OPPENHEIMER DISCOVERY FUND
Supplement dated August 9, 1999 to the
Prospectus dated January 28, 1999
The Prospectus is changed as follows:
1. This supplement replaces the Fund's prospectus supplement dated June 3, 1999.
2. The section captioned "Portfolio Managers" on page 13 is deleted and replaced
by the following:
|X| Portfolio Manager. Effective August 9, 1999, the Fund's portfolio
manager is Jayne M. Stevlingson. She is the individual principally
responsible for the day-to-day management of the Fund's portfolio. Prior
to joining the Manager on August 9, 1999, Ms. Stevlingson was a small-cap
growth fund portfolio manager with Morgan Stanley Dean Witter Advisors,
Inc., prior to which she was a senior equity analyst with Bankers Trust
Corporation.
3. The following is added after the paragraph captioned "How Can I Buy Class C
Shares?" on page 21:
Who Can Buy Class Y Shares? Class Y shares are sold at net asset value per
share without sales charge directly to certain institutional investors
that have special agreements with the Distributor for this purpose. They
may include insurance companies, registered investment companies and
employee benefit plans. For example, Massachusetts Mutual Life Insurance
Company, an affiliate of the Manager, may purchase Class Y shares of the
Fund and other Oppenheimer funds (as well as Class Y shares of funds
advised by MassMutual) for asset allocation programs, investment companies
or separate investment accounts it sponsors and offers to its customers.
Individual investors are not able to buy Class Y shares directly.
An institutional investor that buys Class Y shares for its
customers' accounts may impose charges on those accounts. The procedures
for buying, selling, exchanging and transferring the Fund's other classes
of shares and the special account features available to investors buying
those other classes of shares do not apply to Class Y shares. An exception
is that the time those orders must be received by the Distributor or its
agents or by the Transfer Agent is the same for Class Y as for other share
classes. However, those instructions must be submitted by the
institutional investor, not by its customers for whose benefit the shares
are held.
4. The first paragraph under the caption "What does the Fund Invest In?" on page
3 is deleted and replaced with the following:
The Fund invests mainly in common stock, but can invest in other equity
securities, such as preferred stocks, convertible securities and other
securities having equity features. It focuses its investments primarily on
common stocks of U.S. companies, but can also buy stocks of foreign
companies that the portfolio manager believes has favorable growth
prospects. The Fund emphasizes stocks of issuers that have a market
capitalization of less than $3 billion. As market conditions change, the
Manager may increase or decrease that market capitalization range. While
these stocks may be traded on stock exchanges, in many cases the Fund buys
over-the-counter securities, which entails special risks.
5. The first bullet point under "How Does the Manager Decide What Securities to
Buy or Sell?" on page 3 is deleted and replaced by the following:
|_| Companies with small capitalizations, which the Manager currently
considers to be under $3 billion.
6. The first sentence under "Special Risks of Small-Cap Stocks" on page 4 is
deleted and replaced by the following: "The Fund focuses its investments on
securities of companies having a market capitalization up to $3 billion, which
in many cases are newer companies."
7. The first paragraph under the heading "The Fund's Principal Investment
Policies" on page 9 is deleted and replaced by the following:
The composition of the Fund's portfolio will vary over time based upon the
evaluation of economic and market trends by the Manager. Under normal
market conditions, the Fund focuses its investments on common stocks and
other equity securities of U.S. and foreign growth companies having a
market capitalization of up to $3 billion (measured the time the Fund buys
the security). The Fund is not required to sell a security if the issuer's
capitalization grows above $3 billion.
August 9, 1999 PS0500.016
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OPPENHEIMER DISCOVERY FUND
Supplement dated August 9, 1999 to the
Statement of Additional Information dated
January 28, 1999, revised June 5, 1999
The Statement of Additional Information is changed as follows:
1. The biographies of Jay W. Tracey III and Alan Gilston on pages 22 and 23,
respectively, are deleted and replaced by the following:
Jayne M. Stevlingson, Vice President and Portfolio Manager; Age: 39.
Two World Trade Center, New York, New York 10048-0203
Vice President of the Manager (since August 9, 1999); formerly a small-cap
growth fund portfolio manager with Morgan Stanley Dean Witter Advisors,
Inc., prior to which she was a senior equity analyst with Bankers Trust
Corporation.
August 9, 1999 PX0500.010
