<PAGE>
=============================
Annual Report August 31, 1998
=============================
OPPENHEIMER
Growth Fund
[GRAPHIC]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview with Your Fund's Manager
8 Fund Performance
- --------------------------------------------------------------------------------
13 Financial Statements
37 Independent Auditors' Report
- --------------------------------------------------------------------------------
38 Federal Income Tax Information
39 Officers and Trustees
40 Information and Services
Report highlights
- --------------------------------------------------------------------------------
o The Fund benefited most from our carefully selected holdings in the
financial and large-cap technology sectors.
o Although high valuations led us to hold a relatively large cash position,
which constrained performance, our strategy of seeking good companies at
good prices enabled us to share in much of the market's rise.
=================================
Avg Annual Total Returns
=================================
For the 1-Year Period
Ended 8/31/98
Class A
Without With
Sales Chg./1/ Sales Chg./2/
=================================
(11.62)% (16.70)%
=================================
Class B
Without With
Sales Chg./1/ Sales Chg./2/
=================================
(12.32)% (16.20)%
=================================
Class C
Without With
Sales Chg./1/ Sales Chg./2/
=================================
(12.33)% (13.11)%
Class Y
Without With
Sales Chg./1/ Sales Chg./2/
=================================
(11.38)% (11.38)%
=================================
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that 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. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
short-term changes. For updates on the Fund's performance, please contact your
financial advisor, call us at 1-800-525-7048 or visit our website,
www.oppenheimerfunds.com.
/1./ Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
/2./ Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the contingent deferred sales charge of 1%. An
explanation of the different performance calculations is in the Fund's
prospectus. Class Y shares are not available for sale to individual
shareholders. Class B and C shares are subject to a 0.75% asset-based sales
charge.
2 Oppenheimer Growth Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Growth Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July, the excitement surrounding
the stock market's continued ascent to new record highs overshadowed the
favorable economic environment that existed for bonds: low inflation and
declining interest rates. However, since that time, stocks have declined sharply
amid heightened volatility. Yet, the bond market remains poised to benefit from
the same positive economic conditions that existed earlier in the year.
Why have stocks faltered lately? The financial crises in Asia and Russia
have negatively affected the earnings of some large U.S. corporations and have
contributed to a slow-down in U.S. economic growth. Although slower economic
growth has been negative for stocks, it should not adversely impact bonds.
That's because slower economic growth generally means fewer inflationary
pressures and less likelihood that interest rates will rise.
What should you do during this period of relative uncertainty? If you have
well-defined, long-term financial goals and an investment strategy designed to
achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make
improvements. The best way to cope with short-term volatility is to adhere to a
long-term plan that contains proven strategies, such as diversification among
various financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged by
our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the perspective required to address
risks and take advantage of opportunities in turbulent markets. In our view,
having a well-defined set of financial goals, a disciplined long-term strategy
and the help of experienced investment professionals are all fundamental parts
of The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
September 22, 1998
3 Oppenheimer Growth Fund
<PAGE>
"We also found attractive opportunities in consumer cyclicals, such as furniture
and apparel."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed during the period?
Our comparatively large cash position restrained the Fund's performance relative
to the stock market, but our successful stock selection strategy enabled us to
share in much of the market's gains.
What investments did your strategy lead you to make?
We seek to buy companies we believe offer above-average growth potential at
below-average prices. We evaluate companies one at a time to identify those that
meet our criteria. For example, when prices of many technology stocks fell in
late 1997 because of concerns over Asia, we identified a number of good
opportunities. We took advantage of that situation by purchasing shares of
strong growth companies like Compaq Computer Corp. and Gateway 2000 Inc., which
continue to gain market share in the personal computer business.
Similarly, during 1998, we put some of the Fund's cash to work by adding to
our position in the consumer cyclical sector, particularly among apparel and
furniture companies. Consumer spending was the primary force driving the U.S.
economy throughout the year, so we sought greater exposure to companies
providing the products consumers want. When the sector experienced temporary
weakness during the course of the fiscal year, we acquired positions in
companies we judged to have strong growth potential at favorable prices.
We also found opportunities in the energy services sector, where stock
prices fell sharply over concerns about lower energy usage. We were able acquire
significant positions in several oil service companies at prices we consider
attractive. Other opportunities in the basic materials area enabled us to
purchase reasonably priced stocks of paper, chemicals and metals companies that
met our investment criteria.
4 Oppenheimer Growth Fund
<PAGE>
[PHOTO]
Portfolio Management Team (l to r)
Bob Doll (Portfolio Manager)
Jane Putnam
Did those purchases reduce the Fund's cash position?
To some degree they did. However, over the same period, a number of stocks in
the Fund's portfolio rose to relatively high levels. These conditions led us to
take profits by trimming our financial and technology sector holdings. For
example, while SunAmerica, Inc. continues to be among our major holdings, we
sold a portion of our stock after the price rose rapidly following a takeover
offering from an insurance company. We followed a similar course with many of
our large-cap technology stocks, such as Microsoft Corp. and BMC Software, Inc.,
which also reached what we believed were fairly full valuations.
As a result, our cash position remained significant, despite the purchases
discussed earlier. We continually seek new opportunities to put the Fund's cash
to work. However, we stand by our disciplined approach of identifying one
investment at a time, buying only companies available at below-average prices in
which we see potential for above-average growth.
What were the Fund's most notable successes?
Our large holdings in the financial and technology sectors were responsible for
much of the Fund's positive performance. In particular, two of our largest
financial industry holdings were both acquired during the year at prices we
believed were below their true valuation. The Fund realized substantial gains as
a result of those transactions.
5 Oppenheimer Growth Fund
<PAGE>
=================================
Avg Annual Total Returns
=================================
For the Periods Ended 9/30/98/1/
Class A
1 year 5 year 10 year
=================================
(14.94)% 12.84% 13.64%
=================================
Class B
Since
1 year 5 year Inception
=================================
(14.44)% 12.95% 13.23%
=================================
Class C
Since
1 year 5 year Inception
=================================
(11.28)% N/A 11.17%
=================================
Class Y
Since
1 year 5 year Inception
=================================
(9.53)% N/A 15.79%
=================================
An interview with your Fund's manager
- --------------------------------------------------------------------------------
What investments were disappointing?
The Fund has not yet benefited from its investments in the oil service sector.
Oil service companies suffered during the year because of declining oil prices,
which led many of the industry's players to cut back on new drilling and
exploration. This situation caused the stock prices of many of our holdings to
fall, although their businesses should remain on track in the long run. We
believe that business will eventually improve in this sector because oil and gas
remain necessary commodities in limited supply over the long term. As global
demand for energy increases, we see the prospect for good growth at a reasonable
price, and have chosen to hold our positions in this sector.
What is your outlook for the future?
We view the market's prospects over the coming months cautiously. However, we
believe that many growth stocks are currently more attractively priced than they
were earlier this year. To that extent, we view the recent decline in prices as
an opportunity for us to selectively put the Fund's cash to work.
/1./ Total returns include changes in share price and reinvestment of dividends
and capital gains distributions on a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class B returns include the applicable contingent deferred sales charge
of 5% (1-year) and 2% (since inception on 8/17/93). Class C returns include the
contingent deferred sales charge of 1% for the one-year period. An explanation
of the different performance calculations is in the Fund's prospectus. Class Y
shares are not available for sale to individual shareholders. Class B and C
shares are subject to a 0.75% asset-based sales charge.
6 Oppenheimer Growth Fund
<PAGE>
Sector Weightings/2/
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Cash Equivalents 38.2%
Technology 17.9
Financial 12.3
Consumer Cyclicals 10.3
Consumer Non-Cyclicals 6.0
Industrial 5.5
Energy 5.5
Basic Materials 3.7
Utilities 0.6
Over the longer term, we remain committed to our strategy of investing in
well-known companies and market leaders characterized by below-average
valuations and above-average earnings growth. It's a strategy that in the past
has generally served our shareholders well and that we believe continues to make
Oppenheimer Growth Fund part of The Right Way to Invest.
