Oppenheimer Growth Fund
Semiannual Report December 31, 1994
[photo depicting parents helping children with homework]
"We have
a lot of
important
goals, so
we need
our money
to grow
solidly
over time."
[logo] OppenheimerFunds(R)
<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 the
Fund's manager believes have prospects for better-than-expected earnings and
whose stock is selling at below-normal prices. Simply put, the Fund's manager
invests in companies he believes have excellent growth potential at bargain
prices.
Growth Fund also invests in high-quality, well-known growth companies,
such as Pepsico, Coca-Cola, Microsoft, and General Electric, 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.
Performance
Total return at net asset value for the 6-month period ended 12/31/94 for Class
A, B and Y shares were 6.37%, 5.92% and 6.49%, 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 12/31/94 and since
inception of the Class on 3/15/73 were -3.51%, 9.54%, 10.65% and 17.11%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/94 and since inception of the Class on 8/17/93 were -3.04%
and 1.47%, respectively.(4)
Outlook
"In our view, we're well along in both the business and market cycles--a
technical way of saying that there's no longer any easy money to be made. At
this point, we're positioning the portfolio somewhat defensively, focusing less
on price-earnings ratios and more on companies with strong earnings streams."
Robert Doll, Portfolio Manager
December 31, 1994
News
Outperformed Averages
Total Return for the Year Ended 12/31/94:
Oppenheimer
Growth Fund
Class A(1) (at NAV) 2.38%
S&P 5002 1.31%
Lipper
Growth Funds
Average(3) -2.15%
1. Based on the change in net asset value per share from 6/30/94 and 12/31/93 to
12/31/94, without deducting any sales charges. Such performance would have been
lower if sales charges were taken into account.
2. 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. Source: Lipper Analytical Services, an independent mutual fund monitoring
service. The Lipper total return average for the year ended 12/31/94 was for 481
growth funds. The average is shown for comparative purposes only. Oppenheimer
Growth Fund is characterized by Lipper as a growth fund. Lipper performance does
not take sales charges into consideration.
4. Average annual total returns are based on a hypothetical investment held
until 12/31/94, after deducting the current maximum initial sales charge of
5.75% for Class A shares and the contingent deferred sales charge of 5%
(1 year) and 4% (since inception) for Class B shares. The Fund's maximum sales
charge rate for Class A shares was higher during a portion of some of the
periods shown, and actual investment results will be different as a result of
the change. Class A and Class B shares were first publicly offered on 3/15/73
and 8/17/93, respectively. Certain Class Y share performance data is not yet
available because Y shares were first publicly offered on 6/1/94.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
2 Oppenheimer Growth Fund
<PAGE>
Dear OppenheimerFunds Shareholder,
The past year has been a difficult period for the stock market, one marked above
all by one of the most aggressive series of moves to raise interest rates in the
U.S. Federal Reserve's history. As interest rates moved up, bond prices fell and
the stock market followed, while investors looked everywhere for answers to
questions about directions in inflation, interest rates, and the economy. These
questions all concerned one basic issue: Is the bull market in stocks coming to
an end?
In our view, it is not. While we are not expecting major gains in stock
prices in the very near term, we believe that the uncertainties which held the
market back in 1994 will recede in 1995 as the fundamental positives in the
economy are recognized. The most important of these positives is our belief that
the Fed's attempt to preempt possible inflation, while temporarily
disconcerting, will likely have its desired effect in 1995. We believe that the
economy will begin to slow, and although short-term rates may move up modestly
from their present levels, long-term interest rates--the ones that most affect
securities prices--should stabilize in their current range. Long-term rates may
even begin to decline as overblown concerns about inflation abate.
Those concerns are, in fact, already fading. While the prices of some
commodities have risen over the past year and U.S. manufacturing capacity
utilization and employment rose to their highest levels in years, in today's
globally competitive environment, price increases are difficult to pass on to
either consumers or businesses. The inflation rate--as measured by the
Consumer Price Index--continues to run at less than 3% a year, and there's
nothing on the horizon to suggest to us that it will increase substantially
anytime soon. Even at their current levels, interest rates remain low relative
to recent periods, and in our view, pose no real threat to most companies'
earnings or cash flows. During the most recent recession, many businesses
learned to operate much more efficiently and took advantage of the extended
decline in interest rates to work down their debt loads and strengthen their
financial positions. As a result, corporate profits have soared despite higher
interest rates. And we believe that business earnings should grow even more as
economies in Europe and elsewhere emerge from their recessions, stimulating
demand for U.S. companies' goods and services. As profits rise, we expect stocks
to become more valuable.
