<PAGE> 1
OPPENHEIMER FUND
ANNUAL REPORT JUNE 30, 1994
(OPPENHEIMERFUNDS(R) LOGO)
[PHOTO #1 -- SEE EDGAR APPENDIX]
"WE HAVE A RANGE OF FINANCIAL GOALS--
FROM HELPING WITH THE KIDS' COLLEGE
EXPENSES TO BUYING A VACATION HOME.
"WE NEED AN INVESTMENT THAT COULD
GIVE US THE KIND OF GROWTH ONLY THE
STOCK MARKET CAN PROVIDE.
"OUR FINANCIAL ADVISOR RECOMMENDED
THIS FUND BECAUSE, OVER TIME, IT'S
GIVEN US THE KIND OF INVESTMENT GROWTH
WE NEED."
<PAGE> 2
FUND FACTS
IN THIS REPORT:
ANSWERS TO THREE QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
* DID THE FEDERAL RESERVE'S MOVES TO RAISE SHORT-TERM INTEREST RATES AFFECT THE
FUND'S PERFORMANCE OR INVESTMENT STRATEGY?
* WHAT'S BEING DONE TO CONTROL RISK AND PRESERVE VALUE IN TODAY'S UNCERTAIN
MARKETS?
* WHERE DO YOU EXPECT TO FIND THE MOST ATTRACTIVE INVESTMENT OPPORTUNITIES IN
THE MONTHS AHEAD?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER FUND
- ------------------------------------------------------------------------------
1 The Fund's primary objective is to seek capital appreciation.
Its secondary objective is to seek income consistent with
growth.
- ------------------------------------------------------------------------------
2 Total return at net asset value for Class A shares was 5.84%
for the 12-month period ended June 30, 1994. For Class C
shares, total return at net asset value was -1.24% since
inception on December 1, 1993.(1)
- ------------------------------------------------------------------------------
3 Average annual total returns for Class A shares for the 1-,
5-, and 10-year periods ended June 30, 1994 were -0.24%,
8.28%, and 10.11%, respectively. The total return for Class C
shares from inception on December 1, 1993 to June 30, 1994
was -1.78%.(2)
- ------------------------------------------------------------------------------
4 The Fund's top five stock holdings on June 30, 1994 were:(3)
INTEL CORP. The premier producer of semiconductor chips for
the computer industry.
U.S. HEALTHCARE, INC. An established East Coast health
maintenance organization (HMO).
BURLINGTON NORTHERN, INC. Major railroad benefiting from cost
reductions.
BAYER AG, ADR. One of the world's largest chemical companies
which has successfully diversified into higher valued
products such as pharmaceuticals.
XEROX CORP. The leading manufacturer, lessor, and servicer of
copiers and other office machines.
- ------------------------------------------------------------------------------
5 Oppenheimer Fund invests largely in common stocks, yet has
the flexibility to take advantage of the opportunities
offered by other types of securities, including preferred
stocks and convertibles.
- ------------------------------------------------------------------------------
6 "Because we use multiple investment styles in managing the
Fund, this portfolio is widely diversified. Over time, such
diversification may hold volatility to below-market levels."
Portfolio Manager Richard Rubinstein, June 30, 1994
(1) Based on the change in net asset value per share from 6/30/93 and 12/1/93
to 6/30/94, without deducting any sales charges.
(2) Average annual total returns are based on a hypothetical investment in
Class A shares, after deducting the current maximum initial sales charge of
5.75% on 6/30/93, 6/30/89, and 6/30/84, respectively, held until 6/30/94. The
Fund's maximum sales charge rate for Class A shares was higher during a portion
of some of the periods shown, and actual investment results will be different
as a result of the change. Total return for Class C shares was based on a
hypothetical investment held for that period, after deducting the 1% contingent
deferred sales charge.
(3) The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment return and
principal value on an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
2 Oppenheimer Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
ABOVE-AVERAGE TOTAL RETURN
Total return for the 1-year period ended
June 30, 1994
- ----------------------------------------
Oppenheimer Fund A 5.84%
(at NAV)(4)
- ----------------------------------------
S&P 500 Index(5) 1.40%
- ----------------------------------------
Lipper Growth 0.97%
Funds Average(6)
It is a pleasure to report that Oppenheimer Fund met its objectives during the
year ended June 30, 1994. While the Fund's broad diversification--by investment
style as well as by company and geography--is always important, its benefits
came to the fore in the first six months of 1994. As the Federal Reserve raised
short-term interest rates four times between early February and mid-May as a
preemptive strike against inflation, the U.S. bond market dropped and the stock
market followed. Thanks to the built-in "risk controls" provided by
diversification, your Fund was less affected by rising interest rates than many
other funds.
During the period, your managers took advantage of the
values to be found in global markets to add to the Fund's international
holdings. Specifically, positions in Hong Kong were increased, while
selectively adding stocks of companies positioned to benefit from strengthening
European economies.7 Your managers also broadened the Fund's holdings in the
financial services sector, where stock prices appear attractive compared to
many companies' earnings prospects.
The broad market correction that followed the Fed's moves to
raise interest rates also created opportunities to add to the growth-stock
portion of the portfolio at attractive prices. Investments were made in H&R
Block, the parent of the profitable and fast-growing CompuServe network;
Electronic Arts, a high-potential multimedia software company; Mylan, the
dominant player in generic drugs; and Pyxis, the leader in automated medication
dispensing. While these companies differ in size and sector, they have one
quality in common: the potential to grow.
Looking ahead, your managers believe the Fund is well
positioned to provide attractive returns. Over the past year, we have seen
slower-than-average economic recovery, accompanied by a higher-than-average
profit recovery. While this underlying earnings strength has been overshadowed
recently by rising interest rates, as rates stabilize, earnings should once
again come to the fore, and the stock market should resume its rise. The
market's rise is likely to be more gradual than we have seen in the past so, in
the current environment, careful stock selection will be the key to superior
performance.
Fortunately, the ability to identify companies with
above-average prospects is a longstanding Oppenheimer Fund strength, and we are
confident that this ability, combined with the portfolio's broad
diversification, will continue to provide attractive long-term returns. We
appreciate the trust you have placed in Oppenheimer Fund, and we look forward
to helping you meet your investment goals in the future.
/s/ DONALD W. SPIRO
- -------------------
Donald W. Spiro
President, Oppenheimer Fund
July 22, 1994
(4) See footnote 1, page 2.
(5) The Standard & Poor's 500 Index is an unmanaged index of common stocks that
is widely recognized as an indicator of overall market performance. The S&P 500
Index includes dividend reinvestments but does not take capital gains
distributions into consideration.
