[FRONT COVER]
Oppenheimer Growth Fund
Annual Report August 31, 1996
[PICTURE OF GOURMET SHOP]
"We have
a lot of
important goals,
so we need
our money
to grow solidly
over time."
[LOGO] OppenheimerFunds(R)
<PAGE>
News
Beat the Average
Cumulative Annual Total Return
for the 3-Year Period Ended
8/31/96:
Oppenheimer Growth Fund
Class A (at net asset value)(1)
57.92%
S&P 500(3)
40.65%
Lipper Growth Funds Average(4)
42.68%
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
currently 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.
Growth Fund investments are primarily in 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 12 months ended 8/31/96 for Class A, B
and Y shares were 16.21%, 15.19% and 16.31%, respectively. Cumulative total
return at net asset value for Class C shares since inception on 11/1/95 was
10.73%.(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 8/31/96 were 9.52%,
12.69% and 11.97%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 8/31/96 and since inception on 8/17/93 were
10.19% and 14.88%, respectively. For Class C shares, cumulative total return
since inception on 11/1/95 was 9.74%. For Class Y shares, average annual total
returns for the 1-year period and since inception on 6/1/94 were 16.31% and
19.78%, respectively.(2)
Outlook
"Our outlook for the Fund remains very positive. Our plan is to continue to
search for companies that exhibit strong long-term growth potential and then
purchase them when their prices have come down to what we believe are reasonable
levels. We feel that by maintaining this proven strategy and investing
accordingly, we have positioned the Fund to exhibit strong performance over the
long term."
Robert Doll, Portfolio Manager
August 31, 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 8/31/95, 8/31/91
and 8/31/86, 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 8/31/95 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 returns show results of a hypothetical investment
on 11/1/95 (inception of class), after the deduction of the 1% contingent
deferred sales charge. When such returns are calculated in the same manner for
the period ended 9/30/96, they are as follows: for Class A shares, 11.46%,
14.09% and 12.68% for the 1-, 5- and 10-year periods; for Class B shares, 12.23%
and 16.31% for the 1-year period and since inception; for Class C shares,
cumulative total return since inception was 15.29%; and for Class Y shares,
18.39% and 21.62% for the 1-year period and since inception. An example 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, 8/31/96. The Lipper total return average
for the 3-year period was for 395 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>
[PHOTO-BRIDGET A. MACASKILL]
Bridget A. Macaskill
President
Oppenheimer
Growth Fund
Dear Shareholder,
Over the past few months, the stock market has shown investors just how
unpredictable it can be. During this time, the market has experienced some
remarkable shifts, both up and down. Despite the recent volatility, we remain
optimistic and see this activity as "normal" movement in a bull market rather
than the onset of a bear market. Here's why.
We entered this period agreeing with many experts that the stock market was
probably due for some kind of a downturn. After all, we had not experienced any
real market correction in six years, making this the longest bull market of the
post-World War II era. Although the market did decline significantly in June and
July, we believe that long-term it will remain strong for the following three
reasons: strong corporate profits; low inflation; and stabilized interest rates.
First, because corporate profits of U.S. companies had advanced at a
double-digit rate between 1992 and 1995, investors had fully expected this
year's profit tallies to be flat. But instead, corporate America continued to
perform. Corporate profits were strong during the first part of the year due to
the fact that many companies reduced their operating expenses and frequently
applied their profits to their businesses.
Second, it is our belief that in today's world, faster economic growth may
not necessarily mean higher inflation. For example, despite reports of an
increase in hourly wages, inflation has remained low. In fact, our outlook is
that inflation will remain under control, primarily because of the Federal
Reserve's conservative monetary policy over the last few years as well as the
declining federal government deficit which should help the stock market to
remain strong.
Third, the strength of the stock market earlier this year is all the more
noteworthy because it came during a time when interest rates moved up
sharply--the yield on the benchmark 30-year U.S. Treasury bond rose from under
6% in January to about 7% today. Interest rates have been rising partly because
investors are concerned about whether the economy is growing fast enough to
generate higher inflation. And, while it's impossible to predict how interest
rates will fluctuate, we believe they will stabilize over the next few months.
Rest assured, however, that we will continue to monitor this situation very
closely and would become very cautious in anticipating the stock market's
performance if inflation were to flare up.
Taking these factors into account this year, our managers have worked hard
to strive to meet their Fund's objective--being careful not to abandon their
investment styles in response to short-term changes in the market. Additionally,
they understand that, historically, a diversified portfolio of stocks has
provided superior growth over the long term. With that in mind, it is critical
for investors to remain focused on long-term goals and put near-term
fluctuations in their proper perspective.
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
September 20, 1996
The Board of Trustees recently decided to change the fiscal year end of this
Fund from June 30 to August 31 in order to facilitate the auditing process. Due
to this change, the next shareholder report you receive will cover the six-month
period ended February 28, 1997.
3 Oppenheimer Growth Fund
<PAGE>
Q + A
Q How has the Fund performed?
An interview with your Fund's managers.
How did the Fund perform over the past two months?
