Oppenheimer Time Fund
Semiannual Report December 31, 1994
[photo depicting couple building new home]
"We know
that to get
the kind
of high
growth
we want, we
have to invest
aggressively
for the
long term."
(logo) OppenheimerFunds
<PAGE>
This Fund is for people who want high growth potential over time.
How Your Fund Is Managed
Oppenheimer Time Fund focuses on medium-sized companies that the Fund's
portfolio manager believes have good management, above-average profitability,
strong balance sheets, and offer the potential for high growth.
These medium-sized companies are more established than smaller emerging
growth companies, and thus may pose less risk than smaller companies. But they
still benefit from being in the emerging growth phase, so they have the
potential for high long-term growth.
In today's stock market, Time Fund's manager is focusing on companies
that have excellent prospects in growth industries such as communications and
computer networking. The Fund also invests in companies that can benefit from
increased consumer spending, such as specialty retailers, restaurants and
household appliance manufacturers.
Performance
Total return at net asset value for the 6 months ended 12/31/94 was 4.69%.(1)
The financial markets had a difficult year and, like many mutual
funds, your Fund felt the effects. While difficult years are hard to accept,
they're an inevitable part of investing. That's why keeping a long-term
perspective is crucial to getting the most from your investment and helping you
through short-term market fluctuations.
Your Fund's average annual total returns at maximum offering price for
the 1- and 5-year periods ended 12/31/94 and since inception of the Fund on
10/21/71 were -17.82%, 5.28% and 10.71%, respectively.(2)
Outlook
"The kinds of companies in which the Fund invests were hurt by rising interest
rates in 1994. While that's never good news, it does have an upside. At this
point, the prices of mid-cap growth stocks appear extremely attractive; we're
paying a very small premium for growth. If long-term interest rates start to
stabilize--and we expect them to in 1995--the value these stocks offer should
be recognized, and both mid-cap growth stocks in general and this Fund in
particular should benefit."
Jay Tracey, Portfolio Manager
December 31, 1994
1. Based on the change in net asset value per share from 6/30/94 to 12/31/94,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Average annual total returns are based on a hypothetical investment held
until 12/31/94, after deducting the current maximum initial sales charge of
5.75%. The Fund's maximum sales charge rate was higher during a portion of
some of the periods shown, and actual investment results will be different
as a result of the change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on 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.
2 Oppenheimer Time Fund
<PAGE>
Dear OppenheimerFunds Shareholder,
The past year has been a difficult period for the stock market, one marked above
all by one of the most aggressive series of moves to raise interest rates in the
U.S. Federal Reserve's history. As interest rates moved up, bond prices fell and
the stock market followed, while investors looked everywhere for answers to
questions about directions in inflation, interest rates, and the economy. These
questions all concerned one basic issue: Is the bull market in stocks coming to
an end?
In our view, it is not. While we are not expecting major gains in stock
prices in the very near term, we believe that the uncertainties which held the
market back in 1994 will recede in 1995 as the fundamental positives in the
economy are recognized. The most important of these positives is our belief that
the Fed's attempt to preempt possible inflation, while temporarily
disconcerting, will likely have its desired effect in 1995. We believe that the
economy will begin to slow, and although short-term rates may move up modestly
from their present levels, long-term interest rates--the ones that most affect
securities prices--should stabilize in their current range. Long-term rates may
even begin to decline as overblown concerns about inflation abate.
Those concerns are, in fact, already fading. While the prices of some
commodities have risen over the past year and U.S. manufacturing capacity
utilization and employment rose to their highest levels in years, in today's
globally competitive environment, price increases are difficult to pass on to
either consumers or businesses. The inflation rate--as measured by the
Consumer Price Index--continues to run at less than 3% a year, and there's
nothing on the horizon to suggest to us that it will increase substantially
anytime soon. Even at their current levels, interest rates remain low relative
to recent periods, and in our view, pose no real threat to most companies'
earnings or cash flows. During the most recent recession, many businesses
learned to operate much more efficiently and took advantage of the extended
decline in interest rates to work down their debt loads and strengthen their
financial positions. As a result, corporate profits have soared despite higher
interest rates. And we believe that business earnings should grow even more as
economies in Europe and elsewhere emerge from their recessions, stimulating
demand for U.S. companies' goods and services. As profits rise, we expect stocks
to become more valuable.
