<PAGE> 1
[PHOTO]
OPPENHEIMER FUND
Semiannual Report December 31, 1996
"We have
some important
goals, so
our money
needs to
grow solidly
over time."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT THE POTENTIAL FOR SOLID GROWTH OVER TIME FROM
A HIGHLY DIVERSIFIED INVESTMENT.
HOW YOUR FUND IS MANAGED
Oppenheimer Fund seeks capital appreciation and income consistent with growth
in capital. The manager currently 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 he believes have excellent potential for growth. The
manager uses a "value" approach, which emphasizes undervalued companies; a
"contrarian" approach, which seizes opportunities in out-of-favor industries
believed to be poised for rebound; and a "growth" approach, which seeks
companies the manager believes have above-average growth rates.
The Fund's manager seeks balance from international stocks and income
from high yield stocks and bonds to help cushion the portfolio against
fluctuations in the U.S. stock market.
PERFORMANCE
Total returns for the six months ended 12/31/96 for Class A, B and C shares
were 9.39%, 8.81% and 8.92%, respectively, without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-,
5- and 10-year periods ended 12/31/96 were 12.56%, 11.86% and 10.87%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 11/1/95 were 13.21% and 15.01%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 12/1/93 were 17.46% and 13.71%,
respectively.(2)
OUTLOOK
"Despite a highly valued stock market, our long-term outlook is positive. We
believe the Fund is diversified enough to weather any unforeseen economic
changes with the potential for solid returns and lower-than-average risk."
Richard Rubinstein, Portfolio Manager
December 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER PAST PERFORMANCE DOES
NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. For more complete
information, please review the prospectus carefully before you invest.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 4/30/59. The Fund's maximum
sales charge rate for Class A shares was higher during a portion of some of the
periods shown, so that actual results would have been lower. Class B returns
include the applicable contingent deferred sales charge of 5% (1-year) and 4%
(since inception). Class C returns include the 1% contingent deferred sales
charge for the 1-year result. An explanation of the different performance
calculations is in the Fund's prospectus. Class B and Class C shares are
subject to an annual .75% asset-based sales charge.
2 Oppenheimer Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer Fund
Dear Shareholder,
As 1996 has drawn to a close, we can look back and say that the past year has
certainly been one for the record books. But it has not necessarily been easy
for the faint of heart. During the first five months of the year, the stock
market reported tremendous gains, thanks in part to strong corporate earnings,
low inflation and stabilized interest rates. However, on the trail of a
six-year bull market and with indices reporting all-time highs, many experts
felt a correction was inevitable.
The stock market volatility that jolted investors in June and July did
not come as a complete surprise, but remarkably enough, by the end of September
the stock market had rebounded and resumed its record-setting pace. During the
fourth quarter, the Dow passed 6,500, both the S&P 500 and the technology-laden
NASDAQ posted all-time highs, and the Russell 2000 came very close to hitting
record levels.
What does the new year have in store for the stock market and its
investors? Of course, no one can predict the events of 1997 with complete
accuracy. Instead, the experts rely on several economic indicators to offer
clues about the market's direction. For example, the rate of unemployment has
dropped to its lowest level in seven years and wage growth continues to make
gains. As a result, consumer confidence is at its highest level since 1989.
What these events suggest to many experts is the likelihood of higher
inflation in 1997, countered by a possible increase in short-term interest
rates. However, an opposing view is that economic growth will taper off
sufficiently early in the year, calming fears of rising inflation and interest
rate increases. Although the Federal Reserve appeared to agree with this
reasoning in the third and fourth quarters of 1996, this may not be true in the
future.
The one thing we can accurately predict is that, regardless of the
scenario, OppenheimerFunds will continue to monitor significant events and act
appropriately. To that end, we view our outlook for the market as cautiously
optimistic. Whichever direction interest rates move, we expect the market's
volatile trading pattern to continue in the coming months. But while our
watchword may be "caution," in the near term, we are still finding plenty of
attractive investment opportunities today, both in the United States and
abroad. We believe the correct approach is to carefully evaluate companies
based on individual merits, such as strong management, fundamental business
policies and long-term prospects for the future. Based on this strategy and the
resilient performance the stock market has demonstrated in the past, our
long-term view remains positive.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
January 22, 1997
3 Oppenheimer Fund
<PAGE> 4
Q + A
[PHOTO]
Q WHAT INVESTMENTS MADE POSITIVE
CONTRIBUTIONS TO PERFORMANCE?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW DID THE FUND PERFORM?
Oppenheimer Fund performed well over the period. Unlike many of its growth fund
competitors, Oppenheimer Fund includes a substantial inter-national equity
component to help cushion the portfolio against fluctuations in the U.S. stock
market. Of course, while foreign investments provide special opportunities,
they entail risks, such as foreign currency fluctuations.
WHAT ARE THE PRIMARY REASONS FOR THE FUND'S POSITIVE PERFORMANCE?
In addition to individual investments that performed well over the past six
months, our general approach to investing enhanced the overall value of the
Fund. Because our goal is to lower risk through a broadly diversified
portfolio, the Fund uses five different investment styles. This strategy offers
us the flexibility to choose from a wide range of investment opportunities that
we believe have the best performance potential.
Our technology and healthcare positions remained the strongest performers
overall. Technology stocks were successful during this period due to the
development of efficiency-enhancing products, such as software programs. Demand
for these innova-tions has been strong, largely because they can help lower
costs of the businesses that implement the systems, while also improving their
quality of service.