In terms of performance, the Fund has made quite a gain due to the fact we went
into this brief period with higher than usual cash level during the month of
June, which helped to protect the portfolio when the market was declining in
July. So, while we were slightly behind the competition at the end of the second
quarter, thanks to our relatively high cash level, we are now nicely positioned
year-to-date in the first quartile of our peer group.(1)
What investments made positive contributions to performance?
Part of the Fund's strategy is to look for companies that have the potential for
above average earnings growth and are priced below what we feel they are worth.
With this in mind, we recently sold a large number of stocks in the portfolio
because they hit our price targets. Additionally, with the prices of many stocks
having reached all-time highs, we found it difficult to find companies that
were affordable and also had attractive earnings potential. However, when the
market declined in July and stock prices dropped, we were able to find quite a
nice selection of stocks that were reasonably priced.
The biggest area of increase during this short period was our addition to
our holdings in technology stocks, primarily systems software firms and
semiconductor companies. We also increased our financial services holdings,
adding to our existing positions in brokerage firms and life insurance
companies.(2)
Were there any investments that didn't perform as you'd expected?
Some of the chemical and basic materials stocks haven't done as well as we had
hoped, specifically, the larger paper
1. Source:Lipper Analytical Services, 8/31/96. Oppenheimer Growth Fund Class A
shares for the year-to-date period ended 8/31/96 was ranked 135th out of 673
funds; and for the 1-year period ended 8/31/96, the Fund was 200th out of 621
funds in its category. Oppenheimer Growth Fund is characterized by Lipper as a
growth fund. This comparison does not take sales charges into consideration.
Past performance is no guarantee for future results.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Growth Fund
<PAGE>
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 Because
of its defensive
position, the
Fund has
made some
real gains.
companies. Although they did well in the early part of the year, once the
economy showed signs of slowing and the stock market experienced significant
declines, many of these stocks declined also. We had hoped these stocks would
come around after the correction, but that doesn't seem to be the case.
What areas of the market are you currently targeting?
We like the technology sector and intend to add to our positions as
opportunities present themselves. We are coming into the fourth quarter of the
year which is traditionally a very strong period for technology stocks because
it's back to school time when demand for computer equipment generally increases.
On the corporate end, this is also a strong period because businesses are
pressed to spend their budgets before the end of the calendar year. For these
two reasons, computer companies historically launch new software products during
this period, which cause a whole new wave of computer upgrades, both in the home
and office.
In addition, we favor the financial services stocks and don't see that
changing unless interest rates increase significantly from where they are now,
particularly short-term interest rates. Going forward to the end of the year, we
are working to reduce the cash level in the portfolio. We'd like to get it under
20 percent and we'll do that as more stocks hit our price target.
What is your outlook for the Fund?
Our outlook for the Fund remains very positive. We've recently seen some big
swings in the market--but through it all, our investment strategy has remained
the same. History has shown us that investors with long-term goals are often
well-served by growth-oriented securities and that over time, stocks are among
the best-known investments for growth potential. Our plan is to continue to
search for companies that exhibit strong long-term growth potential and then
purchase them when their prices have come down to what we believe are reasonable
levels. We feel that by maintaining this proven strategy and investing
accordingly, we have positioned the Fund to exhibit strong performance over the
long term. []
5 Oppenheimer Growth Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
Contents
Statement of Investments 7
Statement of Assets and Liabilities 13
Statements 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>
<TABLE>
<CAPTION>
Statement of Investments August 31, 1996
Market Value
Shares See Note 1
====================================================================================================================================
<S> <C> <C> <C>
Common Stocks--68.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Materials--4.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals--1.9%
FMC Corp.(1) 25,000 $ 1,600,000
----------------------------------------------------------------------------------------------------------------
Georgia Gulf Corp. 210,000 6,615,000
----------------------------------------------------------------------------------------------------------------
Morton International, Inc. 180,000 6,682,500
----------------------------------------------------------------------------------------------------------------
Praxair, Inc. 30,000 1,233,750
----------------------------------------------------------------------------------------------------------------
Terra Industries, Inc. 112,500 1,490,625
----------------------------------------------------------------------------------------------------------------
Union Carbide Corp. 161,100 6,967,575
--------------
24,589,450
- ------------------------------------------------------------------------------------------------------------------------------------
Metals--1.2%
Asarco, Inc. 300,000 7,762,500
----------------------------------------------------------------------------------------------------------------
British Steel PLC, ADR 95,000 2,766,875
----------------------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co. 140,000 2,975,000
----------------------------------------------------------------------------------------------------------------
LTV Corp. 195,000 2,291,250
--------------
15,795,625
- ------------------------------------------------------------------------------------------------------------------------------------
Paper--1.8%
Boise Cascade Corp. 185,000 6,243,750
----------------------------------------------------------------------------------------------------------------
Bowater, Inc. 315,000 11,340,000
----------------------------------------------------------------------------------------------------------------
Chesapeake Corp. 65,000 1,592,500
----------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp. 15,000 1,115,625
----------------------------------------------------------------------------------------------------------------
Stone Container Corp. 210,000 2,913,750
--------------
23,205,625
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--6.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--0.6%
Kaufman & Broad Home Corp. 20,000 245,000
----------------------------------------------------------------------------------------------------------------
Navistar International Corp.(1) 555,000 5,411,250
----------------------------------------------------------------------------------------------------------------
