<PAGE> 1
[PHOTO]
SEMIANNUAL REPORT FEBRUARY 29, 2000
Oppenheimer
GROWTH FUND
[OPPENHEIMERFUNDS LOGO]
The Right Way to Invest
<PAGE> 2
Contents
1 President's Letter
3 An Interview
with Your Fund's
Manager
8 Financial
Statements
26 Officers and Trustees
27 OppenheimerFunds
Family
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
We took advantage of the favorable environment for growth investing, PROVIDING
INVESTORS WITH EXCEPTIONALLY STRONG PERFORMANCE.
THE FUND'S RELATIVELY LARGE TECHNOLOGY POSITION ROSE SHARPLY IN VALUE,
particularly in fast-growing telecommunications-related areas.
In light of today's healthy economic environment, WE REMAIN ENTHUSIASTIC ABOUT
THE PROSPECTS FOR GROWTH.
- -----------------------------
CUMULATIVE
TOTAL RETURNS
For the 6-Month Period
Ended 2/29/00 *
Class A
Without With
Sales Chg. Sales Chg.
- -----------------------------
52.00% 43.26%
Class B
Without With
Sales Chg. Sales Chg.
- -----------------------------
51.39% 46.39%
Class C
Without With
Sales Chg. Sales Chg.
- -----------------------------
51.44% 50.44%
Class Y
Without With
Sales Chg. Sales Chg.
- -----------------------------
52.16% 52.16%
- -----------------------------
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
* See page 7 for further details.
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Growth Fund
PRESIDENT'S LETTER
- -------------------------------------------------------------------------------
DEAR SHAREHOLDER,
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may be assuming too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Alan Greenspan, the Chairman of the Federal Reserve Board, has stated his
view that the recent spectacular returns of some sectors of the market are
partly responsible for pushing our economy to growth rates that could lead to
higher inflation. The dramatic rise in the prices of a narrow segment of the
market has created enormous wealth for some investors. In turn, those investors
are spending at a rate that the Fed believes may threaten the healthy growth of
our economy.
That's why the Fed has been raising interest rates steadily and decisively
over the past year. By making borrowing more expensive, the Fed is attempting
to slow economic growth. It is a precarious balancing act: too much tightening
creates the risk of recession, while too little opens the door to inflation.
The implications are clear: investors must be prepared for near-term
market volatility. In the bond market, higher interest rates usually lead to
lower bond prices. In the stock market, slower economic growth could reduce
corporate earnings and put downward pressure on stock prices. Highly valued
stocks may be particularly vulnerable to a correction. The Securities and
Exchange Commission Chairman, Arthur Levitt, has cautioned investors against
the expectation that the types of returns seen in the recent bull market will
last forever. We agree.
1 OPPENHEIMER GROWTH FUND
<PAGE> 4
PRESIDENT'S LETTER
- -------------------------------------------------------------------------------
Because of the prospect of continued market volatility, we encourage you
to consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While "new economy" stocks have risen recently, many "old economy" stocks
are selling at unusually low prices. In the bond market, higher interest rates
over the short term may reduce inflation concerns, which should be beneficial
over the long term. By buying out-of-favor investments, you may be able to
profit when and if they return to favor in the future. Of course, there is no
assurance that value investing will return to favor in the market, but it may
be a diversification strategy to consider for part of your portfolio.
What specific investments should you consider today so that you are
prepared for tomorrow? The answer depends on your individual investing goals,
risk tolerance and financial circumstances. We urge you to talk with your
financial advisor about ways to diversify your portfolio. This may include
con-sidering global diversification as part of your strategy. While investing
abroad has special risks, such as the effects of foreign currency fluctuation,
it also offers opportunities to participate in global economic growth and to
hedge against the volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, The Right
Way to Invest.
Sincerely,
/s/BRIDGET A. MACASKILL
Bridget A. Macaskill
March 21, 2000
2 OPPENHEIMER GROWTH FUND
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Bruce Bartlett (Portfolio Manager)
Jane Putnam
AN INTERVIEW WITH YOUR FUND'S MANAGER
- -------------------------------------------------------------------------------
Q. HOW WOULD YOU CHARACTERIZE THE FUND'S PERFORMANCE DURING THE SIX-MONTH PERIOD
THAT ENDED FEBRUARY 29, 2000?
A. We are pleased with Oppenheimer Growth Fund's performance during the period.
Although equity markets experienced high levels of volatility during the recent
period, we believe our disciplined stock selection process positioned the Fund
to benefit from a favorable environment for growth investing. We attribute the
Fund's gains primarily to our focus on growth and our strong emphasis on
technology, particularly some of the technology sector's better performing
areas and individual stocks.
