<PAGE>
[PHOTO]
Oppenheimer Growth Fund
Annual Report June 30, 1995
"WE HAVE A LOT OF IMPORTANT GOALS, SO WE NEED OUR MONEY TO GROW SOLIDLY OVER
TIME."
[LOGO]
<PAGE>
THIS FUND IS FOR PEOPLE WHO WANT THEIR MONEY TO GROW FOR LONG-TERM NEEDS, AND
FEEL MOST COMFORTABLE INVESTING IN WELL-KNOWN, ESTABLISHED COMPANIES.
HOW YOUR FUND IS MANAGED
Oppenheimer Growth Fund invests in stocks to seek capital appreciation. The
Fund focuses on a diversified portfolio of medium- and large-sized companies
that the managers believe have prospects for better-than-expected earnings
and whose stock is selling at below-normal prices. Simply put, the Fund's
managers invest in companies they believe have excellent growth potential at
bargain prices.
Growth Fund investments are primarily in high-quality, well-known growth
companies whose earnings have tended to increase consistently in all types
of market conditions.
As a new middle class emerges in developing areas around the world, the
Fund's manager believes that demand for American name-brand products should
increase significantly--so the Fund also gives you the opportunity to benefit
from the growth of companies selling products in the U.S. and abroad.
NEWS
"OPPENHEIMER GROWTH FUND LOOKS BETTER AND BETTER ALL THE TIME...STRONG
PERFORMANCES HAVE COME TO BE THE NORM."
- --Morningstar Mutual Funds
May 1995
BEAT THE AVERAGES
Cumulative Total Return for the
5-Year Period Ended 6/30/95:
Oppenheimer Growth Fund
Class A (at net asset value)(1)
91.98%
S&P 500(3)
76.76%
Lipper Growth Funds Average(4)
71.73%
PERFORMANCE
Total returns at net asset value for the 12 months ended 6/30/95 for Class A,
B and Y shares were 29.45%, 28.22% and 29.59%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5- and 10-year periods ended 6/30/95 were 22.00%,
12.59% and 12.03%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 6/30/95 and since inception of the Class
on 8/17/93 were 23.22% and 12.18%, respectively. For Class Y shares, average
annual total returns for the 1-year period ended 6/30/95 and since inception
of the Class on 6/1/94 were 29.59% and 21.06%, respectively.(2)
OUTLOOK
"The stock market in general has been extremely strong during the first half
of 1995. With the market up over 25% since last Thanksgiving, we want to
participate--but just as important, we want to protect the gains we've made
so far. We're buying very selectively, and the cash we're holding--in
addition to earning a competitive rate--should help soften the effects of any
short-term market volatility."
Robert Doll, Portfolio Manager
June 30, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and
principal value on an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower
if sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/94,
6/30/90 and 6/30/85, after deducting the current maximum initial sales charge
of 5.75%. Class A shares were first publicly offered on 3/15/73. The Fund's
maximum sales charge for Class A shares was higher during a portion of some
of the periods shown, and actual investment results will be different as a
result of the change. Class B returns show results of hypothetical
investments on 6/30/94 and 8/17/93 (inception of class), and the deduction of
the applicable contingent deferred sales charge of 5% (1-year) and 4% (since
inception). An explanation of the different performance calculations is in
the Fund's prospectus.
3. 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.
4. Source: Lipper Analytical Services. The Lipper total return average for
the 5-year period was for 230 growth funds. The average is shown for
comparative purposes only. Oppenheimer Growth Fund is characterized by Lipper
as a growth fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer Growth Fund
<PAGE>
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
In the first six months of 1995, the stock and bond markets have improved
significantly. The Federal Reserve's seven interest rate hikes between
February 1994 and February 1995 appear to have achieved their intended
effect, as the rate of economic growth has slowed throughout the year. This
economic outlook of sustainable, healthy growth with low inflation, falling
interest rates, and talk of deficit reduction inspired investors' confidence
in the stock market. As a result, the Dow Jones Industrial Average hit record
highs repeatedly in the first half of the year.
The stock market has been strong for other reasons as well. Overall,
corporate America has done an excellent job of restructuring, and has become
more productive and profitable. Combined with continued investment in
technology and increased competitiveness abroad as a result of a weaker
dollar, these events resulted in spectacular first quarter earnings reports.
While the market's rise this year has been dramatic, it has caused our
equity investment team to become slightly more cautious. Because the market
has already registered significant gains this year, the stock market is
starting to see signs of short-term volatility, and your Fund's managers want
to protect the gains the Fund has made.
Still, the market's expansion has been fueled by underlying fundamental
strengths. So, while we are cautious, we believe it has room to continue.
Congress's continuing emphasis on deficit reduction, plus Washington's
commitment to correcting our trade imbalance, should benefit the market--in
addition to attracting foreign investments to U.S. stocks, creating even
greater demand and possibly pushing their prices up further.
Should the economy slow more than anticipated, however, we would expect to
see earnings slow eventually, which could cause the market to hesitate. In
this event, smaller companies and international stocks could begin to
outperform the large, globally-oriented companies that have led the market so
far this year. However, until your Fund's managers see signs of either
increased inflation or recession on the horizon, they remain constructive on
the market in general and will view any volatility in the near term as a time
to search for buying opportunities.
At OppenheimerFunds, our approach to the stock market is to invest with a
long-term view, to participate in upswings while remaining prudent, and,
finally, to know when to become more defensive to protect the gains we have
made.