Top 5 Industries/2/
- -----------------------------------------
Computer Hardware 9.0%
- -----------------------------------------
Diversified Financial 5.3
- -----------------------------------------
Energy Services & Producers 4.6
- -----------------------------------------
Insurance 4.4
- -----------------------------------------
Computer Software/Services 4.2
- -----------------------------------------
Top 10 Stock Holdings/2/
- -----------------------------------------
Compaq Computer Corp. 1.8%
- -----------------------------------------
Gateway 2000, Inc. 1.8
- -----------------------------------------
Conseco, Inc. 1.7
- -----------------------------------------
First Union Corp. 1.2
- -----------------------------------------
SunAmerica, Inc. 1.2
- -----------------------------------------
BMC Software, Inc. 1.2
- -----------------------------------------
Dell Computer Corp. 1.1
- -----------------------------------------
EMC Corp. 1.1
- -----------------------------------------
Philip Morris Cos., Inc. 1.0
- -----------------------------------------
USG Corp. 0.9
- -----------------------------------------
/2./ Portfolio is subject to change. Percentages are as of August 31, 1998 and
are based on total market value of investments.
7 Oppenheimer Growth Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
How Has the Fund Performed? Below is a discussion by the Manager of the Fund's
performance during its fiscal year ended August 31, 1998, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
[_] Management's Discussion of Performance
During the past fiscal year that ended August 31, 1998, Oppenheimer Growth
Fund's performance was influenced by low rates of U.S. inflation and strong
levels of consumer spending and confidence. However, weakness in Asian economies
and pressures on earnings introduced greater volatility into the stock market.
The Fund's performance was somewhat constrained by its relatively large cash
position. We found selected opportunities to put the Fund's cash to work buying
temporarily depressed stocks in the technology and consumer cyclical sectors, as
well as among oil service and basic materials companies. However, our investment
discipline caused us to sell other stocks in the Fund's portfolio, particularly
among financial and large-cap technology companies. As a result, at the end of
the fiscal year we continued to maintain significant cash reserves as a buffer
against volatility and a resource with which to capitalize on future
opportunities to purchase growth at a reasonable price. The Fund's portfolio and
our management strategies are subject to change.
8 Oppenheimer Growth Fund
<PAGE>
[_] Comparing the Fund's Performance to the Market
The graphs that follow show the performance of a hypothetical $10,000 investment
in Class A, Class B, Class C and Class Y shares of the Fund at August 31, 1998:
in the case of Class A shares, over a ten-year period; in the case of Class B
shares, from the inception of the class on August 17, 1993; in the case of Class
C shares, from the inception of the class on November 1, 1995; and in the case
of Class Y, from the inception of the class on June 1, 1994. The Fund's
performance reflects the deduction of the 5.75% current maximum initial sales
charge on Class A shares, the applicable contingent deferred sales charge for
Class B and Class C shares, and reinvestment of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's ("S&P") 500 Index, a broad-based index of equity securities widely
regarded as a general measure of the performance of the U.S. equity securities
market. Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs shows the effect of taxes. The Fund's performance reflects the
effects of Fund business and operating expenses. While index comparisons may be
useful to provide a benchmark for the Fund's performance, it must be noted that
the Fund's investments are not limited to the securities in the S&P 500 Index,
which tend to be securities of larger, well-capitalized companies.
9 Oppenheimer Growth Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class A) and S&P 500
[THE FOLLOWING CHART WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
Growth Fund
Date Class A S&P 500
- ---- ------- -------
6/30/87 $ 9,425 $10,000
6/30/88 $ 9,328 $ 9,307
6/30/89 $10,684 $11,217
6/30/90 $12,071 $13,061
6/30/91 $13,205 $14,024
6/30/92 $15,276 $15,902
6/30/93 $17,855 $18,066
6/30/94 $17,903 $18,319
6/30/95 $23,174 $23,087
6/30/96 $28,040 $29,086
8/31/96/(1)/ $28,258 $28,389
8/31/97 $38,156 $39,921
8/31/98 $33,723 $43,156
Average Annual Total Return of Class A Shares of the Fund at 8/31/98/(2)/
1 Year -16.70% 5 Year 12.18% 10 Year 13.61%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class B) and S&P 500
[THE FOLLOWING CHART WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
Growth Fund
Date Class B S&P 500
- ---- ------- -------
8/17/93 $10,000 $10,000
6/30/94 $ 9,980 $ 9,810
6/30/95 $12,796 $12,363
6/30/96 $15,349 $15,575
8/31/96/(1)/ $15,444 $15,202
8/31/97 $20,683 $21,378
8/31/98 $18,036 $23,110
Average Annual Total Return of Class B Shares of the Fund at 8/31/98/(3)/
1 Year -16.20% 5 Year 12.28% Life 12.42%
The returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for the S&P 500 Index in Class A begins on 6/30/87
and in Class B begins on 8/31/93.
/1./ The Fund's fiscal year has changed from 6/30 to 8/31.
/2./ The inception date of the Fund's Class A shares was 3/15/73. The average
annual total return is shown net of the applicable 5.75% maximum initial sales
charge.
/3./ Class B shares of the Fund were first publicly offered on 8/17/93. The
average annual total return is shown net of the applicable 5% and 2% contingent
deferred sales charge respectively, for the 1-year and the life of the class.
The ending account value in the graph is net of the applicable 2% contingent
deferred sales charge.
10 Oppenheimer Growth Fund
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class C) and S&P 500
[THE FOLLOWING CHART WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
Growth Fund
Date Class C S&P 500
- ---- ------- -------
11/1/95 $10,000 $10,000
6/30/96 $11,006 $11,713
8/31/96/(1)/ $11,073 $11,432
8/31/97 $14,830 $16,077
8/31/98 $13,002 $17,379
Average Annual Total Return of Class C Shares of the Fund at 8/31/98/(4)/
1 Year -13.11% Life 9.71%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class Y) and S&P 500
[THE FOLLOWING CHART WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
Growth Fund
Date Class Y S&P 500
- ---- ------- -------
6/1/94 $10,000 $10,000
6/30/94 $ 9,487 $ 9,755
6/30/95 $12,295 $12,295
6/30/96 $14,889 $15,489
8/31/96/(1)/ $15,009 $15,118
8/31/97 $20,317 $21,259
8/31/98 $18,005 $22,981
Average Annual Total Return of Class Y Shares of the Fund at 8/31/98/(5)/
1 Year -11.38% Life 14.84%
The returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for the S&P 500 Index in Class C begins on 10/31/95
and in Class Y begins on 5/31/94.
/4./ Class C shares of the Fund were first publicly offered on 11/1/95. The
average annual total return is shown net of the applicable 1% contingent
deferred sales charge for the 1-year period.
