<PAGE>
[GRAPHIC]
Annual Report August 31, 2000
Oppenheimer
Growth Fund
[LOGO] OppenheimerFunds(R)
The Right Way to Invest
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REPORT HIGHLIGHTS
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CONTENTS
1 President's Letter
3 An Interview with Your Fund's Manager
8 Fund Performance
13 Financial Statements
30 Independent Auditors' Report
31 Federal Income Tax Information
32 Officers and Trustees
The Fund provided strong performance, capitalizing on conditions that generally
favored growth investing.
We benefited from our relatively large holdings among technology stocks,
particularly in fast-growing bandwidth-related telecommunications areas.
We remain enthusiastic about the prospects for growth investing in today's
economic environment.
--------------------------
Average Annual
Total Returns*
For the 1-Year Period
Ended 8/31/00
Class A
Without With
Sales Chg. Sales Chg.
--------------------------
67.10% 57.50%
Class B
Without With
Sales Chg. Sales Chg.
--------------------------
65.82% 60.82%
Class C
Without With
Sales Chg. Sales Chg.
--------------------------
65.87% 64.87%
Class Y
--------------------------
67.56%
--------------------------
*See Notes on page 12 for further details.
<PAGE>
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PRESIDENT'S LETTER
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[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Growth Fund
Dear Shareholder,
Over the past several decades, our investment teams have learned the
importance of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace
of global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve--an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have begun to refocus on companies with strong business
fundamentals and justifiable valuations. Investors have also returned to
long-neglected, value-oriented companies.
1 OPPENHEIMER GROWTH FUND
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PRESIDENT'S LETTER
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What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with hard-
earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, health care and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
September 22, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of the securities markets or any
particular fund. Specific discussion, as it applies to your Fund, is contained
in the pages that follow. Stocks and bonds have different types of investment
risks; stocks are subject to market volatility and bonds are subject to credit
and interest rate risks.
2 OPPENHEIMER GROWTH FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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[PHOTO]
Portfolio Management
Team (l to r)
Julie Ryan
Ian Horowitz
Bruce Bartlett
(Portfolio Manager)
Jin Chon
Q How would you characterize the Fund's performance during the fiscal year that
ended August 31, 2000?
A. We are pleased with the Fund's strong performance. 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
generally favorable environment for growth investing. We attribute the Fund's
gains primarily to our focus on growth and our strong emphasis on technology,
particularly on some of the technology sector's better performing areas and
individual stocks.
What made this such a volatile period?
Throughout the reporting period, investors struggled to weigh the positive
impact of encouraging economic trends 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--which had begun the period at
high levels--climbed even 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, which had risen substantially during 1999,
continued to rise. By mid-February 2000, interest rate-related concerns had
driven the S&P 500 down more than six percent from its highs, and most
industrial sectors had declined even more sharply. The only sectors that were
3 OPPENHEIMER GROWTH FUND
<PAGE>
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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relatively unaffected by rate concerns were technology and biotechnology, where
investors remained willing to pay higher prices for exceptionally high rates of
growth.
"Our emphasis on companies with strong fundamentals and high rates of internal
revenue growth positioned the Fund to weather the market's volatility remarkably
well."
During the second quarter of 2000, interest rate concerns finally took
their toll on technology stocks, causing the prices of many to fall sharply in
April and May. In June, July and August, however, better than expected corporate
earnings reports--along with preliminary signs that U.S. economic growth might
be slowing in response to the Fed's measures--bolstered investor confidence and
gave new strength to growth-oriented stocks. A number of sectors participated in
this rally, with technology leading the way.
How did you manage the Fund in light of these conditions?
The Fund 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 emphasis on companies with strong fundamentals and high rates
of internal revenue growth positioned the Fund to weather the market's
volatility remarkably well.
Our strongest performance came from the technology sector. Here, we derived
our greatest gains from companies supplying the building blocks of the world's
communications infrastructure. We saw--and continue to see--enormous potential
in this area, which is driven by the strong growth of the Internet and strong
demand for new modes of data transmission and business communication. Our best
performing telecommunications holdings included optical networking companies,
such as JDS Uniphase Corp. and SDL, Inc. These companies are providing 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., and
communications-systems suppliers, such as Nortel Networks Corp.
4 OPPENHEIMER GROWTH FUND
<PAGE>
Average Annual
Total Returns
For the Periods Ended 9/30/00/2/
Class A
1-Year 5-Year 10-Year
-----------------------------
46.39% 22.27% 21.42%
Class B Since
1-Year 5-Year Inception
-----------------------------
49.18% 22.55% 21.00%
Class C Since
1-Year 5-Year Inception
-----------------------------
53.18% N/A 22.97%
Class Y Since
1-Year 5-Year Inception
-----------------------------
55.74% 24.01% 24.03%
Did any other sectors contribute to the Fund's strong performance?
We also enjoyed good performance from investments in a select group of
consumer-related retailers. We are particularly pleased with these results,
because the consumer cyclicals sector as a whole performed relatively weakly
during the period. We scored successes in this sector by focusing on companies
with exceptionally strong leadership positions or market niches, such as Kohl's
Corp.