Finally, the changing political landscape reflected in results of the
mid-term election bodes well for the stock market over time. In addition to
limiting the expectation that Congress will pass potentially inflationary
government spending proposals, the realignment in Washington has raised the
possibility of tax relief in the form of an expanded deduction for individual
retirement savings or possibly a reduction in the capital gains tax rate. What
specific action, if any, Congress will take on these proposals remains to be
seen. But any action to reduce the federal deficit, cut spending, and reduce
taxes should be good news for the stock market overall.
In light of all these factors, we remain bullish on stocks. As we have
noted in previous reports, we're expecting moderate gains in the short-term, in
line with increasing corporate earnings. Over time, however, we expect stocks to
perform well in both the U.S. and foreign markets. Your portfolio manager
discusses the outlook for your Fund on the following pages. We appreciate your
confidence, and we look forward to helping you continue to reach your investment
goals.
Donald W. Spiro
President
Oppenheimer
Time Fund
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Donald W. Spiro Jon S. Fossel
January 23, 1995
3 Oppenheimer Time Fund
<PAGE>
Q+A
An interview with your Fund's manager.
Q Do
you think
the factors
contributing
to 1994's
difficult
stock market
will persist
in '95?
The past year was a difficult period for the stock market. What factors affected
the Fund's performance?
Two factors stand out. First, the Fund focuses on medium-size growth stocks
whose prices were particularly affected by the Federal Reserve's aggressive
moves to raise interest rates during the year. Second, growth rates in several
areas of the market that performed well for the Fund in 1993--notably casual
dining, apparel, gaming, and air transport--slowed in 1994. That
combination--changing mid-cap growth stock valuations and changes in some
industries' fundamentals--held the Fund's performance back.
Do you think those factors will persist in 1995?
No. In fact, we think the setback we experienced in 1994 is temporary. The
Federal Reserve's actions to raise interest rates seem to have had their desired
effect. Inflation remains very low, the economy and business earnings are
growing at a solid, sustainable rate, and interest rates, although up
substantially from year-ago levels, are still low by historical standards.
These factors should set the stage for renewed outperformance by growth stocks.
And with the adjustments made to the portfolio over the last several months, we
believe the Fund is positioned to participate fully in any gains.
What portfolio adjustments did you make?
In terms of selling, we reduced or eliminated positions in several companies
whose competitive dynamics had changed or whose growth rates had softened. For
example, we sold Brinker International, which owns the Chili's restaurant chain;
Phillips Van Heusen; and several air transport companies, including Southwest
Airlines and Federal Express. We also reduced our exposure to
4 Oppenheimer Time Fund
<PAGE>
gaming companies and some credit-card issuers like Advanta and First USA. We
used the proceeds to invest in the stocks of companies which we believe have
strong growth potential.
So you're out of those sectors entirely at this point?
Not at all. Our investment decisions are driven by companies, not sectors; in
fact, we've recently added new names in several of these areas, such as Dollar
General in retailing and Ann Taylor in apparel.(1) We're alert to market trends,
of course, but our buying and selling focuses firmly on a company's performance
and prospects.
What other kinds of stocks have you been buying?
Many of our purchases were in the healthcare area, centering on companies with
strong growth prospects, independent of healthcare reform. For example, we
purchased Lincare Holdings and Integrated Health, both emerging leaders in
providing specialized care outside the high-cost hospital setting.
We also added several technology companies with strong growth
prospects. In software, we added Lotus Development Corporation, DSC
Communications, and Compuware, all of which are positioned to benefit from the
emphasis on business productivity and networking. In communications, we bought
Andrew Corp., which supplies equipment to the television and cable industries.
And we added some "lower-tech" stocks, including Molex, a fast-growing
manufacturer of electronic components and connectors, and some "higher-tech"
stocks, including Teradyne, a manufacturer of semiconductor test equipment.
What's your outlook for the Fund?
This Fund tends to buy and sell stocks for company-specific reasons, not because
a specific market sector is "hot." As a result, the portfolio reflects not just
our outlook for the economy or individual industry groups, but rather the
prospects for individual companies' performance. We believe that the stocks
we're holding today have the potential to perform very well when growth stocks
resume their advance.
