<PAGE>
OPPENHEIMER SPECIAL FUND
SEMI-ANNUAL REPORT DECEMBER 31, 1993
[LOGO]
"I WANT HER TO HAVE EVERYTHING MY PARENTS GAVE ME.
"THIS FUND GIVES US THE POTENTIAL FOR THE KIND OF LONG-TERM GROWTH WE NEED."
[GRAPHIC]
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FUND FACTS
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Five Facts Every Shareholder Should Know About
Oppenheimer Special Fund
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1 The Fund seeks long-term capital appreciation
In this report: from a portfolio of common stocks issued by
established growth companies believed to possess
Answers to three better-than-expected earnings, but are selling at
timely questions you below-normal prices.
should ask your
Fund's managers,
---------------------------------------------------------
/ / How do you 2 The Fund provided Class A shareholders with a
think stronger total return at net asset value of 4.18% for the
economic growth and six months ended December 31, 1993, and 2.72% for
the fear of somewhat the 12 months ended on that date.(1)
higher interest rates
affect the Fund's
financial services
holdings?
---------------------------------------------------------
/ / Does the 3 The Fund ranks in the top quartile of all
prospect of healthcare mutual funds ranked by Lipper for the latest
reform affect the 5-year period.(2)
Fund's Investment
strategy?
---------------------------------------------------------
/ / What kind of 4. The top five stock holdings in the portfolio at
stocks did the December 31 were: (3).
managers avoid? U.S. HEALTHCARE, INC. An established East Coast
health maintenance organization (HMO).
INTEL CORP. The premier producer of semiconductor
chips for the computer industry.
CORDIS CORP. A leading developer of diagnostic
and therapeutic devices for coronary conditions.
CONSECO, INC. A holding company that acquires,
owns, and operates annuity and life insurance
companies.
PRIMERICA CORP. A diversified financial services
firm.
---------------------------------------------------------
"While many of the companies in which the Fund
invests are familiar, many share a
characteristic that is less well-known: they are
GLOBAL companies with strong positions in
fast-growing markets outside the U.S. While less
than a tenth of the Fund's net assets is invested
outside the U.S., more than half the earnings of
the companies in the portfolio were produced
offshore."
PORTFOLIO MANAGER, BOB DOLL,
DECEMBER 31, 1993
1. Based on the change in net asset value per Class A share from 6/30/93 and
12/31/92 to 12/31/93. The Fund's average annual total returns, after deducting
the current maximum sales charge of 5.75%, for the 1-, 5-, and 10-year periods
ended 12/31/93 were - 3.19%, 13.32% and 9.21%, respectively. The total return
for Class B shares from inception on 8/17/93 through 12/31/93 was - 2.30%
after deducting the 5% contingent deferred sales charge. All figures assume
reinvestment of dividends and capital gains distributions. The Fund's maximum
sales charge rate on Class A shares was higher during a portion of the periods
shown, and actual investment results will be different as a result of that
change.
2. Source of data: Lipper Analytical Services, an independent monitor of mutual
funds, 12/31/93. The Lipper total return averages for the 1-, 3- and 5-year
periods were for 396, 266, and 220 growth funds, respectively. These figures
include reinvestment of dividends and capital gains distributions and are shown
for comparative purposes only. Oppenheimer Special Fund is characterized by
Lipper as a growth fund. Lipper performance does not take sales charges into
consideration.
3. The Fund's portfolio is subject to change.
Past performance is not indicative of future results. An investment in the Fund
will fluctuate in value so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
2 Oppenheimer Special Fund
<PAGE>
Oppenheimer Special Fund provided Class A shareholders with a total return at
net asset value of 4.18% for the six months ended December 31, 1993.(4)
While the Fund's six-month return lagged the return from the S&P 500
Index and the average growth fund tracked by Lipper, we believe the Fund's
management investment discipline will continue to provide competitive returns
over the longterm.
With both the U.S. and global economies showing strong signs of
improvement and with inflation and interest rates holding at very low levels,
we weren't distracted by energy or utility stocks that might have given a
short-lived boost to performance during the year. Instead, we stuck to our
basic discipline, focusing on stocks with above-average long-term prospects-an
emphasis which, as our five-year performance record shows, has served our
investors well over time.
