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<PAGE> 1
OPPENHEIMER FUND
Semiannual Report December 31, 1994
[FIGURE NUMBER 1]
Photo of couple talking at campsite
"We have
some important goals, so
our money needs to grow
SOLIDLY
over time."
[logo]
<PAGE> 2
This Fund is for people who want the potential for solid GROWTH over time.
HOW YOUR FUND IS MANAGED
Oppenheimer Fund seeks capital appreciation and income consistent with growth in
capital. It uses a combination of five distinct investment styles, which can
also help manage risk.
The Fund's manager invests in stocks of established U.S. and international
companies they believe have excellent potential for appreciation. They use a
"value" approach, which emphasizes underpriced companies; a "contrarian"
approach, which seizes opportunities in out-of-favor industries they believe to
be poised for rebound; and a "growth" approach, which seeks companies the
managers believe have above-average growth rates.
International and high-yield stocks serve as risk-reduction sectors.
International stocks serve to cushion the portfolio against fluctuations in the
U.S. stock market and yield stocks provide steady income.
Using the five investment styles, your Fund's managers have the
flexibility to move quickly as market conditions change.
NEWS
"FOR INVESTORS WHO WANT A WIDE VARIETY OF STOCKS IN ONE
PACKAGE, THIS FUND IS A
NICE CHOICE."
--Morningstar Mutual Funds
9/2/94
OUTPERFORMED AVERAGE
Total Return for the Year Ended 12/31/94:
Oppenheimer Fund
Class A(1) (at NAV) 0.25%
Lipper
Growth Funds
Average(2) -2.15%
PERFORMANCE
Total return at net asset value for the 6 months ended 12/31/94 was 3.68% for
Class A shares and 3.21% for Class C shares.1
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5-, and 10-year periods ended 12/31/94 and since
inception of the Class on 4/30/59 were -5.51%*, 7.77%, 9.97% and 9.24%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 12/31/94 and since inception of the Class on 12/1/93 were -1.75%
and 1.78%, respectively.(3)
OUTLOOK
"We don't have a crystal ball, so we don't depend on predictions about interest
rates or the economy. Instead, we rely on portfolio diversification by both
market sector and investment style. Over time, our diversified approach, based
on the strengths in value, growth, contrarian, global, and income investing
developed over the years by the OppenheimerFunds team, should produce superior
returns while holding volatility to below-market levels."
Richard Rubinstein, Portfolio Manager
December 31,1994
1. Based on the change in net asset value per share from 6/30/94 and 12/31/93 to
12/31/94, without deducting any sales charges. Such performance would have been
lower if sales charges were taken into account.
2. Source: Lipper Analytical Services. The Lipper total return average for the
year ended 12/31/94 was for 481 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.
3. Average annual total returns are based on a hypothetical investment held
until 12/31/94, after deducting the current maximum initial sales charge of
5.75% for Class A shares. 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 for the 1-year period.
Class A and Class C shares were first publicly offered on 4/30/59 and 12/1/93,
respectively. All figures assume reinvestment of dividends and capital gains
distributions. Past performance is not indicative of future results. Investment
and principal value on an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
2 Oppenheimer Fund
<PAGE> 3
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
The past year has been a difficult period for the stock market, one marked above
all by one of the most aggressive series of moves to raise interest rates in the
U.S. Federal Reserve's history. As interest rates moved up, bond prices fell and
the stock market followed, while investors looked everywhere for answers to
questions about directions in inflation, interest rates, and the economy. These
questions all concerned one basic issue: Is the bull market in stocks coming to
an end?
In our view, it is not. While we are not expecting major gains in stock
prices in the very near term, we believe that the uncertainties which held the
market back in 1994 will recede in 1995 as the fundamental positives in the
economy are recognized. The most important of these positives is our belief that
the Fed's attempt to preempt possible inflation, while temporarily
disconcerting, will likely have its desired effect in 1995. We believe that the
economy will begin to slow, and although short-term rates may move up modestly
from their present levels, long-term interest rates--the ones that most affect
securities prices--should stabilize in their current range. Long-term rates may
even begin to decline as overblown concerns about inflation abate.
Those concerns are, in fact, already fading. While the prices of some
commodities have risen over the past year and U.S. manufacturing capacity
utilization and employment rose to their highest levels in years, in today's
globally competitive environment, price increases are difficult to pass on to
either consumers or businesses. The inflation rate--as measured by the Consumer
Price Index-- continues to run at less than 3% a year, and there's nothing on
the horizon to suggest to us that it will increase substantially anytime soon.
Even at their current levels, interest rates remain low relative to recent
periods, and in our view, pose no real threat to most companies' earnings or
cash flows. During the most recent recession, many businesses learned to operate
much more efficiently and took advantage of the extended decline in interest
rates to work down their debt loads and strengthen their financial positions. As
a result, corporate profits have soared despite higher interest rates. And we
believe that business earnings should grow even more as economies in Europe and
elsewhere emerge from their recessions, stimulating demand for U.S. companies'
goods and services. As profits rise, we expect stocks to become more valuable.
Finally, the changing political landscape reflected in results of the
mid-term election bodes well for the stock market over time. In addition to
limiting the expectation that Congress will pass potentially inflationary
government spending proposals, the realignment in Washington has raised the
possibility of tax relief in the form of an expanded deduction for individual
retirement savings or possibly a reduction in the capital gains tax rate. What
specific action, if any, Congress will take on these proposals remains to be
seen. But any action to reduce the federal deficit, cut spending, and reduce
taxes should be good news for the stock market overall.
In light of all these factors, we remain bullish on stocks. As we have
noted in previous reports, we're expecting moderate gains in the short-term, in
line with increasing corporate earnings. Over time, however, we expect stocks to
perform well in both the U.S. and foreign markets. Your portfolio manager
discusses the outlook for your Fund on the following pages. We appreciate your
confidence, and we look forward to helping you continue to reach your investment
goals.
