[FRONT COVER]
Oppenheimer Asset Allocation Fund
Semiannual Report June 30, 1996
[Picture of BarBQ]
"We need the
comfort
that comes from
diversifying
across different
types of
investments--but
we want it from
one fund."
[LOGO-OPPENHEIMERFUNDS (R)]
<PAGE>
This Fund is for people who want an investment that's strategically allocated to
pursue growth with less risk.
How Your Fund Is Managed
Oppenheimer Asset Allocation Fund uses a combination of investment styles to
seek high total return while managing risk.
The Fund seeks to achieve its goals by investing in a combination of
stocks, bonds and money market instruments--strategically allocated to take
advantage of current economic conditions.
Investing in stocks can offer the best potential for long-term growth. The
Fund's managers invest in established U.S. and international companies that
they believe have excellent potential for appreciation.
And the Fund seeks income from diversified fixed-income and money market
investments which can act as a cushion against fluctuations in the value of the
stocks in the Fund's portfolio.
Performance
Total return at net asset value for the six months ended 6/30/96 was 7.07% for
Class A shares, 6.41% for Class B shares and 6.61% for Class C shares.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 6/30/96 and since inception
of the Class on 4/24/87 were 9.09%, 10.88% and 9.09%, respectively. For Class
B shares, cumulative total returns since inception of the Class on 8/29/95 was
6.13%. For Class C shares, average annual total returns for the 1-year period
ended 6/30/96 and since inception of the Class on 12/1/93 were 13.78% and
10.45%, respectively.(2)
Outlook
"Despite the increased volatility of the stock market during the first half of
1996, our long-term outlook is positive. Whether stocks continue to climb at an
accelerated pace or experience more normal growth, we believe the Fund, through
its broad diversification, is well-positioned to respond with competitive
returns and lower than average risk."
Richard Rubinstein, Portfolio Manager
June 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost. For more complete information, please review the
prospectus carefully before you invest.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/95, 6/30/91
and 4/24/87 (inception of class), after deducting the current maximum initial
sales charge of 5.75%. Prior to 4/1/91, the Fund's maximum sales charge rate for
Class A shares was higher, so that actual account results would have been less.
Class B return is cumulative and shows results of a hypothetical investment on
8/29/95 (inception of class), after the deduction of the applicable contingent
deferred sales charge of 5%. Class C returns show results of hypothetical
investments on 6/30/95 and 12/1/93 (inception of class), with the 1% contingent
deferred sales charge deducted for the 1-year result. An explanation of the
different performance calculations is in the Fund's prospectus.
2 Oppenheimer Asset Allocation Fund
<PAGE>
Dear Shareholder,
[PHOTO-BRIDGET A. MACASKILL]
Bridget A. Macaskill
President
Oppenheimer
Asset Allocation Fund
As you know, asset allocation is one of the most important decisions that an
investor can make. Historically, choosing the right mixture has gone a long way
toward determining one's total return and risk during a period.
By investing in a mutual fund that has a mixture of stocks and bonds, an
investor has access to professional managers who are continually evaluating the
appropriate asset allocation. Although stocks have tended to produce the highest
returns, they also typically presented the greatest risk. Bonds, on the other
hand, have produced more stable returns, but tend to fluctuate less on the
downside than do stocks.
The first half of 1996 was an unusual period in which stocks posted double
digit returns, and bonds actually declined. It was a period which tested the
mettle of even the most experienced professional investor.
With the S&P 500 having advanced 37% in 1995 alone, many experts believed
that the stock market was due for a correction in 1996. However, because of
surprisingly strong corporate profits, the stock market continued to advance.
The strength of the stock market was all the more remarkable considering that
interest rates have moved up sharply. It is unusual for stocks to go up when
interest rates are rising, because investors are increasingly tempted to shift
their money out of stocks and invest in bonds that offer higher yields.
It has been virtually impossible for high quality bonds to show positive
returns in an interest rate environment like the one we experienced in the first
half of 1996. However, a good argument can be made that bonds offer better
values today than do stocks, which are still at high valuation levels. A newly
issued 30-year Treasury bond yields about 7% in income while quality corporate
bonds of similar maturities yield even more.
In contrast, stocks continued to appear relatively expensive in relation to
bonds. The market continued to hit new highs, and stock prices became quite
extended in relation to corporate profits. To be sure, the market is dynamic,
and the best results are usually obtained by a team dedicated to this analysis.
For this reason, we will continue to monitor the relative returns and risks of
stocks vs. bonds and invest accordingly.
Your portfolio managers discuss the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
July 22, 1996
3 Oppenheimer Asset Allocation Fund
<PAGE>
Q + A [PHOTO-RICHARD RUBINSTEIN AND ROBERT DOLL] [PHOTO-PAUL LAROCCO]
Q How did
the Fund
perform?
An interview with your Fund's managers.
How did the Fund perform over the past six months?
The Fund delivered solid results for the period, finishing ahead of
three-quarters of the funds in our peer group. While we benefited from an
investment strategy designed to work well under a variety of conditions, our
success this period was due in large part to the strength of the domestic stock
market and our diversified approach in bonds.
What investments contributed to the Fund's strong performance?
A combination of factors contributed to our performance this period. First, our
domestic stock holdings, which included large positions in technology and
healthcare stocks, performed well for us, even as U.S. corporate earnings
momentum in general began to slow. Second, our bond allocation decision had a
favorable impact on performance as we moved toward the more competitive returns
of high yield bonds.(1)
[PHOTO-ROBERT DOLL]
Were there any investments that didn't perform as expected?
In general, our foreign stock holdings, while providing positive
results, failed to meet our expectations. Of course, investing abroad involves
substantial costs and risks--such as fluctuations in foreign currency. Over the
near term, however, our philosophy for including foreign securities in the
portfolio to help limit overall portfolio risk remains intact. And over the long
term, we are optimistic about their potential to outperform domestic stocks.
What areas are you currently targeting?
Over the past few months, the combination of slowing U.S. corporate earnings
momentum, high valuations and an increase in interest rates has led us to
allocate the Fund's assets more
1. Investors in high yield bonds are subject to a greater risk that the issuer
will default in its principal or interest payments.