During the period, we profitably sold several consumer and tech-
nology stocks whose prices appeared to have peaked, reducing positions in Reebok
and Philip Morris. We used the proceeds of these sales, in turn, to invest in
companies whose earnings momentum isn't, in our view, fully reflected in their
stock prices.
For example, the broad sell-off in financial services stocks, driven
by what we feel are unfounded fears over rising interest rates, created
opportunities to add to positions in financial companies positioned to benefit
from what remains a very low interest-rate environment, such as First Interstate
Bancorp and Countrywide Credit.
Likewise, the broad decline in healthcare stocks stemming from
uncertainties over the Clinton Administration's reform proposals allowed your
managers to buy shares of companies positioned to prosper under any reform
scenario. Our largest holdings in this sector include U.S. Healthcare, Cordis
Corporation, and United Healthcare.
Finally, with the improving global economy, we continued to look for
values in overseas markets, where declining interest rates and improving
economies set the stage for future gains.
As we enter 1994, the Fund's outlook is bright. The improving U.S.
and global economies, low interest and inflation rates, and solid gains in
corporate earnings, driven by rising sales rather than cost-cutting, all
suggest that the kinds of high-potential companies in which your Fund invests
should do well in the months ahead.
We appreciate the confidence you have placed in Oppenheimer Special
Fund. We look forward to continuing to help you reach your investment goals in
the future.
/s/ Donald W. Spiro
Donald W. Spiro
President, Oppenheimer Special Fund
January 21, 1994
4. See footnote 1, page 2.
5. See footnote 2, page 2.
6. The S&P 500 Index is an unmanaged index of common stocks that is widely
recognized as an indicator of overall market performance. The S&P 500 Index
includes dividend reinvestments but does not take capital gains distributions
into consideration.
3 Oppenheimer Special Fund
<TABLE>
<CAPTION>
Performance
In Perspective
<S> <C> <C>
Total return for periods ended December 31, 1993
1 Year 5 Years
- -----------------------------------------------------------------------------
Oppenheimer 2.72% 98.23%
Special Fund A
(at NAV)4
- -----------------------------------------------------------------------------
Lipper 10.59% 99.31%
growth funds
average(5)
- -----------------------------------------------------------------------------
S&P 500 10.06% 96.96%
Index(6)
</TABLE>
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<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS DECEMBER 31, 1993 (UNAUDITED)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS-5.5%
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Repurchase agreement with First Chicago Capital Markets, Inc.,
3.13%, dated 12/31/93 and maturing 1/3/94, collateralized by
U.S. Treasury Notes:
9.13%, 5/15/99, with a value of $29,762,525 $29,150,000 $29,150,000
4.63%, 12/31/94, with a value of $12,096,783 11,850,000 11,850,000
-----------
Total Repurchase Agreements (Cost $41,000,000) 41,000,000
Shares
- -----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS-94.1%
- -----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS-0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS-0.4% Great Lakes Chemical Corp. 45,000 3,358,125
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS: DIVERSIFIED-0.3% FMC Corp.(1) 40,000 1,885,000
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS-12.6%
- -----------------------------------------------------------------------------------------------------------------------------------
AUTO PARTS: AFTER MARKET-0.7% Cooper Tire & Rubber Co. 105,000 2,625,000
------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 60,000 2,745,000
-----------
5,370,000
- -----------------------------------------------------------------------------------------------------------------------------------
AUTOMOBILES-0.3% Harley-Davidson, Inc. 40,000 1,765,000
- -----------------------------------------------------------------------------------------------------------------------------------
BROADCAST MEDIA-0.2% Multimedia, Inc.(1) 45,000 1,541,250
- -----------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT-1.2% King World Productions, Inc.(1) 235,000 9,018,125
- -----------------------------------------------------------------------------------------------------------------------------------
PUBLISHING-0.0% Marvel Entertainment Group, Inc.(1) 2,000 54,500
- -----------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS-1.9% Brinker International, Inc.(1) 30,000 1,380,000
------------------------------------------------------------------------------------------------
McDonald's Corp. 55,000 3,135,000
------------------------------------------------------------------------------------------------
Pancho's Mexican Buffet, Inc. 70,000 857,500
------------------------------------------------------------------------------------------------
Shoney's, Inc.(1) 390,000 9,018,750
-----------
14,391,250
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY-4.7% Circuit City Stores, Inc. 475,000 10,331,250
------------------------------------------------------------------------------------------------
CML Group, Inc. 79,600 1,880,550
------------------------------------------------------------------------------------------------
Edison Brothers Stores, Inc. 80,000 2,380,000
------------------------------------------------------------------------------------------------
Home Depot, Inc. (The) 284,600 11,241,700