[FIGURE NUMBER 2]
Photo of Donald W. Spiro
Donald W. Spiro
President
Oppenheimer Fund
[FIGURE NUMBER 3]
Photo of Jon S. Fossel
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Donald W. Spiro Jon S. Fossel
_______________ _____________
Donald W. Spiro Jon S. Fossel
January 23, 1995
3 Oppenheimer Fund
<PAGE> 4
Q + A [FIGURE NUMBER 4]
Photo of Richard Rubinstein
[FIGURE NUMBER 5]
Photo of person at equity trading desk
AN INTERVIEW WITH YOUR FUND'S MANAGER.
THE FUND HELD ITS GROUND OVER THE PAST 12-MONTH PERIOD, COMPARED TO OTHER FUNDS
WITH SIMILAR OBJECTIVES. WHAT FACTORS CONTRIBUTED MOST TO THAT PERFORMANCE?
Two factors stand out. One is our emphasis on technology, healthcare, and
industrial stocks, which helped the Fund's performance. Second is our emphasis
on international stocks, which made up 19.3% of the portfolio at year-end 1994,
a significantly higher percentage than that held by most similar funds.
[FIGURE NUMBER 6]
Photo of Mark Binning and Lawrence Apolito
LET'S LOOK FIRST AT YOUR INTERNATIONAL HOLDINGS. WHAT MAKES FOREIGN STOCKS SO
ATTRACTIVE?
Many economies in Europe and Asia are just beginning to come out of their
recessions. They stand at the point in the economic and earnings cycle where the
U.S. stood two years ago, and the companies we're buying--such as S.G. Warburg
in Germany, Guinness in the U.K., Fiat in Italy, and Jardine Matheson in Hong
Kong--offer strong growth prospects at attrac- tive prices.
We're also seeing value in many emerging markets in Latin America and
Asia, where we've begun to build our holdings. Stock prices in many markets have
declined to the point where we can once again find solid long-term value. While
foreign investments may subject the Fund to greater expenses and risks, such as
adverse currency fluctuations, because we rely on portfolio diversification by
both market sector and investment style, we have been able to produce superior
returns while keeping risk at below-market levels.
WHY ARE YOU EMPHASIZING TECHNOLOGY STOCKS?
The U.S. dominates the technology sector. Technology gives us the tools to
improve performance no matter what
Q WHAT
IS YOUR OUTLOOK
FOR THE
FUND?
4 Oppenheimer Fund
<PAGE> 5
the economic environment. Some technology stocks we own, such as AT&T, MCI, and
U.S. West, are "value" stocks because their prices are relatively low compared
with the companies' assets and earnings power. And they provide inexpensive ways
to participate in the creation of the "information superhighway."
Recent growth stock purchases include Computer Associates, Delrina, and
Symantec, whose products, profits and stock prices we expect to benefit from the
broad business push for increased productivity.
HOW ABOUT HEALTHCARE; WHY ARE YOU HOLDING SUCH STRONG POSITIONS IN THESE STOCKS?
While HMOs and healthcare providers are out of favor today, the companies we own
are, we believe, strong com-petitors with good growth prospects. Other stocks,
including Eli Lilly and Bristol-Myers, have strong dividend yields--upwards of
5%.(1)
[FIGURE NUMBER 7]
Photo of Richard Rubinstein
ARE YOU ADDING TO POSITIONS IN STOCKS IN BASIC INDUSTRIES AT THIS POINT IN THE
ECONOMIC CYCLE?
The industrial stocks we're buying--Georgia-Pacific and Louisiana-Pacific in the
paper industry; IMCGlobal, a world-class fertilizer company; Corning, Inc., and
Consolidated Freightways--have reduced their break-even points significantly.
They're very efficient companies today, and their earnings will benefit from
even modest improvements in pricing and business volumes.
WHAT'S YOUR OUTLOOK FOR THE FUND?
Over the past year, interest rates have overshadowed earnings as the factor
driving stock prices. In the months ahead, earnings should play a more
significant role in determining stock prices. At this point, there's nothing on
the horizon to suggest that we'll be dealing with runaway inflation or interest
rates any time soon. As we move into 1995, we should see much calmer investment
markets and continued gains in corporate earnings, both of which are expected to
help the Fund's performance. -
[FIGURE NUMBER 8]
Photo of Robert Doll and Pat Andrzejewski
FACING PAGE
Top left: Portfolio Manager
Richard Rubinstein
Top right: The equity trading desk
Bottom:Mark Binning, Securities Coordinator, consults with Lawrence Apolito, VP
Equity Trading
THIS PAGE
Top: Richard Rubinstein
Bottom:Robert Doll, Executive VP, Director of Equity Investments, with his
assistant, Pat Andrzejewski
A Calmer markets and gains in corporate earnings should HELP performance.
