Oppenheimer Fund
Semi-Annual Report December 31, 1993
(Openheimer Logo)
(Graphic image of man and boy walking in country)
"I want long-term growth from my investments.
"This Fund's focus on companies with strong potential is right for me
and my growing family."
<PAGE>
Fund Facts
In this report:
Answers to three questions you should ask your Fund's managers.
* Does the prospect of healthcare reform have any impact on the make-up of the
portfolio?
* Where were the most attractive buying opportunities found?
* Is the Fund diversifying into foreign stocks?
Five 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 in capital.
2 The Fund's total return at net asset value for Class A shares was 9.46% for
the six months ended December 31, 1993. For the one-year period ended on that
date, that figure for Class A shares was 15.32%.(1)
3 While the Fund invests largely in common stocks, its managers have the
flexibility to take advantage of opportunities in other securities, including
preferred stocks and convertible issues.
4 The Fund's top five stock holdings on December 31 were:(2)
U.S. Healthcare, Inc. An established East Coast health maintenance
organization (HMO).
Mattel, Inc. A well-known designer, manufacturer and marketer of toys.
Intel Corp. The premier producer of semiconductor chips for the computer
industry.
Xerox Corp. The leading manufacturer, lessor, and servicer of copiers and other
office machines.
Nestle SA. One of the world's leading food companies.
5 We make strategic use of several investment styles in managing the portfolio--
growth investing, value investing, yield investing, contrarian investing, and
international investing. As a result, we're positioned to deliver attractive
returns no matter what kind of stocks or investment styles are in or out of
favor at any given time."
Portfolio Manager, Richard Rubinstein, December 31, 1993
1. Based on the change in net asset value per Class A share from 6/30/93 and
12/31/92 to 12/31/93. The Fund's average annual total returns for Class A
shares, after deducting the current maximum sales charge of 5.75%, for the 1-,
5-, and 10-year periods ended 12/31/93 were 8.69%, 12.40%, and 8.23%,
respectively. Certain Class C share performance data is not yet available, as
Class C shares were first publicly offered 12/1/93. All figures assume
reinvestment of dividends and capital gains distributions. The Fund's maximum
sales charge rate was higher during a portion of the periods shown, and actual
investment results will be different as a result of that change.
2. The Fund's portfolio is subject to change.
Past performance is not indicative of future results. An investment in the Fund
will fluctuate in value so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
2 Oppenheimer Fund
<PAGE>
Report to Shareholders
Performance
In Perspective
Total return for periods
ended December 31, 1993
6 Mos. 1 Year
Oppenheimer 9.46% 15.32%
Fund A
(at NAV)(3)
S&P 500 4.95% 10.06%
Index (4)
Oppenheimer Fund continued to meet its objectives well during the six months
ended December 31, providing Class A shareholders with a total return at net
asset value of 9.46%.(3) For the year ended December 31, the Fund's total return
for Class A shares at net asset value was 15.32%(3), well ahead of the return
from the stock market in general as measured by the S&P 500 Index.(4)
During the period, the Fund benefited from the strengthening U.S. economy,
continued low inflation and interest rates, and marked improvements in corporate
earnings. In pursuing the Fund's objectives in a market where stock prices seem
somewhat stretched, however, we continued to diversify the portfolio broadly by
investment style and industry sector, an approach that historically has produced
above-average returns while reducing risk.
During the period, we realigned our healthcare holdings to reflect any impact we
expect healthcare reform might have on these companies. We sorted through the
stocks in the portfolio carefully, retaining those that, in our view, can
contribute to the Fund's performance through innovative drug-delivery systems,
important new products, or attractive dividend yields.
We also continued to invest both in promising companies that are currently out
of favor with many investors, such as Philip Morris and Eastman Kodak, and
companies in the technology sector. In addition to buying stocks of highly
visible companies like Microsoft, Novell, and Synoptics when their stock prices
weakened, we invested in several lesser-known companies that are creating
innovative software for the business marketplace.
Beyond these investments, we also found attractive opportunities in interactive
technologies, taking positions in NEXTEL and AT&T, both companies that are in
the process of creating powerful interactive communications groups.
Finally, we continued to build the Fund's international position, both to
diversify our holdings and to capitalize on the prospects for strong economic
growth offshore. While most of our holdings are in Europe, we recently took
advantage of several opportunities in the Pacific Rim.