------------------------------------------------------------------------------------------------
Michaels Stores, Inc.(1) 90,000 3,217,500
------------------------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc.(1)(2) 100,000 1,325,000
------------------------------------------------------------------------------------------------
Service Merchandise Co., Inc.(1) 225,000 2,250,000
------------------------------------------------------------------------------------------------
Sotheby's Holdings, Inc., Cl. A 170,000 2,613,750
-----------
35,239,750
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY APPAREL-0.8% GAP, INC. (THE) 140,000 5,512,500
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL STORES: DEPARTMENT May Department Stores Co. 25,000 984,375
STORES-0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL STORES: GENERAL Wal-Mart Stores, Inc. 450,000 11,250,000
MERCHANDISE CHAINS-1.5%
- -----------------------------------------------------------------------------------------------------------------------------------
SHOES-0.5% Reebok International Ltd. 125,000 3,750,000
- -----------------------------------------------------------------------------------------------------------------------------------
TEXTILES: APPAREL Fruit of the Loom, Inc., Cl. A(1) 125,000 3,015,625
MANUFACTURERS-0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
TOYS-0.3% Hasbro, Inc. 40,000 1,450,000
------------------------------------------------------------------------------------------------
Mattel, Inc. 35,000 966,875
-----------
2,416,875
4 Oppenheimer Special Fund
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<TABLE>
<CAPTION>
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MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS-28.7%
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
BEVERAGES: SOFT DRINKS-2.8% Coca-Cola Co. (The) 170,000 $ 7,586,250
------------------------------------------------------------------------------------------------
PepsiCo, Inc. 330,000 13,488,750
-----------
21,075,000
- -----------------------------------------------------------------------------------------------------------------------------------
DRUGS-5.6% Forest Laboratories, Inc.(1) 110,000 5,238,750
------------------------------------------------------------------------------------------------
Marion Merrell Dow, Inc. 160,000 2,880,000
------------------------------------------------------------------------------------------------
Merck & Co., Inc. 225,000 7,734,375
------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 175,000 4,440,625
------------------------------------------------------------------------------------------------
Pfizer, Inc. 75,000 5,175,000
------------------------------------------------------------------------------------------------
Schering-Plough Corp. 155,000 10,617,500
------------------------------------------------------------------------------------------------
Syntex Corp. 80,000 1,270,000
------------------------------------------------------------------------------------------------
Upjohn Co. 150,000 4,368,750
-----------
41,725,000
- -----------------------------------------------------------------------------------------------------------------------------------
FOOD PROCESSING-2.2% ConAgra, Inc. 150,000 3,956,250
------------------------------------------------------------------------------------------------
General Mills, Inc. 35,000 2,126,250
------------------------------------------------------------------------------------------------
Sara Lee Corp. 150,000 3,750,000
------------------------------------------------------------------------------------------------
Tyson Foods, Inc., Cl. A 270,000 6,480,000
-----------
16,312,500
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE: DIVERSIFIED-5.1% Abbott Laboratories 390,000 11,505,000
------------------------------------------------------------------------------------------------
American Home Products Corp. 95,000 6,151,250
------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 140,000 8,137,500
------------------------------------------------------------------------------------------------
IVAX Corp. 265,000 7,618,750
------------------------------------------------------------------------------------------------
Johnson & Johnson 40,000 1,790,000
------------------------------------------------------------------------------------------------
Warner-Lambert Co. 45,000 3,037,500
-----------
38,240,000
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE: MISCELLANEOUS-5.2% National Health Laboratories, Inc. 400,000 5,700,000
------------------------------------------------------------------------------------------------
United Healthcare Corp. 190,000 14,416,250
------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 325,000 18,728,125
-----------
38,844,375
- -----------------------------------------------------------------------------------------------------------------------------------
HOSPITAL MANAGEMENT-0.2% Novacare, Inc.(1) 80,000 1,220,000
------------------------------------------------------------------------------------------------
Surgical Care Affiliates, Inc. 20,000 310,000
-----------
1,530,000
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS-0.2% Colgate-Palmolive Co. 30,000 1,871,250
- -----------------------------------------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS-5.2% Becton, Dickinson & Co. 40,000 1,435,000
------------------------------------------------------------------------------------------------
Cordis Corp.(1) 345,000 17,034,375
------------------------------------------------------------------------------------------------
Medtronic, Inc. 110,000 9,033,750