Finally, the changing political landscape reflected in results of the
mid-term election bodes well for the stock market over time. In addition to
limiting the expectation that Congress will pass potentially inflationary
government spending proposals, the realignment in Washington has raised the
possibility of tax relief in the form of an expanded deduction for individual
retirement savings or possibly a reduction in the capital gains tax rate. What
specific action, if any, Congress will take on these proposals remains to be
seen. But any action to reduce the federal deficit, cut spending, and reduce
taxes should be good news for the stock market overall.
In light of all these factors, we remain bullish on stocks. As we have
noted in previous reports, we're expecting moderate gains in the short-term, in
line with increasing corporate earnings. Over time, however, we expect stocks to
perform well in both the U.S. and foreign markets. Your portfolio manager
discusses the outlook for your Fund on the following pages. We appreciate your
confidence, and we look forward to helping you continue to reach your investment
goals.
Donald W. Spiro
President
Oppenheimer
Growth Fund
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Donald W. Spiro Jon S. Fossel
January 23, 1995
3 Oppenheimer Growth Fund
<PAGE>
Q+A
An interview with your Fund's manager.
Q Why do you adopt a contrarian approach?
The Fund outperformed both the S&P 500 and similar funds measured by the Lipper
mid-cap stock fund average over the past 12 months. What factors contributed to
that performance?
The most important factor in our performance has been the moves we've made over
the past year or so to position the portfolio more defensively. In the first six
months of the year, we moved out of cyclical stocks and concentrated on
financial, technology, and healthcare issues--an approach that was rewarded.
Over the last six months, we've moved back into consumer and industrial
companies we believe have strong earnings power, and have reduced our positions
in financial and healthcare issues. The reason: We're looking for more than just
attractive valuations. We're also looking for proven earnings power.
How has this defensive strategy affected your day-to-day management of the Fund?
In general, I'd say that we're slower to buy and quicker to sell. We're
extremely price-sensitive; we don't want to overpay for any stock. And we're
ready to sell any stock that doesn't perform at or above our expectations. In
today's markets, this kind of caution is not only warranted, it's the key to
investment performance.
Where are you finding the best values today?
In consumer cyclicals, we recently bought Brunswick, a well-diversified
recreation company positioned to profit from the pick-up in power boat and
engine sales. We also bought KLM, the Dutch airline, at an attractive price. On
the industrial side, we recently added Georgia Gulf, a well-positioned chemical
company. While there are a variety of others, those names suggest our general
buying emphasis.(1)
1. The Fund's portfolio is subject to change.
4 Oppenheimer Growth Fund
<PAGE>
Facing page
Top left: Robert Doll, Portfolio Manager, with his assistant,
Pat Andrzejewski
Top right: Mark Binning, Securities Coordinator, works with Lawrence Apolito,
VP Equity Trading
Bottom: Christina Raulli,
Associate International Trader
This page
Top: Robert Doll
Bottom: The equity trading desk
A We try
not to jump
on market bandwagons;
if you do, you're almost sure to buy
too late and hold too long.
Aren't companies like these somewhat out of favor?
They are, and this contrarian approach is something we
believe sets Oppenheimer Growth Fund apart. We rarely jump on any market
bandwagon; if you do that, you're almost sure to buy too late and hold too
long. Instead, we carefully evaluate the companies whose stocks we buy, and
try to buy before the market recognizes their potential.
How are you funding those purchases?
Mainly by taking profits in the financial and healthcare sectors. We recently
sold USF&G, a property and casualty insurer, and Morgan Stanley, a large
institutional broker. And we've been reducing our healthcare exposure throughout
the year. We still have significant positions in these sectors, but they're much
lower than they were a year ago.
The international stock markets seem to be primed for strong growth. Is the Fund
positioned to participate?
While Growth Fund doesn't intend to substantially invest in foreign companies,
the Fund's portfolio does have significant holdings in companies that derive a
third to one-half of their earnings from sales outside the U.S.
Our largest holdings in this area fall into the technology category and
include such companies as Microsoft, Intel, Compaq, General Electric, Seagate
Technologies and Cabletron Systems. But our internationally-oriented holdings
cover a wide range of companies and sectors.
How do you expect to manage the Fund going forward?
In the near term, we'll continue to be defensive. We'll continue to maintain the
level of short-term, money market investments until the markets stabilize.
As the economic cycle advances, we'll look for stocks with low
valuations and exciting earnings potential. Depending on developments, we may
trim our technology positions in favor of more defensive stocks, such as utility
and energy issues. These aren't promises or predictions, of course, but they are
definitely things we're thinking about.
