESERVE VALUE IN TODAY'S UNDERTAIN
MARKETS?
* WHERE DO YOU EXPECT TO FIND THE MOST ATTRACTIVE INVESTMENT OPPORTUNITIES IN
THE MONTH AHEAD?
- ------------------------------------------------------------------------------
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMTER ASSET ALLOCATION FUND
- ------------------------------------------------------------------------------
1 The Fund's objective is to seek high total investment return which includes
current income and capital appreciation.
- ------------------------------------------------------------------------------
2 Total return at net asset value for Class A shares for the 6-month period
ended June 30, 1994 was -4.10%. For Class C shares, that figure was
-4.63%.(1)
- ------------------------------------------------------------------------------
3 Average annual total returns for Class A shares for the 1- and 5-year periods
ended June 30, 1994 and since commencement of reorganized operations on April
24, 1987 were -2.39%, 6.82%, and 7.11%, respectively. The total return for
Class C shares from inception on December 1, 1993 to June 30, 1994 was
-3.21%.(2)
- ------------------------------------------------------------------------------
4 Asset allocation on June 30, 1994:(3)
COMMON STOCKS 43.3%
U.S. TREASURY NOTES AND BONDS 18.0%
FOREIGN STOCKS AND BONDS 17.3% (PIE CHART)
BONDS AND PREFERRED STOCKS 17.0%
CASH EQUIVALENTS 3.8%
U.S. GOVERNMENT SECURITIES 0.6%
- ------------------------------------------------------------------------------
5 "We're big believers in the value of diversification on both the fixed income
and equity sides of the portfolio. While the global stock and bond markets
may move together from time to time over short periods, over the long term,
diversification demonstrably produces above-average returns, while holding
portfolio volatility to below-market levels."
Portfolio Manager Richard Rubinstein, June 30, 1994
(1) Based on the change in net asset value per share from 6/30/93 and 12/31/93
to 6/30/94, without deducting any sales charges.
(2) Average annual total returns are based on a hypothetical investment, after
deducting the current maximum initial sales charge of 5.75% on 6/30/93,
6/30/89, and 4/24/87, respectively, held until 6/30/94. 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 will be different as a result of
the change. The total return for Class C shares was based on a hypothetical
investment held for that period, after deducting the 1% contingent deferred
sales charge.
(3) The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
2 Oppenheimer Asset Allocation Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
ABOVE-AVERAGE
TOTAL RETURN
Total return for the one-year period ended June 30, 1994
- ---------------------------------------------------------------------------
Oppenheimer Asset Allocation Fund A(4) (at net asset value) 3.57%
- ---------------------------------------------------------------------------
Lipper flexible portfolio funds average(5) 0.93%
The six months ended June 30, 1994, was one of the most challenging periods
U.S. investors have seen in recent years. Both the stock and bond markets
experienced volatility, and Oppenheimer Asset Allocation Fund was affected by
these fluctuations.
While the Fund's ability to diversify its investments across a
wide range of foreign and domestic stocks and bonds is always important, its
benefits came to the fore in the first six months of 1994. As the Federal
Reserve raised short-term interest rates four times between early February and
mid-May as a preemptive strike against inflation, the U.S. bond market fell and
the stock market followed. But with its broad diversification by issuer,
market, and security type, your Fund was less affected by rising U.S. interest
rates than funds without these built-in "risk controls."
The fixed income portfolio, which accounted for 28.1% of the
Fund's net assets at June 30, performed relatively well during the period. The
Fund's holdings of high-yield corporate and foreign bonds, which accounted for
55.9% of fixed income assets at June 30, provided a significant yield
"cushion," and helped reduce the impact on the portfolio from changes in
interest rates.
Your managers increased the Fund's international positions in
the United Kingdom and Italy, while selectively adding stocks of companies
positioned to benefit from strengthening European economies. They broadened the
Fund's holdings in the financial services sector, where stock prices appear
attractive compared to many companies' earnings prospects. Your managers added
several strong financial companies--including American Express and American
International Group, a major global insurance brokerage firm--to the portfolio.
The broad market correction that followed the Fed's moves to
raise interest rates also created opportunities to add to the growth-stock
portion of the portfolio. Your managers took advantage of that opportunity by
buying shares of H&R Block, who is also the parent of the profitable and
fast-growing CompuServe network, and Electronic Arts, a high-potential
multimedia software company.
We believe the outlook for your Fund is positive. Over the past
years, we have seen slower-than-average economic recovery, accompanied by a
higher-than-average profit recovery. While this underlying earnings strength
has been overshadowed in recent months by rising interest rates, as rates
stabilize, earnings should once again come to the fore. In this environment,
careful security selection will be the key to superior performance.
Fortunately, the ability to identify investments with above-average prospects
is a long-standing Fund strength.
We appreciate your trust in Oppenheimer Asset Allocation Fund,
and we look forward to helping you meet your investment goals in the future.
/s/ DONALD W. SPIRO
- --------------------------
Donald W. Spiro
President, Oppenheimer Asset Allocation Fund
July 22, 1994
(4) See footnote 1, page 2.
(5) Source of data: Lipper Analytical Services, Inc., an independent mutual
fund monitoring service, 6/30/94. The Lipper total return average for the year
ended 6/30/94 was for 90 flexible portfolio funds. The average is shown for
comparative purposes only. Lipper performance rankings do not take sales
charges into consideration.
3 Oppenheimer Asset Allocation Fund
<PAGE> 4
Statement of Investments June 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreements--3.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 4.22%, dated
6/30/94, to be repurchased at $10,101,184 on 7/1/94, collateralized by U.S.