Healthcare companies benefited this period from renewed faith in the
industry. Looking back to 1992 and the advent of the Clinton administration,
the industry was clouded with concern about the effects of healthcare
legislation. As a result, share prices and valuations of healthcare companies
tumbled. At that time, we took advantage of
4 Oppenheimer Funds
<PAGE> 5
FACING PAGE
[PHOTO]
Top left: Richard Rubinstein,
Portfolio Manager with Robert
Doll, Executive VP, Director of
Equity Investments
[PHOTO]
Top right: Paul LaRocco, Member of Equity Investments Team
[PHOTO]
Bottom:Robert Doll
[PHOTO]
THIS PAGE
Top: Richard Rubinstein
[PHOTO]
Bottom:Bruce Bartlett, Member
of Equity Investments Team
A OUR
TECHNOLOGY
AND
HEALTHCARE
POSITIONS REMAINED
THE STRONGEST PERFORMERS OVERALL.
the low prices and established our positions based on the theory that many
solid companies would regain their stature. Today, the industry itself is
driving reform and the uncertainty has diminished. Consequently, we've seen
growth and evolution in these businesses, which have aided the Fund's
performance.(1)
DID ANY INVESTMENTS NEGATIVELY IMPACT THE FUND?
A particular area of underperformance was the telecommunications industry,
comprised of cable companies, cellular service businesses and long-distance
carriers. We attribute much of the lackluster performance in this period to
industry deregulation. While the endeavor was intended to foster increased
competition over the long term, the telecommunications industry is currently
struggling for profitability.
In addition, the Fund's international equity holdings contributed less
to the port-folio's total return than did the U.S. stock component. However,
this diversification helped the Fund maintain its lower-than-average risk
profile, which we believe is essential.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
Energy stocks are attractive investments that we continue to add to the
portfolio. However, for many reasons, international energy companies are
currently more appealing than their domestic counterparts. While U.S. companies
have been searching for additional energy reserves for years, in many parts of
the world, this process has just begun. Therefore, as domestic prospects for
new reserves dwindle, there remain numerous opportunities abroad.
WHAT IS YOUR OUTLOOK FOR THE FUND?
The outlook for future performance lies primarily in the individual stocks we
choose for the portfolio. While many stock prices currently appear overvalued,
there are still stocks of growing companies that remain at reasonable levels.
So, despite a highly valued stock market, our long-term outlook is positive. We
believe the Fund is diver-sified enough to weather any unforeseen economic
changes with the potential for solid returns and lower-than-average risk.
1. The Fund's portfolio is subject to change.
5 Oppenheimer Fund
<PAGE> 6
STATEMENT OF INVESTMENTS December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
=======================================================================================================================
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS--1.1%
- -----------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Past Due Interest Bonds, Series L,
6.625%, 3/31/05 (Cost $2,338,652)(1) $3,920,000 $3,412,850
=======================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.6%
- -----------------------------------------------------------------------------------------------------------------------
MEDIQ, Inc., 7.50% Exchangeable Sub. Debs., 7/15/03 (Cost $1,755,731) 1,850,000 1,720,500
<CAPTION>
SHARES
=======================================================================================================================
<S> <C> <C>
COMMON STOCKS--90.1%
- -----------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--5.2%
- -----------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.0%
Agrium, Inc. 140,000 1,925,000
----------------------------------------------------------------------------------------------------------------
Bayer AG, Sponsored ADR 136,000 5,541,973
----------------------------------------------------------------------------------------------------------------
Georgia Gulf Corp. 22,100 593,937
----------------------------------------------------------------------------------------------------------------
Great Lakes Chemical Corp. 16,500 771,375
------------
8,832,285
- -----------------------------------------------------------------------------------------------------------------------
METALS--1.2%
Alumax, Inc.(2) 26,059 869,719
----------------------------------------------------------------------------------------------------------------
Brush Wellman, Inc. 170,700 2,795,212
------------
3,664,931
- -----------------------------------------------------------------------------------------------------------------------
PAPER--1.0%
Aracruz Celulose SA, Sponsored ADR, Cl. B 190,000 1,567,500
----------------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 108,323 1,418,592
----------------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 4,900 63,700
------------
3,049,792
- -----------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--16.6%
- -----------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--1.1%
AutoZone, Inc.(2) 31,000 852,500
----------------------------------------------------------------------------------------------------------------
Chromcraft Revington, Inc.(2) 7,400 205,350
----------------------------------------------------------------------------------------------------------------
General Motors Corp.(3) 26,000 1,449,500
----------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 214,506 688,685
------------
3,196,035
- -----------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--8.7%
Alaska Air Group, Inc.(2) 97,000 2,037,000
----------------------------------------------------------------------------------------------------------------
AMR Corp.(2)(3) 27,900 2,458,687
----------------------------------------------------------------------------------------------------------------
Brinker International, Inc.(2) 58,900 942,400
----------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A 30,800 1,016,400
----------------------------------------------------------------------------------------------------------------
Choice Hotels International, Inc.(2) 30,770 542,321
----------------------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.(2) 23,500 807,812
----------------------------------------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 90,800 2,304,050
----------------------------------------------------------------------------------------------------------------
Disney (Walt) Co.(3) 10,400 724,100
----------------------------------------------------------------------------------------------------------------
Eastman Kodak Co.(3) 28,000 2,247,000
----------------------------------------------------------------------------------------------------------------
Gaylord Entertainment Co., Cl. A 47,000 1,075,125
----------------------------------------------------------------------------------------------------------------
International Game Technology 67,700 1,235,525
----------------------------------------------------------------------------------------------------------------
King World Productions, Inc.(2)(3) 56,500 2,083,437
----------------------------------------------------------------------------------------------------------------
Mattel, Inc.(3) 76,093 2,111,581
----------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 45,000 3,214,009
</TABLE>
6 Oppenheimer Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LEISURE & ENTERTAINMENT
(CONTINUED)
Outback Steakhouse, Inc.(2)(3) 23,400 $ 625,950
----------------------------------------------------------------------------------------------------------------
Shangri-La Asia Ltd. 725,000 1,073,207
----------------------------------------------------------------------------------------------------------------
Shimano, Inc. 82,000 1,391,746
------------
25,890,350
- -----------------------------------------------------------------------------------------------------------------------
MEDIA--3.0%
Comcast Corp., Cl. A Special 145,600 2,593,500
----------------------------------------------------------------------------------------------------------------
Dow Jones & Co., Inc. 40,000 1,355,000
----------------------------------------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 2,400,000 1,985,780
----------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 49,500 1,856,250
----------------------------------------------------------------------------------------------------------------
U S West Media Group(2) 65,000 1,202,500
