-----------------------------------
Semiannual Report February 28, 1999
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OPPENHEIMER
Growth Fund
[LOGO]
[LOGO]
Oppenheimer Funds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Managers
9 Financial
Statements
30 Officers and
Trustees
32 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
O The broad market pullback of September and October, 1998 hurt performance, but
losses were limited by the Fund's defensive allocation of assets.
O We repositioned the Fund to focus on higher growth equities in the technology,
healthcare and consumer cyclical sectors.
Cumulative Total Returns
For the 6-Month Period Ended 2/28/99
- -------------------------------
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
24.39% 17.23%
- -------------------------------
- -------------------------------
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
23.89% 18.89%
- -------------------------------
- -------------------------------
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
23.89% 22.89%
- -------------------------------
- -------------------------------
Class Y
Without With
Sales Chg.(1) Sales Chg.(2)
24.53% 24.53%
- -------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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 the stock market can be volatile, 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. 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%. Class Y shares are
offered only to certain institutional investors under special agreement with the
Distributor. Class B and C shares are subject to an annual 0.75% asset-based
sales charge. An explanation of the different performance calculations is in the
Fund's prospectus.
2 Oppenheimer Growth Fund
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[PHOTO OMITTED]
Bridget A. Macaskill
President
Oppenheimer
Growth Fund
Dear shareholder,
- --------------------------------------------------------------------------------
Contrary to what many analysts had expected, the U.S. economy appears to have
picked up steam over the past few months. The fourth quarter of 1998 posted the
fastest rate of economic growth in two years, and early indications suggest that
the first quarter of 1999 may follow suit.
With respect to the U.S. bond market, stronger-than-expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of
longer-term taxable bonds have risen from their October 1998 lows, when
investors had bid up prices during the global "flight to quality." At the same
time, tax exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat. What's more, the disparity
in valuations between large companies, which have led the market's advance, and
smaller ones, which have lagged, has become historically wide.
What do these observations mean for your investments? In our view,
actively managed portfolios that are closely monitored by expert money managers
are likely to provide better returns than passive index investing in 1999.
That's because selectivity is expected to be more critical to performance than
it has been over the past few years. In a potentially overvalued stock market
and rising interest-rate environment, the ability to identify the most promising
securities could become paramount.
Even though many equity investors may be tempted to jump aboard the
technology bandwagon, we suggest a more prudent course: broad diversification
beyond any single asset class, industry, capitalization range or geographic
region. We believe that the risks of this investment environment require
consideration of a broad range of investments and markets, including bonds. That
way, if one market experiences setbacks, one or more of the others may help
cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
- ---------------------------
Bridget A. Macaskill
March 19, 1999
3 Oppenheimer Growth Fund
<PAGE>
- -----------------------
"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."
An interview with your Fund's managers
- --------------------------------------------------------------------------------
How did Oppenheimer Growth Fund perform during the six-month period that ended
February 28, 1999?
September, October and November of 1998 marked a particularly challenging period
for the Fund. Performance began to improve in December as we refocused the
Fund's strategy to emphasize sustainable revenue and earnings growth.
What made the first few months of the period so challenging?
The second half of 1998 was a trying period for many investment strategies.
Widespread economic difficulties in emerging markets throughout the world
sparked fears of a global economic slowdown. Most equities suffered as a result,
with the steepest declines in September and early October. 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, and our significant holdings in energy and transportation, which
performed particularly poorly.
Investors' fears eased in mid-October 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 health-care sectors
prevented us from participating fully in the recovery that followed.
What actions did you take to reinvigorate performance?
In December we began to reposition the Fund for stronger growth under the
guidance of Bruce Bartlett, one of OppenheimerFunds' growth team leaders.
Although our investment strategy remained highly disciplined, our emphasis
turned from the price of growth to the sustainability and rate of growth.
4 Oppenheimer Growth Fund
<PAGE>
[PHOTO OMITTED]
Portfolio Management
Team (l to r)
Jim Turner
Bruce Bartlett
(Portfolio Manager)
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.
In January, Bruce officially stepped in as the Fund's portfolio manager.
By then, 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, selecting
stocks one at a time after thoroughly evaluating each company's fundamentals.