(6) Source of data: Lipper Analytical Services. The Lipper total return average
for the 1-year period was for 422 growth funds. The average is shown for
comparative purposes only. Oppenheimer Fund is characterized by Lipper as a
growth fund. Lipper performance does not take sales charges into consideration.
(7) See footnote 3, page 2.
3 Oppenheimer Fund
<PAGE> 4
STATEMENT OF INVESTMENTS JUNE 30, 1994
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
==================================================================================================================================
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--10.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with The First Boston Corp., 4.135%,
dated 6/30/94, to be repurchased at $25,402,910 on 7/1/94,
collateralized by U.S. Treasury Nts., 4%, 1/31/96, with a value
of $25,937,805 (Cost $25,400,000) $25,400,000 $25,400,000
==================================================================================================================================
CORPORATE BONDS AND NOTES--0.6%
- ----------------------------------------------------------------------------------------------------------------------------------
Mediq, Inc., 7.50%, Exch. Sub. Debs., 7/15/03 (Cost $1,719,580) 1,850,000 1,498,500
SHARES
==================================================================================================================================
PREFERRED STOCKS--1.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Alumax, Inc., $4.00 Cv., Series A 7,333 843,295
-------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., $1.28 Depositary Shares 45,000 618,750
-------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A 14,666 988,112
-------------------------------------------------------------------------------------------------
Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C 36,300 1,642,575
-------------------------------------------------------------------------------------------------
Total Preferred Stocks (Cost $3,658,370) 4,092,732
==================================================================================================================================
COMMON STOCKS--86.9%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--7.5%
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.7% biosys(1) 40,000 250,000
-------------------------------------------------------------------------------------------------
Great Lakes Chemical Corp. 6,200 335,575
-------------------------------------------------------------------------------------------------
IMC Fertilizer Group, Inc.(1) 31,000 1,073,375
-------------------------------------------------------------------------------------------------
Praxair, Inc. 62,500 1,218,750
-------------------------------------------------------------------------------------------------
Sybron Chemicals, Inc.(1) 47,000 1,128,000
-----------
4,005,700
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS: DIVERSIFIED--2.3% ARCO Chemical Co. 38,800 1,760,550
-------------------------------------------------------------------------------------------------
Bayer AG, ADR 17,000 3,679,981
-----------
5,440,531
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS: SPECIALTY--0.3% Goldschmidt (T.H.) AG 1,875 824,721
- ----------------------------------------------------------------------------------------------------------------------------------
METALS: MISCELLANEOUS--1.0% Brush Wellman, Inc. 151,400 2,403,475
- ----------------------------------------------------------------------------------------------------------------------------------
PAPER AND FOREST Louisiana-Pacific Corp. 31,300 954,650
PRODUCTS--0.8% -------------------------------------------------------------------------------------------------
Macmillan Bloedel, Ltd. 68,200 861,025
-----------
1,815,675
- ----------------------------------------------------------------------------------------------------------------------------------
STEEL--1.4% Allegheny Ludlum Corp. 40,000 740,000
-------------------------------------------------------------------------------------------------
Inland Steel Industries, Inc.(1) 72,000 2,511,000
-----------
3,251,000
</TABLE>
4 Oppenheimer Fund
<PAGE> 5
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSUMER CYCLICALS--16.3%
- -------------------------------------------------------------------------------------------------------------------------
AUTOMOBILES--0.5% Fiat SpA(1) 320,000 $1,285,618
- -------------------------------------------------------------------------------------------------------------------------
BROADCAST MEDIA--1.6% Comcast Corp., Cl. A Special 110,150 1,982,700
----------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored ADR(2)(3) 17,000 862,750
----------------------------------------------------------------------------------------
SFX Broadcasting, Inc., Cl. A(1) 77,000 1,058,750
-----------
3,904,200
- -------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT--2.2% Disney (Walt) Co.(3) 31,500 1,311,188
----------------------------------------------------------------------------------------
King World Productions, Inc.(1)(3) 56,500 2,252,938
----------------------------------------------------------------------------------------
MGM Grand, Inc.(1) 35,000 818,125
----------------------------------------------------------------------------------------
WMS Industries, Inc.(1) 50,700 963,300
-----------
5,345,551
- -------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD FURNISHINGS AND Chromcraft Revington, Inc.(1) 50,000 962,500
APPLIANCES--0.4%
- -------------------------------------------------------------------------------------------------------------------------
LEISURE TIME--1.1% Caesar's World, Inc.(1) 38,600 1,399,250
----------------------------------------------------------------------------------------
Eastman Kodak Co. 23,200 1,116,500
-----------
2,515,750
- -------------------------------------------------------------------------------------------------------------------------
PUBLISHING--1.8% Bowne & Co., Inc. 35,000 726,250
----------------------------------------------------------------------------------------
Time Warner, Inc.(3) 53,100 1,865,138
----------------------------------------------------------------------------------------
Wolters Kluwer NV 27,450 1,622,423
-----------
4,213,811
- -------------------------------------------------------------------------------------------------------------------------
RESTAURANTS--0.5% Quantum Restaurant Group, Inc.(1) 137,500 1,151,563
- -------------------------------------------------------------------------------------------------------------------------
RETAIL STORES: DEPARTMENT Dillard Department Stores, Inc., Cl. A 26,300 812,013
STORES--0.3%
- -------------------------------------------------------------------------------------------------------------------------
RETAIL STORES: GENERAL Price/Costco, Inc.(1) 65,000 970,938
MERCHANDISE CHAINS--0.7% ----------------------------------------------------------------------------------------
Waban, Inc.(1) 44,000 731,500
-----------
1,702,438
- -------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--2.7% Blockbuster Entertainment Corp.(3) 40,000 1,035,000
----------------------------------------------------------------------------------------
CML Group, Inc. 76,400 897,700
----------------------------------------------------------------------------------------
CompUSA, Inc.(1) 66,000 585,750
----------------------------------------------------------------------------------------
Inacom Corp.(1) 80,800 656,500
----------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(1) 42,000 1,375,500
----------------------------------------------------------------------------------------
Venture Stores, Inc. 90,100 1,779,475
-----------
6,329,925
- -------------------------------------------------------------------------------------------------------------------------
SHOES--1.0% Baker (J.), Inc. 127,800 2,476,125
- -------------------------------------------------------------------------------------------------------------------------
TEXTILES: APPAREL Authentic Fitness Corp.(1) 90,000 1,260,000
MANUFACTURERS--1.4% ----------------------------------------------------------------------------------------
Cone Mills Corp.(1) 1,200 15,450
----------------------------------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A(1) 31,500 822,938
----------------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A(1) 44,000 1,292,500