Your portfolio manager discusses the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, and we
look forward to helping you continue to reach your investment goals in the
future.
[PHOTO]
Donald W. Spiro
President
Oppenheimer
Growth Fund
[PHOTO]
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
[SIGNATURE]
Donald W. Spiro
[SIGNATURE]
Jon S. Fossel
July 24, 1995
3 Oppenheimer Growth Fund
<PAGE>
Q + A
[PHOTO]
FACING PAGE
[PHOTO]
[PHOTO]
Q WHAT CONTRIBUTED TO THE FUND'S PERFORMANCE?
AN INTERVIEW WITH YOUR FUND'S MANAGER.
GROWTH FUND HAS BEEN A VERY STRONG PERFORMER OVER THE PAST SIX MONTHS. WHAT
INVESTMENT DECISIONS CONTRIBUTED TO THE FUND'S PERFORMANCE?
The stock market in general has been extremely strong during the first half
of 1995. Interest rates moved down, corporate earnings climbed, and U.S.
companies that do business overseas benefited from the weak dollar.
Within this bull market, the technology, financial, and consumer
non-cyclical sectors were among the strongest performers. Especially in the
beginning of the year, the Fund did quite well, as we were overweighted in
all three areas. We bought companies within these sectors early on, when they
were selling at discounted prices, and were able to participate as their
prices increased. WITH U.S. ECONOMIC GROWTH IN 1995 NOW SLOWING DOWN
SUBSTANTIALLY FROM LATE 1994'S GROWTH RATE, WHAT CHANGES HAVE YOU MADE IN THE
PORTFOLIO, AND WHY? In general, we've been doing more selling than buying. As
prices of the stocks we owned increased, we've been selling strong performers
and putting the proceeds into names that we think have more appreciation
potential.
Examples of some trimming we've done are Travelers, Bear Stearns and
Fannie Mae. These stocks have outperformed, and although their fundamentals
are still good, they are now more fairly valued. We were overweighted in
American companies with broad international exposure, believing that this
would be an area of the market that would perform well over the period. It
has, and we've cut back on strong performers like Colgate Palmolive and
Warner Lambert because we feel they've approached their peak prices.(1)
1. The Fund's portfolio is subject to change.
4 Oppenheimer Growth Fund
<PAGE>
Top left: Robert Doll,
Portfolio Manager
Top right: Mark Binning, Securities Coordinator, works with Lawrence Apolito,
VP Equity Trading
Bottom: Christina Raulli,
Associate International Trader
[PHOTO]
This page
Top: Robert Doll
[PHOTO]
Bottom: The equity trading desk
A AMERICAN COMPANIES WITH BROAD INTERNATIONAL EXPOSURE.
HAS IT BEEN DIFFICULT TO FIND STOCKS THAT FIT YOUR PROFILE FOR GROWTH AT A
REASONABLE PRICE IN THE CURRENT MARKET?
Frankly, yes. It has definitely been difficult to find the stocks we want to
own at the prices we want to pay in this strong market. Because of this, and
the fact that we want to protect the gains we've made so far this year, we've
allowed some cash to accumulate in the portfolio--it's near 25% now, up from
approximately 10% in 1994.
In general, we're not selling stocks unless we've already identified a
candidate that we'd rather own. What we're looking for are stocks that
haven't fully participated in the rising market, but whose earnings look
promising. Along these lines, we've been selectively buying into the basic
materials sector--chemical, paper and metals producers--believing that
although the economy has slowed, once it picks up again, these stocks should
lead the market. We recently bought Sterling Chemicals, and paper
manufacturer Boise Cascade. Both companies have excellent cash flows and have
been buying back stock and raising dividends.
WHAT IS YOUR FEELING ABOUT THE MARKET'S DIRECTION?
The market has done very well, supported as it was by a growing economy,
improved productivity and profitability, and continued positive earnings
surprises against a backdrop of lower interest rates. While we're not
becoming bearish, we feel that most of the good news from the market is
probably already on the table. Looking toward the rest of the year, if we
find that the economy has slowed more than we've expected, earnings could
begin to slow, which could, at least temporarily, be a negative for the
market.
HOW ARE YOU POSITIONING THE FUND IN LIGHT OF THESE BELIEFS?
Because we don't see a recession or inflation on the horizon, we're taking a
cautiously optimistic view. With the market up over 25% since last
Thanksgiving, we want to participate--but just as important, we want to
protect the gains we've made so far. We're buying very selectively, and the
cash we're holding--in addition to earning a competitive rate--should help
soften the effects of any short-term market volatility.