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 has been to position the
Fund in the areas of technology that we anticipate will perform the best over
the long term. We like hardware manufacturers with cost and profitability
advantages over their competitors. For example, Dell Computer Corp.'s direct
sales business model has yet to be successfully replicated. We also favor
companies with a leading position in high growth areas. Examples include EMC
Corp., one of the foremost manufacturers of high-capacity devices for the
storage and retrieval of vast amounts of data,
5 Oppenheimer Growth Fund
<PAGE>
Avg Annual Total Returns
For the Periods Ended 3/31/99(1)
Class A
1 year 5 year 10 year
- ------------------------------
0.88% 17.93% 15.37%
- ------------------------------
Class B Since
1 year 5 year Inception
- ------------------------------
1.34% 18.12% 16.38%
- ------------------------------
Class C Since
1 year 5 year Inception
- ------------------------------
5.21% N/A 16.60%
- ------------------------------
Class Y Since
1 year 5 year Inception
- ------------------------------
7.33% N/A 19.39%
- ------------------------------
An interview with your Fund's managers
- --------------------------------------------------------------------------------
and General Instrument Corp. which makes leading-edge equipment to deliver more
information to consumers over cable systems.
In the healthcare sector, we've increased our holdings in the areas of
pharmaceuticals and pharmaceutical distribution, biotechnology, and medical
products. These industries stand to benefit from the gradual aging of America's
population and rapid innovations in the development of products to extend and
improve life. Our largest holdings include Cardinal Health Inc., the leading
wholesale drug distribution company; Medtronic Inc., the leading producer of
pacemakers and other cardiovascular equipment; and pharmaceutical giant
Bristol-Myers Squibb Co.
Consumer cyclicals is the third key area in which the Fund has expanded
its holdings. With inflation and interest rates remaining low, and consumer
confidence and wage growth high, the environment remains healthy for consumer
spending. Since more people work, entertain and relax at home, we're focusing on
high-growth companies that stand to benefit from increased spending on the home
environment. We have invested in companies such as Best Buy Co., Inc., a
specialty consumer electronics retailer, and Freddie Mac, which is a prime
beneficiary of today's strong demand for housing and home financing.
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 3/15/73. The Fund's maximum
sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower prior to 4/1/91. Class B returns include the
applicable contingent deferred sales charge of 5% (1-year) and 1% (since
inception on 8/17/93). Class C returns include the contingent deferred sales
charge of 1% for the one-year period. Class C shares have an inception date of
11/1/95. Class Y shares are offered only to certain institutional investors
under special agreement with the Distributor. Class B and C shares are subject
to a 0.75% annual asset-based sales charge. An explanation of the different
performance calculations is in the Fund's prospectus.
6 Oppenheimer Growth Fund
<PAGE>
Portfolio Allocation(2)
[The following information was depicted as a pie chart in the printed material]
Stocks 80.6%
Cash Equivalents 19.4
What is your outlook for the future?
We believe that, with inflation and interest rates likely to remain in check,
the outlook for growth investing remains favorable. In particular, companies
that can sustain earnings growth are likely to outperform. Our investment
approach is designed to identify such fast-growing companies through
disciplined, company-by-company analysis. That's what makes Oppenheimer Growth
Fund part of The Right Way to Invest.
Top 5 Industries(2)
- --------------------------------------------------------------------------------
Computer Hardware 12.3%
- --------------------------------------------------------------------------------
Retail: Specialty 9.1
- --------------------------------------------------------------------------------
Diversified Financial 7.7
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Electronics 6.1
- --------------------------------------------------------------------------------
Food and Drug Retailers 5.1
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Top 10 Stock Holdings(2)
- --------------------------------------------------------------------------------
Tyco International Ltd. 3.9%
- --------------------------------------------------------------------------------
EMC Corp. 3.2
- --------------------------------------------------------------------------------
Cardinal Health, Inc. 2.7
- --------------------------------------------------------------------------------
Best Buy Co., Inc. 2.7
- --------------------------------------------------------------------------------
CVS Corp. 2.5
- --------------------------------------------------------------------------------
Schwab (Charles) Corp. 2.1
- --------------------------------------------------------------------------------
Freddie Mac 1.9
- --------------------------------------------------------------------------------
Dell Computer Corp. 1.7
- --------------------------------------------------------------------------------
Compaq Computer Corp. 1.7
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1.6
- --------------------------------------------------------------------------------
2. Portfolio is subject to change. Percentages are as of February 28, 1999, and
are based on total market value of investments.