/5./ Class Y shares of the Fund, first publicly offered on 6/1/94, are offered
at net asset value without sales charges to certain institutional investors.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 Oppenheimer Growth Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
12 Oppenheimer Growth Fund
<PAGE>
================================================================================
Statement of Investments August 31, 1998
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
================================================================================
<S> <C> <C>
Common Stocks--63.7%
- --------------------------------------------------------------------------------
Basic Materials--3.8%
- --------------------------------------------------------------------------------
Chemicals--1.1%
Crompton & Knowles Corp. 175,000 $ 2,559,375
- --------------------------------------------------------------------------------
Cytec Industries, Inc./(1)/ 70,000 1,601,250
- --------------------------------------------------------------------------------
Lubrizol Corp. (The) 15,000 343,125
- --------------------------------------------------------------------------------
Lyondell Chemical Co. 25,000 539,062
- --------------------------------------------------------------------------------
Praxair, Inc. 60,000 2,152,500
- --------------------------------------------------------------------------------
Solutia, Inc. 245,000 5,497,187
- --------------------------------------------------------------------------------
Union Carbide Corp. 200,000 8,037,500
--------------
20,729,999
- --------------------------------------------------------------------------------
Gold & Platinum--0.1%
Echo Bay Mines Ltd./(1)/ 475,000 742,187
- --------------------------------------------------------------------------------
Placer Dome, Inc. 105,000 846,562
--------------
1,588,749
- --------------------------------------------------------------------------------
Metals--1.8%
Armco, Inc./(1)/ 671,900 2,771,587
- --------------------------------------------------------------------------------
Bethlehem Steel Corp./(1)/ 1,319,700 9,485,344
- --------------------------------------------------------------------------------
Inland Steel Industries, Inc. 70,289 1,331,098
- --------------------------------------------------------------------------------
Lone Star Technologies, Inc./(1)/ 105,000 1,043,437
- --------------------------------------------------------------------------------
LTV Corp. 469,500 2,552,906
- --------------------------------------------------------------------------------
USX-U.S. Steel Group, Inc. 785,000 16,435,937
--------------
33,620,309
- --------------------------------------------------------------------------------
Paper--0.8%
Bowater, Inc. 235,000 8,885,937
- --------------------------------------------------------------------------------
Champion International Corp. 140,000 4,620,000
- --------------------------------------------------------------------------------
Stone Container Corp./(1)/ 65,000 678,437
--------------
14,184,374
- --------------------------------------------------------------------------------
Consumer Cyclicals--10.6%
- --------------------------------------------------------------------------------
Autos & Housing--1.1%
Arvin Industries, Inc. 30,000 1,132,500
- --------------------------------------------------------------------------------
Centex Corp. 52,200 1,846,575
- --------------------------------------------------------------------------------
Champion Enterprises, Inc./(1)/ 337,000 7,877,375
- --------------------------------------------------------------------------------
Fleetwood Enterprises, Inc. 20,000 668,750
- --------------------------------------------------------------------------------
Kaufman & Broad Home Corp. 62,500 1,335,937
- --------------------------------------------------------------------------------
Oakwood Homes Corp. 210,000 2,992,500
- --------------------------------------------------------------------------------
Ryland Group, Inc. (The) 15,000 296,250
- --------------------------------------------------------------------------------
SPX Corp. 85,000 4,228,750
</TABLE>
13 Oppenheimer Growth Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Autos & Housing (continued)
Superior Industries International, Inc. 45,000 $ 936,562
- --------------------------------------------------------------------------------
TBC Corp./(1)/ 10,000 46,250
--------------
21,361,449
- --------------------------------------------------------------------------------
Leisure & Entertainment--3.1%
AMR Corp./(1)/ 135,000 7,357,500
- --------------------------------------------------------------------------------
Applebee's International, Inc. 5,000 92,500
- --------------------------------------------------------------------------------
ASA Holdings, Inc. 175,000 5,993,750
- --------------------------------------------------------------------------------
Brunswick Corp. 160,000 2,390,000
- --------------------------------------------------------------------------------
Callaway Golf Co. 500,000 4,968,750
- --------------------------------------------------------------------------------
Carnival Corp. 20,000 577,500
- --------------------------------------------------------------------------------
CKE Restaurants, Inc. 75,000 2,325,000
- --------------------------------------------------------------------------------
Continental Airlines, Inc., Cl. B/(1)/ 300,000 12,375,000
- --------------------------------------------------------------------------------
Delta Air Lines, Inc. 20,000 2,040,000
- --------------------------------------------------------------------------------
KLM Royal Dutch Airlines, NY Reg 98,392 3,025,554
- --------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon, Inc./(1)/ 50,000 425,000
- --------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A/(1)/ 300,000 8,343,750
- --------------------------------------------------------------------------------
Outback Steakhouse, Inc./(1)/ 230,000 6,914,375
- --------------------------------------------------------------------------------
Pancho's Mexican Buffet, Inc. 100,000 112,500
- --------------------------------------------------------------------------------
Southwest Airlines Co. 75,000 1,335,937
--------------
58,277,116
- --------------------------------------------------------------------------------
Retail: General--2.9%
Dayton Hudson Corp. 20,000 720,000
- --------------------------------------------------------------------------------
Federated Department Stores, Inc./(1)/ 140,000 6,098,750
- --------------------------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A/(1)/ 20,000 448,750
- --------------------------------------------------------------------------------
Jones Apparel Group, Inc./(1)/ 632,000 12,245,000
- --------------------------------------------------------------------------------
Nautica Enterprises, Inc./(1)/ 790,000 15,256,875
- --------------------------------------------------------------------------------
Pillowtex Corp. 10,000 276,250
- --------------------------------------------------------------------------------
Tommy Hilfiger Corp./(1)/ 320,000 14,960,000
- --------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 140,000 3,815,000
- --------------------------------------------------------------------------------
Wolverine World Wide, Inc. 30,000 316,875
--------------
54,137,500
- --------------------------------------------------------------------------------
Retail: Specialty--3.5%
Bed Bath & Beyond, Inc./(1)/ 680,000 12,282,500
- --------------------------------------------------------------------------------
Claire's Stores, Inc. 865,000 12,975,000
- --------------------------------------------------------------------------------
Dress Barn, Inc. (The)./(1)/ 25,000 434,375
- --------------------------------------------------------------------------------
Ethan Allen Interiors, Inc. 260,000 8,450,000
- --------------------------------------------------------------------------------
Gymboree Corp./(1)/ 70,000 612,500
- --------------------------------------------------------------------------------
Intimate Brands, Inc., Cl. A 495,000 9,157,500
</TABLE>
14 Oppenheimer Growth Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Retail: Specialty (continued)
Lands' End, Inc./(1)/ 120,000 $ 2,460,000
- --------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc./(1)/ 100,000 450,000
- --------------------------------------------------------------------------------
Ross Stores, Inc. 190,000 6,911,250
- --------------------------------------------------------------------------------
Tiffany & Co. 55,000 2,045,312
- --------------------------------------------------------------------------------
TJX Cos., Inc. 266,000 5,935,125
- --------------------------------------------------------------------------------
Venator Group, Inc./(1)/ 315,000 2,854,687
--------------
64,568,249
- --------------------------------------------------------------------------------
Consumer Non-Cyclicals--6.1%
- --------------------------------------------------------------------------------
Beverages--0.0%
Canandaigua Brands, Inc., Cl. A/(1)/ 20,000 835,000
- --------------------------------------------------------------------------------
Food--1.2%
Fleming Cos., Inc. 255,000 3,044,062
- --------------------------------------------------------------------------------
Flowers Industries, Inc. 25,000 445,312
- --------------------------------------------------------------------------------
Interstate Bakeries Corp. 190,000 4,951,875
- --------------------------------------------------------------------------------
Richfood Holdings, Inc. 9,000 185,062
- --------------------------------------------------------------------------------
Safeway, Inc./(1)/ 300,000 11,812,500
- --------------------------------------------------------------------------------
Smithfield Foods, Inc./(1)/ 115,000 2,098,750
- --------------------------------------------------------------------------------
Suiza Foods Corp./(1)/ 15,000 725,625
- --------------------------------------------------------------------------------
TCBY Enterprises, Inc. 5,000 29,375
--------------
23,292,561
- --------------------------------------------------------------------------------
Healthcare/Drugs--1.0%
Ballard Medical Products 10,000 185,625
- --------------------------------------------------------------------------------
ICN Pharmaceuticals, Inc. 365,000 5,611,875
- --------------------------------------------------------------------------------
Jones Pharma, Inc. 20,000 417,500
- --------------------------------------------------------------------------------
