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OPPENHEIMER DISCOVERY FUND
Semiannual Report March 31, 1997
[PHOTO]
"To get high
GROWTH,
we know we
have to invest
aggressively
for the
LONG TERM."
[LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
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This Fund is for people who want to take
part in the investment opportunities offered
by fast-growing companies.
--------
NEWS ---------------------------------------------------------------------------------------------------
-------- How Your Fund Is Managed
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Oppenheimer Discovery Fund seeks capital or services and innovators in leading-edge
appreciation by investing in small- and sectors of the economy. Although small-cap
BEAT THE AVERAGE medium-sized emerging growth companies, stocks may be subject to the risk of more
including "small-cap" stocks. These stocks are severe price fluctuations than the stocks of
expected to provide higher growth potential larger companies, small-cap stocks have a
Cumulative Total Return for over the long term than stocks of larger, more history of often outperforming larger-cap
the 10-Year Period Ended established companies because emerging growth common stocks over long periods of time.
3/31/97: businesses are often developers of new products
Oppenheimer Discovery Fund ---------------------------------------------------------------------------------------------------
Class A Shares (at net Performance
asset value)(1) ---------------------------------------------------------------------------------------------------
Total returns for the six months ended 3/31/97 period ended 3/31/97 and since inception on
240.98% were (18.26)% for Class A shares, (18.55)% for 4/1/94 were (11.20)% and 7.91%, respectively.
Class B shares, (18.56)% for Class C shares and For Class C shares, average annual total
(18.13)% for Class Y shares, without deducting returns for the 1-year period ended 3/31/97
Lipper Small Cap Growth sales charges.(1) and since inception on 10/2/95 were (7.76)%
Average for 49 Funds for and 2.80%, respectively. For Class Y shares,
the 10-Year Period Ended Your Fund's average annual total returns for average annual total returns for the 1-year
3/31/97(3) Class A shares for the 1-, 5- and 10-year period ended 3/31/97 and since inception on
periods ended 3/31/97 were (11.60)%, 9.35% and 6/1/94 were (5.95)% and 12.28%,
12.38%, respectively. For Class B shares, respectively.(2)
195.09% average annual total returns for the 1-year
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Outlook
---------------------------------------------------------------------------------------------------
"We remain confident that by selectively the stage for strong performance
choosing a carefully diversified portfolio when the small-cap market rebounds."
of small-cap stocks, we should be setting
JAY TRACEY, PORTFOLIO MANAGER
MARCH 31, 1997
Total returns include change in share price and reinvestment of dividends and capital gains
distributions in a hypothetical investment for the periods shown. 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.
(1) Includes change in net asset value per share without deducting any sales charges. Such
performance is not annualized and would have been lower if sales charges were taken into account.
(2) Class A returns include the current maximum initial sales charge of 5.75%. Class B returns
include the applicable contingent deferred sales charge of 5% (1 year) and 3% (since inception).
Class C returns include the 1% contingent deferred sales charge for the 1-year result. The Fund
also offers Class Y shares, but only to certain institutional investors and not to members of the
public. An explanation of the different total returns is in the Fund's prospectus. Class B and
Class C shares are subject to an annual 0.75% asset-based sales charge.
(3) Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for comparative
purposes only. Funds included in the index may have different investment policies and risks than
the Fund. Oppenheimer Discovery Fund is characterized by Lipper as a small cap growth fund.
Lipper performance is based on total return and does not take sales charges into account.
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2 Oppenheimer Discovery Fund
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Dear Shareholder,
[photo] As we advised you at year end, we don't expect 1997's stock market to report the record-breaking
returns we saw last year. However, we do believe it may be a period in which investors can take
Bridget A. Macaskill advantage of some great buying opportunities created by lower stock valuations. Our optimism can
President be traced to solid economic fundamentals that should remain stable throughout the calendar year
Oppenheimer and the robust investing habits of aging baby boomers.
Discovery Fund First, the economy has been expanding slowly, but steadily. Interest rates have remained
relatively low despite the Federal Reserve's recent increase in short-term rates. In turn, low
interest rates translate into reduced borrowing rates for companies and individuals. Companies
have taken advantage of the savings by using it to improve their technologies, thereby increasing
their productivity and efficiency. By downsizing and implementing other cost-cutting strategies,
companies in the United States should now be better equipped to compete globally.
In addition, inflation has been at its lowest level in three decades. While it's true that an
increase in interest rates often indicates an accelerating economy, the Federal Reserve has been
quick to acknowledge that inflation and growth are under control. In fact, they've labeled the
recent move as a "preemptive" act to keep inflation at these low levels and extend the economy's
healthy growth cycle.
Second, monthly cash flows into mutual funds have been higher, largely due to the savings
pattern of the baby boomers. The first wave of this generation--those just turning 50--are beginning
to direct more money toward their retirement. Concerned about proposed cutbacks in Social
Security benefits, more and more individuals believe they will have to fund a large portion of
their retirement themselves. And, as they gradually pay off their children's college expenses and
reduce their mortgages, they are positioned to save more aggressively.
For these reasons we remain confident about the opportunities available in the stock market
this year. Of course, selectivity will be the key to allocating an effective portfolio.
Therefore, it will be important to base choices on the individual merits of a company, such as
strong management, fundamental business policies and long-term prospects for the future. And for
investors, as always, maintaining a long-term time horizon is essential. Because, while
short-term swings will certainly occur and past performance is no guarantee of future results,
the markets long-term trend has been to move higher and higher.
Your portfolio managers discuss the outlook for your Fund in light of these broad issues on
the following pages. Thank you for your confidence in OppenheimerFunds, THE RIGHT WAY TO INVEST.
We look forward to helping you reach your investment goals in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 21, 1997
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3 Oppenheimer Discovery Fund
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Q + A
An interview with your Fund's managers.
Q What areas HOW HAS THE FUND PERFORMED?
are you currently
targeting? Because investors had a preference for more conservative, large-cap stocks during the second half
of 1996, the performance of small-cap investments has been relatively disappointing. However, as
the momentum between small- and large-cap stocks has historically swung back and forth, we do not
view the current trend as either unusual or permanent. Indeed, Oppenheimer Discovery Funds
universe of emerging-growth stocks has become attractively valued and appears poised to perform
much better over the intermediate to long term.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
The energy sector, specifically the oil-services group, clearly produced the most gains during
the past six months. Improved business fundamentals led to significant earnings gains for many of
these companies; in particular, the Funds offshore-drilling companies benefited from higher
activity and better pricing.
In addition, several of the Fund's technology holdings made positive contributions to
performance. For example, we held shares of a software company that leads the market for
anti-virus products. Thanks to the convenient way the Internet allows sharing information across
the globe, this business has enjoyed explosive growth in sales and profits as computer system
owners worked to protect their systems from corruption.(1)
WERE THERE ANY INVESTMENTS THAT PERFORMED POORLY?