WHAT MADE THIS SUCH A VOLATILE PERIOD?
Throughout the period, investors struggled to weigh the positive impact of
encouraging economic data against the negative impact of rising interest rates.
Specifically, equity markets were supported by continued strength in the U.S.
economy, low rates of inflation, growing evidence of global economic recovery
and diminishing fears of Y2K-related problems. On the other hand, interest rate
hikes by the Federal Reserve Board threatened corporate profitability and
raised concerns about the potential for rising inflation.
During the first few months of the period, positives outweighed negatives
for most investors. As a result, equity markets climbed higher. By the
beginning of the new year, most market indices had risen to new all-time highs.
However, market sentiment began to shift as short-term interest rates
3 OPPENHEIMER GROWTH FUND
<PAGE> 6
"The Fund
invested in
precisely the kinds
of fast-growing companies that
the market
tended to reward."
AN INTERVIEW WITH YOUR FUND'S MANAGER
continued to rise, driving most stock prices lower in late January and
February. The only sectors that were relatively unaffected by rate concerns
were technology and biotechnology, where investors remained willing to pay
higher prices for exceptionally high rates of growth.
HOW DID YOU MANAGE THE FUND IN LIGHT OF THESE CONDITIONS?
We invested in precisely the kinds of fast-growing companies that the market
tended to reward during the recent period. By remaining committed to our
disciplined, growth-oriented investment approach, we positioned the Fund to
reap those rewards.
Our strongest performance came from the technology sector. At the
beginning of the period, we had allocated approximately 44 percent of the
Fund's total portfolio to technology. Bolstered by the sector's powerful
performance, that allocation grew to over 50 percent by the end of the
period.(1)
Within technology, we derived our greatest gains from a wide range of
companies that supply the building blocks of the world's communications
infrastructure. We saw--and continue to see--enormous potential in this area
driven by the exponential growth of the Internet and explosive demand for new
modes of data transmission and business communication. Our best performing
telecommunications holdings included optical networking companies, such as JDS
Uniphase Corp. These companies provide equipment to increase the geographical
reach and bandwidth of today's high-speed, high- capacity communications
networks. In related fields, we benefited from investments in information
storage providers, such as EMC Corp.; communications systems suppliers, such as
Nortel Networks Corp.; and system software companies, such as Citrix Systems,
Inc.
1. The Fund's portfolio is subject to change.
4 OPPENHEIMER GROWTH FUND
<PAGE> 7
- ------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 3/31/00(2)
Class A
1-Year 5-Year 10-Year
- ------------------------------------------
55.15% 26.76% 19.68%
Class B Since
1-Year 5-Year Inception
- ------------------------------------------
58.35% 27.05% 22.67%
Class C Since
1-Year 5-Year Inception
- ------------------------------------------
62.33% N/A 25.85%
Class Y Since
1-Year 5-Year Inception
- ------------------------------------------
64.99% 28.53% 26.19%
- ------------------------------------------
WHAT OTHER SECTORS AFFECTED THE FUND'S PERFORMANCE?
The Fund enjoyed brisk performance from a number of consumer-related product
and service providers. Within the consumer sector, we focused on companies with
compelling leadership positions or exceptionally strong market niches.
Of course, not all of the Fund's stocks performed strongly. Some of our
holdings among specialty retailers suffered from slowing sales growth; however
these represented a relatively small position for the Fund.
DID YOU MAKE ANY SIGNIFICANT CHANGES TO THE PORTFOLIO OVER THE PAST SIX MONTHS?
We significantly reduced our position in stocks of financial companies, because
they tend to perform poorly during times of rising interest rates. We also
reduced our healthcare holdings, which came under pressure from expiring
patents on key pharmaceuticals and regulatory challenges that increased pricing
pressures. Instead, we focused our remaining healthcare investments on
biotechnology firms, such as Amgen, Inc. and Biogen, Inc. with many new
products under development and an arsenal of recently approved drugs that face
relatively little competition.
WHAT IS YOUR OUTLOOK FOR THE COMING MONTHS?
We believe consumer confidence and spending are likely to remain high,
sustaining global economic momentum. Although pressures on prices and wages
continue to grow, counterbalancing forces, such as global competition and
improved productivity, have thus far held them largely in check. While we
remain watchful for signs of rising inflation, we are enthusiastic about the
growth prospects of the industries and companies we have identified.