Facing page
Top left: Jay Tracey,
Portfolio Manager
Top right: The equity trading desk
Bottom left: Paul LaRocco, Associate Portfolio Manager
This page
Top: Jay Tracey
Bottom: Robert Doll, Executive VP, Director of Equity Investments, with his
assistant, Pat Andrzejewski
A No.
In fact, we think the setback we experienced in 1994 is temporary.
1. The Fund's portfolio is subject to change.
5 Oppenheimer Time Fund
<PAGE>
<TABLE>
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Statement of Investments December 31, 1994 (Unaudited)
------------------------------------------------------------------------------------------------
<CAPTION>
Face Market Value
Amount See Note 1
===================================================================================================================================
<S> <C> <C>
Repurchase Agreements--16.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 6%,
dated 12/30/94, to be repurchased at $52,535,000 on 1/3/95,
collateralized by U.S. Treasury Nts., 3.875%--8.875%,
5/31/95--8/31/05, with a value of $49,926,894 and U.S. Treasury
Bonds, 10.75%--14.25%, 2/15/02--8/15/05, with a value of
$3,667,654 (Cost $52,500,000) $52,500,000 $52,500,000
===================================================================================================================================
Convertible Corporate Bonds and Notes--2.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Hotels/Lodging--0.4% Hospitality Franc Systems, Inc., 4.50% Cv. Sr. Sub. Nts., 10/1/99 1,200,000 1,164,000
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--0.6% First Financial Management Corp., 5% Cv. Debs., 12/15/99 2,000,000 2,075,000
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--1.3% Solectron Corp., 0% Cv. Liquid Yield Option Sub. Nts., 5/5/12 7,300,000 4,170,125
-----------
Total Convertible Corporate Bonds and Notes (Cost $7,019,157) 7,409,125
Shares
===================================================================================================================================
Common Stocks--80.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--3.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals--2.0% Geon Co. (The) 70,000 1,916,250
------------------------------------------------------------------------------------------------
Georgia Gulf Corp.(1) 120,000 4,665,000
-----------
6,581,250
- -----------------------------------------------------------------------------------------------------------------------------------
Steel--1.1% Birmingham Steel Corp 175,000 3,500,000
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--24.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Auto Parts: After Market--1.5% Breed Technologies, Inc 112,000 3,178,000
------------------------------------------------------------------------------------------------
Lear Seating Corp.(1) 80,000 1,590,000
-----------
4,768,000
- -----------------------------------------------------------------------------------------------------------------------------------
Broadcast Media--1.9% Comcast Corp., Cl. A Special 200,000 3,137,500
------------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(1) 75,768 3,078,075
-----------
6,215,575
- -----------------------------------------------------------------------------------------------------------------------------------
Hotels/Motels--1.2% Carnival Corp., Inc., Cl. A 176,000 3,740,000
- -----------------------------------------------------------------------------------------------------------------------------------
Household Furnishings Sunbeam-Oster, Inc 306,700 7,897,525
And Appliances--2.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure Time--0.9% Brunswick Corp 150,000 2,831,250
- -----------------------------------------------------------------------------------------------------------------------------------
Restaurants--0.4% Brinker International, Inc.(1) 70,000 1,268,750
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Stores: Dollar General Corp 165,000 4,950,000
Department Stores--3.2% ------------------------------------------------------------------------------------------------
Kohl's Corp.(1) 62,000 2,464,500
------------------------------------------------------------------------------------------------
Nordstrom, Inc 75,000 3,150,000
-----------
10,564,500
</TABLE>
6 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Retail: Specialty--8.4% Ann Taylor Stores, Inc.(1) 90,000 $ 3,093,750
------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc. 164,200 4,761,800
------------------------------------------------------------------------------------------------
Heilig-Meyers Co. 100,000 2,525,000
------------------------------------------------------------------------------------------------
Micro Warehouse, Inc.(1) 130,000 4,550,000
------------------------------------------------------------------------------------------------
Office Depot, Inc.(1) 150,000 3,600,000
------------------------------------------------------------------------------------------------
OfficeMax, Inc.(1) 61,000 1,616,500
------------------------------------------------------------------------------------------------
Staples, Inc.(1) 105,000 2,598,750
------------------------------------------------------------------------------------------------
Viking Office Products, Inc.(1) 155,000 4,746,875
-----------