Treasury Nts., 3.875%--9.25%, 12/31/94--11/30/98, with a value of $7,342,110,
and U.S. Treasury Bills, 0%, 6/29/95, with a value of $2,963,688
(Cost $10,100,000) $10,100,000 $10,100,000
- -----------------------------------------------------------------------------------------------------------------------------------
Government Obligations--27.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas, Series 1,
4.375%, 4/1/01(4)(5) 3,410,700 2,343,509
- -----------------------------------------------------------------------------------------------------------------------------------
Australia (Government of) Bonds, 12%, 5/15/06 1,600,000(2) 1,290,376
- -----------------------------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
9.75%, 6/1/01 2,000,000(2) 1,488,923
9.75%, 12/1/01 6,000,000(2) 4,471,114
8.5%, 4/1/02 3,000,000(2) 2,087,895
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 12.25%, 9/1/13 2,521 2,816
- -----------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
11.50%, 7/1/11 299,220 330,295
11%, 11/1/14 17,951 19,760
11.75%, 1/1/16 284,230 316,212
- -----------------------------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
9%, 11/15/08 221,242 231,238
9%, 11/15/08 91,671 95,813
9%, 2/15/09 336,236 351,270
9%, 5/15/09 91,982 96,095
- -----------------------------------------------------------------------------------------------------------------------------------
Queensland (Government of) Development Authority Global
Transferable Registered Nts., 10.50%, 5/15/03 5,000,000(2) 3,798,297
- -----------------------------------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Bonds:
13.45%, 4/15/96 435,000,000(2) 3,534,519
11.45%, 8/30/98 125,000,000(2) 994,770
- -----------------------------------------------------------------------------------------------------------------------------------
United Mexican States Gtd. Cv. Bonds, Series B, 6.25%, 12/31/19 4,000,000 2,547,500
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 0%, 8/15/02 6,100,000 3,382,864
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
9.25%, 1/15/96 825,000 864,960
7.875%, 2/15/96 800,000 823,500
7.875%, 6/30/96 8,500,000 8,776,250
8%, 1/15/97 500,000 518,593
6.75%, 5/31/97 3,000,000 3,018,750
8.75%, 10/15/97 350,000 371,656
7.875%, 1/15/98 1,600,000 1,659,000
8.25%, 7/15/98 16,000,000 16,794,990
9.25%, 8/15/98 9,450,000 10,262,104
8.875%, 11/15/98 950,000 1,020,953
- -----------------------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Collateralized Par Bonds, Series W-A, 6.75%, 3/31/20 1,500,000 744,375
- -----------------------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Collateralized Par Bonds, Series W-B, 6.75%, 3/31/20 3,500,000 1,736,875
- -----------------------------------------------------------------------------------------------------------------------------------
Total Government Obligations (Cost $76,317,056) 73,975,272
</TABLE>
4 Oppenheimer Asset Allocation Fund
<PAGE> 5
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Corporate Bonds and Notes--15.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Adelphia Communications Corp., 9.875% Sr. Debs., 3/1/05 $1,000,000 $ 882,500
- -----------------------------------------------------------------------------------------------------------------------------------
American Medical International, Inc., 13.50% Sr. Sub Nts., 8/15/01 500,000 565,000
- -----------------------------------------------------------------------------------------------------------------------------------
Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 900,000 895,500
- -----------------------------------------------------------------------------------------------------------------------------------
Auburn Hills Trust, 12.375% Gtd. Exch. Ctfs., 5/1/20(4) 800,000 1,088,000
- -----------------------------------------------------------------------------------------------------------------------------------
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 475,000 448,875
- -----------------------------------------------------------------------------------------------------------------------------------
Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 1,000,000 885,000
- -----------------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 500,000 508,750
- -----------------------------------------------------------------------------------------------------------------------------------
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 1,000,000 955,000
- -----------------------------------------------------------------------------------------------------------------------------------
Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 462,500
- -----------------------------------------------------------------------------------------------------------------------------------
Conseco, Inc., 8.125% Sr. Nts., 2/15/03 1,000,000 938,024
- -----------------------------------------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 750,000 772,500
- -----------------------------------------------------------------------------------------------------------------------------------
Envirosource, Inc., 9.75% Sr. Nts., 6/15/03 1,000,000 910,000
- -----------------------------------------------------------------------------------------------------------------------------------
Family Restaurant, Inc., 9.75% Sr. Nts., 2/1/02 2,000,000 1,820,000
- -----------------------------------------------------------------------------------------------------------------------------------
Flagstar Corp., 10.875% Sr. Nts., 12/1/02 400,000 385,000
- -----------------------------------------------------------------------------------------------------------------------------------
First PV Funding Corp., Public Service of New Mexico, 10.15% Debs., 1/15/16 1,000,000 948,405
- -----------------------------------------------------------------------------------------------------------------------------------
Foodmaker, Inc., 14.25% Sr. Sub. Nts., 5/15/98 1,000,000 1,051,250
- -----------------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs., 5/15/05 600,000 508,500
- -----------------------------------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., 6/30/02 400,000 426,000
- -----------------------------------------------------------------------------------------------------------------------------------
Global Marine, Inc., 12.75% Sr. Sec. Nts., 12/15/99 400,000 434,000
- -----------------------------------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 750,000 603,750
- -----------------------------------------------------------------------------------------------------------------------------------
GPA Holland, 9.75%, 6/10/96 1,000,000 940,000
- -----------------------------------------------------------------------------------------------------------------------------------
Grand Union Co., 11.25% Sr. Nts., 7/15/00 800,000 790,000
- -----------------------------------------------------------------------------------------------------------------------------------
Greyhound Lines, Inc., 10% Sr. Nts., 7/31/01 500,000 410,000
- -----------------------------------------------------------------------------------------------------------------------------------
Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 400,000 400,000
- -----------------------------------------------------------------------------------------------------------------------------------
Host Marriott Hospitality, Inc., 9.125% Sr. Nts., Series C, 12/1/00 950,000 942,875
- -----------------------------------------------------------------------------------------------------------------------------------
Infinity Broadcasting Corp., 10.375% Sr. Sub. Nts., 3/15/02 700,000 722,750
- -----------------------------------------------------------------------------------------------------------------------------------
Inland Steel Industries, Inc., 12.75% Nts., 12/15/02 400,000 450,000
- -----------------------------------------------------------------------------------------------------------------------------------
Interco, Inc., 9% Secd. Nts., Series B, 6/1/04 998,000 928,140
- -----------------------------------------------------------------------------------------------------------------------------------
K. Hovnanian Enterprises, Inc., 11.25% Gtd. Sub. Nts., 4/15/02 725,000 741,313
- -----------------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 1,000,000 1,020,000
- -----------------------------------------------------------------------------------------------------------------------------------
MacAndrews & Forbes Group, Inc., 12.25% Sub. Debs., 7/1/96 500,000 502,500
- -----------------------------------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 1,000,000 1,017,500
- -----------------------------------------------------------------------------------------------------------------------------------
Mediq, Inc., 7.50% Exch. Sub. Debs., 7/15/03 1,650,000 1,336,500
- -----------------------------------------------------------------------------------------------------------------------------------
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 345,000 378,638
- -----------------------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 986,860
- -----------------------------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 750,000 873,750
- -----------------------------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 500,000 500,625
- -----------------------------------------------------------------------------------------------------------------------------------
Panamsat L.P./Panamsat Capital Corp., 11.375% Sr. Sub. Disc. Nts., 8/1/03 1,000,000 645,000
- -----------------------------------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% Fst. Mort. Nts., 6/1/03 500,000 564,893
- -----------------------------------------------------------------------------------------------------------------------------------
Ralph's Grocery Co., 10.25% Sr. Sub. Nts., 7/15/02 500,000 497,500
</TABLE>
5 Oppenheimer Asset Allocation Fund
<PAGE> 6
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Corporate Bonds and Notes (continued)
Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 $ 500,000 $ 502,500
- -----------------------------------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp.:
9.375% Sr. Nts., Series B, 4/1/01 250,000 215,000
10.50% Sr. Sub. Nts., Series B, 2/15/03 1,000,000 852,500
- -----------------------------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.75% Sr. Nts., 6/15/00 500,000 518,125
- -----------------------------------------------------------------------------------------------------------------------------------
RJR Nabisco, Inc., 10.50% Sr. Nts., 4/15/98 400,000 424,394
- -----------------------------------------------------------------------------------------------------------------------------------
Rowan Cos., Inc., 11.875% Sr. Nts., 12/1/01 1,000,000 1,075,000
- -----------------------------------------------------------------------------------------------------------------------------------
SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05 1,000,000 1,025,000
- -----------------------------------------------------------------------------------------------------------------------------------
Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03 500,000 467,500
- -----------------------------------------------------------------------------------------------------------------------------------
Southland Corp., 4.50% 2nd Priority Sr. Sub. Debs., Series A, 6/15/04 1,700,000 1,045,500
- -----------------------------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 900,000 983,250
- -----------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.95% Nts., 2/1/00 1,000,000 988,750
- -----------------------------------------------------------------------------------------------------------------------------------
Tiphook Finance Corp., 7.125% Gtd. Nts., 5/1/98 593,000 444,750
- -----------------------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,100,000 1,199,000
- -----------------------------------------------------------------------------------------------------------------------------------
Unisys Corp.:
15% Credit Sensitive Nts., 7/1/97 400,000 434,970
10.625% Nts., 10/1/99 600,000 609,817
USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 500,000 502,500
- -----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds and Notes (Cost $42,619,293) 41,425,954
Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks--1.4%
Alumax, Inc., $4.00 Cv., Series A 7,333 843,295
- -----------------------------------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., $1.28 Depositary Shares 50,000 687,500
- -----------------------------------------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A 14,666 988,122
- -----------------------------------------------------------------------------------------------------------------------------------
Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C 29,000 1,312,250
- -----------------------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (Cost $3,381,909) 3,831,167
- -----------------------------------------------------------------------------------------------------------------------------------
Common Stocks--50.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--3.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
biosys(1) 40,000 250,000
- -----------------------------------------------------------------------------------------------------------------------------------
IMC Fertilizer Group, Inc.(1) 24,000 831,000
- -----------------------------------------------------------------------------------------------------------------------------------
Praxair, Inc. 45,000 877,500
- -----------------------------------------------------------------------------------------------------------------------------------
Sybron Chemical Industries, Inc.(1) 48,000 1,152,000
- -----------------------------------------------------------------------------------------------------------------------------------
3,110,500
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals: Diversified--1.1%
ARCO Chemical Co. 20,000 907,500
- -----------------------------------------------------------------------------------------------------------------------------------
Bayer AG, ADR 9,000 1,948,225
- -----------------------------------------------------------------------------------------------------------------------------------
2,855,725
</TABLE>
6 Oppenheimer Asset Allocation Fund
<PAGE> 7
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Chemicals: Specialty--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Goldschmidt (T.H.) AG 750 $ 329,888
- -----------------------------------------------------------------------------------------------------------------------------------
Metals: Miscellaneous--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Brush Wellman, Inc. 103,300 1,639,888
- -----------------------------------------------------------------------------------------------------------------------------------
Paper and Forest Products--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Louisiana-Pacific Corp. 24,100 735,050
- -----------------------------------------------------------------------------------------------------------------------------------
Steel--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Inland Steel Industries, Inc.(1) 38,800 1,353,150
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--9.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Automobiles--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Fiat SpA 320,000 1,285,618
- -----------------------------------------------------------------------------------------------------------------------------------
Broadcast Media--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Comcast Corp., Cl. A Special 110,150 1,982,700
- -----------------------------------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored ADR(3)(6) 17,000 862,750
- -----------------------------------------------------------------------------------------------------------------------------------
2,845,450
- ------------------------------------------------------------------------------------------------------------------------------------
Entertainment--1.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co.(6) 31,500 1,311,188
- -----------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc.(1)(6) 45,100 1,798,362
- -----------------------------------------------------------------------------------------------------------------------------------
WMS Industries, Inc.(1) 49,200 934,800
- -----------------------------------------------------------------------------------------------------------------------------------
4,044,350
- ------------------------------------------------------------------------------------------------------------------------------------
Leisure Time--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Caesar's World, Inc.(1) 21,000 761,250
- -----------------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 19,900 957,688
- -----------------------------------------------------------------------------------------------------------------------------------
1,718,938
- -----------------------------------------------------------------------------------------------------------------------------------
Publishing--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc.(6) 51,300 1,801,913
- -----------------------------------------------------------------------------------------------------------------------------------
Wolters Kluwer NV 10,167 600,917
- -----------------------------------------------------------------------------------------------------------------------------------
2,402,830
- -----------------------------------------------------------------------------------------------------------------------------------
Restaurants--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Quantum Restaurant Group, Inc.(1) 89,000 745,375
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Blockbuster Entertainment Corp.(6) 36,000 931,500
- -----------------------------------------------------------------------------------------------------------------------------------
CML Group, Inc. 59,400 697,950
- -----------------------------------------------------------------------------------------------------------------------------------
Inacom Corp.(1) 60,000 487,500
- -----------------------------------------------------------------------------------------------------------------------------------
Venture Stores, Inc. 60,800 1,200,800
- -----------------------------------------------------------------------------------------------------------------------------------
3,317,750
- -----------------------------------------------------------------------------------------------------------------------------------
Shoes--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Baker (J.), Inc. 97,700 1,892,938
- -----------------------------------------------------------------------------------------------------------------------------------
Textiles: Apparel
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturers--0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Authentic Fitness Corp.(1) 77,300 1,082,200
- -----------------------------------------------------------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A(1) 36,900 1,083,938
- ----------------------------------------------------------------------------------------------------------------------------------
2,166,138
- -----------------------------------------------------------------------------------------------------------------------------------
Toys--1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 86,640 2,198,490
- -----------------------------------------------------------------------------------------------------------------------------------
Nintendo Co. 12,000 868,597
- -----------------------------------------------------------------------------------------------------------------------------------
SLM International Inc.(1) 37,900 416,900
- -----------------------------------------------------------------------------------------------------------------------------------