2. See page 7 for further details.
5 OPPENHEIMER GROWTH FUND
<PAGE> 8
- ------------------------------
SECTOR ALLOCATION(3)
[PIE CHART]
- - Technology 55.3%
- - Consumer
Cyclicals 13.0
- - Healthcare 9.1
- - Capital Goods 8.8
- - Communication
Services 4.6
- - Utilities 3.7
- - Consumer
Staples 3.0
- - Financial 2.5
- ------------------------------
We are committed to rigorously maintaining our strategy of growth investing, as
well as our discipline of building the portfolio one company and one investment
at a time. That's what makes Oppenheimer Growth Fund an important part of The
Right Way to Invest.
TOP FIVE COMMON STOCK INDUSTRIES(4)
- ----------------------------------------------------------
Electronics 24.8%
- ----------------------------------------------------------
Computer Software 9.8
- ----------------------------------------------------------
Retail-Specialty 8.4
- ----------------------------------------------------------
Healthcare/Drugs 8.0
- ----------------------------------------------------------
Computer Hardware 8.0
TOP TEN STOCK HOLDINGS(4)
- ----------------------------------------------------------
JDS Uniphase Corp. 16.6%
- ----------------------------------------------------------
E-Tek Dynamics, Inc. 5.0
- ----------------------------------------------------------
EMC Corp. 3.9
- ----------------------------------------------------------
Nortel Networks Corp. 3.5
- ----------------------------------------------------------
Amgen, Inc. 3.1
- ----------------------------------------------------------
Vitesse Semiconductor Corp. 3.0
- ----------------------------------------------------------
Microsoft Corp. 3.0
- ----------------------------------------------------------
Cisco Systems, Inc. 2.9
- ----------------------------------------------------------
Citrix Systems, Inc. 2.7
- ----------------------------------------------------------
Home Depot, Inc. 2.6
3. Portfolio is subject to change. Percentages are as of February 29, 2000, and
are based on total market value of common stock holdings.
4. Portfolio is subject to change. Percentages are as of February 29, 2000, and
are based on net assets.
6 OPPENHEIMER GROWTH FUND
<PAGE> 9
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 AT
WWW.OPPENHEIMERFUNDS.COM. WHEN LOOKING AT FUND PERFORMANCE RESULTS, PLEASE NOTE
THAT THE RECENT GROWTH RATE IN THE STOCK MARKET HAS HELPED PRODUCE SHORT-TERM
RETURNS THAT ARE NOT TYPICAL AND MAY NOT CONTINUE IN THE FUTURE.
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. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
CLASS A shares were first publicly offered on 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)
and 1% (5-year). 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 B shares are subject to an annual 0.75%
asset-based sales charge.
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.
7 OPPENHEIMER GROWTH FUND
<PAGE> 10
STATEMENT OF INVESTMENTS February 29, 2000 / Unaudited
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
======================================================================================
<S> <C> <C>
COMMON STOCKS--87.6%
- --------------------------------------------------------------------------------------
CAPITAL GOODS--7.8%
- --------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--5.0%
E-Tek Dynamics, Inc.(1) 670,000 $183,077,500
- --------------------------------------------------------------------------------------
MANUFACTURING--2.8%
Corning, Inc. 155,500 29,234,000
- --------------------------------------------------------------------------------------
Tyco International Ltd. 1,936,122 73,451,628
----------------
102,685,628
- --------------------------------------------------------------------------------------
COMMUNICATION SERVICES--4.0%
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS: LONG DISTANCE--4.0%
Broadcom Corp., Cl. A(1) 100,000 19,737,500
- --------------------------------------------------------------------------------------
Nortel Networks Corp. 1,162,600 129,629,900
----------------
149,367,400
- --------------------------------------------------------------------------------------
CONSUMER CYCLICALS--11.4%
- --------------------------------------------------------------------------------------
RETAIL: GENERAL--3.0%
Kohl's Corp.(1) 915,000 69,368,437
- --------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 860,000 41,871,250
----------------
111,239,687
- --------------------------------------------------------------------------------------
RETAIL: SPECIALTY--8.4%
Bed Bath & Beyond, Inc(1) 785,000 22,274,375
- --------------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 1,084,000 58,942,500
- --------------------------------------------------------------------------------------
Home Depot, Inc. 1,652,500 95,535,156
- --------------------------------------------------------------------------------------
Tandy Corp. 1,445,000 55,000,312
- --------------------------------------------------------------------------------------
Tiffany & Co. 1,223,200 78,514,150
----------------
310,266,493
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--2.7%
- --------------------------------------------------------------------------------------
BROADCASTING--2.0%
Infinity Broadcasting Corp., Cl. A(1) 1,079,500 34,476,531
- --------------------------------------------------------------------------------------
Univision Communications, Inc., Cl. A(1) 373,000 37,999,375
----------------
72,475,906
- --------------------------------------------------------------------------------------
ENTERTAINMENT--0.7%