Looking ahead, we believe that the Fund is well positioned to provide attractive
returns. Inflation and interest rate levels in the U.S. are low today and should
remain so for the foreseeable future. As a result, we expect the Fund's
performance to keep pace with improvements in the economy and corporate
earnings.
We appreciate the confidence you have placed in Oppenheimer Fund, and we look
forward to continuing to help you meet your investment goals in the future.
(Signature of Donald W. Spiro)
Donald W. Spiro
President, Oppenheimer Fund
January 21, 1994
3. See footnote 1, page 2.
4. The S&P 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.
3 Oppenheimer Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments December 31, 1993 (Unaudited)
Face Market Value
Amount See Note 1
<S> <S> <C> <C>
Repurchase Agreements--8.0%
Repurchase agreement with First Chicago Capital Markets,
3.13%, dated 12/31/93 and maturing 1/3/94, collateralized
by U.S. Treasury Bonds,3.875%, 4/30/95, with a value
of $18,872,861 (Cost $18,500,000) $18,500,000 $18,500,000
Corporate Bonds and Notes--0.5%
Mediq, Inc., 7.50% Exch. Sub. Debs., 7/15/03
(Cost $1,100,000) 1,100,000 1,057,375
Shares
Preferred Stocks--1.7%
Alumax, Inc., $4.00 Cv., Series A 7,333 722,301
Chiquita Brands International, Inc., $1.28
Depositary Shares(1) 45,000 613,125
Cyprus Amax Minerals Co., $4.00 Cv., Series A 14,667 953,355
Dairy Farm International Holdings Ltd., $65.00 Cv.(2) 40 61,600
Delta Airlines, Inc., $3.50 Cv. Depositary Shares,
Series C(1) 27,500 1,471,250
Total Preferred Stocks (Cost $3,248,300) 3,821,631
Common Stocks--90.8%
Basic Materials--5.0%
Chemicals--1.1% biosys(1) 40,000 230,000
Hauser Chemical Research, Inc.(1) 56,000 448,000
Praxair, Inc. 55,500 922,687
Sybron Chemical Industries, Inc.(1) 47,000 1,133,875
2,734,562
Chemicals: Diversified--1.6% ARCO Chemical Co. 28,200 1,219,650
Bayer AG, ADR 11,300 2,384,300
3,603,950
Chemicals: Specialty--0.3% Goldschmidt (T.H.) AG 1,875 750,418
Gold--0.1% Arimetco International, Inc.(1) 219,100 306,153
Metal: Miscellaneous--0.8% Brush Wellman, Inc. 133,000 1,895,250
Steel--1.1% Inland Steel Industries, Inc.(1) 72,000 2,385,000
Consumer Cyclicals--16.3%
Auto Parts: After Market--0.3% Hi-Lo Automotive, Inc.(1) 66,000 651,750
Broadcast Media--2.2% Comcast Corp., Cl. A Special 84,500 3,042,000
Grupo Televisa SA, ADS(2) 28,800 2,016,000
5,058,000
Entertainment--2.4% Disney (Walt) Co.(3) 31,500 1,342,687
King World Productions, Inc.(1)(3) 46,700 1,792,112
Paramount Communications, Inc.(3) 15,000 1,160,625
WMS Industries, Inc.(1)(3) 40,000 1,150,000
5,445,424
4 Oppenheimer Fund
<PAGE>
Market Value
Shares See Note 1
Leisure Time--1.3% Caesar's World, Inc.(1) 25,200 $1,345,050
Eastman Kodak Co.(1) 17,500 980,000
International Game Technology 20,000 590,000
2,915,050
Publishing--2.0% Time Warner, Inc. 62,000 2,743,500
Wolters Kluwer NV 27,450 1,734,106
4,477,606
Restaurants--0.6% Quantum Restaurant Group, Inc. 114,500 1,402,625
Retail: Specialty--2.7% Blockbuster Entertainment Corp.(3) 65,000 1,990,625
CML Group, Inc. 26,000 614,250
Inacom Corp.(1) 75,000 1,012,500
Service Merchandise Co.(1) 50,200 502,000
Venture Stores, Inc. 83,600 1,954,150
6,073,525