The general malaise in the small-cap market tainted most small-cap performance this period,
including companies within the healthcare sector. This was partly a result of fears about future
cuts in Medicare and Medicaid reimbursement.
(1) The Fund's portfolio is subject to change.
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4 Oppenheimer Discovery Fund
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FACING PAGE Also, certain isolated earnings disappointments raised concerns that devalued virtually the
Top left: Jay Tracey, entire healthcare sector, which in turn, hurt performance.
Portfolio Manager WHAT TYPES OF COMPANIES ARE YOU CURRENTLY TARGETING?
We follow a bottom-up stock selection process. We begin by researching individual companies
Top right: Robert Doll, across all industries that are showing strong sales and earnings trends. We then consider the
Executive VP, Director of company's sustainability of that growth in light of market demand for the company's products and/or
Equity Investments services, as well as the strength of its competitive positions. Based on this information, we
make our selections, bearing in mind that while an industry may be out of favor, strong
Bottom: Michael Levine, individual companies can still make sense as investments for the Fund's portfolio.
Member of Equity Lately, we have made several selections within the energy sector. These stocks earned
Investments Team excellent returns in 1996. And, we believe the economic environment should continue to foster
good performance through 1997 and into next year.
THIS PAGE We've also taken advantage of a recent price weakness to add to our technology holdings. One
Top: Richard Rubinstein, example is a business that specializes in front office automation software. Their product enables
Member of Equity firms to automate customer service functions for greater efficiency and gives sales people
Investments Team working in field locations more technological capabilities.
Finally, we are currently streamlining the number of holdings in the portfolio, maintaining
Bottom: Paul LaRocco, higher weightings in key positions, while keeping the Fund fully diversified. The purpose is to
Member of Equity increase the Fund's focus on successful investments we believe will continue to prosper.
Investments Team WHAT IS THE OUTLOOK FOR THE FUND?
Small-cap stocks have always been considered an attractive investment option for investors
A Lately, we have made seeking higher growth potential. And, todays environment is no exception. In fact, small-cap
several selections stocks seem even more appealing today because of their lower valuations. We remain confident that
within the energy sector. by selectively choosing a carefully diversified portfolio of small-cap stocks, we should be
setting the stage for strong performance when the small-cap market rebounds. / /
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5 Oppenheimer Discovery Fund
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FINANCIALS
CONTENTS
STATEMENT OF INVESTMENTS 7
STATEMENT OF ASSETS AND LIABILITIES 13
STATEMENT OF OPERATIONS 14
STATEMENTS OF CHANGES IN NET ASSETS 15
FINANCIAL HIGHLIGHTS 16
NOTES TO FINANCIAL STATEMENTS 18
6 Oppenheimer Discovery Fund
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STATEMENT OF INVESTMENTS March 31, 1997 (Unaudited)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
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SHORT-TERM NOTES--9.7%
- ---------------------------------------------------------------------------------------------------------------
Associates Corp. of North America, 6.75%, 4/1/97(1) $44,300,000 $ 44,300,000
----------------------------------------------------------------------------------
Dean Witter, Discover & Co., 5.30%, 4/4/97(1) 25,000,000 24,988,917
----------------------------------------------------------------------------------
Ford Motor Credit Co., 5.34%, 4/7/97(1) 50,000,000 49,955,500
--------------
Total Short-Term Notes (Cost $119,244,417) 119,244,417
- ---------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS
AND NOTES--0.0%
- ---------------------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.50% Cv.
Sub. Debs., 8/15/00 (Cost $4,098,554)(2)(3) 4,000,000 40,000
<CAPTION>
SHARES
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
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COMMON STOCKS--82.3%
- ---------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--13.2%
- ---------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--3.2% Alrenco, Inc.(4) 300,000 3,300,000
----------------------------------------------------------------------------------
Coachmen Industries, Inc. 200,000 3,775,000
----------------------------------------------------------------------------------
Diamond Home Services, Inc.(4) 277,500 4,960,312
----------------------------------------------------------------------------------
Fairfield Communities, Inc.(4) 200,000 5,000,000
----------------------------------------------------------------------------------
NHP, Inc.(4) 140,000 3,255,000
----------------------------------------------------------------------------------
OEA, Inc.(5) 240,000 10,020,000
----------------------------------------------------------------------------------
Team Rental Group, Inc.(4) 200,000 4,200,000
----------------------------------------------------------------------------------
Wilmar Industries, Inc.(4) 280,000 4,340,000
--------------
38,850,312
- ---------------------------------------------------------------------------------------------------------------
LEISURE & Applebee's International, Inc. 130,000 3,136,250
ENTERTAINMENT--4.3% ----------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(4) 465,000 11,392,500
----------------------------------------------------------------------------------
CKE Restaurants, Inc. 460,300 10,184,137
----------------------------------------------------------------------------------
Coach USA, Inc.(4) 400,000 11,600,000
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Einstein/Noah Bagel Corp.(4) 240,000 6,030,000
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Signature Resorts, Inc.(4) 200,000 4,700,000
----------------------------------------------------------------------------------
Silver Diner, Inc.(2)(4)(6) 700,000 2,285,938
----------------------------------------------------------------------------------
Sodak Gaming, Inc.(4) 250,000 2,687,500
--------------
52,016,325
- ---------------------------------------------------------------------------------------------------------------
MEDIA--0.6% Heftel Broadcasting Corp., A Shares(4) 150,000 6,975,000
- ---------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.4% North Face, Inc. (The)(4) 300,000 4,987,500
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Wolverine World Wide, Inc. 326,500 11,917,250
--------------
16,904,750
- ---------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--3.7% American Pad & Paper Co.(4) 400,000 6,000,000
----------------------------------------------------------------------------------
Central Garden & Pet Co.(4) 300,000 5,437,500
----------------------------------------------------------------------------------
Linens 'N Things, Inc.(4) 350,000 8,181,250
----------------------------------------------------------------------------------
Marks Bros. Jewelers, Inc.(4) 200,000 2,350,000
----------------------------------------------------------------------------------
MSC Industrial Direct Co., Inc., Cl. A(4) 400,000 11,650,000
----------------------------------------------------------------------------------
Petco Animal Supplies, Inc.(4) 500,000 11,750,000
--------------
45,368,750
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7 Oppenheimer Discovery Fund
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STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
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CONSUMER NON-CYCLICALS
- --18.4%
- ---------------------------------------------------------------------------------------------------------------
FOOD--1.6% JP Foodservice, Inc.(4) 500,000 $ 13,812,500
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Richfood Holdings, Inc. 330,000 6,187,500
--------------
20,000,000
- ---------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--6.1% Alpha-Beta Technology, Inc.(4) 228,100 2,423,563
----------------------------------------------------------------------------------
Applied Analytical Industries, Inc.(4) 180,000 3,510,000
----------------------------------------------------------------------------------
Biocompatibles International plc(4) 498,044 9,896,352
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Dura Pharmaceuticals, Inc.(4) 300,000 10,725,000
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Ethical Holdings plc, Sponsored ADR(4) 500,000 2,500,000
----------------------------------------------------------------------------------
Global Pharmaceutical Corp.(4) 200,000 1,650,000
----------------------------------------------------------------------------------
Human Genome Sciences, Inc.(4) 200,000 6,500,000
----------------------------------------------------------------------------------