Toll Brothers, Inc.(1) 110,000 1,911,250
--------------
7,567,500
- ------------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--2.7%
Alaska Air Group, Inc.(1) 65,000 1,373,125
----------------------------------------------------------------------------------------------------------------
AMR Corp.(1) 45,000 3,690,000
----------------------------------------------------------------------------------------------------------------
British Airways PLC, Sponsored ADR 5,000 411,250
----------------------------------------------------------------------------------------------------------------
Brunswick Corp. 250,000 5,281,250
----------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 60,000 3,420,000
----------------------------------------------------------------------------------------------------------------
KLM Royal Dutch Airlines NV 112,682 3,141,011
----------------------------------------------------------------------------------------------------------------
Mattel, Inc. 40,000 1,055,000
----------------------------------------------------------------------------------------------------------------
McDonald's Corp. 75,000 3,478,125
----------------------------------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A(1) 30,000 1,132,500
----------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1) 190,000 5,367,500
----------------------------------------------------------------------------------------------------------------
Outboard Marine Corp. 275,000 4,606,250
----------------------------------------------------------------------------------------------------------------
Pancho's Mexican Buffet, Inc. 100,000 212,500
----------------------------------------------------------------------------------------------------------------
Shoney's, Inc.(1) 150,000 1,368,750
--------------
34,537,261
</TABLE>
7 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Continued)
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Retail: General--1.6%
Dillard Department Stores, Inc., Cl. A 5,000 $ 170,000
----------------------------------------------------------------------------------------------------------------
Dollar General Corp. 293,750 9,473,437
----------------------------------------------------------------------------------------------------------------
Eckerd Corp.(1) 56,700 1,389,150
----------------------------------------------------------------------------------------------------------------
Jones Apparel Group, Inc.(1) 35,000 1,938,125
----------------------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc.(1) 25,000 662,500
----------------------------------------------------------------------------------------------------------------
Tommy Hilfiger Corp.(1) 60,000 3,007,500
----------------------------------------------------------------------------------------------------------------
Waban, Inc.(1) 165,000 3,506,250
--------------
20,146,962
- ------------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--1.4%
Bed Bath & Beyond, Inc.(1) 310,000 7,013,750
----------------------------------------------------------------------------------------------------------------
Claire's Stores, Inc. 97,500 3,217,500
----------------------------------------------------------------------------------------------------------------
Micro Warehouse, Inc.(1) 200,000 5,375,000
----------------------------------------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc.(1) 100,000 837,500
----------------------------------------------------------------------------------------------------------------
Ross Stores, Inc. 15,000 577,500
----------------------------------------------------------------------------------------------------------------
Sotheby's Holdings, Inc., Cl. A 95,000 1,472,500
--------------
18,493,750
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--13.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Beverages--1.7%
Coca-Cola Co. (The) 210,000 10,500,000
----------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 390,000 11,212,500
--------------
21,712,500
- ------------------------------------------------------------------------------------------------------------------------------------
Food--1.5%
IBP, Inc. 360,000 8,415,000
----------------------------------------------------------------------------------------------------------------
Safeway, Inc.(1) 150,000 5,437,500
----------------------------------------------------------------------------------------------------------------
Sara Lee Corp. 125,000 3,937,500
----------------------------------------------------------------------------------------------------------------
Smithfield Foods, Inc.(1) 60,000 1,665,000
--------------
19,455,000
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--4.4%
Bristol-Myers Squibb Co. 75,000 6,581,250
----------------------------------------------------------------------------------------------------------------
Johnson & Johnson 200,300 9,864,775
----------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 140,000 9,187,500
----------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 225,000 15,975,000
----------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 280,000 15,645,000
--------------
57,253,525
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies &
Services--3.8%
Beverly Enterprises, Inc.(1) 5,000 51,250
----------------------------------------------------------------------------------------------------------------
Boston Scientific Corp.(1) 35,000 1,605,625
----------------------------------------------------------------------------------------------------------------
Collagen Corp. 75,000 1,481,250
----------------------------------------------------------------------------------------------------------------
HealthCare COMPARE Corp.(1) 375,000 16,031,250
----------------------------------------------------------------------------------------------------------------
HEALTHSOUTH Corp.(1) 140,000 4,532,500
----------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 310,000 16,120,000
----------------------------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc.(1) 90,000 2,317,500
----------------------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc.(1) 55,000 2,516,250
----------------------------------------------------------------------------------------------------------------
Sofamor Danek Group, Inc.(1) 115,000 3,306,250
----------------------------------------------------------------------------------------------------------------
Summit Technology, Inc.(1) 240,000 1,590,000
--------------
49,551,875
</TABLE>
8 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tobacco--2.2%
Philip Morris Cos., Inc. 195,000 $ 17,501,250
----------------------------------------------------------------------------------------------------------------
UST, Inc. 350,000 10,500,000
--------------
28,001,250
- ------------------------------------------------------------------------------------------------------------------------------------
Energy--1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Energy Services &
Producers--0.5%
Global Marine, Inc.(1) 50,000 718,750
----------------------------------------------------------------------------------------------------------------
Tidewater, Inc. 150,000 5,756,250
--------------
6,475,000
- ------------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated--0.7%
Phillips Petroleum Co. 30,000 1,215,000
----------------------------------------------------------------------------------------------------------------