4 Oppenheimer Asset Allocation Fund
<PAGE>
Facing page
Top left: Richard Rubinstein, Portfolio Manager, with Robert Doll, Executive VP,
Director of Equity Investments
Top right: Paul LaRocco, Member of Equity Investments Team
Bottom: Robert Doll
This page
Top: Richard Rubinstein
Bottom: Bruce Bartlett, Member of Equity Investments Team
A We
finished
ahead of
three-quarters
of the funds
in our peer
group.
conservatively. This resulted in a reduction of our total equity holdings by
about five percent. We also decreased our total number of securities. At the
same time, we increased, on a percentage basis, holdings we believe are best
positioned for future growth.
Over the period, we continued to focus on growth stocks, issued by
companies with strong competitive positions and consistent earnings. We also
recently added to our position in energy stocks. These stocks tend to sell at
low prices relative to cash flows. With energy prices on the rise, we believe
they offer reward potential.
Because part of our overall strategy involves a contrarian approach to
looking for opportunities in out-of-favor industries and companies on the
rebound--we recently bought retail stocks. Though many consumer retail companies
have suffered from consumer malaise, a lot have attractive store economics.
As a result, we think their prospects look good.
On the international side, we increased positions in companies having
comparative advantages over U.S. competitors or that sell at valuation
discounts. We located companies offering such advantages in Argentina, Turkey
and the Far East, as well as in several more established European markets.(2)
[PHOTO-RICHARD RUBINSTEIN]
What is your outlook for the Fund?
Despite the increased volatility of the stock market during the first half of
1996, our long-term outlook remains positive. Whether stocks continue to climb
at an accelerated pace or experience more normal growth, we believe the Fund,
through its broad diversification, is well-positioned to respond with
competitive returns and lower-than-average risk. [solid box]
[PHOTO-BRUCE BARTLETT]
2. The Fund's portfolio is subject to change.
5 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments June 30, 1996 (Unaudited)
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
===================================================================================================================================
Mortgage-Backed Obligations--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
11.50%, 7/1/11 $ 149,855 $ 165,760
11.75%, 1/1/16 278,018 312,682
---------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn., 9%, 11/15/08--5/15/09 536,203 569,716
---------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,
Series 1994-C2, Cl. E, 8%, 4/25/25 381,514 363,929
------------
Total Mortgage-Backed Obligations (Cost $1,288,304) 1,412,087
===================================================================================================================================
U.S. Government Obligations--12.4%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, Zero Coupon:
7.10%, 11/15/18(2) 17,000,000 3,492,904
7.31%, 8/15/19(2) 18,700,000 3,643,281
---------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
8.25%, 7/15/98 16,000,000 16,640,000
8.875%, 11/15/98 950,000 1,005,219
9.25%, 8/15/98 9,450,000 10,019,947
------------
Total U.S. Government Obligations (Cost $33,924,763) 34,801,351
===================================================================================================================================
Foreign Government Obligations--16.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Series I, 5.445%, 4/1/01(3) 1,523,246 1,366,279
---------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 5.25%, 3/31/23(4) 10,000,000 5,493,700
---------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Past Due Interest Bonds, Series L, 6.312%, 3/31/05(3) 5,940,000 4,651,733
---------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon, 48.25%, 10/3/96(2) MXP 4,384,900 534,797
---------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon, 51.20%, 9/12/96(2) MXP 4,667,740 579,208
---------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Par Bonds, 5%, 4/15/24(4) 7,500,000 4,139,025
---------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds, 9.75%, 6/1/01 CAD 2,000,000 1,631,317
---------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds, 9.75%, 12/1/01 CAD 6,000,000 4,919,699
---------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 3/15/06 DKK 21,900,000 3,883,179
---------------------------------------------------------------------------------------------------------------
Eskom Depositary Receipts, Series E168, 11%, 6/1/08 ZAR 6,430,000 1,172,897
---------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali,
8.50%, 8/1/99 ITL 1,800,000,000 1,176,672
---------------------------------------------------------------------------------------------------------------
New Zealand (Republic of) Bonds, 8%, 2/15/01 NZD 7,460,000 4,913,188
---------------------------------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon, 24.13%, 11/13/96(2) PLZ 2,300,000 784,858
---------------------------------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon, 24.43%, 7/3/96(2) PLZ 2,140,000 786,545
---------------------------------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon, 21.79%, 9/4/96(2) PLZ 4,240,000 1,503,662
---------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Exchangeable Gtd. Nts., 10.50%, 5/15/03 AUD 5,000,000 4,261,972
---------------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03 AUD 3,000,000 2,274,092
---------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 13%, 7/14/00 GBP 1,050,000 1,958,809
---------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction Bonds,
Series A, 6.375%, 3/31/07(3) 1,500,000 1,085,625
------------
Total Foreign Government Obligations (Cost $45,609,490) 47,117,257
</TABLE>
6 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
===================================================================================================================================
Non-Convertible Corporate Bonds and Notes--11.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--2.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--0.2% Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 $ 500,000 $ 549,026
- -----------------------------------------------------------------------------------------------------------------------------------
Metals--0.2% Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 536,250
- -----------------------------------------------------------------------------------------------------------------------------------
Paper--1.7% Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs., 5/15/05 1,000,000 1,057,500
---------------------------------------------------------------------------------------------------------------
Global Marine, Inc., 12.75% Sr. Sec. Nts., 12/15/99 400,000 434,500
---------------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06 1,000,000 892,500
---------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.875% Sr. Sub. Nts., 4/1/08 1,000,000 990,000
---------------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., 12/15/04 1,000,000 1,065,000
---------------------------------------------------------------------------------------------------------------
Tembec Finance Corp., 9.875% Gtd. Sr. Nts., 9/30/05 500,000 467,500
------------
4,907,000
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--4.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--0.2%
Hovnanian K. Enterprises, Inc., 11.25% Sub. Gtd. Nts., 4/15/02 725,000 667,000
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--0.3%
Apple South, Inc., 9.75% Sr. Nts., 6/1/06 500,000 493,750
---------------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02(5) 213,908 225,406
------------
719,156
- -----------------------------------------------------------------------------------------------------------------------------------
Media--3.3%
Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04(6) 200,000 141,000
---------------------------------------------------------------------------------------------------------------
Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 1,000,000 1,012,500
---------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 500,000 517,500