7 Oppenheimer Growth Fund
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Financials
================================================================================
[GRAPHIC OMITTED]
8 Oppenheimer Growth Fund
<PAGE>
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Statement of Investments February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--80.0%
- --------------------------------------------------------------------------------
Capital Goods--6.0%
- --------------------------------------------------------------------------------
Electrical Equipment--1.0%
Solectron Corp.(1) 310,000 $ 13,853,125
- --------------------------------------------------------------------------------
SPX Corp.(1) 135,000 7,711,875
------------
21,565,000
- --------------------------------------------------------------------------------
Manufacturing--5.0%
Navistar International Corp.(1) 555,000 23,865,000
- --------------------------------------------------------------------------------
Tyco International Ltd. (New) 1,125,561 83,783,947
------------
107,648,947
- --------------------------------------------------------------------------------
Consumer Cyclicals--11.5%
- --------------------------------------------------------------------------------
Media--1.0%
Infinity Broadcasting Corp., Cl. A(1) 863,400 20,505,750
- --------------------------------------------------------------------------------
Retail: General--1.4%
Kohl's Corp.(1) 100,000 6,900,000
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 280,000 24,185,000
31,085,000
- --------------------------------------------------------------------------------
Retail: Specialty--9.1%
Abercrombie & Fitch Co., Cl. A(1) 190,000 14,440,000
- --------------------------------------------------------------------------------
Bed Bath & Beyond, Inc.(1) 860,000 25,316,250
- --------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 625,000 57,968,750
- --------------------------------------------------------------------------------
Home Depot, Inc. 515,000 30,739,062
- --------------------------------------------------------------------------------
Intimate Brands, Inc., Cl. A 495,000 19,459,687
- --------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 200,000 7,200,000
- --------------------------------------------------------------------------------
Lowe's Cos., Inc. 32,500 1,927,656
- --------------------------------------------------------------------------------
Ross Stores, Inc. 525,000 24,018,750
- --------------------------------------------------------------------------------
Tiffany & Co. 255,000 14,582,812
------------
195,652,967
- --------------------------------------------------------------------------------
Consumer Staples--9.2%
- --------------------------------------------------------------------------------
Entertainment--2.1%
Brinker International, Inc.(1) 775,000 22,426,562
- --------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1) 350,000 15,356,250
- --------------------------------------------------------------------------------
Starbucks Corp.(1) 150,000 7,931,250
------------
45,714,062
9 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited)(Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Food--0.1%
Sara Lee Corp. 50,000 $ 1,359,375
- --------------------------------------------------------------------------------
Food & Drug Retailers--5.1%
Bergen Brunswig Corp., Cl. A 252,000 6,158,250
- --------------------------------------------------------------------------------
CVS Corp. 1,020,000 54,060,000
- --------------------------------------------------------------------------------
Safeway, Inc.(1) 410,000 23,677,500
- --------------------------------------------------------------------------------
U.S. Foodservice, Inc.(1) 528,200 24,528,287
-----------
108,424,037
- --------------------------------------------------------------------------------
Household Goods--1.2%
Dial Corp. (The) 920,000 26,852,500
- --------------------------------------------------------------------------------
Tobacco--0.7%
Philip Morris Cos., Inc. 365,000 14,280,625
- --------------------------------------------------------------------------------
Energy--2.3%
- --------------------------------------------------------------------------------
Oil: Domestic--2.3%
Exxon Corp. 310,000 20,634,375
- --------------------------------------------------------------------------------
Mobil Corp. 345,000 28,699,687
-----------
49,334,062
- --------------------------------------------------------------------------------
Financial--13.8%
- --------------------------------------------------------------------------------
Banks--4.0%
AmSouth Bancorp 400,000 18,800,000
- --------------------------------------------------------------------------------
Fifth Third Bancorp 400,000 26,425,000
- --------------------------------------------------------------------------------
First Tennessee National Corp. 415,000 15,795,937
- --------------------------------------------------------------------------------
Firstar Corp. 308,700 25,853,625
-----------
86,874,562
- --------------------------------------------------------------------------------
Diversified Financial--7.7%
Citigroup, Inc. 235,000 13,806,250
- --------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 113,600 4,302,600
- --------------------------------------------------------------------------------
Fannie Mae 355,000 24,850,000
- --------------------------------------------------------------------------------
Freddie Mac 680,000 40,035,000
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 100,000 7,675,000
- --------------------------------------------------------------------------------
Providian Financial Corp.(2) 300,800 30,719,200
- --------------------------------------------------------------------------------
Schwab (Charles) Corp. 600,000 44,737,500
-----------
166,125,550
10 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Insurance--2.1%
AFLAC, Inc. 367,000 $ 16,193,875
- --------------------------------------------------------------------------------
American International Group, Inc. 260,775 29,712,052
-----------
45,905,927
- --------------------------------------------------------------------------------
Healthcare--9.9%
- --------------------------------------------------------------------------------
Healthcare/Drugs--5.0%
Biogen, Inc.(1) 150,000 14,418,750
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 275,000 34,632,812
- --------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. 320,000 17,440,000
- --------------------------------------------------------------------------------