Repsol SA, Sponsored ADR 90,000 2,936,250
----------------------------------------------------------------------------------------------------------------
USX-Marathon Group 250,000 5,218,750
--------------
9,370,000
- ------------------------------------------------------------------------------------------------------------------------------------
Financial--17.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Banks--5.4%
Bank of Boston Corp. 355,000 18,726,250
----------------------------------------------------------------------------------------------------------------
Bank of New York Co., Inc. (The) 38,600 1,075,975
----------------------------------------------------------------------------------------------------------------
BankAmerica Corp. 15,000 1,162,500
----------------------------------------------------------------------------------------------------------------
Bankers Trust New York Corp. 10,000 777,500
----------------------------------------------------------------------------------------------------------------
Cal Fed Bancorp, Inc.(1) 55,000 1,251,250
----------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 110,000 8,181,250
----------------------------------------------------------------------------------------------------------------
First Tennessee National Corp. 30,000 1,023,750
----------------------------------------------------------------------------------------------------------------
First Union Corp. 90,000 5,748,750
----------------------------------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 124,996 5,218,583
----------------------------------------------------------------------------------------------------------------
Great Western Financial Corp. 131,400 3,252,150
----------------------------------------------------------------------------------------------------------------
NationsBank Corp. 90,000 7,661,250
----------------------------------------------------------------------------------------------------------------
Northern Trust Corp. 25,000 1,640,625
----------------------------------------------------------------------------------------------------------------
PNC Bank Corp. 307,500 9,609,375
----------------------------------------------------------------------------------------------------------------
SouthTrust Corp. 155,000 4,572,500
----------------------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 5,000 191,875
--------------
70,093,583
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--8.5%
Advanta Corp., Cl. A 360,000 17,595,000
----------------------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 231,700 5,415,987
----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 70,000 6,186,250
----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn 300,000 9,300,000
----------------------------------------------------------------------------------------------------------------
First USA, Inc. 210,000 11,130,000
----------------------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 640,000 22,240,000
----------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 260,000 5,492,500
----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 20,000 1,225,000
----------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc. 25,000 1,193,750
----------------------------------------------------------------------------------------------------------------
Price (T. Rowe) Associates 65,000 1,885,000
----------------------------------------------------------------------------------------------------------------
Quick & Reilly Group, Inc. 10,000 292,500
----------------------------------------------------------------------------------------------------------------
Salomon, Inc. 137,500 6,187,500
----------------------------------------------------------------------------------------------------------------
Student Loan Marketing Assn. 100,000 7,362,500
----------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 315,000 13,663,125
--------------
109,169,112
</TABLE>
9 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Continued)
Market Value
Shares See Note 1
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Insurance--3.7%
AFLAC, Inc. 210,000 $ 7,218,750
----------------------------------------------------------------------------------------------------------------
Allstate Corp. 65,000 2,900,625
----------------------------------------------------------------------------------------------------------------
American International Group, Inc. 15,000 1,425,000
----------------------------------------------------------------------------------------------------------------
Conseco, Inc. 80,000 3,360,000
----------------------------------------------------------------------------------------------------------------
Loews Corp. 80,000 5,980,000
----------------------------------------------------------------------------------------------------------------
MGIC Investment Corp. 15,000 950,625
----------------------------------------------------------------------------------------------------------------
Reliastar Financial Corp. 135,000 5,956,875
----------------------------------------------------------------------------------------------------------------
SunAmerica, Inc. 242,500 16,520,313
----------------------------------------------------------------------------------------------------------------
USF&G Corp. 190,000 3,063,750
--------------
47,375,938
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial--4.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--1.3%
General Electric Co. 30,000 2,493,750
----------------------------------------------------------------------------------------------------------------
Kemet Corp.(1) 510,000 8,670,000
----------------------------------------------------------------------------------------------------------------
Vishay Intertechnology, Inc.(1) 273,000 5,494,125
--------------
16,657,875
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial Materials--0.1%
Owens Corning(1) 35,000 1,273,125
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial Services--0.8%
Comdisco, Inc. 307,500 7,995,000
----------------------------------------------------------------------------------------------------------------
Growth Environmental, Inc.(1) 2,100 32
----------------------------------------------------------------------------------------------------------------
Mercury Air Group, Inc. 121,000 892,375
----------------------------------------------------------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 15,000 751,875
--------------
9,639,282
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing--1.0%
Giddings & Lewis, Inc. 60,000 780,000
----------------------------------------------------------------------------------------------------------------
Kulicke & Soffa Industries, Inc.(1) 225,000 2,221,875
----------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 95,000 2,042,500
----------------------------------------------------------------------------------------------------------------
Sealed Air Corp.(1) 70,000 2,651,250
----------------------------------------------------------------------------------------------------------------
Textron, Inc. 15,000 1,280,625
----------------------------------------------------------------------------------------------------------------
Trinity Industries, Inc. 25,000 809,375
----------------------------------------------------------------------------------------------------------------