5 Oppenheimer Growth Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statement of Investments December 31, 1994 (Unaudited)
------------------------------------------------------------------------------------------------
<CAPTION>
Face Market Value
Amount See Note 1
<S> <C> <C>
===================================================================================================================================
Repurchase Agreements--19.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 6%,
dated 12/30/94, to be repurchased at $134,089,333 on 1/3/95,
collateralized by U.S. Treasury Nts., 3.875%--8.875%,
5/31/95--8/31/05, with a value of $127,432,454 and U.S.
Treasury Bonds, 10.75%--14.25%, 2/15/02--8/15/05, with a
value of $9,361,251 (Cost $134,000,000) $134,000,000 $134,000,000
Shares
===================================================================================================================================
Common Stocks--80.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--0.4% Georgia Gulf Corp.(1) 60,000 2,332,500
------------------------------------------------------------------------------------------------
Sigma-Aldrich Corp. 20,000 660,000
------------
2,992,500
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals: Diversified--0.1% FMC Corp.(1) 15,000 866,250
- -----------------------------------------------------------------------------------------------------------------------------------
Steel--0.6% LTV Corp.(1) 245,000 3,981,250
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--10.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Airlines--0.6% Atlantic Southeast Airlines, Inc. 95,000 1,472,500
------------------------------------------------------------------------------------------------
KLM Royal Dutch Airlines 110,000 2,695,000
------------
4,167,500
- -----------------------------------------------------------------------------------------------------------------------------------
Auto Parts: After Market--0.3% Goodyear Tire & Rubber Co. 70,000 2,353,750
- -----------------------------------------------------------------------------------------------------------------------------------
Broadcast Media--0.2% Multimedia, Inc.(1) 45,000 1,282,500
- -----------------------------------------------------------------------------------------------------------------------------------
Entertainment--0.1% WMS Industries, Inc.(1) 35,000 656,250
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure Time--1.5% Acclaim Entertainment, Inc.(1) 310,000 4,456,250
------------------------------------------------------------------------------------------------
Brunswick Corp. 140,000 2,642,500
------------------------------------------------------------------------------------------------
Harley-Davidson, Inc. 80,000 2,240,000
------------------------------------------------------------------------------------------------
Outboard Marine Corp. 70,000 1,373,750
------------
10,712,500
- -----------------------------------------------------------------------------------------------------------------------------------
Publishing--0.1% Marvel Entertainment Group, Inc.(1) 50,000 712,500
- -----------------------------------------------------------------------------------------------------------------------------------
Restaurants--1.1% McDonald's Corp. 100,000 2,925,000
- -----------------------------------------------------------------------------------------------------------------------------------
Pancho's Mexican Buffet, Inc. 100,000 687,500
------------------------------------------------------------------------------------------------
Shoney's, Inc.(1) 314,800 4,013,700
------------
7,626,200
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Stores: Bradlees, Inc. 40,400 469,650
Department Stores--0.5% ------------------------------------------------------------------------------------------------
Dollar General Corp. 60,000 1,800,000
------------------------------------------------------------------------------------------------
May Department Stores Co. 25,000 843,750
------------------------------------------------------------------------------------------------
Neiman-Marcus Group, Inc. 5,000 67,500
------------
3,180,900
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Stores: General Waban, Inc.(1) 100,000 1,775,000
Merchandise Chains--1.6% ------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 450,000 9,562,500
------------
11,337,500
</TABLE>
6 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Retail: Specialty--2.9% Circuit City Stores, Inc. 210,000 $ 4,672,500
------------------------------------------------------------------------------------------------
Edison Brothers Stores, Inc. 51,000 943,500
------------------------------------------------------------------------------------------------
Home Depot, Inc. (The) 120,000 5,520,000
------------------------------------------------------------------------------------------------
Intelligent Electronics, Inc. 300,000 2,400,000
------------------------------------------------------------------------------------------------
Michaels Stores, Inc.(1) 90,000 3,127,500
------------------------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc. 100,000 1,350,000
------------------------------------------------------------------------------------------------
Service Merchandise Co., Inc.(1) 130,000 601,250
------------------------------------------------------------------------------------------------
Sotheby's Holdings, Inc., Cl. A 150,000 1,725,000
------------
20,339,750
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty Apparel--0.8% Gap, Inc. (The) 180,000 5,490,000
- -----------------------------------------------------------------------------------------------------------------------------------
Textiles: Apparel Fieldcrest Cannon, Inc.(1) 10,800 275,400
Manufacturers--0.2% ------------------------------------------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A(1) 50,000 1,350,000
------------
1,625,400
- -----------------------------------------------------------------------------------------------------------------------------------
Toys--0.2% Mattel, Inc. 43,750 1,099,219
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--22.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages: Soft Drinks--2.8% Coca-Cola Co. (The) 240,000 12,360,000
------------------------------------------------------------------------------------------------
PepsiCo, Inc. 195,000 7,068,750
------------
19,428,750
- -----------------------------------------------------------------------------------------------------------------------------------