Schering-Plough Corp. 305,000 17,060,938
- --------------------------------------------------------------------------------
Warner Lambert Co. 330,000 22,790,625
-----------
106,343,125
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--4.9%
Cardinal Health, Inc. 805,000 58,110,938
- --------------------------------------------------------------------------------
Guidant Corp. 100,000 5,700,000
- --------------------------------------------------------------------------------
McKesson HBOC, Inc. 77,700 5,283,600
- --------------------------------------------------------------------------------
Medtronic, Inc. 434,478 30,685,009
- --------------------------------------------------------------------------------
Safeskin Corp.(1) 245,000 5,696,250
-----------
105,475,797
- --------------------------------------------------------------------------------
Technology--23.8%
- --------------------------------------------------------------------------------
Computer Hardware--12.3%
Cisco Systems, Inc.(1) 150,000 14,671,875
- --------------------------------------------------------------------------------
Compaq Computer Corp. 1,005,000 35,426,250
- --------------------------------------------------------------------------------
Data General Corp.(1) 590,000 8,149,375
- --------------------------------------------------------------------------------
Dell Computer Corp.(1) 465,000 37,258,125
- --------------------------------------------------------------------------------
EMC Corp.(1) 680,000 69,615,000
- --------------------------------------------------------------------------------
Gateway 2000, Inc.(1) 430,000 31,255,625
- --------------------------------------------------------------------------------
International Business Machines Corp. 90,000 15,300,000
- --------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 220,000 22,701,250
- --------------------------------------------------------------------------------
Micron Electronics, Inc.(1) 750,000 10,781,250
- --------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 615,000 17,796,563
-----------
262,955,313
11 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited)(Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Computer Software/Services--4.2%
America Online, Inc.(1) 250,000 $ 22,234,375
- --------------------------------------------------------------------------------
Citrix Systems, Inc.(1) 100,000 7,712,500
- --------------------------------------------------------------------------------
Compuware Corp.(1) 330,000 18,459,375
- --------------------------------------------------------------------------------
Microsoft Corp.(2) 180,000 27,022,500
- --------------------------------------------------------------------------------
Symantec Corp.(1) 405,000 7,315,313
- --------------------------------------------------------------------------------
Unisys Corp.(1) 250,000 7,453,125
-----------
90,197,188
- --------------------------------------------------------------------------------
Communications Equipment--1.2%
General Instrument Corp.(1) 910,000 26,617,500
- --------------------------------------------------------------------------------
Electronics--6.1%
Intel Corp.(2) 175,000 20,989,063
- --------------------------------------------------------------------------------
JDS Fitel, Inc.(1) 550,000 23,500,381
- --------------------------------------------------------------------------------
Level One Communications, Inc.(1) 85,000 2,847,500
- --------------------------------------------------------------------------------
SCI Systems, Inc.(1) 590,000 18,253,125
- --------------------------------------------------------------------------------
Uniphase Corp.(1) 175,000 15,421,875
- --------------------------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 455,000 20,901,563
- --------------------------------------------------------------------------------
Waters Corp.(1) 300,000 27,918,750
-----------
129,832,257
- --------------------------------------------------------------------------------
Telecommunications--3.5%
Telecommunications/Technology--3.5%
AT&T Corp. 370,00 30,386,250
- --------------------------------------------------------------------------------
MCI WorldCom, Inc.(1) 195,000 16,087,500
- --------------------------------------------------------------------------------
Qwest Communications International, Inc.(1) 450,000 27,646,875
-------------
74,120,625
-------------
Total Common Stocks (Cost $1,251,895,133) 1,716,870,169
================================================================================
Preferred Stocks--0.6%
- --------------------------------------------------------------------------------
Microsoft Corp., $2.196 Cum. Cv., Series A,
Non-Vtg. (Cost $11,739,433) 119,800 11,747,888
12 Oppenheimer Growth Fund
<PAGE>
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- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Short-Term Notes--5.6%(3)
- --------------------------------------------------------------------------------
CIT Group Holdings, Inc., 4.82%, 3/8/99 $ 25,000,000 $ 24,976,570
- --------------------------------------------------------------------------------
Household Finance Corp., 4.83%, 3/9/99 50,000,000 49,946,333
- --------------------------------------------------------------------------------
Prudential Funding Corp., 4.84%, 3/30/99 25,000,000 24,902,528
- --------------------------------------------------------------------------------
Xerox Capital (Europe) plc, 4.82%, 3/12/99 20,000,000 19,970,544
------------
Total Short-Term Notes (Cost $119,795,975) 119,795,975
================================================================================
Repurchase Agreements--13.8%
- --------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 4.73%,
dated 2/26/99, to be repurchased at $297,017,028
on 3/1/99, collateralized by U.S. Treasury Nts.,
4.625%-6.25%, 11/30/00-2/15/06, with a value of
$81,372,609, U.S. Treasury Bonds, 6.375%-11.25%,
2/15/15-8/15/27, with a value of $150,103,547,
and U.S. Treasury Bills, 8/26/99, with a value of
$72,526,732 (Cost $296,900,000) 296,900,000 296,900,000
- --------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,680,330,541) 100.0% 2,145,314,032
- --------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.0) (34,609)
----- --------------
Net Assets 100.0% $2,145,279,423
===== ==============
1. Non-income producing security.
2. Securities with an aggregate market value of $188,685 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements. 3. 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.