27,492,675
- -----------------------------------------------------------------------------------------------------------------------------------
Shoes--2.4% Nike, Inc., Cl. B 105,000 7,835,625
- -----------------------------------------------------------------------------------------------------------------------------------
Textiles: Apparel Tommy Hilfiger Corp.(1) 126,000 5,685,750
Manufacturers--1.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--17.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages: Alcoholic--1.1% Canandaigua Wine Co., Inc., Cl. A(1) 94,000 3,572,000
- -----------------------------------------------------------------------------------------------------------------------------------
Drugs--5.0% Elan Corp. PLC, ADR(1) 110,000 3,918,750
------------------------------------------------------------------------------------------------
R.P. Scherer Corp.(1) 190,000 8,621,250
------------------------------------------------------------------------------------------------
Roberts Pharmaceutical Corp.(1) 115,000 3,651,250
-----------
16,191,250
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare: Chiron Corp.(1) 50,000 4,018,750
Miscellaneous--9.3% ------------------------------------------------------------------------------------------------
Coram Healthcare Corp.(1) 100,000 1,650,000
------------------------------------------------------------------------------------------------
Genentech, Inc.(1) 75,000 3,403,125
------------------------------------------------------------------------------------------------
Health Care and Retirement Corp.(1) 120,000 3,615,000
------------------------------------------------------------------------------------------------
Horizon Healthcare Corp.(1) 180,000 5,040,000
------------------------------------------------------------------------------------------------
Integrated Health Services, Inc. 143,500 5,668,250
------------------------------------------------------------------------------------------------
Lincare Holdings, Inc.(1) 150,000 4,350,000
------------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc.(1) 41,900 2,765,400
-----------
30,510,525
- -----------------------------------------------------------------------------------------------------------------------------------
Hospital Management--0.7% Quorum Health Group, Inc.(1) 120,000 2,280,000
- -----------------------------------------------------------------------------------------------------------------------------------
Retail Stores: Revco D.S., Inc.(1) 240,000 5,670,000
Drug Stores--1.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Oil Well Services and Halliburton Co. 100,000 3,312,500
Equipment--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial--8.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial Services--5.7% Cintas Corp. 140,000 4,970,000
------------------------------------------------------------------------------------------------
Manpower, Inc. 100,000 2,812,500
------------------------------------------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 150,000 3,750,000
------------------------------------------------------------------------------------------------
Sensormatic Electronics Corp. 200,000 7,200,000
-----------
18,732,500
</TABLE>
7 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited)(Continued)
------------------------------------------------------------------------------------------------
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electrical Equipment--1.9% Molex, Inc., Cl. A 193,750 $ 6,006,250
- -----------------------------------------------------------------------------------------------------------------------------------
Railroads--1.0% Southern Pacific Rail Corp.(1) 188,000 3,407,500
- -----------------------------------------------------------------------------------------------------------------------------------
Financial--4.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Financial Services: Advanta Corp., Cl. B 170,000 4,292,500
Miscellaneous--3.4% ------------------------------------------------------------------------------------------------
First USA, Inc. 125,000 4,109,375
------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 90,000 2,733,750
-----------
11,135,625
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance: Life--0.4% Equitable of Iowa Cos., Inc. 40,000 1,130,000
- -----------------------------------------------------------------------------------------------------------------------------------
Major Banks: Regional--0.8% First Interstate Bancorp 40,000 2,705,000
- -----------------------------------------------------------------------------------------------------------------------------------
Technology--21.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Communication: Andrew Corp.(1) 100,000 5,225,000
Equipment/Manufacturers--3.6% ------------------------------------------------------------------------------------------------
DSC Communications Corp.(1) 60,000 2,152,500
------------------------------------------------------------------------------------------------
Tellabs, Inc.(1) 80,000 4,460,000
-----------
11,837,500
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software Compuware Corp.(1) 126,000 4,536,000
And Services--9.7% ------------------------------------------------------------------------------------------------