-----------
3,390,888
</TABLE>
5 Oppenheimer Fund
<PAGE> 6
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOYS--2.1% Mattel, Inc. 134,500 $ 3,412,938
-----------------------------------------------------------------------------------------------
Nintendo Co. 14,000 1,013,363
-----------------------------------------------------------------------------------------------
SLM International, Inc.(1) 51,100 562,100
-----------
4,988,401
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--17.9%
- --------------------------------------------------------------------------------------------------------------------------------
BEVERAGES: ALCOHOLIC--0.5% Guinness PLC 182,000 1,227,608
- --------------------------------------------------------------------------------------------------------------------------------
BEVERAGES: SOFT DRINKS--0.7% Whitman Corp. 104,300 1,616,650
- --------------------------------------------------------------------------------------------------------------------------------
COSMETICS--0.7% Avon Products, Inc.(3) 26,200 1,542,525
- --------------------------------------------------------------------------------------------------------------------------------
DRUGS--3.3% Agouron Pharmaceuticals, Inc.(1) 24,500 275,625
-----------------------------------------------------------------------------------------------
Astra AB Free, Series A 37,250 751,352
-----------------------------------------------------------------------------------------------
Ciba-Geigy AG 2,025 1,194,174
-----------------------------------------------------------------------------------------------
Lilly (Eli) & Co. 24,000 1,365,000
-----------------------------------------------------------------------------------------------
Medeva PLC 205,000 424,000
-----------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 52,800 1,122,000
-----------------------------------------------------------------------------------------------
Nature's Bounty, Inc.(1) 95,000 760,000
-----------------------------------------------------------------------------------------------
Sandoz AG 1,500 778,066
-----------------------------------------------------------------------------------------------
Upjohn Co. 36,700 1,068,888
-----------
7,739,105
- --------------------------------------------------------------------------------------------------------------------------------
FOOD PROCESSING--2.5% CP Pokphand Co. 1,855,000 503,994
-----------------------------------------------------------------------------------------------
Chiquita Brands International, Inc. 1,039 12,988
-----------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 81,000 3,399,383
-----------------------------------------------------------------------------------------------
Sanfilippo (John B.) & Son, Inc. 90,000 888,750
-----------------------------------------------------------------------------------------------
Sara Lee Corp. 56,100 1,192,125
-----------
5,997,240
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE: DIVERSIFIED--2.3% Abbott Laboratories 30,700 890,300
-----------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 48,000 2,574,000
-----------------------------------------------------------------------------------------------
Carter-Wallace, Inc. 37,000 689,125
-----------------------------------------------------------------------------------------------
Schering AG 2,050 1,227,593
-----------
5,381,018
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE: MISCELLANEOUS--4.9%
- --------------------------------------------------------------------------------------------------------------------------------
Amgen, Inc.(1)(3) 42,000 1,800,750
-----------------------------------------------------------------------------------------------
Chiron Corp.(1) 12,300 673,425
-----------------------------------------------------------------------------------------------
FHP International Corp.(1) 90,000 2,160,000
-----------------------------------------------------------------------------------------------
Genzyme Corp.(1) 34,000 888,250
-----------------------------------------------------------------------------------------------
Manor Care, Inc. 56,370 1,416,296
-----------------------------------------------------------------------------------------------
Protein Design Labs, Inc.(1) 19,000 346,750
-----------------------------------------------------------------------------------------------
U.S. Healthcare, Inc.(3) 116,700 4,317,900
-----------
11,603,371
</TABLE>
6 Oppenheimer Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HOSPITAL MANAGEMENT--0.5% Medical Care America, Inc.(1) 46,300 $1,255,888
- --------------------------------------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS--1.3% Medtronic, Inc.(3) 14,000 1,121,750
-----------------------------------------------------------------------------------------------
Mitek Surgical Products, Inc.(1) 60,000 1,050,000
-----------------------------------------------------------------------------------------------
Nellcor, Inc.(1)(3) 38,000 1,016,500
-----------
3,188,250
- --------------------------------------------------------------------------------------------------------------------------------
TOBACCO--1.2% Philip Morris Cos., Inc.(3) 55,100 2,837,650
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY--4.5%
- --------------------------------------------------------------------------------------------------------------------------------
COAL--0.5% Ashland Coal, Inc. 41,200 1,102,100
- --------------------------------------------------------------------------------------------------------------------------------
OIL AND GAS DRILLING--0.4% Santa Fe Energy Resources, Inc. 89,700 840,938
- --------------------------------------------------------------------------------------------------------------------------------
OIL: EXPLORATION AND Burlington Resources, Inc. 45,700 1,890,838
PRODUCTION--0.8%
- --------------------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED DOMESTIC--1.1% Unocal Corp. 88,000 2,519,000
- --------------------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED Royal Dutch Petroleum Co. 10,000 1,046,250
INTERNATIONAL--1.4% -----------------------------------------------------------------------------------------------
Saga Petroleum AS, Cl. B 82,000 950,548
-----------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 45,213 1,299,874
-----------
3,296,672
- --------------------------------------------------------------------------------------------------------------------------------
OIL WELL SERVICES AND Schlumberger, Ltd. 14,000 827,750
EQUIPMENT--0.3%
FINANCIAL--7.7%
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: American Express Co. 42,000 1,081,500
MISCELLANEOUS--1.6% -----------------------------------------------------------------------------------------------
H & R Block Incorporated 20,900 820,325
-----------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.(3) 36,400 1,274,000
-----------------------------------------------------------------------------------------------
Peregrine Investment Holdings, Ltd.(1) 400,000 657,243
-----------
3,833,068
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE: LIFE--0.4% Bankers Life Holding Corp. 50,800 1,022,350
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE: MULTI-LINE--1.0% American International Group, Inc. 13,000 1,126,125
-----------------------------------------------------------------------------------------------
American Re Corp.(1) 42,000 1,296,750
-----------
2,422,875
- --------------------------------------------------------------------------------------------------------------------------------
MAJOR BANKS: OTHER--1.1% Deutsche Bank AG, ADR 6,000 2,578,784
- --------------------------------------------------------------------------------------------------------------------------------
MAJOR BANKS: REGIONAL--1.3% Banc One Corp. 23,900 818,575
-----------------------------------------------------------------------------------------------
NationsBank Corp. 46,100 2,368,388
-----------
3,186,963
</TABLE>
7 Oppenheimer Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY CENTER BANKS--1.4% Bankers Trust New York Corp. 28,100 $ 1,872,163
-----------------------------------------------------------------------------------------------
Chemical Banking Corp. 37,000 1,424,500
-----------
3,296,663
- --------------------------------------------------------------------------------------------------------------------------------