Retail Stores: General Centros Comerciales Pryca 20,000 264,474
Merchandise Chains--0.4% Costco Wholesale Corp. 37,000 712,250
976,724
Shoes--1.1% Baker (J.), Inc. 141,800 2,481,500
Textiles: Apparel Authentic Fitness Corp.(1) 40,000 1,125,000
Manufacturers--0.9% Warnaco Group, Inc. (The), Cl. A(1) 33,500 1,017,562
2,142,562
Toys--2.4% Mattel, Inc. 170,000 4,696,250
Nintendo Co. 14,000 900,676
5,596,926
Consumer Non-Cyclicals--18.3%
Beverages: Alcoholic--0.6% Guinness PLC 182,000 1,285,760
Beverages: Soft Drinks--0.6% Whitman Corp. 83,900 1,363,375
Cosmetics--0.8% Avon Products, Inc.(3) 38,100 1,852,612
Drugs--2.4% Agouron Pharmaceuticals, Inc.(1) 24,500 287,875
Astra AB Free, Series A 37,250 849,105
Ciba-Geigy AG 2,025 1,227,249
Lilly (Eli) & Co. 18,000 1,068,750
Sandoz AG 700 1,949,120
5,382,099
Food Processing --2.1% Chiquita Brands International, Inc. 2,668 30,682
CP Pokphand Co. 1,935,000 851,378
Nestle SA, Sponsored ADR 93,200 4,030,900
4,912,960
5 Oppenheimer Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
Healthcare: Diversified--1.8% Abbott Laboratories 23,400 $690,300
Bristol-Myers Squibb Co. 38,000 2,208,750
Schering AG 2,050 1,339,882
4,238,932
Healthcare: Miscellaneous--6.5% Amgen, Inc.(1)(3) 38,000 1,881,000
Biogen, Inc.(1) 23,000 917,125
Chiron Corp.(1) 11,700 982,800
FHP International Corp.(1)(3) 100,000 2,700,000
Genzyme Corp.(1) 25,300 695,750
Manor Care, Inc. 56,370 1,374,019
Protein Design Labs, Inc.(1) 28,000 679,000
U.S. Healthcare, Inc.(3) 96,000 5,532,000
14,761,694
Hospital Management--0.5% Medical Care America, Inc.(1)(3) 46,300 1,059,112
Medical Products--1.4% Bard (C.R.), Inc.(3) 51,000 1,287,750
Medtronic, Inc.(3) 14,000 1,149,750
Nellcor, Inc.(1) 32,000 792,000
3,229,500
Retail Stores: Food Chains--0.3% Dairy Farm International Holdings Ltd. 328,052 653,771
Tobacco--1.3% Philip Morris Cos., Inc. 52,500 2,926,875
Energy--5.8%
Coal--0.5%
Ashland Coal, Inc. 37,400 1,131,350
Oil: Exploration and Burlington Resources, Inc.(3) 59,700 2,529,787
Production--1.6% Oryx Energy Co. 63,300 1,091,925
3,621,712
Oil and Gas Drilling-0.3% Santa Fe Energy Resources, Inc. 80,000 720,000
Oil: Integrated Domestic--1.1% Unocal Corp.(3) 88,000 2,453,000
Oil:Integrated International--1.6% Amoco Corp. 17,600 930,600
Royal Dutch Petroleum Co. 10,000 1,043,750
Saga Petroleum AS, Cl. B 82,000 795,920
Total SA, Sponsored ADR 40,213 1,090,778
3,861,048
Oil Well Services and McDermott International, Inc.(3) 30,100 797,650
Equipment--0.7% Tuboscope Vetco International Corp. 119,000 728,875
1,526,525
6 Oppenheimer Fund
<PAGE>
Market Value
Shares See Note 1
Financial--11.1%
Financial Services: Bear Stearns Cos., Inc. (The) 44,100 $ 964,688
Miscellaneous--3.9% Catellus Development Corp.(1) 230,000 1,782,500
Dean Witter, Discover & Co.(3) 27,000 934,875
Merrill Lynch & Co., Inc. 36,400 1,528,800
Peregrine Investment Holdings Ltd. 400,000 983,504
Salomon, Inc.(3) 58,600 2,790,825
8,985,192
Insurance: Life--0.3% Bankers Life Holding Corp. 35,000 752,500
Insurance: Multi-line--0.4% American Re Corp.(1) 34,300 973,262
Insurance: Property and Loews Corp.(1) 9,500 883,500
Casualty--0.4%
Major Banks: Other--2.4% BankAmerica Corp. 49,980 2,317,822