5 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS JUNE 30, 1995
MARKET
VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--74.6%
- -----------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--6.1%
- -----------------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.1%
FMC Corp.(1) 15,000 $1,008,750
------------------------------------------------------------------------------------------
Georgia Gulf Corp. 290,000 9,461,250
------------------------------------------------------------------------------------------
IMC Global, Inc. 40,000 2,165,000
------------------------------------------------------------------------------------------
Morton International, Inc. 155,000 4,533,750
------------------------------------------------------------------------------------------
PPG Industries, Inc. 25,000 1,075,000
------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.(1) 454,400 5,282,400
------------------------------------------------------------------------------------------
Union Carbide Corp. 130,000 4,338,750
------------------------------------------------------------------------------------------
27,864,900
- -----------------------------------------------------------------------------------------------------------------------------
METALS--1.7%
Asarco, Inc. 150,000 4,575,000
------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co. 67,800 1,932,300
------------------------------------------------------------------------------------------
Freeport-McMoRan, Inc. 55,000 969,375
------------------------------------------------------------------------------------------
LTV Corp.(1) 245,000 3,583,125
------------------------------------------------------------------------------------------
Magma Copper Co.(1) 215,000 3,493,750
------------------------------------------------------------------------------------------
Worthington Industries, Inc. 40,000 817,500
------------------------------------------------------------------------------------------
15,371,050
- -----------------------------------------------------------------------------------------------------------------------------
PAPER--1.3%
Boise Cascade Corp. 120,000 4,860,000
------------------------------------------------------------------------------------------
Chesapeake Corp. 40,000 1,245,000
------------------------------------------------------------------------------------------
Federal Paper Board Co. 20,000 707,500
------------------------------------------------------------------------------------------
Stone Container Corp.(1) 160,000 3,400,000
------------------------------------------------------------------------------------------
Temple-Inland, Inc. 40,000 1,905,000
------------------------------------------------------------------------------------------
12,117,500
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--8.8%
- -----------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--1.1%
Automotive Industries Holdings(1) 60,000 1,627,500
------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 70,000 2,887,500
------------------------------------------------------------------------------------------
Harley-Davidson, Inc. 40,000 975,000
------------------------------------------------------------------------------------------
Navistar International Corp.(1) 320,000 4,840,000
------------------------------------------------------------------------------------------
10,330,000
- -----------------------------------------------------------------------------------------------------------------------------
LEISURE &
ENTERTAINMENT--1.9%
Atlantic Southeast Airlines, Inc. 30,000 903,750
------------------------------------------------------------------------------------------
Brunswick Corp. 140,000 2,380,000
------------------------------------------------------------------------------------------
KLM Royal Dutch Airlines(1) 110,000 3,588,750
------------------------------------------------------------------------------------------
Mattel, Inc. 54,687 1,421,862
------------------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1) 20,000 577,500
------------------------------------------------------------------------------------------
Outboard Marine Corp. 235,000 4,611,875
------------------------------------------------------------------------------------------
Pancho's Mexican Buffet, Inc. 100,000 425,000
------------------------------------------------------------------------------------------
Shoney's, Inc.(1) 212,500 2,496,875
------------------------------------------------------------------------------------------
Walt Disney Co. 20,000 1,112,500
------------------------------------------------------------------------------------------
17,518,112
- -----------------------------------------------------------------------------------------------------------------------------
MEDIA--0.2%
Multimedia, Inc.(1) 45,000 1,743,750
</TABLE>
6 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--2.9%
Dollar General Corp. 200,000 $6,325,000
------------------------------------------------------------------------------------------
May Department Stores Co. 25,000 1,040,625
------------------------------------------------------------------------------------------
Sears, Roebuck & Co. 30,000 1,796,250
------------------------------------------------------------------------------------------
Waban, Inc.(1) 330,000 4,908,750
------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 450,000 12,037,500
------------------------------------------------------------------------------------------
26,108,125
- -----------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--2.7%
Bed Bath & Beyond, Inc.(1) 155,000 3,758,750
------------------------------------------------------------------------------------------
Circuit City Stores, Inc. 100,000 3,162,500
------------------------------------------------------------------------------------------
Gap, Inc. (The) 40,000 1,395,000
------------------------------------------------------------------------------------------
Home Depot, Inc. (The) 120,000 4,875,000
------------------------------------------------------------------------------------------
Intelligent Electronics, Inc. 165,000 2,248,125
------------------------------------------------------------------------------------------
Michaels Stores, Inc.(1) 88,200 1,874,250
------------------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc.(1) 100,000 1,800,000
------------------------------------------------------------------------------------------
Sotheby's Holdings, Inc., Cl. A 100,000 1,362,500
------------------------------------------------------------------------------------------
Staples, Inc.(1) 16,500 476,438
------------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(1) 120,000 3,510,000
------------------------------------------------------------------------------------------
24,462,563
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--18.7%
- -----------------------------------------------------------------------------------------------------------------------------
BEVERAGES--2.6%
Coca-Cola Co. (The) 225,000 14,343,750