------------------------------------------------------------------------------------------------
Rhone-Poulenc Rorer, Inc. 60,000 2,190,000
------------------------------------------------------------------------------------------------
Sci-Med Life Systems, Inc.(1) 200,000 7,850,000
------------------------------------------------------------------------------------------------
St. Jude Medical, Inc. 35,000 927,500
-----------
38,470,625
5 Oppenheimer Special Fund
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<TABLE>
<CAPTION>
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STATEMENT OF INVENTMENTS (unaudited)(continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
RETAIL STORES: FOOD CHAINS-0.2% Vons Cos., Inc. (The)(1) 80,000 $ 1,280,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOBACCO-2.0% American Brands, Inc. 100,000 3,325,000
------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 140,000 7,805,000
------------------------------------------------------------------------------------------------
UST, Inc. 129,000 3,579,750
-----------
14,709,750
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY-1.6%
OIL: EXPLORATION AND Maxus Energy Corp.(1) 630,000 3,465,000
------------------------------------------------------------------------------------------------
PRODUCTION-0.7% Pogo Producing Co.(1) 110,000 1,842,500
-----------
5,307,500
- -----------------------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED DOMESTIC-0.2% Quaker State Corp. 120,000 1,605,000
- -----------------------------------------------------------------------------------------------------------------------------------
OIL AND GAS DRILLING-0.2% Pennzoil Co. 30,000 1,597,500
- -----------------------------------------------------------------------------------------------------------------------------------
OIL WELL SERVICES AND McDermott International, Inc. 140,000 3,710,000
EQUIPMENT-0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL-24.4%
- -----------------------------------------------------------------------------------------------------------------------------------
BANKS-0.1% UJB Financial Corp. 25,000 593,750
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: Advanta Corp., Cl. A 120,000 3,990,000
------------------------------------------------------------------------------------------------
MISCELLANEOUS-11.1% Bear Stearns Cos., Inc. (The) 374,500 8,192,188
Countrywide Credit Industries, Inc. 215,000 5,401,875
------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 40,000 1,995,000
------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 165,000 12,952,500
------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 160,000 7,680,000
------------------------------------------------------------------------------------------------
Household International, Inc. 40,000 1,305,000
------------------------------------------------------------------------------------------------
MBIA, Inc. 15,000 943,125
------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc. 60,000 4,245,000
------------------------------------------------------------------------------------------------
PaineWebber Group, Inc. 280,000 7,560,000
------------------------------------------------------------------------------------------------
Primerica Corp. 410,000 15,938,750
------------------------------------------------------------------------------------------------
Raymond James Financial, Inc. 30,000 498,750
------------------------------------------------------------------------------------------------
Salomon Inc. 40,000 1,905,000
------------------------------------------------------------------------------------------------
Schwab (Charles) Corp. (The) 150,000 4,856,250
------------------------------------------------------------------------------------------------
Student Loan Marketing Assn. 105,000 4,711,875
------------------------------------------------------------------------------------------------
Sunamerica, Inc. 15,000 648,750
-----------
82,824,063
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE: LIFE-3.3% AFLAC, Inc. 71,875 2,048,438
------------------------------------------------------------------------------------------------
Conseco, Inc. 287,500 15,956,250
------------------------------------------------------------------------------------------------
Jefferson-Pilot Corp. 5,000 234,375
------------------------------------------------------------------------------------------------
Torchmark Corp. 85,000 3,825,000
------------------------------------------------------------------------------------------------
UNUM Corp. 45,000 2,362,500
-----------
24,426,563
6 Oppenheimer Special Fund
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INSURANCE: PROPERTY AND Loews Corp. 45,000 $ 4,185,000
------------------------------------------------------------------------------------------------
CASUALTY-2.2% Progressive Corp. 125,000 5,062,500
------------------------------------------------------------------------------------------------
USF&G Corp. 495,000 7,301,250
-----------
16,548,750
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE BROKERS-0.0% Alexander & Alexander Services, Inc. 10,000 195,000
- -----------------------------------------------------------------------------------------------------------------------------------
MAJOR BANKS: OTHER-1.7% Bank of Boston Corp. 400,000 9,200,000
------------------------------------------------------------------------------------------------
Continental Bank Corp. 55,000 1,450,625
------------------------------------------------------------------------------------------------
Mellon Bank Corp. 45,000 2,385,000