Incyte Pharmaceuticals, Inc.(4) 175,000 9,100,000
----------------------------------------------------------------------------------
Kos Pharmaceuticals, Inc.(4) 300,000 6,000,000
----------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(4) 250,000 3,406,250
----------------------------------------------------------------------------------
Norland Medical Systems, Inc.(4)(6) 480,000 3,120,000
----------------------------------------------------------------------------------
Parexel International Corp.(4) 400,000 9,200,000
----------------------------------------------------------------------------------
SangStat Medical Corp.(4) 250,000 6,781,250
--------------
74,812,415
- ---------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & American Medserve Corp.(4) 425,000 4,993,750
SERVICES--10.7% ----------------------------------------------------------------------------------
AmeriSource Health Corp., Cl. A(4) 330,000 14,437,500
----------------------------------------------------------------------------------
Calypte Biomedical Corp.(4) 320,000 2,200,000
----------------------------------------------------------------------------------
Capstone Pharmacy Services, Inc.(4) 600,000 6,600,000
----------------------------------------------------------------------------------
Covance, Inc.(4) 300,000 4,837,500
----------------------------------------------------------------------------------
EP MedSystems, Inc.(4)(6) 400,000 2,000,000
----------------------------------------------------------------------------------
ESC Medical Systems Ltd.(4) 160,000 4,040,000
----------------------------------------------------------------------------------
Gulf South Medical Supply, Inc.(4) 350,000 6,781,250
----------------------------------------------------------------------------------
Henry Schein, Inc.(4) 304,500 8,830,500
----------------------------------------------------------------------------------
HumaScan, Inc.(4)(6) 584,500 6,173,781
----------------------------------------------------------------------------------
Integrated Living Communities, Inc.(4) 264,100 1,584,600
----------------------------------------------------------------------------------
Lincare Holdings, Inc.(4) 150,000 6,187,500
----------------------------------------------------------------------------------
OccuSystems, Inc.(4) 350,000 7,875,000
----------------------------------------------------------------------------------
Omnicare, Inc. 350,000 8,225,000
----------------------------------------------------------------------------------
Pediatrix Medical Group, Inc.(4) 350,000 11,506,250
----------------------------------------------------------------------------------
PhyCor, Inc.(4) 200,000 5,450,000
----------------------------------------------------------------------------------
Rural/Metro Corp.(4) 105,300 3,211,650
----------------------------------------------------------------------------------
Serologicals Corp.(4) 495,500 7,432,500
----------------------------------------------------------------------------------
Superior Consultant Holdings Corp.(4) 200,000 3,550,000
----------------------------------------------------------------------------------
Total Renal Care Holdings, Inc.(4) 300,000 9,112,500
----------------------------------------------------------------------------------
Ventana Medical Systems, Inc.(4) 425,000 5,950,000
--------------
130,979,281
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8 Oppenheimer Discovery Fund
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MARKET VALUE
SHARES SEE NOTE 1
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ENERGY--7.4%
- ---------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & Brown (Tom), Inc.(4) 350,000 $ 6,475,000
PRODUCERS--7.3% ----------------------------------------------------------------------------------
Core Laboratories NV(4) 200,000 3,550,000
----------------------------------------------------------------------------------
Cross Timbers Oil Co. 450,000 7,031,250
----------------------------------------------------------------------------------
Diamond Offshore Drilling, Inc.(4) 120,000 8,220,000
----------------------------------------------------------------------------------
Energy Ventures, Inc.(4) 287,600 17,723,350
----------------------------------------------------------------------------------
Falcon Drilling Co., Inc.(4) 120,000 4,440,000
----------------------------------------------------------------------------------
FX Energy, Inc.(4) 500,000 5,312,500
----------------------------------------------------------------------------------
Nabors Industries, Inc.(4) 400,000 7,800,000
----------------------------------------------------------------------------------
Newfield Exploration Co.(4) 210,000 3,990,000
----------------------------------------------------------------------------------
NUMAR Corp.(4) 306,700 6,594,050
----------------------------------------------------------------------------------
St. Mary Land & Exploration Co. 200,000 5,150,000
----------------------------------------------------------------------------------
Stone Energy Corp.(4) 100,000 2,400,000
----------------------------------------------------------------------------------
Trico Marine Services, Inc.(4) 220,000 10,450,000
--------------
89,136,150
- ---------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--0.1% Dailey Petroleum Services Corp.(4)(6) 250,000 1,687,500
- ---------------------------------------------------------------------------------------------------------------
FINANCIAL--4.6%
- ---------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.5% FIRSTPLUS Financial Group, Inc.(4) 240,000 7,230,000
----------------------------------------------------------------------------------
Investors Financial Services Corp. 185,000 5,665,625
----------------------------------------------------------------------------------
Renters Choice, Inc.(4) 300,000 4,312,500
----------------------------------------------------------------------------------
Rockford Industries, Inc.(4)(6) 400,000 3,300,000
----------------------------------------------------------------------------------
Winthrop Resources Corp. 330,000 9,817,500
--------------
30,325,625
- ---------------------------------------------------------------------------------------------------------------
INSURANCE--2.1% CapMAC Holdings, Inc. 550,000 14,643,750
----------------------------------------------------------------------------------
Executive Risk, Inc. 250,000 11,593,750
--------------
26,237,500
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL--18.2%
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--14.2% Abacus Direct Corp.(4) 300,000 6,375,000
----------------------------------------------------------------------------------
ABR Information Services, Inc.(4) 170,000 3,060,000
----------------------------------------------------------------------------------
Acxiom Corp.(4) 450,000 6,468,750
----------------------------------------------------------------------------------
Affiliated Computer Services, Inc., Cl. A(4) 400,000 9,150,000
----------------------------------------------------------------------------------
Barnett, Inc.(4) 250,000 5,125,000
----------------------------------------------------------------------------------
CIBER, Inc.(4) 350,000 8,837,500
----------------------------------------------------------------------------------
CORT Business Services Corp.(4) 500,000 11,437,500
----------------------------------------------------------------------------------
Culligan Water Technologies, Inc.(4) 100,000 3,912,500
----------------------------------------------------------------------------------
Daisytek International Corp.(4) 311,500 9,734,375
----------------------------------------------------------------------------------
DecisionOne Holdings Corp.(4) 400,000 6,000,000
----------------------------------------------------------------------------------
Dynamex, Inc.(4)(6) 400,000 2,550,000
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9 Oppenheimer Discovery Fund
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STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
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INDUSTRIAL SERVICES Eagle USA Airfreight, Inc.(4) 400,000 $ 12,300,000
(CONTINUED) ----------------------------------------------------------------------------------
IntelliQuest Information Group, Inc.(4) 400,000 5,600,000
----------------------------------------------------------------------------------
Leap Group, Inc. (The)(4) 500,000 2,125,000
----------------------------------------------------------------------------------
May & Speh, Inc.(4) 400,000 3,350,000
----------------------------------------------------------------------------------
Osmonics, Inc.(4) 250,000 4,562,500
----------------------------------------------------------------------------------
Precision Response Corp.(4) 300,000 7,087,500
----------------------------------------------------------------------------------
Registry, Inc.(4) 200,000 7,100,000
----------------------------------------------------------------------------------
Rental Service Corp.(4) 250,000 4,750,000