Drugs--4.3% Merck & Co., Inc. 155,000 5,909,375
------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 90,000 2,430,000
------------------------------------------------------------------------------------------------
Pfizer, Inc. 85,000 6,566,250
------------------------------------------------------------------------------------------------
Schering-Plough 185,000 13,690,000
------------------------------------------------------------------------------------------------
Upjohn Co. 55,000 1,691,250
------------
30,286,875
- -----------------------------------------------------------------------------------------------------------------------------------
Food Processing--1.8% ConAgra, Inc. 125,000 3,906,250
------------------------------------------------------------------------------------------------
General Mills, Inc. 15,000 855,000
------------------------------------------------------------------------------------------------
IBP, Inc. 70,000 2,117,500
------------------------------------------------------------------------------------------------
Sara Lee Corp. 150,000 3,787,500
------------------------------------------------------------------------------------------------
Tyson Foods, Inc., Cl. A 75,000 1,593,750
------------
12,260,000
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare: Diversified--3.8% Abbott Laboratories 300,000 9,787,500
------------------------------------------------------------------------------------------------
American Home Products Corp. 81,000 5,082,750
------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 75,000 4,340,625
------------------------------------------------------------------------------------------------
ICN Pharmaceuticals, Inc. 40,832 704,352
------------------------------------------------------------------------------------------------
Warner-Lambert Co. 90,000 6,930,000
------------
26,845,227
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare: Miscellaneous--3.7% National Health Laboratories, Inc. 320,000 4,240,000
------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 280,000 11,550,000
------------------------------------------------------------------------------------------------
United Healthcare Corp. 220,500 9,950,063
------------
25,740,06
7 Oppenheimer Growth Fund
<PAGE>
------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
------------------------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
Hospital Management--0.5% HealthCare COMPARE Corp.(1) 70,000 $ 2,388,750
------------------------------------------------------------------------------------------------
Novacare, Inc.(1) 50,100 363,225
------------------------------------------------------------------------------------------------
Surgical Care Affiliates, Inc. 20,000 405,000
------------
3,156,975
- -----------------------------------------------------------------------------------------------------------------------------------
Household Products--0.3% Colgate-Palmolive Co. 30,500 1,932,938
- -----------------------------------------------------------------------------------------------------------------------------------
Medical Products--3.3% Cordis Corp.(1) 175,000 10,587,500
------------------------------------------------------------------------------------------------
Medtronic, Inc. 155,000 8,621,875
------------------------------------------------------------------------------------------------
Sci-Med Life Systems, Inc.(1) 80,000 4,040,000
------------
23,249,375
- -----------------------------------------------------------------------------------------------------------------------------------
Tobacco--2.4% Philip Morris Cos., Inc. 170,000 9,775,000
------------------------------------------------------------------------------------------------
UST, Inc. 242,500 6,729,375
------------
16,504,375
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Oil Well Services and McDermott International, Inc. 45,000 1,113,750
Equipment--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Oil: Exploration and Maxus Energy Corp.(1) 338,500 1,142,438
Production--0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--3.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial Services--0.8% Comdisco, Inc. 215,000 4,971,875
- -----------------------------------------------------------------------------------------------------------------------------------
Mercury Air Group, Inc.(1) 100,000 700,000
------------
5,671,875
- -----------------------------------------------------------------------------------------------------------------------------------
Conglomerates--0.3% Canadian Pacific Ltd. 120,000 1,800,000
- -----------------------------------------------------------------------------------------------------------------------------------
Containers: Crown Cork & Seal Co., Inc.(1) 20,000 755,000
Metal and Glass--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--1.8% General Electric Co. 250,000 12,750,000
- -----------------------------------------------------------------------------------------------------------------------------------
Machinery: Timken Co. 5,000 176,250
Diversified--0.6% ------------------------------------------------------------------------------------------------
Varity Corp.(1) 120,000 4,350,000
------------
4,526,250
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing: Mark IV Industries, Inc. 30,000 592,500
Diversified Industrials--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Pollution Control--0.0% Growth Environmental, Inc. 2,100 9,710
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation: American President Cos. Ltd. 25,000 631,250
Miscellaneous--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--21.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Financial Services: Advanta Corp., Cl. A 280,000 7,350,000
Miscellaneous--10.6% ------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. (The) 346,900 5,333,588
------------------------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 225,000 2,925,000
------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 55,000 2,777,500
------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 155,000 11,295,625
------------------------------------------------------------------------------------------------
First USA, Inc. 85,000 2,794,375
------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 320,000 9,720,000
------------------------------------------------------------------------------------------------
MBIA, Inc. 15,000 841,875
8 Oppenheimer Growth Fund
<PAGE>
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
Financial Services: PaineWebber Group, Inc. 320,000 $ 4,800,000
