[FRONT COVER]
[LOGO-OPPENHEIMER FUNDS(R)]
Oppenheimer Growth Fund
Annual Report June 30, 1996
[Picture of Couple Talking]
"We have
a lot of
important goals,
so we need
our money
to grow solidly
over time."
<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.
News
Beat the Average
Cumulative Total Return for the
5-Year Period Ended 6/30/96:
Oppenheimer Growth Fund
Class A (at net asset value)(1)
112.36%
S&P 500(3)
107.39%
Lipper Growth Funds Average(4)
100.05%
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 attractive valuations. 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.
Performance
Total return at net asset value for the twelve months ended 6/30/96 for Class A,
B and Y shares were 21.00%, 19.95% and 21.10%, respectively. Cumulative total
return at net asset value for Class C shares since inception on 11/1/95 was
10.07%.(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 6/30/96 were 14.04%,
14.89% and 11.87%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 6/30/96 and since inception of the Class on
8/17/93 were 14.95% and 15.31%, respectively. For Class C shares, cumulative
total return since inception on 11/1/95 was 9.08%.(2)
Outlook
"We believe the outlook for the Fund is extremely positive. As you know, we look
for companies with strong long-term growth potential, and then buy them when
their prices are below what we believe they're worth. Using this strategy, we
think the Fund is well-positioned to outperform the market over the long term."
Robert Doll, Portfolio Manager
June 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost. For more complete information, please review the
prospectus carefully before you invest.
1. 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 for
Class A, B, and C shares if sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/95, 6/30/91
and 6/30/86, after deducting the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 3/15/73. Prior to 4/1/94, the
Fund's maximum sales charge for Class A shares was higher, so that actual
account performance would have been less. Class B returns show results of
hypothetical investments on 6/30/95 and 8/17/93 (inception of class), after the
deduction of the applicable contingent deferred sales charge of 5% (1-year) and
3% (since inception). Class C shares show results of a hypothetical investment
on 11/1/95 after the 1% contingent deferred sales charge. For Class Y shares,
average annual total returns for the 1-year period and since inception of the
Class on 6/1/94 were 21.10% and 21.08%, respectively. 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 246 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>
Bridget A. Macaskill
President
Oppenheimer
Growth Fund
Dear Shareholder,
Against all odds, the stock market showed remarkable strength during the first
five months of 1996. However, in the few months that followed, the market
experienced significant volatility that resulted in a decline in the Dow of
about 7 percent.
Many experts said the stock market, having advanced to record heights in
1995 and void of any real market correction since 1990, was due for a downturn.
This was, after all, the longest bull market of the post-World War II era.
Thanks to the 10% rise in blue chip stocks during the first half of 1996 and the
early success of small stocks, the decline that occurred recently was somewhat
cushioned. While it's impossible to tell what will happen next, we are
optimistic that this turn was a correction within a bull market rather than the
onset of a bear market.
What made the market perform so well during the first part of the year? It
was another surprise: corporate profits. Between 1992 and 1995, corporate
profits of U.S. companies advanced at a double-digit rate. Investors widely
expected this year's profit tallies to be flat compared to 1995. After all, the
economy had been sluggish--growing at an annual rate of just 2.3% in the first
quarter of 1996. But corporate America continued to perform.
The reason corporate profits were so strong is that many U.S. companies
continued to suc-cessfully reduce costs. Often when a company achieves a small
increase in sales, the benefit goes straight to the bottom line. Indeed, the
U.S. Commerce Department reports indicated that corporate profits rose 15% for
the four quarters ended March 1996, while the economy grew only marginally.
Still, profits are not what they were in the early 1990s. That's why
investors are seeking out companies that can grow earnings regardless of the
fortunes of the economy. Which is just what many small companies in such fields
as technology, healthcare and specialty retailing have been doing, growing
earnings at double-digit--and even triple-digit rates. So it's not surprising
that the stocks of many of these small fast-growing companies have been such
strong performers.
The early strength of the stock market is all the more remarkable when you
consider that during the same period, interest rates moved up sharply. The yield
on the benchmark 30-year U.S. Treasury bond rose from about 6% in January to
over 7% today. Interest rates have been rising partly because investors are
concerned that the economy is growing fast enough to generate higher inflation.
However, we are watching this very closely, and would become very cautious
regarding the stock market's performance if inflation were to flare up.
As always, remember stock investments are generally meant for long-term
growth objectives, and often involve short-term volatility. So, it's critical
for investors to keep their focus on long-term goals and to put near-term
setbacks in proper prospective.
Your portfolio managers discuss the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/Bridget A. Macaskill
Bridget A. Macaskill
July 22, 1996
3 Oppenheimer Growth Fund
<PAGE>
Q + A
Q What is the Fund currently targeting?
An interview with your Fund's managers.
How did the Fund perform over the past year?
The Fund has performed very well. This can primarily be attributed to having
invested in the right stocks, within the right sectors of the market, at the
right times.
What investments made positive contribution to performance?