3,483,987
</TABLE>
7 Oppenheimer Asset Allocation Fund
<PAGE> 8
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Non-Cyclicals--10.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages: Alcoholic--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Guinness PLC 160,000 $1,079,216
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages: Soft Drinks--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Whitman Corp. 104,300 1,616,650
- -----------------------------------------------------------------------------------------------------------------------------------
Cosmetics--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Avon Products, Inc.(6) 24,200 1,424,775
- -----------------------------------------------------------------------------------------------------------------------------------
Drugs--1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Agouron Pharmaceuticals, Inc.(1) 24,000 270,000
- -----------------------------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 37,250 751,352
- -----------------------------------------------------------------------------------------------------------------------------------
Ciba-Geigy AG 1,825 1,076,231
- -----------------------------------------------------------------------------------------------------------------------------------
Lilly (Eli) & Co. 18,000 1,023,750
- -----------------------------------------------------------------------------------------------------------------------------------
Medeva PLC 185,000 382,634
- -----------------------------------------------------------------------------------------------------------------------------------
Sandoz AG 1,500 778,066
- -----------------------------------------------------------------------------------------------------------------------------------
Upjohn Co. 25,200 733,950
- -----------------------------------------------------------------------------------------------------------------------------------
5,015,983
Food Processing--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
CP Pokphand Co. 1,855,000 503,994
- -----------------------------------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc. 1,155 14,438
- -----------------------------------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 48,000 2,014,449
- -----------------------------------------------------------------------------------------------------------------------------------
2,532,881
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare: Diversified--1.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Abbott Laboratories 26,200 759,800
- -----------------------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 33,000 1,769,625
- -----------------------------------------------------------------------------------------------------------------------------------
Schering AG 1,825 1,092,857
- -----------------------------------------------------------------------------------------------------------------------------------
3,622,282
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare: Miscellaneous--2.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Amgen, Inc.(1)(6) 16,900 724,588
- -----------------------------------------------------------------------------------------------------------------------------------
Chiron Corp.(1) 8,100 443,475
- -----------------------------------------------------------------------------------------------------------------------------------
FHP International Corp.(1) 81,000 1,944,000
- -----------------------------------------------------------------------------------------------------------------------------------
Genzyme Corp.(1) 24,700 645,288
- -----------------------------------------------------------------------------------------------------------------------------------
Manor Care, Inc. 52,678 1,323,535
- -----------------------------------------------------------------------------------------------------------------------------------
Protein Design Labs, Inc.(1) 19,000 346,750
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc.(6) 52,800 1,953,600
- -----------------------------------------------------------------------------------------------------------------------------------
7,381,236
- -----------------------------------------------------------------------------------------------------------------------------------
Hospital Management--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Medical Care America, Inc.(1) 46,300 1,255,888
- -----------------------------------------------------------------------------------------------------------------------------------
Medical Products--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Medtronic, Inc.(6) 12,000 961,500
- -----------------------------------------------------------------------------------------------------------------------------------
Mitek Surgical Products, Inc.(1) 26,400 462,000
- -----------------------------------------------------------------------------------------------------------------------------------
Nellcor, Inc.(1)(6) 32,000 856,000
- -----------------------------------------------------------------------------------------------------------------------------------
2,279,500
- -----------------------------------------------------------------------------------------------------------------------------------
Tobacco--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc.(6) 22,000 1,133,000
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--2.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Coal--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Ashland Coal, Inc. 42,400 1,134,200
- -----------------------------------------------------------------------------------------------------------------------------------
Oil and Gas Drilling--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Santa Fe Energy Resources, Inc. 79,900 749,063
- -----------------------------------------------------------------------------------------------------------------------------------
Oil: Integrated Domestic--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Unocal Corp. 62,000 1,774,750
- -----------------------------------------------------------------------------------------------------------------------------------
Oil: Integrated
- -----------------------------------------------------------------------------------------------------------------------------------
International--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 7,000 732,375
- -----------------------------------------------------------------------------------------------------------------------------------
Saga Petroleum AS, Cl. B 70,000 811,444
- -----------------------------------------------------------------------------------------------------------------------------------
1,543,819
</TABLE>
8 Oppenheimer Asset Allocation Fund
<PAGE> 9
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Oil Well Services and
Equipment--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Schlumberger, Ltd. 12,000 $709,500
- -----------------------------------------------------------------------------------------------------------------------------------
Oil--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Burlington Resources, Inc.(6) 21,900 906,113
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--5.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Financial Services--1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
American Express Co. 28,000 721,000
- -----------------------------------------------------------------------------------------------------------------------------------
H & R Block Incorporated 17,600 690,800
- -----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.(6) 35,200 1,232,000
- -----------------------------------------------------------------------------------------------------------------------------------
Peregrine Investment Holdings, Ltd.(1) 266,000 437,057
- -----------------------------------------------------------------------------------------------------------------------------------
3,080,857
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance: Life--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Bankers Life Holding Corp. 43,600 877,450
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance: Multi-Line--0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 10,400 900,900
- -----------------------------------------------------------------------------------------------------------------------------------
American Re Corp.(1) 40,000 1,235,000
- -----------------------------------------------------------------------------------------------------------------------------------
2,135,900
- -----------------------------------------------------------------------------------------------------------------------------------
Major Banks: Other--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Deutsche Bank AG, ADR 2,250 967,044
- -----------------------------------------------------------------------------------------------------------------------------------
Major Banks: Regional--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Banc One Corp. 19,600 671,300
- -----------------------------------------------------------------------------------------------------------------------------------
NationsBank Corp. 46,100 2,368,388
- -----------------------------------------------------------------------------------------------------------------------------------
3,039,688
- -----------------------------------------------------------------------------------------------------------------------------------
Money Center Banks--1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Bankers Trust New York Corp. 26,000 1,732,250
- -----------------------------------------------------------------------------------------------------------------------------------
Chemical Banking Corp. 45,200 1,740,200
- -----------------------------------------------------------------------------------------------------------------------------------
3,472,450
- -----------------------------------------------------------------------------------------------------------------------------------