Miscellaneous(continued) ------------------------------------------------------------------------------------------------
Salomon, Inc. 20,000 750,000
------------------------------------------------------------------------------------------------
Schwab (Charles) Corp. (The) 150,000 5,231,250
------------------------------------------------------------------------------------------------
Student Loan Marketing Assn. 130,000 4,225,000
------------------------------------------------------------------------------------------------
Sunamerica, Inc. 145,000 5,256,250
------------------------------------------------------------------------------------------------
Travelers, Inc. 325,000 10,562,500
------------
73,862,963
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance: Life--1.9% AFLAC, Inc. 71,875 2,300,000
------------------------------------------------------------------------------------------------
Conseco, Inc. 199,100 8,586,188
------------------------------------------------------------------------------------------------
NWNL Companies, Inc. 52,500 1,522,500
------------------------------------------------------------------------------------------------
Torchmark Corp. 15,000 523,125
------------------------------------------------------------------------------------------------
UNUM Corp. 15,000 566,250
------------
13,498,063
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance: Property and Loews Corp. 25,000 2,171,875
Casualty--0.7% ------------------------------------------------------------------------------------------------
USF&G Corp. 190,000 2,588,750
------------
4,760,625
- -----------------------------------------------------------------------------------------------------------------------------------
Major Banks: Other--1.6% Bank of Boston Corp. 430,000 11,126,250
- -----------------------------------------------------------------------------------------------------------------------------------
Major Banks: Regional--5.9% Banc One Corp. 75,000 1,903,125
------------------------------------------------------------------------------------------------
First Interstate Bancorp 95,000 6,424,375
------------------------------------------------------------------------------------------------
First Union Corp. 90,000 3,723,750
------------------------------------------------------------------------------------------------
KeyCorp 225,000 5,625,000
------------------------------------------------------------------------------------------------
Midlantic Corp. 190,000 5,035,000
------------------------------------------------------------------------------------------------
NationsBank Corp. 75,000 3,384,375
------------------------------------------------------------------------------------------------
Northern Trust Corp. 25,000 875,000
------------------------------------------------------------------------------------------------
Shawmut National Corp. 240,000 3,930,000
------------------------------------------------------------------------------------------------
Signet Banking Corp. 200,000 5,725,000
------------------------------------------------------------------------------------------------
SouthTrust Corp. 195,000 3,510,000
------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 20,000 955,000
------------------------------------------------------------------------------------------------
Washington Mutual Savings Bank of Seattle 25,000 421,875
------------
41,512,500
- -----------------------------------------------------------------------------------------------------------------------------------
Money Center Banks--0.6% Chase Manhattan Corp. 30,000 1,031,250
------------------------------------------------------------------------------------------------
Chemical Banking Corp. 90,000 3,228,750
------------
4,260,000
- -----------------------------------------------------------------------------------------------------------------------------------
Savings and Loans/ California Federal Bank(1) 120,000 1,305,000
Holding Cos.--0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--19.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--0.2% Northrop Corp. 30,000 1,260,000
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software and Adobe Systems, Inc. 35,000 1,041,250
Services--9.0% ------------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 200,000 11,700,000
------------------------------------------------------------------------------------------------
BMC Software, Inc.(1) 125,000 7,109,375
9 Oppenheimer Growth Fund
<PAGE>
------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
------------------------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software and Computer Associates International, Inc. 250,000 $ 12,125,000
Services (continued) ------------------------------------------------------------------------------------------------
Computer Sciences Corp.(1) 125,000 6,375,000
------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(1) 60,000 1,155,000
------------------------------------------------------------------------------------------------
General Motors Corp., Cl. E 100,000 3,850,000
------------------------------------------------------------------------------------------------
Informix Corp.(1) 35,000 1,124,375
------------------------------------------------------------------------------------------------
Microsoft Corp.(1) 295,000 18,031,875
------------
62,511,875
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Systems--6.0% 3Com Corp.(1) 190,000 9,796,875
------------------------------------------------------------------------------------------------
American Power Conversion Corp.(1) 105,000 1,719,375
------------------------------------------------------------------------------------------------
AST Research, Inc.(1) 100,000 1,462,500
------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 195,000 9,067,500
------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(1) 40,000 1,405,000
------------------------------------------------------------------------------------------------
Compaq Computer Corp.(1) 85,000 3,357,500
------------------------------------------------------------------------------------------------
Quantum Corp.(1) 156,000 2,359,500
------------------------------------------------------------------------------------------------
Seagate Technology(1) 275,000 6,600,000
------------------------------------------------------------------------------------------------
Unisys Corp.(1) 62,000 534,750
------------------------------------------------------------------------------------------------
Western Digital Corp.(1) 325,000 5,443,750
------------
41,746,750