As always, we search for companies we believe have the potential to grow faster
than the market and are priced at a discount to what we think they're worth. And
of course, we use in-depth research to select only those companies whose
earnings estimates are going up.
With many foreign economies experiencing higher growth rates than the U.S.,
companies with exposure to overseas markets have been well-positioned to
realize above-average earnings growth. And over the past six months, we've found
that many companies located overseas have met these criteria.
Additionally, we were fortunate to have had a large percentage of the
portfolio in the technology, healthcare and financial services industries, which
happened to be the top three performing industries in the U.S. last year.(1)
Were there any investments that didn't perform as you'd expected?
Generally, the investments in our portfolio performed very well. After last
year's run-up in stock prices, however, we had some difficulty finding stocks
selling at what we'd consider low-to-reasonable price levels. As a consequence,
our cash position was slightly higher than normal. While having a high level of
cash can protect a portfolio when the stock market is declining, having a
fully-invested portfolio is an obvious benefit when the market is going up.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Growth Fund
<PAGE>
[Picture captions]
Facing page
Top left: Robert Doll, Portfolio
Manager and Executive VP,
Director of Equity Investments
Top right: Michael Levine, Member
of Equity Investments Team
Bottom: Bruce Bartlett, Member
of Equity Investments Team
This page
Top: Jay Tracey, Member of Equity
Investments Team
Bottom: Jane Putnam, Member
of Equity Investments Team
A We look
for companies
with long-
term growth
potential that
are priced low.
What areas of the market are you currently targeting?
We continue to hold higher-than-average weightings in both technology and
financial services companies, while we've reduced our holdings in healthcare.
Although prices have risen dramatically for all three sectors, the earnings of
many technology and financial services firms are rising faster.
For this reason, we believe the stocks of technology and financial
services companies are still excellent growth investments. On the other hand,
the healthcare industry may have reached peak valuations. In other words, with a
lot of the good news already realized, we see limited upside potential.
While we've sold healthcare firms, we've also begun to invest in some basic
materials companies, such as paper, chemicals and metals firms. Because these
businesses tend to be cyclical--meaning their profitability is linked to how
well the economy is doing--their prices suffered when the economy was at its
slowest. So, at the end of 1995, we were able to buy the stocks of these
companies at a discount.
What is your outlook for the Fund?
We believe the outlook for the Fund is extremely positive. As you know, we
look for companies with strong long-term growth potential, and then buy them
when their prices are below what we believe they're worth. Using this
strategy, we think the Fund is well-positioned to outperform the market over
the long term.[solid box]
5 Oppenheimer Growth Fund
<PAGE>
Financials
Contents
Statement of Investments 7
Statement of Assets and Liabilities 13
Statement of Operations 14
Statements of Changes in Net Assets 15
Financial Highlights 16
Notes to Financial Statements 18
Independent Auditors' Report 21
Federal Income Tax Information 22
6 Oppenheimer Growth Fund
<PAGE>
Statement of Investments June 30, 1996
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
<S> <C> <C> <C>
===================================================================================================================================
Short-Term Notes--31.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Broker/Dealers--4.5%
Dean Witter, Discover & Co., 5.30%, 7/1/96 $17,000,000 $ 17,000,000
---------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co., 5.30%, 7/2/96 15,000,000 14,997,792
---------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.35%, 7/9/96 25,000,000 24,970,278
-----------
56,968,070
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial Finance--3.1% Countrywide Home Loan, 5.40%, 7/16/96 40,000,000 39,910,000
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Finance--2.0% Island Finance Puerto Rico, Inc., 5.31%, 7/12/96 24,800,000 24,759,307
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--9.4% Associates Corp. of North America, 5.60%, 7/1/96 33,900,000 33,900,000
- -----------------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.34%, 7/8/96 45,000,000 44,953,275
---------------------------------------------------------------------------------------------------
Household Finance Corp., 5.35%, 7/10/96 40,000,000 39,946,500
-----------
118,799,775
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services--3.4% PHH Corp., 5.38%, 7/22/96 43,200,000 43,064,424
- -----------------------------------------------------------------------------------------------------------------------------------
Leasing & Factoring--3.8% The Hertz Corp., 5.31%, 7/17/96 48,000,000 47,885,653
- -----------------------------------------------------------------------------------------------------------------------------------
Special Purpose Financial--5.3% New Center Asset Trust, 5.36%, 7/11/96 40,000,000 39,940,444
- -----------------------------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp., 5.28%, 7/2/96 27,685,000 27,680,940
-----------
67,621,384
-----------
Total Short-Term Notes (Cost $399,008,613) 399,008,613
Shares
===================================================================================================================================
Common Stocks--68.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--6.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--2.5% FMC Corp.(1) 25,000 1,631,250
---------------------------------------------------------------------------------------------------
Georgia Gulf Corp. 245,000 7,166,250
---------------------------------------------------------------------------------------------------
IMC Global, Inc. 80,000 3,010,000
---------------------------------------------------------------------------------------------------
Morton International, Inc. 180,000 6,705,000
---------------------------------------------------------------------------------------------------
Praxair, Inc. 30,000 1,267,500
---------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc.(1) 490,000 5,696,250
---------------------------------------------------------------------------------------------------
Terra Industries, Inc. 112,500 1,392,187
---------------------------------------------------------------------------------------------------
Union Carbide Corp. 130,000 5,167,500
-------------
32,035,937
- -----------------------------------------------------------------------------------------------------------------------------------
Metals--1.3% Asarco, Inc. 300,000 8,287,500