SAVINGS AND LOANS: Golden West Financial Corp.(3) 53,000 2,047,125
HOLDING COS.--0.9%
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--13.9%
- --------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS GROUP--1.3% Masco Corp. 28,000 770,000
-----------------------------------------------------------------------------------------------
Owens-Corning Fiberglass Corp.(1) 72,600 2,259,675
-----------
3,029,675
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES--0.4% Sylvan Learning Sys., Inc.(1) 55,000 866,250
- --------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES--1.8% Jardine Matheson Holdings, Ltd. 100,000 769,803
-----------------------------------------------------------------------------------------------
Tenneco, Inc. 58,800 2,726,850
-----------------------------------------------------------------------------------------------
Wharf Holdings(1) 233,000 859,139
-----------
4,355,792
- --------------------------------------------------------------------------------------------------------------------------------
CONTAINERS: Interpool, Inc.(1) 31,800 365,700
METAL AND GLASS--0.2%
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.1% C-Cube Microsystems, Inc.(1) 35,000 551,250
-----------------------------------------------------------------------------------------------
General Electric Co. 44,000 2,051,500
-----------
2,602,750
- --------------------------------------------------------------------------------------------------------------------------------
ENGINEERING AND Empresas ICA Sociedad Controladora S.A. de C.V. 35,000 840,000
CONSTRUCTION--0.8% -----------------------------------------------------------------------------------------------
Huarte SA 89,650 1,158,086
-----------
1,998,086
- --------------------------------------------------------------------------------------------------------------------------------
HEAVY DUTY TRUCKS Spartan Motors, Inc.(3) 54,750 698,063
AND PARTS--0.3%
- --------------------------------------------------------------------------------------------------------------------------------
MACHINERY TOOLS--0.5% FANUC Ltd. 22,500 1,081,184
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING: DIVERSIFIED Mannesmann AG 9,775 2,478,380
-----------------------------------------------------------------------------------------------
INDUSTRIALS--2.1% Olin Corp. 20,000 1,077,500
-----------------------------------------------------------------------------------------------
Siemens AG, ADR 19,000 1,542,494
-----------
5,098,374
- --------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL: WMX Technologies, Inc. 50,000 1,325,000
SOLID WASTE--0.6%
- --------------------------------------------------------------------------------------------------------------------------------
RAILROADS--2.1% Burlington Northern, Inc.(3) 70,400 3,757,600
-----------------------------------------------------------------------------------------------
Chicago & North Western Holdings Corp.(1) 50,000 1,156,250
-----------
4,913,850
</TABLE>
8 Oppenheimer Fund
<PAGE> 9
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORTATION: DS AF 1912 B 100 $ 1,976,118
MISCELLANEOUS--2.4% -----------------------------------------------------------------------------------------------
OMI Corp.(1) 220,500 1,323,000
-----------------------------------------------------------------------------------------------
Stolt Tankers & Terminals Holdings SA 134,700 2,298,319
-----------
5,597,437
- --------------------------------------------------------------------------------------------------------------------------------
TRUCKERS--0.3% Roadway Services, Inc. 12,100 762,300
- --------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--15.3%
- --------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.3% General Dynamics Corp. 44,800 1,831,200
-----------------------------------------------------------------------------------------------
McDonnell Douglas Corp.(3) 11,000 1,287,000
-----------
3,118,200
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE BMC Software, Inc.(1) 25,400 1,111,250
AND SERVICES--5.0% -----------------------------------------------------------------------------------------------
Computer Associates International, Inc.(3) 39,700 1,588,000
-----------------------------------------------------------------------------------------------
Electronic Arts, Inc.(1) 58,500 819,000
-----------------------------------------------------------------------------------------------
Lotus Development Corp.(1)(3) 24,400 896,700
-----------------------------------------------------------------------------------------------
Marcam Corp.(1) 71,600 805,500
-----------------------------------------------------------------------------------------------
Microsoft Corp.(1)(3) 29,400 1,514,100
-----------------------------------------------------------------------------------------------
Novell, Inc.(1) 83,000 1,390,250
-----------------------------------------------------------------------------------------------
Pyxis Corp.(1) 57,600 1,094,400
-----------------------------------------------------------------------------------------------
Sap AG Preference 1,000 2,007,606
-----------------------------------------------------------------------------------------------
Sierra On-Line, Inc.(1) 33,000 544,500
-----------
11,771,306
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SYSTEMS--1.6% Cabletron Systems, Inc.(1) 5,000 483,125
-----------------------------------------------------------------------------------------------
Radius, Inc.(1) 87,000 424,125
-----------------------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 35,900 740,438
-----------------------------------------------------------------------------------------------
Synoptics Communications, Inc.(1) 71,600 975,550
-----------------------------------------------------------------------------------------------
Tandem Computers, Inc.(1) 106,700 1,200,375
-----------
3,823,613
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS: Hewlett-Packard Co.(3) 29,000 2,185,875
INSTRUMENTATION--0.9%
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS: Intel Corp. 74,700 4,369,950
SEMICONDUCTORS--1.8%
- --------------------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT Xerox Corp.(3) 37,000 3,616,750
AND SUPPLIES--1.5%
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--3.2% Airtouch Communications, Inc.(1) 45,500 1,074,938
-----------------------------------------------------------------------------------------------
American Telephone & Telegraph Co. 24,000 1,305,000
-----------------------------------------------------------------------------------------------
MCI Communications Corp. 108,000 2,389,500
-----------------------------------------------------------------------------------------------
Nextel Communications, Inc., Cl. A(1)(3) 25,400 768,350
-----------------------------------------------------------------------------------------------
Rogers Cantel Mobile Communications, Inc., Cl. B, Sub.(1) 86,100 2,087,925
-----------
7,625,713
</TABLE>
9 Oppenheimer Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITIES--3.8%
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRIC COMPANIES--1.0% Korea Electric Power Co.(1) 30,000 $ 998,728
-----------------------------------------------------------------------------------------------
Verbund Oest Electriz 25,200 1,439,274
-----------
2,438,002
- --------------------------------------------------------------------------------------------------------------------------------
NATURAL GAS--0.5% Hong Kong & China Gas 619,200 1,185,646
- --------------------------------------------------------------------------------------------------------------------------------
TELEPHONE--2.3% BCE, Inc. 34,000 1,100,750
-----------------------------------------------------------------------------------------------
Pacific Telesis Group 33,000 1,018,875
-----------------------------------------------------------------------------------------------
US West Communications, Inc. 78,900 3,303,938
-----------
5,423,563
-----------
Total Common Stocks (Cost $169,183,524) 206,327,395
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $199,961,474) 99.9% 237,318,627
- --------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES .1 256,490
-------- ------------
NET ASSETS 100.0% $237,575,117
======== ============
(1) Non-income producing security.
(2) Restricted security--See Note 6 of Notes to Financial Statements.