1. The Fund's portfolio is subject to change.
5 Oppenheimer Fund
<PAGE> 6
STATEMENT OF INVESTMENTS December 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
------ ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS Repurchase agreement with First Chicago Capital Markets, 6%,
- --10.9% dated 12/30/94, to be repurchased at $27,018,000 on 1/3/95,
collateralized by U.S. Treasury Nts., 3.875%--8.875%, 5/31/95--8/31/05,
with a value of $25,676,688 and U.S. Treasury Bonds, 10.75%--14.25%,
2/15/02--8/15/05 with a value of $1,886,222 (Cost $27,000,000) $27,000,000 $27,000,000
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.6%
Mediq, Inc., 7.50% Exch. Sub. Debs., 7/15/03 (Cost $1,726,849) 1,850,000 1,496,188
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C> <C>
COMMON STOCKS--85.3%
BASIC MATERIALS--7.4%
CHEMICALS--1.3% IMC Global, Inc.(3) 31,000 1,340,750
Praxair, Inc. 65,500 1,342,750
Sybron Chemical Industries, Inc.(2) 41,800 647,900
---------
3,331,400
CHEMICALS: ARCO Chemical Co. 40,800 1,795,200
DIVERSIFIED--2.3%
Bayer AG, Sponsored ADR(2) 170,000 3,937,370
---------
5,732,570
CHEMICALS: Goldschmidt (T.H.) AG 1,875 1,004,022
SPECIALTY--0.4%
METAL: Brush Wellman, Inc. 151,400 2,630,575
MISCELLANEOUS--1.1%
PAPER AND FOREST Georgia-Pacific Corp. 14,500 1,036,750
PRODUCTS--1.3% Indah Kiat Pulp & Paper Corp. 169,400 192,675
Louisiana-Pacific Corp. 36,200 986,450
Macmillian Bloedel Ltd. 68,200 843,975
PT Pabrik Kertas Tjiwi Kimia 70,000 130,573
---------
3,190,423
STEEL--1.0% Inland Steel Industries, Inc.(2) (3) 72,000 2,529,000
CONSUMER CYCLICALS--14.3%
AIRLINES--0.4% AMR Corp.(2) 18,200 969,150
AUTOMOBILES--0.6% Fiat SpA(2) 320,000 1,187,486
Mahindra & Mahindra Ltd., GDR 16,000 178,520
---------
1,366,006
</TABLE>
6 Oppenheimer Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------ ------------
<S> <C> <C> <C>
BROADCAST Comcast Corp. Special, Cl. A 117,950 $1,850,341
MEDIA--1.5%
SFX Broadcasting, Inc., Cl. A(2) 65,400 1,209,900
TeleCommunications, Inc., Cl. A(2) 35,000 761,250
---------
3,821,491
ENTERTAINMENT--1.5% King World Productions, Inc.(2) 56,500 1,949,250
MGM Grand, Inc.(2) (3) 35,000 844,375
Sega Enterprises 15,000 864,488
---------
3,658,113
HOTELS/MOTELS--0.3% Circus Circus Enterprises Inc.(2) 36,300 843,975
HOUSEHOLD FURNISHINGS Chromcraft Revington, Inc.(2) 50,000 1,100,000
AND APPLIANCES--0.4%
LEISURE TIME--1.6% Caesar's World, Inc.(2) (3) 32,800 2,189,400
Eastman Kodak Co. 25,500 1,217,625
International Game Technology(3) 32,100 497,550
---------
3,904,575
PUBLISHING--1.9% Bowne & Co., Inc. 40,000 695,000
Time Warner, Inc. 53,100 1,865,138
Wolters Kluwer NV 27,450 2,031,089
---------
4,591,227
RETAIL STORES: Dillard Department Stores, Inc., Cl. A 35,000 936,250
DEPARTMENT STORES--0.4%
RETAIL STORES: Price/Costco, Inc.(2) 65,000 836,875
GENERAL
MERCHANDISE Waban, Inc.(2) (3) 44,000 781,000
CHAINS--0.7% ---------
1,617,875
RETAIL: SPECIALTY CML Group, Inc.(3) 87,800 888,975
- --1.6%
Toys 'R' Us, Inc.(2) 46,200 1,409,100
Venture Stores, Inc. 138,000 1,604,250
---------
3,902,325
TEXTILES: APPAREL Authentic Fitness Corp.(2) 90,000 1,248,750
MANUFACTURERS--1.7% Cone Mills Corp.(2) 70,000 831,250
Fruit of the Loom, Inc., Cl. A(2) 36,600 988,200
Warnaco Group, Inc. (The), Cl. A(2) 67,200 1,159,200
---------
4,227,400
</TABLE>
7 Oppenheimer Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------ -----------
<S> <C> <C> <C>
TOYS--1.7% Mattel, Inc.(3) 121,500 $ 3,052,688
Nintendo Corp. Ltd. 18,000 972,436
SLM International Inc.(2) 81,400 208,588
-----------
4,233,712
CONSUMER NON-CYCLICALS--16.1%
BEVERAGES: ALCOHOLIC Guinness PLC 182,000 1,281,325
- --0.5%
BEVERAGES: SOFT Whitman Corp. 104,300 1,799,175
DRINKS--0.7%
COSMETICS--0.2% Maybelline, Inc. 30,400 547,200
DRUGS--2.6% Agouron Pharmaceuticals, Inc.(2) 24,500 275,625
Astra AB Free, Series A 37,250 962,057
Ciba-Geigy AG 2,025 1,208,506
Lilly (Eli) & Co.(3) 12,000 787,500
Medeva PLC 399,335 1,018,358
Mylan Laboratories, Inc.(3) 52,800 1,425,600
Nature's Bounty, Inc.(2) 145,000 788,438
-----------
6,466,084
FOOD PROCESSING Nestle SA, Sponsored ADR 60,000 2,858,646
- --2.0%
Sanfilippo (John B.) & Son, Inc. 90,000 495,000
Sara Lee Corp. 61,700 1,557,925
-----------
4,911,571
FOOD WHOLESALERS Food Lion, Inc., Cl. A 114,500 586,813
- --0.2%
HEALTHCARE: Abbott Laboratories 30,700 1,001,588
DIVERSIFIED--2.1%
Bristol-Myers Squibb Co. 48,000 2,778,000
Schering AG 2,050 1,342,406
-----------
5,121,994
HEALTHCARE: Amgen, Inc.(2)(3) 32,000 1,888,000
MISCELLANEOUS--4.2%
Biosys, Inc.(2) 101,200 227,700
Chiron Corp.(2)(3) 12,300 988,613
Genzyme Corp.(2)(3) 38,000 1,197,000
Manor Care, Inc. 50,770 1,389,829
U.S. Healthcare, Inc.(3) 116,700 4,813,875
-----------
10,505,017
HOSPITAL Novacare, Inc.(2) 98,000 710,500
MANAGEMENT--0.7%
Wellpoint Health Networks, Inc., Cl. A(2) 31,000 902,875
-----------
1,613,375
</TABLE>
8 Oppenheimer Fund
<PAGE> 9
<TABLE>
<CAPTION>
MARRKET VALUE
SHARES SEE NOTE 1
------ -------------
<S> <C> <C> <C>
MEDICAL Medtronic, Inc. 22,400 $1,246,000
PRODUCTS--1.6%
Mitek Surgical Products, Inc.(2) 60,000 1,485,000
Nellcor, Inc.(2) 38,000 1,254,000
----------
3,985,000
TOBACCO--1.3% Philip Morris Cos., Inc. 55,100 3,168,250
Energy--3.8%
COAL--0.5% Ashland Coal, Inc. 41,200 1,174,200
OIL: INTEGRATED Ashland Oil, Inc. 23,000 793,500
DOMESTIC--1.7%
Atlantic Richfield Co. 10,500 1,068,375