Royal Caribbean Cruises Ltd. 725,000 25,646,875
</TABLE>
8 OPPENHEIMER GROWTH FUND
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL--2.1%
- --------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.1%
Citigroup, Inc. 913,800 $ 47,232,037
- --------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 108,800 10,064,000
- --------------------------------------------------------------------------------------
Schwab (Charles) Corp. 519,200 21,709,050
----------------
79,005,087
- --------------------------------------------------------------------------------------
HEALTHCARE--8.0%
- --------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--8.0%
Amgen, Inc.(1) 1,700,000 115,918,750
- --------------------------------------------------------------------------------------
Biogen, Inc.(1) 705,600 76,160,700
- --------------------------------------------------------------------------------------
Genentech, Inc.(1) 119,400 23,029,275
- --------------------------------------------------------------------------------------
Immunex Corp.(1) 400,000 78,975,000
----------------
294,083,725
- --------------------------------------------------------------------------------------
TECHNOLOGY--48.4%
- --------------------------------------------------------------------------------------
COMPUTER HARDWARE--8.0%
Dell Computer Corp.(1) 437,900 17,871,794
- --------------------------------------------------------------------------------------
EMC Corp.(1) 1,218,700 145,025,300
- --------------------------------------------------------------------------------------
Gateway, Inc.(1) 809,300 55,639,375
- --------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 657,500 78,406,875
----------------
296,943,344
- --------------------------------------------------------------------------------------
COMPUTER SOFTWARE--9.8%
BEA Systems, Inc.(1) 67,500 8,542,969
- --------------------------------------------------------------------------------------
Citrix Systems, Inc.(1) 950,000 100,165,625
- --------------------------------------------------------------------------------------
Microsoft Corp.(1) 1,257,780 112,414,087
- --------------------------------------------------------------------------------------
Oracle Corp.(1) 550,000 40,837,500
- --------------------------------------------------------------------------------------
VeriSign, Inc.(1) 107,300 27,146,900
- --------------------------------------------------------------------------------------
Veritas Software Corp.(1) 375,000 74,203,125
----------------
363,310,206
- --------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.8%
Cisco Systems, Inc.(1) 820,000 108,393,750
- --------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR(1) 355,000 70,400,938
- --------------------------------------------------------------------------------------
QUALCOMM, Inc.(1) 250,000 35,609,375
----------------
214,404,063
</TABLE>
9 OPPENHEIMER GROWTH FUND
<PAGE> 12
STATEMENT OF INVESTMENTS Unaudited / Continued
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS--24.8%
Intel Corp. 523,100 $ 59,110,300
- -----------------------------------------------------------------------------------------
JDS Uniphase Corp.(1) 2,325,396 613,032,521
- -----------------------------------------------------------------------------------------
SDL, Inc.(1) 150,000 61,500,000
- -----------------------------------------------------------------------------------------
Texas Instruments, Inc. 66,700 11,105,550
- -----------------------------------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 1,085,000 112,636,563
- -----------------------------------------------------------------------------------------
Waters Corp.(1) 588,200 57,680,364
----------------
915,065,298
- -----------------------------------------------------------------------------------------
UTILITIES--3.2%
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.4%
AES Corp. (The)(1) 611,100 51,217,819
- -----------------------------------------------------------------------------------------
GAS UTILITIES--1.8%
Enron Corp. 980,000 67,620,000
----------------
Total Common Stocks (Cost $1,474,335,977) 3,236,409,031
PRINCIPAL
AMOUNT
=========================================================================================
SHORT-TERM NOTES--9.3%
- -----------------------------------------------------------------------------------------
Alcoa, Inc., 5.75%, 3/23/00 $ 50,000,000 49,824,306
- -----------------------------------------------------------------------------------------
Coca Cola Enterprises, Inc., 5.37%, 3/10/00 50,000,000 49,929,125
- -----------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.58%, 3/2/00 25,000,000 24,996,128
- -----------------------------------------------------------------------------------------
FINOVA Capital Corp., 5.71%, 3/1/00 30,000,000 30,000,000
- -----------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.70%, 3/9/00 50,000,000 49,936,667
- -----------------------------------------------------------------------------------------
Honeywell International, Inc., 5.75%, 3/31/00 40,000,000 39,808,333
- -----------------------------------------------------------------------------------------
IBM Credit Corp., 5.64%, 3/15/00 50,000,000 49,890,333
- -----------------------------------------------------------------------------------------
SBC Communications, Inc., 5.76%, 3/16/00 50,000,000 49,880,000
----------------
Total Short-Term Notes (Cost $344,264,892) 344,264,892
=========================================================================================
REPURCHASE AGREEMENTS--4.6%