------------
8,993,030
- -----------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.7%
Cone Mills Corp.(2) 295,000 2,323,125
----------------------------------------------------------------------------------------------------------------
Donna Karan International, Inc.(2) 70,500 995,812
----------------------------------------------------------------------------------------------------------------
Price/Costco, Inc.(2)(3) 73,100 1,836,637
------------
5,155,574
- -----------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--2.1%
General Nutrition Cos., Inc.(2) 77,000 1,299,375
----------------------------------------------------------------------------------------------------------------
Gymboree Corp.(2)(3) 75,500 1,727,062
----------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(2)(3) 86,000 2,580,000
----------------------------------------------------------------------------------------------------------------
Tractor Supply Co.(2) 28,800 594,000
------------
6,200,437
- -----------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--15.2%
- -----------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.7%
Guinness plc 182,000 1,426,330
----------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 22,000 643,500
------------
2,069,830
- -----------------------------------------------------------------------------------------------------------------------
FOOD--2.0%
Chiquita Brands International, Inc. 38,249 487,675
----------------------------------------------------------------------------------------------------------------
Groupe Danone 8,141 1,132,187
----------------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 40,000 2,140,428
----------------------------------------------------------------------------------------------------------------
Sara Lee Corp. 58,000 2,160,500
------------
5,920,790
- -----------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--5.9%
Abbott Laboratories 27,000 1,370,250
----------------------------------------------------------------------------------------------------------------
American Home Products Corp. 22,800 1,336,650
----------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 32,000 1,579,373
----------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co.(3) 36,000 3,915,000
----------------------------------------------------------------------------------------------------------------
Genzyme Corp.(2) 65,500 1,424,625
----------------------------------------------------------------------------------------------------------------
Johnson & Johnson 38,600 1,920,350
----------------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 79,600 1,333,300
----------------------------------------------------------------------------------------------------------------
Novartis AG(2) 2,480 2,831,445
----------------------------------------------------------------------------------------------------------------
SmithKline Beecham plc, ADR 25,600 1,740,800
------------
17,451,793
</TABLE>
7 Oppenheimer Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES &
SERVICES--2.8%
Alternative Living Services, Inc.(2) 50,000 $ 725,000
----------------------------------------------------------------------------------------------------------------
Biomet, Inc. 45,000 680,625
----------------------------------------------------------------------------------------------------------------
Integrated Health Services, Inc. 31,500 767,812
----------------------------------------------------------------------------------------------------------------
Manor Care, Inc.(3) 30,770 830,790
----------------------------------------------------------------------------------------------------------------
Medtronic, Inc.(3) 20,000 1,360,000
----------------------------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc.(2) 60,000 1,312,500
----------------------------------------------------------------------------------------------------------------
Sofamor Danek Group, Inc.(2)(3) 22,000 671,000
----------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(2)(3) 54,100 1,859,688
------------
8,207,415
- -----------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--1.7%
Duracell International, Inc. 17,600 1,229,800
----------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp.(3) 13,100 1,247,775
----------------------------------------------------------------------------------------------------------------
Procter & Gamble Co.(3) 15,400 1,655,500
----------------------------------------------------------------------------------------------------------------
Wella AG 1,750 925,470
------------
5,058,545
- -----------------------------------------------------------------------------------------------------------------------
TOBACCO--2.1%
Philip Morris Cos., Inc.(3) 54,300 6,115,538
- -----------------------------------------------------------------------------------------------------------------------
ENERGY--6.3%
- -----------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--1.1%
Kerr-McGee Corp.(3) 13,000 936,000
----------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc.(2) 29,000 870,000
----------------------------------------------------------------------------------------------------------------
Western Atlas, Inc.(2)(3) 20,000 1,417,500
------------
3,223,500
- -----------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--5.2%
Atlantic Richfield Co.(3) 19,500 2,583,750
----------------------------------------------------------------------------------------------------------------
Elan Energy, Inc.(2) 121,000 1,059,349
----------------------------------------------------------------------------------------------------------------
Enterprise Oil plc 118,000 1,305,786
----------------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co. 20,000 1,072,500
----------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co.(3) 9,500 1,622,125
----------------------------------------------------------------------------------------------------------------
Talisman Energy, Inc.(2) 19,000 632,108
----------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 52,680 2,120,370
----------------------------------------------------------------------------------------------------------------
Unocal Corp. 95,000 3,859,375
----------------------------------------------------------------------------------------------------------------
YPF SA, Cl. D, ADR 52,000 1,313,000
------------
15,568,363
- -----------------------------------------------------------------------------------------------------------------------
FINANCIAL--11.6%
- -----------------------------------------------------------------------------------------------------------------------
BANKS--7.8%
Akbank T.A.S. 2,661,250 359,810
----------------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 126,385 1,181,908
----------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New)(3) 100,000 8,925,000
----------------------------------------------------------------------------------------------------------------
Citicorp(3) 16,000 1,648,000
----------------------------------------------------------------------------------------------------------------
Deutsche Bank, Sponsored ADR 60,000 2,799,282
----------------------------------------------------------------------------------------------------------------
NationsBank Corp.(3) 72,200 7,057,550
----------------------------------------------------------------------------------------------------------------
PNC Bank Corp. 29,000 1,091,125
------------
23,062,675
</TABLE>
8 Oppenheimer Fund
<PAGE> 9
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL--2.0%
American Express Co.(3) 48,000 $ 2,712,000
----------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co.(3) 20,000 1,325,000
----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.(3) 9,700 1,068,213
----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 10,500 855,750
------------
5,960,963
- -----------------------------------------------------------------------------------------------------------------------
INSURANCE--1.8%
ACE Ltd. 27,000 1,623,375
----------------------------------------------------------------------------------------------------------------
American International Group, Inc.(3) 13,700 1,483,025
----------------------------------------------------------------------------------------------------------------
Skandia Forsakrings AB 40,000 1,130,634
----------------------------------------------------------------------------------------------------------------
UNUM Corp. 17,000 1,228,250
------------
5,465,284
- -----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--10.8%
- -----------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.1%