Unocal Corp. 88,000 2,398,000
----------
4,259,875
OIL: INTEGRATED Royal Dutch Petroleum Co. 10,000 1,075,000
INTERNATIONAL--1.6% Saga Petroleum AS, Cl. B 82,000 848,609
Total SA, Sponsored ADR 46,180 1,362,310
YuKong Ltd., GDR(1) (2) 26,500 417,375
YuKong Ltd., GDR(1) (2) 13,000 195,000
----------
3,898,294
INDUSTRIAL--14.5%
BUILDING MATERIALS Masco Corp. 35,000 791,875
GROUP--1.3%
Owens-Corning Fiberglass Corp.(2) 77,000 2,464,000
----------
3,255,875
COMMERCIAL Sylvan Learning Systems, Inc.(2) 27,700 547,075
SERVICES--0.2%
CONGLOMERATES--2.1% Jardine Matheson Holdings Ltd. 100,936 720,781
Kinnevik Investments AB Free, Series B 31,500 1,042,363
Tenneco, Inc. 65,000 2,762,500
Wharf Holdings 233,000 785,998
----------
5,311,642
</TABLE>
9 Oppenheimer Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------ ------------
<S> <C> <C> <C>
CONTAINERS: METAL Corning, Inc. 34,700 $1,036,663
AND GLASS--0.8% Interpool, Inc.(2) 56,800 844,900
-----------
1,881,563
ELECTRICAL EQUIPMENT C-Cube Microsystems, Inc.(2) 32,000 608,000
- --1.2%
General Electric Co. 44,000 2,244,000
-----------
2,852,000
ENGINEERING Empresas ICA Sociedad Controladora SA de C.V.(3) 50,400 781,200
AND CONSTRUCTION Huarte SA 98,650 921,822
- --0.7% -----------
1,703,022
HEAVY DUTY TRUCKS Spartan Motors, Inc. 49,750 665,406
AND PARTS--0.3%
MACHINERY: Harnischfeger Industries, Inc. 36,000 1,012,500
DIVERSIFIED--0.4%
MANUFACTURING: Mannesmann AG 9,775 2,648,682
DIVERSIFIED Olin Corp. 20,000 1,030,000
INDUSTRIALS--2.1%
Siemens AG, ADR 19,000 1,591,081
-----------
5,269,763
POLLUTION CONTROL Waste Management International PLC, Sponsored ADR(2) 77,000 875,875
- --0.4%
RAILROADS--1.8% Burlington Northern, Inc. 70,400 3,388,000
Chicago & North Western Holdings Corp.(2) 57,800 1,112,650
-- -----------
4,500,650
TRANSPORTATION: Airborne Freight Corp. 49,000 1,004,500
MISCELLANEOUS--3.2% Consolidated Freightways, Inc. 71,500 1,599,813
D/S AF 1912 "B" 100 1,922,596
Lisnave-Estaleiros Navais de Lisbona SA(2) 33,000 161,683
OMI Corp. 46,700 309,388
Stolt-Nielsen SA 134,700 2,778,188
Westmont Berhad 25,000 155,667
-----------
7,931,835
FINANCIAL--8.7%
COMMERCIAL FINANCE SG Warburg & Co., Inc. Ords. 98,500 1,064,853
- --0.4%
FINANCIAL SERVICES: American Express Co.(3) 42,000 1,239,000
MISCELLANEOUS--1.9% CMAC Investment Corp. 46,200 1,334,025
H & R Block, Inc. 20,900 775,913
Merrill Lynch & Co., Inc. 38,200 1,365,650
-----------
4,714,588
</TABLE>
10 Oppenheimer Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
------ -------------
<S> <C> <C> <C>
INSURANCE: LIFE--0.7% Bankers Life Holding Corp. 53,300 $ 1,012,700
National Mutual Asia Ltd.(2) 254,000 167,428
UNUM Corp. 16,900 637,975
-----------
1,818,103
INSURANCE: MULTI-LINE Aetna Life & Casualty Co. 21,600 1,017,900
- --1.5%
American International Group, Inc. 13,000 1,274,000
AmericanRe Corp.(2) 42,000 1,354,500
-----------
3,646,400
MAJOR BANKS: Banco Frances del Rio Plata 20,000 142,500
OTHER--1.2%
Deutsche Bank AG, ADR 6,000 2,787,069
Korea First Bank 4,942 68,944
Turkiye Garanti Bankasi AS, Sponsored ADR(1) 17,000 43,047
-----------
3,041,560
MAJOR BANKS: NationsBank Corp. 53,200 2,400,650
REGIONAL--1.0%
MONEY CENTER Bankers Trust New York Corp.(3) 28,100 1,556,038
BANKS--1.2%
Chemical Banking Corp. 42,900 1,539,038
-----------
3,095,076
SAVINGS AND LOANS/ Golden West Financial Corp. 53,000 1,868,250
HOLDING COS.--0.8%
TECHNOLOGY--17.5%
AEROSPACE/DEFENSE General Dynamics Corp.(3) 34,500 1,500,750
- --1.6%
McDonnell Douglas Corp.(3) 11,000 1,562,000
Rockwell International Corp. 26,000 929,500
-----------
3,992,250
COMPUTER SOFTWARE Bay Networks, Inc.(2)(3) 54,447 1,606,180
AND SERVICES--6.6% BMC Software, Inc.(2)(3) 32,400 1,842,750
Computer Associates International, Inc.(3) 33,500 1,624,750
Delrina Corp.(2) 71,500 884,813
Electronic Arts, Inc.(2) 61,500 1,183,875
Informix Corp.(2) 30,000 963,750
Landmark Graphics Corp.(2) 41,600 748,800
Lotus Development Corp.(2)(3) 19,800 811,800
Marcam Corp.(2) 71,600 724,950
Microsoft Corp.(2)(3) 23,800 1,454,775
Novell, Inc.(2) 127,000 2,174,875
Pyxis Corp.(2)(3) 57,600 1,094,400
Symantec Corp.(2) 70,000 1,225,000
-----------
16,340,718
</TABLE>
11 Oppenheimer Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
------ ------------
<S> <C> <C> <C>
COMPUTER SYSTEMS Cabletron Systems, Inc.(2)(3) 12,500 $ 581,250
- --1.6%
Sun Microsystems, Inc.(2)(3) 35,900 1,274,450
Tandem Computers, Inc.(2)(3) 118,000 2,020,750
-----------
3,876,450
ELECTRONICS: Hewlett-Packard Co.(3) 29,000 2,896,375
INSTRUMENTATION--1.2%
ELECTRONICS: Intel Corp. 74,700 4,771,463
SEMICONDUCTORS--1.9%
OFFICE EQUIPMENT AND Xerox Corp. 37,000 3,663,000
SUPPLIES--1.5%
TELECOMMUNICATIONS Airtouch Communications, Inc.(2)(3) 45,500 1,325,188
- --3.1%
AT&T Corp. 24,000 1,206,000
ECI Telecommunications Ltd. 57,500 783,438
MCI Communications Corp. 108,000 1,984,500
Rogers Cantel Mobile Communications, Inc., Sub. Cl. B(2) 77,500 2,259,613
Technology Resources Industries 42,000 134,050
-----------
7,692,789
UTILITIES--3.0%
ELECTRIC COMPANIES Central Puerto SA, ADR(1) 5,000 123,742
- --1.0%
Korea Electric Power Co. 30,000 1,034,876
Verbund Oest Electriz 25,200 1,455,511
-----------
2,614,129
NATURAL GAS--0.4% Hong Kong & China Gas 619,200 1,000,382
TELEPHONE--1.6% BCE, Inc. 34,000 1,092,250
US West, Inc. 78,900 2,810,813
-----------
3,903,063
-----------