Deutsche Bank AG, ADR 6,000 3,075,000
5,392,822
Major Banks: Regional--0.8% NationsBank Corp. 36,300 1,778,700
Money Center Banks--2.0% Bank of New York Co. (The)(3) 30,000 1,710,000
Bankers Trust New York Corp. 23,100 1,827,788
Chemical Banking Corp. 27,700 1,111,463
4,649,251
Savings and Loans/ Golden West Financial Corp. 53,000 2,067,000
Holding Cos.--0.9%
Industrial--13.0%
Building Materials Group--1.2% Owens-Corning Fiberglas Corp.(1)(3) 60,000 2,662,500
Commercial Services--0.3% Mail Boxes Etc.(1) 60,000 712,500
Conglomerates--1.3% Tenneco, Inc. 56,000 2,947,000
Electrical Equipment-2.3% Amphenol Corp., Cl. A(1) 202,500 3,341,250
General Electric Co. 19,400 2,034,575
5,375,825
Engineering and Huarte SA 89,650 1,072,601
Construction--0.5%
Heavy Duty Trucks and Spartan Motors, Inc.(3) 54,750 930,750
Parts--0.4%
Machine Tools--0.3% FANUC Ltd. 22,500 741,902
Manufacturing: Diversified Mannesmann AG 9,775 2,364,193
Industrials--1.8% Siemens AG, ADR 19,000 1,736,125
4,100,318
Pollution Control--0.8% WMX Technologies, Inc. 73,500 1,938,563
Railroads--1.6% Burlington Northern, Inc.(3) 63,800 3,692,425
7 Oppenheimer Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
Transportation: D/S AF 1912 B 100 $1,898,474
Miscellaneous--2.5% OMI Corp. 220,500 1,515,938
Stolt-Nielsen SA 134,700 2,256,225
5,670,637
Technology--17.7%
Aerospace/Defense--1.4% General Dynamics Corp.(3) 22,400 2,066,400
McDonnell Douglas Corp. 11,000 1,177,000
3,243,400
Communication: Equipment/ QUALCOMM, Inc.(1)(3) 15,200 805,600
Manufacturers--0.4%
Computer Software and BMC Software, Inc. 18,700 897,600
Services--4.1% Computer Associates International, Inc. 18,000 720,000
Lotus Development Corp.(1)(3) 50,300 2,766,500
Marcam Corp.(1) 68,200 664,950
Microsoft Corp. 14,700 1,185,188
Network General Corp.(1)(3) 69,000 1,233,375
Novell, Inc. 45,000 933,750
SAP AG Preference 1,000 930,014
9,331,377
Computer Systems--2.8% International Business Machines Corp.(1) 26,000 1,469,000
Micropolis Corp.(1) 180,000 1,260,000
Radius, Inc.(1) 130,000 991,250
Synoptics Communications, Inc. 58,900 1,641,838
Tandem Computers, Inc. 106,700 1,160,363
6,522,451
Electronics:
Instrumentation--1.2% Hewlett-Packard Co.(3) 34,600 2,733,400
Electronics:
Semiconductors--3.0% Cirrus Logic, Inc.(1)(3) 29,000 1,073,000
Intel Corp.(3) 71,100 4,408,200
Xilinx, Inc.(1)(3) 29,000 1,384,750
6,865,950
Office Equipment and Xerox Corp.(3) 46,000 4,111,250
Supplies--1.8%
Telecommunications--3.0% American Telephone & Telegraph Co.(1) 18,700 981,750
MCI Communications Corp. 98,000 2,768,500
NEXTEL Communications, Inc., Cl. A 23,000 856,750
Rogers Cantel Mobile Communications,Inc.,Cl. B, Sub. Vtg.(1) 86,100 2,324,700
6,931,700
Utilities--3.6%
Electric Cos.--1.0% Korea Electric Power Corp. 30,000 813,975
Verbund Oest Electriz 25,200 1,533,599
2,347,574
8 Oppenheimer Fund
<PAGE>
Market Value
Shares See Note 1
Natural Gas--0.7% Hong Kong & China Gas 516,000 $ 1,495,754
Telephone (New)--1.9% BCE, Inc. 34,000 1,185,750
US West Communications, Inc. 68,200 3,128,675
4,314,425
Total Common Stocks (Cost $148,826,674) 207,907,479
Total Investments, at Value (Cost $171,674,974) 101.0% 231,286,485
Liabilities in Excess of Other Assets (1.0) (2,394,299)
