<PAGE> 1
ANNUAL REPORT AUGUST 31, 1999
OPPENHEIMER
GROWTH FUND
[PHOTO]
[OPPENHEIMERFUNDS (R) LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
5 An Interview
with Your Fund's
Manager
9 Fund Performance
14 FINANCIAL
STATEMENTS
34 INDEPENDENT
AUDITORS' REPORT
35 Federal
Income Tax
Information
36 Officers and Trustees
37 OppenheimerFunds
Family
40 Information and
Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
WE REPOSITIONED THE FUND TO FOCUS ON HIGHER GROWTH companies in the technology,
healthcare and consumer cyclical sectors.
OUR GOAL IS TO IDENTIFY A SELECT GROUP OF COMPANIES that we believe can sustain
high rates of revenue and earnings growth.
AVERAGE ANNUAL
TOTAL RETURNS
For the 1-Year Period
Ended 8/31/99*
CLASS A
Without With
Sales Chg. Sales Chg.
- --------------------------
39.39% 31.37%
CLASS B
Without With
Sales Chg. Sales Chg.
- --------------------------
38.27% 33.27%
CLASS C
Without With
Sales Chg. Sales Chg.
- --------------------------
38.28% 37.28%
CLASS Y
Without With
Sales Chg. Sales Chg.
- --------------------------
39.74% 39.74%
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
*See page 12 for further details.
2 OPPENHEIMER GROWTH FUND
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Growth Fund
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth
stocks, which has driven the market's advance over the past few years, has begun
to moderate, and many previously out-of-favor value-oriented, mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against
inflation. In our view, history has repeatedly demonstrated that most financial
assets do best in a low-inflation environment. What's more, we believe that the
move to higher interest rates should be temporary.
3 OPPENHEIMER GROWTH FUND
<PAGE> 4
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue,
we are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industry-wide tests. We
intend to continue re-testing our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
September 22, 1999
4 OPPENHEIMER GROWTH FUND
<PAGE> 5
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Bruce Bartlett
(Portfolio Manager)
Jane Putnam
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
Q. HOW DID OPPENHEIMER GROWTH FUND PERFORM DURING THE ONE-YEAR PERIOD THAT ENDED
AUGUST 31, 1999?
A. The Fund ended the fiscal year reporting good returns, despite a particularly
challenging period in late 1998. Performance began to improve in December and
continued to improve through most of the period as we refocused the Fund's
strategy to emphasize sustainable revenue and earnings growth among an
increasingly select group of investments.
WHAT MADE THE FIRST FEW MONTHS OF THE PERIOD SO CHALLENGING?
September and October of 1998 was a wearisome period for many investors.
Widespread economic difficulties in emerging markets throughout the world
sparked fears of a global economic slowdown. Most equities suffered as a result.
At the time, the Fund was positioned relatively conservatively with a high
percentage of cash reserves. Nevertheless, performance fell sharply as a result
of our substantial exposure to small- and mid-cap companies in an environment
that favored large-caps. Our significant holdings in energy and transportation
also performed particularly poorly.
Investors' fears eased in mid-October 1998 when the U.S. economy showed
evidence of continuing strength. However, the Fund's large cash position and
limited exposure to the fast-growing technology and healthcare sectors prevented
us from participating fully in the recovery that followed.
5 OPPENHEIMER GROWTH FUND
<PAGE> 6
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
"WE REDUCED OUR TOTAL NUMBER OF HOLDINGS BY APPROXIMATELY HALF SO WE COULD SPEND
MORE TIME EVALUATING EACH COMPANY IN WHICH WE INVEST."
WHAT ACTIONS DID YOU TAKE TO REINVIGORATE PERFORMANCE?
Beginning in December 1998, we began to reposition the Fund for stronger growth.
Although our investment strategy remained highly disciplined, our emphasis
turned from the price of growth to the sustainability and rate of growth. In
other words, we became willing to pay more for a company's stock if we were
confident that the company's prospects for rapid growth justified that price. We
also turned our focus away from relatively low-growth sectors, such as basic
industries, industrials, commodity products and transportation. Instead, we
looked toward traditional growth sectors, such as technology, healthcare and
consumer cyclicals.
By January 1999, we had substantially reduced our cash holdings,
increasing our equity exposure from under 65% at the beginning of September to
nearly 80% at the start of 1999. We continued to move toward a more fully
invested portfolio. At the same time, we reduced our total number of holdings by
approximately half so we could spend more time evaluating each company in which
we invest. A more concentrated portfolio also enabled us to invest more money in
those companies in which we had the highest degree of confidence. Whereas the
Fund held stocks in more than 200 companies at the beginning of the fiscal
period, we held stocks of fewer than 100 by August 1999.
WHERE DID YOU FIND THE MOST ATTRACTIVE OPPORTUNITIES?
Technology has been our single largest area of investment. In today's globally
competitive environment, even local and regional companies are increasingly
driven to invest in leading edge technology. Our goal as been to position the
Fund in the areas of technology that we anticipate will perform the best over
the long term. Accordingly, we favor companies with a leading position in high
growth areas.