----------------------------------------------------------------------------------
Service Experts, Inc.(4) 233,300 5,015,950
----------------------------------------------------------------------------------
SITEL Corp.(4) 600,000 8,025,000
----------------------------------------------------------------------------------
Stericycle, Inc.(4) 400,000 3,200,000
----------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A(4) 200,000 5,500,000
----------------------------------------------------------------------------------
U.S. Rentals, Inc.(4) 250,000 4,531,250
----------------------------------------------------------------------------------
United Waste Systems, Inc.(4) 500,000 18,625,000
----------------------------------------------------------------------------------
USA Waste Services, Inc.(4) 250,000 8,875,000
--------------
173,297,825
- ---------------------------------------------------------------------------------------------------------------
MANUFACTURING--2.0% Chicago Miniature Lamp, Inc.(4) 250,000 4,906,250
----------------------------------------------------------------------------------
PRI Automation, Inc.(4) 210,000 10,027,500
----------------------------------------------------------------------------------
U.S. Filter Corp.(4) 300,000 9,262,500
--------------
24,196,250
- ---------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.0% Genesee & Wyoming, Inc., Cl. A(4)(6) 236,000 7,493,000
----------------------------------------------------------------------------------
Hvide Marine, Inc., Cl. A(4) 150,000 3,412,500
----------------------------------------------------------------------------------
Stolt Comex Seaway SA(4)(6) 250,000 5,062,500
----------------------------------------------------------------------------------
Swift Transportation Co., Inc.(4) 315,000 8,032,500
--------------
24,000,500
- ---------------------------------------------------------------------------------------------------------------
TECHNOLOGY--18.9%
- ---------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--0.7% Citrix Systems, Inc.(4) 100,000 1,325,000
----------------------------------------------------------------------------------
MicroTouch Systems, Inc.(4) 247,700 4,892,075
----------------------------------------------------------------------------------
Network Computing Devices, Inc.(4) 260,000 2,762,500
--------------
8,979,575
- ---------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--9.4% Aspen Technologies, Inc.(4) 385,000 10,491,250
----------------------------------------------------------------------------------
Clarify, Inc.(4) 250,000 6,031,250
----------------------------------------------------------------------------------
Forte Software, Inc.(4) 150,000 3,450,000
----------------------------------------------------------------------------------
Global DirectMail Corp.(4) 250,000 4,343,750
----------------------------------------------------------------------------------
HBO & Co. 140,000 6,650,000
----------------------------------------------------------------------------------
Indus Group, Inc. (The)(4) 250,000 3,625,000
----------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(4) 350,000 5,250,000
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10 Oppenheimer Discovery Fund
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MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER SOFTWARE IONA Technologies plc, ADR(4) 150,000 $ 2,700,000
(CONTINUED) ----------------------------------------------------------------------------------
McAfee Associates, Inc.(4) 240,000 10,620,000
----------------------------------------------------------------------------------
National Instruments Corp.(4) 315,000 10,158,750
----------------------------------------------------------------------------------
Rational Software Corp.(4) 200,000 4,125,000
----------------------------------------------------------------------------------
Red Brick Systems, Inc.(4) 350,000 4,900,000
----------------------------------------------------------------------------------
Remedy Corp.(4) 100,000 3,825,000
----------------------------------------------------------------------------------
Rogue Wave Software, Inc.(4) 300,000 2,737,500
----------------------------------------------------------------------------------
Siebel Systems, Inc.(4) 300,000 5,025,000
----------------------------------------------------------------------------------
SPSS, Inc.(4)(6) 400,000 9,950,000
----------------------------------------------------------------------------------
TriTeal Corp.(4) 200,000 2,350,000
----------------------------------------------------------------------------------
Viasoft, Inc.(4) 200,000 6,500,000
----------------------------------------------------------------------------------
Visigenic Software, Inc.(4) 400,000 3,800,000
----------------------------------------------------------------------------------
Visio Corp.(4) 222,700 8,685,300
--------------
115,217,800
- ---------------------------------------------------------------------------------------------------------------
ELECTRONICS--3.9% Advanced Technology Materials, Inc.(4)(6) 450,000 7,762,500
----------------------------------------------------------------------------------
ESS Technology, Inc.(4) 325,000 7,881,250
----------------------------------------------------------------------------------
Novellus Systems, Inc.(4) 100,000 6,900,000
----------------------------------------------------------------------------------
Pittway Corp., Cl. A 250,000 12,125,000
----------------------------------------------------------------------------------
Sawtek, Inc.(4) 260,000 7,475,000
----------------------------------------------------------------------------------
SDL, Inc.(4) 300,000 5,137,500
--------------
47,281,250
- ---------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- Comverse Technology, Inc.(4) 400,000 15,800,000
TECHNOLOGY--4.9% ----------------------------------------------------------------------------------
ICG Communications, Inc.(4) 150,000 1,706,250
----------------------------------------------------------------------------------
ICG Communications, Inc.(2)(4) 272,500 3,462,453
----------------------------------------------------------------------------------
IXC Communications, Inc.(4) 277,500 5,411,250
----------------------------------------------------------------------------------
LCI International, Inc.(4) 350,000 5,862,500
----------------------------------------------------------------------------------
Lightbridge, Inc.(4) 550,000 3,781,250
----------------------------------------------------------------------------------
Periphonics Corp.(4) 560,000 8,260,000
----------------------------------------------------------------------------------
Saville Systems Ireland plc, Sponsored ADR(4) 250,000 7,187,500
----------------------------------------------------------------------------------
Tel-Save Holdings, Inc.(4) 600,000 8,700,000
--------------
60,171,203
- ---------------------------------------------------------------------------------------------------------------
UTILITIES--1.6%
- ---------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.6% ACC Corp.(4) 200,000 4,450,000
----------------------------------------------------------------------------------
McLeod, Inc.(4) 200,000 3,550,000
----------------------------------------------------------------------------------
Telco Communications Group, Inc.(4) 350,000 6,956,250
----------------------------------------------------------------------------------
West TeleServices Corp.(4) 350,000 4,506,250
--------------
19,462,500
--------------
Total Common Stocks (Cost $874,920,466) 1,005,900,511
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11 Oppenheimer Discovery Fund
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STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
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PREFERRED STOCKS--0.9%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
AirNet Communications Corp., Series C(2)(4) 250,000 $ 1,500,000
----------------------------------------------------------------------------------
Silicon Video Corp., $2.50 Cv., Series D(2)(4) 1,200,000 5,628,000
----------------------------------------------------------------------------------
Silicon Video Corp., Series E(2)(4) 800,000 4,400,000
--------------
Total Preferred Stocks (Cost $8,900,000) 11,528,000
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UNITS
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
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RIGHTS, WARRANTS AND
CERTIFICATES--0.0%
- ---------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc. Wts., Exp. 9/03 2,564 --
----------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., Cl. A Wts., Exp. 12/97 40,110 --
--------------
Total Rights, Warrants and Certificates (Cost $261,332) --
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<CAPTION>
FACE
AMOUNT
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--7.3%
- ---------------------------------------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities,
Inc., 6.25%, dated 3/31/97, to be repurchased at
$88,815,417 on 4/1/97, collateralized by U.S.