---------------------------------------------------------------------------------------------------
British Steel PLC, ADR 95,000 2,410,625
---------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co. 140,000 3,167,500
---------------------------------------------------------------------------------------------------
LTV Corp. 195,000 2,218,125
-------------
16,083,750
- -----------------------------------------------------------------------------------------------------------------------------------
Paper--2.2% Boise Cascade Corp. 185,000 6,775,625
---------------------------------------------------------------------------------------------------
Bowater, Inc. 285,000 10,723,125
---------------------------------------------------------------------------------------------------
Chesapeake Corp. 80,000 2,100,000
---------------------------------------------------------------------------------------------------
Georgia-Pacific Corp. 45,000 3,195,000
---------------------------------------------------------------------------------------------------
Stone Container Corp. 210,000 2,887,500
---------------------------------------------------------------------------------------------------
Weyerhaeuser Co. 25,000 1,062,500
---------------------------------------------------------------------------------------------------
Willamette Industries, Inc. 15,000 892,500
-------------
27,636,250
7 Oppenheimer Growth Fund
<PAGE>
Statement of Investments (Continued)
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--5.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--0.6% Kaufman & Broad Home Corp. 20,000 $ 290,000
---------------------------------------------------------------------------------------------------
Navistar International Corp.(1) 555,000 5,480,625
---------------------------------------------------------------------------------------------------
Toll Brothers, Inc.(1) 110,000 1,801,250
-------------
7,571,875
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--2.2% British Airways PLC, Sponsored ADR 5,000 428,750
---------------------------------------------------------------------------------------------------
Brunswick Corp. 220,000 4,400,000
---------------------------------------------------------------------------------------------------
Disney (Walt) Co. 60,000 3,772,500
---------------------------------------------------------------------------------------------------
KLM Royal Dutch Airlines NV 112,682 3,577,653
---------------------------------------------------------------------------------------------------
Mattel, Inc. 68,358 1,956,748
---------------------------------------------------------------------------------------------------
McDonald's Corp. 50,000 2,337,500
---------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1) 115,000 3,965,703
---------------------------------------------------------------------------------------------------
Outboard Marine Corp. 275,000 4,984,375
---------------------------------------------------------------------------------------------------
Pancho's Mexican Buffet, Inc. 100,000 256,250
---------------------------------------------------------------------------------------------------
Shoney's, Inc.(1) 150,000 1,631,250
-------------
27,310,729
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General--1.5% Dollar General Corp. 293,750 8,592,187
---------------------------------------------------------------------------------------------------
Jones Apparel Group, Inc.(1) 20,000 982,500
---------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc.(1) 25,000 718,750
---------------------------------------------------------------------------------------------------
Tommy Hilfiger Corp.(1) 60,000 3,217,500
---------------------------------------------------------------------------------------------------
Waban, Inc.(1) 165,000 3,939,375
---------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 75,000 1,903,125
-------------
19,353,437
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--1.4% Bed Bath & Beyond, Inc.(1) 310,000 8,292,500
---------------------------------------------------------------------------------------------------
Claire's Stores, Inc. 97,500 2,693,437
---------------------------------------------------------------------------------------------------
Micro Warehouse, Inc.(1) 200,000 4,000,000
---------------------------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc.(1) 100,000 1,150,000
---------------------------------------------------------------------------------------------------
Sotheby's Holdings, Inc., Cl. A 95,000 1,377,500
-------------
17,513,437
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--15.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages--2.1% Coca-Cola Co. (The) 250,000 12,218,750
---------------------------------------------------------------------------------------------------
PepsiCo, Inc. 390,000 13,796,250
-------------
26,015,000
- -----------------------------------------------------------------------------------------------------------------------------------
Food--1.6% IBP, Inc. 360,000 9,945,000
---------------------------------------------------------------------------------------------------
Safeway, Inc.(1) 150,000 4,950,000
---------------------------------------------------------------------------------------------------
Sara Lee Corp. 125,000 4,046,875
---------------------------------------------------------------------------------------------------
Smithfield Foods, Inc.(1) 60,000 1,515,000
-------------
20,456,875
8 Oppenheimer Growth Fund
<PAGE>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--5.7% Abbott Laboratories 200,000 $ 8,700,000
---------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 75,000 6,750,000
---------------------------------------------------------------------------------------------------
Johnson & Johnson 225,840 11,179,080
---------------------------------------------------------------------------------------------------
Merck & Co., Inc. 150,000 9,693,750
---------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 60,000 1,035,000
---------------------------------------------------------------------------------------------------
Pfizer, Inc. 233,000 16,630,375
---------------------------------------------------------------------------------------------------
Schering-Plough Corp. 300,000 18,825,000
-------------
72,813,205
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Becton, Dickinson & Co. 10,000 802,500
Services--3.7% ---------------------------------------------------------------------------------------------------
Boston Scientific Corp.(1) 60,000 2,700,000
---------------------------------------------------------------------------------------------------
Collagen Corp. 75,000 1,434,375
---------------------------------------------------------------------------------------------------
HealthCare COMPARE Corp.(1) 273,500 13,333,125
---------------------------------------------------------------------------------------------------
HEALTHSOUTH Corp.(1) 105,000 3,780,000
---------------------------------------------------------------------------------------------------