Schering-Plough Corp. 140,000 12,040,000
--------------
18,255,000
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--2.2%
First Health Group Corp./(1)/ 630,000 12,718,125
- --------------------------------------------------------------------------------
HEALTHSOUTH Corp./(1)/ 270,000 5,113,125
- --------------------------------------------------------------------------------
Lincare Holdings, Inc./(1)/ 60,000 2,036,250
- --------------------------------------------------------------------------------
Oxford Health Plans, Inc./(1)/ 115,000 704,375
- --------------------------------------------------------------------------------
PhyCor, Inc./(1)/ 225,000 1,560,937
- --------------------------------------------------------------------------------
Safeskin Corp./(1)/ 100,000 3,375,000
- --------------------------------------------------------------------------------
Sofamor Danek Group, Inc./(1)/ 160,000 13,350,000
- --------------------------------------------------------------------------------
Sola International, Inc./(1)/ 80,000 1,160,000
- --------------------------------------------------------------------------------
Universal Health Services, Inc., Cl. B/(1)/ 20,000 775,000
--------------
40,792,812
</TABLE>
15 Oppenheimer Growth Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Tobacco--1.7%
Philip Morris Cos., Inc. 480,000 $ 19,950,000
- --------------------------------------------------------------------------------
RJR Nabisco Holdings Corp. 375,000 8,132,812
- --------------------------------------------------------------------------------
UST, Inc. 125,000 3,265,625
--------------
31,348,437
- --------------------------------------------------------------------------------
Energy--5.7%
- --------------------------------------------------------------------------------
Energy Services & Producers--4.7%
Camco International, Inc. 90,000 4,522,500
- --------------------------------------------------------------------------------
ENSCO International, Inc. 1,100,000 11,550,000
- --------------------------------------------------------------------------------
EVI Weatherford, Inc./(1)/ 42,750 651,937
- --------------------------------------------------------------------------------
Global Industries Ltd./(1)/ 785,000 7,359,375
- --------------------------------------------------------------------------------
Global Marine, Inc./(1)/ 1,235,000 11,578,125
- --------------------------------------------------------------------------------
Input/Output, Inc./(1)/ 370,000 3,607,500
- --------------------------------------------------------------------------------
Nabors Industries, Inc./(1)/ 640,000 7,560,000
- --------------------------------------------------------------------------------
Noble Drilling Corp./(1)/ 240,000 2,640,000
- --------------------------------------------------------------------------------
Oryx Energy Co. 175,000 2,176,562
- --------------------------------------------------------------------------------
Petroleum Geo-Services ASA, Sponsored ADR/(1)/ 230,000 2,990,000
- --------------------------------------------------------------------------------
Rowan Cos., Inc./(1)/ 125,000 1,156,250
- --------------------------------------------------------------------------------
Smith International, Inc./(1)/ 430,000 7,578,750
- --------------------------------------------------------------------------------
Tidewater, Inc. 625,000 13,125,000
- --------------------------------------------------------------------------------
Transocean Offshore, Inc. 140,000 3,438,750
- --------------------------------------------------------------------------------
Varco International, Inc./(1)/ 1,101,500 7,848,187
--------------
87,782,936
- --------------------------------------------------------------------------------
Oil-Integrated--1.0%
Sun Co., Inc. 26,800 886,075
- --------------------------------------------------------------------------------
Tosco Corp. 125,000 2,750,000
- --------------------------------------------------------------------------------
Unocal Corp. 280,000 8,767,500
- --------------------------------------------------------------------------------
USX-Marathon Group 225,000 5,850,000
--------------
18,253,575
- --------------------------------------------------------------------------------
Financial--12.7%
- --------------------------------------------------------------------------------
Banks--2.7%
Banc One Corp. 220,000 8,360,000
- --------------------------------------------------------------------------------
BankAmerica Corp. 25,000 1,601,562
- --------------------------------------------------------------------------------
BankBoston Corp. 165,000 5,888,437
- --------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 75,000 3,975,000
- --------------------------------------------------------------------------------
First Union Corp. 486,686 23,604,271
- --------------------------------------------------------------------------------
Greenpoint Financial Corp. 120,000 3,022,500
- --------------------------------------------------------------------------------
SouthTrust Corp. 135,000 4,370,625
--------------
50,822,395
</TABLE>
16 Oppenheimer Growth Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Diversified Financial--5.5%
Advanta Corp., Cl. A 202,157 $ 2,286,901
- --------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 135,000 4,986,563
- --------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 85,000 3,182,188
- --------------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. 50,000 1,750,000
- --------------------------------------------------------------------------------
Fannie Mae 215,000 12,214,688
- --------------------------------------------------------------------------------
Freddie Mac 398,400 15,736,800
- --------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 395,000 15,553,125
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 65,000 4,290,000
- --------------------------------------------------------------------------------
MGIC Investment Corp. 160,000 6,640,000
- --------------------------------------------------------------------------------
Price (T. Rowe) Associates, Inc. 367,000 11,170,563
- --------------------------------------------------------------------------------
SLM Holding Corp. 350,000 12,556,250
- --------------------------------------------------------------------------------
Travelers Group, Inc. 275,000 12,203,125
--------------
102,570,203
- --------------------------------------------------------------------------------
Insurance--4.5%
AFLAC, Inc. 145,000 3,643,125
- --------------------------------------------------------------------------------
Allstate Corp. 135,000 5,062,500
- --------------------------------------------------------------------------------
Conseco, Inc. 1,165,000 32,183,125
- --------------------------------------------------------------------------------
Equitable Cos., Inc. 145,000 8,292,188
- --------------------------------------------------------------------------------
Loews Corp. 50,000 4,218,750
- --------------------------------------------------------------------------------
Mercury General Corp. 25,000 914,063
- --------------------------------------------------------------------------------
Reliastar Financial Corp. 160,000 6,280,000
- --------------------------------------------------------------------------------
St. Paul Cos., Inc. 25,000 764,063
- --------------------------------------------------------------------------------
SunAmerica, Inc. 360,000 22,297,500
--------------
83,655,314
- --------------------------------------------------------------------------------
Industrial--5.7%
- --------------------------------------------------------------------------------
Electrical Equipment--0.4%
C-Cube Microsystems, Inc./(1)/ 35,000 518,438
- --------------------------------------------------------------------------------
Kemet Corp.(1) 450,000 5,231,250
- --------------------------------------------------------------------------------
Vishay Intertechnology, Inc./(1)/ 181,912 1,910,081
--------------
7,659,769
- --------------------------------------------------------------------------------
Industrial Materials--1.2%
Owens-Illinois, Inc./(1)/ 110,000 3,430,625
- --------------------------------------------------------------------------------
Southdown, Inc. 20,000 845,000
- --------------------------------------------------------------------------------
TJ International, Inc. 10,000 209,375
- --------------------------------------------------------------------------------
USG Corp. 415,000 17,845,000
- --------------------------------------------------------------------------------
Walter Industries, Inc./(1)/ 10,000 141,250
--------------
22,471,250
</TABLE>
17 Oppenheimer Growth Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Industrial Services--0.9%
AccuStaff, Inc./(1)/ 165,000 $ 2,062,500
- --------------------------------------------------------------------------------
Catalina Marketing Corp./(1)/ 45,000 1,892,813
- --------------------------------------------------------------------------------
Cendant Corp./(1)/ 180,000 2,081,250
- --------------------------------------------------------------------------------
Comdisco, Inc. 320,000 3,980,000
- --------------------------------------------------------------------------------
Corrections Corp. of America./(1)/ 330,000 5,053,125
- --------------------------------------------------------------------------------
Growth Environmental, Inc./(1)/ 2,100 32
- --------------------------------------------------------------------------------
Mercury Air Group, Inc. 151,250 964,219
--------------
16,033,939
- --------------------------------------------------------------------------------
Manufacturing--1.4%
Aeroquip-Vickers, Inc. 185,000 7,457,813
- --------------------------------------------------------------------------------
Cincinnati Milacron, Inc. 80,000 1,550,000
- --------------------------------------------------------------------------------
Cognex Corp./(1)/ 165,000 2,310,000
- --------------------------------------------------------------------------------
Herman Miller, Inc. 255,000 5,227,500
- --------------------------------------------------------------------------------
Litton Industries, Inc./(1)/ 65,000 3,120,000
- --------------------------------------------------------------------------------
MagneTek, Inc./(1)/ 30,000 390,000
- --------------------------------------------------------------------------------
PACCAR, Inc. 138,500 5,678,500
- --------------------------------------------------------------------------------
Stewart & Stevenson Services, Inc. 60,000 783,750
--------------