---------------------------------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp., 0%/13.125%
Sr. Sec. Disc. Nts., 3/15/04(6)(7) 1,000,000 625,000
---------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,054,423
---------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(6) 1,250,000 1,093,750
---------------------------------------------------------------------------------------------------------------
People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04(6) 500,000 287,500
---------------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority Debs., 12/1/07 1,000,000 977,500
---------------------------------------------------------------------------------------------------------------
SCI Television, Inc., 11% Sr. Nts., Series 1, 6/30/05 500,000 522,500
---------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.95% Nts., 2/1/00 1,000,000 1,024,714
---------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,100,000 1,224,683
---------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon
Sr. Sec. Disc. Nts., 12.82%, 11/15/99(2) 600,000 396,000
---------------------------------------------------------------------------------------------------------------
Videotron Holdings PLC, 0%/11% Sr. Disc. Nts., 8/15/05(6) 500,000 327,500
------------
9,204,570
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General--0.3%
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 900,000 956,250
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--0.2%
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 500,000 528,750
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Food--0.5%
Grand Union Co., 12% Sr. Nts., 9/1/04 1,137,000 1,067,359
---------------------------------------------------------------------------------------------------------------
Ralph's Grocery Co., 11% Sr. Sub. Nts., 6/15/05 500,000 462,500
------------
1,529,859
</TABLE>
7 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Unaudited) (Continued)
Face Market Value
Amount(1) See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies &
Services--0.1%
Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 $ 345,000 $ 385,537
- -----------------------------------------------------------------------------------------------------------------------------------
Household Goods--0.3%
Coleman Holdings, Inc., Zero Coupon
Sr. Sec. Disc. Nts., Series B, 11.81%, 5/27/98(2) 1,000,000 842,500
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Services &
Producers--1.0%
Maxus Energy Corp., 11.50% Debs., 11/15/15 1,000,000 1,047,500
---------------------------------------------------------------------------------------------------------------
Mesa Operating Co., 10.625% Gtd. Sr. Sub. Nts., 7/1/06(8) 1,000,000 1,015,625
---------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Sr. Gtd. Nts., 7/15/02 750,000 832,500
------------
2,895,625
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--0.4%
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 1,250,000 1,250,000
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance--0.4%
Conseco, Inc., 8.125% Sr. Nts., 2/15/03 1,000,000 1,008,219
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Materials--0.4%
Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 500,000 512,500
---------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 11% Sr. Debs., 12/1/03 650,000 700,375
------------
1,212,875
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services--0.3%
EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 1,000,000 920,000
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing--0.2%
MacAndrews & Forbes Group, Inc., 12.25% Sub. Nts., 7/1/96 500,000 502,500
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--0.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--0.5%
Communications & Power Industries, Inc., 12% Sr. Sub. Nts., 8/1/05 1,000,000 1,062,500
---------------------------------------------------------------------------------------------------------------
Unisys Corp., 15% Credit Sensitive Nts., 7/1/97(3) 200,000 213,500
------------
1,276,000
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications-
Technology--0.4%
Hyperion Telecommunications, Inc., Units (each unit consists
of $1,000 principal amount of 0%/13% Sr. Disc. Nts.,
4/15/03 and one warrant to purchase 1.8645 shares of common stock)(6)(7)(10) 500,000 282,500
---------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/12.25% Sr. Sub. Disc. Nts., 10/1/03(6) 1,000,000 795,000
------------
1,077,500
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--0.4%
First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 1,000,000 1,052,500
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--0.2%
Western Wireless Corp., 10.50% Sr. Sub. Nts., 6/1/06 500,000 500,625
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $32,346,682) 32,521,742
===================================================================================================================================
Convertible Corporate Bonds and Notes--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIQ, Inc., 7.50% Exchangeable Sub. Debs., 7/15/03 (Cost $1,548,461) 1,650,000 1,402,500
</TABLE>
8 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
===================================================================================================================================
Common Stocks--47.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--2.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--1.7%
Agrium, Inc. 40,000 $ 524,375
---------------------------------------------------------------------------------------------------------------
ARCO Chemical Co. 14,700 764,400
---------------------------------------------------------------------------------------------------------------
Bayer AG, Sponsored ADR 90,000 3,178,089
---------------------------------------------------------------------------------------------------------------
IMC Global, Inc. 9,600 361,200
------------
4,828,064
- -----------------------------------------------------------------------------------------------------------------------------------
Metals--0.7%
Brush Wellman, Inc. 72,300 1,373,700
---------------------------------------------------------------------------------------------------------------
J&L Specialty Steel, Inc. 36,500 542,937
------------
1,916,637
- -----------------------------------------------------------------------------------------------------------------------------------
Paper--0.5%
Aracruz Celulose SA, Sponsored ADR, Cl. B 99,000 940,500
---------------------------------------------------------------------------------------------------------------
Stone Container Corp. 41,700 573,375
------------
1,513,875
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--7.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--0.9%
Fiat SpA 320,000 1,071,920
---------------------------------------------------------------------------------------------------------------
General Motors Corp. 18,000 942,750
---------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones, SA 193,056 657,321
------------
2,671,991
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--3.4%
AMR Corp.(12) 13,100 1,192,100
---------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A 23,800 687,225
---------------------------------------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 55,300 1,341,025
---------------------------------------------------------------------------------------------------------------
Eastman Kodak Co.(11) 19,700 1,531,675
---------------------------------------------------------------------------------------------------------------
International Game Technology 62,700 1,058,062
---------------------------------------------------------------------------------------------------------------
King World Productions, Inc.(11)(12) 27,000 982,125
---------------------------------------------------------------------------------------------------------------
Mattel, Inc.(11) 39,437 1,128,884
---------------------------------------------------------------------------------------------------------------
Shimano, Inc. 54,000 964,976
---------------------------------------------------------------------------------------------------------------
U S West Media Group(12) 34,300 625,975
------------
9,512,047
- -----------------------------------------------------------------------------------------------------------------------------------