General Electric Co.(3) 31,600 3,124,450
- -----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--2.0%
Owens Corning 77,000 3,282,125
----------------------------------------------------------------------------------------------------------------
Rubbermaid, Inc. 33,000 750,750
----------------------------------------------------------------------------------------------------------------
Wolverine Tube, Inc.(2) 55,100 1,942,275
------------
5,975,150
- -----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.8%
Calgon Carbon Corp. 79,300 971,425
----------------------------------------------------------------------------------------------------------------
Ecolab, Inc. 35,400 1,331,925
------------
2,303,350
- -----------------------------------------------------------------------------------------------------------------------
MANUFACTURING--3.4%
AGCO Corp. 42,000 1,202,250
----------------------------------------------------------------------------------------------------------------
Citic Pacific Ltd. 160,000 928,766
----------------------------------------------------------------------------------------------------------------
Hutchison Whampoa Ltd. 132,000 1,036,717
----------------------------------------------------------------------------------------------------------------
Mannesmann AG 5,000 2,148,453
----------------------------------------------------------------------------------------------------------------
Tenneco, Inc. (New)(3) 83,000 3,745,375
----------------------------------------------------------------------------------------------------------------
Westinghouse Air Brake Co. 72,200 911,525
------------
9,973,086
- -----------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--3.5%
Airborne Freight Corp. 35,200 822,800
----------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 57,400 4,957,925
----------------------------------------------------------------------------------------------------------------
Canadian National Railway Co. 30,000 1,140,332
----------------------------------------------------------------------------------------------------------------
Newport News Shipbuilding, Inc.(2) 16,600 249,000
----------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA 116,000 2,189,500
----------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA, Sponsored ADR 58,000 1,087,500
------------
10,447,057
- -----------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--21.9%
- -----------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.8%
Boeing Co. 1,470 156,371
----------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 35,000 2,130,625
------------
2,286,996
</TABLE>
9 Oppenheimer Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE--4.1%
International Business Machines Corp.(3) 19,100 $ 2,884,100
----------------------------------------------------------------------------------------------------------------
Moore Corp. Ltd. 76,400 1,556,650
----------------------------------------------------------------------------------------------------------------
Optical Data Systems, Inc.(2) 63,800 765,600
----------------------------------------------------------------------------------------------------------------
Xerox Corp.(3) 135,000 7,104,375
------------
12,310,725
- -----------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--4.9%
America Online, Inc.(2) 37,840 1,258,180
----------------------------------------------------------------------------------------------------------------
American Software, Inc.(2) 50,000 318,750
----------------------------------------------------------------------------------------------------------------
Business Objects SA, Sponsored ADR(2) 45,100 608,850
----------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc.(3) 66,150 3,290,963
----------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(2)(3) 43,800 1,311,263
----------------------------------------------------------------------------------------------------------------
Inference Corp., Cl. A(2) 112,500 815,625
----------------------------------------------------------------------------------------------------------------
Microsoft Corp.(2)(3) 19,600 1,619,450
----------------------------------------------------------------------------------------------------------------
Novell, Inc.(2) 287,000 2,717,531
----------------------------------------------------------------------------------------------------------------
Sabre Group Holdings, Inc.(2) 23,000 641,125
----------------------------------------------------------------------------------------------------------------
Symantec Corp.(2)(3) 128,340 1,860,930
------------
14,442,667
- -----------------------------------------------------------------------------------------------------------------------
ELECTRONICS--8.9%
Cypress Semiconductor Corp.(2) 68,000 960,500
----------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 14,500 815,625
----------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 71,500 3,592,875
----------------------------------------------------------------------------------------------------------------
Input/Output, Inc.(2) 53,000 980,500
----------------------------------------------------------------------------------------------------------------
Intel Corp.(3) 119,800 15,686,313
----------------------------------------------------------------------------------------------------------------
Kyocera Corp. 17,000 1,057,465
----------------------------------------------------------------------------------------------------------------
LSI Logic Corp.(2)(3) 50,700 1,356,225
----------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR(3) 25,000 1,440,625
----------------------------------------------------------------------------------------------------------------
Proxima Corp.(2) 50,400 648,900
------------
26,539,028
- -----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--3.2%
Airtouch Communications, Inc.(2) 65,500 1,653,875
----------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(2) 18,300 1,164,338
----------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd.(3) 66,000 1,402,500
----------------------------------------------------------------------------------------------------------------
Kinnevik Investments AB Free, Series B 31,500 867,308
----------------------------------------------------------------------------------------------------------------
MCI Communications Corp.(3) 110,000 3,595,625
----------------------------------------------------------------------------------------------------------------
Newbridge Networks Corp.(2) 28,000 791,000
------------
9,474,646
- -----------------------------------------------------------------------------------------------------------------------
UTILITIES--2.5%
- -----------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.6%
Public Service Enterprise Group, Inc. 30,000 817,500
----------------------------------------------------------------------------------------------------------------
Verbund Oest Electriz 13,000 972,043
------------
1,789,543
</TABLE>
10 Oppenheimer Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
GAS UTILITIES--0.6%
El Paso Natural Gas Co. 7,719 $ 389,810
----------------------------------------------------------------------------------------------------------------
Southwestern Energy Co. 92,000 1,391,500
------------
1,781,310
- -----------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.3%
BCE, Inc.(3) 28,900 1,379,975
----------------------------------------------------------------------------------------------------------------
U S West Communications Group 80,000 2,580,000
------------
3,959,975
------------
Total Common Stocks (Cost $178,170,332) 267,495,113
=======================================================================================================================
PREFERRED STOCKS--0.4%
- -----------------------------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A (Cost $1,094,500) 20,666 1,108,214
<CAPTION>
UNITS
=======================================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- -----------------------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. Wts., Exp. 9/97 (Cost $19,691) 74,304 41,307
<CAPTION>
FACE
AMOUNT
=======================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--9.1%
- -----------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 6.52%,
dated 12/31/96, to be repurchased at $26,909,744 on 1/2/97,
collateralized by U.S. Treasury Nts., 5.50%--7.50%, 7/15/99--8/15/05,
with a value of $27,516,762 (Cost $26,900,000) $26,900,000 26,900,000
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $210,278,906) 101.3% 300,677,984
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.3) (3,977,303)