Treasury Bonds, 8.75%--8.875%, 8/15/17--8/15/20,
with a value of $91,052,576 (Cost $88,800,000) $88,800,000 88,800,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $1,096,224,769) 100.2% 1,225,512,928
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.2) (2,995,136)
----------- --------------
NET ASSETS 100.0% $1,222,517,792
----------- --------------
----------- --------------
1. Short-term notes are generally traded on a discount basis; the interest
rate is the discount rate received by the Fund at the time of purchase.
2. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
3. Non-income producing--issuer is in default of interest payment.
4. Non-income producing security.
5. Securities with an aggregate market value of $5,636,250 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
6. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended March 31, 1997.
The aggregate fair value of all securities of affiliated companies as of
March 31, 1997 amounted to $51,385,219. Transactions during the period in
which the issuer was an affiliate are as follows:
</TABLE>
<TABLE>
<CAPTION>
BALANCE BALANCE
SEPTEMBER 30, 1996 GROSS ADDITIONS GROSS REDUCTIONS MARCH 31, 1997
------------------ --------------- ------------------- --------------------
SHARES COST SHARES COST SHARES COST SHARES COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Advanced Technology
Materials, Inc. 300,000 $ 2,694,375 150,000 $ 2,367,637 -- $ -- 450,000 $5,062,012
- -------------------------------------------------------------------------------------------------------------------------
Alrenco, Inc.(7) 440,000 7,038,513 90,000 1,023,750 230,000 4,007,888 300,000 4,054,375
- -------------------------------------------------------------------------------------------------------------------------
Belmont Homes, Inc. 600,000 8,450,620 300,000 -- 900,000 8,450,620 -- --
- -------------------------------------------------------------------------------------------------------------------------
Dailey Petroleum Services
Corp. 300,000 2,407,916 -- -- 50,000 407,916 250,000 2,000,000
- -------------------------------------------------------------------------------------------------------------------------
Dynamex, Inc. 400,000 3,216,874 -- -- -- -- 400,000 3,216,874
- -------------------------------------------------------------------------------------------------------------------------
EP MedSystems, Inc. 400,000 2,200,000 -- -- -- -- 400,000 2,200,000
- -------------------------------------------------------------------------------------------------------------------------
Genesse & Wyoming, Inc.,
Cl. A 156,000 4,232,874 80,000 2,500,501 -- -- 236,000 6,733,375
- -------------------------------------------------------------------------------------------------------------------------
HumaScan, Inc. 600,000 3,600,000 -- -- 15,500 93,000 584,500 3,507,000
- -------------------------------------------------------------------------------------------------------------------------
Inference Corp., Cl. A 360,000 6,099,366 -- -- 360,000 6,099,366 -- --
- -------------------------------------------------------------------------------------------------------------------------
Norland Medical Systems,
Inc. 480,000 4,800,428 -- -- -- -- 480,000 4,800,428
- -------------------------------------------------------------------------------------------------------------------------
Rockford Industries, Inc. 350,000 3,315,484 150,000 1,751,719 100,000 1,157,969 400,000 3,909,234
- -------------------------------------------------------------------------------------------------------------------------
Silver Diner, Inc. 700,000 3,850,000 -- -- -- -- 700,000 3,850,000
- -------------------------------------------------------------------------------------------------------------------------
SPSS, Inc. 330,000 3,621,213 70,000 2,053,594 -- -- 400,000 5,674,807
- -------------------------------------------------------------------------------------------------------------------------
Stolt Comex Seaway SA -- -- 250,000 4,343,750 -- -- 250,000 4,343,750
- -------------------------------------------------------------------------------------------------------------------------