U.S. Filter Corp.(1) 30,000 783,750
----------------------------------------------------------------------------------------------------------------
Varity Corp.(1) 50,000 2,512,500
--------------
13,081,875
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation--0.9%
Canadian Pacific Ltd. (New) 245,000 5,512,500
----------------------------------------------------------------------------------------------------------------
CSX Corp. 50,000 2,531,250
----------------------------------------------------------------------------------------------------------------
Illinois Central Corp. 105,000 3,176,250
--------------
11,220,000
- ------------------------------------------------------------------------------------------------------------------------------------
Technology--20.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Hardware--7.2%
Adaptec, Inc.(1) 55,000 2,743,125
----------------------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 265,000 16,165,000
----------------------------------------------------------------------------------------------------------------
Compaq Computer Corp.(1) 250,000 14,156,250
----------------------------------------------------------------------------------------------------------------
Dell Computer Corp.(1) 25,000 1,678,125
----------------------------------------------------------------------------------------------------------------
EMC Corp.(1) 290,000 5,582,500
</TABLE>
10 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Computer Hardware
(continued)
Gateway 2000, Inc.(1) 500,000 $ 22,281,250
----------------------------------------------------------------------------------------------------------------
Intergraph Corp.(1) 300,000 2,737,500
----------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 40,000 4,575,000
----------------------------------------------------------------------------------------------------------------
Quantum Corp.(1) 220,000 3,382,500
----------------------------------------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 215,000 10,320,000
----------------------------------------------------------------------------------------------------------------
Western Digital Corp.(1) 270,000 9,483,750
--------------
93,105,000
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Software--6.6%
Acclaim Entertainment, Inc.(1) 130,000 1,056,250
----------------------------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 175,000 7,284,375
----------------------------------------------------------------------------------------------------------------
BMC Software, Inc.(1) 300,000 22,350,000
----------------------------------------------------------------------------------------------------------------
Broderbund Software, Inc.(1) 30,000 903,750
----------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 232,500 12,206,250
----------------------------------------------------------------------------------------------------------------
GTech Holdings Corp.(1) 183,200 5,083,800
----------------------------------------------------------------------------------------------------------------
HBO & Co. 40,000 2,185,000
----------------------------------------------------------------------------------------------------------------
Informix Corp.(1) 25,000 562,500
----------------------------------------------------------------------------------------------------------------
Microsoft Corp.(1) 155,000 18,987,500
----------------------------------------------------------------------------------------------------------------
Oracle Corp.(1) 70,000 2,467,500
----------------------------------------------------------------------------------------------------------------
Peoplesoft, Inc.(1) 20,000 1,535,000
----------------------------------------------------------------------------------------------------------------
Sterling Software, Inc.(1) 90,000 6,108,750
----------------------------------------------------------------------------------------------------------------
System Software Associates, Inc. 380,000 3,990,000
--------------
84,720,675
- ------------------------------------------------------------------------------------------------------------------------------------
Electronics--4.8%
Applied Materials, Inc.(1) 45,000 1,091,250
----------------------------------------------------------------------------------------------------------------
Arrow Electronics, Inc.(1) 215,000 9,809,375
----------------------------------------------------------------------------------------------------------------
Cypress Semiconductor Corp.(1) 710,000 8,253,750
----------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 30,000 1,312,500
----------------------------------------------------------------------------------------------------------------
Intel Corp. 100,000 7,981,250
----------------------------------------------------------------------------------------------------------------
International Rectifier Corp.(1) 190,000 3,633,750
----------------------------------------------------------------------------------------------------------------
Linear Technology Corp. 70,000 2,380,000
----------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc.(1) 305,000 11,513,750
----------------------------------------------------------------------------------------------------------------
Philips Electronics NV, ADR 80,000 2,710,000
----------------------------------------------------------------------------------------------------------------
Tektronix, Inc. 65,000 2,518,750
----------------------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 20,000 935,000
----------------------------------------------------------------------------------------------------------------
Varian Associates, Inc. 60,000 2,737,500
----------------------------------------------------------------------------------------------------------------
VLSI Technology, Inc.(1) 325,000 4,550,000
----------------------------------------------------------------------------------------------------------------
Wyle Electronics 85,000 2,741,250
--------------
62,168,125
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunications-
Technology--1.9%
3Com Corp.(1) 220,000 10,285,000
----------------------------------------------------------------------------------------------------------------
AT&T Corp. 100,000 5,250,000
----------------------------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 90,000 2,075,625
----------------------------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd., Sponsored ADR 75,000 5,737,500
----------------------------------------------------------------------------------------------------------------
WorldCom, Inc.(1) 45,000 945,000
--------------
24,293,125
</TABLE>
11 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Continued)
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utilities--0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--0.3%
Empresa Nacional de Electricidad SA, Sponsored ADR 75,000 $ 4,406,250
- ------------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--0.3%
Telefonos de Mexico SA, Sponsored ADR 100,000 3,287,500
--------------
Total Common Stocks (Cost $569,082,827) 886,646,788
Units
====================================================================================================================================
Rights, Warrants and Certificates--0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Windmere-Durable Holdings, Inc. Wts., Exp. 1/98 (Cost $0) 9,062 --
Face
Amount