------------------------------------------------------------------------------------------
PepsiCo, Inc. 190,000 8,668,750
----------
23,012,500
FOOD--2.2%
ConAgra, Inc. 80,000 2,790,000
------------------------------------------------------------------------------------------
IBP, Inc. 220,000 9,570,000
------------------------------------------------------------------------------------------
Sara Lee Corp. 125,000 3,562,500
------------------------------------------------------------------------------------------
Smithfield Foods, Inc.(1) 105,000 2,237,813
------------------------------------------------------------------------------------------
Tyson Foods, Inc., Cl. A 75,000 1,734,375
------------------------------------------------------------------------------------------
19,894,688
- -----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--6.1% Abbott Laboratories 215,000 8,707,500
------------------------------------------------------------------------------------------
American Home Products Corp. 60,000 4,642,500
------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 75,000 5,109,375
------------------------------------------------------------------------------------------
Laboratory Corp. of America Holdings, Inc. 97,200 1,287,900
------------------------------------------------------------------------------------------
Merck & Co., Inc. 150,000 7,350,000
------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 90,000 2,767,500
------------------------------------------------------------------------------------------
Pfizer, Inc. 115,000 10,623,125
------------------------------------------------------------------------------------------
Schering-Plough Corp. 300,000 13,237,500
------------------------------------------------------------------------------------------
Warner-Lambert Co. 20,000 1,727,500
------------------------------------------------------------------------------------------
55,452,900
- -----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES
& SERVICES--5.4% Boston Scientific Corp.(1) 60,000 1,912,500
------------------------------------------------------------------------------------------
Collagen Corp. 75,000 1,284,375
------------------------------------------------------------------------------------------
Cordis Corp.(1) 175,000 11,681,250
------------------------------------------------------------------------------------------
HealthCare COMPARE Corp.(1) 263,500 7,905,000
------------------------------------------------------------------------------------------
Medtronic, Inc. 155,000 11,954,375
</TABLE>
7 Oppenheimer Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES
& SERVICES (CONTINUED) Rotech Medical Corp.(1) 5,000 $ 138,750
------------------------------------------------------------------------------------------
Surgical Care Affiliates, Inc. 20,000 382,500
------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 250,000 7,656,250
------------------------------------------------------------------------------------------
United Healthcare Corp. 135,000 5,585,625
-----------
48,500,625
- -----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.2%
Colgate-Palmolive Co. 30,500 2,230,313
- -----------------------------------------------------------------------------------------------------------------------------
TOBACCO--2.2%
Philip Morris Cos., Inc. 175,000 13,015,625
------------------------------------------------------------------------------------------
UST, Inc. 242,500 7,214,375
----------
20,230,000
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY--0.1%
- -----------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--0.1% Repsol SA 30,000 948,750
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL--15.4%
- -----------------------------------------------------------------------------------------------------------------------------
BANKS--6.5% Bank of Boston Corp. 400,000 15,000,000
------------------------------------------------------------------------------------------
California Federal Bank(1) 60,000 787,500
------------------------------------------------------------------------------------------
Chemical Banking Corp. 90,000 4,252,500
------------------------------------------------------------------------------------------
First Interstate Bancorp 85,000 6,821,250
------------------------------------------------------------------------------------------
First Union Corp. 90,000 4,072,500
------------------------------------------------------------------------------------------
KeyCorp 50,000 1,568,750
------------------------------------------------------------------------------------------
Midlantic Corp. 190,000 7,600,000
------------------------------------------------------------------------------------------
NationsBank Corp. 75,000 4,021,875
------------------------------------------------------------------------------------------
Northern Trust Corp. 25,000 1,006,250
------------------------------------------------------------------------------------------
Shawmut National Corp. 240,000 7,650,000
------------------------------------------------------------------------------------------
SouthTrust Corp. 195,000 4,509,375
------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 20,000 1,165,000
----------
58,455,000
- -----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--6.5% Advanta Corp., Cl. A 280,000 11,672,500
------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. (The) 110,250 2,356,594
------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 55,000 3,781,250
------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 75,000 7,078,125
------------------------------------------------------------------------------------------
First USA, Inc. 125,000 5,546,875
------------------------------------------------------------------------------------------
Green Tree Financial Corp. 320,000 14,200,000
------------------------------------------------------------------------------------------
PaineWebber Group, Inc. 240,000 4,530,000
------------------------------------------------------------------------------------------
Student Loan Marketing Assn. 100,000 4,687,500
------------------------------------------------------------------------------------------
Travelers, Inc. 120,000 5,250,000
----------
59,102,844
- -----------------------------------------------------------------------------------------------------------------------------
INSURANCE--2.4% AFLAC, Inc. 71,875 3,144,531
------------------------------------------------------------------------------------------
Conseco, Inc. 110,000 4,991,250
------------------------------------------------------------------------------------------
MBIA, Inc. 15,000 997,500
------------------------------------------------------------------------------------------
Reliastar Financial Corp. 52,500 2,008,125
------------------------------------------------------------------------------------------
SunAmerica, Inc. 145,000 7,395,000
------------------------------------------------------------------------------------------
USF&G Corp. 190,000 3,087,500
----------