CUC International, Inc.(1) 140,000 4,690,000
------------------------------------------------------------------------------------------------
First Data Corp. 200,000 9,475,000
------------------------------------------------------------------------------------------------
First Financial Management Corp. 20,000 1,232,500
------------------------------------------------------------------------------------------------
Informix Corp.(1) 50,000 1,606,250
------------------------------------------------------------------------------------------------
Lotus Development Corp.(1) 80,000 3,280,000
------------------------------------------------------------------------------------------------
Oracle Systems Corp.(1) 60,600 2,673,975
------------------------------------------------------------------------------------------------
Pyxis Corp.(1) 210,000 3,990,000
-----------
31,483,725
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Systems--3.6% American Power Conversion Corp.(1) 65,000 1,064,375
------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 57,500 2,673,750
------------------------------------------------------------------------------------------------
EMC Corp.(1) 370,000 8,001,250
-----------
11,739,375
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics: Teradyne, Inc.(1) 100,000 3,387,500
Instrumentation--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications--3.5% ALC Communications Corp.(1) 190,000 5,913,750
------------------------------------------------------------------------------------------------
LDDS Communications, Inc.(1) 281,774 5,476,982
-----------
11,390,732
-----------
Total Common Stocks (Cost $220,147,018) 262,872,882
</TABLE>
8 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
<CAPTION>
Market Value
Shares See Note 1
===================================================================================================================================
<S> <C> <C>
Preferred Stocks--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
AK Steel Holding Corp., 7% Cv. Stock Appreciation Income Linked
Securities (Cost $1,537,500) 50,000 $ 1,562,500
Units
===================================================================================================================================
Rights, Warrants and Certificates--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B Rts., Exp. 9/95 95,000 106,875
------------------------------------------------------------------------------------------------
Windmere Corp. Wts., Exp. 1/98 4,727 0
------------------------------------------------------------------------------------------------
Xoma Corp. Wts., Exp. 6/95 5,511 524
------------
Total Rights, Warrants and Certificates (Cost $143,878) 107,399
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $281,347,553) 99.4% 324,451,906
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.6 1,958,395
----- ------------
Net Assets 100.0% $326,410,301
===== ============
1. Non-income producing security.
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1994 (Unaudited)
------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C> <C>
Assets Investments, at value (including repurchase agreements of $52,500,000)
(cost $281,347,553)--see accompanying statement $324,451,906
------------------------------------------------------------------------------------------------
Cash 704,827
------------------------------------------------------------------------------------------------
Receivables:
Investments sold 3,122,730
Shares of beneficial interest sold 928,140
Interest and dividends 128,966
------------------------------------------------------------------------------------------------
Other 85,809
------------
Total assets 329,422,378
===================================================================================================================================
Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 1,521,490
Dividends 989,245
Service plan fees--Note 5 129,960
Other 371,382
------------
Total liabilities 3,012,077
===================================================================================================================================
Net Assets $326,410,301
============
===================================================================================================================================
Composition of Paid-in capital $278,573,569
Net Assets ------------------------------------------------------------------------------------------------
Undistributed (overdistributed) net investment income (71,441)
------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) from investment and written option transactions 4,803,820
------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments--Note 3 43,104,353
------------
Net assets--applicable to 22,387,554 shares of beneficial interest outstanding $326,410,301
============
===================================================================================================================================
Net Asset Value and Redemption Price Per Share $14.58
===================================================================================================================================
Maximum Offering Price Per Share (net asset value plus sales charge of 5.75% of offering price) $15.47
See accompanying Notes to Financial Statements.