-----------
13,035,625
- -----------------------------------------------------------------------------------------------------------------------------------
MAJOR BANKS: REGIONAL-5.6% BANC ONE CORP. 75,000 2,934,375
------------------------------------------------------------------------------------------------
First Interstate Bancorp 95,000 6,091,875
------------------------------------------------------------------------------------------------
First Union Corp. 70,000 2,887,500
------------------------------------------------------------------------------------------------
KeyCorp 195,000 6,898,125
------------------------------------------------------------------------------------------------
Midlantic Corp.(1) 190,000 4,845,000
------------------------------------------------------------------------------------------------
Shawmut National Corp. 240,000 5,220,000
------------------------------------------------------------------------------------------------
Signet Banking Corp. 200,000 6,950,000
------------------------------------------------------------------------------------------------
SouthTrust Corp. 170,000 3,230,000
------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 20,000 900,000
------------------------------------------------------------------------------------------------
Washington Mutual Savings Bank of Seattle 65,000 1,568,125
-----------
41,525,000
- -----------------------------------------------------------------------------------------------------------------------------------
MONEY CENTER BANKS-0.4% Chase Manhattan Corp. 30,000 1,016,250
------------------------------------------------------------------------------------------------
Chemical Banking Corp. 40,000 1,605,000
-----------
2,621,250
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-3.2%
- -----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES-0.6% Comdisco, Inc. 215,000 4,138,750
------------------------------------------------------------------------------------------------
Mercury Air Group, Inc.(1) 100,000 375,000
-----------
4,513,750
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.6% General Electric Co. 115,000 12,060,625
- -----------------------------------------------------------------------------------------------------------------------------------
MACHINERY: DIVERSIFIED-0.8% Varity Corp.(1) 135,000 6,041,250
- -----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL-0.2% Rollins Environmental Services, Inc. 200,000 1,150,000
------------------------------------------------------------------------------------------------
Yellowstone Environmental Services, Inc.(1) 100,000 6,250
-----------
1,156,250
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY-22.9%
- -----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-1.5% Boeing Co. (The) 40,000 1,730,000
------------------------------------------------------------------------------------------------
Gencorp, Inc. 40,000 570,000
------------------------------------------------------------------------------------------------
Grumman Corp. 120,000 4,740,000
------------------------------------------------------------------------------------------------
Northrop Corp. 110,000 4,111,250
-----------
11,151,250
7 Oppenheimer Special Fund
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
STATEMENT OF INVENTMENTS (Unaudited)(continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMPUTER SOFTWARE AND Adobe Systems, Inc. 70,000 $ 1,557,500
------------------------------------------------------------------------------------------------
SERVICES-8.4% Automatic Data Processing, Inc. 206,800 11,425,700
------------------------------------------------------------------------------------------------
Ceridian Corp.(1) 150,000 2,850,000
------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 375,000 15,000,000
------------------------------------------------------------------------------------------------
Computer Sciences Corp.(1) 50,000 4,975,000
------------------------------------------------------------------------------------------------
Electronic Arts(1) 25,000 750,000
------------------------------------------------------------------------------------------------
General Motors Corp., Cl. E 320,000 9,360,000
------------------------------------------------------------------------------------------------
Microsoft Corp.(1) 175,000 14,109,375
------------------------------------------------------------------------------------------------
Novell, Inc.(1) 105,000 2,178,750
-----------
62,206,325
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SYSTEMS-6.5% AST Research, Inc.(1) 237,500 5,403,125
------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 135,000 15,187,500
------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(1) 50,000 3,231,250
------------------------------------------------------------------------------------------------
Compaq Computer Corp.(1) 20,000 1,480,000
------------------------------------------------------------------------------------------------
Data General Corp.(1) 156,500 1,467,187
------------------------------------------------------------------------------------------------
Maxtor Corp.(1) 120,000 660,000
------------------------------------------------------------------------------------------------
Quantum Corp.(1) 50,000 706,250
------------------------------------------------------------------------------------------------
Seagate Technology(1) 505,000 11,993,750
------------------------------------------------------------------------------------------------
Unisys Corp.(1) 680,000 8,585,000
-----------
48,714,062
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS-0.1% ADT Ltd.(1) 105,000 945,000