Net Assets 100.0% $228,892,186
<FN>
1. Non-income producing security.
2. Restricted security--See Note 6 of Notes to Financial Statements.
</TABLE>
9 Oppenheimer Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
3. Securities with an aggregate market value of $23,295,200 are
held in escrow to cover outstanding call options, as follows:
<TABLE>
<CAPTION>
Shares
Subject Expiration Exercise Premium Market Value
To Call Date Price Received See Note 1
<S> <C> <C> <C> <C> <C>
Amgen, Inc. 8,000 1/94 $50.00 $ 11,760 $ 11,000
Avon Products, Inc. 7,600 4/94 55.00 8,360 6,650
Bank of New York Co. (The) 6,000 1/94 60.00 15,569 2,250
Bard (C.R.), Inc. 25,500 1/94 25.00 43,858 20,719
Bard (C.R.), Inc. 25,500 4/94 30.00 35,890 12,750
Blockbuster Entertainment Corp. 25,000 1/94 25.00 25,937 137,500
Blockbuster Entertainment Corp. 25,000 3/94 30.00 27,374 56,250
Blockbuster Entertainment Corp. 15,000 6/94 30.00 48,298 48,750
Burlington Northern, Inc. 5,800 1/94 55.00 27,375 17,400
Burlington Northern, Inc. 5,800 1/94 60.00 13,963 3,625
Burlington Resources, Inc. 20,000 5/94 55.00 29,399 8,750
Cirrus Logic, Inc. 14,500 3/94 35.00 73,875 63,438
Cirrus Logic, Inc. 14,500 3/94 30.00 63,000 114,187
Dean Witter, Discover & Co. 13,500 1/94 40.00 36,719 844
Dean Witter, Discover & Co. 13,500 1/94 45.00 18,157 844
Disney (Walt) Co. 6,300 4/94 40.00 16,348 27,562
FHP International Corp. 10,000 3/94 25.00 40,899 31,250
General Dynamics Corp. 5,600 2/94 95.00 23,603 13,300
Hewlett-Packard Co. 7,000 2/94 85.00 14,823 8,750
Intel Corp. 10,500 1/94 65.00 21,997 11,156
Intel Corp. 8,000 4/94 70.00 32,759 20,000
King World Productions, Inc. 9,300 2/94 45.00 18,659 8,137
Lotus Development Corp. 8,300 1/94 40.00 38,137 128,650
Lotus Development Corp. 8,500 4/94 60.00 40,119 25,500
Lotus Development Corp. 8,300 4/94 50.00 55,774 70,550
McDermott International, Inc. 15,000 2/94 30.00 26,736 3,750
McDermott International, Inc. 15,100 5/94 35.00 14,722 3,775
Medical Care America, Inc. 23,000 4/94 25.00 62,558 40,250
Medtronic, Inc. 2,800 1/94 85.00 6,216 2,800
Network General Corp. 21,600 1/94 15.00 37,151 62,100
Network General Corp. 10,800 7/94 20.00 25,325 25,650
Owens-Corning Fiberglas Corp. 12,000 3/94 50.00 24,389 9,000
Paramount Communications, Inc. 5,000 1/94 80.00 14,225 5,937
Paramount Communications, Inc. 5,000 3/94 80.00 28,897 12,500
Paramount Communications, Inc. 5,000 3/94 85.00 9,537 5,000
QUALCOMM, Inc. 14,800 1/94 50.00 97,603 74,000
QUALCOMM, Inc. 400 1/94 60.00 3,038 200
Salomon, Inc. 14,600 1/94 45.00 48,835 43,800
Salomon, Inc. 14,600 1/94 50.00 26,936 6,388
Salomon, Inc. 14,600 4/94 55.00 15,359 10,950
Spartan Motors, Inc. 9,000 3/94 22.50 20,542 3,375
U.S. Healthcare, Inc. 24,200 1/94 55.00 105,245 99,825
Unocal Corp. 9,000 1/94 30.00 30,104 1,125
Unocal Corp. 9,000 1/94 35.00 12,105 1,688
WMS Industries, Inc. 9,000 5/94 35.00 32,354 13,500
Xerox Corp. 9,000 3/94 85.00 25,604 63,000
Xilinx, Inc. 7,700 3/94 45.00 27,681 43,313
Xilinx, Inc. 7,700 3/94 50.00 26,718 25,025
Xilinx, Inc. 6,800 3/94 55.00 18,495 13,600
$1,523,027 $1,420,363
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities December 31, 1993 (Unaudited)
<S> <S> <C>
Assets Investments, at value (cost $171,674,974)--see accompanying statement $231,286,485
Cash 322,091
Receivables:
Investments sold and options written 1,681,841
Shares of beneficial interest sold 351,595
Dividends and interest 328,452
Other 183,671
Total assets 234,154,135
Liabilities Options written, at value (premiums received $1,523,027)--see
accompanying statement--Note 4 1,420,363
Payables and other liabilities:
Investments purchased 1,937,937
Shares of beneficial interest redeemed 1,004,467
Dividends and distributions 617,970
Other 281,212
Total liabilities 5,261,949
Net Assets $228,892,186
Composition of Paid-in capital $162,343,168
Net Assets Undistributed net investment income 26,290
Accumulated net realized gain from investment, written option
and foreign currency transactions 6,808,553
Net unrealized appreciation on investments, options written
and translation of assets and liabilities denominated in
foreign currencies--Note 3 59,714,175
Net assets $228,892,186
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets
of $228,891,196 and 20,973,285 shares of beneficial interest outstanding) $10.91
Maximum offering price per share (net asset value
plus sales charge of 5.75% of offering price) $11.58