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics: Linear Technology Corp. 20,000 990,000
Instrumentation--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics: Advanced Micro Devices, Inc.(1) 35,000 870,625
Semiconductors--3.1% ------------------------------------------------------------------------------------------------
Intel Corp. 285,000 18,204,375
------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 70,000 1,365,000
------------------------------------------------------------------------------------------------
Novellus Systems, Inc.(1) 7,500 375,000
------------------------------------------------------------------------------------------------
VLSI Technology, Inc.(1) 75,000 900,000
------------
21,715,000
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications--1.0% AT&T Corp. 115,000 5,778,750
------------------------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd., Sponsored ADR 75,000 1,434,375
------------
7,213,125
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities--1.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Companies--0.4% Empresa Nacional de Electricidad SA, Sponsored ADR 75,000 3,037,500
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone--1.3% Telefonica de Espana SA, Sponsored ADR 30,000 1,053,750
-------------------------------------------------------------------------------------------------
Telefonos de Mexico SA, Sponsored ADR 190,000 7,790,000
------------
8,843,750
------------
Total Common Stocks (Cost $396,794,802) 564,464,721
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $530,794,802) 100.0% 698,464,721
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets 0.0 (8,640)
------- ------------
Net Assets 100.0% $698,456,081
======= ============
1. Non-income producing security.
See accompanying Notes to Financial Statements.
</TABLE>
10 Oppenheimer Growth Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1994 (Unaudited)
------------------------------------------------------------------------------------------------
<CAPTION>
===================================================================================================================================
<S> <C>
Assets Investments, at value (including repurchase agreements of $134,000,000)
(cost $530,794,802)--see accompanying statement $698,464,721
------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 2,782,274
Investments sold 2,491,764
Interest and dividends 996,081
------------------------------------------------------------------------------------------------
Other 483,245
------------
Total assets 705,218,085
===================================================================================================================================
Liabilities Bank overdraft 402,501
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 3,625,055
Investments purchased 1,078,442
Dividends 806,057
Distribution and service plan fees--Note 4 283,701
Other 566,248
------------
Total liabilities 6,762,004
===================================================================================================================================
Net Assets $698,456,081
============
===================================================================================================================================
Composition of Paid-in capital $512,503,531
Net Assets ------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income 75,778
------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) from investment transactions 18,206,853
------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments--Note 3 167,669,919
------------
Net assets $698,456,081
============
===================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$682,065,018 and 26,945,756 shares of beneficial interest outstanding) $25.31
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $26.85
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $16,257,470 and 648,096 shares of beneficial interest outstanding) $25.08
------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $133,593 and 5,278 shares of beneficial interest outstanding) $25.31
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Growth Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended December 31, 1994 (Unaudited)
------------------------------------------------------------------------------------------------
<CAPTION>
===================================================================================================================================
<S> <C>
Investment Income Interest $ 2,387,013
------------------------------------------------------------------------------------------------
Dividends 5,134,285
------------
Total income 7,521,298
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses Management fees--Note 4 2,491,037
------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 513,647
Class B--Note 4 58,047
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 378,168
------------------------------------------------------------------------------------------------
Shareholder reports 225,916
------------------------------------------------------------------------------------------------
Trustees' fees and expenses 43,978
------------------------------------------------------------------------------------------------
Legal and auditing fees 27,581
------------------------------------------------------------------------------------------------
Custodian fees and expenses 3,048
------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 325
Class B 3,514
Class Y 45
------------------------------------------------------------------------------------------------
Other 115,663
------------
Total expenses 3,860,969
===================================================================================================================================
Net Investment Income (Loss) 3,660,329
===================================================================================================================================
Realized and Unrealized Net realized gain (loss) on investments 35,009,894
Gain (Loss) on Investments ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 3,703,117
------------
Net realized and unrealized gain (loss) on investments 38,713,011
===================================================================================================================================
Net Increase (Decrease) in Net Assets Resulting From Operations $42,373,340
===========
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Growth Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
December 31, June 30,
1994 (Unaudited) 1994