Of course, not all of the Fund's stocks performed strongly. Some of our
holdings among specialty retailers suffered from slowing sales growth, and a few
of our technology holdings provided disappointing performance; however, these
represented a relatively small percentage of the Fund's assets.
Did you make any significant changes to the portfolio over the past year?
Despite our successful investments among retailers, we trimmed our overall
holdings of consumer cyclicals, selling those with slowing top-line growth. We
also significantly reduced our position in stocks of financial companies,
because the financial sector tends to perform poorly during times of rising
interest rates, and because some of our holdings showed slowing rates of revenue
growth. Other sectors we reduced our positions in included healthcare and
biotechnology. We shifted most of these assets into technology, which grew from
approximately 42 percent of the Fund's total portfolio at the beginning of the
period to over 60 percent by the end of the period./1/ Although these changes
mean the Fund became less diversified, as of the end of the period we continued
to hold 43 positions spread among eight investment sectors, a level of
concentration with which we remain comfortable.
1. The Fund's portfolio is subject to change.
2. See page 12 for further details.
5 OPPENHEIMER GROWTH FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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Sector Allocation/3/
(_) Technology 62.3%
(_) Consumer
Cyclicals 13.5
(_) Capital Goods 8.3
(_) Utilities 4.4
(_) Financial 3.3
(_) Consumer
Staples 3.2
(_) Communication
Services 2.7
(_) Healthcare 2.3
What is your outlook for the coming months?
We see indications that economic momentum is likely to continue on a global
scale. Consumer confidence and spending remain high. In addition, although
pressures on prices and wages continue to grow, counterbalancing forces, such as
global price 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.
In particular, we continue to find exciting investment opportunities in the
broadband-telecommunications arena. Since we began managing the Fund in 1998, we
have actively repositioned the portfolio to reflect our observation that global
innovation and capital spending are increasingly focused upon
information-delivery technology, as the world steadily enters an Information
Age. In our view, the companies building today's and tomorrow's communications
networks offer extraordinary, long-term growth prospects. As rapidly as these
companies have developed in recent years, we believe many remain in the early
stages of their growth cycle.
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 part of The
Right Way to Invest.
3. Portfolio is subject to change. Percentages are as of August 31, 2000, and
are based on total market value of common stock holdings.
6 OPPENHEIMER GROWTH FUND
<PAGE>
Top Five Common Stock Industries(4)
--------------------------------------------------
Electronics 24.4%
--------------------------------------------------
Communications Equipment 12.3
--------------------------------------------------
Retail--Specialty 7.5
--------------------------------------------------
Manufacturing 6.7
--------------------------------------------------
Computer Hardware 6.3
Top Ten Stock Holdings(4)
--------------------------------------------------
JDS Uniphase Corp. 13.4%
--------------------------------------------------
EMC Corp. 5.3
--------------------------------------------------
SDL, Inc. 4.8
--------------------------------------------------
Nortel Networks Corp. 4.8
--------------------------------------------------
Corning, Inc. 4.3
--------------------------------------------------
CIENA Corp. 3.1
--------------------------------------------------
Cisco Systems, Inc. 2.5
--------------------------------------------------
Kohl's Corp. 2.5
--------------------------------------------------
Tyco International Ltd. 2.4
--------------------------------------------------
Waters Corp. 2.1
4. Portfolio is subject to change. Percentages are as of August 31, 2000, and
are based on net assets.
7 OPPENHEIMER GROWTH FUND
<PAGE>
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FUND PERFORMANCE
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How Has the Fund Performed?
Below is a discussion, by the Manager, of the Fund's performance
during its fiscal year ended August 31, 2000, followed by a
graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's discussion of performance. During the fiscal year
that ended August 31, 2000, the U.S. economy enjoyed robust
growth, supporting the performance of growth-oriented equity
markets. The Fund participated strongly in the market's gains.
Market strength was concentrated in technology stocks, which the
Fund emphasized, particularly in the area of broadband
telecommunications. These stocks held their value better than many
technology stocks in April and May 2000. In addition, they rallied
during the last three months of the period, in the face of strong
earnings reports and mounting evidence that economic growth was
slowing to a sustainable rate. We also achieved strong returns
from select holdings of consumer cyclicals, despite weak
performance from the majority of stocks in that sector. The Fund's
portfolio holdings, allocations and strategies are subject to
change.
Comparing the Fund's performance to the market.
The graphs that follow show the performance of a hypothetical
$10,000 investment in each Class of shares of the Fund held until
August 31, 2000. In the case of Class A shares, performance is
measured over a 10 year period; in the case of Class B shares,
from the inception of the class on August 17, 1993. In the case of
Class C shares, performance is measured from the inception of the
class on November 1, 1995, and in the case of Class Y shares, from
the inception of the class on June 1, 1994. The Fund's performance
reflects the deduction of the maximum initial sales charge on
Class A shares, the applicable contingent deferred sales charge on
Class B and Class C shares, and reinvestment of all dividends and
capital gains distributions.