26,517,563
- --------------------------------------------------------------------------------
Transportation--1.8%
Airborne Freight Corp. 205,000 3,997,500
- --------------------------------------------------------------------------------
Arkansas Best Corp./(1)/ 30,000 202,500
- --------------------------------------------------------------------------------
Canadian Pacific Ltd. (New) 395,000 7,480,313
- --------------------------------------------------------------------------------
CSX Corp. 82,600 3,118,150
- --------------------------------------------------------------------------------
FDX Corp./(1)/ 90,000 4,505,625
- --------------------------------------------------------------------------------
Navistar International Corp./(1)/ 555,000 11,655,000
- --------------------------------------------------------------------------------
USFreightways Corp. 95,000 2,131,563
- --------------------------------------------------------------------------------
Werner Enterprises, Inc. 20,000 295,000
--------------
33,385,651
- --------------------------------------------------------------------------------
Technology--18.5%
- --------------------------------------------------------------------------------
Aerospace/Defense--0.2%
Gencorp, Inc. 135,000 2,835,000
- --------------------------------------------------------------------------------
Watkins-Johnson Co. 12,700 250,031
--------------
3,085,031
- --------------------------------------------------------------------------------
Computer Hardware--9.3%
Adaptec, Inc./(1)/ 280,000 3,220,000
- --------------------------------------------------------------------------------
Applied Magnetics Corp./(1)/ 475,000 2,167,188
- --------------------------------------------------------------------------------
Cabletron Systems, Inc./(1)/ 190,000 1,330,000
- --------------------------------------------------------------------------------
Compaq Computer Corp. 1,271,525 35,523,230
</TABLE>
18 Oppenheimer Growth Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Computer Hardware (continued)
Data General Corp./(1)/ 600,000 $ 4,500,000
- --------------------------------------------------------------------------------
Dell Computer Corp./(1)/ 220,000 22,000,000
- --------------------------------------------------------------------------------
EMC Corp./(1)/ 480,000 21,690,000
- --------------------------------------------------------------------------------
Gateway 2000, Inc./(1)/ 735,000 34,774,688
- --------------------------------------------------------------------------------
International Business Machines Corp. 135,000 15,204,375
- --------------------------------------------------------------------------------
Iomega Corp./(1)/ 916,200 3,378,488
- --------------------------------------------------------------------------------
Quantum Corp./(1)/ 370,000 4,231,875
- --------------------------------------------------------------------------------
Seagate Technology, Inc./(1)/ 455,000 7,962,500
- --------------------------------------------------------------------------------
Silicon Graphics, Inc./(1)/ 585,000 5,301,563
- --------------------------------------------------------------------------------
Storage Technology Corp. (New)/(1)/ 60,000 1,305,000
- --------------------------------------------------------------------------------
Sun Microsystems, Inc./(1)/ 100,000 3,962,500
- --------------------------------------------------------------------------------
Western Digital Corp./(1)/ 815,000 6,723,750
--------------
173,275,157
- --------------------------------------------------------------------------------
Computer Software/Services--4.3%
Acclaim Entertainment, Inc./(1)/ 40,000 230,000
- --------------------------------------------------------------------------------
Adobe Systems, Inc. 90,000 2,362,500
- --------------------------------------------------------------------------------
BMC Software, Inc./(1)/ 525,000 22,214,063
- --------------------------------------------------------------------------------
Cambridge Technology Partners, Inc./(1)/ 145,000 4,712,500
- --------------------------------------------------------------------------------
Computer Associates International, Inc. 315,000 8,505,000
- --------------------------------------------------------------------------------
Gartner Group, Inc., Cl. A/(1)/ 95,000 2,196,875
- --------------------------------------------------------------------------------
GTech Holdings Corp./(1)/ 565,000 14,831,250
- --------------------------------------------------------------------------------
HBO & Co. 160,000 3,400,000
- --------------------------------------------------------------------------------
Microsoft Corp./(1)/ 90,000 8,634,375
- --------------------------------------------------------------------------------
Network Associates, Inc./(1)/ 120,000 3,870,000
- --------------------------------------------------------------------------------
Peoplesoft, Inc./(1)/ 255,000 7,171,875
- --------------------------------------------------------------------------------
Sungard Data Systems, Inc./(1)/ 61,200 1,939,275
- --------------------------------------------------------------------------------
Symantec Corp./(1)/ 55,000 900,625
--------------
80,968,338
- --------------------------------------------------------------------------------
Electronics--4.1%
Advanced Micro Devices, Inc./(1)/ 35,000 461,563
- --------------------------------------------------------------------------------
Arrow Electronics, Inc./(1)/ 395,000 5,184,375
- --------------------------------------------------------------------------------
Cypress Semiconductor Corp./(1)/ 414,500 2,538,813
- --------------------------------------------------------------------------------
Dynatech Corp./(1)/ 60,000 178,125
- --------------------------------------------------------------------------------
Intel Corp. 100,000 7,118,750
- --------------------------------------------------------------------------------
Maxim Integrated Products, Inc./(1)/ 40,000 1,100,000
- --------------------------------------------------------------------------------
National Semiconductor Corp./(1)/ 155,000 1,414,375
- --------------------------------------------------------------------------------
Novellus Systems, Inc./(1)/ 520,000 13,845,000
- --------------------------------------------------------------------------------
Philips Electronics NV, NY Shares 45,000 2,697,188
- --------------------------------------------------------------------------------
SCI Systems, Inc./(1)/ 730,000 16,744,375
</TABLE>
19 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
Statement of Investments (Continued)
==================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
Electronics (continued)
Solectron Corp./(1)/ 85,000 $ 3,511,563
- ----------------------------------------------------------------------------------
Tektronix, Inc. 140,000 2,126,250
- ----------------------------------------------------------------------------------
Teradyne, Inc./(1)/ 405,000 7,036,875
- ----------------------------------------------------------------------------------
Unitrode Corp./(1)/ 30,000 373,125
- ----------------------------------------------------------------------------------
Vitesse Semiconductor Corp./(1)/ 150,000 4,068,750
- ----------------------------------------------------------------------------------
VLSI Technology, Inc./(1)/ 850,000 7,703,125
--------------
76,102,252
- ----------------------------------------------------------------------------------
Telecommunications: Technology--0.6%
Allen Telecom, Inc./(1)/ 70,000 498,750
- ----------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd., Sponsored ADR 45,000 745,313
- ----------------------------------------------------------------------------------
Pairgain Technologies, Inc./(1)/ 1,060,000 9,341,250
--------------
10,585,313
- ----------------------------------------------------------------------------------
Utilities--0.6%
- ----------------------------------------------------------------------------------
Electric Utilities--0.0%
MarketSpan Corp. 22,000 602,250
- ----------------------------------------------------------------------------------
Telephone Utilities--0.6%
Cia de Telecommunicaciones de Chile SA, Sponsored ADR 25,000 382,813
- ----------------------------------------------------------------------------------
Telefonos de Mexico SA, Sponsored ADR 305,000 10,884,688
--------------
11,267,501
--------------
Total Common Stocks (Cost $1,113,794,554) 1,188,029,992
<CAPTION>
Face
Amount
==================================================================================
<S> <C> <C>
Short-Term Notes--27.0%(2)
- ----------------------------------------------------------------------------------
American Express Credit Corp., 5.50%, 10/1/98 $50,000,000 49,770,833
- ----------------------------------------------------------------------------------
Associates Corp. of North America, 5.54%, 9/3/98 50,000,000 49,984,611
- ----------------------------------------------------------------------------------
BMW US Capital Corp., 5.51%, 9/16/98 29,011,000 28,944,396
- ----------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.51%, 10/7/98 50,000,000 49,724,500
- ----------------------------------------------------------------------------------
Countrywide Home Loans, 5.53%, 9/21/98 25,000,000 24,923,194
- ----------------------------------------------------------------------------------
Ford Motor Credit Co., 5.52%, 9/18/98 50,000,000 49,869,667
- ----------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.52%, 9/9/98 50,000,000 49,938,667
- ----------------------------------------------------------------------------------
Goldman Sachs Group, LP 5.52%, 10/5/98 50,000,000 49,739,333
- ----------------------------------------------------------------------------------
Household Finance Corp., 5.52%, 9/15/98 50,000,000 49,892,667
- ----------------------------------------------------------------------------------
Prudential Funding Corp., 5.53%, 9/17/98 50,000,000 49,877,111
- ----------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc., 5.52%, 10/2/98 50,000,000 49,762,333
--------------
Total Short-Term Notes (Cost $502,427,312) 502,427,312
</TABLE>
20 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
==================================================================================
Face Market Value
Amount See Note 1
==================================================================================
<S> <C> <C>
Repurchase Agreements--12.5%
- ----------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities,
Inc., 5.75%, dated 8/31/98, to be repurchased at
$232,237,088 on 9/1/98, collateralized by U.S.