- -----------------------------------------------------------------------------------------
Repurchase agreement with Banc One Capital
Markets, Inc., 5.75%, dated 2/29/00, to be
repurchased at $171,327,360 on 3/1/00,
collateralized by U.S. Treasury Nts.,
5.25%-7.875%, 5/31/00-5/15/08, with a value
of $160,219,885 and U.S. Treasury Bonds,
6.125%-11.875%, 11/15/03-8/15/29, with a
value of $14,682,422 (Cost $171,300,000) 171,300,000 171,300,000
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,989,900,869) 101.5% 3,751,973,923
- -----------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.5) (57,181,223)
---------------------------------
NET ASSETS 100.0% $3,694,792,700
=================================
</TABLE>
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
10 OPPENHEIMER GROWTH FUND
<PAGE> 13
STATEMENT OF ASSETS AND LIABILITIES UNAUDITED
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
February 29, 2000
=========================================================================================================
<S> <C>
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,989,900,869)--see accompanying statement $3,751,973,923
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 9,380,750
Interest and dividends 245,303
Other 411,740
-----------------
Total assets 3,762,011,716
=========================================================================================================
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Bank overdraft 434,528
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 60,373,795
Shares of beneficial interest redeemed 4,096,386
Distribution and service plan fees 1,195,443
Transfer and shareholder servicing agent fees 455,866
Trustees' compensation 252,372
Other 410,626
-----------------
Total liabilities 67,219,016
=========================================================================================================
NET ASSETS $3,694,792,700
=================
=========================================================================================================
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $1,859,518,424
- ---------------------------------------------------------------------------------------------------------
Overdistributed net investment income (3,920,907)
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 77,122,129
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 1,762,073,054
-----------------
Net assets $3,694,792,700
=================
=========================================================================================================
NET ASSET VALUE PER SHARE
- ---------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$2,683,364,318 and 47,346,451 shares of beneficial interest outstanding) $56.68
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $60.14
- ---------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $752,391,210
and 13,838,611 shares of beneficial interest outstanding) $54.37
- ---------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $113,202,475
and 2,050,176 shares of beneficial interest outstanding) $55.22
- ---------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $145,834,697 and 2,576,644 shares of beneficial interest outstanding) $56.60
</TABLE>
See accompanying Notes to Financial Statements.
11 OPPENHEIMER GROWTH FUND
<PAGE> 14
STATEMENT OF OPERATIONS UNAUDITED
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended February 29, 2000
===================================================================================================
<S> <C>
INVESTMENT INCOME
- ---------------------------------------------------------------------------------------------------
Interest $ 10,192,297
- ---------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $9,234) 2,232,437
-----------------
Total income 12,424,734
===================================================================================================
EXPENSES
- ---------------------------------------------------------------------------------------------------
Management fees 8,501,531
- ---------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,245,720
Class B 2,665,123
Class C 367,540
- ---------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,330,403
Class B 353,276
Class C 49,511
Class Y 80,387
- ---------------------------------------------------------------------------------------------------
Trustees' compensation 50,689
- ---------------------------------------------------------------------------------------------------
Custodian fees and expenses 28,078
- ---------------------------------------------------------------------------------------------------
Other 424,914
-----------------
Total expenses 16,097,172
Less expenses paid indirectly (10,182)
-----------------
Net expenses 16,086,990
===================================================================================================
NET INVESTMENT LOSS (3,662,256)
===================================================================================================
REALIZED AND UNREALIZED GAIN
- ---------------------------------------------------------------------------------------------------
Net realized gain on:
Investments 117,599,704
Closing and expiration of option contracts written 19,938
-----------------
Net realized gain 117,619,642
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 1,112,961,143
-----------------
Net realized and unrealized gain 1,230,580,785
===================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,226,918,529
=================
</TABLE>
See accompanying Notes to Financial Statements.