6 OPPENHEIMER GROWTH FUND
<PAGE> 7
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 9/30/99(1)
Class A
1-Year 5-Year 10-Year
- -------------------------------
25.02% 18.26% 14.33%
Class B Since
1-Year 5-Year Inception
- -------------------------------
26.56% 18.45% 16.16%
Class C Since
1-Year 5-Year Inception
- -------------------------------
30.60% N/A 16.07%
Class Y Since
1-Year 5-Year Inception
- -------------------------------
33.02% 19.89% 18.84%
Examples include Microsoft Corp., the world's leading software vendor; General
Instrument Corp., which makes advanced equipment to deliver more information to
consumers over cable systems; and EMC Corp., one of the foremost manufacturers
of high-capacity data storage devices, an important technology for enabling
Internet growth.
In the consumer cyclicals area, we've increased our holdings of
high-growth companies that stand to benefit from increased consumer spending on
home recreation and relaxation. For example, we have invested in companies such
as Best Buy Co., Inc., a specialty consumer electronics retailer that we believe
is well positioned to benefit from the ongoing shift to digital forms of audio
and video entertainment.
The Fund has also expanded its holdings in the healthcare sector to
benefit from the gradual aging of America's population and rapid innovations in
the development of products to extend and improve life. Within healthcare, we
have shifted our emphasis from the large, traditional pharmaceutical companies
in favor of established biotechnology companies, such as Biogen, Inc. and Amgen,
Inc. These companies have strong pipelines of new products that face less
competition in the marketplace and less risk of patent expiration than many of
the products of traditional pharmaceutical companies. For example, in mid-1996,
Biogen brought to market the only product acknowledged by the Food and Drug
Administration to slow the progression of multiple sclerosis.
1. See page 12 for further details.
7 OPPENHEIMER GROWTH FUND
<PAGE> 8
SECTOR ALLOCATION(2)
[PIE CHART]
<TABLE>
<S> <C>
- - Technology 43.6%
- - Consumer
Cyclicals 19.9
- - Financial 10.6
- - Healthcare 8.5
- - Capital Goods 6.5
- - Consumer
Staples 4.9
- - Energy 2.9
- - Utilities 1.8
- - Communication
Services 1.3
</TABLE>
WHAT IS YOUR OUTLOOK FOR THE COMING MONTHS?
We believe that, with inflation and interest rates likely to remain in check,
the outlook for growth investing remains favorable. Our investment approach is
designed to identify fast-growing companies through disciplined,
company-by-company analysis...companies the Fund can grow with over the long
term. That's what makes Oppenheimer Growth Fund an important part of The Right
Way to Invest.
<TABLE>
<CAPTION>
TOP 5 INDUSTRIES(2)
- --------------------------------------------------------------------------------
<S> <C>
Retail-Specialty 15.4%
- --------------------------------------------------------------------------------
Electronics 14.0
- --------------------------------------------------------------------------------
Computer Hardware 13.4
- --------------------------------------------------------------------------------
Communication Equipment 8.0
- --------------------------------------------------------------------------------
Healthcare/Drugs 7.4
- --------------------------------------------------------------------------------
<CAPTION>
TOP 10 STOCK HOLDINGS(2)
- --------------------------------------------------------------------------------
<S> <C>
JDS Uniphase Corp. 6.4%
- --------------------------------------------------------------------------------
Tyco International Ltd. 6.1
- --------------------------------------------------------------------------------
Best Buy Co., Inc. 4.5
- --------------------------------------------------------------------------------
General Instrument Corp. 4.2
- --------------------------------------------------------------------------------
EMC Corp. 3.9
- --------------------------------------------------------------------------------
Amgen, Inc. 3.2
- --------------------------------------------------------------------------------
Kohl's Corp. 2.7
- --------------------------------------------------------------------------------
International Business Machines Corp. 2.7
- --------------------------------------------------------------------------------
Biogen, Inc. 2.6
- --------------------------------------------------------------------------------
Microsoft Corp. 2.6
- --------------------------------------------------------------------------------
</TABLE>
2. Portfolio is subject to change. Percentages are as of August 31, 1999 and are
based on total market value of common stocks.
8 OPPENHEIMER GROWTH FUND
<PAGE> 9
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, 1999, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. The fiscal year that ended August 31,
1999, opened with sharp market declines in September 1998, driven by fears of
recession. Despite the Fund's sizeable cash reserves early in the period,
performance suffered due to our high level of exposure to small- and mid-cap
companies. In the recovery that followed, our cash reserves hindered
performance. Performance improved during 1999 with the Fund under the guidance
of new portfolio management. Equity exposure increased toward a more fully
invested position. We reduced the Fund's total number of holdings by half to
focus more closely on a smaller group of companies. In addition, we changed the
investment strategy from an emphasis on the price of growth to the
sustainability and rate of growth. The Fund's largest holdings focused on
leading technology companies, consumer cyclical companies positioned to benefit
from continued high rates of consumer spending, and biotechnology concerns with
new, profitable and novel therapies. The Fund's portfolio holdings, allocations
and strategies are subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 1999. In the case of Class A shares, performance is
measured 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,
performance is measured from the inception of the class on November 1, 1995 and
in the case of Class Y shares, from the inception of the class on June 1, 1994.