(3) Securities with an aggregate market value of $11,581,676 are held in escrow to cover outstanding call options, as follows:
</TABLE>
<TABLE>
<CAPTION>
SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Amgen, Inc. 10,000 10/94 $50.00 $ 28,449 $ 11,250
- ------------------------------------------------------------------------------------------------------------------------------
Avon Products, Inc. 11,400 10/94 60.00 48,106 33,488
- ------------------------------------------------------------------------------------------------------------------------------
Blockbuster Entertainment Corp. 40,000 9/94 25.00 111,296 87,500
- ------------------------------------------------------------------------------------------------------------------------------
Burlington Northern, Inc. 11,600 7/94 65.00 27,201 2,175
- ------------------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 8,000 10/94 45.00 19,759 16,000
- ------------------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 6,300 10/94 40.00 30,522 23,625
- ------------------------------------------------------------------------------------------------------------------------------
Golden West Financial Corp. 7,500 11/94 40.00 22,274 15,938
- ------------------------------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored ADR 8,500 10/94 55.00 45,431 24,438
- ------------------------------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored ADR 8,500 10/94 60.00 28,432 12,750
- ------------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 6,000 11/94 95.00 14,070 5,250
- ------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. 11,200 8/94 40.00 22,063 30,800
- ------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. 11,200 8/94 45.00 22,063 15,400
- ------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. 11,200 11/94 45.00 38,863 30,800
- ------------------------------------------------------------------------------------------------------------------------------
Lotus Development Corp. 7,600 10/94 60.00 60,570 2,375
- ------------------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 2,000 8/94 120.00 13,941 7,000
- ------------------------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 2,800 8/94 90.00 11,116 1,750
- ------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 9,000 7/94 47.50 16,604 562
- ------------------------------------------------------------------------------------------------------------------------------
Microsoft Corp. 5,600 10/94 47.50 9,016 36,400
- ------------------------------------------------------------------------------------------------------------------------------
Nellcor, Inc. 7,000 7/94 30.00 15,539 2,187
- ------------------------------------------------------------------------------------------------------------------------------
Nellcor, Inc. 7,600 10/94 30.00 13,254 7,125
- ------------------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc. 5,000 11/94 45.00 6,725 3,125
- ------------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 10,000 12/94 60.00 20,880 8,750
- ------------------------------------------------------------------------------------------------------------------------------
Spartan Motors, Inc. 22,900 12/94 22.50 39,387 7,155
- ------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 12,000 9/94 45.00 17,639 2,250
- ------------------------------------------------------------------------------------------------------------------------------
US Healthcare, Inc. 17,700 7/94 43.38 79,293 6,638
- ------------------------------------------------------------------------------------------------------------------------------
US Healthcare, Inc. 17,700 7/94 46.63 52,744 2,213
- ------------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 9,000 7/94 95.00 33,479 38,250
-------- --------
$848,716 $435,194
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Fund
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1994
<TABLE>
<S> <C> <C>
=====================================================================================================================
ASSETS Investments, at value (cost $199,961,474)--see accompanying statement $237,318,627
-----------------------------------------------------------------------------------------------
Cash 73,973
-----------------------------------------------------------------------------------------------
Receivables
Investments sold and options written 4,364,898
Shares of beneficial interest sold 593,002
Dividends and interest 536,447
-----------------------------------------------------------------------------------------------
Other 199,236
------------
Total assets 243,086,183
=====================================================================================================================
LIABILITIES Options written, at value (premiums received $848,716)--
see accompanying statement--Note 4 435,194
-----------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,675,893
Shares of beneficial interest redeemed 1,143,298
Distribution and service plan fees--Note 5 41,962
Other 214,719
------------
Total liabilities 5,511,066
=====================================================================================================================
NET ASSETS $237,575,117
============
=====================================================================================================================
COMPOSITION OF Paid-in capital $178,940,150
NET ASSETS -----------------------------------------------------------------------------------------------
Undistributed net investment income 1,028,422
-----------------------------------------------------------------------------------------------
Undistributed net realized gain from investments,
written options and foreign currency transactions 19,835,261
-----------------------------------------------------------------------------------------------
Net unrealized appreciation on investments, options written and
translation of assets and liabilities denominated in foreign currencies 37,771,284
----------
Net assets $237,575,117
============
=====================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $237,280,749 and 22,485,115 shares of beneficial interest outstanding) $10.55
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $11.19
-----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $294,368 and 28,050 shares of beneficial
interest outstanding) $10.49
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Fund
<PAGE> 12
STATEMENT OF OPERATIONS For The Year Ended June 30, 1994
<TABLE>
<S> <C> <C>
======================================================================================================================
INVESTMENT INCOME Dividends (net of withholding taxes of $158,103) $ 3,477,304
-----------------------------------------------------------------------------------------------
Interest 782,888
-----------
Total income 4,260,192
======================================================================================================================
EXPENSES Management fees--Note 5 1,715,675
-----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 381,029
-----------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 172,788
Class C--Note 5 725
-----------------------------------------------------------------------------------------------
Shareholder reports 117,821
-----------------------------------------------------------------------------------------------
Custodian fees and expenses 97,660
-----------------------------------------------------------------------------------------------
Legal and auditing fees 81,662
-----------------------------------------------------------------------------------------------
Trustees' fees and expenses 42,001
-----------------------------------------------------------------------------------------------
Other 59,812
-----------
Total expenses 2,669,173
======================================================================================================================
NET INVESTMENT
INCOME 1,591,019
======================================================================================================================
REALIZED AND Net realized gain (loss) from:
UNREALIZED GAINS Investments and options written (including premiums on options exercised) 16,772,211
(LOSS) ON Closing and expiration of option contracts written--Note 4 1,357,174
INVESTMENTS, OPTIONS Foreign currency transactions (100,491)
WRITTEN AND
FOREIGN CURRENCY
TRANSACTIONS
-----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments and options written (8,069,602)
Translation of assets and liabilities denominated in foreign currencies 334,858
Net realized and unrealized gain on investments,
options written and foreign currency transactions 10,294,150
======================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $11,885,169
-----------
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Fund
<PAGE> 13
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED
JUNE 30,
1994 1993
============================================================================================================================
<S> <C> <C>
OPERATIONS Net investment income $ 1,591,019 $ 2,226,781
------------------------------------------------------------------------------------------------
Net realized gain on investments, options written and
foreign currency transactions 18,028,894 7,786,728
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments, options written and translation of assets