3-D Geophysical, Inc. 380,000 2,863,675 -- -- 380,000 2,863,675 -- --
----------- ----------- ----------- -----------
$58,391,338 $14,040,951 $23,080,434 $49,351,855
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
7. Not an affiliate as of March 31, 1997.
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Discovery Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES March 31, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,050,927,289) $1,174,127,709
Affiliated companies (cost $45,297,480) 51,385,219
-----------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 7,705,033
Investments sold 4,107,833
Interest and dividends 121,403
-----------------------------------------------------------------------------------------------------
Other 22,000
--------------
Total assets 1,237,469,197
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Bank overdraft 1,477,795
-----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 7,141,415
Daily variation on futures contracts--Note 5 2,841,942
Investments purchased 1,869,425
Distribution and service plan fees 807,043
Trustees' fees--Note 1 212,481
Transfer and shareholder servicing agent fees 179,402
Other 421,902
--------------
Total liabilities 14,951,405
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,222,517,792
--------------
--------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $1,112,188,879
NET ASSETS -----------------------------------------------------------------------------------------------------
Accumulated net investment loss (2,133,805)
-----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (12,242,521)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies --Notes 3 and 5 124,705,239
-----------------------------------------------------------------------------------------------------
Net assets $1,222,517,792
--------------
--------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE Class A Shares:
Net asset value and redemption price per share (based on net assets of $966,974,329
and 24,968,250 shares of beneficial interest outstanding) $38.73
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $41.09
-----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $202,606,474 and 5,374,718 shares of beneficial interest outstanding) $37.70
-----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $22,502,622 and 588,921 shares of beneficial interest outstanding) $38.21
-----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $30,434,367 and 780,369 shares of beneficial interest outstanding) $39.00
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Discovery Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $ 7,109,592
-----------------------------------------------------------------------------------------------------
Dividends 318,416
--------------
Total income 7,428,008
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 4,492,005
-----------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,329,838
Class B 1,031,290
Class C 103,892
-----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 1,475,377
-----------------------------------------------------------------------------------------------------
Shareholder reports 316,600
-----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 23,308
Class B 18,089
Class C 2,741
Class Y 1,917
-----------------------------------------------------------------------------------------------------
Custodian fees and expenses 44,230
-----------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 38,859
-----------------------------------------------------------------------------------------------------
Legal and auditing fees 14,431
-----------------------------------------------------------------------------------------------------
Other 44,680
--------------
Total expenses 8,937,257
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (1,509,249)
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) on:
GAIN (LOSS) Investments:
Unaffiliated companies 5,168,710
Affiliated companies (4,590,018)
Closing of futures contracts (3,285,675)
--------------
Net realized loss (2,706,983)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (265,626,947)
Translation of assets and liabilities denominated in foreign currencies (91,735)
--------------
Net change (265,718,682)
--------------
Net realized and unrealized loss (268,425,665)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ($269,934,914)
--------------
--------------
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Discovery Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment loss $ (1,509,249) $ (4,391,298)
-------------------------------------------------------------------------------------------------
Net realized gain (loss) (2,706,983) 92,875,503
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (265,718,682) 178,297,200
-------------- --------------
Net increase (decrease) in net assets resulting from operations (269,934,914) 266,781,405
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS Distributions from net realized gain:
Class A (80,616,230) (65,845,405)
Class B (15,161,997) (7,032,331)
Class C (1,452,007) (197,246)
Class Y (2,352,509) (965,392)
- ---------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from beneficial
TRANSACTIONS interest transactions--Note 2:
Class A 103,803,326 196,657,756
Class B 66,845,769 96,461,672
Class C 10,901,435 15,930,604
Class Y 7,630,608 18,542,687
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase (decrease) (180,336,519) 520,333,750
-------------------------------------------------------------------------------------------------
Beginning of period 1,402,854,311 882,520,561
-------------- --------------
End of period (including accumulated net investment losses
of $2,133,805 and $624,556, respectively) $1,222,517,792 $1,402,854,311
-------------- --------------
-------------- --------------
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Discovery Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $51.19 $43.65 $35.81 $39.90
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) (.13) -- (.11)
Net realized and unrealized gain (loss) (8.93) 11.26 9.46 (2.98)
---------- ---------- ---------- --------
Total income (loss) from investment operations (8.95) 11.13 9.46 (3.09)
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gain (3.51) (3.59) (1.62) (1.00)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $38.73 $51.19 $43.65 $35.81
---------- ---------- ---------- --------
---------- ---------- ---------- --------
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) (18.26)% 27.76% 28.03% (7.91)%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 966,974 $1,160,087 $798,065 $613,740
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,102,030 $ 937,563 $650,903 $588,642
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.10)%(5) (0.32)% 0.00% (0.34)%
Expenses 1.20%(5) 1.22% 1.33% 1.32%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 40.1% 79.7% 105.9% 83.3%
Average brokerage commission rate(7) $0.0599 $0.0577 -- --
</TABLE>
(1) For the period from June 1, 1994 (inception of offering) to
September 30, 1994.
(2) For the period from October 2, 1995 (inception of offering) to
September 30, 1996.
(3) For the period from April 1, 1994 (inception of offering) to
September 30, 1994.
(4) Assumes a 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.
16 Oppenheimer Discovery Fund
<PAGE>
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------- ----------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
1993 1992 (UNAUDITED) 1996 1995 1994(3)
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $27.62 $26.03 $50.10 $43.11 $35.65 $35.65
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.13) (.17) (.09) (.23) (.21) .03
Net realized and unrealized gain (loss) 12.41 3.05 (8.80) 10.81 9.29 (.03)
-------- -------- -------- -------- ------- -------
Total income (loss) from investment operations 12.28 2.88 (8.89) 10.58 9.08 --
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gain -- (1.29) (3.51) (3.59) (1.62) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.90 $27.62 $37.70 $50.10 $43.11 $35.65
-------- -------- -------- -------- ------- -------
-------- -------- -------- -------- ------- -------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 44.46% 11.28% (18.55)% 26.77% 27.04% (1.93)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $587,057 $294,010 $202,606 $193,637 $75,062 $26,491
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $451,016 $218,065 $207,245 $119,895 $43,301 $12,435
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.54)% (0.62)% (0.87)%(5) (1.06)% (0.78)% (1.06)%(5)
Expenses 1.27% 1.52% 1.96%(5) 1.99% 2.11% 2.36%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 85.2% 67.9% 40.1% 79.7% 105.9% 83.3%
Average brokerage commission rate(7) -- -- $0.0599 $0.0577 -- --
<CAPTION>
CLASS C CLASS Y
------------------------- ------------------------------------------------
SIX MONTHS PERIOD SIX MONTHS
ENDED ENDED ENDED
MARCH 31, 1997 SEPT. 30, MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996(2) (UNAUDITED) 1996 1995 1994(1)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $50.73 $43.20 $51.44 $43.74 $35.81 $34.89
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.13) (.21) .02 (.02) (.10) .11
Net realized and unrealized gain (loss) (8.88) 11.33 (8.95) 11.31 9.65 .81
------- ------- ------- ------- ------ ------
Total income (loss) from investment operations (9.01) 11.12 (8.93) 11.29 9.55 .92
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gain (3.51) (3.59) (3.51) (3.59) (1.62) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $38.21 $50.73 $39.00 $51.44 $43.74 $35.81
------- ------- ------- ------- ------ ------
------- ------- ------- ------- ------ ------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) (18.56)% 27.96% (18.13)% 28.09% 28.28% 3.20%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $22,503 $17,512 $30,434 $31,619 $9,394 $194
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $20,888 $7,109 $32,363 $18,563 $3,190 $ 39
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.89)%(5) (1.00)%(5) 0.23%(5) (0.04)% 0.03% (0.13)%(5)
Expenses 1.97%(5) 2.03%(5) 0.86%(5) 0.99% 1.26% 1.41%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 40.1% 79.7% 40.1% 79.7% 105.9% 83.3%
Average brokerage commission rate(7) $0.0599 $0.0577 $0.0599 $0.0577 -- --
</TABLE>
(5) Annualized.
(6) 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 March 31, 1997 were $602,627,670 and
$435,727,156, respectively.
(7) Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold. See accompanying Notes to Financial Statements.
17 Oppenheimer Discovery Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Discovery Fund (the Fund) is registered
ACCOUNTING POLICIES under the Investment Company Act of 1940, as
amended, as a diversified, open-end management
investment company. The Fund's investment
objective is capital appreciation; current
income is not an objective. In seeking its
objective, the Fund emphasizes investments in
securities of "growth-type" companies,
including common stocks, preferred stocks,
convertible securities, rights, warrants and
options. The Fund's investment adviser is
OppenheimerFunds, Inc. (the Manager). The Fund
offers Class A, Class B, Class C and Class Y
shares. Class A shares are sold with a
front-end sales charge. Class B and Class C
shares may be subject to a contingent deferred
sales charge. All classes of shares have
identical rights to earnings, assets and voting
privileges, except that each class has its own
expenses directly attributable to a particular
class and exclusive voting rights with respect
to matters affecting a single class. Classes A,
B and C have separate distribution and/or
service plans. No such plan has been adopted
for Class Y shares. Class B shares will
automatically convert to Class A shares six
years after the date of purchase. The
following is a summary of significant
accounting policies consistently followed by
the Fund.