21,623,906
</TABLE>
8 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--4.1%
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.5% General Electric Co. 235,000 $13,248,125
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.1% Crown Cork & Seal Co., Inc.(1) 20,000 1,002,500
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.9% Comdisco, Inc. 215,000 6,530,625
------------------------------------------------------------------------------------------
Growth Environmental, Inc.(1) 2,100 4,988
------------------------------------------------------------------------------------------
Manpower, Inc. 30,000 765,000
------------------------------------------------------------------------------------------
Mercury Air Group, Inc. 110,000 921,250
---------
8,221,863
- -----------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.9% AlliedSignal, Inc. 25,000 1,112,500
------------------------------------------------------------------------------------------
Dover Corp. 5,000 363,750
------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 84,000 1,806,000
------------------------------------------------------------------------------------------
Varity Corp.(1) 120,000 5,280,000
----------
8,562,250
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.7% Canadian Pacific Ltd. 245,000 4,256,875
------------------------------------------------------------------------------------------
Illinois Central Corp. 45,000 1,552,500
------------------------------------------------------------------------------------------
Rollins Truck Leasing Co. 10,000 107,500
----------
5,916,875
- -----------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--20.6%
- -----------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--6.7% 3Com Corp.(1) 180,000 12,060,000
------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 275,000 14,643,750
------------------------------------------------------------------------------------------
Compaq Computer Corp.(1) 135,000 6,125,625
------------------------------------------------------------------------------------------
EMC Corp.(1) 240,000 5,820,000
------------------------------------------------------------------------------------------
Quantum Corp.(1) 227,200 5,197,200
------------------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 240,000 9,420,000
------------------------------------------------------------------------------------------
Western Digital Corp.(1) 455,000 7,905,625
-----------
61,172,200
- -----------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--8.7% Acclaim Entertainment, Inc.(1) 325,000 5,992,185
------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 200,000 12,575,000
------------------------------------------------------------------------------------------
BMC Software, Inc.(1) 125,000 9,656,250
------------------------------------------------------------------------------------------
Cerner Corp.(1) 5,000 306,250
------------------------------------------------------------------------------------------
Computer Associates International, Inc. 145,000 9,823,750
------------------------------------------------------------------------------------------
General Motors Corp., Cl. E 40,000 1,740,000
------------------------------------------------------------------------------------------
Informix Corp.(1) 220,000 5,582,500
------------------------------------------------------------------------------------------
Microsoft Corp.(1) 270,000 24,401,250
------------------------------------------------------------------------------------------
Oracle Systems Corp.(1) 130,000 5,021,250
------------------------------------------------------------------------------------------
Sterling Software, Inc.(1) 90,000 3,465,000
-----------
78,563,435
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--4.1% Advanced Micro Devices, Inc. 35,000 1,273,125
------------------------------------------------------------------------------------------
Arrow Electronics, Inc.(1) 25,000 1,243,750
------------------------------------------------------------------------------------------
Cypress Semiconductor Corp.(1) 70,000 2,835,000
------------------------------------------------------------------------------------------
Duracell International, Inc. 32,500 1,405,625
</TABLE>
9 Oppenheimer Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS
(CONTINUED) Intel Corp. 370,000 $ 23,425,625
------------------------------------------------------------------------------------------------
Linear Technology Corp. 20,000 1,320,000
------------------------------------------------------------------------------------------------
Novellus Systems, Inc.(1) 7,500 508,125
------------------------------------------------------------------------------------------------
Tektronix, Inc. 65,000 3,201,250
------------------------------------------------------------------------------------------------
VLSI Technology, Inc.(1) 75,000 2,259,375
------------
37,471,875
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--1.1% AT&T Corp. 115,000 6,109,375
------------------------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd., Sponsored ADR 60,000 1,192,500
------------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd., Sponsored ADR 30,000 1,818,750
------------------------------------------------------------------------------------------------
U.S. Long Distance Corp.(1) 50,000 812,500
------------
9,933,125
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.4% Empresa Nacional de Electricidad SA, Sponsored ADR 75,000 3,693,750
------------------------------------------------------------------------------------------------
Tucson Electric Power Co.(1) 29,000 90,625
------------
3,784,375
- -----------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.4% Telefonos de Mexico SA, Sponsored ADR 125,000 3,703,125
------------
Total Common Stocks (Cost $408,570,390) 676,547,274
UNITS
- -----------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND
CERTIFICATES--0.0% Laboratory Corp. of America Holdings Wts., Exp. 4/00 22,015 33,023
------------------------------------------------------------------------------------------------
Windmere Corp. Wts., Exp. 1/98 9,062 --
------------
Total Rights, Warrants and Certificates (Cost $0) 33,023
Face
Amount
- -----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--25.3% Repurchase agreement with The First Boston Corp., 5.95%, dated
6/30/95, to be repurchased at $40,019,833 on 7/3/95,
collateralized by U.S. Treasury Bills maturing 12/14/95, with a
value of $40,825,131 $ 40,000,000 40,000,000
------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 6.125%,
dated 6/30/95, to be repurchased at $190,070,966 on 7/3/95,
collateralized by U.S. Treasury Bonds, 11.25%, 2/15/15, with a
value of $19,380,642, U.S. Treasury Nts., 4.75%-7.875%, 3/31/96-
8/15/01, with a value of $126,772,802, and U.S.Treasury Bills
maturing 9/28/95-12/14/95, with a value
of $47,809,880 189,974,000 189,974,000
------------
Total Repurchase Agreements (Cost $229,974,000) 229,974,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $638,544,390) 99.9% 906,554,297