and liabilities denominated in foreign currencies (7,734,744) 16,573,062
------------- ------------
Net increase in net assets resulting from operations 11,885,169 26,586,571
============================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.033 and $.104 per share, respectively) (665,882) (2,190,272)
SHAREHOLDERS Class C ($.02 per share) (2) --
------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments,
options written and foreign currency transactions:
Class A ($.4495 and $.466 per share, respectively) (9,068,819) (9,716,817)
Class C ($.4495 per share) (41) --
============================================================================================================================
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions--Note 2 18,939,597 (7,993,951)
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class C
beneficial interest transactions--Note 2 304,968 --
============================================================================================================================
NET ASSETS Total increase 21,394,990 6,685,531
------------------------------------------------------------------------------------------------
Beginning of year 216,180,127 209,494,596
------------ ------------
End of year (including undistributed net investment
income of $1,028,422 and $239,931, respectively) $237,575,117 $216,180,127
============ ============
See accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer Fund
<PAGE> 14
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED JUNE 30,
1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C>
============================================================================================
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $10.41 $9.72 $9.31 $9.06 $9.17 $8.36
- --------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .07 .11 .16 .26 .32 .21
Net realized and unrealized
gain (loss) on investments,
options written and foreign
currency transactions .55 1.15 .84 .69 .23 .82
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .62 1.26 1.00 .95 .55 1.03
- --------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.03) (.10) (.32) (.22) (.25) (.17)
Distributions from net
realized gain on investments,
options written and foreign
currency transactions (.45) (.47) (.27) (.48) (.41) (.05)
------ ------ ------ ------ ------ ------
Total dividends and
distributions to
shareholders (.48) (.57) (.59) (.70) (.66) (.22)
- --------------------------------------------------------------------------------------------
Net asset value, end
of period $10.55 $10.41 $9.72 $9.31 $9.06 $9.17
------ ------ ------ ------ ------ ------
============================================================================================
TOTAL RETURN, AT NET
ASSET VALUE(2) 5.84% 13.33% 11.22% 11.65% 6.04% 12.60%
============================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $237,281 $216,180 $209,495 $202,509 $196,076 $208,166
- --------------------------------------------------------------------------------------------
Average net assets
(in thousands) $229,976 $212,660 $221,369 $189,994 $206,259 $201,556
- --------------------------------------------------------------------------------------------
Number of shares
outstanding
at end of period
(in thousands) 22,485 20,769 21,555 21,748 21,639 22,705
- --------------------------------------------------------------------------------------------
Ratios to average
net assets:
Net investment income .69% 1.05% 1.71% 2.91% 3.36% 2.49%
Expenses 1.16% 1.10% 1.09% 1.07% 1.04% 1.07%
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 41.6% 35.6% 58.2% 105.8% 79.5% 96.6%
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS C
----------------------------------------------
PERIOD
ENDED
YEAR ENDED JUNE 30, JUNE 30,
1988 1987 1986 1985 1994
<S> <C> <C> <C> <C> <C>
==============================================================================
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $12.16 12.48 $9.69 $7.89 $11.08
- ------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .13 .06 .11 .20 .02
Net realized and unrealized
gain (loss) on investments,
options written and foreign
currency transactions (1.40) .79 2.88 1.76 (.14)
------ ------ ------ ------ ------
Total income (loss) from
investment operations (1.27) .85 2.99 1.96 (.12)
- ------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.17) (.02) (.20) (.16) (.02)
Distributions from net
realized gain on investments,
options written and foreign
currency transactions (2.36) (1.15) -- -- (.45)
------ ------ ------ ------ ------
Total dividends and
distributions to
shareholders (2.53) (1.17) (.20) (.16) (.47)
- ------------------------------------------------------------------------------
Net asset value, end
of period $8.36 $12.16 $12.48 $9.69 $10.49
------ ------ ------ ------ ------
==============================================================================
TOTAL RETURN, AT NET
ASSET VALUE(2) (12.30)% 8.44% 31.24% 25.16% (1.24)%
==============================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $213,301 $273,756 $284,604 $265,759 $294
- ------------------------------------------------------------------------------
Average net assets
(in thousands) $224,367 $261,686 $268,929 $251,603 $108
- ------------------------------------------------------------------------------
Number of shares
outstanding
at end of period
(in thousands) 25,514 22,518 22,802 27,418 28
- ------------------------------------------------------------------------------
Ratios to average
net assets:
Net investment income 1.51% .52% .89% 2.26% .05%(3)
Expenses 1.04% .99% 1.01% .98% 1.42%(3)
- ------------------------------------------------------------------------------
Portfolio turnover rate(4) 118.8% 59.1% 43.8% 86.2% 41.6%
</TABLE>
(1) For the period from December 1, 1993 (inception of offering) to June 30,
1994.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns.
(3) Annualized.
(4) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the year ended June 30, 1994 were $91,410,578 and $88,090,494.
See accompanying Notes to Financial Statements.
14 Oppenheimer Fund
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
==================================================================================================================================
1. SIGNIFICANT Oppenheimer Fund (the Fund) is registered under the Investment Company Act of 1940, as amended, as
ACCOUNTING a diversified, open-end management investment company. The Fund's investment advisor is Oppenheimer Management
POLICIES Corporation (the Manager). The Fund offers both Class A and Class C shares. Class A shares are sold with a front-
end sales charge. Class C shares may be subject to a contingent deferred sales charge. Both classes of
shares have identical rights to earnings, assets and voting privileges, except that each class has its own
distribution plan, expenses directly attributable to a particular class and exclusive voting rights with respect
to matters affecting a single class. The following is a summary of significant accounting policies consistently
followed by the Fund.
---------------------------------------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at 4:00 p.m. (New York time) on each trading day.
Listed and unlisted securities for which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or asked price or the last sale price
on the prior trading day. Long-term debt securities are valued by a portfolio pricing service approved by the
Board of Trustees. Long-term debt securities which cannot be valued by the approved portfolio pricing service are
valued by averaging the mean between the bid and asked prices obtained from two active market makers in such
securities. Short-term debt securities having a remaining maturity of 60 days or less are valued at cost (or last
determined market value) adjusted for amortization to maturity of any premium or discount. Securities for which
market quotes are not readily available are valued under procedures established by the Board of Trustees to
determine fair value in good faith. A call option is valued based upon the last sales price on the principal
exchange on which the option is traded or, in the absence of any transactions that day, the value is based upon
the last sale on the prior trading date if it is within the spread between the closing bid and asked prices. If
the last sale price is outside the spread, the closing bid or asked price closest to the last reported sale price
is used.
---------------------------------------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained in U.S. dollars. Prices of
securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange.
Amounts related to the purchase and sale of securities and investment income are translated at the rates of
exchange prevailing on the respective dates of such transactions.
The Fund generally enters into forward currency exchange contracts as a hedge, upon the
purchase or sale of a security denominated in a foreign currency. Risks may arise from the potential inability of
the counterparty to meet the terms of the contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
The effect of changes in foreign currency exchange rates on investments is separately
identified from the fluctuations arising from changes in market values of securities held and reported with all
other foreign currency gains and losses in the Fund's results of operations.