Medtronic, Inc. 310,000 17,360,000
---------------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc.(1) 30,000 1,455,000
---------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc.(1) 20,000 822,500
---------------------------------------------------------------------------------------------------
Sofamor Danek Group, Inc.(1) 50,000 1,387,500
---------------------------------------------------------------------------------------------------
Summit Technology, Inc.(1) 235,000 3,290,000
-------------
46,365,000
- -----------------------------------------------------------------------------------------------------------------------------------
Tobacco--2.5% Philip Morris Cos., Inc. 195,000 20,280,000
---------------------------------------------------------------------------------------------------
UST, Inc. 350,000 11,987,500
-------------
32,267,500
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Services & Producers--0.4%
Tidewater, Inc. 120,000 5,265,000
- -----------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated--0.6% Repsol SA, Sponsored ADR 90,000 3,127,500
---------------------------------------------------------------------------------------------------
USX-Marathon Group 250,000 5,031,250
-------------
8,158,750
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--16.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Banks--5.4% Bank of Boston Corp. 355,000 17,572,500
---------------------------------------------------------------------------------------------------
Bank of New York Co., Inc. (The) 19,300 989,125
---------------------------------------------------------------------------------------------------
BankAmerica Corp. 15,000 1,136,250
---------------------------------------------------------------------------------------------------
Bankers Trust New York Corp. 10,000 738,750
---------------------------------------------------------------------------------------------------
Cal Fed Bancorp, Inc.(1) 55,000 1,003,750
---------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 110,000 7,768,750
---------------------------------------------------------------------------------------------------
First Tennessee National Corp. 45,000 1,378,125
---------------------------------------------------------------------------------------------------
First Union Corp. 90,000 5,478,750
---------------------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 124,996 5,437,326
---------------------------------------------------------------------------------------------------
Golden West Financial Corp. 10,000 560,000
---------------------------------------------------------------------------------------------------
Great Western Financial Corp. 150,000 3,581,250
---------------------------------------------------------------------------------------------------
NationsBank Corp. 75,000 6,196,875
---------------------------------------------------------------------------------------------------
Northern Trust Corp. 25,000 1,443,750
9 Oppenheimer Growth Fund
<PAGE>
Statement of Investments (Continued)
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Banks (continued) PNC Bank Corp. 307,500 $ 9,148,125
---------------------------------------------------------------------------------------------------
SouthTrust Corp. 155,000 4,359,375
---------------------------------------------------------------------------------------------------
Standard Federal Bancorporation 5,000 192,500
---------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 40,000 1,480,000
-------------
68,465,201
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--7.7% Advanta Corp., Cl. A 360,000 18,360,000
---------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 115,762 2,734,877
---------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 70,000 5,985,000
---------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 300,000 10,050,000
---------------------------------------------------------------------------------------------------
First USA, Inc. 170,000 9,350,000
---------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 640,000 20,000,000
---------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 128,000 3,168,000
---------------------------------------------------------------------------------------------------
Price (T. Rowe) Associates 27,000 830,250
---------------------------------------------------------------------------------------------------
Salomon, Inc. 137,500 6,050,000
---------------------------------------------------------------------------------------------------
Student Loan Marketing Assn. 100,000 7,400,000
---------------------------------------------------------------------------------------------------
Travelers Group, Inc. 315,000 14,371,875
-------------
98,300,002
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance--3.4% AFLAC, Inc. 184,500 5,511,938
---------------------------------------------------------------------------------------------------
Allstate Corp. 95,000 4,334,375
---------------------------------------------------------------------------------------------------
American International Group, Inc. 15,000 1,479,375
---------------------------------------------------------------------------------------------------
Conseco, Inc. 80,000 3,200,000
---------------------------------------------------------------------------------------------------
Loews Corp. 65,000 5,126,875
---------------------------------------------------------------------------------------------------
MGIC Investment Corp. 15,000 841,875
---------------------------------------------------------------------------------------------------
Reliastar Financial Corp. 135,000 5,821,875
---------------------------------------------------------------------------------------------------
SunAmerica, Inc. 242,500 13,701,250
---------------------------------------------------------------------------------------------------
USF&G Corp. 190,000 3,111,250
-------------
43,128,813
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--4.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--1.4% General Electric Co. 30,000 2,595,000
---------------------------------------------------------------------------------------------------
Kemet Corp.(1) 460,000 9,200,000
---------------------------------------------------------------------------------------------------
Vishay Intertechnology, Inc. 273,000 6,449,625
-------------
18,244,625
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Materials--0.1% Owens Corning 35,000 1,505,000
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services--0.7% Comdisco, Inc. 307,500 8,187,188
---------------------------------------------------------------------------------------------------
Growth Environmental, Inc.(1) 2,100 32
---------------------------------------------------------------------------------------------------
Mercury Air Group, Inc. 121,000 968,000
-------------
9,155,220
10 Oppenheimer Growth Fund
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing--1.1% Giddings & Lewis, Inc. 60,000 $ 975,000