13 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities February 28, 1999 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value (including repurchase agreement of $296,900,000)
(cost $1,680,330,541)--see accompanying statement $2,145,314,032
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 3,459,078
Shares of beneficial interest sold 2,604,884
Interest and dividends 722,247
Other 242,206
-------------
Total assets 2,152,342,447
================================================================================
Liabilities
Bank overdraft 514,712
- --------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 2,532,276
Investments purchased 1,885,000
Daily variation on futures contracts--Note 6 869,700
Distribution and service plan fees 675,218
Shareholder reports 300,126
Trustees' compensation--Note 1 252,449
Custodian fees 22,922
Other 10,621
Total liabilities 7,063,024
================================================================================
Net Assets $2,145,279,423
==============
================================================================================
Composition of Net Assets
Paid-in capital $1,620,480,975
- --------------------------------------------------------------------------------
Undistributed net investment income 6,958,241
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 60,764,161
================================================================================
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 457,076,046
--------------
Net assets $2,145,279,423
==============
14 Oppenheimer Growth Fund
<PAGE>
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- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $1,602,559,955 and 45,155,811 shares of beneficial
interest outstanding) $35.49
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $37.66
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per share
(based on net assets of $406,184,276 and 11,815,584 shares of
beneficial interest outstanding) $34.38
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $53,165,859 and 1,524,490 shares of beneficial interest
outstanding) $34.87
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $83,369,333 and 2,353,377 shares of
beneficial interest outstanding) $35.43
See accompanying Notes to Financial Statements.
15 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Investment Income
Interest $ 14,557,489
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $25,758) 5,296,090
Total income 19,853,579
================================================================================
Expenses
Management fees--Note 4 6,678,195
- --------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,421,352
Class B 1,916,304
Class C 253,345
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 1,298,004
Class B 328,689
Class C 43,018
Class Y 80,190
- --------------------------------------------------------------------------------
Shareholder reports 400,687
- --------------------------------------------------------------------------------
Trustees' compensation--Note 1 38,232
- --------------------------------------------------------------------------------
Custodian fees and expenses 37,558
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 34,060
- --------------------------------------------------------------------------------
Insurance expenses 13,702
- --------------------------------------------------------------------------------
Other 79,358
-----------
Total expenses 12,622,694
Less expenses paid indirectly--Note 4 (1,028)
-----------
Net expenses 12,621,666
- --------------------------------------------------------------------------------
Net Investment Income 7,231,913
================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 61,085,865
Closing of futures contracts (10,098)
Foreign currency transactions (1,645)
Net realized gain 61,074,122
- --------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 383,073,546
Translation of assets and liabilities denominated
in foreign currencies (232,938)
Net change 382,840,608
Net realized and unrealized gain 443,914,730
================================================================================
Net Increase in Net Assets Resulting from Operations $451,146,643
============
See accompanying Notes to Financial Statements.
16 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
Six Months Ended
February 28, 1998 Year Ended
(Unaudited) August 31, 1998
================================================================================
Operations
Net investment income $ 7,231,913 $ 38,348,822
- --------------------------------------------------------------------------------
Net realized gain 61,074,122 204,414,736
- --------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation 382,840,608 (491,820,086)
--------------- ---------------
Net increase (decrease) in net assets
resulting from operations 451,146,643 (249,056,528)
================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (20,205,774) (26,717,017)
Class B (2,324,941) (3,632,645)
Class C (291,219) (482,040)
Class Y (2,313,720) (2,049,626)
- --------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (130,048,996) (156,964,533)
Class B (33,738,768) (32,302,581)
Class C (4,358,028) (3,658,326)
Class Y (12,366,717) (10,359,931)
================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 68,133,255 126,304,589
Class B 32,145,466 130,972,452
Class C 2,842,536 27,083,649
Class Y (67,210,234) 64,754,055