---------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to have legally segregated in the
Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as
collateral for repurchase agreements. If the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the
Fund may be delayed or limited.
</TABLE>
15 Oppenheimer Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<S> <C>
====================================================================================================================================
1. SIGNIFICANT ACCOUNTING CALL OPTIONS WRITTEN. The Fund may write covered call options. When an option is written, the
POLICIES (CONTINUED) Fund receives a premium and becomes obligated to sell the underlying security at a fixed price,
upon exercise of the option. In writing an option, the Fund bears the market risk of an unfavorable
change in the price of the security underlying the written option. Exercise of an option written by
the Fund could result in the Fund selling a security at a price different from the current market
value. All securities covering call options written are held in escrow by the custodian bank.
------------------------------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES. Income, expenses (other than those attributable
to a specific class) and gains and losses are allocated daily to each class of shares based upon
the relative proportion of net assets represented by such class. Operating expenses directly
attributable to a specific class are charged against the operations of that class.
------------------------------------------------------------------------------------------------------
FEDERAL INCOME TAXES. The Fund intends to continue to comply with provisions of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its taxable income,
including any net realized gain on investments not offset by loss carryovers, to shareholders.
Therefore, no federal income tax provision is required.
------------------------------------------------------------------------------------------------------
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. The accumulated liability for the Fund's projected benefit obligations was $70,659
at June 30, 1994. No payments have been made under the plan.
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are recorded on the
ex-dividend date.
------------------------------------------------------------------------------------------------------
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective July 1, 1993, the Fund adopted
Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies. As a result, the Fund
changed the classification of distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with income tax regulations.
Accordingly, subsequent to June 30, 1993, amounts have been reclassified to reflect a decrease in
paid-in capital of $373,921, a decrease in undistributed net investment income of $36,153, and an
increase in undistributed capital gain on investments of $410,074. During the year ended June 30,
1994, Oppenheimer Fund recorded a loss due to foreign currency transactions. As a result, in
accordance with Statement of Position 93-2, undistributed net investment income was decreased by
$100,491 and undistributed capital gain on investments was increased by the same amount. Classes A and
C were impacted by $100,438 and $53, respectively.
------------------------------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the investments are purchased or sold
(trade date) and dividend income is recorded on the ex-dividend date. Discount on securities purchased
is amortized over the life of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and unrealized appreciation and depreciation
are determined on an identified cost basis, which is the same basis used for federal income tax
purposes.
</TABLE>
16 Oppenheimer Fund
<PAGE> 17
<TABLE>
<S> <C>
=================================================================================================================================
2. SHARES OF The Fund has authorized an unlimited number of no par value shares of beneficial interest of
BENEFICIAL INTEREST each class. Transactions in shares of beneficial interest were as follows:
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30, 1994(1) YEAR ENDED JUNE 30, 1993
--------------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 3,600,642 $39,529,238 910,822 $ 9,151,109
Dividends and
distributions reinvested 816,887 8,879,570 1,103,139 10,873,362
Redeemed (2,701,648) (29,469,211) (2,799,972) (28,018,422)
---------- ----------- ---------- -----------
Net increase (decrease) 1,715,881 $18,939,597 (786,011) $(7,993,951)
---------- ----------- ---------- -----------
----------------------------------------------------------------------------------------------------
Class C:
Sold 29,766 $ 323,590 -- $ --
Dividends and distributions
reinvested -- -- -- --
Redeemed (1,716) (18,622) -- --
---------- ----------- ---------- ----------
Net increase 28,050 $ ,304,968 -- $ --
------ ----------- ---------- ----------
</TABLE>
<TABLE>
<S> <C>
(1) For the year ended June 30, 1994 for Class A shares and for the period from December 1, 1993
(inception of offering) to June 30, 1994 for Class C shares.
=================================================================================================================================
3. UNREALIZED GAINS AND At June 30, 1994, net unrealized appreciation on investments and options written of $37,770,675
LOSSES ON INVESTMENTS was composed of gross appreciation of $45,877,036, and gross depreciation of $8,106,361.
AND OPTIONS WRITTEN
=================================================================================================================================
4. CALL OPTION ACTIVITY Call option activity for the year ended June 30, 1994 was as follows:
</TABLE>
<TABLE>
<CAPTION>
NUMBER AMOUNT OF
OF OPTIONS PREMIUMS
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at June 30, 1993 4,547 $1,200,680
Options written 10,791 3,221,067
Options canceled in closing purchase transactions (4,138) (1,270,703)
Options expired prior to exercise (4,702) (1,143,228)
Options exercised (3,771) (1,159,100)
------ ----------
Options outstanding at June 30, 1994 2,727 $ 848,716
------ ---------
</TABLE>
17 Oppenheimer Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<S> <C>
====================================================================================================================================
5. MANAGEMENT FEES Management fees paid to the Manager were in accordance with the investment advisory agreement
AND OTHER TRANSACTIONS with the Fund which provides for an annual fee of .75% on the first $200 million of net
WITH AFFILIATES assets with a reduction of .03% on each $200 million thereafter to $800 million, and .60%
on net assets in excess of $800 million. The Manager has agreed to reimburse the Fund if
aggregate expenses (with specified exceptions) exceed the most stringent applicable regulatory
limit on Fund expenses.
For the year ended June 30, 1994, commissions (sales charges paid by investors)
on sales of Class A shares totaled $537,507, of which $140,880 was retained by Oppenheimer Funds
Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an
affiliated broker/dealer. During the period ended June 30, 1994, OFDI received contingent
deferred sales charges of $42 upon redemption of Class C shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered investment
companies. OSS's total costs of providing such services are allocated ratably to these
companies.
Under separate approved plans, each class may expend up to .25% of its net assets
annually to reimburse OFDI for costs incurred in connection with the personal service and
maintenance of accounts that hold shares of the Fund (prior to July 1, 1994, reimbursements
were made with respect to Class A shares sold subsequent to March 31, 1991), including amounts
paid to brokers, dealers, banks and other institutions. In addition, Class C shares are subject
to an asset-based sales charge of .75% of net assets annually, to reimburse OFDI for sales
commissions paid from its own resources at the time of sale and associated financing costs. In
the event of termination or discontinuance of the Class C plan, the Board of Trustees may allow
the Fund to continue payment of the asset-based sales charge to OFDI for distribution expenses
incurred on Class C shares sold prior to termination or discontinuance of the plan. During the
year ended June 30, 1994, OFDI paid $1,783 to an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses and retained $725 as reimbursement for Class C
sales commissions and service fee advances, as well as financing costs.
====================================================================================================================================
6. RESTRICTED SECURITIES The Fund owns securities purchased in private placement transactions, without registration
under the Securities Act of 1933 (the Act). The securities are valued under methods approved
by the Board of Trustees as reflecting fair value. The Fund intends to invest no more than 10%
of its net assets (determined at the time of purchase) in restricted and illiquid securities,
excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to
be liquid by the Board of Trustees or by the Manager under Board-approved guidelines.