Media--1.5%
Comcast Corp., Cl. A Special 85,500 1,581,750
---------------------------------------------------------------------------------------------------------------
Dow Jones & Co., Inc. 17,500 730,625
---------------------------------------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 1,440,000 985,982
---------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 27,600 1,083,300
------------
4,381,657
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General--1.0%
Cone Mills Corp.(12) 146,500 1,648,125
---------------------------------------------------------------------------------------------------------------
Price/Costco, Inc.(12) 54,300 1,174,237
------------
2,822,362
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--0.6%
Gymboree Corp.(11)(12) 23,400 713,700
---------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(12) 32,600 929,100
------------
1,642,800
</TABLE>
9 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--9.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages--1.0%
Buenos Aires Embotelladora SA, Sponsored ADR 23,500 $ 311,375
---------------------------------------------------------------------------------------------------------------
Guinness PLC 144,000 1,047,138
---------------------------------------------------------------------------------------------------------------
Whitman Corp.(11) 60,600 1,461,975
------------
2,820,488
- -----------------------------------------------------------------------------------------------------------------------------------
Food--1.2%
Groupe Danone 3,407 515,541
---------------------------------------------------------------------------------------------------------------
IBP, Inc.(11) 27,000 745,875
---------------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 20,000 1,141,700
---------------------------------------------------------------------------------------------------------------
Sara Lee Corp.(11) 27,000 874,125
------------
3,277,241
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--4.4%
Abbott Laboratories 17,200 748,200
---------------------------------------------------------------------------------------------------------------
American Home Products Corp. 16,200 974,025
---------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 27,000 1,192,228
---------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 22,500 2,025,000
---------------------------------------------------------------------------------------------------------------
Ciba-Geigy AG 2,275 2,771,861
---------------------------------------------------------------------------------------------------------------
Genzyme Corp.(11)(12) 21,000 1,055,250
---------------------------------------------------------------------------------------------------------------
Johnson & Johnson 26,800 1,326,600
---------------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 30,000 517,500
---------------------------------------------------------------------------------------------------------------
NBTY, Inc.(12) 95,400 959,962
---------------------------------------------------------------------------------------------------------------
SmithKline Beecham PLC, ADR 14,400 783,000
------------
12,353,626
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies &
Services--1.5%
Manor Care, Inc.(11) 21,600 850,500
---------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 19,800 1,108,800
---------------------------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc.(12) 8,000 388,000
---------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc.(11) 22,500 1,237,500
---------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(11)(12) 18,009 562,781
------------
4,147,581
- -----------------------------------------------------------------------------------------------------------------------------------
Household Goods--0.9%
Kimberly-Clark Corp. 9,800 757,050
---------------------------------------------------------------------------------------------------------------
Procter & Gamble Co.(11) 10,800 978,750
---------------------------------------------------------------------------------------------------------------
Wella AG 1,350 774,272
------------
2,510,072
- -----------------------------------------------------------------------------------------------------------------------------------
Tobacco--0.8%
Philip Morris Cos., Inc. 20,600 2,142,400
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--2.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Services &
Producers--0.6%
Kerr-McGee Corp.(11) 9,000 547,875
---------------------------------------------------------------------------------------------------------------
Landmark Graphics Corp.(12) 53,300 1,026,025
------------
1,573,900
</TABLE>
10 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated--2.1%
Atlantic Richfield Co. 11,300 $ 1,339,050
---------------------------------------------------------------------------------------------------------------
Enterprise Oil PLC 90,000 643,274
---------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 6,300 968,625
---------------------------------------------------------------------------------------------------------------
Saga Petroleum AS, Cl. B 63,000 853,405
---------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR(11) 17,800 660,825
---------------------------------------------------------------------------------------------------------------
Unocal Corp. 45,000 1,518,750
------------
5,983,929
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--7.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Banks--5.1%
Akbank T.A.S. 1,995,500 240,444
---------------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 81,675 786,828
---------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New)(11) 85,700 6,052,562
---------------------------------------------------------------------------------------------------------------
Citicorp(11) 9,900 817,987
---------------------------------------------------------------------------------------------------------------
Deutsche Bank, Sponsored ADR 22,500 1,064,291
---------------------------------------------------------------------------------------------------------------
NationsBank Corp. 65,200 5,387,150
------------
14,349,262
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--0.9%
American Express Co. 26,500 1,182,562
---------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 8,600 735,300
---------------------------------------------------------------------------------------------------------------
H & R Block, Inc.(11) 20,800 678,600
------------
2,596,462
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance--1.5%
ACE Ltd. 16,800 789,600
---------------------------------------------------------------------------------------------------------------
Aetna Life & Casualty Co. 4,400 314,600
---------------------------------------------------------------------------------------------------------------
American International Group, Inc. 8,100 798,862
---------------------------------------------------------------------------------------------------------------
American Re Corp.(11) 36,000 1,615,500
---------------------------------------------------------------------------------------------------------------
Skandia Forsakrings AB 27,000 714,116
------------
4,232,678
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--4.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--0.5%
General Electric Co.(11) 18,000 1,557,000
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Materials--1.0%
Owens Corning 54,000 2,322,000
---------------------------------------------------------------------------------------------------------------
Wolverine Tube, Inc.(12) 18,000 630,000
------------
2,952,000
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing--1.6%
Mannesmann AG 4,000 1,377,010
---------------------------------------------------------------------------------------------------------------
Pacific Dunlop Ltd. 333,000 749,574
---------------------------------------------------------------------------------------------------------------
Tenneco, Inc.(11) 34,400 1,758,700
---------------------------------------------------------------------------------------------------------------
Westinghouse Air Brake Co. 42,600 559,125
------------
4,444,409
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation--1.4%