Treasury Bonds, 7.50%-13.25%, 11/15/09-2/15/19,
with a value of $215,933,741, and U.S. Treasury
Nts., 6.375%, 7/15/99, with a value of $21,653,626
(Cost $232,200,000) $232,200,000 $ 232,200,000
- ----------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,848,421,866) 103.2% 1,922,657,304
- ----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (3.2) (58,787,384)
------------ --------------
Net Assets 100.0% $1,863,869,920
============ ==============
</TABLE>
/1./ Non-income producing security.
/2./ Short-term notes are generally traded on a discount basis; the interest
rate is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
21 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
=======================================================================================
Statement of Assets and Liabilities August 31, 1998
=======================================================================================
=======================================================================================
<S> <C>
Assets
Investments, at value (including repurchase agreement of $232,200,000)
(cost $1,848,421,866)--see accompanying statement $1,922,657,304
- ---------------------------------------------------------------------------------------
Cash 500,921
- ---------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 2,040,976
Interest and dividends 943,957
- ---------------------------------------------------------------------------------------
Other 13,885
--------------
Total assets 1,926,157,043
=======================================================================================
Liabilities
Payables and other liabilities:
Investments purchased 56,501,249
Shares of beneficial interest redeemed 4,383,212
Distribution and service plan fees 681,491
Trustees' fees--Note 1 259,654
Transfer and shareholder servicing agent fees 105,454
Other 356,063
--------------
Total liabilities 62,287,123
=======================================================================================
Net Assets $1,863,869,920
==============
=======================================================================================
Composition of Net Assets
Paid-in capital $1,584,569,952
- ---------------------------------------------------------------------------------------
Undistributed net investment income 24,861,982
- ---------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 180,202,548
- ---------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 74,235,438
--------------
Net assets $1,863,869,920
==============
</TABLE>
22 Oppenheimer Growth Fund
<PAGE>
<TABLE>
===============================================================================================
===============================================================================================
===============================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,356,904,507 and 43,024,845 shares of beneficial interest outstanding) $31.54
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $33.46
- -----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $330,442,427 and
10,821,645 shares of beneficial interest outstanding) $30.54
- -----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $44,377,427 and
1,434,711 shares of beneficial interest outstanding) $30.93
- -----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $132,145,559 and 4,189,170 shares of beneficial interest outstanding) $31.54
</TABLE>
See accompanying Notes to Financial Statements.
23 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================
Statement of Operations For the Year Ended August 31, 1998
================================================================================
================================================================================
<S> <C>
Investment Income
Interest $ 53,452,773
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $40,606) 9,462,154
-------------
Total income 62,914,927
===============================================================================
Expenses
Management fees--Note 4 13,742,084
- --------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 3,042,965
Class B 3,535,048
Class C 437,720
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 2,337,155
Class B 479,394
Class C 60,193
Class Y 51,914
- --------------------------------------------------------------------------------
Shareholder reports 535,643
- --------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 125,543
- --------------------------------------------------------------------------------
Custodian fees and expenses 77,913
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 66,072
- --------------------------------------------------------------------------------
Other 74,461
-------------
Total expenses 24,566,105
================================================================================
Net Investment Income 38,348,822
================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments 196,166,906
Closing of futures contracts 8,207,524
Foreign currency transactions 40,306
-------------
Net realized gain 204,414,736
- --------------------------------------------------------------------------------
Net change in unrealized depreciation on investments (491,820,086)
-------------
Net realized and unrealized loss (287,405,350)
================================================================================
Net Decrease in Net Assets Resulting from Operations $(249,056,528)
=============
</TABLE>
See accompanying Notes to Financial Statements.
24 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================
Statements of Changes in Net Assets
====================================================================================================
Year Ended August 31,
1998 1997
====================================================================================================
<S> <C> <C>
Operations
Net investment income $ 38,348,822 $ 27,065,195
- ----------------------------------------------------------------------------------------------------
Net realized gain 204,414,736 218,881,619
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (491,820,086) 238,043,222
--------------- ---------------
Net increase (decrease) in net assets resulting from operations (249,056,528) 483,990,036
====================================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (26,717,017) (16,725,563)
Class B (3,632,645) (1,279,324)
Class C (482,040) (81,820)
Class Y (2,049,626) (744,288)
- ----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (156,964,533) (127,576,926)
Class B (32,302,581) (17,787,734)
Class C (3,658,326) (841,346)
Class Y (10,359,931) (4,909,715)
====================================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 126,304,589 202,853,918
Class B 130,972,452 108,268,225
Class C 27,083,649 20,188,749
Class Y 64,754,055 65,819,922
====================================================================================================
Net Assets
Total increase (decrease) (136,108,482) 711,174,134
- ----------------------------------------------------------------------------------------------------
Beginning of period 1,999,978,402 1,288,804,268
--------------- ---------------
End of period (including undistributed net investment
income of $24,861,982 and $19,430,107, respectively) $ 1,863,869,920 $ 1,999,978,402
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
25 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
Financial Highlights
=====================================================================================================================
Class A
-------------------------------------------------------------------
Year Ended
Year Ended August 31, June 30,
1998 1997 1996(2) 1996
=====================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $40.42 $33.69 $33.43 $30.80
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .73 .62 .08 .44
Net realized and unrealized gain (loss) (5.05) 10.37 .18 5.70
------ ------ ------ ------
Total income (loss) from
investment operations (4.32) 10.99 .26 6.14
- ---------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.66) (.49) -- (.41)
Distributions from net realized gain (3.90) (3.77) -- (3.10)
------ ------ ------ ------
Total dividends and distributions
to shareholders (4.56) (4.26) -- (3.51)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $31.54 $40.42 $33.69 $33.43
====== ====== ====== ======
=====================================================================================================================
Total Return, at Net Asset Value/(5)/ (11.62)% 35.03% 0.78% 21.00%
=====================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $1,356,905 $1,590,927 $1,127,836 $1,120,046
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,640,181 $1,369,406 $1,101,233 $1,018,022
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.90% 1.74% 1.50%(6) 1.43%
Expenses 1.00% 1.01% 1.03%(6) 1.06%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate/(7)/ 34.4% 25.3% 6.3% 38.0%
</TABLE>
/(1.)/ For the period from June 1, 1994 (inception of offering) to June 30,
1994.