Savings and Loans/Holding
Cos.--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Golden West Financial Corp.(6) 25,000 965,625
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--6.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Building Materials Group--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Owens-Corning Fiberglass Corp.(1) 64,100 1,995,113
- -----------------------------------------------------------------------------------------------------------------------------------
Conglomerates--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Jardine Matheson Holdings, Ltd. 100,000 769,803
- -----------------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 29,400 1,363,425
- -----------------------------------------------------------------------------------------------------------------------------------
Wharf Holdings 205,000 755,895
- -----------------------------------------------------------------------------------------------------------------------------------
2,889,123
- -----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
General Electric Co. 26,400 1,230,900
- -----------------------------------------------------------------------------------------------------------------------------------
Engineering and Construction--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora S.A. de C.V. 28,000 672,000
- -----------------------------------------------------------------------------------------------------------------------------------
Huarte SA 80,350 1,037,950
- -----------------------------------------------------------------------------------------------------------------------------------
1,709,950
- -----------------------------------------------------------------------------------------------------------------------------------
Heavy Duty Trucks and
Parts--0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Spartan Motors, Inc.(6) 50,700 646,425
- -----------------------------------------------------------------------------------------------------------------------------------
Machine Tools--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
FANUC Ltd. 22,500 1,081,184
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing: Diversified
Industrials--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Mannesmann AG 7,412 1,879,258
- -----------------------------------------------------------------------------------------------------------------------------------
Siemens AG, ADR 14,200 1,152,811
- -----------------------------------------------------------------------------------------------------------------------------------
3,032,069
</TABLE>
9 Oppenheimer Asset Allocation Fund
<PAGE> 10
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pollution Control--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
WMX Technologies, Inc. 150,000 $1,325,000
- -----------------------------------------------------------------------------------------------------------------------------------
Railroads--0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Burlington Northern, Inc. 33,900 1,809,413
- -----------------------------------------------------------------------------------------------------------------------------------
Chicago & North Western Holdings Corp.(1) 15,500 358,438
- -----------------------------------------------------------------------------------------------------------------------------------
2,167,851
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation:
Miscellaneous--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
OMI Corp. 124,300 745,800
- -----------------------------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA 65,000 1,109,063
- -----------------------------------------------------------------------------------------------------------------------------------
1,854,863
- -----------------------------------------------------------------------------------------------------------------------------------
Truckers--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Roadway Services, Inc 13,700 863,100
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--9.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
General Dynamics Corp. 32,000 1,308,000
- -----------------------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp.(6) 11,000 1,287,000
- -----------------------------------------------------------------------------------------------------------------------------------
2,595,000
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software and
Services--3.4%
- -----------------------------------------------------------------------------------------------------------------------------------
BMC Software, Inc.(1) 19,700 861,875
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 33,900 1,356,000
- -----------------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(1) 60,000 840,000
- -----------------------------------------------------------------------------------------------------------------------------------
Lotus Development Corp.(1)(6) 22,800 837,900
- -----------------------------------------------------------------------------------------------------------------------------------
Marcam Corp.(1) 69,300 779,625
- -----------------------------------------------------------------------------------------------------------------------------------
Microsoft Corp.(1)(6) 23,000 1,184,500
- -----------------------------------------------------------------------------------------------------------------------------------
Novell, Inc.(1) 37,700 631,475
- -----------------------------------------------------------------------------------------------------------------------------------
Pyxis Corp.(1) 34,000 646,000
- -----------------------------------------------------------------------------------------------------------------------------------
Sap AG, Preference 1,000 2,007,606
- -----------------------------------------------------------------------------------------------------------------------------------
9,144,981
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Systems--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Sun Microsystems Inc.(1) 41,500 855,938
- -----------------------------------------------------------------------------------------------------------------------------------
Synoptics Communications, Inc.(1) 56,200 765,725
- -----------------------------------------------------------------------------------------------------------------------------------
Tandem Computers, Inc.(1) 79,800 897,750
- -----------------------------------------------------------------------------------------------------------------------------------
2,519,413
Electronics:
Instrumentation--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co.(6) 14,300 1,077,863
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics:
Semiconductors--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Intel Corp. 44,900 2,626,650
- -----------------------------------------------------------------------------------------------------------------------------------
Office Equipment and
Supplies--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Xerox Corp.(6) 11,100 1,085,025
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications--2.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Airtouch Communications, Inc.(1) 36,500 862,313
- -----------------------------------------------------------------------------------------------------------------------------------
American Telephone & Telegraph Co. 22,700 1,234,313
- -----------------------------------------------------------------------------------------------------------------------------------
MCI Communications Corp. 116,800 2,584,200
- -----------------------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., Cl. A(1)(6) 22,500 680,625
- -----------------------------------------------------------------------------------------------------------------------------------
Rogers Cantel Mobile Communications, Inc., Cl. B, Sub.(1) 69,500 1,685,375
- -----------------------------------------------------------------------------------------------------------------------------------
7,046,826
</TABLE>
10 Oppenheimer Asset Allocation Fund
<PAGE> 11
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities--2.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Companies--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Korea Electric Power Co.(1) 25,000 $ 832,273
- -----------------------------------------------------------------------------------------------------------------------------------
Verbund Oest Electriz 19,000 1,085,167
- -----------------------------------------------------------------------------------------------------------------------------------
1,917,440
- -----------------------------------------------------------------------------------------------------------------------------------
Natural Gas--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Hong Kong & China Gas 619,200 1,185,646
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone--1.6%
- -----------------------------------------------------------------------------------------------------------------------------------
BCE, Inc. 34,000 1,100,750
- -----------------------------------------------------------------------------------------------------------------------------------
Pacific Telesis Group 27,000 833,625
- -----------------------------------------------------------------------------------------------------------------------------------
US West Communications, Inc. 54,800 2,294,750
- -----------------------------------------------------------------------------------------------------------------------------------
4,229,125
- -----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $112,687,819) 134,848,992
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $245,106,077) 99.1% 264,181,385
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.9 2,364,933
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $266,546,318
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Non-income producing security.