Burlington Northern Santa Fe Corp.(11) 24,500 1,981,438
---------------------------------------------------------------------------------------------------------------
Canadian National Railway Co. 27,000 497,247
---------------------------------------------------------------------------------------------------------------
Consolidated Freightways, Inc. 10,400 219,700
---------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA 51,200 928,000
---------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA, ADR 25,650 477,731
------------
4,104,116
</TABLE>
11 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--10.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Hardware--1.6%
Digital Equipment Corp.(12) 14,000 $ 630,000
---------------------------------------------------------------------------------------------------------------
EMC Corp.(12) 27,300 508,463
---------------------------------------------------------------------------------------------------------------
International Business Machines Corp.(11) 12,300 1,217,700
---------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc.(11)(12) 10,000 588,750
---------------------------------------------------------------------------------------------------------------
Xerox Corp.(11) 30,000 1,605,000
------------
4,549,913
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software--3.7%
Computer Associates International, Inc.(11) 36,200 2,579,250
---------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(12) 42,700 1,142,225
---------------------------------------------------------------------------------------------------------------
Microsoft Corp.(12) 6,700 804,838
---------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 31,500 2,343,513
---------------------------------------------------------------------------------------------------------------
Novell, Inc.(12) 88,700 1,230,713
---------------------------------------------------------------------------------------------------------------
Structural Dynamics Research Corp.(12) 27,900 613,800
---------------------------------------------------------------------------------------------------------------
Sybase, Inc.(12) 24,000 567,000
---------------------------------------------------------------------------------------------------------------
Symantec Corp.(12) 82,502 1,031,275
------------
10,312,614
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics--3.5%
Duracell International, Inc. 13,900 599,438
---------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H(11) 15,000 901,875
---------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 15,000 1,494,375
---------------------------------------------------------------------------------------------------------------
Intel Corp. 54,000 3,965,625
---------------------------------------------------------------------------------------------------------------
Kyocera Corp. 12,000 847,910
---------------------------------------------------------------------------------------------------------------
Nokia Corp., Preference 17,000 629,000
---------------------------------------------------------------------------------------------------------------
Teradyne, Inc.(12) 45,000 776,250
---------------------------------------------------------------------------------------------------------------
VLSI Technology, Inc.(12) 46,500 645,188
------------
9,859,661
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications-
Technology--1.6%
Airtouch Communications, Inc.(11)(12) 32,900 929,425
---------------------------------------------------------------------------------------------------------------
Bay Networks, Inc.(11)(12) 19,180 493,885
---------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd.(11) 45,000 1,046,250
---------------------------------------------------------------------------------------------------------------
MCI Communications Corp. 81,000 2,075,625
------------
4,545,185
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities--2.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--1.1%
Korea Electric Power Corp. 15,800 643,551
---------------------------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 42,000 1,149,750
---------------------------------------------------------------------------------------------------------------
Verbund Oest Electriz 17,100 1,304,970
------------
3,098,271
- -----------------------------------------------------------------------------------------------------------------------------------
Gas Utilities--0.3%
Hong Kong & China Gas 464,488 741,092
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--1.0%
BCE, Inc. 30,600 1,208,700
---------------------------------------------------------------------------------------------------------------
Portugal Telecom SA(12) 10,500 274,268
---------------------------------------------------------------------------------------------------------------
U S West Communications Group 41,400 1,319,625
------------
2,802,593
------------
Total Common Stocks (Cost $91,012,510) 134,243,926
</TABLE>
12 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C>
===================================================================================================================================
Preferred Stocks--1.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Alumax, Inc., $4.00 Cv., Series A 6,333 $ 825,665
---------------------------------------------------------------------------------------------------------------
Delta Air Lines, Inc., $3.50 Cv. Depositary Shares, Series C 29,000 1,827,000
---------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 10.25% Cum., Series K, Exchangeable Preferred Stock(7) 700 686,000
---------------------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A 17,666 967,213
------------
Total Preferred Stocks (Cost $3,403,347) 4,305,878
<CAPTION>
Units
<S> <C> <C>
===================================================================================================================================
Rights, Warrants and Certificates--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Wts., Exp. 9/97 57,874 15,141
---------------------------------------------------------------------------------------------------------------
People's Choice TV Corp. Wts., Exp. 6/00 500 500
------------
Total Rights, Warrants and Certificates (Cost $15,337) 15,641
<CAPTION>
Face
Amount(1)
<S> <C> <C>
===================================================================================================================================
Repurchase Agreement--6.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Canadian Imperial Bank of Commerce,
5.45%, dated 6/28/96, to be repurchased at $18,208,266 on 7/1/96,
collateralized by U.S. Treasury Bonds, 9.125%--11.25%, 2/15/15--5/11/18,
with a value of $6,433,479, and U.S. Treasury Nts., 5.25%--8.50%,
1/11/97--11/15/04, with a value of $12,158,417 (Cost $18,200,000) $ 18,200,000 18,200,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $227,348,894) 97.2% 274,020,382
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 2.8 7,811,663
------------ ------------
Net Assets 100.0% $281,832,045
============ ============
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those
denoted in the following currencies:
AUD-- Australian Dollar MXP--Mexican Peso
CAD-- Canadian Dollar NZD--New Zealand Dollar
DKK-- Danish Krone PLZ--Polish Zloty
GBP-- British Pound Sterling ZAR--South African Rand
ITL-- Italian Lira
2. For zero coupon bonds, the interest rate shown is the
effective yield on the date of purchase.
3. Represents the current interest rate for a variable rate
security.
4. Represents the current interest rate for an increasing
rate security.
5. Identifies issues considered to be illiquid--See Note 6
of Notes to Financial Statements.
6. Denotes a step bond: a zero coupon bond that converts to
a fixed rate of interest at a designated future date.
7. Represents a security sold under Rule 144A, which is
exempt from registration under the Securities Act of 1933,
as amended. This security has been determined to be liquid
under guidelines established by the Board of Trustees. These
securities amount to $1,593,500 or 0.57% of the Fund's net
assets, at June 30, 1996.
8. When-issued security to be delivered and settled after
June 30, 1996.
9. Indexed instrument for which the prinicipal amount and/or
interest due at maturity is affected by the relative value
of a foreign index.