/(2.)/ For the two months ended August 31, 1996. 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 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.
26 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================================
==============================================================================================================================
Class B
- ------------------------ ----------------------------------------------------------------------------------------------
Year Ended June 30, Year Ended August 31, Year Ended June 30,
1995 1994 1998 1997 1996/(2)/ 1996 1995 1994/(4)/
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$26.65 $27.34 $39.34 $32.94 $32.74 $30.36 $26.44 $27.02
- ------------------------------------------------------------------------------------------------------------------------------
.36 .16 .43 .36 .04 .23 .20 (.04)
6.83 (.05) (4.89) 10.08 .16 5.53 6.65 .21
------ ------ ------ ------ ------ ------ ------ ------
7.19 .11 (4.46) 10.44 .20 5.76 6.85 .17
- ------------------------------------------------------------------------------------------------------------------------------
(.24) (.16) (.44) (.27) -- (.28) (.13) (.11)
(2.80) (.64) (3.90) (3.77) -- (3.10) (2.80) (.64)
------ ------ ------ ------ ------ ------ ------ ------
(3.04) (.80) (4.34) (4.04) -- (3.38) (2.93) (.75)
- ------------------------------------------------------------------------------------------------------------------------------
$30.80 $26.65 $30.54 $39.34 $32.94 $32.74 $30.36 $26.44
====== ====== ====== ====== ====== ====== ====== ======
==============================================================================================================================
29.45% 0.27% (12.32)% 33.93% 0.61% 19.95% 28.22% (0.20)%
==============================================================================================================================
$860,736 $656,934 $300,442 $284,227 $137,437 $129,484 $43,267 $8,747
- ------------------------------------------------------------------------------------------------------------------------------
$727,102 $720,765 $353,574 $203,518 $131,142 $90,501 $18,722 $5,119
- ------------------------------------------------------------------------------------------------------------------------------
1.31% 0.56% 1.08% 0.92% 0.61%(6) 0.60% 0.44% (0.22)%(6)
1.05% 1.07% 1.81% 1.84% 1.92%(6) 1.89% 2.02% 1.98%(6)
- ------------------------------------------------------------------------------------------------------------------------------
35.4% 19.8% 34.4% 25.3% 6.3% 38.0% 35.4% 19.8%
</TABLE>
/(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, 1998 were $817,732,037 and $415,374,426, respectively.
27 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================
Financial Highlights (Continued)
============================================================================================================
Class C
---------------------------------------------------------
Period
Ended
Year Ended August 31, June 30,
1998 1997 1996/(2)/ 1996/(3)/
============================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $39.87 $33.42 $33.22 $33.44
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .46 .42 .02 .40
Net realized and unrealized gain (loss) (4.99) 10.17 .18 2.88
------ ------ ------ ------
Total income (loss) from
investment operations (4.53) 10.59 .20 3.28
- ------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.51) (.37) -- (.40)
Distributions from net realized gain (3.90) (3.77) -- (3.10)
------ ------ ------ ------
Total dividends and distributions
to shareholders (4.41) (4.14) -- (3.50)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $30.93 $39.87 $33.42 $33.22
====== ====== ====== ======
============================================================================================================
Total Return, at Net Asset Value/(5)/ (12.33)% 33.93% 0.60% 10.07%
============================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $44,377 $28,145 $5,034 $3,593
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $43,817 $13,705 $4,105 $1,804
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.06% 0.95% 0.44%(6) 0.65%/(6)/
Expenses 1.81% 1.84% 2.10%(6) 1.81%/(6)/
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate/(7)/ 34.4% 25.3% 6.3% 38.0%
</TABLE>
/(1.)/ For the period from June 1, 1994 (inception of offering) to June 30,
1994.
/(2.)/ For the two months ended August 31, 1996. 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 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.
28 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
=========================================================================================
=========================================================================================
Class Y
- -----------------------------------------------------------------------------------------
Year Ended August 31, Year Ended June 30,
1998 1997 1996/(2)/ 1996 1995 1994/(1)/
=========================================================================================
<S> <C> <C> <C> <C> <C>
$40.43 $33.69 $33.42 $30.80 $26.64 $28.08
- -----------------------------------------------------------------------------------------
.87 .66 .08 .46 .30 .02
(5.09) 10.42 .19 5.70 6.92 (1.46)
------ ------ ------ ------ ------ ------
(4.22) 11.08 .27 6.16 7.22 (1.44)
- -----------------------------------------------------------------------------------------
(.77) (.57) -- (.44) (.26) --
(3.90) (3.77) -- (3.10) (2.80) --
------ ------ ------ ------ ------ ------
(4.67) (4.34) -- (3.54) (3.06) --
- -----------------------------------------------------------------------------------------
$31.54 $40.43 $33.69 $33.42 $30.80 $26.64
====== ====== ====== ====== ====== ======
=========================================================================================
(11.38)% 35.36% 0.81% 21.10% 29.59% (5.13)%
=========================================================================================
$132,146 $96,679 $18,497 $16,110 $3,189 $9
- -----------------------------------------------------------------------------------------
$135,098 $62,619 $16,792 $9,384 $536 $10
- -----------------------------------------------------------------------------------------
2.16% 2.00% 1.67%/(6)/ 1.56% 1.54% 1.09%/(6)/
0.71% 0.77% 0.87%/(6)/ 0.94% 1.04% 1.25%/(6)/
- -----------------------------------------------------------------------------------------
34.4% 25.3% 6.3% 38.0% 35.4% 19.8%
</TABLE>
/(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, 1998 were $817,732,037 and $415,374,426, respectively.
See accompanying Notes to Financial Statements.
29 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 that class and exclusive voting rights with
respect to matters affecting that 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 an
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. Forward foreign currency exchange contracts are valued
based on closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank or
dealer.
- --------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from fluctuations arising from changes in market values of
securities held and reported with all other foreign currency gains and losses in
the Fund's Statement of Operations.
30 Oppenheimer Growth Fund
<PAGE>
================================================================================
================================================================================
================================================================================
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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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
August 31, 1998, a provision of $55,231 was made for the Fund's projected
benefit obligations, and payments of $11,314 were made to retired trustees,
resulting in an accumulated liability of $248,650 at August 31, 1998.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual fees they are entitled to receive from the Fund. Under the
plan, the compensation deferred is periodically adjusted as though an equivalent
amount had been invested for the Trustee in shares of one or more Oppenheimer
funds selected by the Trustee. The amount paid to the Trustee under the plan
will be determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
31 Oppenheimer Growth Fund
<PAGE>
================================================================================
Notes to Financial Statements (Continued)
================================================================================
================================================================================
1. Significant Accounting Policies (continued)
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of the recognition of certain foreign currency gains (losses)
as ordinary income (loss) for tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may differ
from its 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 fiscal year in which the income or realized gain
was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 1998, amounts have been reclassified to reflect a decrease
in undistributed net investment income of $35,619. Accumulated realized gain on
investments was increased by the same amount.
- --------------------------------------------------------------------------------
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.