================================================================================
Net Assets
Total increase (decrease) 281,409,503 (136,108,482)
- --------------------------------------------------------------------------------
Beginning of period 1,863,869,920 1,999,978,402
--------------- ---------------
End of period (including undistributed net
investment income of $6,958,241 and
$24,861,982, respectively) $ 2,145,279,423 $ 1,863,869,920
=============== ===============
See accompanying Notes to Financial Statements
17 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------- ---------------------------
Six Months
Ended
February 28, Year Ended
1999 Year Ended August 31, June 30,
(Unaudited) 1998 1997 1996(2) 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) .15 .73 .62 .08 .44 .36
Net realized and unrealized
gain (loss) 7.36 (5.05) 10.37 .18 5.70 6.83
----------- ----------- ----------- ----------- ----------- -----------
Total income (loss) from investment
operations 7.51 (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 $ 35.49 $ 31.54 $ 40.42 $ 33.69 $ 33.43 $ 30.80
=========== =========== =========== =========== =========== ===========
===================================================================================================================================
Total Return, at Net Asset Value(5) 24.39% (11.62)% 35.03% 0.78% 21.00% 29.45%
===================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 1,602,560 $ 1,356,905 $ 1,590,927 $ 1,127,836 $ 1,120,046 $ 860,736
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,548,877 $ 1,640,181 $ 1,369,406 $ 1,101,233 $ 1,018,022 $ 727,102
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.84%(6) 1.90% 1.74% 1.50%(6) 1.43% 1.31%
Expenses(7) 1.04%(6) 1.00% 1.01% 1.03%(6) 1.06% 1.05%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 77% 34% 25% 6% 38% 35%
<CAPTION>
Year Ended
June 30,
1994 Class B
----------- -------------------------------------------------------------
Six Months
Ended
February 28,
1999 Year Ended August 31,
1994 (Unaudited) 1998 1997 1996(2)
======================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 27.34 $ 30.54 $ 39.34 $ 32.94 $ 32.74
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .16 .01 .43 .36 .04
Net realized and unrealized
gain (loss) (.05) 7.12 (4.89) 10.08 .16
----------- ----------- ----------- ----------- -----------
Total income (loss) from investment
operations .11 7.13 (4.46) 10.44 .20
- ----------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.16) (.21) (.44) (.27) --
Distributions from net realized gain (.64) (3.08) (3.90) (3.77) --
----------- ----------- ----------- ----------- -----------
Total dividends and distributions to
shareholders (.80) (3.29) (4.34) (4.04) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.65 $ 34.38 $ 30.54 $ 39.34 $ 32.94
=========== =========== =========== =========== ===========
======================================================================================================================
Total Return, at Net Asset Value(5) 0.27% 23.89% (12.32)% 33.93% 0.61%
======================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 656,934 $ 406,184 $ 330,442 $ 284,227 $ 137,437
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 720,765 $ 386,853 $ 353,574 $ 203,518 $ 131,142
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.56% 0.02%(6) 1.08% 0.92% 0.61%(6)
Expenses(7) 1.07% 1.86%(6) 1.81% 1.84% 1.92%(6)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 20% 77% 34% 25% 6%
<CAPTION>
Class B
-----------------------------------------
Year Ended June 30,
1996 1995 1994(4)
===================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 30.36 $ 26.44 $ 27.02
- -----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .23 .20 (.04)
Net realized and unrealized
gain (loss) 5.53 6.65 .21
----------- ----------- -----------
Total income (loss) from investment
operations 5.76 6.85 .17
- -----------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.28) (.13) (.11)
Distributions from net realized gain (3.10) (2.80) (.64)
----------- ----------- -----------
Total dividends and distributions to
shareholders (3.38) (2.93) (.75)
- -----------------------------------------------------------------------------------
Net asset value, end of period $ 32.74 $ 30.36 $ 26.44
=========== =========== ===========
===================================================================================
Total Return, at Net Asset Value(5) 19.95% 28.22% (0.20)%
===================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 129,484 $ 43,267 $ 8,747
- -----------------------------------------------------------------------------------
Average net assets (in thousands) $ 90,501 $ 18,722 $ 5,119
- -----------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.60% 0.44% (0.22)%(6)
Expenses(7) 1.89% 2.02% 1.98%(6)
- -----------------------------------------------------------------------------------
Portfolio turnover rate(8) 38% 35% 20%
</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 amounts calculated based on the weighted average number of shares
outstanding during the period.
5. 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.
6. Annualized.
7. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expense ratios have not been adjusted.
8. 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 February 28, 1999 were $1,335,873,447 and $1,247,072,184, respectively.