===================================================================================================================================
<S> <C> <C>
Operations
Net investment income (loss) $ 3,660,329 $ 3,987,999
------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 35,009,894 52,653,524
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments 3,703,117 (52,680,765)
------------ ------------
Net increase (decrease) in net assets resulting from operations 42,373,340 3,960,758
===================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A ($.2394 and $.153 per share, respectively) (5,769,960) (3,966,692)
Shareholders Class B ($.1281 and $.105 per share, respectively) (73,166) (17,924)
Class Y ($.2599 per share) (1,224) --
------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.002 per share) -- (59,612)
Class B ($.002 per share) -- (269)
------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($2.7965 and $.639 per share, respectively) (67,400,029) (16,628,635)
Class B ($2.7965 and $.639 per share, respectively) (1,598,005) (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 56,439,355 (70,528,976)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Class B
beneficial interest transactions--Note 2 8,669,756 9,199,957
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Class Y
beneficial interest transactions--Note 2 139,076 10,000
===================================================================================================================================
Net Assets Total increase (decrease) 32,765,974 (78,139,932)
------------------------------------------------------------------------------------------------
Beginning of period 665,690,107 743,830,039
------------ ------------
End of period (including undistributed net investment
income of $75,778 and $2,259,799, respectively) $698,456,081 $665,690,107
============ ============
See accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer Growth Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Financial Highlights
------------------------------------------------------------------------------------------------
<CAPTION>
Class A
---------------------------------------------------------------------
Six Months
Ended
Dec. 31,
1994 Year Ended June 30,
(Unaudited) 1994 1993 1992 1991 1990
===================================================================================================================================
<S> <C> <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 $ 18.90
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .15 .16 .19 .29 .47 .64
Net realized and unrealized gain
(loss) on investments 1.55 (.05) 4.03 3.13 1.36 1.76
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations 1.70 .11 4.22 3.42 1.83 2.40
- ---------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.24) (.16) (.25) (.36) (.55) (.70)
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) (.70)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.31 $ 26.65 $ 27.34 $ 24.94 $ 21.88 $ 20.60
======= ======= ======= ======= ======= =======
===================================================================================================================================
Total Return, at Net Asset Value(4) 6.37% .27% 16.88% 15.69% 9.39% 12.98%
===================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $682,065 $656,934 $743,830 $630,767 $550,480 $551,295
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $682,695 $720,765 $710,391 $624,527 $520,335 $547,090
- ---------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 26,946 24,654 27,210 25,287 25,155 26,760
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.06%(5) .56% .72% 1.14% 2.20% 3.07%
Expenses 1.09%(5) 1.07% .93% .90% .94% .92%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 15.0% 19.8% 23.2% 36.7% 31.1% 27.6%
</TABLE>
<TABLE>
<CAPTION>
Class B Class Y
-------------------- --------------------
Six Months Six Months
Ended Period Ended Period
Dec. 31, Ended Dec. 31, Ended
1994 June 30, 1994 June 30,
(Unaudited) 1994(2) (Unaudited) 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) .08 (.04) .13 .02
Net realized and unrealized gain
(loss) on investments 1.49 .21 1.60 (1.46)
------ ------ ------ ------
Total income (loss) from
investment operations 1.57 .17 1.73 (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 $ 25.08 $ 26.44 $ 25.31 $ 26.64
======= ======= ======= =======
===================================================================================================================================
Total Return, at Net Asset Value(4) 5.92% (.20)% 6.49% (5.13)%
===================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $16,257 $8,747 $134 $9
- -------------------------------------------------------------------------------------------
Average net assets (in thousands) $11,621 $5,119 $74 $10
- -------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 648 331 5 --
- -------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) .29%(5) (.22)%(5) 1.42%(5) 1.09%(5)
Expenses 1.92%(5) 1.98%(5) .95%(5) 1.25%(5)
- -------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 15.0% 19.8% 15.0% 19.8%
<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.
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.
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 six months ended December 31, 1994 were $92,441,683 and
$130,079,942, respectively.
</FN>
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
1. Significant
Accounting Policies
Oppenheimer Growth Fund (the Fund), formerly 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 its own 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. 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. 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 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 $155,364 at December 31, 1994.
No payments have been made under the plan.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Change in Accounting Classification of Distributions to Shareholders. The
character of the distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund. Effective July 1, 1993,
the Fund adopted Statement of Position 93-2: Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. As a result, the Fund changed the
classification of distributions to shareholders to better disclose the
differences between financial statement amounts and distributions determined in
accordance with income tax regulations. Accordingly, subsequent to June 30,
1993, amounts have been reclassified to reflect an increase in paid-in capital
of $2,809,456, a decrease in undistributed net investment income of $502,572,
and a decrease in accumulated net realized gain on investments of $2,306,884.