====================================================================================================================================
Short-Term Notes--23.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Broker/Dealers--3.1%
Goldman Sachs & Co., 5.30%, 9/9/96 $40,000,000 39,952,889
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial Finance--3.0%
CIT Group Holdings, Inc., 5.29%, 9/26/96 38,000,000 37,860,403
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Finance--3.1%
American Express Credit Corp., 5.28%, 9/25/96 40,000,000 39,859,200
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--6.2%
General Electric Capital Corp., 5.27%, 9/17/96 40,000,000 39,906,311
----------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.30%, 10/4/96 40,000,000 39,805,667
--------------
79,711,978
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial Services--2.3%
PHH Corp., 5.29%, 10/1/96 30,000,000 29,867,750
- ------------------------------------------------------------------------------------------------------------------------------------
Special Purpose Financial--5.3%
New Center Asset Trust, 5.28%, 9/23/96 40,000,000 39,870,933
----------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp., 5.29%, 9/17/96 28,985,000 28,916,853
--------------
68,787,786
--------------
Total Short-Term Notes (Cost $296,040,006) 296,040,006
====================================================================================================================================
Repurchase Agreement--8.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
5.22%, dated 8/30/96, to be repurchased at $103,960,262 on
9/3/96, collateralized by U.S. Treasury Nts., 4.75%--9.25%,
7/31/97--11/15/04, with a value of $106,024,709
(Cost $103,900,000) 103,900,000 103,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $969,022,833) 99.8% 1,286,586,794
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.2 2,217,474
----------- --------------
Net Assets 100.0% $1,288,804,268
=========== ==============
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
12 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities August 31, 1996
====================================================================================================================================
<S> <C> <C>
Assets Investments, at value (cost $969,022,833)--see accompanying statement $1,286,586,794
----------------------------------------------------------------------------------------------------------------
Cash 106,004
----------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 2,981,317
Investments sold 1,799,258
Interest and dividends 955,954
----------------------------------------------------------------------------------------------------------------
Other 195,403
--------------
Total assets 1,292,624,730
====================================================================================================================================
Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 1,917,067
Investments purchased 916,250
Distribution and service plan fees 378,016
Trustees' fees 266,401
Shareholder reports 182,547
Transfer and shareholder servicing agent fees 82,984
Dividends 25,189
Other 52,008
--------------
Total liabilities 3,820,462
====================================================================================================================================
Net Assets $1,288,804,268
==============
====================================================================================================================================
Composition of Paid-in capital $ 848,772,734
Net Assets ----------------------------------------------------------------------------------------------------------------
Accumulated net investment income 11,195,907
----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 111,271,666
----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 317,563,961
--------------
Net assets $1,288,804,268
===============
====================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$1,127,836,241 and 33,479,487 shares of beneficial interest outstanding) $33.69
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $35.75
----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $137,436,848 and 4,172,024 shares of beneficial interest outstanding) $32.94
----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $5,034,227 and 150,647 shares of beneficial interest outstanding) $33.42
----------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $18,496,952 and 549,005 shares of beneficial interest outstanding) $33.69
</TABLE>
See accompanying Notes to Financial Statements
13 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statements of Operations
Two Months Year Ended
Ended Aug. 31, June 30,
1996(1) 1996
====================================================================================================================================
<S> <C> <C> <C>
Investment Income Interest $3,381,607 $17,120,681
----------------------------------------------------------------------------------------------------------------
Dividends 2,012,470 10,809,740
Foreign withholding taxes (25,951) (103,976)
---------- ------------
Total income 5,368,126 27,826,445
====================================================================================================================================
Expenses Management fees--Note 4 1,415,789 7,558,069
----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 326,094 1,726,845
Class B 223,302 904,437
Class C 6,917 11,561
----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 313,235 1,619,012
----------------------------------------------------------------------------------------------------------------
Shareholder reports 34,863 356,339
----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 17,560 64,836
----------------------------------------------------------------------------------------------------------------
Legal and auditing fees 15,029 70,515
----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 48 626
Class B 5,288 25,101
Class C 478 1,191
Class Y 1,244 3,930
----------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 6,731 134,218
----------------------------------------------------------------------------------------------------------------
Insurance expenses 4,571 48,839
----------------------------------------------------------------------------------------------------------------
Other 11,421 98,330
---------- ------------
Total expenses 2,382,570 12,623,849
====================================================================================================================================
Net Investment Income 2,985,556 15,202,596
====================================================================================================================================
Realized and Net realized gain on investments 21,616,200 123,112,424
Unrealized ----------------------------------------------------------------------------------------------------------------
Gain (Loss) Net change in unrealized appreciation or depreciation on investments (16,129,626) 65,683,680
---------- ------------
Net realized and unrealized gain 5,486,574 188,796,104
====================================================================================================================================
Net Increase in Net Assets Resulting From Operations $8,472,130 $203,998,700
========== ============
</TABLE>
1. The Fund changed its fiscal year end from June 30 to
August 31.
See accompanying Notes to Financial Statements.