8 OPPENHEIMER GROWTH FUND
<PAGE>
The Fund's performance is compared to the performance of the
Standard & Poor's (S&P) 500 Index, a broad-based index of equity
securities widely regarded as a general measure of the
performance of the U.S. equity securities market. Index
performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and
none of the data in the graphs shows the effect of taxes. The
Fund's performance reflects the effect of Fund business and
operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted
that the Fund's investments are not limited to the securities in
the index shown.
9 OPPENHEIMER GROWTH FUND
<PAGE>
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FUND PERFORMANCE
--------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
--Oppenheimer Growth Fund (Class A)
--S&P 500
[LINE GRAPH]
<TABLE>
<CAPTION>
Oppenheimer S&P 500
<S> <C> <C>
6/30/2090 9,425 10,000
9/30/2090 7,696 8,627
12/31/2090 8,660 9,400
3/31/91 10,560 10,763
6/30/91 10,310 10,737
9/30/91 11,309 11,310
12/31/91 12,473 12,257
3/31/92 12,339 11,948
6/30/92 11,928 12,175
9/30/92 12,626 12,559
12/31/92 14,139 13,190
3/31/93 14,114 13,765
6/30/93 13,942 13,831
9/30/93 14,216 14,188
12/31/93 14,524 14,516
3/31/94 14,209 13,967
6/30/94 13,978 14,025
9/30/94 14,912 14,709
12/31/94 14,869 14,707
3/31/95 16,302 16,137
6/30/95 18,095 17,676
9/30/95 19,609 19,079
12/31/95 20,066 20,227
3/31/96 21,265 21,312
6/30/96 21,894 22,268
8/31/96 22,063 21,734
11/30/96 24,978 25,371
2/28/97 25,916 26,628
5/31/97 27,484 28,714
8/31/97 29,792 30,564
11/30/97 29,402 32,602
2/28/98 31,265 35,945
5/31/98 31,649 37,516
8/31/98 26,331 33,046
11/30/98 31,005 40,324
2/28/99 32,752 43,048
5/31/99 34,071 45,406
8/31/99 36,702 46,200
11/30/99 41,704 48,748
2/29/2000 55,787 48,096
5/31/2000 47,962 50,160
8/31/2000 61,329 53,733
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 8/31/00/2/
1-Year 57.50% 5-Year 24.94% 10-Year 21.41%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
--Oppenheimer Growth Fund (Class A)
--S&P 500
[LINE GRAPH]