---------------------------------------------------------------------------------------------------
Kulicke & Soffa Industries, Inc.(1) 225,000 3,290,625
---------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 88,200 1,995,525
---------------------------------------------------------------------------------------------------
Textron, Inc. 15,000 1,198,125
---------------------------------------------------------------------------------------------------
U.S. Filter Corp.(1) 20,000 695,000
---------------------------------------------------------------------------------------------------
Varity Corp.(1) 125,000 6,015,625
-------------
14,169,900
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation--0.8% Canadian Pacific Ltd. 245,000 5,390,000
---------------------------------------------------------------------------------------------------
CSX Corp. 25,000 1,206,250
---------------------------------------------------------------------------------------------------
Illinois Central Corp. 105,000 2,979,375
-------------
9,575,625
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--19.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Hardware--6.4% Adaptec, Inc.(1) 55,000 2,605,625
---------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 265,000 18,185,625
---------------------------------------------------------------------------------------------------
Compaq Computer Corp.(1) 280,000 13,790,000
---------------------------------------------------------------------------------------------------
EMC Corp.(1) 240,000 4,470,000
---------------------------------------------------------------------------------------------------
Gateway 2000, Inc.(1) 500,000 17,000,000
---------------------------------------------------------------------------------------------------
Intergraph Corp. 210,000 2,546,250
---------------------------------------------------------------------------------------------------
International Business Machines Corp. 40,000 3,960,000
---------------------------------------------------------------------------------------------------
Quantum Corp.(1) 240,000 3,510,000
---------------------------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 215,000 9,675,000
---------------------------------------------------------------------------------------------------
Western Digital Corp.(1) 220,000 5,747,500
-------------
81,490,000
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software--6.5% Acclaim Entertainment, Inc.(1) 130,000 1,251,250
---------------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 250,000 9,656,250
---------------------------------------------------------------------------------------------------
BMC Software, Inc.(1) 280,000 16,730,000
---------------------------------------------------------------------------------------------------
Broderbund Software, Inc.(1) 30,000 967,500
---------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 155,000 11,043,750
---------------------------------------------------------------------------------------------------
GTech Holdings Corp.(1) 35,000 1,036,875
---------------------------------------------------------------------------------------------------
HBO & Co. 40,000 2,710,000
---------------------------------------------------------------------------------------------------
Informix Corp.(1) 140,000 3,150,000
---------------------------------------------------------------------------------------------------
Microsoft Corp.(1) 160,000 19,220,000
---------------------------------------------------------------------------------------------------
Oracle Corp.(1) 100,000 3,943,750
---------------------------------------------------------------------------------------------------
Peoplesoft, Inc.(1) 10,000 712,500
---------------------------------------------------------------------------------------------------
Sterling Software, Inc.(1) 90,000 6,930,000
---------------------------------------------------------------------------------------------------
System Software Associates, Inc. 325,000 5,525,000
-------------
82,876,875
11 Oppenheimer Growth Fund
<PAGE>
Statement of Investments (Continued)
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics--4.5% Arrow Electronics, Inc.(1) 215,000 $ 9,271,875
---------------------------------------------------------------------------------------------------
Cypress Semiconductor Corp.(1) 610,000 7,320,000
---------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 15,000 1,494,375
---------------------------------------------------------------------------------------------------
Intel Corp. 115,000 8,445,313
---------------------------------------------------------------------------------------------------
International Rectifier Corp.(1) 167,500 2,700,938
---------------------------------------------------------------------------------------------------
Linear Technology Corp. 70,000 2,100,000
---------------------------------------------------------------------------------------------------
Novellus Systems, Inc.(1) 245,000 8,820,000
---------------------------------------------------------------------------------------------------
Philips Electronics NV, ADR 80,000 2,610,000
---------------------------------------------------------------------------------------------------
Tektronix, Inc. 65,000 2,908,750
---------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 20,000 997,500
---------------------------------------------------------------------------------------------------
Varian Associates, Inc. 60,000 3,105,000
---------------------------------------------------------------------------------------------------
VLSI Technology, Inc.(1) 355,000 4,925,625
---------------------------------------------------------------------------------------------------
Wyle Electronics 60,000 1,987,500
-------------
56,686,876
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications- 3Com Corp.(1) 220,000 10,065,000
Technology--1.8% ---------------------------------------------------------------------------------------------------
AT&T Corp. 100,000 6,200,000
---------------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 90,000 1,935,000
---------------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd., Sponsored ADR 75,000 5,006,250
-------------
23,206,250
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--0.4% Empresa Nacional de Electricidad SA, Sponsored ADR 75,000 4,696,875
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--0.3% Telefonos de Mexico SA, Sponsored ADR 100,000 3,350,000
---------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $540,004,420) 873,698,007
Units
===================================================================================================================================
Rights, Warrants and Certificates--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Windmere Corp. Wts., Exp. 1/98 (Cost $0) 9,062 --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $939,013,033) 100.3% 1,272,706,620
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.3) (3,473,087)