10. Units may be comprised of several components, such as
debt and equity and/or warrants to purchase equity at some
point in the future. For units which represent debt
securities, face amount disclosed represents total
underlying principal.
13 Oppenheimer Asset Allocation Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
11. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
Market
Shares Expiration Exercise Premium Value
Subject to Call Date Price Received See Note 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Airtouch Communications, Inc. 7,200 7/96 $ 35 $ 10,216 $ 450
- ----------------------------------------------------------------------------------------------------------------------------------
American Re Corp. 10,400 7/96 45 19,187 13,650
- ----------------------------------------------------------------------------------------------------------------------------------
Bay Networks, Inc. 13,000 9/96 35 56,483 8,937
- ----------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 5,000 7/96 85 19,224 3,125
- ----------------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 19,000 9/96 70 75,427 99,750
- ----------------------------------------------------------------------------------------------------------------------------------
Citicorp 2,000 7/96 75 6,690 15,250
- ----------------------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 8,000 7/96 75 32,319 8,000
- ----------------------------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd. 17,900 8/96 30 30,800 4,475
- ----------------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 4,200 7/96 75 17,198 15,750
- ----------------------------------------------------------------------------------------------------------------------------------
General Electric Co. 4,600 9/96 80 14,236 36,800
- ----------------------------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 3,000 9/96 65 11,535 5,625
- ----------------------------------------------------------------------------------------------------------------------------------
Genzyme Corp. 4,000 7/96 80 20,503 250
- ----------------------------------------------------------------------------------------------------------------------------------
Gymboree Corp. 5,600 7/96 20 8,232 60,900
- ----------------------------------------------------------------------------------------------------------------------------------
H & R Block, Inc. 9,000 7/96 40 18,476 563
- ----------------------------------------------------------------------------------------------------------------------------------
IBP, Inc. 27,000 11/96 25 59,938 94,500
- ----------------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 2,200 7/96 120 10,384 275
- ----------------------------------------------------------------------------------------------------------------------------------
Kerr-McGee Corp. 2,000 7/96 70 2,065 500
- ----------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. 12,000 8/96 45 20,639 3,000
- ----------------------------------------------------------------------------------------------------------------------------------
Manor Care, Inc. 4,800 7/96 45 4,656 600
- ----------------------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 8,000 7/96 28 10,888 12,500
- ----------------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 2,400 7/96 95 4,578 900
- ----------------------------------------------------------------------------------------------------------------------------------
Sara Lee Corp. 6,800 7/96 35 9,145 425
- ----------------------------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc. 10,000 7/96 48 80,472 120,000
- ----------------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 7,600 8/96 60 11,172 1,425
- ----------------------------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 4,400 8/96 40 4,268 2,475
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 7,500 7/96 55 10,087 4,688
- ----------------------------------------------------------------------------------------------------------------------------------
Wellpoint Health Networks, Inc. 7,000 7/96 40 7,126 1,750
- ----------------------------------------------------------------------------------------------------------------------------------
Whitman Corp. 15,000 9/96 25 14,550 11,250
- ----------------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 6,600 7/96 50 18,083 26,400
-------- --------
$608,577 $554,213
======== ========
</TABLE>
12. Non-income producing security.
See accompanying Notes to Financial Statements.
14 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities June 30, 1996 (Unaudited)
<S> <C>
====================================================================================================================================
Assets Investments, at value (cost $227,348,894)--see accompanying statement $274,020,382
-----------------------------------------------------------------------------------------------------------------
Cash 355,374
-----------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 8,963,750
Interest and dividends 3,057,273
Shares of beneficial interest sold 468,339
-----------------------------------------------------------------------------------------------------------------
Other 17,169
------------
Total assets 286,882,287
====================================================================================================================================
Liabilities Options written, at value (premiums received $608,577)--
see accompanying statement--Note 5 554,213
-----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,199,937
Shares of beneficial interest redeemed 712,781
Trustees' fees 170,900
Distribution and service plan fees 128,987
Shareholder reports 34,736
Transfer and shareholder servicing agent fees 25,130
Other 223,558
------------
Total liabilities 5,050,242
====================================================================================================================================
Net Assets $281,832,045
============
====================================================================================================================================
Composition of Paid-in capital $223,531,766
Net Assets -----------------------------------------------------------------------------------------------------------------
Undistributed net investment income 488,823
-----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment and foreign currency transactions 11,083,102
-----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 46,728,354
------------
Net assets $281,832,045
============
====================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of $258,503,177 and
18,854,117 shares of beneficial interest outstanding) $13.71
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $14.55
-----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $4,402,301 and 322,935 shares of beneficial interest outstanding) $13.63
-----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $18,926,567 and 1,387,251 shares of beneficial interest outstanding) $13.64
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations For the Six Months Ended June 30, 1996 (Unaudited)
<S> <C>
====================================================================================================================================
Investment Income Interest (net of foreign withholding taxes of $6,104) $ 6,307,516
-----------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $60,790) 2,151,010
-----------
Total income 8,458,526
====================================================================================================================================
Expenses Management fees--Note 4 1,018,518
-----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 228,798
Class B 13,685
Class C 84,962
-----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 173,235
-----------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 75,680
-----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 50,578
-----------------------------------------------------------------------------------------------------------------
Shareholder reports 49,957
-----------------------------------------------------------------------------------------------------------------
Legal and auditing fees 32,654
-----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 1,913
Class C 3,976
-----------------------------------------------------------------------------------------------------------------
Insurance expenses 3,916
-----------------------------------------------------------------------------------------------------------------
Other 12,169
-----------
Total expenses 1,750,041