<TABLE>
<CAPTION>
Oppenheimer S&P 500
<S> <C> <C>
8/17/93 10,000 10,000
9/30/93 10,217 10,299
12/31/93 10,414 10,538
3/31/94 10,160 10,139
6/30/94 9,980 10,181
9/30/94 10,624 10,678
12/31/94 10,570 10,676
3/31/95 11,557 11,714
6/30/95 12,796 12,831
9/30/95 13,836 13,850
12/31/95 14,125 14,683
3/31/96 14,937 15,471
6/30/96 15,348 16,165
8/31/96 15,444 15,777
11/30/96 17,446 18,417
2/28/97 18,065 19,330
5/31/97 19,121 20,844
8/31/97 20,682 22,187
11/30/97 20,372 23,667
2/28/98 21,621 26,093
5/31/98 21,841 27,233
8/31/98 18,135 23,988
11/30/98 21,312 29,272
2/28/99 22,467 31,249
5/31/99 23,325 32,961
8/31/99 25,087 33,537
11/30/99 28,506 35,387
2/29/2000 38,134 34,913
5/31/2000 32,785 36,412
8/31/2000 41,921 39,006
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 8/31/00/2/
1-Year 60.82% 5-Year 25.24% Life 22.58%
1. The Fund changed its fiscal year end from 6/30 to 8/31.
2. See page 12 for further details.
10 OPPENHEIMER GROWTH FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
--Oppenheimer Growth Fund (Class C)
--S&P 500
[LINE GRAPH]
<TABLE>
<CAPTION>
Oppenheimer S&P 500
<S> <C> <C>
11/1/95 10,000 10,000
12/31/95 10,129 10,401
3/31/96 10,712 11,064
6/30/96 11,006 11,627
8/31/96 11,073 11,391
11/30/96 12,507 13,297
2/28/97 12,952 13,957
5/31/97 13,710 15,050
8/31/97 14,830 16,019
11/30/97 14,606 17,088
2/28/98 15,502 18,840
5/31/98 15,662 19,663
8/31/98 13,001 17,320
11/30/98 15,279 21,135
2/28/99 16,108 22,563
5/31/99 16,726 23,799
8/31/99 17,976 24,215
11/30/99 20,388 25,550
2/29/2000 27,225 25,208
5/31/2000 23,360 26,290
8/31/2000 29,818 28,163
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 8/31/00/2/
1-Year 64.87% Life 25.36%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
--Oppenheimer Growth Fund (Class Y)
--S&P 500
[LINE GRAPH]
<TABLE>
Oppenheimer S&P 500
<S> <C> <C>
6/1/94 10,000 10,000
6/30/94 9,487 9,915
9/30/94 10,132 10,399
12/31/94 10,104 10,397
3/31/95 11,077 11,408
6/30/95 12,295 12,495
9/30/95 13,328 13,488
12/31/95 13,641 14,299
3/31/96 14,456 15,066
6/30/96 14,889 15,742
8/31/96 15,008 15,364
11/30/96 17,000 17,935
2/28/97 17,647 18,824
5/31/97 18,729 20,299
8/31/97 20,317 21,606
11/30/97 20,065 23,048
2/28/98 21,350 25,411
5/31/98 21,630 26,521
8/31/98 18,005 23,361
11/30/98 21,214 28,506
2/28/99 22,422 30,432
5/31/99 23,331 32,099
8/31/99 25,161 32,660
11/30/99 28,603 34,462
2/29/2000 38,284 34,000
5/31/2000 32,940 35,460
8/31/2000 42,158 37,986
</TABLE>
Average Annual Total Return of Class Y Shares of the Fund at 8/31/00/2/
1-Year 67.56% 5-Year 26.71% Life 25.89%
The performance information for S&P 500 in the graphs begins on 6/30/90 for
Class A, 8/31/93 for Class B, 10/31/95 for Class C and 5/31/94 for Class Y.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
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. The Fund's returns
at 9/30/00 include results for periods of exceptional market performance that
are not typical of historical results. You should not expect those growth rates
to continue. Because of ongoing market volatility, the Fund's performance has
been subject to substantial short-term fluctuation and current performance may
be less than the results shown. For quarterly 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.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. 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 The inception date of the Fund was 3/15/73. Class A returns include the
current maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 8/17/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Class B shares are subject to an annual 0.75% asset-based sales
charge. Because Class B shares convert to Class A shares 72 months after
purchase, the "life-of-class" return for Class B uses Class A performance for
the period after conversion.
Class C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 6/1/94. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
12 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS August 31, 2000
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--80.8%
--------------------------------------------------------------------------------
Capital Goods--6.7%
--------------------------------------------------------------------------------
Manufacturing--6.7%
--------------------------------------------------------------------------------
Corning, Inc. 590,500 $193,647,094
--------------------------------------------------------------------------------
Tyco International Ltd. 1,936,122 110,358,954
-------------
304,006,048
--------------------------------------------------------------------------------
Communication Services--2.2%
--------------------------------------------------------------------------------
Telecommunications: Long Distance--1.5%
--------------------------------------------------------------------------------
Broadcom Corp., Cl. A/1/ 120,000 30,000,000
--------------------------------------------------------------------------------
Corvis Corp./1/ 355,700 36,926,106
-------------
66,926,106
--------------------------------------------------------------------------------
Telecommunications: Wireless--0.7%
--------------------------------------------------------------------------------
AT&T Wireless Group/1/ 661,500 17,323,031
--------------------------------------------------------------------------------
Tycom Ltd./1/ 384,800 16,017,300
-------------
33,340,331
--------------------------------------------------------------------------------
Consumer Cyclicals--10.9%
--------------------------------------------------------------------------------
Retail: General--3.4%
--------------------------------------------------------------------------------
Kohl's Corp./1/ 2,005,000 112,280,000
--------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 860,000 40,796,250
-------------
153,076,250
--------------------------------------------------------------------------------
Retail: Specialty--7.5%
--------------------------------------------------------------------------------
Bed Bath & Beyond, Inc/1/ 1,570,000 27,573,125
--------------------------------------------------------------------------------
Best Buy Co., Inc./1/ 1,109,000 68,480,750
--------------------------------------------------------------------------------
Home Depot, Inc. 1,632,500 78,462,031
--------------------------------------------------------------------------------
RadioShack Corp. 1,240,000 73,160,000
--------------------------------------------------------------------------------
Tiffany & Co. 2,246,400 93,506,400
-------------
341,182,306
--------------------------------------------------------------------------------
Consumer Staples--2.6%
--------------------------------------------------------------------------------
Broadcasting--2.6%
--------------------------------------------------------------------------------
Infinity Broadcasting Corp., Cl.A/1/ 1,484,500 56,225,437
--------------------------------------------------------------------------------
Univision Communications, Inc., Cl. A/1/ 1,400,000 61,775,000
-------------
118,000,437
--------------------------------------------------------------------------------
Financial--2.7%