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $990 and 91 shares of beneficial interest outstanding) $10.92
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations For the Six Months Ended December 31, 1993 (Unaudited)
<S> <S> <C>
Investment Income Dividends (net of withholding taxes of $13,574) $ 1,513,022
Interest 247,046
Total income 1,760,068
Expenses Management fees--Note 5 833,547
Transfer and shareholder servicing agent fees--Note 5 175,583
Distribution assistance:
Class A--Note 5 91,220
Class C--Note 5 1
Custodian fees and expenses 82,152
Legal and auditing fees 62,245
Shareholder reports 45,270
Trustees' fees and expenses 8,614
Other 9,160
Total expenses 1,307,792
Net Investment Income 452,276
Realized and Unrealized Net realized gain (loss) from:
Gain (Loss) on InvestmentsInvestments and options written (including premiums on options exercised) 5,248,010
Options Written and Closing and expiration of option contracts written--Note 4 368,062
Foreign Currency
Transactions Foreign currency transactions (104,063)
Net change in unrealized appreciation or depreciation on:
Investments and options written 15,319,090
Translation of assets and liabilities denominated in foreign currencies (1,110,943)
Net realized and unrealized gain on investments,
options written and foreign currency transactions 19,720,156
Net Increase in Net Assets Resulting From Operations $20,172,432
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1993 Year Ended
(Unaudited) June 30, 1993
<S> <S> <C> <C>
Operations Net investment income $ 452,276 $ 2,226,781
Net realized gain on investments, options written and
foreign currency transactions 5,512,009 7,786,728
Net change in unrealized appreciation or depreciation on
investments, options written and translation of assets
and liabilities denominated in foreign currencies 14,208,147 16,573,062
Net increase in net assets resulting from operations 20,172,432 26,586,571
Dividends and Dividends from net investment income:
Distributions to Class A ($.033 and $.104 per share, respectively) (665,915) (2,190,272)
Shareholders Class C ($.02 per share) (2) --
Distributions from net realized gain on investments,
options written and foreign currency transactions:
Class A ($.4495 and $.466 per share, respectively) (9,068,032) (9,716,817)
Class C ($.4495 per share) (41) --
Beneficial Interest Net increase (decrease) in net assets resulting from Class A
Transactions beneficial interest transactions--Note 2 2,272,617 (7,993,951)
Net increase in net assets resulting from Class C
beneficial interest transactions--Note 2 1,000 --
Net Assets Total increase 12,712,059 6,685,531
Beginning of period 216,180,127 209,494,596
End of period (including undistributed net investment income of
$26,290 and $239,931, respectively) $228,892,186 $216,180,127
See accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A Class C
Six Months Ended Year Ended Period Ended
December 31, 1993 June 30, December 31,
(Unaudited) 1993 1992 1991 1990 1989 1993(1)
(Unaudited)
<S> <C> <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 $10.41
Income from investment operations:
Net investment income .04 .11 .16 .26 .32 .21 --
Net realized and unrealized gain on
investments, options written and
foreign currency transactions .94 1.15 .84 .69 .23 .82 .98
Total income from
investment operations .98 1.26 1.00 .95 .55 1.03 .98
Dividends and distributions to shareholders:
Dividends from net investment income (.03) (.10) (.32) (.22) (.25) (.17) (.02)
Distributions from net realized gain
on investments, options written and
foreign currency transactions (.45) (.47) (.27) (.48) (.41) (.05) (.45)
Total dividends and distributions
to shareholders (.48) (.57) (.59) (.70) (.66) (.22) (.47)
Net asset value, end of period $ 10.91 $10.41 $9.72 $9.31 $9.06 $9.17 $10.92
Total Return, at Net Asset Value(2) 9.46% 13.33% 11.22% 11.65% 6.04% 12.60% 3.28%
Ratios/Supplemental Data:
Net assets, end of
period (in thousands) $228,891 $216,180 $209,495 $202,509 $196,076 $208,166 $1
Average net assets (in thousands) $221,439 $212,660 $221,369 $189,994 $206,259 $201,556 $1
Number of shares outstanding at
end of period (in thousands) 20,973 20,769 21,555 21,748 21,639 22,705 .09
Ratios to average net assets:
Net investment income .50%(3) 1.05% 1.71% 2.91% 3.36% 2.49% (.45)%(3)
Expenses 1.18%(3) 1.10% 1.09% 1.07% 1.04% 1.07% 2.16%(3)