Total Common Stocks (Cost $174,710,285) 211,115,567
PREFERRED STOCKS--3.6%
Advanced Micro Devices, Inc., Depositary Cv. Exchangeable Preferred Shares
Each Representing 1/10th Share of $30 Cv. Exchangeable Preferred Shares 17,800 934,500
Alumax, Inc., $4.00 Cv., Series A 7,333 885,460
Chiquita Brands International, Inc., $1.32 Depositary Shares 45,000 618,750
Cyprus Amax Minerals Co., $4.00 Cv., Series A 20,666 1,206,377
Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C 36,300 1,588,125
FHP International Corp., Series A 91,900 2,251,550
First Chicago Corp., Debt Exchangeable for Common Stock
of Nextel Communications, Inc., 5.50%, 2/15/97 30,000 525,000
Sap AG 1,670 952,429
----------
Total Preferred Stocks (Cost $8,192,811) 8,962,191
</TABLE>
12 Oppenheimer Fund
<PAGE> 13
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
------------ ----------
<S> <C> <C>
TOTAL INVESTMENTS, AT VALUE (COST $211,629,945) 100.4% $248,573,946
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4) (1,027,908)
----- ------------
NET ASSETS 100.0% $247,546,038
====== ============
</TABLE>
1. Restricted security--See Note 5 of Notes to Financial Statements.
2. Non-income producing security.
3. Securities with an aggregate market value of $13,138,825 are held in escrow
to cover outstanding call options, as follows:
<TABLE>
<CAPTION>
SHARES EXPIRATION EXERCISE
SUBJECT TO CALL DATE PRICE
--------------- ---------- --------
<S> <C> <C> <C>
AirTouch Communications, Inc. 9,000 1/95 $ 30.00
American Express Co. 8,400 4/95 35.00
Amgen, Inc. 10,000 4/95 60.00
BMC Software, Inc. 9,600 5/95 60.00
Bankers Trust New York Corp. 5,600 1/95 70.00
Bay Networks, Inc. 10,800 3/95 30.00
CML Group, Inc. 17,000 1/95 12.50
Cabletron Systems, Inc. 2,500 1/95 48.00
Cabletron Systems, Inc. 1,000 4/95 50.00
Caesar's World, Inc. 7,600 2/95 50.00
Chiron Corp. 3,000 1/95 75.00
Chiron Corp. 4,000 4/95 80.00
Computer Associates International, Inc. 8,000 4/95 50.00
Empresas ICA Sociedad Controladora SA de C.V. 17,000 1/95 35.00
General Dynamics Corp. 6,500 2/95 45.00
General Dynamics Corp. 6,500 5/95 50.00
Genzyme Corp. 7,200 1/95 40.00
Hewlett-Packard Co. 6,000 5/95 105.00
Hewlett-Packard Co. 6,000 5/95 95.00
IMC Global, Inc. 6,200 4/95 45.00
Inland Steel Industries, Inc. 14,400 3/95 45.00
International Game Technology 5,200 1/95 25.00
Lilly (Eli) & Co. 6,000 4/95 60.00
Lotus Development Corp. 4,800 1/95 50.00
Lotus Development Corp. 7,400 1/95 50.00
Lotus Development Corp. 7,600 4/95 50.00
MGM Grand, Inc. 7,000 3/95 35.00
Mattel, Inc. 26,000 1/95 30.00
McDonnell Douglas Corp. 3,000 5/95 140.00
Microsoft Corp. 2,800 4/95 65.00
Mylan Laboratories, Inc. 10,400 4/95 30.00
Pyxis Corp. 11,400 4/95 30.00
Sun Microsystems, Inc. 8,200 1/95 30.00
Sun Microsystems, Inc. 8,200 4/95 35.00
Sun Microsystems, Inc. 2,600 7/95 40.00
Tandem Computers, Inc. 21,000 4/95 17.50
U.S. Healthcare, Inc. 20,000 1/95 45.00
U.S. Healthcare, Inc. 20,000 4/95 50.00
Upjohn Co. 5,000 1/95 40.00
Waban, Inc. 8,800 3/95 20.00
</TABLE>
<TABLE>
<CAPTION>
PREMIUM MARKET VALUE
RECEIVED SEE NOTE 1
-------- ------------
<S> <C> <C>
AirTouch Communications, Inc. $ 9,292 $ 3,375
American Express Co. 13,398 2,100
Amgen, Inc. 49,700 40,000
BMC Software, Inc. 36,959 48,000
Bankers Trust New York Corp. 25,031 350
Bay Networks, Inc. 23,975 30,375
CML Group, Inc. 18,615 2,125
Cabletron Systems, Inc. 4,845 2,344
Cabletron Systems, Inc. 4,220 2,688
Caesar's World, Inc. 26,371 133,000
Chiron Corp. 11,535 15,750
Chiron Corp. 26,879 4,500
Computer Associates International, Inc. 39,959 29,000
Empresas ICA Sociedad Controladora SA de C.V. 38,801 1,063
General Dynamics Corp. 15,648 8,125
General Dynamics Corp. 11,316 6,906
Genzyme Corp. 10,389 450
Hewlett-Packard Co. 37,319 30,000
Hewlett-Packard Co. 47,068 68,250
IMC Global, Inc. 18,413 17,050
Inland Steel Industries, Inc. 21,167 2,700
International Game Technology 9,919 325
Lilly (Eli) & Co. 26,069 46,500
Lotus Development Corp. 17,255 1,500
Lotus Development Corp. 23,827 463
Lotus Development Corp. 33,971 13,300
MGM Grand, Inc. 12,477 1,313
Mattel, Inc. 46,343 3,250
McDonnell Douglas Corp. 31,409 34,124
Microsoft Corp. 6,916 6,650
Mylan Laboratories, Inc. 19,187 13,650
Pyxis Corp. 40,982 10,687
Sun Microsystems, Inc. 12,566 48,175
Sun Microsystems, Inc. 14,104 28,700
Sun Microsystems, Inc. 4,959 6,175
Tandem Computers, Inc. 25,619 31,500
U.S. Healthcare, Inc. 58,148 5,000
U.S. Healthcare, Inc. 76,897 17,500
Upjohn Co. 7,975 625
Waban, Inc. 14,036 1,650
------ -----
$973,559 $719,238
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Fund
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES December 31, 1994
(Unaudited)
<TABLE>
<S> <C> <C>
ASSETS Investments, at value (including repurchase agreements of $27,000,000)
(cost $211,629,945)--see accompanying statement $248,573,946
Cash 35,423
Receivables:
Investments sold 1,331,209
Shares of beneficial interest sold 584,985
Interest and dividends 490,423
Other 49,780
------------
Total assets 251,065,766
LIABILITIES Options written, at value (premiums received $973,559)--
see accompanying statement--Note 4 719,238
Payables and other liabilities:
Distributions and dividends 1,356,418
Shares of beneficial interest redeemed 667,391
Investments purchased 425,727
Distribution and service plan fees--Note 6 112,988
Other 237,966
------------
Total liabilities 3,519,728
NET ASSETS $247,546,038