----- --------------
Net Assets 100.0% $1,269,233,533
===== ==============
1. Non-income producing security.
See accompanying Notes to Financial Statements
12 Oppenheimer Growth Fund
<PAGE>
Statement of Assets and Liabilities June 30, 1996
===================================================================================================================================
Assets Investments, at value (cost $939,013,033)--see accompanying statement $1,272,706,620
---------------------------------------------------------------------------------------------------
Receivables:
Investments sold 2,424,085
Shares of beneficial interest sold 1,189,276
Interest and dividends 920,353
---------------------------------------------------------------------------------------------------
Other 151,004
-------------
Total assets 1,277,391,338
===================================================================================================================================
Liabilities Bank overdraft 23,988
---------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 5,015,348
Shares of beneficial interest redeemed 1,938,972
Distribution and service plan fees 553,350
Trustees' fees 278,142
Shareholder reports 175,955
Transfer and shareholder servicing agent fees 85,699
Dividends 30,352
Other 55,999
--------------
Total liabilities 8,157,805
===================================================================================================================================
Net Assets $1,269,233,533
==============
===================================================================================================================================
Composition of Paid-in capital $ 837,674,129
Net Assets ---------------------------------------------------------------------------------------------------
Undistributed net investment income 8,210,351
---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 89,655,466
---------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 333,693,587
--------------
Net assets $1,269,233,533
==============
===================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets
of $1,120,045,776 and 33,508,383 shares of beneficial interest outstanding) $33.43
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $35.47
---------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $129,484,414 and 3,955,435 shares of beneficial interest outstanding) $32.74
---------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $3,592,867 and 108,160 shares of beneficial interest outstanding) $33.22
---------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $16,110,476 and 482,038 shares of beneficial interest outstanding) $33.42
See accompanying Notes to Financial Statements.
13 Oppenheimer Growth Fund
<PAGE>
Statement of Operations For the Year Ended June 30, 1996
===================================================================================================================================
Investment Income Interest $ 17,120,681
---------------------------------------------------------------------------------------------------
Dividends 10,705,764
-------------
Total income 27,826,445
===================================================================================================================================
Expenses Management fees--Note 4 7,558,069
---------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,726,845
Class B 904,437
Class C 11,561
---------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 1,619,012
---------------------------------------------------------------------------------------------------
Shareholder reports 356,339
---------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 134,218
---------------------------------------------------------------------------------------------------
Legal and auditing fees 70,515
---------------------------------------------------------------------------------------------------
Custodian fees and expenses 64,836
---------------------------------------------------------------------------------------------------
Insurance expenses 48,839
---------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 626
Class B 25,101
Class C 1,191
Class Y 3,930
---------------------------------------------------------------------------------------------------
Other 98,330
-------------
Total expenses 12,623,849
===================================================================================================================================
Net Investment Income 15,202,596
===================================================================================================================================
Realized and Unrealized Net realized gain on investments 123,112,424
Gain on Investments ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 65,683,680
-------------
Net realized and unrealized gain 188,796,104
===================================================================================================================================
Net Increase in Net Assets Resulting From Operations $ 203,998,700
=============
See accompanying Notes to Financial Statements.