2. Face amount is reported in foreign currency.
3. Restricted security--See Note 6 of Notes to Financial Statements.
4. Represents the current interest rate for a variable rate security.
5. Interest or dividend is paid in kind.
6. Securities with an aggregate market value of $8,171,650 are held in escrow
to cover outstanding call options, as follows:
<TABLE>
<CAPTION>
Shares Subject Expiration Exercise Premium MarketValue
to Call Date Price Received See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Amgen, Inc. 4,000 10/94 $ 50.00 $ 11,380 $ 4,500
Avon Products, Inc. 10,500 10/94 60.00 44,309 30,844
Blockbuster Entertainment Corp. 36,000 9/94 25.00 100,167 78,750
Burlington Northern, Inc. 5,600 7/94 65.00 13,132 1,050
Computer Associates, Inc. 6,500 10/94 45.00 16,054 13,000
Disney (Walt) Co. 6,300 10/94 40.00 30,522 23,625
Golden West Financial Corp. 3,800 11/94 40.00 11,286 8,075
Grupo Televisa SA, ADS 8,500 10/94 55.00 45,431 24,437
Grupo Televisa SA, ADS 8,500 10/94 60.00 28,432 12,750
Hewlett-Packard Co. 3,000 11/94 95.00 7,035 2,625
King World Productions, Inc. 9,000 8/94 40.00 17,729 24,750
King World Productions, Inc. 9,000 8/94 45.00 17,729 12,375
King World Productions, Inc. 9,000 11/94 45.00 31,229 24,750
Lotus Development Corp. 7,000 10/94 60.00 55,788 2,187
McDonnell Douglas Corp. 2,000 8/94 120.00 13,940 7,000
Medtronic, Inc. 2,400 8/94 90.00 9,528 1,500
Merrill Lynch & Co., Inc. 8,500 7/94 47.50 15,682 531
Microsoft Corp. 2,200 10/94 47.50 7,084 28,600
Nellcor, Inc. 7,000 7/94 30.00 15,539 2,188
Nellcor, Inc. 6,400 10/94 30.00 11,161 6,000
Nextel Communications, Inc., Cl. A 4,500 11/94 45.00 6,052 2,813
Phillip Morris Cos., Inc. 5,000 12/94 60.00 10,475 4,375
Spartan Motors, Inc. 21,700 12/94 22.50 37,323 6,781
Time Warner, Inc. 12,000 9/94 45.00 17,639 2,250
U.S. Healthcare, Inc. 6,800 7/94 43.375 45,696 3,825
U.S. Healthcare, Inc. 6,800 7/94 46.625 30,395 1,275
Xerox Corp. 3,000 7/94 85.00 11,160 12,750
- ----------------------------------------------------------------------------------------------------------------
$661,897 $343,606
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Asset Allocation Fund
<PAGE> 12
Statement of Assets and Liabilities June 30, 1994 (Unaudited)
<TABLE>
<S> <C>
Assets
Investments, at value (cost $245,106,077)--see accompanying statement $264,181,385
- -----------------------------------------------------------------------------------------------------------------
Cash 32,571
- -----------------------------------------------------------------------------------------------------------------
Receivables:
Dividends and interest 2,964,675
Investments sold and options written 2,947,681
Shares of beneficial interest sold 212,022
- -----------------------------------------------------------------------------------------------------------------
Other 68,956
- -----------------------------------------------------------------------------------------------------------------
Total assets 270,407,290
- -----------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $661,897)--
see accompanying statement--Note 4 343,606
- -----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,071,663
Shares of beneficial interest redeemed 576,505
Distribution and service plan fees--Note 5 166,106
Dividends and distributions 394,235
Other 308,857
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 3,860,972
- -----------------------------------------------------------------------------------------------------------------
Net Assets $266,546,318
- -----------------------------------------------------------------------------------------------------------------
Composition of Net Assets
- -----------------------------------------------------------------------------------------------------------------
Paid-in capital $237,580,086
- -----------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,036,740
- -----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment, written option
and foreign currency transactions 8,525,923
- -----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments, options written and translation of assets
and liabilities denominated in foreign currencies--Note 3 19,403,569
- -----------------------------------------------------------------------------------------------------------------
Net assets $266,546,318
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share
- -----------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $260,625,899 and
21,135,252 shares of beneficial interest outstanding) $12.33
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $13.08
- -----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $5,920,419 and 481,243 shares of beneficial interest outstanding) $12.30
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Asset Allocation Fund
<PAGE> 13
Statement of Operations For the Six Months Ended June 30, 1994
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest $ 5,649,961
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends (net of withholding taxes of $75,965) 1,381,227
- -----------------------------------------------------------------------------------------------------------------------------------
Total income 7,031,188
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Management fees--Note 5 905,907
- -----------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 158,076
Class C--Note 5 15,820
- -----------------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 116,073
- -----------------------------------------------------------------------------------------------------------------------------------
Shareholder reports 88,190
- -----------------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 23,484
- -----------------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 28,727
- -----------------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 20,276
- -----------------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 123
Class C 1,997
- -----------------------------------------------------------------------------------------------------------------------------------
Other 51,458
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 1,410,131
- -----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 5,621,057
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain on Investments, Options Written and Foreign
Currency Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments and options written (including premiums on options exercised) 8,955,243
Closing and expiration of option contracts written--Note 4 794,257
Foreign currency transactions (12,484)
- -----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments and options written (24,280,059)
Translation of assets and liabilities denominated in foreign currencies (2,373,650)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments, options written and foreign
currency transactions (16,916,693)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting From Operations $(11,295,636)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Asset Allocation Fund
<PAGE> 14
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1994 December 31,
(Unaudited) 1993
<S> <C> <C>
- -----------------------------------------------------------------------------------
Operations
Net investment income $5,621,057 $9,755,468
- -----------------------------------------------------------------------------------
Net realized gain on investments, options
written and foreign currency transactions 9,737,016 8,616,993
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation on investments, options
written and translation of assets and
liabilities denominated inforeign currencies (26,653,709) 22,617,333
----------- ----------
Net increase (decrease) in net assets
resulting from operations (11,295,636) 40,989,794
- -----------------------------------------------------------------------------------
Dividends and
Distributions to
Shareholders
Dividends from net investment income:
Class A ($.188 and $.438 per share,
respectively) (3,954,018) (9,529,080)
Class C ($1.49 and $.12 per share,