--------------------------------------------------------------------------------
Diversified Financial--2.7%
Citigroup, Inc. 1,346,666 78,611,628
--------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 108,800 13,933,200
--------------------------------------------------------------------------------
Schwab (Charles) Corp. 778,800 29,740,425
-------------
122,285,253
13 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Healthcare--1.8%
--------------------------------------------------------------------------------
Healthcare/Drugs--1.8%
--------------------------------------------------------------------------------
Genentech, Inc/1/ 119,400 $ 22,745,700
--------------------------------------------------------------------------------
Immunex Corp./1/ 1,200,000 60,300,000
-----------------
83,045,700
--------------------------------------------------------------------------------
Technology--50.4%
--------------------------------------------------------------------------------
Computer Hardware--6.3%
EMC Corp./1/ 2,437,400 238,865,200
--------------------------------------------------------------------------------
Juniper Networks, Inc./1/ 50,000 10,687,500
--------------------------------------------------------------------------------
Sun Microsystems, Inc./1/ 300,000 38,081,250
-----------------
287,633,950
--------------------------------------------------------------------------------
Computer Services--1.5%
Applied Micro Circuits Corp./1/ 300,000 60,881,250
--------------------------------------------------------------------------------
Sonus Networks, Inc./1/ 30,000 4,991,250
-----------------
65,872,500
--------------------------------------------------------------------------------
Computer Software--5.9%
BEA Systems, Inc./1/ 375,000 25,523,437
--------------------------------------------------------------------------------
Citrix Systems, Inc./1/ 675,000 14,850,000
--------------------------------------------------------------------------------
Microsoft Corp/1/ 467,780 32,656,891
--------------------------------------------------------------------------------
Oracle Corp./1/ 650,000 59,109,375
--------------------------------------------------------------------------------
VeriSign, Inc./1/ 267,300 53,159,287
--------------------------------------------------------------------------------
Veritas Software Corp./1/ 672,500 81,078,281
-----------------
266,377,271
--------------------------------------------------------------------------------
Communications Equipment--12.3%
CIENA Corp./1/ 635,000 140,771,563
--------------------------------------------------------------------------------
Cisco Systems, Inc./1/ 1,640,000 112,545,000
--------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 1,945,000 87,403,438
--------------------------------------------------------------------------------
Nortel Networks Corp. 2,675,200 218,196,000
-----------------
558,916,001
--------------------------------------------------------------------------------
Electronics--24.4%
Intel Corp. 546,200 40,896,725
--------------------------------------------------------------------------------
JDS Uniphase Corp./1/ 4,893,092 609,113,475
--------------------------------------------------------------------------------
SDL, Inc./1/ 550,000 218,521,875
--------------------------------------------------------------------------------
Texas Instruments, Inc. 733,400 49,091,963
--------------------------------------------------------------------------------
Vitesse Semiconductor Corp./1/ 1,035,000 91,920,938
--------------------------------------------------------------------------------
Waters Corp./1/ 1,226,400 97,575,450
-----------------
1,107,120,426
14 OPPENHEIMER GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
-------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities--3.5%
-------------------------------------------------------------------------------------------
Electric Utilities--1.7%
AES Corp. (The)/1/ 1,222,200$ 77,915,250
-------------------------------------------------------------------------------------------
Gas Utilities--1.8%
Enron Corp. 990,000 84,026,251
--------------
Total Common Stocks (Cost $1,700,719,285) 3,669,724,080
Principal
Amount
===========================================================================================
Short-Term Notes--3.3%
-------------------------------------------------------------------------------------------
CIESCO LP, 6.51%, 9/11/00 $ 50,000,000 49,909,583
-------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 6.53%, 9/1/00 50,000,000 50,000,000
-------------------------------------------------------------------------------------------
Heller Financial, Inc., 6.51%, 9/12/00 50,000,000 49,899,014
--------------
Total Short-Term Notes (Cost $149,808,597) 149,808,597
===========================================================================================
Repurchase Agreements--15.8%
-------------------------------------------------------------------------------------------
Repurchase agreement with Deutsche Bank Securities Inc., 6.57%,
dated 8/31/00, to be repurchased at $716,883,807 on 9/1/00,
collateralized by U.S. Treasury Bonds, 5.25%-13.25%, 8/15/01-2/15/29,
with a value of $582,642,112 and U.S. Treasury Nts., 4.25%,
1/15/10, with a value of $150,360,986 (Cost $716,753,000) 716,753,000 716,753,000
-------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $2,567,280,882) 99.9% 4,536,285,677
-------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.1 3,566,253
---------------------
Net Assets 100.0% $4,539,851,930
=====================
</TABLE>
Footnote to Statement of Investments
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
15 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
================================================================================================
Assets
------------------------------------------------------------------------------------------------
<S> <C>
Investments, at value (including repurchase agreement of
$716,753,000) (cost $2,567,280,882)--see accompanying statement $4,536,285,677
------------------------------------------------------------------------------------------------
Cash 115,082
------------------------------------------------------------------------------------------------
Receivables and other assets: Shares of beneficial
interest sold 9,957,464
Interest and dividends 361,957
Other 322,181
---------------
Total assets 4,547,042,361
================================================================================================
Liabilities
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 4,002,780
Distribution and service plan fees 1,600,836
Transfer and shareholder servicing agent fees 789,758
Trustees' compensation 315,080
Shareholder reports 299,559
Other 182,418
---------------
Total liabilities 7,190,431
================================================================================================
Net Assets $4,539,851,930
===============
================================================================================================
Composition of Net Assets
------------------------------------------------------------------------------------------------