14 Oppenheimer Growth Fund
<PAGE>
Statements of Changes in Net Assets
Year Ended June 30,
1996 1995
===================================================================================================================================
Operations Net investment income $ 15,202,596 $ 9,619,976
---------------------------------------------------------------------------------------------------
Net realized gain 123,112,424 85,671,017
---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 65,683,680 104,043,105
-------------- -------------
Net increase in net assets resulting from operations 203,998,700 199,334,098
===================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A (12,145,385) (5,772,443)
Shareholders Class B (763,600) (71,931)
Class C (8,006) --
Class Y (111,943) (1,224)
---------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (92,881,153) (67,428,961)
Class B (8,596,317) (1,571,030)
Class C (61,792) --
Class Y (783,715) (13,169)
---------------------------------------------------------------------------------------------------
Beneficial Interest Net increase in net assets resulting from beneficial interest
Transactions transactions--Note2:
Class A 176,397,622 83,386,522
Class B 81,183,295 30,660,868
Class C 3,526,653 --
Class Y 12,281,833 2,984,504
===================================================================================================================================
Net Assets Total increase 362,036,192 241,507,234
---------------------------------------------------------------------------------------------------
Beginning of period 907,197,341 665,690,107
-------------- -------------
End of period (including undistributed net investment
income of $8,210,351 and $6,036,689, respectively) $1,269,233,533 $ 907,197,341
============== =============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Growth Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
----------------------------------------------------
Year Ended June 30,
1996 1995 1994 1993 1992
=================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $30.80 $26.65 $27.34 $24.94 $21.88
- -------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .44 .36 .16 .19 .29
Net realized and unrealized gain (loss)
on investments 5.70 6.83 (.05) 4.03 3.13
---------- ------- ------- ------- -------
Total income (loss) from
investment operations 6.14 7.19 .11 4.22 3.42
- -------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.41) (.24) (.16) (.25) (.36)
Distributions from net realized gain
on investments (3.10) (2.80) (.64) (1.57) --
---------- ------- ------- ------- -------
Total dividends and distributions
to shareholders (3.51) (3.04) (.80) (1.82) (.36)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $33.43 $30.80 $26.65 $27.34 $24.94
========== ======= ======= ======= =======
=================================================================================================
Total Return, at Net Asset Value(4) 21.00% 29.45% 0.27% 16.88% 15.69%
=================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $1,120,046 $860,741 $656,934 $743,830 $630,767
- -------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,018,022 $727,102 $720,765 $710,391 $624,527
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.43% 1.31% 0.56% 0.72% 1.14%
Expenses 1.06% 1.05% 1.07% 0.93% 0.90%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38.0% 35.6% 19.8% 23.2% 36.7%
Average brokerage commissions(7) $0.0583 -- -- -- --
</TABLE>
1. For the period from June 1, 1994 (inception of offering) to June 30, 1994.
2. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
3. 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.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
16 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Class B Class C Class Y
------------------------------ ------------ ----------------------------
Period Ended
Year Ended June 30, June 30, Year Ended June 30,
1996 1995 1994(3) 1996(2) 1996 1995 1994(1)
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $30.36 $26.44 $27.02 $33.44 $30.80 $26.64 $28.08
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .23 .20 (.04) .40 .46 .30 .02
Net realized and unrealized gain (loss)
on investments 5.53 6.65 .21 2.88 5.70 6.92 (1.46)
------- ------- ------ ------- ------- ----- ------
Total income (loss) from
investment operations 5.76 6.85 .17 3.28 6.16 7.22 (1.44)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.28) (.13) (.11) (.40) (.44) (.26) --
Distributions from net realized gain
on investments (3.10) (2.80) (.64) (3.10) (3.10) (2.80) --
------- ------- ------ ------- ------- ----- ------
Total dividends and distributions
to shareholders (3.38) (2.93) (.75) (3.50) (3.54) (3.06) --
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $32.74 $30.36 $26.44 $33.22 $33.42 30.80 $26.64
======= ======= ====== ======= ======= ===== ======
===========================================================================================================================
Total Return, at Net Asset Value(4) 19.95% 28.22% (0.20)% 10.07% 21.10% 29.59% (5.13)%
===========================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $129,484 $43,267 $8,747 $3,593 $16,110 $3,189 $ 9
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 90,501 $18,722 $5,119 $1,804 $ 9,384 $ 536 $10
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.60% 0.44% (0.22)%(5) 0.65%(5) 1.56% 1.54% 1.09%(5)
Expenses 1.89% 2.02% 1.98%(5) 1.81%(5) 0.94% 1.04% 1.25%(5)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38.0% 35.6% 19.8% 38.0% 38.0% 35.6% 19.8%
Average brokerage commissions(7) $0.0583 -- -- $0.0583 $0.0583 -- --
</TABLE>
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, 1996 were $317,162,338 and $308,722,352, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold. See accompanying Notes to Financial Statements.
17 Oppenheimer Growth Fund
<PAGE>
Notes to Financial Statements
================================================================================
1. Significant
Accounting Policies
Oppenheimer Growth Fund (the Fund), is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to seek capital appreciation. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund
offers Class A, Class B, Class C and Class Y shares. Class A shares are sold
with a front-end sales charge. Class B and Class C shares may be subject to a
contingent deferred sales charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its own
expenses directly attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. Classes A, B and C 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 are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
- --------------------------------------------------------------------------------
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, 1996, a provision of $102,655 was made for the Fund's projected benefit
obligations and payments of $6,672 were made to retired trustees, resulting in
an accumulated liability of $251,146 at June 30, 1996.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of the distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gain (loss) was recorded by the
Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
18 Oppenheimer Growth Fund
<PAGE>
================================================================================
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>
Year Ended June 30, 1996(1) Year Ended June 30, 1995
------------------------------- -------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A:
Sold 8,407,775 $ 275,835,781 5,288,654 $ 147,552,419
Dividends and distributions reinvested 3,323,811 101,576,179 2,803,654 70,904,457
Redeemed (6,169,610) (201,014,338) (4,799,772) (135,070,354)
---------- ------------- ---------- -------------
Net increase 5,561,976 $ 176,397,622 3,292,536 $ 83,386,522
========== ============= ========== =============
- -----------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 3,119,546 $ 100,609,679 1,407,470 $ 39,568,793
Dividends and distributions reinvested 288,253 8,664,821 64,577 1,618,927
Redeemed (877,701) (28,091,205) (377,530) (10,526,852)
---------- ------------- ---------- -------------
Net increase 2,530,098 $ 81,183,295 1,094,517 $ 30,660,868
========== ============= ========== =============
- -----------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 111,265 $ 3,624,375 -- $ --
Dividends and distributions reinvested 2,287 69,761 -- --
Redeemed (5,392) (167,483) -- --
---------- ------------- ---------- -------------
Net increase 108,160 $ 3,526,653 -- $ --
========== ============= ========== =============
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Sold 439,359 $ 14,330,346 113,317 $ 3,284,040
Dividends and distributions reinvested 29,328 895,658 569 14,393
Redeemed (90,199) (2,944,171) (10,692) (313,929)
---------- ------------- ---------- -------------
Net increase 378,488 $ 12,281,833 103,194 $ 2,984,504
========== ============= ========== =============
</TABLE>
1. For the year ended June 30, 1996 for Class A, B and Y shares, and for the
period from November 1, 1995 (inception of offering) to June 30, 1996 for Class
C shares.