The Fund's performance reflects the deduction of the maximum initial sales
charge on Class A shares, the applicable contingent deferred sales charge on
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 effect 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 index shown.
9 OPPENHEIMER GROWTH FUND
<PAGE> 10
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 table was originally a line graph in the printed materials].
<TABLE>
<CAPTION>
Oppenheimer Growth Fund
Class A S&P 500
<S> <C> <C>
6/30/89 10000 9425
6/30/90 11646 10649
6/30/91 12503 11649
6/30/92 14177 13476
6/30/93 16107 15751
6/30/94 16334 15793
6/30/95 20584 20443
6/30/96 25928 24736
8/31/96 25305 24928
8/31/97 35581 33661
8/31/98 38466 29750
8/31/99 53774 41466
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 8/31/99(2)
1-YEAR 31.37% 5-YEAR 17.64% 10-YEAR 14.26%
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 table was originally a line graph in the printed materials].
<TABLE>
<CAPTION>
Oppenheimer Growth Fund
Class B S&P 500
<S> <C> <C>
8/17/93 10000 10000
6/30/94 9810 9980
6/30/95 12362 12796
6/30/96 15571 15349
8/31/96 15197 15444
8/31/97 21369 20683
8/31/98 23102 18136
8/31/99 32295 25079
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 8/31/99(2)
1-YEAR 33.27% 5-YEAR 18.03% LIFE 16.45%
The performance information for S&P 500 in the graphs begins on 6/30/89 for
Class A, 8/31/93 for Class B, 10/31/95 for Class C and 5/31/94 for Class Y.
10 OPPENHEIMER GROWTH FUND
<PAGE> 11
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 table was originally a line graph in the printed materials].
<TABLE>
<CAPTION>
Oppenheimer Growth Fund
Class C S&P 500
<S> <C> <C>
11/1/95 10000 10000
6/30/96 11712 11006
8/31/96 11430 11073
8/31/97 16072 14830
8/31/98 17375 13002
8/31/99 24290 17977
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 8/31/99(2)
1-YEAR 37.28% LIFE 16.53%
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 table was originally a line graph in the printed materials].
<TABLE>
<CAPTION>
Oppenheimer Growth Fund
Class Y S&P 500
<S> <C> <C>
6/1/94 10000 10000
6/30/94 9755 9487
6/30/95 12293 12295
6/30/96 15484 14889
8/31/96 15112 15009
8/31/97 21249 20317
8/31/98 22972 18005
8/31/99 32114 25161
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS Y SHARES OF THE FUND AT 8/31/99(2)
1-YEAR 39.74% 5-YEAR 19.47% LIFE 19.21%
1. The Fund changed its fiscal year end from 6/30 to 8/31.
2. See page 12 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 OPPENHEIMER GROWTH FUND
<PAGE> 12
NOTES
- --------------------------------------------------------------------------------
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.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
CLASS A. The inception date of the Fund was 3/15/73. Class A returns include the
current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 8/17/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year).
Class B shares are subject to an annual 0.75% asset-based sales charge. Because
Class B shares convert to Class A shares 72 months after purchase, the
"life-of-class" return for Class B uses Class A performance for the period after
conversion.
CLASS C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 6/1/94. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the different performance calculations is in the Fund's
prospectus.
12 OPPENHEIMER GROWTH FUND
<PAGE> 13
FINANCIALS
13 OPPENHEIMER GROWTH FUND
<PAGE> 14
STATEMENT OF INVESTMENTS August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================
<S> <C> <C>
COMMON STOCKS--89.5%
- ----------------------------------------------------------------------------------------------------
CAPITAL GOODS--5.9%
- ----------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.4%
United Rentals, Inc.(1) 350,000 $ 8,553,125
- ----------------------------------------------------------------------------------------------------
MANUFACTURING--5.5%
Tyco International Ltd. 1,255,561 127,204,024
- ----------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES--1.1%
- ----------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE--1.1%
MCI WorldCom, Inc.(1) 353,500 26,777,625
- ----------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--17.8%
- ----------------------------------------------------------------------------------------------------
RETAIL: GENERAL--4.1%
Kohl's Corp.(1) 800,000 57,000,000
- ----------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 860,000 38,108,750
------------
95,108,750
- ----------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--13.7%
Abercrombie & Fitch Co., Cl. A(1) 630,000 21,971,250
- ----------------------------------------------------------------------------------------------------
Bed Bath & Beyond, Inc.(1) 985,000 27,087,500
- ----------------------------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 1,327,400 93,249,850
- ----------------------------------------------------------------------------------------------------
Gap, Inc. 562,500 22,007,812
- ----------------------------------------------------------------------------------------------------
Home Depot, Inc. 715,000 43,704,375
- ----------------------------------------------------------------------------------------------------
Intimate Brands, Inc., Cl. A 622,250 23,995,516
- ----------------------------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 200,000 6,850,000
- ----------------------------------------------------------------------------------------------------
Tandy Corp. 745,000 35,201,250
- ----------------------------------------------------------------------------------------------------
Tiffany & Co. 867,900 45,890,212
------------
319,957,765
- ----------------------------------------------------------------------------------------------------
CONSUMER STAPLES--4.4%
- ----------------------------------------------------------------------------------------------------
BROADCASTING--1.0%
Infinity Broadcasting Corp., Cl. A1 892,200 24,145,162
- ----------------------------------------------------------------------------------------------------
ENTERTAINMENT--0.7%
Outback Steakhouse, Inc.(1) 525,000 15,553,125
- ----------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--1.3%
CVS Corp. 715,400 29,823,237
- ----------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--1.4%
Dial Corp. (The) 1,195,500 33,175,125
- ----------------------------------------------------------------------------------------------------
ENERGY--2.6%
- ----------------------------------------------------------------------------------------------------
OIL-INTERNATIONAL--2.6%
Exxon Corp. 310,000 24,451,250