14 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Two Months
Ended Aug. 31, Year Ended June 30,
1996(1) 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C>
Operations Net investment income $2,985,556 $15,202,596 $ 9,619,976
----------------------------------------------------------------------------------------------------------------
Net realized gain 21,616,200 123,112,424 85,671,017
----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (16,129,626) 65,683,680 104,043,105
-------------- -------------- ------------
Net increase in net assets resulting from operations 8,472,130 203,998,700 199,334,098
===================================================================================================================================
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 Net increase in net assets resulting from beneficial
Interest interest transactions--Note 2:
Transactions Class A 307,757 176,397,622 83,386,522
Class B 7,152,701 81,183,295 30,660,868
Class C 1,404,159 3,526,653 --
Class Y 2,233,988 12,281,833 2,984,504
===================================================================================================================================
Net Assets Total increase 19,570,735 362,036,192 241,507,234
----------------------------------------------------------------------------------------------------------------
Beginning of period 1,269,233,533 907,197,341 665,690,107
-------------- -------------- ------------
End of period (including undistributed
net investment income of $11,195,907,
$8,210,351 and $6,036,689, respectively) $1,288,804,268 $1,269,233,533 $907,197,341
============== ============== ============
</TABLE>
1. The Fund changed its fiscal year end from June 30 to
August 31.
See accompanying Notes to Financial Statements.
15 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
Class A
-------------------------------------------------------------------------
Two Months
Ended
August 31, Year Ended June 30,
1996(2) 1996 1995 1994 1993 1992
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value,
beginning of period $33.43 $30.80 $26.65 $27.34 $24.94 $21.88
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .08 .44 .36 .16 .19 .29
Net realized and
unrealized gain (loss) .18 5.70 6.83 (.05) 4.03 3.13
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .26 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 -- (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 $33.69 $33.43 $30.80 $26.65 $27.34 $24.94
====== ====== ====== ====== ====== ======
========================================================================================================================
Total Return, at Net Asset Value(5) 0.78% 21.00% 29.45% 0.27% 16.88% 15.69%
========================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $1,127,836 $1,120,046 $860,736 $656,934 $743,830 $630,767
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,101,233 $1,018,022 $727,102 $720,765 $710,391 $624,527
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.50%(6) 1.43% 1.31% 0.56% 0.72% 1.14%
Expenses 1.03%(6) 1.06% 1.05% 1.07% 0.93% 0.90%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 6.3% 38.0% 35.4% 19.8% 23.2% 36.7%
Average brokerage commission rate(8) $0.0595 $0.0583 -- -- -- --
<CAPTION>
Financial Highlights (Continued)
Class B Class C
---------------------------------------------- --------------------
Two Months Two Months Period
Ended Ended Ended
August 31, Year Ended June 30, August 31, June 30,
1996(2) 1996 1995 1994(4) 1996(2) 1996(3)
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value,
beginning of period $32.74 $30.36 $26.44 $27.02 $33.22 $33.44
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .04 .23 .20 (.04) .02 .40
Net realized and
unrealized gain (loss) .16 5.53 6.65 .21 .18 2.88
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .20 5.76 6.85 .17 .20 3.28
- ------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.28) (.13) (.11) -- (.40)
Distributions from net realized gain -- (3.10) (2.80) (.64) -- (3.10)
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders -- (3.38) (2.93) (.75) -- (3.50)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $32.94 $32.74 $30.36 $26.44 $33.42 $33.22
====== ====== ====== ====== ====== ======
========================================================================================================================
Total Return, at Net Asset Value(5) 0.61% 19.95% 28.22% (0.20)% 0.60% 10.07%
========================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $137,437 $129,484 $43,267 $8,747 $5,034 $3,593
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $131,142 $ 90,501 $18,722 $5,119 $4,105 $1,804
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.61%(6) 0.60% 0.44% (0.22)%(6) 0.44%(6) 0.65%(6)
Expenses 1.92%(6) 1.89% 2.02% 1.98%(6) 2.10%(6) 1.81%(6)
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 6.3% 38.0% 35.4% 19.8% 6.3% 38.0%
Average brokerage commission rate(8) $0.0595 $0.0583 -- -- $0.0595 $0.0583
<CAPTION>
Financial Highlights (Continued)
Class Y
-------------------------------------------
Two Months
Ended
August 31, Year Ended June 30,
1996(2) 1996 1995 1994(1)
==========================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value,
beginning of period $33.42 $30.80 $26.64 $28.08
- ------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .08 .46 .30 .02
Net realized and
unrealized gain (loss) .19 5.70 6.92 (1.46)
------ ------ ------ ------
Total income (loss) from
investment operations .27 6.16 7.22 (1.44)
- ------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.44) (.26) --
Distributions from net realized gain -- (3.10) (2.80) --
------ ------ ------ ------
Total dividends and distributions
to shareholders -- (3.54) (3.06) --
- ------------------------------------------------------------------------------------------
Net asset value, end of period $33.69 $33.42 $30.80 $26.64
====== ====== ====== ======
==========================================================================================
Total Return, at Net Asset Value(5) 0.81% 21.10% 29.59% (5.13)%
==========================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $18,497 $16,110 $3,189 $ 9
- ------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,792 $ 9,384 $ 536 $10
- ------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.67%(6) 1.56% 1.54% 1.09%(6)
Expenses 0.87%(6) 0.94% 1.04% 1.25%(6)
- ------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 6.3% 38.0% 35.4% 19.8%
Average brokerage commission rate(8) $0.0595 $0.0583 -- --
</TABLE>
1. For the period from June 1, 1994 (inception of offering) to June 30, 1994.
2. The Fund changed its fiscal year end from June 30 to August 31.
3. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
4. 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.