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS: INSTRUMENTATION-0.4% American Power Conversion Corp.(1) 140,000 3,325,000
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS: SEMICONDUCTORS-3.0% Advanced Micro Devices, Inc.(1) 195,000 3,461,250
------------------------------------------------------------------------------------------------
Intel Corp. 300,000 18,600,000
------------------------------------------------------------------------------------------------
National Semiconductor Corp. 25,000 403,125
-----------
22,464,375
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-3.0% American Telephone & Telegraph Co. 95,000 4,987,500
------------------------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd., Sponsored ADR 25,000 1,556,250
------------------------------------------------------------------------------------------------
Telefonica de Espana SA, Sponsored ADR 40,000 1,560,000
------------------------------------------------------------------------------------------------
Telefonos de Mexico SA, Sponsored ADR 210,000 14,175,000
-----------
22,278,750
-----------
Total Common Stocks (Cost $463,739,084) 702,457,513
-----------
TOTAL INVESTMENTS, AT VALUE (COST $504,739,084) 99.6% 743,457,513
OTHER ASSETS NET OF LIABILITIES .4 2,846,379
----------- -----------
NET ASSETS 100.0% $746,303,892
----------- ------------
----------- ------------
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer
and is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the
six months ended December 31, 1993. The aggregate fair value and cost of all securities of
affiliated companies as of December 31, 1993 amounted to $1,325,000 and $494,000, respectively.
There were no transactions with affiliates during the six months ended December 31, 1993.
See accompanying Notes to Financial Statements.
8 Oppenheimer Special Fund
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES December 31, 1993 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (cost $504,739,084)-see accompanying statement $743,457,513
------------------------------------------------------------------------------------------------
Cash 439,116
------------------------------------------------------------------------------------------------
Receivables:
Investments sold 2,461,833
Shares of beneficial interest sold 1,504,893
Dividends and interest 911,530
------------------------------------------------------------------------------------------------
Other 470,594
------------
Total assets 749,245,479
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 2,149,230
Distribution assistance-Note 4 303,269
Dividends and distributions 72,501
Other 416,587
------------
Total liabilities 2,941,587
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $746,303,892
------------
------------
- -----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $498,819,696
------------------------------------------------------------------------------------------------
NET ASSETS Undistributed net investment income 443,157
------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment transactions 8,322,610
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments-Note 3 238,718,429
------------
Net assets $746,303,892
------------
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets of
$741,391,155 and 26,770,494 shares of beneficial interest outstanding) $27.69
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $29.38
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $4,912,737 and 178,071 shares of beneficial
interest outstanding) $27.59
See accompanying Notes to Financial Statements.
9 Oppenheimer Special Fund
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1993 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Dividends $ 4,940,709
------------------------------------------------------------------------------------------------
Interest 574,317
------------
Total income 5,515,026
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees-Note 4 2,635,474
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees-Note 4 434,285
------------------------------------------------------------------------------------------------
Distribution assistance:
Class A-Note 4 413,568
Class B-Note 4 9,648
------------------------------------------------------------------------------------------------
Shareholder reports 207,915
------------------------------------------------------------------------------------------------
Trustees' fees and expenses 31,922
------------------------------------------------------------------------------------------------
Custodian fees and expenses 27,606
------------------------------------------------------------------------------------------------
Legal and auditing fees 24,735
------------------------------------------------------------------------------------------------
Registration and filing fees-Class B 1,014
------------------------------------------------------------------------------------------------
Other 50,375
------------
Total expenses 3,836,542
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,678,484
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain on investments 6,470,679
------------------------------------------------------------------------------------------------
GAIN ON INVESTMENTS Net change in unrealized appreciation on investments:
Beginning of period 216,647,567
End of period-Note 3 238,718,429
------------
Net change 22,070,862
------------
Net realized and unrealized gain on investments 28,541,541
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 30,220,025
------------
See accompanying Notes to Financial Statements.