respectively) (53,468) (2,987)
- -----------------------------------------------------------------------------------
Distributions from net realized gain on
investments, options written and foreign
currency transactions:
Class A ($.012 per share) -- (254,071)
Class C ($.012 per share) -- (298)
- -----------------------------------------------------------------------------------
Beneficial Interest
Transactions
Net decrease in net assets resulting from
Class A beneficial interest
transactions--Note 2 (2,244,365) (20,002,391)
- ----------------------------------------------------------------------------------
Net increase in net assets resulting
from Class C beneficial interest
transactions--Note 2 5,784,127 395,601
- -----------------------------------------------------------------------------------
Net Assets
Total increase (decrease) (11,763,360) 11,596,568
- ---------------------------------------------------------------------------------
Beginning of period 278,309,678 266,713,110
------------ ------------
End of period (including undistributed
(overdistributed) net investment income
of $1,036,740 and ($340,955), respectively) $266,546,318 $278,309,678
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Asset Allocation Fund
<PAGE> 15
Financial Highlights
<TABLE>
<CAPTION>
Class A Class C
----------------------------------------------------------------- --------------------------
Six Months
Ended Year Ended Six Months Period Ended
June 30, 1994 December 31, June 30, 1994 December 31,
(Unaudited) 1993 1992 1991(2) 1990 1989 (Unaudited) 1993(1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of
period $13.05 $11.63 $ 11.22 $ 10.19 $ 10.67 $ 9.78 $ 13.05 $ 12.86
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) .25 .44 .39 .40 .53 .49 .23 (.97)
Net realized and unrealized gain
(loss) on investments, options
written, and foreign currency
transactions (.78) 1.43 .44 1.06 (.43) 1.17 (.83) 1.29
----------------------------------------------------------------------------------------------
Total income (loss) from investment
operations (.53) 1.87 .83 1.46 .10 1.66 (.60) .32
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.19) (.44) (.42) (.43) (.52) (.48) (.15) (.12)
Distributions from net realized gain
on investments, options written, and
foreign currency transactions -- (.01) -- -- (.06) (.29) -- (.01)
-----------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.19) (.45) (.42) (.43) (.58) (.77) (.15) (.13)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period 12.33 $13.05 $11.63 $11.22 $10.19 $10.67 $12.30 $13.05
===== ====== ====== ====== ====== ====== ====== ======
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(3) (4.10)% 16.30% 7.54% 14.67% .93% 18.21% (4.63)% 2.51%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $260,626 $277,914 $266,713 $276,800 $83,292 $81,194 $ 5,920 $ 396
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $272,398 $272,303 $269,096 $192,870 $82,490 $68,134 $ 3,221 $ 194
- -----------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 21,135 21,302 22,938 24,666 8,171 7,611 481 30
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.12%(4) 3.58% 3.41% 3.78% 5.14% 4.71% 3.42%(4) 2.19%(4)
Expenses 1.02%(4) 1.14% 1.17% 1.27% 1.36% 1.47% 1.97%(4) 2.50%(4)
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 18.2% 32.7% 60.3% 102.0% 71.3% 60.2% 18.2% 32.7%
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to December 31,
1993.
2. Per share amounts calculated based on the weighted average number of shares
outstanding during the year.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption
at the net asset value calculated on the last business day of the fiscal
period. Sales charges are not reflected in the total returns.
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the six months ended June 30, 1994 were
$54,357,443 and $48,279,170, respectively. See accompanying Notes to
Financial Statements.
15 Oppenheimer Asset Allocation Fund
<PAGE> 16
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies
Oppenheimer Asset Allocation 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 advisor is Oppenheimer Management
Corporation (the Manager). The Fund offers both Class A and Class C shares.
Class A shares are sold with a front-end sales charge. Class C shares may be
subject to a contingent deferred sales charge. Both classes of shares have
identical rights to earnings, assets and voting privileges, except that each
class has its own distribution plan, expenses directly attributable to a
particular class and exclusive voting rights with respect to matters affecting
a single class. The following is a summary of significant accounting policies
consistently followed by the Fund.
Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New York
time) on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the day
or, in the absence of sales, at values based on the closing bid or asked price
or the last sale price on the prior trading day. Long-term debt securities are
valued by a portfolio pricing service approved by the Board of Trustees.
Long-term debt securities which cannot be valued by the approved portfolio
pricing service are valued by averaging the mean between the bid and asked
prices obtained from two active market makers in such securities. Short-term
debt securities having a remaining maturity of 60 days or less are valued at
cost (or last determined market value) adjusted for amortization to maturity of
any premium or discount. Securities for which market quotes are not readily
available are valued under procedures established by the Board of Trustees to
determine fair value in good faith. A call option is valued based upon the last
sales price on the principal exchange on which the option is traded or, in the
absence of any transactions that day, the value is based upon the last sale on
the prior trading date if it is within the spread between the closing bid and
asked prices. If the last sale price is outside the spread, the closing bid or
asked price closest to the last reported sale price is used.
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 rate of exchange prevailing on the respective dates of such transactions.
The Fund generally enters into forward currency exchange contracts as a
hedge, upon the purchase or sale of a security denominated in a foreign
currency. Risks may arise from the potential inability of the counterparty to
meet the terms of the contract and from unanticipated movements in the value of
a foreign currency relative to the U.S. dollar.
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 results 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. 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.
Call Options Written. The Fund may write covered call options. When an option
is written, the Fund receives a premium and becomes obligated to sell the
underlying security at a fixed price, upon exercise of the option. In writing
an option, the Fund bears the market risk of an unfavorable change in the price
of the security underlying the written option. Exercise of an option written by
the Fund could result in the Fund selling a security at a price different from
the current market value. All securities covering call options written are held
in escrow by the custodian bank.
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.
16 Oppenheimer Asset Allocation Fund
<PAGE> 17
1. Significant Accounting Policies (continued)
Federal Income Taxes. The Fund intends to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income tax provision is required. At June 30, 1994, the Fund had
available for federal income tax purposes an unused capital loss carryover of
approximately $3,138,000, $1,336,000 of which will expire in 1996, $445,000 in
1997, $445,000 in 1998 and $912,000 in 1999, the usage of which is subject to
certain limitations.
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 six months
ended June 30, 1994, a provision of $25,911 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $175,410 at June
30, 1994. No payments have been made under the plan.