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.1 643,044
------------ ------------
NET ASSETS 100.0% $907,197,341
------------ ------------
------------ ------------
<FN>
1. Non-income producing security.
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Growth Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at value (including repurchase agreements
of $229,974,000) (cost $638,544,390)--see accompanying
statement $906,554,297
------------------------------------------------------------------------------------------------
Cash 92,838
------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 2,401,041
Investments sold 1,251,470
Interest and dividends 915,826
------------------------------------------------------------------------------------------------
Other 199,106
------------
Total assets 911,414,578
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 2,185,275
Shares of beneficial interest redeemed 1,295,519
Distribution and service plan fees--Note 4 344,670
Trustees' fees 221,505
Other 170,268
------------
Total liabilities 4,217,237
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $907,197,341
------------
------------
- -----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $564,284,726
NET ASSETS ------------------------------------------------------------------------------------------------
Undistributed net investment income 6,036,689
Accumulated net realized gain from investment transactions 68,866,019
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 268,009,907
------------
Net assets $907,197,341
------------
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
Per Share Net asset value and redemption price per share
(based on net assets of $860,741,305 and 27,946,407
shares of beneficial interest outstanding) $30.80
Maximum offering price per share
(net asset value plus sales charge of 5.75% of offering price) $32.68
- -----------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $43,266,648 and 1,425,337 shares
of beneficial interest outstanding) $30.36
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $3,189,388 and 103,550 shares of beneficial
interest outstanding) $30.80
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Growth Fund
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Interest $ 7,822,939
------------------------------------------------------------------------------------------------
Dividends 9,802,962
------------
Total income 17,625,901
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 5,274,276
------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 1,121,580
Class B--Note 4 186,218
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 679,079
------------------------------------------------------------------------------------------------
Shareholder reports 303,450
------------------------------------------------------------------------------------------------
Custodian fees and expenses 76,870
------------------------------------------------------------------------------------------------
Legal and auditing fees 36,008
------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 624
Class B 11,039
Class Y 724
------------------------------------------------------------------------------------------------
Trustees' fees and expenses 37,368
------------------------------------------------------------------------------------------------
Other 278,689
------------
Total expenses 8,005,925
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 9,619,976
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain on investments 85,671,017
GAIN ON INVESTMENTS
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 104,043,105
------------
Net realized and unrealized gain on investments 189,714,122
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $199,334,098
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30,
1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 9,619,976 $ 3,987,999
------------------------------------------------------------------------------------------------
Net realized gain on investments 85,671,017 52,653,524
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation on investments 104,043,105 (52,680,765)
------------ ------------
Net increase in net assets resulting from operations 199,334,098 3,960,758
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.2394 and $.153 per share, respectively) (5,772,443) (3,966,692)
SHAREHOLDERS Class B ($.1281 and $.105 per share, respectively) (71,931) (17,924)
Class Y ($.2599 per share) (1,224) --
------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.002 per share) -- (59,612)
Class B ($.002 pershare) -- (269)
------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($2.7965 and $.639 per share, respectively) (67,428,961) (16,628,635)
Class B ($2.7965 and $.639 per share, respectively) (1,571,030) (108,539)
Class Y ($2.7965 per share) (13,169) --
- -----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions--Note 2 83,386,522 (70,528,976)
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B
beneficial interest transactions--Note 2 30,660,868 9,199,957
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class Y
beneficial interest transactions--Note 2 2,984,504 10,000
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase (decrease) 241,507,234 (78,139,932)
------------------------------------------------------------------------------------------------
Beginning of period 665,690,107 743,830,039
------------ -----------
End of period (including undistributed net investment income
of $6,036,689 and $2,259,799, respectively) $907,197,341 $665,690,107
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Growth Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------------------------------
Year Ended June 30,
1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value,
beginning of period $26.65 $27.34 $24.94 $21.88 $20.60
---------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .36 .16 .19 .29 .47
Net realized and unrealized gain
(loss) on investments 6.83 (.05) 4.03 3.13 1.36
------ ------ ------ ------ -----
Total income (loss) from
investment operations 7.19 .11 4.22 3.42 1.83
---------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.24) (.16) (.25) (.36) (.55)
Distributions in excess
of net investment income -- --(3) -- -- --
Distributions from net realized
gain on investments (2.80) (.64) (1.57) -- --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (3.04) (.80) (1.82) (.36) (.55)
---------------------------------------------------------------------------------------
Net asset value, end of period $30.80 $26.65 $27.34 $24.94 $21.88
------ ------ ------ ------ ------
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(4) 29.45% .27% 16.88% 15.69% 9.39%
----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $860,741 $656,934 $743,830 $630,767 $550,480
---------------------------------------------------------------------------------------
Average net assets (in thousands) $727,102 $720,765 $710,391 $624,527 $520,335
---------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 27,946 24,654 27,210 25,287 25,155
----------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.31% .56% .72% 1.14% 2.20%
Expenses 1.05% 1.07% .93% .90% .94%
----------------------------------------------------------------------------------------
Portfolio turnover rate(6) 35.6% 19.8% 23.2% 36.7% 31.1%
<FN>
1. For the period from June 1, 1994 (inception of offering) to June 30, 1994.
2. For the period from August 17, 1993 (inception of offering) to June 30, 1994.
Per share amounts calculated based on the weighted average number of shares
outstanding during the period.
3. Less than $.005 per share.
4. Assumes a hypothetical initial investment on the business day before
the first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption
at the net asset value calculated on the last business day of the fiscal period.
Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
5. Annualized.
6. 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 June 30, 1995 were $216,295,555 and $320,810,773, respectively.