================================================================================
3. Unrealized Gains and
Losses on Investments
At June 30, 1996, net unrealized appreciation on investments of $333,693,587 was
composed of gross appreciation of $350,414,322, and gross depreciation of
$16,720,735.
19 Oppenheimer Growth Fund
<PAGE>
Notes to Financial Statements (Continued)
================================================================================
4. Management Fees
And Other Transactions
With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.75% on the first
$200 million of average annual net assets with a reduction of 0.03% on each $200
million thereafter to $800 million, and 0.60% on net assets in excess of $800
million. The Manager has voluntarily undertaken to waive a portion of its
management fee, whereby the Fund shall pay an annual management fee of 0.58% of
its net assets in excess of $1.5 billion. 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, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $3,426,100, of which $956,285 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $2,653,893 and $29,603, of which $130,924 was paid to an
affiliated broker/dealer for Class B shares. During the year ended June 30,
1996, OFDI received contingent deferred sales charges of $157,312 upon
redemption of Class B shares as reimbursement for sales commissions advanced by
OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are allocated
ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% of the average annual net
assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the year ended June 30, 1996, OFDI paid $48,287 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
The Fund has adopted a reimbursement type Distribution and Service Plan
for Class B shares to reimburse OFDI for its services and costs in distributing
Class B shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class B shares that are
outstanding for 6 years or less. OFDI also receives a service fee of 0.25% per
year to reimburse dealers for providing personal services for accounts that hold
Class B shares. Both fees are computed on the average annual net assets of Class
B shares, determined as of the close of each regular business day. If the Plan
is terminated by the Fund, the Board of Trustees may allow the Fund to continue
payments of the asset-based sales charge to OFDI for certain expenses it
incurred before the Plan was terminated. During the year ended June 30, 1996,
OFDI paid $5,467 to an affiliated broker/dealer as reimbursement for Class B
personal service and maintenance expenses and retained $808,757 as reimbursement
for Class B sales commissions and service fee advances, as well as financing
costs. As of June 30, 1996, OFDI had incurred unreimbursed expenses of
$3,621,450 for Class B.
The Fund has adopted a compensation type Distribution and Service Plan
for Class C shares to compensate OFDI for its services and costs in distributing
Class C shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class C shares. OFDI also
receives a service fee of 0.25% per year to compensate dealers for providing
personal services for accounts that hold Class C shares. Both fees are computed
on the average annual net assets of Class C shares, determined as of the close
of each regular business day. If the Plan is terminated by the Fund, the Board
of Trustees may allow the Fund to continue payments of the asset-based sales
charge to OFDI for certain expenses it incurred before the Plan was terminated.
During the year ended June 30, 1996, OFDI retained $11,561 as compensation for
Class C sales commissions and service fee advances, as well as financing costs.
As of June 30, 1996, OFDI had incurred unreimbursed expenses of $55,221 for
Class C.
20 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, 1996, 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 five-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, 1996, 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, 1996, 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 five-year period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
July 22, 1996
21 Oppenheimer Growth Fund
<PAGE>
Federal Income Tax Information (Unaudited)
================================================================================
In early 1997, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1996. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $3.5073, $3.3773, $3.5037 and $3.5449 per share were
paid to Class A, Class B, Class C and Class Y shareholders, respectively, on
December 28, 1995, of which $2.9244 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, 1996
which are not designated as capital gain distributions should be multiplied by
30.61% 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.
22 Oppenheimer Growth Fund
<PAGE>
Oppenheimer Growth Fund
================================================================================
Officers and Trustees
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert C. Doll, Jr., Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder
Servicing Agent
OppenheimerFunds Services
================================================================================
Custodian of
Portfolio Securities The Bank of New York
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
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.
23 Oppenheimer Growth Fund
<PAGE>
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