------------- -------------
NET ASSETS 100.0% $296,700,681
============= =============
</TABLE>
1. Represents the current interest rate for a variable rate security.
2. Non-income producing security.
11 Oppenheimer Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
3. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
American Express Co. 9,600 7/97 $ 60 $ 14,712 $ 32,400
- ------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 2,600 2/97 100 9,347 25,675
- ------------------------------------------------------------------------------------------------------------------
AMR Corp. 4,800 1/97 95 12,456 3,000
- ------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 3,800 7/97 145 8,198 8,788
- ------------------------------------------------------------------------------------------------------------------
BCE, Inc. 5,600 6/97 50 5,782 10,150
- ------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 9,000 3/97 120 17,729 18,000
- ------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 18,500 3/97 80 71,130 222,000
- ------------------------------------------------------------------------------------------------------------------
Citicorp 3,200 1/97 90 15,103 47,600
- ------------------------------------------------------------------------------------------------------------------
Citicorp 3,200 4/97 115 8,704 8,200
- ------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 13,200 1/97 55 42,503 7,425
- ------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 13,200 1/97 60 62,302 2,475
- ------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 4,000 4/97 70 8,674 11,250
- ------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 4,000 7/97 70 12,880 18,000
- ------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 2,000 7/97 80 4,940 3,750
- ------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 11,200 7/97 90 33,963 25,200
- ------------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd. 11,500 2/97 25 21,217 5,750
- ------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 6,600 6/97 45 18,493 7,013
- ------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 13,800 6/97 40 30,635 22,425
- ------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 9,600 3/97 30 34,511 31,200
- ------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 1,800 4/97 115 7,821 9,900
- ------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 1,800 7/97 120 10,521 13,050
- ------------------------------------------------------------------------------------------------------------------
General Electric Co. 6,200 3/97 110 19,188 10,075
- ------------------------------------------------------------------------------------------------------------------
General Motors Corp. 6,000 3/97 60 8,820 5,625
- ------------------------------------------------------------------------------------------------------------------
Gymboree Corp. 12,000 1/97 35 16,139 --
- ------------------------------------------------------------------------------------------------------------------
Intel Corp. 22,000 1/97 90 68,088 915,750
- ------------------------------------------------------------------------------------------------------------------
Intel Corp. 11,200 4/97 135 122,276 276,000
- ------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 3,800 4/97 175 21,735 13,300
- ------------------------------------------------------------------------------------------------------------------
Kerr-McGee Corp. 2,600 7/97 75 5,122 7,475
- ------------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp. 2,600 7/97 100 12,597 12,350
- ------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. 11,200 5/97 40 16,463 14,700
- ------------------------------------------------------------------------------------------------------------------
LSI Logic Corp. 10,000 7/97 35 27,199 17,500
- ------------------------------------------------------------------------------------------------------------------
Manor Care, Inc. 6,000 4/97 40 8,070 34,500
- ------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 15,200 7/97 35 15,693 11,400
- ------------------------------------------------------------------------------------------------------------------
MCI Communications Corp. 22,000 7/97 33 46,088 60,500
- ------------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 4,000 2/97 55 12,880 57,500
- ------------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 11,200 5/97 70 15,879 16,000
- ------------------------------------------------------------------------------------------------------------------
Microsoft Corp. 19,600 1/97 63 87,903 396,900
- ------------------------------------------------------------------------------------------------------------------
NationsBank Corp. 14,400 2/97 90 75,165 138,600
- ------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 5,000 4/97 45 13,600 65,625
- ------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 5,000 4/97 60 17,349 17,500
- ------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc. 23,400 5/97 30 46,096 29,250
- ------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 10,800 6/97 110 48,274 106,650
- ------------------------------------------------------------------------------------------------------------------
Price/Costco, Inc. 14,600 4/97 25 17,811 30,113
- ------------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 3,000 7/97 115 9,660 13,500
- ------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 1,800 7/97 175 11,421 14,625
- ------------------------------------------------------------------------------------------------------------------
Sofamor Danek Group, Inc. 2,400 3/97 30 11,028 8,400
- ------------------------------------------------------------------------------------------------------------------
Symantec Corp. 25,600 4/97 18 28,031 28,800
- ------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. (New) 20,000 8/97 50 31,899 32,500
- ------------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. 14,000 3/97 35 14,455 5,250
- ------------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. 13,800 6/97 40 21,148 6,900
- ------------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. 10,800 7/97 35 37,475 39,150
- ------------------------------------------------------------------------------------------------------------------
Western Atlas, Inc. 4,000 6/97 70 21,378 23,500
- ------------------------------------------------------------------------------------------------------------------
Xerox Corp. 22,000 1/97 55 46,703 9,624
------------- -------------
$1,407,254 $2,952,813
============= =============
</TABLE>
12 Oppenheimer Fund
<PAGE> 13
STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 (Unaudited)
<TABLE>
==========================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $210,278,906)--see accompanying statement $300,677,984
--------------------------------------------------------------------------------------------------
Cash 370,527
--------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 542,994
Investments sold 277,118
Shares of beneficial interest sold 89,942
--------------------------------------------------------------------------------------------------
Other 16,788
------------
Total assets 301,975,353
==========================================================================================================
LIABILITIES
Options written, at value (premiums received $1,407,254)--
see accompanying statement--Note 5 2,952,813
---------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 798,538
Dividends 686,657
Investments purchased 441,340
Trustees' fees 128,225
Distribution and service plan fees 94,977
Transfer and shareholder servicing agent fees 18,519
Other 153,603
------------
Total liabilities 5,274,672
==========================================================================================================
NET ASSETS $296,700,681
============
==========================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $199,408,148
--------------------------------------------------------------------------------------------------
Overdistributed net investment income (114,901)
--------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 8,554,082
--------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 88,853,352
--------------------------------------------------------------------------------------------------