18-19 Oppenheimer Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Class C
----------------------------------------------------------- ------------
Six Months
Ended Period
February 28, Ended
1999 Year Ended August 31, June 30,
(Unaudited) 1998 1997 1996(2) 1996(3)
===============================================================================================================================
<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) .02 .46 .42 .02 .40
Net realized and unrealized
gain (loss) 7.21 (4.99) 10.17 .18 2.88
----------- ----------- ----------- ----------- -----------
Total income (loss) from investment
operations 7.23 (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 (3.08) (3.90) (3.77) -- (3.10)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions to
shareholders (3.29) (4.41) (4.14) -- (3.50)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.87 $ 30.93 $ 39.87 $ 33.42 $ 33.22
=========== =========== =========== =========== ===========
===============================================================================================================================
Total Return, at Net Asset Value(5) 23.89% (12.33)% 33.93 0.60% 10.07%
===============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 53,166 $ 44,377 $ 28,145 $ 5,034 $ 3,593
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 51,137 $ 43,817 $ 13,705 $ 4,105 $ 1,804
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.03%(6) 1.06% 0.95% 0.44%(6) 0.65%(6)
Expenses(7) 1.86%(6) 1.81% 1.84% 2.10%(6) 1.81%(6)
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 77% 34% 25% 6% 38%
<CAPTION>
Class Y
------------------------------------------------------------------
Six Months
Ended
February 28,
1999 Year Ended August 31,
(Unaudited) 1998 1997 1996(2)
==================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 31.54 $ 40.43 $ 33.69 $ 33.42
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .18 .87 .66 .08
Net realized and unrealized
gain (loss) 7.37 (5.09) 10.42 .19
----------- ----------- ----------- -----------
Total income (loss) from investment
operations 7.55 (4.22) 11.08 .27
- ------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.58) (.77) (.57) --
Distributions from net realized gain (3.08) (3.90) (3.77) --
----------- ----------- ----------- -----------
Total dividends and distributions to
shareholders (3.66) (4.67) (4.34) --
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.43 $ 31.54 $ 40.43 $ 33.69
=========== =========== =========== ===========
==================================================================================================================
Total Return, at Net Asset Value(5) 24.53% (11.38)% 35.36% 0.81%
==================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 83,369 $ 132,146 $ 96,679 $ 18,497
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 140,032 $ 135,098 $ 62,619 $ 16,792
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.10%(6) 2.16% 2.00% 1.67%(6)
Expenses(7) 0.82%(6) 0.71% 0.77% 0.87%(6)
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 77% 34% 25% 6%
<CAPTION>
Class Y
-----------------------------------------
Year Ended June 30,
1996 1995 1994(1)
=======================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 30.80 $ 26.64 $ 28.08
- ---------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .46 .30 .02
Net realized and unrealized
gain (loss) 5.70 6.92 (1.46)
----------- ----------- -----------
Total income (loss) from investment
operations 6.16 7.22 (1.44)
- --------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.44) (.26) --
Distributions from net realized gain (3.10) (2.80) --
----------- ----------- -----------
Total dividends and distributions to
shareholders (3.54) (3.06) --
- ---------------------------------------------------------------------------------------
Net asset value, end of period $ 33.42 $ 30.80 $ 26.64
=========== =========== ===========
=======================================================================================
Total Return, at Net Asset Value(5) 21.10% 29.59% (5.13)%
=======================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 16,110 $ 3,189 $ 9
- ---------------------------------------------------------------------------------------
Average net assets (in thousands) $ 9,384 $ 536 $ 10
- ---------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 1.56% 1.54% 1.09%(6)
Expenses(7) 0.94% 1.04% 1.25%(6)
- ---------------------------------------------------------------------------------------
Portfolio turnover rate(8) 38% 35% 20%
</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 amounts calculated based on
the weighted average number of shares outstanding during the period.
5. 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.
6. Annualized.
7. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expense ratios have not been adjusted.
8. 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 February 28, 1999 were $1,335,873,447 and $1,247,072,184, respectively.
See accompanying Notes to Financial Statements.
20-21 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
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. It
emphasizes investments in equity securities of mid-cap and large-cap companies.
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, except for purchases greater than $1 million.
Class A, 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 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.
22 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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.
- --------------------------------------------------------------------------------
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 six months ended
February 28, 1999, a provision of $4,537 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 $241,216 as of February 28, 1999.
23 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)(Continued)
- --------------------------------------------------------------------------------
================================================================================
1.Significant Accounting Policies (continued)
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
24 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1999 Year Ended August 31, 1998
----------------- --------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,501,270 $ (88,069,013) 7,116,243 $(273,834,013)
Dividends and
distributions reinvested 4,324,596 145,911,917 5,167,731 177,822,050
Redeemed (4,694,900) (165,847,675) (8,622,642) (325,351,474)
---------- ------------- ---------- -------------
Net increase 2,130,966 $ 68,133,255 3,661,332 $(126,304,589)
========== ============= ========== =============
- ----------------------------------------------------------------------------------------
Class B:
Sold 1,656,795 $ 56,377,144 4,830,243 $ 179,390,806
Dividends and
distributions reinvested 1,063,631 34,823,244 1,028,206 34,455,190
Redeemed (1,726,487) (59,054,922) (2,261,854) (82,873,544)
---------- ------------- ---------- -------------
Net increase 993,939 $ 32,145,466 3,596,595 $ 130,972,452
========== ============= ========== =============
- ----------------------------------------------------------------------------------------
Class C:
Sold 248,689 $ 8,591,874 920,879 $ 34,571,489
Dividends and
distributions reinvested 134,479 4,466,030 118,209 4,012,030
Redeemed (293,389) (10,215,368) (310,357) (11,499,870)
---------- ------------- ---------- -------------
Net increase 89,779 $ 2,842,536 728,731 $ 27,083,649
========== ============= ========== =============
- ----------------------------------------------------------------------------------------
Class Y:
Sold 585,429 $ 20,721,990 2,414,934 $ 89,265,515
Dividends and
distributions reinvested 436,009 14,680,437 361,268 12,409,557
Redeemed (2,857,231) (102,612,661) (978,523) (36,921,017)
---------- ------------- ---------- -------------
Net increase (decrease) (1,835,793) $ (67,210,234) 1,797,679 $ 64,754,055
========== ============= ========== =============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
As of February 28, 1999, net unrealized appreciation on investments of
$464,983,491 was composed of gross appreciation of $490,573,005, and gross
depreciation of $25,589,514.