</TABLE>
10 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended December 31, 1994 (Unaudited)
------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C> <C>
Investment Income Interest $ 1,416,418
------------------------------------------------------------------------------------------------
Dividends 729,682
------------
Total income 2,146,100
===================================================================================================================================
Expenses Management fees--Note 5 1,212,078
------------------------------------------------------------------------------------------------
Service plan fees--Note 5 248,826
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 279,305
------------------------------------------------------------------------------------------------
Shareholder reports 197,559
------------------------------------------------------------------------------------------------
Trustees' fees and expenses 51,429
------------------------------------------------------------------------------------------------
Custodian fees and expenses 13,654
------------------------------------------------------------------------------------------------
Legal and auditing fees 9,385
------------------------------------------------------------------------------------------------
Other 100,160
------------
Total expenses 2,112,396
===================================================================================================================================
Net Investment Income (Loss) 33,704
===================================================================================================================================
Realized and Unrealized Net realized gain (loss) from:
Gain (Loss) on Investments Investments 5,487,485
And Options Written Closing of options written--Note 4 551,040
------------
Net realized gain (loss) 6,038,525
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments
and options written 9,089,329
------------
Net realized and unrealized gain (loss) on investments and options written 15,127,854
===================================================================================================================================
Net Increase (Decrease) in Net Assets Resulting From Operations $15,161,558
============
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Time Fund
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
December 31, 1994 June 30,
(Unaudited) 1994
===================================================================================================================================
<S> <C> <C> <C>
Operations Net investment income (loss) $ 33,704 $ (827,998)
------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and options written 6,038,525 39,045,481
------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments and options written 9,089,329 (45,046,554)
----------- -----------
Net increase (decrease) in net assets resulting from operations 15,161,558 (6,829,071)
===================================================================================================================================
Dividends and Dividends in excess of net investment income ($.002 per share) -- (47,909)
Distributions to ------------------------------------------------------------------------------------------------
Shareholders Distributions from net realized gain on investments and
options written ($1.572 and $1.226 per share, respectively) (31,962,254) (25,770,289)
===================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets resulting from beneficial
Transactions interest transactions--Note 2 21,674,871 (16,255,516)
===================================================================================================================================
Net Assets Total increase (decrease) 4,874,175 (48,902,785)
------------------------------------------------------------------------------------------------
Beginning of period 321,536,126 370,438,911
----------- -----------
End of period (including overdistributed net investment income
of $71,441 and $105,145, respectively) $326,410,301 $321,536,126
=========== ===========
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Financial Highlights
------------------------------------------------------------------------------------------------
Six Months
Ended
December 31,
1994 Year Ended June 30,
(Unaudited) 1994 1993 1992 1991 1990
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $ 15.45 $ 17.06 $ 14.84 $ 14.37 $ 16.71 $ 17.38
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income -- (1) -- (1) -- (1) .14 .40 .54
Net realized and unrealized gain (loss)
on investments and options written .70 (.38) 3.06 1.24 (.25) .62
------ ------ ------ ------ ------ ------
Total income (loss) from investment
operations .70 (.38) 3.06 1.38 .15 1.16
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (1) -- (.05) (.22) (.52) (.51)
Dividends in excess of net investment income -- -- (1) -- -- -- --
Distributions from net realized gain on
investments and options written (1.57) (1.23) (.79) (.69) (1.97) (1.32)
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (1.57) (1.23) (.84) (.91) (2.49) (1.83)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.58 $ 15.45 $ 17.06 $ 14.84 $ 14.37 $ 16.71
======= ======= ======= ======= ======= =======
===================================================================================================================================
Total Return, at Net Asset Value(2) 4.69% (3.40)% 20.95% 9.28% 2.46% 6.91%
===================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $326,410 $321,536 $370,439 $329,975 $309,390 $335,026
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $325,659 $387,363 $358,834 $358,097 $310,040 $328,266
- -----------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at end
of period (in thousands) 22,388 20,814 21,710 22,242 21,526 20,050
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income .02%(3) (.21)% .01% .80% 2.48% 3.12%
Expenses 1.29%(3) .94% 1.00% .96% .96% .94%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 42.4% 62.7% 61.7% 86.3% 107.5% 115.7%
1. Less than $.005 per share.
2. Assumes a hypothetical initial investment on the business day before the first day of the
fiscal period, 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.
3. Annualized.
4. 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 December 31, 1994 were $115,460,218 and $123,397,455, respectively. See
accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
1. Significant Oppenheimer Time Fund (the Fund) is registered under the Investment Company Act of 1940, as
Accounting Policies amended, as a diversified, open-end management investment company. The Fund's investment advisor
is Oppenheimer Management Corporation (the Manager). The following is a summary of significant
accounting policies consistently followed by the Fund.
------------------------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New York time) on each
trading day. Listed and unlisted securities for which such information is regularly reported are
valued at the last sale price of the day or, in the absence of sales, at values based on the
closing bid or asked price or the last sale price on the prior trading day. Long-term debt
securities are valued by a portfolio pricing service approved by the Board of Trustees.