Net assets $296,700,681
============
==========================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $288,886,257
and 24,096,040 shares of beneficial interest outstanding) $11.99
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $12.72
--------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $3,005,220 and 252,460 shares of beneficial interest outstanding) $11.90
--------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $4,809,204 and 407,995 shares of beneficial interest outstanding) $11.79
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Fund
<PAGE> 14
Statement of Operations For the Six Months Ended December 31, 1996
(Unaudited)
<TABLE>
==========================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends $ 1,878,237
--------------------------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $30,495) 992,462
------------
Total income 2,870,699
==========================================================================================================
EXPENSES
Management fees--Note 4 1,055,890
--------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 173,670
Class B 11,099
Class C 21,797
--------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 194,692
--------------------------------------------------------------------------------------------------
Shareholder reports 96,063
--------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 33,687
--------------------------------------------------------------------------------------------------
Custodian fees and expenses 22,640
--------------------------------------------------------------------------------------------------
Legal and auditing fees 19,014
--------------------------------------------------------------------------------------------------
Insurance expenses 9,879
--------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 62
Class B 427
Class C 237
--------------------------------------------------------------------------------------------------
Other 45,058
------------
Total expenses 1,684,215
==========================================================================================================
NET INVESTMENT INCOME 1,186,484
==========================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain on:
Investments 12,509,348
Closing of options written 729,110
Foreign currency transactions 286,526
------------
Net realized gain 13,524,984
--------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 11,422,135
------------
Translation of assets and liabilities denominated in foreign currencies (659,362)
Net change 10,762,773
Net realized and unrealized gain 24,287,757
==========================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $25,474,241
============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Fund
<PAGE> 15
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1996 JUNE 30,
(UNAUDITED) 1996
================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 1,186,484 $ 4,317,646
--------------------------------------------------------------------------------------------------------
Net realized gain 13,524,984 22,794,882
--------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 10,762,773 16,879,025
------------- -------------
Net increase in net assets resulting from operations 25,474,241 43,991,553
================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (5,383,563) (2,763,277)
Class B (42,272) (1,333)
Class C (54,796) (19,415)
--------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (22,631,185) (20,559,886)
Class B (231,368) (10,043)
Class C (383,066) (287,511)
================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A 18,805,861 (17,324,834)
Class B 1,424,220 1,639,742
Class C 788,411 1,733,727
================================================================================================================
NET ASSETS
Total increase 17,766,483 6,398,723
--------------------------------------------------------------------------------------------------------
Beginning of period 278,934,198 272,535,475
------------- -------------
End of period [including undistributed (overdistributed) net
investment income of $(114,901) and $4,179,246, respectively] $296,700,681 $278,934,198
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Fund
<PAGE> 16
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
SIX MONTHS
ENDED
DEC. 31, 1996 YEAR ENDED JUNE 30,
(UNAUDITED) 1996 1995 1994
==============================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.14 $11.34 $10.55 $10.41
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .06 .20 .31 .07
Net realized and unrealized gain (loss) 1.06 1.69 1.58 .55
-------- -------- -------- --------
Total income (loss) from
investment operations 1.12 1.89 1.89 .62
- --------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.24) (.13) (.02) (.03)
Distributions from net realized gain (1.03) (.96) (1.08) (.45)
-------- -------- -------- --------
Total dividends and distributions
to shareholders (1.27) (1.09) (1.10) (.48)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.99 $12.14 $11.34 $10.55
======== ======== ======== ========
==============================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 9.39% 17.56% 19.60% 5.84%
==============================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $288,886 $273,194 $270,381 $237,281
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $276,924 $270,211 $254,011 $229,976
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.85%(4) 1.59% 1.10% 0.69%
Expenses 1.16%(4) 1.26% 1.29% 1.16%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 20.3% 29.7% 34.1% 41.6%
Average brokerage commission rate(6) $0.0370 $0.0324 -- --
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to June 30,
1994.
2. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
16 Oppenheimer Fund
<PAGE> 17
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
- -------------------------- -------------------------- ----------------------------------------------------------
SIX MONTHS PERIOD SIX MONTHS
ENDED ENDED ENDED YEAR ENDED
DEC. 31, 1996 JUNE 30, DEC. 31, 1996 JUNE 30,
1993 1992 (UNAUDITED) 1996(2) (UNAUDITED) 1996 1995 1994(1)
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.72 $9.31 $12.07 $11.85 $11.92 $11.19 $10.49 $11.08
- ---------------------------------------------------------------------------------------------------------------------------
.11 .16 .02 .14 .01 .07 .03 .02
1.15 .84 1.03 1.17 1.04 1.69 1.75 (.14)
- -------- -------- -------- -------- -------- -------- -------- --------
1.26 1.00 1.05 1.31 1.05 1.76 1.78 (.12)
- ---------------------------------------------------------------------------------------------------------------------------
(.10) (.32) (.19) (.13) (.15) (.07) -- (.02)
(.47) (.27) (1.03) (.96) (1.03) (.96) (1.08) (.45)
- -------- -------- -------- -------- -------- -------- -------- --------
(.57) (.59) (1.22) (1.09) (1.18) (1.03) (1.08) (.47)
- ---------------------------------------------------------------------------------------------------------------------------
$10.41 $9.72 $11.90 $12.07 $11.79 $11.92 $11.19 $10.49
======== ======== ======== ======== ======== ======== ======== ========
===========================================================================================================================
13.33% 11.22% 8.81% 11.86% 8.92% 16.51% 18.57% (1.24)%
===========================================================================================================================
$216,180 $209,495 $3,005 $1,655 $4,809 $4,086 $2,154 $294
- ---------------------------------------------------------------------------------------------------------------------------
$212,660 $221,369 $2,215 $ 649 $4,332 $3,491 $1,100 $108
- ---------------------------------------------------------------------------------------------------------------------------
1.05% 1.71% (0.04)%(4) 0.74%(4) (0.03)%(4) 0.75% 0.48% 0.05%(4)
1.10% 1.09% 2.07%(4) 2.13%(4) 2.04%(4) 2.15% 2.20% 2.44%(4)
- ---------------------------------------------------------------------------------------------------------------------------
35.6% 58.2% 20.3% 29.7% 20.3% 29.7% 34.1% 41.6%
-- -- $0.0370 $0.0324 $0.0370 $0.0324 -- --
</TABLE>
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended December 31, 1996 were $52,629,083 and $54,050,427,
respectively.
6. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
17 Oppenheimer Fund
<PAGE> 18
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 objective is to seek capital
appreciation through investment in common stocks that offer growth
potential. The Fund's investment adviser is OppenheimerFunds, Inc. (the
Manager). The Fund offers Class A, Class B and Class C shares. Class A
shares are sold with a front-end sales charge. Class B and Class C
shares may be subject to a contingent deferred sales charge. All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own distribution and/or
service plan, expenses directly attributable to a particular class and
exclusive voting rights with respect to matters affecting a single
class. The following is a summary of significant accounting policies
consistently followed by the Fund.
-----------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of
the New York Stock Exchange on each trading day. Listed and unlisted
securities for which such information is regularly reported are valued
at the last sale price of the day or, in the absence of sales, at values
based on the closing bid or the last sale price on the prior trading
day. Long-term and short-term "non-money market" debt securities are
valued by a portfolio pricing service approved by the Board of Trustees.
Such securities which cannot be valued by the approved portfolio pricing
service are valued using dealer-supplied valuations provided the Manager
is satisfied that the firm rendering the quotes is reliable and that the
quotes reflect current market value, or are valued under consistently
applied procedures established by the Board of Trustees to determine
fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at
cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. Forward foreign currency exchange
contracts are valued based on the closing prices of the forward currency
contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. Options are valued based upon
the last sale price on the principal exchange on which the option is
traded or, in the absence of any transactions that day, the value is
based upon the last sale price on the prior trading date if it is within
the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid 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 effect of changes in foreign currency exchange rates is
separately identified from the fluctuations arising from changes in
market values of securities held and reported with all other foreign
currency gains and losses in the Fund's Statement of Operations.
-----------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take
possession, to have legally segregated in the Federal Reserve Book Entry
System or to have segregated within the custodian's vault, all
securities held as collateral for repurchase agreements. The market
value of the underlying securities is required to be at least 102% of
the resale price at the time of purchase. If the seller of the agreement
defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
-----------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses
(other than those attributable to a specific class) and gains and losses
are allocated daily to each class of shares based upon the relative
proportion of net assets represented by such class. Operating expenses
directly attributable to a specific class are charged against the
operations of that class.
-----------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income, including any net realized
gain on investments not offset by loss carryovers, to shareholders.
Therefore, no federal income or excise tax provision is required.
-----------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement
plan for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during the years of service.
During the six months ended December 31, 1996, a provision of $15,355
was made for the Fund's projected benefit obligations and no payments
were made to retired trustees, resulting in an accumulated liability of
$118,165 at December 31, 1996.
18 Oppenheimer Fund
<PAGE> 19
===============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are reported on the ex-dividend date.
-----------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement
and tax purposes primarily because of the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment
income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gain (loss) was
recorded by the Fund.
-----------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date) and dividend income is
recorded on the ex-dividend date. Discount on securities purchased is
amortized over the life of the respective securities, in accordance with
federal income tax requirements. Realized gains and losses on
investments and unrealized appreciation and depreciation are determined
on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from
those estimates.
- -------------------------------------------------------------------------------
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were
as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED DECEMBER 31, 1996 YEAR ENDED JUNE 30, 1996(1)
---------------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------
<S> <S> <C> <C> <C>
Class A:
Sold 548,851 $ 6,868,756 2,083,446 $ 24,678,546
Dividends and distributions reinvested 2,169,312 25,662,961 1,924,123 21,357,698
Redeemed (1,117,535) (13,725,856) (5,349,170) (63,361,078)
------------- ------------- ------------- -------------
Net increase (decrease) 1,600,628 $ 18,805,861 (1,341,601) $(17,324,834)
============= ============= ============= =============
-----------------------------------------------------------------------------------------------------------------
Class B:
Sold 127,439 $ 1,584,240 215,151 $ 2,550,547
Dividends and distributions reinvested 16,856 198,064 1,026 11,365
Redeemed (28,922) (358,084) (79,090) (922,170)
------------- ------------- ------------- -------------
Net increase 115,373 $ 1,424,220 137,087 $ 1,639,742
============= ============= ============= =============
-----------------------------------------------------------------------------------------------------------------
Class C:
Sold 63,332 $ 774,343 238,989 $ 2,774,056
Dividends and distributions reinvested 34,985 406,877 26,363 288,410
Redeemed (32,994) (392,809) (115,207) (1,328,739)
------------- ------------- ------------- -------------
Net increase 65,323 $ 788,411 150,145 $ 1,733,727
============= ============= ============= =============
</TABLE>
1. For the year ended June 30, 1996, for Class A and Class C shares, and
for the period from November 1, 1995 (inception of offering) to June
30, 1996 for Class B shares.
19 Oppenheimer Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
===============================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS AND
OPTIONS WRITTEN
At December 31, 1996, net unrealized appreciation on investments and
options written of $88,853,519 was composed of gross appreciation of
$96,808,591, and gross depreciation of $7,955,072.
===============================================================================
4. 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 a fee of
0.75% on the first $200 million of average annual net assets with a
reduction of 0.03% on each $200 million thereafter to $800 million, and
0.60% on net assets in excess of $800 million. The Manager has agreed to
reimburse the Fund if aggregate expenses (with specified exceptions)
exceed the most stringent applicable regulatory limit on Fund expenses.