====================================================================================================================================
Net Investment Income 6,708,485
====================================================================================================================================
Realized and
Unrealized
Gain (Loss)
Net realized gain on:
Investments (including premiums on options exercised) 9,753,357
Closing and expiration of options written 582,852
Foreign currency transactions 10,729
-----------
Net realized gain 10,346,938
-----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 2,169,318
Translation of assets and liabilities denominated in foreign currencies (494,886)
-----------
Net change 1,674,432
-----------
Net realized and unrealized gain 12,021,370
-----------
====================================================================================================================================
Net Increase in Net Assets Resulting From Operations $18,729,855
===========
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Six Months Ended Year Ended
June 30, 1996 December 31,
(Unaudited) 1995
<S> <C> <C>
====================================================================================================================================
Operations Net investment income $ 6,708,485 $ 10,269,144
-----------------------------------------------------------------------------------------------------------------
Net realized gain 10,346,938 11,752,299
-----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,674,432 31,347,982
------------- -------------
Net increase in net assets resulting from operations 18,729,855 53,369,425
====================================================================================================================================
Dividends and
Distributions to
Shareholders
Dividends from net investment income:
Class A (5,237,277) (9,264,819)
Class B (61,463) (14,574)
Class C (299,802) (386,395)
-----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (10,313,461)
Class B -- (52,208)
Class C -- (630,243)
====================================================================================================================================
Beneficial Interest
Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A (5,121,116) (18,002,247)
Class B 3,043,575 1,310,712
Class C 2,754,460 5,054,751
====================================================================================================================================
Net Assets
Total increase 13,808,232 21,070,941
-----------------------------------------------------------------------------------------------------------------
Beginning of period 268,023,813 246,952,872
------------- -------------
End of period [including undistributed (overdistributed) net
investment income of $488,823 and $(621,120), respectively] $ 281,832,045 $ 268,023,813
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Asset Allocation Fund
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
Class A
-------------------------------------------------------------------------------------
Six Months Ended
June 30
1996 Year Ended December 31,
(Unaudited) 1995 1994 1993 1992 1991(3)
<S> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $ 13.07 $ 11.52 $ 13.05 $ 11.63 $ 11.22 $ 10.19
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .33 .52 .54 .44 .39 .40
Net realized and unrealized gain (loss) .59 2.08 (.75) 1.43 .44 1.06
-------- -------- -------- -------- -------- --------
Total income (loss) from
investment operations .92 2.60 (.21) 1.87 .83 1.46
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.28) (.49) (.53) (.44) (.42) (.43)
Distributions from net realized gain -- (.56) (.79) (.01) -- --
-------- -------- -------- -------- -------- --------
Total dividends and distributions
to shareholders (.28) (1.05) (1.32) (.45) (.42) (.43)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.71 $ 13.07 $ 11.52 $ 13.05 $ 11.63 $ 11.22
======== ======== ======== ======== ======== ========
====================================================================================================================================
Total Return, at Net Asset Value(4) 7.07% 22.79% (1.59)% 16.30% 7.54% 14.67%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $258,503 $251,353 $237,771 $277,914 $266,713 $276,800
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $256,364 $249,660 $260,767 $272,303 $269,096 $192,870
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.95%(5) 3.97% 4.10% 3.58% 3.41% 3.78%
Expenses 1.21%(5) 1.15% 1.09% 1.14% 1.17% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 21.1% 28.5% 31.5% 32.7% 60.3% 102.0%
Average brokerage commission rate(7) $ 0.0326 $ 0.0350 -- -- -- --
<CAPTION>
Class B Class C
------------------------- -----------------------------------------------------
Six Months Six Months
Ended Period Ended
June 30, Ended June 30,
1996 Dec. 31, 1996 Year Ended December 31,
(Unaudited) 1995(2) (Unaudited) 1995 1994 1993(1)
<S> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $ 13.03 $ 13.31 $ 13.01 $ 11.49 $13.05 $12.86
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .29 .17 .28 .40 .44 (.97)
Net realized and unrealized gain (loss) .54 .38 .58 2.07 (.77) 1.29
-------- -------- ------- ------- ------ ------
Total income (loss) from
investment operations .83 .55 .86 2.47 (.33) .32
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.23) (.27) (.23) (.39) (.44) (.12)
Distributions from net realized gain -- (.56) -- (.56) (.79) (.01)
-------- -------- ------- ------- ------ ------
Total dividends and distributions
to shareholders (.23) (.83) (.23) (.95) (1.23) (.13)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.63 $ 13.03 $ 13.64 $ 13.01 $11.49 $13.05
======== ======== ======= ======= ====== ======
====================================================================================================================================
Total Return, at Net Asset Value(4) 6.41% 4.44% 6.61% 21.69% (2.50)% 2.51%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $ 4,402 $ 1,265 $18,927 $15,405 $9,182 $ 396
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 2,762 $ 520 $17,101 $11,827 $5,601 $ 194
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.95%(5) 2.62%(5) 4.07%(5) 3.08% 3.30% 2.19%(5)
Expenses 2.18%(5) 2.27%(5) 2.08%(5) 1.99% 2.00% 2.50%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 21.1% 28.5% 21.1% 28.5% 31.5% 32.7%
Average brokerage commission rate(7) $ 0.0326 $ 0.0350 $0.0326 $0.0350 -- --
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to December 31,
1993.
2. For the period from August 29, 1995 (inception of offering) to December
31, 1995.
3. Per share amounts calculated based on the weighted average number of shares
outstanding during the year.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $52,722,483 and $67,154,214, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
18 Oppenheimer Asset Allocation Fund
<PAGE>
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 objective is to seek high total
investment return (current income and capital appreciation in the value of its
shares). The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge. Class B and Class C shares may be subject to a
contingent deferred sales charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its own
distribution and/or service plan, expenses directly attributable to a
particular class and exclusive voting rights with respect to matters affecting a
single class. Class B shares will automatically convert to Class A shares six
years after the date of purchase. The following is a summary of significant
accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
asked price or the last sale price on the prior trading day. Long-term and
short-term "non-money market" debt securities are valued by a portfolio pricing
service approved by the Board of Trustees. Such securities which cannot be
valued by the approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. Options are valued based upon the last sale
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 price 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 effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
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, 1996, a provision of $52,342 was made for the Fund's projected
benefit obligations, and payments of $4,853 were made to retired trustees,
resulting in an accumulated liability of $160,373 at June 30, 1996.
19 Oppenheimer Asset Allocation Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
1. Significant
Accounting Policies
(continued)
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund.