15 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financials Statement (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant
Accounting Policies
(continued)
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
Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended December 31, 1994 Year Ended June 30, 1994(1)
---------------------------------- ----------------------------
Shares Amount Shares Amount
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,653,302 $ 46,366,878 3,332,175 $ 92,525,655
Dividends and distributions
reinvested 2,803,097 70,890,352 719,996 19,958,287
Redeemed (2,164,514) (60,817,875) (6,608,134) (183,012,918)
---------- ------------ ---------- -------------
Net increase (decrease) 2,291,885 $ 56,439,355 2,555,963 $ (70,528,976)
========== ============ ========== =============
----------------------------------------------------------------------------------------------------
Class B:
Sold 312,602 $ 8,710,150 398,782 $ 11,048,394
Dividends and distributions
reinvested 65,731 1,647,840 4,391 121,221
Redeemed (61,057) (1,688,234) (72,353) (1,969,658)
---------- ------------ ---------- -------------
Net increase 317,276 $ 8,669,756 330,820 $ 9,199,957
========== ============ ========== =============
----------------------------------------------------------------------------------------------------
Class Y:
Sold 4,477 $ 128,208 356 $ 10,000
Dividends and distributions
reinvested 569 14,393 -- --
Redeemed (124) (3,525) -- --
---------- ------------ ---------- -------------
Net increase 4,922 $ 139,076 356 $ 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.
</FN>
</TABLE>
================================================================================
3. Unrealized Gains and
Losses on Investments
At December 31, 1994, net unrealized appreciation on investments of $167,669,919
was composed of gross appreciation of $193,725,425, and gross depreciation of
$26,055,506.
16 Oppenheimer Growth Fund
<PAGE>
================================================================================
4. Management Fees
And Other Transactions
With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .75% on the
first $200 million of net assets with a reduction of .03% on each $200 million
thereafter to $800 million, and .60% on net assets in excess of $800 million.
The Manager has agreed to reimburse the Fund if aggregate expenses (with
specified exceptions) exceed the most stringent applicable regulatory limit on
Fund expenses.
For the six months ended December 31, 1994, commissions (sales charges paid
by investors) on sales of Class A shares totaled $428,841, of which $131,149 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. During the
period ended December 31, 1994, OFDI received contingent deferred sales charges
of $8,659 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 (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, 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
six months ended December 31, 1994, OFDI paid $13,351 and $368, respectively, to
an affiliated broker/dealer as reimbursement for Class A and Class B personal
service and maintenance expenses and retained $54,818 as reimbursement for Class
B sales commissions and service fee advances, as well as financing costs.
17 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
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 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.
18 Oppenheimer Growth Fund
<PAGE>
OppenheimerFunds Family
OppenheimerFunds offers over 35 funds designed to
fit virtually every investment goal. Whether you're
investing for retirement, your children's education or
tax-free income, we have the funds to help you seek your
objective.
When you invest with OppenheimerFunds, you can
feel comfortable knowing that you are investing with a
respected financial institution with over 30 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed income
investments--with over 1.8 million shareholder accounts
and more than $29 billion under Oppenheimer's management
and that of our affiliates.
As an OppenheimerFunds shareholder, you can easily
exchange shares of eligible funds of the same class by
mail or by telephone for a small administrative fee.(1)
For more information on OppenheimerFunds, please contact
your financial advisor or call us at 1-800-525-7048 for
a prospectus. You may also write us at the address shown
on the back cover. As always, please read the prospectus
carefully before you invest.
Stock Funds Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Time Fund Value Stock Fund
Target Fund Gold & Special Minerals Fund
Growth Fund(3)
Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
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California Tax-Exempt Fund(4) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(4) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Bond Fund
Money Market Funds Money Market Fund Cash Reserves
1. The fee is waived for PhoneLink exchanges between
existing accounts. Exchange privileges are subject to
change or termination.
2. Formerly Global Bio-Tech Fund and Global Environment
Fund.
3. Formerly Special Fund.
4. Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203.
(C) Copyright 1995 Oppenheimer Management Corporation.
All rights reserved.
19 Oppenheimer Growth Fund
<PAGE>
Information
General Information
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Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
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1-800-852-8457
Jennifer Leonard, Customer Service Representative Oppenheimer Shareholder
Services
PhoneLink
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information and transactions
1-800-533-3310
Telecommunications Device
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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
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"How may I help you?"
As an OppenheimerFunds shareholder, some special privileges are available to
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And when you need help, our Customer Service Representatives are only a
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When you want to make a transaction, you can do it easily by calling
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For added convenience, you can get auto-mated information with
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PhoneLink gives you access to a variety of fund, account, and market
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Representative during business hours.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, non-profit
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.
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