10 Oppenheimer Special Fund
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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
DECEMBER 31, 1993 YEAR ENDED
(UNAUDITED) JUNE 30, 1993
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
OPERATIONS Net investment income $ 1,678,484 $ 5,089,258
------------------------------------------------------------------------------------------------
Net realized gain on investments 6,470,679 35,809,298
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments 22,070,862 64,418,678
----------- ------------
Net increase in net assets resulting from operations 30,220,025 105,317,234
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income:
TO SHAREHOLDERS Class A ($.155 and $.245 per share, respectively) (4,036,019) (6,227,354)
Class B ($.107 per share) (18,177) -
------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($.639 and $1.571 per share, respectively) (16,638,213) (39,984,953)
Class B ($.639 per share) (108,552) -
- -----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from
Class A beneficial interest transactions-Note 2 (11,888,872) 53,957,646
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B
beneficial interest transactions-Note 2 4,943,661 -
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 2,473,853 113,062,573
------------------------------------------------------------------------------------------------
Beginning of period 743,830,039 630,767,466
----------- ------------
End of period (including undistributed net investment
income of $443,157 and $2,818,869, respectively) $746,303,892 $743,830,039
------------ ------------
------------ ------------
See accompanying Notes to Financial Statements.
11 Oppenheimer Special Fund
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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
CLASS A CLASS B
--------------------------------------------------------------------------- ------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, 1993 JUNE 30, DECEMBER 31, 1993
(UNAUDITED) 1993 1992 1991 1990 1989 (UNAUDITED)(1)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $27.34 $24.94 $21.88 $20.60 $18.90 $17.13 $27.02
- -----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .07 .19 .29 .47 .64 .62 (.02)
Net realized and unrealized
gain (loss) on investments 1.08 4.03 3.13 1.36 1.76 1.78 1.34
------- ------ ------ ------ ------ ------ ------
Total income from
investment operations 1.15 4.22 3.42 1.83 2.40 2.40 1.32
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.16) (.25) (.36) (.55) (.70) (.59) (.11)
Distributions from net realized
gain on investments (.64) (1.57) - - - (.04) (.64)
------- ------- ------ ------ ------ ------ ------
Total dividends and
distributions to shareholders (.80) (1.82) (.36) (.55) (.70) (.63) (.75)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $27.69 $27.34 $24.94 $21.88 $20.60 $18.90 $27.59
------- ------ ------ ------ ------ ------ ------
------- ------ ------ ------ ------ ------ ------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(2) 4.18% 16.88% 15.69% 9.39% 12.98% 14.54% 4.14%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $741,391 $743,830 $630,767 $550,480 $551,295 $542,250 $4,913
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $735,616 $710,391 $624,527 $520,335 $547,090 $529,699 $2,606
- ------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 26,770 27,210 25,287 25,155 26,760 28,687 178
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) .45%(3) .72% 1.14% 2.20% 3.07% 3.31% (.47)%(3)
Expenses 1.03%(3) .93% .90% .94% .92% .97% 2.01%(3)
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 9.3% 23.2% 36.7% 31.1% 27.6% 27.1% 9.3%
1. For the period from August 17, 1993 (inception of offering) to December 31, 1993.
2. Assumes a hypothetical initial investment on the business day before the first day of the fiscal year, with all dividends and
distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last
business day of the fiscal period. Sales charges are not reflected in the total returns.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of
portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year
or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the
six months ended December 31, 1993 were $64,997,857 and $96,187,847, respectively.
See accompanying Notes to Financial Statements.
12 Oppenheimer Special Fund
</TABLE>
<PAGE>
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
1. Significant Oppenheimer Special Fund (the Fund) is registered
Accounting Policies under the Investment Company Act of 1940, as
amended, as a diversified, open-end management
investment company. The Fund's investment advisor
is Oppenheimer Management Corporation (the
Manager). The Fund offers both Class A and Class B
shares. Class A shares are sold with a front-end
sales charge. Class B 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. Class B shares will automatically
convert to Class A shares six years after the date
of purchase. The following is a summary of
significant accounting policies consistently
followed by the Fund.
--------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are
valued at 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. Short-term debt
securities having a remaining maturity of 60 days
or less are valued at cost (or last determined
market value) adjusted for amortization to
maturity of any premium or discount. Securities
for which market quotes are not readily available
are valued under procedures established by the
Board of Trustees to determine fair value in good
faith.
--------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the
custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry
System or to have segregated within the
custodian's vault, all securities held as
collateral for repurchase agreements. If the
seller of the agreement defaults and the value of
the collateral declines, or if the seller enters
an insolvency proceeding, realization of the value
of the collateral by the Fund may be delayed or
limited.