5. 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.
6. Annualized.
7. 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 August 31, 1996 were $62,748,065 and $55,257,768, respectively.
8. 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.
16 & 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. On August 15, 1996, the Board of Trustees elected to change the fiscal
year end of the Fund from June 30 to August 31. Accordingly, these financial
statements include information for the two month period from July 1, 1996 to
August 31, 1996. The Fund's investment objective is to seek capital
appreciation, primarily by investing in stocks of established growth companies.
The Fund's investment adviser 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
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.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the two months
ended August 31, 1996, a reduction of $2,937 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $248,209 at August
31, 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 the 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.
18 Oppenheimer Growth Fund
<PAGE>
================================================================================
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.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. Shares of
Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Two Months Ended Aug. 31, 1996(2) Year Ended June 30, 1996(1) Year Ended June 30, 1995
-------------------------------- -------------------------- ------------------------
Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A:
Sold 1,266,269 $ 42,270,466 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 (1,295,165) (41,962,709) (6,169,610) (201,014,338) (4,799,772) (135,070,354)
--------- ------------- --------- ------------- --------- -------------
Net increase (decrease) (28,896) $ 307,757 5,561,976 $ 176,397,622 3,292,536 $ 83,386,522
========= ============= ========= ============= ========= =============
- -----------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 439,943 $ 14,333,878 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 (223,354) (7,181,177) (877,701) (28,091,205) (377,530) (10,526,852)
--------- ------------- --------- ------------- --------- -------------
Net increase 216,589 $ 7,152,701 2,530,098 $ 81,183,295 1,094,517 $ 30,660,868
========= ============= ========= ============= ========= =============
- -----------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 45,312 $ 1,497,092 111,265 $ 3,624,375 -- $ --
Dividends and distributions
reinvested -- -- 2,287 69,761 -- --
Redeemed (2,825) (92,933) (5,392) (167,483) -- --
--------- ------------- --------- ------------- --------- -------------
Net increase 42,487 $ 1,404,159 108,160 $ 3,526,653 -- $ --
========= ============= ========= ============= ========= =============
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y:
Sold 101,673 $ 3,383,454 439,359 $ 14,330,346 113,317 $ 3,284,040
Dividends and distributions
reinvested -- -- 29,328 895,658 569 14,393
Redeemed (34,706) (1,149,466) (90,199) (2,944,171) (10,692) (313,929)
--------- ------------- --------- ------------- --------- -------------
Net increase 66,967 $ 2,233,988 378,488 $ 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.
2. The Fund changed its fiscal year end from June 30 to August 31.
================================================================================
3. Unrealized Gains and
Losses on Investments
At August 31, 1996, net unrealized appreciation on investments of $317,563,961
was composed of gross appreciation of $343,437,531, and gross depreciation of
$25,873,570.
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; 0.72% of the next $200 million; 0.69%
of the next $200 million; 0.66% of the next $200 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 two months ended August 31, 1996, commissions (sales charges paid
by investors) on sales of Class A shares totaled $424,452, of which $134,309 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 $429,624 and $10,124, of which $25,126 was paid to an
affiliated broker/dealer for Class B. During the two months ended August 31,
1996, OFDI received contingent deferred sales charges of $60,623 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 two months ended August 31, 1996, OFDI paid $9,657 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 two months ended August 31,
1996, OFDI paid $1,207 to an affiliated broker/dealer as reimbursement for Class
B personal service and maintenance expenses and retained $195,442 as
reimbursement for Class B sales commissions and service fee advances, as well as
financing costs. As of August 31, 1996, OFDI had incurred unreimbursed expenses
of $3,988,986 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 two months ended August 31, 1996, OFDI retained $5,934 as
compensation for Class C sales commissions and service fee advances, as well as
financing costs. As of August 31, 1996, OFDI had incurred unreimbursed expenses
of $64,346 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 August 31, 1996, and the related
statements of operations for the two month period then ended and the year ended
June 30, 1996, the statements of changes in net assets for the two month period
ended August 31, 1996 and the years ended June 30, 1996 and 1995, and the
financial highlights for the two month period ended August 31, 1996 and for each
of the years in the five year period ended June 30, 1996. 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
August 31, 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 August 31, 1996, the results of its operations for
the two month period then ended and the year ended June 30, 1996, the changes in
its net assets for the two month period ended August 31, 1996 and the years
ended June 30, 1996 and 1995, and the financial highlights for the two month
period ended August 31, 1996 and each of the years in the five year period ended
June 30, 1996, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
September 23, 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.
Dividends paid by the Fund during the period ended August 31, 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 adviser for specific guidance.
22 Oppenheimer Growth Fund
<PAGE>
Oppenheimer Growth Fund
================================================================================
Officers and Leon Levy, Chairman of the Board of Trustees
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 Adviser OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Growth Fund. This
report must be preceded or accompanied by a Prospectus of Oppenheimer Growth
Fund. For material information concerning the Fund, see the Prospectus. Shares
of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the principal amount
invested.
23 Oppenheimer Growth Fund
<PAGE>
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RA0270.001.0896 October 31, 1996
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So call us today--we're here to help.
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