</TABLE>
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT JUNE 30, 1994
<S> <C> <C> <C>
------------------------------------------------------------------------------------------------
Grupo Televisa SA,
Sponsored ADR (1) 8/20/92-8/26/92 $27.69 $50.75
(1) Transferable under Rule 144A of the Act.
</TABLE>
18 Oppenheimer Fund
<PAGE> 19
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Fund:
We have audited the accompanying statements of investments and assets
and liabilities of Oppenheimer Fund as of June 30, 1994, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period then ended and the
financial highlights for each of the years in the ten-year period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of June 30, 1994, by correspondence with the custodian and
brokers; and where confirmations were not received from brokers, we performed
other auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Fund as of June 30, 1994, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the ten-year period then ended, in conformity with generally accepted
accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
July 22, 1994
19 Oppenheimer Fund
<PAGE> 20
FEDERAL INCOME TAX INFORMATION (unaudited)
In early 1995, shareholders will receive information regarding all
dividends and distributions paid to them by the Fund during calendar year 1994.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
For Class A shares a distribution of $.4825 per share was paid on
December 28, 1993, of which $.4495 was designated as a "capital gain
distribution" for federal income tax purposes. For Class C shares a distribution
of $.4695 was paid on December 28, 1993, of which $.4495 was designated as
"capital gain distribution" for federal income tax purposes. Whether received in
stock or cash, the capital gain distribution should be treated by shareholders
as a gain from the sale of capital assets held for more than one year
(long-term capital gains).
Dividends paid by the Fund during the fiscal year ended June 30, 1994
which are not designated as capital gain distributions should be multiplied by
100% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
20 Oppenheimer Fund
<PAGE> 21
OPPENHEIMER FUND
<TABLE>
<S> <C>
====================================================================================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Richard Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
====================================================================================================================================
INVESTMENT ADVISOR Oppenheimer Management Corporation
====================================================================================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
====================================================================================================================================
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
====================================================================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
====================================================================================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
====================================================================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Fund. This report must be preceded or
accompanied by a Prospectus of Oppenheimer Fund. For material information concerning the Fund, see the
Prospectus.
</TABLE>
21 Oppenheimer Fund
<PAGE> 22
THE FAMILY OF OPPENHEIMERFUNDS
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OppenheimerFunds offers over 30 mutual funds designed to fit virtually every investment goal. Whether you're
investing for retirement, your children's education, or tax-free income, we have the mutual funds to help you
seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing that you are
investing with a respected financial institution with over 30 years of experience in helping people just
like you reach their financial goals. And you're investing with a leader in global, growth stock, and
flexible fixed income investments--with over 1.8 million shareholder accounts and more than $26 billion
under Oppenheimer's management and that of our affiliates.
As an OppenheimerFunds shareholder, you can easily exchange shares of eligible funds
of the same class by mail or by telephone for a small administrative fee.1 For more information on
OppenheimerFunds, please contact your financial advisor or call us at 1-800-525-7048 for a prospectus. You
may also write us at the address shown on the back cover. As always, please read the prospectus carefully
before you invest.
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SPECIALTY STOCK Gold & Special Minerals Fund
FUND
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STOCK FUNDS Discovery Fund Global Fund
Time Fund Oppenheimer Fund
Target Fund Value Stock Fund
Special Fund
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STOCK AND BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
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BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
ChampionHigh Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Limited-Term Government Fund(2)
Strategic Investment Grade Bond Fund
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TAX-EXEMPT FUNDS New York Tax-Exempt Fund(3) New Jersey Tax-Exempt Fund(3)
California Tax-Exempt Fund(3) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(3) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(3) Intermediate Tax-Exempt Bond Fund
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MONEY MARKET FUNDS Money Market Fund Cash Reserves
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(1) The fee is waived for PhoneLink exchanges between existing accounts. Exchange privileges are subject to
change or termination.
(2) Formerly Government Securities Fund.
(3) Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two World Trade Center, New York,
NY10048-0203.
(c) Copyright 1994 Oppenheimer Management Corporation. All rights reserved.
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22 Oppenheimer Fund
<PAGE> 23
"HOW MAY I HELP YOU?"
[PHOTO #2 -- SEE EDGAR APPENDIX]
"Just as OppenheimerFunds offers over 30 different mutual funds designed to
help meet virtually every investment need, Oppenheimer Shareholder Services
offers a variety of services to satisfy your individual needs. Whenever you
require help, we're only a toll- free phone call away.
"For personalized assistance and account information, call
our General Information number to speak with our knowledgeable Customer Service
Representatives and get the help you need.
"When you want to make account transactions, it's easy for
you to redeem shares, exchange shares, or conduct AccountLink transactions,
simply by calling our Telephone Transactions number.
"And for added convenience, OppenheimerFunds' PhoneLink,
an automated voice response system is available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. You can even make purchases, exchanges and redemptions using your
touch-tone phone. Of course, PhoneLink will always give you the option to speak
with a Customer Service Representative during the hours shown to the left.
"When you invest in OppenheimerFunds, you know you'll
receive a high level of customer service. The International Customer Service
Association knows it, too, as it awarded Oppenheimer Shareholder Services a
1993 Award of Excellence for consistently demonstrating superior customer
service.
"Whatever your needs, we're ready to assist you."
(1993 AWARD OF EXCELLENCE INTERNATIONAL CUSTOMER SERVICE ASSOCIATION LOGO)
GENERAL INFORMATION
1-800-525-7048
Talk to a Customer Service
Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and
Saturday from 10:00 a.m.
to 2:00 p.m. ET.
TELEPHONE TRANSACTIONS
1-800-852-8457
Make account transactions with a
Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
PHONELINK
1-800-533-3310
Get automated information or
make automated transactions.
24 hours a day, 7 days a week.
TELECOMMUNICATION
DEVICE FOR THE DEAF
1-800-843-4461
Service for the hearing impaired.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
OPPENHEIMERFUNDS
INFORMATION HOTLINE
1-800-835-3104
Hear timely and insightful
messages on the economy and
issues that affect your finances.
24 hours a day, 7 days a week.
RA220.0794.N
(OPPENHEIMERFUNDS(R) LOGO)
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 314
Farmingdale, NY
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<PAGE> 24
APPENDIX TO ELECTRONIC FORMAT DOCUMENT
The front cover of the report in the printed version contains a photo
(photo # 1) of two adults and child sitting on dock.
The back cover of the report in the printed version contains a photo
(photo #2) of Barbara Hennigar, Chief Executive Officer, Oppenheimer
Shareholder Services.