--------------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS AND
LOSSES. Income, expenses (other than those
attributable to a specific class) and gains and
losses are allocated daily to each class of shares
based upon the relative proportion of net assets
represented by such class. Operating expenses
directly attributable to a specific class are
charged against the operations of that class.
Federal Income Taxes. The Fund intends to continue
to comply with provisions of the Internal Revenue
Code applicable to regulated investment companies
and to distribute all of its taxable income,
including any net realized gain on investments not
offset by loss carryovers, to shareholders.
Therefore, no federal income tax provision is
required.
--------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted
a nonfunded retirement plan for the Fund's
independent trustees. Benefits are based on years
of service and fees paid to each trustee during
the years of service. The accumulated liability
for the Fund's projected benefit obligations was
$127,168 at December 31, 1993. No payments have
been made under the plan.
--------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are recorded on the
ex-dividend date.
OTHER. Investment transactions are accounted for
on the date the investments are purchased or sold
(trade date) and dividend income is recorded on
the ex-dividend date. 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.
13 Oppenheimer Special Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no par value shares of beneficial interest of each
BENEFICIAL class. Transactions in shares of beneficial interest were as follows:
INTEREST
SIX MONTHS ENDED
DECEMBER 31, 1993(1) YEAR ENDED JUNE 30, 1993
----------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A:
Sold 1,548,655 $ 42,915,730 5,518,247 $149,845,978
Dividends and distributions reinvested 720,452 19,970,949 1,627,898 44,669,529
Redeemed (2,708,447) (74,775,551) (5,223,558) (140,557,861)
Net increase (decrease) (439,340) $(11,888,872) 1,922,587 $ 53,957,646
Class B:
Sold 189,067 $ 5,254,243 - $ -
Dividends and distributions reinvested 4,452 122,908 - -
Redeemed (15,448) (433,490) - -
------------ ----------- --------- -------------
Net increase 178,071 $ 4,943,661 - $ -
------------ ----------- --------- -------------
------------ ----------- --------- -------------
<FN>
1. For the six months ended December 31, 1993 for Class A shares and for the period from August 17, 1993
(inception of offering) to December 31, 1993 for Class B shares.
</TABLE>
- -------------------------------------------------------------------------------
3. UNREALIZED GAINS At December 31, 1993, net unrealized appreciation on
AND LOSSES ON investments of $238,718,429 was composed of gross
INVESTIMENTS appreciation of $260,861,318, and gross depreciation of
$22,142,889.
- -------------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager were in accordance with
AND OTHER the investment advisory agreement with the Fund which
TRANSACTIONS provides for an annual fee of .75% on the first $200 million
WITH AFFILIATES 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, 1993,
commissions (sales charges paid by investors) on sales of
Class A shares totaled $1,024,599, of which $281,527 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a
subsidiary of the Manager, as general distributor, and by an
affiliated broker/dealer. During the six months ended
December 31, 1993, OFDI received contingent deferred sales
charges of $2,427 upon redemption of Class B shares.
Oppenheimer Shareholder Services (OSS), a division
of the Manager, is the transfer and shareholder servicing
agent for the Fund, and for other registered investment
companies. OSS's total costs of providing such services are
allocated ratably to these companies.
Under separate approved plans of distribution,
each class may expend up to .25% of its net assets annually
to reimburse OFDI for costs incurred in distributing shares
of the Fund (prior to October 1, 1993, Class A
reimbursements were made with respect to shares sold
subsequent to March 31, 1991), including amounts paid to
brokers, dealers, banks and other institutions. In addition,
Class B 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 B plan of distribution, the
Fund would be contractually obligated to pay OFDI for any
expenses not previously reimbursed or recovered through
contingent deferred sales charges. During the six months
ended December 31, 1993, OFDI paid $11,072 to an affiliated
broker/dealer as reimbursement for distribution-related
expenses and retained $9,648 as reimbursement for Class B
distribution-related expenses and sales commissions.
14 Oppenheimer Special Fund
<PAGE>
-----------------------------------------------------------
OPPENHEIMER SPECIAL FUND
- --------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert C. Doll, Jr., Vice President
George C. Bowen, Treasurer
Lynn M. Coluccy, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- --------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick
- --------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Special Fund. This
report must be preceded or accompanied by a Prospectus of Oppenheimer Special
Fund. For material information concerning the Fund, see the Prospectus.
15 Oppenheimer Special Fund
<PAGE>
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