============
COMPOSITION OF Paid-in capital $205,376,592
NET ASSETS Undistributed (overdistributed) net investment income 1,316,642
Accumulated net realized gain (loss) from investment, written option
and foreign currency transactions 3,654,482
Net unrealized appreciation (depreciation) on investments, options written and
translation of assets and liabilities denominated in foreign currencies--Note 3 37,198,322
------------
Net assets $247,546,038
============
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets of $246,402,667 and
25,068,767 shares of beneficial interest outstanding) $9.83
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $10.43
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $1,143,371 and 117,362 shares of beneficial interest outstanding) $9.74
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Fund
<PAGE> 15
STATEMENT OF OPERATIONS For the Six Months Ended December
31, 1994 (Unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME Interest $ 716,006
Dividends (net of withholding taxes of $8,012) 1,713,658
-----------
Total income 2,429,664
EXPENSES Management fees--Note 6 933,819
Distribution and service plan fees:
Class A--Note 6 198,315
Class C--Note 6 3,123
Transfer and shareholder servicing agent fees--Note 6 175,381
Shareholder reports 169,019
Custodian fees and expenses 22,312
Trustees' fees and expenses 16,937
Legal and auditing fees 16,371
Registration and filing fees:
Class A 230
Class C 255
Other 106,731
-----------
Total expenses 1,642,493
NET INVESTMENT INCOME (LOSS) 787,171
REALIZED AND Net realized gain (loss) from:
UNREALIZED GAIN Investments 7,630,765
(LOSS) ON Closing and expiration of option contracts written--Note 4 649,386
INVESTMENTS, OPTIONS Foreign currency transactions 244,385
-----------
WRITTEN AND FOREIGN Net realized gain (loss) 8,524,536
CURRENCY TRANSACTIONS
Net change in unrealized appreciation or depreciation on:
Investments and options written (557,632)
Translation of assets and liabilities denominated in foreign currencies (15,330)
-----------
Net change (572,962)
-----------
Net realized and unrealized gain (loss) on investments, options written and
foreign currency transactions 7,951,574
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 8,738,745
===========
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Fund
<PAGE> 16
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, JUNE 30,
1994 (UNAUDITED) 1994
---------------- ----------
<S> <C> <C> <C>
OPERATIONS Net investment income (loss) $ 787,171 $ 1,591,019
Net realized gain (loss) on investments, options written and
foreign currency transactions 8,524,536 18,028,894
Net change in unrealized appreciation or depreciation on
investments, options written and translation of assets and
liabilities denominated in foreign currencies (572,962) (7,734,744)
------------- -------------
Net increase (decrease) in net assets resulting from operations 8,738,745 11,885,169
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.0214 and $.033 per share, respectively) (498,951) (665,882)
SHAREHOLDERS Class C ($.02 per share) -- (2)
Distributions from net realized gain
on investments, options written and
foreign currency transactions:
Class A ($1.0829 and $.4495 per share, respectively) (24,604,695) (9,068,819)
Class C ($1.0829 and $.4495 per share, respectively) (100,620) (41)
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions--Note 2 25,488,333 18,939,597
Net increase (decrease) in net assets resulting from Class C
beneficial interest transactions--Note 2 948,109 304,968
NET ASSETS Total increase (decrease) 9,970,921 21,394,990
Beginning of period 237,575,117 216,180,127
------------- -------------
End of period [including undistributed (overdistributed) net investment
income of $1,316,642 and $1,028,422, respectively] $ 247,546,038 $ 237,575,117
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Fund
<PAGE> 17
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1994 (UNAUDITED) 1994 1993 1992
---------------- ---- ---- ----
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 10.55 $10.41 $9.72 $9.31
Income (loss) from investment operations:
Net investment income .22 .07 .11 .16
Net realized and unrealized gain
(loss) on investments, options
written and foreign currency
transactions .35 .55 1.15 .84
------- ------- ------- -------
Total income (loss) from investment
operations .57 .62 1.26 1.00
Dividends and distributions to shareholders:
Dividends from net investment income (.21) (.03) (.10) (.32)
Distributions from net realized gain
on investments, options written
and foreign currency transactions (1.08) (.45) (.47) (.27)
------- ------- ------- -------
Total dividends and distributions
to shareholders (1.29) (.48) (.57) (.59)
Net asset value, end of period $9.83 $10.55 $10.41 $9.72
======= ======= ======= =======
TOTAL RETURN, AT NET ASSET VALUE(2) 3.68% 5.84% 13.33% 11.22%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $246,403 $237,281 $216,180 $209,495
Average net assets (in thousands) $248,369 $229,976 $212,660 $221,369
Number of shares outstanding at
end of period (in thousands) 25,069 22,485 20,769 21,555
Ratios to average net assets:
Net investment income .63%(3) .69% 1.05% 1.71%
Expenses 1.31%(3) 1.16% 1.10% 1.09%
Portfolio turnover rate(4) 17.7% 41.6% 35.6% 58.2%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