Portfolio turnover rate(4) 15.8% 35.6% 58.2% 105.8% 79.5% 96.6% 15.8%
<FN>
1. For the period from December 1, 1993 (inception of offering) to December 31, 1993.
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 six months ended December 31, 1993 were $32,007,617 and $42,060,537, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Fund
<PAGE>
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies
Oppenheimer Fund (the Fund) is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end management investment company. The
Fund's investment advisor is Oppenheimer Management Corporation (the Manager).
The Fund offers both Class A and Class C shares. Class A shares are sold with a
front-end sales charge. Class C shares may be subject to a contingent deferred
sales charge. Both classes of shares have identical rights to earnings, assets
and voting privileges, except that each class has its own distribution plan,
expenses directly attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. The following is a summary of
significant accounting policies consistently followed by the Fund.
Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New York
time) on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the day
or, in the absence of sales, at values based on the closing bid or asked price
or the last sale price on the prior trading day. Long-term debt securities are
valued by a portfolio pricing service approved by the Board of Trustees. Long-
term debt securities which cannot be valued by the approved portfolio pricing
service are valued by averaging the mean between the bid and asked prices
obtained from two active market makers in such securities. Short-term debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount. Securities for which market quotes are not readily
available are valued under procedures established by the Board of Trustees to
determine fair value in good faith. A call option is valued based upon the last
sales price on the principal exchange on which the option is traded or, in the
absence of any transactions that day, the value is based upon the last sale on
the prior trading date if it is within the spread between the closing bid and
asked prices. If the last sale price is outside the spread, the closing bid or
asked price closest to the last reported sale price is used.
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of securities and investment income are translated at
the 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.
Call Options Written. The Fund may write covered call options. When an option is
written, the Fund receives a premium and becomes obligated to sell the
underlying security at a fixed price, upon exercise of the option. In writing an
option, the Fund bears the market risk of an unfavorable change in the price of
the security underlying the written option. Exercise of an option written by the
Fund could result in the Fund selling a security at a price different from the
current market value. All securities covering call options written are held in
escrow by the custodian bank.
Allocation of Income, Expenses and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
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.
15 Oppenheimer Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
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 December 31, 1993, a provision of $2,360 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $61,970 at
December 31, 1993. No payments have been made under the plan.
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
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.
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1993 (1) Year Ended June 30, 1993
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Class A:
Sold 267,853 $2,911,707 910,822 $ 9,151,109
Dividends and
distribtuions reinvested 816,820 8,881,834 1,103,139 10,873,362
Redeemed (880,622) (9,520,924) (2,799,972) (28,018,422)
Net increase (decrease) 204,051 $2,272,617 (786,011) $(7,993,951)
Class C:
Sold 91 $ 1,000 -- $ --
Net increase 91 $ 1,000 -- $ --
<FN>
1. For the six months ended December 31, 1993 for Class A shares and for the
period from December 1, 1993 (inception of offering) to December 31, 1993 for
Class C shares.
</TABLE>
3. Unrealized Gains and Losses on Investments And Options Written
At December 31, 1993, net unrealized appreciation on investments and options
written of $60,825,118 was composed of gross appreciation of $65,183,383, and
gross depreciation of $4,358,265.