12 OPPENHEIMER GROWTH FUND
<PAGE> 15
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
=========================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income (loss) $ (3,662,256) $ 1,843,354
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain 117,619,642 127,553,112
- -------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,112,961,143 574,876,473
-------------------------------------------
Net increase in net assets resulting from operations 1,226,918,529 704,272,939
=========================================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,490,184) (20,206,393)
Class B -- (2,324,915)
Class C -- (291,190)
Class Y (311,048) (2,313,720)
- -------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (123,206,954) (130,047,494)
Class B (33,221,236) (33,737,866)
Class C (4,441,252) (4,357,587)
Class Y (6,900,604) (12,366,717)
=========================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 173,451,026 5,826,017
Class B 100,960,570 24,924,295
Class C 26,088,734 1,650,848
Class Y 9,324,105 (67,277,123)
=========================================================================================================================
NET ASSETS
Total increase 1,367,171,686 463,751,094
- -------------------------------------------------------------------------------------------------------------------------
Beginning of period 2,327,621,014 1,863,869,920
-------------------------------------------
End of period [including undistributed (overdistributed) net investment
income of $(3,920,907) and $1,542,581, respectively] $3,694,792,700 $2,327,621,014
===========================================
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER GROWTH FUND
<PAGE> 16
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
FEB. 29, 2000 AUG. 31, JUNE 30,
CLASS A (UNAUDITED) 1999 1998 1997 1996(1) 1996 1995
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $39.77 $31.54 $40.42 $33.69 $33.43 $30.80 $26.65
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) .10 .73 .62 .08 .44 .36
Net realized and unrealized gain (loss) 19.80 11.69 (5.05) 10.37 .18 5.70 6.83
-------------------------------------------------------------------------
Total income (loss) from
investment operations 19.77 11.79 (4.32) 10.99 .26 6.14 7.19
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) (.48) (.66) (.49) -- (.41) (.24)
Distributions from net realized gain (2.83) (3.08) (3.90) (3.77) -- (3.10) (2.80)
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.86) (3.56) (4.56) (4.26) -- (3.51) (3.04)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $56.68 $39.77 $31.54 $40.42 $33.69 $33.43 $30.80
=========================================================================
==================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 52.00% 39.39% (11.62)% 35.03% 0.78% 21.00% 29.45%
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2,683 $1,730 $1,357 $1,591 $1,128 $1,120 $861
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $2,039 $1,620 $1,640 $1,369 $1,101 $1,018 $727
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.10)% 0.24% 1.90% 1.74% 1.50% 1.43% 1.31%
Expenses 1.01 % 1.05% 1.00%(4) 1.01%(4) 1.03%(4) 1.06%(4) 1.05%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 32% 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 has not been grossed up to reflect the effect of expenses
paid indirectly.
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 February 29, 2000, were $785,310,613 and $884,041,311,
respectively.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER GROWTH FUND
<PAGE> 17
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
FEB. 29, 2000 AUG. 31, JUNE 30,
CLASS B (UNAUDITED) 1999 1998 1997 1996(1) 1996 1995
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $38.37 $30.54 $39.34 $32.94 $32.74 $30.36 $26.44
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.11) (.20) .43 .36 .04 .23 .20
Net realized and unrealized gain (loss) 18.94 11.32 (4.89) 10.08 .16 5.53 6.65
--------------------------------------------------------------------------
Total income (loss) from
investment operations 18.83 11.12 (4.46) 10.44 .20 5.76 6.85
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.21) (.44) (.27) -- (.28) (.13)
Distributions from net realized gain (2.83) (3.08) (3.90) (3.77) -- (3.10) (2.80)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.83) (3.29) (4.34) (4.04) -- (3.38) (2.93)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $54.37 $38.37 $30.54 $39.34 $32.94 $32.74 $30.36
==========================================================================
=================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 51.39% 38.27% (12.32)% 33.93% 0.61% 19.95% 28.22%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 752 $ 446 $ 330 $ 284 $ 137 $ 129 $ 43
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $538 $ 410 $ 354 $ 204 $ 131 $ 91 $ 19
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.88)% (0.58)% 1.08% 0.92% 0.61% 0.60% 0.44%
Expenses 1.78 % 1.86% 1.81%(4) 1.84%(4) 1.92%(4) 1.89%(4) 2.02%(4)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 32% 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 has not been grossed up to reflect the effect of expenses
paid indirectly.
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 February 29, 2000, were $785,310,613 and $884,041,311,
respectively.