---------------------------
SIX MONTHS
ENDED DEC 31, PERIOD ENDED
1994 JUNE 30,
1991 1990 (UNAUDITED) 1994(1)
---- ---- ------------- ------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $9.06 $9.17 $10.49 $11.08
Income (loss) from investment operations:
Net investment income .26 .32 -- .02
Net realized and unrealized gain
(loss) on investments, options
written and foreign currency
transactions .69 .23 .33 (.14)
------- ------- ------- -------
Total income (loss) from investment
operations .95 .55 .33 (.12)
Dividends and distributions to shareholders:
Dividends from net investment income (.22) (.25) -- (.02)
Distributions from net realized gain
on investments, options written
and foreign currency transactions (.48) (.41) (1.08) (.45)
------- ------- ------- -------
Total dividends and distributions
to shareholders (.70) (.66) (1.08) (.47)
Net asset value, end of period $9.31 $9.06 $9.74 $10.49
======= ====== ======= =======
TOTAL RETURN, AT NET ASSET VALUE(2) 11.65% 6.04% 3.21% (1.24)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $202,509 $196,076 $1,143 $ 294
Average net assets (in thousands) $189,994 $206,259 $628 $ 108
Number of shares outstanding at
end of period (in thousands) 21,748 21,639 117 28
Ratios to average net assets:
Net investment income 2.91% 3.36% (.13)%(3) .05%(3)
Expenses 1.07% 1.04% 2.13%(3) 2.44%(3)
Portfolio turnover rate(4) 105.8% 79.5% 17.7% 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 six months ended December 31, 1994 were
$41,162,496 and $39,509,020, respectively.
See accompanying Notes to Financial Statements.
17 Oppenheimer Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT Oppenheimer Fund (the Fund) is registered under the
ACCOUNTING Investment Company Act of 1940, as amended, as a
POLICIES 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 using dealer-supplied valuations provided the
Manager is satisfied that the firm rendering the quotes
is reliable and that the quotes reflect current market
value, or under consistently applied procedures
established by the Board of Trustees to determine fair
value in good faith. 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.
Options are valued based upon the last sale price on the
principal exchange on which the option is traded or, in
the absence of any transactions that day, the value is
based upon the last sale 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. The market value of
the underlying securities is required to be at least 102%
of the resale price at the time of purchase. If the
seller of the agreement defaults and the value of the
collateral declines, or if the seller enters an
insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
ALLOCATION OF INCOME EXPENSES AND GAINS AND LOSSES.
Income, expenses (other than those attributable to a
specific class) and gains and losses are allocated daily
to each class of shares based upon the relative
proportion of net assets represented by such class.
Operating expenses directly attributable to a specific
class are charged against the operations of that class.
18 Oppenheimer Fund
<PAGE> 19
1. SIGNIFICANT FEDERAL INCOME TAXES. The Fund intends to continue to
ACCOUNTING comply with provisions of the Internal Revenue Code
POLICIES applicable to regulated investment companies and to
(CONTINUED) 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 $67,588 at December 31, 1994. No payments
have been made under the plan.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are reported on the
ex-dividends date.
CHANGE IN ACCOUNTING CLASSIFICATION OF DISTRIBUTIONS TO
SHAREHOLDERS. Net investment income (loss) and net
realized gain (loss) may differ for financial statement
and tax purposes primarily because of paydown gains and
losses and the recognition of certain foreign currency
gains (losses) as ordinary income (loss) for tax
purposes. The character of the distributions made during
the year from net investment income or net realized gains
may differ from their ultimate characterization for
federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts
are distributed may differ from the year that the income
or realized gain (loss) was recorded by the Fund.
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 $136,644, and an increase in
undistributed capital gain on investments of $510,565.
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 The Fund has authorized an unlimited number of no par
BENEFICIAL value shares of beneficial interest. Transactions in
INTEREST shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED DECEMBER 31, 1994 YEAR ENDED JUNE 30, 1994(1)
---------------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A:
Sold 2,994,004 $ 32,990,016 3,600,642 $ 39,529,238
Dividends and distributions reinvested 2,364,738 23,174,433 816,887 8,879,570
Redeemed (2,775,090) (30,676,116) (2,701,648) (29,469,211)
---------- ----------- ---------- -----------
Net increase 2,583,652 $ 25,488,333 1,715,881 $ 18,939,597
========== ============= ========== =============
Class C:
Sold 85,350 $ 916,540 29,766 $ 323,590
Dividends and distributions reinvested 8,876 86,189 -- --
Redeemed (4,914) (54,620) (1,716) (18,622)
---------- ----------- ---------- -----------
Net increase 89,312 $ 948,109 28,050 $ 304,968
========== ============= ========== =============
</TABLE>
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.