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
Change in Accounting for Distributions to Shareholders. Effective January 1,
1994, the Fund adopted Statement of Position 93-2: Determination, Disclosure,
and Financial Statement Presentation of Income, Capital Gain, and Return of
Capital Distributions by Investment Companies. As a result, the Fund changed
the classification of distributions to shareholders to better disclose the
differences between financial statement amounts and distributions determined in
accordance with income tax regulations. Accordingly, subsequent to December 31,
1993, amounts have been reclassified to reflect an increase in paid-in capital
of $2,394,578, a decrease in undistributed net investment income of $235,825,
and a decrease in undistributed capital gain on investments of $2,158,753.
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 options written and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
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>
Six Months Ended Year Ended
June 30, 1994 (Unaudited) December 31, 1993 (1)
- -----------------------------------------------------------------------------------------------------------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 862,095 $ 11,064,777 1,309,237 $ 16,208,603
Dividends and distributions reinvested 243,555 3,064,506 593,184 7,426,650
Redeemed (1,272,438) (16,373,648) (3,538,545) (43,637,644)
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease (166,788) $ (2,244,365) (1,636,124) $(20,002,391)
- -----------------------------------------------------------------------------------------------------------------------------------
Class C
Sold 451,997 $ 5,798,181 30,068 $392,326
Dividends and distributions reinvested 3,357 41,759 251 3,275
Redeemed (4,430) (55,813) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase 450,924 $ 5,784,127 30,319 $ 395,601
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the year ended December 31, 1993 for Class A shares and for the period
from December 1, 1993 (inception of offering) to December 31, 1993 for Class C
shares.
3. Unrealized Gains and Losses on Investments And Options Written
At June 30, 1994, net unrealized appreciation on investments and options
written of $19,403,569 was composed of gross appreciation of $30,791,898, and
gross depreciation of $11,388,329.
17 Oppenheimer Asset Allocation Fund
<PAGE> 18
Notes to Financial Statements (Unaudited) (Continued)
4. Call Option Activity
Call option activity for the six months ended June 30, 1994 was as follows:
<TABLE>
<CAPTION>
Number Amount
of Options of Premiums
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at December 31, 1993 4,564 $1,222,221
- -----------------------------------------------------------------------------------------------------------------------------------
Options written 3,152 1,104,202
- -----------------------------------------------------------------------------------------------------------------------------------
Options cancelled in closing purchase transactions (2,134) (707,838)
- -----------------------------------------------------------------------------------------------------------------------------------
Options exercised (1,593) (517,256)
- -----------------------------------------------------------------------------------------------------------------------------------
Options expired prior to exercise (1,839) (439,432)
- -----------------------------------------------------------------------------------------------------------------------------------
Options outstanding at June 30, 1994 2,150 $ 661,897
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5. 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 an annual fee of 1% on the
first $50 million of net assets, .75% on the next $150 million with a reduction
of .05% on each $200 million thereafter, to .60% on net assets in excess of
$600 million. Effective June 27, 1994, management fees were reduced to .75% on
the first $200 million of net assets with a reduction of .03% on each $200
million thereafter to $800 million, and .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 six months ended June 30, 1994, commissions (sales charges paid by
investors) on sales of Class A shares totaled $279,299, of which $98,958 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. During the
six months ended June 30, 1994, OFDI received contingent deferred sales charges
of $322 upon redemption of Class C shares, as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OSS's total costs of providing such services are
allocated ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net
assets annually to reimburse OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund
(prior to July 1, 1994, Class A reimbursements were made with respect to shares
sold subsequent to April 1, 1988), including amounts paid to brokers, dealers,
banks and other institutions. In addition, Class C shares are subject to an
asset-based sales charge of .75% of net assets annually, to reimburse OFDI for
sales commissions paid from its own resources at the time of sale and
associated financing costs. In the event of termination or discontinuance of
the Class C plan, the Board of Trustees may allow the Fund to continue payment
of the asset-based sales charge to OFDI for distribution expenses incurred on
Class C shares sold prior to termination or discontinuance of the plan. During
the six months ended June 30, 1994, OFDI paid $60,593 to an affiliated
broker/dealer as reimbursement for Class A personal service and maintenance
expenses and retained $14,707 as reimbursement for Class C sales commissions
and service fee advances, as well as financing costs.
6. Restricted Securities
The Fund owns securities purchased in private placement transactions, without
registration under the Securities Act of 1933 (the Act). The securities are
valued under methods approved by the Board of Trustees as reflecting fair
value. The Fund intends to invest no more than 10% of its net assets
(determined at the time of purchase) in restricted and illiquid securities,
excluding securities eligible for resale pursuant to Rule 144A of the Act that
are determined to be liquid by the Board of Trustees or by the Manager under
Board-approved guidelines.
<TABLE>
<CAPTION>
Valuation Per Unit
Security Acquisition Date Cost Per Unit as of June 30, 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Grupo Televisa SA, Sponsored ADR(1) 8/20/92--8/26/92 $27.69 $50.75
</TABLE>
1. Transferable under Rule 144A of the Act.
18 Oppenheimer Asset Allocation Fund
<PAGE> 19
Oppenheimer Asset Allocation Fund
Officers and Trustees
Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
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
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
David P. Negri, Vice President
Richard H. Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
Investment Advisor
Oppenheimer Management Corporation
Distributor
Oppenheimer Funds Distributor, Inc.
Transfer and Shareholder
Servicing Agent
Oppenheimer Shareholder Services
Custodian of
Portfolio Securities
The Bank of New York
Independent Auditors
KPMG Peat Marwick
Legal Counsel
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of
the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Asset Allocation
Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Asset Allocation Fund. For material information concerning the
Fund, see the Prospectus.
19 Oppenheimer Asset Allocation Fund
<PAGE> 20
[PHOTO #2 -- SEE EDGAR APPENDIX]
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offers a variety of services to satisfy your individual needs. Whenever you
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"When you invest in OppenheimerFunds, you know you'll receive a
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"Whatever your needs, we're ready to assist you."
(1993 AWARD OF EXCELLENCE INTERNATIONAL CUSTOMER SERVICE ASSOCIATION LOGO)
Talk to a Customer Service
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Get automated information or
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<PAGE> 21
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The front cover of the report in the printed version contains a photo
(photo # 1) of a man working.
The back cover of the report in the printed version contains a photo
(photo #2) of Barbara Hennigar, Chief Executive Officer, Oppenheimer
Shareholder Services.