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Class A
Year Ended June 30,
1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value,
beginning of period $18.90 $17.13 $20.37 $23.82 $20.46
-------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .64 .62 .67 .93 .75
Net realized and unrealized gain
(loss) on investments 1.76 1.78 (.89) .59 3.70
------ ------ ------ ------ ------
Total income (loss) from
investment operations 2.40 2.40 (.22) 1.52 4.45
-------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net
investment income (.70) (.59) (1.27) (.77) (.61)
Distributions in excess
of net investment income -- -- -- -- --
Distributions from net realized
gain on investments -- (.04) (1.75) (4.20) (.48)
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.70) (.63) (3.02) (4.97) (1.09)
------ ------ ------ ------ ------
------ ------ ------ ------ ------
-------------------------------------------------------------------------------------------
Net asset value, end of period $20.60 $18.90 $17.13 $20.37 $23.82
------ ------ ------ ------ ------
------ ------ ------ ------ ------
-------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 12.98% 14.54% (1.03)% 9.48% 22.77%
-------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $551,295 $542,250 $552,863 $690,326 $772,619
-------------------------------------------------------------------------------------------
Average net assets (in thousands) $547,090 $529,699 $570,250 $717,115 $783,491
-------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 26,760 28,687 32,277 33,890 32,437
-------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 3.07% 3.31% 3.78% 4.32% 3.03%
Expenses .92% .97% .95% .93% .95%
--------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 27.6% 27.1% 120.3% 371.2% 67.4%
<CAPTION>
Class B Class Y
Year Ended June 30, Year Ended June 30,
1995 1994(2) 1995 1994(1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value,
beginning of period $26.44 $27.02 $26.64 $28.08
-------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .20 (.04) .30 .02
Net realized and unrealized gain
(loss) on investments 6.65 .21 6.92 (1.46)
------ ------ ------ ------
Total income (loss) from
investment operations 6.85 .17 7.22 (1.44)
-------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.13) (.11) (.26) --
Distributions in excess
of net investment income -- --(3) -- --
Distributions from net realized
gain on investments (2.80) (.64) (2.80) --
------ ------ ------ ------
Total dividends and distributions
to shareholders (2.93) (.75) (3.06) --
-------------------------------------------------------------------------------------------
Net asset value, end of period $30.36 $26.44 $30.80 $26.64
------ ------ ------ ------
------ ------ ------ ------
--------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 28.22% (.20)% 29.59% (5.13)%
---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $43,267 $8,747 $3,189 $9
----------------------------------------------------------------------------------------------
Average net assets (in thousands) $18,722 $5,119 $536 $10
--------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 1,425 331 1.04 --
--------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) .44% (.22)%(5) 1.54% 1.09%(5)
Expenses 2.02% 1.98%(5) 1.04% 1.25%(5)
---------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 35.6% 19.8% 35.6% 19.8%
See accompanying Notes to Financial Statements.
</TABLE>
15 Oppenheimer Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Growth Fund (the Fund), formerly
ACCOUNTING POLICIES named Oppenheimer Special Fund, is registered
under the Investment Company Act of 1940, as
amended, as a diversified, open-end
management investment company. The Fund's
investment advisor is Oppenheimer Management
Corporation (the Manager). The Fund offers
Class A, Class B and Class Y shares. Class A
shares are sold with a front-end sales
charge. Class B shares may be subject to a
contingent deferred sales charge. All three
classes of shares have identical rights to
earnings, assets and voting privileges,
except that each class has certain expenses
directly attributable to a particular class
and exclusive voting rights with respect to
matters affecting a single class. Classes A
and B have separate distribution and/or
service plans. No such plan has been adopted
for Class Y shares. 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 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 asked price 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 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.
---------------------------------------------
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 year ended June 30, 1995, a
provision of $30,781 was made for the Fund's
projected benefit obligations, and a payment
of $2,786 was made to a retired trustee,
resulting in an accumulated liability of
$155,163 at June 30, 1995.
---------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are recorded on
the ex-dividend date.
16 Oppenheimer Growth Fund
<PAGE>
- -------------------------------------------------------------------------------
1. SIGNIFICANT CLASSIFICATION OF DISTRIBUTIONS TO
ACCOUNTING POLICIES SHAREHOLDERS. Net investment income (loss)
(continued) and net realized gain (loss) may differ for
financial statement and tax purposes
primarily because of excise taxes. 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.
During the year ended June 30, 1995, the
Fund changed the classification of
distributions to shareholders to better
disclose the differences between financial
statement amounts and distributions
determined in accordance with income tax
regulations. Accordingly, amounts have been
reclassified to reflect a decrease in paid-in
capital of $2,512 and an increase in
undistributed net investment income of
$2,512.
---------------------------------------------
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.
- -------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited
BENEFICIAL INTEREST number of no par value shares of beneficial
interest. Transactions in shares of
beneficial interest were as follows:
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended June 30, 1995 Year Ended June 30, 1994(1)
----------------------------- ---------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 5,288,654 $147,552,419 3,332,175 $ 92,525,655
Dividends
and distributions
reinvested 2,803,654 70,904,457 719,996 19,958,287
Redeemed (4,799,772) (135,070,354) (6,608,134) (183,012,918)
---------- ------------ ---------- ------------
Net increase (decrease) 3,292,536 $ 83,386,522 (2,555,963) $(70,528,976)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
-----------------------------------------------------------------------------------------
Class B:
Sold 1,407,470 $ 39,568,793 398,782 $ 11,048,394
Dividends and
distributions
reinvested 64,577 1,618,927 4,391 121,221
Redeemed (377,530) (10,526,852) (72,353) (1,969,658)
---------- ------------ ---------- ------------
Net increase 1,094,517 $ 30,660,868 330,820 $ 9,199,957
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
-----------------------------------------------------------------------------------------
Class Y:
Sold 113,317 $ 3,284,040 356 $ 10,000
Dividends and
distributions reinvested 569 14,393 -- --
Redeemed (10,692) (313,929) -- --
---------- ------------ ---------- ------------
Net increase 103,194 $2,984,504 356 $10,000
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<FN>
1. For the year ended June 30, 1994 for Class A shares, for the period from
August 17, 1993 (inception of offering) to June 30, 1994
for Class B shares, and for the period from June 1, 1994 (inception of offering)
to June 30, 1994 for Class Y shares.
</TABLE>
- -------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At June 30, 1995, net unrealized
LOSSES ON INVESTMENTS appreciation on investments of $268,009,907
was composed of gross appreciation of
$276,705,331, and gross depreciation of
$8,695,424.