- ----------------------------------------------------------------------------------------------------
Mobil Corp. 345,000 35,319,375
------------
59,770,625
</TABLE>
14 OPPENHEIMER GROWTH FUND
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=====================================================================================================
<S> <C> <C>
FINANCIAL--9.5%
- -----------------------------------------------------------------------------------------------------
BANKS--3.2%
Fifth Third Bancorp 425,000 $ 28,156,250
- -----------------------------------------------------------------------------------------------------
First Tennessee National Corp. 570,000 18,240,000
- -----------------------------------------------------------------------------------------------------
Firstar Corp. 1,016,100 27,244,181
--------------
73,640,431
- -----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--3.7%
Citigroup, Inc. 517,500 22,996,406
- -----------------------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 108,800 6,507,600
- -----------------------------------------------------------------------------------------------------
Providian Financial Corp. 127,200 9,873,900
- -----------------------------------------------------------------------------------------------------
Schwab (Charles) Corp. 1,200,000 47,400,000
----------
86,777,906
- -----------------------------------------------------------------------------------------------------
INSURANCE--2.6%
AFLAC, Inc. 552,000 24,805,500
- -----------------------------------------------------------------------------------------------------
American International Group, Inc. 388,468 36,006,128
--------------
60,811,628
- -----------------------------------------------------------------------------------------------------
HEALTHCARE--7.6%
- -----------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--6.6%
Amgen, Inc.(1) 800,000 66,550,000
- -----------------------------------------------------------------------------------------------------
Biogen, Inc.(1) 705,600 54,154,800
- -----------------------------------------------------------------------------------------------------
Genentech, Inc.(1) 59,700 9,805,725
- -----------------------------------------------------------------------------------------------------
Immunex Corp.(1) 350,000 23,559,375
--------------
154,069,900
- -----------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--1.0%
Guidant Corp. 100,000 5,868,750
- -----------------------------------------------------------------------------------------------------
Medtronic, Inc. 208,078 16,282,103
--------------
22,150,853
- -----------------------------------------------------------------------------------------------------
TECHNOLOGY--39.0%
- -----------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--12.0%
Dell Computer Corp.(1) 730,000 35,633,125
- -----------------------------------------------------------------------------------------------------
EMC Corp.(1) 1,360,000 81,600,000
Gateway, Inc.(1) 555,000 53,800,312
International Business Machines Corp. 445,000 55,430,312
Lexmark International Group, Inc., Cl. A(1) 657,500 51,778,125
--------------
278,241,874
</TABLE>
15 OPPENHEIMER GROWTH FUND
<PAGE> 16
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=====================================================================================================
<S> <C> <C>
TECHNOLOGY Continued
- -----------------------------------------------------------------------------------------------------
COMPUTER SERVICES--1.4%
Unisys Corp.(1) 750,000 $ 32,250,000
- -----------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--6.0%
Amazon.com, Inc.(1) 30,000 3,731,250
- -----------------------------------------------------------------------------------------------------
America Online, Inc.(1) 275,000 25,110,938
- -----------------------------------------------------------------------------------------------------
At Home Corp.(1) 242,284 9,721,646
- -----------------------------------------------------------------------------------------------------
Citrix Systems, Inc.(1) 250,000 14,250,000
- -----------------------------------------------------------------------------------------------------
Compuware Corp.(1) 710,000 21,433,125
- -----------------------------------------------------------------------------------------------------
eBay, Inc.(1) 89,400 11,225,288
- -----------------------------------------------------------------------------------------------------
Microsoft Corp.(1) 585,000 54,149,063
--------------
139,621,310
- -----------------------------------------------------------------------------------------------------
COMMMUNICATIONS EQUIPMENT--7.1%
Cisco Systems, Inc.(1) 620,000 42,043,750
- -----------------------------------------------------------------------------------------------------
General Instrument Corp.(1) 1,760,000 86,570,000
- -----------------------------------------------------------------------------------------------------
Nortel Networks Corp. 545,800 22,411,913
- -----------------------------------------------------------------------------------------------------
Tellabs, Inc.(1) 250,000 14,890,625
--------------
165,916,288
- -----------------------------------------------------------------------------------------------------
ELECTRONICS--12.5%
E-Tek Dynamics, Inc.(1) 249,300 14,132,194
- -----------------------------------------------------------------------------------------------------
Intel Corp. 423,100 34,773,531
- -----------------------------------------------------------------------------------------------------
JDS Uniphase Corp.(1) 1,262,698 133,924,907
- -----------------------------------------------------------------------------------------------------
Solectron Corp.(1) 410,000 32,082,500
- -----------------------------------------------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 505,000 34,340,000
- -----------------------------------------------------------------------------------------------------
Waters Corp.(1) 650,000 42,859,375
--------------
292,112,507
- -----------------------------------------------------------------------------------------------------
UTILITIES--1.6%
- -----------------------------------------------------------------------------------------------------
GAS UTILITIES--1.6%
Enron Corp. 880,000 36,850,000
--------------
Total Common Stocks (Cost $1,433,893,149) 2,082,511,260
=====================================================================================================
PREFERRED STOCKS--0.9%
Microsoft Corp., $2.75 Cum. Cv., Series A, Non-Vtg.