See accompanying Notes to Financial Statements.
15 OPPENHEIMER GROWTH FUND
<PAGE> 18
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
FEB. 29, 2000 AUG. 31, JUNE 30,
CLASS C (UNAUDITED) 1999 1998 1997 1996(1) 1996(6)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $38.92 $30.93 $39.87 $33.42 $33.22 $33.44
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.05) (.20) .46 .42 .02 .40
Net realized and unrealized gain (loss) 19.18 11.47 (4.99) 10.17 .18 2.88
---------------------------------------------------------------
Total income (loss) from
investment operations 19.13 11.27 (4.53) 10.59 .20 3.28
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.21) (.51) (.37) -- (.40)
Distributions from net realized gain (2.83) (3.07) (3.90) (3.77) -- (3.10)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.83) (3.28) (4.41) (4.14) -- (3.50)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $55.22 $38.92 $30.93 $39.87 $33.42 $33.22
===============================================================
=========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 51.44% 38.28% (12.33)% 33.93% 0.60% 10.07%
=========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $113 $58 $44 $28 $5 $4
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 74 $54 $44 $14 $4 $2
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.88)% (0.58)% 1.06% 0.95% 0.44% 0.65%
Expenses 1.79% 1.86% 1.81%(4) 1.84%(4) 2.10%(4) 1.81%(4)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 32% 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 has not been grossed up to reflect the effect of expenses
paid indirectly.
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 February 29, 2000, were $785,310,613 and $884,041,311,
respectively.
6. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER GROWTH FUND
<PAGE> 19
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
FEB. 29, 2000 AUG. 31, JUNE 30,
CLASS Y (UNAUDITED) 1999 1998 1997 1996(1) 1996 1995
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $39.76 $31.54 $40.43 $33.69 $33.42 $30.80 $26.64
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 .18 .87 .66 .08 .46 .30
Net realized and unrealized gain (loss) 19.77 11.69 (5.09) 10.42 .19 5.70 6.92
-----------------------------------------------------------------------
Total income (loss) from
investment operations 19.80 11.87 (4.22) 11.08 .27 6.16 7.22
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.13) (.58) (.77) (.57) -- (.44) (.26)
Distributions from net realized gain (2.83) (3.07) (3.90) (3.77) -- (3.10) (2.80)
-----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.96) (3.65) (4.67) (4.34) -- (3.54) (3.06)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $56.60 $39.76 $31.54 $40.43 $33.69 $33.42 $30.80
=======================================================================
=================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 52.16% 39.74% (11.38)% 35.36% 0.81% 21.10% 29.59%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $146 $ 94 $132 $97 $18 $16 $3
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $113 $117 $135 $63 $17 $ 9 $1
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.11% 0.65% 2.16% 2.00% 1.67% 1.56% 1.54%
Expenses 0.80% 0.80% 0.71%(4) 0.77%(4) 0.87%(4) 0.94%(4) 1.04%(4)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 32% 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 has not been grossed up to reflect the effect of expenses
paid indirectly.
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 February 29, 2000, were $785,310,613 and $884,041,311,
respectively.
6. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER GROWTH FUND
<PAGE> 20
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 an 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 at their offering price, which is normally net asset value plus
an initial sales charge. Class B and Class C shares are sold without an initial
sales charge but 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 shares 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. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are
valued primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Foreign currency 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, dealer or pricing service. Short-term "money market type" debt securities
with remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
- --------------------------------------------------------------------------------
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 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.
18 OPPENHEIMER GROWTH FUND
<PAGE> 21
- --------------------------------------------------------------------------------
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 an unfunded retirement plan for
the Fund's independent Board of 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 29, 2000, a provision of $19,545 was made for the
Fund's projected benefit obligations and payments of $11,424 were made to
retired trustees, resulting in an accumulated liability of $247,189 as of
February 29, 2000.
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 Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees 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 investment 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.
19 OPPENHEIMER GROWTH FUND
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS Unaudited/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.
- --------------------------------------------------------------------------------
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. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to 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.