Paid-in capital $ 2,323,810,138
------------------------------------------------------------------------------------------------
Overdistributed net investment income (271,651)
------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 247,308,648
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 1,969,004,795
---------------
Net Assets $4,539,851,930
===============
================================================================================================
Net Asset Value Per Share
------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$3,176,435,265 and 50,978,485 shares of beneficial interest outstanding) $62.31
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $66.11
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $995,999,790 and
16,726,348 shares of beneficial interest outstanding) $59.55
------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $176,150,215 and
2,912,579 shares of beneficial interest outstanding) $60.48
------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $191,266,660 and 3,068,518 shares of beneficial interest outstanding) $62.33
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended August 31, 2000
--------------------------------------------------------------------------------
================================================================================
Investment Income
--------------------------------------------------------------------------------
Interest $ 28,773,191
--------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $72,569) 4,126,867
---------------
Total income 32,900,058
================================================================================
Expenses
--------------------------------------------------------------------------------
Management fees 20,119,482
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 5,429,482
Class B 6,753,580
Class C 1,028,132
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 3,260,420
Class B 926,799
Class C 142,308
Class Y 109,104
--------------------------------------------------------------------------------
Trustees' compensation 142,765
--------------------------------------------------------------------------------
Custodian fees and expenses 58,832
--------------------------------------------------------------------------------
Other 980,929
---------------
Total expenses 38,951,833
Less expenses paid indirectly (17,106)
---------------
Net expenses 38,934,727
================================================================================
Net Investment Loss (6,034,669)
================================================================================
Realized and Unrealized Gain
--------------------------------------------------------------------------------
Net realized gain on:
Investments 319,907,463
Closing and expiration of option contracts written 19,938
---------------
Net realized gain 319,927,401
--------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 1,319,892,884
---------------
Net realized and unrealized gain 1,639,820,285
================================================================================
Net Increase in Net Assets Resulting from Operations $ 1,633,785,616
===============
See accompanying Notes to Financial Statements.
17 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended August 31, 2000 1999
=========================================================================================
Operations
-----------------------------------------------------------------------------------------
<S> <C> <C>
Net investment income (loss) $ (6,034,669) $ 1,843,354
-----------------------------------------------------------------------------------------
Net realized gain 319,927,401 127,553,112
-----------------------------------------------------------------------------------------
Net change in unrealized appreciation 1,319,892,884 574,876,473
-----------------------------------
Net increase in net assets resulting from operations 1,633,785,616 704,272,939
=========================================================================================
Dividends and/or Distributions to Shareholders
-----------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (1,489,887) (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 (123,203,377) (130,047,494)
Class B (33,223,482) (33,737,866)
Class C (4,439,345) (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 378,388,009 5,826,017
Class B 257,232,293 24,924,295
Class C 73,885,183 1,650,848
Class Y 38,507,558 (67,277,123)
=========================================================================================
Net Assets
-----------------------------------------------------------------------------------------
Total increase 2,212,230,916 463,751,094
-----------------------------------------------------------------------------------------
Beginning of period 2,327,621,014 1,863,869,920
-----------------------------------
End of period [including undistributed
(overdistributed) net investment
income of $(271,651) and $1,542,581, respectively] $ 4,539,851,930 $ 2,327,621,014
===================================
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
August 31, June 30,
Class A 2000 1999 1998 1997 1996/1/ 1996
====================================================================================================================
Per Share Operating Data
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $39.77 $31.54 $40.42 $33.69 $33.43 $30.80
--------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.02) .10 .73 .62 .08 .44
Net realized and unrealized gain (loss) 25.42 11.69 (5.05) 10.37 .18 5.70
---------------------------------------------------------------------
Total income (loss) from investment
operations 25.40 11.79 (4.32) 10.99 .26 6.14
--------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.03) (.48 (.66) (.49) -- (.41)
Distributions from net realized gain (2.83) (3.08 (3.90) (3.77) -- (3.10)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.86) (3.56 (4.56) (4.26) -- (3.51)
--------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $62.31 $39.77 $31.54 $40.42 $33.69 $33.43
=====================================================================
====================================================================================================================
Total Return, at Net Asset Value/2/ 67.10% 39.39 (11.62) 35.03% 0.78 21.00%
--------------------------------------------------------------------------------------------------------------------
====================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $3,176 $1,730 $1,357 $1,591 $1,128 $1,120
--------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $2,390 $1,620 $1,640 $1,369 $1,101 $1,018
--------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income (loss) (0.01) 0.24% 1.90% 1.74% 1.50 1.43%
Expenses 1.01% 1.05% 1.00%/4/ 1.01%/4/ 1.03%/4/ 1.06%/4/
--------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 49% 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.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
August 31, June 30,
Class B 2000 1999 1998 1997 1996/1/ 1996