(Cost $21,582,363) 219,800 22,076,163
</TABLE>
16 OPPENHEIMER GROWTH FUND
<PAGE> 17
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
=====================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--1.1%
Prudential Funding Corp., 5.29%, 10/14/99(2) (Cost $24,842,035) $ 25,000,000 $ 24,842,035
- -----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--8.6%
Repurchase agreement with PaineWebber, Inc., 5.40%, dated
8/31/99, to be repurchased at $199,529,925 on 9/1/99,
collateralized by U.S. Treasury Bonds, 6.25%--11.875%,
11/15/03-8/15/23, with a value of $88,955,255, and U.S.
Treasury Nts., 5.625%--8.75%, 11/30/99-
7/15/06, with a value of $114,716,258 (Cost $199,500,000) 199,500,000 199,500,000
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,679,817,547) 100.1% 2,328,929,458
- -----------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1) (1,308,444)
------------------------
NET ASSETS 100.0% $2,327,621,014
========================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
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.
17 OPPENHEIMER GROWTH FUND
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $1,679,817,547)--see accompanying statement $ 2,328,929,458
- ------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 2,096,672
Interest and dividends 770,834
Other 348,451
---------------
Total assets 2,332,145,415
================================================================================================
LIABILITIES
Bank overdraft 2,489
- ------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 1,539,022
Investments purchased 1,078,375
Distribution and service plan fees 763,606
Transfer and shareholder servicing agent fees 444,619
Shareholder reports 299,968
Trustees' compensation--Note 1 248,645
Custodian fees 10,979
Other 136,698
---------------
Total liabilities 4,524,401
================================================================================================
NET ASSETS $ 2,327,621,014
===============
================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $1,549,693,989
- ------------------------------------------------------------------------------------------------
Undistributed net investment income 1,542,581
- ------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 127,272,533
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 649,111,911
---------------
Net assets $2,327,621,014
===============
</TABLE>
18 OPPENHEIMER GROWTH FUND
<PAGE> 19
<TABLE>
================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,730,086,507 and 43,504,933 shares of beneficial interest outstanding) $39.77
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $42.20
- ------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $445,628,939
and 11,615,369 shares of beneficial interest outstanding) $38.37
- ------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $57,969,908
and 1,489,425 shares of beneficial interest outstanding) $38.92
- ------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $93,935,660 and 2,362,739 shares of beneficial interest outstanding) $39.76
</TABLE>
See accompanying Notes to Financial Statements.
19 OPPENHEIMER GROWTH FUND
<PAGE> 20
STATEMENT OF OPERATIONS For the Year Ended August 31, 1999
<TABLE>
=================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 19,049,118
- -------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $26,171) 9,403,432
-------------
Total income 28,452,550
=================================================================================================
EXPENSES
Management fees--Note 4 13,894,842
- -------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 3,033,217
Class B 4,093,686
Class C 534,637
- -------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 2,886,195
Class B 741,050
Class C 117,008
Class Y 156,010
- -------------------------------------------------------------------------------------------------
Shareholder reports 772,235
- -------------------------------------------------------------------------------------------------
Custodian fees and expenses 106,396
- -------------------------------------------------------------------------------------------------
Trustees' compensation--Note 1 68,480
- -------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 60,822
- -------------------------------------------------------------------------------------------------
Insurance expenses 20,350
- -------------------------------------------------------------------------------------------------
Other 142,951
-------------
Total expenses 26,627,879
Less expenses paid indirectly--Note 1 (18,683)
-------------
Net expenses 26,609,196
=================================================================================================
NET INVESTMENT INCOME 1,843,354
=================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 127,564,474
Closing of futures contracts (10,098)
Foreign currency transactions (1,264)
-------------
Net realized gain 127,553,112
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 574,876,473
-------------
Net realized and unrealized gain 702,429,585
=================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $704,272,939
=============
</TABLE>
See accompanying Notes to Financial Statements.