20 OPPENHEIMER GROWTH FUND
<PAGE> 23
================================================================================
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 29, 2000 YEAR ENDED AUGUST 31, 1999
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 5,304,740 $ 247,297,076 5,752,317 $ 212,292,610
Dividends and/or
distributions reinvested 2,813,719 121,046,303 4,324,566 145,910,899
Redeemed (4,276,941) (194,892,353) (9,596,795) (352,377,492)
---------------------------------------------------------------------
Net increase 3,841,518 $173,451,026 480,088 $ 5,826,017
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 3,197,840 $ 145,354,233 3,361,784 $ 119,411,368
Dividends and/or
distributions reinvested 778,150 32,168,758 1,063,591 34,821,935
Redeemed (1,752,748) (76,562,421) (3,631,651) (129,309,008)
---------------------------------------------------------------------
Net increase 2,223,242 $ 100,960,570 793,724 $ 24,924,295
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 803,253 $ 36,956,774 502,970 $ 18,124,421
Dividends and/or
distributions reinvested 102,522 4,303,893 134,465 4,465,559
Redeemed (345,024) (15,171,933) (582,721) (20,939,132)
---------------------------------------------------------------------
Net increase 560,751 $ 26,088,734 54,714 $ 1,650,848
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 1,075,512 $ 50,502,919 1,359,263 $ 50,267,513
Dividends and/or
distributions reinvested 167,947 7,211,651 436,009 14,680,437
Redeemed (1,029,554) (48,390,465) (3,621,703) (132,225,073)
---------------------------------------------------------------------
Net increase (decrease) 213,905 $ 9,324,105 (1,826,431) $ (67,277,123)
======================================================================
=========================================================================================================================
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
</TABLE>
As of February 29, 2000, net unrealized appreciation on securities of
$1,762,073,054 was composed of gross appreciation of $1,786,810,581, and gross
depreciation of $24,737,527.
21 OPPENHEIMER GROWTH FUND
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
- --------------------------------------------------------------------------------
4. 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. Effective January 1,
2000, the fee was changed to 0.56% of average annual net assets over $2.5
billion through $4.5 billion and 0.54% of average annual net assets in excess of
$4.5 billion. The Fund's management fee for the six months ended February 29,
2000, was 0.62% of average net assets for each class of shares, annualized for
periods of less than one full year.
- --------------------------------------------------------------------------------
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
SIX MONTHS ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
February 29, 2000 $1,629,755 $523,962 $149,418 $1,806,365 $120,302
</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
SIX MONTHS ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
February 29, 2000 $2,826 $458,262 $6,009
</TABLE>
22 OPPENHEIMER GROWTH FUND
<PAGE> 25
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.
- --------------------------------------------------------------------------------
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 purchased. 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 six months ended February 29, 2000,
payments under the Class A plan totaled $2,245,720, all of which was paid by the
Distributor to recipients. That included $94,056 paid to an affiliate of the
Manager. 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 provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
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 asset-based sales charges from the Fund under
the plans. If any 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 carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
23 OPPENHEIMER GROWTH FUND
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
Distribution fees paid to the Distributor for the six months ended February 29,
2000, 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 $2,665,123 $2,113,262 $9,169,398 1.22%
Class C Plan 367,540 111,607 573,662 0.51
====================================================================================================
</TABLE>
5. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options
to hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid secondary market does
not exist.
24 OPPENHEIMER GROWTH FUND
<PAGE> 27
Written option activity for the six months ended February 29, 2000, was as
follows:
<TABLE>
<CAPTION>
CALL OPTIONS
-------------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
<S> <C> <C>
Options outstanding as of August 31, 1999 -- $ --
Options written 125 19,938
Options closed or expired (125) (19,938)
------------------------
Options outstanding as of February 29, 2000 -- $ --
------------------------
</TABLE>
================================================================================
6. 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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the six months ended
February 29, 2000.
25 OPPENHEIMER GROWTH FUND
<PAGE> 28
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
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Clayton K. Yeutter, Trustee
Bruce L. Bartlett, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
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 Mayer, Brown & Platt
The financial statements included herein have been
taken from the records of the Fund without examination
of those records by 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.
26 OPPENHEIMER GROWTH FUND
<PAGE> 29
OPPENHEIMERFUNDS FAMILY
<TABLE>
<CAPTION>
===========================================================================================================
GLOBAL EQUITY
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
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 Trinity Growth Fund
Trinity Core Fund Speciality
Trinity Value Fund Real Asset Fund
Gold & Special Minerals Fund
===========================================================================================================
FIXED INCOME
- -----------------------------------------------------------------------------------------------------------
Taxable Municipal
International Bond Fund California Municipal Fund3
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate 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 2000 OppenheimerFunds, Inc. All rights reserved.
27 OPPENHEIMER GROWTH FUND
<PAGE> 30
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
[OPPENHEIMERFUNDS LOGO]
Distributors, Inc.
R50270.001.0200 April 28, 2000