=======================================================================================================
<S> <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
-------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.21) (.20) .43 .36 .04 .23
Net realized and unrealized gain (loss) 24.22 11.32 (4.89) 10.08 .16 5.53
-------------------------------------------------------------
Total income (loss) from investment
operations 24.01 11.12 (4.46) 10.44 .20 5.76
-------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- (.21) (.44) (.27) -- (.28)
Distributions from net realized gain (2.83) (3.08) (3.90) (3.77) -- (3.10)
-------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.83) (3.29) (4.34) (4.04) -- (3.38)
-------------------------------------------------------------------------------------------------------
Net asset value, end of period $59.55 $38.37 $30.54 $39.34 $32.94 $32.74
=============================================================
=======================================================================================================
Total Return, at Net Asset Value/2/ 65.82% 38.27% (12.32)% 33.93% 0.61% 19.95%
=======================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $996 $446 $330 $284 $137 $129
-------------------------------------------------------------------------------------------------------
Average net assets (in millions) $676 $410 $354 $204 $131 $ 91
-------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income (loss) (0.78)% (0.58)% 1.08% 0.92% 0.61% 0.60%
Expenses 1.78% 1.86% 1.81%/4/ 1.84%/4/ 1.92%/4/ 1.89%/4/
-------------------------------------------------------------------------------------------------------
Portfolio turnover rate 49% 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.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
Year Year
Ended Ended
August 31, June 30,
Class C 2000 1999 1998 1997 1996/1/ 1996/2/
=======================================================================================================
Per Share Operating Data
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
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) (.09) (.20) .46 .42 .02 .40
Net realized and unrealized gain (loss) 24.48 11.47 (4.99) 10.17 .18 2.88
-------------------------------------------------------------
Total income (loss) from
investment operations 24.39 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 $60.48 $38.92 $30.93 $39.87 $33.42 $33.22
=============================================================
=======================================================================================================
Total Return, at Net Asset Value/3/ 65.87% 38.28% (12.33)% 33.93% 0.60% 10.07%
=======================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $176 $58 $44 $28 $5 $4
-------------------------------------------------------------------------------------------------------
Average net assets (in millions) $103 $54 $44 $14 $4 $2
-------------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment income (loss) (0.77)% (0.58)% 1.06% 0.95% 0.44% 0.65%
Expenses 1.78% 1.86% 1.81%/5/ 1.84%/5/ 2.10%/5/ 1.81%/5/
-------------------------------------------------------------------------------------------------------
Portfolio turnover rate 49% 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. For the period from November 1, 1995 (inception of offering) to June 30,
1996.
3. 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.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year
Ended Ended
August 31, June 30,
Class Y 2000 1999 1998 1997 1996/1/ 1996
=======================================================================================================
Per Share Operating Data
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $39.76 $31.54 $40.43 $33.69 $33.42 $30.80
-------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .16 .18 .87 .66 .08 .46
Net realized and unrealized gain (loss) 25.37 11.69 (5.09) 10.42 .19 5.70
-------------------------------------------------------------
Total income (loss) from
investment operations 25.53 11.87 (4.22) 11.08 .27 6.16
-------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.13) (.58) (.77) (.57) -- (.44)
Distributions from net realized gain (2.83) (3.07) (3.90) (3.77) -- (3.10)
-------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.96) (3.65) (4.67) (4.34) -- (3.54)
-------------------------------------------------------------------------------------------------------
Net asset value, end of period $62.33 $39.76 $31.54 $40.43 $33.69 $33.42
=============================================================
=======================================================================================================
Total Return, at Net Asset Value/2/ 67.56% 39.74% (11.38)% 35.36% 0.81% 21.10%
=======================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $191 $94 $132 $97 $18 $16
-------------------------------------------------------------------------------------------------------
Average net assets (in millions) $135 $117 $135 $63 $17 $9
-------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income 0.27% 0.65% 2.16% 2.00% 1.67% 1.56%
Expenses 0.73% 0.80% 0.71%/4/ 0.77%/4/ 0.87%/4/ 0.94%/4/
-------------------------------------------------------------------------------------------------------
Portfolio turnover rate 49% 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.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Growth Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as 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
a front-end sales charge. Class B and Class C shares are sold without a
front-end 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 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 listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued 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. Short-term "money market type" debt
securities with remaining maturities of 60 days or less are valued at amortized
cost (which approximates market value).
--------------------------------------------------------------------------------
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.
23 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
1.Significant Accounting Policies Continued
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 year ended
August 31, 2000, a provision of $44,072 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 $271,716 as of August 31, 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.
24 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 2000, amounts have been reclassified to reflect an
increase in paid-in capital of $26,103,106, a decrease in overdistributed net
investment income of $6,021,372, and a decrease in accumulated net realized gain
on investments of $32,124,478. This reclassification includes $26,103,106
distributed in connection with Fund share redemptions which increased paid-in
capital and reduced accumulated net realized gain. Net assets of the Fund were
unaffected by the reclassifications.
--------------------------------------------------------------------------------
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.