20 OPPENHEIMER GROWTH FUND
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 1,843,354 $ 38,348,822
- ---------------------------------------------------------------------------------------------------------------
Net realized gain 127,553,112 204,414,736
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 574,876,473 (491,820,086)
--------------------------------
Net increase (decrease) in net assets resulting from operations 704,272,939 (249,056,528)
===============================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (20,206,393) (26,717,017)
Class B (2,324,915) (3,632,645)
Class C (291,190) (482,040)
Class Y (2,313,720) (2,049,626)
- ---------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (130,047,494) (156,964,533)
Class B (33,737,866) (32,302,581)
Class C (4,357,587) (3,658,326)
Class Y (12,366,717) (10,359,931)
===============================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2:
Class A 5,826,017 126,304,589
Class B 24,924,295 130,972,452
Class C 1,650,848 27,083,649
Class Y (67,277,123) 64,754,055
===============================================================================================================
NET ASSETS
Total increase (decrease) 463,751,094 (136,108,482)
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 1,863,869,920 1,999,978,402
----------------------------------
End of period (including undistributed net investment
income of $1,542,581 and $24,861,982, respectively) $2,327,621,014 $1,863,869,920
==================================
</TABLE>
See accompanying Notes to Financial Statements.
21 OPPENHEIMER GROWTH FUND
<PAGE> 22
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
AUG. 31, JUNE 30,
CLASS A 1999 1998 1997 1996(1) 1996 1995
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $31.54 $40.42 $33.69 $33.43 $30.80 $26.65
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .10 .73 .62 .08 .44 .36
Net realized and unrealized gain (loss) 11.69 (5.05) 10.37 .18 5.70 6.83
-------------------------------------------------------------------
Total income (loss) from
investment operations 11.79 (4.32) 10.99 .26 6.14 7.19
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.48) (.66) (.49) -- (.41) (.24)
Distributions from net realized gain (3.08) (3.90) (3.77) -- (3.10) (2.80)
-------------------------------------------------------------------
Total dividends and distributions
to shareholders (3.56) (4.56) (4.26) -- (3.51) (3.04)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.77 $31.54 $40.42 $33.69 $33.43 $30.80
===================================================================
=================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 39.39% (11.62)% 35.03% 0.78% 21.00% 29.45%
=================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,730 $1,357 $1,591 $1,128 $1,120 $ 861
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,620 $1,640 $1,369 $1,101 $1,018 $ 727
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.24% 1.90% 1.74% 1.50% 1.43% 1.31%
Expenses 1.05% 1.00%(4) 1.01%(4) 1.03%(4) 1.06%(4) 1.05%(4)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 106% 34% 25% 6% 38% 35%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999 were $2,172,876,594 and $1,955,034,523,
respectively.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER GROWTH FUND
<PAGE> 23
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
AUG. 31, JUNE 30,
CLASS B 1999 1998 1997 1996(1) 1996 1995
==================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 30.54 $ 39.34 $ 32.94 $ 32.74 $30.36 $ 26.44
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.20) .43 .36 .04 .23 .20
Net realized and unrealized gain (loss) 11.32 (4.89) 10.08 .16 5.53 6.65
------------------------------------------------------------------
Total income (loss) from
investment operations 11.12 (4.46) 10.44 .20 5.76 6.85
- ------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.21) (.44) (.27) -- (.28) (.13)
Distributions from net realized gain (3.08) (3.90) (3.77) -- (3.10) (2.80)
------------------------------------------------------------------
Total dividends and distributions
to shareholders (3.29) (4.34) (4.04) -- (3.38) (2.93)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $38.37 $30.54 $39.34 $32.94 $32.74 $30.36
==================================================================
==================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 38.27% (12.32)% 33.93% 0.61% 19.95% 28.22%
==================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $446 $330 $284 $137 $129 $43
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $410 $354 $204 $131 $91 $19
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.58)% 1.08% 0.92% 0.61% 0.60% 0.44%
Expenses 1.86% 1.81%(4) 1.84%(4) 1.92%(4) 1.89%(4) 2.02%(4)
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 106% 34% 25% 6% 38% 35%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999 were $2,172,876,594 and $1,955,034,523,
respectively.
See accompanying Notes to Financial Statements.
23 OPPENHEIMER GROWTH FUND
<PAGE> 24
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR PERIOD
ENDED ENDED
AUG. 31, JUNE 30,
CLASS C 1999 1998 1997 1996(1) 1996(2)
=====================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 30.93 $ 39.87 $ 33.42 $ 33.22 $ 33.44
- -----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.20) .46 .42 .02 .40
Net realized and unrealized gain (loss) 11.47 (4.99) 10.17 .18 2.88
---------------------------------------------------------
Total income (loss) from
investment operations 11.27 (4.53) 10.59 .20 3.28
- -----------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.21) (.51) (.37) -- (.40)
Distributions from net realized gain (3.07) (3.90) (3.77) -- (3.10)
---------------------------------------------------------
Total dividends and distributions
to shareholders (3.28) (4.41) (4.14) -- (3.50)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $38.92 $30.93 $39.87 $33.42 $33.22
=========================================================
=====================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 38.28% (12.33)% 33.93% 0.60% 10.07%
=====================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $58 $44 $28 $5 $4
- -----------------------------------------------------------------------------------------------------
Average net assets (in millions) $54 $44 $14 $4 $2
- -----------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.58)% 1.06% 0.95% 0.44% 0.65%
Expenses 1.86% 1.81%(4) 1.84%(4) 2.10%(4) 1.81%(4)
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 106% 34% 25% 6% 38%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $2,172,876,594 and $1,955,034,523,
respectively.
6. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
See accompanying Notes to Financial Statements.
24 OPPENHEIMER GROWTH FUND
<PAGE> 25
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
AUG. 31, JUNE 30,
CLASS Y 1999 1998 1997 1996(1) 1996 1996
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 31.54 $ 40.43 $ 33.69 $ 33.42 $ 30.80 $ 26.64
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .18 .87 .66 .08 .46 .30
Net realized and unrealized gain (loss) 11.69 (5.09) 10.42 .19 5.70 6.92
-------------------------------------------------------------------------
Total income (loss) from
investment operations 11.87 (4.22) 11.08 .27 6.16 7.22
- -----------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.58) (.77) (.57) -- (.44) (.26)
Distributions from net realized gain (3.07) (3.90) (3.77) -- (3.10) (2.80)
-------------------------------------------------------------------------
Total dividends and distributions
to shareholders (3.65) (4.67) (4.34) -- (3.54) (3.06)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.76 $31.54 $40.43 $33.69 $33.42 $30.80
=========================================================================
=======================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 39.74% (11.38)% 35.36% 0.81% 21.10% 29.59%
=======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 94 $132 $97 $18 $16 $3
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $117 $135 $63 $17 $ 9 $1
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.65% 2.16% 2.00% 1.67% 1.56% 1.54%
Expenses 0.80% 0.71%(4) 0.77%(4) 0.87%(4) 0.94%(4) 1.04%(4)
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 106% 34% 25% 6% 38% 35%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $2,172,876,594 and $1,955,034,523,
respectively.
6. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
See accompanying Notes to Financial Statements.
25 OPPENHEIMER GROWTH FUND
<PAGE> 26
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 on investments up to $1 million. Class B and
Class C shares may be subject to a contingent deferred sales charge (CDSC).
Class Y shares are sold to certain institutional investors without either a
front-end sales charge or a CDSC. 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.
- -------------------------------------------------------------------------------
SECURITIES 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. Foreign currency exchange contracts are valued based on
the closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
- -------------------------------------------------------------------------------
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.
26 OPPENHEIMER GROWTH FUND
<PAGE> 27
The effect of changes in foreign currency exchange rates on investments is
separately identified from the 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.
- -------------------------------------------------------------------------------
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' COMPENSATION. 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, 1999, a provision of $2,389 was made for the Fund's projected
benefit obligations and payments of $11,971 were made to retired Trustees,
resulting in an accumulated liability of $239,068 as of August 31, 1999.
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 compensation 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 Trustees 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.
- -------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
27 OPPENHEIMER GROWTH FUND
<PAGE> 28
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. The character of 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, 1999, amounts have been reclassified to reflect a
decrease in undistributed net investment income of $26,537. Accumulated net
realized gain on investments was increased by the same amount.
- -------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- -------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable 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.
28 OPPENHEIMER GROWTH FUND
<PAGE> 29
===============================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1999 YEAR ENDED AUGUST 31, 1998
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 5,752,317 $ 212,292,610 7,116,243 $ 273,834,013
Dividends and/or distributions
reinvested 4,324,566 145,910,899 5,167,731 177,822,050
Redeemed (9,596,795) (352,377,492) (8,622,642) (325,351,474)
--------------------------------------------------------------
Net increase 480,088 $ 5,826,017 3,661,332 $ 126,304,589
==============================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 3,361,784 $ 119,411,368 4,830,243 $ 179,390,806
Dividends and/or distributions
reinvested 1,063,591 34,821,935 1,028,206 34,455,190
Redeemed (3,631,651) (129,309,008) (2,261,854) (82,873,544)
--------------------------------------------------------------
Net increase 793,724 $ 24,924,295 3,596,595 $ 130,972,452
==============================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 502,970 $ 18,124,421 920,879 $ 34,571,489
Dividends and/or distributions
reinvested 134,465 4,465,559 118,209 4,012,030
Redeemed (582,721) (20,939,132) (310,357) (11,499,870)
--------------------------------------------------------------
Net increase 54,714 $ 1,650,848 728,731 $ 27,083,649
==============================================================
- ------------------------------------------------------------------------------------------------
CLASS Y
Sold 1,359,263 $ 50,267,513 2,414,934 $ 89,265,515
Dividends and/or distributions
reinvested 436,009 14,680,437 361,268 12,409,557
Redeemed (3,621,703) (132,225,073) (978,523) (36,921,017)
--------------------------------------------------------------
Net increase (decrease) (1,826,431) $ (67,277,123) 1,797,679 $ 64,754,055
==============================================================
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of August 31, 1999, net unrealized appreciation on securities of
$649,111,911 was composed of gross appreciation of $684,996,145, and gross
depreciation of $35,884,234.
29 OPPENHEIMER GROWTH FUND
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS Continued
- -------------------------------------------------------------------------------
===============================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. 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 of the Fund, 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 Fund's
management fee for the year ended August 31, 1999 was 0.63% of average net
assets for each class of shares.