17 Oppenheimer Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER TRANSACTIONS accordance with the investment advisory
WITH AFFILIATES agreement with the Fund which provides for a
fee of .75% on the first $200 million of
average annual 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 year ended June 30, 1995,
commissions (sales charges paid by investors)
on sales of Class A shares totaled
$1,238,892, of which $370,067 was retained by
Oppenheimer Funds 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 shares totaled $798,408, of
which $43,438 was paid to an affiliated
broker/dealer. During the period ended June
30, 1995, OFDI received contingent deferred
sales charges of $35,872 upon redemption of
Class B shares, as reimbursement for sales
commissions advanced by OFDI at the time of
sale of such 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, Class A and
Class B may expend up to .25% of net assets
annually to reimburse OFDI for costs incurred
in connection with the personal service and
maintenance of accounts that hold shares of
the Fund, including amounts paid to brokers,
dealers, banks and other institutions. In
addition, Class 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, the Board
of Trustees may allow the Fund to continue
payment of the asset-based sales charge to
OFDI for distribution expenses incurred on
Class B shares and sold prior to termination
or discontinuance of the plan. During the
year ended June 30, 1995, OFDI paid $29,144
and $1,767 to an affiliated broker/dealer as
reimbursement for Class A and Class B
personal service and maintenance expenses,
respectively, and retained $169,736 as
reimbursement for Class B sales commissions
and service fee advances, as well as
financing costs.
18 Oppenheimer Growth Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
The Board of Trustees and Shareholders of Oppenheimer Growth
Fund:
We have audited the accompanying statements of investments and
assets and liabilities of Oppenheimer Growth Fund as of June 30,
1995, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the
years in the two-year period then ended and the financial
highlights for each of the years in the ten-year period then
ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we plan
and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation
of securities owned as of June 30, 1995, by correspondence with
the custodian and brokers; and where confirmations were not
received from brokers, we performed other auditing procedures. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of Oppenheimer Growth Fund as of
June 30, 1995, the results of its operations for the year then
ended, the changes in its net assets for each of the years in the
two-year period then ended, and the financial highlights for each
of the years in the ten-year period then ended, in conformity
with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
July 24, 1995
19 Oppenheimer Growth Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- -------------------------------------------------------------------------------
In early 1996, shareholders will receive information
regarding all dividends and distributions paid to them by
the Fund during calendar year 1995. Regulations of the U.S.
Treasury Department require the Fund to report this
information to the Internal Revenue Service.
Distributions of $3.0359, $2.9246 and $3.0564 per
share were paid to Class A, Class B and Class Y
shareholders, respectively, on December 29, 1994, of which
$2.7965 was designated as a "capital gain distribution"
for federal income tax purposes. Whether received in stock
or cash, the capital gain distribution should be treated by
shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year
ended June 30, 1995 which are not designated as capital gain
distributions should be multiplied by 84.07% to arrive at
the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist
shareholders in reporting distributions received from the
Fund to the Internal Revenue Service. Because of the
complexity of the federal regulations which may affect your
individual tax return and the many variations in state and
local tax regulations, we recommend that you consult your
tax advisor for specific guidance.
20 Oppenheimer Growth Fund
<PAGE>
OPPENHEIMER GROWTH FUND
- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert C. Doll, Jr., Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- -------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- -------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- -------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- -------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer Growth Fund. This report must be
preceded or accompanied by a Prospectus of
Oppenheimer Growth 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.
21 Oppenheimer Growth Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
OppenheimerFunds offers over 30 funds designed to fit virtually every
investment goal. Whether you're investing for retirement, your children's
education or tax-free income, we have the funds to help you seek your
objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing
that you are investing with a respected financial institution with over 30
years of experience in helping people just like you reach their financial
goals. And you're investing with a leader in global, growth stock and
flexible fixed income investments--with over 2.6 million shareholder accounts
and more than $35 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to exchange shares of eligible
funds of the same class. And you can exchange shares easily by mail or by
telephone.(1) For more information on OppenheimerFunds, please contact your
financial advisor or call us at 1-800-525-7048 for a prospectus. You may also
write us at the address shown on the back cover. As always, please read the
prospectus carefully before you invest.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund(3) Gold & Special Minerals Fund
- -------------------------------------------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- -------------------------------------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund International Bond Fund
Strategic Income & Growth Fund Bond Fund(4)
Strategic Income Fund U.S. Government Trust
Strategic Investment Grade Bond Fund Limited-Term Government Fund
- -------------------------------------------------------------------------------------------------------------
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5)
California Tax-Exempt Fund(5) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt Bond Fund
- -------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS Money Market Fund Cash Reserves
<FN>
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Formerly Investment Grade Bond Fund.
5. Available only to residents of certain states.
</TABLE>
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc.,
Two World Trade Center,
New York, NY 10048-0203.
- -C- Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
22 Oppenheimer Growth Fund
<PAGE>
"HOW MAY I HELP YOU?"
As an OppenheimerFunds 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 OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get 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 OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
INFORMATION
GENERAL INFORMATION
Monday--Friday 8:30 a.m.--8 p.m. ET
Saturday 10 a.m.--2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday--Friday 8:30 a.m.--8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Monday--Friday 8:30 a.m.--8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
affect your investments
1-800-835-3104
RA0270.001.0695 August 31, 1995
- ------------------------------------------------------------------------------
[GRAPHIC]
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