---------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are
valued at the close of the New York Stock
Exchange on each trading day. Listed and
unlisted securities for which such information
is regularly reported are valued at the last
sale price of the day or, in the absence of
sales, at values based on the closing bid or
the last sale price on the prior trading day.
Long-term and short-term "non-money market"
debt securities are valued by a portfolio
pricing service approved by the Board of
Trustees. Such securities which cannot be
valued by 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 are valued under consistently applied
procedures established by the Board of Trustees
to determine fair value in good faith.
Short-term "money market type" debt securities
having a remaining maturity of 60 days or less
are valued at cost (or last determined market
value) adjusted for amortization to maturity of
any premium or discount.
---------------------------------------------------
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, AND GAINS AND
LOSSES. Income, expenses (other than those
attributable to a specific class) and 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' 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. During the
six months ended March 31, 1997, a provision of
$9,457 was made for the Fund's projected
benefit obligations, and payments of $11,664
were made to retired trustees, resulting in an
accumulated liability of $194,740 at March 31,
1997.
---------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are recorded on
the ex-dividend date.
---------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO
SHAREHOLDERS. Net investment income (loss) and
net realized gain (loss) may differ for
financial statement and tax purposes. 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 was recorded by the
Fund.
18 Oppenheimer Discovery Fund
<PAGE>
- --------------------------------------------------------------------------------
1. SIGNIFICANT OTHER. Investment transactions are accounted for
ACCOUNTING POLICIES on the date the investments are purchased or sold
(CONTINUED) (trade date) and dividend income is recorded on the
ex-dividend date. Realized gains and losses on
investments and unrealized appreciation and
depreciation are determined on an identified
cost basis, which is the same basis used for
federal income tax purposes.
The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make
estimates and assumptions that affect the
reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities
at the date of the financial statements and the
reported amounts of income and expenses during
the reporting period. Actual results could
differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no
BENEFICIAL INTEREST par value shares of beneficial interest of each
class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30, 1996(1)
------------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 5,598,882 $ 256,409,299 12,519,702 $ 569,002,600
Distributions reinvested 1,804,638 78,740,208 1,596,700 64,139,185
Redeemed (5,096,477) (231,346,181) (9,738,312) (436,484,029)
---------- ------------- ---------- -------------
Net increase 2,307,043 $ 103,803,326 4,378,090 $ 196,657,756
---------- ------------- ---------- -------------
---------- ------------- ---------- -------------
- -----------------------------------------------------------------------------------------
Class B:
Sold 2,094,377 $ 93,443,328 2,852,250 $ 129,720,421
Distributions reinvested 348,796 14,844,809 172,972 6,841,003
Redeemed (933,730) (41,442,368) (901,310) (40,099,752)
---------- ------------- ---------- -------------
Net increase 1,509,443 $ 66,845,769 2,123,912 $ 96,461,672
---------- ------------- ---------- -------------
---------- ------------- ---------- -------------
- -----------------------------------------------------------------------------------------
Class C:
Sold 616,188 $ 27,609,145 760,144 $ 35,068,889
Distributions reinvested 33,288 1,434,823 4,897 196,204
Redeemed (405,758) (18,142,533) (419,838) (19,334,489)
---------- ------------- ---------- -------------
Net increase 243,718 $ 10,901,435 345,203 $ 15,930,604
---------- ------------- ---------- -------------
---------- ------------- ---------- -------------
- -----------------------------------------------------------------------------------------
Class Y:
Sold 357,651 $ 16,345,736 535,075 $ 24,859,892
Distributions reinvested 53,588 2,352,509 23,960 965,392
Redeemed (245,583) (11,067,637) (159,096) (7,282,597)
---------- ------------- ---------- -------------
Net increase 165,656 $ 7,630,608 399,939 $ 18,542,687
---------- ------------- ---------- -------------
---------- ------------- ---------- -------------
(1) For the year ended September 30, 1996 for Class A, Class B and Class Y shares, and for
the period from October 2, 1995 (inception of offering) to September 30, 1996 for
Class C shares.
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At March 31, 1997, net unrealized appreciation on
LOSSES ON INVESTMENTS investments of $124,705,239 was composed of gross
appreciation of $228,153,007, and gross
depreciation of $103,447,768.
19 Oppenheimer Discovery Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Continued)
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER TRANSACTIONS accordance with the investment advisory agreement
WITH AFFILIATES with the Fund which provides for a fee of 0.75% on
the first $200 million of average annual net
assets, 0.72% of the next $200 million, 0.69%
of the next $200 million, 0.66% of the next
$200 million and 0.60% of the next $800
million. The Manager has voluntarily undertaken
to waive a portion of its management fee,
whereby the Fund shall pay an annual management
fee of 0.58% of its net assets in excess of
$1.5 billion.
For the six months ended March 31, 1997,
commissions (sales charges paid by investors)
on sales of Class A shares totaled $2,704,391,
of which $920,512 was retained by
OppenheimerFunds Distributor, Inc. (OFDI), a
subsidiary of the Manager, as general
distributor, and by an affiliated
broker/dealer. Sales charges advanced to
broker/dealers by OFDI on sales of the Fund's
Class B and Class C shares totaled $2,639,827
and $124,527, of which $275,539 and $4,104,
respectively, was paid to an affiliated
broker/dealer. During the six months ended
March 31, 1997, OFDI received contingent
deferred sales charges of $195,774 and $11,461
upon redemption of Class B and Class C shares,
as reimbursement for sales commissions advanced
by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a
division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and
for other registered investment companies.
OFS's total costs of providing such services
are allocated ratably to these companies.
The Fund has adopted a Service Plan for
Class A shares to reimburse OFDI for a portion
of its costs incurred in connection with the
personal service and maintenance of accounts
that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed
0.25% of the average annual net assets of Class
A shares of the Fund. OFDI uses the service fee
to reimburse brokers, dealers, banks and other
financial institutions quarterly for providing
personal service and maintenance of accounts of
their customers that hold Class A shares.
During the six months ended March 31, 1997,
OFDI paid $101,163 to an affiliated
broker/dealer as reimbursement for Class A
personal service and maintenance expenses.
The Fund has adopted a reimbursement type
Distribution and Service Plan for Class B
shares to reimburse OFDI for its services and
costs in distributing Class B shares and
servicing accounts. Under the Plan, the Fund
pays OFDI an annual asset-based sales charge of
0.75% per year on Class B shares. OFDI also
receives a service fee of 0.25% per year to
reimburse dealers for providing personal
services for accounts that hold Class B shares.