25 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
2.Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Year Ended August 31, 2000 Year Ended August 31, 1999
Shares Amount Shares Amount
------------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C> <C>
Sold 13,371,627 $698,963,134 5,752,317 $212,292,610
Dividends and/or
distributions reinvested 2,813,617 121,042,450 4,324,566 145,910,899
Redeemed (8,711,692) (441,617,575) (9,596,795) (352,377,492)
-------------------------------------------------------------
Net increase 7,473,552 $378,388,009 480,088 $5,826,017
=============================================================
------------------------------------------------------------------------------------------
Class B
Sold 7,972,912 $401,256,522 3,361,784 $119,411,368
Dividends and/or
distributions reinvested 778,205 32,170,991 1,063,591 34,821,935
Redeemed (3,640,138) (176,195,220) (3,631,651) (129,309,008)
-------------------------------------------------------------
Net increase 5,110,979 $257,232,293 793,724 $24,924,295
=============================================================
------------------------------------------------------------------------------------------
Class C
Sold 2,038,083 $104,497,678 502,970 $18,124,421
Dividends and/or
distributions reinvested 102,477 4,301,986 134,465 4,465,559
Redeemed (717,406) (34,914,481) (582,721) (20,939,132)
-------------------------------------------------------------
Net increase 1,423,154 $73,885,183 54,714 $1,650,848
=============================================================
------------------------------------------------------------------------------------------
Class Y
Sold 2,354,327 $122,130,560 1,359,263 $50,267,513
Dividends and/or
distributions reinvested 167,947 7,211,651 436,009 14,680,437
Redeemed (1,816,495) (90,834,653) (3,621,703) (132,225,073)
-------------------------------------------------------------
Net increase (decrease) 705,779 $38,507,558 (1,826,431) $(67,277,123)
=============================================================
</TABLE>
3.Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended August 31, 2000, were
$1,409,588,748 and $1,484,243,897, respectively.
As of August 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $2,567,280,882 was:
Gross unrealized appreciation $ 2,013,141,847
Gross unrealized depreciation (44,137,052)
------------------
Net unrealized appreciation $ 1,969,004,795
==================
26 OPPENHEIMER GROWTH FUND
<PAGE>
================================================================================
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 year ended August 31, 2000, was
an annualized rate of 0.61%, before any waiver by the Manager if applicable.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer 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 C on Class B
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor/1/ Distributor/1/ Distributor/1/
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 31, 2000 $4,977,997 $1,530,627 $457,833 $6,360,80 $457,702
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
August 31, 2000 $9,808 $949,680 $13,250
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
--------------------------------------------------------------------------------
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 year ended
27 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
4.Fees and Other Transactions with Affiliates Continued
August 31, 2000, payments under the Class A plan totaled $5,429,482 prior to
Manager waivers if applicable, all of which were paid by the Distributor to
recipients, and included $239,372 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 carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended August 31,
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 $6,753,580 $5,373,578 $11,052,205 1.11%
Class C Plan 1,028,132 335,453 984,333 0.56
===================================================================================================
</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.
28 OPPENHEIMER GROWTH FUND
<PAGE>
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. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized 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.
Written option activity for the year ended August 31, 2000, was as follows:
Call Options
------------------------
Number of Amount of
Options Premiums
------------------------------------------------------------------------------
Options outstanding as of August 31, 1999 -- $ --
Options written 125 19,938
Options closed or expired (125) (19,938)
------------------------
Options outstanding as of August 31, 2000 -- $ --
========================
================================================================================
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 year ended August 31, 2000.
29 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer Growth Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Growth Fund as of August 31, 2000,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the years in the four-year period then
ended, the two-month period ended August 31, 1996, and the one-year period ended
June 30, 1996. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 2000, by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Growth Fund as of August 31, 2000, the results of its operations for
the year then ended, the changes in its net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the four-year period then ended, the two-month period ended August 31, 1996,
and the one-year period ended June 30, 1996, in conformity with accounting
principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
September 22, 2000
30 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Dividends and distributions of $2.8628, $2.8288, $2.8288 and $2.9563 per
share were paid to Class A, Class B, Class C and Class Y shareholders,
respectively, on December 9, 1999, of which $2.8288 was designated as a "capital
gain distribution" for federal income tax purposes. Whether received in stock or
in cash, the capital gain distribution should be treated by shareholders as a
gain from the sale of capital assets held for more than one year (long-term
capital gains).
Dividends paid by the Fund during the fiscal year ended August 31, 2000,
which are not designated as capital gain distributions should be multiplied by
3.54% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
31 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER GROWTH FUND
--------------------------------------------------------------------------------
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of
Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
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
For more complete information about Oppenheimer Growth
Fund, please refer to the Prospectus. To obtain a copy,
call your financial advisor, or call OppenheimerFunds
Distributor, Inc. at 1.800.525.7048, or visit the
OppenheimerFunds Internet web site, at
www.oppenheimerfunds.com.
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.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
32 OPPENHEIMER GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
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/1/
www.oppenheimerfunds.com
--------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-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 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------
OppenheimerFunds Market 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
--------------------------------------------------------------
Ticker Symbols Class A: OPPSX Class B: OPSBX Class C: OGRCX
Class Y: OGRYX
1. At times this website may be inaccessible or its
transaction feature may be unavailable.
[GRAPHIC] OppenheimerFunds(R)
Distributor, Inc.
RA0270.001.0800 October 30, 2000