For the six months ended December 31, 1996, commissions (sales
charges paid by investors) on sales of Class A shares totaled $89,994,
of which $30,590 was retained by OppenheimerFunds Distributor, Inc.
(OFDI), a subsidiary of the Manager, as general distributor, and by an
affiliated broker/dealer. Sales charges advanced to broker/dealers by
OFDI on sales of the Fund's Class B and Class C shares totaled $32,223
and $6,651, of which $3,023 was paid to an affiliated broker/dealer for
Class B. During the six months ended December 31, 1996, OFDI received
contingent deferred sales charges of $1,390, upon redemption of Class B
shares as reimbursement for sales commissions advanced by OFDI at the
time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund, and for
other registered investment companies. OFS's total costs of providing
such services are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not
exceed 0.25% of the average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse brokers, dealers, banks and
other financial institutions quarterly for providing personal service
and maintenance of accounts of their customers that hold Class A shares.
During the six months ended December 31, 1996, OFDI paid $3,030 to an
affiliated broker/dealer as reimbursement for Class A personal service
and maintenance expenses.
The Fund has adopted a compensation type Distribution and
Service Plan for Class B shares to compensate OFDI for its services and
costs in distributing Class B shares and servicing accounts. Under the
Plan, the Fund pays OFDI an annual asset-based sales charge of 0.75% per
year on Class B shares. OFDI also receives a service fee of 0.25% per
year to compensate dealers for providing personal services for accounts
that hold Class B shares. Both fees are computed on the average annual
net assets of Class B shares, determined as of the close of each regular
business day. During the six months ended December 31, 1996, OFDI
retained $10,671 as compensation for Class B sales commissions and
service fee advances, as well as financing costs. If the Plan is
terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was terminated. As of December 31,
1996, OFDI had incurred unreimbursed expenses of $85,841 for Class B.
The Fund has adopted a reimbursement type Distribution and
Service Plan for Class C shares to reimburse OFDI for its services and
costs in distributing Class C shares and servicing accounts. Under the
Plan, the Fund pays OFDI an annual asset-based sales charge of 0.75% per
year on Class C shares. OFDI also receives a service fee of 0.25% per
year to reimburse dealers for providing personal services for accounts
that hold Class C shares. Both fees are computed on the average annual
net assets of Class C shares, determined as of the close of each regular
business day. During the six months ended December 31, 1996, OFDI
retained $8,752 as reimbursement for Class C sales commissions and
service fee advances, as well as financing costs. If the Plan is
terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was terminated. As of December 31,
1996, OFDI had incurred unreimbursed expenses of $63,248 for Class C.
20 Oppenheimer Fund
<PAGE> 21
===============================================================================
5. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered
call options on portfolio securities in order to produce incremental
earnings or protect against changes in the value of portfolio
securities.
The Fund generally purchases put options or writes covered
call options to hedge against adverse movements in the value of
portfolio holdings. When an option is written, the Fund receives a
premium and becomes obligated to sell or purchase the underlying
security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the
principal exchange on which the option is traded and unrealized
appreciation or depreciation is recorded. The Fund will realize a gain
or loss upon the expiration or closing of the option transaction. When
an option is exercised, the proceeds on sales for a written call option,
the purchase cost for a written put option, or the cost of the security
for a purchased put or call option is adjusted by the amount of premium
received or paid.
Securities designated to cover outstanding call options are
noted in the Statement of Investments where applicable. Shares subject
to call, expiration date, exercise price, premium received and market
value are detailed in a footnote to the Statement of Investments.
Options written are reported as a liability in the Statement of Assets
and Liabilities. Gains and losses are reported in the Statement of
Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and
the option is exercised. The risk in writing a put option is that the
Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund
pays a premium whether or not the option is exercised. The Fund also has
the additional risk of not being able to enter into a closing
transaction if a liquid secondary market does not exist.
Written option activity for the year ended December 31, 1996 was as
follows:
<TABLE>
<CAPTION>
CALL OPTIONS
-------------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
----------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at June 30, 1996 4,578 $1,234,581
----------------------------------------------------------------------------------------
Options written 5,557 1,488,929
----------------------------------------------------------------------------------------
Options closed or expired (3,982) (986,030)
----------------------------------------------------------------------------------------
Options exercised (1,005) (330,226)
------ ----------
Options outstanding at December 31, 1996 5,148 $1,407,254
====== ==========
</TABLE>
21 Oppenheimer Fund
<PAGE> 22
OPPENHEIMER FUND
===============================================================================
OFFICERS AND TRUSTEES
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Richard Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
===============================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
===============================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
===============================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
===============================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
The Bank of New York
===============================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
===============================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the
records of the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Fund. This
report must be preceded or accompanied by a Prospectus of Oppenheimer
Fund. For material information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank,
are not guaranteed by any bank, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of
the principal amount invested.
22 Oppenheimer Fund
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 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 35 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 3 million
shareholder accounts and more than $60 billion under
OppenheimerFunds' management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by
telephone.(1) For more information on Oppenheimer funds,
please contact your financial adviser 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>
================================================================================
<S> <C> <C>
STOCK FUNDS Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Capital Appreciation Fund(3)
================================================================================
STOCK & BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth
Fund
Global Growth & Income Fund Bond Fund for Growth
================================================================================
BONDS FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
================================================================================
MUNICIPAL
FUNDS California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York
Municipal Fund
================================================================================
MONEY MARKET
FUNDS(5) Money Market Fund Cash Reserves
================================================================================
LIFESPAN Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. Available only to investors in certain states.
5. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance
that a money market fund will be able to maintain a stable net
asset value of $1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
</TABLE>
23 OppenheimerFund
<PAGE> 24
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
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
RS0400.001.1296 February 28, 1997
[PHOTO]
CUSTOMER SERVICE REPRESENTATIVE
OPPENHEIMERFUNDS SERVICES
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ---------------------------------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
- ---------------------------------------------