19 Oppenheimer Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
3. UNREALIZED GAINS At December 31, 1994, net unrealized appreciation on
AND LOSSES ON investments and options written of $37,198,322 was
INVESTMENTS AND composed of gross appreciation of $49,361,633, and gross
OPTIONS WRITTEN depreciation of $12,163,311.
4. OPTION ACTIVITY The Fund may buy and sell put and call options, or write
covered call options on portfolio securities in order to
produce incremental earnings or protect against changes
in the value of portfolio securities.
The Fund generally purchases put options or writes
covered call options to hedge against adverse movements
in the value of portfolio holdings. When an option is
written, the Fund receives a premium and becomes
obligated to sell or purchase the underlying security at
a fixed price, upon exercise of the option. The Fund
segregates assets to cover its obligations under option
contracts.
Options are valued daily based upon the last sale
price on the principal exchange on which the option is
traded and unrealized appreciation or depreciation is
recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an
option is exercised, the proceeds on sales for a written
call option, the purchase cost for a written put option,
or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or
paid.
In this report, securities segregated to cover
outstanding call options are noted in the Statement of
Investments. Shares subject to call, expiration date,
exercise price, premium received and market value are
detailed in a footnote to the Statement of Investments.
Options written are reported as a liability in the
Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund
gives up the opportunity for profit if the market price
of the security increases and the option is exercised.
The risk in writing a put option is that the Fund may
incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying
an option is that the Fund pays a premium whether or not
the option is exercised. The Fund also has the additional
risk of not being able to enter into a closing
transaction if a liquid secondary market does not exist.
Call option activity for the six months ended December
31, 1994 was as follows:
<TABLE>
<CAPTION>
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
--------- ---------
<S> <C> <C>
Options outstanding at June 30, 1994 2,727 $ 848,716
Options written 3,894 1,045,748
Options canceled in closing purchase transactions (1,020) (332,929)
Options expired prior to exercise (1,821) (519,636)
Options exercised (278) (68,340)
------ ----------
Options outstanding at December 31, 1994 3,502 $ 973,559
====== ==========
</TABLE>
5. RESTRICTED The Fund owns securities purchased in private placement
SECURITIES 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. Illiquid
and/or restricted securities, including those restricted
securities that are transferable under Rule 144A of the
Act are listed below.
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT DECEMBER 31, 1994
-------- ---------------- ------------- -----------------
<S> <C> <C> <C>
Central Puerto SA, ADR(1) 7/20/94--7/22/94 $31.81 $24.75
Turkiye Garanti Bankasi AS, Sponsored ADR(1) 7/21/94--7/25/94 $ 2.18 $ 2.53
Yukong Ltd., GDR(1) 9/30/94 $24.95 $15.75
Yukong Ltd., GDR(1) 10/19/94--12/23/94 $16.37 $15.00
</TABLE>
1. Transferable under Rule 144A of the Act.
20 Oppenheimer Fund
<PAGE> 21
6. MANAGEMENT FEES Management fees paid to the Manager were in accordance
AND OTHER with the investment advisory agreement with the Fund
TRANSACTIONS WITH which provides for an annual fee of .75% on the first
AFFILIATES $200 million of net assets with a reduction of .03% on
each $200 million thereafter to $800 million, and .60% on
net assets in excess of $800 million. The Manager has
agreed to reimburse the Fund if aggregate expenses (with
specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
For the six months ended December 31, 1994,
commissions (sales charges paid by investors) on sales of
Class A shares totaled $603,662, of which $134,877 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, 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, including amounts paid to brokers, dealers,
banks and other institutions. In addition, Class C shares
are subject to an asset-based sales charge of .75% of net
assets annually, to reimburse OFDI for sales commissions
paid from its own resources at the time of sale and
associated financing costs. In the event of termination
or discontinuance of the Class C plan, the Board of
Trustees may allow the Fund to continue payment of the
asset-based sales charge to OFDI for distribution
expenses incurred on Class C shares sold prior to
termination or discontinuance of the plan. During the six
months ended December 31, 1994, OFDI paid $2,134 to an
affiliated broker/dealer as reimbursement for Class A
personal service and maintenance expenses and retained
$3,127 as reimbursement for Class C sales commissions and
service fee advances, as well as financing costs.
21 Oppenheimer Fund
<PAGE> 22
OPPENHEIMER FUND
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, 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 Oppenheimer Shareholder Services
SHAREHOLDER
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
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.
22 Oppenheimer Fund
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
OppenheimerFunds offers over 35 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 1.8 million shareholder accounts
and more than $29 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.
<TABLE>
<CAPTION>
<S> <C> <C>
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund2 Oppenheimer Fund
Time Fund Value Stock Fund
Target Fund Gold &Special Minerals Fund
Growth Fund3
STOCK & BOND FUNDS Main Street Income &Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth &Income Fund
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High 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
Strategic Investment Grade Bond Fund
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(4) New Jersey Tax-Exempt Fund4
California Tax-Exempt Fund(4) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund4 Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Bond Fund
MONEY MARKET FUNDS Money Market Fund Cash Reserves
</TABLE>
1. The fee is waived for PhoneLink exchanges between
existing accounts. Exchange privileges are subject to change
or termination.
2. Formerly Global Bio-Tech Fund and Global Environment
Fund.
3. Formerly Special Fund.
4. Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203.
(C) Copyright 1995 Oppenheimer Management Corporation. All
rights reserved.
23 Oppenheimer Fund
<PAGE> 24
"HOW MAY I HELP YOU?"
As an OppenheimerFunds shareholder, some special privileges are available to
you. Whether it's automatic investment plans, informative newsletters and
hotlines, or ready account access, you can benefit from services designed to
make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get auto-mated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market infor-
mation. It also gives you the ability to make transactions using your touch-tone
phone. Of course, you can always speak with a Customer Service Representative
during business hours.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an indepen-dent, non-profit
organization made up of over 3,200 customer service management professionals
from around the country, hon-ored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[FIGURE NUMBER 9]
Photo of Jennifer Leonard
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
affect your investments
1-800-835-3104
RS0400.001.0295
[LOGO]
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
Bulk Rate
U.S. Postage
PAID
Permit No. 377
Hackensack, NJ
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