Both fees are computed on the average annual
net assets of Class B shares, determined as of
the close of each regular business day. During
the six months ended March 31, 1997, OFDI paid
$11,054 to an affiliated broker/dealer as
reimbursement for Class B personal service and
maintenance expenses and retained $902,504 as
reimbursement for Class B sales commissions and
service fee advances, as well as financing
costs. If the Plan is terminated by the Fund,
the Board of Trustees may allow the Fund to
continue payments of the asset-based sales
charge to OFDI for certain expenses it incurred
before the Plan was terminated. As of March 31,
1997, OFDI had incurred unreimbursed expenses
of $6,836,261 for Class B.
The Fund has adopted a compensation type
Distribution and Service Plan for Class C
shares to compensate OFDI for its services and
costs in distributing Class C shares and
servicing accounts. Under the Plan, the Fund
pays OFDI an annual asset-based sales charge of
0.75% per year on Class C shares. OFDI also
receives a service fee of 0.25% per year to
compensate dealers for providing personal
services for accounts that hold Class C shares.
Both fees are computed on the average annual
net assets of Class C shares, determined as of
the close of each regular business day. During
the six months ended March 31, 1997, OFDI
retained $84,711 as compensation for Class C
sales commissions and service fee advances, as
well as financing costs. If the Plan is
terminated by the Fund, the Board of Trustees
may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was
terminated. As of March 31, 1997, OFDI had
incurred unreimbursed expenses of $310,201 for
Class C.
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS The Fund may buy and sell interest rate futures
contracts in order to gain exposure to or protect
against changes in interest rates. The Fund may
also buy or write put or call options on these
futures contracts.
The Fund generally sells futures contracts to
hedge against increases in interest rates and the
resulting negative effect on the value of fixed
rate portfolio securities. The Fund may also
purchase futures contracts to gain exposure to
changes in interest rates as it may be more
efficient or cost effective than actually buying
fixed income securities.
20 Oppenheimer Discovery Fund
<PAGE>
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS Upon entering into a futures contract, the Fund is
(CONTINUED) required to deposit either cash or securities in an
amount (initial margin) equal to a certain
percentage of the contract value. Subsequent
payments (variation margin) are made or received by
the Fund each day. The variation margin payments
are equal to the daily changes in the contract
value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or
loss when the contract is closed or expires.
Securities held in collateralized accounts to
cover initial margin requirements on open futures
contracts are noted in the Statement of
Investments. The Statement of Assets and
Liabilities reflects a receivable or payable for
the daily mark to market for variation margin.
Risks of entering into futures contracts (and
related options) include the possibility that
there may be an illiquid market and that a change
in the value of the contract or option may not
correlate with changes in the value of the
underlying securities.
At March 31, 1997, the Fund had outstanding
futures contracts as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
DATE FUTURES CONTRACTS MARCH 31, 1997 DEPRECIATION
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Russell 2000 6/97 800 $137,960,000 $4,582,920
</TABLE>
- --------------------------------------------------------------------------------
6. ILLIQUID AND At March 31, 1997, investments in securities
RESTRICTED SECURITIES included issues that are illiquid or restricted.
Restricted securities are often purchased in
private placement transactions, are not registered
under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued
under methods approved by the Board of Trustees as
reflecting fair value. A security may be considered
illiquid if it lacks a readily-available market or
if its valuation has not changed for a certain
period of time. The Fund in tends to invest no more
than 10% of its net assets (determined at the time
of purchase and reviewed from time to time) in
illiquid or restricted securities. Certain
restricted securities, eligible for resale to
qualified institutional investors, are not subject
to that limit. The aggregate value of illiquid or
restricted securities subject to this limitation at
March 31, 1997 was $17,316,391, which represents
1.42% of the Fund's net assets. Information
concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATES COST PER UNIT MARCH 31, 1997
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AirNet Communications Corp., Series C 7/6/95 $6.00 $ 6.00
- -----------------------------------------------------------------------------------------------
ICG Communications, Inc. 6/9/93--5/10/96 6.97 12.71
- -----------------------------------------------------------------------------------------------
Silicon Video Corp., Series E 4/24/96 5.50 5.50
- -----------------------------------------------------------------------------------------------
Silver Diner, Inc. 7/10/96 5.50 3.27
</TABLE>
21 Oppenheimer Discovery Fund
<PAGE>
OPPENHEIMER DISCOVERY FUND
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OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of
Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Jay W. Tracey, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
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INVESTMENT ADVISER 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 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
Discovery Fund. This report must be preceded or
accompanied by a Prospectus of Oppenheimer
Discovery Fund. For material information
concerning the Fund, see the Prospectus. Shares of
Oppenheimer funds are not deposits or obligations
of any bank, are not guaranteed by any bank, are
not insured by the FDIC or any other agency, and
involve investment risks, including possible loss
of the principal amount invested.
22 Oppenheimer Discovery Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------
OppenheimerFunds offers over 50 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 35 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 3 million
shareholder accounts and more than $60 billion
under OppenheimerFunds' management and that of
our affiliates.
At OppenheimerFunds we don't charge a fee
to exchange shares. And you can exchange shares
easily by mail or by telephone.(1) For more
information on Oppenheimer funds, please
contact your financial adviser 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.
<TABLE>
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------
REAL ASSET FUNDS Real Asset Fund Gold & Special Minerals Fund
- --------------------------------------------------------------------------------------------------------
STOCK FUNDS Developing Markets Fund Quest Capital Value Fund
Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Capital Appreciation Fund(3) Value Stock Fund
Quest Value Fund
- --------------------------------------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(4)
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
- --------------------------------------------------------------------------------------------------------
BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
- --------------------------------------------------------------------------------------------------------
MUNICIPAL FUNDS California Municipal Fund(5) Insured Municipal Fund
Florida Municipal Fund(5) Intermediate Municipal Fund
New Jersey Municipal Fund(5)
New York Municipal Fund(5) ROCHESTER DIVISION
Pennsylvania Municipal Fund(5) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
- --------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS(6) Money Market Fund Cash Reserves
- --------------------------------------------------------------------------------------------------------
LIFESPAN Growth Fund Income Fund
Balanced Fund
(1) Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
(2) Effective 4/1/96, the Fund is closed to new investors.
(3) On 12/18/96, the Fund's name was changed from "Target Fund."
(4) On 3/6/97, the Fund's name was changed from "Asset Allocation Fund."
(5) Available only to investors in certain states.
(6) An investment in money market funds is neither insured nor guaranteed
by the U.S. government and there can be no assurance that a money market
fund will be able to maintain a stable net asset value of $1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
</TABLE>
23 Oppenheimer Discovery Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 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
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
RS0500.001.0397 May 31, 1997
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges.
Whether it's automatic investment plans, informative newsletters and
hotlines, or ready account access, you can benefit from services designed to
make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account
and handle administrative requests. You can reach them at our General
Information 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 Oppenheimer funds 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. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
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