4. Call Option Activity
Call option activity for the six months ended December 31, 1993 was as follows:
<TABLE>
<CAPTION>
Number Amount of
of Options Premiums
<S> <C> <C>
Options outstanding at June 30, 1993 4,547 $1,200,680
Options written 6,652 1,849,864
Options cancelled in closing purchase transactions (1,466) (460,777)
Options expired prior to exercise (2,256) (547,227)
Options exercised (1,750) (519,513)
Options outstanding at December 31, 1993 5,727 $1,523,027
</TABLE>
The cost of cancelling options in closing purchase transactions was $639,942,
resulting in a net short-term capital loss of $179,165. Premiums received on
expired options resulted in a short-term capital gain of $547,227.
5. Management Fees And Other Transactions With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .75% on the
first $200 million of net assets with a reduction of .03% on each $200 million
thereafter to $800 million, and .60% on net assets in excess of $800 million.
The Manager has agreed to reimburse the
Fund if aggregate expenses (with specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
16 Oppenheimer Fund
<PAGE>
For the six months ended December 31, 1993, commissions (sales charges paid by
investors) on sales of Class A shares totaled $74,730, of which $27,970 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer.
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 of distribution, each class may expend up to
.25% of its net assets annually to reimburse OFDI for costs incurred in
distributing shares of the Fund (sold subsequent to March 31, 1991 for Class A),
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 of distribution, the Fund
would be contractually obligated to pay OFDI for any expenses not previously
reimbursed or recovered through contingent deferred sales charges. During the
six months ended December 31, 1993, OFDI paid $724 to an affiliated
broker/dealer as reimbursement for Class A distribution-related expenses.
6. Restricted Securities The Fund owns securities purchased in private placement
transactions, without registration under the Securities Act of 1933 (the Act).
The securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The Fund intends to invest no more than 10% of its net
assets (determined at the time of purchase) in restricted and illiquid
securities, excluding securities eligible for resale pursuant to Rule 144A of
the Act that are determined to be liquid by the Board of Trustees or by the
Manager under Board-approved guidelines.
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Date Cost Per Unit December 31,1993
<S> <C> <C> <C>
Dairy Farm International
Holdings Ltd.,
$65.00 Cv.(1) 4/30/93 $1,000 $1,540
Grupo Televisa SA, ADS(1) 8/20/92-8/26/92 $28 $70
<FN>
1. Transferable under Rule 144A of the Act.
</TABLE>
17 Oppenheimer Fund
<PAGE>
Oppenheimer Fund
Officers and Trustees
Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Richard H. Rubinstein, Vice President
George C. Bowen, Treasurer
Lynn M. Coluccy, 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
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 Fund. This report must
be preceded or accompanied by a Prospectus of Oppenheimer Fund. For material
information concerning the Fund, see the Prospectus.
18 Oppenheimer Fund
<PAGE>
The Family of OppenheimerFunds
OppenheimerFunds offers over 30 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 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 1.7 million shareholder accounts
and more than $25 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.
Specialty Stock Funds Global Bio-Tech Fund Gold & Special Minerals Fund
Global Environment Fund
Stock Funds Discovery Fund Global Fund
Time Fund Oppenheimer Fund
Target Fund Value Stock Fund
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Stock and Bond Funds Main Street Income Equity Income Fund
& Growth Fund Asset Allocation Fund
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Income Fund
Bond Funds High Yield Fund Strategic Short-Term
Champion High Yield Fund Income Fund
Strategic Income & Investment Grade Bond Fund
Growth Fund Mortgage Income Fund(3)
Strategic Income Fund U.S. Government Trust
Strategic Diversified Government Securities Fund
Income Fund
Strategic Investment
Grade Bond Fund
Tax-Exempt Funds New York Tax-Exempt Fund(2) Tax-Free Bond Fund
California Tax-Exempt Fund(2) Insured Tax-Exempt Bond Fund
Pennsylvania Tax-Exempt Intermediate Tax-Exempt
Fund(2) Bond Fund
Florida Tax-Exempt Fund(2)
Money Market Funds Money Market Fund Tax-Exempt Cash Reserves
Cash Reserves
1. The fee is waived for PhoneLink exchanges between existing accounts. Exchange
privileges are subject to change or termination.
2. Available only to residents of those states.
3. Formerly GNMAFund.
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.
19 Oppenheimer Fund
<PAGE>
``How may I help you?''
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
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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.
"Just as OppenheimerFunds offers over 30 different 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.
"We also make it 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 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 regular business hours.
"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 recently awarded Oppenheimer Shareholder Services
a 1993 Award of Excellence for consistently demonstrating superior customer
service.
"Whatever your needs, we're ready to assist you."
Barbara Hennigar
President
Oppenheimer Shareholder Services
RS400.0294.R
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Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
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