32 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================
=====================================================================================================
=====================================================================================================
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:
Year Ended August 31, 1998 Year Ended August 31, 1997
----------------------------- ------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 7,116,243 $ 273,834,013 7,438,778 $ 270,007,705
Dividends and
distributions reinvested 5,167,731 177,822,050 4,120,561 140,121,073
Issued in conjunction
with the acquisition of
Jefferson-Pilot Capital
Appreciation Fund, Inc.--
Note 6 -- -- 1,196,229 40,529,263
Redeemed (8,622,642) (325,351,474) (6,871,542) (247,804,123)
---------- ------------- ---------- -------------
Net increase 3,661,332 $ 126,304,589 5,884,026 $ 202,853,918
========== ============= ========== =============
- -----------------------------------------------------------------------------------------------------
Class B:
Sold 4,830,243 $ 179,390,806 3,854,380 $ 137,203,025
Dividends and
distributions reinvested 1,028,206 34,455,190 542,057 18,050,580
Redeemed (2,261,854) (82,873,544) (1,343,411) (46,985,380)
---------- ------------- ---------- -------------
Net increase 3,596,595 $ 130,972,452 3,053,026 $ 108,268,225
========== ============= ========== =============
- -----------------------------------------------------------------------------------------------------
Class C:
Sold 920,879 $ 34,571,489 621,652 $ 22,634,387
Dividends and
distributions reinvested 118,209 4,012,030 26,886 907,142
Redeemed (310,357) (11,499,870) (93,205) (3,352,780)
---------- ------------- ---------- -------------
Net increase 728,731 $ 27,083,649 555,333 $ 20,188,749
========== ============= ========== =============
- -----------------------------------------------------------------------------------------------------
Class Y:
Sold 2,414,934 $ 89,265,515 2,052,812 $ 73,903,563
Dividends and
distributions reinvested 361,268 12,409,557 166,588 5,654,002
Redeemed (978,523) (36,921,017) (376,914) (13,737,643)
---------- ------------- ---------- -------------
Net increase 1,797,679 $ 64,754,055 1,842,486 $ 65,819,922
========== ============= ========== =============
</TABLE>
33 Oppenheimer Growth Fund
<PAGE>
================================================================================
Notes to Financial Statements (Continued)
================================================================================
================================================================================
3. Unrealized Gains and Losses on Investments
At August 31, 1998, net unrealized appreciation on investments of $74,235,438
was composed of gross appreciation of $338,937,969, and gross depreciation of
$264,702,531.
================================================================================
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% of 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, 0.60% of the next $700
million, 0.58% of the next $1 billion, and 0.56% of average annual net assets in
excess of $2.5 billion. The agreement was amended per resolutions adopted by the
Board of Trustees on December 11, 1997, to add the final breakpoint of 0.56% on
average annual net assets in excess of $2.5 billion.
For the year ended August 31, 1998, commissions (sales charges paid by
investors) on sales of Class A shares totaled $4,793,199, of which $1,473,182
was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $5,878,634 and $279,520, respectively, of which $534,635
and $11,693, respectively, was paid to an affiliated broker/dealer. During the
year ended August 31, 1998, OFDI received contingent deferred sales charges of
$653,854 and $16,163, respectively, upon redemption of Class B and Class C
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 other Oppenheimer funds. OFS's
total costs of providing such services are allocated ratably to these funds.
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 shareholder 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 August 31, 1998, OFDI paid $138,819 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
34 Oppenheimer Growth Fund
<PAGE>
================================================================================
================================================================================
================================================================================
The Fund has adopted a Distribution and Service Plan for Class B shares to
reimburse OFDI for its 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 for its services rendered in distributing Class B shares. 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. Each fee is computed on
the average annual net assets of Class B shares, determined as of the close of
each regular business day. During the year ended August 31, 1998, OFDI paid
$33,482 to an affiliated broker/dealer as reimbursement for Class B personal
service and maintenance expenses and retained $2,992,925 as reimbursement for
Class B sales commissions and service fee advances, as well as financing costs.
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 distributing
shares before the Plan was terminated. As of August 31, 1998, OFDI had incurred
excess distribution and servicing costs of $10,573,708 for Class B.
The Fund has adopted a Distribution and Service Plan for Class C shares to
compensate OFDI for its 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 for its services rendered in distributing 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. Each fee is
computed on the average annual net assets of Class C shares, determined as of
the close of each regular business day. During the year ended August 31, 1998,
OFDI paid $3,174 to an affiliated broker/dealer as compensation for Class C
personal service and maintenance expenses and retained $315,938 as compensation
for Class C sales commissions and service fee advances, as well as financing
costs. 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
distributing shares before the Plan was terminated. As of August 31, 1998, OFDI
had incurred excess distribution and servicing costs of $493,868 for Class C.
================================================================================
5. Forward Contracts
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks.
They may also be used to tactically shift portfolio currency risk. The Fund
generally enters into forward contracts as a hedge upon the purchase or sale of
a security denominated in a foreign currency. In addition, the Fund may enter
into such contracts as a hedge against changes in foreign currency exchange
rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward transaction.
35 Oppenheimer Growth Fund
<PAGE>
================================================================================
Notes to Financial Statements (Continued)
================================================================================
================================================================================
5. Forward Contracts (continued)
Securities held in segregated accounts to cover net exposure on outstanding
forward contracts are noted in the Statement of Investments where applicable.
Unrealized appreciation of depreciation on forward contracts is reported in the
Statements of Assets and Liabilities. Realized gains and losses are reported
with all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet the terms
of the contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
================================================================================
6. Acquisition of Jefferson-Pilot Capital Appreciation Fund, Inc.
On December 20, 1996, Oppenheimer Growth Fund acquired all the net assets of
Jefferson-Pilot Capital Appreciation Fund, Inc., (J-P Capital) pursuant to an
agreement and plan of reorganization approved by the J-P Capital shareholders on
December 3, 1996. The Fund issued 1,196,229 shares of beneficial interest valued
at $40,529,263, in exchange for the net assets of J-P Capital, resulting in
combined net assets of $1,559,572,986 on December 20, 1996. The net assets
acquired included net unrealized appreciation of $10,448,341. The exchange
qualified as a tax-free reorganization for federal income tax purposes.
================================================================================
7. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended August 31,
1998.
36 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, 1998, 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 two-year period then ended,
the two-month period ended August 31, 1996, and each of the years in the
three-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 and financial highlights. Our procedures included confirmation of
securities owned as of August 31, 1998, 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, 1998, 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 two-year period then ended, the two-month period ended August 31, 1996,
and each of the years in the three-year period ended June 30, 1996, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
September 22, 1998
37 Oppenheimer Growth Fund
<PAGE>
================================================================================
Federal Income Tax Information (Unaudited)
================================================================================
================================================================================
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $4.5649, $4.3399, $4.4151 and $4.6729 per share were paid
to Class A, Class B, Class C and Class Y shareholders, respectively, on December
19, 1997, of which, for each class of shares, $1.9028 was designated as a
capital gain distribution in the "28% Rate Group" and $1.5512 was designated as
a capital gain distribution in the "20% Rate Group" 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.
Dividends paid by the Fund during the year ended August 31, 1998, which are
not designated as capital gain distributions should be multiplied by 16.62% 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.
38 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
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 OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer Growth Fund. This report must be preceded
or accompanied by a Prospectus of Oppenheimer Growth
Fund. For material information concerning the Fund, see
the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
39 Oppenheimer Growth Fund
<PAGE>
Information and services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
Internet
24-hr access to account information. Online
transactions now available
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
Account Transactions
Mon-Fri 8:30am-8pm ET
1-800-852-8457
PhoneLink
24-hr automated information
and automated transactions
1-800-533-3310
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for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
1-800-835-3104
[LOGO] OppenheimerFunds(R)
Distributor, Inc.
RA0270.001.0898 October 30, 1998