Long-term debt securities which cannot be valued by the approved portfolio pricing service are
valued using dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market value, or under
consistently applied procedures established by the Board of Trustees to determine fair value in
good faith. Short-term debt securities having a remaining maturity of 60 days or less are valued
at cost (or last determined market value) adjusted for amortization to maturity of any premium
or discount. Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the value is based
upon the last sale on the prior trading date if it is within the spread between the closing bid
and asked prices. If the last sale price is outside the spread, the closing bid or asked price
closest to the last reported sale price is used.
------------------------------------------------------------------------------------------------
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.
------------------------------------------------------------------------------------------------
Federal Income 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 tax provision is required.
------------------------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan for the Fund's
independent trustees. Benefits are based on years of service and fees paid to each trustee
during the years of service. The accumulated liability for the Fund's projected benefit
obligations was $109,656 at December 31, 1994. No payments have been made under the plan.
------------------------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are recorded on the
ex-dividend date.
------------------------------------------------------------------------------------------------
Change in Accounting Classification of Distributions to Shareholders. The character of the
distributions made during the year from net investment income or net realized gains may differ
from their 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
year that the income or realized gain (loss) was recorded by the Fund. Effective July 1, 1993,
the Fund adopted Statement of Position 93-2: Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. As a result, the Fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, subsequent to June 30, 1993, amounts
have been reclassified to reflect a decrease in paid-in capital of $845,380, a decrease in
undistributed net investment loss of $419,581 and an increase in accumulated net realized gain
on investments of $425,799.
</TABLE>
14 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
1. Significant Other. Investment transactions are accounted for on the date the investments are purchased or
Accounting Policies sold (trade date) and dividend income is recorded on the ex-dividend date. Discount on
(continued) securities purchased is amortized over the life of the respective securities, in accordance with
federal income tax requirements. 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.
===================================================================================================================================
2. Shares of The Fund has authorized an unlimited number of no par value shares of beneficial interest.
Beneficial Interest Transactions in shares of beneficial interest were as follows:
<CAPTION>
Six Months Ended December 31, 1994 Year Ended June 30, 1994
-------------------------------- ----------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 2,715,506 $ 43,671,280 3,714,136 $ 65,700,854
Dividends and distributions
reinvested 2,119,233 30,474,285 1,329,264 24,485,036
Redeemed (3,261,265) (52,470,694) (5,939,332) (106,441,406)
-------------- -------------- -------------- --------------
Net increase (decrease) 1,573,474 $ 21,674,871 (895,932) $ (16,255,516)
============== ============== ============== ==============
===================================================================================================================================
<S> <C>
3. Unrealized Gains and At December 31, 1994, net unrealized appreciation on investments of $43,104,353 was composed of
Losses on Investments gross appreciation of $50,708,763, and gross depreciation of $7,604,410.
===================================================================================================================================
4. Option Activity The Fund may buy and sell put and call options, or write 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. The Fund segregates assets to cover its obligations under
option contracts.
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.
In this report, securities segregated to cover outstanding call options are noted in the
Statement of Investments. Shares subject to call, expiration date, exercise price, premium
received and market value are detailed in a footnote to the Statement of Investments. 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. Option activity for the
six months ended December 31, 1994 was as follows:
<CAPTION>
Call Options Put Options
------------------------ ------------------------
Number of Amount of Number of Amount of
Options Premiums Options Premiums
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at June 30, 1994 594 $ 206,111 -- $ --
Options written 500 401,237 7,000 1,368,103
------------------------------------------------------------------------------------------------
Options canceled in closing purchase
transactions (500) (401,237) (7,000) (1,368,103)
------------------------------------------------------------------------------------------------
Options exercised (594) (206,111) -- --
---------- ---------- ---------- ----------
Options outstanding at December 31, 1994 -- $ -- -- $ --
========== ========== ========== ==========
</TABLE>
15 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
5. Management Fees and Management fees paid to the Manager were in accordance with the investment advisory agreement
Other Transactions with the Fund which provides for an annual fee of .75% on the first $200 million of net assets
With Affiliates with a reduction of .03% on each $200 million thereafter to $800 million, and .60% on net assets
in excess of $800 million. The Manager has agreed to reimburse the Fund if aggregate expenses
(with specified exceptions) exceed the most stringent applicable regulatory limit on Fund
expenses.