- -------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund and for
other Oppenheimer funds. OFS's total costs of providing such services are
allocated ratably to these funds.
- -------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale
of shares or on the redemption of shares is shown in the table below for the
period indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 31, 1999 $2,645,481 $842,368 $169,949 $2,627,603 $136,923
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
August 31, 1999 $2,038 $991,904 $19,680
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
30 OPPENHEIMER GROWTH FUND
<PAGE> 31
- -------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements
to the Distributor at a rate of up to 0.25% of average annual net assets of
Class A shares. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the fiscal year ended August 31, 1999,
payments under the Class A Plan totaled $3,033,217, all of which was paid by
the Distributor to recipients. That included $155,852 paid to an affiliate of
the Distributor's parent company. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
- -------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan,
service fees and distribution fees are computed on the average of the net asset
value of shares in the respective class, determined as of the close of each
regular business day during the period. The Class B and Class C plans allow the
Distributor to be reimbursed for its services and costs in distributing Class B
and Class C and servicing accounts.
The Distributor retains the asset-based sales charge on Class B shares.
The Distributor retains the asset-based sales charge on Class C shares during
the first year the shares are outstanding. The asset-based sales charges on
Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and from the Fund under the plans. If
either the Class B or the Class C plan is terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the asset-based sales
charge to the Distributor for distributing shares before the plan was
terminated. The plans allow for the carryforward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended August 31, 1999
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $4,093,686 $3,318,827 $9,757,363 2.19%
Class C Plan 534,637 287,889 525,346 0.91
</TABLE>
31 OPPENHEIMER GROWTH FUND
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS Continued
- -------------------------------------------------------------------------------
===============================================================================
5. FOREIGN CURRENCY CONTRACTS
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter
into foreign currency exchange contracts for operational purposes and to seek
to protect against adverse exchange rate fluctuation. Risks to the Fund include
the potential inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided
by a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
forward transaction. Realized gains and losses are reported with all other
foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of
Investments where applicable.
===============================================================================
6. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to protect against changes in interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund may recognize a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include
the possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value of
the underlying securities.
32 OPPENHEIMER GROWTH FUND
<PAGE> 33
===============================================================================
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,
1999.
33 OPPENHEIMER GROWTH FUND
<PAGE> 34
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
===============================================================================
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER GROWTH FUND:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Growth Fund as of August 31, 1999,
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 three-year
period then ended, the two-month period ended August 31, 1996 and each of the
years in the two-year period ended June 30, 1996. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1999, 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, 1999, 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 three-year period then ended, the two-month period
ended August 31, 1996 and each of the years in the two-year period ended June
30, 1996, in conformity with generally accepted accounting principles.
KPMG LLP
Denver, Colorado
September 22, 1999
34 OPPENHEIMER GROWTH FUND
<PAGE> 35
FEDERAL INCOME TAX INFORMATION Unaudited
- -------------------------------------------------------------------------------
===============================================================================
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $3.5563, $3.2902, $3.2838 and $3.6539 per share were
paid to Class A, Class B, Class C and Class Y shareholders, respectively, on
December 18, 1998, of which $3.0511 was designated as a "capital gain
distribution" for federal income tax purposes. Whether received in stock or in
cash, the capital gain distribution should be treated by shareholders as a gain
from the sale of capital assets held for more than one year (long-term capital
gains).
Dividends paid by the Fund during the fiscal year ended August 31, 1999
which are not designated as capital gain distributions should be multiplied by
100% 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.
35 OPPENHEIMER GROWTH FUND
<PAGE> 36
OPPENHEIMER GROWTH FUND
- -------------------------------------------------------------------------------
<TABLE>
===============================================================================
<S> <C>
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
Phillip A. Griffiths, 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
Bruce L. Bartlett, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
===============================================================================
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 LLP
===============================================================================
LEGAL COUNSEL Mayer, Brown & Platt
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 THE POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.
</TABLE>
36 OPPENHEIMER GROWTH FUND
<PAGE> 37
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------
<TABLE>
=====================================================================================================
<S> <C> <C>
GLOBAL EQUITY
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
=====================================================================================================
EQUITY
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Specialty
Real Asset Fund
Gold & Special Minerals Fund
=====================================================================================================
FIXED INCOME
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Florida Municipal Fund(3)
High Yield Fund New Jersey Municipal Fund(3)
Champion Income Fund New York Municipal Fund(3)
Strategic Income Fund Pennsylvania Municipal Fund(3)
Bond Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
=====================================================================================================
MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income
Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
37 OPPENHEIMER GROWTH FUND
<PAGE> 38
INFORMATION AND SERVICES
- -------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us
whenever you need assistance. So call us today, or visit our website--we're
here to help.
INTERNET
24-hr access to account information and transactions
WWW.OPPENHEIMERFUNDS.COM
- --------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- --------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
- --------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy
and issues that may affect your investments
1.800.835.3104
- --------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
RA0270.001.0899 October 29, 1999
[OPPENHEIMERFUNDS(R) LOGO]
Distributor, Inc.