25 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)(Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.75% 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
six months ended February 28, 1999, was 0.63% of average annual net assets for
each class of shares.
For the six months ended February 28, 1999, commissions (sales charges
paid by investors) on sales of Class A shares totaled $1,343,680, of which
$415,338 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary
of the Manager, as general distributor, and by an affiliated broker/dealer.
Sales charges advanced to broker/dealers by OFDI on sales of the Fund's Class A,
Class B and Class C shares totaled $75,374, $1,368,990 and $63,446,
respectively. Amounts paid to an affiliated broker/dealer for Class B and Class
C shares were $175,217 and $3,242, respectively. During the six months ended
February 28, 1999, OFDI received contingent deferred sales charges of $1,190,
$484,663 and $9,644, respectively, upon redemption of Class A, 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.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
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 six months ended February 28, 1999, OFDI paid $73,382 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
26 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 six months ended February 28, 1999, OFDI
paid $22,578 to an affiliated broker/dealer as reimbursement for Class B
personal service and maintenance expenses and retained $1,581,645 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 February 28, 1999,
OFDI had incurred excess distribution and servicing costs of $10,442,955 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 six months ended February 28,
1999, OFDI paid $3,541 to an affiliated broker/dealer as compensation for Class
C personal service and maintenance expenses and retained $177,495 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 February 28, 1999,
OFDI had incurred excess distribution and servicing costs of $453,869 for Class
C.
27 Oppenheimer Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)(Continued)
- --------------------------------------------------------------------------------
================================================================================
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.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement 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. Futures Contracts
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or 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 recognizes a realized gain or loss when the contract is
closed or expires.
28 Oppenheimer Growth Fund
<PAGE>
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================================================================================
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 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.
As of February 28, 1999, the Fund had outstanding futures contracts as follows:
Expiration Number of Valuation as of Unrealized
Contract Description Date Contracts February 28, 1999 Depreciation
- --------------------------------------------------------------------------------
Contracts to Purchase
Standard & Poor's 400
MidCap 3/99 552 $ 98,476,800 $7,001,121
Standard & Poor's 500 3/99 405 125,094,375 906,324
----------
$7,907,445
==========
================================================================================
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 six months ended
February 28, 1999.
29 Oppenheimer Growth Fund
<PAGE>
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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
Bruce Bartlett, 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 LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
of the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Growth Fund. This report must be preceded
or accompanied by a Prospectus of Oppenheimer Growth
Fund. For material information concerning the Fund, see
the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
30 Oppenheimer Growth Fund
<PAGE>
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Oppenheimer Funds Family
- --------------------------------------------------------------------------------
================================================================================
Real Asset Funds
- --------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
<TABLE>
<CAPTION>
================================================================================
Global Stock Funds
- --------------------------------------------------------------------------------
<S> <C> <C>
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
================================================================================
Stock Funds
- --------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Fund Quest Capital Value Fund Disciplined Value Fund
Quest Value Fund
================================================================================
Stock & Bond Funds
- --------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Multiple Strategies Fund
Income Fund(1) Quest Balanced Disciplined Allocation Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Capital Income Fund(2)
================================================================================
Taxable Bond Funds
- --------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
================================================================================
Municipal Bond Funds
- --------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
================================================================================
Money Market Funds(4)
- --------------------------------------------------------------------------------
Money Market Fund Cash Reserves
1. On 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
2. On 4/1/99, the Fund's name was changed from "Equity Income Fund."
3. Available only to investors 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, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
</TABLE>
31 Oppenheimer Growth Fund
<PAGE>
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
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1-800-525-7048
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Account Transactions
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
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1-800-852-8457
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PhoneLink
24-hr automated information
and automated transactions
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1-800-533-3310
- ---------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-6pm 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
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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
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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.
[LOGO] OppenheimberFunds
Distributor, Inc.
RS0270.001.0299 April 29, 1999