- --------------------------------------------------------------------------------
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.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. Shares of
Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 1996 Year Ended December 31, 1995(1)
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Sold 608,512 $ 8,238,395 1,154,810 $ 14,750,208
Dividends and distributions reinvested 345,323 4,686,643 1,346,436 17,504,698
Redeemed (1,333,234) (18,046,154) (3,900,352) (50,257,153)
---------- ------------ ---------- ------------
Net decrease (379,399) $ (5,121,116) (1,399,106) $(18,002,247)
========== ============ ========== ============
- ------------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 237,343 $ 3,199,740 93,459 $ 1,262,882
Dividends and distributions reinvested 3,687 49,725 4,293 55,836
Redeemed (15,251) (205,890) (596) (8,006)
---------- ------------ ---------- ------------
Net increase 225,779 $ 3,043,575 97,156 $ 1,310,712
========== ============ ========== ============
- ------------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 299,414 $ 4,049,245 556,244 $ 7,139,931
Dividends and distributions reinvested 21,094 284,991 74,748 969,689
Redeemed (117,327) (1,579,776) (245,902) (3,054,869)
---------- ------------ ---------- ------------
Net increase 203,181 $ 2,754,460 385,090 $ 5,054,751
========== ============ ========== ============
</TABLE>
1. For the year ended December 31, 1995 for Class A and Class C shares and for
the period from August 29, 1995 (inception of offering) to December 31, 1995 for
Class B shares.
================================================================================
3. Unrealized Gains and
Losses on Investments
At June 30, 1996, net unrealized appreciation on investments and options written
of $46,725,852 was composed of gross appreciation of $50,624,578, and gross
depreciation of $3,538,726.
20 Oppenheimer Asset Allocation Fund
<PAGE>
================================================================================
4. Management Fees
And Other Transactions
With Affiliates
Management fees paid to the Manager are in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.75% on the first
$200 million of average annual net assets, 0.72% on the next $200 million with a
reduction of 0.03% on each $200 million thereafter, to 0.60% on net assets in
excess of $800 million. The Manager has agreed to reimburse the Fund if
aggregate expenses (with specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
For the six months ended June 30, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $203,848, of which $70,356 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $112,592 and $39,603, of which $2,318 and $1,264,
respectively, was paid to an affiliated broker/dealer. During the six months
ended June 30, 1996, OFDI received contingent deferred sales charges of $2,539
upon redemption of Class C shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are allocated
ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% of the average annual net
assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended June 30, 1996, OFDI paid $23,166 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
The Fund has adopted a compensation type Distribution and Service Plan for
Class B shares to compensate OFDI for its services and costs in distributing
Class B shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class B shares that are
outstanding for 6 years or less. OFDI also receives a service fee of 0.25% per
year to compensate dealers for providing personal services for accounts that
hold Class B shares. Both fees are computed on the average annual net assets of
Class B shares, determined as of the close of each regular business day. If the
Plan is terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain expenses
it incurred before the Plan was terminated. During the six months ended June 30,
1996, OFDI retained $13,685 as compensation for Class B sales commissions and
service fee advances, as well as financing costs. As of June 30, 1996, OFDI had
incurred unreimbursed expenses of $172,691 for Class B.
The Fund has adopted a reimbursement type Distribution and Service Plan for
Class C shares to reimburse OFDI for its services and costs in distributing
Class C shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class C shares. OFDI also
receives a service fee of 0.25% per year to reimburse dealers for providing
personal services for accounts that hold Class C shares. Both fees are computed
on the average annual net assets of Class C shares, determined as of the close
of each regular business day. If the Plan is terminated by the Fund, the Board
of Trustees may allow the Fund to continue payments of the asset-based sales
charge to OFDI for certain expenses it incurred before the Plan was terminated.
During the six months ended June 30, 1996, OFDI paid $4,222 to an affiliated
broker/dealer as reimbursement for Class C personal service and maintenance
expenses and retained $34,386 as reimbursement for Class C sales commissions and
service fee advances, as well as financing costs. As of June 30, 1996, OFDI had
incurred unreimbursed expenses of $193,352 for Class C.
21 Oppenheimer Asset Allocation Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
5. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. The Fund also has the additional risk of not being able to enter into
a closing transaction if a liquid secondary market does not exist.
Written option activity for the six months ended June 30, 1996 was as follows:
Call Options
--------------------------
Number Amount
of Options of Premiums
- -------------------------------------------------------------------------------
Options outstanding at December 31, 1995 3,206 $ 948,975
- -------------------------------------------------------------------------------
Options written 2,473 628,603
- -------------------------------------------------------------------------------
Options closed or expired (2,738) (788,875)
- -------------------------------------------------------------------------------
Options exercised (579) (180,126)
----- ---------
Options outstanding at June 30, 1996 2,362 $ 608,577
===== =========
================================================================================
6. Illiquid and
Restricted Securities
At June 30, 1996, investments in securities included issues that are illiquid or
restricted. The securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if its valuation has not changed for a certain period of time. The Fund
intends to invest no more than 10% of its net assets (determined at the time of
purchase and reviewed from time to time) in illiquid or restricted securities.
The aggregate value of these securities subject to this limitation at June 30,
1996 was $225,406, which represents 0.08% of the Fund's net assets. Information
concerning these securities is as follows:
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Date Cost Per Unit June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gillett Holdings Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 12/23/92 $1.02 $1.05
</TABLE>
Pursuant to guidelines adopted by the Board of Trustees, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
22 Oppenheimer Asset Allocation Fund
<PAGE>
Oppenheimer Asset Allocation Fund
================================================================================
Officers and Trustees
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Richard H. Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder
Servicing Agent
OppenheimerFunds Services
================================================================================
Custodian of
Portfolio Securities
The Bank of New York
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
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.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are
not guaranteed by any bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including possible loss of the principal
amount invested.
23 Oppenheimer Asset Allocation Fund
<PAGE>
[BACK COVER]
Information
General Information
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
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1-800-852-8457
PhoneLink
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OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0240.001.0696 August 31, 1996
[Picture of Jennifer Leonard]
[Caption] Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
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For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[Oppenheimer Logo(R)]
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P.O. Box 5270
Denver, CO 80217-5270
- ----------------
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