For the six months ended December 31, 1994, commissions (sales charges paid by investors)
on sales of Fund shares totaled $221,355, of which $55,532 was retained by Oppenheimer Funds
Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an
affiliated broker/dealer.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment companies. OSS's
total costs of providing such services are allocated ratably to these companies.
Under an approved service plan, the Fund may expend up to .25% of its net assets annually
to reimburse OFDI for costs incurred in connection with the personal service and maintenance of
accounts that hold shares of the Fund (prior to July 1, 1994, reimbursements were made with
respect to shares sold subsequent to April 1, 1991), including amounts paid to brokers, dealers,
banks and other institutions. During the six months ended December 31, 1994, OFDI paid $2,966 to
an affiliated broker/dealer as reimbursement for personal service and maintenance expenses.
</TABLE>
16 Oppenheimer Time Fund
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------
Oppenheimer Time Fund
------------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Jay W. Tracey, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
===================================================================================================================================
Investment Advisor Oppenheimer Management Corporation
===================================================================================================================================
Distributor Oppenheimer Funds Distributor, Inc.
===================================================================================================================================
Transfer and Shareholder Oppenheimer Shareholder Services
Servicing Agent
===================================================================================================================================
Custodian of The Bank of New York
Portfolio Securities
===================================================================================================================================
Independent Auditors KPMG Peat Marwick LLP
===================================================================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of the Fund without
examination by the independent auditors. This is a copy of a report to shareholders of
Oppenheimer Time Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Time Fund. For material information concerning the Fund, see the Prospectus.
</TABLE>
17 Oppenheimer Time Fund
<PAGE>
OppenheimerFunds Family
OppenheimerFunds offers over 35 funds designed to
fit virtually every investment goal. Whether you're
investing for retirement, your children's education
or tax-free income, we have the funds to help you
seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a
respected financial institution with over 30 years
of experience in helping people just like you reach
their financial goals. And you're investing with a
leader in global, growth stock and flexible fixed
income investments--with over 1.8 million
shareholder accounts and more than $29 billion
under Oppenheimer's management and that of our
affiliates.
As an OppenheimerFunds shareholder, you can easily
exchange shares of eligible funds of the same class
by mail or by telephone for a small administrative
fee.(1) For more information on OppenheimerFunds,
please contact your financial advisor or call us at
1-800-525-7048 for a prospectus. You may also write
us at the address shown on the back cover. As
always, please read the prospectus carefully before
you invest.
Stock Funds Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Time Fund Value Stock Fund
Target Fund Gold & Special Minerals Fund
Growth Fund(3)
Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
Bond Funds High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund
Strategic Income Fund U.S. Government Trust
Strategic Diversified Limited-Term Government Fund
Income Fund
Strategic Investment Grade Bond Fund
Tax-Exempt Funds New York New Jersey Tax-Exempt Fund(4)
Tax-Exempt Fund(4)
California Tax-Exempt Fund(4) Tax-Free Bond Fund
Pennsylvania Insured Tax-Exempt Bond Fund
Tax-Exempt Fund(4)
Florida Intermediate Tax-Exempt Bond Fund
Tax-Exempt Fund(4)
Money Market Funds Money Market Fund Cash Reserves
1. The fee is waived for PhoneLink exchanges
between existing accounts. Exchange privileges
are subject to change or termination.
2. Formerly Oppenheimer Bio-Tech Fund and Global
Environment Fund.
3. Formerly Special Fund.
4. Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer
Funds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203. (c) Copyright 1995
Oppenheimer Management Corporation. All rights
reserved.
18 Oppenheimer Time Fund
<PAGE>
"How may I help you?"
As an OppenheimerFunds shareholder, some special privileges are available to
you. Whether it's automatic investment plans, informative newsletters and
hotlines, or ready account access, you can benefit from services designed to
make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. It also gives you the ability to make transactions using your
touch-tone phone. Of course, you can always speak with a Customer Service
Representative during business hours.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, non-profit
organization made up of over 3,200 customer service management professionals
from around the country, hon-ored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
Information
General Information
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
Jennifer Leonard, Customer Service Representative Oppenheimer Shareholder
Services
PhoneLink
24 hours a day, automated
information and transactions
1-800-533-3310
Telecommunications Device
for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful messages on the
economy and issues that affect your investments
1-800-835-3104
RS0380.001.0295
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